HUMAN RESOURCE MANAGEMENT

STEEL AUTHORITY OF INDIA LIMITED

The HRM Structure

Chairman

Director (Personnel)

Chief Executive

Head of Personnel
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The Corporate HRM Structure

Manpower Plng. Communication Rectt.

Director (Pers.)
Employee Compsn.
Employee Relations

ED (P&A)
Group Heads
HRD.
Social Front

OD

HRM Driving Issues

Business Goals
1. Manpower benchmarking 2. Employment Cost 3. Managing ChangeTechnology & Customer focus

Environment

Culture
1. Maintaining legacies of the pasttownships, schools 2. Instituitionalized wage revision 3. Diversity - of operations & work practices

1. Working within Labour law regime 2. External pressure for employment 3. Multiplicity of negotiating body

HRM Focus
Focus on Manpower Rationalisation
Developing a committed workforce through proper Acquisition Retention Development & Utilisation of manpower

MANPOWER PLANNING

RIGHTSIZING MANPOWER
Optimum manpower Ideal Age mix

Ideal Skill Mix

Manpower Strategy

Social responsibilities

Ideal Qualification Mix

Manpower Optimization Strategy

Multi-pronged approach for Manpower

rationalisation
Reorganisation of Work Practices Restructuring of Clusters Merger/closure of Departments Multi-skilling/multi-tasking Introduction of new technology/innovation Succession Planning
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Manpower Planning
Industry Benchmarks
MOU Targets

Plant/Unit Target
Employment Cost Control

Manpower Planning
Annual HRP

Closing Manpower Restructuring Rectt. Budget VR Plan

Beginning Manpower

Seperations

Measures taken/proposed for Manpower Reduction

More separations through VR Restricting Recruitment

Recruitments up to 50% of separation No recoupment against VR. Recruitments being restricted to 15% of natural superannuations Recruitments to be restricted to hitech/critical areas of functioning
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Contract Labour Management

CONTRACT LABOUR ENGAGED SINCE INCEPTION
SPECIFIC JOBS AWARDED AS JOB CONTRACTS NOT AS LABOUR SUPPLY CONTRACTS CL-EMPLOYMENT OF CONCERNED CONTRACTOR SAIL-FULFILLS OBLIGATION/RESPONSIBILITY AS PRINCIPAL EMPLOYER
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Measures taken for reduction of CL

Focus on Long Term contracts

1. Fixing of Annual Targets & adherance

2. Gradual Reduction in Contractual Budget
3. Meticulous Monitoring/departmentalization 4. Meticulous monitoring & MIS
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Recruitment
Recruiting best talent in the Country Constant rejuvenation done even in crunch time A time tested system of recruitment Induction mostly for frontline positions
Entry levels S1/S3/S6 for Non-Ex; E1 for Ex.

Recruitment process of SAIL an Industry benchmark

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ORGANIZATIONAL DEVELOPMENT

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OD Performance
Pioneered many HRD policies and interventions SAIL Performance Appraisal System: A professional benchmark. Systematic way of introducing a HRD system. SAIL trained Managers, leaders in industry, both private and public (Tata Steel, Essar, Jindals, Ispat, RINL and many others)
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OD Interventions
A planned way of OD starting with Directors workshop with annual business theme of the year Succession and Career planning for Key Positions Strong linkage of Performance with Growth Strong linkage of Appraisal with Training
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Motivational Schemes
Incentive & Reward Scheme
Scheme linked to
Production volume Quality cost profitability

Parameters are linked to APP/Priorities Similar schemes for Non-executives and Executives
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HRD

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SAIL Belief
To train people is costly. Not to train is costlier.

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TRAINING ORGANISATION IN SAIL

Training Advisory Board (at Corporate level) Headed by Chairman
Management Training Institute (Implements corporate action plans, company wide interventions & responsible for training of E-6 & above executives) Corporate HR Group (Training Policy Formulation, Company-wide interventions etc.) Training Advisory Committee (at Plant/Unit level) Headed by CEs Plant Training Centres (Responsible for training upto E-5)

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TRAINING
FOCUS
Facilitate employees to achieve Business Goals Continuous upgradation of competencies Proper Orientation of new entrants Training for new assets/modernization Reducing skill gaps due to seperations Improving Quality of training HELP CREATE A LEARNING ORGANISATION
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TRAINING
PERFORMANCE
Exceeding MOU Target year after year

Systematic method of identifying training needs

Major thrust on Skill & Efficiency Enhancement Emphasis on Technical Training

Training for Redeployment and multi-skilling

Annual training Plan dovetailed to identify Skill gap
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Areas of Training
Induction Technical Managerial

Standard Modules
Non-Executives 1. Project Based Induction Training 2. Mgmt.Development Training Executives 1. Unit Training 2. Basic Engineering Skills
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TRAINING
RESULTS
Skill level has been maintained in spite of manpower reduction Production level has been maintained Perceptible improvement in Quality viz. Decrease in Customer complaints, reduction in rejections Adherence to Standard Operating/Maintenance Practices. Increase in Labour Productivity. Manpower for modernised/new asset met through redeployment & retraining.
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EMPLOYEE COMPENSATION

