SHILPA'S PROJECT

Steel Authorityof Indialimited
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Project on motivation &job satisfaction of
Durgapur steel plant
Prepared &submitted by
ShilpaBose
Rollno:26800910018
Registrationno:102680710015of2010-11
In partial fulfillment of the requirements of
MASTER IN BUSINESS ADMINISTRATION (HR)
From
2010-2012

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DECLARATION
I, SHILPA BOSE student of APEX MANAGEMENT INSTITUTE (Tig)
hereby declare with respect to this project entitled:-
“PROJECT ON MOTIVATION & JOB SATISFACTION IN DURGAPUR
STEEL PLANT, DURGAPUR” submitted as the summer internship
project at DSP, after a one and a half month long vocational training
undertaken for experience in Human Resources, is the result of
authentic work undertaken by me and that the information supplied
in this report is correct to the best of my knowledge.
------------------------- UNDER GUIDANCE OF
SHILPA BOSE Mr. S.K PRODHAN

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ACKNOWLEDGEMENT
I wouldlike to thanks Mr.GOUTAM SAHA (DGM-Personnel)/ (NW&CLC),
Mr.A.K.SHARAN-AGM(Personnel), Mr.AVAS SAHU-MANAGER(Personnel)
and Mr. S.K.PRODHAN-Sr. Office SecretaryIn-Charge (Personnel/Central-
Function) for allow me to make the projecton “MOTIVATION & JOB
SATISFACTION” in DURGAPUR STEELPLANT.”
I owe my sincere gratitude to Mr. S.K PRODHAN for his continuous
support and efforts in providing the necessary information for the
project. Without his guidance this project would not be completed in the
desired manner and within the scheduled time frame.
My Special thanks are also extended to the employees of DSP for their
critical comments, suggestions, support & co-operation which ultimately
helped me a lot in making this PROJECT REPORT.
My special thanks to our Directors OF APEX MANAGEMENT
INSTITUTE and all faculties of apex management institute for their
precious guidance and continuous support at every step.
I also extend my gratitude to my parents for their constant support in all
respect throughout the preparation of the project.

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Content of the project
 Project title 1
 Declaration 2
 Acknowledgement 3
 Executive summary of the project 5
 Industry profile(SAIL) 6-16
 Company profile (DSP) 17-33
 Motivation & job satisfaction 35-49
 Motivational & welfare schemes provided by
 DSP which create job satisfaction 50-68
 Researchmethodology 69-72
 Findings & data analysis 73-84
 Suggestions 85-86
 SWOT analysis 87
 Conclusion 88
 Questionnaire 89-93
 Bibliography 94
 Gratitude 95

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Executive SUMMARY OF THE PROJECT
This project work entitled “MOTIVATION &JOB SATISFACTION
PROCEDURES IN DSP” is really to familiarize with the working
procedure and techniques of Personnel & Administration department of
DSP, DURGAPUR and also to know about THE MOTIVATION
AND JOB SATISFACTION PROCEDURES that prevails in DSP.
In this project work the main emphasis is given to find out:
 Company profile of DSP & SAIL.
 The meaning of MOTIVATION
 The basis of JOB SATISFACTION
 The theories of JOB SATISFACTION.
 By which process the motivation is being done?
 What are schemes involved in motivation?
 The work areas in DSP.
 System of Probation and confirmation.
 Wage Structure in DSP.
 Analysis & Suggestion on the basis of Questionnaire.

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Company profile of SAIL
THERE’S LITTLE BIT OF SAIL IN EVERYBODY’S LIFE
VISION OF SAIL
“To be a respected world class corporation and the leaderin Indian steel
businessin quality, productivity, profitabilityand customersatisfaction.”
Steel Authority of India Limited (SAIL) is the leading steel-making company in
India. It is a fully integrated iron and steel maker, producing both basic and special
steels for domestic construction, engineering, power, railway, automotive and
defence industries and for sale in export markets.
Ranked amongst the top ten public sector companies in India in terms of turnover,
SAIL manufactures and sells a broad range of steel products, including hot and
cold rolled sheets and coils, galvanized sheets, electrical sheets, structural’s,
railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL
produces iron and steel at five integrated plants and three special steel plants,
located principally in the eastern and central regions of India and situated close to
domestic sources of raw materials, including the Company's iron ore, limestone
and dolomite mines. The company has the distinction of being India’s largest
producer of iron ore and of having the country’s second largest mines network.

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This gives SAIL a competitive edge in terms of captive availability of iron ore,
limestone, and dolomite which are inputs for steel making.
Central Marketing Organization (CMO) encompasses a wide network of 37 branch
offices and 25 departmental Warehouses located in major cities and towns
throughout India. With technical and managerial expertise and know-how in steel
making gained over four decades, SAIL's Consultancy Division (SAILCON) at
New Delhi offers services and consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for Iron and Steel
(RDCIS) at Ranchi which helps to produce quality steel and develop new
technologies for the steel industry. Besides, SAIL has its own in-house Centre for
Engineering and Technology (CET), Management Training Institute (MTI) and
Safety Organization at Ranchi. Our captive mines are under the control of the Raw
Materials Division in Kolkata. The Environment Management Division and
Growth Division of SAIL operate from their headquarters in Kolkata. Almost all
our plants and major units are ISO Certified.
Major Units
 Integrated SteelPlants
 Bhilai Steel Plant (BSP) in Chhattisgarh
 Durgapur Steel Plant (DSP) in West Bengal
 Rourkela Steel Plant (RSP) in Orissa
 Bokaro Steel Plant (BSL) in Jharkhand
 IISCO Steel Plant (ISP) in West Bengal
 SpecialSteelPlants
 Alloy Steels Plants (ASP) in West Bengal
 Salem Steel Plant (SSP) in Tamil Nadu
 Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

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 Subsidiary
 Maharashtra Elektrosmelt Limited (MEL) in Maharashtra
 Joint Ventures
 NTPC SAIL PowerCompany Pvt. Ltd (NSPCL)
A 50:50 joint venture between Steel Authority of India Ltd. (SAIL)
and National Thermal Power Corporation Ltd. (NTPC Ltd
 Bokaro PowerSupply Company Pvt. Limited (BPSCL)
This 50:50 joint venture between SAIL and the Damodar Valley
Corporation formed in January 2002.
 Ownership and Management
The Government of India owns about 86% of SAIL's equity and retains
voting control of the Company. However, SAIL, by virtue of its ‘Navratna’
status, enjoys significant operational and financial autonomy.
SAIL’S BACKGROUND AND HISTORY
A Rich Heritage
The Precursor:
SAIL traces its origin to the formative years of an emerging nation - India. After
independence the builders of modern India worked with a vision - to lay the
infrastructure for rapid industrialisaton of the country. The steel sector was to
propel the economic growth. Hindustan Steel Private Limited was set up on
January 19, 1954. The President of India held the shares of the company on behalf
of the people of India.
Hindustan Steel (HSL) was initially designed to manage only one plant that was
coming up at Rourkela. For Bhilai and Durgapur Steel Plants, The registered office
was originally in New Delhi. It moved to Calcutta in July 1956 and ultimately to
Ranchi in December 1959.

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SAIL Today:
SAIL today is one of the largest industrial entities in India. Its strength has been
the diversified range of quality steel products catering to the domestic, as well as
the export markets and a large pool of technical and professional expertise.
Today, the accent in SAIL is to continuously adapt to the competitive business
environment and excel as a business Organization, both within and outside India.
PHILOSOPHY OF SAIL:
To build lasting relationship with customers based on trust and mutual benefit.
To uphold highest ethical standards in conduct of business.
To create and nurture a culture that supports flexibility, learning and is proactive to
change.
To make a challenging career for employees with opportunities for advancement
and rewards.
To value the opportunity and responsibility to make a meaningful difference in
people’s lives.
SAIL’S GROWTH PLAN 2011
As the largest producer in the country, Steel Authority of India Limited (SAIL) has
always believed in structured planning for achieving Organizational growth. This
has also contributed significantly to national interests, given the steel sector’s
strong backward and forward linkages.

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Much has happened ever since Sail’s Corporate Plan was announced in 2004.
Investment plans for the three specialty steel plants have been firmed up. Company
has grown in size with the amalgamation of IISCO (now renamed as IISCO Steel
Plant). Production targets have been revised from 19 million tonnes (MT) of steel
to about 24 MT. Estimated investment has increased from Rs 25,000 crore to
around Rs 40,000 crore. And the time period has been squeezed by two years,
bringing the targeted year of completion of major projects from 2010 to 2012.
SAIL (Corporate Agenda for the Future)
One of the key objectives of SAIL is to be a world-class company and the leader in
Indian steel business by leveraging its key competencies. These competencies will enable
PLANT 2010
Bhilai Steel Plant 6.21
Durgapur Steel Plant 2.85
Rourkela Steel Plant 2.90
Bokaro Steel Plant 6.50
IISCO Steel Plant 2.37
Alloy Steels plant 0.43
Salem Steel Plant 0.36
Visvesvaraya Iron & Steel Plant 0.22

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the company to manufacture products at lower cost and more speedily than competitors.
The real source of advantage will be organization’s ability to consolidate corporate wide
Technological knowledge base and skills into competencies, with sufficient empowerment
to adapt quickly to changing opportunities. The thrust is on building a World Class
Corporation, which will be able to maintain its growth and profitability by leveraging its
Internal strength and outperforming others in the market place irrespective of the vagaries
Of the market.
The strategy for SAIL evolves from its Vision statement:
“To be a respected world-class corporation and the leader in Indian steel business in
quality, productivity, profitability and customer satisfaction.”
Credo
 SAIL build lasting relationships with customers based on trust and mutual benefit.
 SAIL uphold highest ethical standards in conduct of our business.
 SAIL create and nurture a culture that supports flexibility, learning and is proactive to
change.
 SAIL chart a challenging career for employees with opportunities for advancement and
rewards.
 SAIL value the opportunity and responsibility to make a meaningful difference in
people’s lives.
Keeping in mind the vision and credo, the following Strategic Goals have been
defined for the Corporate Plan:
Strategic Goals
� To continue in the business of steel and steel related activities
� To enhance market share in growth segments
� To improve profits by productivity improvements cost reduction, high value added
products and customer satisfaction
� To achieve excellence in quality across the value chain
� To secure availability of key raw materials and alleviate infrastructure bottleneck
which may constrain long term growth.
To realize Strategic Goals, strategic options of growth, cost and quality have been
detailed. Unit and Functional Strategies, in turn will support these. Further, in light of
increasing competition and sophistication of the user segment, the Corporate Plan
Envisages enrichment of product-mix, including development of new products. These
Decisions will be based on the growth of consuming segments and competitors’ analysis.
Corporate Plan 2012
Considering the factors like core strength, likely growth in steel business and higher risk
in un-related diversification, the appropriate strategy for SAIL would be to remain
focused in steel and steel related business.
The Corporate Plan is designed to increase the hot metal production to about 20 million
tones per annum against the current level of 13 million tones per annum from SAIL
plants. This would happen through the optimal utilization of assets coupled with marginal

