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Report on Summer Training

HUMAN RESOURCES PARTICES AT TATA STEEL


KALINGA NAGAR

SUMMER INTERNSHIP REPORT

Submitted by
SANTOSH NATH
Registration No: 11613001

in partial fulfilment of Summer Internship for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Mittal School of Business

Phagwara, Punjab
July, 2017

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CERTIFICATE

This is to certify that the training entitled H.R PARTICES IN TATA


STEEL is a sincere work carried out by Santosh Nath, department of
M.B.A, LOVELY PROFESSIONAL UNIVERSITY, PUNJAB is a
bonafied research work carried out by hi under my guidance and
supervision. This training report has not been submitted or published
anywhere before.

RAVISH VERMA(HOD)

LOVELY PROFESSIONAL UNIVERSITY

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DECLARATION

I hereby declare that the project work entitled H.R PARTICES IN TATA STEEL
at TATA STEEL LTD. KALINGANAGAR submitted by me is the outcome of our
interaction with the HR partices at TATA STEEL. This is the original piece of work
submitted as a part of partial fulfilment of my degree and has never been submitted to
any other institution or university and has not been published before.

I hereby that, this report will fulfil the need of the understudy training programme, I
had undergone.

Signature of the candidate


Santosh Nath
Reg no-11613001
Lovely professional university
Punjab, phaghwara.

DATE:
PLACE:

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Acknowledgement

I have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals. I
would like to extend our sincere thanks to all of them.

I am highly indebted to Litamy Haibru

For the guidance and constant supervision as well as for providing


necessary information regarding the project and for their support in
completing the project.

I would like to express our special gratitude and thanks to all the
staffs of HR dept. TATA STEEL for providing s vital information as
and when required.

Santosh Nath

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PREFACE

The summer training project is a part of the curriculum of the two year
P.G. In LOVELY PROFESSIONAL UNIVERSIY. This report is the
product of summer training in the field of HR Partices at TATA STEEL
which was conducted for 45 days.

At TATA STEEL, Ive been able to get comprehensive and in depth


knowledge about the HR partices.

I Am fortunate to get an opportunity to undergo training at TATA STEEL,


A prestigious public sector undertaking.

In My report, Ive started with the introduction about the understudy report.
Then I have, mentioned the brief history of TATA STEEL. Next Ive given
daily presentation during my training period and at the end I have
submitted conclusion and suggestion where I have humbly pointed out the
function in the activates of the organisation

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LEADERSHIP THAT INSPIRES

For over 100 years, the Tata group has been led by visionaries
who have stayed true to the vision of the founder, Jamsetji Tata. A
vision that placed the greater good of society at par with business
growth. A vision that put into practice pioneering social initiatives
that changed the way responsible business was run.

And a vision that brought into the group a strong social


conscience.

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We do not claim to be more unselfish, more generous or more


philanthropic than other people. But we think we started on sound and
straightforward business principles, considering the interests of the
shareholders our own, and the health and welfare of the employees, the
sure foundation of our success.

Jamsetji Tata
Founder of the Tata group
Chairman (1868 1904)

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Table of Content

TOPIC PAGE NO.


CHAPTER-01: THE PROJECT 17
EXECUTIVE SUMMERY
INTRODUCTION
CHAPTER -02: THE ORGANISATION
BRIEF HISTORY 23
COMPANY PROFILE 23
PRODUCT/SERVICES 25
ACTIVE VOLUNTEERING 30
INDUSTRY OVIERVIEW 37
KALINGA NAGAR PROJECT
CHAPTER- 03
INTRODUCTION ABOUT HRM 46
CHAPTER - 04
JOB RESPONSIILITY AND OBSERVATION. 49
CHAPTER- 05 52
TATA CODE OF CONDUCT
CHAPTER- 06 : MAN POWER PLANNING
DEFINATION 65

FACTORS AFFECTING MANPOWER PLANNING 66


68
OBJECTIVE OF MAN POWER PLANNING
69
PRINCIPAL OF MAN POWER PLANNING
CHAPTER- 07 : RECRUITMENT
DEFINATION 72

PURPOSE AND IMPORTANCE 73


74
RECRUITMENT PHILOSOPHY OF TATA STEEL
75
RECRUITMENT GOALS
78
FACTORS AFFECTING RECRUITMENT
79
SOURCES OF RECRUITMENT
80
RECRUITMENT PROCESS OF TATA STEEL

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CHAPTER-8 : SLECTION 82

DEFINATION
SELECTION PROCESS
83
SELECTION CITERIA AT TATA STEEL
87
BARRIERS TO EFFECTIVE SELECTION
91
RECURUITMENT VS SELECTION
92
CHAPTER-9 : ON BOARDING AND INDUCATION PROCESS
FLOW CHART OF INDUCATION FOR NEW EMPLOYEES 94

CHAPTER-10 : TRAINING AND DEVELOPMENT


INTRODUCTION 100

DEFINATION 101
103
IMPORTANCE OF TRAINING TO EMPLOYEES
105
LIMITATION
107
STEPS IN TRAINING PROGRAM
107
TATA STEEL TRAINING FRAMEWORK
109
TRAINING PRACTICES
109
OBJECTIVE OF TRAINING
IMPORTANCE OF TRAINING AT TATA STEEL
CHAPTER-11 111

LEAVE POLICY AT TATA STEEL


CHAPTER-12 117

PROMOTION AND TRANSFER/RELOCATION POLICY AT


TATA STEEL
CHAPTER-13 123

RESIGNATION AND MAJOR MISCONDUCT


CHAPTER-14 128

SCHEME OFFERED BY TATA STEEL


CHAPTER-15 PERFORMANCE APPRISAL
OBJECTIVES OF PERFORMANCE APPRISAL 136

USE OF PERFORMANCE APPRISAL 137

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APPRISAL POLICY FOR NON-EXECUTIVES 138

PLANNING THE APPRISAL 139

COMPONANTS OF PERFORMANCE APPRISAL 140


142
360 DEGREE ASSESSMENT

FINDING OF THE STUDY 148

CHAPTER-16 150

RECOMMENDATION AND CONCLUSION

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Mission

Consistent with the vision and values of the founder jamsetiji Tata, Tata Steel
strives to strength Indias industrial base through the effective utilization of staff
and materials. The means envisaged to achieve this are high technology and
productivity, consistent with modern management practices.

Tata steel recognizes that while honesty and integrity are the essential of a string
and stable enterprise, profitability provides the main spark for economic activity.

Overall, the company seeks to scale the height of excellence in all that it does in
an atmosphere free from fear, and thereby reaffirms its faith in democratic values.

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Vision

We aspire to be the global steel industry benchmark for


Value creation and corporate citizenship

The Tata Steel Groups vision is to be the worlds steel industry benchmark in
Value Creation and Corporate Citizenship through the excellence of its people,
its innovative approach and overall conduct. Underpinning this vision is a
performance culture committed to aspiration targets, safety and social responsibility,
continuous improvement, openness and transparency.
OUR PEOPLE- By fostering teamwork, nurturing talent, enhancing leadership
capability and acting with pace, pride and passion.

OUR OFFER By becoming the supplier of choice, delivering premium products and
services and creating value for our customers.

OUR INNOVATIVE APPROACH By developing leading edge solution un


technology, process and products.

OUR CONDUCT By providing a safe workplace, respecting the environment, caring


for our communities and demonstrating high ethical standards.

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OBJECTIVE OF THE STUDY


To find the relation and effect of Human Resources Management with organization
effectiveness.

1. To understand the recruitment procedure adopted by the Indian companies


2. To understand the HR Practices and policies adopted by Indian companies.
3. To identify the training and development program adopted by the Indian companies
4. To identify compensation salary increment policy adopted by the Indian companies
5. To identify the present performance of an employee being appraised through career
advancement.
6. To identify employee welfare scheme launch by the govt.
7. To identify working hours of the Indian companies.
8. To provide better employee health, safety, welfare facilities as per their standard policies.
9. To understand the quality circle is beneficial for solving the problem.
10. To understand the reason of employee turnover.

SCOPE OF THE STUDY


The scope of the research is very vast; however the total time period available was very limited
for the purpose of the study observation, analysis and conclusion. Second important thing is on
account of ethical and moral obligation of a manager disclosure of all pertained and particular
policies has got limitation because of his positional accountability and responsibility,

Studying organization effectiveness through Human Resources Management of the employee as


specialized subject restrict a training, recruitment and selection, job analysis, performance
appraisal for entering into Human Resources Management of different parameter as well as view
of the company. The finding of the study can be refried to as a reference for entire organizational
policies, parameter and particles.

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STATEMENT OF THE PROBLEM

The topic selected for the study is Partices of Human Resources Management The main theme
of the project is the analysis and interpretation of practices of the employees using Human
Resources as a tool.

It is prepared to know whether the company is preparing well or not; performance of the
company and about its competitiveness by the analysis and interpretation of the Human
Resources Management Process.

A critical study of the effectiveness of Human Resources Management system and suggest ways
for improvement.
The problem lies in identifying relationship, mutual understanding between the management and
the employees.

The Human Resources Management system provides detailed information about person so that the
management can take appropriate steps to improve and achieve the organization goals and help to
maintain the smooth relationship between them.

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FOCUS GROUP
The following Human Resources Management is highlighted in this project.

1. The main focus in this project is given on the recruitment and selection process of the
company. If the company is select the right candidate for the right person then the
company has not to spend the money on the recruitment process, if the company can
select the right candidate, the candidate can easily spend latest 5-7 years with the
organization.
2. Second main focus is given in this project report is scheme offered to employees and to
their families and working environment of the company. The company working
conditions is suitable for all employees or not, performance appraisal, policy etc are taken
into consideration.
3. Whether the employees are satisfied with the health, safety, welfare facility provided by
the company or not.
4. Whether the company increment process and promotion process is liked by the
employees or not.
5. Training policy of the company is good for employee learning or not.

And there are so many other thinks which is not taken in this project due to time shortage and
difficulty in collection of the data.

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CHAPTER-1
THE PROJECT

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Objectives of the Project

General Objective
Leading objective of the report is to analyze the HR Policies and Practices in Tata Steel
Limited.

Specific Objectives
To understand the functions done HR Department, Tata Steel.
To determine how Tata steel maintain recruitment and selection process.
To examine the training and development program practiced in Tata steel.
To highlight the compensation and benefits provided by Tata steel.
To know how Tata steel maintains employee relationship with their employees.
To provide some recommendations to improve the HR practice of the Tata steel.

Methodology
The nature of the report is exploratory and descriptive. The required information is collected from
the following sources:

Primary data
primary data is collected through interview.

Secondary data
Internal Sources
Published documents of Tata Steel, Tata Steels Website, Annual Reports.
External Sources
Books, Articles, Journals, Newspaper, Web browsing.

Questionnaire Design
Questionnaire was prepared with both open and close ended questions. The target population was
Management of Tata Steel & Employees of Tata Steel.

Data Analysis and Reporting


A total 20 sample was selected for the survey. The sampling size was the database of the permanent
employees of Tata Steel Kalinganagar plant. The sampling size of the population was as under:

Human Resource Department


Other Department ( Marketing, operation, Finance)

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Quantitative analysis has been used to collect and analyze the gathered data.

Limitations
After giving utmost effort to prepare the report, there are some limitations of the Study.
Such are as follows-

Limitation of time creates constraints to make an intensive study. The budget is


constrained for the survey.
Non availability of adequate information is one kind of obstacle.
The time is limited for the survey and also for preparing this report.
Some respondents of the survey failed to response properly due to their work pressure during
the survey.

HRM Philosophy & Functions

Tata Engage volunteers give generously of their time and resources as their actions
embody the group philosophy of giving back to society.
Tata Engage is an expression of the group philosophy, which has always sought to give back to
society and the community. This philosophy is an intrinsic part of the group ethos and is effectively
distilled in the actions and decisions of every Tata company. Long before sustainability became a
buzzword in boardrooms around the world, it was an integral value of the Tata culture. For
example, the idea of employee volunteering is not only encouraged, it is written down in Clause 10
of the Tata Code of Conduct, the ethical framework that lies at the heart of the groups way of
functioning. As a result, Tata people take serious pride in the depth and scale of the groups
extensive CSR engagement.

For many employees, Tata Engage has been a natural progression in the scheme of
things. And for first timers, it has been a fantastic opportunity to connect with the community on
deeper levels. Across the world, volunteers contributed in myriad different ways they reached
out to orphanages and old age homes, gave generously to charities and relief funds, spent time in
class rooms and sick rooms, worked to clean up public areas and civic spaces, planted trees and
shrubs for green cover, conducted events and competitions, supported artisans and craftspeople,
spent time with the aged, underprivileged and differently able and, in short, opened out their hearts
to those that needed help (see Many hands make light work).
Having a HR philosophy that is always proactive not reactive.
Being seen as successfully creating a great place to work.

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Functions
HR department of Tata Steel has various functions. Tata Steel provides the highest priority to its
people. The HR department presents HR functions for the people guided by the Management. The
main activities of Tata Steel department fall under following general head. These are appended
below:

Recruitment & Selection


Training & Development
Compensation & Benefits
Employee Relations
H.R. Development
H.R. Services

Executive Summary
This Summary presents a brief outline of the Pre-feasibility report for the proposed plan for
expansion of the existing integrated iron and steel making facilities of Tata Steel Kalinganagar
(TSK) at Kalinganagar, District Jajpur, Odisha.

TSK had conceived to produce 6.0 MTPA (Million ton per annum) of crude steel in
Kalinganagar Industrial complex, Odisha. Environmental Clearance for this project was
accorded by Ministry of Environment Forest and Climate Change (MOEFCC) on 7t h
November 2006. Subsequently, on 10th October 2012, based on proposal by TSK,
MOEFCC amended the above clearance due to reorientation of layout, changes/addition of
units, and value addition by cold rolling of product. Phase-I of the integrated steel plant for
producing 3.0 MTPA crude steel is already commissioned.

TSK is now planning to expand the plant for a total production of 8.0 MTPA crude steel,
through increase in capacity of individual units and optimizing capacities in the existing
plant site.

The production plan of the proposed expansion is as follows:

( Bar, Wire Rod, Medium & Light


Structural etc.)

Crude Steel 8.00 MTPA


Cold rolled products 7.00 MTPA
Hot Rolled Coils 2.20 MTPA
Long Products 2.00 MTPA

The total make-up water requirement for the plant, after the expansion to 8 MTPA
crude steel capacity, shall be around 5,500 cu m/hr. The source of water for the existing
steel plant is river Kharsua from where raw water is pumped and stored in a raw water

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storage tank. Water for the proposed plant is considered to be available from existing raw
water reservoir on a continuous basis.

The estimated power requirements of various plant units including CRM as well as utilities
and auxiliary facilities for the project would be about 4,935 Million KWh, which would be
sourced from captive generation and Grid Power supply system.

It is also expected that the proposed expansion project would augment the existing social
developmental activities and further promote - i) Improvement in the socio-economic status
of the region by generation of direct and indirect employment opportunities, ii)
Development of ancillary small and medium industries, trade & commercial establishments
and local entrepreneurship.

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INTRODUCTION

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CHAPTER- 02
THE ORGANIZATION

Brief History
Tata Iron and Steel Company was founded by Jamshetji Tata and established by Dorabji Tata on
26 August 1907, as part of his father Jamshetji's Tata Group. By 1939 it operated the largest

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steel plant in the British Empire. The company launched a major modernization and expansion
program in 1951. Later in 1958, the program was upgraded to 2 million metric tonnes per
annum (MTPA) project. By 1970, the company employed around 40,000 people at Jamshedpur,
with a further 20,000 in the neighbouring coal mines. In 1971 and 1979, there were unsuccessful
attempts to nationalise the company. In 1990, it started expansion plan and established its
subsidiary Tata Inc. in New York. The company changed its name from TISCO to Tata Steel in
2005.Tata Steel on Thursday, 12 February 2015 announced buying three strip product services
centres in Sweden, Finland and Norway from SSAB to strengthen its offering in Nordic region.
The company, however, did not disclose value of the transactions.

Company Profile
Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is an
Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India, and
a subsidiary of the Tata Group. It was the 10th largest steel producing company in the world in
2015, with an annual crude steel capacity of 25.3 million tonnes, and the second largest steel
company in India (measured by domestic production) with an annual capacity of 9.7 million
tonnes after SAIL. Tata Steel has in its lineage some of the worlds most pioneering and
respected entities the Tata Group itself, British Steel, Koninklijke Hoogovens and Natsteel.
What binds together every member of the global Tata Steel family is a shared corporate
culture, shaped by value-based guiding principles that underpin every business decision.

Type of Company
Listed in Bombay stock exchange (BSE) and National stock exchange (NSE) as Tata Steel Limited.

Market Capitalization
$ 7.55 Billion

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Production Sites:
Country name Location

India Jamshedpur plant, Jharkhand

India Kalinganagar, Odisha Greenfield


Project

India Gopalpur Industrial park and SEZ

The Netherlands IJmuiden Steel works Hisarna


Project

Singapore Modernisation Project

Thailand Rayong Greenfield project

Products/Services
Tata steels branded products and solution touch 2.5 million customers and 5000
customers every year. By actively responding to changing customer demands and expectations, the
company has expanded its distribution network, strengthened existing brands and won several brand
award.

Flat product

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Hot Rolled Coil


Tata Steel offers Hot Rolled Coil and Sheet steels in a wide variety of specifications, manufactured
to meet international standards and a wide range of market requirements like forming, bending,
deep drawing, laser cutting and welding. High carbon grades are especially suited to meet
challenging wear and fatigue performance.

Cold Rolled
Tata Steel offers a comprehensive range of cold-rolled steel comprising both continuously-annealed
and batch-annealed products. These can be customised to cater to specific requirements for
formability, strength, surface finish or flatness. Coupled with consistent quality, the wide product
selection provides opportunities for customers to optimise both products and processes.

Metallic Coated
Tata Steel offers a wide choice of metallic coated steel for diverse and demanding applications. The
product line comprises forming and structural grades and an extensive range of high-strength and
advanced high-strength steels that include opportunities for weight savings and better component

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performance. Consistent quality also ensures reliable processing. High strength grades offer
finished components increased strength and reduced steel thickness.

Packaging Steels
Steel is an excellent choice for the packaging industry, including speciality packaging applications.
Tata Steel Europe has an extensive range of high quality packaging steels in various widths, gauges
and coatings. The Company is one of Europes leading suppliers of high quality packaging steels,
focusing on innovative new materials, applications and processing technologies, and works closely
with business partners to increase value all along the supply chain. The product range, including
tinplate, ECCS, Blackplate and Protact polymer-coated steel, meets all requirements for strength,
surface finish and forming properties.

Structural Steel
Tata Steel offers a comprehensive range of structural steel products. Tata Steel Europe's product
portfolio in this segment includes Structural Hollow Sections, and Building Systems. The recent
introduction of Celsius 420 high strength hot finished tubes indicate that Tata Steel structural steel

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products continue to deliver in an industry where high performance and aesthetics are critical
factors.

Floors
Tata Steels European operations offers a range of shallow and deep composite floor decking
systems that is one of the most comprehensive available anywhere in the world. From steel
decking, plate and modular systems to fully engineered flooring, Tata Steel offers best-in-class
solutions in terms of finish, speed of installation, quality, cost or thermal efficiency.

Roofs
The Tata Steel product range in roofing solutions extends from the traditional built up systems
through composite systems to the modular Hi-Point system. The products provide flexibility in
design and fast track construction. The Colorcoat range extends to roofing applications, along

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with Hi-Point, which is an advanced modular roofing system that provides an attractive, robust and
cost effective solution for large-scale projects.

Bearings
A wide variety of bearings and auto assemblies are manufactured by Tata Steel at its Bearings
Division in India, which has a production capacity of 30 million bearing numbers per annum. Over
the years, a highly performance-driven approach has helped Tata Bearings achieve an influential
and crucial position in its target industry segment. Tata Bearings Division of Tata Steel Limited is
one of India's largest quality bearing manufacturers, with a production capacity of 37 million
bearing numbers. It is the only bearings manufacturer in India to win the TPM Award (2004) from
Japan Institute of Plant Maintenance, Tokyo.

The Tata Steel Approach


Tata Steels Vision strikes a balance between economic value as well as ecological and societal
value by aspiring to be "a Global Benchmark in Value Creation and Corporate Citizenship".

