ctym08_09

LVhy vFkkWfjVh vkWQ bf.M;k fyfeVsM STEEL AUTHORITY OF INDIA LIMITEDeSustesaV Vªsfuax bULVhV~;wV MANAGEMENT TRAINING INSTITUTE

AUTHORSDURGApUR STEEL pLANTM. ChandrashekharS. SenguptaDeepak Prakash

bHILAI STEEL pLANTN. BhaskarAbhishek ShrivastavaAniruddha Bhagwat

ROURkELA STEEL pLANTDebadutta SatpathyMs Chaitali DasJayanta Sarkar

RAw MATERIALS DIvISIONB K GiriS K SonyR K Jena

bOkARO STEEL pLANTHarishanker SinghDebabrata Chowdhury

CENTRE FOR ENGINEERING & TECHNOLOGYA RiturajMs Ruma BhartiManish Kumar

IISCO STEEL pLANTSandip BiswasS Manoj KumarPriya Ranjan

L to R (Sitting on Chair) :

Ms Rum

a Bharti, Shri Manas R Panda, Shri S N

Singh, Shri G O

jha, Prof. J Akhter, Shri S P Patnaik, D

r Hari H

aran, Shri S Jena, Ms Chaitali D

as

Standing 1st Row

: Shri N

Bhaskar, Shri B K Giri, Shri M

Kumar, Shri D

Prakash, Shri R Jena, Shri P Ranjan, Shri S Sengupta, Shri S Biswas, Shri D

Chowdhuri, Shri J Sarkar

Standing 2nd Row

: Shri A

Rituraj, Shri A Bhagw

at, Shri A Shrivastava, Shri S K Sonny, Shri M

Chandrasekhar, Shri S Manoj Kum

ar, Shri H Singh, Shri D

Satpathy

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Building Competencies for Meeting the Challenges of Growth

A COMPENDIUM OF SELECTED PAPERSChairman’s Trophy for Young Managers, 2008-09

LVhy vFkkWfjVh vkWiQ bf.M;k fyfeVsMSTEEL AUTHORITY OF INDIA LIMITEDeSustesaV Vªsfuax bULVhV~;wVMANAGEMENT TRAINING INSTITUTE

ContentsForewordPreFaCeIntroduCtIon

wInner 1. durgapursteelPlant 1

M. ChandrashekharS. SenguptaDeepak Prakash

Jt.runners–uP

2. BhilaisteelPlant 38N BhaskarAbhishek ShrivastavaAniruddha Bhagwat

Jt.runners–uP 3. rourkelasteelPlant 99

Debadutta SatpathyMs Chaitali DasJayanta Sarkar

sPeCIalJuryaward 4. rawMaterialsdivision 144

B K Giri S K SonyR K Jena

FInalIst 5. BokarosteelPlant 179

Harishanker Singh Debabrata Chowdhury

FInalIst 6. Centreforengineering&technology 216

A Rituraj Ms Ruma Bharti Manish Kumar

FInalIst

7. IIsCosteelPlant 265Sandip Biswas S Manoj KumarPriya Ranjan

Chairman's Trophy for Young Managers Year, 2008-09

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winnersM. Chandrasekhar, Serior Manager, CEM

S. Sengupta, Senior Manager, CEM Deepak Prakash, Senior Manager, WRS

Durgapur steel Plant

inTrODUCTiOn

Two sons work for their father on the family's farm. The younger brother had for some years been given more responsibility and reward, and one day the older brother asks his father to explain why.

T he father says, "First, go to the Ghanshyam’s farm and see if they have any goats for sale - we need to add to our stock."

The brother soon returns with the answer, "Yes, they have five goats and they can sell to us."

That father then says, "Good, please ask them the price."

The son returns with the answer, "The goats are Rs. 500 each."

The father says, "Good, now ask if they can deliver the goats tomorrow."

And duly the son returns with the answer, "Yes, they can deliver the goats tomorrow."

The father asks the older brother to wait and listen, and then calls the younger brother from a nearby field, "Go to the Dhanpat Ram's Farm and see if they have any goats for sale - we need to add to our stock."

The younger brother soon returns with the answer, "Yes, they have five goats for Rs. 500 each or ten goats for Rs 400 each; and they can deliver them tomorrow - I asked them to deliver the five unless they heard otherwise from us in the next hour. And I agreed that if we want the extra five goats we could buy them at Rs 300 each."

The father turned to the older son, who nodded his head in appreciation - he now realised why his brother was given more responsibility and reward.

He was just competent.Competence, we believe, is that human attribute which underpins successful performance. It is the characteristic of a person that provides a competitive advantage to an organisation. Competence, therefore, lies in a combination of Capability, Ability, Skill, Fitness, Aptitude, Proficiency, Experience, Expertise and Know-how.

The father and the two brothers in the story reflect the present state of our SAIL corporate family.

"Building Competencies for Meeting the Challenges of Growth"

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We, as a team, in our quest for ‘Building Competencies for Meeting the Challenges of Growth’, will endeavour to develop more such ‘younger brothers’ (and sisters) in our SAIL family.

The Beacon BeckonsWE begin with the clarion call given by our Chairman Sri S K Roongta on 1st January 2008 to each one of us.

“If I haven’t been explicitly told ‘no’, then I can and must do it”.

“There are things that we can, and must, strive for as an organisation. We must delegate and empower, yet pay attention to detail and take ownership; we must ensure that all our plans and priorities are clearly understood down the line. We must be firm and unambiguous in our decisions, reflecting a clear and consistent pattern of thought and action. And while we do these and more, we must yet challenge accepted wisdom and existing processes and encourage others to do the same .……………..

We live in a time of unprecedented change; a time that places upon us the daily obligation to reinvent ourselves, to learn new skills, to do things differently, to assume new roles and responsibilities, to adapt to new situations and to cope with new challenges. The question for us today is not so much “How well did I do my job?”, as “How much did I change it?”

As our team embarks on a fascinating discovery in the rough seas – seeking answers to the theme of this year’s thesis – the Chairman’s pronouncement serves as a distant beacon atop a lighthouse. It is far away, yet visible. Directing us, guiding us, leading us to it, blowing a new wind in our SAIL.

WE, at the outset, put to ourselves a few questions for warming up.

1. Whatarethechallengesbeforeus(intermsofSAIL’sgrowth)?

2. Howshouldweidentifythecompetenciesneededtomeetthesechallenges?

3. Whatshouldbeourbenchmarksforattainingthedesiredlevelsofcompetence?

4. Competitiveadvantagedoesnotlieinsuperiorlandorbuildingormachinery.Ithastobethe peoplewhosecompetencemakesallthedifferencebetweenthebestandthealso-rans.Therefore,ifglobalcompetitivenessisthegoal,then,wheredowefigureinaone-to-onecomparisonatalllevelofemployeesbetweenaworldclasssteelmakerandSAIL?

5. Dothebestcompaniesintheworldthink,speakandworkthewaywedo?

6. And;ifthethreeofusweretoown,runandexpandSAIL,whatwillwedototransformourpeopleintobecomingworldclass?


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OUr rOADMAP TO COMPeTenCe BUiLDinG

Our team pondered over the task at hand armed with the Chairman’s communiqué. We adopted a three - pronged approach to steer our ideas towards the goal of ‘Building Competencies for Meeting the Challenges of Growth’

UnDersTAnDinG THe TOPiC

In the process of understanding the topic of our thesis, we, as a team, learnt that

1. Growthisaneconomicimperative.Economicgrowthimpliesapositivechangeintheamountofthegoodsandservicesproducedbyaneconomyoveracertainperiodoftime.

2. Challengesofgrowthforourorganisationpertaintothreelevels.

Challenges at the macro level

Improvingthedeliveryofcoreservices

Makinggrowthmoreinclusive

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1. Theoretical Study

2. Theoretical Research

3.Field Survey

Basic Readings onOrganisations, Growth

and Competencies

Literature on ProjectManagement

Knowledgesharing, exercises at

CHRD, DSP

PEST Analysis of theSteel Industry

Interviews

Michael Porter’s Five Forces Analysis

SWOT Analysis forcompetencies

Questionnaire

Data Analysis

Case Study - IProject ��9 by China

Case Study - IICompetence building in

CEM, DSP


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Sustaininggrowthbymanagingfiscalandtradedeficitsandacceleratingthespeedofgrowth

Challenges at the organisational level (Meeting Growth Plan 2011-12)

Formulatingmultiprongedstrategiestosustaingrowth

Meetingtheaspirationofvariousstakeholdersincludingemployees

Identifyingskillgapandquicklybridgingthegap

Recruitingandretainingtalent

Ensuringcontinual improvements inorganisationalstructures,systemandprocesses

Cultivatingthecultureofdelegationandpromptdecisionmaking

Challenges at the managerial level

Adjustingtogrowth

Changingthewayofdoingbusiness

Creatinganenvironmentoflearning,creativity,innovationandmutualrespect

Developingtrustinmiddleandfrontlineteamofmanagement

Challengingthestatusquo

Maximizingtheinternalefficiency

Our work is based on the fundamental premise that growth is directly linked to human capital and its productivity.

Although growth, perse, is natural to an entity’s existence, it does not just happen. Industries, as also biological organisms, have to put an effort to survive, let alone grow.

A similar venture 200 years agoOn completion of his voyage on the H.M.S. ‘Beagle’ from1830 to 1836, Charles Robert Darwin, English naturalist, completed his book on natural selection ‘On The Origin of Species’. The basic question was: What makes organisms adapt, survive and grow ?

Some of the key observations and the inferences drawn from his theories are:

1. Individuals less suited to the environment are less likely to survive and less likelytoreproduce,while individualsmoresuitedto theenvironmentaremore likely tosurviveandmorelikelytoreproduce.

2. Theindividualsthatsurvivearemostlikelytoleavetheirinheritabletraitstofuturegenerations.

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3. Thisslowlyeffectedprocessresultsinpopulationsthatadapttotheenvironmentovertime,andultimately,afterinterminablegenerations,thesevariationsaccumulatetoformnewvarieties,andultimately,newspecies.

Darwin did not live to see the 21st century. His theory still does - as much applicable to business organisations as it is to individuals.

We shall now apply such an understanding to our task of building competencies to meet the challenges of growth for SAIL namely:

1. ManagingExpansionto25MTby2011-12

2. Recruiting, Retaining and Building people for driving the expansion process tocompletion

3. Timelystabilizationofthenewunits

4. Sustainingmarketleadership

We begin with the theoretical research as part of our ‘Outside-In’ approach.

AnALYsis OF THe inDiAn sTeeL enVirOnMenT

Industrial growth entails a phase of challenges as well as opportunities. Our focus, hereafter, will be on the Indian Steel Industry with specific attention to SAIL.

To gather a definite understanding of the competitive market in which SAIL is a major player, we undertook an in-depth analysis of the steel industry. The objective was to zero-in from the external environment to the internal environment for SAIL. This outside - in approach would enable us to see each aspect of our work in its relevance to the larger perspective.

Our analysis of the external environment included:

– Analysis of the macro environment (“far” environment). In our case, it is the

steel industry in perspective. We have used the PEST analysis for evaluating the

factors affecting and enabling growth of the steel industry in India.

– Analysis of the micro environment (“near” environment, or competitive

environment). Here, we have used the � Forces Method of Michael E Porter to

determine the nature and extent of the competition for SAIL.


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Fig.1 : SAIL and the Indian Steel Environment

The PEST AnalysisPEST analysis stands for "Political, Economic, Social and Technological analysis" and describes a framework of macro environmental factors used in environmental scanning of strategic management. It gives a certain overview of the different macro environmental factors a company has to take into consideration for understanding market growth or decline, business position, potential and direction for operations. The analysis also recognizes the growing importance of environmental or ecological factors in the evaluation of industry in the 21st century.

A careful study of the SAIL’s macro-environment with the PEST analysis reveals the following:

Political:TheIndiansteelindustryisinanexpansionaryphasebackedbyaliberalpolicyenvironment.

NationalSteelPolicy–TheNationalSteelPolicyunveiledbytheGovernmentofIndiaintheYear2005isaimedatglobalcompetitivenessintermsofinternationalbenchmarksofefficiencyandproductivity.

Governmentalthrustonleasinganddevelopmentofmines.

Disbandmentofpricinganddistributioncontrolmechanism.However,duringtherecentsurgeininflationtheGovernmentdidasksteelmajorstoreininprices.

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Steel IndustryMacro Environment

SAIL'S ExternalEnvironment

Political

BargainingPower

of Suppliers

Threat ofNew Entrants

BargainingPower

of Buyers

Intensityof Rivalry

Threat of SubstitutesSocial

Technological

Economic

SAIL's InternalEnvironment


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Economic:Excellentdomesticdemanddrivenbygrowthininvestment,manufacturingandinfrastructure. During 2007-08, production and consumption of finished steelgrewby5.2%and10.1%respectivelyoverthepreviousyear.

Cyclicnatureofthesteelindustrymarket.Worldwide,steelpriceshavefluctuatedbetween$700pertonand$300pertoninthe1sthalfofFY2008-09.Productionhasdropped9.4%inSeptembercomparedtoCPLY.However,steelpricesareexpectedtorisefromthe4thquarterofcurrentFY.

CompetitionfromChinaandexcessavailabilityfromUkraineandThailand.

Social:Potentialforhugeemploymentgeneration.Oneman-yearofemploymentinthesteelindustrygeneratesadditional3.5man-yearsofemploymentinothersectors.

CorporateSocialResponsibilityisthebuzzwordamongallmajormanufacturers.CSR is also used to add more value to the corporate brand while also beingresponsivetothesocietyatlargeonwhoseresourcesthesteelplantsarerun.

Greenfieldprojectsraiseissuesoflandandsocialencroachment.

Technological:Identificationoftherighttechnologiesforthegreenfieldprojects.

Worldwidepressureonreductionincarbonemissions.

Thrust on improved efficiencies for better utilization of limited naturalresources.

Newproductdevelopmentisnowamajorchallengeforallsteelmakers.70%oftheproductsinthemarkettodayhavebeendevelopedinthelast10years.ThishasremovedthemyththatsteelproductsandtechnologytakegenerationsfromtheR&Dtothemarket.ThepaceofR&Dandnewprojectimplementationhasincreasedmanifold.

Morethrustonqualityandvalueaddedproductstocatertogrowingdemandsoftheautomotiveindustry.

Taking a Closer LookWhile the PEST analysis has given us an over view of the macro environment for the steel industry and its potential for growth, we will now delve deeper to get a closer picture of the industry dynamics.

The industry has already seen announcements of mega plans for expansion by leading domestic producers as well as global steel majors. We have categorized growth and challenges in the industry under three distinct heads:

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Types of growth Challenges for the Steel Industry1. Organic growth Challenges of

scaling upCapacity Expansion through Brownfield and Greenfield projects

2. Growth through mergers and acquisition

Challenges of assimilation

Examples of mergers of Arcelor & Mittal, takeover of Nat Steel and Corus by Tata Steel, merger of IISCO with SAIL, other small steel units with SAIL, etc.

3. Growth through innovation

Challenges of conversion

Non steel makers entering the steel business

A closer look at the expansion plans of the various steel making companies in India ( in Table 1 on next page ) vindicates the positive growth picture presented by the PEST analysis done by our team earlier.

Table – 1 Growth Plans of Indian Steel Manufacturers

Investor Existing Capacity

Brownfield Expansion 2011-12

Greenfield 2011-12

Total Capacity by

2011-12

Total Capacity proposed by

2019-20

SAIL 12.84 12.00 – 24.84 60.00

RINL 2.90 3.90 – 6.80 10.00

Tata Steel 5.00 5.00 3.00 13.00 33.50

Essar Steel 4.60 3.90 6.00 14.50 20.50

JSW Steel 4.10 6.90 – 11.00 31.00

JSPL 2.40 4.80 4.45 10.45 26.50

Ispat Industries 3.00 2.00 – 5.00 17.00

POSCO India – – – – 12.00

Arcelor-Mittal – – – – 24.00

Bhusan Power & Steel 1.20 – 2.80 4.00 7.00

Bhusan Steel 0.60 – 5.40 6.00 9.00

Others 22.00 2.00 7.07 28.47 42.43

Total 58.64 40.50 28.72 128.06 292.93

All figures are of crude steel capacity in million tonnes

Source: Iron and Steel Review


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AnALYsinG THe MiCrO (‘neAr’) enVirOnMenT FOr sAiL

The 5 - Forces AnalysisGoing by the ballpark estimate of Rs. 4,000 crore investment per million tonne of additional capacity, the huge intended steel capacity building up in the country will cause a likely investment of Rs. 2,76, 800 crore by year 2012 and Rs. 8,70,640 crore by year 2020. Coupled with these investments is the significant steps taken by the industry in improving productivity, conserving natural resources and energy, import substitution, quality upgrades, environment management and research & development.

The BIG question is: What are the implications of the above scenario for our company ?

SAIL has planned to double its steel production by 2011-12. The challenges before SAIL can broadly be categorized as

Timelycompletionofprojects

Sustainingmarketleadership

Diversifyingproductrangetoincludenewmarkets

Increasingcustomerfocusinallsphereofactivities

Retainingtalent

We have used Michael E. Porter’s Five Forces Analysis to determine the nature and extent of competition in the market for SAIL.

Fig.2 : Porter’s Five Forces Model for SAIL

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Threat of

Bargaining power of

Intensity of Threat of

Bargaining power of

New Entrants

Suppliers

Rivalry Substitutes

Value Chain

BuyersSAIL


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Challenges for SAIL emerging from the 5 Forces AnalysisA careful examination of the challenges posed by the 5 Forces, bearing in mind our growth plans and present and future competition, leads us to an array of competence clusters that we need to develop among our people. This is represented here in the form of a matrix.

THE GROWTH CHALLENGE vs. COMPETENCY MATRIX FOR SAIL

Porter’s 5 Forces

Identified Threats Challenges for SAIL

Required Competencies

1. Bargaining power of suppliers

Increase in prices of coking coal

Bring down energy consumption

Indigenous technology

Rethink on procurement methods

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1.BusinessAcumen

2.ProjectManagement

3.NegotiationSkills

4.StrategicPlanning

Non availability of low ash content coal in India

Supplier market for plant and technology for expansion

Dependence on imported machinery and spares

Suppliers of highly unionized labour calling the shots

2. Bargaining power of customers

Threat by the Railways to go for alternative sources

Wide customer base

Quality of product

Cost of manufacturing

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1.Customerfocus

2.Proactiveapproach

3.Effectivecommunication

Stringent quality requirements by automobile manufacturers

Price sensitive market due to no product differentiation

Availability of low grade cheap imports

3. Threat of substitute products

Increasing substitutes in the form of plastics, aluminum and advanced composites

Need to launch more value added products and services

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1.Inclinationtowardsresearchanddevelopment

2.Innovationandcreativity

3.Conceptualthinking


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Porter’s 5 Forces

Identified Threats Challenges for SAIL

Required Competencies

4.Threatofnewentrants

Decrease in market share Market consolidation through cost Establishing SAIL as a brand to thwart newcomers.Retaining talent

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1. CostConsciousness

2. Humanresourcemanagementfortalentretention

3. ProjectManagement

4. BrandManagement

Drain of skilled workforce

Lowering of prices due to lean and cost effective newcomers

Limited availability of suppliers of plant and machinery

5.Intensityofrivalry

Product similarity among steel majors.

Innovative product launchingKey account managementCost competitiveness

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1.Businessacumen2.Strategic

orientation3.Innovation.4.Staminaand

Adaptability

Major market share held by 4-5 companies

Similar expansion plans putting pressure on retention of human capital

Other competencies identified through survey :

Type of Competency Competency Traits

A.Competenciestomanagetheplannedcapacityexpansion

1. Project Management Skills

2. Commercial Knowledge

3. Team Building and Leadership Skills

B.Competenciestodealwithpeople

1. Focused approach2. Motivating employees3. Fostering teamwork4. Empowering people5. Managing change, effective communication6. Managing performance7. Inter-personal skill8. Building collaborative relationship

C.Competenciesformanagingself

1. Self confidence

2. Positive attitude

3. Learning through reading

4. Stress management

5. Personal credibility

6. Flexibility


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Competencies for Managing ProjectsIn case of projects, we have learnt that Project Management (PM) Skills are identified by means of a framework normally used for mapping and identifying activities related to the project. The PM framework used is as given below.

Table - 2 The Project Management Framework

Project Process PhasesInitiating Planning Executing Monitoring

& controlling

Closing

1 2 3 4 5

A Scope Management A1 A2 .. .. ..

B Time Management

C Cost Management

D Quality Management

E HR Management

F Procurement Management F5

A project would be measured along the parameters A – F during the phases 1 – 5. Therefore, in order to execute a world class project, we need to get the best combination A1, A2, A3, .., F5.

The above framework helps us identify the requisite skills for each combination during the various project stages. For example, for C1 – the skills required would be to have a good idea of the demand and the price for the product. A wrong estimation would have a negative impact on the project returns. Again, for E2 – the project manager should be able to discern the capabilities required in the team – skill sets, knowledge, adaptability, drive, etc.

Competence SWOT for SAILHaving identified the competencies required for our people to manage growth and compete with the best in the world, we undertook a SWOT analysis of our organisation to understand where we stand in terms of competencies.

Strengths Weaknesses

1.Highlyskilledworkforce

2.Vastlyexperiencedmanpower

3.Technicalexpertise

4.Excellentfirefighters

5.Flexibility

1.Noexperienceinprojectmanagement

2.Nocompetencebasedrecruitment3.Lessthrustonstrategic

management4.Absenceoflearningculture


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Opportunities Threats

1.Edgeovernewentrantsinstabilizingtheplant

2.Competencetodevelopsteelfornuclearpowerplantsafterthe123Agreement

3.Learningtobecostconscioustoseethroughtheleanphase

4.Successfuladaptationtothenewtechnology.

1.NewEngineersnotinclinedtojoinmanufacturingindustry

2.Poachingofexistingtalentbynewentrantsinthebusiness

THe reseArCH wOrK

After analyzing the macro and the micro environments and learning about the competency clusters required to neutralize the five forces affecting our growth, we set out to tap the huge pool of experience gathered in the organization through years of practicing managerial abilities in the industry. We sought opinion from our senior executives who are directly involved in the decision making process. We asked them four basic questions (as noted below) to understand their perceptions of the challenges ahead of SAIL, the competencies required to meet those challenges and ways to develop those competencies. The responses to the interview questions are summarized in Table 3 :

Table 3 : The responses of the interviews

Q1. What are the strengths of SAIL?

Huge experience in steel making, R & D and marketingSkilled workforceCountry wide sales networkReliable brand nameStrong financial positioningAvailability of iron oreMature production baseLeader in domestic market

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Q2. What are the challenges ahead of SAIL?

Timely completion of projectsSynergising the organisation in becoming world classFaster response time Optimising manpower and retaining talentSustaining market leadershipDiversifying product range to include new marketsIncreasing customer focus in all sphere of activities

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Q3. What are the competencies required to meet those challenges?

Business acumenLong term visionLeadership capabilitiesProject management skillsCustomer orientationStrategic orientationSystematic approachTeam buildingSuccession planningCreativity

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Q4. How to develop those competencies?

Communication across the organisation of company’s vision, mission , goals and objectivesTraining & development in the related skills.Employee empowermentKnowledge sharingJob rotationMake people accountable for their actionsMake all employees cost consciousPromotion of QCs, suggestion schemes

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The answers to the interview questions gave us enough insight on the strengths of SAIL, the challenges ahead and the competencies required to sustain growth. We then moved on from the decision makers to the executors who are directly responsible for implementing the policies of the organization. We developed a questionnaire (designed on the modified Likert Scale) based on the Growth-Competency Matrix derived from the 5 Forces Analysis and the views expressed in the interviews to understand the perception of people at the level of executors. Our questionnaire had 46 questions from 8 broad fields as listed in Table 4:

Table 4 : The questionnaire categories

Sl. Subject Question nos.1. Learning culture Q1, Q11, Q16, Q21, Q27, Q33, Q412. Ownership/ accountability Q2, Q7, Q18, Q22, Q28, Q34, Q37, Q44

3. Benchmarking/ consistency Q3, Q8, Q17, Q23, Q29, Q35, Q42

4. Systems concept Q4, Q9, Q14, Q24, Q32, Q36, Q43, Q45

5. Vision/ strategy Q10, Q15, Q20, Q26

6. Innovative approach Q5, Q38, Q46

7. Customer focus Q12, Q31, Q40

8. Project handling Q6, Q13, Q19, Q25, Q30, Q39


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A total of 140 respondents from operation, maintenance and service areas across the organization were approached. They were asked to mark their responses to items on a scale of 1 to 4, with 1 meaning “Strongly Disagree”, and 4 meaning “Strongly Agree”. We had deliberately left out the middle path i.e. “undecided” (or “can’t say”) to have clear opinion from respondents. To analyze the responses, we then entered the data into a database and calculated the weighted average for each question to arrive at the mean score ( as shown in Annexure-III). The questions are then clubbed category wise and the percentage response against each category are plotted. The results were interpreted as :

MeanScore>3.0 : Theattributeishighlyvisibleintheorganization

2.75<MeanScore<3.0 : The attribute exists in quite a good extent in theorganisation

2.50<MeanScore<2.75 : Theattributeismoderatelyvisibleintheorganisation

MeanScore<2.50 : Theattributeisrarelyvisibleintheorganization

Analysis of responses :We, then plotted the weighted average obtained from responses against each question in a particular field. We also plotted the percentage of responses with all the questions in that field clubbed together.

LEARNING CULTURE (Mean score = 2.43)

Findings and analysis : Themeanscoreof2.43saysthatthelearningcultureattributeisrarelyvisibleintheorganizationandalotofeffortistobeputintothisaspect.

50% of the respondents “disagree” that a learning culture exists in theorganization.

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OWNERSHIP/ ACCOUNTABILITY (Mean score = 2.50)

Findings and analysis :

The mean score of 2.50 says that ownership and accountability is moderatelyvisibleinourorganization.Alotofeffortisneededtoimprovetheperception.

47%oftherespondents“disagree”thattheattributesexistintheirworkplace.

BENCHMARKING/ CONSISTENCY (Mean score = 2.52)

Findings and analysis : Themeanscoreof2.52 says thatbenchmarkingandconsistency ismoderatelyvisibleinourorganization.

The weighted average of 1.85 in Question.3 of this category (We have clearlydefinedbenchmarksforperformanceforallactivitiesinthedepartment)indicatestheneedofestablishingbenchmarks.

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SYSTEMS CONCEPT (Mean score = 2.75)


Themeanscoreof2.75indicatesthattheattributeexistsinquiteagoodextentintheorganization.

66% of the respondents “agree” that they find a systems approach in theirworkarea.

VISION/ STRATEGY (Mean score = 2.90)


Themeanscoreof2.90indicatestheexistenceofaclearcutvisionandstrategyintheorganization.

73%oftherespondents“agree”thattheyareawareofthecompany’svision.

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INNOVATIVE APPROACH (Mean score = 2.62)


Themeanscoreof2.62indicatesthatinnovativeapproachismoderatelyvisibleintheorganization.

62% of respondents “agree” that they resort to “out of the box” solutions inproblemsituations.

CUSTOMER FOCUS (Mean score = 2.52)

Findings and analysis :The mean score of 2.52 in customer focus is not at all a good indicator. Thecompanyneedstotakethematterveryseriously.

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45%oftherespondentsdonotagreethatcustomerorientationisvisibleintheirworkplace.

PROJECT HANDLING (Mean score = 2.16)


Themeanscoreof2.16saysthattheprojecthandlingskillisrarelyvisibleinthe

organizationandalotofeffortistobeputintothisaspect.

Goodmanagersaregenerallynotreleasedforhandlingprojectjobs.

Peoplearegenerallynottrainedbeforethenewequipmentissetup.

DeVeLOPinG THe sOLUTiOn

Our work thus far has helped us zero-in towards the task of identifying the competencies

that we need to build in our people. These competencies, we believe, will lead us

towards attaining a long-term competitive advantage for SAIL.

The task does not end here. Based on the findings of the research, our understanding

of the prevalent environment in our plants and knowing the future potential of our

company as displayed in the eagerness and initiatives of the top management, we now

present our solution for Building Competencies for Meeting the Challenges of Growth

for SAIL.

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Fig.3 : Development of Action Plan

We call it “The 8 Cs Model for Building Competencies”.

THe 8 Cs MODeL

The 8 Cs Model encompasses four necessary criteria for Building Competencies in SAIL for Meeting the Challenges of Growth.

1. Developingpeoplehastobeanindispensiblepartofacompany’sbusinessstrategy.

2. OurinternalhumanresourcesshouldbecomeacrucialmeansforManagingGrowthPlan2011-12

3. Employees need to acquire and practice new concepts for the growth of self andorganisation.

4. Forachievingtheabove,thecompanyshouldcreateanenvironmentofcontinuouslearningbyensuringthatalltrainingisstrategicandresultoriented.

ACTION PLAN

for Building Competencies

Assessing the gap between the requiredcompetencies and the present level measuredusing the Competency SWOT and Questionnaire

Identifying focal areas for competency buildingusing Michel Porter's 5 Forces Method andInterviews with DSP top brass (Growth- Competence Matrix)

Gauging the growth potential of the IndianSteel Business by using the PEST Analysis

Mapping the task for developingcompetencies to take on the best in the world

The Solution

Th

e R

es

ea

rch

Me

tho

do

log

y


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Fig.4 : The 8Cs Model for Building Competencies

ACTION PLAN – The 8 Cs Model Explained

1. Catch them Young - Lead them alonga. Set up ‘The SAIL University”. Admit students after Std. �0th or Std. ��th

through an open selection process. Start degree and diploma courses on “Steel Technology and Management”. Teach them on basics of Steel Making, HR Management, Project Management, Financial Management, Business Skills etc. as general subjects and some specialization in the final year. Link practical sessions with plant work.

b. Recruit on merit at suitable levels. The process will reduce time and money normally invested in recruitment and development of people.

c. Assign a mentor to every new recruit (MTTs, SOTs, JOTs included) in the organisation. Set performance parameters for both of them.

Collapse Time

Catch

them

Young Compel toExel

Cultivate Project Outlook

CommunicateContinously

Create SystemDependence

Craft aLearningCulture

Call themCEOs

The 8 Cs Modelfor

BuildingCompetencies for

Meeting theChallenges of

Growth


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2. Compel to Excel a. Create an atmosphere where employees at all levels are compelled to enhance

their skill, job - knowledge, attitude.

b. Give small SMART projects. Evaluate performance and link consistent performance to remuneration.

c. Conduct compulsory ‘functional test’ for promoting a person to the next grade. Enable a system of faster advancement for deserving candidates.

d. Make the new ‘Performance Management System’ applicable at all levels and follow it in its true spirit.

3. Cultivate Project Outlooka. All functional managers should be trained in Project Management before

reaching the E� grade.

b. Apply Management by Projects approach by treating aspects of ongoing operations as projects using Project Management tools.

c. In order to ensure ownership of the project in one hand, designate the production manager as the project manager. A matrix organisation with operations and project people will help in quick decision making and good project progress. ( In our present set up, the project ownership gets transferred from the project head to the operations head. This is an area of potential conflict of interest).

4. Collapse Time - Cut Costa. Set benchmarks for each activity and encourage employees to reduce time.

b. To eliminate time overruns, train and equip Projects personnel in the use of latest Project Management tools.

c. Target zero delays by developing competence of maintenance people in the use of predictive maintenance tools.

d. Educate and train employees at ALL levels about the cost aspects of each item and function at their workplace so as to develop organisation wide cost consciousness. Every service comes with a cost. The investment made in educating employees is far less than the benefits derived.

5. Communicate Continuouslya. Communicate Company Vision, Mission, Goals, Objectives and Strategy to all

employees.

b. Ensure that each employee is aware of the company's position at any point of time through various means of communication.

c. Impart training on competencies identified in the Growth-Competency Matrix developed by the authors.

d. Follow up training programmes by SMART projects and performance review.


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6. Create System Dependencea. We want to see our organisation as more system oriented rather than an

individual dependant one. Adherence to SOPs, SMPs, QMS, OHSAS systems, �00 % implementation of ERP are the key words in our model.

b. We suggest periodic job rotation in the organisation to ensure

(i) overall development of our managers

(ii) to help in succession planning and also

(iii) to do away with dependence on individual brilliance

7. Craft a Learning Culture a. Encourage knowledge sharing within SAIL plants. Make ‘Knowledge

Management’ an essential part of the organisation. We cannot always retain talent for ever; but we can and should retain knowledge.

b. Expose each employee to the best industry practices relating to his/her work.

c. Reward learning in multifunctional areas by developing a system of faster advancement on the basis of competencies developed.

d. Encourage a habit of reading by providing opportunities to demonstrate new learning.

8. Call them CEOs a. Empowerment is the key word in our model. We want to see every HOS and HOD

as CEO of his/her department with full authority to function as an entrepreneur and convert his/her work area into a profit centre. We believe that competencies are sharpened on use and that human excellence results from assuming a higher degree of responsibility.

b. Ensure that all HODs in SAIL have worked on at least one project assignment before.

Also RecommendedWe also recommend that there should be a “SAIL Business Excellence Trophy” for the ‘Best Department’ and ‘Best Employee’ in every plant/unit based on the annual performance against our “Eight Cs Model for Building Competencies”.

Some Final Thoughts

1. The“EightCsModelforBuildingCompetencies”isdesignedtobecomeaCompanyPhilosophy for the overall excellence of SAIL. It is aimed at making our peoplecompetenttomanageourGrowthPlan2011-12successfully.

2. Weexpectourpeopletodaretodream,chartnewcoursesandinspireotherstodothesame.


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3. Webeganaskingourselveswhetherwehavethepeopletomatchthebestintheworld–onetoone.Havinggonethroughourworkandbyadoptingthe“EightCsModelforBuildingCompetencies”,weareconfidentthatSAILmenwillkeeptouchingnewshoresintheturbulentsteelindustry.

4. WeareaptlyremindedofourManagingDirector’sproclamationthat“Wedonotmakesteel.Wemakethepeoplewhomakesteel”.

The “Eight Cs Model for Building Competencies” will stand testimony to that.

References1. Competitive Strategy by Michael E. Porter (1980)

2. Competitive Advantage by Michael E. Porter (1985)

3. Fish ! by Stephen Lundin

4. Guide to Project Management Book of Knowledge (PMBOK) by The Project Management Institute

5. Human Competence – Engineering Worthy Performance by Thomas F. Gilbert (2007)

6. Why Companies Fail by Mark Ingebretsen (2003)

7. The Corporate Story of SAIL by N R Srinivasan (1990)

8. National Steel Policy by Ministry of Steel , Govt. of India (2005)

9. PEST Analysis from Businessballs.com

10. Macro Environmental Analysis for Strategic Management by L Fahey and V K Narayanan (1986)

11. Research Methodology by Dr. W G K Taylor and Dr. T K Ghoshal

12. Organisational Strategies and Processes edited by Dr. A Kumar and Dr. Hariharan

13. Workshops and Study material on Strategic Management by Prof. Ranjan Das

14. Knowledge Sharing Exercises at CHRD, Durgapur Steel Plant


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Annexure-I

CAse sTUDY - i

Learning from China – Preparations for Beijing 2008 and Project 119 on how organisation wide initiatives in development of new areas of competence result in unprecedented growth.

The Beijing Olympics was a case of triumphant strategy execution.

A) All Strategy Execution Projects begin with a Big Dream and a Robust Planning Exercise done by an Empowered Steering Committee.Having studied theearlierOlympic Games, the Beijing Organizing Committee for the Games (BOCOG)outlinedindetail thevastresourcesandrequirements thatwereessential tocreatean infrastructure that could support such amassive sporting event.They carefullyresearchedwhatworkedandwhatdidnotwiththeOlympics,especiallytheOlympicsatSydney&Atlanta.

Tointegratetheactivitiesofkeycentralgovernmentministries,theBeijingMunicipalGovernment, and BOCOG, the Chinese government created a high-level steeringcommittee.Theyappointed then-ExecutiveVicePremierLiLanqingas the leader.AsthekeydriveroftheOlympicproject,LiLanqingwasempoweredtotakequickdecisionsandsolicittopleadershipsupport.

The Chinese understood the need of having careful coordination among IOC,BOCOG,andBeijingcity.TherewerelessonstobelearntfrompoorcoordinationatAtlantagames,wherethecitywasnotadequatelyintheloop.BOCOGwasthereforestaffedadequatelywithBeijingMunicipalGovernmentofficials.

Lessons for us in SAIL

a. FormaProjectsSteeringCommitteecomprisingbothprojectsandenduserpersonnel

b. Empowerthekeydrivertotakequickdecisions

c. Ensuretopmanagementsupport

d. Analysesimilarprojectsundertakeninthepast

B) Construction of the Olympic City: To understand the whole process of strategyexecution,wewillstudythemakingofthemainOlympicstadium"Bird'sNest".TheChinesecombinedthebestavailableresourcesintheformofrecruitingforeigntalentwithbestpractices andvast experience alongwith the country’s vastpoolof skilledmanpower.China'slow-wageworkersgavetheforeignarchitectsthefreedomtodesignstructuresthatwouldbeprohibitivelyexpensivetobuildinthewest.


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Foreign architects, on their part, used technology that could be handled by crews working round the clock and at a massive speed. This helped the foreigners to complete most Olympic venues in a remarkably short time, often within three to four years. This resulted in a remarkable structure that was the best in the world by any standards.

In addition to the ‘Bird’s Nest”, many other stunning architectural feats came up in Beijing in a very short span of 3-4 years. The Olympic city transformed Beijing forcing it to shed its old skin as was evident in its ability to overcome routine organizational and bureaucratic hurdles.

Lessons for us in SAILa. Planfor24hourutilizationofmodernconstructionequipment.Trainourpeopleinthese.

b. Enableteambuildingexercisesbetweenexpertsandtheteammembersforfasterandbettercommunication.Followupeachactivityrigorously.

C) Project119:TargetingGrowthwithSuperbFocus&GreatExecution

Launched in 2001, Project 119 was named after the number of gold medals thenoffered in track and field, swimming and otherwater-based events like rowing, inwhichChinawastraditionallyweak.Itgoesbacktothe2000GamesinSydneywhenChinawonjustonegoldinProject119disciplines.Anopportunitywasspotted:ifChinacouldimproveintheseareas,itmightcleanupoverall.

Like theconstructionproject, theChineseapproachedthetaskofdominatingtheOlympics with top-down military style disciplined execution. They outlined theirobjectives,plannedaprogram,investedconsiderableresources,acquiredstate-of-the-arttechnologyandimportedworld-classforeigntalent.

TheChinesehandpickedandtrainedtwohundredthousandkidsinstate-runsportsschools.Unprecedentedsystemicdiscipline,highsportbudgets,state-of-the-artforeigntechnologyandproveninternationalcoacheshaveallbeenincorporatedintoProject119.Thirty-eightforeigncoacheswerehiredtohelptrainChina'steams,oftenwiththeexplicitunderstandingthattheyproducegold-winningathletes.

Chinawongoldmedalsin16of28Olympicdisciplines,upfrom14fouryearsagoinAthensand10atthe2000SydneyGames.WhileChinatargetsgreatergloryinLondon2012,Project119isnotgoingtoendanytimesoonasnine-year-oldZhangHuimanistrainingfortheOlympicgold,running20milesadaypreparingforthegamesof2020.

Lessons for us in SAILa. IdentifyourweakareasinProjectExecution.Plantotransformthoseintoourstrengths

byinvestinginresourcestechnology.

b. PursueGrowthPlan2011-12withunendingzealandtimeboundtargets.

c. Recruityoungtalentandtunethemtomeetresults.


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CAse sTUDY – ii

A Case Study of CEM Department, Durgapur Steel Plant

A study of successful transformation through competence building

Profile of CEM Department :We, the authors, are working in the CEM department for the last fifteen years. The Central Engineering Maintenance (CEM) department is the captive engineering shop of Durgapur Steel Plant. Our department caters to both manufacturing and reclamation needs of the entire steel plant. Our turnover was Rs 5200 lakhs in the financial year 2007-08 and we produced high value cost saving items worth 1800 lakhs. During our working, we have experienced many highs and lows in the department along with the movement of fortune of our plant. In the last few years, with the introduction of modern technology, the demand of user departments has also changed. Quality of output and time commitment are the major issues concerning our department.

Before the thrust was given : CEM was considered yet another service department which was invoked when necessary and ignored when convenient. Over the years, the department could not strategically align with the main functional areas in spite of substantially fulfilling the requirement of spares.The hierarchical structure of executives in the department resulted in slow decision making and an absence of empowerment at the shop floor level. The composition of non-executives was a rich mix of highly skilled and experienced persons, semi-literate unskilled persons and a young bunch of educated trainee operators. However, the absence of systematic skill retention and development of competencies resulted in a mediocre level of output.The machinery and equipment was installed mostly during 1960s, most of which were prone to frequent breakdown and found wanting in reliability. The internal manufacturing plan was more suited to maintaining the status quo of the department than to satisfying the customer needs on priority basis.

The above factors displayed a poor image of the department amongst the internal customers who, given a chance, always looked for vendors outside DSP.

Beginning of the change process : Towards the middle of 2006, leadership changes led to a different view of the department. The compulsion to change was also catalysed by an organisation - wide restructuring of manpower for better productivity. A continuous depletion of skill due to superannuation coupled with increasing demand of high value spares by the plant necessitated a rethink.

A

A

A

A

A

A


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The following areas were identified to meet the challenges of survival and growth:

1. Replacementofoldanduneconomicmachinery

2. Regularmanufactureofcostsavingitemsincludingnewprojectsupplies

3. Developmentofemployeesinmulti-skills

4. Exposureofemployeestoupgradedfacilities

Effecting the change – Initiatives takenThe biggest challenge before the department was to transform into a dynamic business unit with upgraded facilities and competent workforce. This was accomplished through the following actions:

1. Aplannedapproachwasundertakentomanufacturecostsavingitemswithannualturnovertargets.

2. New CNC Machining Centres were installed. This increased the capability andproductivityoftheshops.

3. Employees–executiveandnonexecutiveweredevelopedthrough–

a. Competence mapping

b. Identifying required competences – for today and tomorrow

c. Systematic training – both in-house and outside DSP

d. Exposure to other plants and modernized units

e. Job rotation and redeployment based on changed needs

4. ThrustonqualityandcustomerfocuswasgiventhrougheffectiveimplementationofISO9001–2000QMS.

5. Structured meeting with customers. Monthly meetings are held at HOD level toidentifyrequirements.

6. RegularPIWs(PerformanceImprove-mentWorkshops)wereconductedwhichservedthedualpurposeof

a. Department wide communication of tasks, targets and production plans

b. Involvement of people and new idea generation through brainstorming. Most of the faculty was drawn from among experienced non executives

7. Roleclarityatall levels ledtofasterdecisionmakingandeffectivecommunicationwithcustomers.Attheshiftlevel,theshiftin-chargeandgroupleadersinalltheshopswereempoweredtocontactuserdepartmentsdirectlyandtakedecisions.


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The visible change – reaping the benefits From a passive service department, CEM has emerged as a vibrant unit of Durgapur Steel Plant working in tandem with the primary units.

CEM is now a cost and quality conscious department committed to meet customer requirements.

User departments now look to CEM as the first choice for supply of spares.

The work force is lean, more energetic and highly motivated. The performance of CEM’s Quality Circle teams at the national and international levels stands testimony to the marked change effected.

Executives from CEM are now a part of various plant level committees for improving performance in varied areas.

From a turnover of Rs. 3500 lakhs in 2005-06 CEM now has recorded a turnover of Rs. 5215 lakhs in 2007-08.

The successful venture has made CEM an ideal case to rise to the next level of becoming a Profit Centre.


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Annexure-II

sUrVeY insTrUMenT i : inTerView QUesTiOns

Dear Madam / Sir,

The following questions have been designed for the purpose of undertaking a research work titled “Building Competencies for Meeting the Challenges of Growth” for the SAIL Chairman’s Trophy for Young Managers 2008-09. Please write your valuable views on the topics mentioned below.

We thank you for your time and effort.

M Chandrasekhar Subhasis Sengupta Deepak PrakashSr. Manager, CEM Sr. Manager, CEM Sr.Manager, WRS

RESPONDENT PROFILE

Designation

No. of years in SAIL

INTERVIEW QUESTIONS 1. Whatarethestrengthsofourorganization?

2. Whatarethechallengesahead?

3. Whatweneedtoequipourpeoplewithtomeetthesechallenges? (Inotherwords,whatarethecompetencies required to meet the challenges ?)

4. Howdowebuildtherequiredcompetencies?


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Annexure-III

sUrVeY insTrUMenT ii : QUesTiOnnAire

Dear Madam / Sir,

The following questionnaire has been designed for the purpose of undertaking a research work titled “Building Competencies to meet the Challenges of Growth” for the SAIL Chairman’s Trophy for Young Managers 2008-09. Please put your tick under the rank ( 1, 2, 3 or 4 ) against each statement that you consider as is being practiced in our organisation.

1 = Strongly Disagree 2 = Disagree 3 = Agree 4 = Strongly Agree

We thank you for your time and effort.