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capacity expansion, thereby enhancing SAIL’s market share to about 27 %, under the
projection that domestic consumption of finished steel would be about 60 million tonnes
by 2011-12.
Corporate Plan 2012 has also considered the market growth projections assuming overall
steel consumption at about 8 % per annum. However, the growth trends and macro
economic indicators could lead to higher growth potential. Therefore, depending on the
market growth, strategies of competitors, global economic scenario, government policies
and resource availability, SAIL’s plans may be revised from time to time, and further
growth in terms of volume, products etc. may be aimed through green-field investments,
acquisitions/mergers etc.
An Overview of NationalSteelPolicy – 2005
The National Steel Policy has been announced by Govt. of India, Ministry of Steel with
an objective to achieve the strategic goal that India should have a modern and efficient
steel industry of world standards, catering to diversified steel demand. The focus of the
policy is to achieve global competitiveness not only in terms of cost, quality and product mix
but also in terms of global benchmarks of efficiency and productivity. This will
require indigenous production of over 100 million tones (MT) per annum by 2019-20
from the 2004-05 level of 38 MT. This implies a compounded annual growth of 7.3
percent per annum.
Industry Structure
The iron and steel industry in India is organized in three categories’ viz. main producers,
other major producers and the secondary producers. The main producers and other major
producers have integrated steel making facility with plant capacities over 0.5 MT and
utilize iron ore and coal/gas for production of steel. In 2004-05, the main producers i.e.
SAIL, TISCO and RINL had a combined capacity of around 19.3 MT and capacity
utilization was 104 percent. The other major producers comprising of ESSAR, ISPAT
and JVSL had a capacity of 6.4 MT with capacity utilization of 97 percent. The
secondary sector includes sponge iron producers, mini blast furnaces, electric arc
furnaces, rerollers etc. This sector has a production capacity of 32.7 MT in 2004-05
SWOT Analysis Of The Industry
The strengths, weaknesses, opportunities and threats for the Indian steel industry have
been tabulated below. The national steel policy lays down the broad roadmap to deal with
all of them.
Strengths
1. Availability of iron ore and coal
2. Low labour wage rates
3. Abundance of quality manpower
4. Mature production base
Weaknesses
1. Unscientific mining
2. Low productivity

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3. Coking coal import dependence
4. Low R&D investments
5. High cost of debt
6. Inadequate infrastructure
Opportunities
1. Unexplored rural market
2. Growing domestic demand
3. Exports
4. Consolidation
Threats
1. China becoming net exporter
2. Protectionism in the West
3. Dumping by competitors
Strategy
A multi-pronged strategy is envisaged to be adopted to move towards the long-term
policy goal. On the demand side, the strategy would be to create incremental demand
through promotional efforts, creation of awareness and strengthening the delivery chain,
particularly in rural areas. On the supply side, the strategy would be to facilitate creation
of additional capacity, remove procedural and policy bottlenecks in the availability of
inputs such as iron ore and coal, make higher investments in R&D and HRD and
encourage the creation of infrastructure such as roads, railways, and ports.
Steel Demand
Domestic Demand: The present steel consumption per capita per annum is about 30 kg
in India, compared to 150 kg in the world, and 350 kg in the developed world. The
estimated urban consumption per capita per annum is around 77 kg in the country,
expected to reach approximately 165 kg in 2019-20. The rural consumption of steel in
India remains at around 2 kg per capita per annum. In the policy a target has been set for
raising the per capita rural consumption of steel to 4 kg per annum by 2019-20.
Exports: The growth of exports of steel from India has been around 10 percent per
annum over the past decade. A growth rate of around 13 percent per annum is envisaged
up to 2019-20.
Critical Inputs to Steel Production
In order to support steel production of 110 MT by 2019-20, at 100 percent capacity
utilization, the required quantities of critical inputs such as iron ore, coking and noncoking
coal can be seen in Table below. The projected requirements are based on the
assumption that new capacities will be 60 percent through the Blast Furnace (BF) route,
33 percent through the Sponge Iron – Electric Arc Furnace (EAF) route and 7 percent
through other routes.
Iron ore: At present, reserves of relatively rich iron ore in India are 11.43 billion tonnes
of haematite and 10.68 billion tonnes of magnetite ores. Though the reserves of haematite
ore appear to be large, high-grade lumpy reserves constitute only 8.7 percent of the total.
Further, the present commercial mining capacity for iron ore is only 175 MTs. In order
to ensure availability of 190 MT of iron ore for domestic production of steel by 2019-20,
Government would encourage investments in creation of an additional modern mining and
beneficiation capacity of 200 MT.

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Coking coal: The proven reserves of prime coking coal are only 4.6 billion tonnes. The
quality of Indian coking coal is also not suitable for steel. Poor quality domestic prime
coking coal has to be blended with imported coal. Currently the steel industry imports
around 19 MT of coking coal annually, and procures 7.5 MT from indigenous sources
including captive mines. By 2019-20, about 70 MT of coking coal will be required, of
which 85 percent will have to be imported.
Refractories: Refractories are used to line various high temperature vessels used in the
steel manufacturing process. India has a refractory industry of 80 units with 1.6 MT
capacity, and utilization of just 55 percent in 2004-05. It needs modernizing and
upgrading.
Other critical inputs for steel industry are natural gas, non coking coal & sponge iron
grade non coking coal.
Infrastructure
Inland transportation: It is estimated that every tonne of steel production involves
transportation of 4 tonnes of material. The envisaged addition of 75 MT of steel annually
implies 300 MT of additional traffic. Based on the average lead distance over which the
freight needs to be computed for raw materials for steel making and finished products, it
is estimated that the total traffic generated for railways originating due to the iron and
steel industry would be around 120 billion tonne kilometer by 2020. The Railway
facilities, therefore, would need to be expanded substantially. Similarly, the existing road
network needs to be expanded and strengthened considerably for reducing the transaction
costs of the Indian producers. The steel plants and mines need to be integrated with the
on-going programmes of national highway development and also with the proposed rural
road schemes for expanding the delivery chain of steel across the country, especially the
rural areas.
Ports: After liberalization of the economy, the Indian steel industry has become highly
dependent on port infrastructure both in terms of imports of critical input materials like
coal and coke and export of saleable steel. Keeping in view the strategic goal of
achieving a production of 110 MT of steel per annum and an annual export level of 26
MT by 2019-2020, the port facilities would also have to be expanded substantially.
Power: The additional requirement of power for the steel industry would be 7,000 MW
by 2019-20, requiring an additional investment of Rs. 24,500 crore.
Financial Resources: In order to achieve the strategic goal of 110 MT of steel
production by 2019-20, the industry would need additional capital to the tune of Rs.
230,000 crore. In addition, funds would be required for technological upgrade of existing
facilities. However, the outstanding advances of the banking sector to the industry at the
end of 2003-04 were only Rs. 26,295 crore. The cost of capital in India is among the
highest. To mobilize such vast resources, direct foreign investment would be encouraged
& Suitable incentives would be devised for the steel industry.
Human Resources
The anticipated steel production of 110 MT by 2020 would require an additional
workforce of 220,000 after accounting for the expected productivity improvements.7
Further the creation of 1 man-year of employment in the steel industry generates an
additional 3.5 man-years of employment elsewhere in the economy due to its strong
linkages with other sectors such as transport, mining, construction, machinery, and steel

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fabrication. The total additional employment generated in the economy due to expected
production of 110 MT by 2020 would be around 1 million. The profile of the required
human resources will have a larger share of the skilled and semi-skilled labour force.
Technologies, Researchand Development
Though the choice of technology will be determined by entrepreneurs based on technoeconomic
considerations, the Government would encourage adoption of technologies,
which:
• Have synergy with the natural resource endowments of the country
• Are conducive to production of high-end and special steel required for sophisticated
industrial and scientific applications.
• Minimize damage to the environment at various stages of steel making and mining.
• Optimize resource utilization.
• Facilitate modernization of the steel industry so as to achieve global standards of
productivity and efficiency.
• Development of front end and strategic steel based materials.
India’s expenditure on Research and Development has been negligible In the case of steel
industry, the ratio of expenditure on R&D as a percentage of turnover is only 0.26
percent. The low priority to indigenous R&D has given rise to adoption of technologies
that are more suited to conditions prevailing in the developed world. For example,
resource position of raw materials requires development of technologies, which can use
indigenous coking coals and non-coking coals and for improvement in quality of high
alumina Indian iron ore. But lack of innovation and adaptation to Indian conditions is
resulting in large-scale import of coking coal and low performance in iron making.
Aggressive R&D efforts are therefore required to create manufacturing capability for
special types of steel, substitute coking coal, enrichment and agglomeration of iron ore
fines, develop new products suited to rural needs, enhance material and energy
efficiency, utilize waste, and arrest environmental degradation.
FURTHER UPDATE
The National Steel Policy has envisaged steel production to reach 110 million tonnes by
2019-20. However, based on the assessment of the current ongoing projects, both in
greenfield and brownfield, Ministry of Steel has projected that the steel capacity in the
county is likely to be 124.06 million tonnes by 2011-12. Further, based on the status of
MOUs signed by the private producers with the various State Governments, it is expected
that India’s steel capacity would be nearly 293 million tonnes by 2020.
Culture
The most general sense, “Culture” could mean a ‘way of life’. Organisation culture refers
to the traditions, attitudes, beliefs and practices followed in an organisation by the
constituent members. However, culture by itself cannot be observed. It can only be
reflected in the observed behaviour of the employees – behaviour towards other
employees, towards the customers, towards outsiders and most importantly, behaviour
towards ones’ job.
For an organisation to have a distinct culture, it is necessary that members of the
organisation behave in a given way in response to various stimuli every time. An
organisation should put emphasis on culture being collective, consistent behaviour or
habit. Only a few employees acting in a particular fashion all the time, or all the