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Tata Steels approach to business has evolved from the concept that the wealth created must be
continuously returned to society. The responsibility of combining the three elements of society -
social, environmental, and economic - is of utmost importance to the way of life at Tata Steel.
Today, Tata Steels CSR activities in India encompass the Companys Steel Works, Iron ore mines
and collieries, reaching out to the city of Jamshedpur, its peri-urban areas and over 800 villages in
the states of Jharkhand, Odisha and Chhattisgarh. Community involvement is a characteristic of all
Tata Steel Group companies around the world. It can take the form of financial support, provision
of materials and the involvement of time, skills and enthusiasm of employees. The Group
contributes to a very wide range of social, cultural, educational, sporting, charitable and emergency
assistance programmes.

The company supports and propagates the principles of the united nation global compact as a
founder member is a signarotory to the world steel sustainability charter and supports the
affirmative action programme of the confederation of Indian industry.

Active Volunteering

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Workplace volunteerism is a part of the culture at Tata Steel and volunteering


is imperative in skill development and the cultivating of value systems.
Tata Steels philosophy of contributing to society is shared by employees
across its operations and many individuals willingly choose to contribute their time and efforts to
help strengthen the local communities and improve surroundings. This tradition is part of the Tata
group ethos and it has even been institutionalised under the aegis of the Tata Council for
Community Initiatives (TCCI) (now a part of the Tata Sustainability Group), which encourages and
guides Tata companies in their volunteering endeavours. It also finds a place in the Tata Code of
Conduct, the set of guidelines that define the value systems on which the Tata group of companies
has been built.

Tata Steels Healthcare Facilities at a glance


The Tata Main Hospital in Jamshedpur is more than a century old. It is an eight hundred and ninety
bedded, secondary care hospital equipped with modern facilities. There are two super dispensaries
(Sakchi and Baridih) and nine dispensaries located across Jamshedpur that form the peripheral
centres and provide primary level health care. The hospital has various departments offering
healthcare services in specific areas.
Medical facilities at the Raw Material locations across Jharkhand (Noamundi, Jamadoba and West
Bokaro) and Odisha (Joda, Sukinda and Bamnipal) offer free medical treatment to Company
employees and also extend the services to local population at nominal charges. The Tata Steel
Noamundi Hospital has been providing medical facilities to people living in and around Noamundi
since 1925.The hospital is equipped with modern medical devices and facilities like medical mobile
van, ambulances and serves almost 25km area with specialist doctors. The well-appointed hospital
run by Tata Steel at Joda has advanced facilities and one of the best Blood Banks in Odisha.

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Lifeline Express
Lifeline Express is the world's first hospital on rails, catering to inaccessible rural areas of Bihar,
Jharkhand, Odisha, Chhattisgarh, West Bengal and Tamil Nadu, where medical services are not
available. Tata Steel was one of the initial partners of Impact India Foundation to host the Lifeline
Express in the first year of its launch, 1991, using the Indian Railway network. This mobile hospital
is equipped with a modern operation theatre and other medical facilities, offering on-the-spot
diagnostic, medical and advanced surgical treatment through preventive and curative interventions
to persons with orthopaedic, ENT and eye ailments.

Education

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Tata Steel strongly believes that education is a basic human right, vital to
personal and societal development and well-being.
Education forms an important marker of human development and is one of the human development
indices being used to assess the impact of interventions. Through its focussed interventions in
education, Tata Steel emphasises to improve quality of education, particularly rural education as
well as promotion of female education that would contribute to Millennium Development Goals.

Our initiatives in education, designed to address the lack of quality education, comprise a gamut of
interventions for different age-groups, as illustrated below:

Sports and adventure


From offering corporate sponsorships to making sporting facilities available to people across
different cross-sections of society, Tata Steels endeavours in the field of sports have been
persistent and liberal.

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Tata Steel is the only Indian company to invest in world-class facilities, create academies and
maintain & manage international level arenas. These infrastructural facilities collectively have
helped in creating an atmosphere conducive to sports promotion and also created champions who
have made the Country proud.

Some of Tata Steels sports infrastructure facilities -


The JRD Tata Sports Complex in Jamshedpur is an international stadium with an 8-lane
polyurethane track and football field. The complex also houses facilities for handball, tennis,
volleyball, hockey, basketball, boxing, table tennis, swimming and a modern gymnasium.
The Keenan Stadium in Jamshedpur, that hosts international cricket matches and provides
accommodation facilities for visiting sportspeople.
A stadium at Keonjhar has been set up to provide training infrastructure for sports lovers in
Northern Odisha. The stadium is equipped with an indoor games hall, spectator galleries and
a 400m running track.

Environment

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Improvement in environment performance is Tata Steels corporate goal and


protection of the environment is an integral way of doing business for the
Company.

The Company believes that respect for the environment is critical to the success of its business and
strives for continuous improvement in environmental performance. Over the years, Tata Steel has
been proactively investing in initiatives that nurture the environment. Its approach to Environment
Management is guided by Tata Code of Conduct, Tata Climate Change Policy, Tata Steels Vision,
Tata Steels Sustainability Policy - enunciated in 2012-13, Environmental Policy and the UN Global
Compact Principles.

Some of these committees and associations include


World steels Water Footprint Network (WFN)
Technology & Environment Committee (TECO)
Climate Change Policy Group
Data Collection Task Force
Expert Group on Sectoral Approach for Climate Change
Sustainability Committee (SUSCO)
Sustainability Reporting Expert Group (SREG)

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INDUSTRY OVERIVEW
STEEL INDUSTRIES IN INDIA
India was the worlds third-largest steel producer in 2016. The growth in the Indian steel sector has
been driven by domestic availability of raw materials such as iron ore and cost-effective labour.
Consequently, the steel sector has been a major contributor to Indias manufacturing output.
The Indian steel industry is very modern with state-of-the-art steel mills. It has always strived for
continuous modernisation and up-gradation of older plants and higher energy efficiency levels.
Indias crude steel production grew by 7.4 per cent year-on-year to 95.6 Million
Tonnes (MT) in 2016.! Total production of crude steel during February 2017 grew by 8.5 per cent
year-on-year to 8.08 MT.
Indias steel exports grew 150.0 per cent year-on-year to 0.75 MT in February 2017, while steel
imports declined 46 per cent year-on-year to 0.49 MT. Total consumption of finished steel grew by
3.4 per cent year-on-year to 76.22 MT during April 2016-February 2017.

Some of the major investments in the Indian steel industry are as


follows
Tata Steel has signed an agreement to purchase a majority 51 per cent stake in Creative Port
Development (CPDPL), which has a concession agreement with the Odisha government to
develop a 10 million-tonnes-per-annum (MTPA) Subarnarekha port at Chamukh village in
Balasore district of Odisha.

Tidfore Heavy Equipment Group, the China-based infrastructure giant, is looking to enter
the Indian market by signing an investment agreement worth US$ 150 million with Uttam
Galva Metallics, to expand its Wardha unit along with South Korean steel major Posco.

Arcelor Mittal SA is looking to set up a joint venture (JV) factory in India with state-owned
Steel Authority of India Ltd (SAIL), to manufacture high-end steel products which could be
used in defence and satellite industries.

JSW Group plans to invest around Rs 10,000 crore (US$ 1.5 billion) at Salboni in West
Bengal to set up 1,320 Megawatt (MW) coal-based power plant, 4.8 million tonne cement
plant and paints factory over a period of next five to seven years.

National Mineral Development Corporation (NMDC) has planned to invest Rs 40,000 crore
(US$ 6 billion) in the next eight years to achieve mining capacity of 75 Million Tonnes Per
Annum (MTPA) by FY2018-19 and 100 MTPA by FY2021-22, compared to 48 MTPA
current capacity.

Posco Korea, the multinational Korean steel company, has signed an agreement with Shree
Uttam Steel and Power (part of Uttam Galva Group) to set up a steel plant at Satarda in
Maharashtra.

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Arcelor Mittal, worlds leading steel maker, has agreed a joint venture with Steel Authority
of India Ltd (SAIL) to set up an automotive steel manufacturing facility in India.

ROAD AHEAD
India is expected to become the world's second largest producer of crude steel in the next 10 years,
moving up from the third position, as its capacity is projected to increase to about 300 MT by 2025.
Huge scope for growth is offered by Indias comparatively low per capita steel consumption and the
expected rise in consumption due to increased infrastructure construction and the thriving
automobile and railways sectors.

References
Media reports, Press releases, Press Information Bureau (PIB), Joint Plant Committee (JPC)

Note
According to data released by World Steel Association.

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Kalinganagar project
Odisha

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About the project


Conforming to Tata Steels vision of Value Creation and Corporate Citizenship and its commitment
to nation building and strengthening its partnership with the State of Odisha, the Company is setting
up a 6 million tonnes per annum capacity integrated steel plant in Kalinganagar Industrial Complex
in Jajpur district of Odisha. Subsequent to the signing of the MOU, 3470 acres of land was allotted
to the Steel Company for setting up the steel plant. While the plant site at Kalinganagar Industrial
Complex is beside the National Highway 200, the all-weather ports at Paradip and Dhamra are at a
distance of about 100 to 110 km by rail route. Similarly, the iron ore mines are located at a distance
of about 200 km from the project site.

Project details
The state-of-the-art, Kalinganagar Project is being established in two modules of three million
tonnes each. The plant, which boasts of the Blast Furnace of 4330 cum capacity, will roll out high-
end flat products.

During the first phase, the Blast Furnace will have a capacity of 3.3 Million Tonnes Per Annum
(MTPA) of hot metal and the Coke Plant will have a capacity of 1.65 MTPA (recovery type oven).
While the Sinter plant will have a capacity of 4.91 MTPA, the Steel Melting Shop (SMS) and the
Hot Strip Mill (HSM) will have capacity of 4.1 MTPA and 3.5 MTPA, respectively.

The project will have a 3X67.5 MW gas-based Captive Power Plant. New technologies like Gran
shot Systems & CAS OB will be introduced in the plant for steelmaking. The plant is also designed
for Zero Liquid Discharge, Waste Recycling Plant and Central Effluent Treatment Plant

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Tata Steel ensures that people who have been relocated find a better quality of life in the Parivar
colonies than what they were accustomed to earlier. It has developed three rehabilitation and
resettlement colonies as well as five transit camps at Kalinganagar to ensure that relocated families
do not face any inconvenience whatsoever. Another rehabilitation and resettlement setup is being
developed at Ramathenga, the location opted for by the displaced families themselves near
Kalinganagar.

Sound infrastructure is developed within the colonies and the adjoining areas to enhance the sense
of well-being among residing families. Developmental initiatives include improvement in
educational and health infrastructure, rural connectivity, drinking water supply, electrification in
villages among others.

Some of the initiatives in the direction are the following-


The 200-bed Gobarghati hospital in the Jajpur district of Odisha caters to around 10000
people.
Considering a request made by Gayatri Mahila Samiti, Tata Steel initiated a water treatment
project at Bhimtangar village in Jajpur district. Under this scheme, the water emerging from
mines is treated to be used for irrigation purposes.
Under project Pani, a large number of tube wells were dug in Sukinda and Danagadi block
during the last five years.
Community Centres have been set up to empower the local youth.
Jaher Sthan - a place for organising religious and cultural functions by the tribal community
- has been set up so that Tata Steel Parivar members can continue their own cultural traditions
and participate in that of others. Here, festivals like Maghe Parab, Baha and Jomnama are
celebrated with equal enthusiasm.
Schools and Balwadis have been set up for children while tribal women have been trained in
various income generation programmes.
Construction of poultry sheds at various locations and Market Complex at Sukindagarh has
been taken up to serve the local population.
Setting up of electrical sub-station at Kaliapani under operation BIJLI and subsequent
electrification of Ashokjhar, a famous tourist spot by Tata Steel has enormously helped the
Jajpur District.
Numerous concrete roads have been constructed including the one connecting Tomka to
Mangalpur and the road to Bhimtangar village.

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TATA Steel commissions Kalinganagar Steel Project

PTI
Odisha Chief Minister Naveen Patnaik (left) with, Chairman, TATA Group, Cyrus P Mistry, at the
Secretariat in Bhubaneswar on Wednesday. Tata Steels project will be a milestone in the industrial
history of Odisha. Kalinganagar has become the industrial capital of the entire eastern India, says
Mr. Patnaik.

Metal and mineral


Indian steel major Tata Steel commissioned the first phase (3 million tonnes per annum) of its 6
MTPA capacity Kalinganagar Steel Plant the largest single-location greenfield steel project in
India in Odisha on Wednesday.

The company plans to expand the plants capacity to 16 MTPA by 2025 with the cumulative
investment amounting to Rs.1,00,000 crore.

The state-of-the-art plant, which will produce world-class flat and lighter, high-tensile
strength steel, was dedicated to the nation by Chief Minister Naveen Patnaik, in the presence
of Tata Sons Chairman Cyrus P Mistry and Tata Steel Managing Director T. V. Narendran.

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With the commissioning of the plant, Tata Steels capacity to produce crude steel in India
has touched 13 MTPA.

First phase investment-


Built at an investment of over Rs.25,000 crore in the first phase, the Kalinganagar plant boasts of
Indias largest blast furnace at 4,330 cubic meter with production capacity of 3.2 MTPA, the
company said. The plant will witness the seamless movement of raw material with its twin wagon
tippler, the first installation in India having unloading capacity of 20 MTPA. The steel plant claims
to have the most advanced carbon hearth technology along with on-site power generation of 202
MW through gases discharged by coke oven and blast furnace. Tata Steel project will be a
milestone in the industrial history of Odisha. Kalinganagar has become the industrial capital of the
entire eastern India, Mr. Patnaik said.

Tata Steel is planning to expand the capacity of Kalinganagar plant to 16 million tonnes per annum
by the year 2025 with cumulative investment of about Rs.1,00,000 crore,

The company will also invest Rs.2,300 crore for scaling up of the capacity of its captive
Khandabandh iron ore mine, Chief Minister said.

Addressing a function marking commissioning of the project, Mr. Mistry said, Odisha, which has
emerged as top investment destination in the county, is poised to grow by 20 per cent by 2020.

Tata Steel has commissioned its Kalinganagar Steel Plant. The group will soon have 55,000 tonne
per annum capacity Ferrochrome plant at Gopalpur. At the same place, Tatas multi-product special
economic zone is expected attract Rs.10,000 crore investment from the country and outside said
Tata Sons Chairman. Among others State Industries Minister Debi Prasad Mishra and Steel and
Mines Minister Prafulla Mallick spoke on the occasion. Koushik Chatterjee, Group Executive
Director (Finance and Corporate) was present at the commissioning function.

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HR PARTICES AT TATA STEEL, KALINGANAGAR, JAJPUR, ODISHA.
Chapater-3
Introduction to HRM

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Introduction about HRM-

Meaning of HRM-
Human Resource Management is the process of recruitment and selecting employee, providing
orientation and induction, training and development , assessment of employee (performance of
appraisal), providing compensation and benefits, motivating, maintaining proper relations with
employees and with trade unions, maintaining employees safety, welfare and healthy measures in
compliance with labour laws of the land.

CONCEPT OF HUMAN RESOURCE MANAGEMENT


Human resource management is a process of bringing people and organizations together so that the
goals of each other are met. The role of HR manager is shifting from that of a protector and
screener to the role of a planner and change agent. Personnel directors are the new corporate
heroes. The name of the game today in business is personnel. Nowadays it is not possible to show a
good financial or operating report unless your personnel relations are in order.
Over the years, highly skilled and knowledge based jobs are increasing while
low skilled jobs are decreasing. This calls for future skill mapping through proper HRM initiatives.
Indian organizations are also witnessing a change in systems, management cultures and philosophy
due to the global alignment of Indian organizations. There is a need for multi skill development.
Role of HRM is becoming all the more important.

Some of the recent trends that are being observed are as follows:
The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people
centric organizations. Organizations now need to prepare themselves in order to address people
centered issues with commitment from the top management, with renewed thrust on HR issues,
more particularly on training.
To leapfrog ahead of competition in this world of uncertainty, organizations have introduced six-

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sigma practices. Six- sigma uses rigorous analytical tools with leadership from the top and
develops a method for sustainable improvement. These practices improve organizational values
and helps in creating defect free product or services at minimum cost.

NEW TRENDS IN INTERNATIONAL HRM


International HRM places greater emphasis on a number of responsibilities and functions such as
relocation, orientation and translation services to help employees adapt to a new and different
environment outside their own country.

Selection of employees requires careful evaluation of the personal characteristics of the


candidate and his/her spouse.

Training and development extends beyond information and orientation training to include
sensitivity training and field experiences that will enable the manager to understand cultural
differences better. Managers need to be protected from career development risks, re-entry problems
and culture shock.
To balance the pros and cons of home country and host country evaluations,
performance evaluations should combine the two sources of appraisal information.
Compensation systems should support the overall strategic intent of the organization but should be
customized for local conditions.
In many European countries - Germany for one, law establishes representation. Organizations
typically negotiate the agreement with the unions at a national level. In Europe it is more likely for
salaried employees and managers to be unionized

Why name 'Human Resource Management'?


Human: refers to the skilled workforce in the organisation.
Resource: refers to limited availability or scarceness.
Management: refers how to optimize and make best use of such limited and a scarce resource so
as to meet the ordination goals and objectives.

Altogether, human resource management is the process of proper and maximize utilization of
available limited skilled workforce. The core purpose of the human resource management is to
make efficient use of existing human resource in the organization.
The Best example at present situation is, construction industry has been facing serious shortage of
skilled workforce. It is expected to triple in the next decade from the present 30 per cent, will
negatively impact the overall productivity of the sector, warn industry experts.

Every organizations desire is to have skilled and competent people to make their organization more
effective than their competitors. Humans are very important assets for the organization rather than
land and buildings, without employees (humans) no activity in the organization can be done.
Machines are meant to produce more goods with good quality but they should get operated by the
human only.

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HR Managers should do the following things to ensure success-


Use workforce skills and abilities in order to exploit environmental opportunities and
neutralize threats.
Employ innovative reward plans that recognize employee contributions and grant
enhancements. Indulge in continuous quality improvement through TQM and HR
contributions like training, development, counseling, etc
Utilize people with distinctive capabilities to create unsurpassed competence in an area, e.g.
Xerox in photocopiers, 3M in adhesives, Telco in trucks etc.
Decentralize operations and rely on self-managed teams to deliver goods in difficult times
e.g. Motorola is famous for short product development cycles. It has quickly
commercialized ideas from its research labs.
Lay off workers in a smooth way explaining facts to unions, workers and other affected
groups
IBM , Kodak, Xerox, etc.

Great Quotations on human resource


"you must treat your employees with respect and dignity because in the most automated factory in
the world, you need the power of human mind. That is what brings in innovation. If you want high
quality minds to work for you, then you must protect the respect and dignity. "
---Mr N.R. Narayana Murthy, Chairman Emeritus, Infosys Ltd .

Our progress as a nation can be no swifter than our progress in education. The human mind is our
fundamental resource.
- John F. Kennedy (35th President of the United States).

The greatest tragedy in America is not the destruction of our natural resources, though that
tragedy is great. The truly great tragedy is the destruction of our human resources by our failure to
fully utilize our abilities, which means that most men and women go to their graves with their
music still in them.
- Oliver Wendell Holmes.

The human mind is our fundamental resource.


- John F. Kennedy.

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Chapter-4
JOB RESPONSIBILITIES &
OBSERVATION

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Job Responsibilities & Observation


My internship period is from June 1st,2017 to July 15th, 2017. I joined there on the appointed date.
I had to do different duties and tasks during this period.

I have to prepare a project on Overview of HR partices in Tata Steel.

Observation and Recommendation


As a fresh graduate, going to Tata Steel (Corporate Headquarter) was very encouraging and great
experience for me. I have learnt many things from there. My observations and recommendations
are as follows:
Friendly working environment and employees are very co-operative.
Employees are active and sincere to their assigned job responsibilities.
Working hour is 09.00 am to 5.00 pm. Working hour extends on basis of work volume.
According to work volume number of employees is few in HR department of Tata Steel. So
they should think of increasing number of employees.

HRM Philosophy & Functions


Tata Engage volunteers give generously of their time and resources as their actions
embody the group philosophy of giving back to society.
Tata Engage is an expression of the group philosophy, which has always sought to give back to
society and the community. This philosophy is an intrinsic part of the group ethos and is effectively
distilled in the actions and decisions of every Tata company. Long before sustainability became a
buzzword in boardrooms around the world, it was an integral value of the Tata culture. For
example, the idea of employee volunteering is not only encouraged, it is written down in Clause 10
of the Tata Code of Conduct, the ethical framework that lies at the heart of the groups way of
functioning. As a result, Tata people take serious pride in the depth and scale of the groups
extensive CSR engagement.

