HR practices at Tata Steel

Manpower planning

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

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

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

Compensation ManagementIt depends on financial capabilities.• Yearly increments are given.

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

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

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

Special benefits Medical facilities: Free medical facilities for employees and their family, which

continues even after retirement. Housing facilities: Subsidised electricity, water and housing facilities to all

employees. Higher studies: Monetary incentives to employees acquiring higher qualifications in a

related field along with study leave, scholarships etc. when necessary. Holiday Homes: Tata Steel has five holiday homes for benefit of employees during

vacation. Tata Steel Officers’ Beach Club: All officers of Tata Steel are eligible to be members of

the Beach Club that offers holidays in elite hospitality chains. Family Benefit Scheme: In the tragic case of a fatality in the Works, a monthly

pension equal to the amount of the last drawn salary of the deceased is given to the legal heir until the time the deceased would have attained the age of 60.

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

Skill Development: Non OfficersSkills training is a process that begins at the time of an employee joining the company and continues throughout his or her career. Employees work in clusters of multi-skilled workers and move across and within clusters on improving their skills levels. The Technical Training Institute imparts vocational and basic skills training; the departments impart on-the-job training. In order to promote self-directed learning, the Company has introduced e-learning whereby employees can access electronic courses from their departmental e-Learning centres.

Skill Development: Officers Tata Steel Management Development Centre conducts a number of managerial and

functional competency based programmes for officers and supervisors. The objectives of these programmes are:

To build individual capability by enhancing managerial and functional competencies which are critical to operations, service and support functions.

To build a leadership pipeline in the organisation to prepare the people to meet the challenges of growth, globalisation and change.

Equal Opportunity Practices Tata Steel is an equal opportunity employer and does not discriminate on the basis

of race, caste, religion, color, ancestry, marital status, sex, age or nationality. The Company’s Affirmative Action Policy promotes equal access to its employment and opportunities and all decisions are merit based. Respect for equal opportunities as set out in the Tata Code of Conduct is followed. The HR Policy and Affirmative Action Policy are monitored by the Ethics Counsellor and supported by an effective grievance redressal mechanism.

Tata Steel encourages female employees to advance their career with initiatives dedicated towards personal development and professional advancement. The Women Empowerment Cell examines and addresses the issues and concerns of female employees and ensures that they do not miss out on any growth opportunity

Freedom of association and collective bargainingTata Steel respects the employees’ right to exercise freedom of association and collective bargaining and provides appropriate support for this. There is an established system of joint working and collective bargaining, which ensures that every employee is able to exercise this right without any fear. Pioneering the concept in India, a system of Joint Consultation has been in place in Tata Steel for more than 50 years.

Human Resource Polices of Essar Steel“At the Essar Group, we believe that excellent individuals build excellent companies. And by transforming each employee into a highly motivated, satisfied and productive team member, we will create an outstanding organization. We also understand that each individual has unique talents and expectations from the organization. Based on those principles, human resources development at Essar is customised, flexible and well planned. Every Essar employee is meticulously selected and given the freedom to be innovative, within a work culture that is non-bureaucratic and result-oriented. We work with employees to develop personalized and flexible individual plans for career growth, retention and compensation within a carefully structured work framework. Through extensive career mapping, we offer a choice of career paths that could include job rotations across functions and Group Companies. Essar's wide range of businesses and exciting pace of growth presents a range of opportunities and exposure that only a few others can match. The Group has a very serious commitment to continuous training and development. Our Essar Learning Centre provides year-round training. Thus, a career with Essar will offer you a unique opportunity to unlock your own potential and realize excellence.”

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

Essar’s key focus areas Essar has outlined seven focus areas where employee involvement can make a

difference to the lives of the community: Education Self-employment Training Infrastructure development Medical Health & hygiene Recreation and welfare

RecruitmentsEssar welcome talented college graduates. They are a preferred employer at India's top engineering and business schools because they offer competitive compensation, diverse opportunities in terms of business and roles, fast growth and quick assumption of large responsibilities. For the same reasons, they are able to attract the best and the brightest talent at all levels.