M Chandrasekhar Subhasis Sengupta Deepak PrakashSr. Manager, CEM Sr. Manager, CEM Sr.Manager, WRS

RESPONDENT PROFILE

Your present job position Operation. / Maintenance. /Services

Your present grade

No. of years at work

QUESTIONNAIRE

Sl. StatementRank

� � � �

1. Employees regularly refer to books, journals, internet to update their job related knowledge

2. Employees take responsibility of the jobs assigned to them

3. We have clearly defined benchmarks for performance for all activities in the department

4. We do not keep a job pending if the expert in that area is absent on a particular day

5. New work concepts are easily assimilated in normal activities


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Sl. StatementRank

� � � ��. In our department Technical Specification for new equipments

are made considering all aspects7. People do not look at others (to shift responsibility) in case of

failures8. Our performance is more or less consistent throughout the year9. There is a system of maintaining breakdown history and

referring to that in my work area10. My department has a plan to fulfill the annual targets11. The organization supports application of learning into assigned

jobs.12. Employees are authorized to decide the mode of functioning

in their work area.13. People handling projects in my work area are trained in project

management14. If an experienced employee retires, we do not face much

problem to fill the gap15. I know the targets of my department and have my plan in

place to achieve those16. The knowledge and skill acquired from training is utilized in

the organization17. We know the production standards set for us and strive to

achieve those18. Employees know the cost implication of the job they do and

also the cost of resources utilized19. Most of the new plants were completed in scheduled time in

our organisation20. Each employee’s work is aligned with the organizational goals21. Problems are analyzed and long term solutions are found out

rather than short term (kaam chalao) solution22. Employees normally meet commitments on time, quality and

desired level of performance23. In my area, all the related agencies work in harmony24. SOPs and SMPs are clearly followed in my department25. Only the good managers are normally assigned to handle

projects in my department


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Sl. StatementRank

� � � �26. The target fulfillment and shortfalls are discussed in the

department27. We get sufficient learning exposure in our present job

position28. Employees do not require persuasion / supervision to do their

job29. If the output is low on a particular day, the shortfall is analyzed

and addressed immediately30. We have a plan in place for stabilization of the new equipments

in our work area31. There is a ‘customer orientation’ in all decisions32. There is a continuous and visible improvement in our processes33. Knowledge relating to work is shared across the organization34. Employees take ownership of their jobs35. Consistent performance is encouraged in my department36. There is a system of job rotation for all levels in my

department37. In our organisation, we can speed up the process whenever we

feel the need38. At our workplace, we encourage innovation and implement

new ideas39. In our organisation people are identified and trained in

advance before the new equipment is set up40. End user requirements are considered in all spheres of activities

that we undertake41. Employees have easy access to learning aids42. We are aware of our performance as compared to the best in

the industry43. A clear guideline is available on how a particular job will be

done44. We consider cost implications in most of our decisions45. In my department, we depend more on teams than on

individual brilliance46. In problem situations, we also resort to “out of the box”

solutions


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Annexure-IV

QUesTiOnnAire resULT sUMMArY

Total Survey Population: 140

1. Category wise break up of survey population


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2. Questionnaire Response

Statement Rank Wgt Avg

� � � �

Learning culture Mean score = 2.43Employees regularly refer to books, journals, internet to update their job related knowledge

34 66 28 12 2.13

The organization supports application of learning into assigned jobs

30 59 34 17 2.27

The knowledge and skill acquired from training is utilized in the organization

10 38 62 30 2.80

Problems are analyzed and long term solutions are found out rather than short term (kaam chalao) solution

31 41 53 15 2.37

We get sufficient learning exposure in our present job position 13 22 81 24 2.83

Knowledge relating to work is shared across the organization 42 53 44 1 2.03

Employees have easy access to learning aids 22 32 68 18 2.59

Ownership /Accountability Mean score = 2.5Employees take responsibility of the jobs assigned to them 39 46 37 18 2.24

People do not look at others (to shift responsibility) in case of failures

10 31 81 18 2.76

Employees know the cost implication of the job they do and also the cost of resources utilized

45 56 28 11 2.04

Employees normally meet commitments on time, quality and desired level of performance

18 47 61 14 2.51

Employees do not require persuasion / supervision to do their job

37 39 44 20 2.34

Employees take ownership of their jobs 12 37 82 9 2.63

In our organisation, we can speed up the process whenever we feel the need

4 14 66 56 3.24

We consider cost implications in most of our decisions 29 67 26 18 2.24

Benchmarking /Consistency Mean score = 2.52We have clearly defined benchmarks for performance for all activities in the dept

65 42 22 11 1.85

Our performance is more or less consistent throughout the year

15 26 68 31 2.82


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We know the production standards set for us and strive to achieve those

8 39 74 19 2.74

In my area, all the related agencies work in harmony 12 39 74 15 2.66

If the output is low on a particular day, the shortfall is analyzed and addressed immediately

27 38 51 24 2.51

Consistent performance is encouraged in my department 0 28 87 25 2.98

We are aware of our performance as compared to the best in the industry

45 50 31 14 2.10

Systems concept Mean score = 2.75

We do not keep a job pending if the expert in that area is absent on a particular day

26 38 56 20 2.50

There is a system of maintaining breakdown history and referring to that in my work area

8 28 75 29 2.89

If an experienced employee retires, we do not face much problem to fill the gap

8 18 68 46 3.09

SOPs and SMPs are clearly followed in my department 6 24 73 37 3.01

There is a continuous and visible improvement in our processes 11 26 79 24 2.83

There is a system of job rotation for all levels in my department

41 57 42 0 2.01

A clear guideline is available on how a particular job will be done

9 19 81 31 2.96

In my department, we depend more on teams than on individual brilliance

15 50 41 34 2.67

Vision /Strategy Mean score = 2.90

My department has a plan to fulfill the annual targets 4 21 60 55 3.19

I know the targets of my department and have my plan in place to achieve those

11 29 78 22 2.79

Each employee’s work is aligned with the organizational goals 27 41 51 21 2.47

The target fulfillment and shortfalls are discussed in the department

4 10 85 41 3.16

Innovative approach Mean score = 2.62

New work concepts are easily assimilated in normal activities

18 29 67 26 2.72


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At our workplace, we encourage innovation and implement new ideas

10 22 89 19 2.84

In problem situations, we also resort to “out of the box” solutions

29 49 54 8 2.29

Customer focus Mean score = 2.52

Employees are authorized to decide the mode of functioning in their work area

22 47 51 20 2.49

There is a ‘customer orientation’ in all decisions 31 42 42 25 2.44

End user requirements are considered in all spheres of activities that we undertake

16 29 83 12 2.65

Project handling Mean score = 2.16

In our department TS for new equipments are made considering all aspects

39 52 34 15 2.18

People handling projects in my work area are trained in project management

42 54 35 9 2.08

Most of the new plants were completed in scheduled time in our organisation

34 36 50 20 2.40

Only the good managers are normally assigned to handle projects in my department

49 52 35 4 1.95

We have a plan in place for stabilization of the new equipments in our work area

27 42 49 22 2.47

In our organisation people are identified and trained in advance before the new equipment is set up

51 56 29 4 1.90


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Jt. runners–upN Bhaskar, AGM (Opr), SMS II

Abhishek Shrivastava, JM (Projects–Steel Zone) Aniruddha Bhagwat, JM (Projects–Steel Zone)

Bhilai steel plant

IntroductIon

I’m a Divine Spirit…

I’m seeing myself through past….

I am a ‘New Born Baby’….Lots of people are around me…. I’m feeling cold. …People are looking at my face. There is a strange feeling which is engulfing me as if I am out of an envelope. Besides me a lady is sitting….. She is looking at my eyes with loads of affection and love. She is my mom…. I am six months old now. My mom holds me, cuddles me, sings and talks to me. She is interacting with me. Her every action is stimulating my brain development. I can recognize voices. Everybody is encouraging me to speak... They want me to talk....They are rattling and hanging bright coloured objects around me so that I stand and grab them….They want me to stand up and move my hands to grab it. They are encouraging me to walk. They want me to walk…!!I am standing on my feet…I am 15 months old now… I have become a demon explorer …. I am curious about everything around me…I want to explore...My mom is keeping a watch on my activities. She is now beginning to set my limits. She is trying to make me aware about right & wrong. At times my dad shows affection & praise for my good behaviour…. This is adding up to my self esteem & confidence. !!They are making me feel good about myself…I am four years old now. I am having playmates…. My mom told me to take care of my friends…and to share my toys with them…… I really enjoy playing with them...I have been playing co–operatively with my friends…. I am in kindergarten. Lots of reading materials & picture books have been provided to me. I am more imaginative now. Everybody is encouraging me to read..!! They are giving me simple task to do...They are also engaging me in make–believe & dress up play in which I assume a specific role...They are enhancing my cognitive skills….!! I am a graduate… A fully grown up individual!! With lots of courage, confidence, conviction and faith, I am ready to take on challenges of life...!! I have been equipped with all the knowledge, skills & attributes required for success…They have transformed me into Competent Individual to face the future challenges of the world…!! In this entire process, I have imbibed the essence of fundamentals behind ‘Competency Building'. The purpose behind my recollection of past events is to make you aware about the fact that…


39

Voice of the Divine Spirit:–

Every individual, every human being, every organization, and every corporate can build the competency level of their employees, in similar way, as the parents build competency level of their ‘New Born Baby’ during upbringing. It requires same strategy, dedication, time and effort to impart knowledge, skills & attitude to an employee to make them competent for meeting the challenges of growth.

A Divine Spirit as ‘Voice of the Respondents….’The research paper evolves a ‘Divine Spirit’ carrying the viewpoints of the employees and suggestions/ recommendations given by the respondents through survey, field interactions & interviews. The concept of ‘Divine Spirit’ came into existence during interaction with the employees in the field survey.

In the above story the analogy is as follows:–

research Methodology

Literature Survey: – Extensive Literature Survey through books, National & International journals, magazines like Harvard Business Review etc kindled our thought process. Internet search for world class articles updated us about the latest research trend & work done in this field to avoid repetation.

Discussions with Team members & Experts: – Views of each group member were discussed in length & guidance from experts was taken. The telephonic interviews & exchange of e–mails with ex–employees of SAIL (working with Arcelor–Mittal & TATA–Corus) helped us in gaining insight into the various issues pertaining to ‘Competency Building’.

Field Interaction: – Questionnaires were designed & responses were gathered from 416 Senior Supervisors, Frontline Executives & Middle Managers of Bhilai Steel Plant. The questionnaire was designed to gauge the self perception of employees about their

Line Authorities in collaboration with HR Department…

An Employee…

Field Survey Results/Recommendations/Suggestions

Parent

Child

Voice of the Divine Spirit


40

competency level & to measure the ‘Exposure and Effectiveness’ of various Competency Building Methods.

Data Analysis & Interpretation: – Data collected through questionnaire & on site discussions was analyzed. This broadened our understanding on the topic. The perceived barriers during competency building were discussed & recommendations given by the employees were analyzed.

Interviews with Top Management: – Challenges of growth were discussed at length & suggestions to overcome those challenges were recorded. Two Models have been proposed in this paper, namely, Competency Wheel Model and Alpha, Beta & Gamma Competency Model to depict the relationship between competency building & future challenges of growth.

Case Study:– To further strengthen our empirical study, two case studies were conducted. The first case study deals with the ‘Converter Lining Life’ at SMS II of BSP. Second case study deals with the competency building of total 468 employees, through collective efforts of Power Plant I at Bhilai Steel Plant.

Demystifying the theme Competency – What & Why?“Competency for a job can be defined as a set of human attributes that enable an employee to meet and exceed expectations of his internal as well as external customers and stake holders.”

A competency is the capability to apply or use a set of related knowledge, skills, and abilities required to successfully perform "critical work functions" or tasks in a defined work setting.

Competency in context of an organization is ability to use its ‘Strength’ & weed out it’s ‘Weakness’ to exploit ‘Opportunities’ and face ‘Threats’ of the business challenges.

Every successful business enterprise is bestowed with some core competencies. These core competencies have enabled organizations like Ranbaxy Laboratories, ITC, Wipro, Infosys Technologies, Dr Reddy's Laboratories to grow their businesses from strength to strength.

Competency is needed to:Translate the organization's vision and goals into expected results

Identify gap between present state and future requirements

Continue with the trend of growth with depleting natural resources

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Exhibit#1

Name of Company

Base Line Core Competencies

POSCO“We move the world in silence” Technology Leadership

Process Innovation (FINEX, poStrip)

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WIPRO“Not a One Man show” Innovative employee compensation

Highly competent in BPO business

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RANBAXY“A True Multinational” World Wide presence in around 100

countriesA

TATA POWER

“Efficiency = Power” High technology based “Islanding System”–––– No power cut in Mumbai

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Dr. Reddy’s Laboratories

“The Freedom to Excel” Discovery driven company

Quality Research

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HDFC Bank

“Balancing Growth and Risk” Retail customers

Loan against shares and transactional banking

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A

Challenges of growthChallenges and opportunities facing businesses today include unprecedented growth in the developing world, the increased need for consistency, standards, controls, compliance and governance, and the cost, risk and management needs associated with evolving supply chain issues. The global flow of information, technology, capital goods, services and people has never been greater. Improving performance has become a persistent need for companies striving to remain competitive and effective in this environment. Main challenges confronted by any organization for its growth are:

Improving Business Performance

Managing Finance

Managing People

Managing Risk

Operating Globally

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Reducing Costs

Government & Regulatory Compliance

Responding to Change

steel scenario

A) IndianSteelScenario–Lookingintothemirror

The Indian steel industry has entered into

a new development stage from 2005–06,

riding high on the resurgent economy

and rising demand for steel. Rapid rise in

production has resulted in India becoming

the 5th largest producer of steel.

It has been estimated by certain major

investment houses, such as Credit

Suisse that, India’s steel consumption

will continue to grow at nearly 16% rate annually, till 2012, fuelled by demand

for construction projects worth US$ 1 trillion. The scope for raising the total

consumption of steel is huge, given that per capita steel consumption is only 46

kg – compared to 150 kg across the world and 250 kg in China.

The National Steel Policy has envisaged steel production to reach 110 million

tonnes by 2019–20. However, based on the assessment of the current ongoing

projects, both in greenfield and brown field, Ministry of Steel has projected that

the steel capacity in the country is likely to be 124.06 million tonnes by 2011–12.

Further, based on the status of MOUs signed by the private producers with the

various State Governments, it is expected that India’s steel capacity would be

nearly 293 million tonne by 2020.

In India, there is enormous potential for growth in steel consumption. India’s demand

for steel will continue to be supported in the future by the country’s automotive and

construction sectors. Long – term growth and development of the Indian steel industry,

however, would continue to depend largely on its cost and quality competitiveness. By

2012, the consumption of finished steel in India is expected to reach around 55–60

million tones (MT), nearly double the current level of 40MT.

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STEEL

Few Domestic Steel Makers


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The opening up of the Indian economy has posed numerous challenges and has also provided Indian organizations enormous possibilities of an unlimited global market. Steel Authority of India Limited (SAIL) continues to be the largest steel producer in India.

B) GlobalScenario–LookingacrosstheboundaryFast globalization and consolidation in the steel industry in world over has thrown up many challenges and provided myriad opportunities of growth as well.

Exhibit#2 shows the production and consumption position of steel in world in 2007 .

Exhibit#2

In 2007. the world crude steel output reached 1343.5 million metric tons and showed a growth of 7.5% over the previous year. It is the fifth consecutive year that world crude steel production grew by more than 7%. (Source: IISI)

China remained the world’s largest crude steel producer in 2007 also (489.00 million metric tons) followed by Japan (112.47 million metric tons) and USA (97.20 million metric tons). India occupied the 5th position (53.10 million metric tons) for the second consecutive year. (Source: IISI)

The International Iron & Steel Institute (IISI) in its forecast for 2008 has predicted that 2008 will be another strong year for the steel industry with apparent steel use rising from 1,202 million metric tonnes in 2007 to 1,282 million metric tonnes in 2008 i.e. by 6.7%. Further, the BRIC ( Brazil, Russia, India and China) countries will continue to lead the growth with an expected increase in production by over 11% compared to 2007.

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Exhibit#3

sWOt Analysis of sAiL – Where we stand?Having analyzed steel scenario – both domestic as well as global and reading through the business magazines, publications, newspapers and various publications of SAIL, we were now clearly seeing our company SAIL’s various aspects. Thus, we arrived at the SWOT analysis of SAIL.

Exhibit#4

Strengths Weaknesses

Market leader in India in terms of steel production with 26% market shareLarge pool of experienced, committed, skilled workforceEnormous growth potential through Greenfield/Brownfield projectsLargest Marketing NetworkRich Product mixCompliance to International standards like ISO, OSHAS etc

Only domestic orientation

Lengthy decision making process

Ageing plants and machineries

High cost of production

Slow in adapting to latest technical developments

Dependence on imported coal


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Opportunities Threats

Product Diversification

Penetrating the rural market

Emerging segments like pipelines in

oil & gas transportation, ship building

and defence

Growth segments like construction

and infrastructure

Mergers & Acquisitions

High GDP

Declining global steel demand and

prices

Constraints in availability and cost of

critical raw material like coking coal

and iron ore

Capacity addition by global as well as

domestic players

Emergence of China as net exporter of

steel in the global market

Time & Cost over run of projects

Attrition of talented people

CAtegOrizing COmpetenCies in the COntext Of sAiL After much deliberation on the topic we have categorized competencies under three sections in the context of SAIL

We have also identified different competencies associated with each category, shown in Exhibit#5

Exhibit#5


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S. No.

Alpha Competencies (Individual Competencies)

Beta Competencies (Influential Competencies)

Gamma Competencies (Organizational Competencies)

1. Personal Effectiveness Leadership Skills Strategic Planning

2. Technical Skills Motivational Skills Resource Management

3. Communication Skills Planning Skills Project Management

4. Analytical Skills Creativity & Innovation Operational Efficiency

5. Adaptability Delegation Marketing Efficiency

6. Passion for Excellence Result Orientation Work Culture

7. Execution Skills Decision Making Corporate Social Responsibility

8. Inner Drive Team Work Change Management

9. Work Ethics – Continuous Improvement

10. Business Awareness – Safe & Healthy Working Environment

Through our literature survey and interactions we have identified key behaviour indicators associated with each competency in the context of SAIL. These are detailed in the following pages:

Alpha Competencies (individual Competencies)A strong foundation is a necessity for success. The alpha competence cannot be compromised and is the foundation for future growth of an organization. The competencies are to be developed and enhanced at individual levels, to benefit the organization. An individual should be able to apply his knowledge, skill and expertise to resolve problems rather than passing them to other functionaries.

alpha 1. Personal Effectiveness –demonstrates self–awareness and personal capability

Key Behaviours

Identifies own strengths and limitations

Seeks opportunities for self–development

Takes initiative to clarify own responsibilities and accountabilities

Takes on different responsibilities to enhance learning

Applies ‘lessons learned’ to new situations

Demonstrates effective Time & Stress Management Skills

alpha 2. TechnicalCompetency – is the set of human attributes required to effectively perform the technical responsibilities of the job position.

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Key Behaviours

Provides technical solutions

Updates himself in the work area

Keeps tracks of latest technologies

Manages exigencies

apha 3. Communication Skills–is the set of human attributes required to communicate ideas, thoughts and feelings clearly and correctly using oral or written means.

Key Behaviours

Uses most effective communication style and method

Communicates in a tone and manner that demonstrates respect

Listens without interrupting and asks questions to clarify understanding

Communicates issues timely

alpha 4. Analytical Skills–is the set of human attributes required to understand and interpret the data and information.

Key Behaviours

Demonstrates logical thinking

Observes keenly

Seeing the whole out of parts

Ability to read between the lines

alpha 5. Adaptability– demonstrates flexibility and resilience in response to changing work environment and demands

Key Behaviours

Seeks information about impacts of change on the work environment

Demonstrates a willingness to view change from a positive perspective

Manages personal reactions in the face of changing circumstances

Is flexible in adopting changes to work priorities and practices

Learns relevant knowledge and skills to meet changing requirements

Maintains effective working relationships during change

alpha 6. Passion for Excellence (Quality oriented approach) – Improves work practices to achieve desired results and support productivity.

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Key Behaviours

Seeks opportunities to improve work practices

Generates ideas for improvement

Actively participates in implementing improvement initiatives

Pays attention to the quality of (his/her) work

Maintains quality standards of (his/her) work

Monitors work results

Evaluates work results to determine productivity

alpha 7. Execution Skills– demonstrates ability to accomplish a given task within a given time frame.

Key Behaviours

Setting priorities

Assessing the risk involved

Mobilizing the resources available

Optimum utilization of resources

Minimizing time & cost overrun

Co–ordinating between internal & external agencies

alpha 8. Inner Drive –ability of an individual to take initiative, chase & accomplish a given task without the help of external motivating factors.

Key Behaviours

Perseverance

Sense of responsibility

Sense of ownership

Resilience

alpha 9. Work Ethics– values & principles associated with work.

Key Behaviours

Set of beliefs.

Moral values.

Honesty & integrity

alpha 10. Business Awareness–this deals with understanding of the complexities of a business and imbibing the spirit behind the company’s vision, mission & goal.

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Key Behaviours

Understands the dynamics of marketKnows about company’s long term objectives & short term goalsKnows about company’s and competitor’s strengths & weaknessesUnderstands the requirements of customers

Beta Competencies (influential Competencies)Having acquired the “Individual Competencies” it is very important to work on one’s “Influential Competencies”. It is the Influential Competencies which cultivates team spirit, builds atmosphere of mutual trust, provides required leadership and develops a culture where employees are striving for excellence. Below is the list of various influential competencies and their key behaviours.

beta 1. Leadership Skills– ability to influence people & mobilizing resources in order to get best out of them.

Key Behaviours

Inspires peopleHas a transformational approachAbility to look into the futureDoes right thing at a right timeSets long term goals

beta 2. Motivational Skills– Ability to encourage people to accomplish a task.

Key Behaviours

Generating enthusiasmAbility to bring out the bestRecognizing /acknowledging the effort of the team membersBoosting the self esteem of team members

beta 3. Planning Skills– is the set of human attributes required to understand inter–relationships and requirements of different activities to be done to achieve the end result.

Key Behaviours

Ability to break down the task into sub–tasksSequencing of sub–tasks Establishing relationship between different tasksFinalizing time frame for every sub–task and monitoring

beta 4. Creativity & Innovation–encourages and supports, new ideas and appropriate solutions to enhance results.

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Key Behaviours

Ability to develop new ways to improve existing methodsEvaluates processes against best practices to make improvementsFosters an environment where creative ideas and innovative approaches are welcomedEncourages team members to share diverse perspectives to generate new ideas

beta 5. Decision Making– is the set of human attributes required to decide the course of action under any situation.

Key Behaviours

Ability to synthesize all available dataAbility to correlate facts & ground realitiesArriving at a viable solution

beta 6. Delegation – is the set of human attributes required to empower the subordinates for effective operations.

Key Behaviours

Identifying right person for the right jobAssigning responsibilitiesEmpowering and taking responsibilities for failures

beta 7. Result Orientation– demonstrates initiative and resourcefulness to achieve desired goals and objectives and strives for excellence.

Key Behaviours

Evaluates results against goals and objectivesCommunicates expected standards and resultsHolding team members accountable to achieve desired resultsFosters an environment where people feel personally committed to achieve resultsEstablishes challenging and relevant targets for the organization

beta 8. Team work–is the ability to actively collaborates with others to produce desired results in a supportive environment.

Key Behaviours

Sharing knowledge, expertise in order to encourage and strengthen team performanceCollaborates with team members to solve problemsStands behind team decisions even if it is not his/her choiceRecognizes accomplishments of othersAppreciates the different strengths of team members

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gamma Competencies (Organizational Competencies)Following are the main organizational competencies and their key behaviours –

ϒamma 1. Strategic Planning – is the business acumen required to visualize near and distant future conditions and develop appropriate organizational response.

Key Behaviours

Assessing company’s present position in the marketForecasting the company’s future positionChalking out a growth planDeveloping strategies and actions to realize the company’s goalsEnsures that initiatives are matched with appropriate resourcesMergers and acquisitions

ϒamma 2. Resource Management– Optimum utilization of resources is one of the greatest competency an organization can possess.

Key Behaviours

Strengthening supply chainImproving logisticsMonitoring system for tracking materialsExploring the availability & demand of resourcesDeveloping and Managing Human Resources

ϒamma 3. Project Management – monitoring, timely execution and successful implementation of projects provides competitive advantage to an organization.

Key Behaviours

Understands the implications of a project delayTo minimize time & cost over runDisplays a sense of urgency to complete a project

ϒamma 4. Operational Efficiency – ability of an organization to operate with best techno–economic parameters & maximum resource utilization.

Key Behaviours

Thorough knowledge of SOP’s (i.e. Operations & Maintenance)Optimum utilization of resourcesMinimizing down timeAdherence to universally accepted quality parametersProcess innovation, Product innovation & Differentiation

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ϒamma 5. Marketing Management– traits that deals with intricacies of marketing and

enables the organization to understand the complexities of the market.

Key Behaviours

Awareness about the market

Keeping abreast with the trend of the market

Chalking a marketing plan

Knowing the competitor’s strengths & weaknesses

Exploring & developing newer markets

ϒamma 6. Work Culture – a culture full of trust, learning and innovation motivates its

employees to perform better.

Key Behaviours

Respects the practices, customs & values of employees and norms of an organization

Considers “diversity” as a tool to learn & encourage new practices

Nurtures the traditions of universal brotherhood

ϒamma 7. Corporate Social Responsibility– is the ways and means by which the

company shows care & concern for society.

Key Behaviours

Developing infrastructure, drinking water facilities and improving literacy level in peripheral areas in which the company operates

Protection of environment, flora and fauna and historical monuments

Designing schemes to uplift the deprived & under privileged

Helping people affected in natural calamities

Encouraging sports culture

ϒamma 8. Change Management– is the ability of an organization to adapt to the fast

changing business methods, including technology and HR management

Key Behaviours

Manages change effectively that can help smooth transitions

Keeps abreast vis–à–vis technology, technique, and methods of working, with the least disruption in business affairs

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Identifies the scope of change & experiments in every sphere

Assesses the impact of change, plans appropriate actions to manage the

transition

Provides the background, need and advantages for undertaking the

change

ϒamma 9. Continuous Improvement– is the ability to improve in every sphere

of organization’s operation by continuously learning, unlearning &

relearning.

Key Behaviours

Job rotation & enrichment

Identifies the scope of improvement in every sphere

Adopting new methods & procedures

Sharing knowledge and ideas with world class steel giants

Using business tools like Six Sigma, KM, ERP, and MES

ϒamma 10. Safe and Healthy Working Environment–deals with the ability of the

organization to provide safe and healthy working environment to the

suppliers and employees.

Key Behaviours

Adherence to world class safety standards

Adherence to pollution control norms

A strong health policies

Transparency in dealings and negotiations with suppliers and

contractors

empiriCAL stuDy – fieLD survey, AnALysis AnD reCOmmenDAtiOns

Our empirical study was conducted at Bhilai Steel Plant. Such diverse is the plant that we decided it would be most apt to divide the survey population/departments into few groups depending on their functions and common attributes. These groups were categorized under the name of Hindu Mythological Gods. (Exhibit#6)

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‘gods In BhIlaI steel plant’

Exhibit#6

Survey was conducted by administering questionnaires to the employees. The first section of survey was designed to gauge the self perception of employees about their competency level & the second section was conducted to find the exposure& effectiveness of various competency building methods and barriers while building competencies.

Note– Resemblance of Gods with respective departments is for survey purpose only. No religious sentiments are attached to it.

‘VISHNUGROUP’

CO&CCD,SP’s,

BF’s,SMSI&II,

Mills.

‘LAKSHMIGROUP’

Finance,Marketing

‘INDRAGROUP’

Oxygenplant,

Watersupply,

Propaneplant,CAS,

PPI,PPII.

‘GANESHGROUP’

CET,BEDB,

RDCIS,RCL

‘VISHWAKARMAGROUP'

CHM,CRM,ETL,MSDS,

PLEM,CPS.

‘SARASWATIGROUP’

HRDept,

PersonnelDept.

‘HANUMAN

GROUP’

SafetyDept.,Medical,

FireServices.

‘BRAHMAGROUP’

Projects,CED,Town

Services


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Survey Population Table

S. No. Category Departments Covered No. of

respondents

A. Brahma Group Projects Dept., CED, Township. 70

B. Vishnu Group CO & CCD, SP’s, BF’s, SMS I & II, Mills. 130

C. Lakshmi Group Finance, Marketing 32

D. Hanuman Group Safety Dept., Medical, Fire Services, Vigilance 38

E. Ganesh Group CET, BEDB, RDCIS, RCL 41

F. Indra Group Oxygen plant, water supply, propane plant, CAS, PP I, PP II.

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G. Saraswati Group HR Dept, Personnel Dept 30

H. Vishwakarma Group

CHM, CRM, ETL, MSDS, PLEM, CPS. 32

Exhibit#7

Total no. of respondents= 416Category wise Breakup

Category Nos.

Sr. Supervisors(+ E0) 93

Executives (E1,E2) 87



Executives (E7) 38

Total 416

survey Analysis – self perception of employeesThis section details the survey analysis regarding self perception of employees in regard to competency levels.(Refer Section B of questtionnaire1 – Annexure1)


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A. BrahmaGroup–ProjectsDept.,CED,Township

B. VishnuGroup–CO&CCD,SP’s,BF’s,SMSI&II,Mills

C. Lakshmi Group– Finance, Marketing

Strengths–

High Technical Expertise

Good Execution Skills

Highly passionate about the quality of work

Areas of Concern–

Communication Skills

Business Awareness.

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Strengths–

High Work Ethics

High Technical Skill

Areas of Concern–

Adaptability

Business Awareness

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Strengths–

Good Communication Skills

High Business Awareness

Areas of Concern–

Analytical Skills

Inner Drive

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D.GaneshGroup–CET,BEDB,RDCIS,RCL

E. IndraGroup–PowerPlantI&II,OxygenPlant,PropanePlant,WaterSupply,CAS

F. VishwakarmaGroup–CHM,CRM,ETL,MSDS,PLEM,CPS

Strengths–

High Technical Skills

Business Awareness

Areas of Concern–

Analytical Skills

Inner Drive

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Strengths–

Inner Drive

High Technical Skill

Areas of Concern–

Analytical Skills

Business Awareness

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Strengths–

High Execution Skills

Technical Competency

Passion for Excellence

Areas of Concern–

Adaptability

Business Awareness

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G.SaraswatiGroup–HRDepartment&PersonnelDepartment

H.HanumanGroup–SafetyDept.,Medical,FireServices,Vigilance

OrganisationwiseFindings–

Survey revealed that the strengths of BSP are Technical Skills and High Work Ethics. The areas where we need to concentrate our efforts are Communication Skills, Adaptability & Business Awareness.

Strengths–

High Personal Effectiveness

High Passion for Excellence

Inner DriveAreas of Concern–


Analytical Skills

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Strengths–

High Personal Effectiveness

High Passion for Excellence

Areas of Concern–

Inner Drive

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ten Commandments to Develop CompetenciesHaving analyzed various strengths and areas of concern with regard to competency elements across various groups and after discussing about fundamentals of competency building methods amongst ourselves and our interaction with the key persons we arrived at ‘Ten Commandments’ which shall help in building competencies.

Exhibit#8

In order to hone our skills continuously and increase our knowledge database we need to work out in the same way as a body builder works out to build his muscles or a gymnast sweats up in order to attain flexibility. It is important here for managers to overcome the perceived barriers by taking the help of concerned HOD’s or HR department time to time. Above all combine efforts of the individuals and the supporting policies of the company will certainly raise the competency level of an employee.


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1. By Coaching, Counselling & Mentoring (CCM):– Coaching, Counselling, and Mentoring can dramatically improve employee productivity and satisfaction. There is a big difference between continuously encouraging employees to do their jobs well (Coaching), attempting to fix poor performance (Counselling), and helping top performers excel (Mentoring). Presently in SAIL this method is being used during ‘Management Trainee’ period. In BSP this has been extended to lower and middle management levels also. A CCM can be one’s best source of continued professional development.

PerceivedBarriers:–(Ref.Sec–Bofsurveyinstrument)Finding a CCM is like finding a pearl in the sea as an efficient manager may not prove to be an effective mentor.

To find a suitable coach, counselor or a mentor may prove to be difficult as senior executives may not devote much time on the learner because of immense work pressure and high responsibilities.

It’s difficult to spot a person who is strong in the areas in which an individual is weak.

Fromtheresponsesoftherespondentswearrivedat…..

Voice of the Divine Spirit:–“A mentor can be found within the company or outside the company or

industry. The most appropriate one will be a person from the mother depart-ment. Also, while choosing a mentor the concerned learner may be given a choice through HR department to select his Coach, Counsellor or a Mentor on the basis of expertise”.

2. ByRoleModeling: A Role Model is someone whose behaviour is imitated by others. Whenever an individual tries to enhance his efficiency in any area, first he takes inspiration from an effective person of that area & perceives him as a role model to adopt his working style. At later stages he develops his own style. Inspiration received from observing people we admire is the best method to enhance personal effectiveness. In SAIL every executive should try to portray himself as a ‘Role Model’ to inspire others. In this way the competency level of the Role Model will also increase, as the individual will go for continuous learning and self analysis to set an example for others. It is similar to the efforts of parents to guide their young ones; some of them quit smoking & drinking in order to set an example for their young ones. Hence, this process of competency building is mutually beneficial.

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PerceivedBarriers:–It’s difficult to find a single role model who is strong in the areas in which you are weak.Imitating a role model may hamper one’s originality and innovative approach.

Voice of the Divine Spirit:–Don’t always go for positive role model. There are negative–role models also who behave so badly that they serve as a good example of what NOT to do.Read the biographies of famous people from time to time.Every executive should portray himself as a Role Model to inspire others. This can be termed as ‘Two ways competency building method’.

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3. By Assigning Playgrounds: – Assigning playground is one of the best ways of developing competencies of individual and teams by providing exposure to real life situations without accountability and risks involved. Competencies like personal effectiveness, technical skills, communication skills, analytical skills, execution skills, leadership skills, planning skills, motivational & delegating skills, decision making & team work can be developed by using the above method. There should be ample opportunities and platforms where people can unleash their creativity.

PerceivedBarrier:–Without accountability the effectiveness of this method may become less as the individual may take the entire exercise lightly.Involvement of all immediate seniors may not be there as they may also take it casually rather than taking it as a ‘Competency Development Technique’.Exposure may be limited to a particular area.

Voice of the Divine Spirit:–Continuous monitoring by respective HODs can infuse seriousness among the participants. Learner himself should take initiatives to explore other areas by persuading the concerned HODs, so that exposure may not be confined to a particular area.

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4. BySimulationExercises:– Basically, simulation refers to representation or imitation of the real world. In its simplest form, it is learning by doing. Consequences, responses, reactions, and effects can all be entertained and experienced in the virtual world. A much more productive method is using business simulation programs.

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PerceivedBarriers:–As this process of competency building involves a little fun and entertainment, therefore there is a possibility that employees may deviate from the objective of learning by over–indulging.

As the real life situation is incorporated into virtual exercises, the risk involved is very minimal. So the desired seriousness may not be there in the participants.


Self monitoring and self control is the only measure to check time spent on simulation games. Responsible learners very well know when to stop.Read the biographies of famous people from time to time. This method can be very useful for the company as the individual gets exposed to real life situations before–hand, thereby, saving revenue loss because of wrong decisions.

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5. By On the Job Training: – This type of competency building technique is based upon experiences gained by performing a task. It is rightly said that practice and practice makes a man perfect. On the Job Training is another method of boosting competencies like delegating skills, result orientation, decision making, team work and work culture.

PerceivedBarriers:–This type of competency building measure may confine the trainee in a particular area.Because of immense work pressure & time constraint, this competency building method will make the individual competent in a specific area.

Voice of the Divine Spirit:–For all round development of an individual the respective heads of the department should ensure that exposure is given in every field. Job rotation in every three to four years will give rich exposure to the learner.The learner should also identify the areas in which he wants to get the exposure keeping in view his individual growth plan.

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6. ProfessionalBodies,Conferences&Seminars:–

To become abreast of the latest trends and recent practices in technology and management this type of competency building method is most appropriate for all levels. Competencies like technical skills, passion for excellence, inner drive, business awareness, leadership skills, result orientation, and decision making are enhanced.

Perceivedbarrier:–

All people who are identified & given opportunities are not released by the department because of work pressure.

Very few managers show interest in the membership of Professional Bodies.

Seminars and Conferences are usually taken casually rather than a competency building method.


Employees who are not released due to work responsibilities should immediately be given another chance so that they may not be deprived of the opportunity.

Employees need encouragement to enroll in professional bodies through HR initiatives & persuasion by the concerned HOD’s.

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7. ByJobRotationandEnrichment:–

Job Rotation at junior and middle level executives may be pivoted around their strengths and attributes and the future roles expected of them. Focus must be on exposure in all related areas so that by the time the individual gets higher responsibilities, he has an overall experience of almost all the areas. Job rotation also adds to the satisfaction derived from balanced distribution of work load, working conditions and learning opportunities.

PerceivedBarriers:–

Job Rotation is normally viewed “as just another transfer” rather than as an important tool for implementing HR strategy of the company.

Job Rotation may become a way of punishing poor performers, settling scores arising from organizational politics.

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Voice of the Divine Spirit:–The perception of viewing job rotation as a means of punishment can be addressed by spreading awareness through HR initiatives. Before job rotation concerned manager may be invited by higher authorities to explain the benefits of the entire exercise. Poor performers need to be identified through competency mapping and according to the weaknesses new assignments can be given.

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8. BySelfDirectedLearningMethod (SDL). This is a competency building process in which the learner is involved in identifying what needs to be learned and takes the lead in finding and organizing the answers. Educational resources like Books, Journals, Magazines, CD’s and Internet can be of great help to build competencies like personal effectiveness, technical skills, communication skills, analytical skills, business awareness, leadership skills, motivational skills, planning skills and team work.

PerceivedBarriers:–Competency building using this method depends a lot on persons reading habit, literature choice and interest.

This type of competency building method requires more time and effort.

It depends on ability of the learner to synthesize what is found during literature research and apply it in the specific area.

Voice of the Divine Spirit:–The perception of viewing job rotation as a means of punishment can be addressed by spreading awareness through HR initiatives. Before job rotation concerned manager may be invited by higher authorities to explain the benefits of the entire exercise. Poor performers need to be identified through competency mapping and according to the weaknesses new assignments can be given.

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9. ByProjectsBasedLearning (PBL):– It has been found that individual & group projects enhance one’s competency level up to a great extent. They kindle one’s thought process through brain storming and interaction with wide range of people. Some good projects may add feathers to the company as some of the projects will be innovative and will be at par with international standards, thereby, creating an opportunity for filing patents.

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PerceivedBarriers:–Projects may be repetitive in nature therefore individual’s original work could not be reflected. Without proper guidance by seniors this method may become less effective and will lose the relevance in due course of time. As of now it is considered as a formality rather than a tool to build the competency level.

Voice of the Divine Spirit:–The projects can be made mandatory, at least one project in every two year and can be made time bound. A reward or recognition can be attached for indigenous work to motivate the participants.

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10. By Educational Institutes and Special Courses:– Competencies like personal effectiveness, technical skills , communication skills, analytical skills, business awareness, leadership skills, motivational skills, planning skills and team work can be developed by imparting training to the individuals through premier institutes like IIM and IIT’s.

SAIL as a policy sponsors potential candidates to premier institutes like IIT’s and IIM’s to nurture KSA (Knowledge, Skill & Ability). For exposing managers to the latest management concepts under exchange of knowledge scheme SAIL is working with reputed knowledge Institutions like Management Development Institute (MDI), Gurgaon , Indian Institute of Management, Indore and Indian School of Mines University, Dhanbad.

PerceivedBarrier:–As the number of seats allotted for advanced courses will be less and applicants will be more, therefore, not all the potential candidates will get the chance to build their competency level via this method.After doing an advance course from premier institute the candidate may opt for lateral entry to any other company.

Voice of the Divine Spirit:–Premier institutes can be asked to design special courses in the field of management for personnel of SAIL. To check attrition, the personnel can be offered an increment along with a special designation viz. Senior Manager (Distinguished) after completing PG from renowned institutes.

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Competency Wheel model On the basis of the Ten Commandments, we propose a ‘Competency Wheel Model’. The model depicts that when an individual (I) Reads, Learns and Practices– he attains Knowledge, Skill and Attitude (KSA). Employees of every organization do have some KSA, on basis of which they work. But in order to work efficiently and to acquire higher level of leadership skills, the competency level has to be raised from the present average level to a higher level. This can be achieved by further refining/ nurturing the (KSA) through the various competency developing methods through Ten Commandments.

CompetencyWheelModel

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RealityCheckandSuggestedLineofActionSAIL is implementing a massive program to tap the human resource potential in order to meet the future challenges of growth. In this context look it is necessary analyze the effectiveness of various competency developing methods.We conducted a survey on our flagship unit Bhilai Steel Plant. Total No. of respondents = 416.The abbreviations used are as follows:

S. No. Competency Building Methods Abbreviation

1. Coaching, Counselling & Mentoring CCM

2. Role Modeling RM

3. Assigning Playgrounds AP

4. Simulation Exercises SE

5. On the Job Training OJT

6. Professional Bodies, Conferences & Seminars PCS

7. Job Rotation and Enrichment JRE

8. Self Directed Learning Method SDL

9. Projects Based Learning PBL

10. Educational Institutes and Special Courses EI & SC

I. BrahmaGroup–ProjectsDept.,CED,Township

Index CCM RM AP SE OJT PCS JRE SDL PBL EI&SC

Exposure 15% 55% 5% 12% 100% 21% 55% 86% 80% 28%

Effectiveness 95% 80% 72% 98% 66% 72% 91% 100% 88% 94%

Reality Check – This group mainly relies on self directed learning and on the job training to enhance their competencies (86% & 100 % respectively) since last 50 years. This group has very less exposure to competency building methods viz. Role Modeling, Simulation Exercises, Assigning Play Grounds and Educational Institutes & Special Courses.

Suggested Line of Action – Efforts are needed to provide a Coach, Counsellor & Mentor to build the competency level of employees of this group, as 95% respondents felt that CCM as a tool to build competency level can be very effective. Respondents wants simulation exercises related to upcoming projects viz. Blast Furnace No. 8 & SMS III to be developed to broaden their understanding.


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In the context SAIL Corporate Plan 2012, specially designed simulation exercises must be adopted to get an idea of erection sequence of Heavy Machines beforehand. Respondents also felt the need of simulation soft wares to deal with the complexities of hydraulically operated machines so that response & reaction time can be minimized on site.

II.VishnuGroup–CO&CCD,SP’s,BF’s,SMSI&II,Mills

CCM RM AP SE OJT PCS JRE SDL PBL EI&SC

Exposure 45% 38% 5% 12% 98% 48% 18% 100% 8% 25%

Effectiveness 65% 77% 55% 100% 82% 69% 98% 85% 96% 98%

Reality Check – Exposures to competency development techniques like simulation exercises & through educational institutes & special courses are very less. Only 12% & 25% of the respondents respectively have been exposed to these techniques. Only 38% employees had a role model. The exposure to competency building through Project Based Learning is very less at about 8%, although 96% of them were of the opinion that PBL can be very effectively used to build competencies. Suggested Line of Action – Efforts are needed to adopt job rotation & enrichment in a more scientific way. Specially designed projects are needed to nurture creativity & innovation.

The respondents appreciated the academic collaboration tie up of BSP with Swami Vivekananda Technical University of Chhattisgarh to provide M.Tech. in Steel Technology. The demand to increase seats in such courses has been emerged out very strongly by the respondents of this group.

III.LakshmiGroup–Finance,Marketing


Exposure 25% 78% 6% 45% 100% 41% 37% 95% 47% 15%

Effectiveness 30% 81% 55% 76% 73% 91% 85% 74% 96% 97%

Reality Check – Almost 53% of the respondents never got an opportunity to enhance their skills through ‘PBL’. Approximately 96% of respondents termed the “PBL” as a very effective tool to build competencies. Respondents also suggested that in order to promote the Project Based Learning a financial reward or recognition like ‘Best Project of the year’ for indigenous project work.

Suggested Line of Action – Efforts are needed to introduce ‘PBL’ as a competency developing technique on a large scale. Respondents felt the need of a reward or recognition to encourage indigenous project work & to motivate the participants. This group also felt the need of higher education or specially designed courses in the field of finance & marketing.


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Respondents want projects to be made mandatory, at least one project in every two year .Some suggested associating a reward for indigenous project work. Respondents quoted an example of TATA Steel who has adopted the Project Based Learning in a large scale.

IV.GaneshGroup–CET,BEDB,RDCIS,RCL


Exposure 14% 26% 07% 43% 98% 38% 10% 87% 19% 22%

Effectiveness 73% 62% 72% 73% 96% 88% 85% 63% 84% 91%

Reality Check – Respondents appreciated competency building through EI&SC, PBL, JRE, PCS & OJT etc with OJT & EI & SC to be most effective with 96% & 91% effectiveness rating respectively. The respondents termed assigning playgrounds to be moderately effective with 72% effectiveness rating. The outcome of the survey also reveals that approximately 43% have been exposed to simulation exercises in the past.

Suggested Line of Action – This group stresses on competency building via educational institutes and special courses (in the field of design engineering). Respondent also wants interdepartmental projects to enhance their competency level. They want systematic project to be designed not only in the area of design engineering but also in newer areas like product development etc.

Quality circles of various departments of BSP address technical problems encountered in the processes, as projects, on regular basis.

In the year 2007, three QC teams–one each from SMS I, Rail & Structural mill & SP–3 participated in the International Convention in Beijing, China and all the three teams bagged Gold Medal in various events.

V. IndraGroup–PowerPlantI&II,OxygenPlant,PropanePlant,WaterSupply,CAS


Exposure 11% 82% 9% 5% 100% 27% 55% 88% 18% 8%

Effectiveness 65% 85% 52% 82% 90% 83% 92% 84% 77% 89%

Reality Check – The respondents of this group consider job rotation as the most effective method to build competencies (92%) & also had exposure to this method upto 55%. The effectiveness of various competency methods like EI & SC, RM, OJT,


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PCS & SE is also very high. Most of the respondents were highly motivated to develop their competencies through self directed learning. The access to library by employees of this group is highest among all. Almost 65% visit libraries frequently.

Suggested Line of Action– The group highlighted the need of a simulator for various operational processes. This, according to them will help in reducing breakdowns, understanding the processes and effect of failures, to serve the internal customers better. Various branches of business can also be covered such as strategy and strategic thinking, leadership, management, business, industry, and financial acumen, people management, collaboration, and team building under business simulation programs.

Rourkela Steel Plant imparts training through simulator for Power Plant employees in collaboration with CPTI, Rourkela. Simulation modules are available on www.steeluniversity.org to understand the complexities of the production processes.

VI.Vishwakarmagroup–CHM,CRM,ETL,MSDS,PLEM,CPS


Exposure 61% 47% 03% 63% 96% 31% 41% 80% 33% 18%

Effectiveness 85% 80% 50% 87% 92% 90% 79% 95% 73% 85%

Reality Check– This group has demonstrated very keen interest in the entire exercise & answered almost all the questions of the questionnaire. The respondents found SDL, OJT, EI & SC, SE, CCM & RM to be very appealing. Although exposures to the methods like JRE, AP, PBL & EI & SC are very less, they have rated the effectiveness of competency development techniques to be very high. This group feels that competency development through self directed learning is the best tool to develop competencies (almost 95 % felt that). Only 5% of the respondents used central library in a month (the main reason for not accessing library is the long working hours on site).

Suggested Line of Action– The respondents want a fast & speedy access to the educational resources like books, journals, magazines, CD’s and internet and wanted a time slot to be provided by the respective HOD’s to explore the central library, at least twice a month .

The respondents hailed the initiatives undertaken by HRD in collaboration with Directorate of Technical Education to introduce certificate courses for electricians, hydraulic machine operators etc. The respondents appreciated the competitions requiring in depth reading and extensive literature survey like CTYM, MD trophy for best innovation & Director (P) SAIL cup “SAKSHAM” etc. Some opined that similar competitions can be organized at departmental level to encourage reading habits of employees.


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VII. SaraswatiGroup–HRDepartment&PersonnelDepartment


Exposure 17% 57% 4% 08% 82% 68% 100% 96% 25% 56%

Effectiveness 85% 65% 68% 89% 71% 91% 96% 100% 87% 95%

Reality Check– This group plays pivotal role in the development of human potential. The outcome indicates very good exposure in JRE in which around 90% of respondents had been rotated on job. Exposure to seminars & conferences is also very high.

Suggested Line of Action – Respondents want higher education in the field of HR management.

Job rotation as a competency building technique has been adopted by the Personnel Department of Bhilai Steel Plant. The process was started about four years ago in a small scale & almost 100% employees under this scheme have been rotated on job till date.

VIII. HanumanGroup–SafetyDept.,Medical,FireServices,Vigilance


Exposure 11% 66% 15% 35% 91% 63% 14% 75% 21% 08%

Effectiveness 81% 58% 45% 79% 45% 51% 96% 41% 58% 92%

Reality Check – This group has very less exposure to competency building methods like CCM (at 11%), AP (at 15%), SE (at 35%), JRE (at 14%), PBL (at 21%) and EI & SC (at 08%). Almost 96% respondents found JRE to be most effective. They also rated CCM, SE, and EI & SC with effectiveness index ranging from 81% to 92%. The survey reveals that respondents consider effectiveness of OJT to be very low, hovering at around 45%.

Suggested Line of Action – Efforts are needed to spread awareness about the importance of self directed learning methods. The respondents felt the need of special courses from premier institutes to hone their skills. Appointing a coach, counsellor or a mentor is very much required to nurture the talent of the employees of this group.

The respondents also advocated facilitative leadership–role modeling at all levels and quoted an example of workshop held at Bhilai Steel Plant involving all GM’s & ED’s and MD, BSP. The respondents also appreciated the efforts undertaken by top management in the area of role modeling like Pragati–Sheel Manch– an open forum chaired by MD, BSP


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Organisation wise findings–Survey reveals that effectiveness (as expressed by the respondents) of methods like Simulation Exercises, Job Rotation & Enrichment, Project Based Learning and Special Courses are very high. But exposure to these methods is very low. More employees are needed to be trained by these methods so that competencies are built and skill–gap is bridged.

