ASSIGNMENT -3 OF HRM

SUBMITTED TO BY MANEET MAAM SUBMITTED SUMIT SHUKLA ROLL NO. B47 REG. NO. 11007684

HR PRACTICES OF TATA AND ESSAR STEEL Introduction of Tata steel:The Tata Steel Group has always believed that mutual benefit of countries, corporations and communities is the most effective route to growth. Tata Steel has not limited its operations and businesses within India but has built an imposing presence around the globe as well. With the acquisition of Corus (now Tata Steel Europe) in 2007 leading to commencement of Tata Steel's European operations, the Company today is the tenth largest steel producer in the world with an employee strength of above 81,000 across five continents. During the financial year 2009-10, the Group recorded deliveries of 24 million tonnes against 28 million tonnes in the previous year, the decline being a reflection of the global economic slowdown mainly in the UK and European operations. The Group recorded a turnover of Rs.102, 393

Crores in 2009 - 2010. The Company has always had significant impact on the economic development in India and now seeks to strengthen its position of pre-eminence in international domain by continuing to lead by example of responsibility and trust. Tata Steels overseas ventures and investments in global companies have helped the Company create a manufacturing and marketing network in Europe, South East Asia and the Pacific-rim countries. The Groups South East Asian operations comprise Tata Steel Thailand, in which it has 67.1% equity and Nat Steel Holdings, which is one of the largest steel producers in the Asia Pacific with presence across seven countries.

HR practices at Tata Steel

Manpower planning
Manpower planning enables HR department to project its short to long term needs on the basis of its departmental plans so that it can adjust its manpower requirements to meet changing priorities. The more changing the environment the department is in, the more the department needs manpower planning to show: the number of recruits required in a specified timeframe and the availability of talent early indications of potential recruitment or retention difficulties surpluses or deficiencies in certain ranks or grades availability of suitable qualified and experienced successors

Performance appraisal assesses an individual's performance against

previously agreed work objectives. Performance appraisal is normally carried out once a year. They assess key result areas of their employees, workers and supervisors. Since it is a joint responsibility of the individual and the supervisor; every individual in TISCO are co prime to each other. It also enables management to compare performance and potential between employees and subordinates of the same rank. Rating of employees is done by their performances. It is given as per ranks very good, average, and average to medium and below average. On the basis of these rankings highest reward of the year is given to best suitable worker. The better

performing employee gets the majority of available merit pay increases, bonuses, and promotions.

Training and Development

The Technical Education Advisory Committee guides employee development and training in line with strategic goals of the company and long-term objectives. The in-house training centres impart majority of the training programmes. (Technical Institute & Management Development Centre). Employees are also deputed to other organizations and training centres in the country such as ITI and abroad for specialized training. Officers are trained into business managers through special general management programmes such as at CEDEP, France. They are trained to know the changes in environment, market, and in steel prices. They also get training of problem solving techniques, conflict management, etc

Compensation Management
It depends on financial capabilities. Yearly increments are given. Compensation for inflation is common for all employees. (flat rates) It is decided by union and management where various demands are negotiated. It is paid as per other industries. Individual performance bonus is also given.

Development of Employees:
At Tata Steel, there is a continuous effort of staying in touch with employees to ensure that there is the right culture to engage them in consistent performance improvement. There are well-established and effective arrangements at each business location for transparent communication and consultation with Works Councils and Trade Union representatives. Further, the Company has always registered steady quality improvement and productivity enhancement through dedicated efforts of the Companys Performance Improvement teams, focused on technical best practice transfer and the value of knowledge networks.

Towards the well-being of employees Tata Steel has put into practice many initiatives, events and programmes that have helped to create not only an enduring loyalty amongst employees but also enabled them to have a more fulfilled life.