For many employees, Tata Engage has been a natural progression in the scheme of
things. And for first timers, it has been a fantastic opportunity to connect with the community on
deeper levels. Across the world, volunteers contributed in myriad different ways they reached
out to orphanages and old age homes, gave generously to charities and relief funds, spent time in
class rooms and sick rooms, worked to clean up public areas and civic spaces, planted trees and
shrubs for green cover, conducted events and competitions, supported artisans and craftspeople,
spent time with the aged, underprivileged and differently able and, in short, opened out their hearts
to those that needed help (see Many hands make light work).

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Having a HR philosophy that is always proactive not reactive.


Being seen as successfully creating a great place to work.

Functions
HR department of Tata Steel has various functions. Tata Steel provides the highest priority to its
people. The HR department presents HR functions for the people guided by the Management. The
main activities of Tata Steel department fall under following general head. These are appended
below:

Recruitment & Selection


Training & Development
Compensation & Benefits
Employee Relations
H.R. Development
H.R. Services

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CHAPTER-4
TATA CODE OF CONDUCT

Tata Code of Conduct

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FOREWORD
Tata companies have consistently adhered to the values and ideals articulated by the Founder for
over 150 years. The Tata Code of Conduct was first formalized by Mr Ratan Tata. It articulates the
Groups values and ideals that guide and govern the conduct of our companies as well as our
colleagues in all matters relating to business. Today, the Code is a bedrock on which we base our
individual, as well as leadership commitments to core Tata values.

The Tata Code of Conduct outlines our commitment to each of our stakeholders,
including the communities in which we operate, and is our guiding light when we are sometimes
faced with business dilemmas that leave us at ethical crossroads. The Code is also dynamic in that
it has been periodically refreshed in order to remain contemporary and contextual to the changes in
law and regulations. However it remains unaltered at its core.

Our stellar reputation and success as a business entity has been defined by the powerful
commitment and adherence to the core values and principles expressed in this Code, by all our
employees, directors and partners. I trust every Tata colleague and Tata company will continue to
not only comply with the laws and regulations that govern our business interests around the world,
but will continue to set new standards of ethical conduct that will generate deep respect and inspire
emulation by others.

N. Chandrasekaran

21st February, 2017

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OUR VALUES
TATA has always been values-driven. The five core values that underpin the
way we conduct our business activities are:

RESPONSIBILITY PIONEERING
We will integrate environmental We will be bold and agile,
and social principles in our courageously taking on challenges,
businesses, ensuring that what using deep customer insight to
comes from the people goes back develop innovative solutions.
to the people many times over.

INTEGRITY UNITY
We will be fair, honest, We will invest in our
transparent and ethical in our people and partners, enable
conduct; everything we do continuous learning, and
must stand the test of build caring and collaborative
public scrutiny. relationships based on trust
and mutual respect.

EXCELLENCE

We will be passionate about achieving the highest standards of quality, always promoting
meritocracy.

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Scope and purpose of this Code


1. This Code sets out how we behave with:

Our employees, or those who work with us;

Our customers;

The communities and the environment in which we operate;

Our value-chain partners, including suppliers and service providers, distributors, sales
representatives, contractors, channel partners, consultants, intermediaries and agents;

Our joint-venture partners or other business associates;

Our financial stakeholders;

The governments of the countries in which we operate; and

Our group companies.

2. In this Code, we or us means our company, our executive directors, officers, employees
and those who work with us, as the context may require.

3. The term our group companies in this Code typically means companies Tata Sons intends
for this Code to apply to, and / or to whom Tata Sons has issued this Code.

4. This Code sets out our expectations of all those who work with us. We also expect those
who deal with us to be aware that this Code underpins everything we do, and in order to work with
us they need to act in a manner consistent with it.

remember

It is our commitment to protect our reputation and our brand equity by adhering to the
values and principles set out in this Code. By doing so, we strengthen our unique culture and
identity.

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CORE PRINCIPLES OF
TATA

The Tata philosophy of management has always been, and is today


more than ever, that corporate enterprises must be managed not
merely in the interests of their owners, but equally in those of their
employees, of the consumers of their products, of the local community

and finally of the country as a whole.

J.R.D. Tat
Chairman, Tata Sons (1938 1991)

OUR CORE PRINCIPLES

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1. We are committed to operating our businesses conforming to the highest moral and ethical
standards. We do not tolerate bribery or corruption in any form. This commitment underpins
everything that we do.

2. We are committed to good corporate citizenship. We treat social development activities


which benefit the communities in which we operate as an integral part of our business plan.

3. We seek to contribute to the economic development of the communities of the countries


and regions we operate in, while respecting their culture, norms and heritage. We seek to avoid any
project or activity that is detrimental to the wider interests of the communities in which we operate.

4. We shall not compromise safety in the pursuit of commercial advantage. We shall strive to
provide a safe, healthy and clean working environment for our employees and all those who work
with us.

5. When representing our company, we shall act with professionalism, honesty and integrity,
and conform to the highest moral and ethical standards. In the countries we operate in, we shall
exhibit culturally appropriate behaviour. Our conduct shall be fair and transparent and be perceived
as fair and transparent by third parties.

6. We shall respect the human rights and dignity of all our stakeholders.

7. We shall strive to balance the interests of our stakeholders, treating each of them fairly and
avoiding unfair discrimination of any kind.

8. The statements that we make to our stakeholders shall be truthful and made in good faith.

9. We shall not engage in any restrictive or unfair trade practices.

10. We shall strive to create an environment free from fear of retribution to deal with concerns
that are raised or cases reported in good faith. No one shall be punished or made to suffer for
raising concerns or making disclosures in good faith or in the public interest.

11. We shall comply with the laws of the countries in which we operate and any other laws
which apply to us. With regard to those provisions of the Code that are explicitly dealt with under
an applicable law or employment terms, the law and those terms shall take precedence. In the event
that the standards prescribed under any applicable law are lower than that of the Code, we shall
conduct ourselves as per the provisions of the Code.

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OUR Employees

Once you got the best people, the people who shared our values and ideals, we left
them free to act on their own. We do not fetter them. We encourage them and give
them opportunities for leadership.

J.R.D. Tata
Chairman, Tata Sons (1938 1991)

Equal opportunity employer

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OUR Employees
We provide equal opportunities to all our employees and to all eligible applicants for
employment in our company. We do not unfairly discriminate on any ground, including
race, caste, religion, color, ancestry, marital status, gender, sexual orientation, age,
nationality, ethnic origin, disability or any other category protected by applicable law.

When recruiting, developing and promoting our employees, our decisions will be based
solely on performance, merit, competence and potential.

We shall have fair, transparent and clear employee policies which promote diversity and
equality, in accordance with applicable law and other provisions of this Code. These
policies shall provide for clear terms of employment, training, development and
performance managements.

remember

We do not tolerate harassment in any form and therefore we expect every employee to discourage
such misdemeanors in the workplace.

Dignity and respect


Our leaders shall be responsible for creating a conducive work environment built on
tolerance, understanding, mutual cooperation and respect for individual privacy.

Everyone in our work environment must be treated with dignity and respect. We do not
tolerate any form of harassment, whether sexual, physical, verbal or psychological.

We have clear and fair disciplinary procedures, which necessarily include an employees
right to be heard.

We respect our employees right to privacy. We have no concern with their conduct outside
our work environment, unless such conduct impairs their work performance, creates
conflicts of interest or adversely affects our reputation or business interests.

Human rights
We do not employ children at our workplaces.

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We do not use forced labour in any form. We do not confiscate personal documents of our
employees, or force them to make any payment to us or to anyone else in order to secure
employment with us, or to work with us.

Gifts and hospitality


Business gifts and hospitality are sometimes used in the normal course of business activity.
However, if offers of gifts or hospitality (including entertainment or travel) are frequent or
of substantial value, they may create the perception of,
or
An actual conflict of interest or an illicit payment. Therefore, gifts and hospitality given or
received should be modest in value and appropriate, and in compliance with our companys
gifts and hospitality policy.

Freedom of association

We recognise that employees may be interested in joining associations or involving


themselves in civic or public affairs in their personal capacities, provided such activities do
not create an actual or potential conflict with the interests of our company. Our employees
must notify and seek prior approval for any such activity as per the Conflicts of Interest
clause of this Code and in accordance with applicable company policies and law.
Remember-
As a general rule, we may accept gifts or hospitality from a business associate, only if
such a gift:

has modest value and does not create a perception (or an implied obligation) that the giver
is entitled to preferential treatment of any kind;

would not influence, or appear to influence, our ability to act in the best interest of our
company;

would not embarrass our company or the giver if disclosed publicly.

The following gifts are never appropriate and should never be given or accepted:

gifts of cash or gold or other precious metals, gems or stones;

gifts that are prohibited under applicable law;

gifts in the nature of a bribe, payoff, kickback or facilitation payment*;

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gifts that are prohibited by the gift givers or recipients organisation; and

gifts in the form of services or other non-cash benefits (e.g. a promise of employment).

(*Facilitation payment is a payment made to secure or speed up routine legal government actions,
such as issuing permits or releasing goods held in customs.)

OUR CUSTOMERS

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We have continued to enjoy prosperity, even with adverse times to fight against. Our
relations with all concerned are the most friendly. We have maintained the same character
for straight-forward dealing with our constituents and customers. Our productions have
continued to be of the same high quality, and therefore command the best reputation and
realise the highest prices. I mention these facts only to point out that with honest and
straight-forward business principles, close and careful attention to details, and the ability to
take advantage of favourable opportunities and circumstances, there is a scope for success.

Jamsetji Tata
Founder of the Tata group
Chairman, Tata Sons (1868 1904)

OUR Customers

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Products and services


We are committed to supplying products and services of world-class quality that meet all
applicable standards.

The products and services we offer shall comply with applicable laws, including product
packaging, labeling and after-sales service obligations.

We shall market our products and services on their own merits and not make unfair or
misleading statements about the products and services of our competitors.

Export controls and trade sanctions

We shall comply with all relevant export controls or trade sanctions in the course of our
business.

Fair competition
We support the development and operation of competitive open markets and the
liberalization of trade and investment in each country and market in which we operate.

We shall not enter into any activity constituting anti-competitive behavior such as abuse of
market dominance, collusion, participation in cartels or inappropriate exchange of
information with competitors.

We collect competitive information only in the normal course of business and obtain the
same through legally permitted sources and means.

Dealings with customers


Our dealings with our customers shall be professional, fair and transparent.

respect our customers right to privacy in relation to their personal data. We shall safeguard
our customers personal data, in accordance with applicable law.

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CHAPTER-6
MAN POWER PLANNING

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INTRODUCTION
MANPOWER ASSESSMENT
The proposals regarding additional manpower requirement are received for study and
recommendations in respect of existing and expansion units. Most of the proposals are
related to additional manpower requirement for existing units in the backdrop of one of the
following reasons:
1. Employee separation in the form of superannuation/death/resignation etc.
2. Employees becoming medically unfit/sick
3. Ageing of employees above 50 years leading to inability of doing hard jobs
4. Skill preservation/successor development etc.

The manpower requirement proposals contain details of additional manpower required,


reasons/justification for the additional requirement, grade and discipline of manpower etc.
The study of the proposal based on the data provided by the concerned dept. regarding present
deployment details and nature of jobs being handled and prevailing work load of the each duty post
is carried out. Sometimes data is collected by direct observation or study. If further data is required
during course of the study the same will be collected from the concerned dept.
The data collected is analyzed in the light of basic requirement of the job, the available manpower
and their duties, work load, nature of job & environment, skill requirement, allowance to be
considered like leave reserve and weekly off etc.
According to the outcome of the analysis, the additional man-power, if required, is recommended
keeping the company guidelines in view. In general the recommended manpower is suggested to be
arranged through internal redeployment within or from outside the concerned division /dept.
external recruitment would be recommended only when the required manpower is not available
internally.
In case of expansion the manpower requirement is studied in the light of envisaged technological
needs, outsourcing strategies, suggestions of consultant and redeployment of existing manpower.
Department wise, discipline wise and category wise additional manpower requirements for all
manpower units along with concerted services and non-workers departments as a part of manpower
committee is also done.
Inputs and coordination is also extended for the redeployment process of posting the interested
employees from the different departments through internal circular to expansion units.

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Definition of Manpower Planning by various authors


Manpower planning may, be defined as, the replacement planning which analyse labour
turnover, recruitment policy, promotion, development and maintenance of employee
programmes and assess the future needs of the organization so that sufficient number of
persons may be procured well in time.
Manpower planning is the process by which management determines how the organization should
move from its current manpower position to its desired manpower position.

Manpower, the labour force is not only an active, deep linking and essential factor of production,
but it activates their factors of productions.

Manpower planning is a dual process, which identifies le manpower requirement, in future and
develops, its manpower resources accordingly.

According to M.N. Rudrobasavraj, Manpower planning may be defined as a strategy for


acquisition, utilisation, improvement and presentation of an enterprise human resources.

Edwin B. Geisler defined as, Manpower planning is the process, including forecasting,
developing, and controlling by which a firm ensures that it has the right number of people and the
right kind of people at the right places at the right me, doing work for which they are economically
most useful.

E.W. Velter, defines manpower planning as The process which management determines how the
organisation should love from its current manpower position. Through planning le management
strives to have the right number and right type of people at the right place, at the right time doing
things, which result in both the organisation and the individual receiving maximum long hour un-
benefits.

Factors Affecting Manpower Planning


The following are the factors affecting manpower planning which
constitute the basis of manpower planning

1. Exciting Stock of Manpower


This is the first basis of manpower planning and it is the starting point of all planning processes. By
studying the position of total stock of manpower, by dividing it into groups on the basis of
function, occupation, level of skill or qualification, we can analyse the existing stock of manpower.

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2. Wastage
The second basis of manpower planning is wastage. For a good planning, appropriate adjustment in
the existing stock of manpower should be made for the possible wastage of manpower caused by
any foreseeable changes in the organization. Labour turnover rate, labour stability rate and the
period of active management can be studied to analyse the wastage of manpower. All these factors
should be taken into consideration to make necessary adjustments in the requirement of personnel
to plan the manpower.

3. Future Manpower Requirement


We can easily measure the future requirements of manpower, after assessing the existing stock of
manpower and analysing the several factors of wastage.

To analyse the future manpower requirements, the following factors


should be considered
Future plans of the company
a. Government plans and programmes.

b. Employment policy.

c. Demand and supply.

d. Manpower in future.

e. Labour productivity.

f. Other factors of production and replacement needs

Future manpower requirements


a. Direct and indirect labour cost

b. Administrative cost

c. Overtime allowance is payable to worker.

d. Maintenance and repair charge.

e. Wages can be paid according to time rate or price rate system.

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f. Workers requirement during peak and sluggish period.

4. Future Withdrawal of Workers

Effective manpower requires that the human resource manager should take into consideration
decrease in the working force in future due to retirement demotion.

Future availability of people dismissal and resignation.

Expected changes in the composition of labour force.

Workers cost benefit analysis.

Manpower Approval Process


Manpower approval process of TATA STEEL is detail and systematic. The process
is enumerated below
Managing Director & CEO is the sole authority to approve manpower for any business
or function.
Whenever a position becomes vacant the department head examines to see if the work
can be redistributed amongst the remaining staff or not. If it is possible to redistribute
then no such recruitment happens. When it is not possible then TATA STEEL depends
on new recruitment.
To recruit new employees the concerned department head will fill up the Staff
Engagement Proposal Form and forward the same to the Human Resource Department.
The Human Resource Department will evaluate the proposal and forward it to the
Managing Director with comments if any.
Before forwarding any proposal or recommendation to Managing Director, Human
Resource Department should ensure that the Job Description and Person Specification
are there with the proposal.
Department Head is responsible for preparing the Job Description and Person
Specification while Human Resource Department gives support to the Department
Head, if required.
After receiving the approval from the Managing Director, Human Resource Department
keeps the original Staff Engagement Proposal Form and sends a copy to the concern
Department Head.
Only after receiving the approval from Managing Director the Human Resource
Department can proceed for new recruitment.

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There will be an exception for Staff Engagement Proposal in case of the entry level field force and
distribution of contractual labour. In this case the concerned Department Head takes approval from
the Managing Director in the specified Staff Engagement Proposal Form by 31st December every
year which remains valid for next one year. During this period any replacement will not need the
approval from the Managing Director. But for increasing the manpower of any Department the
concerned Department Head must take approval from the Managing Director.

Objectives of Manpower Planning


The objectives or importance of manpower planning are given below

1. Optimum Productivity
Skilled and qualified workers are recruited or they become so through the training programme
provided by the organization, through the manpower planning. Hence, an organization can achieve
the effective optimum utilization of human potential, which will result in optimum productivity and
thereby, the production is carried out on uninterrupted.

2. Reduction in Labour cost


Effective use of manpower, and optimum productivity will reduce the wastage. It will reduce the
labour cost.

3. Effective Recruitment and Selection


Right person can be placed at the right job and at right time through manpower planning. Because
future need can be predicted by manpower planning. Therefore, effective recruitment and selection
can be achieved so that no need to spend much amount on the training and labour turnover can be
reduced.

4. Group Satisfaction
By establishing mutually satisfying work relationship between all the members of the organization,
group satisfaction and team spirit can be achieved.
5. It helps in maximizing individual development.

6. Effective manpower planning may help the management in developing the good employer-
employee relationship. It leads to improve the industrial relations.

7. It maximizes the contributions and the satisfaction of the employees of a business.

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8. It gives due consideration to the capacities, interests, opportunities and reactions of the workers.

9. To develop the future training and management development needs.

10. To avoid the staff surplus and unnecessary dismissals in the manpower planning.

11. To control the wages and salary costs.

Principles of Manpower Planning:

1. Every business Activity


Every business activitysales, purchases, production etc. needs men to direct and perform it. A
business is no better than the people it has. The success of a business depends upon the capacity,
ability, integrity, motivation and enthusiasm of the group of employees in it.

2. Participative Management
Worker must be recognized by the owners as partners in the business because both of them have a
common interest. Workers must be encouraged to participate in the formation and development of
all plans and programmes of the business.

3. Opportunities for Growth


A good business must provide reasonable opportunities for growth to each of its employee.
Individual differences must be recognized. Decisions regarding the nature of action be based upon
the understanding of the individuals comprising the group.

4. Social Justice
The management must consider the expectations and aspirations of the employees. There must be
some system of public recognition and appreciation of meritorious work.

5. Co-Operation with Trade Unions


The management must seek the co-operation of trade unions. It must try to avoid the likely points
of conflicts with the trade unions.

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CHAPTER-7
RECRUITMENT

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Recruitment is the process that helps in taking decision whether the applicants are suitable for the
fill the vacancy or not. It is Cleary in the interest both the organization as well as applicants. The
efficient process of recruitment may be helpful to describe-

a) What resources you want?


b) What resources are available?
c) Where and how can they be

Recruitment is a linking function-joining together those with jobs to fill and those seeking jobs. It
is a joining process in that it tries to bring together job seekers and employer with a view to
encourage the former to apply for a job with the latter.

Definitions
Recruitment is the process of searching for prospective employees and encouraging them to apply
for jobs in an organization.

OR

Recruitment is a process to discover the source of manpower to meet recruitment of the staffing
schedule and to employ effective measures in adequate number to facilitate effective selection of a
working force.

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PURPOSES AND IMPORTANCE:


The general purpose of recruitment is to provide a pool of potentially qualified job candidates.
Specifically, the purposes are to:

Determine the present and future requirements of the organization in conjunction with its
personnel-planning and job-analysis activities.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of the selection process by reducing the number of visibly,
under qualified or overqualified job applicants.
Help reduce the probability that job applicants, once recruited and selected, will leave the
organization only after a short period of time.
Begin identifying and preparing potential job applicants who will be appropriate candidates.
Induct outsiders with a new perspective to lead the company.
Develop an organizational culture that attracts competent people to the company.
Search or head hunt/head pouch people whose skills fit the companys values.
Devise methodologies for assessing psychological traits.
Search for talent globally and not just within the company.
Anticipate and find people for positions that do not exist yet.
Increase organizational and individual effectiveness in the short term and long term.
Evaluate the effectiveness of various recruiting techniques and sources for all types of job
applicants.

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Recruitment Philosophy of TATA STEEL


TATA STEEL commits to promote best employment equality practice in its efforts to eliminate
discrimination and create working environments where are treated fairly and with respect. No
written document is maintained its recruitment and selection philosophy is concerned. However the
Company believes:

To have a workforce that reflects the diversity of local communities and the believe that it
can best serve the citizens of the country;

All people should have an equal chance to apply for and be considered for jobs Harassment,
bullying and discrimination are not acceptable; and, Peoples differences should be valued.