OrgAnizAtiOnAL COmpetenCies, ChALLenges Of grOWth AnD reCOmmenDeD ACtiOn pLAnOrganizational competencies are usually the result of collective individual competencies common throughout the organization. Organizational competencies can include strategic planning, resource management, project management, operational efficiency, marketing efficiency, work culture, corporate social responsibility and customer focus. The following model depicts the relationship between people, resources, environment, processes and competencies issues, which when addressed properly, will lead to organizational growth.

P–R–E–EP Model for Organizational Competency

Exhibit# 10


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The recent downtrend of global steel market will compel SAIL to carefully and cautiously go ahead with its expansion plan. Having a clear plan for the future and periodically monitoring progress can also contribute to a greater sense of purpose, movement, and accountability. Due to the critical condition of the financial markets and resulting uncertainty on the further development of the global economy, an all round review has become necessary. The various Challenges of growth have been discussed.

Challenge I – Improving Operational Efficiency (OE)We need to enhance operational efficiency before profits and customer satisfaction begin to suffer. Focusing on operational efficiency will help our business work smarter: increase efficiency, reduce costs, and streamline processes.

Operational efficiency involves all employees in improving the plant's administrative and manufacturing processes. The benefits of implementing OE measures includes significant cost savings, increased productivity, reduced inventory, reduced setup time and response time, improved quality control and reduction of non value–added costs, strong competitive advantage and increased profits .

Recommended Action Plan – Most of the respondents felt that OE can be increased in the area of

(a) Iron makingImproved Blast furnace availability and utilization

Achievement of consistent hot metal quality

Increased use of LD slag and nut coke

Maximum use of sinter

Improving coke rate by introducing auxiliary injection methods in each and every furnace

Improving BF productivity to the international level

(b) Steel makingIncreasing converter lining life to 6000 heats and increasing ladle life to 150 heats by better operations like reduction in reblows, use of combined blowing, maintaining high basicity of slag, etc.

Increasing production of high value special steels

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Improved continuous casting

Rebuilding coke oven batteries incorporating latest pollution control measures

Phasing out open/twin hearth furnaces and using EAF/LD converters and complete phasing out ingot route and using CC route

Energy conservation up to the international level

The interviews with top management gave us few more insights as:–

(c) GeneralIncrease in–house production of high value spares

Reconditioning of high value spares

Reducing breakdowns

Reducing Procurement Cost by vendor development

Developing long term relationship with Quality Suppliers

Challenge II– Market LeadershipIn order to dovetail our marketing efforts in line with the company’s growth plans, respondents advocated adopting a multi–pronged approach to attain market leadership.

Recommended Action Plan– Improving our market intelligence system and forecasting capabilities to provide strategic inputs for key business decisions.

Retaining our overall market share and maximizing our share in high growth and value added segments.

Competitive offer in terms of commercial terms, packaging, performance guarantee and services.

Pre and post sales service like providing information about the order status, faster redressal of claims, suggesting better application of existing products.

Should ensure faster delivery of goods to the customers by introduction of dealers/ stockiest in the rural areas and small towns.

Taking further initiatives for product branding and establishing our brands in the market.

Reduction in marketing cost through optimum utilization of marketing infrastructure and better management of logistics.

Maintaining sustained presence in the export markets.

Promotion of steel for increasing per capita steel consumption in India, especially in rural sector jointly with other producers and agencies.

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Developing products like Coated galvanized steel, Ultra low carbon steels, IF steels for auto mobile industry.

Challenge III– HR StrategiesSteel is no more the labour–intensive industry it used to be. Earlier, it was often associated with the image of huge work force living in a captive township. A modern steel plant employs very few people.

In South Korea, POSCO employs 10,000 people to produce 28 million tons.

Recommended Action Plan– The respondents also revealed few action plans such as

Improving Labour Productivity

Manpower rightsizing

Bringing down average age to 40 years from the current level of 45–46 years

Restructuring and strengthening of the projects organization, particularly at plants, for speedy implementation of new projects

Outsourcing of non–critical functions/ activities

Thrust on appropriate training and development of employees–competence mapping and skill gap identification

Continuous innovation and implementation of HR initiatives to enhance job satisfaction, career growth, commitment and motivation amongst all employees

Challenge IV– Project Management Project Management competency has three constituents. Project Management Knowledge i.e. what an individual knows about Project Management, Project Management Performance i.e. what an individual is able to do while applying Project Management knowledge and Personal Competency i.e. how an individual behaves while performing on project(s).

The major challenge in front of us is to complete the envisaged projects without time & cost over run.

Recommended Action Plan– In order to complete the project on time without cost overruns, recommendations have been given to enhance

Project Scope Management Competencies

Project Initiation Competencies

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Project Planning Competencies

Project Execution Competencies

Project Controlling Competencies

Besides capacity enhancement, new projects should also aim at

Eliminating technological obsolescence

Energy savings

Enriching product mix

Pollution control

Developing mines & collieries to meet higher requirement of key raw materials

Introduce customer centric processes

Matching infrastructure facilities in the plant to support higher production volumes.

Challenge V– Work CultureA good work culture is one where every employee finds the right balance between work and home.

Recommended Action Plan– Interactive sessions, various cultural and entertainment programs should be organized regularly.

Events like sports tournaments, picnics, fun–fairs, music workshops, trekking expeditions to be held more frequently.

Creativity, productivity and innovation needs to be fostered and encouraged.

At Bhilai Steel Plant, every year a cricket tournament is held amongst various college alumni teams involving employees from wide cross section of plant. The winning team is given MD trophy at the hands of MD, BSP. There are various such activities carried at zonal and departmental levels also. Such initiatives lead to greater employee involvement and a vibrant work culture.

Challenge VI – Change Management

“To improve is to change, to be perfect is to change often"–Winston Churchill

Change is inevitable & is an ongoing process. Change management is an art through which organizations keep themselves abreast vis–à–vis technology, technique, and method of working, with the least disruption in business affairs. How effectively and quickly one can bring a change is the key to success in today’s fast pace business.

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Recommended Action Plan– Interviews with management also highlighted the need to manage change effectively by keeping following points into top consideration:

Clarity and communication of goal

Motivating employees for change

Clarity of roles

Formation of Task Force Committees and assigning Key Drivers

Commitment from Top Management and Involvement of all

Identifying specific training needs and carrying out mass awareness programs

Implementation of Executive Performance Management System (EPMS) – an online appraisal system, across all the SAIL units is an excellent example of driving in change in a very systematic manner in a short period. Internal Resource Persons (IRP) were identified and all the executives were covered for training about EPMS.

Challenge VII – Managing External Environment

We cannot live as an island of prosperity. Our periphery has to develop in tandem”– S.K. Roongta, Chairman, SAIL

All have important interactions with their environment in numerous, diverse and complex ways. A crucial feature of the environment has always been the relationship with the state and central governments. There have been dramatic changes in the environment, and consequently in the ways companies respond to it.

social Respondents appreciated the SAIL’s social initiatives focused at Health & Medical Welfare, Sports & Cultural Activities, Education, and Peripheral Development in its surroundings along with assisting affected people during natural calamities. They also appreciated efforts like

Adopting villages as Model Steel Villages

By augmentation of water supply

Developing Mining and Tribal Areas

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Encouraging Sports and Culture

Assistance to Physically Challenged

Women Empowerment/ Supporting NGOs

Road Development

Community Centre & Vocational Training Centres

Medical & Veterinary Camps

environmentalImplementing growth plan faces many obstacles. The envisaged growth plan of SAIL through both brown & green field projects needs government regulatory clearances. Land acquisition may face obstacles from local groups in the vicinity. Clearance from forest department is also very difficult and a time taking process. Laws of pollution and effluent treatment have become very stringent.

Government norms & regulations

Mining clearance

Forest clearance

Land acquisition

Pollution Board

RTI act

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For example, Iron ore at Rajahara mines is getting depleted. Bhilai Steel Plant is getting low grade iron ore which increases the cost of production. The clearance of Rowghat mines is getting delayed because of governmental procedures. Managing these external agencies has become the need of the hour. Tata Motors has been moved out of Singur because of land acquisitions problems. Arcelor–Mittal & POSCO are facing the brunt of people at Jharkhand & Orissa.

Recommended Action Plan– Efforts are needed to involve all employees for CSR activities on rotational basis, and should be made mandatory after every promotion (on atleast one week deputation). Special training needs to be given for understanding RTI acts.

Challenge VIII – Cost Control & Coping with Recession

The key to success plan Corporate Plan–2012 is to attain higher levels of growth in output with focused attention on quality and cost competitiveness. The following interventions have been suggested by the higher management:

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Recommended Action Plan–

Reducing inventories in the form of non–moving products in stockyards and

non–moving items in stores.

Optimizing energy consumption to the international levels.

Reduction in fixed cost through volume growth, reduction in manpower cost and

financial charges.

Reduction in variable cost through 100% production through BOF–CC route.

Reduction in operating costs by plugging wastages, leakages in pipelines, effective

utilization of assets, reducing non–conforming order etc using balanced score

cards, bench marking etc.

Process control computerization /automation.

Reduction in procurement cost by enhanced used of e–commerce, centralized

procurement for selected items.

Revising projects to get better deal and optimize the investment. This is a blessing

in disguise in recession.

Regulating expenditure in projects rigorously.

During economic downturns, most companies go on the defensive –– cutting back costs, downsizing marketing efforts and commoditizing products and services – just to survive. Great companies do just the opposite. In recessionary times, they position themselves to win –– ramping up promotions, accelerating new product introductions, and keeping a visible profile. By taking advantage of the emerging opportunities, they not only differentiate themselves during the downturn but also position themselves for explosive growth after its turnaround.

Companies negatively impacted by a recession never see the grander purpose such times can offer them. Instead, they perceive only the worst, react out of fear and shrink to a victim mentality. Great companies, on the other hand, see recessions as learning opportunities. They recognize that yesterday's thinking and strategies will not address today's challenges. For these companies, recessions motivate them to get closer to their customers, reassess their direction, and take action in new and creative ways. Their rise to the top is often a by–product of their beliefs, attitudes and responses to such challenging times. If seen in the right light, an economic downturn can be a blessing in disguise.

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summAry– ALphA, BetA AnD gAmmA COmpetenCy mODeL On the basis of above research work, we are proposing a model which will help SAIL to identify various competencies to meet the future challenges of growth.

Alpha,BetaandGammaCompetencyModel

Exhibit#11

COnCLusiOn It is impossible for any organization to build competencies in the short term. They take years to build. Building competencies requires tremendous amount of energy and time, in training and re–training people, making continual improvements, building databases where knowledge can be stored and retrieved and making competencies


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embedded throughout the organization. In this context human resource will continue to be the most vital key in realization of the targets set for the company. With changes in technology and work practices, the company will have to develop systems, policies as well as a culture which encourages newer ways of doing things through HR initiatives.

The Wheel Model and the Ten Commandments proposed in this paper will help to chalk out individual growth plan & will propel our organization’s pace of growth. The proposed Alpha–Beta and Gamma competency model will align individual & organizational competencies in line with company’s vision & mission.

The ultimate aim of our company is to become the lowest cost producer of steel. This can be achieved by process optimization, technological interventions, reduction in procurement costs by enhancing dependence on e–procurement , long term strategic alliance for raw material , reduction in financial cost , manpower rationalization, prioritizing ‘high return–low implementation time’ projects, investment in JV’s or acquisition etc.

References1. Managing the future, Peter F Drucker, Tata McGraw Hill, 1990

2. The Fifth Discipline, Peter Senge, Double Day, 1999

3. Building Robust Competencies– Linking Human Resource Systems to Organizational Strategies: Paul C. Green, 1999

4. Five Pillars of Management Competencies, Monica E. Oss, Open Minds, 2008

5. Competency and the learning organization, Donald Shandler, Crisp series, 2000

6. Core Competency Base Strategies, Andrew & Kathleen, 1997

7. Strategic Management & Core Competencies, Anders Drejer, 2002

8. SAIL NEWS Publications

9. GROWTH Magazines

10. Harvard Business Reviews (2004–2008)

11. Power Plant I in house manual– Pravah

e–references1. www.sail.co.in2. www.tatasteel.com3. www.businessacumen.com4. www.amazon.com


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AnnexureI

survey InstruMent– oBJectIve, desIgn & outcoMe

oBJectIve–

This instrument is designed to assess the self perception of employees about their competency level, so that areas of concern can be identified. The instrument also aims to gauge the effectiveness of various competency development methods/ techniques as explained in this paper.

desIgn–

The questionnaire I of the aims to abstract information regarding level of competency in areas like personal effectiveness, technical skills, communication skills, adaptability, business awareness etc. The instrument consists of two questionnaires. The Section B of the questionnaire is designed to collect the data from sample population providing self perception of individuals about their competency level. Section C of the questionnaire aims to abstract information regarding exposure & awareness of employees about various methods to develop competencies & will help to adopt & refine the prevailing competency development methods in SAIL.

outcoMe of the survey–

The research paper evolves a ‘Divine Spirit’ carrying the viewpoints of the employees and suggestions/ recommendations given by the respondents of the questionnaire 2 of the survey instrument.

Voice of the Divine Spirit Field Survey results/recommendations/suggestions

Using the results of this survey instrument area of concern can be identified and focus can be given to build competencies of employees by adopting ‘Ten Commandments to develop competencies’ proposed in this paper. The survey instrument is carefully designed to highlight the perceived barriers (as perceived by the respondents) during competency building and ways & means to overcome those barriers (as they felt).

AnnexureI:SurveyInstrument


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feelIng the pulse

Dear Madam/Sir

Under the research paper titled ‘Building Competencies for meeting the Challenges of Growth’ for the SAIL Chairman’s Trophy for Young Managers, we have developed this instrument to incorporate all crucial factors related to competency building. The outcome of the survey will give an overview about the present state of competency level of the executives of your organization & will also validate the effectiveness of the proposed techniques & anticipated barriers during competency building of employees. Please print your view points in the space provided or tick the options, as applicable.

(This instrument is purely for academic purpose and your identity will be kept confidential).

TheTeam:–

N Bhaskar, AGM (O)–SMSIIAbhishek Shrivastava. JM (P)–Steel ZoneAniruddha Bhagwat, JM (P)–Steel Zone

Personal Details

The data in the following section is meant to categorize the respondents according to Job Profile.

1.Whichofthefollowingbestdescribesyourjobprofile?Senior SupervisorFront Line ManagerMiddle Level ManagerSenior Level ManagerZonal HeadHead of the Department/sub–organizationTop ManagementPolicy Maker

2. Howmanyyearsofexperiencedoyouhave0–5 years5–10 years15–25 years25–35 years

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3. Beforeproceedingfurthertickmarktothegroupinwhichyoubelong.Projects Dept., CED, Township.

CO & CCD, SP’s, BF’s, SMS I & II, Mills

Finance, Marketing

Safety Dept., Medical, Fire Services, Vigilance

CET, BEDB, RDCIS, RCL

Oxygen plant, water supply, propane plant, CAS, PP I, PP II

HR Dept, Personnel Dept

CHM, CRM, ETL,MSDS, PLEM, CPS

section A. self perception questionnaire about competency levelS.

No.Self perception questionnaire for managers

1 2 3 4 5 6 7 8 9 10

1. How will you rate your personal effectiveness?

2. Rate your technical ability.

3. How good are you at communication skills?

4. How well you analyze a situation?

5. Rate your adaptability and resilience in response to changing work environment and demands

6. How passionate are you in improving work practices to achieve desired results?

7. How well are you in demonstrating your ability to accomplish a given task ?

8. Rate your ability to take initiative, chase & accomplish a given task.

9. How well do you follow values & principles associated with your work ?

10. How well are you aware of the complexities of the business and the company’s vision, mission & goal?

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section B. Questionnaire on Competency Building methods

I. BuildingCompetenciesthroughCoaching,Counselling&Mentoring(CCM)(a) Have you ever been guided by a coach, counsellor or a mentor at any point of

time in your professional career? (Yes/No)

(b) How effective do you feel the method of Coaching, Counselling & Mentoring?

(CCM) is to enhance competency of individuals?

Excellent Good Average Poor

(c) What are the barriers while building competencies through CCM?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

(d) How can we overcome the above mentioned barriers?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

II. BuildingCompetenciesthroughRoleModeling(RM)(a) Have you ever been inspired by a role model at any point of time in your

carrier?

(Yes/No)

(b) Is your role model from your own department/organization? (Yes/No)

(c) How effective can a role model (RM) be in enhancing your competency level?


(d) What are the barriers while building competencies through RM?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

(e) How can we overcome the above mentioned barriers?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

III.BuildingCompetenciesbyAssigningPlaygrounds(AP)(a) Have you ever been assigned a task for the intent of exposure without being held

responsible for the end results? (Yes/No)

(b) How effective is the method of Assigning Playgrounds (AP) as a competency development tool?



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(c) What are the perceived barriers while building competencies through AP?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––


–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

IV.BuildingCompetenciesthroughSimulationExercises(SE)(a) Have you undergone training through simulation exercises? (Yes/No)

(b) Rate the effectiveness of simulation exercises (SE) for building competencies.


(c) What are the perceived barriers while building competencies through AP?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––


–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

V. BuildingCompetenciesthroughOntheJobTraining(OJT)(a) Have you ever been adequately exposed to on the job training? (Yes/No)

(b) How do you rate the effectiveness of OJT as a competency developing tool?


(c) What are the perceived barriers while building competencies through OJT?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––


–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

VI.BuildingCompetenciesbyProfessionalBodies,Conferences&Seminars(PCS)(a) Have you attended seminars & conference in the past? (Yes/No)

(b) How many times in the last 5 years you have been given an opportunity to attend a seminar or conference?

a. Once b. Twice c. More than twice d. Nil


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(c) Rate the effectiveness of competency building through professional bodies, conferences & seminars (PCS).


(d) What are the perceived barriers while building competencies through (PCS)?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––(e) How can we overcome the above mentioned barriers?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

VII.BuildingCompetenciesthroughJobRotation&Enrichment(JRE)(a) Have you ever been assigned different jobs in your professional career? (Yes/No)

(b) How many times in your professional career have you been rotated on job?


(c) How effective can be job rotation (JRE) for building competencies?


(d) What are the perceived barriers while building competencies through (JRE)?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––(e) How can we overcome the above mentioned barriers?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

VIII.BuildingCompetenciesthroughSelfDirectedLearning(SDL)(a) Do you take initiative for self–development through reading and applying

management concepts in empirical situations? (Yes/No)

(b) Rate the effectiveness of self directed learning techniques.


(c) How frequently do you visit the Central Library in month?


(c) What are the perceived barriers while building competencies through (SDL)?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––(d) How can we overcome the above mentioned barriers? –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––


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IX.BuildingCompetenciesthroughProjectsBasedLearning(PBL)

(a) Have you ever been given specially designed projects related to your field to

enhance your technical and managerial skills? (Yes/No)

(b) How many times have you been given independent or group projects in you

professional career?


(c) How effective can be project based learning (PBL) to enhance competency

level?


(c) What are the perceived barriers while building competencies through (PBL)?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––


–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

X.BuildingCompetenciesEducationalInstitutesandSpecialCourses(EI&SC)

(a) Have you undergone any training program from educational institutes for special

courses? (Yes/No)

(b) Rate the effectiveness of competency development through training programs

from educational institutes & special courses (EI & SC)


(c) What are the perceived barriers while building competencies through (EI & SC)?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––


–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––


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section C. Organizational Competency Assessment Questionnaire

Assessing Organizational Competencies Yes No Can’t say

Product mix of SAIL suffices Indian market conditions and requirements.SAIL products carry a good brand image

The reach of our marketing network is quite sufficient to cater the demands of customer/market.

Growth Plan envisaged in Corporate Plan 2012 is realistic & achievable. Do you think collaborations with our competitors in steel industry like POSCO will be fruitful for SAIL?

Our projects implementation is on time.

Financial strength of SAIL will cater the demand of new projects.

Operational technology of SAIL is upto international standards(in terms of cost, energy consumption, quality etc)

The production processes, planning and scheduling are as per customer requirement.

Efficiency in operations is excellent in terms resources, utilization of assets etc.,

Operational technologies in SAIL are competitive enough to sustain us in the market

Training in the field of operations is needed

Processes are needed to be revamped, more automated.

With respect to Growth Plan 2012, SAIL is giving sufficient effort for securing raw material resources.

For infrastructure development like port handling, logistics, investments in JV’s, acquisition

SAIL is having a cordial & vibrant working atmosphere

SAIL is doing a commendable work to develop infrastructure, drinking water facilities and improve literacy level in the peripheral areas of operation.Do you have a sense of pride being an employee of SAIL?

Our company is adaptable to changes & fluctuations of business cycle?


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Please write your viewpoints in the space provided.

What are the main challenges of growth for SAIL (as you visualize)?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––In these recessionary times how you think SAIL can manage its finances for successful and speedy completion of its expansion plans?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––What are the strategies that can be adopted to achieve CP 2012?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––What are the organizational competencies (in the context of growth) do you feel important to overcome the challenges of growth for SAIL?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––What are the ways & means to enhance operational efficiency?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––How do you think SAIL can achieve & retain Market Leadership?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––In the context of growth, what strategies can be adopted in the field of HR initiatives to meet the challenges?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Give your suggestions to minimize time & cost over run during project implementation.

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––How can we improve our work culture?

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––


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AnnexureII–Results

Note:–Analysis of the questionnaire under section C has been covered between page no.26–31

Analysis– Section C

Assessing Organizational Competencies Yes No Can’t say

Product mix of SAIL suffices Indian market conditions and requirements.

55% 38% 7%

SAIL products carry a good brand image 61% 30% 9%

The reach of our marketing network is quite sufficient to cater the demands of customer/market.

71% 23% 6%

Growth Plan envisaged in Corporate Plan 2012 is realistic & achievable.

78% 9% 13%

Do you think collaborations with our competitors in steel industry like POSCO will be fruitful for SAIL?

81% 17% 2%

Our projects implementation is on time. 40% 59% 1%Financial strength of SAIL will cater the demand of new projects. 53% 31% 16%Operational technology of SAIL is upto international standards (in terms of cost, energy consumption, quality etc)

44% 54% 2%

The production processes, planning and scheduling are as per customer requirement.

65% 32% 3%

Efficiency in operations is excellent in terms resources, utilization of assets etc.,

55% 20% 25%

Operational technologies in SAIL are competitive enough to sustain us in the market

32% 61% 7%

Training in the field of operations is needed 93% 5% 2%

Processes are needed to be revamped, more automated. 95% 3% 2%

With respect to Growth Plan 2012, SAIL is giving sufficient effort for secured raw material resources.

48% 22% 30%

Efforts in areas like infrastructure development, logistics, investments in JV’s, acquisitions etc. are upto the mark

36% 61% 3%

SAIL is having a cordial & vibrant working atmosphere 88% 5% 7%

SAIL is doing a commendable work to develop infrastructure, drinking water facilities and improve literacy level in the peripheral areas of operation.

78% 8% 14%

Do you have a sense of pride being an employee of SAIL 89% 6% 5%

Our company is adaptable to changes & fluctuations of business cycle?

79% 19% 2%


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Self perception on Alpha Competencies of various groups (%)

GroupNames PE TS CS ES AS ADB ID PFE WE BA Respondents

Brahma 72 85 40 86 75 70 74 92 95 48 70

Vishnu 68 85 65 88 75 35 64 67 88 35 130

Lakshmi 73 75 85 71 46 65 51 66 88 90 32

Ganesh 62 90 42 55 86 68 69 61 80 88 41

Indra 65 91 86 71 68 25 92 62 87 30 43

Vishwakarma 70 83 76 95 75 60 67 82 63 48 32

Saraswati 89 68 82 76 85 64 54 63 88 95 30

Hanuman 95 64 60 72 51 65 78 85 81 78 38

72.3 82 64 80 71.7 52 68.9 73 86 55.38 416

Exposure to Various Competency Development Methods (%)

Exposure CCM RM AP SE OJT PCS JRE SDL PBL EI & SC Respondents

Brahma 15 55 5 12 100 21 55 86 80 28 70

Vishnu 45 38 5 12 98 48 18 100 8 25 130

Lakshmi 25 78 6 45 100 41 37 95 47 15 32

Ganesh 14 26 7 43 98 38 10 87 19 22 41

Indra 11 82 9 5 100 27 55 88 18 8 43

Vishvakarma 61 47 3 63 96 31 41 80 33 18 32

Saraswati 17 57 40 8 82 68 100 96 25 56 30

Hanuman 11 66 15 35 91 63 14 75 21 8 38

27.9 52 9 23 96.8 41 36 91 30 22.827 416

Effectiveness of Various Competency Development Methods (%)

Effectiveness CCM RM AP SE OJT PCS JRE SDL PBL EI & SC Respondents

Brahma 95 80 72 98 66 72 91 100 88 94 70

Vishnu 65 77 55 100 82 69 98 85 96 98 130

Lakshmi 30 81 55 76 73 91 85 74 96 97 32

Ganesh 73 62 72 73 96 88 85 63 84 91 41

Indra 65 85 52 82 90 83 92 84 77 89 43

Vishwakarma 85 80 50 87 92 90 79 95 73 85 32

Saraswati 85 65 68 89 71 91 96 100 87 95 30

Hanuman 81 58 45 79 45 51 96 41 58 92 38

72.6 75 59 90 77.4 76 92.1 82 86 93.865 416


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AnnexureIII–CaseStudyI

CaseStudyI–InitiativesatSMSIIofBSPduringRecession‘Tough Times never last but Tough Companies do’

SMS–II is an excellent example of competency building which we have undertaken as our first case study for ‘Competencies Building’. In the year 2000 the world wide recession was taking its toll. When survival was at stake BSP management was particular in increasing the life of converters.

Meetings were organized at the shop level. After through discussion, a decision to reduce the number of converter repairs in a year was taken. Repair period was also to be optimized with the involvement of sister departments. Final mission was to increase converter availability. Ways and means were evolved to achieve the same.

I. Strategies&planningReduce the total no. of repairs in converters

Optimize the time taken for relining

Increase the utilization of VAD

Route more heats through LF–RH

II. ProcessModificationsUse of 5–hole lance

A pilot lab at the shop floor

Modified lip ring at converter

III.TechnologicalupgradationMagnesia carbon bricks

Fixed bottom

Nitrogen –splashing

MgO enriched slag MgO > 8.0%

IV.PeoplerelatedMass contact & training programmes like Performance Enhancement Programs (PEP) and Creating Responsive Organization through People (CROP)

Increasing awareness amongst employees

Involvement of all concerned departments like RED II, RMP II, RCL etc.

Clarifying individual role with respect to the target

Various motivational schemes for employees

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A


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Constructive Leadership of the HODs

Systematic mentoring of employees involved

Raising the bar continuously

Use of business tools like TQM, SQC which lead to six sigma implementation, KM etc later

The results of the exercise are depicted below:

The employees of SMS–II have become totally charged. It seems they are following what can be explained in the words of "Maiden Olympic gold medalist" Abhinav Bindra as

A specific and clear goal

An efficient system with targets specified for everyone

A mindset and desire to achieve the same

Plan & implement

World class technical know how with strong foundations

Train yourself harder

Full commitment and dedication in whatever you do

Don 't compromise with intermediate success and

Finally don't loose heart when faced with obstacles

A

A

A

A

A

A

A

A

A

A

A

A

A


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AnnexureIII–CaseStudyII

Case study ii – pRAvAh (power plant–i)The best way to assess a model or a theory is to relate it with real life cases. We have validated our model by a Case Study in Power Plant –1. This case study relates to competency building of 468 in total employees through collective efforts of Power Plant I & HR department at BSP. The in–house program was named as ‘Pravah’.

The Objectives of the program were:To create cost consciousness

Improve operational efficiency

Knowledge enhancement and sharing

Team Building

Multi Skilling

To create safety awareness

To make employees understand Environmental Concerns

methods given below were followed.Class room training

Involvement of all employees

Wide publicity through competitions, hoardings posters etc.

Personal contact exercises

Motivation & recognition thereby assuring due credit to the deserving

In–house manuals which created a learning environment

(A)TocreateCostConsciousness

SOP’s and SMP’s were made available to working personnel and were displayed at work place for safe and efficient working. Cost coordinators and stewards were appointed. Interactions, meetings etc were organized on daily basis.

To mingle with personnel of other areas

Explain the importance and necessities of cost reduction

Brainstorming sessions were conducted to identify areas where costs can be cut

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A


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Suggestions were also sought and given

Task forces to liquidate the leakages of utilities like water, gas, oil and compressed air

(B)ImproveOperationalEfficiency

Efficiency of operations was increased through suggestions received like

1. Proper sizing of cables (length and rating)

2. Inventory control through standardization

3. Salvaging of idle assets

4. Optimization of operations for increasing efficiency

A cost indicating chart for steam, power, chemically treated water, compressed air and circulating water, chemicals for water treatment, spares and stores were displayed at almost all the locations of public gathering like canteens, meeting rooms, rest rooms, walkways etc. This led to proper utilization of the same. The importance of maximum use of by–product fuel gases in place of coal were explained to and monitored by employees. Awareness was spread about efficient working through slogans, posters, songs and announcements.

(C)KnowledgeSharing–

Class room training was imparted to employees of one area about other areas in HRDC. During these classes problems arising in a section due to failure of other were discussed among various sections of Power Blowing Station namely– Boilers group, Turbine group, Electrical group, WCTP group & Coal handling plant. The relationships among the various sections were emphasized. Their interdependency was highlighted.

For example falling of steam temperature from 450° C (rated) to 390° C or 400° C can cause failure of various joints or failure of turbine blades. The boiler operation group was totally ignorant about the failures occurring in the turbines before. Maintaining the electrical generation became easy & reliable, because the electrical operator came to know the problems being faced by Turbine & Boiler group. This has improved co–ordination in the working of Boiler, Turbine & Electrical personnel.

(D)TeamBuilding–

With the help of HRD various exercises related to team building were conducted during “PRAVAH” training program. Group presentations were also made during the sessions. This led to cohesive working and consistent outputs.

A

A


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(E)Multi–Skilling

Earlier turbine group & boiler group were working independently in their own specific areas. During the training program technical inputs about the turbines, difficulties that arise in their working, causes and ways to eliminate/prevent them were given to boiler group & vice versa. The details were discussed at length covering all the technical aspects of operations and maintenance. After the training, employees were ready to take on the challenges in other areas also. The turbine capital repair group gained confidence to carry capital repair of boiler. Efforts are being made to rotate personnel of operation & maintenance of turbine group & boiler group respectively. Electrical section of PBS has already incorporated job rotation among operation & maintenance groups.

(F)ToCreateSafetyandEnvironmentalAwareness

Potential hazards involved with operation of the plant were classified on the basis of source, equipment, & medium. Physical injuries related with the operation of captive power plant were discussed in length. Apart from accidental injuries persons working in the hazardous environment of captive power plant also suffer from many diseases due to prolonged exposure of heat, dust, fumes, noise, vibration etc. The employees were made aware about the diseases & its prevention. Safety consciousness has also increased.

All the employees of PP–I were given safety talks before allotment of jobs on daily basis. An insight was provided about

a. ISO–14001–2000

b. Safety aspects while working in a plant

In this way Power Plant I addressed key issues pertaining to operational efficiency and competency building of its employees. This case study inspires all of us to take initiatives in the field of competency building. This will help in increasing knowledge, skill & attributes of the employees to meet the future challenges of growth. After the success of Pravah I, a sequel to this program is also on floor named Pravah II.

Outcome of Training Program Pravah IThe employees were made aware of the following facts:–

1. A reduction of 1% in the generation of power will lead to a savings of Rs 78

lakhs annually.


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2. A reduction of 1kg per ton of steam in boiler coal consumption will lead to a saving of Rs 82 lakhs annually.

Item Before After

Cost of Power Generation Rs3111/ MWH Rs3010/MWH

Cost of Steam Generation Rs484/Ton Rs452/Ton

Cost of Compressed air production Rs 433/ THCUM Rs 413/ THCUM

Sp. Steam cons. in Turbo Generators 5 Kg / KWH 4.91 Kg / KWH

Sp. Boiler Coal consumption 35 Kg / T of steam 33.85Kg / T of steam

Steam consumption. in Turbo Blowers.

460 Kg / T of hot metal 453.73 Kg / T of hot metal


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jt. runners–upDebadutta Satpathy, Sr. Manager, TQM Ms Chaitali Das, Sr. Manager, HRDC

Jayanta Sarkar, Manager, HRDC

rourkela steel plant

IntroductIon:

“Hey! Damn it! Why could not you shoot that devil?” asks the gang leader to his new recruit.“He was only at a short distance, was not he?” the leader growls again.“Yes, he was”. The shooter replies. The questioning continues.“Was your gun properly serviced?” “ yeah”“ had bullets in it?”“ yup”“ Did your horse jump when you fired?”“ No, my Hero will never do that”“ Grrr… thennnn????” the goon got choked in fury.“Well boss... for a start ...I donno how to shoot”Excerpts from a scene of the 1965 classic” The Good, the Bad and the Ugly”, Circa, 2008, when revolutions are taking place in every sphere of public life, when tectonic transformations are redefining the way we live, when village communities have long given way to world market places, the question that still remains uppermost in every corporate chieftain’s mind, how does he enhance the competencies of his employees? At least in this respect, both the gangster and the tycoon face the same dilemma.Perhaps the recurring query is inevitable. A skilled manpower is an exhaustible resource. After all, it is not everyday that a corporate honcho picks up one out of a billion populations and places him or her at a vacant post. It requires years and years of training, continual performance appraisal, rewards, and occasional reprimands and so on. Apart from the substantial monetary angle involved in building up of a competent individual, huge amount of time and energy is consumed in the process as well. But when overwhelming technological makeovers take place, the same hyped-up geeks fall by the wayside. In some other cases, highly skilled technocrats, being weighed almost in gold, are lapped up by hungry poachers. This causes incalculable tragedies to the original company in terms of missed opportunities as well as financial and goodwill loss.


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Reams of volumes have been dedicated to understand the ultimate non-linear function ever known to mankind: the human mind itself. How to make it susceptible to a laid down formula and how to ensure its adherence to booster doses of knowledge are challenges that are as old as the history of mankind itself. The successful ones say that they know that all powerful mantra to make their employee competent. But when favourable business opportunities give way to cycles of downturn and employees leave in hordes, they are left groping for answers. The bestsellers written decades ago by Akio Morita, Jack Welch and Lee Iacocca about culture and competencies may no longer be relevant in a vastly different world. The Japanese way of working was a huge hit in the 80’s. Now it is the turn of China and some say, tomorrow belongs to India. C.K.Prahalad’s Core Competency was such a seminal success in the 90’s, that organizations divested themselves in a tearing hurry. Now analysts say, conglomerates and federations are not bad ideas at all. Our point of submission is that understanding the overall nuances of competency assessment, augmenting the pertinent factors and canalizing the same to grow one’s company by mere table-top discussions and few sundry observations are something akin to trying to save the Titanic by rearranging the deck chairs. A deeper level of thinking is required to break the shackles of long-held paradigms and create new frontiers of human capabilities. This study is intended to be a facilitator in that direction, how to unleash the vastly untapped potential energy and suitably convert it into limitless kinetic prowess. Our month long interactions with the workforce convinced us that competency development is the need of the hour which can not be realized by empty sermons or lackluster class room trainings. Situation beckons us to put our thrust not on slow improvements; it is more about big-bang transformations. Otherwise, organizations, including SAIL, regardless of their pedigree, will gradually slide into strategic stagnation. One of the finest examples of desired strategic shift is the watches that we wear. Efforts to improve the accuracy of mechanical watches are pointless today because electronic oscillators have made accuracy a non issue. A real strategic issue here would be the choice between developing the lowest cost pin lever watch with tolerable accuracy, for sale in third world markets where even the cheapest watch is still a costly luxury.At the beginning, we unfold our observations on the exigencies of today’s corporations and why competency augmentation finds a place in the lexicon of every businessman worth his salt. The reason is pretty simple. He has to extract more from less in a volatile high growth market, where past is forgotten in a hurry and tomorrow is light years away.

Its all about utilizing today’s resources to the optimum level. The more, the better.

The growth enigma for SAIL, should we or should we not?Many hoary eyed idealists dwell on the good old days, when our company had very few rivals in the market. Competition was low, choices for the consumers were few, manpower was plenty and life was less demanding and complicated. They argue that any growth


101

strategy, be it Greenfield or Brownfield expansions, mergers and acquisitions, is fraught with inherent risks. Its better, these pundits add, to stick to gradual improvements rather than wholesale expansions. With the advantage of hindsight, they gloat over the slump of late 90’s and point out that the perils of overcapacity at that time were the undesirable residues of mindless growth. Therefore, it is quite natural that the talks of these so-called experts border on hysteria when discussion shifts to current growth plan of SAIL. They further bolster their arguments citing the present day turmoil in financial markets.

Doomsday is not far away, they wail in unisonThese intellectuals have no doubt, merits in their arguments. When we are stepping into a future cris-crossed with scores of unfathomable variables, risks and returns can never be suitably ascertained. But then, no business house in the world has all its ventures successful. While Maruti-800 is still a huge hit with the middle class, its successor Maruti-1000 sank without a trace. Sabeer Bhatia created worldwide flutter with his hotmail. His next project, ‘Junglee’ was an unmitigated disaster. If Yash Chopra knows the mantra of box-office success, then why had he so many flops in recent times? Even Warren Buffet, the undisputed kingpin of stock market, had burnt his fingers many a times. Take any of the fortune 500 biggies, be it Wal-Mart, General motors or Nike, all have their share of setbacks.But all these do not mean that these individuals or companies will stagnate, ruminating about the past glories. To stay in the business and thwart competition, they have to grow. They do not have a choice.Neither does SAIL. Its massive physical size no longer offers prestige value for the customer.In 2004, TATA Steel rolled out its international growth plan by acquiring a 2 MTPA steel manufacturing and rolling capacity in South East Asia through its investment in NatSteel-Asia.(renamed since as NatSteel holding). The next year, it gobbled up Millennium Steel, Thailand, the country’s largest steel maker. Then came another beamer, the acquisition of Corus group in 2007 that made it the sixth largest steel company in the world with a combined capacity of over 31 MTPA. These are apart from the scores of joint ventures that the company has made in different countries like Oman and Mozambique for acquiring its raw materials like limestone, iron ore and coal. Back home, besides expanding its existing facilities at Jamshedpur, it plans three new Greenfield projects in Orissa, Chhattisgarh & Jharkhand.Another close competitor of SAIL, JSW steel, has similarly set up a scorchy growth pace. It acquired both Jindal Steel and Alloys ltd and UK based Argent Steel in 2006 followed by the merger of Southern Iron and Steel Company in 2008. It also formed joint venture in 2007 with Geosteel ltd to build a steel rolling mill factory in Georgia with a capacity of 175000 T/annum. As per its Vice Chairman and Managing Director Sajjan Jindal, it plans to go to 18MT by 2012 from the current 4.8 MT.Bhushan Steel, which was earlier a niche market player of cold rolled and coated product, has moved downstream to build integrated steel mill. Ispat industries is expanding its hot rolled coil steel making


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capacity from 3 to 3.6 MT and is expected to give SAIL tough competition, especially in the western region of India. Even Essar Steel has struck gold with its innovative marketing strategy, opening up scores of steel retailing stores at major steel consuming centers to help consumers meet their emergency requirements.The list would go on. What we want to emphasize is the fact that every player in the field is girding his loin for a quantum leap as far as growth is concerned. The drafting of the growth strategy of SAIL would simply therefore be based on the logical extension of one’s reaction to external environment and not on short term expedient thinking. Therefore, growth is an imperative, not an option any more.

But the company has to resist the temptation of short-circuiting the identification of critical issues and line implementation of solutions by skipping the intermediate steps: planning and organizing for concrete actions. Even the most brilliant manager can not translate an abstract plan into action in a single step.

Getting down to brass-tacks, the sustainability factorOnce we are clear that growing with the requirements of time is a necessity, then the question comes how far has SAIL fulfilled that requirements and whether competency does play a part in reviving up the growth engine. For a start, the company is investing Rs 54000 crores to grow the hot metal capacity simultaneously to about 26.2 MT in the next couple of years from the present level of 14 MT. This is quite on the expected line considering the fact that steel consumption has increased by 10% on a compound basis over the last couple of years, but the production has risen by just 6.5%. Plans have been spruced up for raw material linkage, sales force augmentation, enhancement of power facilities and so on. But when we closely look at the resources at the disposal of our company, almost simultaneously a very discordant note strikes. Yes, we are one of the major PSUs making pots of profit, our market capitalization is at an all time high, we have a diverse range of products catering to almost every market, and our marketing grid has spread its tentacles all over the country and beyond. We have the benefit of a rich legacy and future has never looked so bright.

Is that so? Then why that all too familiar apprehension is writ large on everybody’s face? Why is the lingering feeling of lack of analytical mind and mental elasticity?

Core competency is something that is inherent to the organization, in its mind, body and soul. So it is almost impossible to steal, unless the competitor decides to nuke its rival. Every company that is trying to build the future must prioritize its resources and try to build its core competency on its most sustainable resource.

Garry Hamel and C.K.Prahalad in “Competing for Future”

Now it strikes. The challenges of growth of SAIL are just too many.( see Annex-I) In fact, none of the variables at the command of SAIL is non-replicable. Private players are smacking their lips for possible acquisition of mines and niche market operators are indulging in guerilla warfare to chip away our market shares.


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Actually, the private sector has received investment of US $ 5994 million lined up through 102 MOUs to add 103 MT in steel. Behemoths like Mittals and Jindals are money machines and are importing latest technologies in a tearing hurry. Project management delay is another perennial source of concern; especially for companies like SAIL due to varieties of reasons that range from change of scope to unrealistic deadlines to political. Government regulations are now things of the past and PSUs, once revered as temples of modern India, get no preferential treatment. Post Beijing Olympics, the demands of China has slumped .In addition to that customer demands are so capricious that any strategist would have his hands full to cater to them.The environmental norms are getting stricter by the day as customers demand “clean and green steel”. In the eyes of the world, we are slowly becoming an unwieldy spent force, ready to be forgotten once the economic boom subsides.

If we can not compete on technology, if our decrepit machines are no match to the level 4 gizmos, if social obligations play a more important role in our vocabulary then profitability, where do we stand in coming future? How on earth can we vie with mammoth steel gorillas? What is our leveraging factor? Should we challenge our competitors on their field of expertise or should we unfold an entirely unexplored area?

The fact that a weak opponent challenges a Goliath knowing that defeat is imminent is brought out clearly by Kenichi Ohmae in his all time best seller “The mind of the strategist”.

“A former classmate of mine had his car badly damaged when a deer ran out of the woods, evidently intending to cross the roads, but then stopped in its track as if it had momentarily lost its bearing. In the next instant, catching sight of my friend’s oncoming car, the animal lowered its head and charged the vehicle head-on. The sudden apparition of the car must have paralyzed the deer’s judgment, causing it’s perversely to rush in the fatal direction when it could have escaped with seconds to spare.

Sadly, most of the organizations behave like the unfortunate beast. Even with the full knowledge that they can not compete with behemoths in the field of technologies, they become kamikaze warriors and go ahead competing, as if they have been gripped by strategic paralysis. The result is almost always painful, huge loss of resources and possible bankruptcy. Instead, what they should do is to search for blue oceans, which have not been probed by the other gigantic ones…”.

Similarly, we ought to look for unexploited degrees of freedom and ask what remaining possibilities exist. Brute strength is not always required to survive against a heavyweight. Rather, what is vital is timing, for the most brilliant strategy will be useless if it fails to take into account the ever-changing trends of the market.


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In the present context, when we are almost seized from all fronts, one needs to fall back on the asset that never appears on the balance sheet. That sounds nice in speeches, but then slides out of mind as soon as it appears.

Our employeesIt’s an idea whose time has come. It’s also about time that we come out of intellectual timidity.

Those little grey cells: the unlimited potential of human mind When people say you are lucky, I agree. But when they say that software made me lucky, I disagree. A string of binary codes can not make anybody rich. I am lucky because I have people who comprehend those machines and optimally utilize it.Narayana Murthy, Chief Mentor, Infosys, in an interview

Therefore, our only chance of survival in the face of sheer competition is to multiply the competencies of our substantial human resources that will tear away the sizeable advantages enjoyed by our rivals. Every employee will then be a value adding machine, every day will be an experiment in innovation and the intellectual return on investment will further enhance our knowledge bank. Unlike other resources, this one will be inexhaustible and enriching in nature. Being virtual, they will be embedded in organizational culture and impossible to imitate. The most important part of competency enhancement is the advantage of age and experience. The workforce will learn from the errors and omissions of the past and suitably utilize it in the current context.

Competency, the inherent catalystA competency is an underlying characteristic of a person that enables him to deliver a superior performance in a given job, role or a situation. It leads to demonstration of skills and abilities. It thus refers to behavior, differentiating success form merely doing a job. Most importantly, competency also embodies the capacity to transfer skills and abilities from one area to another.

Unfortunately, just being competent is not enough to bring in superior performance. The job of a flourishing organization is to translate that potency to performance. A highly skilled technician may simply vegetate due to poor environmental factors. Persons with numerous academic achievements may degenerate into hibernation in view of improper recognitions and Durbar Politics. Therefore, the first job for any company like SAIL will be to identify the gap in competencies and then find ways and means to fill up that void. The next prominent step will be to enthuse those competent individuals to probe the boundaries of their capabilities and achieve the impossible.


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Can not do Can do

Gap in Competency Motivate Will do

Job in Jeopardy Counsel Won’t do

The Kenneth Carlton Cooper Model

But then, if updating competency is such an important factor, how come it is given such a short shift? It is all due to the longstanding, deeply embedded belief that capital is the critical strategic resource to be managed and that senior manager’s' key responsibilities should center on its acquisition, allocation and effective use. For the vast majority of companies, that assumption simply is no longer true. Without denying the need for prudent use of financial resources, we believe that, for most companies today, capital is not the resource that constrains growth. Global capital markets have opened up the supply side, while widespread excess industry capacity has reduced the demand side. The recent reversals in some sectors notwithstanding, most companies are awash in capital. There is a surplus of capital chasing a scarcity of talented people and the knowledge they possess. In today's economy, that is the constraining — and therefore strategic — resource.

For example, in almost any company, decisions relating to capital expenditures are subjected to well-documented capital-budgeting procedures. Typically, guidelines define approval levels ( for example, division presidents may approve expenditures up to $1 million, the CEO up to $5 million, and the board above that level), require clear evaluation processes ( for example, positive discounted-cash-flow returns above the Weighted cost of capital) and set specific benchmarks ( for example, payback on new equipment in three years).

When it comes to hiring a district sales manager or a shift foreman, however, decisions are routinely made by front-line managers who choose the best available among three or four marginal applicants to address a short-term difficulty. Yet that is at least a $2 million decision if one calculates recruiting costs, training costs and a discounted cash flow of the expected future stream of salary and benefits payments over the average tenure of such employees. But by recruiting a merely average individual, the company loses the opportunity to gain competitive advantage through a hiring decision.

Developing Competency Model to fill the gapA competency model describes the combination of knowledge , skills and characteristics needed to effectively perform a role in an organization and is used as a human resource tool for training need identification, training and development, appraisal and succession planning. Identifying and mapping these competencies are quite complex and the

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methodologies may vary from organization to organization. Skill can range from highly concrete proficiencies like the ability to operate a particular machine or to write the software for sequentially performing an automation task to intangible capabilities like team building, communicating effectively; motivating / developing subordinates and so on.

