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A PROJECT REPORT ON
‘’STUDY OF HRM IN CONTENTS OF TATA STEEL LTD’’
TATA STEEL LTD -JAMSHEDPUR‖
[Submitted in partial fulfillment]
[M.BA Third Semester]
Summer Internship Program
As a part of the Curriculum of
MASTER OF BUSINESS ADMINISTRATION [MBA]
From,
KOLHAN UNIVEERSITY –CHAIBASA (Jharkhand)
Project submitted by
Premchand Kumar jouriyar
University registration No- KU1601327
University Roll No- 170709596978
Master of Business Administration, M.B.A (HR), 2016-18.
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ACKNOWLEDGEMENT
At the prime outset, we owe are sincere gratitude to the management and allied discipline of TATA
STEEL (Jamshedpur), for giving an opportunity to undergo the summer training. The project report
is inspired from the annual reports of the company, market survey and information provided by the
employees in required fields. Whom I should certainly acknowledge, as without their contribution,
this report would not have been appropriate.
I also sincerely acknowledge the full co-operation and owe my enriching experience and the entire
learning process to my project guides Mr.Amit Kr. Mehata, Mr. Sandeep Kr. Jaiswal and Mr.
Vivek Kr. Singh, and special thanks to Dr. B.N.Prasad (Principal) Jamshedpur worker’s college
–Jamshedpur without their help and guidance is would not have been possible to complete the
project successfully. His constant guidance and help made my project work easier.
We specially thank Mrs. Kolka Dutta Manager (HR&IR), Lime Plant Dept. Tata Steel Ltd. for his
valuable guidance. We should appreciate and sincerely acknowledge suggestions fromMR.Rajeev
Malhotra ,Chief Lime plant Dept. Tata steel Ltd, Mr. Avijit Bose, Head, Lime Plant Dept. Tata
Steel, who has always been my source of incessant motivation and has always extended his
unstinted support in the making of this project. We also thank Mr. Ajay Kumar Singh, personnel,
TMDC for his kind attention to all our problems and queries during the Study period.
Finally, I would like to thank my family for their lifelong love and support. I especially owe my
sincere gratitude much to my parents and also the other faculty members of our college for offering
their invaluable experience to help me. Without them, this work could not have been computed.
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PREFACE
We want to express our gratitude to Tata Steel (Jamshedpur), for the experience and Practical
knowledge. It was the first time when we went to the market not to do anything but to do a survey
to know the Market Potential and HR &IR practices. The main requirement was to interact with
Worker and know the management functions.
The project consists of company details, market research, data collection method, and
questionnaire and data analysis. We hope that our findings and recommendations would help the
company, to analyses its strategy in comparison to its competitors.
We are obliged to work in such an esteemed organization and have tried our best to align our
objective with the company’s goal.
EXECUTIVE SUMMARY
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TATA Steel is the leading Steel producer of HR sheet, CR sheet, structural steel, construction
steel, commercial Tubes and many more product in the market with a well-established national and
international network. It delivers quality and enjoys enormous brand equity. It faces threat from
competitors who try to turn the market to their side by scoring over the points where TATA STEEL
product falls short. Therefore, we, HR student, as management trainees in TATA STEEL, have
undertaken a project, to find out how to increase the potential, productivity and efficiency of an
employee.
TATA STEEL-Jamshedpur: - Our main objectives are:
(1) To find out and compare the Work environment at major companies in steel Producer.
(2) To measure the threat of substitution from another segment.
(3) To find out the critical factors that might result in loss of market share and brand equity.
The sole purpose of our research work is to benefit the TATA STEEL, in following ways:
(i) Critical factors of HR, once identified, can be worked upon so as to eradicate the risk of losing
Company HR policies.
(2) Working on the problematic areas would also save its reputation in the market.
(3) Knowledge about strengths and weaknesses of the competitors from the same segment, would
help the company build its HR strategies accordingly so as to maintain or increase its Goal and
company policies.
(4) Realizing opportunities, as, new working environment development substitution from the
segment. This report is precise and purely specific to its purpose, targeted to enable Managers to
take relevant decisions.
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TABLE OF CONTENTS
Chapter No. Particulars Page
No.
1
1.0 Human Resource Management 7
1.1 Meaning of Human ResourceManagement 8-9
1.2 Characteristics of Human ResourceManagement 10-12
1.3 Need and Importanceof Human Resource
Management.
13-16
2
2.0 Human Resource Management in Tata Steel Ltd.
( Overview Of Tata Steel Ltd)
17
2.1History, vision and Mission Of Tata Steel Ltd. 18
2.2 Business Divisions Of TheTata Steel Ltd. 19-28
2.3 HRM Background and Practices. 29-31
2.4 HR Practices and Methods. 31-32
3
3.0 Job analysis, Job Design and Job Evolution. 33
3.1 Job analysis 33-39
3.2 Job Design 40-48
3.3 Job Evolution. 49-50
4
4.0 Human Resource Planning 51
4.1. Recruitment: 52
4.2 Selection 52
4.3Placement 53
4.4 Induction & orientation 53
5
5.0 Human Resource Development 54-56
5.1 Management Development: 56
5.2. Career Planning & Development: 57-59
5.3. OrganizationalDevelopment: 59
6
6.0 Compensations Management 60
6.1. Compensation 61-62
6.2. Compensations and Benefits 63-64
7 7.0 Human Relations 65-66
8
8.0 Human Resource Management in Steel Industries. 67
8.1. HRM in small private steel industries 68
6
8.2. HRM in Public Sector steel industries 69
9
9.1. Role of Human Resource Management 70-71
9.2. Responsibilities of Human ResourceManagement: 72
10 10.0 Employee Relations In Tata steel. 73-74
11 11.0 Current HR Challenges Faced by Tata Steel Ltd. 75-77
12 12.0 HRDevelopment in Tata Steel Ltd. 78
12.1 79-82
12.2 83-84
12.3 85-90
13 13.0 HRMIssuein Tata Steel Ltd. 91
14
14.0 Leaveand SupportScheme Run by HRMTata Steel
Ltd.
92
14.1 Types of Leaves. 92-95
14.2 SupportSchemeOrganiseBy Tata Steel Ltd. 95-105
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15.0 OrganizationalProfileof Tata Steel Ltd. 106-108
15.1 Ownership Structure(Tata Steel) 109
15.2 Leadership Structure 110
15.3 Key performanceindicators (Tata Steel India) 111-112
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16.0 Training and Development Function in Tata Steel Ltd.(
Analysis Of Secondary Data) 113
17 17.0 Risk matrix of Tata steel Ltd-Jamshedpur. 114-115
18 18.1 BCG Matrix Analysis Of Tata Steel Ltd 116-117
18.2 BCG Matrix Analysis Of Tata Group 118
18.3 SWOTAnalysis Of Tata steel Ltd. 119
19 19.0 Key Finding. 120
19.1 Suggestion and Recommendations. 121
19.2 Limitation Of the Study. 122
19.3 Conclusion. 123
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CHAPTER-1
1.0 Human Resource Management
Human Resource Management or Personnel management is the activity of Managing personnel,
usually employees.
In any organization, managing personnel is the process of making sure the employees (not the
customers) are as productive as they can be. This can include hiring, firing, or transferring people
to/from jobs they can do most productively.
Why name 'Human Resource Management'?
Human: Refers to the skilled workforce in the organisation.
Resource: Refers to limited availability or scarceness.
Management: Refers how to optimize and make best use of such limited and a scarce resource
so as to meet the ordination goals and objectives.
Altogether, human resource management is the process of proper and maximise utilisation of
available limited skilled workforce. The core purpose of the human resource management is to
make efficient use of existing human resource in the organisation. The Best example at present
situation is, construction industry has been facing serious shortage of skilled workforce. It is
expected to triple in the next decade from the present 30 per cent, will negatively impact the
overall productivity of the sector, warn industry experts.
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1.1 Meaning of Human Resource Management:-
A business unit needs employees to look after different activities. This is Called manpower or
Human resource. Such human resource needs to be developed fully so that it will make positive
Contribution for the progress and prosperity of a business unit. For this Systematic development
and management of human resources is necessary. Human Resource Management (HRM) deals
with.
(a) Training
(b) Self-development
(c) Promotions
(d) Performance appraisal of manpower recruited in an organization.
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HRM is an organized learning experience aimed at matching the organizational need for career
growth and development. It is a process involving series of learning activities designed to acquire
desired level of competence among employees. HRM is a continuous process and it needs money.
Such investment creates a team of efficient, skilled and trained manpower which brings success
and stability to a business unit. HRM programmers offer long term benefits to an organization.
Every organisations' desire is to have skilled and competent people to make their organisation
more effective than their competitors. Humans are very important assets for the organisation rather
than land and buildings, without employees (humans) no activity in the organisation can be done.
Machines are meant to to produce more goods with good quality but they should get operated by
the human only.
Definitions:
Many great scholars had defined human resource management in different ways and with different
words, but the core meaning of the human resource management deals with how to manage
people or employees in the organisation.
Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of procurement,
development, compensation, integration, maintenance and separation of human resources to the
end that individual, organizational and social objectives are achieved.”
The National Institute of Personal Management (NIPM) of India has defined human
resources – personal management as “that part of management which is concerned with people at
work and with their relationship within an enterprise. Its aim is to bring together and develop into
an effective organization of the men and women who make up enterprise and having regard for the
well – being of the individuals and of working groups, to enable them to make their best
contribution to its success”.
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According to Decenzo and Robbins, “HRM is concerned with the people dimension” in
management. Since every organization is made up of people, acquiring their services, developing
their skills, motivating them to higher levels of performance and ensuring that they continue to
maintain their commitment to the organization is essential to achieve organsational objectives. This
is true, regardless of the type of organization – government, business, education, health or social
action”.
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1.2 Characteristics of Human Resource Management:
i. Upgrading Manpower:-
HRM is basically concerned with the upgrading of manpower working in an Organization. This
leads to improvement in the individual performance of an employee and also corresponding
Improvement in the organizational performance.
ii. Stress on Training:
HRM includes various schemes arranged for providing education, guidance, Training and
Opportunities to learn and develop employees of all categories and working in different
Departments. There is an integrated use of sub-systems (training, career developments,
Organizational development) in the HRM programme.
iii. Attention to learning and career development:-
Learning, self-development, career developments are possible through HRM Programs. These are
the core areas of HRM. Career development is possible through joining Training courses, Reading
books and periodicals. Learning and career development raise the capacity of Employees to work
at highest levels. They are given higher positions with monetary benefits.
IV. Organizational Development:-
HRM includes organizational development, which includes effective Communication within the
Organization, coordination of different activities elimination of Conflicts of different types and
Creation of orderly atmosphere in the whole organization.
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V. Team Spirit:-
HRM is basically for developing team spirit in the whole organization. For this, departments and
levels of management are properly integrated. Team spirit facilitates Orderly growth of the
Organization in the right direction.
VI. Huge Money spending by Management:-
All companies invest huge money on HRM activities but such expenditure is absolutely essential
for survival in the present competitive business world. HRM programs Create matured, skilled and
efficient manpower, which is a valuable asset of a business unit.
VII. Termination of Employment:-
Termination is an unpleasant part of any manager‘s job. Employees Occasionally must be
terminated for breaking rules of failing to perform adequately.
VIII. Continuous Activity:-
HRM is rightly treated as a continuous activity due to new developments taking place regularly in
the business world. For this, on the job and off the job training Programs are introduced from time-
to-time.
IX. Wide Scope:-
The scope of HRM programs is very vast. It is multi-disciplinary in character. Training and
guidance are given on different aspects of business management to enable managers to deal with
complex managerial problems and challenges.
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1.3 Need and Importance of Human Resource Management:-
A good HR department is critical to an employee-oriented, productive workplace in which
employees are energized and engaged. Here are the reasons why.
 HR monitors the culture. Some organizations say that HR owns the culture, but as in all
other employee relations matters, I recommend that the ownership is spread across all
employees.
 HR owns the overall talent management processes. In conjunction with other managers, HR
leads the way in management development, performance management, succession
planning, career paths, and other aspects of talent management. HR can't do it alone
and relies heavily on managers and executive staff to help plan and execute the strategies.
However, HR has to bring new ideas and effective practices into the organization.
 HR is responsible for the overall recruiting of a superior workforce. Once again, HR cannot
do it alone but must provide support to hiring managers who are also responsible for
recruiting a superior workforce. HR must provide leadership, training, scheduling
assistance, a systematic hiring process, recruitment planning processes, interview
expertise, selection monitoring, and more.
 HR recommends market-based salaries and develops an overall strategic compensation
plan. HR provides guidance to managers as they determine the salary ranges within their
organizations.
 HR researches, recommends and implements employee benefits programs that attract and
retain your best employees. HR is also responsible for controlling costs and considering
various options before recommending adoption.
 HR is responsible for recommending and instituting strategies for people and the
organization that further the attainment of the organization's strategic goals. If your
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organization is changing direction, developing new products, changing mission, vision, or
goals, HR must lead the way with employee programs and processes.
 HR makes sure that workplace activities, events, celebrations, ceremonies, field trips, and
team building opportunities are occurring. Other employees plan and implement the
activities with or without HR's help, but the HR leader is generally responsible for monitoring
the budget and providing committee oversight.
 HR advocates for employees who have issues or conflict with management and coaches
managers and executives who seek a more effective approach to working with particular
employees. Not everyone loves each other but they need to develop effective working
relationships for contributions and productivity. HR can help by knowing the players and
taking on the necessary role of advocate, coach and/or mediator.
The importance of HR is easily overlooked in the busy day-to-day in the workplace, but without
contributions in each of these areas, the organization would be less successful.
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i. To create stable labor force:-
HRM programmes are needed in order to create stable, efficient, skilled and matured manpower
required by an enterprise for the present and future period.
ii. To update the quality of manpower:-
HRM activities are needed for updating the quality of manpower as per the growing and changing
needs of an enterprise. This avoids managerial obsolescence. Even the Vacancies at higher levels
can be filled in internally due to HRM programmes as they provide training and opportunities of
self-development to employees working at lower levels.
iii. To develop strength for survival:-
HRM programmes are necessary for survival in the present competitive Marketing environment. An
enterprise can face market competition only by improving quality, reducing costs and avoiding
wastages. All this is possible through HRM.
iv. To face challenges of technological changes:-
Technological changes are taking place rapidly in every area of business. HRM programmes are
needed in order to absorb technological changes taking place with Speed. In fact, introduction of
new technology, computers, automation, etc. will not be possible unless training is provided to the
manpower.
v. To satisfy the demand of self-development of employees:-
HRM is needed to meet the needs of employees in regard to self-development and career
development aspirations. Employees demand, training facilities, refresher courses, Promotions and
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transfers, career guidance, etc. for their self-development. HRM programmes are needed to fulfill
self-development and career development of employees.
vi. To meet future manpower needs:-
HRM is needed to meet the future manpower needs of the organization. Executives, managers,
supervisors leave the job or retire due to age factor. Competent juniors must take their positions.
HRM is needed in order to keep ready a team of competent managers as a second line of
defence.
vii. To facilitate expansion and diversification:-
HRM activities are needed to meet the manpower requirements resulting from expansion and
diversification programmes undertaken at the enterprise level. Attention should be given to HRM
much before the introduction of expansion programme.
viii. To utilize production capacity fully: -
HRM is needed in order to use the available production capacity to the optimum level. It provides
skilled manpower for this purpose.
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CHAPTER-2
2.0 HUMAN RESOURCE MANAGEMENT IN TATA STEEL LTD.
OVERVIEW OF TATA STEEL LTD.
Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is an Indian
multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a
subsidiary of the Tata Group.
It is one of the top steel producing companies globally with annual crude Steel deliveries of 23.88
million tons (in FY17), and the second largest steel company in India (Measured by domestic
production) with an annual capacity of 13 million tons after SAIL.
Tata Steel has been ranked 2nd in 2017 Responsible Business Rankings developed by IIM
Udaipur. Tata Steel has manufacturing operations in 26 countries, including Australia, China, India,
the Netherlands, Singapore, Thailand and the United Kingdom, and employs around 80,500
people. Its largest plant located in Jamshedpur, Jharkhand. In 2007 Tata Steel acquired the UK-
based steel maker Company Corus. Tata Steel was ranked 486th in the 2014 Fortune Global 500
ranking of the World’s biggest corporations. It was the seventh most valuable Indian brand of 2013
as per Brand Finance.
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2.1 HISTORY,VISION and MISSION OF TATA STEEL LTD.
Established in 1907, Tata Steel, the flagship company of the Tata group is the first integrated steel
plant in Asia and is now the world`s second most geographically diversified Steel producer and a
Fortune 500 Company. Backed by 100 glorious years of experience in Steel making, Tata Steel is
the world’s 6th largest steel company with an existing annual crude Steel production capacity of 30
Million Tons Per Annum (MTPA). Tata Steel has a balanced global presence in over 50 developed
European and fast growing Asian markets, with manufacturing units in 26 countries.
It was the vision of the founder; Jamsetji Nusserwanji Tata, that on February 27, 1908, the first
stake was driven into the soil of Sakchi. His vision helped Tata Steel Overcome several periods of
adversity and strive to improve against all odds.
VISION OF TATA STEEL LTD
We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship.
MISSION OF TATA STEEL LTD
Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to strengthen
India’s industrial base through effective utilization of staff and materials. The means envisaged to
achieve this are best technology and high productivity, consistent with modern management
practices.
Tata Steel recognizes that while honesty and integrity are essential ingredients of a strong and
stable enterprise, profitability provides the main spark for economic activity.
Overall, the Company seeks to scale the heights of excellence in all it does in an atmosphere free
from fear, and thereby reaffirms its faith in democratic values.
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2.2 Business divisions of the company:-
(a) Bearings Division
Ever since the start of operations at the Kharagpur Facility, Tata Bearings has been constantly
implementing new technology, and improving systems and processes through innovations in the
field to deliver greater value to customers. In the initial stages the technology was obtained from
M/s Societe Nouvelle de Roulements (SNR) - France, through a technical collaboration but
presently all developments are carried out in-house. The Division has state-of-the-art IT hardware
with ASP as the ERP platform for an online information system. Manufactures ball bearings, double
row self–aligning bearings, Magneto bearings, clutch release bearings and tapered roller bearings
for two wheelers, fans, Water pumps, etc.