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Employee Compensation

Path breaking Bipartite forum at National Level for Wage related Issues - NJCS

This model since then adopted in other industries

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EMPLOYEE RELATIONS

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Employee Relations
History of Bipartism From Shopfloor to meetings with highest cadre of Mgmt. A well honed system of Preventive IR

All potentially volatile issues like manning, incentives, work practices discussed at appropriate forums

Trade Unions have identified with Business realities

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Employee Relations
SAIL has more than 250 registered Unions. Concept of Recognized or Forum Union

Pillars of Industrial harmony Responsible Unionism Have supported SAIL in divestments and cost reduction Responsive Management Corporate IR Group, Pers. Officer in each Plant, Zone & Deptt. level
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Employee Relations
Formal Level
National Level NJCS, JCSSI Corporate Level Production/Productivity Plant/Zonal Level - Shop-floor Committees on Production/Productivity, Safety, Welfare, Grievance, Canteen, etc.

Informal level
Suggestion Schemes, Quality Circles, Shop Improvement Groups
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Employee Relations
Since the inception of Shram Awards, 41 Awards have been awarded including 10 Shram Bhusans and 2 Shram Ratnas Since the inception of Vishawakarma Awards, 76 awards for SAIL Other Awards
In Company Awards Jawahar Award / Nehru Awards INSAAN Award for Suggestion Scheme National Award for Performance of Quality Circles, etc.
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Communication
Internal
In-house magazines, newsletters E-Newsletters

External
House magazines/ newsletters for important customers/ex-employees etc.

Open Sessions & Meetings

Coverage through Local cable network

Press Releases
Press Conferences Customer Meets

Bipartite Forums
IRPs identified for important management intervention

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Social Front
Peripheral Development (PD) a planned activity.

Guidelines for PD taken from Board.

Working in close coordination with respective State Govt., Distt. Admn. etc.

Important PD areas SAIL has undertaken.

Drinking Water Education

Health
Roads/Bridges Self-employment Schemes
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SAIL AIDS CONTROL PROGRAMME

SAIL fulfilling the role of the third arm of the Govt. Only PSU to be working as Intersectoral collaborator with NACO HIV/AIDS Policy for the Company approved by SAIL Board

Extensive communication exercise undertaken to generate awareness 75,000 people (25,000 employees + 50,000 nonemployees) covered since year 2000

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Innovative HR measures in SAIL

First PSU to have
Golden Handshake Sabbatical leave MOU with Government, APP Formulation

Executive Performance Appraisal

Hard Forced distribution Self Appraisal Development Linked Implementation through Training, Workshops, Films
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Innovative HR measures in SAIL

Human Resource Planning for Modernization - Selection, training and retraining for modernization of Steel Plants carried out.
New and modernized assets worth Rs.20,000 crores added with upgradation of existing manpower
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Innovative HR measures in SAIL

E0 cadre Non-unionized cadre for Skill preservation
Clustering/Multi-skilling Flatter organisation Flexibility in deployment Motivation
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Innovative HR measures in SAIL (Organization Development)

Large Mass Interaction Exercises conducted Starting from 1986. Priorities for action Perspectives for HRM Unfinished Agenda
Annual conclave of Directors of the Company cascading communication structure down the line Restructuring of Marketing Function with Liberalized Markets
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Innovative HR measures in SAIL (Organization Development)

Internal Customer Satisfaction model to orient the production Units to the market Strategic Management (Envisioning, Goal Setting, Core Values) An Apex Body for training Policy Formulation Corporate Management training college with state of the art facilities since 1960s
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Innovative HR measures in SAIL (Employee Relations)

National Joint Consultative Committee on Steel (NJCS): An experiment in preventive IR Concept of Forum of Trade Unions at Durgapur Steel Plant working successfully Stopped restrictive practices like Overtime without any fallout system Long tradition of Bipartism from Shop to National level
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Challenges ahead on HR Front

To reach a level of 1 lac employees
Gearing up the organization to work with reduced manpower Labour Productivity
SAIL 2002-03 123 TISCO 245 RINL 253

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Challenges ahead on HR Front

Manpower cost as % of turnover
SAIL 2002-03 20% TISCO 13.5% RINL 9%

Meeting employees expectations of increased wages/salaries and perks

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Challenges ahead on HR Front

Leveraging manpower potential to make the organization vibrant, healthy & dynamic Dealing with multiplicity of Unions and intra-union factionalism
Managing the environment - Dealing with pressing employment issues
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Thank you

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 Manpower Benchmarking with competitors (cost) High Employment cost (20% of turnover) Managing change technological upgradation, quality, profitability and customer focus Diversity of operations, cultures and work practices Institutionalized wage revisions Working around the present labor law regime (contract labor act, ID Act, Trade Union Act)

HRM Driving Issues

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HRM Driving Issues

Environmental Pressures Employment of LDPs, Apprentices, Dependants of died in harness Getting out of legacies of the past townships, hospitals, schools, subsidised utilities, central security of industrial establishments Multiplicity of negotiating bodies on employee issues. Vertical split in national TUs

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SAIL HRM Organization Development (contd.)