Special benefits
Medical facilities: Free medical facilities for employees and their family, which continues even after retirement. Housing facilities: Subsidised electricity, water and housing facilities to all employees. Higher studies: Monetary incentives to employees acquiring higher qualifications in a related field along with study leave, scholarships etc. when necessary. Holiday Homes: Tata Steel has five holiday homes for benefit of employees during vacation. Tata Steel Officers Beach Club: All officers of Tata Steel are eligible to be members of the Beach Club that offers holidays in elite hospitality chains. Family Benefit Scheme: In the tragic case of a fatality in the Works, a monthly pension equal to the amount of the last drawn salary of the deceased is given to the legal heir until the time the deceased would have attained the age of 60.

Developing People
Valuing its people as a great asset, Tata Steel is committed to their development, both in order to benefit the individual and to benefit the Company through increased knowledge and skills. In order to leverage maximum potential of human resource to achieve business objectives the Company recognises that enrichment of people will help retain a motivated workforce in a competitive environment.

Skill Development: Non Officers

Skills training is a process that begins at the time of an employee joining the company and continues throughout his or her career. Employees work in

clusters of multi-skilled workers and move across and within clusters on improving their skills levels. The Technical Training Institute imparts vocational and basic skills training; the departments impart on-the-job training. In order to promote self-directed learning, the Company has introduced elearning whereby employees can access electronic courses from their departmental e-Learning centres.

Skill Development: Officers

Tata Steel Management Development Centre conducts a number of managerial and functional competency based programmes for officers and supervisors. The objectives of these programmes are: To build individual capability by enhancing managerial and functional competencies which are critical to operations, service and support functions. To build a leadership pipeline in the organisation to prepare the people to meet the challenges of growth, globalisation and change.

Equal Opportunity Practices

Tata Steel is an equal opportunity employer and does not discriminate on the basis of race, caste, religion, color, ancestry, marital status, sex, age or nationality. The Companys Affirmative Action Policy promotes equal access to its employment and opportunities and all decisions are merit based. Respect for equal opportunities as set out in the Tata Code of Conduct is followed. The HR Policy and Affirmative Action Policy are monitored by the Ethics Counsellor and supported by an effective grievance redressal mechanism. Tata Steel encourages female employees to advance their career with initiatives dedicated towards personal development and professional advancement. The Women Empowerment Cell examines and addresses the issues and concerns of female employees and ensures that they do not miss out on any growth opportunity

Freedom of association and collective bargaining

Tata Steel respects the employees right to exercise freedom of association and collective bargaining and provides appropriate support for this. There is an established system of joint working and collective bargaining, which ensures that every employee is able to exercise this right without any fear.

Pioneering the concept in India, a system of Joint Consultation has been in place in Tata Steel for more than 50 years.

INTRODUCTION OF ESSAR STEEL :Essar Steel is one of India's largest exporters of flat products, exporting to the highly demanding US and European markets, and to the growing markets of South East Asia and the Middle East. A number of major client companies have approved our steel for their use, including Caterpillar, Hyundai, Swaraj Mazda, the Konkan Railway, and Maruti Suzuki. Essar Steel has acquired extensive quality accreditations. Our lean team gives us one of the highest productivities and lowest manpower costs among steel plants internationally.

Human Resource Polices of Essar Steel

At the Essar Group, they believe that excellent individuals build excellent companies. And by transforming each employee into a highly motivated, satisfied and productive team member, they will create an outstanding organization. They also understand that each individual has unique talents and expectations from the organization. Based on those principles, human resources development at Essar is customised, flexible and well planned. Every Essar employee is meticulously selected and given the freedom to be innovative, within a work culture that is non-bureaucratic and result-

oriented. They work with employees to develop personalized and flexible individual plans for career growth, retention and compensation within a carefully structured work framework. Through extensive career mapping, They offer a choice of career paths that could include job rotations across functions and Group Companies. Essar's wide range of businesses and exciting pace of growth presents a range of opportunities and exposure that only a few others can match. The Group has a very serious commitment to continuous training and development.Their Essar Learning Centre provides year-round training. Thus, a career with Essar will offer you a unique opportunity to unlock your own potential and realize excellence.