Comply fully with and implement legal requirements and employment guidance; Ensure all
employees are aware of the Company's Employment Equality Policy Statement. through
training and guidance.

Create working environments that promote fair and equal opportunities, Develop,
implement and publish plans for employment equality.

Monitor the existing workforce and job applicants to see if the policy is working and take
action to deal with under representation.

Regularly monitor and review all employment procedures and make changes to them where
they are found to be discriminatory.

Take seriously any concerns that an existing employee or job applicant raises about
discrimination, harassment or bullying.

Compliance to have strict rules to ensure that the recruitment decisions are based on merit
and the aim is to ensure that everyone has an equal chance to apply and be considered for
jobs.

Future Focused Hiring


TATA STEEL hires for the future. While a new employee has to make economic sense for today's
tasks, the best hires are people who position as to profit the company as the business moves into the
future. New people should provide the skills needed in the future, not just match the job demands
of today.

Understanding Job
The management of TATA STEEL believes that finding the right people to hire is much easier
when a company first analyzes the job it wants to fill. Best is to determine what kinds of people do
the best in a particular job? It is not difficult to have a top performer already in the job, the job of

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the recruiters to learn from them, observe their behaviour, ask those questions and talk with their
peers, to get a clear understanding what characteristics make them effective in their job.

Legal Aspect
TATA STEEL makes sure that its hiring process is legal. The process ensures Equal
Employment Opportunity and avoids other discrimination.

Standardization of Process
The hiring process of TATA STEEL includes criteria-based screening of an adequate number of
candidates, a background check, standardized assessments and structured interviews. The more
important the position, the more rigorous the hiring process is.

Job Analysis
A job analysis provides a list of the personal attributes required to work effectively in the role. This
list of attributes is identified first by breaking down a person's job into logical parts. Next, each job
task is analyzed according to the knowledge, skills, abilities and attitudes required to perform the
job correctly.

Internal Versus External Recruiting


TATA STEEL neither promotes largely from within the organization nor hire from the outside for
vacancies at all levels. When there is a sudden vacancy in any position and someone within the
organization is found suitable to fill the position, internal recruitment takes place. External
recruitment is practiced when suitable candidates for a position are not found.

Emphasizes Creativity
TATA STEEL always recruits people who have creative ideas. Here recruitment is part of constant
development of business. TATA STEEL wants its employees develop innovative ideas which, if
implemented, will bring about a great advancement to the organization.

Corporate Culture
TATA STEEL has developed a corporate culture where employees are not treated mere employees.
They are treated as associates of the organization. Together they form a family and all associates
are the members of the family.

RECRUITMENT GOALS
Some of the common business reasons for hiring by TATA STEEL includes following:
Replacements for turnover
Current or future business expansion
Upsizing the calibre of talent because top talent has become available
Limiting the talent available in the market in order to hurt a competitor's ability to staff
adequately
Learning from other firms

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Increasing the capability of the firm by adding new skill sets

Recruitment Method & Responsibility


Recruitment method refers to the process of discovering potential job candidates. Standard
recruitment process will follow the guidelines given below:

After receiving the approval from the Managing Director the Human Resource Department
starts recruitment as per the preferred method recommended in the Staff Engagement
Proposal Form.

Human Resource Department can select one or multiple suitable methods of recruitment in
consultation with the respective Department Head.

HR Department always maintains a CV Bank in a suitable filing system so that they can be
sorted out as and when required before going for costly recruitment process.

HR Department should introduce an online application system in the website of TATA


STEEL Limited so that any prospective candidate can apply for a suitable position any time.

HR Department checks the online applications daily and let the applicants know their
application status on a regular basis.

Without written approval from the Managing Director no such employment can be offered.

Policy Guidelines
For any recruitment process HR of TATA STEEL follows the guidelines given below

Newspaper Advertisement
HR will make a draft for the newspaper advertisement and finalize the contents in consultation
with the concerned Department Head. After finalization HR will send the advertisement to the
Chosen news paper. The advertisement should be published in such a manner that it ensures the
maximum visibility as well as mass coverage. HR considers the conciseness and attractiveness of
the advertisement. In case of every vacancy advertisement, copies of the advertisement are placed
on the notice board.

Online Advertisement
HRD has a contract with bdjobs.com. HR Manager has full access to post a circular there.
Sometimes HR Manager directly posts the advertisement or her assigned person post the
advertisement to bdjobs.com.

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Notice Board Circular


A copy of the advertisement is placed on all the company notice boards for any recruitment so that
the employees are informed about the recruitment process and can recommend suitable candidates,
if any. It is needless to state that employee recommendation is a way to search good candidates but
by no means will it carry any significance in the selection process.

Interns
The Department Head can recommend an intern or a pre-selected person for employment. The
intern must be interviewed and evaluated extensively. The pre-selected person has to be screened in
accordance to the established selection procedure. All the documents or assessment in case of an
intern along with a CV should be forwarded to the Managing Director for his evaluation and
approval.

Written Approval
Without written approval from the Managing Director no such employment can be offered.

Job Rotation or Transfer:
In case of surplus employees prevailing within any department the concerned Department Head
can recommend any of them for recruitment against any suitable position provided that the
employee possesses the competency level for that position. The concerned Department Head then
forward the CV of the surplus employee along with proven competency documents to the HR
Department and the HR arranges interview of the person with the department head where the
vacancy arises and if the person is found suitable, HR should forward those documents to the
Managing Director for approval. Also any employee can apply against any vacancy with a
clearance note from the Department Head.

FACTORS AFFECTING RECRUITMENT


1) INTERNAL FACTORS
Recruiting policy
Temporary and part-time employees
Recruitment of local citizens
Engagement of the company in HRP
Companys size
Cost of recruitment
Companys growth and expansion.

2) EXTERNAL FACTORS
Supply and Demand factors
Unemployment Rate

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Labor-market conditions
Political and legal considerations
Social factors
Economic factors
Technological factors

Sources of Recruitment
When recruitment is announced then question comes, what will be the sources of recruitment?
TATA STEEL usually tries to attract really good and suitable candidates for recruitment. Concern
persons try their level best to find out the sources of recruitment.
Maximum possible range of labour markets and other places wherefrom they can obtain qualified
and suitable applicants in term of the required characteristics determined by job analysis according
to their demands. Recruitment is more likely to achieve its objective if recruitment sources reflect
the type of position to be filled. Certain recruiting sources are more effective than the others for
fulfilling certain type to jobs. But while choosing the source, the strength or weakness of the
sources needed to be considered. . The sources used by TATA STEEL are as under:

Sources of Recruitment

Internal sources External sources

Internal Sources
Present, Permanent employees
Present Temp/ Casual
Employee referrals
Dependents of diseased , disabled , retired and present employees

External sources

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Advertisement (Internet postings/ Newspaper)


Private Employment Agencies/ Consultancies / Professional organizations
Educational Training Institutes
Unsolicited applications

Recruitment Process of TATA STEEL


Recruitment refers to the process by which organization locate and attract right people for the right
position. Recruitment is one of the main functions of HR department. Recruitment may take place
by the recruiters of the Organization directly or sometimes it may take place by an employment
agency. To attract applicants through advertising (like- online, newspapers, advertisements placed
in windows, through a job centre, through campus graduate recruitment programs etc) is a usual
part of recruiting process. Generate candidate pool by either internal or external recruitment
methods and evaluate candidates through selection process. Finally selection of candidates and job
offer to the candidates.
In TATA STEEL, recruiters try to find and attract capable applicants. Recruiters identify job
openings through HR planning or request by the manager. Once openings have been identified the
recruiters learn job requirements by reviewing the job analysis information, particularly the job
descriptions and job specifications. Recruiters also may supplement their knowledge about the job
requirements with discussion to the concern manager. Select the recruitment method depending on
the meeting with concern Department Head/ Manager. Either internal or external recruitment; if
internal recruitment (presents employees/referrals/temporary workers/contractual employees/
internee) or external recruitment. Select candidates and job offer to them. Satisfactory level of
recruitment is ended up.

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CHAPTER-8
SELECTION

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The size of the labor market, the image of the company, the place of posting, the nature of job, the
compensation package and a host of other factors influence the manner of aspirants are likely to
respond to the recruiting efforts of the company. Through the process of recruitment the company
tries to locate prospective employees and encourages them to apply for vacancies at various levels.
Recruiting, thus, provides a pool of applicants for selection. Selection is the process of choosing
the most suitable person out of the applicants. In the selection process, the candidates are divided in
to two parts Those who are suitable for job and those who are not .It involves rejection of those
applicant who are not fit for the job and so something it is described as negative process.

Definition
To select mean to choose. Selection is the process of picking individuals who have
relevant qualifications to fill jobs in an organization. The basic purpose is to choose
the individual who can most successfully perform the job from the pool of qualified
candidates.

Purpose
The purpose of selection is to pick up the most suitable candidate who would meet the
requirements of the job in an organization best, to find out which job applicant will be successful, if
hired. To meet this goal, the company obtains and assesses information about the applicants in
terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the profile
of candidates. The most suitable person is then picked up after eliminating the unsuitable applicants
through successive stages of selection process. How well an employee is matched to a job is very
important because it is directly affects the amount and quality of employees work. Any
mismatched in this regard can cost an organisation a great deal of money, time and trouble,
especially, in terms of training and operating costs.
In course of time, the employee may find the job distasteful and leave in frustration. He may even
circulate hot news and juicy bits of negative
information about the company, causing incalculable harm to the company in the long run.
Effective election, therefore, demands constant monitoring of the fit between people the job.

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Selection Process

Steps in Selection Process

1) Reception

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A company is known by the people it employs. In order to attract people with talents, skills and
experience a company has to create a favourable impression on the applicants right from the stage
of reception. Whoever meets the applicant initially should be tactful and able to extend help in a
friendly and courteous way. Employment possibilities must be presented honestly and clearly. If no
jobs are available at that point of time, the applicant may be asked to call back the personnel
department after some time.

2) Screening Interview
A preliminary interview is generally planned by large organizations to cut the cost of selection by
allowing only eligible candidates to go through the further stages in selection. A junior executive
from the Personnel Department may elicit responses from the applicants on important items
determining the suitability of an applicant for a job such as age, education, experience, pay
expectations, aptitude, location, choice etc. this courtesy interview as it is often called helps the
department screen out obvious misfits. If the department finds the candidate suitable, a prescribed
application form is given to the applicants to fill and submit.

3) Application Blank
Application blank or form is one of the most common methods used to collect information on the
various aspects of the applicants academic, social, demographic, work related background and
references. It is a brief history sheet of employees background, usually containing the following
things:
Personal data (address, sex, telephone number)
Marital data
Educational data
Employment Experience
Extra-curricular activities
. References and Recommendations.

4) Selection Testing
A test is a standardized, objective measure of a persons behavior, performance or attitude. It is
standardized because the way the tests is carried out, the environment in which the test is
administered and the way the individual scores are calculated- are uniformly applied. It is objective
in that it tries to measure individual differences in a scientific way giving very little room for
individual bias and interpretation.
Some of the commonly used employment tests are:
Intelligence tests
Aptitude tests
Personality tests
Achievement tests
Miscellaneous tests such as graphology, polygraph and honesty tests.

Intelligence Tests

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These are mental ability tests. They measure the incumbents learning ability and the ability to
understand instructions and make judgments. The basic objective of such test is to pick up
employees who are alert and quick at learning things so that they can be offered adequate training
to improve their skills for the benefit of the organization. These tests measure several abilities such
as memory, vocabulary, verbal fluency, numerical ability, perception etc. E.g. Standford-Benet test,
Benet Simon Test, The Wechsler Adult Intelligence Scale are example of standard intelligence test
Aptitude Test
Aptitude test measure an individuals potential to learn certain skills- clerical, mechanical,
mathematical, etc. These tests indicate whether or not an individual has the capabilities to learn a
given job quickly and efficiently. In order to recruit efficient office staff, aptitude tests are
necessary. An aptitude tests is always administered in combination with other tests like intelligence
and personality tests as it does not measure on-the-job-motivation

Personality Test
Of all test required for selection the personality tests have generated a lot of heat and
controversy. The definition of personality, methods of measuring personality factors and the
relationship between personality factors and actual job criteria has been the subject of much
discussion. Researchers have also questioned whether applicants answer all the items truthfully
or whether they try to respond in a socially desirable manner. Regardless of these objections,
many people still consider personality as an important component of job success. These tests
are of two types; Motor, involving physical manipulations of things (e.g., trade tests for
carpenters, electricians, plumbers) or Verbal, involving problem situation that are primarily
language-oriented or people oriented( e.g., situational tests for supervisory jobs). Since work
samples are miniature replicas of the actual job requirements, they are difficult to fake. They
offer concrete evidence of the proficiency of an applicant as against his ability to the job.
However, work sample tests are not cost effective and every candidate has to be tested
individually. It is not easy to develop work samples for each job. Moreover, it is not applicable
to all levels of the organization

Simulation Tests
Simulation exercise is a test which duplicates many of the activities and problems an employee
faces while at work. Such exercises are commonly used while hiring managers at various levels
in an organization. To assess the potential of a candidate for managerial positions assessment
canters are commonly used.

Assessment Centre
An assessment centre is an extended work sample. It uses procedures that incorporate group
and individual exercises. These exercises are designed to stimulate the type of work which the
candidate will be expected to do. Initially a small batch of applicants comes to the assessment
centre (a separate room). Their performance in the situational exercise is observed and
evaluated by a team of 6-8 assessors. The assessors judgment on each exercise are complied
and combined to have a summary rating for each candidate being assessed.

5) Selection Interview

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Face to face interview before final selection is an important step. It provides an opportunity to
have a better understanding of the candidate. Interview is an essential element of selection and no
selection procedure is complete without personal interview .There is different types of interviews
which may be arranged for selection. They can be-

a) Structured interview
b) Unstructured interview
c) Action interview
d) Stress interview

6) Medical Examination
Applicants who have crossed the above stages ate sent for a physical examination either to the
companys physician or to a medical officer approved for the purpose.

7) Reference Checks
Applicants are often required to gives names of persons to whom reference may be made about the
candidates character and suitability for the job. Two types of reference which source of
information about the general character of the applicants. Formal employer reference one who may
be able to speak about the applicants earlier work. The reference is too useful to judge the future
behaviour and the performance of the candidate.

8) Hiring decision
The line manager has to make the final decision now whether to select or reject a candidate
after soliciting the required information through different techniques discussed earlier. The line
manager has to take adequate care in taking the final decision because of economic, behavioural
and social implications of the selection decisions. A careless decision of rejecting a candidate
would impair the morale of the people and they suspect the selection procedure and the very basis
of selection in a particular organization.

Selection Criteria at TATA STEEL

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Selection Criteria at TATA STEEL


To select the appropriate candidate is very important because more attention is paid to the costs of
poor selection. The selection decision has always been important as the way for a company to
obtain the human resource that is appropriate for the job and company. TATA STEEL created
selection criteria to make the selection procedure easier.

Developing good selection criteria is a very useful technique for outlining the particular needs of
the department for a particular position. This process makes the selection procedure much easier,
specific, straight forwarder and less subjective. The three standards followed in TATA STEEL are
explained below:

Job Relatedness
Job relatedness means that every standard must be specifically connected to the work to be
performed on the job. All qualifications used to screen applicants in the hiring process are directly
related to the job being filled. If, for example, there is a requirement for a bachelor's degree, that
standard is shown directly related to the position. A candidate with a Ph.D. (in a field not directly
related to the position being filled) would not be more qualified than an applicant with a bachelor
degree in a related field. If specific knowledge of budget procedures is given as a requirement, the
position must require the application or use of that knowledge.

Measurability
Minimum qualifications and selection criteria is always measurable and demonstrable. That means
they can be measured objectively or clearly demonstrated by the applicant or the applicant's past
history. If a selection criterion called for "maturity" or "attitude," there might be many
interpretations of what those standards mean. Therefore it would be very difficult to measure the
applicant against those vague criteria. A standard such as "demonstrated ability to work effectively
with supervisors, peers, subordinates," would much more closely fit the requirement of
measurability and demonstrability. Demonstration of this agility is verified through references,
letters of recommendation, and checks with previous employers. Even a criterion such as "good
typist" is not as easily measurable as "ability to type 60 words a minute with only three errors."

Successful Completion of Work


Criteria listed as minimum qualifications or selection criteria must be necessary to perform the
work successfully. If a bachelor's degree is given as a requirement for the job, but it cannot be
demonstrated that the actual degree is necessary for the performance of the job, then a criterion like
bachelor's degree or equivalent" is used instead. Relevance and quality of education may be
considered in the selection process but must be shown to be necessary for the particular job at
hand.

Selection Tools

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Managing Director or The Chief Executive Officer has sole authority for any selection without any
competitive examination. Otherwise the following procedure is used for selection of employees in
TATA STEEL

Written Test
Written Test is only applicable for junior management, unionized and non-managerial contractual
positions. In exceptional cases where specific knowledge and skill areas are needed to be identified
and the interview is not sufficient enough to deal with, written test is applied as a selection tool.

IQ Test
IQ Test is applicable for all junior management and non-managerial contractual positions. HRD is
solely authorized and responsible for selecting the question patterns, venue and time of
examination.

Interview
Following is the standard interview process for junior management, managerial contractual,
unionized employees, and mid-level and senior management positions:
For junior management, non-managerial contractual and unionized employees, interview is
conducted in a single phase, but before offering employment, it requires approval from Head of the
Department and HR Manager. The interview board is consisting of a representative from HRD and
a representative from the concerned department.
For mid-level management, interview is conducted in two phases. For the first phase, interview
board consists of a minimum mid-level executive from HR and a senior executive from the
concerned department. For the final phase, the interview board consists of the HR Manager and
Concern Department Head.

Signing Authority
HR Manager has sole signing authority for any employment letter up to management grade
Additional Manager, non-management and all contractual employees. The Managing Director is
the sole authority to sign any employment letter for Manager and above.

Selection Parameters
The job constructs (dimensions) and the sub-dimensions, against which applicants are evaluated in
TATA STEEL for suitability and compatibility, are shown below.
Communication skills
Self motivation
Interpersonal / ability to sell self and ideas
Leadership potential and skills
Decision making abilities
Judgment abilities
Knowledge / technical skills
Management abilities

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Employment Checklist
The owing documents is obtained from the candidate prior to offering employment letter and
designated person from:
Application for Employment
Medical Declaration Form
Copy of last educational and where applicable, professional
One copy of passport size photograph
Curriculum Vitae

Organizations need to understand the skills and abilities that are required in a particular job and
determine which candidates have those capabilities. Interviews, reference checks, tests,
applications, and resume all these things help to identify differences among candidates. The
selection process in TATA STEEL is serrated below:

Job Analysis
A job analysis is used to identify job tasks and responsibilities. This is accomplished by collecting
information about the position; by interviewing workers, supervisors, and other company
employers; and by observing current employees. End products of a job analysis include job
analysis schedule, job specifications, and a job description.

Job Description

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From the job analysis and specifications, Employers develop a job description, which is used to
give applicants a feeling for what the job will be like. These are brief position narratives with a job
title, job summary, examples of job duties, supervisory relationships, and working conditions

Design Selection Process


Well-designed selection process yields information about a candidate's skills and weaknesses,
enabling the companys employer to make an informed choice.

Determining Selection Tools


Applicant skills are evaluated through applications, interviews, tests, reference checks, letters of
recommendation, and physicals.

Preparation for tests


At this point the employer converts important skill areas into specific questions or activities for the
application, interview, and tests. Also, questions for the reference check may be drawn up.

Providing Realistic Job Preview


The realistic job preview begins with the job announcement and position description. As
prospective applicants inquire about the job, farm managers provide applications, position
descriptions, and additional information.

Review Applicants' Bio-data


A properly designed application helps the farm check applicants' minimum skills as well as their
employment history.

Conduct tests
Many types of tests are used in TATA STEEL to measure an applicant's qualifications. They can
be classified as written, oral, or practical tests.

Check references
Reference checking involves obtaining information about applicants from previous employers.

Barriers to effective selection

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PERCEPTION
Our inability to understand others accurately is probably the most fundamental barrier to
selecting right candidate. Selection demands an individual or a group to assess and compare
the respective competencies of others, with the aim of choosing the right persons for the
jobs. But our views are highly personalized. We all perceive the world differently. Our
limited perceptual ability is obviously a stumbling block to the objective and rational
selection of people.