The Bearings Division manufactures the following range of bearings under the brand name of Tata
Bearings:
 Ball Bearings
 Taper Roller Bearings
 Magneto Bearings
 Double Row Angular Contact Bearings
 Clutch Release Bearings
 Double Row Self Aligning Ball Bearings
 Hub Unit Bearings
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(b) Ferro Alloys and Minerals Division
The Ferro Alloys and Minerals Division, commonly known as FAMD, is the largest non-steel
business unit of Tata Steel. With chrome and manganese ore reserves in the mineral rich state of
Odisha, FAMD has set up an integrated value chain, commencing with mining, beneficiation,
production and sales of Ferro alloys. It is also the leading manganese alloy producer in India and
is a leading supplier of dolomite and pyroxenite
Operates chrome mines and has units for Making Ferro chrome and Ferro manganese. It is one of
the largest players in the global Ferro Chrome Market.
(c) Agrico Division
Tata Agrico, the oldest brand of Tata Steel, is a pioneer in superior quality agricultural implements.
Since 1925, it has been the leading manufacturer of handheld implements like hoes, shovels,
sickles, crowbars, pickaxes and hammers. These implements cater to the needs of agriculture,
infrastructure as well as mining sectors. This traditional product range has now become even richer
with the addition of garden tools like secateurs, cultivators, trowels, bill hooks, cane choppers,
hedge shears and garden rake. All Tata Agrico implements are guaranteed against manufacturing
defects and are distributed all over the country through a network of consignment agents and
distributors. Tata Agrico is the first organized manufacturer in India of hand tools and implements
for application in agriculture.
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(d)Tata Growth Shop (TGS)
Tata Steel Growth Shop (TGS) is a division of Tata Steel Ltd. TGS is one of the largest designer
and manufacturer of Plants and Equipment’s in India. The ISO: 9001 and ISO: 14001 certified
massive plant has general engineering, manufacturing, fabrication, machining, heat treatment and
NDT facilities. TGS designs, manufactures and supplies high precision equipment for various
industrial sectors.
Has designed, developed, manufactured, erected and commissioned thousands of tonnes of
equipment ranging from overhead cranes to high Precision components, including a rocket launch
pad for the Indian Space and Research Organization.
(e) Tubes Division
Tata Pipes has played an important role in this transformation in India. Tata Tues is the first
manufacturers of plumbing pipes in India leading to the modernization of the country. The
increasing population, scarcity of land and resources and people moving from individual houses to
multistory buildings has made Tata Pipes even more important in our lives as they are the true
carriers of life.
Tata Pipes for the conveyance applications are mainly used for carrying liquids and low pressure
gases. The biggest steel tube manufacturer with the largest market share in India, it aspires to
strengthen its market presence by expanding and modernizing its Commercial and precision tube
manufacturing capacity.
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(f) Wire Division:
Producer of Prestressed Concrete strands used in construction of bridges, high-rise buildings, LNG
tanks, nuclear reactors, metro rail projects etc.We have had the opportunity to supply wires for
many iconic structures across the world, including Bandra Worli Sea Link (India), Suvarnabhumi
Airport (Thailand), Changi Airport Terminal 3 (Singapore), Delhi Metro Rail (India), Dubai Ski
Dome (UAE), Darwin LNG Tanks (Australia), Melbourne Cricket Ground (Australia), Cross Sea
Bridge (Japan), Cross Ring Expressway (Macau) and Shenzheng Bay Great Bridge (China).
Product Range
Tata Steel Global Wires manufactures a wide range of wires catering to the needs of various
industry segments such as automobile, infrastructure, power, and general engineering. Our
products are well established across the markets of Europe, USA, Middle East Asia, Australasia,
South Asia and Asia - Far East.
In India, Tata Wiron has world-class manufacturing facilities at Tarapur (Mumbai, Maharashtra),
Pithampur (Indore, Madhya Pradesh) and Jamshedpur. A pioneer in the manufacture of steel wires
in India, it produces coated and uncoated wires, branded as Tata Wiron. The division also operates
a wholly owned subsidiary in Sri Lanka.
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Tata steel Subsidy Unit:-
1. Jamshedpur Utility & service company Limited (JUSCO)-
Holding Type – Subsidiary Holding %- 100%
Town Services Division of Tata Steel, JUSCO is a wholly-owned subsidiary of Tata Steel with
expertise in integrated town management, power distribution, engineering procurement
construction, real estate, and operations and maintenance. JUSCO focuses on enhancing the
quality of life of the residents of Jamshedpur through sustained capital investment and public-
private partnership for infrastructure development. Jamshedpur today has among the highest per
capita incomes in the country and is rated among the best cities to live in by its residents.
2. Tata Pigments Ltd
Holding Type – Subsidiary Holding %- 100%
Tata Pigments Ltd is one of the largest producers of synthetic iron oxide pigments in India and the
only Indian manufacturer of this product with BIS certification. TPL is the preferred supplier of
pigments to leading companies in industries such as paints, building materials, plastics, rubber
goods, paper and ink. It is also the leading brand in India for flooring colours.
3. Tata Steel alloys Ltd
Holding Type – Subsidiary Holding %- 100%
TS Alloys has set up a ferro alloys plant at Anantapur, Odisha, with a capacity of 59,400 MT per
annum. Presently, the plant has two 16.5 submerged electric arc furnaces that commenced
commercial production in 2007. The plant is located on 143.5 acres of land.
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4. Tata Steel Processing & Distribution Ltd (TSPDL)
Holding Type – Subsidiary Holding %- 100%
Recognizing the tremendous business potential offered by the vast gap between steel producers’
offerings and the actual requirements of steel users, Tata Steel formed a 50:50 joint venture in
1997 with Ryerson Inc., USA, (North America’s largest metal processor and distributor), to
promote a steel service company, named Tata Ryerson Limited. The Company firmly established
itself as the dominant steel service company in India. It became a wholly-owned subsidiary of Tata
Steel in 2009 and acquired a new name, Tata Steel Processing & Distribution Ltd from January
2010.
5 Adityapur Toll Bridge Co Ltd (ATBCL)
Holding Type – Subsidiary Holding %- 88.50%
Adityapur Toll Bridge Co Ltd (ATBCL) is a Special Purpose Company promoted under PPP model
by Government of Jharkhand and Tata Steel Ltd. It is a public company incorporated on March 19,
1996. It is classified as Indian Non-government Company and is registered at Registrar of
Companies, Jharkhand. Its authorised share capital is (Rupee sign) 21.00 crores and its paid up
capital is (Rupee sign) 20.38 crores, Tata Steel being the major shareholder with 75% shares.
6. The Tinplate Company of India Limited (TCIL)
Holding Type – Subsidiary Holding %- 74.96 %
The Tinplate Company of India Limited (TCIL), a subsidiary of Tata Steel Limited (TSL), was
incorporated in 1920 and started its commercial production in 1922. These are among the most
versatile packaging substrates used for packaging edible and non-edible products, and are used
25
for its eco-friendly and superior properties vis-à-vis other packaging substrates such as glass,
paper, plastics, aluminum, etc.
7. Tayo Rolls Limited
Holding Type – Subsidiary Holding %- 54.91 %
Tayo Rolls Limited, a Tata Enterprise and a subsidiary of Tata Steel since 2008, was promoted in
1968 by Tata Steel Limited and Yodogawa Steel Works Limited, Japan and Nissho Iwai
Corporation (now Sojitz Corporation), Japan. Tayo Rolls Limited is a leading Roll manufacturer,
headquartered in Jamshedpur, India.
8. Tata Sponge Iron Limited (TSIL)
Holding Type – Subsidiary Holding %- 54.50 %
Tata Sponge Iron Limited (TSIL) was conceptualised to put India’s first indigenous technology for
sponge iron manufacture on a commercial platform. TSIL is considered a benchmark among the
coal-based sponge iron plants. It is arguably the only debt-free, dividend-paying sponge iron
company in India for the last 23 years. It is also known for its exemplary environmental standards
in an industry otherwise infamous for pollution. It was the first company to receive the integrated
certification of ISO-9001, ISO 14001 & OHSAS 18001. It is also the first DRI plant in the world to
achieve TPM certification in 2012. It has received a number of state and national awards from the
government and industrial confederations and institutions in the fields of environment, productivity,
safety, quality, HR, corporate governance, etc.
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9. Jamshedpur Continues Annealing And Processing Company PVT Ltd (CAPCPL)
Holding Type – Subsidiary Holding %- 51.00 %
CAPCPL is a joint venture between Tata Steel Limited (51%) and Nippon Steel & Sumitomo Metal
Corporation (NSSMC, 49%). Its state-of-the-art technology caters exclusively to India’s growing
demand for cold rolled steels in the automotive segment. It thus enables automotive OEMs to
address their strategic objective of increased localisation. Located within Tata Steel’s Jamshedpur
Works, the company has an installed capacity of 600,000 TPA.
10. TM International Logistics Limited
Holding Type – Subsidiary Holding %- 51.00 %
TM International Logistics Limited was incorporated as a joint venture company between Tata
Steel and IQ Mar trade of Germany to provide cost-efficient port-related services. With the vision
of being a reliable logistics service provider characterized by operational excellence, TMILL’s wide
range of logistics services comprises port operations, shipping, freight forwarding, customs house
agency, inland logistics, warehousing, ship agency services and marine services.
11. Tata Metaliks Ltd (TML)
Holding Type – Subsidiary Holding %- 50.09 %
Tata Metaliks Ltd (TML) is a listed company and subsidiary of Tata Steel (holding 50.09%).
Seventy percent of its production is converted into foundry-grade pig iron while the remainder is
transformed into molten metal for value addition and converting into ductile iron pipes by its 100%
subsidiary, TMDIPL. Both plants are located at Kharagpur, West Bengal. TML holds a leadership
position in the foundry grade pig iron market.
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12. Mjunction Services Limited
Holding Type – joint venture Holding %- 50.00 %
Kolkata-based m-junction Services Limited was incorporated in 2001 as a 50:50 joint venture
between Tata Steel and SAIL. Today, m-junction is not only the world’s largest e-marketplace for
steel, it also exists on a wide spectrum of B2B e-commerce services comprising e-selling, e-
procurement, e-finance, e-retail, loyalty solutions and knowledge services across diverse industry
verticals.
13. S&T Mining Company Private Limited
Holding Type – Joint venture Holding %- 50.00 %
A 50:50 joint venture of SAIL and Tata Steel, S&T Mining's main objective is to work in the coking
coal and mineral space domestically and internationally. The other objectives of the Company
include beneficiation of coal and minerals, acquisition of international mining assets, mining of
other minerals related to raw materials of steel and building on a competency, to provide
consultancy services.
14. Tata BlueScope Steel Ltd
Holding Type – Joint venture Holding %- 50.00 %
Tata BlueScope Steel Ltd is an equal joint venture between Tata Steel and BlueScope Steel. The
joint venture was established in November 2005 to operate in the SAARC region (South Asian
Association for Regional Cooperation). The company has facilities in Chennai, Jamshedpur, Pune
and Bhiwadi. Its Coated Steel Business Division and Building Products Division have developed
multiple brands that are leaders in their segments.
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15. Tata NYK Shipping Pvt. Ltd
Holding Type – Joint venture Holding %- 50.00 %
Tata NYK Shipping Pvt. Ltd is a 50:50 joint venture of Tata Steel and NYK Line – one of the
largest shipping companies in the world. Tata NYK offers solutions that help its customers manage
their supply chain effectively.
Tata NYK has several diversified, high-performance, environment-friendly Japanese-built vessels.
Its ability to trade worldwide in a multitude of trade routes, carrying a wide range of cargoes for a
varied set of customers, gives it a competitive edge. Tata NYK has attained ISO 9001:2008 and
ISO 14001:2004 certifications.
16. JAMIPOL Ltd
Holding Type – Associate company Holding %- 39.78 %
JAMIPOL Ltd. is a joint venture between Tata Steel (42%), SKW Stahl-Metallurgy, Germany
(30%) and TAI Industries and associates (27%). With a key purpose of improving the quality of
life through leadership in sectors of national economic significance, JAMIPOL’s products are
certified to Integrated Management System (IMS) for three major international standards – ISO
9001:2008, ISO 14001: 2004 and OHSAS 18001: 2007. The company has facilities in
Kalinganagar and Jamshedpur.
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2.3 HRM Background and Practices:
The Steel industries has become a complex activity within the Steel market Linked directly and
indirectly with an over-all national growth and its impact as an integral part of regional segment of
a global environment. Almost every Steel industries are involved various Functions in a day's job
and as bell as long term strategically planning. Thus requires a highly Effective team and
appropriate Manpower to run the organization. Corporate goals are translated into viable realities
and profits only with human element that plays their due role in achieving the desired results. Thus
even the high automation would require proper man behind the machine to make things happen.
This idea has been realized by top management in progressive corporate industries. Many other
organized sectors Like, banking, chemical, oil and gas requires multi-layer manpower for its
various requirements of professionals and support staff. The range may require reasonably
educated security guards on the one end and a highly educated and trained professional as head
of corporate finance , production process, marketing, sales quality and the other related work.
With liberalization of activities within the steel sector, for example, produce the new product in
market for modern township project product for defense, product with global environmental
condition and so many consumable projects. Steel industries has turned itself into a more market-
based business where industries have expanded their reach more to customers' door steps in a
big way making business more practical. This has further highlighted the need for proper
deployment of man-power to run industries more efficiently. For many years, HRM Tata steel like
other institutions has been handling this sensitive activity through respective personnel
departments. Personnel departments were primarily engaged in approval of leaves, handling of
staff loans, issuance of show cause, conducting disciplinary enquiries and termination from service.
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Recruitment was a routine function and was done in a mechanical way to hire people with specific
educational background irrespective of their real value to the institution. Success stories of Tata
steel have been evident of the fact that HRM is quite different from management of physical
assets. Human brain has its own peculiar chemistry. Its strong sensory and decision-making
capacity has to be greatly emphasized by the employers. The work force constituting all levels of
employees is constantly thinking in many dimensions. On the one hand it is the assigned duty and
task they are to perform and for which they are paid by their employer, on the other they think of
their long run goals and objectives. By no means, their brains can be controlled to think beyond the
current situation of employment. Managing this educated, skillful and trustworthy work force is not
an easy job. A few of the current challenges faced by the steel industry in terms of human
resource management may be the following:
 To make the entire System stronger, efficient and low-cost, the creation of Fundamentals
must include in the steel operations, strategies and processes: strengthening the Quality
norms and market discipline; adoption of international benchmarks; management of
Organizational change and consolidation within the financial system; upgrading the
technological infrastructure of the production system; and human resource development as
the catalyst of the Transformation.
 The Human Resource field in the steel Industry is considered as one of the process of
discovery and transformation. The field of Human Resource can be described as emergent
and dynamic within the cultural business aspect in a steel Industry. The success of today‘s
steel business will sparsely depends on the human resources of the organization, in which
plays a crucial role in providing the services needed.
 The evolution of steel production in India affected the human resource practices, recruitment
and selection practices, and training system. It is very important that the details of human
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resource are discussed along with the employees, to build their own career planning,
perceptions and development.
 The primary strength of the industry is the human resource that is why the efforts to develop
the skills and management are the main subject placed before the human resource. A major
challenge for many steel industries will be to develop the special competencies and skills for
quality production, sells development, marketing and risk management. Putting the
information technology is a key contributed in human resource development. Therefore, the
HR model of the future will require professionals to be both driving and anticipating change,
Understanding the complexities of the new business environment and forces to shaping it.
2.4 HR Practices and Methods
A key focus of the human resource management is highlighted in the role of Staffing, performance
management, training and development, and compensation that plays Indifferent types of business
strategies. With the acquisition and preparation of human resources, including planning,recruitment,
selection, and training can affect the whole organizational performance. The HR planning, the start
of the strategy, illustrates the process of developing human resource plan. The strengths and
weaknesses of staffing options such as outsourcing, use of contingent workers, and downsizing are
involved in practices. The recruitment process is done strategically to determine the talented
employee fit for the position. The selection process emphasizes the ways in minimizing errors in
employee selection and placement to improve the company‘s competitive position. The selection
method standards such as validity and reliability are utilized.
An effective training systems of the manager‘s role in determining employees readiness for
Training, creating a positive learning environment, and ensuring the training is used on the job.
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Beyond the human resource strategies are the rewarding and compensating that can strengthen or
weaken the employee effectiveness. In order to give recognition and increase motivational levels.
Amongst the employees, Tata steel linked with the individual performance in an incentive scheme
– or for some rewards that may come into any form like sabashi award, Suggestion management
scheme, kaizen coupon, and other direct or indirect benefit .In Summary, all of the HRM strategies
and function should be aligned to help the company meet Its objectives – as well as focusing on
their customers. The best practice approach assert that certain HR practices are found to
consistently lead to higher organizational performance, independent of an organization‘s stated
Strategy. The high performance HR practices foster innovation through the development of
Innovation values, Encouraging of information sharing, goal setting and appropriate training and
development
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CHAPTER-3
3.0 Job analysis, Job design and Job evaluation
A job is defined as a collection of duties and responsibilities which are given together to an
Individual employee. Job analysis is the process of studying and collecting information relating to
operations and responsibilities of a specific job. It can be explained with the help of the following
diagram.
3.1. Job analysis
Job Analysis is a process to identify and determine in detail the particular job duties and
requirements and the relative importance of these duties for a given job. Job Analysis is a process
where judgments are made about data collected on a job.
Job analysis contains a simple term called "analysis", which means detailed study or examination
of something (job) in order to understand more about it (job). Therefore job analysis is to
understand more about a specific job in order to optimize it. Job analysis is a systematic process
of collecting complete information pertaining to a job. Job analysis is done by job analyst who is an
officer have been trained for it.
Job analysis is a procedure through which you determine the duties and responsibilities, nature of
the jobs and finally to decide qualifications, skills and knowledge to be required for an employee to
perform particular job. Job analysis helps to understand what tasks are important and how they are
carried on. Job analysis forms basis for later HR activities such as developing effective training
program, selection of employees, setting up of performance standards and assessment of
employees ( performance appraisal)and employee remuneration system or compensation plan.
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The intention behind job analysis is to answer questions such as:
 What is the need of the job to exist?
 What physical and mental activities does the worker undertake?
 When is the job to be performed?
 Where is the job to be performed?
 How does the job performed by an employee?
 What qualities and qualifications are required to perform the job?
 Job description Job specification.
 Job title/ name of the job Qualification.
 Working hours Qualities.
 Duties and responsibilities Experience.
 Working conditions Family background.
 Salary and incentives Training.
 Machines to be handled on the job Interpersonal skills.