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employees acting in a particular fashion some of the times does not make that behaviour
the culture of any organisation. It has to be manifested in the behaviour of most of the
employees at most of the times i.e., it has to become a collective habit. Behaviour is
determined by the values prevailing in the organisation. Therefore, to inculcate desired
behaviour, it is necessary to cultivate a right set of culture. Culture consists of the
organisation’s core values, norms, attitudes and beliefs. These influence the employees to
determine the behavioural patterns which have to be consistent over time. The collective
behaviour, in turn, defines the culture of the organisation.
SAIL has observed that some of the strategies have been implemented well whereas some
others have not been implemented at all. Again, some of the strategies have been
implemented well in a department in a unit whereas the implementation in other
departments of the same unit has left a lot to be desired. For example, implementation of
the Internal Customer Satisfaction Model, adherence to SOPs, ISO Certification, etc., are
all Strategies and Systems which have been implemented with differing levels of
sincerity and success. The reason for this may be the prevalent culture particular to that
unit or department. To understand the prevailing culture and employee perceptions on
various aspects of culture, a study was undertaken across the organisation.
These are the areas of major concern because resistance to change will be great in these
areas. This is because if an individual or a collective feels that the performance in this
field is already good, there will be no effort on their part of change. One should
remember that in the final reckoning, it is the customer and not the employee who will
measure customer satisfaction. It is important to undertake periodic reviews of the
prevailing culture to ensure congruence between the existing culture and the requirements
of the business environment. It may, therefore, be necessary to define and then cultivate a
desired culture.
CORE VALUES
Consistent with Company’s vision, goals and strategies, SAIL adopted the following four
Core Values in 1995:
1. Customer Satisfaction
2. Concern for People
3. Consistent Profitability
4. Commitment to excellence
The meaning, rational and thrust of each of these Core Values is presented here.
Customer Satisfaction: Customer comes first every time.
Customer satisfaction is the first priority of every employee and the purpose of every job.
We do not compromise this value because we believe that this alone can enable us to
achieve the vision of attaining market leadership.
Concern for People: Talent of our people is our greatest asset.
We believe that developing competence and commitment of our people for enhancing
their contribution, is important for achieving customer satisfaction, and thereby the
prosperity of the company and of the employees.
Consistent Profitability: Consistent profitability is essential for growth.
We believe that consistent and significant profitability must be essential outcome of all
our activities. This is necessary for modernisation, growth and market leadership.
Commitment to Excellence: SAIL does it better.
We are committed to harnessing the full potential of all our resources, through creativity,

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continuous improvements and teamwork. We believe that this is important for making
SAIL the best organisation so that our customers, employees and shareholders have a sense of
pride.
COMPANY PROFILE OF DSP
DURGAPUR STEEL PLANT:
Set up in the late 50's with an initial annual capacity of one million tones of
crude steel per year, the capacity of Durgapur Steel Plant (DSP) was later
expanded to 1.6 million tones in the 70's. A massive modernization
programme was undertaken in the plant in early 90's, which, while bringing
numerous technological developments in the plant, enhanced the capacity of
the plant to 2.088 million tones of hot metal, 1.8 million tones crude steel
and 1.586 million tones saleable steel. The entire plant is covered under ISO
9001: 2000 quality management system.
The modernized DSP now has technology for quality steel making. The modernized units have
brought about improved productivity, substantial improvement in energy conservation and better
quality products. DSP’s Steel Making complex and the entire mills zone, comprising its
Blooming & Billet Mill, Merchant Mill, Skelp Mill, Section Mill and Wheel & Axle Plant, are
covered under ISO: 9002 quality assurance certification.
Location
Situated at a distance of 158 km from Calcutta, its geographical location is defined as 230 27'
North and 880 29' East. It is situated on the banks of the Damodar River. The Grand Trunk Road
and the main Calcutta-Delhi railway line pass through Durgapur.

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Environment control
Durgapur Steel Plant has always made relentless efforts to maintaining a healthy and clean
environment. DSP has undertaken massive afforestation to maintain clean environment. Some
3,266 acres of land have been covered with 14 lakh plantations. In order to develop healthy
awareness about the environment amongst the younger generation, eco-clubs have been formed
in DSP schools.
Centre for Human Resource Development
DSP has always attached maximum importance on proper training and development of its
employees. Its Centre for Human Resource Development has all modern facilities.
FACILITIES OF DSP:
 Process Flow Chart
 Raw Materials
 Coke Ovens & Coal Chemicals
 Sinter Plant
 Blast Furnaces
 Steel Melting Shop
 Roll Mills
 Railway Products
 Engineering Shops
 Research & Control Laboratories
 Computerization
 Quality Assurance
Raw Materials
Iron ore, coal and limestone are the three basic raw materials for the steel
industry.
Raw Materials Handling Complex
To improve and ensure consistency in raw material quality, the facilities, which
have been installed, are:

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 Beneficiation/washing facilities, both for lump ore and fines at Bolani
 Screening of lump iron ore inside the plant,
 Selective crushing of coal at Coal Handling Plant,
 Base blending facilities for Sinter Plant,
 Silo-cum- Blending bunkers
Durgapur is the only steel plant in the country to have a coal washery at the
plant site.
Coke Ovens & CoalChemicals
No of batteries - 4
No. of ovens per battery - 78
The coke ovens and coal chemicals zone is divided into four basic sections namely
coal preparation plant, coal carbonization plant, coke handling plant and coal
chemicals. Presently, DSP is operating only three batteries.
Sinter Plant:
Sinter mix, a mixture of fines of iron ore, limestone, coke, dolomite and flue dust,
blended proportionally at the RMHC, is a prepared material which is self fluxing.
In ignition strands it is burnt under controlled conditions to form a porous cake

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type substance called sinter, which used in blast furnaces enhances product cake
type substance called sinter, which used in blast furnaces enhances productivity
and reduces coke rate.
Blast furnaces:
Blast furnaces are referred to as the ‘mother unit’ of an integrated steel plant. Iron
ore as available in nature is basically an oxide. It is charged into a blast furnace
either as lump ore or in the form of sinter and reduced to molten iron by the coke at
temperatures ranging from 1, 200 – 1, 400 degrees centigrade. The limestone,
acting as flux, absorbs the impurities in the molten iron and goes out as slag. The
major portion of liquid hot metal is transferred to steel melting shop for conversion
to steel and the rest portion is cast into pig iron in pig casting machines. Blast
furnace slag high in lime-content is used for cement making. There are three
numbers of blast furnaces operating presently at DSP.

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SteelMelting Shop:
Molten iron is further refined at the Steel Melting Shop (SMS) to produce steel,
which is hard and malleable.
At DSP, there are 3 converters (Basic Oxygen Furnace) of 110-130 tonnes each.
The SMS also has a VacuumArc Degassing (VAD) unit for making special grades of
steel.
Continuous Casting Plant:
The state of the art CCP has 2 Nos machines having 6 strands each. The other basic
details are as follows: -
Design limits- 80-150 sq .mm, casting radius- 6 meters
Casting time – 85 minutes, Cut-off lengths- 6 / 9 / 12 meter
No of ladle treatment stations-2
Mould level controller - Automatic (Radio-active Co-60).
Rolling Mills:
Ingots weighing 8 tones each are heated in the soaking pits (numbering 20) for
about 7 to 12 hours at around 1, 200 degrees centigrade and thereafter rolled in the
42” primary and the 32” secondary blooming mills. These are rolled further into
different shapes and sizes in different finishing mills. The ingots after heating are
rolled in the Blooming Mill to make blooms of the sizes mentioned in the table
and then a part of the same are then further rolled in the Billet Mill for making
rolled billets or slabs as per the above details. The Section Mill rolls out light and
medium structural like joists, channels and angles.
Merchantmill:

22
The Merchant Mill produces plain round and Thermo-Mechanically Treated
(TMT) bars in the range of 16mm - 28mm. The entire product range of TMT bars
and rods at DSP is branded and has been able to create a niche market. The Skelp
Mill produces skelp in the range of 146 to 235 mm primarily for tubes and pipes
making industry.
RailwayProducts
Durgapur Steel Plant is the only major indigenous supplier of wheel sets, loco
wheels, carriage and wagon wheels, and axles to the Indian Railways. As per
demand of the Railways, the plant has developed loco wheels, which were
imported earlier. The Wheel & Axle Plant is producing wheels manufactured as
per the latest IRS specifications, i.e. R-19/93 for carriage and wagon wheels, R-
34/99 for loco wheels and R-16/95 for axles.
Engineering shops
Durgapur Steel Plant has a number of captive engineering shops for repairs and
supply of spare parts. The Central Engineering Maintenance has a Machine Shop,
Structural Shop, Fitting and Assembly Shops. TheFoundry produces Ingot moulds
and bottom plates for the steel melting shop. There are also Auxiliary Repair Shops
such as Electrical, Wagon and Loco repair.
Researchand Control laboratories
The Research & Control laboratories are entrusted with the responsibility of
maintaining quality of products and also developing new products. It is well
equipped for carrying out sophisticated chemical, metallurgical and other tests.
Computerization
An extensive computerization has been undertaken in DSP for personnel,
commercial, process control, and production and maintenance applications. The
Production Planning and Control network is thoroughly used for tracking of
customer orders, material, monitoring of quality parameters and ensuring
availability of accurate, real time data to all agencies needing access to the data.
Quality Assurance

23
In order to be fully competitive on the quality front, Durgapur Steel Plant has set
out to acquire ISO 9000 certification for all its units. The Merchant Mill is the first
to secure the prestigious ISO 9002 certificate. Subsequently, steel melting shop,
basic oxygen furnace shop, continuous casting plant, and wheel and axle plant
were also awarded the ISO 9002 certification and recently the Skelp Mill has been
awarded the ISO 9002 certification.
PRODUCT mix OF DSP:
Merchant Products 2,80,000
Structural 2,07000
Skelp 180,000
Wheels & Axles 58000
Semis 8,61000
Total Saleable steel 1586000
Community & Development
“The abode of steel men”
The Durgapur Steel Plant Township is spread over a sprawling 40 kms and has
more than 25,000 dwelling units. And it has housing facilities for the employees of
DSP, ASP and other business associates. The other amenities include schools, both
primary and secondary, a modern 640 beds hospital with modern medical facilities,
the picturesque park, a number of cultural centers, a stadium with a sitting capacity
of 15,000, etc.