Employees Motivation
The underlying objectives of Essars activities is to motivate employees to participate in and contribute to the activities initiated by the Community Relations Centre, to create self-help groups for village women, to further overall development of children and women, and to spread awareness about AIDS and de-addiction.

Essars key focus areas

Essar has outlined seven focus areas where employee involvement can make a difference to the lives of the community: Education Self-employment Training Infrastructure development Medical Health & hygiene Recreation and welfare

Recruitments
Essar welcome talented college graduates. They are a preferred employer at India's top engineering and business schools because they offer competitive compensation, diverse opportunities in terms of business and roles, fast

growth and quick assumption of large responsibilities. For the same reasons, they are able to attract the best and the brightest talent at all levels.

Campus Programs
The Essar group has a strong emphasis on hiring at the entry level, to create a pool of talented employees who are developed and groomed to grow with the group. At the entry level, the group hires mainly through two types of programmes: Management trainee programmes Graduate trainee programmes Business leadership programmes

Management trainee programmes

Through the management trainee programmes, Essar hires post graduate management students from top ranking business schools throughout India. Trainees are initially hired as a group resource for a range of functions such as marketing, finance, human resources and operations. Essar makes selections between December and February, through a rigorous selection process. Selected candidates then go through a comprehensive one-month induction programme, which includes classroom sessions, an introduction to all the group companies, plants and corporate functions, and a six-day executive leadership camp at the Essar Learning Centre. Soon after the induction, in an interview with corporate human resources each trainee has the opportunity to discuss mutual expectations, a career map and the group company and assignment that he or she will be posted to. Trainees are confirmed after completing the one-year management trainee programmes. Depending on their capabilities, management trainees can usually look forward to a faster career track, an expanded role and eventually, a leadership position within the organization.

Graduate trainee programmes

The Essar group prides itself on using global-scale, world-class technology in all its companies. To maintain the technical edge, the group hires engineer trainees annually between August and January. Essar hires graduate engineer trainees (GETs) from the IITs and the top-ranking regional engineering colleges across the country and diploma engineer trainees (DETs) from the best polytechnics in Gujarat, Andhra Pradesh and Tamil

Nadu and other regions of the countries to source the best talent available. These trainees are hired for specific group companies. After they are selected, they go through an induction programmes at the company, which includes classroom sessions and plant visits. Soon afterwards, each trainee has an interview with the Essar Learning Centre head, to discuss his or her immediate placement and future growth prospects. Trainees are confirmed after a one-year training programmes for GETs and a two-year programmes for DETs. Depending on their capabilities, both GETs and DETs can look forward to increasing their technological expertise, a growing technical specialization and key senior operational and technical roles within the company.

Building careers
Essar has a high emphasis on performance, and link both career growth and rewards directly to merit and achievement. They customize career paths and retention plans according to the unique needs of an individual. Right from the entry level, we draw career maps for each employee, outlining possible alternate career paths, which could include planned job rotations between functions or even group companies.

Solid performances, solid rewards

Employees with a proven track record of high performance and potential are identified annually through a fast-track programmed evaluated by a top management panel. These achievers are rewarded with top-of-the-market compensation, retention bonuses and relevant training inputs.

Training and Development

Essar has a very serious commitment to continuous training and development. Our world-class Essar Learning Centre provides year-round training. We provide numerous resources for self-assessment and development. Thus, a career with the Essar group offers a unique opportunity to unlock your own potential and realize excellence. Continuous opportunities for development and growth - thats the firm commitment that Essar makes to every single employee. The Essar group is one of Indias largest spenders on continuous training, investing about Rs.

1.4 crore (US$ 3 m) annually. Essar Learning Centre (ELC) at Hazira, Gujarat has emerged as one of Indias foremost training facilities, training 2,000-odd people a year through 7,000 man days of training. Being a dedicated facility, the ELC allows us to design tailor-made and flexible programmes, so that training at Essar is always relevant and customized both to business needs and the needs of the individual. Our programmes cover a wide range of technical, functional and behavioral training, from materials management to e-commerce procurement to transformational leadership and communication and negotiation skills. Our faculty includes the best of experts and practicing managers. Since we believe in imparting managerial & behavioral training, we also include a number of non-business modules like corporate etiquette or parenting skills. The ELC also has extensive resources for self-development such as a business library of books and audiovisual material. Thus, we support and encourage all Essar employees to develop themselves to the fullest.