As mentioned in the above table job analysis is divided into 2 parts
a) Job Description
Job Description is a broad and written statement of a specific job in the organisation, based on
the findings of a job analysis. Job Description generally includes duties, purpose, responsibilities,
scope, and working conditions of a job along with the title of the job, and the name or designation
of the person to whom the employee will report. Job description usually forms the basis of job
specification.
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(b) Job specification
Job specification is a statement in which we explain the qualities required by people applying for
the job.
 Job specification as a statement of minimum qualification that person must possess to
perform a given job successfully --- Stephen. P. Robbins & Marry Coutler.
 Job specification is a statement of employee characteristics and qualifications required for
satisfactory performance of defined duties and tasks comprising a specific job or function.
Job specification is derived from job analysis.
While the job description describes activities to be done, it is job specifications that list the
knowledge, skills, and abilities an individual needs to perform a job satisfactorily. Knowledge, skills,
and abilities (KSAs) include education, experience, work skill requirements, personal abilities, and
mental and physical requirements. Job specifications for a data entry operator might include a
required educational level, a certain number of months of experience, a typing ability of 60 words
per minute, a high degree of visual concentration, and ability to work under time pressure. It is
important to note that accurate job specifications identify what KSAs a person needs to do the job,
not necessarily what qualifications the current employee possesses.
The following are the benefits of job analysis.
1. Organizational structure and design:-
Job analysis helps the organization to make suitable changes in the organizational structure, so
that it matches the needs and requirements of the organization. Duties are either added or deleted
from the job.
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2. Recruitment and selection:-
Job analysis helps to plan for the future human resource. It helps to recruit and select the right
kind of people. It provides information necessary to select the right person.
The recruitment and selection process is important for new and established businesses alike.
human resources department has the support and expertise of employment specialists who assist
hiring managers with the procedures to ensure the company's leaders are making wise hiring
decisions. There are several pieces to the recruitment and selection process: sourcing candidates,
reviewing and tracking applicants, conducting interviews and selection for employment.
3. Performance appraisal and training/development:-
Based on the job requirements identified in the job analysis, the company /individual department
decides a training program. Training is given in those areas which will help to improve the
performance on the job. Similarly when appraisal is conducted we check whether the employee is
able to work in a manner in which we require him to do the job.
4. Job evaluation:-
Job evaluation refers to studying in detail the job performance by all individual. The difficulty levels,
skills required and on that basis the salary is fixed. Information regarding qualities required, skilled
levels, difficulty levels is obtained from job analysis.
5. Promotions and transfer:-
When Tata steel give a promotion to an employee company need to promote him on the basis of
the skill and talent required for the future job. Similarly when company transfers an employee to
another department or unit the job must be very similar to what he has done before. To take these
decisions company collect Information from job analysis.
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6. Career path planning:-
Many companies have not taken up career planning for their employees. This is done to prevent
the employee from leaving the company. When company plans the future career of the employee,
information will be collected from job analysis. Hence job analysis becomes important or
advantageous for company as bell as employee.
7. Labour relations:-
When companies plan to add extra duties or delete certain duties from a job, they require the help
of job analysis, when this activity is systematically done using job analysis the number of problems
comes on the account of management, discuss with Tata worker union members to reduce the
labour problem and improve the labour relations.
8. Health and safety:-
Tata steel prepares their own health and safety, plans and programs based on job analysis and
under guidance of factory act 1948 with Bihar factory rule. From the job Analysis Tata steel
identifies the risk factor on the job and based on the risk factor.
Company provide the safety equipment’s, safety appliances and safety training to improve the
safety condition and safe work place for employee as bell as visitor or contractor labor. Tata steel
is one of the steel companies who follow DuPont safety stander in its work place for its aim to zero
accident policy.
9. Acceptance of job offer:-
When a person is given an offer/appointment letter the duties to be performed by him are clearly
mentioned in it, this information is collected from job analysis, which is why job analysis becomes
important.
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Methods of job analysis
Def: - A job is defined as a collection of duties and responsibilities which are given together to an
individual employee. Job analysis is the process of studying and collecting information relating to
operations and responsibilities of a specific job.
There are different methods used by Tata steel to collect information and conduct the job analysis.
These methods are
1.Personal observation:-
In this method the observer actually observes the concerned worker. He makes a list of all the
duties performed by the worker and the qualities required to perform those duties based on the
information collected, job analysis is prepare.
2. Actual performance of the job:-
In this method the observer who is in charge of preparing the job analysis actually does the work
himself. This gives him an idea of the skill required, the difficulty level of the job, the efforts
required etc.
3. Interview method:-
In this method an interview of the employee is conducted. A group of experts conduct the
interview. They ask questions about the job, skilled levels, and difficulty levels. They question and
cross question and collect information and based on this information job analysis is prepared.
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4. Critical incident method:-
In this method the employee is asked to write one or more critical incident that has taken place on
the job. The incident will give an idea about the problem, how it was handled, qualities required
and difficulty levels etc. critical incident method gives an idea about the job and its importance. (A
critical means important and incident means anything which takes place in the job)
5. Questioner method: -
In this method a questioner is provided to the employee and they are asked to answer the
Questions in it. The questions may be multiple choice questions or open ended questions. The
Questions decide how exactly the job analysis will be done. The method is effective because
People would think twice before putting anything in writing.
6. Log records:-
Companies can ask employees to maintain log records and job analysis can be done on the basis
of information collected from the log record. A log record is a book in which employee‘s record /
writes all the activities performed by them on the job. The records are extensive as well as
exhausted in nature and provide a fair idea about the duties and responsibilities in any job.
7. HRD records: -
Records of every employee are maintained by HR department. The record contain details about
Educational qualification, name of the job, number of years of experience, duties handled, any
Mistakes committed in the past and actions taken, number of promotions received, area of work,
core competency area, etc. based on these records job analysis can be done.
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3.2 .Job design
Definitions: - Job design is the process of formation of structure to work activities. This is a
systematic process of organizing specific job. It is thus, the logical sequence of job analysis which
provides the job related data and skill requirement of the incumbent.
It is the management function of organizing tasks, duties and responsibilities into a unit of work. It
helps to set the purpose, fix and task characteristics and duties. Job design is another words, can
be defined as the integration of job content and the method of doing the job. This combines the
qualification, skills and experience required for the job intrinsic and extrinsic rewards associated
with job, and the basic relationship between organizational needs and employee needs.
Job design is the process of
a) Deciding the contents of the job.
b) Deciding methods to carry out the job.
c) Deciding the relationship which exists in the organization.
Job analysis helps to develop job design and job design matches the requirements of the job with
the human qualities required to do the job.
Factors affecting job design: - There are various factors which affect job design in the
company. Factors affecting job design
1. Organizational factors
2. Environmental factors
3. Behavioral factors
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1. Organizational factors:-
Organizational factors to refer to factors inside the organization which affect job design they are
a) Task characteristics:-
Task characteristics refer to features of the job that is depending on the type of job and the duties
involved in it the organization will decide, how the job design must be done. In case the company
is not in a position to appoint many people; a single job may have many duties and vice versa.
b) The process or flow of work in the organization:-
There is a certain order in which jobs are performed in the company. In case the company wishes
it could combine similar job and give it to one person this can be done if all the jobs come one
after the other in a sequence.
c) Ergonomics:-
Ergonomics refers to matching the job with physical ability and characteristics of the individual
band in providing an office environment which will help the person to complete the jobs faster and
in a comfortable manner.
d) Work practices:-
Every organization has different work practices. Although the job may be the same the method of
doing the job differs from company to company. This is called work practice and it affects job
design.
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2. Environmental factors:-
Environmental factors which affect job design are as follows
a) Employee availability and ability:-
Certain countries face the problem of lack of skilled labour. They are not able to get employees
with specific education levels for jobs and have to depend on other countries due to this job design
gets affected.
b) Social and cultural expectations:-
The social and cultural conditions of every country is different so when an MNC appoints an Indian
it has to take into account like festivals, auspicious time, inauspicious time, etc. to suit the Indian
conditions. This applies to every country and therefore job design will change accordingly.
3. Behavioral factors:-
Job design is affected by behavioral factors also. These factors are
a) Feedback: -
Job design is normally prepared on the basis of job analysis and job analysis requires employee
feedback based on this employee feedback all other activities take place. Many employees are
however not interested in providing a true feedback because of fear and Insecurity. This in turn
affects job deign.
c) Autonomy :-
Every worker desires a certain level of freedom to his job effectively. This is called
autonomy. Thus when we prepare a job design we must see to it that certain amount of
autonomy is provided to the worker so that he carries his job effectively.
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c) Variety:-
When the same job is repeated again and again it leads to burden and monotony. This leads to
lack of interest and carelessness on the job. Therefore, while preparing job design certain amount
of variety must be provided to keep the person interested in the job.
Methods of job design
There are various methods in which job design can be carried out. These methods help to analysis
the job, to design the contents of the and to decide how the job must be carried out.
These methods are as follows: -
I. Job rotation
II. Job enlargement
III. Job enrichment
1. Job Rotation: -
Job rotation involves shifting a person from one job to another, so that he is able to understand
and learn what each job involves. The company tracks his performance on every job and decides
whether he can perform the job in an ideal manner. Based on this he is finally given a particular
posting. Job rotation is done to decide the final posting for the employee e.g. Mr. A is assigned to
the marketing department whole he learns all the jobs to be performed for marketing at his level in
the organization .after this he is shifted to the sales department and to the finance department and
so on. He is finally placed in the department in which he shows the best performance Job rotation
gives an idea about the jobs to be performed at every level. Once a person is able to understand
this he is in a better understanding of the working of organization
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Advantages of job rotation
i. Avoids monopoly:-Job rotation helps to avoid monopoly of job and enable the
employee to learn new things and therefore enjoy his job
ii. Provides an opportunity to broaden one’s knowledge:-Due to job rotation the
person is able to learn different job in the organization this broadens his knowledge
iii. Avoiding fraudulent practice:-In an organization like bank jobs rotation is
undertaken to prevent employees from doing any kind of fraud i.e. if a person is
handling a particular job for a very long time he will be able to find loopholes in the
system and use them for his benefit and indulge (participate) in fraudulent practices job
rotation avoids this.
Disadvantages of Job Rotation
i. Frequent interruption:- Job rotation result in frequent interruption of work .A
person who is doing a particular job and gets it comfortable suddenly finds himself
shifted to another job or department .this interrupts the work in both the departments
ii. Reduces uniformityin quality :- Quality of work done by a trained worker is
different from that of a new worker .when a new worker I shifted or rotated in the
department, he takes time to learn the new job, makes mistakes in the process and
affects the quality of the job.
Misunderstanding with the union member: - Sometimes job rotation may lead
to misunderstanding with members of the union. The union might think that employees
are being harassed and more work is being taken from them. In reality this is not the
case.
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2. Job enlargement: -
Job enlargement is another method of job design when any organization wishes to adopt proper
job design it can opt for job enlargement. Job enlargement involves combining various activities at
the same level in the organization and adding them to the existing job. It increases the scope of
the job. It is also called the horizontal expansion of job activities.
Jon enlargement can be explained with the help of the following example - If Mr. A is working as
an executive with a company and is currently performing 3 activities on his job after job
enlargement or through job enlargement we add 4 more activities to the existing job so now Mr. A
performs 7 activities on the job. It must be noted that the new activities which have been added
should belong to the same Hierarchy level in the organization. By job enlargement we provide a
greater variety of activities to the individual so that we are in a position to increase the interest of
the job and make maximum use of employee‘s skill. Job enlargement is also essential when
policies like VRS are implemented in the company.
Advantages of job enlargement
i. Variety of skills: - Job enlargement helps the organization to improve and increase the skills
of the employee due to organization as well as the individual benefit.
ii. Improves earning capacity:- Due to job enlargement the person learns many new
activities. When such people apply for jobs to other companies they can bargain for more salary.
iii. Wide range of activities:-Job enlargement provides wide range of activities for employees.
Since a single employee handles multiple activities the company can try and reduce the number of
employee‘s. This reduces the salary bill for the company.
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Disadvantages of job enlargement
i. Increases work burden:- Job enlargement increases the work of the employee and not
every company provides incentives and extra salary for extra work. Therefore the efforts of the
individual may remain unrecognized.
ii. Increasing frustration of the employee: - In many cases employees end up being
frustrated because increased activities do not result in increased salaries.
iii. Problem with union members:- Many union members may misunderstand job
enlargement as exploitation of worker and may take objection to it.
3. Job enrichment: -
Job enrichment is a term given by Fredric Herzberg. According to him a few motivators are added
to a job to make it more rewarding, challenging and interesting. According to Hertzberg the
motivating factors enrich the job and improve performance. In other words we can say that job
enrichment is a method of adding some motivating factors to an existing job to make it more
interesting.
The motivating factors can be
a. Giving more freedom.
b. Encouraging participation.
c. Giving employees the freedom to select the method of working.
d. Allowing employees to select the place at which they would like to work.
e. Allowing workers to select the tools that they require on the job.
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f. Allowing workers to decide the layout of plant or office.
Job enrichment gives lot of freedom to the employee but at the same time increases the
responsibility. Some workers are power and responsibility hungry. Job enrichment satisfies the
needs of the employees.
Advantages of job enrichment
i. Interesting and challenging job: - When a certain amount of power is given to employees
it makes the job more challenging for them, we can say that job enrichment is a method of
employee empowerment.
ii. Improves decision making: - Through job enrichment we can improve the decision making
ability of the employee by asking him to decide on factory layout, method and style of working.
iii. Identifies future managerial caliber: -When we provide decision making opportunities to
employees, we can identify which Employee is better that other in decision making and mark
employees for future promotion.
iv. Identifies higher order needs of employees:- This method identifies higher order
needs of the employee. Abraham Maslow‘s theory of motivation speaks of these higher order
needs e.g. ego and esteemed needs, self-actualization etc. These needs can be achieved through
job enrichment.
v. Reduces work load of superiors:- Job enrichment reduces the work load of senior staff.
When decisions are taken by juniors the seniors work load is reduced.
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Disadvantages of job enrichment
i. Job enrichment is based on the assumptions that workers have complete knowledge to take
Decisions and they have the right attitude. In reality this might not be the case due to which there
can be problems in working.
ii. Job enrichment has negative implications i.e. Along with usual work decision making work is
also given to the employees and not many may be comfortable with this.
iii. Superiors may feel that power is being taken away from them and given to the junior‘s. This
Might lead to ego problems.
iv. This method will only work in certain situations. Some Responsibility; this method will not work
for such jobs.jobs already give a lot of freedom and
v. Some people are internally dissatisfied with the organization. For such people no amount of job
enrichment can solve the problem.
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3.3 Job Evaluation
Job evaluation is a process of determining the relative worth of a job. It is a process which is
helpful even for framing compensation plans by the personnel manager. Job evaluation as a
process is advantageous to a company in many ways:
I. Reduction in inequalities in salary structure – It is found that people and their
motivation is dependent upon how well they are being paid. Therefore the main objective of job
evaluation is to have external and internal consistency in salary structure so that inequalities in
salaries are reduced.
ii.Specialization – Because of division of labour and thereby specialization, a large number of
enterprises have got hundred jobs and many employees to perform them. Therefore, an attempt
should be made to define a job and thereby fix salaries for it. This is possible only through job
evaluation.
Iii. Helps in selection of employees – The job evaluation information can be helpful at the
time of selection of candidates. The factors that are determined for job evaluation can be taken into
account while selecting the employees.
iV. Harmonious relationship between employees and manager - Through job
evaluation, harmonious and congenial relations can be maintained between employees and
management, so that all kinds of salaries controversies can be minimized.
V. Standardization - The process of determining the salary differentials for different jobs
become standardized through job evaluation. This helps in bringing uniformity into salary structure.
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Vi.Relevance of new jobs - Through job evaluation, one can understand the relative value of
new jobs in a concern.
According to Kimball and Kimball,“ Job evaluation represents an effort to determine the relative
value of every job in a plant and to determine what the fair basic wage for such a job should be.”
Thus, job evaluation is different from performance appraisal. In job evaluation, worth of a job is
calculated while in performance appraisal, the worth of employee is rated.
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CHAPTER-4
4.0 Human Resource Planning
This is the process which assures the organization that it will have adequate number of qualified
persons, at requisite times, performing in a way to satisfy the needs of the organization & also
provide satisfaction to the individual employee, so employed.
The process involves:
a) Estimating the present & future requirements of human resources based on objectives & long
range plans of the organization.
b) Calculation of net human resource requirements based on the present availability of human
resources.
c) Taking suitable steps to identify, mould, change & develop the strength of existing employees
so as to meet the future requirements.
d) Preparation of action plans to acquire the balance human resources from outside the
organization & to develop the existing employees.
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4.1. Recruitment:
It is the process of searching for future employees (requirement) & ensuring they apply for jobs
in the organization. It involves:
a) Identification of existing sources of candidates & developing them.
b) Seeking out & identifying new sources of applicants.
c) Motivating the right type of candidates to apply for jobs in the organization.
d) Ensuring a healthy balance between internal & external sources.
4.2. Selection:
It is the process of ascertaining the qualifications, experience, skill, Knowledge, etc. of an applicant
to ascertain his/her suitability for the job applied.This includes:
a) Developing application blanks.
b) Creating & developing valid & reliable testing techniques.
c) Formulating interviewing techniques.
d) Checking of references.
e) Setting up for medical examination policy & procedure.
f) Line Managers to be involved in the decision making.
g) Sending letters of appointment.
h) Employing the selected candidates, when he reports for duty.
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4.3. Placement:
It is a process of allotting to the selected candidate the most suitable job, as per the job
requirements & employee specifications.
This function includes:
a) Counseling the concerned managers regarding the placements.
a) Overseeing the follow-up studies, employee performance appraisal to monitor
employee adjustment to the job, in the coming days.
b) Correcting wrong/misjudged placements, if any.
4.4. Induction & Orientation:
These are procedures by which a new employee is rehabilitated in the new surroundings &
introduced to the practices, procedures, policies, people, etc. of the organization. It includes:
a) Familiarizing the employee with company philosophy, objectives, policies, career planning &
development, company product, market share, history, culture, etc.
b) Introduce new employee to the people—his colleagues, supervisors & subordinates.
c) Mould the employees by orientation methods to the new working conditions
54
CHAPTER-5
5.0 Human Resource Development
This process involves improving, molding, & developing the skills, knowledge, creativity, attitude,
aptitude, values, commitment, etc. based on the present & future job & company Requirements.
Human Resource Development (HRD) is the framework for helping employees develop their
personal and organizational skills, knowledge, and abilities.
HRD is one of the most significant opportunities that employees seek when they consider you as
an employer. The ability, and encouragement, to continue to develop their skills help you to retain
and motivate employees.