In the course of our project preparation, we have come across several models that could prove useful to an organization like us. (We have our own competency development model at HRDC and provided that of Infosys as a comparative study, see Annex-3 & 4). What appealed to us most was the Lancaster Model of Managerial Competencies that takes a step by step approach in this respect. It is a universal management competency framework developed by Burgoyne. The eleven qualities separate into three groups, which represent three different levels. The first level forms the foundation level, and comprises two kinds of basic knowledge and information a manager may need to use in decision making and action taking. The subsequent levels propel him to higher grades of mental strength that ultimately makes a complete and successful manager. In fact, we have based our own competency model on the basis of the Lancaster Model.

Level -1: have you done your homework?During the course of our project, we came across people who are in a sense war veterans, but time has taken a toll on their mental agility. Their highly compartmentalized knowledge is hardly getting updated with the latest changes in the technological frontiers. Be it officer or non executives, everybody is watching the events through the prism of production and not technical awareness. For example, how many of the mechanical persons are updating themselves with information about latest lubricants that are coming in the market? How many electrical employees are thorough about contemporary logic circuits? How many innovations, however small, are being attempted for enhancing productivity of blast furnaces? If at all advancements are being studied upon, is the knowledge being passed on to the people at the shop floor? Most of the answers, sadly, will be in negative. We are bound by a bygone legacy of assembly lines, of sweatshops, where people carry little weight.

Level 1 competency model therefore states that that a successful manager should understand the business and have a sound knowledge of basic facts surrounding the business such as short and long term goals, product knowledge and the roles and relationships between various departments. This includes such as management techniques, sources of finance or knowledge of basic background management principles including planning, organizing and controlling. The second category comprises specific skills and attributes that directly affect behavior and performance.


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The Lancaster Model of Managerial Competencies

Level-2 & 3: Its promptness and mental strength that countThe story goes back to 1984 when Dhirubhai Ambani was building his empire and his pet project ‘Patalganga’ PFY plant was about to start. His son Mukesh was in charge of the recruitment of managers. Being a Stanford product himself, Mukesh was dead set to hire financial whiz kids when the elder Ambani dissuaded him. “You MBAs are essentially bean counters who can not look beyond balance sheet. I want persons who have a feel of the system and take instant decisions as the situation demands. I won’t mind spending a million for these guys”. People differ not only in their ability to do but also in their 'will to do'.

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Of course, Dhirubhai never read Lancaster Model. But the level 2 explains that the manager must be aware of what is going on and is perceptive and open to information. As a result a successful manager is able to respond in a suitable manner to situations as they arise. His analytical, problem solving and decision making skills, emotional resilience as well as proactivity or inclination to respond purposefully to events need to be of highest order. Similarly, level 3 stresses upon creativity and mental agility.

We understand that these traits are more self ingrained than acquired and especially for PSUs like us, we can not hire best people in a jiffy. But we can do the second best thing by placing the right people at the right job.

Robert Joy of Colgate explains that his company tracks the success of competency based selection process by looking at the number of high potential employees in each business unit. According to him, the process has succeeded in helping the organization locate top talent worldwide. We also need to development of appraisal systems that evaluate people on their use of behaviors and practices that directly contribute to competitiveness, encouraging both the business and the individual to focus on whatever will have the greatest impact. The 360 degree Feedback process is being increasingly used in organizations for development, appraisal and compensation purposes. (See Annex-2). It involves a collection of perceptions about an individual’s behavior and its impact on bosses, colleagues, subordinates as well as internal and external customers. Competency models help to ensure that such feedback relates to the competencies crucial to individual or organizational successes.

Leaving aside theories, what we sensed from our several discussions with line managers that it’s about time for a cultural renaissance for our company. Moribund bureaucratic systems have to give way to an atmosphere of trust and openness. How can we generate that inquisitiveness in an employee if he is taken to task for every minor deviations? Where from that competency will come when all his ideas are clustered in a file and then quietly forgotten? Management, after all, is people, and businesses are made successful by people, not by generating grandiose plans in corporate boardrooms. Behind each success story in business are men and women of stellar character who conceived the ideas, developed the strategies and executed the planned actions. It is our firm conviction that SAIL will not be immune to the ambience of economic glasnost that is virtually redefining our way of living. We sincerely believe that day is not far off when there will be healthy revival of entrepreneurs who will demonstrate once again how crucially the success of a business depends on the way it is managed.

A competent leader can get efficient service from poor troops, while on the contrary an incapable leader can demoralize the best of troops.

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the four drIves that underlIe competency : studyIng the human mInd

So far, we have studied how externally calibrated approach enhances the competency of a group of individuals to unparalleled level. But only attenuating peripheral factors perhaps will not help in the long run in charging up an employee. We have to now get down to brass-tacks, from systems to human beings.

All of us have witnessed the marked decline in the ability of large corporations to cope with the changes that confront them. In these companies, brains and muscles were separated, destroying the entire body’s coordination. On one hand, there were the brains; on the other there was the muscle-the people of the enterprise. They were there to make the plan a reality, to carry out the brain’s instructions.

On putting it differently, there were smart people and dumb people. The smart people were so smart that they had to spell out every detail of the corporations’ strategy for three to five years into the future. They planned everything; they knew the job description of every function. Thus the dumb people never got the big picture. They just concentrated on the boring little details that they were still allowed to control.

But when we are peeking into future markets, this ‘us versus them’ concept no longer holds true. We have to do some very strategic thinking, along with insight and aggressive questioning as to why a workman can not think beyond his personal number. Theories and concepts are subject to obsolescence, brains and thought processes are not. More importantly, the mind is an asset that constantly appreciates in value and never a private property of a group of individuals.

To goad a corporation to future, therefore, will not be possible by group competency development alone. In spite of excellent appraisal system, robust feedback mechanism and fantastic training programmes, what matters at the end of the day is whether the man with the spanner is revitalized to put in that bit extra. When we say organization means people, we need to really mean it. It has to be from gut, not from lips.

New cross disciplinary research in fields like neuroscience, biology and evolutionary psychology has allowed us to probe deep into human psyche. Most research suggests that there are some common primordial drives that boost the human mind to unprecedented level of perfection. Though several models exist, the most famous and widely accepted one is that of Paul R.Lawrence and Nitin Noharia in their 2002 research paper, Driven: how Human nature shapes our choice.

Being competent means the ability to control and operate the things in the environment and the environment itself.

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The Drive to acquire: The importance of being important A person is always driven to acquire scare resources that bolster his sense of well-being. The urge to excel comes when this drive is fulfilled, discontentment, when the same is thwarted. Even a simple toolbox with his name inscribed on it sometimes propels a workman to put in extra efforts. A small get-together proposed by a superior for a job well done drives a workman to think for even higher achievements. This phenomenon not only applies to physical goods like food, clothing, housing and money, but also to experiences like travel and entertainment – not to mention events that improve social status, such as being promoted or getting rewarded. On the flip side, the drive to acquire tends to be relative (comparison with others) and insatiable (one always wants more). That suitably explains why people always care not just about their own compensation but about others as well.

This was a case from personal experience. Once a steam pipeline at a plant got burst. There were ear splitting noise, unbearable heat all around and approach to the affected area was almost impossible. Simultaneously, due to constant steam leakage, the overall steam pressure was gradually coming down and the plant was on the verge of collapse. One of the workmen, in spite of tremendous physical risk, closed the valve and isolated the affected line thus saving the plant.


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Of course, his contribution was never acknowledged. Reason being, he should been so alert that the pipe-bursting would not have happened at the first place!

What everybody forgot that the poor fellow has just utilized his ‘muscles’ to do emergency corrections. It is the job the babus, the so-called ‘brains’, to initiate preventive measures.

Our point is that a person is as much driven by money as by ego and self-esteem. Even a pat on the back or small mementoes can boost his morale and competency manifold.

The drive to acquire is most easily satisfied by an organization’s reward system, how effectively it discriminates between good and poor performers, ties rewards to performance and gives the best people opportunities for advancement. When the Royal Bank of Scotland (RBS) acquired Natwest, it inherited a company in which the reward system was dominated by politics, status and employee tenure. RBS introduced a new system that held managers responsible for specific goals and rewarded good performance over average performance. Former Natwest employees embraced their new company –in part because the reward system was tough but recognized individual achievements.

Sonoco, a manufacturer of packaging for industrial and consumer goods, transforms itself in parts by making a concerted effort to better meet the drive to acquire- that is, by establishing very clear links between performance and rewards. Historically, the company had set high business-performance targets, but its 1995 pay-for-performance based on individual and group metrics that spurred it to top-20 talent management organization in the US. Significantly, it was one of the few midcap companies on the list, which included big players like 3M, GE, Johnson & Johnson and Dell.

The Drive to bond: We swim or sink togetherMany animals bond with their parents, kinship group or tribe, but only humans extend that connection to larger collectives such as organization, associations, and nations. The drive to bond, when met, is associated with strong positive emotions like love and caring and when not, with negative ones like loneliness and anomie. At work, the drive to bond, accounts for enormous boost in competency when employees feel proud of belonging to the organization and for the loss of morale, when the institution betrays them.

Perhaps nobody understood this drive to bond better then the Japanese: who pioneered the concept of continual improvement through Quality Circles and several such path breaking measures. They fully understood that management, after all, is people and businesses are made successful by people, not plans. A favorite phrase of Japanese business planner is hito-kane-mono or people, money and things (fixed assets).

They believe that streamlined corporate management is achieved when these three critical resources are in balance; without any superfluity or waste.


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In our plants, we have several such measures, chiefly the Quality Circles (QC) and Shop-Improvement Groups (SIG). But their effectiveness leaves much to be desired. Currently, they are just plain statistics to be flaunted during PR exercises. The real benefit will accrue when the output of group activities are periodically reviewed and put in practice in related jobs. Most importantly, it is not job of one or two department to usher in the culture of bonding. It has to be embedded in organizational culture.Toyota provides a good example of Japanese sense of bonding to enhance competency. It provides specific thrust on suggestion boxes which used to receive more than lakh proposals annually, almost more than 25 per employee. These suggestions are not just harebrained ideas; they are the output of group discussions and viability analysis. This has resulted in savings worth $ 500 million last year, which is not an insignificant sum even for a company of the size of Toyota.

Another company Hitachi has instituted a movement called Management Improvement (MI), which is a value analysis of all direct and indirect work in consultation with groups of employees. The profit contribution from this particular set of activities is an astounding 71%. Back home, Tata Steel has successfully initiated a program called MASS (Manthan Aab Shop Floor se) where a core knowledge management group is formed to assess organizational wide competencies and then syndicates with departments for their optimum utilization.

The drive to comprehend: my presence countsThis is an excerpt from an interview that we conducted in Hot strip Mill with a housekeeping staff. We have kept some portion in Hindi to let the reader get the essence.

Q: “What do you do?”A: “Jhadoo-poocha”Q: “For how many years are you working here?”A: “ayhi koi bees pachhis saal”Q: “What’s the benefit to the plant if you do good Housekeeping?”A: “Pata Nahi saab, babu log bolta hai, hum karte hain” and finally Q: “What’s the job of Hot Strip Mill?”A: “Pata Nahi saab,humara kaam to Jhadoo-poocha hai”Our point of submission is that a person wants very much to make sense of the world around us, to produce theories and accounts- scientific, religious and cultural –that makes events comprehensible. An employee feels frustrated and his competency level profoundly drops when he or she is unable to prove his existence. Conversely, it is the challenge of rediscovering his innate excellence that goads him to unfathomable heights. Growing and learning, these are the important factors in today’s competitive world.

Competence, like truth, beauty and contact lenses, is in the eye of the beholder.

Raymond Hull


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Had the housekeeping staff learnt that his job is linked to a clean workplace that could ultimately lead to fewer accidents, less man-hour loss and finally higher productivity, perhaps his entire approach would have been different. Possibly nobody bothered to explain him. Possibly he never asked, being in the ‘muscle’ category. For him, every day is same, getting order and Jhadoo-poocha.

In our view, any company that looks for future leadership, has to put a mirror in front of each of its employees as to where he or she stands and how his or her individual contribution is getting translated into organizational profitability. This is best exemplified by ISO 9000 standard, which has a term called ‘Quality Objective’. In short, Quality Objective is not only a departmental goal, it asks for its linkage with individual job design.

The drive to comprehend is best addressed by designing jobs that are meaningful, interesting and challenging. JW Marriot, a star hotel in Mumbai, has a newsletter that is read out before the commencement of their shifts. Intel’s “the write to know” program allows employees to anonymously ask any business related questions about the company and get a prompt answer. Philips Software has a unique forum called “Express Yourself” through which the employees can write their thoughts on whiteboards provided in the cafeteria. Retail giant Wal-mart has some prefixed dates when groups of employees can directly interact with the CEO through video-conferencing.

The global management-consulting firm McKinsey & Co. is an example of a company that truly values its employees, as it demonstrates through its commitment to their development. Although formal training plays an important role, by far the most critical development tools are intensive individual feedback and coaching. Such activities absorb 15% to 20% of the average partner’s time. Every consultant receives a formal performance review from his or her office's partner group twice a year, with the individual's designated development director offering detailed feedback, counseling and career advice. The input for that biannual review comes from reports prepared by each of the client engagement managers, senior-level consultants who are responsible for the day-to-day management of the team to which the individual belongs and who have supervised the individual’s work. The engagement managers also provide the consultant with feedback, evaluation and development advice after each of the four or five engagements that span a typical year's assignment. During each engagement, the consultant also has dozens of additional one-on-one feedback and coaching sessions with the more senior people managing and directing the project. In total, each consultant receives scores of specific, detailed coaching sessions per year. The company maintains that its in-depth approach to development is one of the main reasons why people join McKinsey — and why they stay.

McKinsey & Company


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The Drive to defend: I will save my territoryWe all naturally defend ourselves, our property and accomplishments, our family and friends against external threats. In humans, it manifests itself as a quest to create institutions that promote justice, that have clear goals and intentions and that allow people to express their ideas and opinions. An organization that proclaims over rooftop that people are its most valuable assets and in the next instance hands over pink slips will naturally have the competency of its workforce withered away.

Similar is the case of mergers and acquisitions where employees get devastated due to this inherent drive to defend their territory and capriciousness of business cycles. Little wonder that headhunters target employees during such transitions, when they know that people feel vulnerable and at the mercy of managers who are adept at making arbitrary decisions.

What was the last time such a forum existed in our plant? We regularly, tom-tom our achievement in the production front, but what about the big picture? Where is the concerted effort to let the employee know the current steel market scenario, the future possibilities of steel industries as such and his worth in such an eventuality? How many of our employees know the existing project status of SAIL? Are they aware of the political and economic scenario affecting our organization? Do they comprehend the constraints of regulatory bodies like safety and environment? It is all very easy talking about establishing strong communication channels, but at the present moment it seems the only message that we are conveying: wait for your pay slip at the month end and forget everything else. It is our firm conviction that a truly competent employee will never emerge if he is unable to guard his flanks; if he is suspicious of things going around him.

Annex–5 describes how lack of competency to handle external factors led to a series of troubles for two of world’s mammoth organizations.

General Electric (GE) is a classic example of its legendary CEO; Jack Welch’s understanding of this primary human emotion and it successful exploitation. The company has worked hard to make its decision processes very clear. Employees may disagree with a particular outcome, such as the mixing of a pet project, but they are able to understand the rationale behind the decision. In 1995, when Welch implemented “six sigma”, the quality initiative that permits just 3.4 defects per million and thus demands near perfection, there were company wide promotion of the event and the benefits supposed to be accruing from it. The people accepted the challenge because they knew that the decision has been


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the outcome of cross business unit teams and the funding criteria was transparent. The employees’ faith in their leader got reinforced as in 1997; GE became the first company in the world to cross $ 200 billion in market value.Each of these drives described above is independent; they can not be ordered hierarchically or substituted one for another. In spite of numerous competencies mapping and training, that inner urge to excel in an employee will be missing when bonding is not fostered or work seems meaningless or people feel defenseless. While providing even minor facilitating resources can propel people to take quantum jumps.(see Annex–6)Nor is it enough to help people bond as a tight-knit team when they are underpaid or toiling away at deathly boring jobs. There must be quiet introspection by the top brass whether there are avenues open for the employees to ask questions relentlessly and how many of these people still retain the inquisitiveness of children. Paying money handsomely may be a short term success, but ultimately it may degenerate into a phenomenon of diminishing return.

The blooming of competency: success stories at RSPIt is not that our unit does not have enough competent people, or otherwise it would not have 1500 crores profit last financial year. That sparks of creativity still exists, innovations are being made day in and day out and the word ‘motivation’ still exists in the dictionary of our workforce. Here we are not going to talk about big departments for they have got enough platforms for articulation of their success. Rather, our team concentrated on the services, the so-called unsung heroes, to gauge out their contributions and competencies.

When a gas leakage was detected at the goggle valve of the column number PS-24 on the blast furnace main gas line to the holder, it was a cause of concern to the management, it being a potential gas hazard. Being a critical job it needed shut down of the line, which would have compelled for total shut down of the blast furnaces. On this critical juncture the Energy Management Department collective decided to carry out online rectification of the leakage with necessary safety precautions for avoiding any kind of production loss. They made a box and fitted it in the damaged goggle valve main line which ensured that the emitted gasses would not come in contact with the atmosphere. Earlier refractory material was used in the leakage area for reducing the intensity of gas emission. On the other hand the fire brigade was kept ready to take care of any eventuality arising out of welding and cutting of the leaking goggle valve assembly which is extremely fire prone. However the meticulous planning and impeccable implementation resulted in successful completion of the job without any safety hazard.


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It is not always that we remember that there are 212 EOT cranes in different production

units of the plant. From raw materials to finished products the materials are required

to be handled minimum 16-17 times at every stage, be it hot metal, slabs, coils, plates

or pipes the handling has to be safe and prompt. This handling is being done by EOT

cranes. The mechanical and structural maintenance of these equipments is being done

by Crane Maintenance department. The employees have exhibited their creativity

through many unique jobs that they have taken up and completed to perfection. One

such job is the commissioning of two motors in the main hoist drive of hot metal

handling crane number 204 in pit side of SMS-I.

Crane number 204 was previously running with single motor in half speed for the last

four years since one of the motors had become non - functional. The collective took

up the challenging task of replacing the defective gear box assembly with a gear box

in perfect working condition. All the required alignment and commissioning work was

also done. Moreover since the gear box had no drawings, after being dismantled from

the crane the gear box casing drawings were prepared. Also the worn out bearing seats

were replaced apart from replacement of all internals.

The highlight of the job was that entire job was completed in a period of 8 days as per

schedule. The main crane was restored with two motor operations, after a period of four

years; a stand by hot metal crane numbered 223 was also commissioned with ability to

be fully operational. The entire job was completed in a period of three days without

affecting the production momentum.

Similarly, Roll Shop tends to get overshadowed by its big brothers like Plate Mill, Hot

Strip Mill, Cold Rolling Mill and Silicon Steel Mill. But the shop has an important role

to play as it caters to the requirement of Ready Roll Assemblies to all customer mills.

The pressure on perfection and timing is immense on the employee and they have come

up with flying colours every time. This is just one of the illustrations of their sterling

competency. The mechanical maintenance crew of roll shop successfully completed

the challenging job of major reconditioning of in 21 days by using in-house facilities

and resources. The major jobs were carried out during the reconditioning included v

guide and flat guide flowering for better lubrication and smooth movement of carriage,

replacement of old and defective bearings and seals, reconditioning of grinding wheel

spindle and replacement of head stock analog meter with digital panel meter. Besides,

the defective cables were also replaced during the job.


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After the reconditioning the reliability, quality of product and accuracy of the machine

has improved and the desired controlled roll profile and finishing of the surface can be

now achieved. Outsourcing the job could have cost the company Rs 23 lakhs, while the

project was accomplished by the employees by spending only Rs 3 lakhs.

Captive Power Plant (CPP–I) has likewise a multifarious roles to play that include power

and process steam generation. But its continuing stability depended on the healthy

functioning of its Water Treatment Plant. In the Water Treatment Plant, the water

is treated by using highly corrosive substance like hydrochloric acid for use in boilers.

The pipelines which are considered as the life line of the CPP-I operation, used to have

frequent leakages due to the highly corrosive nature of the acid. This created an adverse

impact on the production of the department.

Displaying a high degree of expertise and commitment, a group of about 10 employees

replaced the old pipelines by acid proof CPVC pipe lines by utilizing in house

resources. The replacement was very vital in the present situation, as there was a higher

requirement of make up water for high pressure boilers during monsoon as compared

to other seasons.

We can go on listing achievements like this, but that is not our sole purpose. We

want to emphasize that creativity and competency though can not be taught; they

can certainly be cultivated consciously. Inventive geniuses such as Thomas Edison or

Edwin Land are by definition rare exceptions. For most of us, a creative insight is a

smoldering ember that must be fanned constantly to grow. We strongly believe that

when all the right ingredients are present: sensitivity, will and receptiveness- they can

be nurtured by example, direction and conditioning. In short, they can not be taught,

but can be learned.

And if they can be imbibed, why restrict it to only a group of employees? Why just

create only islands of excellence when possibilities are limitless. Let’s now to take our

organization to new heights of success by making a competency model that believes

not in full stops.

At best it could be semicolons.


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our competency model

When we recount the entire project, there is a strong underlying assumption. That with booster doses of knowledge, skill and attitudinal development, an employee or groups of employees will turn into virtual samurais. In spite of numerous hurdles, they can convert challenges into opportunities and tribulations into triumphs.

That is only half true, as our questionnaire (See Annex–7) and subsequent competency model suggests. An employee is as good or as bad as the value for which his organization stands for. The values are basically convictions that a specific mode of conduct or end state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence. For example, is capital punishment right or wrong? How about racial quotas in hiring- are they right or wrong? If a person likes power, is he correct? Each of these questions can be answered by either ‘yes’ or ‘no’- both equally convincingly- depending on the person’s value system.

Why we started our model from the value system is because we firmly believe they influence attitude and behavior. So many questions arise when we think of our organization, SAIL? Does it bestow powers evenly or there is concentration among a selected cabal? Is it individual or group oriented? Does it show concern for the welfare of its employees and stakeholders or just pay lip service? Are its goals long term or short term? Does it reward people who take risk or is it basically uncertainty avoider? Again, opinion will vary but most certainly a general view regarding the company will be formed that will either propel or repel the employees.

Dell computer learned that Chinese work values differ from US work values when it opened a computer factory in Xiamen, China. Chinese workers view the concept of a job for life. They expect to drink tea and read the papers on the job, and still keep the jobs. Dell China executives had to train employees so that they could understand that their jobs depended on their performance. To instill workers with a sense of ownership managers gave employees stock options and explained to them how their increased productivity would result in higher pay.

Organizational values are of course hard to change as they have been seasoned with layers and layers of socialistic rhetoric. We are still regarded as a company whose sole purpose of existence is to drain the exchequer and let incompetence thrive. But times are changing and so is SAIL. With winds of liberalization blowing for the last decade and half, our company has certainly changed beyond recognition and so is some of its value. What we feel is that the change has to be hastened.


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In our view, what is most important among so many variables and what we feel will fundamentally influence the character of an employee is his knowledge of what the company really stands for, its vision, its core values and its corporate social responsibilities. Hardly anybody, we interviewed, was aware of the vision of SAIL. How effective it would be if the performance of SAIL would be evaluated on the basis of its vision and core values (by an independent auditing agency and displayed for the benefit of the employees) instead of being solely through production centric prism?

Once, the organization is clear regarding its avowed principles like customer satisfaction, ethical standard, proactiveness to change, career opportunities to the employees and fulfillment to corporate social responsibilities, then only the business strategy should flow out of it as demonstrated in our model. If we are going for a massive modernization programme, there should be pre calculation regarding how it is going to affect the stake holders and customers. A systemic approach needs to prevail, not anarchy.

Quite naturally, the HR strategy needs to be firmed up after the company is sure about its future. This includes hiring and retention of manpower along with possible retrenchment or job hopping. Only when an organization is sure about the potential of the newly recruit should it start the competency frame work. When S.M.Walton created and made famous the retail store ‘wal-mart’, he made sure that every employee that he has hired owned the shops as he himself would have liked. This was way back in 1960s when such management terms like ‘competency building or assessment' was not much heard. But he still would go great lengths to teach each staff as to how to greet a customer, how to gauge his moods, his profiles etc. so that each deal is clinched. The employees were called ‘associates’ and offered generous profit sharing plans. But they were never lax as Walton himself would sometimes visit a shop under a disguise and pseudonym to check efficacy of the system.

When we have defined the scope of competency mapping, then in the next step, the frame work is to be established. As discussed else where in the project, developing competency transcends individuals and engrosses the whole organization. It was the lack of competency in environmental and stakeholder management that failed McDonalds and British Petroleum. So many steel projects (including Posco & Mittal) are stuck up in Orissa because of their incompetence in handling issues that are part political and part economic. The profitability of General Motors touched its nadir when a costly 1998 strike came as a bolt from the blue. If the organizations have the courage to look to the future through a binocular and act accordingly, they may well make sure that the lenses are cleaned properly.


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As we come to more micro level like assessing group and individual competencies, we strongly recommend that it has to be a perennial exercise; a continuing quest for excellence. The current model of generation of Annual Training Plan as per departmental requirement is too archaic and conventional. At best, the HRD has to be made a forum for imparting training; the thrust should come from the departments themselves. The most serious lacuna that we found regarding training is in fact ‘the lack of seriousness’. We should not count the number of trainings as a scorekeeper does regarding goals, rather the content and feedback mechanism has to be made robust.

One of the terms that Jack Welch used liberally in his best seller ‘winning’ is mutual symbiosis. In fact, it is a term taken from biology where two organisms help each other to grow. An example of mutual symbiosis is the relationship between Ocellaris clownfish that dwell among the tentacles of Ritteri sea anemones. The territorial fish protects the anemone from anemone-eating fish, and in turn the stinging tentacles of the anemone protect the clownfish from its predators (a special mucus on the clownfish protects it from the stinging tentacles).

“I know very little management terms and even less about what they call strategy” says the all time Management Guru rather modestly. “What I honestly feel is that your foreman is not going to work if he feels that his competency is not properly utilized. The organization has to nurture him like the anemone does to the fish. The fish in turn will give his best to ensure that its protector is well looked after. In case this symbiosis is not established, volumes of data regarding employee motivation and teamwork are just rubbish”.

The gaps of competency, once identified, therefore, has to be bridged with a massive organizational impetus. While the short term training needs can be addressed by need based training, it is the big picture that matters. Right slots are to be identified for employee depending on their competencies and nature of jobs by regular performance appraisal. Simultaneously, their mental and technical expertise needs to be enhanced with suitable motivation, mentoring and team building.

We believe that time has come to transform outlays into outcomes and entrepreneurs into intrapreneurs; persons who focus on innovation and transform ideas into a value adding ventures, operating within the organizational environment. That is where the blue print of captivating the employee’s attention and engagement lies. Our thinking has to go beyond conventional compensations and perks, which are anyway standardized and can not be increased beyond certain limits.


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Instead, the employees should be provided with a larger cause that will enable him or her to own tomorrow’s enterprises. In effect, a platform needs to be created; a standard process should be formalized, wherein an employee, irrespective of his hierarchy in the organization, can share his ideas and own its implementation. He should not be fettered by a structured growth path, but by his inherent or cultivated abilities.

The moment of reckoning has arrived for SAIL, for our own plant RSP and for all of us, to have the ultimate tryst with destiny. We need to create that all encompassing culture of trust and togetherness which will transform an also-ran workforce to a breed of potent Intrapreneurs. It’s a long way up from lethargy to dynamism and time is incredibly short.

We have to act fast, from right now.

For tomorrow may never come.

References

The 8th Habit’ by Stephen R Covey, Franklin Covey

‘Winning’ by Jack Welch

‘What they do not teach you at Harvard Business School’ by Mark H. McCormack Collins

‘Made in Japan’ by Akio Morita, New York: Dutton, 1986

‘An Autobiography’ by Lee Iacocca, Bantam

50 Companies that changed the world , Howard Rothman, , Jaico Book

‘Business Maharajas’ by Gita Piramal, Penguin Books

‘ Dhirubhaism’ by A.G.Krishnamurthy, TMH publication

‘Organizational Behaviour by Stephen P. Robbins, Prentice Hall of India

‘Harvard Business Review’, July 2008

‘Managing Human Resources’, George Bob Lander and Scott Snell,

Thomson Southwestern

The Toyota Way, Jeffery K.Liker, McGraw-Hill.

‘Ignited Minds’ Dr. A.P.J. Abdul Kalam

The Hand Book of Competence Mapping Process by Seema Sanghi (A Division of SAGE publication)

Competency based HRM by Ganesh Shermon (TMH publication)

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Annex- I

saIl- a sWot analysIs The Strengths

Market leadership by volumeCountry’s largest steel producerWide selling networkWide product rangeCaptive mining with sizeable reserveSkilled manpowerLarge infrastructureReasonably modernized key facilitiesGeographically dispersed plant locations

The WeaknessesInconsistency in product quality, processProduct brand valueHigh manpower costProject implementation capabilityNon-core, loss making unitsQuality of raw materialSlow decision making processDependence on external sources for coalDepleting technical knowledge base

The OpportunitiesFavourable domestic demand potential;Low percapita consumption of steelExport potential – highHigh growth segments for long products CR, pipes etc.Potential for reducing cost of production and enhancing operational efficiencyOutsourcing of non critical process (After reaching optimum manpower level)Strategic alliance in coal, mining & power

The ThreatsMarket competitive pressure

– Lower tariff – Cost driven pressure – Demand for high product quality

Stringent environmental normsNon-availability of coking coal/energy sourceTimely clearance of mining projectWaste disposal/environmental concern

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Annex- II

KnoWIng hoW the envIronment rates you: the 360 degree feedbacK

In human resources or industrial/organizational psychology, 360-degree feedback, also known as 'multi-rater feedback', 'multisource feedback', or 'multisource assessment', is an employee development feedback that comes from all around the employee. "360" refers to the 360 degrees in a circle. The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback, where managers are given feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager. The US armed forces first used 360-degree feedback to support development of staff in the 1940s. The system gained momentum slowly, but by the 1990s most HR and OD professionals understood the concept. When the first online 360 degree feedback tools appeared in 1998, it became possible to request feedback from raters anywhere in the world by email, to customize automated systems, and to generate reports for recipients in minutes. In recent years, Internet-based services have become the norm, with a growing menu of useful features: e.g. multi languages, comparative reporting, and aggregate reporting.

The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. The results are also used by some organizations for making promotional or pay decisions, which are sometimes called "360-degree review."

There are some basic advantages with 360 degree feedback system which will be very much relevant to a tradition bound company like SAIL in enhancing the competencies of its workmen.

Individuals get a broader perspective of how they are perceived by others than previously possible.

Increased awareness of and relevance of competencies.

Increased awareness by senior management that they too have development needs.

More reliable feedback to senior managers about their performance.

Gaining acceptance of the principle of multiple stakeholders as a measure of performance.

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Encouraging more open feedback — new insights.

Reinforcing the desired competencies of the business.

Provided a clearer picture to senior management of individual’s real worth

Clarified to employees critical performance aspects.

Opens up feedback and gives people a more rounded view of performance than they had previously.

Identifying key development areas for the individual, a department and the organization as a whole.

Identifying strengths that can be used to the best advantage of the business.

Raised the self-awareness of people managers of how they personally impact upon others — positively and negatively.

Supporting a climate of continuous improvement.

Starting to improve the climate/ morale, as measured through the survey.

Focused agenda for development. Forced line managers to discuss development issues.

Perception of feedback as more valid and objective, leading to acceptance of results and actions required.

Gaps are identified in one's self-perception versus the perception of the manager, peer or direct reports.

Customizing the questions to one's organizational competencies.

In spite of so many positive outcomes, the implementation of 360 degree feed back has not been an unqualified success. Though a huge hit in US (A recent study done in 2006 suggests that an over whelming 90% of fortune 500 companies have joined the "360 degree feed back" bandwagon), Indian corporate are tad bit slow off the block to embrace 360-degree appraisal system. The reasons are not far to seek. Indian business houses are markedly reluctant to embrace the system for fear of tinkering with traditional hierarchical structures. Nevertheless, top-notch companies like wipro, Infosys and Maruti are few of them who have gone 360 degree way and made success of it.

In SAIL, the system has just taken its first tentative steps in the corporate level. It is our firm conviction that, the proper implementation of this magnificent feedback mechanism will bring out those hidden competencies of the employees to the fore.

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Annex-III

competence buIldIng at saIl, rsp

Apart from imparting structured module based training, HRD Centre , RSP has undertaken various other professional development activities like facilitating Performance Improvement Workshops , Identifying Supercritical Skills and organizing training to bridge the gaps , developing Young Managers and Shift in charges , Organizing Seminars , Technical Talks etc.

The jobs at HRD Centre are directed towards:

Providing Training Intervention

Identification of Training Need

Conducting Training Programme

Evaluating the Effectiveness

Encouraging a culture of Learning

Learning Forums

Learning after Duty Hours

Experience Sharing

Creating and Maintaining a Learning Environment

Development of Infrastructure facilities

Maintaining the Library

Housekeeping of the entire building and its surroundings

Some of the recent HR interventions to enhance the competency level of our employees to face the challenges ahead of SAIL are given below:

A. Training Need Identification :

At the base of all competency development through training interventions is identification of training needs. This is carried out through:

i. Training Need Analysis:

With the assistance of training engineers and the support of all HODs , theAnnualTrainingNeedAnalysisiscarriedoutforemployeesofeachdepartmentfromNovembertoJanuarywheretrainingneedsofemployeesareidentifiedandindicatedforallourexistingregularin-housemodules.Anynewrequirementisalsoindicatedhere.

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ii. Competence Mapping:

CompetencyMappinginSAILisausefulprocessforassessingthecompetencylevelsoftheindividualemployeesdeployedonvariousjobsontheshopfloor.Itaimsatidentifyingjobs/positionsandcorrespondingcompetenciesrequiredtobeeffectiveatthatjob/position.CompetencyMappinghelpsinidentifyinggapsintermsofspecificattributeslikeknowledge,skillandattitudeforeachand every employee so that required training is imparted for bridging thesegaps.InDecember2004,acommitteewasconstitutedtodevelopthesysteminSAIL.ThecommitteestandardizedtheassessmentsystemandthemoreorlessuniformmethodologyisbeingadoptedalloverSAIL.Thebroadstepsfollowedincompetencymappingare:

Identification of competencies required for the job.Identification of knowledge and skill level of employees keeping in view the job requirement / competency.Identification of the gaps in competency which can be fulfilled through training.Systematic training efforts to build competencies and bridge the gap in competence.

Such systematic approach to competency mapping facilitated not only assessment of competency levels of existing manpower but also identified required competencies and linked the outcome with training initiatives . At micro level, it helps in :

Identifying individual training need to be addressed in a department / function

Bridging the competency gaps through structured training programmes

Ensuring timely availability of competent workforce

Minimizing surprise element in case of change in technology. In RSP, during 2007-08 competency mapping was carried out in 11 departments for 111 job positions and mapping was carried out for 2317 employees and during 2008-09 competency mapping was carried out for 6 departments for 66 job positions and mapping so far was carried out for 968 employees.

It is observed that in RSP, above steps of competency mapping resulted in the availability of competent manpower through training routes to the major departments because of dynamic nature of competency mapping process.

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iii. Skill Gap Analysis:

This is another very important tool for Training Need Identification wherecriticalandurgentskillsareidentifiedformajordepartmentsatthebeginningofeachyearandthegapsarealsoidentifiedthroughobservation/systematicstudyattheshopfloor.

Duringtheyear2006-07skillgapanalysiswascarriedoutin12departmentsandatotalof41skillswereidentifiedinwhich755employeeswereidentifiedfor training. Training was imparted to 342 employees during 2006-07, 190,employeesduring2007-08and96employeessofarin2008-09.Untilnow,atotalof628employeeshavebeentrainedand34skillshavebeendecriticalised.

iv. Supercritical Skills:

In May 2007, a special effort was made to identify plant wise inventory ofsupercritical skills (e.g. maintenance of hydraulic systems, cable jointer,vibration meter reading, PLC troubleshooting etc.) which needed to bedecriticalisedthroughtraininginterventiononprioritybasis.During2008-09,21suchskillshavebeen identified in10areas, trainingforwhichare beingconductedincollaborationwithlinedepartment.

B. Approach towards Multiskilling

In view of thrust on right sizing of manpower in SAIL, multiskilling has become an integral part of the work system at RSP and consequently multi – skill training has also become a vital part of the training initiative at RSP. It is an effective tool for enhancing employee job performance and job effectiveness in organizations aiming at rightsizing of manpower in SAIL. At present at RSP, multiskill training is conducted through the following training schemes :

Department Specific Programmes: These modules are designed and conducted on priority basis to meet the specific requirement of the department with the help of in house as well as external faculty. During 2007-08 , 438 employees were trained through 15 different department specific modules like operation & maintenance of Nitrogen Compressors for TOP II , Track Maintenance for TRM and Electro-Hydraulics for HSM

Equipment Specific Programmes: These modules are conducted specific to particular equipment which may or may not be common for many other units. During 2007-08, 121 employees trained through 8 different equipment specific modules like CNC Roll Grinding Operation & Programming, Rockwell PLC Programming and Troubleshooting etc.

Unit Training: It is mainly job based and the objective is to bring up the capabilities of operators to an agreed standard of operation. Unit training ensures that current

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operating and maintenance practices which are reviewed and updated continuously for improving the quality parameters and the techno-economic parameters of the department. The employees are trained on the job by an experienced worker of the same department called a Unit Trainer. Apart from the shop based Unit Training, at HRDC two no. of modules on Job Instructional Training and Unit Training Manual Writing Workshop are conducted on regular basis.

Specific Multiskill Modules: To ensure that employees of RSP possess multiple skills to enhance their effectiveness, 6 no of multiskill modules are run at HRDC workshops which are mostly hands on oriented. These modules are :

Welding & Gas Cutting

Fabrication of Pipe bends

Repair & Fitting of electrical machines

Material Handling

Wire Rope Splicing

Machine Tool Maintenance

During 2007-08 , 375 employees were imparted multiskill training in their allied trades.

As per the directive of corporate office , a new scheme of multiskill training has been introduced in all major units of SAIL which says

All employees up to 55yrs of age should preferably covered under this scheme.

Additional skills identified should preferably be in the same work platform as the basic skill.

Scope includes Multiskill Training (Training in two additional trades apart from current basic trades like Welding, Rigging, Gas Cutting etc.) Multi –task Training (Training for doing extra jobs in addition to one’s own job) and Skill Enhancement Training (Skill enlargement and skill enrichment in existing skills e.g. Hydraulics, PLC, Digital Control, Computer Packages, Electronics etc.)

Minimum duration of training should be of 4 Weeks

This scheme has been planned to implement in 5 department of RSP at present (Mech. Shop , SSM , PD , PM and SMS I). A committee has been formed comprising members of these departments, HRDC and Personnel to implement successfully. No. of related trades, No. of Master Trainers and No. of employees to be trained are already identified, manual writing is in progress and the training would commence very soon.

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Annex-IV

nurturIng competencIes: the saga of excellence at Infosys

Infosys Technologies has been such a pioneer in competency enhancement that has been recognized by world over. In fact, it has been assessed at Level 5 on the PCMM model by KPMG Consulting, becoming the first company in the world to be assessed at the optimizing level on the updated version 2.0 of the model. The assessment has been carried out at the Infosys Development Centre in Pune, which employs 1393 Infoscions – – the largest centre outside of the company's headquarters in Bangalore.

The PCMM model, developed by SEI, has five levels of maturity and twenty-two Key Performance Areas (KPAs), across these five levels. The model helps software organizations increase their ability to attract, develop, motivate, organize and retain the talent needed to continuously improve their software development capabilities. It also helps to develop and promote a culture of excellence amongst its people. The PCMM assessment marks another milestone in the company's successful track record of Level 5 assessments, on software CMM and more recently, the CMM integrated.

Infosys has been a trail-blazer in innovative workforce practices: be it in creating wealth for employees through wide distribution of stock options or in creating a fun workplace with various amenities such as a gymnasium, amphitheatre, multi cuisine food courts etc. The company’s ability to retain talent is well above the industry norms. The company's individual training plan for employees ensures near 100% coverage of employees in the performance management process.

Over the past year, Infosys has completed the transition into a role and competency based organization, defining the various career paths available to employees. The company has also launched an internal job posting mechanism and the concept of Personal Development plans, on the basis of 360 degree feedback. Infosys is one of a handful of companies to have invested nearly $ 7 million in a Leadership Institute based in Mysore to instill world-class leadership qualities in its employees.

"Infosys has always believed that people are its greatest assets. We have been widely recognised for our HR practices and have been rated the best employer in India by several studies. The fact that we have been able to go in for a final assessment in Pune with aggressive timelines vindicates the robustness of our HR processes. PCMM is an integral part of our efforts to provide uniform levels of people capability across global locations," said Hema Ravichandar, Senior Vice President and Head HRD.

The electric combination of value system, culture, leadership and innovative people processes has consistently yielded better employee and customer satisfaction levels. It has been perceptibly demonstrated and validated during this intensive assessment.


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Annex: V

develop your external competency or face trouble: the Infamous mclIbel and brItIsh petroleum cases

The McDonald's Restaurants v Morris & Steel, colloquially the McLibel case, was a long-running English court action for libel filed by McDonald's Corporation against environmental activists Helen Steel and David Morris (often referred to as "The McLibel Two") over a pamphlet critical of the company. The original case, considered by some scholars to be a strategic lawsuit against public participation (SLAPP), lasted seven years, making it the longest-running court action in english history.

Beginning in 1986, "London Greenpeace", a small environmental campaigning group distributed a pamphlet entitled what’s wrong with McDonald’s: Everything they don’t want you to know. This publication made a number of allegations against McDonald's that include wasting vast quantities of grain and water; destroying rain forests with poisons and colonial invasions; exploiting children with advertising and poisoning customers with contaminated meat. Though a number of the defendants later withdrew fearing retribution from a behemoth like McDonald's, two activists, Helen Steel and David Morris dogged fought on, in spite of having very limited income. The most surprising thing was that such a huge organization had never studied the potential environmental troubles that its products could face and therefore unable to comprehend the course of action. The case dragged on till 2005 and the judgment was mostly in favour of the Steel and Morris pair. The case cost McDonald's close to a billion dollar as part of legal fee, compensation and lost business. Though the company never admitted it, the advertisement of children by McDonald's stopped after that. It also concentrated on staple diet preferred by the locality in which it operates and not primarily beef or pork. As of Steel and Morris, they became instant celebrities, apart from huge compensation and royalty from feature films made on the case.

Another company that faced huge ignominy due to lack of competency in handling environmental issues was British Petroleum. Till 2000, it was one of the most respected oil exploration and refinery company in the world. But a series of unfortunate incidents like spillage of oil in Prudhoe Bay, Alaska and pollution of Lake Michigan with ammonia and sludge besmirched its reputation. Instead of correcting the issues, the company even refused to acknowledge them till media and public forced it to eat humble pie. Accused of fooling the world, it had to shutdown its operation in several areas. The company that once proudly proclaimed its abbreviation is actually “Beyond Petroleum”, faced several lawsuits and named one of the “ ten worst corporations” in both 2001 and 2005.


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Annex–VI

enhancIng competencIes of vIllage poor: the success story of grameen banK

The Grameen Bank is a microfinance organization and community development bank started in Bangladesh that makes small loans (known as micro credit or "grameencredit") to the impoverished without requiring collateral. The word "Grameen", derived from the word "gram" or "village", means "of the village". The system of this bank is based on the idea that the poor have skills that are under-utilized. A group-based credit approach is applied which utilizes the peer-pressure within the group to ensure the borrowers follow through and use caution in conducting their financial affairs with strict discipline, ensuring repayment eventually and allowing the borrowers to develop good credit standing. The bank also accepts deposits, provides other services, and runs several development-oriented businesses including fabric, telephone and energy companies. Another distinctive feature of the bank's credit program is that a significant majority of its borrowers are women.The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, a fulbright scholar and Professor at University of Chittagong, launched a research project to examine the possibility of designing a credit delivery system to provide banking services targeted to the rural poor. In October 1983, the Grameen Bank Project was transformed into an independent bank by government legislation. The organization and its founder, Muhammad Yunus, were jointly awarded the Nobel Peace Prize in 2006. Among many different applications of micro credit by the bank, one is the Village Phone Program, through which women entrepreneurs can start a business providing wireless payphone service in rural areas of Bangladesh. This program earned the bank the 2004 Petersburg Prize worth of EUR 100,000/-, for its contribution of technology to development. In 2003, Grameen Bank started a new program, different from its traditional group-based lending, exclusively targeted to the beggars in Bangladesh. This program is focused on distributing small loans to beggars. The existing rules of banking are not applied, the loans are completely interest-free, the repayment period can be arbitrarily long, for example, a beggar taking a small loan of around 100 taka (about US $1.50) can pay only 2.00 taka (about 3.4 US cents) per week and furthermore the borrower is covered under life insurance free of cost.The bank does not force borrowers to give up begging; rather it encourages them to use the loans for generating income by selling low-priced items. Based on a paper presented in the Global Micro Credit Summit in 2006 by one of the bank's managers, as of May 2006, around 73,000 beggars have taken loans of about Tk 58.32 million (approx. USD 833,150) and repaid Tk. 34.78 million (about USD 496,900).


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Annex-VII

Question Survey - I

QuestIonnaIre on need analysIs for competence development

Dear Madam/ Sir,

The undersigned has designed the following questionnaire for making a survey as a part of a research paper titled “Building Competencies for Meeting the Challenges of Growth” for the SAIL Chairman’s Trophy for Young Managers. For each of the following questions rate your team/ individuals on a scale of 1-5, where 5 = Almost always, 4 = Mostly, 3 = Sometime, 2= Rarely, 1 = Almost Never. Please tick your rating which best represents the situation in Rourkela Steel plant

Ms C. Das, Sr. Mgr. D. Sathpathy, Sr. Mgr. J. Sarkar, Mgr.

1. Awareness of the customer feedback of our product and services is available to all the employees of the organization

1 2 3 4 5

2. Periodical skill and knowledge gap analysis of our workforce is done

1 2 3 4 5

3. The employees are confident in their respective work areas with no errors

1 2 3 4 5

4. We have specialized teams at our workplace who are expert in their field of work

1 2 3 4 5

5. We follow all standardization procedures at our department and maintain records

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6. We incorporate our employees skill gap in the training need format

1 2 3 4 5

7. We benefit from our standard training programmes that we attend

1 2 3 4 5

8. We benefit immensely from Performance Improvement Workshops

1 2 3 4 5

9. We have a multi-skilled workforce

1 2 3 4 5

10. We review our processes and services as per our customer feedback

1 2 3 4 5

Target Population: Front line executives of both works & non-works areas


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Question Survey – IIQuestionnaire on Managerial Competencies Dear Madam/ Sir, The undersigned has designed the following questionnaire for making a survey as a part of a research paper titled “Building Competencies for Meeting the Challenges of Growth” for the SAIL Chairman’s Trophy for Young Managers. For each of the following questions rate your team/ individuals tick on the appropriate answer.

Ms C.Das, Sr. Mgr. D. Sathpathy, Sr. Mgr. J. Sarkar, Mgr.