24
Peripheral Development
Over the years, it has contributed in a major way for providing tube well facilities
in the water-scarce peripheral areas. Another notable contribution has been the
efforts taken towards enlightenment of the region through up-gradation or
additions to educational facilities in basically rural areas surrounding the steel
township. It has also assisted in developing roads and other facilities. Durgapur
Steel Plant has played a major role in encouraging and developing small-scale
industries in the region.

25

26
Joint ventures of SAIL
NSPCL
BPSCL
SAIL BANSAL SERVICE CENTRE LTD
BHILAI JP CEMENT LTD
SAIL & OIL FERRO ALLOY (PVT) LTD
S&T MINING COMPANY (PVT) LTD
INTERNATIONAL COAL VENTURES PRIVATE LTD
FINISHED PRODUCTS OF DSP
 BLOOMS
 BILLETS & SLABS
 JOISTS
 CHANNELS
 ANGELS
 BARS
 RODS
 SKELP
 WHEELS
 RAILWAY WHEELS &AXLES
 PIG IRON CHEMICALS

27
DSP PLANT VISIT

28
MAJOR SERVICES DEPARTMENTS
Central Engineering Maintenance
The main function of this department is to manufacturing & reclamation of
mechanical spares as per need of the plant.
There are six sections in CEM:
1. Planning and Progress
2. Structural shop
3. Forging shop
4. Machine shop
5. Fitting shop
6. Tool room
The main equipments in CEM are:
Horizontal Boring machine
Vertical Boring machine
Gear Hobbing machine
Plano-Milling machine
Surface Grinding machine
CNC Profile cutting machine
Plate Bending machine
Shearing machine
M I G Welding
Submerged Arc Welding
Forging Hammer
Heat Treatment Furnace
Horizontal press etc.
Foundry
DSP is having its own foundry, referred as captive foundry. The main products are:
Ingot mould (8.5T)
Bottom Plate (3T)

29
False Plate
Casting of different small structures is also done here to cater the needs of different
shops. Important equipments are:
1. Pneumatic Rammer
2. K.S. Drag barrels
3. Stripping plates
4. Mix-Mullers
5. Jolting machine
6. Stoves
7. Guide Pit
8. Cupola Furnace
Electrical Repair Shop
In this department electrical motor, generator & electromagnet from different
department are repaired. The main jobs in ERS are winding, overhauling, repair and
testing of Electrical machines.
Major Equipments are:
LT Motor testing facility
DC Motor testing facility
3.3KV Motor tester
Heat Chamber
Stripping machine
Coil making machine
EOT Crane etc.
Energy Management Department
The major functions of Energy Management Department are
Gas distribution and control
Maintenance of gas pipelines & gas holder
Gas safety monitoring
Conservation of energy consumption
EMD supplies BF gas, CO gas and BOF gas to different consumers through pipeline
network (16.5 km long approx.).
The CO gas network process is normally maintained around 350 MMWC and for
BF gas it is 380 MMWC. These gas holder are connected with network to maintain
network gas pressure. The BOF gas, generated intermittently is first stored in a gas
holder and then pumped into BF gas network. These gases are used in different shops
either separately or mixed in different proportion before boosting up the gas pressure
through the booster fan.
So far as conservation of energy is concern, monitoring of combustion control of
different furnaces, boilers, soaking pit etc. are done by EMD on a regular basis.
24
Environment Control Department
The ECD was constituted to meet the legal requirements, social demands and
commitments made in the memorandum of settlements with National Joint
Committee on Safety with respect to Environment.

30
Main functions:
Compliance with provisions of various environmental legislations /
regulations which involves statutory monitoring of air, water & noise
pollution in different areas of plant and township.
Investigative monitoring of air, water & noise pollution from different sources
in the plant.
To advise for further need in improvement of pollution control systems in
different departments.
Study of different kinds of solid wates generated from plant, and their
recycling, selling and dumping status
Traffic
Transportation of materials is an important activity in an integrated steel plant.
The Traffic organization plays a vital role in smooth running of the different
production units, which leads to profitability of the plant by optimizing the cost of
transportation.
The Traffic Organization consists of following departments:
1. Traffic Operation
2. Permanent Way Engineering (PWE)
3. TXR/Rerailment
4. Loco Repair Shop (LRS)
Traffic Operations:
It is taking over of all incoming wagons with raw materials and handling over of
empty & loaded wagons to Railway at Durgapur Steel exchange yard. It is also
controlling movements of different materials within different section in production
units. Commercial section looks after the commercial aspects with Railway like
freight, indenting, allotment of rakes, weightment and shortage, claim of rebates etc.
PWE Department:
It takes up repair, maintenance & renewal of 230 km network of Railway track for
smooth movement of locos & rolling stocks.
TXR/Rerailment Department:
The TXR/Rerailment department carries out inspection of DSP’s rolling stocks
for their fitness to run, take up minor repair work in different sick lines, take up all
rerailment activity of all derailed rolling stocks inside work premises.
It also does the brake-releasing activity of all incoming loads prior to the Tippling
at RMHP and Coal Tipplers.
Loco Repair Shop:
Loco Repair Shop maintain 39 nos of locomotives and 2 nos of 50T rail crane, 1
rail crane and 1 magnet crane.
Power Plant
Main Objectives are:
To provide COLD AIR BLAST to blast furnace.
To provide HP/LP process steam to BF, COCC, SMS, Oxygen & Sinter Plant.
Power generation to provide energy power requirement.

31
HP steam at 32 Kg/cm2
LP steam at 12.5 Kg/cm2
The capacity of this plant (4X5W=20MW). It is also called as blower plant as its
main aim is to generate steam. There are seven boilers each having capacity 60 TPH.
Steam is generated at high pressure. Boiler No. 1, 2, 5, and 6 uses coal and (BF+CO)
gas as fuel. Boiler no. 3, 4 and 7 are gas fired using (BF+CO) gas.
Power Management Department
Function :
To receive & distribute Power as per requirement of different units of the DSP,
ASP & Township.
To maintain all equipment related to Distribution Network.
To maintain the Cost of Power within Budget.
To Monitor Consumption of Power of different units.
To maintain illumination of road and areas inside the plant.
Power Requirement :
Requirement of DSP & ASP is met by Power we purchase from DVC (Grid
source) & NSPCL(Captive Unit). Power demand of DSP & ASP is as following.
DSP Average : 95 MW. Peak : 125 MVA.
ASP Average : 30 MW. Peak : 65 MVA.
Source of Power :
Grid :- DVC Contract Demand : 85 MVA.
Captive :- 1. NSPCL- 2 x 60 MW (Thermal).
2. OPP - 4 x 5 MW (Thermal).
There is a SCADA system installed in MRS. It stand for supervisory control and
data acquisition system. It act as an inter face between main receiving station and
other distribution centers. In case of any power failure, it ensure that power supply in
critical zones remain uninterrupted. There is Computerised Islanding scheme with
load shedding package for isolation of NSPCL units from grid in case of any grid
disturbance.
Plant Civil Engineering
The main functions of PCE is to repair and maintenance of plant roads, buildings,
sheds, underground swerage system and overall upkeepment of the plant, department
and maintenance of lawn & gardens by the side of the main road of Plant.Beside this
paintings, repairs of plant structures are also done by this department.
Oxygen Plant
The main objectives of this department are:
To supply generate oxygen at 99.5% purity and 16 kg/cm2 pressure. It has
nine gaseous O2 storage vessels and two liquid oxygen storage tanks. The
capacity of this plant is (2X350=700TPD).
To supply N2 at a pressure of 8 kg/cm2 / 16 kg/cm2 at a purity of 200 PPM.
Products of this plant are:
1. Oxygen gas for BOF, CCP, BF, Rolling mills.
2. Liquid oxygen for oxygen cylinder refilling
3. N2 for BOF, CCP, BF, EMD.
4. Argon for BOF,CCP, VAD

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The distribution network is spread over 18 Km in the plant.
Computer Managed Maintenance System
The function of this department is to achieve systematic approach to maintenance
using CMMS package as a tool for reliable and effective maintenance information
system.
The objectives are:
To understand the maintenance practice of the plant
To develop computerized maintenance system.
Generation of reliable data bank
The maintenance system in DSP had a conventional practices by all the departments
i.e. log book/ledger/cards etc. In order to come out of this syndrome a systematic
approach towards maintenance supported by a reliable and effective system was
established. With the introduction of CMMS the maintenance practices are getting
more and more standardized.
Research & Control Laboratory
This department is responsible for maintaining the quality of product and develops
new products to cater to the needs of customers with the ever changing demand. For
this purpose periodic monitoring and controlling of the quality of input raw material,
process and final products is required.
Major activities of this department are:
1. Process control
2. Inspection
3. Analysis and testing
4. Research and development
To achieve these it has a main laboratory outside the plant and the other
laboratories are inside the plant. The laboratories inside the plant are at RMHP, BF,
BOF, Coke Oven, Rolling mill, Wheel & Axle plant etc. The main lab is well
equipped with chemical, metallurgical and other facilities.
Computer & Information Technology Department
C&IT Department is the centre nodal agency for IT activity of DSP. The main
feature of C&IT department is as follows:
Production, Planning & control.
Process Control,
Finance & Accounting System
Maintenance Management
Salary & Payment System
Maintenance of Network
Database Administration
Most of the production process & services are connected in the network and data
can be available on-line for better monitoring of the above activities.
Presently ERP is also under stage of implementation for the following modules:
Finance & Accounting
Sales & Distribution
Quality