Directors Workshop defines the OD interventions for the yearand for future Interventions that have been driven by Directors Workshops Internal Customer Satisfaction, Restructuring of CMO, Interplant best practices, Succession Planning and Career Pathing, Strategic Leadership
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SAIL HRM Organization Development

Pioneered many HRD policies and interventions Large Group Interactive Exercise (Real Time Strategic Change) introduced in SAIL at the same time Jack Welch started it at GE SAIL Performance Appraisal System: A very systematic way of introducing a new HRD system. A professional benchmark SAIL trained Managers, leaders in industry, both private and public (Tata Steel, Essar, Jindals, Ispat, RINL and many others)
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Contract Labour Management

MEASURES TAKEN FOR REDUCTION OF CL
FIXING OF ANNUAL TARGETS (CL) & ADHERENCE GRADUAL REDN. IN CONTRACTUAL BUDGET FOCUS ON LONG TERM CONTRACTS MECHANIZATION/DEPARTMENTALISATION METICULOUS MONITORING & MIS
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SAIL HRM Organization Development (cont.)

Recruiting best talent in the country and nurturing them in semi structured manner. Recruitment process itself is an industry bench mark. A planned way of OD starting with Directors workshop with annual business theme of the year (eg Cultivating a Culture of Customer Satisfaction, Benchmarking for Global Competitveness, Internal Customer Satisfaction, Priorities for Action)
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SAIL HRM Organization Development (contd.)

SAIL Total managerial strength of 15000 E6 and above are Corporate Resource Even in crunch time regular induction of fresh blood did not stop constant rejuvenation A time tested system of recruitment, induction, career planning and performance management SAIL has been able to resource its Directors positions mostly internally and has provided many Directors and CEOs to others
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SAIL HRM Organization Development (contd.)

OD for Corporate Cadre done centrally Succession and Career Planning for Key Positions A Committee of Directors charts the growth of Corporate Cadre executives Relative assessment of performance by Committee of Directors based on predefined performance indices
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SAIL HRM Organization Development (contd.)

Three formats for PA PESB, Corporate Cadre and Frontline All formats have boss-subordinate performance planning at their core To remove positive skew, forced distribution of relative performance by an impartial senior group Strong linkage of performance with growth
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SAIL HRM Organization Development (contd.)

Strong linkage of Appraisal with Training PA fulfills the training need assessment and the output used for Annual Training Plan PA the mainstay of OD; it provides data for all major interventions SAIL in process of mulling over PA

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TRAINING FOCUS
FACILITATING EMPLOYEES TO ACHIEVE BUSINESS GOALS CONTINUOUS UP-GRADATION OF COMPETENCIES PROPER ORIENTATION OF NEW ENTRANTS TRAINING FOR NEW ASSETS/MODERNIZATION REDUCING SKILL GAPS DUE TO SEPARATIONS IMPROVING QUALITY OF TRAINING HELP CREATE A LEARNING ORGANISATION
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AREAS OF TRAINING
Induction Programme for fresh entrants

Technical Training
Managerial Training

More than one-third of total employees trained every year

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STANDARD MODULES FOR EXECUTIVES

Project Based Induction training
Management Development Training at different levels

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STANDARD MODULES FOR NON- EXECUTIVES

UNIT TRAINING
BASIC ENGINEERING SKILLS

MULTI-SKILLING

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TRAINING HIGHLIGHTS
MOU TARGET FOR TRAINING HAS ALWAYS BEEN SURPASSED OVER 50% OF THE TOTAL TRAINING EFFORT IS IN THE AREA OF SKILL & EFFICIENCY ENHANCEMENT RE-ORIENTATION OF TRAINING PROGRAMMES DONE TO STRENGTHEN TECHNICAL TRAINING

EMPHASIS ON TRAINING FOR REDEPLOYMENT AND MULTI-SKILLING TO MEET MANPOWER REQUIREMENT

ANNUAL TRAINING PLAN DOVETAILED TO IDENTIFICATION OF SKILL GAPS/TRAINING NEEDS
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OD in SAIL - Highlights
Pioneered many HRD policies and interventions HIGHLIGHTS SAIL Performance Appraisal System: A professional benchmark. Systematic way of introducing a HRD system. Large Group Interactive Exercise (Real Time Strategic Change) introduced in SAIL SAIL trained Managers, leaders in industry, both private and public (Tata Steel, Essar, Jindals, Ispat, RINL and many others)
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