Fully Agree Partly Agree

Neither agree

Nor disagree

Partialy disagree

Fully disagree

1. We are dependent on our group leader for all decisions

2. We get clear instruction from our seniors at beginning of the shift

3. We feel hesitant to carry out the instructions independently

4. We have regular interactions in the shop floor about developmental and safety aspects

5. We do not have any shift change delay in our department

6. When I face some problem I approach my senior

7. We are cost conscious and aware of our techno economics

8. We are unable to take decisions while handling a surprise breakdown

9. I/we are willing to learn/acquire new skills as and when required

10. Our team leader passes on the entire blame if our team fails

11. Whenever a new machine is installed the technical know how is explained to us while commissioning

12. Our seniors are indifferent if creative jobs are done independently

13. Our training needs gets addressed at regular intervals

Target Population: non-executives of both works & non-works areas


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Question Survey - III

Questionnaire on Competency based HR Themes for attribute identification for development of Competency model Dear Madam/ Sir,

The undersigned has designed the following questionnaire for making a survey as a part of a research paper titled “Building Competencies for Meeting the Challenges of Growth” for the SAIL Chairman’s Trophy for Young Managers. For each of the following questions rate your team/ individuals tick on the appropriate answer. Rate on a scale of 1-5.

How do you rate the following attributes for the development of Competency ?

Sl. No.

Attributes Very Essential

Essential Required Orna-mental

Almost not

required

1. Talent Management

2. Motivation

3. HR Interventions

4. Facilities, Administration & Cost

5. Organizational Communication

6. Building Employee Relations

7. Recruitment/Hiring/Selection

8. Training & Development

9. Compensation & Benefits

10. Leadership Building

11. Performance Management

12. Succession Planning

13. Managing Change

14. Managing Knowledge

15. Autonomy of job

16. Company’s concern for maintaining work/ life balance

17. Cross-Industry Mergers and Acquisitions

18. Creativity at work

Target Population: executives & non-executives of both works & non-works areas


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I . Questionnaire on Need Analysis for Competence Development

Survey Findings: Sample Size: 75

Sl. No.

Statement Almost always

Mostly Sometime Rarely Almost never

01. Awareness of the customer feedback of our product and services is inadequate to all the employees of the organization

25% 22% 26% 15% 12%

02. Periodical skill and knowledge gap analysis of our workforce is rare

72% 25% 2% -- 1%

03. The employees are confident in their respective work areas with no errors

19% 27% 29% 14% 11%

04. We have specialized teams at our workplace who are expert in their field of work

25% 23% 17% 25% 10%

05. We follow all standardization procedures at our department and maintain records

5% 27% 16% 18% 23%

06. Skill/knowledge gap of our employees is incorporated rarely in training need

55% 31% 9% 2% 3%

07. We benefit from our standard training programmes that we attend

33% 25% 16% 14% 12%

08. We benefit immensely from PIWs

26% 21% 23% 17% 13%

09. We have a multiskilled workforce

29% 33% 21% 11% 6%

10. We review our processes and services as per our customer feedback

16% 18% 13% 32% 21%


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This particular survey was conducted for the executives (shift in charges, line managers and middle management groups). We tried to judge the parameters responsible for competency development like awareness, customer satisfaction, expertise, training need assessment etc.

The most astonishing factor was evident in Q2 and Q6 which states that gap in skill and knowledge is not identified properly which in turn fails to fulfill the training objective.

In Q2 72% of the total respondents feel that skill and knowledge gap analysis of our existing workforce is not properly done.

In Q6 55 % of the entire people feel that even if the skill & knowledge gap is identified, it does not become a part of our existing training management system.

In summary, our primary conclusion is to emphasize on competency gap analysis and then design and conduct need based structured module to bridge the gap.

Conclusion

Q2 : Periodical skill & knowledge gap analysis of our employees is rare

Q6 : Skill/nowledge gap of our employees is incorporated rarely in training need


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II. Survey on Questionnaire on Managerial CompetenciesSurvey Findings : Sample Size : 56 (non-executives )

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disagree

Partially disagree

Fully disagree

1. We are dependent on our group leader for all decisions

23% 27% 18% 18% 14%

2. We get clear instruction from our seniors at beginning of the shift

12% 62% 8% 13% 5%

3. We feel hesitant to carry out the instructions independently

61% 17% 8% 9% 5%

4. We have regular interactions in the shop floor about developmental and safety aspects

13% 18% 20% 22% 27%

5. We do not have any shift change delay in our department

27% 22% 27% 13% 11%

6. When I face some problem I approach my senior

21% 33% 23% 21% 2%

7. We are cost conscious and aware of our techno economics

13% 33% 13% 20% 21%

8. We are unable to take decisions while handling a surprise breakdown

62% 28% 4% 3% 3%

9. I/we are willing to learn/acquire new skills as and when required

21% 22% 43% 12% 2%

10. Our team leader passes on the entire blame if our team fails

2% 5% 33% 37% 23%

11. Whenever a new machine is installed the technical knowhow is explained to us while commissioning

12% 15% 33% 22% 18%

12. Our seniors are indifferent if creative jobs are done independently

53% 21% 16% 2% 8%

13. Our training needs gets addressed at regular intervals

18% 12% 25% 22% 25%


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Conclusion

Q3 :We feel hesitant to carry out instructions independently

Q8 :We are unable to take decisions while handling surprise breakdowns

Q12 : Our seniors are indifferent if creative jobs are done independently

This particular survey was done to identify the factors responsible for developing the managerial competencies like business knowledge, analytical skills, proactivity, decision making skills etc. It was stratling to note that our employees are not empowered (Q3) , they are not exposed to emergency handling (Q8) and their managerial qualities are not nurtured properly (Q12).

We therefore propose to build and implement a competency model to develop the key competency characteristics of our workforce as they are our primary resource.


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III : Survey on Questionnaire on Competency based HR Themes for attribute identification for development of Competency model How do you rate the following attributes for development of competency?

Sl. No.

Attributes Very Essential

Essential Required Ornamental Almost not req uired

1. Talent Management 52% 36% 6% 4% 2%

2. Motivation 45% 23% 12% 6% 14%

3. HR Interventions 28% 15% 19% 15% 13%

4. Facilities, Administration & Cost 20% 21% 13% 35% 11%

5. Organizational Communication 45% 27% 9% 10% 9%

6. Building Employee Relations 19% 12% 26% 23% 20%

7. Recruitment/Hiring/Selection 22% 20% 18% 12% 25%

8. Training & Development 49% 30% 12% 6% 3%

9. Compensation & Benefits 22% 18% 20% 27% 13%

10. Leadership Building 42% 36% 6% 9% 7%

11. Performance Management 59% 21% 8% 9% 3%

12. Succession Planning 15% 28% 26% 22% 9%

13. Managing Change 21% 17% 23% 28% 11%

14. Managing Knowledge 26% 21% 17% 19% 17%

15. Autonomy of job 45% 42% 8% 6% 3%

16. Company’s concern for maintaining work/ life balance

12% 26% 31% 18% 13%

17. Cross-Industry Mergers and Acquisitions

24% 15% 23% 23% 15%

18. Creativity at work 29% 21% 24% 16% 10%


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ConclusionQ1:Talent Management

Q5: Organisational Communication

Q10:Leadership Building

Q15 : Autonomy of Job

Q2: Motivation

Q8:Trg. & Development

Q11 : Performance Mgmt.


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Above survey was carried out for executives as well as non-executives of different works and non-works department with a sample size of 122 to identify the necessary attributes of Competency Model , the implementation of which would result in meeting the challenges of growth at all levels. It was found out that following factors are essential while addressing the competency development of our employees :

Talent Management

Motivation

Organisational Communication

Training & Development

Leadership Building

Autonomy of Job

Performance Management

In our proposed Competency Model we have incorporated above factors.

Some learning points from our survey:In the course of our survey, we not only covered almost all the production units, but some major services units as well. What we found out was both a mixture of pleasure and concern. We were happy to learn that the creative stimulus is still alive in most of our employees and they are ready to demonstrate it that could take RSP to new heights of success. Simultaneously, our group was equally aghast at how much we could gain had the latent potency been fully tapped. There is a crying need of recognition, of

contemporary training and a subtle reassurance of well being of the organization. It is

not the fear of tough job that is proving to a hindrance to competency. Rather what is

missing is the Aha! Factor, the innate strength that distinguishes champions from has-

beens.

Perhaps time has come to recognize our unsung heroes. We bid sayonara with a quote from the all time great management thinker Henry Van Dyke;

“Use whatever talent you possess, the woods would be very silent if no birds sang except those that sang best”

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special jury awardB K Giri, Sr. Manager, BOM S K Sony, Sr. Manager, BOM

R K Jena, Manager, BOM

raw Materials division

iNTrOducTiON:

With exponential growth in the global economy many new challenges

are emerging in the corporate world. The explosion of investment in the industry world wide demands high levels of competencies to reap fruitful benefits. In spite of many all round reforms, the industry is unable to meet the extremely large numbers and complex variety of challenges that have cropped up in view of the sky rocketing targets, declining profitability

due to rising cost of inputs, shortage of skilled manpower and other resources This emerging scenario forces the industry to develop a continuum strategy to maneuver the five engines of growth viz Market, Capital, Technology, Organisation and most importantly the people - they are the task masters who control the other engines. Thus

the need of the hour is to buildup the levels of competencies across the entire cross-section of the organisation so as to meet these challenges and fulfill the goals and vision of the industry.

It can be easily understood from this graph that the growth target for SAIL has suddenly shot up, while the manpower is taking a deep downslide. Thus the urgent need of the hour is to increase the manpower productivity to bridge the ever widening gap. This can only be possible by improving upon the existing competencies and learning new ones.

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cHalleNGes BeFOre THe iNdusTry

In this cut-throat competitive business environment any industry is subjected to the five forces which try to retard the growth and profitability. According to Porter, these are:

a) Bargainingpowerofthebuyers

b) Bargainingpowerofthesuppliers

c) Threatofnewentrants

d) Threatofnewcheapersubstitutes

e) Rivalryamongtheexistingcompetitors.

In fact, the above entities are just like the centrifugal force, which always try to throw out the organisation from their business, unless a strong binding force is available to keep these destabilizing forces at bay. What is this binding force? To answer this let us delve deeper into the people and process aspects of an industry.

The Binding Force – Competent PeopleThe saying of a famous entrepreneur, Henry Ford, comes to our mind; “People, not money, not building, not tools: Competent people are our most valuable resource - the weapon, - the central binding force. We need the right ones, the dedicated ones with drive and good instincts. We want them as Supervisors, our Managers, our Division Heads, Organizers, and Visionaries who keep our business in top form, efficient now and prepared for future. And we want competence, dedication and drive in our people. Men and women who routinely get the job right and on time.”

In fact, the most formidable challenge to growth of any industry is the acute shortage of competent manpower to take up the challenges of change management which is a vital element of growth. Many new expansion plans are launched without meticulous planning particularly in respect of manpower deployment, implementation schedules, training of existing work force, and proper integration of available competitive strengths at all levels. Even if, manpower is available they may not have the required technical and functional knowledge and skills essential for successful implementation of different building blocks of the project. The Employers’ Federation of India (EFI) foresees a “severe shortage of competent manpower a few years ahead” which would “seriously retard” growth if left unaddressed. For enterprises like SAIL, shortage of competent manpower will have a very adverse impact on its future performance, as the workforce will be plunging down in the years to come and on the other hand the targets will keep on going up in leaps and bounds.

From the inception of the free market system, organisations have attempted to obtain a sustainable competitive advantage. In search for this “Holy Grail”, organisations have resorted to a variety of approaches such as price differentiation, market differentiation,

BARGAININGPOWER OF

BUYERS

THREAT OFNEW ENTRANTS

BARGAININGPOWER OFSUPPLIERS

THREAT OFNEW CHEAPERSUBSTITUTES

RIVALARY AMONGEXISTING

COMPETITORS

PROFITABILITY


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product differentiation and the like. All of these have only provided short term success with very little long term benefits. Now, people, and more specifically, a competent employee resource base has proven to be the only truly sustainable source of competitive advantage in today’s business world.

The war for competent people will persist. There are three fundamental forces fueling the war for competence/talent.

(a) Theirreversibleshiftfromindustrialagetoinformationage.

(b)Theintensifyingdemandforhighcalibermanagerialtalent.

(c) Thegrowingpropensityforpeopletoswitchfromonecompanytoother.

Since, these forces show no sign of abating, our team believes that the war for managerial talent will be defining the future of business landscape for many years to come.

So, in this project we intend to know the aspects of Competence, the existing levels of competence, the required level, analysis of the gap and means & methods to bridge this gap, so as to achieve the desired growth and profitability of our organisation.

cOMpeTeNcies – aN Overview

Competencies are a cluster of related knowledge, skill, attitude, behaviour, motive and other personal characteristics (OPC) that are essential for successful job performance that differentiates the best from the rest i.e. the superior performers from the normal workers.

To identify the various competencies our group decided to conduct a general survey (details enclosed as Annexure I) in which the respondents were asked to suggest the required competencies which could be helpful to meet the challenges of growth and the level of awareness about the prevalence of competency culture in the organisation. Based of our studies we have broadly categorized the competencies suggested by the surveyees into two types i.e. core competencies and role specific competencies.


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Core Competency that is required for all positions in the organisation

(i) Adaptability:Personalwillingnessandability toeffectivelyworkinandadapttochanges. Being adaptable means each of us needs to look at different ways ofdoingthings,learnnewapproachesandtobeabletoshiftprioritiestomeetnewpriorities.

(ii) ClientFocus:Understanding andmeetingor exceeding client’sneed.Clients arethosegrouporindividualinternal/externalwhousetheorganisation’sproductsorservices.

(iii) Communication:Clearlyconveyingandreceivingmessagestomeettheneedofall.Thisinvolves,listening,interpreting,formulatinganddeliveringverbal,non-verbalwrittenand/orelectronicmessages.

(iv) Organisational awareness: Ability to understand the structure, culture andunderlyingissuesoftheorganisation.

(v) Problemsolvingandjudgement:Abilitytoassessoptionsandimplicationsinordertoidentifyasolution.

(vi) Resultorientation:Abilitytoknowwhatresultsisimportant,focusingresourcetoachievetheminalignmentwiththeorganisationalgoals.

(vii) Teamwork:Abilitytoworkco-operatively,productivelyandcollaboratewithotherstoachievedesiredresults.

Role specific competencies are applicable to certain roles within the organisation which are critical for some positions:

(i) Developingother:Adesire towork fordeveloping the long termcapabilitiesofothers.

(ii) Impact&Influence:Abilitytopersuade,convince&influenceothersforachievingthedesiredgoal.

(iii) Innovation:Usingoriginalandcreative thinkingtomake improvementsand/ordevelopandinitiatenewapproaches.

(iv) Leadership:Abilitytopositivelyinfluencepeopleandevents.

(v) RelationshipBuilding:Abilitytodevelopandmaintainwin-winrelationshipandpartnership.

(vi) Resource Management: Ability to effectively manage internal and/or externalresourcestoachieveorganisationalgoals.

(vii) SelfManagement:Ability to reflectonpast experience inorder tomanageandcontinuallyimproveone’sownperformance.


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(viii) Strategic thinking: Ability to have a long term view assessing options andimplications.

Benefits of building and developing competencies:There are three obvious benefits of building competencies:

Itenablesustoperformahigherleveltaskatalowerleveloftheorganisation.

Itgivesanopportunitytodoourtaskinanimprovedwayi.e.itenablesourpeopletodothingsdifferentlythansimplydoingit.

Itimprovesqualityatanoptimumcost.

BUILDING COMPETENCIESWe shall now discuss different approaches that can be utilised effectively for building the required level of competencies in our organisation.

Competency mappingSuccessful performance of an individual in any task has taken a significant position for the success of any organisation. Competency mapping assessment is an important tool for determining the following:

Theexistingcompetencelevelofanindividualorgroup

Therequiredcompetencyforaparticularposition

Thecompetencegap

Thepossiblemethodsofbridgingthisgap

This helps the organisation to use it for job description, training and development, performance management and succession planning.

The standard methodology of competency mapping is shown in the figure below. It suggests that we must identify key functional areas or work platforms where the employees perform their jobs. The next step is to identify the required competencies to successfully execute those jobs. Then design the test questions/ interview so as to gauge their on-job skills and knowledge. Thereafter collate and prepare the capability matrix and then judge whether he/she is competent or not. If yes then utilize the person and if not then arrange customized training/coaching and then re-evaluate. This is an on-going cycle in which the competencies are renewed continuously.

Competency mapping examines two areas like emotional intelligence and strengths of the individuals in areas like leadership, team-work and decision making. Organisations employ competency mapping assessment to understand the employee strengths that could be utilised effectively for growth of the individual as well as the organisation. Further, organisations study the combination of strengths of workers to produce the most

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effective team and the highest quality of work. Competency mapping and evaluation has achieved supreme importance in organisations in terms of human resource development and practices accustomed with organisational growth and objectives and capitalising on the utilisation of human potential.

What is the Primary issue?An employee may be skilled and knowledgeable but until he or she effectively applies the skill and knowledge on the assigned tasks, the employee is considered to be incompetent. Competency mapping means actual application of knowledge, skill and

STANDARD METHODOLOGY OF COMPETENCY MAPPING

Identify Key FunctionalAreas/Work Platform

Identify requiredCompetencies

DesignTest Questions

Interviews

Evaluate Skill byon-the-job

Performance

EvaluateKnowledgeTest results

Collate ResultPrepare

Capability Matrix

Arrangecustomized

training

WhetherCompetent

OKUTILIZE

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Attitude (KSA) in carrying out assigned tasks. The primary issue here is identifying the key competencies for an organisation or a job in particular. Competencies for management would include analytical skills, planning, consulting, communicating, managing and developing people etc.

According to Daniel Katz, competency is classified under three zones which were later expanded to the following four:-

Technical or functional: Knowledge, skill and attitudes associated with technology or functional expertise to perform the job.Managerial: Knowledge, skill and attitude required to perform the functions of management like planning, organising and directing etc..Human: Knowledge, skill and attitude required to manage and develop human resources.Conceptual: Knowledge needed to visualise the invisible at abstract levels and plan for the future.

These four zones encompasses all the core and role specific competencies.The problems in competency mapping arise when there is no scope for an employee to work in a field that would enable the best use of his or her competencies. If the organisation does not provide the platform for employees to work based on their competencies, the assessment would be useless and waste of time and effort.

Right skills, right job and the right person to do the job should be matched. If the individual needs a challenging environment where one can learn new things, competency mapping shows the right direction. The major reason for attrition is having dissatisfied employees to perform the task that does not suit their competencies. The organisation needs to:

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FOUR ZONE OF COMPETENCIES

FunctionalExpertise

TECHNICAL MANAGERIAL

CONCEPTUAL

Futureplanning

HUMAN

HRD

Planning,Organizing,

Directing

LEVELS OF COMPETENCIES & THEIR INTERCONNECTION

Corporate Goals

CompetenciesRequirement

CompetenciesCatalogue

CompetenciesMapping& Review

MIDDLEMANAGEMENT

Identification ofJob requirement

Identification ofCompetencies

Actual CompetenciesJob Performance

Gap AnalysisAssessmentof Learning

DevelopmentMeasures

Training & Development Competency Gaps

FRONT LINEMANAGEMENT

STRATEGIC

OPERATIONAL


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Identify the skills required for the job with a clear set of roles and responsibilities.

Assessing the performance of employees and future need of skills required for the same job.

Assessment of compensation and other aspects like designation, roles etc., of a particular job.

Selecting the ideal candidates based on competency-based interviewing methods.

Feedback SystemThe time tested method to measure competency is self appraisal method. This helps the employees to rate themselves in the organisational conditions. The next method could be 360 degree feedback system. Here the peers, seniors, juniors and the person himself give the feedback. Identification and assessment of competencies is considered more effective by the 360 degree feedback system as also found from the outcome of the first tier survey. There are scientific methods of assessing attitudes, and qualities etc., of employees. Psychometric instruments are useful in assessing the intellectual, managerial, social and emotional competencies of the employees.

Ample PlanningCompetency mapping requires ample planning from the organisation. Identifying weaknesses of the individual and building them to strengths is the main motive. The individual could be deployed positively in areas where the current strengths can be gainfully utilised. Competency mapping is one of the most powerful self-marketing tools available for both individual professionals and organisations of the present day. A well managed firm should have a clear organisational structure with well defined roles in terms and have mapped the competencies required for each role. High performing workplaces achieve the desired objectives, including attracting competent employees, besides being innovative and productive. Attractive workplaces include those that promote good work-life balance, have good health and safety systems, balance the interests of employers and employees, encourage career development, and most importantly have a large proportion of the staff with high job satisfaction.

Creative WorkplaceIn a rigid labour market, workplaces that are not attractive may have difficulty in recruiting and retaining good staff. Creative workplaces achieve superior output and provide greater opportunity for innovation. Utilising the individuals in the appropriate roles matching their competencies would greatly enhance the performance of individuals.There is a common misconception that a person’s skill is his talent. Skills, however, are not talents. Talents, on the other hand, require skills. People can have skills and knowledge in areas where their talents do not lie. If they have a job that requires their skills but not their talents, organisations will never be able tap into their passion or voice.

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They will go through the motions, but this needs external supervision and motivation. If you can hire people whose passion intersects with the job, they would not require any supervision at all. They will manage themselves better than anyone could ever manage them. Their fire comes from within, not from outside. Their motivation is internal, not external.

BUILDING COMPETENCIES By CrEATING A CULTUrE OF UNLEArNING & rELEArNINGIn the ever changing business perspective the only permanent thing is “change”. The traditional way of incorporating new information was to learn, learn more, and then learn even more, but this theory no longer holds true. Rather, it creates a mental blockage and information overload. As one thinker has very rightly quoted "unfortunately, perspective (what we believe) is a fun-house mirror; it distorts and discolors everything we see, learn, and experience. We tend to fall in love with the things that we think are true. ...We clutter our mind with so much old stuff that there is no room for anything new." Thus, what's necessary today is to approach one's work and life from the perspective of learning, unlearning, and relearning. This makes every individual of the organization to continuously upgrade and renew his/her knowledge base and gives them a propelling power to know the new & renew.

It directs our thoughtful attention to extraordinary occurrences in the flow of work, continually accessing if novel situations will enhance or retard organizational growth. It reminds us the following things in these unsettling moments:

Am I (are we) doing therightthingnow?Am I (are we) doing it inthebestway?Towhomdoesthismatter?

And it also helps us to understand and decide the following:

Whattasksmustnowbedone?How?Withwhom?Why?

The skill, dexterity and ability to unlearn the learnt lessons that are irrelevant to cope with the speed of change are the only means of survival. Long established market

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leaders respond to the challenging market environment by developing more complex designs that can not be easily duplicated. They keep their intellectual creativity as trade secrets instead of applying for patents, in order to achieve the same lucrative role as Microsoft or Intel in the PC industry have done. Such organizations have developed the capability to answer the questions raised above more effectively.

As the figure shows, a culture of unlearning and relearning will lead to the formation of a learning organisation which will in turn will develop and maintain a constantly updated technical know-how. This updated knowledge base is the only tool to solve the problem of technological obsolescence, thereby leading to very high productivity and profitability, quick response to the varying market requirements and best utilization of available resources. An organization which is successful in acquiring these elements will obviously have a cutting edge over its competitors.

Thus, this is the right time for SAIL to take advantage of this updated technical knowledge base and leverage this strength to gain dominance in the steel industry. Until recently, SAIL has managed to succeed based upon the individual knowledge of a handful of strategically positioned individuals, but now to maintain market leadership it needs to work on collaborative knowledge sharing across all functional levels and building the necessary competencies at all fronts.

COMPETENCE BASED MANAGEMENT TraININGInvesting in the development of managerial capability is an essential ingredient for business success, and Competence-Based Management Training (CBMT) is one route that organisations are taking now-a-days. Let us examines what CBMT is, how organisations are using it and why? What impact has it had on their business and on their traditional approaches to management development?

Many organisations have switched from ‘conventional’ training programmes to Competence-Based Management Training (CBMT), to explore the organisations’ practices for linking management competencies to training programmes. This can be used to examine the mechanisms for assessing competence requirements & shortfalls and to gauge the effectiveness of adopting a competence-based management training approach.

The use of competencies is increasing worldwide. The background of CBMT users is no different from that of other competence users, except that they have seen an increased demand for their products over the last two years. Compared to other competence users, CBMT users have a higher proportion of standardised training programmes. They train for longer durations and have increased their training for senior and middle managers. The most favoured methods of delivering CBMT include the use of coaching, and modular courses.


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Targeting for Business SuccessCompetence-based approaches to management training and development are predominantly used for linking competencies to management training courses with an aim to strengthen the link between skills and business needs. CBMT users also assist in identifying training needs and designing customised training programmes. Approaches adopted to link competencies to management training depend largely upon organisational priorities. Whilst approaches varied, the overall trends were for CBMT to be business driven, targeted to immediate job needs with a focus on development and, where possible, externally validated.

Three main models: a ‘top down’ approach where existing training courses are regrouped under competence headings expressed as business objectives; a ‘functional’ approach which integrates training courses under generic and functional competencies, and a ‘modular’ approach which matches each competence heading with a specific training module.

Assessing and DevelopingAs organisations increasingly link their competence frameworks to their management training, they are doing so on the premise that they are able to assess and develop the competencies required by the business. However, most competence users still rely on traditional assessment methods such as performance appraisal. More recent developments such as the use of personal development plans also place ownership on the individual for development. Increasingly, therefore, individuals are key to the success of assessing and developing competencies.

Equipping line managers to assess competencies should help them to translate competence headings to departmental requirements, use more effective assessment methods and value diversity. The increased contribution of line managers in the development of competencies should be supported by providing them with adequate training in coaching skills. Similarly, encouraging individual ownership calls for provision of tools for self assessment, training on the evidence to be collected, and adaptation of materials to individual learning styles.

Benefits of Competence Based Management TrainingCBMT users tend to evaluate the effectiveness of their approach more readily than other competence users. CBMT brings ‘added value’ to the business by improving the performance of managers and employee motivation. Whilst linking competencies to management training requires investment and effort, this is fully justifiable. CBMT users feel the use of competencies to be more cost effective, to contribute to changing the culture of the organisation and also, to customer satisfaction and business profitability.


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BUILDING COMPETENCIES By PrOMOTING ENTrEPrENEUrShIP IN ThE OrGANISATIONEntrepreneurship is the ability to build and create something from practically nothing. The creation of value by people and organizations working together, through the application of creativity, drive and a willingness to take what might commonly be seen as risks. It is initiating, doing, achieving, and building an enterprise or organisation. It is the knack of sensing an opportunity where others see chaos, contradiction and confusion.

In this rapidly changing business environment the key to success it entrepreneurship, without which it will would be virtually impossible to survive in this ever growing global market. Promoting an entrepreneurial culture can be seen as one of the best means to build competency which can be effectively utilised to meet the challenges of growth. As companies grow, they risk becoming victims of their own success. Structures and rules spring up, and the drive and energy that underpinned their growth can become inhibited by excessive bureaucracy.

In order to succeed in fast-moving markets, many corporations are trying to reinvent themselves by shifting from highly structured, pyramidal organisation to more flexible horizontal hierarchy that give individuals more autonomy which creates empowerment among the employees. This makes people realize that they are valued. Thus giving more autonomy is the key to creation of this culture which can develop and sustain an environment of balanced freedom where innovative persons have the liberty to act upon their thoughts and implement their plans which might be otherwise seen as something beyond the normal routine work.

SECOND TIEr OF ThE SUrVEyAfter the general survey our group felt the need for an assessment of gauging the level of competencies in our organisation wherein the respondent were asked to assess themselves (for their individual endevour to acquire and demonstrate the respective competencies at work) and also for the organisation (representing process, systems and structure that supports/enable people to demonstrate those behaviours). We received feedback from 75 executives (E-4 & above) of RMD mines in this survey. They were asked to rate in a scale of zero to hundred. The assessment sheet includes behavioural aspect of core and role specific competencies. The detailed survey analysis and findings of both tiers of surveys are enclosed as Annexure I.


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recOMMeNdaTiONs & suGGesTiONs

Now, based on the survey analysis and findings our group proposes a competence building model. In this model we have identified six key elements for building the competency and making it a continuum process. The model is self explanatory with its elements as enumerated below:

PLAN: Anticipate talent needs through articulated strategy.

SELECT: Identify high performers with potential to perform person wise and position wise based on the competence and not only on qualification.

DEVELOP: Augment the competencies of high-potential employees by CBMT.

PROMOTE: Create a pool of ready managerial talent.

REPLACE: Manage effective succession in leadership positions.

And most important is to RETAIN the high performers with drive and instinct – which is the most compelling need of the hour.

suGGesTiONs

Mutli-skillingUntil recently, dividing work into controllable sub-lots was viewed as a tool to enhance the efficiency of an individual by repetitive application of a single skill which produced experts with a narrow field of vision who worked quite well in their own job but failed miserably when the need arose to take up someone else’s work. Especially, in the


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operators and maintenance group this is very prominent. Now that SAIL has gone on in a big way towards rationalizing its manpower, the only option available is to impart multi-skill training to its entire workforce. This develops experts having a broader vision & diverse skill sets who are ready to any face challenges in their work arena.

In some RMD mines, the different equipment operators/mechanics are now re-designated as HEMM operators/mechanics or Light Vehicle operators/mechanics after giving them proper training so that they are able to operate or maintain all types of heavy, medium or light equipment respectively. As a measure of motivation they were given promotions in two years instead of three. This has resulted in much better productivity and gainful utilization of the human resource.

Job RotationIn our organisation few persons are continuously working for years together in routine and trouble shooting zones where there is low predictability and low delay tolerance, forcing the individual in a stress zone killing their creativity and innovative pursuits. On the other hand few are working continuously in the project or negotiable jobs where there is high predictability and high delay tolerance. They remain unaware of the operational realities and seasoned in the same work environment causing mismatch of interpretational deviations. Job rotation will liberate higher level energy by alignment of nature, nurture & type of tasks. So the ideal job blend should be that every body be rotated through all the four types of job, so as to achieve cohesive collaboration.

Job EnrichmentWe should develop schemes to enrich the job of individuals. There are five factors of job design that typically contribute to people's enjoyment in a job:

Skill Variety – Increasing the number of skills that individuals use while performing work.

Task Identity – Enabling people to perform a job from start to finish.

Task Significance – Providing work that has a direct impact on the organization or its stakeholders.

Autonomy – Increasing the degree of decision making, and the freedom to choose how and when work is done.

Feedback – Increasing the amount of recognition for doing a job well, and communicate the results of people's work.

Job enrichment addresses these factors by enhancing the job's core dimensions and increasing people's sense of fulfillment. Job enrichment is a fundamental part of attracting, motivating, and retaining talented people, particularly where work is repetitive or boring. To do it well, we need a greater match between the way our

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jobs are designed and the skills and interests of the employees working for us. When our work assignments reflect the above factors, members of our team are likely to be much more content, and much less stressed. Enriched jobs lead to more satisfied and motivated workers. So, our responsibility is to figure out which combination of enrichment options will lead to increased performance and productivity.

As an example in Bolani, we provided walkie-talkie sets in the dumping station and to the shovel and dumper operators, thereby giving feedback of hourly trips and individual trips made by each dumper operator to the entire team. Prior to this the information of trips was limited to only the shift In-charge and control room operator. Now, as the entire team was aware of the hourly trip by use of the walkie-talkies this made their job more enjoyable even in the last hour. This has boosted performance of dumper and shovel operators resulting in increase of 6 to 7 trips per shift.

Unit TrainingUnit training is a specific need based training to prevent repetitive failures in operations. Here, a small group is targeted and are trained to develop specific knowledge and skill pertaining to the equipment/causes of failures. After training their performance is monitored at work. This type of training was imparted to 23 persons at Bolani in small groups of 2 to 3 at the work site. These persons were later made responsible for the operation and maintenance of the secondary crusher (7’ XHD Simon cone crusher).

This training has been instrumental for trouble-free operation of this crusher for last three years even with the in-house repaired eccentric assembly. Similar training was designed and imparted for safe operation of reclaimer after the failure of one of its leg. The reclaimer is also giving satisfactory performance since then. Presently, the modules for conveying system are being developed.

Strengthening Quality CirclesConcept of quality circle is a method of controlled empowerment of employees where they select an autonomous team to take up the de-bottlenecking projects. This provides a forum to exhibit their creative and innovative pursuits. They take up the task, do the critical analysis to find the reasons and remove the root cause of problems for improving the system reliability and productivity. Thus quality circle will act as a tool for step by step improvement in productivity and growth. In Bolani, the endevours of quality circle group has accomplished significant reduction in water content of washed iron ore fines and this case was presented at an International forum in Dhaka and another case was presented at Badodara.

Information TechnologyFantastic speed, huge capacity and absolute reliability is at the heart of information technology and this has been instrumental in developing new competencies in the


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workforce as it enables one to do much more in much less time and efforts. Organizations are imbibing the latest technologies and systems to improve their functioning in which IT plays a key role. This is more relevant in today’s context as there is an irreversible shift from the industrial age to the information age.

Information technology acts as a catalyst in fostering growth, increasing profit margins and enhancing competencies. Post liberalization corporate India has been successful in cutting costs and streamlining operations. The role played by the knowledge economy cannot be ignored. The average operating margins of top 100 companies in India has increased from 18% in 2000-01 to 26% in 2007-08.

In Bolani there has been significant progress in computerization over the last decade. The major achievements in the field of IT are:

Oracle based MIS working on remote nodes connected to the central database via fiber-optic LAN spread over a stretch of 7 Kms. This MIS has enabled fast online transactions in various functions of Materials Management, Finance & Accounting and other operational areas. First in first out (FIFO) system has been effectively implemented in the hospital’s medicine stores, resulting in appreciable savings accrued from reduction is wastage of expired medicines as the oldest batch is sent to the pharmacy for distribution first.

This has also eliminated redundancy and errors in data entry process thereby saving lot of valuable time and efforts. Any information can be accessed from any point in a very short time without having to look over any manual records as all data is stored in the servers. That is, more accurate statistics and reports are available to the management for taking better decisions in time.

There is 90% computer literacy among the executives and around 60% for the non-executives as a result of continuous in-house training.

In May 2008, the Wide Area Networking (WAN) of mines with head office at Kolkata was completed using VSATs thereby affording seamless transfer of data. We are in the process of implementing video conferencing, after getting leased line connectivity, so that time and expenditure on travels could be reduced substantially.

Implementation of surpac mine planning and scheduling software is in progress with future plans to install GPS based automatic despatch system for mining equipment.

Performance Management System (PMS) PMS is the crux of any "people management" process in any organisation. Organisations exist to perform and if people do not perform organizations cannot survive. If people perform at their peak level organization can compete and create waves. Performance management systems, if properly designed and implemented can change the course

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of growth and pace of impact. In the past, organizations as well as the HR function have wasted a lot of time by wrongly focusing on performance appraisals rather than performance management.

We suggest that our PMS should be designed so as to:

clearly identify between the high performers and laggards.

afford more transparency in the total process.

provide quarterly review of performance and feedback instead of bi-annually.

give performance based rewards and incentives.

Above all 360° feedback system to be introduced as this is a tool of key importance in PMS for upward and downward integration of performance as was also revealed from the survey findings.

A very broad, pragmatic view of performance management involves enhancing performance of individuals, teams and the entire organisation. Setting up a good performance management system cannot happen overnight or by accident. We need to consider its design and carefully plan how it will work before managers begin using it to evaluate their employees. An effective performance management system will provide employees with these four basic benefits:

A clear understanding of job expectations

Regular feedback about performance

Advice and steps for improving performance

Rewards for good performance

The ultimate goal is to help boost employee performance and thereby, the productivity and growth of the business.

Project ManagementIn the first tier survey an important finding was that projects are not completed in time (as opined by 69%), and we are unable to reap the benefits of expansion plans. In SAIL, key decisions related to projects are left to the indentors who as such remains continuously under day to day job pressures and hence are unable to scrutinize in-depth, even if they have all the required local information but may not usually have the experience of project implementation. The indentors remain unknowingly, un-involved and un-informed about the project documentations which becomes almost entirely developed by CET unilaterally. This results in mismatch of thought profile and leads to numerous problems during the implementation phase.

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So our group suggests that a key person from indenting unit should be temporarily posted in CET with concerned group while the project is on the drawing board. Similarly, one or two key persons from the CET group be also posted during the implementation, commissioning and till stabilisation of the project at the unit. This will inculcate ownership and accountability resulting in success of project apart from exchange of knowledge and experience which will benefit both CET and the concerned unit, improving the confidence and level of competence thereby building self-reliance.

Training & DevelopmentSAIL has a world class training institute devoted to managerial training at MTI Ranchi. However, for technical training needs SAIL is dependant on outside agencies like ABB, Cummins, Yuken, SKF, BEML, HIL and many other organisations/OEMs. These kind of trainings becomes open-ended since there is no feedback system to judge the effectiveness with regard to its application at the work-site. Moreover, these trainings are most often taken as a pleasure trip. Also, these trainings are designed by the OEMs to cover a large gamut of participants with varied requirements. This does not properly fulfill the training needs of our organisation many a times.

In this context we feel that in line with MTI a separate technical training institute dedicated for technological training should be started at a nodal location to benefit our managers, supervisors and technicians beside attracting external customers as well. Here, in-house experts from steel plants and related units may be called as faculties. This will contribute to development of a technical knowledge bank which will go a long way in making SAIL a learning organisation. This endeavour will prove to be a true investment on training.

cONclusiON

The time has come that, large organisation like SAIL needs a way to set and clarify new standards of performance and expectations, better aligned individual behaviour and business strategies, and help employees take charge of the challenges. This can be achieved by successful development and implementation of a Competency Management Programs at all levels, which need to address the Management Development, Career Development, cultivating a culture of unlearning and relearning for re-skilling of employees, and higher employee retention initiatives to face the challenges of growth. These competency management programs must be integrated with the overall talent management strategy in order to accelerate the development of visionary leaders and ensure that employees can implement new work processes and become drivers of continuous innovation and change and align the workforce with corporate strategy, goals and objectives.


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In this rapidly changing liberalised and globaised business environment, SAIL has to grapple with the ever-intensifying competition. SAIL has envisaged Corporate Vision 2010-11 in which long terms plan has been made to achieve market leadership in the steel arena by producing over 26 MT of steel per annum. It is important to note that by then many private players will start producing significant amount of steel and the struggle for SAIL to sustain leadership might become really tough. Hence, it is of utmost importance to build the competencies across all functional levels in the organisation to face the future challenges. To address this, while we need to do things better than our competitors, we also need to do things that are radically different. The committed mindset in our company, aided by a strong culture that fosters and encourages business innovation will greatly strengthen the competitive arsenal of SAIL.

To conclude we would like to say that, to become a world class respectable customer focused enterprise we must respect competency and competent person. We must promote those who “have it”, hire those who “have it” and train those who “don’t have it” on how to “have it” and utilize effectively those who “have it”. And most importantly make all out efforts to retain those who “have it”.


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References:Research Papers:

1. BuildingKnowledge-basedCoreCompetencies,MarkkuSotarauta,ResearchUnit,UniversityofTampere,Finland.

2. Building Competencies through Information Technology; Michael Porter Way.Dr. Arpita Khare, Faculty Associate-M.B.A-I.T; Indian Institute of InformationTechnology,Allahabad.

3. Building Competencies in Human Resources: Hector C. Parker, Faculty MexicanUniversityofManagement.

4. Building Competencies: The need of the hour. Dr. Anitha Ramchander, AdarshInstituteofManagement&InformationTechnology(AIMIT),Bangalore.

5. Selection and Assessment - A new appraisal, M Smith, M Gregg and D Andrews, Pitman, 1989.

6. Competence at work: Models for superior performance, Lyle M Spencer and Signe M Spencer.

7. Individual differences in output variability as a function of job complexity, J Hunter, F Schmidt and M Judiesch, Journal of Applied Psychology 75, 1990.

8. Can behavioural interviews produce results? Sean Boyle, Guidance & Assessment Review.

9. Skills of an Effective Administrator, Katz, R.L., Harvard Business Review, Vol. 52.

10. An Investigation into Management Training Development Needs of Senior Officials, DPPC, Research Monograph No. 2, University of Bradford, Analoui.

11. Management Skills and Senior Management Effectiveness, International Journal of Public Sector Management, Analoui. (1995).

12. Myth of the well-educated Manager, Harvard Business Review, January-February 1971, J.S. Livingston

13. Teaching Organisational Behaviour: Current patterns and implications, Filley, A.C., Foster, L.W., Herbert, T.T. (1979), The Organisational Behaviour Teaching Journal, Vol. 4.

14. The Competent Manager, John Wiley, Boyatzis, R.E. (1982).

15. Achieving the Capacity and Competence to Manage, Margerison, C.J. (1985), Journal of Management Development, Vol. 4.

16. The Medici Effect: Breakthrough Insights at the Intersection of Ideas, Concepts, and Cultures. Johansson, Frans. Harvard Business School Press. 2004


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17. Management Development: needs and practices, Digman, L.A. July-August 1980.

18. In-house publications of SAIL, like “Growth”, “MTI-Musings” etc.

Websites:

www.employee-employer.com

www.salary.com

www.sciencedirect.com

www.workitect.com

www.employment-studies.co.uk

www.im.gov.ab.ca

www.ecgi.org

www.voyager.gaia.com

www.seattleu.edu

www.enotes.com

www.indiainfoline.com


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Annexure I

GeneralSurvey

QuesTiONNaire

Dear Madam / Sir,

We would appreciate your valuable feedback on the following survey which has been designed for identifying the different competencies and prevalence of competency culture in our organisation. The results will be utilised for presentation in a project titled “Building Competencies for Meet the Challenges of Growth” under the scheme of “Chairman’s Trophy for Young Managers 2008”.

1. Please suggest few characteristics of a competent person/workforce which you feel are necessary for meeting the challenges of growth in our organisation?

Please tick in the box for each question below which you feel best answers it;

SA = STRONGLY AGREE, A = AGREE, M = MAYBE, D = DISAGREE & SD = STRONGLY DISAGREE

S# QUESTION SA A M D SD

1. Is there a system to recruit people on the basis of specific job competencies?

2. Is your training based on identification of competency gaps and competency needs?

3. Is there proper recognition for competencies separately in the present appraisal system?

4. Do you feel that the 360° feedback system would be more effective in building competencies?

5. Is your organization good in execution of projects, once decided, rather than aborting them in the middle?

6. Does your organization have a culture of using task forces and work groups for various exercises/tasks/issues?


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7. Has your organization missed any business opportunities in the recent past due to lack of competent people to handle any one or more areas of growth?

8. Does your organization encourage innovations and scientific ways of doing things?

9. Is your organization systems driven (i.e. values systems) rather than being rampant with ad-hocism and convenience based decision-making?

Name: ______________________________ (Optional). Years of service: _________

Designation: ____________________ (Optional). Organisation: ________________

Team Members: Bipin Kumar GiriSr. Manager (Plant)

Sirish Kumar SonnySr. Manager (C&IT)

Radha Kanta JenaManager (E&L)

resulTs OF THe GeNeral survey (FirsT Tier)

Feedback was obtained from 82 executives and 30 supervisors working in the various departments of the RMD mines and 36 feedbacks were obtained from external sources through e-mail. Results of the survey are summarized as follows:

1. Characteristicsofacompetentperson/workforceassuggestedbytherespondentsarecollatedbelow:-

ADAPTABILITY CLIENT FOCUS COMMUNICATION ORGANISATIONAL AWARENESS

PROBLEM SOLVING & JUDGEMENT

RESULT ORIENTATION

TEAM WORK DEVELOPING OTHERS

IMPACT & INFLUENCE

INNOVATION LEADERSHIP RELATIONSHIP BUILDING

RESOURCE MANAGEMENT

SELF MANAGEMENT

STRATEGIC THINKING


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(Figures in %)


1. Is there a system to recruit people on the basis of specific job competencies?

11 40 13 27 9

2. Is your training based on identification of competency gaps and competency needs?

7 20 4 44 25

3. Is there proper recognition for competencies separately in the present appraisal system?

15 25 24 29 7

4. Do you feel that the 360° feedback system would be more effective in building competencies?

32 37 11 13 8

5. Is your organization good in execution of projects, once decided, rather than aborting them in the middle?

10 21 9 46 15

6. Does your organization have a culture of using task forces and work groups for various exercises/tasks/issues?

23 29 25 14 8

7. Has your organization missed any business opportunities in the recent past due to lack of competent people to handle any one or more areas of growth?

16 43 9 25 7

8. Does your organization encourage innovations and scientific ways of doing things?

13 25 11 31 20

9. Is your organisation systems driven (i.e. values systems) rather than being rampant with ad-hocism and convenience based decision-making?

7 15 9 40 29

Salient Observations:Wehavegotcompetentpeoplebuttheircompetenceisnotdevelopedduringtheircareer(11+40)%agreedthatrecruitmentisbasedoncompetency.

Nature isgoodbutneedspropernurtureasonly (7+20)%felt that training isneedbased.

360° feedback system was felt to be very important to develop competence(32+37)%agreed.

Projects are not completed in time, so we are unable to reap the benefits ofexpansionplansasonly(10+21)%agreedthatprojectsarecompletedtimely.

Climateforcreativity&innovationisnotveryconducive(31+20)%disagreedinQ9.

Alargemajority(40+29)%feltthattheorganizationisdrivenbyad-hocism&conveniencebaseddecision-making,ratherthansystemsdriven.

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Annexure I

For E-4 & above

assessMeNT sHeeT FOr survey

Dear Madam / Sir,

We would appreciate your valuable feedback for the following survey which has been designed for gauging the level of competencies in our organisation. The results will be utilised for presentation in a project titled “Building Competencies for Meet the Challenges of Growth” under the scheme of “Chairman’s Trophy for Young Manager 2008”.

Please give the rating on a scale of zero to hundred in both the columns i.e. to SELF (representing individual’s endeavour to acquire and demonstrate the competency) and to the ORGANISATION (representing process, system & structure that supports/enables people to perform) for evaluation of specific competency levels:

S# COMPETENCY BEHAVIOURASSESSMENT

SELF ORGANISATION

CORE COMPETENCIES

1. ADAPTABILITY Individual’s willingness and ability to effectively & efficiently work in changing business scenario will decide our future sustainability.

2. CLIENT FOCUS You believe, customer is the most important visitor in your premises, you serve them responsibly, and organisational support enables you in doing that.

3. COMMUNICATION You spend sufficient time to listen, interpret, formulate and deliver verbal and non-verbal communication at your work.

4. ORGANISATIONAL AWARENESS

You are aware of your key role in your organisation and you go an extra mile to understand the organisational realities and underlying issues.


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SELF ORGANISATION

5. PROBLEM SOLVING & JUDGEMENT

You are given need based training and you manage the challenges of your work environment well by utilising the knowledge / skills acquired during training.

6. RESULT ORIENTATION

You always try to perform beyond expectation and the organisation recognises your exceptional / extra ordinary achievement.

7. TEAM WORK Work in a co-operative, participative and cohesive team becomes fun and improves individual performance of team members.

ROLE SPECIFIC COMPETENCIES

8. DEVELOPING OTHERS

Developing others through proper direction, active support, proper feedback, and coaching is one of the important duties of every manager.

9. IMPACT & INFLUENCE

Method of positive impact and influence helps aligning the work force towards organisational goal and improves managerial effectiveness.

10. CREATIVITY & INNOVATION

Creative and innovative work culture cultivates true entrepreneurial be-haviour among employees that earns sustainable growth and profit for the organisation.

11. LEADERSHIP Managers must exhibit visionary leadership behaviour through self positioning, compelling vision and pragmatic practices.

12. RELATIONSHIP BUILDING

Creating a win-win situation through formal and informal relationship building helps tapping the higher level energy that can work miracles in the organisation.


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SELF ORGANISATION

13. RESOURCE MANAGEMENT

Efficient and effective utilisation of external and internal resources takes top priority in our day-to-day functioning.

14. SELF MANAGEMENT

As a responsible manager you spend some time regularly for reflecting on your past experience in order to manage and continually improve your own performance.