FAIRNESS
Fairness in selection requires that no individual should be discriminated against on the basis
of religion, region, race or gender. But the low number of women and other less privileged
sections of society in the middle and senior management positions and open discrimination
on the basis of age in job advertisements and in the selection process would suggest that all
the efforts to minimize inequity have not been very effective.

VALIDITY
Validity, as explained earlier, is a test that helps predict job performance of an incumbent.
A test that has been validated can differentiate between the employees who can perform
well and those who will not. However, a validated test does not predict job success
accurately. It can only increase possibility of success.

RELIABILITY
A reliable method is one which will produce consistent results when repeated in similar
situations. Like a validated test, a reliable test may fall to predict job performance with
precision.

PRESSURE
Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends, and peers
to select particular candidate. Candidates selected because of compulsions are obviously not
the right ones.

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Recruitment VS Selection
The recruitment the process of searching the candidates for employment and
stimulating them to apply for jobs in the organization WHEREAS selection
involves the series of steps by which the candidates are screened for
choosing the most suitable persons for vacant posts.

The basic purpose of recruitment is to create a talent pool of candidates to


enable the selection of best candidates for the organization, by attracting
more and more employees to apply in the organization WHEREAS the
basic purpose of selection process is to choose the right candidate to fill the
various positions in the organization.

Recruitment is a positive process i.e. encouraging more and more employees


to apply WHEREAS selection is a negative process as it involves rejection
of the unsuitable candidates.

Recruitment is concerned with tapping the sources of human resources


WHEREAS selection is concerned with selecting the most suitable
candidate through various interviews and tests.

There is no contract of recruitment established in recruitment WHEREAS


selection results in a contract of services between the employer and the
selected employee.

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CHAPTER-9
ON BOARDING AND INDUCTION
PROCESS

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ON BOARDING AND INDUCTION PROCESS

What is a New Employee On boarding Process?

According to ICIMS on boarding is the initial process of assimilating new hires into an
organization. It covers every step such as (but not limited to):
Preparations before the starting day
Introduction to tools used
Orientation of the office
Meeting the team
Evaluating your employees on boarding experience afterwards
And heres something you really want to know about: it increases productivity, makes the new hire
happier and saves you money. Just look at this image Stephen Bruce has prepared in his blog post
of on boarding success info graphics, showing the money wasted on ineffective on boarding.

Induction program
An induction program is the process used within many businesses to welcome new employees to
the company and prepare them for their new role.
Induction training should, according to TPI-theory, include development of theoretical and
practical skills, but also meet interaction needs that exist among the new employees.
An Induction Program can also include the safety training delivered to contractors before they are
permitted to enter a site or begin their work. It is usually focused on the particular safety issues of
an organization but will often include much of the general company information delivered to
employees.

Benefits
An induction program is an important process for bringing staff into an organization. It provides an
introduction to the working environment and the set-up of the employee within the organization.
The process will cover the employer and employee rights and the terms and conditions of
employment. As a priority the induction program must cover any legal and compliance
requirements for working at the company and pay attention to the health and safety of the new
employee.
An induction program is part of an organizations knowledge management process and is intended
to enable the new starter to become a useful, integrated member of the team, rather than being

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"thrown in at the deep end" without understanding how to do their job, or how their role fits in with
the rest of the company.
Good induction program can increase productivity and reduce short-term turnover of staff. These
programs can also play a critical role under the socialization to the

A typical induction program


A typical induction program will include at least some of the following:
Any legal requirements (for example in the, some Health and Safety training is obligatory)
Any regulatory requirements (for example in the banking sector certain forms need to be
completed)
Introduction to terms and conditions (for example, holiday entitlement, how to make
expense claims, etc.)
A basic introduction to the company, and how the particular department fits in.
A guided tour of the building/plant.
Completion of government requirements (for example in submission of a P45 or P60)
Set-up of payroll details
Introductions to key members of staff
Specific job-role training

Best practice
In order to fully benefit the company and employee, the induction programme should
be planned in advance. The timetable should be prepared, detailing the induction activities for a set
period of time (ideally at least a week) for the new employee, including a named member of staff
who will be responsible for each activity. This plan should be circulated to everyone involved in
the induction process, including the new starter. If possible it should be sent to the new starter in
advance, if not co-created with the new starter.
It is also considered best practice to assign a buddy to every new starter. If possible this should be a
person who the new starter will not be working with directly, but who can undertake some of the
tasks on the induction programme, as well as generally make the new employee feel welcome. (For
example, by ensuring they are included in any lunchtime social activities)

ON BOARDING

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On boarding, also known as organizational socialization refers to the mechanism through which
new employees acquire the necessary knowledge, skills, and behaviours to become effective
organizational members and insiders Tactics used in this process include formal meetings, lectures,
videos, printed materials, or computer-based orientations to introduce newcomers to their new jobs
and organizations. Research has demonstrated that these socialization techniques lead to positive
outcomes for new employees such as higher job satisfaction, better job performance,
greater organizational commitment, and reduction in occupational stress and intent to quit. These
outcomes are particularly important to an organization looking to retain a competitive advantage in
an increasingly mobile and globalized workforce. In the United States, for example, up to 25% of
workers are organizational newcomers engaged in an on-boarding process. The term Induction is
used instead in regions such as Australia, New Zealand, Canada, and parts of Europe. This is
known in some parts of the world as "training."

Antecedents of success
On-boarding is a multifaceted operation influenced by a number of factors pertaining to both the
individual newcomer and the organization. Researchers have separated these factors into three
broad categories: new employee characteristics, new employee behaviours, and organizational
efforts. New employee characteristics are individual differences across incoming workers, ranging
from personality traits to previous work experiences. New employee behaviours refer to the
specific actions carried out by newcomers as they take an active role in the socialization process.
Finally, organizational efforts help facilitate the process of acclimating a new worker to an
establishment through activities such as orientation or mentoring programs.

Executive on-boarding
Executive on-boarding is the application of general on-boarding principles to helping new
executives become productive members of an organization. Practically, executive on-boarding
involves acquiring, accommodating, assimilating and accelerating new executives. Proponents
emphasize the importance of making the most of the "honeymoon" stage of a hire, a period which
has been described by various sources as either the first 90 to 100 days or the first full year.
Effective on-boarding of new executives can be one of the most important contributions any hiring
manager, direct supervisor or human resources professional can make to long-term organizational
success, because executive on-boarding done right can improve productivity and executive
retention, and build shared corporate culture. A study of 20,000 searches revealed that 40 percent
of executives hired at the senior level are pushed out, fail, or quit within 18 months.
On-boarding may be especially valuable for externally recruited executives transitioning into
complex roles, because it may be difficult for those individuals to uncover personal, organizational,
and role risks in complicated situations when they don't have formal on-boarding assistance. On-

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boarding is also an essential tool for executives promoted into new roles and/or transferred from
one business unit to another.
It is often valuable to have new executives start some on-boarding activities in the "Fuzzy Front
End" even before their first day. This is one of ten steps executives can follow to accelerate their
on-boarding.

Position yourself for success


Choose how to engage the context and culture
Embrace and leverage the Fuzzy Front End before day one
Take control of day one: Make a powerful first impression
Drive action by activating and directing ongoing communication
Embed a strong burning imperative
Exploit key milestones to drive team performance
Over-invest in early wins to build team confidence
Secure adept people in the right roles and deal with the inevitable resistance
Evolve people, plans, and practices to capitalize on changing circumstances.

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INDUCTION PROCESS OF NEW


EMPLOYEE:

Notify inductee of induction

Provide inductee with


Staff handbook

Collect all required


documens

Take new staff orientation


tour of premises

Gather required
missing
information
Have all induction
process been
checked on YES
induction checklist?

Provide staff with


NO roster details

Start
employment

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CHAPTER-10
Training & development

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INTRODUCTION
A sound becomes music when trained person does it.
Every organization needs to have well adjusted trained and expertise people to perform the
activities that must be done. As job in todays dynamic organizations have become has increased.

In adequate job performance are a decline in productivity are changes


resulting out of the job redesigning or a technological break to require some type of
training and development efforts. As the job becomes more complex the
importance of employee development also increases.

In a rapid changing society, employees training and development is not an activity i.e. desirable but
also an activity that an organization must commit resource to if it is to maintain a viable and
knowledge work force.

Meaning
The team training refers to the programme that facilitated learning process, which results in
development .Training is a process of learning a sequence programmed behaviour. It is application
of knowledge it is gains people an awareness of the rules and procedure to guide their behaviour.
It attempts to improve their performance on the current job or prepare then for an intended job.

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DEFINATION
According to Flippo Training is the act of increase of the knowledge and skills of
an employee for doing a particular job.

According to Planty, McCord and Efferson Training is the continues, systematic


developments among all the levels of the employees of that knowledge and those
skills and attitudes which contributes to their welfare and that of the organization .

According to Littlefield Training is the process of increasing the skills and


knowledge of employees for the purpose of improving, individual and organization
performance.

IMPORTANCE OF TRAINING OF EMPLOYEES


No business firm has a choice of whether to train its employees or not the only choice is
that of the method of training. It has been proud that the absence of a systematic training
programme generally results higher training casts not only because if the considerable length ended
learning period but also because of the likely hood that the employees will not learn the best
operating methods.
Training of the employees is useful to both the employees and employers in several
ways

1) INCREASE THE PRODUCTIVITY


It improves works styles and the performance of the workers. Better skilled workers increase
quality and improve quality of output. Wastes are reduced planned training also reduce the learning
time with a consequent increase in productivity.

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2) IMPROVES SAFETY
More accidents are by the deficiencies in people than by deficiency in equipment and working
condition. Personal deficiencies may arise due to luck of skills or ineptitude. Proper Training with
emphasis upon selected safety points, reduce accidents it makes the worker safety points, reduce
accidents it makes the worker safety conscious. It enables the works to handle the machines more
carefully and reduces chances of accidents. It

3) REDUCES SUPERVISION
Untrained employers are a source of constant worry to the immediate supervision, close
supervision is not only the drain on the time and talents of the supervisors but also a strain on the
emotions of the operating supervision but independence is not possible unless the employees are
adequately trained.

4) INCREASE ORGANIZATIONAL STABILITY AND FLEXIBILITY


Trained employees add considerable value to an organization by increasing its stability and
flexibility is the ability of an organization to lose personnel and yet continue to operate effectively,
this require the existence of replacement will have to be trained in any event but systematic training
under the tutelage of competent leadership is more desirable than self-training under emergency
condition

5) ENSURES BETTER PLACEMENT


Training of employees help in spotting out promising men and in locating mistakes. The promising
trainees are discovered the basis of their quick understanding of the instruction.

6) DEVELOPMENTS AND PROMOTION OF EMPLOYEES


Training of employees improves the skills of the workers and they advance in their jobs. Their
increased competence secures them promotion and superior jobs. It leads to the self-development
of the workers. They become available asset to the business.

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7) BOOSTS MORAL
Training of employees makes the worker perfect. He begins to do this work with greater
proficiency from his job. Increased ability and capacity in doing the work ensures him with greater
security and reduces labour absenteeism and turnover. It improves the morale of the workers.
Training and development is beneficial to the both employers and employers. Besides
increasing the economy and efficiency of the business, it improves the ability of workers.
Training of employees increases productivity and improves the performance of the
employees. It provides them security against unemployment.

Training increases the quality and quantity of output by improving skills and improves
profitability of the business.

Training increases reduces mistakes and accidents arising from human ignorance.
Training reduces mistakes in eliminating wastage.

Training broadens the knowledge of the employees regarding his job. He can prove to be a
better worker.

Training improves morale and increases the job satisfaction of the employees.

Training leads to the development of workers and enables then to earn promotion within the
organization or better outside organization.
Training helps in improving the organization stability and flexibility in the economy of the
country.

LIMITATIONS
Training may stifle initiatives and self reliance and increases the dependence of the
workers on external assistance.
Highly competent teachers may not always be available to import training to worker.

Need For Training


To increase productivity: Instructions can help employees increase their level of
performance. Increased human performance often directly leads to operational productivity
and increased company profits.

To improve Quality: Quality increases may be in relation to a company product or service


in reference to the intangible organizational employment atmosphere.

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To help a company to fulfill its personal needs: Organizational that have a good internal
educational program will have to make less manpower changes and adjustment in the event
of sudden personnel alterations.

To improve Organizational Climate: An endless chain of positive reactions results from a


well-planned training program. Increased morale may be due to many factors, but one of
the important of them is the current state of the organizations educational endeavor.

To improve health and safety: Proper training can help industrial accidents. A super work
environment leads to more stable mental attitudes in part of the employees.

Obsolescence Prevention: Training development program foster the initiative and creativity
of the employees and helps to prevent manpower obsolescence, which may be due to age
temperament or motivation.

Steps in training program


1) Discovering or, identifying the training needs
2) Getting ready for the job
3) Preparation of the learner
4) Presentation of operation and knowledge
5) Performance try-out
Follow up and evaluation of the program

TRAINING METHODS / TECHNIQUES

The forms and types of employees training method are inter-related. It is difficult, if not
impossible is more useful than the other

The best technique for one situation may not be best for different group or tasks; care must
be used in adopting the techniques/methods to the learner and the job.

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On-the-job training (JOT)

Virtually every employee, from the clerk to company president gets some on-the-job
Training when he joins firm. That is way William Tracy calls, the most common the most widely
used and accepted or the most necessary method of training employees the skills essential for
acceptable for job performance

Employees are coached and instructed by skilled co workers by supervisors, by the special
training instructors, they learn the job by observation and practice as well as occasionally handing
it.
It is learning by doing and it is most useful for jobs that are either difficult to stimulator can be
learned quickly by watching and doing.

There are variety of OJT methods, Such as coaching or under study job rotation and
special assignments. Under coaching or under study method (which is also known as Internship
and apprenticeship method) the Employee is trained on the job by his immediate superior.

On the job training methods are as follows

1) Job Instruction Training (JIT)


2) Vestibule training (or training centre training)
3) Training by experienced workmen
4) Training by supervisors
5) Simulation

Off-the-Job-Methods

Under this method of Training, trainee is separated from the job situation and his attention
is focused upon learning the material related to his future job performance. Since the trainee is not
distracted by job requirements, he can

place his entire concentration learning by job rather than spending his time in performing it.

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Off the job training methods are as follows:


1) Role-playing
2) Lecture Methods
3) Conference or Discussions
4) Programmed instruction

Training and Development Today and Tomorrow


We are entering a world where the old rules no longer apply. The opening quote in the bestseller
Rising Sun by Michael Crichton (1992) sums up how rapidly the future is changing and becoming
unpredictable. Given the commitment to the continuous changes taking place in all types of
organization, like their host human resource (HR) functions, change will the only certainty for
training functions and those responsible for training and development initiatives in their
organizations. Training functions will have to run differently as organizations expect more
evidence that they are contributing to organizations expect more evidence that they are contributing
to traditionally been done, many have responded by calling for redefining the mission of training,
renaming training (i.e., witness the recent movement to referring to training performance
consultants Robinson & Robinson 1995), training altogether because it is not cost-effective ( see
Furnham 1997 for a more detailed discussion of this last point).

DEFINATION
According to Edwin B. Flippo

Training is an act of increasing the knowledge skill of an employee for doing


a particular job.

INTRODUCTION TO TRAINING IN TATA STEEL:-


TATA STEEL like any other organization too followed traditional methods of Training like the
conventional method of picking up a few programmes and then short listing it to various fields like
General Management, Behavioural science, Communication skills, Team building, ISO 9000,
TQM, Improving Quality of life, MS Office etc., Based on the short listed programmes an annual
calendar was prepared and announced. But this traditional method had many drawbacks as the
following:

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Having planned and organized programmes the managers had to wait anxiously for
nominations.
The managers also faced problems in getting nominations.
People who could be spared would be rushed to the programmes and not the needy.

TATA STEEL Training Framework


Training Practices

Training Technical Skills


Instruments Training
Training Needs
Analysis

Infrastructure Quality Training

Training Soft Skills Training


Administration

Having the proper training instrument, infrastructure and administration in place TATA STEEL
outlines its training practice which helps in addressing the training needs of its employees. We
believe in the overall development of an individual and hence equal and deliver the best in any
given circumstance.

Training Practices
Identifying the Training needs by focusing on future efficiencies and the business
requirement.

Familiarization Program for the new joiners (Experienced level people) with a dedicated
team of professionals on a monthly basis.

Comprehensive Induction Program for the New Joinees (Freshers)

Showing safety measures and rules which are going to follow inside the plant.

Technical Training Programs for the engineers based on the Project requirement.

Creation of a skill database.

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Training Need Analysis


Skill Gap Bridging: Training in related skills/Case tools.

Re-skilling requirements: For future enhancement of the employee knowledge and the
needs of the markets.

Skill Up-gradation: Advanced training in a particular skill or training on advanced versions


of a product/application.

Skill Broadening: Multi-Skilling

Behavioural & Personal Development Training

Role Based: Project Management, Quality systems, etc.

Technical Training
Training is provided by in-house experts or certified trainers in areas related to machine and tools,
Programming Language, Applications/Software Packages, Networking, Hardware Platforms,
Systems Administration etc, depending on the skills required by the employee.

Soft skills Training


Personal and behavioural development of the employees is a major emphasis of the management
and regular training in Communication Skill, Leadership, time and Stress management, Etiquette,
team building is provided to the employees. This not only helps in the employees developing an
overall personality but also helps our employees in adapting to the requirements of the any project.

Training Administration

TATA STEEL has Training Centres supervised by Training Centre Head with in-house facility
augmented by external faculty. It is ensured that Project Managers are also part of the faculty
imparting Project Management training.

Training Infrastructure

We have dedicated Conference & Training Rooms for the Training Depts. in each of the
development Centres. These are equipped with the latest multimedia and interactive training tools.
We also make use of CD-based training modules & associated software for increasing the reach of
training base. Our Libraries are equipped with the latest books, journals, magazines, CDs on a
wide variety of topics ranging from IT to Strategic Management.

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OBJECTIVES OF TRAINING

To recommend structures and other training programmes or seminars to the


executives and non-executives to meet the challenges in their work area.

The contents and duration of training programmes both internal/external should be


designed optimally so as to improve the potential of the individuals to cope with
future business trends of the company.
Each structures programmes should have inbuilt module for feedback, evaluation
and action plan for implementation and provide for follow-up and review
mechanism so as to ensure accountability.

IMPORTANCE OF TRAINGING AT TATA STEEL


TATA STEEL has been giving a lot of importance to Training and Development of its employees
and executives by providing opportunities for them to get trained throughout their career not only
in their chosen technical field but also in other fields like General Management, Computer skills,
Communication skills, Behavioural Science.

To full fill the needs of technical programmes with specific requirements a committee of advisors
from Technical departments was formed. The committee was made responsible for deciding the
content of each programmes add the subject expert.

Mission
To enhance the competency capital of TS (TATA STEEL), through co-creation of
learning experience continuously and consistently, so as to facilitate delivery of
world-class human capability to the customer, enabling the company to achieve its
vision."

Initial learning program (ILP)


Continuous Learning Program (CLP)
Leadership Development Program (LDP)
Foreign language Initiative (FLI)

Workplace Learning

Computer Based Training (CBT)


programs, such as Skill Port (web-based), are available to all associates.
Continuing Education Programs are conducted every month to address training requirement and to
create awareness of new and emerging technologies Tata Steel along with the technology alliance
partners, conducted training sessions to keep associates on par with the technological trends in the
industry.

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CHAPTER - 11
Leave Policy at TATA
STEEL

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Leave Policy
Leave Year
Leave year in Tata Steel Ltd is Calendar Year i.e. from 1st-Jan to 31-Dec every year.

Casual Leave / Festival Leave


All officers are entitled to Casual/Festival leave with pay in each calendar year; it accrues on 1st
January every year.
Cannot be carried forward to the following year and will lapse if not availed of during the calendar
year.
Can be combined with any other leave.
Cannot be enchased, Paid holidays & weekly off days falling within the leave period will be
counted as leave.
E.g. CL from Saturday to Monday will be treated as 3 day CL even though Sunday is a weekly off
day. Officers on leave without pay for a full calendar year are not eligible for CL for that year

Privilege Leave
Officers are eligible for 30 days privilege leave for every completed year of service, which is
credited on 1st Jan of the following year.
Can be accumulated up to 300 days
Can be combined with any other leave
Is en-cashable only at the time of separation

Officers are entitled to Pro-rata Privilege Leave subject to the following conditions:
The Management may, at its discretion, allow an officer pro-rata leave with pay on the
ground of illness on production of medical certificate to the Company's satisfaction to cover
the period of sickness, if no sick leave is due.
During the last year of service before retirement or in case of death while in service, an
officer will be, entitled to proportionate privilege leave for the part of the year of service
2.5 days per month of service. In case, the service period is six months or more, privilege
leave for the complete year shall accrue for all separation cases except resignation.
New joinees will be granted pro-rata PL for sickness to cover the period of sickness, at
managements discretion, provided they have no other leave left.