Human Resource Development includes such opportunities as employee training, employee career
development, performance management and development, coaching, mentoring, succession
planning, key employee identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing the most superior
workforce so that the organization and individual employees can accomplish their work goals in
service to customers. Organizations have many opportunities for human resources or employee
development, both within and outside of the workplace.
Human Resource Development can be formal such as in classroom training, a college course, or
an organizational planned change effort. These are the options that you have for developing your
employees. Formal training can add value in your workplace.
55
Or, Human Resource Development can be informal as in employee coaching by a manager or
internal training and development classes taught by internal staff or a consultant. Mentoring by
more experienced employees is also recommended for employee development.
It is especially useful as employees become more senior within organization. Traditionally,
executive leaders and senior managers are resistant to training classes and conference
educational sessions. Healthy organizations believe in Human Resource Development and cover
all of these bases. One option that is recommended, in preference to many other ways in which
organizations develop employees, is to provide internal training either with internal staff or a paid
facilitator or consultant.
1. Performance Appraisal:
It is the continuous & systematic evaluation of individual employees with respect to their
performance & their potential for future development.
It includes:
a) Enunciating policies, procedures & techniques.
b) Assisting functional managers.
c) Reviewing & summarizing reports.
d) Evaluating the effectiveness of various programmes.
56
2. Training:
It is the process of transmitting the employees the technical & operating skills and knowledge. It
includes
a) Identification of training needs of the individuals & for the organization.
b) Developing appropriate training programmers.
c) Assisting & advising the management in the conduct of training programmes.
d) Transmitting requisite job skills & job knowledge to the employees.
e) Asses the effectiveness of the training programmes.
5.1 Management Development:
It is the process of designing & conducting appropriate executive development programmes so as
to develop the managerial & human relations skills of the employees. It includes:
i. Identification of the areas in which management development is needed.
Ii.conducting development programmers.
Iii Motivating executives/managers.
iv. Designing special development programmers/ assessment procedures for promotions.
V Utilizing the services of specialists-both internal & external for development &/or Institutional
(external) development programmes.
vi Evaluating the effectiveness of executive development programmes.
57
5.2. Career Planning & Development:
Effective HRM encompasses career planning, career development and succession planning. An
organization without career planning and career development initiatives is likely to encounter the
highest rate of attrition, causing much harm to their plans and programmes. Similarly without
succession planning managing of vacancies, particularly at higher levels, become difficult. There
are examples of many organizations that had to suffer for not being able to find a right successor
for their key positions. With the increase scope for job mobility and corporate race for global
headhunting of good performers, it is now a well-established fact that normal employment span for
key performers remains awfully short.
The term career planning and career developments are used interchangeably in most of the
organizations. It is the planning of one‘s career & implementation of career plans by means of
education, training, job search & acquiring of work experience. It includes:
i. Internal and External mobility :-
The lateral or vertical movement (promotion, transfer, demotion or separation) of an employee
within an organization is called ´internal mobility.
‡Some employees leave the organization for reasons such as better prospects, retirement,
termination, etc. such movements are known as external mobilityµ
Vertical, horizontal transfers, promotions and demotion is the part of internal mobility.
58
NEED FOR INTERNAL MOBILITY - The internal mobility is needed for the following reasons -
 Changes in technology, mechanisation etc. resulting in enhancement of job demands.
 Expansion and diversification of production/operations.
 Adding different lines of auxiliary and supportive activities in the organisation.
 Taking up of geographical expansion and diversification.
 Introduction of creative and innovative ideas in all the areas of management resulting in-
increased job demands.
 Changes in employee skill, knowledge, abilities aptitude, values etc
 Changing demands of trade unions regarding protecting the interests of their members.
 Changing government role in human resource management.
 Economic and business trends and their impact on job design and demands.
ii. Transfer:-
Process of placing employees in the same level jobs where they can be utilized more effectively as
per the needs of the organization. This also means developing transfer policies, offering assistance
& guidance to employees under transfer orders & evaluating transfer policy periodically.
iii. Promotion:-
It deals with the upward assignment of employees to occupy higher positions (with better status &
pay) in consonance with resources of employees & job requirement. The department must ensure
that.
 Equitable, fair & consistent promotions are formulated & administered.
 Managers & employees are given assistance & guidance on the subject of promotion.
 Executions of promotional policies are as per policies & procedures.
59
iv. Demotion: -
it is the downward assignment of an employee in an organization. The department must ensure
that:
 Equitable, fair & consistent demotion policies are drawn up.
 Assisting & advising employees regarding demotions.
 Ensure fair implementation of demotion Policies & Procedures.
5.3. Organizational Development:
The planned process drawn up to improve organizational effectiveness through changes in
individual & group behavior, culture & systems of the organization—drawing models from applied
behavioral science.
Theory and practice of planned, systematic change in the attitudes, beliefs, and values of the
employees through creation and reinforcement of long-term training programs. OD is action
oriented. It starts with a careful organization-wide analysis of the current situation and of the future
requirements, and employs techniques of behavioral sciences such as behavior modeling,
sensitivity training, and transactional analysis. Its objective is to enable the organization in
adopting-better to the fast-changing external environment of new markets, regulations, and
technologies.
60
CHAPTER-6
6.0 Compensations Management
The Definitionof Compensation Management:
In simple terms, compensation is everything that a company offers its employees in return for their
talent and time. When organized the right way, compensation can be strategically leveraged to
reduce turnover, boost employee engagement and attract top talent. The purpose of compensation
management is to make the most of company pay in rupees in a way that rewards employees for
their work.
Why is Compensation Management so important?
Compensation management makes a company vigilant. It drives managers to be on the look out
for star performers who must be given rewards for their efforts, which ultimately decreases the risk
of losing a valuable employee.
It is positive reinforcement. Yes, money doesn’t make the world go round and if line managers are
not friendly, helpful and supportive retention is difficult. But cash prizes and consistent monetary
perks in conjunction with a great work environment allow companies to grow by leaps and bounds
through motivated, hardworking employees.
Compensation management enhances the company’s reputation. When workers are satisfied with
their monetary and intangible rewards, they attract better prospects for vacant positions, bringing
new, fresh talent to the organization.
61
6.1. Compensation
Compensation includes all the extrinsic rewards that an employee receives during and after the
course of his sob. For his contributions to the organization. The principles of compensation
payment are that it has to be adequate, equitable and fair to the employees. Compensation
encompasses base salary, incentives, bonus and benefits and is based on job evaluation.
Job evaluation-
It is a systematic determination of the value of each job in relation to other jobs in the organization,
in the industry and in the market. In other words, job evaluation involves classifying a job based on
its importance and its contribution to the organization and its requirements.
It involves
 Identifying/designing suitable job evaluation techniques;
 Evaluating various jobs;
 Ascertaining the relative worth of jobs in various categories.
Wage and salary administration –
The process of formulating and operating a suitable wage and salary program is known as wage
and salary administration.
It includes:
 Conducting wage and salary survey in the market and in the industry;
 Determining wage and salary rates on the basis of various factors like law, equity, fairness
and performance;
 Implementing wage and salary administration programs;
62
i. Incentives-
Incentives are the rewards an employee earns in addition to regular wages or salary based on the
performance of the individual, the team or the organization.
Ii Bonus
Bonus is primarily a share in the surplus or bounty and is directly related to the organization‘s
performance. In India, the payment of bonus is a very popular means of rewarding employees and
is governed by The Payment of Bonus Act 1965. Fringe benefits — Fringe benefits are those
monetary and non-monetary benefits given to employees during their employment, and sometimes,
in the post-employment period also. These benefits are connected to employment with the
organization and are not related to the employee‘s performance.
These benefits provide a sense of security to the employee and keep them committed to the
organization. Some of the marginal benefits include;
 Disablement benefits
 Housing facilities
 Canteen facilities
 Conveyance facilities
 Educational facilities for employees and their children
 Credit facilities
 Recreational facilities
 Medical and welfare facilities
 Post-retirement benefits
 Company stores
 Legal aid
63
6.2. Compensations and Benefits:
Compensation and benefits is a sub-discipline of human resources, focused on employee
compensation and benefits policy-making. While compensation and benefits are tangible, there are
intangible rewards such as recognition, work-life and development. Combined, these are referred
to as total rewards. The term "compensation and benefits" refers to the discipline as well as the
rewards themselves.
Employee compensation and benefits are divided into four basic categories:
1. Guaranteed pay – a fixed monetary (cash) reward paid by an employer to an employee. The
most common form of guaranteed pay is base salary. Guaranteed pay also includes cash
allowances (housing allowance, transport allowance, etc.), differentials (shift differentials, holiday
differentials) and premiums (overtime, night shift, etc.)
2. Variable pay – a non-fixed monetary (cash) reward paid by an employer to an employee that is
contingent on discretion, performance, or results achieved. The most common forms of variable
pay are bonuses and incentives.
3. Benefits – programs an employer uses to supplement employees’ compensation, such as paid
time off, medical insurance, company car, and more.
4. Equity-based compensation – stock or pseudo stock programs an employer uses to provide
actual or perceived ownership in the company which ties an employee's compensation to the long-
term success of the company. The most common examples are stock options.
Tata steel provide compensations to its employees in shape of Cost of any medical Treatment in
Tata main hospital (TMH) Jamshedpur and tie up with India most trusted hospital like CMC
Vellore , Medanta Gurugram etc.
64
Cancelled Holidays fees, Repair of vehicle, any injury while doing job tasks and some other.
Employees can claim their compensation if any above case occurs. Benefits which are provided By
Tata steel are Paid time off, Retirement, Disability Insurance, Education and training programs. In
Paid time off benefits the employee is paid for the time he don‘t worked duo to vacation, holiday
pay and sick pay.
Retirement benefits are in shape of pension, gratuity, provident fund and superannuation fund. In
disability Tata steel provide financial support when an employee becomes injured or ill and is
unable to do his/her job and in education & training programs Tata steel provide different
education & training to their employees to furbish their skill. Tata Steel benefits and perks,
including insurance benefits, retirement benefits, and vacation policy.
Compensation managers are responsible for researching, establishing, and maintaining a
company's pay system. In performing this important function, the compensation manager has to
research and understand the current and upcoming competitive markets for employee pay and
benefits. They must find ways to ensure that pay rates are fair and equitable to retain and recruit
employees.
The compensation manager may specialize, in larger organizations, in specific areas such as job
classification or market pay studies.
Compensation managers meet with line managers to help develop promotion and retention
strategies for existing employees.
They may be responsible for annual increase programs since companies often tie annual salary
increases to performance. Thus, a compensation manager can find herself working closely with
individual managers as well as HR business partners, HRIS experts and the payroll department to
ensure that raises are done correctly and fairly.
65
CHAPTER-7
7.0 Human Relations
Human relations in the workplace are a major part of what makes a business work. Employees
must frequently work together on projects, communicate ideas and provide motivation to get things
done. Without a stable and inviting workplace culture, difficult challenges can arise both in the
logistics of managing employees and in the bottom line. Businesses with engaging workplaces and
a well-trained workforce are more likely to retain and attract qualified employees, foster loyalty with
customers and more quickly adapt to meet the needs of a changing marketplace.
Administering various human resources policies like employment development &compensation &
interactions among the employees on one hand & employees & the management on the other,
create a sense of working relationships between workers & management & trade unions. Basically
they are all interactions between human beings. Human relations, is therefore, is an important area
in management which integrates people into work situations in a way that motivates people to work
together with economic, psychological & social satisfaction thereby increasing their productivity.
Hence Human Resources Management functions will center on.
1. Understanding perception, personality, learning, intra & inter personal relations, inter & intra
group relations.
2. Motivating all employees.
3. Promoting employee morale.
4. Developing communication skills.
5. Developing leadership skills.
66
6. Redressing satisfactorily through a well-defined grievance procedure.
7. Handling disciplinary cases by established disciplinary procedures & in all fairness.
8. Providing adequate counseling to solve employees ‘personal, work & family problems, thereby
releasing their stress & strain.
The main aim of Human relations in the workplace is.
Improving Retention
The quality of workplace relations is critical to employee retention. Employee retention may seem
trivial, especially in a workplace that is used to a high turnover, but managers must remember that
turnover is financially very costly. Every new employee requires a substantial investment of time
and energy in their recruitment and training. In addition, severing ties with old employees can
sometimes be challenging, especially if the circumstances are not particularly amicable. Making
sure quality employees remain interested and engaged in the business requires patience,
compassion and flexibility, but can actually make the business more financially sound.
Motivation and Productivity
Workplace relationships provide a source of employee motivation, which is important to maintaining
productivity. Employees who are interested in their work and in the well-being of other employees
tend to be more productive than those who are not. This productivity pays obvious financial
dividends to the company, as it can get more done in less time with fewer costs.
Fostering Creativity
The modern business environment often rewards businesses that are able to quickly develop
products that meet changing consumer needs.
67
CHAPTER-8
8.0 HUMAN RESOURCE MANAGEMENT IN STEEL INDUSTRIES
The classification of the Steel industries into broad groups such as public sector, old private sector,
new private sector, on the basis of ownership pattern. It is also well known that the business mix,
delivery channels & IT strategies of these organizations vary substantially. What is little known but
of greater importance is that each of these industries follows very distinct HR practices which have
contributed, substantially, to the business processes.
Personnel management in a steel plant is concerned with obtaining, organizing, utilizing and
motivating the human resources needed by the steel plant. It develops requisite organizational
climate and management styles to promote effective effort of cooperation and trust amongst all the
employees of the steel plant. It aims at getting effective results by organizing and directing the co-
operative efforts of human beings. This also helps the organization in meeting its legal obligations
and social responsibilities.
Personnel management is an extension of the general management in the organization. It is
concerned with promoting and stimulating competent work force so that they can make their fullest
contribution to the organization for the achievement of its objectives and goals
68
8.1. HRM IN SMALL PRIVATE STEEL INDUSTRIES
It is sad that the HR policies of private steel industries are totally dominated by the Registrar of
Company. This is, perhaps, one reason why the cooperatives are unable to improve themselves.
The HR function as practiced by private is effectively involved in the identification of specific skills
that each job warrants & recruiting suitable staff by every way possible. Recruitment is a
continuous process with a strong focus on getting the right person for the right job by offering
appropriate compensation, incentives & designations. There is a great energy spent in keeping the
turnover low & offering appropriate training inputs. Possibly there are as many pay structures as
there are employees. More importantly, HRM has a role in monitoring & mentoring the employee.
There are no routine transfers. Rather people are recruited in different geographical locations &
different levels. Technology has helped in centralizing the back office & other functions such that
service can be provided from a distance.
These institutions adopt a proactive performance appraisal system but still short of 360 Degree
appraisals. Their training process is concerned with both skills building & motivating. It should,
however be said that the demand for professionals on account of growth of Indian Business is such
that the efforts of HRM have not helped it from completely staving off staff turnover in the ranks.
69
8.2. HRM IN PUBLIC SECTOR STEEL INDUSTRIES
The concepts of the phenomenon of change enunciated in the preceding chapter and different
viewpoints forwarded therein provide valuable insights into this area of management which has
assumed critical importance for the survival and growth of business organization in the present
context. It will also help in understanding the process of growth of public sector and steel industry
in India. The study of the growth of steel industry per se and the mariner in which the company
under study reacted to it would further lead to important understanding of the management of
change practiced by the company under study.
In the recent times, the contours of HR function in public sector steel industries are slowly but
definitely changing. One could say that these sectors are discovering the HR function & it is hoped
that these industries will fast catch up with others. It may be recalled that, in a controlled
environment & to meet with the rapid expansion project.
HRM practices similar to that of Government departments. Here in HRM did not have a direct role
in business development but was more concerned with centralized recruitment to staff & providing
them across the country.
70
CHAPTER-9
9.0 Role and Responsibilities of the Human Resource Management in
Tata steel ltd.
While the impact of the global economic crisis has been felt in varied degrees across all the
geographies in which the Tata Steel Group (TSG) operates, keeping the employees cheerful and
motivated in these trying times has remained the focus of the Human Resources department. The
Group realises that its employees are the most valuable human capital and that they play a major
role in building the competitive advantage of the Company’s business across the globe.
As the economic crisis hit the world, Tata Steel Europe (TSE) employees contributed to the
‘Weathering the Storm’ initiatives to reduce costs and increase value, in the second half of the
financial year. The company, the employees and the trade unions demonstrated the strength of
their relationships by working together in the difficult times. Despite the present economic crisis,
TSE has been able to maintain its position as an employer of choice through the following
initiatives:
 By demonstrating its commitment to health and safety.
 By maintaining a level of apprentice and graduate recruitment.
 By demonstrating the value of its culture of innovation and improvement by delivering value
creation and cost reductions.
 By building and maintaining positive employee relations by agreeing to innovative
partnership deals with employee representatives and trade unions to reduce employment
costs and minimise redundancies.
71
 By taking the highest moral approach in its management of redundancies and their impact
on the communities in which they occur.
 By working with governments and other agencies in support not only of its own workforce
but those of its customers and manufacturing as a whole. This is done to support the
industry and demonstrate its central role to society and the countries in which the Group
operates in Tata steel ltd
9.1. Role of Human Resource Management:
The role of the Human Resource Department is to create the climate & conditions in which
management throughout the industries will be enabled to optimize the individual & collective
contribution of all employees to the short & long-term success in Tata steel ltd. The main role of
Human Resource management department in Tata steel is
 Recruitment
 Training
 Professional Development
 Maintaining Work Culture
 Resolving Conflicts
 Employee Relations
 Rewards and Incentives
 Legal Knowledge
 Payroll Management
 Organization
 Management
72
9.2. Responsibilities of Human Resource Management:
A human resource manager has two basic functions: overseeing department functions and
managing employees. For this reason, a human resources manager must be well-versed in each
of the human resources disciplines – compensation and benefits, training and development,
employee relations, and recruitment and selection. Core competencies HR managers have are
solid communication skills and decision-making capabilities based on analytical skills and critical
thought processes.
 To be the principal sponsor & ―guardian of HR policies in Tata steel.
 To propose & obtain agreement on changes to these policies from time to time & to
ensure that policies which have been agreed are being implemented throughout the
company.
 To contribute fully to the task of meeting the business challenges within company has to
face by supporting departmental, divisional Managers in continuously developing the
potential of employees & in creating conditions in which all the employees are motivated to
meet the objectives of the company.
 To continuously monitor the company strategies to ensure that HR policies are appropriate
& that employee numbers & skills are fully supportive of such strategies.