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

Management trainee programmes Graduate trainee programmes Business leadership programmes

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

Graduate trainee programmesThe Essar group prides itself on using global-scale, world-class technology in all its companies. To maintain the technical edge, the group hires engineer trainees annually between August and January. Essar hires graduate engineer trainees (GETs) from the IITs and the top-ranking regional engineering colleges across the country and diploma engineer trainees (DETs) from the best polytechnics in Gujarat, Andhra Pradesh and Tamil Nadu and other regions of the countries to source the best talent available. These trainees are hired for specific group companies. After they are selected, they go through an induction programmes at the company, which includes classroom sessions and plant visits. Soon

afterwards, each trainee has an interview with the Essar Learning Centre head, to discuss his or her immediate placement and future growth prospects. Trainees are confirmed after a one-year training programmes for GETs and a two-year programmes for DETs. Depending on their capabilities, both GETs and DETs can look forward to increasing their technological expertise, a growing technical specialization and key senior operational and technical roles within the company.

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

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

Training and DevelopmentEssar has a very serious commitment to continuous training and development. Our world-class Essar Learning Centre provides year-round training. We provide numerous resources for self-assessment and development. Thus, a career with the Essar group offers a unique opportunity to unlock your own potential and realize excellence.Continuous opportunities for development and growth - that’s the firm commitment that Essar makes to every single employee. The Essar group is one of India’s largest spenders on continuous training, investing about Rs. 1.4 crore (US$ 3 m) annually. Essar Learning Centre (ELC) at Hazira, Gujarat has emerged as one of India’s foremost training facilities, training 2,000-odd people a year through 7,000 man days of training. Being a dedicated facility, the ELC allows us to design tailor-made and flexible programmes, so that training at Essar is always relevant and customized both to business needs and the needs of theindividual. Our programmes cover a wide range of technical, functional and behavioral training, from materials management to e-commerce procurement to transformational leadership and communication and negotiation skills. Our faculty includes the best of experts and practicing managers. Since we believe in imparting managerial & behavioral training, we also include a number of non-business modules like corporate

etiquette or parenting skills. The ELC also has extensive resources for self-development such as a business library of books and audiovisual material. Thus, we support and encourage all Essar employees to develop themselves to the fullest.

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

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

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

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

thinking through specially designed outdoor games and activities such as a treasure hunt or rappelling.

HR Policies at SAILSAIL has believed in the ideology of achieving eXcellence through investing in people and technology simultaneously. Company continues to work for the development and realization of best potential of its people. To promote motivational climate and achieve growth, thrust on optimal utilization of manpower with focus on improvement in productivity continued. Efforts were made for promoting better employee participation. Steps were taken to make sure a smooth transition for upcoming production facilities and preparations to work with a leaner workforce for enhanced productivity. HR initiatives kept focus on building teams with wider spectrum with reference to skill and knowledge. During the fiscal 2009-10, all the five integrated steel plants recorded their best ever labour productivity. An overall labour productivity of 226 Tonnes/man/year was achieved by SAIL, with Bhilai Steel Plant touching a new peak at 340 T/man/year in Jan10. Overall manpower figure at the year end was 1,16,950 (after 1585 employees of BRL joined SAIL family as a part of merger of BRL with SAIL) comprising 15,704 eXecutives and 1,01,246 non-eXecutives; registering a net reduction of 5930, achieved by way of judicious recruitments, redeployment strategies and multi-skilling. Thrust continued on developing employees for a better role. Over 60 eXecutives at GM/DGM level were nominated to participate in Specialized/Advance management programmes, conducted by Premier Management Institutes for eXposure to best business practices and leadership development. Overall, nearly 46,180 employees were trained during the year on different contemporary technical and managerial modules; achieving level-1 of Performance Evaluation Parameter under MOU with Government of India for the financial year 2009-10. Also, SAIL HR EXcellence Awards initiated with IIM-Ahemdabad as the knowledge and process partner with an objective to provide a platform to share proven HR Practices / systems across the industry and thereby enrich our knowledge in the field and spur new innovations.