15. STRATEGIC THINKING

Achieving bottom line results and top line growth calls for analyzing potential, aligning action towards an articulated strategy.

Name: _____________________________ (Optional). Years of service: __________

Designation: ________________________ (Optional). Organisation: ____________

Team Members: Bipin Kumar GiriSr. Manager (Plant)

Sirish Kumar SonnySr. Manager (C&IT)

Radha Kanta JenaManager (E&L)

resulTs OF THe secONd Tier survey


SELF ORGANISATION

CORE COMPETENCIES

1. ADAPTABILITY Individual’s willingness and ability to effectively & efficiently work in changing business scenario will decide our future sustainability.

72 68

2. CLIENT FOCUS You believe, customer is the most important visitor in your premises, you serve them responsibly, and organisational support enables you in doing that.

78 63


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SELF ORGANISATION

3. COMMUNICATION You spend sufficient time to listen, interpret, formulate and deliver verbal and non-verbal communication at your work.

65 48

4. ORGANISATIONAL AWARENESS

You are aware of your key role in your organisation and you go an extra mile to understand the organisational realities and underlying issues.

56 62

5. PROBLEM SOLVING & JUDGEMENT

You are given need based training and you manage the challenges of your work environment well by utilising the knowledge / skills acquired during training.

44 32

6. RESULT ORIENTATION

You always try to perform beyond expectation and the organisation recognises your exceptional / extra ordinary achievement.

76 44

7. TEAM WORK Work in a co-operative, participative and cohesive team becomes fun and improves individual performance of team members.

79 61

ROLE SPECIFIC COMPETENCIES

8. DEVELOPING OTHERS

Developing others through proper direction, active support, proper feedback, and coaching is one of the important duties of every manager.

80 58

9. IMPACT & INFLUENCE

Method of positive impact and influence helps aligning the work force towards organisational goal and improves managerial effectiveness.

92 74

10. CREATIVITY & INNOVATION

Creative and innovative work culture cultivates true entrepreneurial behaviour among employees that earns sustainable growth and profit for the organisation.

89 68


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SELF ORGANISATION

11. LEADERSHIP Managers must exhibit visionary leadership behaviour through self positioning, compelling vision and pragmatic practices.

91 66

12. RELATIONSHIP BUILDING

Creating a win-win situation through formal and informal relationship building helps tapping the higher level energy that can work miracles in the organisation.

85 61

13. RESOURCE MANAGEMENT

Efficient and effective utilisation of external and internal resources takes top priority in our day-to-day functioning.

73 86

14. SELF MANAGEMENT

As a responsible manager you spend some time regularly for reflecting on your past experience in order to manage and continually improve your own performance.

62 42

15. STRATEGIC THINKING

Achieving bottom line results and top line growth calls for analyzing potential, aligning action towards an articulated strategy.

59 71


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aNalysis OF THe secONd Tier survey resulTs

The findings in respect of core competence are as under:

1. ProblemsolvingandJudgement–Theratingwaslowforbothself(44)andorganisation

(32).Itimpliestwothings,firstthatthecompetencelevelisjustenoughforroutine

workbutnotenoughtomeetthechallengesandlearningseemstobelocalizedand

knowledgesharingislacking.

2. ResultOrientation–Thedeviationishigh(from76to44)meaningthereislackof

Intrinsicmotivationandrecognitionmechanismisnotadequate.

3. Communication–Herealsodeviationishigh(from65to48).Meaningcommunication

meansandmethodsarenotadequate.

4. TeamWork–Structurally,crossfunctionalcollaborationismissingasforselfwegot

ahighratingof79whereasfortheorganisationitwaslowerat61.

5. ClientFocus–Theindividualshaveratedthemselveshigh(at78)meaningthatthey

careforthecustomers,howeverinorganisationalframeworkthescoreislow(at63)

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aNalysis OF THe secONd Tier survey resulTs

With reference to the role specific competencies the findings are as under:

1. Resource Management – The organisation has outperformed the individual’sendeavour.Itimpliesthattheindividualsareunabletocomeuptotheorganisationalexpectation. In resource management the individual score is 73 while for theorganisationitishigherat86.

2. StrategicThinking–Herealsotheorganisationgotahigherratingmeaningthatthestrategicthinkinglacksprevalentfactsandarticulatedefforts.

3. LeadershippursuitgetssubduedduetolackoffreedomorDOPaswecanseethatthescoreforselfishighat91butfortheorganisationitislessat66–“wehavelionsbutcaged”.

4. Creativity&Innovation–Theindividualratingwashighat89butfortheorganisationitslowerat68meaningthattheworkenvironmentdoesnotpromoteatcreativityandinnovationalthoughthereisdriveintheindividuals.

5. RelationshipBuilding–Formal relationshipprevails causing lackof collaborationandfailstotapthehigherlevelenergy.

6. Developingother–Knowledge,experienceandinformationsharinglacksherealsoindifferentroles.


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We conclude with an interesting fact that under both categories i.e. under core & role specific competencies there has been an overall higher rating for the self as compared to the organisation. It seems that individuals consider themselves as having more drive for acquiring and demonstrating the competencies whereas at organisational (system, structures & style – the Hard ‘S’) level it gets subdued. In core competency the individual average score is 67 and for the organisational framework it is 53. Similarly in role specific competencies the individual average score is 79 and for the organisational framework it is 66.

An obvious inference is that the same individuals who rated themselves higher are unable to liberate their potential in organisational framework. Thus, the hard ‘S’ part of the organisation’s needs review.

Annexure II

CASE 1:

CASE STUDIES

TO iMprOve prOducTiviTy OF duMper & sHOvel OperaTOrs

To promote competitiveness among the different shifts and within the shift one display board at the G’Area site office was installed on which the production achieved by the previous shift was publicly displayed. Also, the related incentives were shown. Further, to give/receive continuous feedback a walkie-talkie was provided at the main dumping station, one in each shovel and one of the dumpers attached to each shovel so that the trips made by each operator was known to the full team, which earlier was limited to telephonic discussion between the shift I/c and dumping station operator.

Benefits:

This has motivated the operators right in the beginning of the shift to go the extra mile in order to outperform the previous shift’s achievement.

Broadcasting of the trips among the operators created an environment of competition among the team members making their jobs interesting and zealous.

This has resulted in average increase of 6 to 7 trips per shift.

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CASE 2:

OperaTiON OF secONdary cONe crusHer aFTer repairs

In the crushing plant after the primary gyratory crusher there is a secondary cone crusher (7’ Simon XHD) which developed problems in operation after in-house repairs of the eccentric assembly. The “shrink fit” between the eccentric gear and shaft was disturbed due to the welding resulting in permanent eccentricity causing frequent high spinning of main shaft and excessive of wearing conical & eccentric bushes with high noise due to un-even backlash. The adverse effect was frequent stoppages of this crusher and subsequent production losses.

Imperatives: The emerging situation called for hourly monitoring/adjustment of the following:

Lube oil flow & pressure in the countershaft box

Spinning rpm of the mantle shaft

Coast-down time

Return line strainer

Oil temperature

Water level in cooling water tank

Inlet and outlet water temperature

Solution: A unit training module was designed in which detail of crusher components, operational parameters and their tolerable limits were explained to the participants (23 heads).

A form for recording the above parameters was prepared and individuals were told how to take the readings and fill it in the form.

These persons were also trained on how to make minor adjustments to these parameters as per the need.

Benefits:The crusher is managed to operate trouble-free for the last three years.

It has increased the knowledge and confidence of the employees besides improving production and productivity.

The shutdown for replacement of eccentric assembly was planned in November’08 but we have shifted it January’09 in view of lump requirement of DSP.

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CASE 3:

OperaTiON OF BucKeT wHeel reclaiMer aFTer leG Failure

In the year 2003 the stock-pile side leg of the reclaimer failed suddenly and the entire structure collapsed. We wondered how and why it failed after seven years of operation? After pondering over the issues of failure it was identified that it had something to do with the operating procedures/practices also.

Intervention:We designed a unit training module in which component wise load analysis was explained to the operators and technicians in simplified way. The training was organized in the machine itself by picking up small group of 2 to 3 persons (14 covered in total) available at work.

SOP was developed in consultations with operators and recommendations of the OEM.

Limit switches were provided to eliminate extreme operational positions of bucket wheel boom.

Points were identified and shown to the operators which had to be checked weekly for any crack and other structural deformation.

While commissioning the balancing was done properly.

Benefits:After imparting this training the reclaimer is working satisfactorily for last four years.The excessive oscillation of super structure has been eliminated.

Remarks of Case 2 & Case 3: When these operators/technicians were being interviewed in reference to the subject, we received an overwhelming response from them about the efficacy of this training and there was a request from their side to develop such modules for the conveying system, which is being developed at Bolani.

Inference: Unit training will certainly go a long way in building competencies.

CASE 4:

iMpleMeNTaTiON OF iNFOrMaTiON TecHNOlOGy

In Bolani there has been significant progress in computerization over the last decade with notable achievements during the last two years. The major achievements in the field of IT are:

Oracle based MIS working on remote nodes connected to the central database via fiber-optic LAN spread over a stretch of 7 kms. This MIS has enabled fast online

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transactions in various functions of Materials Management, Finance & Accounting and other operational areas. First in first out (FIFO) system has been effectively implemented in the hospital’s medicine stores, resulting in appreciable savings accrued from reduction is wastage of expired medicines. The oldest batch is sent first from the medicine stores to the pharmacy for distribution to patients.

IT has also eliminated redundancy and errors in data entry process thereby saving lot of valuable time and efforts. Any information can be accessed from any point in a very short time without having to look over any manual records as all data is stored in the servers. That is, more accurate statistics and reports are available to the management for taking better decisions in time.

There is 90% computer literacy among the executives and around 60% for the non-executives as a result of continuous in-house training. A good number of executives as well non-executives are also proficient in computer operation.

In May 2008, the Wide Area Networking (WAN) of mines with head office at Kolkata was completed using VSATs thereby affording seamless transfer of data. We are in the process of implementing video conferencing, after getting leased line connectivity, so that time and expenditure on travels could be reduced substantially.

Implementation of surpac mine planning and scheduling software is in progress with future plans to install GPS based automatic despatch system so that data pertaining to operation of mining equipment can be captured and recorded on the fly without human intervention.

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finalistHarishanker Singh, Manager, HSM

Debabrata Chowdhury, Sr. Manager, HSM

Bokaro steel Plant

introduction:

India is a land of immense natural & human resource & it is indeed a surprise, that with such an abundance resources we continue to remain as an underdeveloped country

even after sixty years of independence. If we analyze the reasons for this yawning gap between aspirations & actuality- lack of involvement of people, lack of competence and lack of strong political will are the main reasons.

Almost any thing done will seem insignificant, but it is very important that to do it- one must be the change, he/she wishes to see in the world.In this paper we have emphasized on VISION of SAIL and to achieve the vision what type of growth is needed and for that growth what are the different challenges we will face in future and what are our competence gap and how to bridge them?

Methodology

1. Literaturestudy—donethroughstudyingbooks,journals,magazines,internet

2. Empiricalstudydonethrough:

Questionnaires.

InteractionandInterviews—WithMTT’s,personnelandtechnicalmanagersandworkers.

3. Casestudies—basedonactualcases.

Structure of Paper

1. Objectives/Definitions

2. PresentstatusofSAIL/BSL

SWOTanalysis

Challengesofgrowth

Resourcehandling

3. Need of BUILDING COMPETENCE. (Introspection through survey with the help ofquestionnaire1).—Identifyingchallengesofgrowthandpotentialareastobelookedafterforbuildingcompetence.

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4. Variousfacetsofcompetenceandchallengesofgrowth.

5. Barriers and bottlenecks in building competence and suggested debottle-neckingmeasures.

6. HowinBSL/SAILcompetencecanbebuiltforsustainablegrowth.(surveywiththehelpofquestionnaire2)

7. Presentstatusandfutureneeds–Facilitatingfactorstofacechallengesofgrowth

8. Changingthemindsetofpeople,makingthemcreative,innovativeandcompetitive—somecasestudies.

9. Recommendations:

(A) H-DHypothesis

(B) Employee Performance and Competency Model (EPCM) to meet futurechallenges.

10.Conclusion.

Relevance of Topic:In the competitive business environment, success & growth of an organization depends upon its people and their capability to respond to business challenges. However, do they know their actual potential and competence? If not then, what are the benchmarks, how it can be built. In SAIL/BSL, we are in a phase of depletion of experienced manpower and under utilization of our capability & capacity. Now is the time to realize our capacity and hence use our HR potential and competence on a world level. It has been rightly said -

“If you think you can, you are right- just be passionate about what you think”. OUR VISION: to be a respected world class corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction.

We envisage following three scenarios based on present & future growth plan of SAIL:

Present scenario :

Low capacity, less foreign players

With large manpower base we are still in the market leadership position

Capacity expansion by almost all companies including SAIL

Plan for 26.2 MT by 2012.

Man power reducing drastically, how to manage and sustain market leadership?

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Competition with large and mature companies like POSCO, MITTAL, TATA, JINDAL. How to survive?

In view of all those situations the topic for this years chairman’s trophy is quite relevant. We need to build the right competence and culture across organization which will be the key for sustainable growth and long term success.

SAIL TODAY:STRENGTHS WEAKNESSES

Availability of iron ore.

Talented pool of human resource.

Mature production base.

Strong domestic marketing network.

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Coking coal import dependence.

Unexploited talent of HR.

Infrastructure constraints-ports, railways.

Constraints in availability of raw material.

Weak marketing network for export. Low C mpetency level in Project Management.

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OPPORTUNITIES THREATS

Unexplored rural market.

Growing domestic demand.

Exports.

Consolidation.

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Dumping by global competitors.

Competition with large private companies: MITTAL, POSCO, TATA, JSW, ESSAR.

Cyclic nature of steel prices and demand.

Age mix of the present manpower.

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As per the SWOT analysis we have envisaged the GROWTH CHALLENGES in three levels viz:

MACRO LEVEL

GROWTH CHALLENGES ORGANIZATIONAL LEVEL

MANAGERIAL LEVEL

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Macro level:Improving delivery and core services

Making growth more inclusive

Sustain growth by managing fiscal and trade deficit & accelerating the speed of reform

Organizational level:Formulating strategies

Inducting, grooming & retaining talent

Meeting aspiration of employees & various stake holders

Identifying skill gap & quickly bridging

Ensuring continual improvement in organization structure, system and processes

Cultivating the culture of delegation & prompt decision making

Managerial level:Adjusting to growth

Changing the way of doing businessCreating an environment of learning, creativity, innovation & mutual respectDeveloping trust on middle and front line team of managementChallenging the status quo

Maximizing internal efficiency

Relationship between growth and competence:Growth: growing, developing, increase in size and value

Size – capacity expansionValue – value added quality product, customer satisfaction, building brand imageGrowth indicators: a business to survive, grow and meet future challenges, it should continue to create value beyond its strategies.

Growth=Value Creation = ƒ (R, C)

(Where R = Resources & C = Competencies)

To find out the gap of competency between SAIL & others from the above let us analyze some competency parameters:

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comPetency- WHat?

It is the combination of behaviour, motives, traits, skills knowledge and thoughts not only in performing a particular job correctly and safely but also leading to excellence in performance.

Competencies are typically expressed in terms of visible on-the-job behaviours. Competencies can usually be developed by participating in training, through on-the-job opportunities such as project and task team involvement. A job competency is an underlying characteristic of a person which results in effective / superior performance in job (Klimp 1980). It implies that it is a characteristic of a person; it can be motive, trait, skill, knowledge, self-image. Here the role of leader becomes critical because if his action does not reflect the espoused organizational value and belief system, the sense of making purposeful statement made by him would appear contrived & artificial. The leaders should have resonant relationship i.e essence of relationship between leader and his/her people.

Comparing SAIL with other big players of the market

To bridge the gap and build right competence SAIL, now needs a visionary leader at each level having following competencies.


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Normally, leaders have threshold competency, which is having 3 clusters of competencies- viz – Expertise, Experience, Knowledge and Basic cognitive competencies, but the outstanding leader has 5 clusters of different competencies including threshold competency like:

1. Cognitivecompetencies–Systemthinking

2. Emotionalintelligencecompetencyofselfawareness

3. Emotionalintelligencecompetencyofselfmanagement

4. Social intelligence competenceof social awareness –Self control, adaptability andinitiative

5. Socialntelligence competence of relationshipmanagement- developingothers andteamwork

But in SAIL, we do not emphasize on “Emotional intelligence of self awareness & self management” and “Social intelligence competence of relationship management”. Let’s see the three dimensions of success to further elaborate the growth and competency vis a vis SAIL.


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Competencies can be derived from the formula below:Situation * processes →Behaviour→Result.

Task at hand * employee → Performance (Action)→Target

Interesting job * creative employee-→Work differently & passionately→Target

Useful job * hard working /ambitious employee→In depth working →Target

The reverse is happening in SAIL/ BSL, and the result is not encouraging. We observed the complete lack of enthusiasm in the employees of SAIL/BSL. We found that it is the lack of passion. Employees and executives are having passion for good remuneration, facilities and conducive environment. If it is not present in the organization, then only a small percentage has the passion to do something different for the benefit of the organization. Secondly there are people with skills, knowledge competency & the urge to succeed. However the urge is neither forceful nor passionate.

In an organization like SAIL/BSL, with huge capacity and skilled manpower, we need leaders in all departments, sections and work groups, with their vision in line with the organization to deliver. Therefore future leaders should be groomed from those who are capable of delivering results in today’s scenarios.The need of the hour is

“creating a culture of innovation and being strategically proactive - not reactive”.

The big question is, how?Take a look at the schematic of action & job performance of a competent manager-

INDIVIDUALSVISION.VALUES.KNOWLEDGECOMPETENCYINTERESTPASSION

JOB DEMANDSTASK, FUNCTION.ROLE

BESTFIT

ORGANISATIONAL ENVIRONMENTCULTURE & CLIMATE, STRUCTURE &

SYSTEM, CORE COMPETENCE,STRATEGIC POSITION

We have to go for the " best fit"


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It can be categorically stated “competence can be developed:”Any typical training program has the “honeymoon effect”. Improvement starts immediately but subsides within a month. To make it effective we have to choose the same group and provide for continuous improvement programs in different area. A feed back program to track down the effectiveness and the result should be put in place. The result will be manifold. It’s true that not every one will become leader. There are some having the capability in SAIL, which is not being utilized. It is a pity that this potential tends to serve other organizations successfully at a later point of time.

Our growth drivers:Through interaction with various cross sections of employees, we found about the following growth drivers:

INDIVIDUAL

COMPETENCE

TEAM COMPETENCE

ORGANIZATIONAL

COMPETENCE

Based on job skill, leader ship skill, interpersonalrelationship skill, proactiveness, opportunity sensingmind.

Developed by group of competent individuals

based or trained group members, quality conscious-ness, cohesiveness, urges to satisfy customers, innovativeness, passion to excel and win.

Based on strategy, resources, competitive pressure, knowledge management, networking, branding and consolidation.

It is the combination of individual and team compe-tence.

Challenges of growth as we foresee in BSL/SAIL: Table No. 1

SL.No.

Elements PresentstatusinSAIL/BSL

Emergingchallenges

1. Business planning and management of future.

Trends/projections Directional visionary holistic strategies with commitment.

2. Process High cost of process. Low cost high quality through collaborative strategy.


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SL.No.

Elements PresentstatusinSAIL/BSL

Emergingchallenges

3. Leader Manager Entrepreneur.

4. Structure Long Hierarchical Flat and lean.

5. Leadership style Authority driven, hierarchical, Task oriented control

Competence based power, non hierarchic, people and process oriented, Commitment building.

6. Resource Money, Machine, Material, Men

Time, information, idea, power of employee.

7. Organizational values

Stability, continuity Responsiveness, flexibility, change, innovation, creativity.

8. Employee expectation/motivation

Efficiency on the job. Building organization with involvement, initiative & excellence.

9. Competency mapping and skill gap identification.

No competency test for Executives.Competency mapping not done effectively.

Exhaustive competency mapping for both executives and non executives to reduce skill gap.

10. Knowledge management

Very slow action. Building a culture for preserving knowledge pieces

11. Information technology.

Paper work ERP implementation

12. Training Very much theoretical. Need based, modern, keeping an eye on future.

TheotherfunctionofgrowthisResourceHandling:

resource HandlinG:

To build competitive edge and meet the above challenges by optimum and efficient use of resources is foremost for sustainable growth. The present resources have to be handled in the following way:

1. HUMAN RESOURCE: Training based on competency mapping and leadershipbuilding.

2. TECHNOLOGY & EQUIPMENT: Upgraded equipments and latest technologyadoption.


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3. RAW MATERIAL: Smoothflowof inputrawmaterialsandspares fromreputedcompanies.

4. E V A +ve:OverallfinancialstatusofSAIL.

5. PROJECT MANAGEMENT:Developmentofprojectmanagersandstrictadherencetodeadline.

WHat to do?

We have to groom leaders at all levels with creative and dedicated followers, who work with passion. Human resources are to be counselled at every level for shedding older mindset, continuous unlearning and relearning of concepts and adopting newer techniques. They must be made aware of the vision, targets regarding production, safety and house keeping, environmental factors and above all customer satisfaction needs.

This will give SAIL its competitive edge, because there is big difference between people who just work and people who work passionately. And this difference is the difference between success and failure. People with passion automatically tend to be innovative.

We have to groom our people who passionately believe “they can” & develop the ability to face adversity. For this there should be a proper balance between job-insecurity for wrong doing and fast tracking for those having more competency and working to give something extra to the organization. They should not hesitate to shift tactics in tune with the situation because those employees are never completely content. They are happy with the success and also accept failures because it is a new learning for them to achieve success. They don’t hide failures or discredit others. This type of competent leadership is required to get the maximum advantage and growth.

“BE NOT AFRAID OF GROWING SLOWLY BUT BE AFRAID OF ONLY STANDING STILL”

But how? Let’s see an example of survey conducted.There was a research done in 1960 and it was found that 83% people chose career for the reason of making money and 17% chose as per their passion for what they wanted to do and after 20 years the result was tremendous- out of 101 millionaires in that country 100 were those who chose as per their passion.

Then the question arises that, why in SAIL, during the recruitment at all level this criteria is not taken care of. If it is taken care then why most executive think of having a desk job or switch to other soft area.

PEOPLE are company’s only sustainable competitive advantage; MOTIVATE THEM you will be surprised to see how fast motivated people can perform.


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The above statement is well supported by our own experience as shown in cases and view of respondents of questionnaire.

For building competence and enhancing knowledge base of our most valued resources i.e HUMAN RESOURCE. We had to move step by step about “what we are, where we have to go and how to reach there”.

Competence of our intellectual resources are to be leveraged and that to can be done by

1. Creatinganauraofemotionalattachment,passionandpride

2. Creatingrightenvironment,cultureforretainingtalent

3. Inquisitiveness

4. Sharpeningofskills-leadership,communication

5. Settingasideego

6. Outofthewaythinkingprocess

7. Tobecreativeandinnovative

Need of building competence for meeting challenges of growth.(introspection through survey with the help of questionnaire)

Questionnaire 1: Where are we?


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Survey of Executives

Survey of Non- Executives


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Questionnaire 2: Questionnaire on “Need of Building competence for meeting challenges of growth”.

Overall Survey of Respondents:

Survey of Respondents Below 45years Age:


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Need of Increase in Competence Level for Organizational Growth:Survey of Respondents above 45years Age:

Inferences from above Survey. (Sample size – 100, Executives – 60, Non – Executives – 40

As per priority, majority of people think that:-There is need of enhancing competencies for sustainable growth.There is need of educating and motivating people regarding challenges of growth.Most of the people are working at their 60% of potential, competence.Family and work area environment affects the performance of individuals.

Barriers/bottlenecks for Building Competency & Suggested Solutions for Debottlenecking:As we move forward, we found that lot’s of policies had been made but not implemented seriously with right spirit and most of the implementers are not serious to take pain. If they are serious then not committed to do the best of it. Most of the people are there

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in fault finding and escape goat. People mend the policies according to their comfort, because to do differently it takes time and pain, but they were unaware of the fact of the good result.

For demotivated employee, the HR department is not present for any counseling, though the policy is there.

“You can take a horse to a pond but you cannot make it to drink”, reason behind are:1. Unawareness of one’s competence: People are not aware of their competence, skills due to monotony of the jobs they do. Solution: Competency mapping and proper training to acquire necessary skills is

required. 2. Lack of Culture / Passion to Perform: Lack of culture of Innovation and creativity and also to excel in all fields. Solution: We have to create a culture of passion and ownership through effective

leadership and empowering employees. Jack Welch said –“The chemistry of change acts faster when people feel passionate about

its success.”3. Personal Ego: Matured people do not want to learn from the newer generation. Solution: These people are to be handled very cautiously. Front line managers

should inculcate a sense of prides among those persons and counsel l them for innovative work.

4. Lack of knowledge / insufficient training: Potential enhancement is very difficult without proper knowledge of work and

access to new technologies. Solution: Compulsory seven days of training for every employee half yearly and

presentation in respective departmental knowledge hubs. Also to offer cross functional growth opportunities to fast track individuals.

5. Improper reward and compensation: People have a feeling that to get the full benefit of human resources, reward and

compensation to be performance linked. Solution: Rationalization and better performance based incentive reward system

to be incorporated.6. Monotony in day to day work: Inadequate transfers, job rotation, lateral movement. Workforces become stagnate. Solution: Systematic job rotation and job enrichment with right spirit to be done.7. Stress Factor: Due to huge job pressure, people are not able to concentrate both in work and in

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Solution: Help desk to provide, assistance to family members, when they are employee is out of station or in trouble. Counselling for practicing yoga to be done.

8. Lack of motivation We feel in BSL, that workforce motivating factors which are existing are not

enough like workplace not safe, clean and conducive, rewards for innovative work is less, ineffective competency mapping measures.

Solution: More counselling, interaction program, small workshop with competitive thoughts by introducing best area in safety and housekeeping in individual department is to be introduced.

9. Mental Barriers Why work more when compensation is same for every one. Also doing repeated

work due to failure of bad quality spares causes resentment. Solution: Instantaneous reward and appreciation by concerned HOD’s to be done.

To avoid repetitive work good quality spares are the need of the hour.

How in BSL/SAIL competence can be built for meeting challenges of growth.(Survey with the help of questionnaire in Annexure: 1)Now let’s have a look on the questionnaire # 3, about how to build competence for meeting challenges of growth in SAIL/ BSL.Effect of leadership, punishment – reward, competence mapping and fast track.

Inference of survey “How to build competency and meet challenges of growth”:


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As per survey about “ how to build competence of SAIL/BSL people, it is clear that 76% of the respondents are of view that reward and appreciation, and 62% task to non-performer and pay differentiation will be implemented then, it will be easy to build competence. In addition to this, average people about 70% feel that, if innovation failed, it should not be discouraged, and overall development should be there along with tracking of mental and physical health. Considering competency mapping, training based on skill gap, reward system and career advancement and performance based succession planning, we are mediocre with respect to our competitors. Also executive competence mapping is required.

With the help of survey we want to point out that, if we had to take quantum jump, then thrust to be given in areas like competence based training and basic comfort to employees and family. It has been observed that building competence is a factor of development and self-attitude. To change attitude also we had to look into the comfort zone of our employee and counselling. If the outstanding employee and managers will not feel that they are treated, differently with pride, then it is not possible to keep them motivated and also it will send silent message to others to do best of themselves. At first people refuse to believe that a strange new thing can be done, then begin to think it can’t be done. Then they see it can be done. Then it is done and the entire world wonders why it was not done before.

“JOB SATISFACTION AND HAPPY ON THE JOB LEADS TO ENERGISED WORKFORCE”.

How to meet challenges of growth: As far as our survey is concerned challenges in today’s competitive environment can only be met by:


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As our group inferred after deliberating with cross section of people in BSL/SAIL.

Model of change process:

Based on universal competencies which is nothing but integration of 3 clusters---

1. Sharpening the focus through communication.

2. Building commitment through passion.

3. Driving for success through ownership attitude.

Some case studies highlighting the benefits of Building Competence for Meeting Challenges and WinningCase 1: Innovation done by HSM of BSL of roughing edger hydraulics circuit:-

In this case the team has done excellent design innovation and implemented it by changing the design and saving crores of rupees of SAIL / BSL per year, since this was existing from last many years and with the change in leadership of that area and motivation from top management, the team had unleashed their actual potential and had increased their competence level to two fold. Here the effective leadership plays an important role, along with reward and recognition.

Case 2: Innovation done by HSM of BSL in coiler for coiler mandrel cooling system

The same case as above, where the team had introduced new cooling system and designed it indigenously and implemented and saved crores by enhancing the life of


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mandrel. Thus they were having the group, who think new things and also motivates his teammates but once the reward will not become a motivating factor and these people who are giving extra to organization will go on working with added competence and confidence.

Case 3: Change in attitude regarding maintenance system in HSM

Today the attitude and potential is changing and increasing respectively, with new thinking and positive attitude. But all are not alike more training and management concept and counselling is required to motivate people to do the best.

Two of our suggestions have already been implemented and giving tremendous result in hot strip mill:

PEP talk by HOD to a group of skilled but lazy employees weekly thus making them aware of their worth and making them responsible for inspection in their respective areas.

Fortnightly display and review of targets.

Case 4: Exceeding to ones own competency after motivation and better leadership in HSM

We had experienced that how in one area of hydraulics and lubrication system, where the average oil loss was too high and productivity low there with the same people but less in number the oil reduced to half and productivity four folds. Here the passion of the leader worked who motivated his week team and made them to work differently.All the above cases are extraordinary job done by ordinary same people, who were working there for many years, but the change due to there area leader support from top management, attitudinal change, realization of competence, risk taking ability and getting reward in the form of CII award, Vishwakarma award, award for good job done by MD for their innovative work which also motivate others to do the best.There are many more cases through out that plant to give an insight but this leadership capability and exercising it is so low after performing for 30 -40 years in Indian steel industry. Now we had to come out to feel insecurity about the sustenance and to take hard step whatever it takes, like Mahindra Scorpio says:- nothing else we do, we say no one better can do what the SAIL does. The main formula for success that we find from the above real time cases in BSL/SAIL that can be divided in the following parameters:

1. Socially responsible business excellence :Adaptivethinking

Entrepreneurialdrive

Excellenceinexecution

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2. Energizing the team:Drivingchange

Teamleadership

EmpowermentwithAccountability

3. Managing the environment :Networking

Organizationalawareness

Stakeholderinfluence

4. Inner Strength:ExecutiveMaturity

Transcendingself

These cases also highlights the following secrets of work .These include:

The first secret of energy at work and be competent:

Choose the right attitude and be passionate about work.

“There is always a choice about the way you do your work, even if there is not a choice about the work itself.”When we come for work everyday, we bring an attitude with us. We can bring dull attitude and have a depressing day. We can bring an angry attitude and irritate our co worker and customer. Or we can bring a sunny, cheerful, playful attitude and have a great day. We can choose the kind of the day we will have at work. We must realize that as long as we are going to be at work, we might as well have the best day we can have.

The second secret of energy at work: Play

Any enterprise pays a lot of salaries and has to be taken seriously, but we could be serious about business and still have fun with the way we conduct business. This way we enjoy work that can be very tedious.

The third secret of energy at work: make their day

The playful way the work is done allows employees to find creative ways to engage their customers in ways, which create energy and goodwill. They create great memories whenever they “make someone’s day”. They try to engage all in their fun respectfully. If they succeed, “It makes other’s day.

The fourth secret of energy at work: be present

Look vigilant, eyes roaming for the next opportunity, means to be fully present in job. Don’t day – dream, or on the phone if not required.

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The fifth secret is stroke:

It is the unit of existence; it tells somebody that he exists and is important for the organization. This is very less in our organization, even those executives or supervisor who much above there subordinate, they lack in it as if others will come in between their carrier path, due to knowledge sharing.

Building competence in an organization is no small task, especially in uncertain times. But there are some important steps executives can take to lead and enable their employees in any economic environment. As a start, they can articulate a clear vision of the future, communicate it across their organizations and describe the strategy to achieve it. They can help people understand how important their day-to-day work is to fulfilling strategic goals, and they can provide people with the tools they need to succeed in their jobs. They can also establish a culture of open and honest communication between people and their leaders to celebrate success, acknowledge setbacks and outline plans to meet new challenges.

Therefore for SAIL to be competent in technology, human resource and productivity to achieve its vision we had postulated an H-D (Human – Desire) Hypothesis of management concept. This will work for those organizations, having similar mindset, infrastructure and technology base. According to this –

The people working in the organization having very high job security have the tendency of increase in their desire of getting more, by doing less. Due to the prevailing environment of not having passion and feeling of being in a slow developing organization they start loosing their passion and creativity thereby feeling defeated with the system. This ultimately results into desire of more money & facility without having thought of how much they are returning to the organization. Finally resulting into a team of low competency w.r.t to human resource, understanding of technology and unaligned career path.

Why does this happen?The human psyche is such that the desire value always tends to go up and it is not possible to fulfill the individuals desire always. Once the desired value is satisfied the perceived value will become the desired value and a new perceived value of higher level comes into existence. This in marketing terms is called customer delight. For the new desire without any passion or feeling of “my, me or ours” no one wants to do more for that exceeded desire value. At the same time with good leadership at all stages, the passion and creativity comes into picture & things will be reversed.


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tHe solutions as Per our study are:Recommendations: We suggest our designed EPCM MODEL (Employee Performance & Competency Model):

Competency Mapping:Present competency model followed is insufficient it is only followed for NON EXECUTIVES.

In HSM /BSL competency test done only for Non Executives.

It is followed as per clause no.6.1 QMS (ISO 9001:2000).

Identification of section done .Test taken in consultation with frontline managers by personnel department every three years. Based on knowledge of safety norms, quality norms, equipments, process involved and general aspect.

Scoring is given on weighted average.

If it is less than equal to 4 on the job training is given.

If it is 0. Training should have been given by T&DC in consultation with line managers.

WE PROPOSE for non executives-- skill/ competency test based on knowledge of safety norms, quality norms, equipments, process involved and general aspect on BSL/SAIL and future challenges. It should be conducted yearly, result should reflect in CCR.

To identify supervisory skilled workers –to be trained in house and to rotate them in various sections once in 2 years.

Fast track promotion to be given for skilled workers with responsibility and empowerment.

Benefits: Huge gap of supervisory / charge man grade people envisaged in the coming years. This gap can be neutralized by this method. Also due to regular skill tests people will have a fear for failing that will make them more proactive and competent. Delegation of authority will give them sense of ownership.

For executives: presently no competency test is there:

WE propose yearly competency test based on following criteria: Total Marks: 200

1. KnowledgeofSectional/Functional/Technicalknow-how:50marks2. KnowledgeofMaterialsMgmt.Know-how:25marks3. KnowledgeofFinancialMgmt.know-how:25marks4. KnowledgeofHR/personnel/IR/generalawarenessknow-how:25marks


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5. Paper/presentation on any innovative/creative work done on the year which hasbroughtfinancialbenefittoBSL:50marks.

6. OrganizationandNationallevelawards(CII,AIMAetc),participationwithselectedpapersinseminars,quizzesetc:25marks.

Grading to be given on 0—10 scale.

This grading should be added to annual CCR.

Below 3 a second test to be given after necessary training in consultation with HR.

Above 8 for consecutive 3 years and subsequent financial benefit to company which has to be judged by ED with recommendation from HOD along with consecutive. A grade in CCR will be chosen in fast track and necessary increment to be given along with promotion. And condense course for management for at least six months.

Benefits:

1. Executivescompetencewillincreasemanifold.

2. Willreduceattritionincomingyearsofcompetition.

3. Nonperformerswillstartperforminginthefearofbeinggettingexposed.

4. Peoplewillgetmotivatedtoreachinfasttrack.

5. Growthchallengescanbetakencareof.

Management Trainee Training Module:Based on the interaction with 2007 batch MTT’s some interesting facts came up:1.30% of the MTT's want to leave SAIL may be for higher education –MBA, IAS etc. They want to utilize this one year long training period for preparations and fun. In the process contributing least for the company.

2.60% feel long one year training period make them lazy. So, after department posting after one year of training when suddenly job load starts them feel stressed causing attrition.

3.90% feel basic amenities like no sitting arrangement in department /site for documentation work, lunch etc and quarter seepage problem makes them demotivated.

TO REMOVE those barriers and effective utilization of MTT's we propose a training model based on our EPCM:

1. Trainingperiodtobereducedtothree months from one year.

First Month:a) Inductionlecture-2days.

b) Plantorientationandfunctionallectures-25days

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Second month:

a) Departmentposting,attachmentwithtrainingengineers

b) Orientationinvarioussectionsofthedepartment.

c) Onetechnicalprojectandpresentation

Third Month:

Nonfunctionalareaawareness

Material Management, Personnel, Finance with assignments not projects for 10 days in each section.

Training completes and from fourth month starts on the job training after posting in a particular section of the department.

Quarterly review by HOD.

Confirmation after one year.

One industrial complex visit after one year.

Benefits:

1. EffectiveutilizationofMTTs

2. Competencebuildingbecomesfaster.

3. Increasedmotivation,Lowattrition.Break Down Cost Analysis Monthly break down and cost analysis with responsibility of every section to be prepared and be reviewed by HOD.

Benefit: People become aware of cost of break down and take necessary action.

Knowledge ManagementEvery employee shall log knowledge pieces in their departmental hub.

Reward should be given for quality knowledge piece.

Benefit: People should be motivated to do something new and with a feeling that their creative work has been stored for future. Sense of pride will be developed.

Lateral MovementLateral movement allows organization to place people where they are needed.

Benefits: These changes allow companies to give employees new challenges, and new opportunities thus allowing them to unleash their full development and competence and potential. Thereby helping organization to meet challenges of growth.


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Psychometric TestsPsychometric tests to be conducted to judge the following parameters of workforce (For Both Ex, Non ex) from reputed institutes once in two years to know where we are.

1. Intelligence Quotient

2. Emotional Quotient

3. Irritation Quotient

4. Passion Quotient

Benefits: Psychological competency judgment will be there and necessary training for the same will develop a world class competent workforce.

MultiskillingFor new recruits:

Designation: MST: Multi Skilled Technician

Training: Necessary training to be given for fitting, welding and other trades in T&D

Scale: One grade up from general stream

For existing workers: After competency test and interview competent workers of various grades to be counselled to take up MST promotion.

Scale: one scale up and with two increments.

Benefits:

1. Skilledmanpowershortagewillreduce.

2. Workforcewillbeenergizedandmotivated..

Job Rotation, Job enrichment Job rotation to be done after necessary skill test to selected workers. With necessary increment.

Benefit: It will create motivation develop competence, reduce monotony.

Help DeskHelp desk under hospitality section to be set up to take care of employee needs when any employee is out of station in coordination with departmental personnel section.

For any official tour purpose necessary arrangement to be done by this section.

Benefit: Employee competence and potential will be unleashed manifold. Productivity will increase.


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DEPARTMENTAL WORK GROUP :Technology hub which is effectively working in HSM to be created in all main shops to take care of departmental innovative works, presentations by voluntary work groups who contributes by doing innovative projects and motivate others .

Benefit: Effective sharing of knowledge’s and awareness about outside world.

ACTION PLAN FOR FUTURE: Refer Annexure 2Based on the above discussions, surveys- questionnaires, case studies and giving and effective competence building model EPCM, we hereby suggest an action plan.

conclusion:

The detailing given above about building competency and capability has already been proved by many organizations and brought immense benefit to them. We have to make more leaders who will work like an entrepreneur in their own organization – have the capability of understanding and practicing “leadership by direction, leadership by motivation, leadership by association and leadership by delegation”.

Therefore to survive, sustain and become world leader in the era of globalization we have to build competence as per the road map above. People are our most valuable resources & building competent workforce, working with all the resources, building synergy & creating strong global marketing network, we shall win the race.

Finally for building competence and to meet challenges of growth and to get the best out of SAIL as a whole

Let Us

Begin With Faith,Drive It With Skill,Power It With Partnership,Raise It With Honesty,Distinguish It With Teamwork,Honour It With Respect,And Last But Not The Least, Let Us Imprint Our Values In The Mind Of Customers & Stakeholders.

It is the Beginning


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Reference:1. Klimp 1990 US journal.

2. Creating Intelligent Organizations Written by: Brett Richards, M.A. President, Connective Intelligence Inc.

3. Basics of Management by Dr. S. N . Pandey

4. People and Performance: The best of Peter Drucker on Management by Peter F Drucker.

5. MTI Growth Journals

6. SAIL News

7. Beyond HR: The new science of Human capital by John W Boudreau.

8. Unleash the power of your workforce by Sharon K. Parker

9. Managing individual and group behavior in organization by Daneil C feldman and Hugh J Arnold.

10. Work and motivation by Victor H Vroom.

11. S.K. Parker, 'From passive to proactive motivation: the importance of flexible role orientations and role breadth self-efficacy,'Applied Psychology: An International Review, 49 (3), pp. 447-469, 2000.

12. Unleashing the power of creative collaboration by Carol Kinsey Goman

13. M. Hucelid, ‘The impact of human resource management practices on turnover, productivity and corporate financial performance' in Academy of Management Journal, 38, p. 645, 1995.

14. D.J. Campbell, 'The proactive employee: managing workplace initiative,' Academy of Management Executive, 14, 52-66, 2000.


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Annexure - 1

(A)

Questionnaire 1: Where are we?Dear colleagues,

We are submitting a paper on the theme selected for chairman’s trophy for the year 2008 – 09 on “Building Competencies for Meeting the Challenges of Growth”. In order to gain an insight into the present state of mind sets, in our organization, we as a team has devised certain questions. It’s an utmost request to please fill your choice and if required give your comments.

Regards

Harishanker Singh

Debabrata Chowdhury

1. WhatdoyouthinkaboutBSLonoverallperformanceinIndia?a)Excellentb)Verygoodc)Goodd)Averagee)Don’tknow.

2. DoyouthinkaverageemployeeofBSL,workwiththeir60%potentialormore.

Yes No

3. HowdoyourateyourselfinusingyourcompetenceandskillsforBSL.(rateinthescaleof1–5).

1 2 3 4 5

4. Doyou feelBSL/SAILwillbe able to sustain itsmarketpositionwith its existinghumanresourceperformance/utilization?

Yes No

5. Doyoufeelyouarepostedatrightplaceasperyourcompetency?

YesNoDon’tknow

6. Whether the competency level of SAIL/BSL matches with world standard .If noanswerQsno.7?

YesNo

7. WhatisthelevelofcompetencyofSAIL/BSLw.r.t.world,asyoufeel?(scale1—5)

1 2 3 4 5


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8. WhatisyourlevelofcompetencyinSAIL/BSL?(scale1—5)

1 2 3 4 5

9. What%ageofyourcompetenceisbeingutilizedinSAIL/BSL?

25% 50% 75% >75%

10.Whatisyoursubordinatesaveragecompetencylevel(Nonexforjuniorofficersandexforseniorofficers)

<25% 25-50% 50-75%>75%

11.Doindividualcompetencyhelpsinorganizationalgrowthifyesuptowhatlevelwritein%age?

Yes No

12.Isitpossibletoincreasecompetencyofindividualatanystageofhis/hercareer?Ifyeswritehow(3points)

Yes No

13.Isthereanyneedofbuildingcompetencyformeetingchallengesofgrowth?

Yes No

14.InSAIL/BSLwhatisthelevelofsafetyandhousekeeping,rateinscaleof1–5.

1 2 3 4 5

15.Dosafetyandhousekeepingaffecttheindividual’sperformance/competence?

Yes No

16.Dobasicamenitiesatworkareaandwelfarefacility,effectsindividualperformance.

Yes No

17. Doyou feel thatproblem’s related toyoursandyour family’s comfortaffects yourpotentialatwork.

Yes No

18.Howdoyourateyourfamily’scomfortprovidedbySAIL/BSL.(Rateinscaleof1–5).

1 2 3 4 5 Optional

Name: Designation:

Age: Department:


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(a-1)

Q1) WheredoyourankBSLw.r.t.overallperformanceinworld?

1–3%2–18% 3–63% 4–11% 5–5%

Exe– 1–0%2–6% 3–73% 4–15% 5–6%

Non-exe1–0%2–12% 3–60% 4–16% 5–12%

Q2) WheredoyourankyourpotentialutilizationinBSL?

1–7% 2–21% 3–61% 4–9% 5–2%

Exe– 1–2% 2–13% 3–49% 4–22% 5–4%

Non-exe1–5% 2–7% 3–72% 4–10% 5–6%

Q3) Whatisthecompetencelevelofhumanresourceofbsl?

1–0% 2–30% 3–56% 4–11% 5–3%

Exe– 1–0% 2–0% 3–73% 4–21% 5–6%

Non-exe1–0% 2–4% 3–68% 4–20% 5–8%

Q4) Doyoufeelbasicamenitiesinplantandoutside,safety,envirnomentandotherfacilityeffectsonceperformanceandcompetencydevelopment?

1–7% 2–15% 3–13% 4–59% 5–6%

Exe– 1–4% 2–28% 3–43% 4–20% 5–5%

Non-exe1–0% 2–4% 3–44% 4–41% 5–11%

Q5) Whatdoyoufeelabouttheaveragecompetencyofyoursubordinate?

1–12% 2–28% 3–36% 4–17% 5–7%

Exe– 1–0% 2–6% 3–56% 4–21% 5–17%

Non-exe1–0% 2–12% 3–44% 4–32% 5–12%


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(B)

Questionnaire 2: Questionnaire on “Need of building competence for meeting challenges of growth”.Dear colleagues, We are submitting a paper on the theme selected for chairman’s trophy for the year 2008 – 09 on “ Building Competencies for Meeting the Challenges of Growth”. In order to gain an insight into the present state of mind sets, in our organization, we as a team had devised certain questions. It’s an utmost request to please fill your choice and if required give your comments.

RegardsHarishanker Singh

Debabrata Chowdhury

1– Strongly Agree

2– Agree

3– Undecided

4– Strongly Disagree

5– Disagree

1. Yourtasksandtargetssuitsyourcompetenceandcommitmentlevel.

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2. Youfeelcompetentenoughtotakedecisionspertainingtoyourworkdomain.

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3. Yourdecisionsareacceptedbyyourpeers,superiorsandteams.

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4. YoufeelSAIL/BSLwillmeetthefuturechallengesofgrowth.

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5. Youfeeltherearenochallengesinthecomingdays.

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6. YoufeelproudinworkinginSAIL/BSL.

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7. Yougiveatleast80%ofyoureffortinachievingtargets.

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8. Youareselfmotivatedtotakeupjobswithoutbeingplannedbyyourboss.

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9. Youaspiretoworkwithoutanyinterferenceunlessaskedfor.

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10.Yourcreativeandinnovativeenthusiasmdecreasingwithage.

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11.Youdoyourjobforyoursatisfactionandgrowth.

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12.Youareawareoffinancialimplicationsofinputrawmaterialsincomingdays.

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13.Youfeelthereisamechanismforcompetencymappingandskillgapidentification.

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14.Youfeelthereisaneedofbuildingcompetentworkforcetomeetthechallengesofgrowth.

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15.Youfeelcompetencymappingtestofworkforce(bothexandnonex)isrequired.

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16.Youfeelpeopleavoidtests,presentationswithafeelingofbeingexposed.

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17. Youfeelyourpotentialwillbebetterutilizedindifferentsections.

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18.Youfeelyouhaveknowledgegapforthetaskinhand.

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19.Youfeeltechnologyhubisagoodconceptforcompetencebuilding.

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20.YoufeelthereiswidefocusoncontinualimprovementofcompetencybasedprocessinSAIL/BSL.