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Maintenance
Material
Production & Planning
The go-line is fixed as 31-03-2009.
Human Resource Department
Centre for Human Resource Development is the nodal agency for facilitating
competency assessment and training need identification of employees. Various kinds
of training programmes are conducted throughout the year. The main areas of training
are:
1. New Entrants Training e.g. MT(T), SOT, JOT and TA.
2. Competence Enhancement
a. Managements & Supervisory Development programmes
b. Electrical, Electronics and PLC Training
c. Hydraulics and Pneumatics Training
d. Computer Training
e. Basic Engineering Skill at Workshop
f. Unit Training at Shop Floor etc.
3. Specific Areas : Safety, Health and Environment Training.
4. External Training : At suppliers’ Workshop in India / abroad.
5. Others : Workshops, RajBhasha etc.
Town Administration & Services
Durgapur Steel Plant has a modern township spread over in 40 sq-km area. It has 3
zones namely A, B and C with 24141 houses of DSP and around 4900 houses of ASP.
DSP Township has following main features:
Stadium – 2 nos (DSP -1, ASP – 1)
Community Centres – 6 nos
Schools / Colleges – 6 High Schools, 2 Primary schools and a large number of
Private schools / colleges
Sector Markets – 7 nos
Club – 5 nos
Parks – 3 nos
Guest Houses – 3 nos
Swimming Pool – 3 nos
Petrol Pump – 3 nos
Road Networks – 81 km main road and 230 km street roads
Hospitals – 1 Main Hospital and 5 Health Centres
Medical & Health Services
DSP has modern 640-bed General Hospital with 5 Health Centre and 1 Occupational
Health Service Unit. The Bed Occupancy rate of this hospital is 70%.
New facilities in DSP Main Hospital:
New ward block housing 4 sets of Dialysis units.
New centralized dental clinic

34
New eye bank
New state-of-the-art Burn Care Unit
9 bedside cardiac monitors with central monitor,
Difibrillator and ventilator in ICU
Revamped OPD
Binocular microscope, Coagulometer, Tissue Processor, Terbidometer, Flame
Photometer in Pathology Department
Phaco emulsification unit in the Eye Department
DCR with help of nasal endoscope in ENT, a first in SAIL Hospitals
New Audiology room and new instruments Micro Debridor and Sinus shavar,
Fees set etc in ENT.
Industrial Relations Management
Industrial Disputes Act, 1947
Objective
To secure industrial peace and harmony by providing machinery and procedure for settlement
of industrial disputes
Definitions
• Industry means any business, trade, undertaking, manufacture or calling of employers and
includes any calling, service, employment, handicraft, industrial occupation or avocation
of workmen.
• Workmen means any person (including an apprentice) employed in any industry to do any
manual, unskilled, skilled, technical operation, clerical or supervisory work for hire or
reward whether the terms of employment be expressed or implied. For the purpose of any
proceeding under this Act in relation to an industrial dispute, includes any such person
who has been dismissed, discharged, or retrenched in connection with, or whose
dismissal, discharge or retrenchment has led to that dispute means any person including
an apprentice employed in any industry. However, ‘Workman’ does not include.
• Person employed in supervisory capacity drawing more than Rs.1600 per
month.
• Person employed mainly in managerial and administrative capacity
• Master and servant relationship
• Industrial dispute means any dispute between employers and employers, employers and
workmen or between workmen and workmen which is connected with employment or
non-employment or the terms of employment or with the conditions of employment of
any person.
Authorities under this Act
i. Works Committee Bipartite forum having representatives from employer &
workmen side in equal number ranging from 12 to 20 in total.
ii. Conciliation Officer
The appropriate Govt. may appoint Conciliation Officers charged with the
duty of mediating in and promoting the settlement of industrial disputes.
iii. Board of conciliation
The appropriate Govt. by a notification in official Gazette constitutes a Board
of Conciliation for promoting the settlement of an industrial dispute.
A board should consist of a chairman and two or four other members, as the
appropriate Govt. thinks fit.

35
iv. Labour Court
The appropriate Govt. may constitute one or more labour courts for the
adjudication of industrial dispute. A labour court shall consist of one person
only with necessary judicial qualification, to be appointed by the appropriate
Government.
v. Tribunals
The appropriate Govt. may constitute one or more Industrial Tribunals for the
adjudication of industrial dispute relating to any matter, whether specified, in
the second or third schedule and for performing such other function as may be
assigned to them.
vi Arbitrator :
Voluntary reference of dispute to arbitrator for adjudication under an agreement.
Publication of arbitration agreement in official gazette is mandatory.
OVERVIEW OF
MOTIVATION
&
JOB SATISFACTION

36
PROJECT BACKGROUND
 What is motivation?
 Theories of motivation.
 What is job satisfaction?
 Schemes & factors of motivation.
 DSP motivational schemes.
 DSP’s action planning & policies.
 Questionnaires for employees about motivation & job
satisfaction.
 Statistical test (z-test).
 Test results.

37
WHAT IS MOTIVATION?
People consider it to be a personal trait – that is some have
it & some don’t. In practice inexperienced managers often label
people who lack motivationas lazy. But it isn’t true. What we
know is that motivation is the result of the interaction of the
Individual and the situation.Individuals differ in their
motivational drive.
For example: a student may find reading a 20pages note
book very tiring, but the same student may be able to read 150
pages of Harry Potter just in one day. For the student the
change in motivation is driven by the situation.
Thus we can say that the level of motivation varies both
Between individuals and within individuals at different times.
DEFINITION:
Motivation is defined as the processes that account for an
individual’s intensity, direction, & persistence of effort towards
attaining a goal.
General motivation is considered with efforts towards any

38
goal, but we narrow ourfocus on organizational goals.

39
Motivation is the driving force by which humans achieve their goals.
Motivation is said to be intrinsic or extrinsic. The term is generallyused for
humans but it canalso be used to describe the causes foranimal behavior as
well. This article refers to human motivation. According to various theories,
motivation may be rooted in a basic need to minimize physical pain and
maximize pleasure, or it may include specific needs such as eating and resting,
or a desired object, goal, state of being, ideal, or it may be attributed to less-
apparent reasons suchas altruism, selfishness, morality, or avoiding
mortality. Conceptually, motivation should not be confusedwith either
volition or optimism. Motivation is related to, but distinct from, emotion.
Motivation concepts
Intrinsic and extrinsic motivation
Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task
itself, and exists within the individual rather than relying on any external pressure. Intrinsic
motivation has been studied by social and educational psychologists since the early 1970s.
Research has found that it is usually associated with high educational achievement and
enjoyment by students. Explanations of intrinsic motivation have been given in the context of
Fritz Heider's attribution theory, Bandura's work on self-efficacy, and Deci and Ryan's cognitive
evaluation theory Students are likely to be intrinsically motivated if they:
 attribute theireducationalresultstointernalfactorsthattheycan control (e.g.the amountof
efforttheyputin),
 believetheycanbe effective agentsinreachingdesiredgoals(i.e.the resultsare not
determinedbyluck),
 are interestedinmasteringatopic,ratherthan just rote-learningtoachieve goodgrades.
Extrinsic motivation comes from outside of the individual. Common extrinsic motivations are
rewards like money and grades, coercion and threat of punishment. Competition is in general
extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic
rewards of the activity. A crowd cheering on the individual and trophies are also extrinsic
incentives.
Social psychological research has indicated that extrinsic rewards can lead to overjustification
and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect,
children who expected to be (and were) rewarded with a ribbon and a gold star for drawing
pictures spent less time playing with the drawing materials in subsequent observations than
children who were assigned to an unexpected reward condition and to children who received no
extrinsic reward. Self-determination theory proposes that extrinsic motivation can be internalised
by the individual if the task fits with their values and beliefs and therefore helps to fulfill their
basic psychological needs.

40
Self-control
The self-control of motivation is increasingly understood as a subset of emotional intelligence; a
person may be highly intelligent according to a more conservative definition (as measured by
many intelligence tests), yet unmotivated to dedicate this intelligence to certain tasks. Yale
School of Management professor Victor Vroom's "expectancy theory" provides an account of
when people will decide whether to exert self control to pursue a particular goal.
Drives and desires can be described as a deficiency or need that activates behavior that is aimed
at a goal or an incentive. These are thought to originate within the individual and may not
require external stimuli to encourage the behavior. Basic drives could be sparked by deficiencies
such as hunger, which motivates a person to seek food; whereas more subtle drives might be the
desire for praise and approval, which motivates a person to behave in a manner pleasing to
others.

41
: Maslow's hierarchy of needs
The content theory includes the hierarchy of needs from Maslow and the two- factor theory from
Herzberg. Abraham Maslow's theory is one of the most widely discussed theories of motivation.
The American motivation psychologist Abraham H. Maslow developed the Hierarchy of needs
consistent of five hierarchic classes. It shows the complexity of human requirements. Maslow
says that first of all the basic requirements have to be satisfied. The basic requirements build the
first step in his pyramid. They decide about to be or not to be. If there is any deficit on this level,
the whole behavior of a human will be oriented to satisfy this deficit. Subsequently we do have
the second level, which awake a need for security. Basically it is oriented on a future need for
security. After securing those two levels, the motives shift in the social sphere, which form the
third stage. Psychological requirements consist in the fourth level, while the top of the hierarchy
comprise the self- realization. So theory can be summarized as follows:
 Human beingshave wantsanddesireswhichinfluencetheirbehavior.Onlyunsatisfiedneeds
influencebehavior,satisfiedneedsdonot.
 Since needsare many,theyare arrangedin orderof importance,fromthe basictothe complex.
 The personadvancesto the nextlevel of needsonlyafterthe lowerlevelneedisatleast
minimallysatisfied.
 The furtherthe progressup the hierarchy,the more individuality,humannessandpsychological
healtha personwill show.
The needs, listed from basic (lowest-earliest) to most complex (highest-latest) are as follows:
 Physiology (hunger,thirst,sleep,etc.)
 Safety/Security/Shelter/Health
 Belongingness/Love/Friendship
 Self-esteem/Recognition/Achievement
 Self actualization
Herzberg's two-factor theory
Main article:FrederickHerzberg
Frederick Herzberg's two-factor theory, a.k.a. intrinsic/extrinsic motivation, concludes that
certain factors in the workplace result in job satisfaction, but if absent, they don't lead to
dissatisfaction but no satisfaction. The factors that motivate people can change over their
lifetime, but "respect for me as a person" is one of the top motivating factors at any stage of life.