 To deliver a full range of personnel services in support of line management. These services
include manpower planning, recruitment/transfer, remuneration, and training & employee
welfare.
 To support line management in their day-to-day management of the workforce by providing
advice & consultancy on personnel & performance management issues.
73
CHAPTER-10
10.0 EMPLOYEE RELATIONS IN TATA STEEL.
“Employee Relation” is a function of many variables. Some of the contributing factors are
participative management, grievance settlement machinery, wage determination etc. Tata Steel is
the largest steel manufacturer in India with an annual capacity of 23.5 MT and employees
approximately 80,000. Tata Steel workers in a century-old history have not gone on a strike at
Jamshedpur, where its Indian manufacturing operations are largely based.
The functioning and model of Tata Steel in many ways can be perceived as ideal and other unions
across the country can adopt similar practices. Growth of the trade union is a response to the
challenge thrown by the modern industry. Viewed in this background, the origin of trade union
movement in Tata Steel were due to the same reason as elsewhere in Europe and America. Since
1907 dissatisfaction was increasing in the working class in Tata Steel. However, it was only in
1920 that labour organization was born after great struggle with the management.
The genesis of trade union Tata Steel can be traced back to 1920. Over the years the workers’
union has evolved under the capable leadership of stalwarts such as Mahatma Gandhi, Rajendra
Prasad and Subhas Chandra Bose to name a few.
At Tata Steel the prime focus in terms of HR practices is on people development and growth, and
employee relations, which is imbibed in the culture of caring for people. Tata Steel has always held
the view that people are its greatest asset. It has adopted the best standards for employee well-
being and quality of life, strongly promoting workforce rights. The other focal point is upholding the
Tata values through transparency and fairness in HR practices and policies.
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HRM Practices at Tata Steel

  • 1. 1 A PROJECT REPORT ON ‘’STUDY OF HRM IN CONTENTS OF TATA STEEL LTD’’ TATA STEEL LTD -JAMSHEDPUR‖ [Submitted in partial fulfillment] [M.BA Third Semester] Summer Internship Program As a part of the Curriculum of MASTER OF BUSINESS ADMINISTRATION [MBA] From, KOLHAN UNIVEERSITY –CHAIBASA (Jharkhand) Project submitted by Premchand Kumar jouriyar University registration No- KU1601327 University Roll No- 170709596978 Master of Business Administration, M.B.A (HR), 2016-18.
  • 2. 2 ACKNOWLEDGEMENT At the prime outset, we owe are sincere gratitude to the management and allied discipline of TATA STEEL (Jamshedpur), for giving an opportunity to undergo the summer training. The project report is inspired from the annual reports of the company, market survey and information provided by the employees in required fields. Whom I should certainly acknowledge, as without their contribution, this report would not have been appropriate. I also sincerely acknowledge the full co-operation and owe my enriching experience and the entire learning process to my project guides Mr.Amit Kr. Mehata, Mr. Sandeep Kr. Jaiswal and Mr. Vivek Kr. Singh, and special thanks to Dr. B.N.Prasad (Principal) Jamshedpur worker’s college –Jamshedpur without their help and guidance is would not have been possible to complete the project successfully. His constant guidance and help made my project work easier. We specially thank Mrs. Kolka Dutta Manager (HR&IR), Lime Plant Dept. Tata Steel Ltd. for his valuable guidance. We should appreciate and sincerely acknowledge suggestions fromMR.Rajeev Malhotra ,Chief Lime plant Dept. Tata steel Ltd, Mr. Avijit Bose, Head, Lime Plant Dept. Tata Steel, who has always been my source of incessant motivation and has always extended his unstinted support in the making of this project. We also thank Mr. Ajay Kumar Singh, personnel, TMDC for his kind attention to all our problems and queries during the Study period. Finally, I would like to thank my family for their lifelong love and support. I especially owe my sincere gratitude much to my parents and also the other faculty members of our college for offering their invaluable experience to help me. Without them, this work could not have been computed.
  • 3. 3 PREFACE We want to express our gratitude to Tata Steel (Jamshedpur), for the experience and Practical knowledge. It was the first time when we went to the market not to do anything but to do a survey to know the Market Potential and HR &IR practices. The main requirement was to interact with Worker and know the management functions. The project consists of company details, market research, data collection method, and questionnaire and data analysis. We hope that our findings and recommendations would help the company, to analyses its strategy in comparison to its competitors. We are obliged to work in such an esteemed organization and have tried our best to align our objective with the company’s goal. EXECUTIVE SUMMARY
  • 4. 4 TATA Steel is the leading Steel producer of HR sheet, CR sheet, structural steel, construction steel, commercial Tubes and many more product in the market with a well-established national and international network. It delivers quality and enjoys enormous brand equity. It faces threat from competitors who try to turn the market to their side by scoring over the points where TATA STEEL product falls short. Therefore, we, HR student, as management trainees in TATA STEEL, have undertaken a project, to find out how to increase the potential, productivity and efficiency of an employee. TATA STEEL-Jamshedpur: - Our main objectives are: (1) To find out and compare the Work environment at major companies in steel Producer. (2) To measure the threat of substitution from another segment. (3) To find out the critical factors that might result in loss of market share and brand equity. The sole purpose of our research work is to benefit the TATA STEEL, in following ways: (i) Critical factors of HR, once identified, can be worked upon so as to eradicate the risk of losing Company HR policies. (2) Working on the problematic areas would also save its reputation in the market. (3) Knowledge about strengths and weaknesses of the competitors from the same segment, would help the company build its HR strategies accordingly so as to maintain or increase its Goal and company policies. (4) Realizing opportunities, as, new working environment development substitution from the segment. This report is precise and purely specific to its purpose, targeted to enable Managers to take relevant decisions.
  • 5. 5 TABLE OF CONTENTS Chapter No. Particulars Page No. 1 1.0 Human Resource Management 7 1.1 Meaning of Human ResourceManagement 8-9 1.2 Characteristics of Human ResourceManagement 10-12 1.3 Need and Importanceof Human Resource Management. 13-16 2 2.0 Human Resource Management in Tata Steel Ltd. ( Overview Of Tata Steel Ltd) 17 2.1History, vision and Mission Of Tata Steel Ltd. 18 2.2 Business Divisions Of TheTata Steel Ltd. 19-28 2.3 HRM Background and Practices. 29-31 2.4 HR Practices and Methods. 31-32 3 3.0 Job analysis, Job Design and Job Evolution. 33 3.1 Job analysis 33-39 3.2 Job Design 40-48 3.3 Job Evolution. 49-50 4 4.0 Human Resource Planning 51 4.1. Recruitment: 52 4.2 Selection 52 4.3Placement 53 4.4 Induction & orientation 53 5 5.0 Human Resource Development 54-56 5.1 Management Development: 56 5.2. Career Planning & Development: 57-59 5.3. OrganizationalDevelopment: 59 6 6.0 Compensations Management 60 6.1. Compensation 61-62 6.2. Compensations and Benefits 63-64 7 7.0 Human Relations 65-66 8 8.0 Human Resource Management in Steel Industries. 67 8.1. HRM in small private steel industries 68
  • 6. 6 8.2. HRM in Public Sector steel industries 69 9 9.1. Role of Human Resource Management 70-71 9.2. Responsibilities of Human ResourceManagement: 72 10 10.0 Employee Relations In Tata steel. 73-74 11 11.0 Current HR Challenges Faced by Tata Steel Ltd. 75-77 12 12.0 HRDevelopment in Tata Steel Ltd. 78 12.1 79-82 12.2 83-84 12.3 85-90 13 13.0 HRMIssuein Tata Steel Ltd. 91 14 14.0 Leaveand SupportScheme Run by HRMTata Steel Ltd. 92 14.1 Types of Leaves. 92-95 14.2 SupportSchemeOrganiseBy Tata Steel Ltd. 95-105 15 15.0 OrganizationalProfileof Tata Steel Ltd. 106-108 15.1 Ownership Structure(Tata Steel) 109 15.2 Leadership Structure 110 15.3 Key performanceindicators (Tata Steel India) 111-112 16 16.0 Training and Development Function in Tata Steel Ltd.( Analysis Of Secondary Data) 113 17 17.0 Risk matrix of Tata steel Ltd-Jamshedpur. 114-115 18 18.1 BCG Matrix Analysis Of Tata Steel Ltd 116-117 18.2 BCG Matrix Analysis Of Tata Group 118 18.3 SWOTAnalysis Of Tata steel Ltd. 119 19 19.0 Key Finding. 120 19.1 Suggestion and Recommendations. 121 19.2 Limitation Of the Study. 122 19.3 Conclusion. 123
  • 7. 7 CHAPTER-1 1.0 Human Resource Management Human Resource Management or Personnel management is the activity of Managing personnel, usually employees. In any organization, managing personnel is the process of making sure the employees (not the customers) are as productive as they can be. This can include hiring, firing, or transferring people to/from jobs they can do most productively. Why name 'Human Resource Management'? Human: Refers to the skilled workforce in the organisation. Resource: Refers to limited availability or scarceness. Management: Refers how to optimize and make best use of such limited and a scarce resource so as to meet the ordination goals and objectives. Altogether, human resource management is the process of proper and maximise utilisation of available limited skilled workforce. The core purpose of the human resource management is to make efficient use of existing human resource in the organisation. The Best example at present situation is, construction industry has been facing serious shortage of skilled workforce. It is expected to triple in the next decade from the present 30 per cent, will negatively impact the overall productivity of the sector, warn industry experts.
  • 8. 8 1.1 Meaning of Human Resource Management:- A business unit needs employees to look after different activities. This is Called manpower or Human resource. Such human resource needs to be developed fully so that it will make positive Contribution for the progress and prosperity of a business unit. For this Systematic development and management of human resources is necessary. Human Resource Management (HRM) deals with. (a) Training (b) Self-development (c) Promotions (d) Performance appraisal of manpower recruited in an organization.
  • 9. 9 HRM is an organized learning experience aimed at matching the organizational need for career growth and development. It is a process involving series of learning activities designed to acquire desired level of competence among employees. HRM is a continuous process and it needs money. Such investment creates a team of efficient, skilled and trained manpower which brings success and stability to a business unit. HRM programmers offer long term benefits to an organization. Every organisations' desire is to have skilled and competent people to make their organisation more effective than their competitors. Humans are very important assets for the organisation rather than land and buildings, without employees (humans) no activity in the organisation can be done. Machines are meant to to produce more goods with good quality but they should get operated by the human only. Definitions: Many great scholars had defined human resource management in different ways and with different words, but the core meaning of the human resource management deals with how to manage people or employees in the organisation. Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.” The National Institute of Personal Management (NIPM) of India has defined human resources – personal management as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well – being of the individuals and of working groups, to enable them to make their best contribution to its success”.
  • 10. 10 According to Decenzo and Robbins, “HRM is concerned with the people dimension” in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organsational objectives. This is true, regardless of the type of organization – government, business, education, health or social action”.
  • 11. 11 1.2 Characteristics of Human Resource Management: i. Upgrading Manpower:- HRM is basically concerned with the upgrading of manpower working in an Organization. This leads to improvement in the individual performance of an employee and also corresponding Improvement in the organizational performance. ii. Stress on Training: HRM includes various schemes arranged for providing education, guidance, Training and Opportunities to learn and develop employees of all categories and working in different Departments. There is an integrated use of sub-systems (training, career developments, Organizational development) in the HRM programme. iii. Attention to learning and career development:- Learning, self-development, career developments are possible through HRM Programs. These are the core areas of HRM. Career development is possible through joining Training courses, Reading books and periodicals. Learning and career development raise the capacity of Employees to work at highest levels. They are given higher positions with monetary benefits. IV. Organizational Development:- HRM includes organizational development, which includes effective Communication within the Organization, coordination of different activities elimination of Conflicts of different types and Creation of orderly atmosphere in the whole organization.
  • 12. 12 V. Team Spirit:- HRM is basically for developing team spirit in the whole organization. For this, departments and levels of management are properly integrated. Team spirit facilitates Orderly growth of the Organization in the right direction. VI. Huge Money spending by Management:- All companies invest huge money on HRM activities but such expenditure is absolutely essential for survival in the present competitive business world. HRM programs Create matured, skilled and efficient manpower, which is a valuable asset of a business unit. VII. Termination of Employment:- Termination is an unpleasant part of any manager‘s job. Employees Occasionally must be terminated for breaking rules of failing to perform adequately. VIII. Continuous Activity:- HRM is rightly treated as a continuous activity due to new developments taking place regularly in the business world. For this, on the job and off the job training Programs are introduced from time- to-time. IX. Wide Scope:- The scope of HRM programs is very vast. It is multi-disciplinary in character. Training and guidance are given on different aspects of business management to enable managers to deal with complex managerial problems and challenges.
  • 13. 13 1.3 Need and Importance of Human Resource Management:- A good HR department is critical to an employee-oriented, productive workplace in which employees are energized and engaged. Here are the reasons why.  HR monitors the culture. Some organizations say that HR owns the culture, but as in all other employee relations matters, I recommend that the ownership is spread across all employees.  HR owns the overall talent management processes. In conjunction with other managers, HR leads the way in management development, performance management, succession planning, career paths, and other aspects of talent management. HR can't do it alone and relies heavily on managers and executive staff to help plan and execute the strategies. However, HR has to bring new ideas and effective practices into the organization.  HR is responsible for the overall recruiting of a superior workforce. Once again, HR cannot do it alone but must provide support to hiring managers who are also responsible for recruiting a superior workforce. HR must provide leadership, training, scheduling assistance, a systematic hiring process, recruitment planning processes, interview expertise, selection monitoring, and more.  HR recommends market-based salaries and develops an overall strategic compensation plan. HR provides guidance to managers as they determine the salary ranges within their organizations.  HR researches, recommends and implements employee benefits programs that attract and retain your best employees. HR is also responsible for controlling costs and considering various options before recommending adoption.  HR is responsible for recommending and instituting strategies for people and the organization that further the attainment of the organization's strategic goals. If your
  • 14. 14 organization is changing direction, developing new products, changing mission, vision, or goals, HR must lead the way with employee programs and processes.  HR makes sure that workplace activities, events, celebrations, ceremonies, field trips, and team building opportunities are occurring. Other employees plan and implement the activities with or without HR's help, but the HR leader is generally responsible for monitoring the budget and providing committee oversight.  HR advocates for employees who have issues or conflict with management and coaches managers and executives who seek a more effective approach to working with particular employees. Not everyone loves each other but they need to develop effective working relationships for contributions and productivity. HR can help by knowing the players and taking on the necessary role of advocate, coach and/or mediator. The importance of HR is easily overlooked in the busy day-to-day in the workplace, but without contributions in each of these areas, the organization would be less successful.
  • 15. 15 i. To create stable labor force:- HRM programmes are needed in order to create stable, efficient, skilled and matured manpower required by an enterprise for the present and future period. ii. To update the quality of manpower:- HRM activities are needed for updating the quality of manpower as per the growing and changing needs of an enterprise. This avoids managerial obsolescence. Even the Vacancies at higher levels can be filled in internally due to HRM programmes as they provide training and opportunities of self-development to employees working at lower levels. iii. To develop strength for survival:- HRM programmes are necessary for survival in the present competitive Marketing environment. An enterprise can face market competition only by improving quality, reducing costs and avoiding wastages. All this is possible through HRM. iv. To face challenges of technological changes:- Technological changes are taking place rapidly in every area of business. HRM programmes are needed in order to absorb technological changes taking place with Speed. In fact, introduction of new technology, computers, automation, etc. will not be possible unless training is provided to the manpower. v. To satisfy the demand of self-development of employees:- HRM is needed to meet the needs of employees in regard to self-development and career development aspirations. Employees demand, training facilities, refresher courses, Promotions and
  • 16. 16 transfers, career guidance, etc. for their self-development. HRM programmes are needed to fulfill self-development and career development of employees. vi. To meet future manpower needs:- HRM is needed to meet the future manpower needs of the organization. Executives, managers, supervisors leave the job or retire due to age factor. Competent juniors must take their positions. HRM is needed in order to keep ready a team of competent managers as a second line of defence. vii. To facilitate expansion and diversification:- HRM activities are needed to meet the manpower requirements resulting from expansion and diversification programmes undertaken at the enterprise level. Attention should be given to HRM much before the introduction of expansion programme. viii. To utilize production capacity fully: - HRM is needed in order to use the available production capacity to the optimum level. It provides skilled manpower for this purpose.
  • 17. 17 CHAPTER-2 2.0 HUMAN RESOURCE MANAGEMENT IN TATA STEEL LTD. OVERVIEW OF TATA STEEL LTD. Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is an Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group. It is one of the top steel producing companies globally with annual crude Steel deliveries of 23.88 million tons (in FY17), and the second largest steel company in India (Measured by domestic production) with an annual capacity of 13 million tons after SAIL. Tata Steel has been ranked 2nd in 2017 Responsible Business Rankings developed by IIM Udaipur. Tata Steel has manufacturing operations in 26 countries, including Australia, China, India, the Netherlands, Singapore, Thailand and the United Kingdom, and employs around 80,500 people. Its largest plant located in Jamshedpur, Jharkhand. In 2007 Tata Steel acquired the UK- based steel maker Company Corus. Tata Steel was ranked 486th in the 2014 Fortune Global 500 ranking of the World’s biggest corporations. It was the seventh most valuable Indian brand of 2013 as per Brand Finance.
  • 18. 18 2.1 HISTORY,VISION and MISSION OF TATA STEEL LTD. Established in 1907, Tata Steel, the flagship company of the Tata group is the first integrated steel plant in Asia and is now the world`s second most geographically diversified Steel producer and a Fortune 500 Company. Backed by 100 glorious years of experience in Steel making, Tata Steel is the world’s 6th largest steel company with an existing annual crude Steel production capacity of 30 Million Tons Per Annum (MTPA). Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries. It was the vision of the founder; Jamsetji Nusserwanji Tata, that on February 27, 1908, the first stake was driven into the soil of Sakchi. His vision helped Tata Steel Overcome several periods of adversity and strive to improve against all odds. VISION OF TATA STEEL LTD We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship. MISSION OF TATA STEEL LTD Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to strengthen India’s industrial base through effective utilization of staff and materials. The means envisaged to achieve this are best technology and high productivity, consistent with modern management practices. Tata Steel recognizes that while honesty and integrity are essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity. Overall, the Company seeks to scale the heights of excellence in all it does in an atmosphere free from fear, and thereby reaffirms its faith in democratic values.