12345 Comments:

Optional

Name: Designation:

Age: Department:


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(B-1)

Q1) Howpeoplerankthemselvesintheircompetencylevel?

Overall 1–0% 2–5% 3-61% 4–20% 5–14%

Below45yrs 1–0% 2–8% 3-60% 4–21% 5–11%

Above45yrs 1–0% 2–2% 3-62% 4–19% 5–17%

Q2) Howpeoplerankorganizationalcompetencyw.r.tworldstandard?

Overall 1–5% 2–15% 3–73% 4–5% 5–2%

Below45yrs 1–3% 2–18% 3–70% 4–7% 5–2%

Above45yrs 1–7% 2–12% 3–76% 4–3% 5–2%

Q3) Howpeopleranktheirteamcompetencylevel?

Overall 1–0% 2–13% 3–56% 4–23% 5–8%

Below45yrs 1–0% 2–7% 3–59% 4–22% 5–12%

Above45yrs 1–0% 2–19% 3–53% 4–24% 5–4%

Q4) Effectofcompetencymappinginincreasingcompetencelevel.

Overall 1–3% 2–15% 3–70% 4–9% 5–3%

Below45yrs 1–0% 2–13% 3–68% 4–15% 5–4%

Above45yrs 1–6% 2–17% 3–2% 4–3% 5–2%

Q5) Howyourankmotivatingfactor(reward,incentive,recognition,fasttrackcarreeradvancementetc.)asamaincriteriaforincreaseincompetencelevelofindividualandteam.

Overall 1–4% 2–9% 3–16% 4–58% 5–13%

Below45yrs 1–1% 2–5% 3–18% 4–60% 5–16%

Above45yrs 1–7% 2–13% 3–14% 4–56% 5–10%


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(c)

Questionnaire 3: Questionnaire on “How to build competence for meeting challenges of growth”.Dear colleagues,

This questionnaire is with two option, and we as a team, request you all to please respond it honestly in brief, so that we will be able to correlate ours perceptional theory and organizations perception and prejudice & to prepare an action plan / suggestions to build competence of our human resource.

Regards

Harishanker Singh

Debabrata Chowdhury

1. Whatarethemotivatingfactorsthatwillhelpyoutoworkatfullpotential?

Rateinscaleof(1-10)

a) Appreciationandreward.

b) Jobrotation.

c) Paydifferentiationasperpotential.

d) Overalldevelopment.

e) Encouragementofinnovative/creativeideas,evenifitfailsatfirststage.

f) Identificationofnon–performersandtakingthemtotask.

2. Do you think that skill / competence mapping, required for both Ex and NonExecutivesinSAIL/BSL.

Yes No

3. HowtobuildcompetenceofanindividualinBSL/SAIL?Write3points.

4. Whiledoingsomegoodjob,whetherpeoplearerewardedinSAIL/BSL.

Always Occasionally Rarely Never

5. Ifyesinabovequestion,whetherrewardisappropriate&motivatesyouinimprovingyourcompetence.

Yes No

6. Do you feel multiskilling of workforce will help SAIL / BSL in increasingproductivity?

Yes No


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7. Ifyesinabovequestion,whyaccordingtosurvey,SAIL/BSLisnotgettingbenefit.(rateinscaleof1–10)a) Inadequate&Impropertraining.

b) Attitudinalchange

c) Motivatingfactor.

d) Equalpayforunequalwork.

e) Icebreakingfromtopmanagement.

f) Lateralmovementataverylowlevel.

g) Anyotherpleasewritehere–

8. DohighoraboveaveragecompetentandskilledpeopleareleavingSAIL/BSL,duetoimproperdevelopmentandlesspaypacketwithrespecttotheirprivatecounterparts

Yes No

9. Heavyjobload,withsameorlessbenefitsresultstodissatisfactionandhencehighattritionlevel.

Yes No.

10.Isitpossiblethatgoodleaderscanchangethemindsetofemployees?

Yes No

11.Wherewe(SAIL/BSL),standcomparedtoourcompetitors,withrespecttofollowing.(Rateinscaleof1–5).

a) Training– 1 2 3 4 5

b) Reward– 1 2 3 4 5

c) Leadership– 1 2 3 4 5

d) Careeradvancement– 1 2 3 4 5

d) Performancebasedpromotion– 1 2 3 4 5

e) Jobasperknowledgeandtrait- 1 2 3 4 5

12.What do you think in SAIL / BSL, performance related to proper utilization ofhumanresourceinlastfiveyears.

Nochange Good Better Worsened Don’tKnow.

13.Whatistheaffectofkeepingsoundmental/physicalhealth,inincreasingpotential,(e.g.–yoga,aerobicsetc).

Rateinscaleof1-5.

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14.DoyouthinkthatinSAIL/BSL,the3600communicationsystemispredominant?

Yes No


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15.Doemployeeempowermentanddelegationofauthorityleadstoincreaseinemployeecompetence?

Yes No

Optional

Name: Designation:

Age: Department:

(C – 1)

Q1) Leaderswithpassionofworkandmotivatingteamwillbeabletobalancethe

situationandincreasecompetencyoftheirpeople.

Overall 1–0% 2–5% 3-22% 4–48% 5-25%

Q2) Do spares and other facilities important for work effects in performance or

competency.

Overall 1–0% 2–17% 3-28% 4–41% 5-14%

Q3) Motivating factor, competence mapping of all in real sense and training can

improvethecompencyofall.

Overall 1–5% 2–16% 3-33% 4–38% 5-8%

Q4) Fasttracksystemofcareeradvancemantwillhelpinincreasingthecompetency

oflowperformersandmotivateotherstodobestofall.

Overall 1–2% 2–3% 3-41% 4–47% 5-7%

Q5) Fororganizationalgrowthandcompetencyofall,abalanceofjobinsecurityif

imposedforcefully,itwillhelpinperformanceofindividual.(likereportingof

goodjobandbadjobforboth)

Overall 1–0% 2–11% 3-57% 4–29% 5-2%


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Annexure-2

Table:2

Sl. No.

Parameters Action to be taken

Responsibility Time frame Remarks

1 Skill,competence gap identification and effective training. For both EX and NON EX

Requirement of training to be identified as per job demand.

Sectional training engineer and controlling officer

Test to be done once in a year

After identification of needs and competence mapping to be referred to HRD.

2 Good communi-cation and infor-mation sharing.

Information flow from top to bot-tom to be fast.

As per Hierarchy

Continuous Present and future scenarios, challenges to be discussed.

3 Counselling to change mindsets

Mental blocks, personal egos to be changed .

Controlling officers.

As and when required.

Unlearning of older concepts and migrating to newer ones.

4 Motivation technique

Role of employees to be highlighted. Performance based incentive rewards to be given.

As per hieararchy

HR department

Regular Creation of owner ship concept.

Competence unleashed.

5 Knowledge management

Knowledge pieces to be restored for better knowledge sharing.

HOD Regular Innovativeness and crea-tivity unleashed through knowledge hub. incentives to be given regularly for good job done.

6 Multi skilling Job rotation Job enrichment

Multi skilling training to be provided. Job rotation to be encouraged to avoid monotony.

HOD's with the help of HRD

Regular Competent work force , Challenges can be taken with less manpower.

7 Responsibility and decision making

More responsi-bility & author-ity down below to be delegated.

Sectional /area incharge

Continuous Changes attitude. Leadership and ownership competence developed.

8 Visits /tours learning from each other.

Inter plant and abroad visits.

HOD Regular as per requirement

Exchanges of minds and getting a feel about what others are doing . can get idea of benchmark.

9 Technology hub All main shops to have a technology hub as in HSM.

HOD, GM (HRD)

Within six months

Regular knowledge sharing through presentations . reference through journals books internet and news papers.


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finalistA Rituraj, Sr. Manager, (U&S)

Ms Ruma Bharti, Sr. Manager, (Elect) Manish Kumar, Manager (U&S)

Centre for Engineering & technology

intRODUCtiOn

The Indian steel industry has entered into a new development stage from 2005-06, riding high on the resurgent economy and rising demand for steel. Rapid rise in production has resulted in India becoming the 5th largest producer of steel. It has been estimated by certain major investment houses that, India’s steel consumption will continue to grow at nearly 16% rate annually, till 2012, fuelled by demand for construction projects. The scope for raising the total consumption of steel is huge, given that per capita steel consumption is only 40 kg – compared to 150 kg across the world and 250 kg in China 7.

The rapidly changing steel landscape in the country has brought about numerous challenges as well as opportunities to the major steel producer like SAIL. SAIL has envisaged an ambitious modernization and expansion of its various steel plants, but the question before our organization is ---

How to gear up to face the challenges of growth in this scenario?

It naturally follows that we have to build the competencies levels of our employees in such a way so that they can give output to meet their performance goal fixed by the level of desired growth.

Challenge of Growth Competency

SAIL CETSurvey for

Organisational &Individual

CompetencyMapping

Organisational

Individual

SupplementarySurvey for Plant

Methodology / Analysis / Result & Feedback

Roadmap for Building Competencies


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This paper looks into ways & means for building competencies among the employees of CET. The paper starts by looking into challenges of growth faced by SAIL in general & CET in particular. CET’s role in meeting the challenges has been analysed & based on them, factors required for organisational competencies are selected.

Components of individual competencies have been identified by literature survey for individual competency mapping.

Based on the selected factors of organisational & individual competencies a survey has been conducted among the employees of CET. The results of the survey has been analysed & is compared with the survey taken in the plants about CET’s performance for data validation. In this way existing competency levels have been arrived at.

Further to this, with the help of literature and survey findings & discussion with the employees this paper tries to identify major areas of thrust required for strengthening existing competency level. Finally suggestions are given how to build competency levels in these thrust areas.

To know whether our findings are only applicable to CET or in general reflected the opinion of SAIL collective we also conducted a supplementary survey among the executives of plant. The results obtained were compared with the results of main survey for CET employees.

CHallEnGEs Of GROWtH faCED BY sail

The challenges and hardships of the organizations have become multi directional. SAIL has to tackle both global as well as local competitor. It is the need of the hour to embrace and acknowledge changes in response to the global trends. Competition has raised the bar and organizational performance is judged upon new benchmarks. In this environment there are many challenges faced by SAIL. Some of the major challenges our company is facing today are:

1. RawMaterialLinkages

The shortfall in raw material capacity has lead to unprecedented price hikes e.g. iron ore and coal. Therefore owning raw material will become a greater source of competitive advantage in the future. Following measures are required for long terms security and availability of raw material.

Acquisition and mergers of iron ore and coal mines through strategic relationships and partnership

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Increase in productivity and quality of product by modernization of existing mines

Reduction in import dependence by high level of beneficiation of existing coal and iron ore deposits.

Innovative investment and logistic solutions in road, port and railway sectors for handling the large volume of material as per enhanced production plan.

2. EliminatingTechnologicalObsolescence

Technology is the driving force in today’s fast changing environment. Radical development in technology and increased competition from substitute materials have profound impact on our strategic plans.

This in turn calls for selection of new advanced and innovative technologies with better production efficiencies.

3. EnrichingProductMixwithqualityoutput

Another area of challenge is to develop new, superior grades of steel that provide enhanced value to the customers. With continuous changes taking place in IT, automation, process control and standardization, customers’ assessment about quality competitiveness itself has changed.

This requires further augmentation of quality assurance systems with focus on process and quality enhancement. Backward integration by high demand customers calls for varying quality assurances suiting their requirements. Steel industry faces growing challenges with respect to ever stringent quality demand by the customers.

4. DevelopmentofHumanResources

It has been planned to produce 60 MT production with less than 1 lac manpower which translates into labour productivity – 800 T/M/Y. To meet these challenges posed by added capacity enhancement, introduction of new technology and as well as cater to market expectation our workforce is to be highly motivated, educated and energized. The challenges posed before our current workforce are as

Ageing workforce resulting in loss of critical skills and experience

Shrinking talent pool leaving in fewer skilled resources

Talent from the company are leaving for greener pastures

The attitude , values and career expectations of the workforce is becoming more demanding

Making the workforce familiar with the new technology

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5. CustomerService,DistributionandLogistics The market today is driven by the customer. In order to increase the market share

in steel we have to move closer to the customer understanding their needs and problems. This would require

Strengthening our existing distribution network by providing warehousing services, extending our marketing facilities to new towns and cities, electronic ordering, shipping options.Improved customer relationship and satisfaction level by technical advice. After sales service, financing alternativesTo create an atmosphere that will help build customer loyalty that lasts for years

6. EnvironmentalProtection&EnergyOptimisation Being part of the country’s problems in energy, water, pollution, resource,

environment, and land use management, our company has to be at the leading edge of technologies for optimum use of all these resources to enhance value.

7. ProjectManagement

Proper implementation of projects running into thousands of crores is by no means an easy task. The challenge ahead of SAIL in the area of project management is to achieve all the project goals and objectives while adhering to classic project constraints—usually scope, time and budget. The secondary—and more ambitious—challenge is to optimize the allocation and integration of inputs necessary to meet pre-defined objectives.

ROlE Of CEt tO MEEt tHEsE CHallEnGEs

It is evident that to meet the challenges of growth CET has major role to play especially in the following areas:

Being the inhouse consultant of SAIL, CET becomes nodal agency for strategic planning to suggest roadmap of growth.

CET has also to play major role in acquiring & implementing new technologies in different plants & mines taking into consideration energy & environmental aspects. This can only happen if existing knowledge base of CET is widened by developing its human resources.

Finally to reap the full dividends of modernization, CET has to work in tandem with plants for timely completion of the projects without cost overrun. This will require building of trust with specific focus to client needs.

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Hence it can be easily concluded that to provide innovative design & engineering solution to meet the challenges of growth CET has to built organisational competencies in the following areas

1. Organisational & Strategic Planning

2. Development of human resources by proper job orientation, fulfillment of training needs & ensuring motivation with tools of rewards & recognition.

3. Enrichment of its knowledge base by Knowledge Management

4. Aligning towards client needs by Goal Alignment

ORGanisatiOnal & inDiViDUal COMPEtEnCY MaPPinG

In this competency era it is beneficial and cost effective to have competent people to occupy work positions. Competency mapping identifies an individual’s strengths and weakness in order to uncover the gap that exists between the present competency and the competency needed to reach the strategic goals in the future.

But before coming to competency mapping we should first understand what is competency?


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Competency1 is an underlying characteristics of a person, which enables to deliver superior performance in a given job, role or situation. The competency is the cumulative result of the presence of three components. These components are

Knowledge : Information that is organised, learned and applied through experience, study or investigation.

Skills : Results of repeatedly applying knowledge or innate potential to perform mental and physical actions or tasks

Attributes : Individual traits, values, motives and attitudes that indicate an employee’s probable behaviour.

In order to excel in a particular role, all the three components are mandatory.

In the absence of attributes, the competency becomes a hidden competency. Attributes include motives, self concept and traits. Knowledge and skills tend to be visible and are relatively surface characteristics of people. But attributes which consists of attitude, traits and motives are more hidden, deeper and central to personality. Surface knowledge and skills are relatively easy to develop. But core motive and trait competencies are at the base of the personality iceberg and more difficult to assess and develop as shown in figure.

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Icebergmodelofcompetencies,2,3

Motives ‘drive, direct and select’ behaviour towards certain actions or goals. For instance achievement motivated people consistently set challenging goals for themselves and use feedback to do better. A persons’ attitude, values or self image such as self confidence, a person’s belief that he can be effective in any situation is a part of that person’s concept of self.

The primary asset to the organisation is the influence that can be exerted on human attitudes and thus behaviour patterns through the development of a sound organisational culture. A secondary asset is the influence on trading partners and customers from a set of sound and fair organisational values and beliefs.

Clearly before embarking on a programme of change it is important to establish the state of the current culture within the organisation.

To gauge the current state of competencies in the organisation it is necessary to decide upon the factors upon which they can be mapped. The value of defining ‘organisational competencies’5 is that it firstly encapsulates the vision of our organisational culture, secondly it provides the starting point for all subordinate competencies and thirdly it demonstrates to individuals how their individual competency links into the greater scheme of things.


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So, how will organisations define the factors for organisational competencies? This will of course be specific to each organisation. As explained earlier in this paper the factors for organisational competencies were selected based on the role CET has to play in meeting challenges of growth for SAIL collective. The same is reproduced below

Organisational & Strategic Planning

Job Orientation

Training Needs

Knowledge Management

Rewards & Recognition

Goal Alignment

With the help of literature survey parameters for individual competencies were selected & were divided in five major groups :

People & Organisational Competencies

Decision Making Competencies

Motivational Competencies

Personal Competencies

Interpersonal Competencies

Based on the selected factors for organisational & individual competencies a questionnaire was prepared for survey analysis, details of which are given in the following section.

sURVEY MEtHODOlOGY & assEssMEnt

To assess the existing organisational & individual competency level of our workforce, a survey was designed. The survey contained two sets of questionnaire, one containing 25 statements for organisational competency mapping and second containing 45 statements for individual competency mapping. The formulation of statements was based on the factors that we have discussed in earlier paragraphs. The statements were framed in such a fashion that they can be answered in four-point scale of strongly disagreeing to strongly agreeing. The survey statements/questions are attached at Annexure I.

The survey was done by distributing the questionnaire to a sample workforce of 100 individuals. The sample workforce included randomly selected employees of all grades from a total strength of about 234 employees of CET units from Ranchi & sub centers.

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Grade wise distribution of employees in the sample has been given in the pie chart

22%

26%

19%

33%

E1-E3 E5-E5 E6 E7-E9

The survey results were quantified by following methodology

1. The statements were such that they can be answered in multiple choice type format on a four-point scale. This scale was balanced and marked between two extremes of strongly agreeing to strongly disagreeing to the statement.

2. Every statement was related to a competency sub factor. All the sub factors for a particular competency set were weighed on different scale considering the grade & its particular importance in the organisation.

3. On numeric terms strongly agreeing to a positive statement fetched 4 points, while somewhat agreeing to it fetched 3 points. Similarly somewhat disagreeing to a positive statement resulted 2 points & strongly disagreeing to it 1 point.

4. Considering the original response & taking the consideration of weighingfactor,scalewasconvertedinnumerictermsinthescaleof100.

5. Finalvalueofcompetencyfactorwasthencalculatedbasedonweighedmeanaverageofcompetencysubfactors.


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6. Interpretationofscoresweredonebasedonfollowingtable

Scores Interpretation

>75 StronglyAgreeing

62.5-75 SomewhatAgreeing

50-62.5 SomewhatDisagreeing

<50 StronglyDisagreeing

We certainly do not claim that the absolute value thus obtained gave us the competency level of individuals with no error. The survey is as liable to error as any survey of such kind. We may have many non-serious answers as well as unintentional errors. But the results have certainly given us the direction & pointers for building competency roadmap to meet the challenges of growth.

Data analYsis & intERPREtatiOn

1 OrganisationalCompetencies The whole response sets were divided in two different sections. In first section,

responses to 25 questions related with organisational competencies were analysed. The response of workforce on six selected factors of organisational competency is taken up one by one.

I. Organisational & Strategic Planning In questions related to organisational & strategic planning respondents were

asked questions related to their

Knowledge of future work areas

Time Management for Engineering Activities

Identification of development needs of employee

Job planning & Work Strategy

The response across all grades was found to be almost uniform in the range of 70 to 75, which indicates that majority of respondent somewhat agreed to the fact that sufficient impetus is given in their organization for planning of their work on short & long term basis.

A

A

A

A


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E1-E3 E5-E5 E6 E7-E9

100

90

80

70

60

50

40

II. Job Orientation

In questions related to job orientation respondents were asked whether

Proper guidance and exposure for execution of job is given to them

Emphasis on learning and developing skill sets are there

The response across all grades was pretty uniform & somewhat similar to that observed in case of organisational strategy & planning. The results also corroborates the fact that CET has absorbed seamlessly employee with different plant & mining background.

E1-E3 E5-E5 E6 E7-E9

100

90

80

70

60

50

40

As shown below the survey result also pointed that the questioning about work issue is encouraged in our organisation which has a positive effect on job orientation

A

A


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SurveyStatement Workforce’sResponse

I feel that asking question & raising issues about work is encouraged in our organisation 40 50 60 70 80

E1-E3

E4-E5E6

E7-E9

III. Goal Alignment

Regarding goal alignment the statements in the questionnaire were related to

Awareness about technological changes required

Alignment of individual performance with organisation’s vision

Keeping employee informed about major strategic decisions

The result we found was quite interesting. In general the whole sample population felt that they are only somewhat aligned to the company’s goal. However except at E6 level alignment was gradually increasing with increase in grade. But this trend took a dip in E6 grade. This indicates that some disillusionment with the company’s goal is perceptible in employees within this grade. This may be due to one or the combination of factors as indicated below

Lack of motivation level due to stagnation in the organisationFeeling of being left out in strategic decision making.

40

50

60

70

80

90

100

E7-E9E6E4-E5E1-E3

A

A

A

A

A


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IV. Rewards & Recognition

To judge the impact of current mechanisms of rewards & recognition the respondents were questioned about

Satisfaction with appraisal systemEncouragement for experimentation with new ideasInclusion of everyone’s opinion irrespective of grade Encouragement for solving organisational problems

The overall trends considering all above factors are depicted in the graph below

40

50

60

70

80

90

100

E7-E9E6E4-E5E1-E3

The results clearly showed that existing tools for rewards & recognition are not motivating enough for the middle management level. Dissatisfaction with the previous appraisal system was evident in E4, E5 & E6 levels which opined that previous appraisal system was not somewhat identifying their talent ability. Similarly this group also feels that more recognition & encouragement should be given to the people with new ideas & thinking.

Survey Statement Workforce’s Response

I feel that current appraisal system identifies my talent ability

40 50 60 70 80

E1-E3

E4-E5

E6

E7-E9

AAAA


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I feel that employees are recognized or rewarded for experimentation with new ideas

40 50 60 70 80

E1-E3

E4-E5

E6

E7-E9

The above bar graph shows the response of workforce on some specific questions.

V. Knowledge Management

In questions related to Knowledge Management respondents were asked whether in their opinion

Cost and technical data management system exists

Emphasis on knowledge sharing is there

Exchange of information with clients /customers

It came out (as shown in graph below) from the response across all grades of employees & especially those from middle management level that existing system for knowledge management needs to be further strengthened to increase their working effectiveness.

40

50

60

70

80

90

100

E7-E9E6E4-E5E1-E3

VI. Training Needs

To gauge the fulfillment of training needs in the organisation questions were asked about

Importance of training in organisation

A

A

A

A


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Existence of knowledge gap in work area

Training as per individual’s technical and managerial needs

40

50

60

70

80

90

100

E7-E9E6E4-E5E1-E3

Satisfaction level of junior & senior management level with existing training system was slightly more than the middle management level. Respondents in general felt that further emphasis is required on training to fill the knowledge gap in their areas.

2 IndividualCompetencies In second section, responses to 45 questions related with individual competencies

were analysed. The response of workforce on five selected factors of individual competency 4,6 will be taken up one by one.

I People & Organisational Competency

The competency was further subdivided into the following factors & questions were framed on them

Managerial Control

Long Term Planning

Customer Orientation in terms of response time & focusing on client needs

Task Leadership

Delegation

Staff Development

Sharing Knowledge

A

A

A

A

A

A

A

A

A


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In deciding the weighing factors for sub competencies, these factors were carefully chosen depending upon the grade of the employee. For example sub competencies like delegation ability, staff development got higher weightage for senior management level & the weightage decreased for lower levels.

The overall trends considering all above factors are presented below

40

50

60

70

80

90

100

E7-E9E6E4-E5E1-E3

The response of the workforce was quite encouraging and they strongly feel that they have required competencies in these areas of their work.


TaskLeadership

I feel that I am willing to take extra load in case my team member is unable to perform his proper role in a project

50 60 70 80 90 100

E1-E3

E6

CustomerOrientation

I keep track of problems faced by plant personnel in my area of work

50 60 70 80 90 100

E1-E3

E6


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II Motivational Competency

Motivation among employees is a key word for any organisation on the path of growth. To ascertain the existing motivation level of employees questions related to following areas were asked

Energy LevelSelf DevelopmentInitiativeAmbition to GrowCommitment

40

50

60

70

80

90

100

E7-E9E6E4-E5E1-E3

It was heartening to note that in spite of dissatisfaction with present tools of rewards & recognition employees across all grades are somewhat motivated.

III Decision Making Competency

Decision Making Competency of the workforce was analysed on two scales. This was done because any decision making process involves application of skill sets as well as managerial abilities. These two factors were further subdivided into

Skill Sets to Make Decision

Conceptualisation

Problem Solving

Numerical Analysis

A

A

A

A

A

A

A

A

A


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Managerial Attributes

Judgment

Decisiveness

40

50

60

70

80

90

100

ManagerialSkill Sets

E7-E9E6E4-E5E1-E3

Survey results showed that while majority of respondent agreed that they have the skill sets to arrive at decision but they have some problem in executing those decisions. To investigate further on this trend we analysed responses to specific questions related to these areas.


Decisiveness

I feel that in case of conflict between/difference of opinion among the team members, I don’t take the matter to the highest level

50 60 70 80

E1-E3

E4-E5

E6

E7-E9

Judgmentinpressuresituation

I feel pressurized when judgment of decision rests on my shoulder

50 60 70 80

E1-E3

E4-E5

E6

E7-E9

A

A

A


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It was clear that people prefer to take the problem to the higher level instead of solving it at their own level. This has also reflected negatively in the responses such as judgment taking ability in pressure situations.

IV Inter Personal Competency

Any consultancy organisation can only thrive if it has conducive team environment with employees having high interpersonal skills. To map the interpersonal skills of the workforce questions were asked in the following areas

Team Work


Persuasiveness

Impact & Influence

Listening

Sociability

40

50

60

70

80

90

100

E7-E9E6E4-E5E1-E3

Survey results show a very rosy interpersonal environment among the employees of CET with respondents highly rating their competency in above mentioned factors.

V Personal Competency

There are certain traits of individual which are inherent to his personality. Organisation needs to know about quantum of these traits in individual employee for their role identification & proper utilisation. Questions were asked from the respondents regarding following factors of personal competency

Adaptability

A

A

A

A

A

A

A


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IntegrityLack of EgoStress Tolerance

Compliance

In general workforce responded positively on the factors of integrity & lack of ego. However specific questions on adaptability, stress tolerance & compliance yielded some interesting results


StressTolerance

I feel that intense pressure situations doesn’t affect my quality of job negatively

50 60 70 80

E1-E3

E4-E5

E6

E7-E9

Adaptability

I feel that working in team with people of diverse thinking doesn’t affect my performance negatively

50 60 70 80

E1-E3

E4-E5

E6

E7-E9

Compliance

I feel it is always better to follow managerial hierarchy to pursue a job

50 60 70 80

E1-E3

E4-E5

E6

E7-E9

It can be inferred from the above bar graph that middle management level has a relatively low stress tolerance & adaptability problem compare to other levels. This may be due to higher distribution of work load in these levels. Another trend which was observed that there was tendency to bypass hierarchy across middle & senior management levels.

3 OutcomeofSurveyAnalysis Based on the analysis we can identify our strengths & weakness in terms of

organisional & individual competencies.

A

A

A

A


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STRENGTH

Adequet Planning & Organising Impetus

Proper Job Orientation

Alignment with the Organisational Goals

WEAKNESS

Lack of decisiveness in pressure situation

Tendency to bypass hierarchy

Low adaptability & stress tolerance in middle mgt. level

WEAKNESS

Inadequate knowledge Management

Need for improvement in existing Training System

Dissatisfaction with present reward & recognition tools

STRENGTH

Proper Team Work & Inter Personal Environment

Satisfactory level of self motivation

Effective task leadership & customer orientation

OrGANISATIONALcOMPETENcIES

INDIvIDuAL cOMPETENcIES

It is a well known fact that individually people have the tendency to overrate their abilities. Therefore any such analysis will be incomplete without validating the results with the customer’s feedback. So a customer feedback survey was conducted the details of which is given in the next section.

4 Customer’sFeedback To get the feedback of CET’s performance from customers a questionnaire was

prepared and distributed among 60 employees from E1-E8 grade of BSP, RSP & ISP in whose area, CET is presently or in the past has been involved as a consultant. The survey statements/questions are attached at Annexure II.

CET’s performance was evaluated on following four parameters

1. Response time including time taken to take up assignment & time taken for reports preparation

2. Clarity & precision in specification writing

3. On site support


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4. Preferred Consultant

40

50

60

70

80

90

100

PreferredConsultant

On Site SupportClarity & Precisionin Specification

Response Time

In all the areas respondents somewhat to strongly felt that CET is able to provide its services. However, relative lower score was given in clarity & precision in specification writing pointing the need of further scope of improvement in this area.

So, it is evident that customer’s feedback is more or less in line with individual & organisational competency mapping. Results of these analysis emphasize that though we are on the right track, we need to move further up the ladder by building our competency levels.

5 SupplementarySurveyforPlants Organisational & Individual Competency mapping for the executives of CET

gave certain pointers to the areas where existing competencies level within the organisation is adequate or needs further improvement. However the question which naturally came to our mind was whether the trend shown by survey are unique to CET or they have some wider ramifications?

To arrive at the just conclusion for the above question a random survey of 60 executives of BSP, RSP & ISP based on the questionnaire given at Annexure-III was conducted. The questionnaire given to plant was similar in nature to those given to employees of CET in our main survey. However, few questions were rewarded so that they become more relevant to the plant working environment. Response of the workforce to various factors were tabulated as per methods detailed in Ch 5 & are presented in graphical form at Annexure-IV.


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Result of the survey show more or less same trend as observed in the main survey. Plant executives also felt that their organisational competency is good with respect Organisational Strategy & Planning, Job Orientation & Alignment towards company’s goal. But their responses with respect to Knowledge Management, Training Needs & Rewards & Recognition were not so positive thus indicating further need of improvement. On individual competency front also respondent rated their planning, motivational & interpersonal competency level higher than their decision making abilities.

In view of the above it can be concluded that trends obtained in the main survey are almost identical with those of plant. However, measures required for improving competency levels will differ as per the working environment. In the present paper we have concentrated on the measures required for building competency levels of employees of CET as we are more familiar to the existing working culture & can make direct contribution in implementing the suggested measures for competency development.

ROaDMaP fOR BUilDinG COMPEtEnCiEs

Taking the cue from the survey analysis & results we have identified four major areas where thrust should be given so that we can bridge the gap present between existing & desired level of competencies among the employees of CET.

1 UsheringthecultureofKnowledgeSharing&Management

Organizations have recognized that knowledge constitutes a valuable intangible asset for creating and sustaining competitive advantages. The sharing of knowledge constitutes a major challenge in the field of Knowledge Sharing & Management because some employees tend to resist sharing their knowledge with the rest of the organization.

A.) Encouraging culture of Knowledge Sharing

Knowledge sharing within the consultancy organisation shall not only be from top to bottom levels but also from within the organisation to outside it. To make it happen following measures are suggested

1. Mandatory Knowledge sharing session for employees

Each employee in the organisation shall give minimum two knowledge sharing session per year. This will send a message that sharing of knowledge is important in organisation culture.


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2. Rewarding best knowledge sharing session on monthly basis

There are a number of obstacles that can hinder knowledge sharing. One obstacle is the notion that knowledge is property and ownership is very important. In order to counteract this notion, individuals must be reassured that they will receive credit for a knowledge product that they created.

3. Team presentation for new learning from completed projects

post project analysis in form of team presentation always helps to learn from our mistakes & building in our success.

4. Customize forum for technical discussion among the steel sector consultants.

Knowledge sharing should be also done on common technical forum between the various consultants engaged in consultancy in steel sector & in particular SAIL.

B.) Building Knowledge Management System

Knowledge Management System (KM System) refers to a generally IT based system for managing knowledge in organisations, supporting creation, capture, storage and dissemination of information. The idea of a KM system is to enable employees to have ready access to the organisation's based documentation of facts, sources of information, and solutions.

In context of CET following KM systems are required to build knowledge level gap

1. Standardisation of technical specification for each equipment & system

2. Building a modern computerised archiving system for easy access to the scanned copy of documents, drawings collected from plant & various reports issued from CET .

3. Centralised cost data information system for preparation of accurate cost estimates in optimum time.

4. Integration of plant data management system with our sub centres

All these measures will enhance the competencies of employees & in turn organisation by:

1. Sharing of valuable organizational information.

2. Avoiding re-inventing the wheel, reducing redundant work.

3. Reduce training time for new employees

4. Retention of intellectual property after the employee leaves if such knowledge can be codified.


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2 Improvement in Existing Training System

CET has both managerial & technical training system in place. Though most of the employees are satisfied with the managerial training system, further improvement is desired in meeting with technical training needs of the employees. Following measures are suggested

1. Changing mindset about training

Training shall not to be given as reward or means of relaxation.

Training should not be decided based on loading of job. Many a times people are not sent on training designated for them just because they are more loaded at that point of time.

2. Preparation of section/grade wise Technical Training Calendar for the organisation.

Similarly as per managerial training modules, technical training required for person working in particular work area shall be finalized as per employee’s grade. This will help in employee getting trained when he/she actually needs that training.

3. Development of In House Training Modules

There is considerable difficulty faced by human resource department in locating the training institutes that can provide customized solution to fulfill the training needs. In view of the above stress should be given in making more & more In House Training Modules by tapping expertise that exists in the organisation.

4. There are many new technological areas where CET as a whole has lack of experience. However, we have to accept project in these areas as per plant needs from time to time. To meet this challenge we should provide proper exposure to the executives in these areas either by technological tie up or foreign plant visits where these technologies are well established.

5. For proper monitoring of these measures employee feedback on fulfillment of his training needs to be taken & should be made part of annual training report send by HRD section.

6. Above measures can be implemented only if training department is strengthened with people having technical background.

3 Restructuring Reward & Recognition Tools

It's a proven fact that motivated work forces are critical to a company's bottom line. By recognising your people's dedication, commitment and results -- you boost their morale, increase productivity, enthusiasm and create powerful motivators.

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A


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1. Development of an appraisal system fair to expectation of most of the employees.

It is difficult to satisfy everyone as far as any appraisal system is concerned. But management should involve employees in any modification of appraisal system.

2. Role Identification: People not getting promotion should not feel left out.

It is also a fact that everybody cannot be given promotion. Good engineers are not necessarily great managers but they have a definite role to play in the organisation. The same should be impressed upon the employees in managerial workshops.

3. Encouraging people with innovative thinking irrespective of success or failure

4. Introduction of rewards for remarkable work done from time to time.

Recognition of work done by employees in open forums such as coordination committee meetings etc.

National/International Seminar/Conferences in the areas where employee has done outstanding job

Introduction of some special performance rewards such as paid vacation for the team or employees family, food & gift vouchers may also be thought of.

4 Enhancing Competencies of Middle Management Level

In the whole survey employees of middle management level who formed 60% of the survey population responded differently than the rest of the employees. They were relatively more stressed, less adaptable to pressure situations & felt some difficulty in decision making. Following measures are suggested to address these points

1. Regular planned intake for even distribution of number of employees across each grade.

Due to uneven distribution of employee across different grades, majority of E4 & E5 grade employee have no subordinate staff. In fact even in E6 levels there are many employees who do not have any subordinates. Since middle management level is main workhorse of the organisation, the work load on them should be shared. This will not only enhance their competency levels but help organisation in terms of succession planning.

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Also people from senior management level should become more involved in the problems faced by subordinates of their group in such a way that a team atmosphere is created within a group.

2. Senior management should encourage people to take decision at their own level instead of asking for solution from them. This will help in improvement in decision making & judgmental activity at the middle management level.

3. Give more responsibility like an important project or challenging assignment to people who have proven leadership ability. Work done by these individuals should be recognised in other forums so that others try to emulate them.

4. Constant efforts should be made to make individual employee part of strategic decision making.

COnClUsiOn

In a nutshell we see that to meet the challenges of growth faced by SAIL, CET has to modify, adopt & improve upon the existing system to build the competencies level further up the ladder. To meet the challenges of growth we have to build systems and values in such a way so that they survive time and people, and tie every existing and future member to a certain chosen “way of working”.

Dinosaurs are extinct today because they couldn’t adopt themselves to the changing environment.

“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change”.

– Charles Darwin


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References:Books:

1. Suhasini J & Dr. Bhojanna U : Competency Mapping Training & Management,

September 2007 issue.

2. Whiddett Steve & Hollyforde Sarah, “A practical guide to competencies”, Jaico

Publishing House,2004

3. Shermon Ganesh, “Competency base HRM ”, Tata McGraw-Hill Publishing Company

Limited, 2004 :

4. Kotwal Milind, Model & Method for Competency Mapping & Assessment, Sunrise

Management Consultancy Services, www.sunrise.net.in/CompetencyAppraisal.pdf

5. Debenham MGS, : Organisational Culture & Role of Competencies 2004

http://72.14.235.132/search?q=cache:SEimk6NDPM0J:www.qmconf.com/

Docs/178.pdf+Organisational+Culture+%26+Role+of+Competencies&hl=en&ct=cl

nk&cd=2

6. Standard Competency based interview questions Changeboard the HR Jobs

& Career Development http://www.changeboard.com/hrcircles/content

standardcompetencybasedinterviewquestions.aspx

7. Domestic Scenario of Indian Steel Industry http://padmavatipublications.com/

publications.htm

Some of the books & websites have been used for shaping ideas only hence no direct reference to paper is mentioned.


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AnnexureI

Designation:

No. of years in SAIL :

Dear Sir,

We are preparing a research paper for participating in the “Chairman’s Trophy for Young Managers” for the year 2008-09. The topic of this year is “Building Competencies for Meeting the Challenges of Growth”. We have prepared two sets of questionnaire, one for organisational culture and environment and another for assessing the competency level at which we are working.

We request you to kindly spare your valuable time and tick mark the questionnaire to help us prepare the research paper.

Thanking you,

Manish Kumar, Manager (U&S)

Ruma Bharti, Sr. Manager (Electrical)

Anujeet Rituraj, Sr. Manager (U&S)

Direction –

Please tick mark the appropriate box that matches with your opinion

Box – 1 : Strongly agree Box – 2 : Somewhat agree

Box – 3 : Somewhat disagree Box – 4 : Strongly disagree

OrganisationalCultureandEnvironment

1. I have knowledge of the project areas I will be involved in next six months?

1. 2. 3. 4.

2. I always feel that I have knowledge gap for the task in hand.

1. 2. 3. 4.

3. I am aware of major technological changes required as envisaged in SAIL growth plan upto 2020.

1. 2. 3. 4.

4. I feel that asking question & raising issues about work is encouraged in our organization.

1. 2. 3. 4.


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5. I feel employees are always recognized or rewarded for solving organisational problems.

1. 2. 3. 4.

6. I regularly read technical journals, standards etc. for improving my knowledge base.

1. 2. 3. 4.

7. I always spare time to attend knowledge sharing sessions organized by my company.

1. 2. 3. 4.

8. I feel that my section has system of maintaining cost related data of each equipment at designated place?

1. 2. 3. 4.

9. I feel that proper encouragement is given for paper publication in our organization?

1. 2. 3. 4.

10. I feel that technical information about system & individual equipment are methodical stored and made available to every one?

1. 2. 3. 4.

11. I feel that I devote most of my working time on jobs directly related to engineering activities (formulating technical specification, study client drawings and data, preparing reports etc?)

1. 2. 3. 4.

12. I feel that information exchange system with plants can be improved to give better support to clients?

1. 2. 3. 4.

13. I feel that top management keeps its employee informed about major strategic decision taken for the growth of the company?

1. 2. 3. 4.

14. I feel that training in our organization is properly emphasized?

1. 2. 3. 4.

15. I feel that enough management support is provided for attending seminar/conferences in the area of my interest?

1. 2. 3. 4.


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16. I feel that organization fulfills training need of an individual as per requirement?

1. 2. 3. 4.

17. I feel that my section has a proper system of archiving data & drawings collected during site study?

1. 2. 3. 4.

18. I feel that current appraisal system identifies my talent ability?

1. 2. 3. 4.

19. I feel that employees are recognized or rewarded for experimentation with new ideas?

1. 2. 3. 4.

20. I feel that system exists where new knowledge gets shared to individual who need it?

1. 2. 3. 4.

21. I feel that employees are provided with training on how to get results working in a team environment?

1. 2. 3. 4.

22. I feel that teams strive to include everyone’s opinion irrespective of their grade?

1. 2. 3. 4.

23. I feel my performance goals are clearly aligned with the organization’s strategic value?

1. 2. 3. 4.

24. I feel the employee way of working is aligned with the organization’s vision?

1. 2. 3. 4.

25. I feel that employee should work in one particular area to get expertise?

1. 2. 3. 4.

Competency Level1. I keep track of problems faced by plant personnel in my area of work.

1. 2. 3. 4.

2. I always keep records of past change efforts and what happened as a result.

1. 2. 3. 4.


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3. I always gather information from clients, customers, suppliers about completed/ongoing projects.

1. 2. 3. 4.

4. I am able to handle more projects in same period of time due to acquired expertise over the years.

1. 2. 3. 4.

5. I do the job for my satisfaction and growth.

1. 2. 3. 4.

6. I feel proud that I am working in SAIL.

1. 2. 3. 4.

7. I feel that employees are recognized or rewarded for helping each other learn in our organization.

1. 2. 3. 4.

8. I understand that my subordinates have different working styles and needs.

1. 2. 3. 4.

9. I am open to negative feedback from employees.

1. 2. 3. 4.

10. I feel that my rate of learning new thing has decreased with time.

1. 2. 3. 4.

11. I feel that jobs which are repetitive in nature require less time for completion.

1. 2. 3. 4.

12. I still feel that best of me in professional field is yet to come.

1. 2. 3. 4.

13. I feel that my potential will be better utilized in doing varieties of jobs.

1. 2. 3. 4.

14. I find it easy to do job personally rather through group of individual.

1. 2. 3. 4.

15. I feel that individual is more important than team to achieve organization’s goal.

1. 2. 3. 4.


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16. I feel that I am more concerned about results of my team rather than about my individual success.

1. 2. 3. 4.

17. I always go by the rule of thumb when the method is complicated.

1. 2. 3. 4.

18. I feel I always look for ways to improve process.

1. 2. 3. 4.

19. I feel after completion of job I could have done better.

1. 2. 3. 4.

20. I feel that intense pressure situations doesn’t affect my quality of job negatively.

1. 2. 3. 4.

21. I feel experts are always right and we should follow them without any questions.

1. 2. 3. 4.

22. I give sufficient time for assimilating new information & technology for better handling of future projects.

1. 2. 3. 4.

23. I have contributed to organisational data bank.

1. 2. 3. 4.

24. I feel at ease while using technology to communicate with my clients.

1. 2. 3. 4.

25. I feel that in case of conflict between/difference of opinion among the team members, it is always wise to take the matter to the highest level.

1. 2. 3. 4.

26. I feel it is always better to follow managerial hierarchy to pursue a job.

1. 2. 3. 4.

27. I feel that working in team with people of diverse thinking doesn’t affect my performance negatively?

1. 2. 3. 4.

28. I feel that response time for preparation of reports has decreased over the years?

1. 2. 3. 4.


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29. I learn from mistakes committed during execution of previous projects?

1. 2. 3. 4.

30. I feel that I always take on the role of coaching, mentoring & facilitating employees for their learning effectiveness?

1. 2. 3. 4.

31. I support sharing knowledge information & skills among employees?

1. 2. 3. 4.

32. I like to ask my colleagues for information about work issues?

1. 2. 3. 4.

33. I always think of new ideas to provide better technical solutions for my projects?

1. 2. 3. 4.

34. I believe that long term planning is key to achieve organisational goals?

1. 2. 3. 4.

35. I feel that when conflict arises among team members I resolve it effectively?

1. 2. 3. 4.

36. I feel that as a team member I am open and honest with one another?

1. 2. 3. 4.

37. I feel that we should take projects in the areas where we do not have previous experience?

1. 2. 3. 4.

38. I feel that get together, office parties etc. help to improve inter personal relationship and bonding among employees?

1. 2. 3. 4.

39. I feel that I am willing to take extra load in case my team member is unable to perform his proper role in a project?

1. 2. 3. 4.

40. I feel that I am able to put across my views among my colleagues with ease?

1. 2. 3. 4.

41. I feel pressurized when judgment of decision rests on my shoulder?

1. 2. 3. 4.


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42. I feel delegation of work is essential for smooth and efficient working of the project?

1. 2. 3. 4.

43. I feel that it is always better to listen my team members before formulating an opinion about a problem?

1. 2. 3. 4.

44. I feel that formulating & following a written communication is an easy job for me?

1. 2. 3. 4.

45. I feel that my intervention at many instances helped in resolving issues related to project?

1. 2. 3. 4.

AnnexureII

Designation:


Dear Sir,

We are preparing a research paper for participating in the “Chairman’s Trophy for Young Managers” for the year 2008-09. The topic of this year is “Building Competencies for Meeting the Challenges of Growth”. We request you to kindly spare your valuable time and tick mark the questionnaire to help us prepare the research paper.

Thanking you,

Manish Kumar, Manager (U&S)

Ruma Bharti, Sr. Manager (Electrical)

Anujeet Rituraj, Sr. Manager (U&S)

Direction –





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FeedbackaboutCET1. I feel response time generally taken by CET for acceptance of project is adequate.

1. 2. 3. 4.

2. I feel that time taken by CET to complete FR & TS is as per the requirement of plant.

1. 2. 3. 4.

3. I feel that quality of reports, FR & TS prepared by CET are clear and precise in their approach.

1. 2. 3. 4.

4. I feel that sufficient interaction takes place between CET and plant before preparation of FR and TS.

1. 2. 3. 4.

5. I will prefer CET as a consultant in my future projects.

1. 2. 3. 4.

6. I feel that sufficient support is provided by CET during execution of project.

1. 2. 3. 4.

7. I feel that projects in which consultancy has been provided by CET are running smoothly.

1. 2. 3. 4.

8. I feel that inhouse consultant should be done away with.

1. 2. 3. 4.

9. I feel that sufficient support is provided by CET subcentre for project execution/attending site problems.

1. 2. 3. 4.

10. I feel that overall quality of service provide by CET is satisfactory.

1. 2. 3. 4.


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AnnexureIII

Designation:


Dear Sir,

We are preparing a research paper for participating in the “Chairman’s Trophy for Young Managers” for the year 2008-09. The topic of this year is “Building Competencies for Meeting the Challenges of Growth”. We have prepared three sets of questionnaire for primary research one for organizational culture and environment, second for assessing the competency level at which we are working and third feedback about CET.

We request you to kindly spare your valuable time and tick mark the questionnaire to help us prepare the research paper.

Thanking you,

Manish Kumar, Manager (Utility & Services, CET, Ranchi)Ruma Bharti, Sr. Manager (Electrical, CET, Ranchi)Anujeet Rituraj, Sr. Manager (U&S, CET, Ranchi)

Direction –




Organisationalculture&environment1. I have knowledge of the work areas I will be involved in next six months.

1. 2. 3. 4.

2. I always feel that I have knowledge gap for the task in hand.

1. 2. 3. 4.

3. I am aware of major technological changes required as envisaged in SAIL growth plan upto 2020.

1. 2. 3. 4.

4. I feel that asking question & raising issues about work is encouraged in our organization.

1. 2. 3. 4.


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5. I feel employees are always recognized or rewarded for solving organizational problems.

1. 2. 3. 4.

6. I regularly read technical manuals, drawings of existing system for improving my knowledge base.

1. 2. 3. 4.

7. I always spare time to attend knowledge sharing sessions organized by my company.

1. 2. 3. 4.

8. I feel that my section has proper procedure for purchasing new equipment.

1. 2. 3. 4.

9. I feel that proper encouragement is given for giving new suggestion and its implementation at our workplace?

1. 2. 3. 4.

10. I feel that technical information about system & individual equipment are methodical stored and made available to every one?