Additional Privilege Leave for lady Officers (APL)


Lady executives are entitled for Additional Privilege Leave of 15 days per year. It can be utilized,
if their child under the age of 5 years is sick and needs full time attention of mother.
15 days of Additional Privilege Leave accrues every year on 1st January to all lady officers
with children who are 5 years of age or below.
The 15 days APL is on full pay basis, but cannot be accumulated or en-cashed.
The leave can be taken in parts or at a time, as the situation demands.
At the time of availing APL, the officer should have a balance of APL to her credit for the
year.

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APL up to 2 days can be self-certified by the Officer and hence no medical certificate is
required.
If the period of APL is more than 2 days, lady Officer should produce the childs medical
book or prescription confirming that the child was sick.

Sick Leave
All officers are entitled to sick leave on half pay or on full pay in a calendar year as per the table,
on production of an appropriate medical certificate.
Newly joined officers are entitled to 10 days sick leave on full day for the 1st year of service. The
fitness will have to be certified by the Company doctors / certified medical practitioners, wherever
there is no Company hospital. Self-Certified Sick Leave will be applicable on completion of one
year of service.
Sick leave may be accumulated up to 180 days on half pay and 90 days on full pay.
Sick leave is not en-cashable.
Note
For the officers who complete one year (1st Year) of service in the middle of the year - For every
completed month of service in the previous calendar year he is given 1.25 days sick leave in the
following year which accrues on the date when the first year is completed.
There are times even for minor illness officers are required to visit hospital for being declared
medically unfit so that they can avail of the sick leave. In order to make it convenient, officers can
now avail of the sick leave on self-certification for a maximum period of 3 days at a stretch on full
pay basis, not more than 3 times a year. The period of sickness will be adjusted from the accrued
sick leave of the officer as per rules. Officers availing of this facility must keep their Departmental
head informed about such absence.

Special Leave
Grant of special leave will be at the discretion of management for the following reasons:

Professional and Academic Meetings and Conferences


For the President and the Secretary attending the official meetings of the Executive
Committee or Sub-Committee of all Indian, Asian or international bodies within India.

Blood Donation
One days special leave is granted for donating blood only at TMH and Jamshedpur Blood
Bank. Normally, employees who are on duty are not permitted to go to donate blood but in
exceptional circumstances they may be allowed to go for blood donation while on duty. In
such cases they are not required to come for the balance of their shift/day, and are granted
special leave for the following day also.

Civil Defence
To undergo Civil Defence Training, provided his attendance is certified by the Civil
Defence authorities.

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Court of Law
To attend a Court of Law as witness for prosecution in a police case for a period not
exceeding three full days or six half days in a particular case, provided his attendance is
supported by a certificate issued by the court.

To attend a Court of Law in connection with the assessment of the employees own
disability under the Workmens Compensation Act, for the days they are required to be
present in Court.

Infectious diseases
For the period of unfitness for work in the case of members of the nursing staff of TMH
when the DMS is satisfied that they have contacted an infectious disease due to direct
exposure to it during the course of their duties in the wards.

Medical Check-up of officers


To undergo medical check-up at TMH in the case of officers for one day.

Professional meetings or conferences


For taking part in professional, educational, scientific and co-operative meetings or
conferences as delegates for a period not exceeding 7 days in a year exclusive of travel
time.4

Sports and games


Employees participating in recognized games and sports in the disciplines in which Steel
Plants Sports Board holds tournaments and the Company holds inter-divisional tournaments
are granted special leave.

Territorial Army
To attend military training for a period not exceeding 14 days in a calendar year.
To attend interviews outside Jamshedpur for recruitment to the Territorial army.
For unfitness as a result of an accident while under voluntary attachment training with the
Territorial army.
For unfitness as a result of vaccination/inoculation under orders of army authorities for a
period not exceeding 2 days.
Special leave will be granted on certification by the appropriate army authorities

Maternity Leave
As per existing provisions of Maternity Benefit Act, 1961, a woman employee (temporary or
permanent),who has worked for a period of not less than 80 days in the 12 months immediately
preceding the date offer expected delivery, is entitled to Maternity leave with pay for total period of
twelve weeks (26 weeks)inclusive of postnatal leave of not less than six weeks duration and leave
of maximum period of one month, in addition to the period of 12 weeks leave allowed, for illness

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certified by a registered medical practitioner, arising out of pregnancy, delivery, premature birth of
child or miscarriage.
It has been decided to increase the Maternity leave with pay for a total period of 18 weeks from
existing
12 weeks w.e.f 1st August, 2014. Other conditions including eligibility for maternity leave and
leave of maximum period of one month, in addition to the revised period of 18 weeks Maternity
leave allowed, for illness certified by a registered medical practitioner, arising out of pregnancy,
delivery, premature birth of child or miscarriage remains the same.
The Maternity Leave will be forfeited if she accepts employment during the period of this leave.
In addition to the above, up to maximum of four months leave on medical certificate to a female
officer who is unable to resume duty on the expiry of maternity leave.
Once the lady officer joins back from maternity leave she is allowed in course of her daily work
schedule two breaks of 15 minutes duration for nursing the child until the child attains the age of
fifteen months.

Leave without pay


In addition to whatever leave may be due to officers, they may be granted, subject to discretion of
management, leave without pay in the following cases:

General
Up to a maximum of two weeks after completion of one years service.
Up to a maximum of four weeks after completion of two years service.
Up to a maximum of six weeks after completion of three years service.

Medical
Up to a maximum of four months on medical certificate to lady officers who are unable to
resume duty on the expiry of maternity leave.
Up to a maximum of eighteen months to officers suffering from leprosy or tuberculosis or
cancer.
Up to a maximum of one year in other cases.

Relocation Leave for New Appointees


Relocation Leave for maximum of 7 (Seven) days, including, travel time for transfer of household
goods from other location to place of posting.
Should be availed of in one stretch only, to a maximum of 7 days.
Can also be availed in conjunction with Casual leave.
Is valid for one year from date of joining.
Cannot be carried forward to the following year and will lapse if not availed of within one
year from the date of joining.
Paid holidays & weekly off days falling within the leave period will be counted as leave.
E.g.
(Relocation Leave from Saturday to Monday will be treated as 3 days Relocation Leave even
though Sunday is a weekly off day.)

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Cannot be en-cashed.

Convocation Leave
All freshers who have been recruited through campus selection, during first year of service, can
avail Convocation Leave for maximum of 5 (five) days including travel time for attending
Convocation. The officer needs to present intimation from the campus for the convocation for grant
of this leave. The convocation leave for some of the campus are given in the table. As regards other
campuses the leave duration will be determined based on the location of the campus.

Full Holidays
All employees are entitled to a holiday with pay on Republic Day, Founders Day, May Day,
Independence Day and Mahatma Gandhis Birthday provided their services can be spared. Those
employees who are required to be on duty on such holidays will be eligible for an additional days
holiday with pay in lieu thereof.
If any of the above holidays fall on the off day of an employee and such an employee is called to
work by the departmental head on that day, he will be entitled to an additional days holiday with
pay in addition to the compensatory day of rest. The additional days holiday will have to be
availed of before the end of the calendar year and can be prefixed of suffixed to ordinary leave with
pay.

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Chapter -12
Promotion & Transfer /
Relocation
Policy at TATA STEEL

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INTRODUCTION
TSL (KPO) has a vision to emerge as an excellent organization in the comity of steel producers of
the country. This calls for dynamic organization structure responding swiftly and flexibly to the
fast changing business environment. In promoting and sustaining such a dynamic structure
TSL(KPO) is committed to provide professional satisfaction to its executives through clear cut
responsibility and accountability. In this background it is essential to have a well laid out policy
framework which integrates individual aspirations for growth with the functional needs of the
organization and fosters a congenial working environment to build up synergy in the organization.

OBJECTIVES
To man functional positions in the company with competent personnel having growth
potential
To infuse a sense of competitiveness amongst the executives to excel in their performance
To link the career growth of executives with their performance
To provide positional growth with specific responsibility and definite accountability
To strengthen front line executives base by broad binding of the grades
To promote and sustain a flatter structure by providing growth without building up
hierarchy
To spell out clearly the principles which govern the system of promotion of executives in
the company

SCOPE
This policy and rules shall cover all promotions within the executive posts and will be
applicable to all regular executives of the company(except to the extent expressly excluded
in this policy and rules) including outstation units, offices and mines
Persons appointed for a limited tenure on ad-hoc basis, superannuated persons reappointed
in the company and executives engaged on contract or temporary basis shall not be covered
under this policy and rules
This policy and rules shall not cover promotions from supervisory cadre to executive cadre
and for growth thereafter, which are being governed by a separate policy.

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PROMOTION POLICY FOR EXECUTIVES (OPR) IN TATA STEEL, KPO

LEVEL Experience/Procedure

IL1(VICE PRESIDENT LEVEL) Decided by the Managing director of the company

IL2(CHIEF EXECUTIVE/GENERAL MANAGER) Decided by the V.P and M.D

IL3(HEAD) This is decided by the higher level (i.e by V.P and M.D)
may be from internal source (from the appraisal done
at the Sr. Mgr. level) or from external sources by
analyzing the performance at previous organization.
IL4(SENIOR MANAGER) IL5 executives get eligible for this post with minimum 2
years of experience
IL5(MANAGER) IL6 executives get eligible for promotion with minimum
3 years of experience and good appraisal grades.
IL6(ASST. MANAGER) External/Internal recruitment

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Transfer / Relocation Policy


The Organizations requirement at times results in Transfer / Relocation of Officers from one
location to another within India. To provide more ease to the Officers and their families on such
occasions, the Transfer / Relocation policy is as follows:

1. Familiarization visit
Familiarization visit can be availed for the purpose of house search / admission of child in
school.
Officers can undertake visit to the new place of posting along with spouse and dependent
children for familiarization within 3 months of transfer to the new location of posting.
The period of stay will be for a maximum of 3 days (excluding travel time) and the total
period of visit including travel time will be treated as on Company's Business.
A maximum of two rooms in Company's Guest House will be provided during this visit.
Wherever
Guest Houses are available. The Officers should plan their visit according to its availability.
Stay in Hotels will be allowed only in locations where Guest Houses are not available.
Officers will be guided by travel rules for Officers on Company's Business.
1.6. In case of stay at Company's owned Guest House, the Officers, their spouse and
dependent children will be entitled to free boarding and lodging, and the Officer and his
spouse will be paid
Incidental charges only.
1.7. In case of Officer staying along with spouse and dependent children in Hotel / Guest
House (not owned by the Company), DA and Incidental charges for self and spouse will be
paid.
1.8. The travel entitlement for spouse and dependent children will be same as that of the
Officer.
The expenses will be charged to the new department

At the time of joining duty at New Location


Officers may stay in Company's Guest House / Hotel for a maximum period of 20 days.
Dependent parents may also accompany the Officer. A maximum of 2 rooms will be
provided.
The following will be applicable during this stay:
In case of stay at Company's owned Guest House, the Officers, their spouse, dependent
children and dependent parents will be entitled to free boarding and lodging. The Officer
and his spouse will be paid Incidental charges only.

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In case of Officer staying along with spouse, dependent children and dependent parents in
Hotel / Guest House (not owned by the Company), DA and Incidental charges for self and
spouse will be paid.
If the stay needs to be extended beyond 20 days, the Officer will have to take an approval
from VP (HRM) mentioning the reason of extension. During the extended period of stay in
Guest House / Hotel, the Officer will have to pay for food at applicable rates for self and
family members. In such cases, the Officer and his/her family members will not be eligible
to receive DA/Incidental Charges.4
Officers will be provided conveyance facilities for a maximum period of 20 days as per
entitlement defined in travel rules for Officers on Company's Business.
The travel entitlement for spouse, dependent children and dependent parents will be same
as that of the Officer.
The expenses will be charged to the new department.

Transportation Expenses

Officers on transfer from one location to another are eligible for reimbursement of
expenses incurred in transporting their household effects by goods train at owners risk,
without any limit on weight.
Officers are allowed to transport / move their household effects including personal car by
road. In addition, insurance premium for a maximum value of 5 Lakhs for household
effects including personal car will be reimbursed.

Winding up & settling down

The period taken for winding and settling down will be for a maximum of 5 days
(excluding travel time) and the total period of visit including travel time will be treated as
on Company's Business.
This facility is extended to the Officer only.
Officer will be eligible for Settling Allowance as per entitlement to meet sundry expenses.

Dual Establishment
To provide clarity and streamline the approval process of retention of accommodation at the
previous location of posting, the following guidelines will be applicable:
5.1. Officers on transfer from one location to another can retain their existing accommodation
(Company-owned / Company-leased / Self-leased / VHRA / HRA) for a maximum period of 3
months.
5.2. Occupation of the accommodation beyond three months without prior approval of the
Management will be treated as unauthorized and the Officer will be charged rent@1,000/-per day
along with other charges as applicable.
5.3. Retention of Company-owned / Company-leased / Self-leased / VHRA / HRA from 3 months
to 1 year: Approval of VP (HRM) is required based on the merit of reasons given by the Officer. If
this is approved, the Officer will be provided with bachelor accommodation in his / her new
location5of posting, if available for which stay charges of 100/- per day will be recovered from

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the Officer and any other additional charges, as applicable, will have to be borne by the Officer
(This does not include fooding expenses). In case of unavailability of bachelor accommodation,
Officer will have to make own arrangements of his / her stay.
5.4. Medical facilities for dependent family members would continue at the previous location
ofposting for the period for which retention of COA / CLA / SLA / VHRA / HRA is approved.

6. Brokerage
Officers may go in for a rental accommodation (HRA as well as Company Leased
Accommodation). They will be reimbursed brokerage equal to maximum of one month rent

7. House Deposit
House deposit, where applicable, will be made directly by the company to the landlord.

8. Reimbursement of Re-Registration charges and Road Tax on personal


Vehicles

Officers on transfer to a different State need to have their vehicles Re-registered and also pay Road
Tax in the new State. While in case of Company provided perk cars, this payment is taken care of
by the Company, for personal vehicles the amount has to be borne by the Officer. To assist the
Officer in such cases, the following provision is being introduced in cases of transfer as under:
Officers in Levels IL2 & IL3 who are on cash option
All Officers in Levels IL4, IL5, IL6
Applicable to only one vehicle per Officer which should be in the Officers name and
against which he/she is drawing Conveyance / Reimbursement of Car Running expenses.
The Company will reimburse the Re-registration charges and Road tax (based on actual) paid by
the Officer for his/her personal vehicle in the new State. This will be done on submission of self-
certified copy of the money receipt/relevant document. The amount reimbursed will be subject to
tax as per IT rules.
Officer can claim reimbursement within 1 year of shifting the family to the new location of
posting.6

Subsequent movement to another State Undertaking


Officers claiming reimbursement as above may subsequently get transferred to a different State
where the process will have to be repeated. In such cases, States have the provision of refunding a
part of the tax paid (in the original State) for which the Officer would have to apply to the
concerned RTO. Proof of having done this would need to be submitted by the Officer to his/her
new Accounting location before claiming reimbursement for Re-registration charges and tax paid
in the new State where he/she is posted.
Further, whenever the refund is received, the amount will have to be returned by the Officer to the
Company.

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9. Reimbursement of Childrens School Admission fees


Officer will be reimbursed admission related expenses based on actual subject to a maximum of1
lakh per child upto two children. It may be noted that admission related expenses mean charges like
admission fees, donations backed by receipts, charges towards building fund/ amalgamation fund.
Any other similar payment made to the school backed by receipt which is admission related will
have to be self-certified by the Officer. Expenses with regard to security deposits, tuition fees and
boarding charges will not be eligible for such reimbursements.
In case the Officer resigns from the Company within 3 years of claiming the amount towards the
above reimbursement, the same will be deducted from the settlement dues.
Officer can claim reimbursement within 1 year of admission of child at location where the Officer
is transferred.

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CHAPTER-13
RESIGNATION AND
MAJOR
MISCONDUCT

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RESIGNATION
If a regular/permanent employee intends to leave the service of tendering resignation, he shall
have to give one months notice in writing, otherwise, he shall have to deposit one months notice
in writing, otherwise, he shall have to deposit one months salary or salary for the period by which
the notice falls short of one month (for this purpose salary will include basic pay +all other
allowance admissible thereon, experts House Rent/Rural allowance, Conveyance Allowance and
Medical Allowance.)24 hours notice shall be required for tendering resignation during probation
period.

The resignation tendered by the employee may be accepted by the appointing authority.

SUPERANNUATION / RETIREMENT
Every employee shall be superannuated on the afternoon of the last day of the month in
which he attains the age of 58 years.

Not with standing anything contained in Rule 17.1 above, an employee may be permitted
at his own request to retire room the service attaining the age of 50 years or after 20 years
of service at any time by the appointing authority provided three months notice.

A thing contained in rule 17.1 and 17.2 above, the appointing authority shall, if it is of the
opinion after reviewing the entire service record of an employee that he is not fit to be
retained in the service and that it is in the interest of the Life Insurance.

Major misconduct
Without prejudice to the generality of the term, misconduct, the following acts of communion
or omission shall, interlaid, constitute specific acts of Major Misconduct on the part of the

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employee:

Breach or habitual breach of any standing instructions or rules regulations, conditions of


the appointment letter or orders issued by the establishment from time to time.
Acting in any manner prejudicial to the inertest or reputation of the establishment,
disregard of any operation & maintenance.

Negligence or habitual negligence of duty or laziness or in efficiency or incompetence or


malingering or neglect of work or carelessness in work, poor or unsatisfactory
performance intentionally. Bring narcotic, liquor or other intoxicating things in premises
or reporting.

Doing private or personal work during working hours, engaging in any other trade,
business profession, service of the Establishment without while in the competent authority.

PUNISHMENTS FOR MAJOR MISCONDUCTS


One or more of the following punishments may be imposed on an employee who is found guilty
of a major misconduct, namely:-

Stoppage of one or more annual grade increments of pay with or without cumulative effect
Recovery of damages or the amount of loss suffered by the Establishment on account of
misconduct of the employee.
Demotion to the Lower post.
Termination of service.
Dismissal from service.

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PROCEDURE FOR AWRDING PUNISHMENT FOR ACTS OF


MINOR MISCONDUTS:
Where an allegation of minor misconduct is alleged against an employee, he shall be
called upon to explain his position.

PROCEDURE OF ENQUIRY AND PUNISHMENT FOR MAJOR


MISCONDUCTS.
An employee against whom a major misconduct is alleged shall be served with a charge Sheet by
the competent authority clearly setting forth the imputation of mis conduct and calling upon the
employee to submit his explanation within a period of 7 days, provided that such time may be
extended for a maximum period of 7 days , after the expiry of initial period of 7 days if sufficient
reasons are advised by the employee for seeking an extension, for which purpose a written request
will have to be made him.
In case where the employee admits in writing the charge(s) leveled against him, it shall be
open to the competent authority to award one or more of the punishments provided in
these rules without holding any enquiry.
In the case of the explanation submitted by the employee is found to be satisfactory, the
matter will be dropped.

In case the employee fails to submit his explanation within the prescribed time or extended
time allowed to him or where the extended time allowed to him or where the explanation
submitted by him is not found satisfactory, the competent authority shall appoint a person
to hold an enquire and issue ordered in this regards specifying there in the names of the
Enquiry officers and the Presenting officers.

The accused employee shall be entitled to the reimbursement of actual rail/bus fare only besides
conveys undertaken by him for inspection of relevant records and attending the enquiry
proceedings at a station other than his HQs.

The enquiry officer shall on the conclusion of the enquiry, submit his report in writing giving his
findings with the reasons therefore to the authority.

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APPEAL AGAINST PUNISHMENT


An appeal against the orders of the competent authority imposing punishment, under
rules 29 and 30 of these riles shall lie to the board of directors of the company. The board
shall constitute a committee consisting of chairman, nominee of the company, nominee of
RCs and nominee of NDDB to examine the appeal on the basis of records.
An appeal shall be filled within a period of 30 days from the data on which the appellant
receives a copy of the order appealed against or is deemed to have received.
The appellate authority may after consideration of the case and on recording sufficient
reasons yet aside, reduce, confirm or enhance the punishment and its decides to enhance
the punishment, the accused employee shall be given an opportunity to show cause against
such enhancement.