Implementation of Presidential Directives on reservation for SC/STs Presidential Directives on Scheduled Castes and Scheduled Tribes continued to be implemented. As on 31st March 2010, out of total manpower 15.39% were SC and 12.76% were ST.

During the year 2009, out of total recruitment of 594 made by SAIL, 136 candidates belonged to SC category and 40 candidates belonged to ST category. Besides, Company has undertaken several initiatives for the socio-economic development of SCs/STs and other weaker sections of the society, such as providing free education, boarding, loadging and medical facilities to 128 SC/ST students belonging to BPL families/primitive tribes, awarding 132 scholarships to encourage meritorious and deserving SC/ST students and not charging tuition fee from SC/ST students studying in the Company run schools.

GRIEVANCE REDRESSAL MECHANISM Effective internal grievances redressal machinery exists in SAIL plants and units, separately for executives and non-executives. Grievances in SAIL plants/units are dealt in 3 stages and employees are given an opportunity at every stage to raise grievances relating to wage irregularities, working conditions, transfers, leave, work assignments and welfare amenities etc. The system is comprehensive, simple and flexible and has proved effective in promoting harmonious relationship between employees and management.

HR Policies at Jindal SteelEmployees form the major intellectual capital of Jindal Steel and Power Limited (JSPL). Being an equal opportunity employer, JSPL encourages leadership and innovation to train its workforce and keep them abreast with latest industrial trends. As the company looks to expand its business both at an international and domestic level, it aims to develop a skilled and cohesive workforce. The company provides an open and dynamic work environment to all its employees.The management plays an imperative role in developing a cordial and rewarding relationship with its employees. Detailed on-the-job training is provided to the employees in order to induct them to the working of the organisation. The company focuses on teamwork, innovation and the freedom to excel at all levels and rewards its employees with additional benefits. A performance-oriented work culture with scope of rapid growth is encouraged, making JSPL an employee-friendly organisation.The human resource policy of the company focuses on an inclusive growth rate of the organisation and retention of suitable workforce for this purpose.According to its own requirements from time to time, the company has revised and updated its human resource policies and procedures. Engagement of management consultants to identify the skill sets of people and prepare them for the competitive market is one of the ideals which JSPL diligently follows.Training programmes are conducted at various levels to enhance the skill of the workforce. As per the guidelines of labour laws, safety awareness programmes are organised to

minimise the chances of accidents within the work premises. Proper guidelines are also provided to enhance work efficiency levels. Rotation of employees is also actively undertaken to create job satisfaction and increase interaction among employees. To keep the employees fresh and energetic, world class recreational facilities are also provided to them. Medical and educational facilities are also offered to all the employees at plant locations.Open house sessions are also arranged with the top management to increase direct dialogue approach & increase transparency.

TrainingThe Human Resource department will endeavours to provide on an average 4-5 days of training per employee on an annual basis. The training programme is organized/conducted based on training needs identified. The participants are nominated for both in-house and external training including overseas training programmes. The responsibility of functional as well as behavioural/management training rests with the HR department concerned, who will plan for and execute the training initiatives in close co-ordination with functional heads.

JLMGJSPL is highly committed to acquiring the best talent from the industry and nurturing & developing human assets to enhance its own function. It is vital that the selection procedure of the human assets be such that the Company is able to select the best talent. In accordance with its objectives of creating a pool of skilled and capable employees, Jindal Lead Management Group (JLMG) has been introduced in our Company.

Career growth planThe career path defined typically for JLMG recruits indicates a person’s promotion to reach the level of AVP on completion of 10 years subject to his performance. Post achieving the level of AVP, one’s further growth is based on his/her performance.

