HRM ASSIGNMENT submitted to Dr.Venkatesan by Abhimaniu sharma ITS(Prob.

HUMAN RESOURCES MANAGEMENT PRACTICES IN SAIL

Maharatna Steel Authority of India Limited (SAIL) has won the prestigious Randstad Award for 2011 under 'Manufacturing Industries' category. B. B. Singh, Director (Personnel) received the award from Dr. Bimal Jalan, Ex-Governor, RBI. The Randstad Awards were instituted in 2000, by Randstad globally to encourage best practices and to build 'Employer Brand'. Ma Foi Randstad is a part of Randstad, worlds second largest HR services company. Randstad awards in India are being given for the first time to the 'Most Attractive Employer' brand based on a research done to gauge the 'Employer's image' among the potential workforce and the working public through extensive online research. The employers are evaluated on 17 different factors. These include job security, salary, working atmosphere, job content, work-life balance, future prospects, values, training and management. Human Resource is one of the greatest assets for the Company. SAIL has believed in the ideology of achieving excellence through investing in people and technology simultaneously. Company continues to work for the development and realization of best potential of its people. To promote motivational climate and achieve growth, thrust on optimal utilization of manpower with focus on improvement in productivity continued. Efforts were made for promoting better employee participation. Steps were taken to make sure a smooth transition for upcoming production facilities and preparations to work with a leaner workforce for enhanced productivity. HR initiatives kept focus on building teams with wider spectrum with reference to skill and knowledge. In all SAIL Plants, Mahila Samities have been formed since inception.The members of the Samities are spouses of the employees. Spouses of MDs, EDs etc are also a member of Mahila Samities . A lot of work is being done for the society by these Samities Basically there are two types of performance appraisal done on the basis of post of theSAILs employee. They are:1.Executive performance appraisal system2.Nonexecutive performance appraisal system EXECUTIVE PERFORMANCE APPRAISAL SYSTEM

This system is for performance appraisal for executives of the level E-0 to E-4 . Thevarious steps involved are:A)Self Appraisal Performance Review & PlanningI.Appraisee write his view over the actual achievement for the Key performancearea / Task and Target assigned to him for the year.II.Comments on fulfillment of KPA / Task and Target are written by theReporting Officer , taking account of time frame also.III.Special Jobs other than tasks given and normal routine work are written byappraisee.B)Performance Review DiscussionI.Both appraisee and reporting officer sit together.II.Comment over Strengths and weaknesses and areas for development are writtenwhich is undersigned by both .III.Appraisee can help the reporting officer by giving examples which shows hisstrength or weakness. He also tell what training he want to undergo .C)Performance AssessmentI.Rating between 1 to5 are given to the appraisee by the Reporting Officer and Reviewing Officer individually on the basis of Performance Factors andPotential Factors.Performance Factors :Quantity of outputQuality of outputCost controlJob Knowledge and SkillTeam spirit and LateralCoordinationDisciplineDevelopment & Quality of assessing subordinatesSpecial Relevant factor Potential Factors : Communication InitiativeCommitment and sense of ResponsibilityProblem Analysis and Decision makingPlanning and OrganizingManagement of Human resourcesII.Different weightage are given to each factor III.Final scores are calculated by multiplying rating and weightage .By addingthese Total Factor Score is calculated.IV.Comments on Overall Performance And Potential are written by bothRep orting and Reviewing Officers individually.D)Suggestions for Job Rotation and Job EnrichmentI.Both reporting and reviewing officers write their suggestions whet her theappraisee should be transferred to other department. Either a good employee istransferred so that he can acquire knowledge of all the departments, or a worst performing employee is transferred so as to improve his performance.II.In some exceptional case Head of department give his comments on overall performance & potential of the employee.E)Final AssessmentI.Total Factor Score by both Reporting and Reviewing officers is written andaverage is calculated.II.Final Grading between O / A / B / C is given .III.If Final Grade is C , indicate whether to promote or not to promote the appraisee.IV.If not to promote give reasons.V.Meeting with non-promotable appraisee. NON EXECUTIVE PERFORMANCE APPRAISAL SYSTEM I. Rating are given by both Reporting and Reviewing officers on the basis of performance of the appraisee depending upon factors: Performance onthe JobJob Knowledge & skillMulti-skill UtilizationConduct & behavior Punctuality & availability on jobInnovativenessCost & Quality ConsciousnessInitiative & Capacity to assume higher responsibilityHousekeeping & safety consciousnessII. Weightage are given to various factors .III. Scores out of 100 are calculated by multiplying rating with weightage .IV. O / A / B / C / C- Grades are given according to scores and attendance of theappraisee.V. If grade is C- , then appraisee is interviewed by the Head of Department.