SUSPENSION
In a case where it is considered that the employee be suspended pending enquiry, the competent
authority may suspend the employee pending issues of a charge sheet or subsequent domestic
enquiry or till the final orders are passed on the enquiry case. Where criminal proceeding against
an employee in respect of any offence involving moral turpitude is pending and the competent
authority is satisfied that it is necessary/desirable to place the employee under suspension, the
competition.

SUBSISTENCE ALLOWANCE DURING SUSPENSION


An employee shall be paid during the period of suspension subsistence Allowance @ 50%
of the wages to which the employee was entitled to immediately preceding the date of such
suspension for the first 90 days of suspension and 75% of such wages for the remaining
period of suspension.
The payment of subsistence Allowance to the suspended employee shall be subject to his
processing a certificate every month about his having not taken up any other employment
and his having remained at the head quarters.

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CHAPTER-14
SCHCHME OFFERD BY
TATA STEEL

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EARLY SEPARATION SCHEME


SCOPE
The following Early Separation Scheme will be in operation with respect of the following
unionised category of employees of Jamshedpur Organization (including Tubes Division).
Employees who have been rendered surplus but were not offered ESS earlier and those who
may be rendered surplus during the operation of this Scheme;
Employees who were eligible, but did not avail of ESS offered by the Company earlier.
All permanent employees in the ministerial category; and other permanent employees on a
case-to-case basis.
Those under a contractual obligation, having signed any Bond to serve the Company, if allowed to
avail of this Scheme, will be required to pay the full amount under the Bond due to the Company.
It would be entirely at the discretion of the Management to accept or reject an application for early
separation under this Scheme. In no case, the vacancy caused by acceptance of any application
under the Scheme will be filled up.

DEFINITION

Pension period
The period begins on ones separation from employment and shall continue to be payable till his /
her attaining the age of superannuation, i.e. 60 years as per Companys record.

Salary
The expression salary shall mean the Basic pay plus Dearness Allowance, as applicable, but shall
not include any other allowances, benefits and / or perquisites whatsoever.

BENEFITS UNDER THE SCHEME


MONTHLY PENSION
A Permanent employees belonging to categories mentioned in Clause I (i, III
and iv) above:
Employees separating before crossing the age of 45 years will be entitled to get a monthly
pension equivalent to the last salary drawn by them till their attaining the age of
superannuation (60 years).
Employees separating after crossing the age of 45 years will be entitled to get a monthly
pension equivalent to 1.20 times of their last drawn salary till their attaining the age of
Superannuation(60 years).

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Those who were rendered surplus and were eligible but did not avail of ESS offered by the
Co.
Earlier [(Ref. Clause I (ii)] will also be entitled, as a special case, to get a monthly pension as per
rates mentioned in (A) above.
In case the separating employee dies at any time within the pension period, monthly
pension shall be paid to the Joint Account holder till the scheduled date of superannuation
(60 years) of the employee concerned as per details furnished in the application for early
separation

Non-refundable special grant


One time non-refundable special grant of Rs. 20,000 will be given to employees at the time of their
separation under ESS.

MEDICAL FACILITIES
Medical facility for the separating employee as well as his family, as existing on the date of
separation, till the age of his/her superannuation (i.e. 60 years) will be provided in the
Companys Hospital / Dispensaries. For this purpose, Family means wife/dependent
husband; sons aged 25 years and below, unmarried daughters (in case of married daughter
for the first confinement only) and parents, if wholly dependent and residing with the
employee.
On attaining the age of superannuation (i.e. 60 years), the separating employee and his
spouse shall continue to get the medical facilities in Companys Hospital / Dispensaries, at
Jamshedpur or Medi claim facility, as available to retiring employees.
Separating employees and their families will not be entitled for referral facilities for
medical treatment outside the Companys Hospital. Further, re-imbursement of the cost of
artificial limbs, pacemakers, hearing aid, cervical collar etc. will not be made to separating
employees (and their families) under the Scheme.

OTHER ENTITLEMENTS
Normal settlement dues like P.F., Gratuity and Employee Pension as per Companys rules will
be paid. Payment of Annual Bonus for the accounting year 2009-10 and leave money will be
made provided the ex-employees concerned are paid monthly pension while in authorized
possession of Co.s accommodation after their separation under ESS as per sub-para C(I).
Farewell Gift as per Companys rules.

INCOME TAX DEDUCTION


Income tax at source, wherever applicable, will be deducted from the pension as per then prevailing
Income Tax Law and shall be deposited with the Central Government in accordance with the
income Tax rules. A tax deduction certificate in the prescribed form shall be issued to the person
concerned. During the period of pension those who are liable to pay tax will be intimated by
Accounts Dept., to submit details of savings/investment under Section 80C of the Income Tax
Act with documentary proof (in original) within the prescribed period for needful at their end.

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PROCEDURE
An eligible employee may submit the application in the enclosed format (Annexure-II) for
settlement under early Separation Scheme to the Competent Authority through proper channel.

COMPETENT AUTHORITY
The Competent Authority for accepting requests for separation under this Scheme will be Vice
Presidents/Chief HRM''s/GMs/EICs and CFC (FTC).

EMPLOYEESFAMILY BENEFIT SCHEME


OBJECTIVE
To provide monetary benefit to family members of an employee who dies while in service and to
the employees in case of their permanent total disablement/permanent medical unfitness (including
IOW/IOD cases) and to those who are found unfit for their original job as certified by the medical
authorities of the Company.

SCOPE
The scheme will cover all permanent employees who have completed minimum of one years
permanent service.

ELIGIBILITY
Employees, who after having put in a minimum of one years permanent service, separate due to
death/permanent total disablement/permanent medical unfitness and those found unfit for their
original job will be eligible for the benefit under this scheme provided they have neither availed
nor intend to avail of the benefit of employment of their wards in the Company and agree to accept
Rs3,60,000/- (Rupees three lakhs sixty thousand) only under Life Cover Scheme of the Company.
Those availing the benefits under this scheme will not be entitled to the benefits under the Medical
Separation Scheme/Settlement on Medical grounds.
Those found unfit for their original job may also opt for benefits under this scheme or avail the
existing benefit allowed in such cases.
In cases of death/permanent total disablement/permanent medical unfitness arising out of Injury on
Work/Injury on Duty, the employee/nominee(s) may opt for the benefits under this scheme or for
the existing benefits being allowed in such cases.
This scheme will be effective from 1st January, 1995.

BENEFIT
4.1 On the separation of an employee from the service of the Company on account of death
or permanent total disablement or permanent medical unfitness (Including IOW/IOD cases)
and those found unfit for their original job, his nominee (s)/the employee, as the case may
be, on depositing with the Company the entire PF and Gratuity amounts of the employee,
would be entitled to monthly payment equivalent to his basic pay plus DA last drawn as per
the Scheme. Such monthly payment would continue till the normal date of superannuation
i.e. 60 years of age of the employee.

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4.2 The employee/ nominee(s) shall deposit in one lump sum the Provident Fund and
Gratuity amounts due at the time of separation with the Company, after the same are settled
by the Company, as per Rules. The employees who had already separated on or after 1st
January, 1995 as per clause 4.1 above would also be eligible for the benefit on deposit of
the aforesaid amounts.
4.3 In some cases, employees may have effected temporary/permanent withdrawals from
the Provident Fund or may like to retain part of such Funds to meet their family
commitments. In such cases, the monthly payment admissible under clause 4.1 of the
Scheme will be reduced in the same proportion, which the shortfall in the PF accumulation
at the time of death of the employee bears to the total Gratuity and notional PF which would
have accrued, had the withdrawal not been made. For example:-
i)Gratuity Amount Rs 1,00,000/-
ii)Notional PF, had the temporary/Rs.2,00,000/-permanent withdrawal not been made
___________
Total Rs 3,00,000/-
iii)Actual PF at the time of death Rs 1,50,000/-
iv)PF and gratuity deposited with the Rs 2,50,000/-
Company.
v)Amount of monthly payment as a 2,50,000 X 100
Percentage of last pay + DA ------------------ = 83.3 %
3,00,000
Provided that an employee or his nominee(s) as the case may be, may make good the shortfall
resulting from withdrawals by depositing the difference to get full benefit under this scheme. This
option will be available to him/nominee(s) only at the initial stage at the time of volunteering for
this scheme.

Explanation
The notional PF would consist of the employees own contribution over the period of his service,
interest accrued thereon and employers matching contribution, interest accrued there on, but will
not include any voluntary contributions made by the employees and the interest accrued there on.
The notional PF would be worked out as if there had not been any temporary/permanent
withdrawal over the period of his service.
4.4On the normal date of superannuation of the employee, the monthly payments under this
Scheme would cease and the amount deposited with the Company under this Scheme would
be refunded to the depositor or his/her nominee(s), as the case may be. Under this Scheme,
no interest on the PF and Gratuity deposited will be admissible for the period of deposit.
All payments under this Scheme shall be made through Bank Account Payee Cheques only.
Payment will start only after vacating the Companys accommodation, if any.

CONDITIONS
5.1 The Scheme is voluntary.
5.2 The benefit under the Scheme will be admissible from the date of separation of the
employee. The payment to the employee/nominee(s) shall, however, start from the date of
deposit of the amount as per clause 4.1 of the Scheme.

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5.3 The employee/nominee(s) will be eligible for the benefits under this Scheme only if the
PF and Gratuity amounts are deposited with the Company within a maximum period of six
months from the date of death/permanent total disablement of the employee (including
IOW/IOD cases), permanent medical unfitness and those found unfit for original job and fit
for alternate job. For those separated during the period 1st January, 1995 till date, it has been
agreed that the deposit could be made till 31th September, 1996. Otherwise, he/she will not
be eligible to receive benefit under this Scheme.
5.4 The employee/nominee(s) will be eligible to get the benefit under this Scheme only
after the loans/advances taken by the employee from the Company and other dues, if any, to
the Company, have been repaid by the employee/nominee(s) in full. However, the
Company may at its discretion, allow the amount due to the Company on account of
loan/advance etc. availed by the separated employee, to be deducted in monthly instalments
from the payments to be made under this Scheme, subject to the condition that such
recovery does not exceed 50% of the monthly payment due to the employee/nominee(s).
5.5 If the employee/nominee(s) desires to permanently withdraw the PF and Gratuity
amount deposited with the Company under the Scheme at any point of time, he/she will be
allowed to do so. In such cases, the employee/nominee(s) would cease to receive the benefit
under the Scheme from the date of withdrawal and no interest on the deposit will be
payable.

MODALITIES
6.1 The Scheme would be operated by the Company.
6.2 All payments under the Scheme shall be made through Bank Account Payee Cheques
only. Payment will start only after vacating the Companys accommodation, if any.
6.3 The working of the Scheme would be reviewed from time to time by the Company.

NOMINATION
7.1 Provident Fund nominee(s) will be deemed to be the nominee(s) under this scheme as
well. However, employees will have the option for submitting separate nomination under
this Scheme and in that case the nomination should be for one or more persons belonging to
the family of the member and for this purpose family is defined as :-
Wife / Husband
Son / Daughter
Parents / Parents-in-law
Brother / Sister
7.2 An employee separated on account of permanent total disablement / permanent medical
unfitness (including IOW/IOD cases) and those found unfit for their original job and joining
the Scheme, shall draw the amount under the Scheme notwithstanding any nomination
made by him. In the event of his death prior to the normal date of superannuation, then
his/her nominee(s) shall receive the benefit under the Scheme.
7.3 In case nomination of P.F. is not given, then the problem of nomination would be
resolved as done in case of P.F.

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REVIEW
The Company reserves the right to amend, review or discontinue the Scheme at any time.
In the event of death of the pensioner prior to the age of 60 (sixty) years, then her/his nominees(s)
shall receive the benefit under the scheme till the pensioners attaining the age of 60 (sixty) years.

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CHAPTER-15
Performance apprisal

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INTRODUCTION
Performance appraisal is a systematic evaluation of present potential capabilities of personnel and
employees by their superiors, superiors superior or a professional from outside. It is a process of
estimating or judging the value, excellent qualities or status of a person or thing. It is a process of
collecting, analysing, and evaluating data relative to job behaviour and results of individuals. The
appraisal system is organised on the principle of goals and management by objectives.
Management decisions on performance utilise several integrated inputs: goals and plans, job
evaluation, performance evaluation, and individual history. It connotes a two-dimensional concept
- at one end of the continuum lies the goals set by the authority, and at the other end, the
performance achieved by the individual or any given group.

Performance appraisal can be either formal or informal. Usage of former systems schedule regular
sessions in which to discuss an employees performance. Informal appraisals are unplanned, often
just chance statements made in passing about an employees performance. Most organisations use a
formal appraisal system. Some organisations use more than one appraisal system for different types
of employees or for different appraisal purposes. Organisations need to measure employee
performance to determine whether acceptable standards of performance are being maintained. The
six primary criteria on which the value of performance may be assessed are: quality, quantity,
timeline, cost effectiveness, need for supervision, and interpersonal impact. If appraisals indicate
that employees are not performing at acceptable levels, steps can be taken to simplify jobs, train,
and motivate workers, or dismiss them, depending upon the reasons for poor performance.

The results of appraisal are normally used to:


Estimate the overall effectiveness of employees in performing their jobs.
Identify strengths and weaknesses in job knowledge and skills.
Determine whether a subordinates responsibilities can be expanded.
Identify future training and development needs.
Review progress toward goals and objectives.
Determine readiness for promotion and
Motivate and guide growth and development.

OBJECTIVES OF PERFORMANCE APPRAISAL


Performance appraisal plans are designed to meet the needs of the organization and the individual.
It is increasingly viewed as central to good human resource management. This is highlighted in
Cummings classification of performance appraisal objectives. According to Cummings and
Schwab (1973), the objectives of performance appraisal schemes can be categorized as either
evaluative or developmental. The evaluative purpose have a historical dimension and are concerned
primarily with looking back at how employees have actually performed over a given time period,
compared with required standards of performance.
The developmental performance appraisal is concerned, for example, with the identification of
employees training and development needs, and the setting of new targets.

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The broad objectives of performance appraisal are:

1. To help the employee to overcome his weaknesses and improve his strengths so as to enable him
to achieve the desired _performance.
2. To generate adequate feedback and guidance from the immediate superior to an employee
working under him.
3. To contribute to the growth and development of an employee through helping him in realistic
goal setting.
4. To provide inputs to system of rewards (comprising salary increments, transfers, promotions,
demotions or _terminations) and salary administration.
5. To help in creating a desirable culture and tradition in the organization.
6. To help the organization to identify employees for the purpose of motivating, training and
developing them.
7. To generate significant, relevant, free, and valid _information about employees.
In short, the performance appraisal of an organization provides systematic judgments to backup
wage and salary administration; suggests needed changes in ones behavior, attitudes, skills, or job
knowledge; and uses it as a base for coaching and counseling the individual by his superior.
Appraising employee performance is, thus, useful for compensation, placement, and training and
development purposes.

USES OF PERFORMANCE APPRAISAL


The appraisal systems do not operate in isolation; they generate data that can contribute to other
HRM systems - for example to succession planning and manpower planning. Some of the common
uses of appraisals include:
Determining appropriate salary increases and bonuses for workers based on performance
measure.
Determining promotions or transfers depending on the demonstration of employee strengths
and weaknesses.
Determining training needs and evaluation techniques by identifying areas of weaknesses.
Promoting effective communication within organisations through the interchange of
dialogue between supervisors and subordinates.
Motivating employees by showing them where they stand, and establishing a data bank on
appraisal for rendering assistance in personnel decisions.
Organisations use performance appraisals for three purposes: administrative, employee
development, and programme assessment. Programme appraisal commonly serve an administrative
purpose by providing employers with a rationale for making many personnel decisions, such as
decisions relating to pay increases, promotions, demotions, terminations and transfers. Valid
performance appraisal data are essential to demonstrate that decisions are based on job related
performance criteria. An employees performance is often evaluated relative to other employees for
administrative purposes, but may be assessed in relation to an absolute standard of performance.
Performance appraisal for employee development purposes provides feedback on an employees
performance. The intent of such appraisals is to guide and motivate employees to improve their
performance and potential for advancement in the organisation. Appraisal data can also be used for

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employee development purposes in helping to identify specific training needs of individuals.


Programme assessment requires the collection and storage of performance appraisal data for a
number of uses. The records can show how effective recruiting, selection, and placement have been
in supplying a qualified workforce. Performance measures can be used to validate selection
procedures and can also be used as before and after measures to determine the success of
training and development programmes. In brief, the various uses of performance appraisal can be
classified into two broad categories. One category concerns the obtaining of evaluation data on
employees for decision-making for various personnel actions such as pay increases, promotions,
transfers, discharges, and for selection test validation. The other main use is for employee
development including performance improvement training, coaching, and counselling.

APPRAISAL POLICY FOR NON EXECUTIVES


OBJECTIVE
To lay down guidelines for annual assessment of the performance of non-executives employees and
to define the basis for determination of merit, efficiency and suitability for the purpose of
promotion and rewards.

SCOPE
These guidelines shall cover all regular non-executive employees of TSL/KPO.
PROCESS OF ASSESSMENT IN ANNUAL CONFIDENTIAL REPORT:
Period of assessment: The period of assessment shall be the financial year ending 31st march and
the assessment shall be made during subsequent months.

ACR forms: there will be prescribed forms as under;


Cadre
A-unskilled employees
B- semi-skilled employees
C-skilled employees
D-highly skilled employees
Assessment by reporting officer:
The reporting officer shall be the executive to whom the employees reports. The reporting officer
shall assess the performance and potential of the employee on the prescribed factors/items in the
ACR form on a four point scale-VERY GOOD,GOOD,SATISFACTORY,POOR. While
assessing general grading, the reporting officer would differentiate between the performance levels
of employees working under him/her and to the extent possible, follow the distribution pattern as
indicated below for each grade of employees:
General grading maximum ceiling
VERY GOOD UPTO 20%
GOOD UPTO 40%
SATISFACTORY NOT LESS THAN 20%
POOR UPTO 05%

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Assessment by reviewing officer


The reviewing officer shall be the executive to whom the reporting officer reports. The reviewing
officer is required to go through carefully the assessment of the reporting officer in each item/factor
and record as to whether he/she accepts the assessment of reporting officer in all respects in the
space provided under the column views of the reviewing officer. In case he/she differs from the
assessment of reporting officer, in any respect, he/she should give his/her own grading in respect of
the said item/factors. Accordingly the reviewing officer would work out the general grading based
on grading agreed to by him/her and the grading given by him/her wherever he/she has differed.
The assessment of the reviewing officer will be final. The reviewing officer would also
differentiate between the performance levels of all the employees under his/her control and to the
extent possible, follow the distribution pattern for each grade of employees.

PLANNING THE APPRAISAL


A meaningful performance appraisal is a two-way process that benefits both the employee and the
manager. For employees, appraisal is the time to find out how the manager thinks they are
performing in the job. For a manager, a formal appraisal interview is a good time to find out how
employees think they are performing on the job. The planning appraisal strategy has to be done:

Before the appraisal


1. Establish key task areas and performance goals.
2. Set performance goals for each key task area.
3. Get the facts.
4. Schedule each appraisal interview well in advance.

During the appraisal


1 Encourage two-way communication.
2. Discuss and agree on performance goals for the future.
3. Think about how you can help the employee to achieve more at work.
4. Record notes of the interview.
5. End the interview on an upbeat note.

After the appraisal


1. Prepare a formal record of the interview.
2. Monitor performance.

APPROACHES TO PERFORMANCE APPRAISAL


George Odiorne has identified four basic approaches to performance appraisal.

Personality-based systems

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In such systems the appraisal form consists of a list of personality traits that presumably are
significant in the jobs of the individuals being appraised. Such traits as initiative, drive,
intelligence, ingenuity, creativity, loyalty and trustworthiness appear on most such lists.

Generalised descriptive systems


Similar to personality-based systems, they differ in the type of descriptive term used. Often they
include qualities or actions of presumably good managers: organises, plans, controls, motivates
others, delegates, communicates, makes things happen, and so on. Such a system, like the
personality-based system, might be useful if meticulous care were taken to define the meaning of
each term in respect to actual results.

Behavioural descriptive systems


Such systems feature detailed job analysis and job descriptions, including specific statements of
the actual behaviour required from successful employees.