  • 19. 19 2.2 Business divisions of the company:- (a) Bearings Division Ever since the start of operations at the Kharagpur Facility, Tata Bearings has been constantly implementing new technology, and improving systems and processes through innovations in the field to deliver greater value to customers. In the initial stages the technology was obtained from M/s Societe Nouvelle de Roulements (SNR) - France, through a technical collaboration but presently all developments are carried out in-house. The Division has state-of-the-art IT hardware with ASP as the ERP platform for an online information system. Manufactures ball bearings, double row self–aligning bearings, Magneto bearings, clutch release bearings and tapered roller bearings for two wheelers, fans, Water pumps, etc. The Bearings Division manufactures the following range of bearings under the brand name of Tata Bearings:  Ball Bearings  Taper Roller Bearings  Magneto Bearings  Double Row Angular Contact Bearings  Clutch Release Bearings  Double Row Self Aligning Ball Bearings  Hub Unit Bearings
  • 20. 20 (b) Ferro Alloys and Minerals Division The Ferro Alloys and Minerals Division, commonly known as FAMD, is the largest non-steel business unit of Tata Steel. With chrome and manganese ore reserves in the mineral rich state of Odisha, FAMD has set up an integrated value chain, commencing with mining, beneficiation, production and sales of Ferro alloys. It is also the leading manganese alloy producer in India and is a leading supplier of dolomite and pyroxenite Operates chrome mines and has units for Making Ferro chrome and Ferro manganese. It is one of the largest players in the global Ferro Chrome Market. (c) Agrico Division Tata Agrico, the oldest brand of Tata Steel, is a pioneer in superior quality agricultural implements. Since 1925, it has been the leading manufacturer of handheld implements like hoes, shovels, sickles, crowbars, pickaxes and hammers. These implements cater to the needs of agriculture, infrastructure as well as mining sectors. This traditional product range has now become even richer with the addition of garden tools like secateurs, cultivators, trowels, bill hooks, cane choppers, hedge shears and garden rake. All Tata Agrico implements are guaranteed against manufacturing defects and are distributed all over the country through a network of consignment agents and distributors. Tata Agrico is the first organized manufacturer in India of hand tools and implements for application in agriculture.
  • 21. 21 (d)Tata Growth Shop (TGS) Tata Steel Growth Shop (TGS) is a division of Tata Steel Ltd. TGS is one of the largest designer and manufacturer of Plants and Equipment’s in India. The ISO: 9001 and ISO: 14001 certified massive plant has general engineering, manufacturing, fabrication, machining, heat treatment and NDT facilities. TGS designs, manufactures and supplies high precision equipment for various industrial sectors. Has designed, developed, manufactured, erected and commissioned thousands of tonnes of equipment ranging from overhead cranes to high Precision components, including a rocket launch pad for the Indian Space and Research Organization. (e) Tubes Division Tata Pipes has played an important role in this transformation in India. Tata Tues is the first manufacturers of plumbing pipes in India leading to the modernization of the country. The increasing population, scarcity of land and resources and people moving from individual houses to multistory buildings has made Tata Pipes even more important in our lives as they are the true carriers of life. Tata Pipes for the conveyance applications are mainly used for carrying liquids and low pressure gases. The biggest steel tube manufacturer with the largest market share in India, it aspires to strengthen its market presence by expanding and modernizing its Commercial and precision tube manufacturing capacity.
  • 22. 22 (f) Wire Division: Producer of Prestressed Concrete strands used in construction of bridges, high-rise buildings, LNG tanks, nuclear reactors, metro rail projects etc.We have had the opportunity to supply wires for many iconic structures across the world, including Bandra Worli Sea Link (India), Suvarnabhumi Airport (Thailand), Changi Airport Terminal 3 (Singapore), Delhi Metro Rail (India), Dubai Ski Dome (UAE), Darwin LNG Tanks (Australia), Melbourne Cricket Ground (Australia), Cross Sea Bridge (Japan), Cross Ring Expressway (Macau) and Shenzheng Bay Great Bridge (China). Product Range Tata Steel Global Wires manufactures a wide range of wires catering to the needs of various industry segments such as automobile, infrastructure, power, and general engineering. Our products are well established across the markets of Europe, USA, Middle East Asia, Australasia, South Asia and Asia - Far East. In India, Tata Wiron has world-class manufacturing facilities at Tarapur (Mumbai, Maharashtra), Pithampur (Indore, Madhya Pradesh) and Jamshedpur. A pioneer in the manufacture of steel wires in India, it produces coated and uncoated wires, branded as Tata Wiron. The division also operates a wholly owned subsidiary in Sri Lanka.
  • 23. 23 Tata steel Subsidy Unit:- 1. Jamshedpur Utility & service company Limited (JUSCO)- Holding Type – Subsidiary Holding %- 100% Town Services Division of Tata Steel, JUSCO is a wholly-owned subsidiary of Tata Steel with expertise in integrated town management, power distribution, engineering procurement construction, real estate, and operations and maintenance. JUSCO focuses on enhancing the quality of life of the residents of Jamshedpur through sustained capital investment and public- private partnership for infrastructure development. Jamshedpur today has among the highest per capita incomes in the country and is rated among the best cities to live in by its residents. 2. Tata Pigments Ltd Holding Type – Subsidiary Holding %- 100% Tata Pigments Ltd is one of the largest producers of synthetic iron oxide pigments in India and the only Indian manufacturer of this product with BIS certification. TPL is the preferred supplier of pigments to leading companies in industries such as paints, building materials, plastics, rubber goods, paper and ink. It is also the leading brand in India for flooring colours. 3. Tata Steel alloys Ltd Holding Type – Subsidiary Holding %- 100% TS Alloys has set up a ferro alloys plant at Anantapur, Odisha, with a capacity of 59,400 MT per annum. Presently, the plant has two 16.5 submerged electric arc furnaces that commenced commercial production in 2007. The plant is located on 143.5 acres of land.
  • 24. 24 4. Tata Steel Processing & Distribution Ltd (TSPDL) Holding Type – Subsidiary Holding %- 100% Recognizing the tremendous business potential offered by the vast gap between steel producers’ offerings and the actual requirements of steel users, Tata Steel formed a 50:50 joint venture in 1997 with Ryerson Inc., USA, (North America’s largest metal processor and distributor), to promote a steel service company, named Tata Ryerson Limited. The Company firmly established itself as the dominant steel service company in India. It became a wholly-owned subsidiary of Tata Steel in 2009 and acquired a new name, Tata Steel Processing & Distribution Ltd from January 2010. 5 Adityapur Toll Bridge Co Ltd (ATBCL) Holding Type – Subsidiary Holding %- 88.50% Adityapur Toll Bridge Co Ltd (ATBCL) is a Special Purpose Company promoted under PPP model by Government of Jharkhand and Tata Steel Ltd. It is a public company incorporated on March 19, 1996. It is classified as Indian Non-government Company and is registered at Registrar of Companies, Jharkhand. Its authorised share capital is (Rupee sign) 21.00 crores and its paid up capital is (Rupee sign) 20.38 crores, Tata Steel being the major shareholder with 75% shares. 6. The Tinplate Company of India Limited (TCIL) Holding Type – Subsidiary Holding %- 74.96 % The Tinplate Company of India Limited (TCIL), a subsidiary of Tata Steel Limited (TSL), was incorporated in 1920 and started its commercial production in 1922. These are among the most versatile packaging substrates used for packaging edible and non-edible products, and are used
  • 25. 25 for its eco-friendly and superior properties vis-à-vis other packaging substrates such as glass, paper, plastics, aluminum, etc. 7. Tayo Rolls Limited Holding Type – Subsidiary Holding %- 54.91 % Tayo Rolls Limited, a Tata Enterprise and a subsidiary of Tata Steel since 2008, was promoted in 1968 by Tata Steel Limited and Yodogawa Steel Works Limited, Japan and Nissho Iwai Corporation (now Sojitz Corporation), Japan. Tayo Rolls Limited is a leading Roll manufacturer, headquartered in Jamshedpur, India. 8. Tata Sponge Iron Limited (TSIL) Holding Type – Subsidiary Holding %- 54.50 % Tata Sponge Iron Limited (TSIL) was conceptualised to put India’s first indigenous technology for sponge iron manufacture on a commercial platform. TSIL is considered a benchmark among the coal-based sponge iron plants. It is arguably the only debt-free, dividend-paying sponge iron company in India for the last 23 years. It is also known for its exemplary environmental standards in an industry otherwise infamous for pollution. It was the first company to receive the integrated certification of ISO-9001, ISO 14001 & OHSAS 18001. It is also the first DRI plant in the world to achieve TPM certification in 2012. It has received a number of state and national awards from the government and industrial confederations and institutions in the fields of environment, productivity, safety, quality, HR, corporate governance, etc.
  • 26. 26 9. Jamshedpur Continues Annealing And Processing Company PVT Ltd (CAPCPL) Holding Type – Subsidiary Holding %- 51.00 % CAPCPL is a joint venture between Tata Steel Limited (51%) and Nippon Steel & Sumitomo Metal Corporation (NSSMC, 49%). Its state-of-the-art technology caters exclusively to India’s growing demand for cold rolled steels in the automotive segment. It thus enables automotive OEMs to address their strategic objective of increased localisation. Located within Tata Steel’s Jamshedpur Works, the company has an installed capacity of 600,000 TPA. 10. TM International Logistics Limited Holding Type – Subsidiary Holding %- 51.00 % TM International Logistics Limited was incorporated as a joint venture company between Tata Steel and IQ Mar trade of Germany to provide cost-efficient port-related services. With the vision of being a reliable logistics service provider characterized by operational excellence, TMILL’s wide range of logistics services comprises port operations, shipping, freight forwarding, customs house agency, inland logistics, warehousing, ship agency services and marine services. 11. Tata Metaliks Ltd (TML) Holding Type – Subsidiary Holding %- 50.09 % Tata Metaliks Ltd (TML) is a listed company and subsidiary of Tata Steel (holding 50.09%). Seventy percent of its production is converted into foundry-grade pig iron while the remainder is transformed into molten metal for value addition and converting into ductile iron pipes by its 100% subsidiary, TMDIPL. Both plants are located at Kharagpur, West Bengal. TML holds a leadership position in the foundry grade pig iron market.
  • 27. 27 12. Mjunction Services Limited Holding Type – joint venture Holding %- 50.00 % Kolkata-based m-junction Services Limited was incorporated in 2001 as a 50:50 joint venture between Tata Steel and SAIL. Today, m-junction is not only the world’s largest e-marketplace for steel, it also exists on a wide spectrum of B2B e-commerce services comprising e-selling, e- procurement, e-finance, e-retail, loyalty solutions and knowledge services across diverse industry verticals. 13. S&T Mining Company Private Limited Holding Type – Joint venture Holding %- 50.00 % A 50:50 joint venture of SAIL and Tata Steel, S&T Mining's main objective is to work in the coking coal and mineral space domestically and internationally. The other objectives of the Company include beneficiation of coal and minerals, acquisition of international mining assets, mining of other minerals related to raw materials of steel and building on a competency, to provide consultancy services. 14. Tata BlueScope Steel Ltd Holding Type – Joint venture Holding %- 50.00 % Tata BlueScope Steel Ltd is an equal joint venture between Tata Steel and BlueScope Steel. The joint venture was established in November 2005 to operate in the SAARC region (South Asian Association for Regional Cooperation). The company has facilities in Chennai, Jamshedpur, Pune and Bhiwadi. Its Coated Steel Business Division and Building Products Division have developed multiple brands that are leaders in their segments.
  • 28. 28 15. Tata NYK Shipping Pvt. Ltd Holding Type – Joint venture Holding %- 50.00 % Tata NYK Shipping Pvt. Ltd is a 50:50 joint venture of Tata Steel and NYK Line – one of the largest shipping companies in the world. Tata NYK offers solutions that help its customers manage their supply chain effectively. Tata NYK has several diversified, high-performance, environment-friendly Japanese-built vessels. Its ability to trade worldwide in a multitude of trade routes, carrying a wide range of cargoes for a varied set of customers, gives it a competitive edge. Tata NYK has attained ISO 9001:2008 and ISO 14001:2004 certifications. 16. JAMIPOL Ltd Holding Type – Associate company Holding %- 39.78 % JAMIPOL Ltd. is a joint venture between Tata Steel (42%), SKW Stahl-Metallurgy, Germany (30%) and TAI Industries and associates (27%). With a key purpose of improving the quality of life through leadership in sectors of national economic significance, JAMIPOL’s products are certified to Integrated Management System (IMS) for three major international standards – ISO 9001:2008, ISO 14001: 2004 and OHSAS 18001: 2007. The company has facilities in Kalinganagar and Jamshedpur.
  • 29. 29 2.3 HRM Background and Practices: The Steel industries has become a complex activity within the Steel market Linked directly and indirectly with an over-all national growth and its impact as an integral part of regional segment of a global environment. Almost every Steel industries are involved various Functions in a day's job and as bell as long term strategically planning. Thus requires a highly Effective team and appropriate Manpower to run the organization. Corporate goals are translated into viable realities and profits only with human element that plays their due role in achieving the desired results. Thus even the high automation would require proper man behind the machine to make things happen. This idea has been realized by top management in progressive corporate industries. Many other organized sectors Like, banking, chemical, oil and gas requires multi-layer manpower for its various requirements of professionals and support staff. The range may require reasonably educated security guards on the one end and a highly educated and trained professional as head of corporate finance , production process, marketing, sales quality and the other related work. With liberalization of activities within the steel sector, for example, produce the new product in market for modern township project product for defense, product with global environmental condition and so many consumable projects. Steel industries has turned itself into a more market- based business where industries have expanded their reach more to customers' door steps in a big way making business more practical. This has further highlighted the need for proper deployment of man-power to run industries more efficiently. For many years, HRM Tata steel like other institutions has been handling this sensitive activity through respective personnel departments. Personnel departments were primarily engaged in approval of leaves, handling of staff loans, issuance of show cause, conducting disciplinary enquiries and termination from service.
  • 30. 30 Recruitment was a routine function and was done in a mechanical way to hire people with specific educational background irrespective of their real value to the institution. Success stories of Tata steel have been evident of the fact that HRM is quite different from management of physical assets. Human brain has its own peculiar chemistry. Its strong sensory and decision-making capacity has to be greatly emphasized by the employers. The work force constituting all levels of employees is constantly thinking in many dimensions. On the one hand it is the assigned duty and task they are to perform and for which they are paid by their employer, on the other they think of their long run goals and objectives. By no means, their brains can be controlled to think beyond the current situation of employment. Managing this educated, skillful and trustworthy work force is not an easy job. A few of the current challenges faced by the steel industry in terms of human resource management may be the following:  To make the entire System stronger, efficient and low-cost, the creation of Fundamentals must include in the steel operations, strategies and processes: strengthening the Quality norms and market discipline; adoption of international benchmarks; management of Organizational change and consolidation within the financial system; upgrading the technological infrastructure of the production system; and human resource development as the catalyst of the Transformation.  The Human Resource field in the steel Industry is considered as one of the process of discovery and transformation. The field of Human Resource can be described as emergent and dynamic within the cultural business aspect in a steel Industry. The success of today‘s steel business will sparsely depends on the human resources of the organization, in which plays a crucial role in providing the services needed.  The evolution of steel production in India affected the human resource practices, recruitment and selection practices, and training system. It is very important that the details of human
  • 31. 31 resource are discussed along with the employees, to build their own career planning, perceptions and development.  The primary strength of the industry is the human resource that is why the efforts to develop the skills and management are the main subject placed before the human resource. A major challenge for many steel industries will be to develop the special competencies and skills for quality production, sells development, marketing and risk management. Putting the information technology is a key contributed in human resource development. Therefore, the HR model of the future will require professionals to be both driving and anticipating change, Understanding the complexities of the new business environment and forces to shaping it. 2.4 HR Practices and Methods A key focus of the human resource management is highlighted in the role of Staffing, performance management, training and development, and compensation that plays Indifferent types of business strategies. With the acquisition and preparation of human resources, including planning,recruitment, selection, and training can affect the whole organizational performance. The HR planning, the start of the strategy, illustrates the process of developing human resource plan. The strengths and weaknesses of staffing options such as outsourcing, use of contingent workers, and downsizing are involved in practices. The recruitment process is done strategically to determine the talented employee fit for the position. The selection process emphasizes the ways in minimizing errors in employee selection and placement to improve the company‘s competitive position. The selection method standards such as validity and reliability are utilized. An effective training systems of the manager‘s role in determining employees readiness for Training, creating a positive learning environment, and ensuring the training is used on the job.
  • 32. 32 Beyond the human resource strategies are the rewarding and compensating that can strengthen or weaken the employee effectiveness. In order to give recognition and increase motivational levels. Amongst the employees, Tata steel linked with the individual performance in an incentive scheme – or for some rewards that may come into any form like sabashi award, Suggestion management scheme, kaizen coupon, and other direct or indirect benefit .In Summary, all of the HRM strategies and function should be aligned to help the company meet Its objectives – as well as focusing on their customers. The best practice approach assert that certain HR practices are found to consistently lead to higher organizational performance, independent of an organization‘s stated Strategy. The high performance HR practices foster innovation through the development of Innovation values, Encouraging of information sharing, goal setting and appropriate training and development
  • 33. 33 CHAPTER-3 3.0 Job analysis, Job design and Job evaluation A job is defined as a collection of duties and responsibilities which are given together to an Individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job. It can be explained with the help of the following diagram. 3.1. Job analysis Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgments are made about data collected on a job. Job analysis contains a simple term called "analysis", which means detailed study or examination of something (job) in order to understand more about it (job). Therefore job analysis is to understand more about a specific job in order to optimize it. Job analysis is a systematic process of collecting complete information pertaining to a job. Job analysis is done by job analyst who is an officer have been trained for it. Job analysis is a procedure through which you determine the duties and responsibilities, nature of the jobs and finally to decide qualifications, skills and knowledge to be required for an employee to perform particular job. Job analysis helps to understand what tasks are important and how they are carried on. Job analysis forms basis for later HR activities such as developing effective training program, selection of employees, setting up of performance standards and assessment of employees ( performance appraisal)and employee remuneration system or compensation plan.
  • 34. 34 The intention behind job analysis is to answer questions such as:  What is the need of the job to exist?  What physical and mental activities does the worker undertake?  When is the job to be performed?  Where is the job to be performed?  How does the job performed by an employee?  What qualities and qualifications are required to perform the job?  Job description Job specification.  Job title/ name of the job Qualification.  Working hours Qualities.  Duties and responsibilities Experience.  Working conditions Family background.  Salary and incentives Training.  Machines to be handled on the job Interpersonal skills. As mentioned in the above table job analysis is divided into 2 parts a) Job Description Job Description is a broad and written statement of a specific job in the organisation, based on the findings of a job analysis. Job Description generally includes duties, purpose, responsibilities, scope, and working conditions of a job along with the title of the job, and the name or designation of the person to whom the employee will report. Job description usually forms the basis of job specification.