1. 2. 3. 4.

11. I feel that I devote most of my working time on jobs directly related to managerial activities (problem analysis, people & resource management etc)?

1. 2. 3. 4.

12. I feel that information exchange system with in different plants can be improved to give better tech solutions to customers?

1. 2. 3. 4.

13. I feel that top management keeps its employee informed about major strategic decision taken for the growth of the company.

1. 2. 3. 4.

14. I feel that training in our organization is properly emphasized.

1. 2. 3. 4.

15. I feel that enough management support is provided for attending seminar/conferences in the area of my interest.

1. 2. 3. 4.


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16. I feel that organization fulfills training need of an individual as per requirement.

1. 2. 3. 4.

17. I feel that my section has a proper system of archiving data & drawings for existing shops.

1. 2. 3. 4.

18. I feel that current appraisal system identifies my talent ability.

1. 2. 3. 4.

19. I feel that employees are recognized or rewarded for experimentation with new ideas.

1. 2. 3. 4.

20. I feel that system exists where new knowledge gets shared to individual who need it.

1. 2. 3. 4.

21. I feel that employees are provided with training on how to get results working in a team environment.

1. 2. 3. 4.

22. I feel that our management strive to include everyone’s opinion irrespective of their grade.

1. 2. 3. 4.

23. I feel my performance goals are clearly aligned with the organization’s strategic value.

1. 2. 3. 4.

24. I feel the employee way of working is aligned with the organization’s vision.

1. 2. 3. 4.

25. I feel that employee should work in one particular area to get expertise instead of job rotation.

1. 2. 3. 4.

Competency Level1. I keep track of problems/complaints faced by internal /external. Customer regarding

product output from my shop.

1. 2. 3. 4.


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2. I always keep records of past change efforts to improve working of plant & machinery and what happened as a result.

1. 2. 3. 4.

3. I always gather information from customers, suppliers consultants about new technology/equipment used in my area of work.

1. 2. 3. 4.

4. I am able to handle more jobs in same period of time due to acquired expertise over the years.

1. 2. 3. 4.

5. I do the job for my satisfaction and growth.

1. 2. 3. 4.

6. I feel proud that I am working in SAIL.

1. 2. 3. 4.

7. I feel that employees are recognized or rewarded for helping each other learn in our organization.

1. 2. 3. 4. 4.

8. I understand that my workers have different working styles and needs & they should be handled differently

1. 2. 3. 4.

9. I am open to negative feedback from employees.

1. 2. 3. 4.

10. I feel that my rate of learning new thing has decreased with time.

1. 2. 3. 4.

11. I feel that jobs which are repetitive in nature require less time for completion.

1. 2. 3. 4.

12. I still feel that best of me in professional field is yet to come.

1. 2. 3. 4.

13. I feel that my potential will be better utilized in different area of work.

1. 2. 3. 4.


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14. I find it easy to do job personally rather through group of individual.

1. 2. 3. 4.

15. I feel that individual is more important than team to achieve organization’s goal.

1. 2. 3. 4.

16. I am able to take responsibility for my failure.

1. 2. 3. 4.

17. I always go by the rule of thumb when the method is complicated.

1. 2. 3. 4.

18. I feel it is easy to implement my decisions at work place.

1. 2. 3. 4.

19. I feel after completion of job I could have done better.

1. 2. 3. 4.

20. I feel that intense pressure situations doesn’t effect my quality of job negatively.

1. 2. 3. 4.

21. I feel my superiors are always right and we should follow them without any questions.

1. 2. 3. 4.

22. I give sufficient time for assimilating new information & technology for better handling of future projects.

1. 2. 3. 4.

23. I have contributed to reduction in cost cutting efforts in my organisation.

1. 2. 3. 4.

24. I feel use of technology as means of inter plant & customer communication should be encouraged.

1. 2. 3. 4.

25. I feel that in case of conflict between/difference of opinion among the team members, it is always wise to take the matter to the highest level.

1. 2. 3. 4.

26. I feel it is always better to follow managerial hierarchy to pursue a job.

1. 2. 3. 4.


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27. I feel that working in team with people of diverse thinking doesn’t affect my performance negatively.

1. 2. 3. 4.

28. I feel increasing the production rate has negative effected quality of products/services of my shop.

1. 2. 3. 4.

29. I learn from mistakes committed during execution of previous jobs.

1. 2. 3. 4.

30. I feel that I always take on the role of coaching, mentoring & facilitating employees for their learning effectiveness.

1. 2. 3. 4.

31. I support sharing knowledge information & skills among workers.

1. 2. 3. 4.

32. I like to ask my colleagues for information about work issues.

1. 2. 3. 4.

33. I always think of new ideas to provide better technical solutions for my jobs.

1. 2. 3. 4.

34. I believe that long term planning is key to achieve organizational goals.

1. 2. 3. 4.

35. I feel that when conflict arises among team members I resolve it effectively.

1. 2. 3. 4.

36. I feel that as a team member I am open and honest with one another.

1. 2. 3. 4.

37. I feel that my growth in the company is satisfactory.

1. 2. 3. 4.

38. I feel that get together, office parties etc. help to improve inter personal relationship and bonding among employees.

1. 2. 3. 4.

39. I feel that I am willing to take extra load in case my colleague is unable to perform his proper role in a job.

1. 2. 3. 4.


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40. I feel that I am able to put across my views among my colleagues with ease.

1. 2. 3. 4.

41. I feel pressurized when judgment of decision rests on my shoulder.

1. 2. 3. 4.

42. I feel delegation of work is essential for smooth and efficient working.

1. 2. 3. 4.

43. I feel that it is always better to listen my team members before formulating an opinion about a problem.

1. 2. 3. 4.

44. I feel that formulating & following a written communication is an easy job for me.

1. 2. 3. 4.

45. I feel that my intervention at many instances helped in resolving issues related to project.

1. 2. 3. 4.


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Annexure-IV

REsUlts Of sUPPlEMEntRY sURVEY

Organisational Competencies

I. Organisational&StrategicPlanning

40

50

60

70

80

90

100

E7-E8E6E4-E5E1-E3

II. JobOrientation

40

50

60

70

80

90

100

E7-E8E6E4-45E1-E3


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III.GoalAlignment

40

50

60

70

80

90

100

E7-E8E6E4-E5E1-E3

IV.Rewards&Recognition

40

50

60

70

80

90

100

E7-E8E6E4-E5E1-E3


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V. KnowledgeManagement

VI.TrainingNeeds


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individual Competencies

I. People&OrganisationalCompetency

II. MotivationalCompetency


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III.DecisionMakingCompetency

IV.InterPersonalCompetency


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V. PersonalCompetency


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finalistSandip Biswas, Sr. Manager, (Heavy Maint.)

S Manoj Kumar, Jr. Manager, (SMS) Priya Ranjan, Sr. Manager (SMS)

iisCO steel Plant

intRODUCtiOn

W ith abundant iron ore resources and well established base for steel production in the country, steel is poised for growth in the coming decades. Steel will continue

to be the most popular, versatile and dominant material for wide ranging applications. Current shortage of inputs has pushed-up the costs for the steel industry. Merger and acquisition poses another big threat in front of SAIL. The demand for growth is endless. Steel is yet to touch the lives of millions of people in India. Rural India today presents a challenge for development of the country and the opportunity to increase uses of steel in these areas. Declining profitability along with raw material crunch seems to be the biggest challenge in front of SAIL. With huge amount of money to be spent as per corporate plan 2010 (CP-10) to jack up the production, scheduled completion of project is another big area of concern.

To meet all these challenges of growth, increasing competency level of employees is the only way out. Whilst SAIL’s employees are competent, but only 20% of employees competency is visible and next 80% is latent. We need to invert this scenario. For increasing the competency of employees several methods can be adopted; either in isolation or in combination. For e.g. training, reading journals, giving more responsibility, organizing expert’s lectures, interaction between all concerned agencies, a knowledge forum and dissemination of information are some of the methods for increasing competency level of employees.

REsEaRCH MEtHODOlOGY

1) Literature study on the topic.

2) Empirical study through questionnaire.

3) Interviewing employees and interaction.

4) Study of related topics on internet.

5) Analysis of survey results, case study and finally moulding all the information in one theory.


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tHE CHallEnGEs Of GROWtH fOR stEEl inDUstRY

“We still have a number of persons in our country in SAIL, TISCO and other big and small steel plants who have the capabilities. They have the will to excel and transform the country, given a long term vision.”“We should be ready to compete in outside markets…..If our steel industry gears up in about 3 to 4 years, Indian steel can be both in Indian and foreign markets. Our vision should be towards this.”

- Indian 2020: A vision for the new millennium by APJ Abdul Kalam and YS Rajan

With abundant iron ore resources and well-established base for steel production in the country, steel is poised for growth in the coming decades. Production has increased from 17 MT in 1990 to 36 MT in 2003 and 66 MT is targeted for 2011. While steel will continue to have a stronghold in traditional sectors such as construction, housing, ground transportation; special steels will be increasingly used in hi-tech engineering industries such as power generation, petrochemicals, fertilizers etc. Steel will continue to be the most popular, versatile and dominant material for wide ranging applications. While India may not become a leader in world steel market, it can become a powerful force.

To help the Indian Steel Industry achieve its potential and play a meaningful role in India’s development some steps need to be taken.

Steel is yet to touch the lives of millions of people in India. Per capita consumption of steel in India is only 29 kg and has to go a long way to reach consumption levels of around 400 kg in developed countries like USA and world average of 140 kg. There is a need to continue the current thrust on infrastructure related activities and extend them to rural India. Rural Indian today presents a challenge for development of the country and the opportunity to increase usage of steel in these areas through projects such as rural housing etc. Current shortage of inputs has pushed up the costs for the steel industry. With ministry of steel targeting an output of 100 MT of steel by 2020 there is an urgent need to develop raw material resources for inputs like iron-ore and coal within or outside the country. Countries like Japan have already taken similar steps to safeguard their industries. Adequate enabling infrastructure such as power, ports, roads, rail transport is pre-requisite for the Indian steel Industry to remain competitive. The Indian Steel Industry is amongst the least protected in the world. While developed countries have put numerous tariff and non-tariff barriers on steel exports from the country, the domestic industry is exposed to cheaper importsfrom competing nations. As in case of other important industries, the government should give reasonable levels of protection to the domestic steel industry, which is just starting to get back on its feet.

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GROWtH CHallEnGEs in fROnt Of sail

There are numerous challenges ahead of SAIL. We are listing only those, which have potential to surge SAIL as frontline and world class organization, if handled properly.Merger & Acquisition: Merger & acquisition strategies for growth is very significant in present market scenario as SAIL can easily build up the capacity without having to wait for building a green field project. SAIL being government owned company, decision on this account can be time consuming and procedural bound.New Product Launches: Many new products need to be launched into the marketplace. Plant engineering must ensure that these products are fully tailor made to meet customer demands and marketing wing should address all aspects of a new product launch.Global Meltdown: With global economy crumbling, its effects are seen in India too. SAIL reduced the prices of steel across the board. Steel prices may fall further due to fall in demand. Many steel companies have started reducing their production in line with the market demand. Reducing prices and production is a sign of worry for steel industry. Research & Development: New ideas can be given by anybody in the organization and R & D must find the right technology to develop those ideas with regard to the cost, customers, market or competition. By adding the market perspective, R & D can greatly improve its probability of success.New growth opportunities: The demand for growth is endless. Marketing people can help identify the most promising growth opportunities available and communicate the same to the plant & R&D. Balance between being Technologically-Driven and Market-Driven: The Marketing people can help transform a technologically-driven company into one with a more balanced approach of technology and market orientation. Plant people must understand the problems of marketing people & a short term visit to stockyards / marketing depots by plant people & vice-versa can solve most of the problems.Ineffective Business Plan: In today’s fast-moving and competitive business environment, market situation is very fluid and hence there should be a business plan that is dynamic and reviewed continuously. Adverse Employees’ Age Profile: Average age of employees in SAIL is above 45 years and in case of ISP it is above 52 years. As steel industry is labor intensive, a younger workforce would yield better result.Lost in the market : Being “Lost in the Market” is a problem SAIL is presently facing due to huge capacity expansion by other steel producers in a very short time, so that SAIL is dwarfed in comparison to competitors in terms of installed capacity. Declining Profitability: Only a handful of companies are able to maintain or increase their profit margins. SAIL must reduce the production cost further along with improved marketing techniques, both amalgamated with innovative ideas, to stimulate increased profitability. Innovation and creativity holds the key to success.


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Raw Material Crunch: It seems to be the biggest challenge in front of SAIL. SAIL has formed joint venture partnerships with certain organizations to develop coal mines and ore mines. SAIL has also formed consortium to develop coal mines overseas. An SPV ‘International Coal Ventures Limited’ has been formed with equity participation from SAIL, RINL, CIL, NTPC & NMDC for acquisition of coal assets in overseas territories. Company is vigorously pursuing with the State Governments for the renewal of mining leases and forest & environmental clearances.

Employees Competency Level- Competence level of employees is being studied and is presented in this paper itself. There are number of areas where competence level needs to be improved to adapt new technology.

Scheduled Completion of Projects: According to corporate plan 2010 (CP10), SAIL is going to invest about 75,000 crores to jack up production from 13MT to 25MT of hot metal. If these projects are not completed in time, there will be huge cost overrun, exorbitant interest burden and adverse return on investment.

Wallace (1991:211) argues that good management development depends upon “identifying business change opportunities, matching managers to these opportunities, supporting managers while they tackle the opportunities; and helping them reflect on what they learned”.Creating a network of managers keen to improve performance through business change facilitates management development in line with the business needs of the organization.

Employees have different views on challenges ahead of SAIL. There have ranked the challenges as follows.

EMPIRICAL STUDY RESULTS


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Most of the employees have ranked Mergers & Acquisitions, timely completion of projects and Raw material crunch as the major challenges ahead of SAIL.

The silver lining is that almost all employees felt that SAIL employees are competent enough and SAIL as an organization is capable enough to meet the challenges of growth. Employees’ perception about their organization can work wonders. It is highly positive sign for SAIL.

For handling the present situation, we have to resort to our most valuable asset, i.e. our employees. Our employees can handle the situation, if their competency level is improved. But first, let us find out, “what is competency?”

LET US EXPLORE COMPETENCY:“The difference between what we are doing and we are capable of doing would solve most of the World’s problem”.

- Mahatma Gandhi

Skill was defined by Hans Renold in 1928 as any combination, useful to industry, of mental and physical qualities which require considerable training to acquire. Note that “a defining property of a skill is that it develops over time, with practice”. Skill encompasses both manual facilities, including dexterity, and conceptual ones, including relevant knowledge and understanding. Knowledge includes underpinning theory and concepts relevant to an area of activity, as well as tacit knowledge gained as a result of the experience of performing tasks. Knowledge may therefore be gained through formal or informal training, or, typically, through both routes.

“An established company which in an age demanding innovation is not capable of innovation is doomed to decline and extinction. And a management which in such a period does not know how to manage innovation is incompetent and unequal to its task. Managing innovation will increasingly become a challenge to the management, and especially top management, and a touch-stone of its competence”.

-Peter Drucker


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DEFINITIONSJob competence: Job competence is an employee's capacity to meet (or exceed) a

job's requirements by producing the job's output at an expected level of quality within the constraints of the organizations internal and external environments.

Job competency: A job competency is an underlying characteristic of an employee (i.e., motive, trait, skill, aspects of one’s self image, social role or a body of knowledge) which results in effective and/or superior performance in the job. (Adapted from Boyatzis, 1982, pp-20-21)

Competency model: A competency model includes those competencies that are required for satisfactory or exemplary job performance within the context of the person’s job roles, responsibilities and relationships in an organization and its internal and external environments. (Adapted from Boyatzis, 1982)

Hirsh and Strebler (1994: 83) identified three recurring features in the notion ofA competence is seen in the context of a particular job or job role and the organization in which that job exists.Competences are positively associated with superior performance.Competences can be described in terms of specific behaviours which can be observed in the job.

Burgoyne (1988a) similarly distinguishes “being competent” (meeting the job demands) from “having competencies” (possessing the necessary attributes to perform competently).Spencer (1995: 144) offers a typical North American definition of competency as a “relatively enduring characteristic of a person as casually related to effective or superior performance in a job”. Boak (1991) argues that “competency” in the American sense complements ‘competence’ as used in the U.K. occupational standards. Woodruffe (1991) offers the clearest statement, contrasting areas of competence, defined as aspect of job which an individual can perform, with competency, referring to a person’s behaviour underpinning competent performance.In the great epic THE MAHABHARATA, Dronacharya was the entrusted with the job of imparting all necessary skills and knowledge to both Kaurvas and Pandavas. Eklavya was not a direct disciple of Drona, but Drona realized that Eklavya could be a big challenge to Arjuna in future as he was highly competent archer and hence he demanded his right thumb as “guru-dakshina’ to meet the challenge to Arjuna. History is replete with such examples. Technological upgradation can make one superior to its rival, but it is attitude which makes the difference in case of two equal entities. In the modern times, competent people are turning around Industries and by their knowledge, skill and attitude changing the course of our lives. One competent man, K. R. Narayanmurthy writes the history of IT revolution in India. In another case, Ambanis

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build up a business empire, whilst Swami Vivekananda won applause of world audience by his sheer competency. Who can forget the most competent leader like Mahatma Gandhi? There are scores and scores of such examples. What is strikingly common in their qualities is their COMPETENCY. Then, what is competency? The most striking success story of POSCO is another great example which rose like a phoenix against the verdict of IMF despite lack of raw materials, financial and technical know-how etc.According to Shiv Khera, “Intelligence is the quickness to learn. Skill is ability. Competence is the ability along with the willingness and desire to apply what is learned. Desire is the attitude that makes a skillful person competent. Many skillful people are incompetent. Ability without the right attitude is wasted.”

Fig 1: Basic ingredients of competency

Competencies are probably most closely related to abilities. However, the term ability normally means either able to do or a special talent; while competencies relate more to expertise and experience. Competencies can be thought of as the state or quality of being well qualified to perform a task. A person gains a competency through education, training, experience, or natural abilities. While there are many definitions of competency, most of them have two common elements:

The competency is an observable and measurable knowledge and skills.

The knowledge and skills must distinguish between superior performers (or exemplary performance) and other performers.

The original use of competencies was conceived by David McClelland. He first used it as an alternative for the replacement of intelligence tests with criterion reference testing (McClelland, 1973).

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Robert De Bono, the celebrated Management Guru has a different view on creativity and competencies. If we regard creativity as an inborn talent which some people have and others do not have, then we just look for creative people.

Learning is generally thought of as both a cognitive process involving the assimilation of knowledge and an effective process leading to change in behaviour. The stages in learning identified by Fitts (1962) link the two processes; in the cognitive stage, the individual understands what is required and how to achieve it; the associative stage involves practice to attain correct behaviour; while in the autonomous stage, external sources of information are unnecessary and the individual’s capacity to perform secondary task increases.

STAGES OF LEARNING:1. Self Organized Learning:itisdoneonlybyself.

2. Action Learning:Itaimsatutilizingtheknowledgeandexperienceoffellowworkersforproblemsolving.

3. Personal Mastery:Itislearningfromjobcontextandbeyondtoacquireinno-vatoryoccupationalskills.

Fig 2: What constitutes competency


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MODERN METHODS FOR IDENTIFYING COMPETENCIESThere are three major approaches used to identify competencies and are as follows.

1) Modified task analysis approach (MTAA):

As stated by Zemke, “this approach is basically the task listing analysis technique most trainers know, but with some minor niceties added.” Task analytic approaches to job or work analysis find their most useful and frequent applications in the concrete, less abstract jobs. The MTAA is the most appealing approach to use for technical and vocational training or education.

2) Critical Trait Approach (CTA) :

In this approach one must be able to identify the critical personal traits, behaviours and other characteristics of employees that distinguish exemplary from average job performance. Unlike MTAA approaches, the CTA places its emphasis on the underlying personal traits and other characteristics required for successful job performance. CTA focuses attention on long-term endurance and value of human competencies rather than job tasks and activities in the present. CTA can be applied to concrete jobs (e.g., assembly-line work) as well as to abstract jobs (e.g., management). However, CTA is especially useful for professional, managerial, and executive roles-in general.

3) Situational Approach (SA):

This approach was reported by Zemke in 1982 and refined by Patricia Mc Lagan for identifying competencies and creating competency models. Of the three approaches, SA brings an element of unity and eclecticism to the competency modeling process. The exact methods and techniques used during a SA application largely depend upon how concrete or abstract the job is, whether the job already exists in the organization, and whether a set of related jobs are under analysis for their component competencies. One of the distinguishing features of SA is its flexibility.

MODERN COMPETENCY DEVELOPMENT MODELSOrganizations have successfully used five methods (or variations of them) for building job competency models as follows.

1) Job Competence Assessment Method:

The JCAM relies on the use of a rigorous, empirical research procedure called job competence assessment, which helps determine what competencies differentiate exemplary from average job performance. Exemplary and average performers are interviewed about the dimensions of their job performance. Once the competencies


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have been determined, they-in conjunction with other job elements-are used to construct the job competency model.

2) Modified Job Competence Assessment Method:

MJCAM uses the job competence assessment research procedure, with the modification of having the exemplary and average performers, who would normally be interviewed face to face, write or otherwise record their critical behaviour stories for use by the researcher.

3) Generic Model Overlay Method:

When an organization uses GMOM to acquire a competency model, it selects or obtains a prepared competency model and then overlays or superimposes it on a job within the organization.

4) Customized Generic Model Method:

CGMM relies on the researcher’s tentative identification of a universe of candidate generic competencies that fully characterize the attributes of the exemplary and average performers of a job in the organization. The universal list of competencies is then researched and interpreted within the job and the larger organization context. As a result, the specific competencies that characterize the successful employee are verified or denied by the research. Other attributes for the desired competency model are also researched. The job competencies and these other attributes are then used to develop the competency model.

5) Flexible Job Competency Model Method:

FJCMM relies on having a vide variety of comprehensive information sources for inclusion in the research base. A feature of this method is the identification and use of future assumptions about the organization and the job. Depending upon the organization’s preferences, internal and external sources of information can be used. The use of this method results in the availability of job roles, job outputs, quality standards for the outputs, and behavioural indicators for each job competency.

Usefulness of Competency Development Models:Competency models helps organizations take a unified and coordinated approach to designing the human resource management system, including job design, hiring performance improvement, employee development, career planning, succession planning, performance appraisals, and the selection and compensation systems for a job. Therefore, any investment an organization makes in competency model development work has benefits beyond the usefulness of the results for HRD purposes.


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tYPEs Of COMPEtEnCiEs:

Although competencies can be divided into several types, there are following types of competencies, in general.

(1) Core functional competencies:

It primarily deals with the core /domain or own area where you are working. Normally people acquire all the necessary skills of the area where they work over the period of time. Moreover it becomes easier for anybody to pick up the secrets of his/her area of work.

(2) Cross functional competencies:

Every individual while being very good in his/her core function should develop an appreciative volume of knowledge and skill of other cross-functions that would aid him/her to perform better. For instance, for a software engineer, apart from expertise in his domain area, a good knowledge of other facets of technology, business processes, quality assurance, finance, HR and marketing, would enable him to have a broader vision of his assignment and be able to meet customer demands better.

(3) Managerial competencies:

The job of a manager is to turn one person’s particular talent into performance. Identifying and capitalizing on each person’s uniqueness saves time. A good manager must be able to manage all the resources under him and must deliver same result everyday or he/she should try to improve upon his/her performance.

(4) Administrative competencies:

A good manager can be a bad administrator and that may truly spoil ones chances of being successful. You must be able to take a decision of your own and you should stand by that in any adverse circumstances. Most of us are obsessed with our weaknesses to the extent that we tend to neglect our strengths Managers who build up their strengths can reach their highest potential. A good administrator always plays on his strengths.

(5) Interpersonal competencies:

It may also be called “Personal Competence”. People knowledge is more important than product knowledge. Successful people build pleasing and magnetic personalities, which is what makes them charismatic. This helps in getting friendly cooperation from others. Benjamin Franklin said, “When you are good to others, you are best to


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yourself”. Treat people with respect on your way up because you will be meeting them on your way down. Any employee with good personal competence can build trust, but he must have reliability, consistency, respect, fairness, openness, congruence, integrity, character and courage.

(6) Communication competencies:

Words can hurt feelings and destroy relationship. Choose what you say rather than say what you choose. Excessive talking does not mean communication. Talk less; say more. Spoken words can not be retrieved. Do not criticize and complain all the time. Take criticism in right earnest as truth may not always be what you want to hear and be a patient listener. Give honest and sincere appreciation.

(7) Business competencies:

You must acquire, organizes and maintains information related to business and economic environment in which it functions. Then interpret and communicate information for the benefit of the business. You must know business practice, understanding and practice of visioning, planning, implementing change and managing business activities. Then monitor and correct performance based on ongoing evaluation and improves systems by suggesting modifications to current systems and developing alternative systems.

(8) Social competencies:

Empathy, the ability to understand others’ points of view, works well with people from diverse backgrounds. Work to satisfy member’s expectations & resolves divergent interests along with mediation and Consensus building, toward the effort of achieving a common voice when necessary. communicates ideas to justify position. Persuades and convinces others, both from the perspective of being a good follower and an effective leader. Participates as a member of the team in what ever role is appropriate & contribute to the group’s effort.

(9) Ethical competencies:

It has more to do with the character and integrity of the employee and employer, both in a business sense and in terms how one’s actions affect others. An ethical employee will be honest to the organization and vise versa. With honesty, comes sincerity. An honest & sincere employee is an asset for any organization. When employees follow ethical behaviour, they can stand upright at the time of crisis.


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EMPlOYEEs COMPEtEnCY in sail

In SAIL, we have a vast pool of qualified and experienced people. They are intelligent too. We only need to remind them about their true abilities.

As Benjamin Franklin has rightly pointed out that “Being ignorant is not so much a shame as being unwilling to learn to do things the right way.”

Similarly in SAIL, we have to formalize a strategy of making every employee competent enough to handle any situation. Most of the people have competencies, but they are in hibernation or latent as represented by following picture.

Fig 2: State of employees competencies in SAIL

Some of employee’s

competency is clearly visible

& mostly is latent. We need

to invert the picture.

We came to this conclusions after exhaustive survey of around 260 employees both executives and non-executives. Moreover we had interaction with quite a number of employees and we interviewed a good number of senior executives also. For survey we made questionnaire (ref. annexure-I) and distributed to employees for their valuable comments and their perception about challenges of growth and competency level.


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COMPETENCY SURVEY RESULTSCore Functional Competence-

There is further scope for improvement. Our immediate aim is to cross ‘4’ mark.

Cross Functional Competence-

Most of the employees are incompetent in this area and this area needs to be developed.


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Managerial Competence-

Employees tend to be better managers under any circumstances. Very good indicator for SAIL.Personal Competence-

Once again most of the employees have good inter personal competence.


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Administrative Competence-

It is just above average. Making people more disciplined might solve it.

Communication Competence-

Employees do communicate, but this skill needs to be polished more.


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Social Competence-

It is above average.

Business Competence-

It is poor. We need to be more business minded.


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Ethical Competence-

- SAIL employees more or less follow ethical behaviour. It is satisfactory.

PRESENT STATUS OF COMPETENCE MODEL IN SAIL :At present, competencies of all employees are mapped basically to assess their training needs as represented by the following diagram:

MEEtinG CHallEnGEs Of GROWtH BY BUilDinG UP COMPEtEnCiEs

Almost all the employees feel that there competencies should be built up. There are several methods for developing competencies to meet the challenges of growth.Training: By giving proper training, efficiency & competency can be increased. For this, training needs have to be mapped first and only then befitting training can be organized.


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Reading journals: By referring to latest and relevant journals, knowledge level of employees will develop and also one’s idea & perception regarding changing business scenario.Giving More Responsibility: Some people are not given any responsibilities as people have apprehension about their competencies. In fact giving more responsibility to those so called incompetent people will increase their competency level.Expert’s lecture: An expert’s view can always change our perception towards any situation and it will improve the competency level. Expert can be drawn even from the department itself. Such a lecture or interactive session can be organized on a regular interval.Interaction: Exchange of views and ideas among people give the best results. Employees from all concerned sections can be asked to gather at a predetermined area and a fruitful discussion can be held apart from the regular meting agendas. Dissemination of information: Any information that is useful in organizational context must be passed down to the last man in the hierarchical chain. It can be passed in form of personal call, SMS, Xerox copies or in the form of bulletins. Then even the last man in hierarchal chain can contribute something positive. Knowledge forum: Any available pool of resources / information must be tapped by one and all. All relevant pieces of information must be kept at specified location. There can be a shop floor library or regular information sharing meetings etc. Based upon the various methods of developing competencies, we asked a cross-section of employees to rank all the competency developers and the results are shown below.

EMPIRICAL STUDY SHOWSBut employees fail miserably when it comes on their own effort. Most employees don’t in-tend to use library or access Internet, at least for improv-ing themselves Although they felt that their com-petency level has improved over the years, but mostly in core areas.


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RECOMMEnDatiOns

Corporate development planA personal development plan for every executive. A minimum of five days off the job development per year for every executive. A reimbursement of tuition fees for education (if anybody joins any courses; of his/her own; which may be useful to the company). i.e. sponsor self dedicated learning.Identify one person every week in job area and make him/her free from routine jobs and he /she will be on training/learning for that week.

Record of detailed craft knowledgeAll major breakdowns, suggestions, novel method of performing a task etc has to be recorded in a log in the department. Use analogy to find solutions (for this everybody needs exposure to different departments/ organizations) and then transfer technology from one field to another.

Knowledge DisseminationRegular (e.g. fortnightly) meeting of all concerned agencies in the room of HOD to understand each other’s problems.Internet connection at work place.Setting up of shop floor library.Official board for pasting everyday’s relevant information for everybody to see. Either an outsider expert (e.g. RDCIS personnel or from Premier Institute or other private sector company) or even somebody from the department itself can make a presentation on regular basis about department’s technical/nagging issues or about some newer technologies / innovations.Handling projectsSkill gap arising out of newer technologies and new project must be overcome by suitably training the identified persons for that project.Even a day’s delay to be highlighted in monetary term on the notice board.

Boosting bottom-lineDesign steel tailor made to Indian needs (e.g. agricultural implements for farmers in rural India), even with association of other companies. Performance related pay.Exploring newer markets and also market for new customized products.Celebrating suggestion month for inviting suggestion on cost cutting only and giving commensurate reward to all accepted suggestions.Reducing man power further with right balance of multi skill, technological up gradation and outsourcing.

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Succession PlanningNext man in line to be identified and detailed succession planning to be done.Identified officers to be retrained. For that, outside training which is useful for the company for setting new units, to be given with certain preconditions (e.g. bond). After completion of training they must be given assignment related to their training. Incompetent /not so promising employees to be offered early retirement without VRS benefits on the condition that their qualified son/daughter will be employed by the company in their place.

sUMMaRY

Wallace perfectly argued that good management development depends upon “identifying business change opportunities, matching managers to these opportunities, supporting managers while they tackle the opportunities; and helping them reflect on what they learned”. It is equally true that there are various challenges in front of SAIL. Such as merger and acquisition, raw material crunch, declining profitability and scheduled completion of projects. For deftly handing the situation, employees competence level has to be built up, by any established methods; such as training, assigning more responsibility, interaction and dissemination of information etc.

SAIL need to have a better corporate development plan for building up employees competency along with detailed succession planning at all levels. Skill gap arising out of newer technology must be overcome by identifying and training suitably. We should have a regular meeting of all concerned agencies to understand each others problems. Internet connection at workplace or setting up of shop floor library will also help in building up competency. Maintaining record of detailed craft knowledge and organizing expert’s lecture will definitely build up competency.

--------------------- THE END --------------------------

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POHanG iROn anD stEEl COMPanY ( POsCO)

Against all odds

(Taken from the Emerging Market Century)The march 1969 report from the world bank was unambiguous. The construction of “ an integrated steel plant in Korea (was) a premature preposition lacking economic feasibility”. If any reader of the report was inclined to question its conclusions, its author spelled out the rationale behind his thumbs down verdict.

1. Korealackedironore,anessentialcomponentinsteelmaking.Whiletheprimarysourceofasteadysupplyofironoreweredistantandcostlytoreach.

2. Korealackedcoal,therawmaterialforcoke,akeycomponentinsteelmaking.

3. Korea lackedtheskillsandcomplexengineeringknow-howrequiredfor integratedsteelmaking.

4. Korealackedthereadycapitalrequiredforintegratedsteelmaking.

5. Korealackedalargedomesticmarketforsteel,whilethemostefficientsteelproducersintheworldwerelocatedpracticallynextdoorinJapan.

In any country other than South Korea circa 1969, under the repressive and autocratic regime of military strongman Chung-Hee Park. Such an unalloyed negative verdict from the all powerful world bank would have scuttled the project without the further ado. But the Korean government was determined to succeed in even its wildest ambition. Despite every rational argument against it, fierce determination and national pride took precedence over plain common sense. Even as the world bank was issuing its downbeat assessment, road crews were clearing a site in the former fishing village of Pohang to make way for the nation’s first modern steel plant.The Japanese not only identified a promising commercial opportunity in South Korea, but found a tangible way of making amends for “thirty-six years of hardship under Japanese rule”, as the Japanese government contributely conceded. After the American refusal, the Japanese, led by Nippon Steel, saw an opportunity and became POSCO’s major technical partner, training ground, and day-to-day adviser.President Chung-Hee Park was obliged to personally intervene when his stiff-necked bureaucracy kept raising objections to the costly equipment purchase being agreed to in Japan. He signaled his imperial displeasure by signing a hastily drawn up note, famously called “Memorandum with the President’s Handwritten Signature” to clear all future logjams with a presidential stroke of pen. In April 1970, ground was broken for POSCO’s first plant, boasting an annual capacity of 8.5 million tons. By July 1973, the concern was open for business.Today, the company is among the world’s most efficient, largest and technically advanced steel producer. In 2005, POSCO was honoured by the editors of fortune as a “globally most admired company”, called “the most competitive (steel company) in the world” by leading steel industry analysts, and named one of “the masters of the web” by Business Week.


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References :1) The concise Adair on creativity and innovation - by John Adair

Viva Book, First Indian edition 2006, Reprinted 2008

2) Developing Managerial Competence – by Jonathan Winterton & Ruth Winterton.

Routledge Publishers, London 1999.

3) A Compendium of Readings on Management

S.A.I.L. – MTI, June 2006.

4) You Can Win – by Shiv Khera

MacMillan India Ltd.-2002, Reprinted 2003.

5) Living with Honour – by Shiv Khera

MacMillan India Ltd.-2003, Reprinted 2003

6) Creativity – How to Catch Lightening In a Bottle – by George Gamez, Ph.D.

Jaico publishing house – 1997.

7) Competency based performance improvement – A strategy for organizational change –

by David D. Dubois, Ph.D.

HRD Press Inc., U.S.A.- first edition-1993.

8) The Emerging Market Century – by Antoine Van Agtmael.

Simon & Schuster UK Ltd, A CBS company, UK 2007.

SOURCES

1) http://www.arcelormittal.com/

2) http://www.indiansteelalliance.com/

3) http://www.financialexpress.com/

4) http://www.sail.co.in

5) http://www.frost.com/prod/servlet/


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Annexure -1

CHaiRMan’s tROPHY fOR YOUnG ManaGERs 2008

Dear Sir / Madam,

We have undertaken an empirical study route to find out the ways to ‘Building Competencies for Meeting the Challenges of growth’ for SAIL, which is the topic for this year’s CHAIRMAN’S TROPHY FOR YOUNG MANAGERS. Your valuable comment is most welcome.

This instrument is purely for academic purpose and your identity will be kept confidential.

The team : PRIYA RANJAN Sr. Manager S.M.S. SANDIP BISWAS Sr. Manager H.M.S. S. MANOJ KUMAR Jr. Manager S.M.S.

QUESTIONNAIRESCALE GUIDE - (a/1 for minimum, e/5 for maximum)

COMPETENCIES

CORE/DOMAIN FUNCTIONAL ABILITIES

Sl. No.

QUESTION OPTIONS (Please put tick mark)

1. How do you rate your job knowledge? a)

d)

b)

e)

c)

2. At what efficiency level you are working ? a)

d)

b)

e)

c)

3. Can you consider yourself to be an expert

in your area ?

a)

d)

b)

e)

c)

4. Do you have necessary skills to resolve your

work problem ?

a)

d)

b)

e)

c)


289

CROSS FUNCTIONAL ABILITIES

1. Do you know how is company managing its finances?

a) d)

b) e)

c)

2. Do you know the company’s HR policies? a) d)

b) e)

c)

3. Do you know company’s vision & future plans?

a) d)

b) e)

c)

4. Do you have knowledge about company’s marketing?

a) d)

b) e)

c)

5. Are you able to meet your internal customer’s requirement?

a) d)

b) e)

c)

MANAGERIAL ABILITIES

1. Can you work with people with diverse interests?

a) d)

b) e)

c)

2. Do you know the strength & weakness of all of your employees?

a) d)

b) e)

c)

3. Can you form a team with diverse backgrounds?

a) d)

b) e)

c)

4. Can you repeat your performances day in day out?

a) d)

b) e)

c)

5. Do you take responsibility for failure? a) d)

b) e)

c)

6. Do you give credit to others for success? a) d)

b) e)

c)

INTERPERSONAL ABILITIES ( PERSONAL COMPETENCE) :

1. Do you know all of your strength? a) d)

b) e)

c)

2. Do you know all of your weakness? a) d)

b) e)

c)

3. Are you setting any personal goals? a) d)

b) e)

c)

4. Are you monitoring your progress towards these goals?

a) d)

b) e)

c)


290

5. Are you fully confident about your job? a) d)

b) e)

c)

6. Are you accountable & transparent to your team members?

a) d)

b) e)

c)

ADMINISTRATIVE ABILITIES

1. Are you able to reach to a decision of your own ?

a) d)

b) e)

c)

2. Can you implement your decisions ? a) d)

b) e)

c)

3. Can you enforce discipline of the deptt. all the time ?

a) d)

b) e)

c)

4- Can you mobilize all your resources effectively ?

a) d)

b) e)

c)

5. Can you evaluate performance & change the plan accordingly ?

a) d)

b) e)

c)

COMMUNICATION ABILITIES

1. Are you able to make others understand your point of view ?

a) d)

b) e)

c)

2. Do you understand other’s point of view? a) d)

b) e)

c)

3. Do you make others agree to your point without hurting them ?

a) d)

b) e)

c)

4. Are you interacting with all concerned agencies on continuous basis ?

a) d)

b) e)

c)

SOCIAL COMPETENCE

1. Do you work to satisfy your member’s expectation?

a) d)

b) e)

c)

2. Do you extend cooperation for reaching consensus?

a) d)

b) e)

c)

3. Can you persuade and convince others? a) d)

b) e)

c)

4. Do you communicate ideas to justify position?

a) d)

b) e)

c)


291

5. Do you take responsibility for failure ? a) d)

b) e)

c)

6. Do you exchange your role between a good follower and an effective leader ?

a) d)

b) e)

c)

BUSINESS COMPETENCE

1. Do you acquire, organize and maintain information related to business and eco-nomic environment in which it functions?

a) d)

b) e)

c)

2. Do you interpret and communicate information for the benefit of the business?

a) d)

b) e)

c)

3. Do you understand and practice of visioning, planning, implementing change and managing business activities?

a) d)

b) e)

c)

4. Do you monitor and correct performance based on ongoing evaluation?

a) d)

b) e)

c)

5. Do you improve systems by suggesting modifications?

a) d)

b) e)

c)

ETHICAL COMPETENCE

1. Do you understand what your responsibilities are, and make sure that you contribute positively?

a) d)

b) e)

c)

2. Do you undertake your personal work during office hours?

a) d)

b) e)

c)

3. Do you make personal calls from company’s telephone?

a) d)

b) e)

c)

4. Do you divulge company’s secrets in other forums?

a) d)

b) e)

c)

5. Do you submit false information for smaller pecuniary gains?

a) d)

b) e)

c)

BUILDING COMPETENCIES

1. Whydoyouthinkthatcompetenciesshouldbebuildup?E.g.

(a) Self development (b) Better skill set (c) so as to resume more responsibility (d) Organizational development (e) Others


292

2. Howcancompetenciesbebuildup?E.g.

(a) More classrooms training (b) More on the job training

(c) Providing relevant books and journals d) Giving more responsibility.

(e) Others

3. Howfrequentlydoyougotolibrary?(Onascaleof1to5)

4. Howfrequentlydoyouaccessinternet?(Onascaleof1to5)

5. Doyouhaveinternetconnectionatyourhome?YesorNo

6. Howdoyourateyourpresentcompetencylevelvis-à-visyourjoininglevelonscaleof1to5?

7. Areyousatisfiedwithyourrateofincreaseofcompetency(onascaleof1to5)?

8. Hasyourcompetencyincreasedinanyparticularareaorinallareas(onascaleof1to5)?

9. Pleaseratethesecompetencydevelopersaccordingtopriority?

(i) More training (ii) Providing books and journals (iii) Giving more responsibility (iv) Expert’s lecture (v) Interaction between all concerned agencies (vi) Knowledge forum (vii) Dissemination of knowledge and information (viii) Internet connection at workplace (ix) Others ………

My ranking is - a) b) c) d) e) f) g) h) i)

j) k) l)

CHALLENGES OF GROWTH:-From this list, rank the challenges ahead for SAIL in terms of priority.

1. Mergers & Acquisitions 2. New Product Launches

3. New Growth Opportunities 4. R&D Idea Evaluation

5. Ineffective Business Plans 6. Lost in the Market

7. Declining Profitability 8. Balancing between Technology-Driven and Market-Driven

9. Raw Material Crunch 10. Adverse employees’ age profile

11. Employees Competence Level 12. Others…….


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My ranking is - a) b) c) d) e) f) g) h) i)

j) k) l)

(1) Is SAIL capable enough to meet these challenges? Yes or No

(2) Which is most critical challenge for SAIL?

(3) Are SAIL employees competent enough to meet these challenges? Yes or No

Name (optional):

Designation:

Department:

Annexure-II

Number of employees surveyed : 260

Number of executives surveyed : 120

Number of non-executives surveyed : 140

Average qualification level : Matriculation to Post graduate

Methodology of calculation:

For each responses ‘a’ was assigned a value of ‘1’, ‘b’ was assigned a value of 2, ‘c’ was assigned a value of 3, ‘d’ was assigned a value of 4 and ‘e’ was assigned a value of 5. Then individual responses were multiplied by respective values and sum total of all responses were divided by total number of employees answering the question.


294

For exampleFor a particular question 100 employees answered the question in the following manner,

18 opted ‘a’, 22 opted ‘b’, 28 opted ‘c’, 32 opted ‘d’ and 10 opted ‘e’. Then the average value will be

(18x1 + 22x2 + 28x3 + 32x4 + 10x5) / 100 = 3.24.

In all the graphical representation, scales (on the Y-axis) were shown between 1 and 5. Average value was considered as 3.

In certain questions graphical representation, responses were in percentage basis. For eg, graph in employees view on competency developers.

Annexure -III

Characteristics to look for when recruiting

Superior general intelligence with an ability to store and recall information.

A high degree of autonomy, self sufficiency and self direction.

Relatively little gregariousness; creative thinkers tend to be ambivert.

An independence of judgment and a resilience to group pressure towards conformity in thinking.

A sense of honesty and the ability to express that honesty.

A broad range of interests to stimulate the mind.

A special motivation to solve problems and to take up the opportunities to do this.

A sense of curiosity and good powers of observation.

Dedication and commitment to projects.

An awareness of the purposeful unconscious mind.

An ability to hold many ideas together in creative tension, without reaching a premature resolution.


295

Annexure -IV

Effective teams

Belbin (1981) identified nine ideal types of team members in terms of there psycho-social characteristics and the roles they adopt within a team.

1) The coordinator- The coordinator establishes the goals of the group.

2) The shaper – A shaper clarifies and moves forward these objectives.

3) The plant – They contribute ideas and provide new recommendations to overcome problems.

4) Evaluator or monitor – The evaluator challenges and tests the teams decision.

5) The implementer – Implementer puts the ideas and proposals into practice.

6) The team worker – They maintain the internal cohesion of the group, ensuring that everyone works together.

7) The resource investigator – They explore opportunities on behalf of the team.

8) The completer – A completer ensures all aspects of the projects are completed.

9) The specialist – A specialist provides knowledge and skill in specialist areas.

Any successful team must have all these nine members. Any member can interchange their roles and most importantly any member can play more than one role.

Annexure -V

CasE stUDY

A particular non-executive employee in Steel Melting Shop Operations area was working as second helper. His job was to assist his first helper in taking sample, temperature and helping him in house keeping and fettling. He was non-matriculate, but was very sincere and had a very positive attitude. Seeing his sincerity and positive attitude, he was given inputs on various aspects of steel making on continuous basis. Additionally, he was given opportunities to (voluntarily) work as (non-designated) Assistant Furnace Operator; although under strict supervision. He made some mistakes initially, but gradually he picked up the job. Furthermore, he was encouraged to pursue his studies further as a part- timer and necessary helps were extended to him (e.g. tutoring, filling up forms, providing information about exams etc.). Finally he did his matriculation and when the post of Assistant Furnace Operator fell vacant, he was prompted to apply. He was selected as Assistant Furnace Operator in due course of time. Right now, he is working as Assistant Furnace Operator very efficiently and has become a very competent furnace operator.


296

Annexure -VI

If you are competent enough, then check against these parameters:

Open to new ideas

Supportive to new ways of working

Suggests new ways of working

Approachable and supportive to colleagues

Develops innovative, workable solutions to problems

Recognizes contribution and achievement

Adapts style to suit the needs of the audience

Writes and speaks clearly and simply Identifies the most appropriate method of communication and considers different formats

Listens, questions and clarifies to ensure full understanding

Requests work which extends their experience

Gives constructive feedback

Shares learning and expertise

Makes time to consult with others based on their knowledge and expertise

Supports others by having a flexible approach to work demands

Anticipates workloads and plans ahead

Anticipates and avoids problems

Takes effective decisions even when under pressure

Overcomes setbacks to complete tasks

Builds effective relationships

Considers the impact of their actions on others

Looks at situations from the others point of view

Sensitive to the needs and feelings of others

Aware of barriers people face and recognizes the need for positive action to overcome these barriers

Maintains impartiality/fairness with all people, challenging unacceptable behaviour

Tactful in discussion; sensitive in use of language

Shares information

Takes steps to understand different cultures, beliefs and behaviours

Uses feedback to introduce new ways of working

A

A

A

A

A

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Listens to customers needs and responds

Seeks both formal and informal feedback

Polite, patient and helpful when dealing with customers

Seeks advice from others when appropriate

Gathers all necessary and relevant information

Shares knowledge and good practice with others

Challenges existing procedures through the appropriate channels and suggests alternatives

Aims to develop simple processes

Ensures quality standards are maintained

Revises decisions in the light of subsequent information

Maintains high personal standards

Communicates consistent positive and realistic messages about the council

Co-ordinates and directs the action of others

Confronts difficult issues in order to resolve conflict

Is pro-active in responding to the needs of others

Takes decisions within time constraints

Creates an environment of trust

Regularly reviews methods of working

Takes responsibility for solving problems and making decisions

Seeks to achieve and exceed targets and standards

Identifies customers and seeks to exceed their expectations

Checks accuracy/validity of information

Anticipates future needs

Plans and organizes workload to meet deadlines

Analyses the consequences of different courses of action

Contributes to the PDR process

Seeks to improve knowledge and skills

Regularly reviews own performance

Assesses own potential to develop

Learns from others

Uses a variety of learning methods

Understands the ‘big’ picture

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