Results-centred systems
These appraisal systems (sometime called work-centred or job-centred systems) are directly job
related. They require that manager and subordinate sit down at the start of each work evaluation
period and determine the work to be done in all areas of responsibility and functions, and the
specific standards of performance to be used in each area. When introducing performance appraisal
a job description in the form of a questionnaire has to be preferred. A typical questionnaire
addressed to an individual would cover the following points:
What is your job title?
To whom are you responsible?
Who is responsible to you?
What is the main purpose of your job?
To achieve that purpose what are your main areas of responsibility?
What is the size of your job in such terms of output or sales targets, number of items
processed, number of people managed, number of customers? What targets or standards of
performance have been assigned for your job? Are there any other ways in which it would
be possible to measure the effectiveness with which you carry out your job?
Is there any other information you can provide about your job?

COMPONENTS OF PERFORMANCE APPRAISAL


The components that should be used in a performance appraisal system flow directly from the
specific objectives of appraisal. The following components are being used in a number of Indian
organisations.
1. Key Performance Areas (KPAs) / Key Result Areas (KRAs)
2. Tasks/targets/objectives; attributes/qualities/traits
3. Self appraisal
4. Performance analysis
5. Performance ratings
6. Performance review, discussion or counselling
7. Identification of training / development needs

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8. Ratings / assessment by appraiser


9. Assessment / review by reviewing authority
10. Potential appraisal.
PERFORMANCE APPRAISAL IN PRACTICE
Traditionally appraisals are carried out by the supervisors of the employees. Some companies do
follow self appraisal and compare the same with the traditional appraisal of the supervisors. A new
approach has been recently enunciated by the western management gurus, which is known as 360
degree appraisal whereby appraisals are required to be carried out not only by the supervisors, but
also by those supervised (subordinates) and peers. This approach also needs a re-look in the context
of leadership concepts being practiced universally. If one requires to be appraised on how well he
performs the leadership role, the appraisal should originate from the followers (bottom to top
approach) and not from their supervisors alone.
While the supervisors can appraise, on the performance standards, goals, targets, achievements, the
leadership attributes need to be appraised only by those being supervised. This argument is quite
valid for higher level executives including CEOs. Therefore, all the three approaches, top-bottom,
bottom-top and peer level appraisal will be very relevant. Perhaps, appropriate weightage is
required to be assigned for appraisals being carried out in the 360 degree system, which is yet to
take off seriously in many organisations.
It is quite disappointing to note that appraisals are not being carried out with the due importance
and seriousness they deserve though the systems provide scope for periodic and timely appraisals.
Normally appraisals are being carried out once a year or at the most twice a year as per the existing
practice. Many organisations do follow monthly and quarterly appraisals for management trainees
till they are confirmed, and follow the by-annual or annual appraisal system thereafter. Appraisal is
a continuous process, to be scientifically carried out day in day out, if one has to seriously carry out
appraisals.

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360DEGREE ASSESSMENT
CONCEPT
Typically, performance appraisal has been limited to a feedback process between employees and
supervisors. However, with the increased focus on teamwork, employee development, and
customer service, the emphasis has shifted to employee feedback from the full circle of sources
depicted in the diagram below. This multiple-input approach to performance feedback is sometimes
called 360-degree assessment to connote that full circle. There are no prohibitions in law or
regulation against using a variety of rating sources, in addition to the employees supervisor, for
assessing performance. Research has shown assessment approaches with multiple rating sources
provide more accurate, reliable, and credible information.

For this reason, the U.S. Office of Personnel Management supports the use of multiple rating
sources as an effective method of assessing performance for formal appraisal and other evaluative
and developmental purposes.

The circle, or perhaps more accurately the sphere, of feedback sources consists of supervisors,
peers, subordinates, customers, and ones self.

It is not necessary, or always appropriate, to include all of the feedback sources in a particular
appraisal program. The organizational culture and mission must be considered, and the purpose
of feedback will differ with each source.

For example
subordinate assessments of a supervisors performance can provide valuable developmental
guidance, peer feedback can be the heart of excellence in teamwork, and customer service feedback
focuses on the quality of the teams or agencys results. The objectives of performance appraisal
and the particular aspects of performance that are to be assessed must be established before
determining which sources are appropriate.

SOURCES
Evaluations by superiors are the most traditional source of employee feedback.
This form of evaluation includes both the ratings of individuals by supervisors on elements in an
employees performance plan and the evaluation of programs and teams by senior managers.

What does this rating source contribute?


The first-line supervisor is often in the best position to effectively carry out the full cycle of
performance management: Planning, Monitoring, Developing, Appraising, and Rewarding.

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The supervisor may also have the broadest perspective on the work requirements and be able to
take into account shifts in those requirements.
The superiors (both the first-line supervisor and the senior managers) have the authority to re-
design and re-assign an employees work based on their assessment of individual and team
performance.
Most Federal employees (about 90 percent in a large, Government wide survey1) feel that the
greatest contribution to their performance feedback should come from their first level supervisors.

What cautions should be addressed?


Research demonstrates that appraisal programs that rely solely on the ratings of superiors are less
reliable and valid than programs that use a variety of other rating sources to supplement the
supervisors evaluation.
Superiors should be able to observe and measure all facets of the work to make a fair evaluation. In
some work situations, the supervisor or rating official is not in the same location or is supervising
very large numbers of employees and does not have detailed knowledge of each employees
performance.
Supervisors need training on how to conduct performance appraisals. They should be capable of
coaching and developing employees as well as planning and evaluating their performance.

SELF ASSESMENT
This form of performance information is actually quite common but usually used only as an
informal part of the supervisor-employee appraisal feedback session. Supervisors frequently open
the discussion with: How do you feel you have performed? In a somewhat more formal
approach, supervisors ask employees to identify the key accomplishments they feel best represent
their performance in critical and non-critical performance elements.
In a 360-degree approach, if self-ratings are going to be included, structured forms and formal
procedures are recommended.

What does this rating source contribute?


The most significant contribution of self-ratings is the improved communication between
supervisors and subordinates that results.
Self-ratings are particularly useful if the entire cycle of performance management involves the
employee in a self-assessment. For example, the employee should keep notes of task
accomplishments and failures throughout the performance monitoring period.
The developmental focus of self-assessment is a key factor. The self-assessment instrument
(in a paper or computer software format) should be structured around the performance plan, but can
emphasize training needs and the potential for the employee to advance in the organization.
The value of self-ratings is widely accepted. Approximately half of the Federal employees in
a large survey2 felt that self-ratings would contribute to a great or very great extent to fair
and well-rounded performance appraisal. (Of the survey respondents who received ratings
below Fully Successful, over 75 percent felt self-ratings should be used.)
Self-appraisals should not simply be viewed as a comparative or validation process, but as a critical
source of performance information. Self-appraisals are particularly valuable in situations where the
supervisor cannot readily observe the work behaviours and task outcomes.

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What cautions should be addressed?


Research shows low correlations between self-ratings and all other sources of ratings, particularly
supervisor ratings. The self-ratings tend to be consistently higher. This discrepancy can lead to
defensiveness and alienation if supervisors do not use good feedback skills.
Sometimes self-ratings can be lower than others. In such situations, employees tend to be self-
demeaning and may feel intimidated and put on the spot.
Self-ratings should focus on the appraisal of performance elements, not on the summary level
determination. A range of rating sources, including the self-assessments, help to round out the
information for the summary rating.

PEERS
With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams
and group accountability, peers are often the most relevant evaluators of their colleagues
performance. Peers have a unique perspective on a co-workers job performance and employees are
generally very receptive to the concept of rating each other. Peer ratings can be used when the
employees expertise is known or the performance and results can be observed. There are both
significant contributions and serious pitfalls that must be carefully considered before including this
type of feedback in a multifaceted appraisal program.

What does this rating source contribute?


Peer influence through peer approval and peer pressure is often more effective than the
traditional emphasis to please the boss. Employees report resentment when they believe that their
extra efforts are required to make the boss look good as opposed to meeting the units goals.
Peer ratings have proven to be excellent predictors of future performance. Therefore, they are
particularly useful as input for employee development.
Peer ratings are remarkably valid and reliable in rating behaviours and manner of
performance, but may be limited in rating outcomes that often require the perspective of the
supervisor.
The use of multiple rates in the peer dimension of 360-degree assessment programs tends to
average out the possible biases of any one member of the group of rates. (Some agencies eliminate
the highest and lowest ratings and average the rest.)
The increased use of self-directed teams makes the contribution of peer evaluations the central
input to the formal appraisal because by definition the supervisor is not directly involved in the
day-to-day activities of the team.
The addition of peer feedback can help move the supervisor into a coaching role rather than a
purely judging role.

SUBORDINATES
An upward-appraisal process or feedback survey (sometimes referred to as a SAM, for
Subordinates Appraising Managers) is among the most significant and yet controversial features
of a full circle performance evaluation program. Both managers being appraised and their own
superiors agree that subordinates have a unique, often essential, perspective. The subordinate
ratings provide particularly valuable data on performance elements concerning managerial and
supervisory behaviours. However, there is usually great reluctance, even fear, concerning

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implementation of this rating dimension. On balance, the contributions can outweigh the concerns
if the precautions noted below are addressed.

What does this rating source contribute?


A formalized subordinate feedback program will give supervisors a more comprehensive
picture of employee issues and needs. Managers and supervisors who assume they will
sufficiently stay in touch with their employees needs by relying solely on an open door
policy get very inconsistent feedback at best.
Employees feel they have a greater voice in organizational decision making and, in fact,
they do.
Through managerial action plans and changes in work processes, the employees can see the
direct results of the feedback they have provided.
The feedback from subordinates is particularly effective in evaluating the supervisors
interpersonal skills. However, it may not be as appropriate or valid for evaluating task-
oriented skills.
Combining subordinate ratings, like peer ratings, can provide the advantage of creating a
composite appraisal from the averaged ratings of several subordinates. This averaging adds
validity and reliability to the feedback because the aberrant ratings get averaged out and/or
the high and low ratings are dropped from the summary calculations.

What cautions should be addressed?


The need for anonymity is essential when using subordinate ratings as a source of
performance feedback data. Subordinates simply will not participate, or they will give
gratuitous, dishonest feedback, if they fear reprisal from their supervisors. If there are fewer
than four subordinates in the rating pool for a particular manager, the ratings (even though
they are averaged) should not be given to the supervisor.

CUSTOMERS
Executive Order 12862, Setting Customer Service Standard, requires agencies to survey internal
and external customers, publish customer service standards, and measure agency performance
against these standards. Internal customers are defined as users of products or services supplied by
another employee or group within the agency or organization. External customers are outside the
organization and include, but are not limited to, the general public.

What does this rating source contribute?


Customer feedback should serve as an anchor for almost all other performance factors.
Combined with peer evaluations, these data literally round out the performance feedback
program and focus attention beyond what could be a somewhat self-serving hierarchy of feedback
limited to the formal chain of command.
Including a range of customers in the 360-degree performance assessment program expands the
focus of performance feedback in a manner considered absolutely critical to reinventing
Government. Employees, typically, only concentrate on satisfying the standards and expectations
of the person who has the most control over their work conditions and compensation. This person
is generally their supervisor. Service to the broader range of customers often suffers if it is
neglected in the feedback process.

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What cautions should be addressed?


With few exceptions, customers should not be asked to assess an individual employees
performance. The value of customer service feedback is most appropriate for evaluating team or
organizational output and outcomes. This feedback can then be used as part of the appraisal for
each member of the team. The possible exceptions are evaluations of senior officials directly
accountable for customer satisfaction and evaluations of individual employees in key front line
jobs personally serving internal or external customers.
Customers, by definition, are better at evaluating outputs (products and services) as opposed to
processes and working relationships. They generally do not see or particularly care about the work
processes, and often do not have knowledge of how the actions of employees are limited by
regulations, policies, and resources.

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FINDINGS OF
STUDY

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FINDINGS OF STUDY
HRM is a very enormousness and an elaborate section of overall management process. Behind
every success or failure HR activities are considered the ultimate deciding factor. That is why
TATA STEEL always gives high priority to the overall HRM practices. In the process of studying
the issue, following aspects have been identified and deserve explanation:

The company uses both internal and external sources of recruitment. The recruitment
philosophy of TATA STEEL require having a workforce that reflects the diversity of
people. It believes that all people should have an equal chance to apply for and be
considered for jobs. TATA STEEL believes in equal employment opportunities. It
discourages any type of discrimination.
Mainly the executive level employees are recruited from internal source and employees and
technical level employees are recruited from external sources. It makes sure that its hiring
process is legal.
Among the external sources, advertisement is extensively used. TATA STEEL strongly
advocates the use of open advertisement. It feels that this type of advertisement is most
helpful in building companys reputation. Incidentally this causes a large pool of
candidates, which makes the sifting time consuming and the entire process a difficult one.
Managing director is the sole authority to approve manpower for any business or function.
To recruit new employees the concerned department head fills up the staff engagement
proposal forms and forward the same to the human resource department. The human
resource department evaluates the proposal and forwards it to the managing director with
comments if any. After receiving the approval from the managing director the human
resource department starts recruitment as per the preferred method.
On the job training is given to the employees and technicians. Sometimes managerial
people are given scope to participate in training program organized by different
professional institutions.
The content of the training program designed on the basis of nature of business, needs of
the employees and the organization. Training is given frequently in the organization by
the immediate superior executives.
The company follows market based wage and salary system for their employees, but they
set a little lower compared to the other organizations.
Different incentives, benefits like bonuses, festival bonuses, performance bonus, profit
sharing, commission, provident fund, gratuity, medical insurance, group insurance,
accidental insurance are prevailed in the organization.
The company maintains compliance in operating its business. The provisions of Labour act
2006 are followed in the company.
The labor-management relation in the company is acceptable. The company always tries to
maintain good working environment.

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TATA STEEL recruits fresh graduates for entry level. For mid level and higher level they prefer
internal recruitment. In case the competent candidate is not available then it recruits experience
people from the same industry.
The selection board is formed by the line executives and the HR professionals are also selected as
a member of the board. In TATA STEEL, both the line managers and HR managers plays
different role in the selection process. For initial screening, preliminary interview, Reference
Checks, Medical Examination are performed by HR department. Departmental interview is
performed by HRD.

For the training purpose they use needs analysis, Organizational analysis, Task analysis and
Person analysis are used widely.
TATA STEEL provide various types of training and development to their employees like
on the job training, off the job training, management development training, overseas
training, field force training, manager training and training program for distribution
assistant and data entry operator.
Promotion is given on the basis of seniority and performance/merit in TATA STEEL. For
filling up mid and top level vacancies TATA STEEL relies on internal recruitment.
However, if a competent candidate is not available in that case only TATA STEEL goes for
external recruitment.
TATA STEEL provides various types of compensations and benefits to their employees.
They also provide various types of leaves to their employees.
Manpower forecasting is not carried out systematically in TATA STEEL. Forecasting is
carried out for a period of less than a year. As such recruiting and selection is not based on
long term perspective and is not systematic.
The quality of recruits attracted by TATA STEEL is not up to mark. The recruitment and
selection process is standard and unbiased. It is free from discrimination. TATA STEEL
follows valid selection process. But the pressure enforced by concern department for filling
up vacancy often distorts the selection process.
TATA STEEL was previously Pfizer, which was an American company. So, they still try
following the American culture in the working environment. It rarely creates any problem
in our culture.
The employee referral minimizes recruiting cost or advertisement cost. But it often does not
help the company to get the best lot in the market.
The job security in TATA STEEL is not tight. Employees may feel unprotected by the
system in TATA STEEL. However, the compensation for that is high enough to overcome
the fear.
Both the line managers and HR managers plays different role in the selection process. For
initial screening, preliminary interview, Reference Checks, Medical Examination are
performed by HRD. Departmental interview is performed by HRD as well.
TATA STEEL follows steps: initial screening, written test. IQ test, reference checks, and
placement. Medical examination is mandatory.

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CHAPTER-16
RECOMMENDANTION
&
CONCLUSION












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Recommendation
As in the competitive world where the need for every organization to prove itself the best and
make an outstanding and remarkable progress is the need, no fact could be left ignored. Every
organization must know the shortcomings and must try to go for building up the shortcomings.
An ethical practice in any organization could only be achieved if the organization works for the
well being of its employees. Every organization must possess a basic structure and the
organization must be capable enough to reward its outstanding performers and must appreciate
the initiative works.

I would like to recommend the followings to improve of the HR practices in TATA STEEL to help
the organization to achieve competitive advantage.
They are as follows
The selection procedure should be made less complex because time is important in this
modern world.
Time is important, but a valid selection process is also important. The HRD must ensure a
valid selection process and should not compromise with time pressure as imposed by
concern department to fill up vacancy.
Internal recruiting is not always cost effective for higher level recruitment. Certain
percentage of vacancies may be filled up by external recruiting to get more competent
candidates. Even the company may go for global search.
HR policy should be designed to attract more efficient workers for the organization for
improvements.
The compensation policy should be reorganizing to attract efficient people to the
organization, because the basic salary is not high at TATA STEEL.
Skill and knowledge based pay system should be introduced at TATA STEEL. It motivates
employees to give their best performance.
The women should provide better performance to the organization, for this they should be
more trained.
Discrimination related to gender and race should be strictly avoided. It will improve the
working environment.
Disabled people should be hired and placed in such positions where they can work easily.
The workers should be well trained so that they can work without accidents and accident
avoiding measurements should be taken to the factories.
After every few days later there should be a drill for avoiding accidents like fire, earthquake
etc.
E-learning should be introduced to the organization. It will increase productivity and
efficiency.
The contribution of employees to the organization should be recognized properly and
provide feedback to them.
Pay should be designed in such a way that employees understand it properly and recognize
it as a fair, equitable and consistent.
Benefits and service programs should be designed to give more protection to the future life
of the employees and their dependants.

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Employees should be given proper scope to involve in the trade union as it is their right to
bargain.
Complaint handling procedure should be made easier and understandable to the employees.
Executive level people should be more cordial and cooperative to their employees as they
should recognize them as their colleagues.
Team culture should be introduced in the organization as it makes an organization more
competitive.
TATA STEEL may adopt computerized recruitment and selection process as it reduces time
and money.
For top level positions TATA STEEL may recruit from outside the industry. Even
international recruitment may be carried out to bring diversity to the workforce and culture.
Uniform is important in an organization. So it should be introduced but at the same time
religious dress should not be banned.

I hope these suggestions will help the organization to improve its performance through their
workers.

CONCLUSION
TATA STEEL has taken many steps to improve its HR practices and also take many initiatives to
improve the quality of life of its employees. This is not just for the growth of the organization, but
also helps to maintain a good relationship between the management and the employees. Now the
question is how far the management is interested in promoting the fair HR practices and initiatives
to achieve the above outcome, which will contribute to the overall development of the organization

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and the nation as whole. At the end of the study in TATA STEEL. It my pleasure conduct that
TATA STEEL is a company with a good RH practices and initiatives. The company is also well
equipped with highly technically trained and motivated group of persons, to have belongingness
with competitive spirit to make the company in the frontline at the National as well as international
level.

At last I want to say that while recruitment and selection identify acceptable candidate, the
process still continue with induction program for the new employee, we can further fine tune the
fit between the candidates qualities and the organizations desire. Then to make the employees
more skilled behavioral training may be provided.
It makes the positive impact of any organization, but it needs a lot of money, time, attention and
guidance. It is just like only taking, not giving or taking the starting benefits and when the time
comes for returning back you just quit the job. So it is not always fruitful.
The employee motivation is needed to be built up through constant attempts of the organization.
The organization may adopt various methods for motivating the employees. It may be by
providing recreational activities such as tours, picnics, family outings, annual days, sport days,
functions, and parties. The organization must consider its employees as its family members and
must provide some profit sharing policy such as ESOPs , bonus, and shares. the organization may
provide fringe benefits.
Welfare activities to be undertaken by the organization may include various facilities such as
uniform for the employees for whom HR department is responsible for its maintenance and
providing it.
Last but not the least rewards are the main motivational activity, which may be monetary and non-
monetary rewards.
At last to conclude, I would like to say that with enthusiasm that it was a great experience
working with many experienced people working at senior positions. Interacting and spending time
with the people rich in learning experience. The people were very cooperative and helpful and
encouraging. It is an experience to be cherished for a long time.
It was great of learning so much about HR practices and implementing them. Im really thankful
for all the senior members who explain me the working strategies and methodologies of
organizations.

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References
Text Book
Human Resource Management (sixth Edition), Fisher/Schoenfeldt/Shaw
Employee Training & Development (third edition), Raymond A.

Human recourse management (second revised edition), Late Dr.


C.B.MAMORIA/ S.V. GANKAR.

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H.R PARTICES.

Websites
http://www.tatasteel.com/
http://www.tatasteelcarrer.in
http://www.wikipedia.com/

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Related Interests