Executives Leadership Camp (ELC)

The Executive Leadership Camp (ELC) is a six-day residential programmes held at the Essar Learning Centre at Hazira, Gujarat. This comprehensive programmes transforms junior management employees into effective business executives.

Features of the camp

Participants in this holistic programme begin their day with yoga. Throughout the camp, they learn more about Essar's key values and culture through modules like quality & customer orientation, Essar leadership values, organizational &behavioral etiquette, a value meet and a plant visit. They learn how to become part of the organization team through modules like self-awareness and interpersonal relationship, conflict management, group dynamics and team building, leadership & leadership styles & followership. The programme also builds their personal management skills by teaching useful skills like assertive skills, time management and presentation skills. A fun outbound module allows them to reinforce and use skills like teamwork or strategic thinking through specially designed outdoor games and activities such as a treasure hunt or rappelling.

Management Development Programme(MDP)

The Management Development Programme (MDP) is a six-day residential programmes that aims to prepare middle management executives for newer roles in a changing environment. The MDP helps make middle managers active and effective participants in organizational processes like planning, implementation and decision-making.

Features of the Camp

After beginning their day with yoga, participants learn how to contribute to organizational growth and excellence through modules like Essar leadership values, quality (kaizen), customer satisfaction, striving for excellence, cost reduction and continuous improvement. They learn how to be effective managers with modules like the role of a manger in the present scenario, performance management, goal setting, team building, people development, conflict management and counseling skills. The programmes enhances their personal management skills by teaching segments like self-awareness, leadership, assertive skills, motivation, integrity/personal values, negotiation skills and corporate etiquette. A fun two-day outbound module allows them to reinforce and use skills like teamwork or strategic thinking through specially designed outdoor games and activities such as a treasure hunt or rappelling.

COMPARISION OF THEIR HR POLICIES:In essar steel they are focusing on employee motivation policy and Tata steel they are focusing on performance appraisal. Employee develpoement policy of tata steel is far better than essar steel.tata steel they are mainly concerned with employee development.Training and develope ment programme of essar steel are effective than tata steel. essar steel are more serious about training and development program. In Tata steel they are more focusing on equal opportunity process and essar steel they are not. Tata steel provides some special facilities to their employees such as housing facilities , tata steel officers beach club but essar steel doesnt provide these facilities .On the other hand essar steel also have some special facilities which tata steel doesnt provide.

RECOMMENDATION:As shown above the human resource policies of both the companys analysis I found that as a public ltd company Tata Steel gives more emphasizeon betterment and welfare of their employees as well as their surroundingsas a public ltd. Co. they are more concerned to welfare of the people instead of earning profit. As above shown that the Co. is giving benefits to present employees as well as retired employees so this kind of facilities attract more people to join the organization and also the company helps in social areas also the company iscapable enough to provide in house training by doing such type of activitiesa company shows a self reliance to develop skills of their employees. Comparatively Essar steel is a private ownership organization and also concerned with more than one type of industry but this will not affect their decision making on their employees because an employee is a valuable asset to the company so as this group thought. Like other companies they have their own facilities to train people also this kind of organizations provide extensive atmosphere to their employees according to the different environment because this organization has corporate offices in other countries so this kind of atmosphere help an employee to develop on both the fronts.

REFERENCES:http://www.citeops.com/1749-hr-practices-tata-steel.html http://articles.economictimes.indiatimes.com/2011-0318/news/29141867_1_hr-coil-prices-coking-coal-steel-prices http://www.essar.com/section_level1.aspx?cont_id=eLiVfqUiZks= http://www.tatasteel.com/corporate/company-profile.asp