42
Two–Factor Theory:
He distinguished between:
 Motivators; (e.g.challengingwork,recognition,responsibility) whichgive positivesatisfaction,
and
 Hygiene factors; (e.g.status, jobsecurity,salary andfringe benefits) thatdonot motivate if
present,but,if absent,resultindemotivation.
The name Hygiene factors is used because, like hygiene, the presence will not make you
healthier, but absence can cause health deterioration.
The theory is sometimes called the "Motivator-Hygiene Theory" and/or "The Dual Structure
Theory."
Herzberg'stheoryhasfoundapplicationinsuchoccupational fieldsasinformationsystemsand
instudiesof usersatisfaction

43

44
Themotivationcycle…
3.
Success
4.
Recognition 2.
Commitment
5.
Motivation
 Motivated teams
perform well and
work hard to achieve
objectives, deliver
and develop
 Recognition of that
success brings
about motivation
 Commitment and
achieving the
objectives brings
positive result
 Commitment begins
when the team starts
to give priority to the
achievement of the
objectives
 Involvement starts
when a group of
individuals come
together to share a
common objective
1.
Involvement
…points the way to developing high performance teams.
WHERE ARE YOU OR THINK YOU ARE IN THIS CIRCLE?
In t er n a t io n a l Ch ur c h o f Ch r ist , Nig er ia
M OTIVATION
Benefit of having motivated employees
Employees who are highly motivated are the real assets of any company. If you can
successfully motivate an employee, they will work more productively, & energetically. They
are more open towards assuming increased responsibility & the entire work atmosphere
becomes charged with high energy. By focusing on motivation consciously, a company can
transform their employees into high achievers & bring down the rate of employee turnover.
Employees will be more enthusiastic about coming to work & you will observe less
absenteeism.

45
JOB SATISFACTION
Definition:
Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal of
one’s job; an affective reaction to one’s job. Weiss (2002) has argued that job satisfaction is an
attitude but points out that researcher should clearly distinguish the objects of cognitive
evaluation which are affecting (emotion), beliefs and behaviors. This definition suggests that we
form attitudes towards our jobs by taking into accounts our feelings, our beliefs, our behaviors.
The relationship between motivation & job satisfaction:
TheResult...
Job Satisfaction!
M OTIVATION
Basically job satisfaction is the result of motivation.
M OTIVATION
TopFactorsAffectingJobAttitudes
Leading to Dissatisfaction Leading to Satisfaction
•Company policy
•Supervision
•Relationship w/Boss
•Work conditions
•Salary
•Relationship
w/Peers
• Achievement
• Recognition
• Work itself
• Responsibility
• Advancement
• Growth
The theory argues that the opposite of satisfaction is not
dissatisfaction, but rather, no satisfaction. Similarly, the opposite of
dissatisfaction is no dissatisfaction.

46
Job DesignApproach
Job characteristics theory states that employees are more satisfied and motivated when
their jobs are meaningful, when jobs create a feeling of responsibility, and when jobs are
designed to ensure that some feedback is available.
Job CharacteristicsTheory : Five Job Characteristics :
Skill variety
Task identity
Task significance
Autonomy
Feedback
History
One of the biggest preludes to the study of job satisfaction was the Hawthorne studies. These
studies (1924–1933), primarily credited to Elton Mayo of the Harvard Business School, sought
to find the effects of various conditions (most notably illumination) on workers’ productivity.
These studies ultimately showed that novel changes in work conditions temporarily increase
productivity (called the Hawthorne Effect). It was later found that this increase resulted, not from
the new conditions, but from the knowledge of being observed. This finding provided strong
evidence that people work for purposes other than pay, which paved the way for researchers to
investigate other factors in job satisfaction.
Scientific management (aka Taylorism) also had a significant impact on the study of job
satisfaction. Frederick Winslow Taylor’s 1911 book, Principles of Scientific Management,
argued that there was a single best way to perform any given work task. This book contributed to
a change in industrial production philosophies, causing a shift from skilled labor and piecework
towards the more modern of assembly lines and hourly wages. The initial use of scientific
management by industries greatly increased productivity because workers were forced to work at
a faster pace. However, workers became exhausted and dissatisfied, thus leaving researchers
with new questions to answer regarding job satisfaction. It should also be noted that the work of
W.L. Bryan, Walter Dill Scott, and Hugo Munsterberg set the tone for Taylor’s work.

47
Some argue that Maslow’s hierarchy of needs theory, a motivation theory, laid the foundation for
job satisfaction theory. This theory explains that people seek to satisfy five specific needs in life
– physiological needs, safety needs, social needs, self-esteem needs, and self-actualization. This
model served as a good basis from which early researchers could develop job satisfaction
theories.
Job satisfaction can also be seen within the broader context of the range of issues which affect an
individual's experience of work, or their quality of working life. Job satisfaction can be
understood in terms of its relationships with other key factors, such as general well-being, stress
at work, control at work, home-work interface, and working conditions.
Theories ofjob satisfaction
Affect Theory
Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job satisfaction
model. The main premise of this theory is that satisfaction is determined by a discrepancy
between what one wants in a job and what one has in a job. Further, the theory states that how
much one values a given facet of work (e.g. the degree of autonomy in a position) moderates
how satisfied/dissatisfied one becomes when expectations are/aren’t met. When a person values
a particular facet of a job, his satisfaction is more greatly impacted both positively (when
expectations are met) and negatively (when expectations are not met), compared to one who
doesn’t value that facet. To illustrate, if Employee A values autonomy in the workplace and
Employee B is indifferent about autonomy, then Employee A would be more satisfied in a
position that offers a high degree of autonomy and less satisfied in a position with little or no
autonomy compared to Employee B. This theory also states that too much of a particular facet
will produce stronger feelings of dissatisfaction the more a worker values that facet.
Job Characteristics Model
Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a
framework to study how particular job characteristics impact on job outcomes, including job
satisfaction. The model states that there are five core job characteristics (skill variety, task
identity, task significance, autonomy, and feedback) which impact three critical psychological
states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of
the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work
motivation, etc.). The five core job characteristics can be combined to form a motivating
potential score (MPS) for a job, which can be used as an index of how likely a job is to affect an
employee's attitudes and behaviors----. A meta-analysis of studies that assess the framework of
the model provides some support for the validity of the JCM.

48
Communication Overload and Communication Under load
One of the most important aspects of an individual’s work in a modern organization concerns the
management of communication demands that he or she encounters on the job (Krayer, K. J., &
Westbrook, L., p. 85). Demands can be characterized as a communication load, which refers to
“the rate and complexity of communication inputs an individual must process in a particular time
frame (Faraca, Monge, & Russel, 1977).” Individuals in an organization can experience
communication over-load and communication under- load which can affect their level of job
satisfaction. Communication overload can occur when “an individual receives too many
messages in a short period of time which can result in unprocessed information or when an
individual faces more complex messages that are more difficult to process (Farace, Monge, &
Russel, 1997).” Due to this process, “given an individual’s style of work and motivation to
complete a task, when more inputs exist than outputs, the individual perceives a condition of
overload (Krayer, K. J., & Westbrook, L., p. 86) which can be positively or negatively related to
job satisfaction. In comparison, communication under load can occur when messages or inputs
are sent below the individual’s ability to process them (Farace, Monge, & Russel, 1997).”
According to the ideas of communication over-load and under-load, if an individual does not
receive enough input on the job or is unsuccessful in processing these inputs, the individual is
more likely to become dissatisfied, aggravated, and unhappy with their work which leads to a
low level of job satisfaction.
Measuring job satisfaction
There are many methods for measuring job satisfaction. By far, the most common method for
collecting data regarding job satisfaction is the Likert scale (named after Rensis Likert). Other
less common methods of for gauging job satisfaction include: Yes/No questions, True/False
questions, point systems, checklists, and forced choice answers. This data are sometimes
collected using an Enterprise Feedback Management (EFM) system.
The Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin (1969), is a specific
questionnaire of job satisfaction that has been widely used. It measures one’s satisfaction in five
facets: pay, promotions and promotion opportunities, coworkers, supervision, and the work itself.
The scale is simple, participants answer either yes, no, or can’t decide (indicated by ‘?’) in
response to whether given statements accurately describe one’s job.
The Job in General Index is an overall measurement of job satisfaction. It is an improvement to
the Job Descriptive Index because the JDI focuses too much on individual facets and not enough
on work satisfaction in general.