  • 35. 35 (b) Job specification Job specification is a statement in which we explain the qualities required by people applying for the job.  Job specification as a statement of minimum qualification that person must possess to perform a given job successfully --- Stephen. P. Robbins & Marry Coutler.  Job specification is a statement of employee characteristics and qualifications required for satisfactory performance of defined duties and tasks comprising a specific job or function. Job specification is derived from job analysis. While the job description describes activities to be done, it is job specifications that list the knowledge, skills, and abilities an individual needs to perform a job satisfactorily. Knowledge, skills, and abilities (KSAs) include education, experience, work skill requirements, personal abilities, and mental and physical requirements. Job specifications for a data entry operator might include a required educational level, a certain number of months of experience, a typing ability of 60 words per minute, a high degree of visual concentration, and ability to work under time pressure. It is important to note that accurate job specifications identify what KSAs a person needs to do the job, not necessarily what qualifications the current employee possesses. The following are the benefits of job analysis. 1. Organizational structure and design:- Job analysis helps the organization to make suitable changes in the organizational structure, so that it matches the needs and requirements of the organization. Duties are either added or deleted from the job.
  • 36. 36 2. Recruitment and selection:- Job analysis helps to plan for the future human resource. It helps to recruit and select the right kind of people. It provides information necessary to select the right person. The recruitment and selection process is important for new and established businesses alike. human resources department has the support and expertise of employment specialists who assist hiring managers with the procedures to ensure the company's leaders are making wise hiring decisions. There are several pieces to the recruitment and selection process: sourcing candidates, reviewing and tracking applicants, conducting interviews and selection for employment. 3. Performance appraisal and training/development:- Based on the job requirements identified in the job analysis, the company /individual department decides a training program. Training is given in those areas which will help to improve the performance on the job. Similarly when appraisal is conducted we check whether the employee is able to work in a manner in which we require him to do the job. 4. Job evaluation:- Job evaluation refers to studying in detail the job performance by all individual. The difficulty levels, skills required and on that basis the salary is fixed. Information regarding qualities required, skilled levels, difficulty levels is obtained from job analysis. 5. Promotions and transfer:- When Tata steel give a promotion to an employee company need to promote him on the basis of the skill and talent required for the future job. Similarly when company transfers an employee to another department or unit the job must be very similar to what he has done before. To take these decisions company collect Information from job analysis.
  • 37. 37 6. Career path planning:- Many companies have not taken up career planning for their employees. This is done to prevent the employee from leaving the company. When company plans the future career of the employee, information will be collected from job analysis. Hence job analysis becomes important or advantageous for company as bell as employee. 7. Labour relations:- When companies plan to add extra duties or delete certain duties from a job, they require the help of job analysis, when this activity is systematically done using job analysis the number of problems comes on the account of management, discuss with Tata worker union members to reduce the labour problem and improve the labour relations. 8. Health and safety:- Tata steel prepares their own health and safety, plans and programs based on job analysis and under guidance of factory act 1948 with Bihar factory rule. From the job Analysis Tata steel identifies the risk factor on the job and based on the risk factor. Company provide the safety equipment’s, safety appliances and safety training to improve the safety condition and safe work place for employee as bell as visitor or contractor labor. Tata steel is one of the steel companies who follow DuPont safety stander in its work place for its aim to zero accident policy. 9. Acceptance of job offer:- When a person is given an offer/appointment letter the duties to be performed by him are clearly mentioned in it, this information is collected from job analysis, which is why job analysis becomes important.
  • 38. 38 Methods of job analysis Def: - A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job. There are different methods used by Tata steel to collect information and conduct the job analysis. These methods are 1.Personal observation:- In this method the observer actually observes the concerned worker. He makes a list of all the duties performed by the worker and the qualities required to perform those duties based on the information collected, job analysis is prepare. 2. Actual performance of the job:- In this method the observer who is in charge of preparing the job analysis actually does the work himself. This gives him an idea of the skill required, the difficulty level of the job, the efforts required etc. 3. Interview method:- In this method an interview of the employee is conducted. A group of experts conduct the interview. They ask questions about the job, skilled levels, and difficulty levels. They question and cross question and collect information and based on this information job analysis is prepared.
  • 39. 39 4. Critical incident method:- In this method the employee is asked to write one or more critical incident that has taken place on the job. The incident will give an idea about the problem, how it was handled, qualities required and difficulty levels etc. critical incident method gives an idea about the job and its importance. (A critical means important and incident means anything which takes place in the job) 5. Questioner method: - In this method a questioner is provided to the employee and they are asked to answer the Questions in it. The questions may be multiple choice questions or open ended questions. The Questions decide how exactly the job analysis will be done. The method is effective because People would think twice before putting anything in writing. 6. Log records:- Companies can ask employees to maintain log records and job analysis can be done on the basis of information collected from the log record. A log record is a book in which employee‘s record / writes all the activities performed by them on the job. The records are extensive as well as exhausted in nature and provide a fair idea about the duties and responsibilities in any job. 7. HRD records: - Records of every employee are maintained by HR department. The record contain details about Educational qualification, name of the job, number of years of experience, duties handled, any Mistakes committed in the past and actions taken, number of promotions received, area of work, core competency area, etc. based on these records job analysis can be done.
  • 40. 40 3.2 .Job design Definitions: - Job design is the process of formation of structure to work activities. This is a systematic process of organizing specific job. It is thus, the logical sequence of job analysis which provides the job related data and skill requirement of the incumbent. It is the management function of organizing tasks, duties and responsibilities into a unit of work. It helps to set the purpose, fix and task characteristics and duties. Job design is another words, can be defined as the integration of job content and the method of doing the job. This combines the qualification, skills and experience required for the job intrinsic and extrinsic rewards associated with job, and the basic relationship between organizational needs and employee needs. Job design is the process of a) Deciding the contents of the job. b) Deciding methods to carry out the job. c) Deciding the relationship which exists in the organization. Job analysis helps to develop job design and job design matches the requirements of the job with the human qualities required to do the job. Factors affecting job design: - There are various factors which affect job design in the company. Factors affecting job design 1. Organizational factors 2. Environmental factors 3. Behavioral factors
  • 41. 41 1. Organizational factors:- Organizational factors to refer to factors inside the organization which affect job design they are a) Task characteristics:- Task characteristics refer to features of the job that is depending on the type of job and the duties involved in it the organization will decide, how the job design must be done. In case the company is not in a position to appoint many people; a single job may have many duties and vice versa. b) The process or flow of work in the organization:- There is a certain order in which jobs are performed in the company. In case the company wishes it could combine similar job and give it to one person this can be done if all the jobs come one after the other in a sequence. c) Ergonomics:- Ergonomics refers to matching the job with physical ability and characteristics of the individual band in providing an office environment which will help the person to complete the jobs faster and in a comfortable manner. d) Work practices:- Every organization has different work practices. Although the job may be the same the method of doing the job differs from company to company. This is called work practice and it affects job design.
  • 42. 42 2. Environmental factors:- Environmental factors which affect job design are as follows a) Employee availability and ability:- Certain countries face the problem of lack of skilled labour. They are not able to get employees with specific education levels for jobs and have to depend on other countries due to this job design gets affected. b) Social and cultural expectations:- The social and cultural conditions of every country is different so when an MNC appoints an Indian it has to take into account like festivals, auspicious time, inauspicious time, etc. to suit the Indian conditions. This applies to every country and therefore job design will change accordingly. 3. Behavioral factors:- Job design is affected by behavioral factors also. These factors are a) Feedback: - Job design is normally prepared on the basis of job analysis and job analysis requires employee feedback based on this employee feedback all other activities take place. Many employees are however not interested in providing a true feedback because of fear and Insecurity. This in turn affects job deign. c) Autonomy :- Every worker desires a certain level of freedom to his job effectively. This is called autonomy. Thus when we prepare a job design we must see to it that certain amount of autonomy is provided to the worker so that he carries his job effectively.
  • 43. 43 c) Variety:- When the same job is repeated again and again it leads to burden and monotony. This leads to lack of interest and carelessness on the job. Therefore, while preparing job design certain amount of variety must be provided to keep the person interested in the job. Methods of job design There are various methods in which job design can be carried out. These methods help to analysis the job, to design the contents of the and to decide how the job must be carried out. These methods are as follows: - I. Job rotation II. Job enlargement III. Job enrichment 1. Job Rotation: - Job rotation involves shifting a person from one job to another, so that he is able to understand and learn what each job involves. The company tracks his performance on every job and decides whether he can perform the job in an ideal manner. Based on this he is finally given a particular posting. Job rotation is done to decide the final posting for the employee e.g. Mr. A is assigned to the marketing department whole he learns all the jobs to be performed for marketing at his level in the organization .after this he is shifted to the sales department and to the finance department and so on. He is finally placed in the department in which he shows the best performance Job rotation gives an idea about the jobs to be performed at every level. Once a person is able to understand this he is in a better understanding of the working of organization
  • 44. 44 Advantages of job rotation i. Avoids monopoly:-Job rotation helps to avoid monopoly of job and enable the employee to learn new things and therefore enjoy his job ii. Provides an opportunity to broaden one’s knowledge:-Due to job rotation the person is able to learn different job in the organization this broadens his knowledge iii. Avoiding fraudulent practice:-In an organization like bank jobs rotation is undertaken to prevent employees from doing any kind of fraud i.e. if a person is handling a particular job for a very long time he will be able to find loopholes in the system and use them for his benefit and indulge (participate) in fraudulent practices job rotation avoids this. Disadvantages of Job Rotation i. Frequent interruption:- Job rotation result in frequent interruption of work .A person who is doing a particular job and gets it comfortable suddenly finds himself shifted to another job or department .this interrupts the work in both the departments ii. Reduces uniformityin quality :- Quality of work done by a trained worker is different from that of a new worker .when a new worker I shifted or rotated in the department, he takes time to learn the new job, makes mistakes in the process and affects the quality of the job. Misunderstanding with the union member: - Sometimes job rotation may lead to misunderstanding with members of the union. The union might think that employees are being harassed and more work is being taken from them. In reality this is not the case.
  • 45. 45 2. Job enlargement: - Job enlargement is another method of job design when any organization wishes to adopt proper job design it can opt for job enlargement. Job enlargement involves combining various activities at the same level in the organization and adding them to the existing job. It increases the scope of the job. It is also called the horizontal expansion of job activities. Jon enlargement can be explained with the help of the following example - If Mr. A is working as an executive with a company and is currently performing 3 activities on his job after job enlargement or through job enlargement we add 4 more activities to the existing job so now Mr. A performs 7 activities on the job. It must be noted that the new activities which have been added should belong to the same Hierarchy level in the organization. By job enlargement we provide a greater variety of activities to the individual so that we are in a position to increase the interest of the job and make maximum use of employee‘s skill. Job enlargement is also essential when policies like VRS are implemented in the company. Advantages of job enlargement i. Variety of skills: - Job enlargement helps the organization to improve and increase the skills of the employee due to organization as well as the individual benefit. ii. Improves earning capacity:- Due to job enlargement the person learns many new activities. When such people apply for jobs to other companies they can bargain for more salary. iii. Wide range of activities:-Job enlargement provides wide range of activities for employees. Since a single employee handles multiple activities the company can try and reduce the number of employee‘s. This reduces the salary bill for the company.
  • 46. 46 Disadvantages of job enlargement i. Increases work burden:- Job enlargement increases the work of the employee and not every company provides incentives and extra salary for extra work. Therefore the efforts of the individual may remain unrecognized. ii. Increasing frustration of the employee: - In many cases employees end up being frustrated because increased activities do not result in increased salaries. iii. Problem with union members:- Many union members may misunderstand job enlargement as exploitation of worker and may take objection to it. 3. Job enrichment: - Job enrichment is a term given by Fredric Herzberg. According to him a few motivators are added to a job to make it more rewarding, challenging and interesting. According to Hertzberg the motivating factors enrich the job and improve performance. In other words we can say that job enrichment is a method of adding some motivating factors to an existing job to make it more interesting. The motivating factors can be a. Giving more freedom. b. Encouraging participation. c. Giving employees the freedom to select the method of working. d. Allowing employees to select the place at which they would like to work. e. Allowing workers to select the tools that they require on the job.
  • 47. 47 f. Allowing workers to decide the layout of plant or office. Job enrichment gives lot of freedom to the employee but at the same time increases the responsibility. Some workers are power and responsibility hungry. Job enrichment satisfies the needs of the employees. Advantages of job enrichment i. Interesting and challenging job: - When a certain amount of power is given to employees it makes the job more challenging for them, we can say that job enrichment is a method of employee empowerment. ii. Improves decision making: - Through job enrichment we can improve the decision making ability of the employee by asking him to decide on factory layout, method and style of working. iii. Identifies future managerial caliber: -When we provide decision making opportunities to employees, we can identify which Employee is better that other in decision making and mark employees for future promotion. iv. Identifies higher order needs of employees:- This method identifies higher order needs of the employee. Abraham Maslow‘s theory of motivation speaks of these higher order needs e.g. ego and esteemed needs, self-actualization etc. These needs can be achieved through job enrichment. v. Reduces work load of superiors:- Job enrichment reduces the work load of senior staff. When decisions are taken by juniors the seniors work load is reduced.
  • 48. 48 Disadvantages of job enrichment i. Job enrichment is based on the assumptions that workers have complete knowledge to take Decisions and they have the right attitude. In reality this might not be the case due to which there can be problems in working. ii. Job enrichment has negative implications i.e. Along with usual work decision making work is also given to the employees and not many may be comfortable with this. iii. Superiors may feel that power is being taken away from them and given to the junior‘s. This Might lead to ego problems. iv. This method will only work in certain situations. Some Responsibility; this method will not work for such jobs.jobs already give a lot of freedom and v. Some people are internally dissatisfied with the organization. For such people no amount of job enrichment can solve the problem.
  • 49. 49 3.3 Job Evaluation Job evaluation is a process of determining the relative worth of a job. It is a process which is helpful even for framing compensation plans by the personnel manager. Job evaluation as a process is advantageous to a company in many ways: I. Reduction in inequalities in salary structure – It is found that people and their motivation is dependent upon how well they are being paid. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. ii.Specialization – Because of division of labour and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. Therefore, an attempt should be made to define a job and thereby fix salaries for it. This is possible only through job evaluation. Iii. Helps in selection of employees – The job evaluation information can be helpful at the time of selection of candidates. The factors that are determined for job evaluation can be taken into account while selecting the employees. iV. Harmonious relationship between employees and manager - Through job evaluation, harmonious and congenial relations can be maintained between employees and management, so that all kinds of salaries controversies can be minimized. V. Standardization - The process of determining the salary differentials for different jobs become standardized through job evaluation. This helps in bringing uniformity into salary structure.
  • 50. 50 Vi.Relevance of new jobs - Through job evaluation, one can understand the relative value of new jobs in a concern. According to Kimball and Kimball,“ Job evaluation represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be.” Thus, job evaluation is different from performance appraisal. In job evaluation, worth of a job is calculated while in performance appraisal, the worth of employee is rated.
  • 51. 51 CHAPTER-4 4.0 Human Resource Planning This is the process which assures the organization that it will have adequate number of qualified persons, at requisite times, performing in a way to satisfy the needs of the organization & also provide satisfaction to the individual employee, so employed. The process involves: a) Estimating the present & future requirements of human resources based on objectives & long range plans of the organization. b) Calculation of net human resource requirements based on the present availability of human resources. c) Taking suitable steps to identify, mould, change & develop the strength of existing employees so as to meet the future requirements. d) Preparation of action plans to acquire the balance human resources from outside the organization & to develop the existing employees.
  • 52. 52 4.1. Recruitment: It is the process of searching for future employees (requirement) & ensuring they apply for jobs in the organization. It involves: a) Identification of existing sources of candidates & developing them. b) Seeking out & identifying new sources of applicants. c) Motivating the right type of candidates to apply for jobs in the organization. d) Ensuring a healthy balance between internal & external sources. 4.2. Selection: It is the process of ascertaining the qualifications, experience, skill, Knowledge, etc. of an applicant to ascertain his/her suitability for the job applied.This includes: a) Developing application blanks. b) Creating & developing valid & reliable testing techniques. c) Formulating interviewing techniques. d) Checking of references. e) Setting up for medical examination policy & procedure. f) Line Managers to be involved in the decision making. g) Sending letters of appointment. h) Employing the selected candidates, when he reports for duty.
  • 53. 53 4.3. Placement: It is a process of allotting to the selected candidate the most suitable job, as per the job requirements & employee specifications. This function includes: a) Counseling the concerned managers regarding the placements. a) Overseeing the follow-up studies, employee performance appraisal to monitor employee adjustment to the job, in the coming days. b) Correcting wrong/misjudged placements, if any. 4.4. Induction & Orientation: These are procedures by which a new employee is rehabilitated in the new surroundings & introduced to the practices, procedures, policies, people, etc. of the organization. It includes: a) Familiarizing the employee with company philosophy, objectives, policies, career planning & development, company product, market share, history, culture, etc. b) Introduce new employee to the people—his colleagues, supervisors & subordinates. c) Mould the employees by orientation methods to the new working conditions
  • 54. 54 CHAPTER-5 5.0 Human Resource Development This process involves improving, molding, & developing the skills, knowledge, creativity, attitude, aptitude, values, commitment, etc. based on the present & future job & company Requirements. Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. HRD is one of the most significant opportunities that employees seek when they consider you as an employer. The ability, and encouragement, to continue to develop their skills help you to retain and motivate employees. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development. The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers. Organizations have many opportunities for human resources or employee development, both within and outside of the workplace. Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. These are the options that you have for developing your employees. Formal training can add value in your workplace.
  • 55. 55 Or, Human Resource Development can be informal as in employee coaching by a manager or internal training and development classes taught by internal staff or a consultant. Mentoring by more experienced employees is also recommended for employee development. It is especially useful as employees become more senior within organization. Traditionally, executive leaders and senior managers are resistant to training classes and conference educational sessions. Healthy organizations believe in Human Resource Development and cover all of these bases. One option that is recommended, in preference to many other ways in which organizations develop employees, is to provide internal training either with internal staff or a paid facilitator or consultant. 1. Performance Appraisal: It is the continuous & systematic evaluation of individual employees with respect to their performance & their potential for future development. It includes: a) Enunciating policies, procedures & techniques. b) Assisting functional managers. c) Reviewing & summarizing reports. d) Evaluating the effectiveness of various programmes.