In the present performance appraisal system of SAIL we found the following loop holes:If the appraisee has good terms with the reviewing officer and does not have a smooth relationship with the reporting officer , in such case the

reporting officer is sometimes forced by the reviewing officer to give better score to the appraisee. During the fiscal 2009-10, all the five integrated steel plants recorded their best ever labour productivity. An overall labour productivity of 226 Tonnes/man/year was achieved by SAIL, with Bhilai Steel Plant touching a new peak at 340 T/man/year in Jan10. Overall manpower figure at the year end was 1,16,950 (after 1585 employees of BRL joined SAIL family as a part of merger of BRL with SAIL) comprising 15,704 eRs.ecutives and 1,01,246 non-eRs.ecutives; registering a net reduction of 5930, achieved by way of judicious recruitments, redeployment strategies and multi-skilling. Thrust continued on developing employees for a better role. Over 60 eRs.ecutives at GM/DGM level were nominated to participate in Specialized/Advance management programmes, conducted by Premier Management Institutes for eRs.posure to best business practices and leadership development. Overall, nearly 46,180 employees were trained during the year on different contemporary technical and managerial modules; achieving level-1 of Performance Evaluation Parameter under MOU with Government of India for the financial year 2009-10. Also, SAIL HR ERs.cellence Awards initiated with IIM-Ahemdabad as the knowledge and process partner with an objective to provide a platform to share proven HR Practices / systems across the industry and thereby enrich our knowledge in the field and spur new innovations. SAIL has been a pioneer in promulgating a firm policy on safety at workpiace. INDUSTRIAL RELATION IN SAIL Before 2004 working environment at SAIL was taken up by Discipline Department which was one of the reasons for SAIL's huge loss continuously. After the year 2004, both the workers and management realized that if they work united then only productivity and profi tof SAIL is possible. The positive approach started from 2004 and the relationship continues toimprove future management and workers. So, we can blindly express that in this 21 st centurythere is a good and co -ordinal relation between worker and management. They together share both the bad and good times of SAIL.SAIL is professionally managed through their IR System. SAIL has positive industrialrelations with better understanding, better co-operation between management and worker with greater emphasizing, grievance handling procedure, safety and various facilitiesprovided to the workers which motivates them to do their work hard. NEW TRENDS OF INDUSTRIAL RELATION :The march of SAIL towards profit after sustaining loss for last several years is nownoticeable from its result oriented performance, during 2003 -2004. The combined efforts of all its employees and officers under the leadership of the managing director

have made theturnaround of SAIL a successful phenomenon. This is now being sustained and improvingcontinuously. Mass Contact Exercise This meeting is popularly known as MCE in SAIL. It is a unique procedure prevailingin SAIL conducted by the MD itself. In this meeting the MD interacts with merely 1500workers every week (Wednesday, for 2 hours ). In this interaction nearly 50 differentemployees from all the departments of RSP priorities before the organisation are spilt out andfactors that can pull back the plant from profitability are discussed. In all such interactionsafety of human lives and maintenance of plant machinery and equipment are focused, theworkers also give their suggestion, discuss about their grievances along with the company'sprofitability.Very encouraging results have been achieved from a large number of workshops,interaction sessions, information sharing meetings and mass contact exercises on the survivaland future of RSP. Workers have started thinking for further improvement of the plant andhave come out with various suggestion many of which have been implemented such asworkers participation in the plant under the aforesaid process has reached its zenith and allthe employees both executives and non executives have thus directly participated in thedecision making process of the management. All this has resulted in improved work lifeculture, transparency in administration and an understanding of the need of hour to make theplants new found profitability a sustainable proposition. All the above activities are driven by the MD itself under a movement called "SAMSKAR "which is by itself unique in Indian Corporate history. TheSAMSKAR movement states that: -"We have to create and sustain a peaceful work environment where every employeecan contribute to the plant in assigned area of work with full freedom and dignity and withoutfear."In addition to the measures taken for implementation of various activities concerningwelfare, cleanliness, punctuality, system improvement etc steps have been taken to havebroad base discussion and considerations on the aforesaid aspects and other allied issues byinvolving other employees and other important groups to improve production and productivity.

Implementation of Presidential Directives on reservation for SC/STs Presidential Directives on Scheduled Castes and Scheduled Tribes continued to be implemented. As on 31st March 2010, out of total manpower 15.39% were SC and 12.76% were ST. During the year 2009, out of total recruitment of 594 made by SAIL, 136 candidates belonged to SC category and 40 candidates belonged to ST category. Besides, Company has undertaken several initiatives for the socio-economic development of SCs/STs and other weaker sections of the society, such as providing free education, boarding, loadging and medical facilities to 128 SC/ST students belonging to BPLfamilies/primitive tribes, awarding 132

scholarships to encourage meritorious and deserving SC/ST students and not charging tuition fee from SC/ST students studying in the Company run schools.