49
Other job satisfaction questionnaires include: the Minnesota Satisfaction Questionnaire (MSQ),
the Job Satisfaction Survey (JSS), and the Faces Scale. The MSQ measures job satisfaction in 20
facets and has a long form with 100 questions (five items from each facet) and a short form with
20 questions (one item from each facet). The JSS is a 36 item questionnaire that measures nine
facets of job satisfaction. Finally, the Faces Scale of job satisfaction, one of the first scales used
widely, measured overall job satisfaction with just one item which participants respond to by
choosing a face.
An important finding for organizations to note is that job satisfaction has a rather tenuous
correlation to productivity on the job. This is a vital piece of information to researchers and
businesses, as the idea that satisfaction and job performance are directly related to one another is
often cited in the media and in some non-academic management literature. A recent meta-
analysis found an average uncorrected correlation between job satisfaction and productivity to be
r = 0.18; the average true correlation, corrected for research artifacts and unreliability, was r =
0.30. Further, the meta-analysis found that the relationship between satisfaction and performance
can be moderated by job complexity, such that for high-complexity jobs the correlation between
satisfaction and performance is higher (ρ = 0.52) than for jobs of low to moderate complexity (ρ
= 0.29). Job Satisfaction also have high relationship with intention to quit. It is found in many
research that Job Satisfaction can lead to Intention to Stay / Quit in an organization (Kim et al.,
1996). Recent research has also shown that Intention to Quit can have effect like poor
performance orientation, organizational deviance, and poor organizational citizenship
behaviours. In short, the relationship of satisfaction to productivity is not necessarily
straightforward and can be influenced by a number of other work-related constructs, and the
notion that "a happy worker is a productive worker" should not be the foundation of
organizational decision-making.
With regard to job performance, employee personality may be more important than job
satisfaction The link between job satisfaction and performance is thought to be a spurious
relationship; instead, both satisfaction and performance are the result of personality.
The major factors influencing job satisfaction are presented below:
SUPERVISION
To a worker, Supervision is equally a strong contributor to the job
satisfaction as well as to the job dissatisfaction. The feelings of workers
towards his supervisors are usually similar to his feeling towards the
company. The role of supervisor is a focal point for attitude formation.
Bad supervision results in absenteeism and labor turnover. Good
supervision results in higher production and good industrial relations.
CO-WORKERS
Various studies had traced this factor as a factor of intermediate
importance. One’s associates with others had frequently been motivated
as a factor in job satisfaction. Certainly, this seems reasonable because
people like to be near their friends. The workers derive satisfaction when
the co-workers are helpful, friendly and co-operative.

50
PAY
Studies also show that most of the workers felt satisfied when they are
paid more adequately to the work performed by them. The relative
important of pay would probably changing factor in job satisfaction or
dissatisfaction.
AGE
Age has also been found to have a direct relationship to level job of
satisfaction of employees. In some groups job satisfaction is higher with
increasing age, in other groups job satisfaction is lower and in other
there is no difference at all.
MARITAL STATUS
Marital status has an important role in deciding the job satisfaction.
Most of the studies have revealed that the married person finds
dissatisfaction in his job than his unmarried counterpart. The reasons
stated to be are that wages were insufficient due to increased cost of
living, educations to children etc.
EDUCATION
Studies conducted among various workers revealed that most of workers
who had not completed their school education showed higher satisfaction
level. However, educated workers felt less satisfied in their job.
WORKING CONDITION
The result of various studies shows that working condition is an
important factor. Good working atmosphere and pleasant surroundings
help increasing the production of industry. Working conditions are more important to women
workers than men workers.

51
Durgapur Steel Plants (motivational schemes):
PersonnelFunctions-an overview
Organizations are made of people. Their effectiveness depends on the performance of the
people constituting them. There was a time when employees used to be considered as
liability. Over the time the organizations have realized the importance of its human resources
and they are no more being considered as liability but a valuable and strategically important
asset. The employees are partner in business. The transformation in the attitude and the
outlook towards people in organization has led to development of Personnel Management,
which is now-a-days also known as Human Resource Management.
The primary purpose of Personnel Management is to contribute to the profitability and
survival of an organization by effective Management of its total human resources. In doing
so, however, it seeks to strike a balance of the macro (social justice), micro (organizational
effectiveness), functional (personnel policies and procedures) and personal (individual goals,
quality of work life) objectives.
All Managers have direct responsibility for the human resources in an organization and are
responsible for activities and decisions concerning people. In this sense all managers are
personnel managers. Still most organizations have a separate personnel department to
coordinate all personnel activities, which mainly consist of the following.
a. Human Resource Planning and Recruitment : Relates to assessment of manpower
requirement and to meet that requirement through recruitment from internal or
external sources
b. Training & Development : Related to assessment of requirement of training,
imparting training through training modules and assessment of its impact
c. Promotions and transfers: Related to career growth of the employees and meeting
organizations requirement of trained and experienced manpower.
d. Performance Management: Relates to assessment of performance of employees
against set goals and linking it with reward and growth.
e. Wage and Salary administration: Management of employees’ compensation, incentive
schemes, bonus allowances etc.
f. Employee Welfare : Meeting the social requirement of the employees
g. Employees’ relations : Relates to maintaining conduce environment for smooth
conduct of work.
h. Discipline management : Relates to ensuring discipline at work place and taking
disciplinary action.
Training & Development
In order to secure a sustainable competitive advantage; it is essential to develop right
competence and commitment of people in the organization and reinforce it on a continual
basis. The value created by organization through its products and services depends, not only
on its assets and technology, but more importantly on the competence and commitment of its
people. To enhance the competence and commitment of people, there is a need to focus on
knowledge, skill and attitude of people. In today’s competitive scenario, these have now
become the preconditions for corporate survival and growth. Competing through people’s
competence requires continual updating of knowledge and upgrading of skill of employees in
tune with the changes in the internal and external environment.
Training facilitates the development of employee knowledge and skills which in turn help in

52
attainment of organization’s goals and objectives. The gap between the actual and desired
competence of the individuals and teams can be bridged by systematic HRD inputs to achieve
effective results.
Accordingly, SAIL has formulated training and development initiatives for its employees.
The salient features of these initiatives are:
• Development of base-line standard of competency for different positions, assessment of
competency gap at regular interval and linking this with an exhaustive system of Training
Need Assessment (TNA).
• Meeting Organizational, Occupational and Individual Training Needs identified every
year through TNA system.
• Developing leadership skills to create proactive and dynamic organization.
• Creating climate of continuous learning through knowledge management.
• Providing re-training for redeployment and multi-skill training to support manpower
rationalization.
• Evaluating effectiveness of training to continually enhance the quality of training in
SAIL.
Systematic Approach to Training
To achieve the above objectives, SAIL follows Systematic Approach to Training, which
includes:
o Identifying areas, which need training interventions.
o Assessing and defining specific needs.
o Designing appropriate training solutions.
o Implementing these solutions.
o Feedback and evaluation of training effectiveness.
o Analysis and follow-up.
Assessment ofTraining Needs
Training Need Assessment (TNA) involves identification of training needs at the following
three levels:
o Individual training needs
o Occupational training needs
10
o Organizational training needs
Designing Training Programs
All training programs are designed taking into account the specific needs of employees. The
design output contains the Program Aim and Objectives, Program Contents, Target
Population, Duration of the Program, Training Methodology including specific mention of
case Studies, Exercises, Role Plays etc., Program Structure, Faculty Panel, Audio-visual Aids
required for the program and Session-wise Objectives and contents. Once the program is
established, Trainers’ Manual is prepared to ensure standardized quality of inputs during the
training program.
Organizing Training Program
There is an elaborate system for conducting training programs in SAIL. The system involves
doing a number of activities to ensure success of a training program. This includes structured
methods for identification of participants, communication to the participants about the aims
and objectives of the program, selection of appropriate faculty, and ensuring requisite
Administrative and Hospitality Services for smooth conduct of the program.
The system also involves various checkpoints so that the programs run smoothly. Similarly,
systems are in place to ensure that the program feedback is analyzed and synthesized for

53
necessary preventive and corrective actions.
Training Evaluation System
The technical programs are evaluated to assess their effectiveness. The gap between the
desired effect and the actual effect is analyzed to develop new programs or to modify the
existing programs.
Competence Development
Skill Gap Analysis
Skill Gap Analysis is required to be conducted on regular basis to ascertain Critical Skills for
decriticalisation through systematic training. The strategy so evolved for decriticalisation of
critical skills addresses the following questions.
a) What are the critical skills where skill gaps exist now or likely to occur in the near future?
b) What are the departments/areas where the skill gaps exist?
c) What are the actions to be taken to close the gaps?
Subsequently, the Most Critical and Urgent Skill Gaps, which needed immediate attention,
are identified and actions are taken to de-criticalize them.
Competency Mapping
Any underlying characteristic required for performing a given task, activity, or role
successfully can be considered as competency. Competency may take the following forms:
Knowledge, Attitude and Skill.
Competencies can be grouped under four areas which are: Technical, Managerial, Human and
Conceptual knowledge, attitudes and skills.
11
The methodology adopted for Competency Mapping in SAIL involves the following process:
o Identification of competent manpower in different areas/functions of the Department.
o Identification of knowledge and skill level in respect of other employees keeping in view
the job requirement/competency.
o Identification of important training needs emanating from competency mapping
o Systematic training efforts to build competencies and bridge the skill gap.
Such a systematic approach to Competency Mapping facilitates not only assessment of
competency levels of existing manpower, but also identifies required competencies and links
these with training initiatives. At micro level, it will also help in:
o identifying individual training needs to be addressed in a department/function
o bridging the competency gaps through structured training programmes
o ensuring timely availability of competent workforce
o minimising surprise element in case of change in technology
The above steps help in ensuring the availability of competent manpower to department
concerned.
Skill Development
For skill development at various levels SAIL has a multi-pronged approach for enhancing the
skills of the workforce. The different approaches for skill development are
Technical skill Development
• Technical training relates to update and enhancement of technical skill of the employees
for better operation or maintenance of the equipments. Different forms of technical
training are :
o Unit training: Training on specific equipment/Operational units by the experts of
that unit.
o Basic Engineering Skills: Training on Basic technical trades that form the