  • 56. 56 2. Training: It is the process of transmitting the employees the technical & operating skills and knowledge. It includes a) Identification of training needs of the individuals & for the organization. b) Developing appropriate training programmers. c) Assisting & advising the management in the conduct of training programmes. d) Transmitting requisite job skills & job knowledge to the employees. e) Asses the effectiveness of the training programmes. 5.1 Management Development: It is the process of designing & conducting appropriate executive development programmes so as to develop the managerial & human relations skills of the employees. It includes: i. Identification of the areas in which management development is needed. Ii.conducting development programmers. Iii Motivating executives/managers. iv. Designing special development programmers/ assessment procedures for promotions. V Utilizing the services of specialists-both internal & external for development &/or Institutional (external) development programmes. vi Evaluating the effectiveness of executive development programmes.
  • 57. 57 5.2. Career Planning & Development: Effective HRM encompasses career planning, career development and succession planning. An organization without career planning and career development initiatives is likely to encounter the highest rate of attrition, causing much harm to their plans and programmes. Similarly without succession planning managing of vacancies, particularly at higher levels, become difficult. There are examples of many organizations that had to suffer for not being able to find a right successor for their key positions. With the increase scope for job mobility and corporate race for global headhunting of good performers, it is now a well-established fact that normal employment span for key performers remains awfully short. The term career planning and career developments are used interchangeably in most of the organizations. It is the planning of one‘s career & implementation of career plans by means of education, training, job search & acquiring of work experience. It includes: i. Internal and External mobility :- The lateral or vertical movement (promotion, transfer, demotion or separation) of an employee within an organization is called ´internal mobility. ‡Some employees leave the organization for reasons such as better prospects, retirement, termination, etc. such movements are known as external mobilityµ Vertical, horizontal transfers, promotions and demotion is the part of internal mobility.
  • 58. 58 NEED FOR INTERNAL MOBILITY - The internal mobility is needed for the following reasons -  Changes in technology, mechanisation etc. resulting in enhancement of job demands.  Expansion and diversification of production/operations.  Adding different lines of auxiliary and supportive activities in the organisation.  Taking up of geographical expansion and diversification.  Introduction of creative and innovative ideas in all the areas of management resulting in- increased job demands.  Changes in employee skill, knowledge, abilities aptitude, values etc  Changing demands of trade unions regarding protecting the interests of their members.  Changing government role in human resource management.  Economic and business trends and their impact on job design and demands. ii. Transfer:- Process of placing employees in the same level jobs where they can be utilized more effectively as per the needs of the organization. This also means developing transfer policies, offering assistance & guidance to employees under transfer orders & evaluating transfer policy periodically. iii. Promotion:- It deals with the upward assignment of employees to occupy higher positions (with better status & pay) in consonance with resources of employees & job requirement. The department must ensure that.  Equitable, fair & consistent promotions are formulated & administered.  Managers & employees are given assistance & guidance on the subject of promotion.  Executions of promotional policies are as per policies & procedures.
  • 59. 59 iv. Demotion: - it is the downward assignment of an employee in an organization. The department must ensure that:  Equitable, fair & consistent demotion policies are drawn up.  Assisting & advising employees regarding demotions.  Ensure fair implementation of demotion Policies & Procedures. 5.3. Organizational Development: The planned process drawn up to improve organizational effectiveness through changes in individual & group behavior, culture & systems of the organization—drawing models from applied behavioral science. Theory and practice of planned, systematic change in the attitudes, beliefs, and values of the employees through creation and reinforcement of long-term training programs. OD is action oriented. It starts with a careful organization-wide analysis of the current situation and of the future requirements, and employs techniques of behavioral sciences such as behavior modeling, sensitivity training, and transactional analysis. Its objective is to enable the organization in adopting-better to the fast-changing external environment of new markets, regulations, and technologies.
  • 60. 60 CHAPTER-6 6.0 Compensations Management The Definitionof Compensation Management: In simple terms, compensation is everything that a company offers its employees in return for their talent and time. When organized the right way, compensation can be strategically leveraged to reduce turnover, boost employee engagement and attract top talent. The purpose of compensation management is to make the most of company pay in rupees in a way that rewards employees for their work. Why is Compensation Management so important? Compensation management makes a company vigilant. It drives managers to be on the look out for star performers who must be given rewards for their efforts, which ultimately decreases the risk of losing a valuable employee. It is positive reinforcement. Yes, money doesn’t make the world go round and if line managers are not friendly, helpful and supportive retention is difficult. But cash prizes and consistent monetary perks in conjunction with a great work environment allow companies to grow by leaps and bounds through motivated, hardworking employees. Compensation management enhances the company’s reputation. When workers are satisfied with their monetary and intangible rewards, they attract better prospects for vacant positions, bringing new, fresh talent to the organization.
  • 61. 61 6.1. Compensation Compensation includes all the extrinsic rewards that an employee receives during and after the course of his sob. For his contributions to the organization. The principles of compensation payment are that it has to be adequate, equitable and fair to the employees. Compensation encompasses base salary, incentives, bonus and benefits and is based on job evaluation. Job evaluation- It is a systematic determination of the value of each job in relation to other jobs in the organization, in the industry and in the market. In other words, job evaluation involves classifying a job based on its importance and its contribution to the organization and its requirements. It involves  Identifying/designing suitable job evaluation techniques;  Evaluating various jobs;  Ascertaining the relative worth of jobs in various categories. Wage and salary administration – The process of formulating and operating a suitable wage and salary program is known as wage and salary administration. It includes:  Conducting wage and salary survey in the market and in the industry;  Determining wage and salary rates on the basis of various factors like law, equity, fairness and performance;  Implementing wage and salary administration programs;
  • 62. 62 i. Incentives- Incentives are the rewards an employee earns in addition to regular wages or salary based on the performance of the individual, the team or the organization. Ii Bonus Bonus is primarily a share in the surplus or bounty and is directly related to the organization‘s performance. In India, the payment of bonus is a very popular means of rewarding employees and is governed by The Payment of Bonus Act 1965. Fringe benefits — Fringe benefits are those monetary and non-monetary benefits given to employees during their employment, and sometimes, in the post-employment period also. These benefits are connected to employment with the organization and are not related to the employee‘s performance. These benefits provide a sense of security to the employee and keep them committed to the organization. Some of the marginal benefits include;  Disablement benefits  Housing facilities  Canteen facilities  Conveyance facilities  Educational facilities for employees and their children  Credit facilities  Recreational facilities  Medical and welfare facilities  Post-retirement benefits  Company stores  Legal aid
  • 63. 63 6.2. Compensations and Benefits: Compensation and benefits is a sub-discipline of human resources, focused on employee compensation and benefits policy-making. While compensation and benefits are tangible, there are intangible rewards such as recognition, work-life and development. Combined, these are referred to as total rewards. The term "compensation and benefits" refers to the discipline as well as the rewards themselves. Employee compensation and benefits are divided into four basic categories: 1. Guaranteed pay – a fixed monetary (cash) reward paid by an employer to an employee. The most common form of guaranteed pay is base salary. Guaranteed pay also includes cash allowances (housing allowance, transport allowance, etc.), differentials (shift differentials, holiday differentials) and premiums (overtime, night shift, etc.) 2. Variable pay – a non-fixed monetary (cash) reward paid by an employer to an employee that is contingent on discretion, performance, or results achieved. The most common forms of variable pay are bonuses and incentives. 3. Benefits – programs an employer uses to supplement employees’ compensation, such as paid time off, medical insurance, company car, and more. 4. Equity-based compensation – stock or pseudo stock programs an employer uses to provide actual or perceived ownership in the company which ties an employee's compensation to the long- term success of the company. The most common examples are stock options. Tata steel provide compensations to its employees in shape of Cost of any medical Treatment in Tata main hospital (TMH) Jamshedpur and tie up with India most trusted hospital like CMC Vellore , Medanta Gurugram etc.
  • 64. 64 Cancelled Holidays fees, Repair of vehicle, any injury while doing job tasks and some other. Employees can claim their compensation if any above case occurs. Benefits which are provided By Tata steel are Paid time off, Retirement, Disability Insurance, Education and training programs. In Paid time off benefits the employee is paid for the time he don‘t worked duo to vacation, holiday pay and sick pay. Retirement benefits are in shape of pension, gratuity, provident fund and superannuation fund. In disability Tata steel provide financial support when an employee becomes injured or ill and is unable to do his/her job and in education & training programs Tata steel provide different education & training to their employees to furbish their skill. Tata Steel benefits and perks, including insurance benefits, retirement benefits, and vacation policy. Compensation managers are responsible for researching, establishing, and maintaining a company's pay system. In performing this important function, the compensation manager has to research and understand the current and upcoming competitive markets for employee pay and benefits. They must find ways to ensure that pay rates are fair and equitable to retain and recruit employees. The compensation manager may specialize, in larger organizations, in specific areas such as job classification or market pay studies. Compensation managers meet with line managers to help develop promotion and retention strategies for existing employees. They may be responsible for annual increase programs since companies often tie annual salary increases to performance. Thus, a compensation manager can find herself working closely with individual managers as well as HR business partners, HRIS experts and the payroll department to ensure that raises are done correctly and fairly.
  • 65. 65 CHAPTER-7 7.0 Human Relations Human relations in the workplace are a major part of what makes a business work. Employees must frequently work together on projects, communicate ideas and provide motivation to get things done. Without a stable and inviting workplace culture, difficult challenges can arise both in the logistics of managing employees and in the bottom line. Businesses with engaging workplaces and a well-trained workforce are more likely to retain and attract qualified employees, foster loyalty with customers and more quickly adapt to meet the needs of a changing marketplace. Administering various human resources policies like employment development &compensation & interactions among the employees on one hand & employees & the management on the other, create a sense of working relationships between workers & management & trade unions. Basically they are all interactions between human beings. Human relations, is therefore, is an important area in management which integrates people into work situations in a way that motivates people to work together with economic, psychological & social satisfaction thereby increasing their productivity. Hence Human Resources Management functions will center on. 1. Understanding perception, personality, learning, intra & inter personal relations, inter & intra group relations. 2. Motivating all employees. 3. Promoting employee morale. 4. Developing communication skills. 5. Developing leadership skills.
  • 66. 66 6. Redressing satisfactorily through a well-defined grievance procedure. 7. Handling disciplinary cases by established disciplinary procedures & in all fairness. 8. Providing adequate counseling to solve employees ‘personal, work & family problems, thereby releasing their stress & strain. The main aim of Human relations in the workplace is. Improving Retention The quality of workplace relations is critical to employee retention. Employee retention may seem trivial, especially in a workplace that is used to a high turnover, but managers must remember that turnover is financially very costly. Every new employee requires a substantial investment of time and energy in their recruitment and training. In addition, severing ties with old employees can sometimes be challenging, especially if the circumstances are not particularly amicable. Making sure quality employees remain interested and engaged in the business requires patience, compassion and flexibility, but can actually make the business more financially sound. Motivation and Productivity Workplace relationships provide a source of employee motivation, which is important to maintaining productivity. Employees who are interested in their work and in the well-being of other employees tend to be more productive than those who are not. This productivity pays obvious financial dividends to the company, as it can get more done in less time with fewer costs. Fostering Creativity The modern business environment often rewards businesses that are able to quickly develop products that meet changing consumer needs.
  • 67. 67 CHAPTER-8 8.0 HUMAN RESOURCE MANAGEMENT IN STEEL INDUSTRIES The classification of the Steel industries into broad groups such as public sector, old private sector, new private sector, on the basis of ownership pattern. It is also well known that the business mix, delivery channels & IT strategies of these organizations vary substantially. What is little known but of greater importance is that each of these industries follows very distinct HR practices which have contributed, substantially, to the business processes. Personnel management in a steel plant is concerned with obtaining, organizing, utilizing and motivating the human resources needed by the steel plant. It develops requisite organizational climate and management styles to promote effective effort of cooperation and trust amongst all the employees of the steel plant. It aims at getting effective results by organizing and directing the co- operative efforts of human beings. This also helps the organization in meeting its legal obligations and social responsibilities. Personnel management is an extension of the general management in the organization. It is concerned with promoting and stimulating competent work force so that they can make their fullest contribution to the organization for the achievement of its objectives and goals
  • 68. 68 8.1. HRM IN SMALL PRIVATE STEEL INDUSTRIES It is sad that the HR policies of private steel industries are totally dominated by the Registrar of Company. This is, perhaps, one reason why the cooperatives are unable to improve themselves. The HR function as practiced by private is effectively involved in the identification of specific skills that each job warrants & recruiting suitable staff by every way possible. Recruitment is a continuous process with a strong focus on getting the right person for the right job by offering appropriate compensation, incentives & designations. There is a great energy spent in keeping the turnover low & offering appropriate training inputs. Possibly there are as many pay structures as there are employees. More importantly, HRM has a role in monitoring & mentoring the employee. There are no routine transfers. Rather people are recruited in different geographical locations & different levels. Technology has helped in centralizing the back office & other functions such that service can be provided from a distance. These institutions adopt a proactive performance appraisal system but still short of 360 Degree appraisals. Their training process is concerned with both skills building & motivating. It should, however be said that the demand for professionals on account of growth of Indian Business is such that the efforts of HRM have not helped it from completely staving off staff turnover in the ranks.
  • 69. 69 8.2. HRM IN PUBLIC SECTOR STEEL INDUSTRIES The concepts of the phenomenon of change enunciated in the preceding chapter and different viewpoints forwarded therein provide valuable insights into this area of management which has assumed critical importance for the survival and growth of business organization in the present context. It will also help in understanding the process of growth of public sector and steel industry in India. The study of the growth of steel industry per se and the mariner in which the company under study reacted to it would further lead to important understanding of the management of change practiced by the company under study. In the recent times, the contours of HR function in public sector steel industries are slowly but definitely changing. One could say that these sectors are discovering the HR function & it is hoped that these industries will fast catch up with others. It may be recalled that, in a controlled environment & to meet with the rapid expansion project. HRM practices similar to that of Government departments. Here in HRM did not have a direct role in business development but was more concerned with centralized recruitment to staff & providing them across the country.
  • 70. 70 CHAPTER-9 9.0 Role and Responsibilities of the Human Resource Management in Tata steel ltd. While the impact of the global economic crisis has been felt in varied degrees across all the geographies in which the Tata Steel Group (TSG) operates, keeping the employees cheerful and motivated in these trying times has remained the focus of the Human Resources department. The Group realises that its employees are the most valuable human capital and that they play a major role in building the competitive advantage of the Company’s business across the globe. As the economic crisis hit the world, Tata Steel Europe (TSE) employees contributed to the ‘Weathering the Storm’ initiatives to reduce costs and increase value, in the second half of the financial year. The company, the employees and the trade unions demonstrated the strength of their relationships by working together in the difficult times. Despite the present economic crisis, TSE has been able to maintain its position as an employer of choice through the following initiatives:  By demonstrating its commitment to health and safety.  By maintaining a level of apprentice and graduate recruitment.  By demonstrating the value of its culture of innovation and improvement by delivering value creation and cost reductions.  By building and maintaining positive employee relations by agreeing to innovative partnership deals with employee representatives and trade unions to reduce employment costs and minimise redundancies.
  • 71. 71  By taking the highest moral approach in its management of redundancies and their impact on the communities in which they occur.  By working with governments and other agencies in support not only of its own workforce but those of its customers and manufacturing as a whole. This is done to support the industry and demonstrate its central role to society and the countries in which the Group operates in Tata steel ltd 9.1. Role of Human Resource Management: The role of the Human Resource Department is to create the climate & conditions in which management throughout the industries will be enabled to optimize the individual & collective contribution of all employees to the short & long-term success in Tata steel ltd. The main role of Human Resource management department in Tata steel is  Recruitment  Training  Professional Development  Maintaining Work Culture  Resolving Conflicts  Employee Relations  Rewards and Incentives  Legal Knowledge  Payroll Management  Organization  Management
  • 72. 72 9.2. Responsibilities of Human Resource Management: A human resource manager has two basic functions: overseeing department functions and managing employees. For this reason, a human resources manager must be well-versed in each of the human resources disciplines – compensation and benefits, training and development, employee relations, and recruitment and selection. Core competencies HR managers have are solid communication skills and decision-making capabilities based on analytical skills and critical thought processes.  To be the principal sponsor & ―guardian of HR policies in Tata steel.  To propose & obtain agreement on changes to these policies from time to time & to ensure that policies which have been agreed are being implemented throughout the company.  To contribute fully to the task of meeting the business challenges within company has to face by supporting departmental, divisional Managers in continuously developing the potential of employees & in creating conditions in which all the employees are motivated to meet the objectives of the company.  To continuously monitor the company strategies to ensure that HR policies are appropriate & that employee numbers & skills are fully supportive of such strategies.  To deliver a full range of personnel services in support of line management. These services include manpower planning, recruitment/transfer, remuneration, and training & employee welfare.  To support line management in their day-to-day management of the workforce by providing advice & consultancy on personnel & performance management issues.
  • 73. 73 CHAPTER-10 10.0 EMPLOYEE RELATIONS IN TATA STEEL. “Employee Relation” is a function of many variables. Some of the contributing factors are participative management, grievance settlement machinery, wage determination etc. Tata Steel is the largest steel manufacturer in India with an annual capacity of 23.5 MT and employees approximately 80,000. Tata Steel workers in a century-old history have not gone on a strike at Jamshedpur, where its Indian manufacturing operations are largely based. The functioning and model of Tata Steel in many ways can be perceived as ideal and other unions across the country can adopt similar practices. Growth of the trade union is a response to the challenge thrown by the modern industry. Viewed in this background, the origin of trade union movement in Tata Steel were due to the same reason as elsewhere in Europe and America. Since 1907 dissatisfaction was increasing in the working class in Tata Steel. However, it was only in 1920 that labour organization was born after great struggle with the management. The genesis of trade union Tata Steel can be traced back to 1920. Over the years the workers’ union has evolved under the capable leadership of stalwarts such as Mahatma Gandhi, Rajendra Prasad and Subhas Chandra Bose to name a few. At Tata Steel the prime focus in terms of HR practices is on people development and growth, and employee relations, which is imbibed in the culture of caring for people. Tata Steel has always held the view that people are its greatest asset. It has adopted the best standards for employee well- being and quality of life, strongly promoting workforce rights. The other focal point is upholding the Tata values through transparency and fairness in HR practices and policies.