Mentoring

Mentoring refers to a developmental relationship where a more experienced person (the mentor) helps and guides a young and inexperienced person (the mentee) to better his professional life. Mentoring goes beyond the normal boss-subordinate relationship as it also involves sharing of professional skills, expertise and experience with the mentee. In order to derive the best out of this relationship, the mentor has to provide a congenial atmosphere wherein the mentee shall feel comfortable. It also helps in developing interpersonal relationships and knowledge sharing.

GETSJSPL has always emphasised on working with a fresh talent pool. The Company recruits fresh engineers at the entry level under the Graduate Engineers Training Programme (GET). GET has been introduced so that young engineers can be recruited and shaped as per the working standards and methodology of the Company. The first All India GET Recruitment process was initiated in 2007, where 125 fresh engineer graduates across 4 disciplines i.e. mechanical, electrical, I&C & metallurgical were hired by JSPL.Recruitment details under GET are as follows:SL GET Recruitment Activities 2007 2008 20091 No. of Applications received 15000 11000 230002 Candidates appeared in the Written Test 1450 4970 180323 Candidates called for GD & Interview 500 940 18654 GETs joined 125 170 270 offers made5 Percentage: SL 4/SL 2 8.6% 3.4% -6 Engineering Disciplines Recruited Mechanical,

Electrical, I&C, Metallurgical

Mechanical, Electrical, I&C, Metallurgical,Civil, Mining

Mechanical, Electrical, I&C,

Metallurgical,Civil, E&C

The above statistics clearly shows that top 5 - 8 % candidates are recruited by JSPL from the total number of applicants. The Methodology of recruitment under GET is through:• Written Test (Domain + Aptitude)• Group Discussion• Personal Interviews (Technical + HR)• Physical Fitness Assessment (started from 2008)The new recruits, at first, are acclimatised to organisational culture, values and also to the systems, quality procedures etc. They also go through an awareness training on the safety procedures. All the GETs undergo a structured class room training for 3 months in which they are trained in the following:• Behavioral aspects like: Team Building, Attitude transformation, Communication skills, Decision making & Problem Solving• MDP on Iron, Steel & Power by reputed training institutes like IIPM, NISST, TAACT etc.

JSPL offers attractive remuneration packages to GETs and Management Trainees in order to reward and retain the best talent. This recruitment scheme has helped enhance JSPL’s brand image and created considerable awareness about the company among the student fraternity.

OPJEMS SchemeThe O. P. Jindal Engineering & Management Scholarship was started in the year 2007 to commemorate Shri O.P. Jindal, the founding father of the Jindal group. The O P Jindal Engineering & Management Scholarship (OPJEMS) is a timeless tribute to this visionary leader. Shri O.P. Jindal’s sons share a very close association with the project and the group promotes this venture with a dedicated approach.

21 engineering and 10 management colleges were invited to participate in the scholarship process for the year 2008. Reputed management institutes like IIM - Ahmedabad, Lucknow, Bangalore, Kolkata, Indore, Kozhikode, XLRI, MDI-Gurgaon, SPJIMR, FMS-Delhi and engineering institutes like IIT- Kanpur, Delhi, Kharagpur, Mumbai, Chennai, Roorkee, Guwahati, IT-BHU, NIT—Tiruchirappalli, Suratkal, Allahabad, Warangal, Bhopal, Jaipur, Nagpur, Raipur, Kurukshetra, Rourkela, Jamshedpur, Durgapur and OPJIT-Raigarh participated in OPJEMS-2008.

Each academic year, the top 20 students from these Institutes are considered eligible for the scholarship (in terms of grades scored in the previous written exam) making it 2020 applicants in all. But in order to be more considerate, each participating institute is ensured at least a single scholarship. Following the ideals of individual educational excellence, meritorious students from all over the nation are presented with the scholarships. Scholarships are granted after following a rigorous selection process, which involves application, written test and personal Interview.

The scholarships can be classified into two kinds:

INR 125000 for a Management student. INR 65000 for an Engineering student.

A student already holding another scholarship can compete for OPJEMS, provided he / she meets the required criteria. OPJEMS is awarded solely on the basis of merit, irrespective of the financial backgrounds of the students.