54
foundation of competent working
o Lab based training: Training aided by simulations in specialized areas like PLC,
Hydraulics and Pneumatics in special training labs
o Development of advanced skills by sending people for specialized training centers
o Enhancing the variety of skills of the workforce through multi-skill training
o Specialized training includes foreign training/ training at other installed sites or
training on the equipment after commissioning.
Managerial Skill Development
• Management Development Programs are conducted at Plant HRD Centers and at
Management training Institute (MTI) Ranchi.
• Management Development Programs in reputed Management Institutes like IIMs, XLRI,
MDI
• Specialised Management development Programs for senior executives which includes
training at reputed management institutes as well as visits to best in class companies in
the world.
Multi-skill and Redeployment Training
In view of the rightsizing of the manpower and improvement of productivity, Multi-skill
training was undertaken as thrust areas wherein areas were identified where there was skill
dilution and employees were given training in at least one additional skill. In order to
optimize on utilization of manpower and improve productivity, it is essential to train
employees in various allied skills. In SAIL, multi-skilling is being practiced in different units
and plants to a great extent. This has not only facilitated flexibility in deployment but also
help in better utilization of human recourse by enabling individuals to carry out the job in
totality. This has also helped to a large extent to ensure availability of trained manpower for
various important and critical jobs.
Induction
Induction refers to the initial training provided to the employees on their joining an
organization. The objectives of induction training are:
i. To introduce the employees to the organization and familiarize him with it.
ii. To acquaint a new employee with the place of work.
iii. To inform about what is expected from him/her on the job.
iv. To be aware of the rules and regulations of the company.
14
i. To help a new entrant assimilate the organizational culture and speed up the
adjustment process
ii. To assist the new employee develop his skill and competence and to contribute his
best
The treatment a new employee receives during the early days in the new job and the first
impressions made on his/her mind is likely to be a lasting impression. Careful introduction to
his/her job will make adjustment to the job more rapid, mistakes fewer and attitude more cooperative.
Therefore, induction training has to be carefully planned out. In SAIL, Induction
Training Schemes have been formulated for various categories of trainees like, Management
Trainees, Junior Manager (Finance) and for Non-executives; each plant has made their own
training schemes for the new entrants.
Career Growth Policies
After working a certain job for some time the employees develop expertise to do so. The job
becomes a routine and interest of employee in doing the same starts waning. It is therefore

55
essential to provide avenue to the employees so that they continue to acquire new knowledge,
skill and experience. With increase in experience, employees should be allowed to take
higher responsibilities which leads to recognition and higher motivation. With wide
experience and acquisition of managerial skills an employee becomes capable of shouldering
higher responsibilities. An organization requires such persons to see it through the various
challenges and to take it forward. Thus a good career growth system works for the benefit of
both the employees and the organization.
Objectives of a career growth system are as under :
(i) To integrate the growth opportunities of employees with the fulfillment of the
objectives of the Company.
(ii) To ensure uniformity and consistency, to the extent possible, in promotion of
employees.
(iii) To motivate employees for better performance.
SAIL has following promotion policies for its employees
� Executive promotion policy
� Non-executives promotion policy
� Non executive to executive promotion policy
Executive Promotion Policy
Promotions within executive posts are effected only once in a year, i.e. on 30th June with the
exception for promotion from E1 to E2 which takes place twice in a year i.e. on 30th June
and 31st December.
Salient features of the policy are
i. It introduces the concept of clusters for the purpose of promotion and career planning.
ii. For the purpose of promotion Average Credit Points (ACP) is the main basis for
determining eligibility for promotion. The ACP is calculated based on the appraisal
scores of the past years in the prescribed manner. Other factors, which are reckoned
for promotion, are qualification and length of service in the grade.
iii. Promotion between clusters is based on fulfilling the eligibility criteria and
assessment by a Selection Committee or Departmental Promotion Committee.
Non-Executive Promotion Policy (NEPP):
Promotions within non-executive positions are effected by each Plants/Units at its respective
level. Promotions within non-executive positions are based on cluster system. Though the
system of grant of promotion some what differ from plant to plant, the promotions are mainly
of following two types :
� Within cluster promotion
� Between cluster promotion
While within cluster promotions are time bound, the between cluster promotions depend on
availability of vacancies and the suitability of the candidates for the higher post.
Non executive to Executive promotion Policy (JO promotion Policy)
A new policy for promotion from non-executive to executive cadre has been introduced in
SAIL from the year 2008. Main features of the policy are as under :-
• The eligibility in terms of number of years of service in S8 and above grade has been
reduced from earlier 7, 9, 11 years to 1, 4 and 9 years in the respective categories.
This has been done to provide opportunity to young and deserving candidates for
faster career growth.
• For fair and objective selection process written test has been introduced, which has a
weightage of 50%. In order to recognize the value of experience and the past
performance on the job, the experience and performance ratings have been assigned a

56
weightage of 15% each. Rest 20% weightage is carried by Interview.
• Employees have been provided opportunity to appear for selection for technical or
non-technical stream, provided they meat the eligibility criteria and compete in that
stream.
Promotion through Internal Circulars
The promotion policies explained above are structures systems wherein promotion orders are
The promotion policies explained above are structures systems wherein promotion orders are
issued as per the defines rules at defined interval and all such employees who fulfill the
predefined eligibility criteria are considered for promotion. However, some times the
organizational requirements cannot be fulfilled through the above set procedures. To meet
such requirement selection is done through issue of internal circulars.
The internal circular is a process, which comes in between the promotion and recruitment.
Like recruitment, in internal circular posts are advertised through internal circulation. The
circular contains the job specification and other conditions of selection. Willing and eligible
employees are required to apply for selection and the short listed employees are required to
go through a selection process, including interview by a selection committee.
Wages & Salary Administration
Statutory Provisions
The Payment of Wages Act, 1936
Objective
The Payment of Wages Act, 1936 ensures that the wages payable to employees covered by
the Act are disbursed by the employers within the prescribed time limit and that there is no
deductions made by the employers other than those authorized by law
Definition of Wages
� Wages includes all remuneration in terms of money and includes payment
under award or settlement and payment in respect of OT and holidays.
� Does not include value of accommodation, light, water, medical facilities, TA,
LTC/LLTC and contribution to PF or pension.
Main provisions
� Wage period to be fixed and not to exceed one month.
� Wages to be paid before the expiry of 7th day after the wage period if less than
1000 employees and 10 days if more than 1000 employees.
� If employment terminated wage earned by him should be paid before the
expiry of 2nd working day from the date of termination.
� Payment of wages to be made on working day.
� Payment to be made in cash unless authorised by employee to be paid either
by cheque or crediting into his bank account.
� Deductions allowed defined under the Act. Deductions can not exceed 50% of
the wages, 75% incase of payment to co-operative societies.

57
National Joint Committee for the Steel Industry (NJCS)
SAIL has a rich culture of involving employees at various levels and in various forms.
Participation through Collective Bargaining – The issue related to finalization of wages and
allowances is decide at the Corporate level by a bi-partite forum called National Joint
Committee for Steel Industries (NJCS). The NJCS has representatives of all the major
national trade unions operating in the steel industry and representatives of the management of
SAIL. The Committee decides its own terms of reference without interference from any
external agency. Other than employee related issues, issues like production-productivity,
improvement in quality reduction of cost and wastage etc. are also under the purview of this
Committee. Decisions in NJCS are taken through the process of collective bargaining. Till
date seven Wage Agreements finalized by NJCS have been successfully implemented in Steel
Industry.
Dearness Allowance :
Dearness Allowance is paid to employees to compensate for the rising cost of living. The DA
rates are determined on the basis of the changes in the All India Consumer Price Index
number for Industrial workers (AICPI). The AICPI is computed by the Labour Bureau, Simla
on the price changes of list of consumer items, each of which is assigned different weightages
DA is revised every quarter on 1st April, 1st July, 1st October and 1st January every year based
on the changes in average AICPI for the quarters December-February, March-May, June-
August and September- November respectively. In SAIL for calculation of DA, the basefor AICPI is
taken as 1960=100. The base point of AICPI is revised on Salary/Wage
Revision. As per 1997 Salary/Wage Revision, DA is calculated at 1708 AICPI as on
1.1.1997. As the Labour Bureau announces the AICPI under 2001 series, it is first converted into
1982 series and then into 1960 series.

58
INCENTIVE /REWARD SCHEMES
Incentive Schemes are being operated in SAIL for more than 30 years. The main objective of
Incentive /Reward Schemes is to motivate the employees to enhance production /
productivity at a greater pace to achieve overall goals of organization. The initial schemes
were mainly production oriented and the over riding concern was to achieve the production of
steel plants to its rated capacity. Over a period of time the basis of the incentive schemes
shifted from production to productivity and techno-economic parameters.
Types of Incentive / Reward Schemes
SAIL has incentive / reward schemes which are meant for large groups and not for individual
employees. Broadly incentive / reward schemes can be classified as under:-
� Incentive Schemes: These are linked to achievement of capacity production of the
department. The performance against the incentive scheme is measured on an incentive
curve, whose cut off point and ceilings are decided considering the actual performance
achieved. The cut off point and ceilings may vary from department to department and
from plant to plant.
� Reward schemes: These are based on achievement of Annual Planned Production
(targeted) and techno-economic parameters. Reward schemes are mostly based on
zonal / plant targets and are generally hit or miss in nature. Unlike incentive schemes
which are negotiated the reward schemes are implemented unilaterally.
� Managerial Reward Scheme (MRS): MRS is uniformly applicable for Corporate
Cadre Executives of E7 and above grades in SAIL. It has two components; the first
component is equal to 40% of the total incentive / reward earning of executive of E5/E6
level and the second component is based on 4-5 factors like total energy consumption,
product mix fulfillment etc. of respective plant.
Vide Order dated 28th February, 2001, the MRS has also made applicable to Chairman /
MDs /Directors of SAIL w.e.f. 01.04.2000.
� Annual Performance Linked Reward Scheme (APLRS): This Scheme has been
designed and introduced from 2004-05, after detailed discussion and negotiation with
Central Trade Unions representatives and Management Representatives. This Scheme
is based on APP fulfillment of Saleable Steel Production and fulfillment of Gross
Margin per tonne of Saleable Steel targets.
Apart from above schemes Daily Production Incentive Scheme (DPIS) has been introduced in
the year 2008-09 at BSP, DSP, RSP & BSL to motivate employees to achieve daily
production targets.
The incentive and reward schemes are for non-executive employees and executives upto E6
grade. Generally, the schemes are discussed, at length, with employees before any major
changes are introduced. Incentives / rewards are paid on monthly basis.
Major Component of Incentive / Reward Schemes
The main component of incentive/ reward schemes are; Production, Cost, Quality and
Profitability.

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