1

INTERNSHIP REPORT ON

A case study ON VSP with reference to recruitment

By

K.MEGHANA DASARI

REG NO: 13MB5318

In partial fulfillment of the requirement

For award

Of

MBA(2013-15)

IN

HUMAN RESOURCE MANAGEMENT

August, 2014

2

ISBR-B-SCHOOL,ELECTRONIC CITY,

BANGALORE-560100

CERTIFICATE

This is to certify that Ms.K.Meghana Dasari, Roll no 13MB5318 student

of MBA has successfully completed his project on in partial fulfillment

for the award of degree of MBA during the academic session 2013-

15.The study report has been approved as it satisfies the academic

requirements prescribed for the said degree.

Faculty and Internal Guide Signature of HOD

(Prof. KAVITHA R GOWDA)

3

4

DECLARATION

I, K Meghana Dasari , Roll no 13MB5318, student of MBA(Batch 2013-

2015) of ISBR Business School, Bangalore hereby declare that the

research report on A CASE STUDY ON VSP WITH REFERENCE TO

RECRUITMENT, is an original and authenticated work done by me. I

further declare that it has not been submitted elsewhere by any other

person in any of the University for the Award of any degree or diploma.

Date: (K.Meghana Dasari)

5

ACKNOWLEDGEMENT

The gratification and elation of this project will be incomplete without

mentioning all the people who helped me to make it possible, whose guidance

and encouragement were valuable to me.

I would like to thank each and every employees of VISAKHAPATNAM STEEL

PLANT who has directly or indirectly helped me in carrying out this project.

I take this opportunity to express my heartfelt thanks to my project guide

Mr.Y.BALAJI, DGM (HRD) of VISAKHAPATNAM STEEL PLANT for his

constant moral support, guidance and suggestions during the progress of my

project. I am so thankful to the VISAKHAPATNAM STEEL PLANT, for

giving me an opportunity to undertake my project work.

I want to express my sincere thanks to my Guide Mr.N.V.V.L.N.MURTHY,

AGM, PERSONNEL DEPT. for his support and valuable guidance in successful

completion of my project work.

My special thanks to Mr.O.R.M.RAO, AGM (MD) of VISAKHAPATNAM

STEEL PLANT, for his valuable suggestions and co-operation throughout the

project work.

I am greatly indebted to my faculty guide, Prof. KAVITHA R GOWDA of

ISBR for her kind guidance and helpful suggestions in every stage of this project.

This project would not have been successful without her help.

(K.MeghanaDasari)

6

CONTENTS

Sr. No. Particulars Page No.

1

Title Page

1

2

Declaration

4

3

Acknowledgement

5

4

Executive Summary

8

5

Chapter I

Introduction

i) Company Profile

ii) Industry Profile

iii) SWOT analysis

10

36

45

6

Chapter II

i) Importance of study

ii) Research methodology

51

52

7

Chapter III

Department study

54

8

Chapter IV i) Observations ii) Suggestions iii) Limitations iv) Conclusion

89

104

110

113

9

Appendix

i) Bibliography

114

7

EXECUTIVE

SUMMARY

8

Two of the most critical activities within the human resources (HR) domain are

recruiting and staffing. This involves identifying and attracting the right people to fill

positions, ranging from upper management and key decision-maker roles to entry-

level personnel. Finding the right person for each position and doing so in a cost-

effective and timely manner is a challenge for any organization, but it is becoming

especially difficult for public sector entities. Public sector organizations often are at a

disadvantage when compared to the private sector in recruiting and staffing processes.

The private sector typically outmatches the public sector on compensation, including

bonuses and various other perks, such as stock options.

Public sector organizations also often find themselves competing against not only

private companies, but each other, in attracting potential employees. Smaller

organizations in more isolated regions of the country, for example, find that multiple

jurisdictions often compete over the same diminishing applicant pool and, in turn,

drive up compensation costs across the region. These factors have forced many public

sector organizations to develop creative strategies and solutions for recruiting and

staffing. Many organizations report positive overall outcomes from temporary

workers transitioning to permanent employees. Other organizations are improving

their visibility by developing a branding strategy complete with consistent messaging

and marketing. Finally, organizations are tapping into professional and cultural

networks to reach individuals with specialized skill sets and increase the overall

diversity of their workforce. Various new approaches are proving successful, and

these models demonstrate great potential for public sector HR. At the same time,

some of the strategies described here are just the starting point for organizations

overhauling recruiting or staffing efforts. HR continues to struggle with gathering data

and measuring performance, both important steps in efforts to transform HR

operations or utilize alternative models like shared services and outsourcing.

Information technology (IT) is an important enabling tool for recruiting and staffing,

but overall use of IT remains limited, and even the most advanced systems are not

being used to their full potential.

9

CHAPTER -I

INTRODUCTION

Company profile

Industry profile

SWOT analysis

10

INTRODUCTION

Steel comprises one of the most important inputs in all sectors of economy. Economy

of any country depends on the strong base of the iron and steel industry. Steel is a

versatile material with multitude of useful properties, making indispensable for

furthering and achieving continual growth of the economy be it construction,

manufacturing infrastructure or consumables. The level of the steel consumption has

long been regarded as an index of industrialization and economic maturity attained by

country.

Keeping in view the importance of steel the integrated steel plant with foreign

collaboration was setup in the public sector in the post independence era. The growth

of any organization depends on the overall performance such as human resource

management, productions, marketing resources and financial performance of the

organization. The growth of any organization can be judged by the growth of the

employee reflecting the performance of organization in larger scale. Vital aspect of

HRM because the performance of an individual in an organization is largely driven by

the work atmosphere or work culture that prevails at the workplace. A good working

condition is one of the benefits that the employees can expect from an efficient human

resource team. A safe, clean and healthy environment can bring out the best in an

employee.

An organization cannot build a good team of working professionals without good

Human Resources. The key functions of the Human Resources Management (HRM)

team include recruiting people, training them, performance appraisals, motivating

employees as well as workplace communication, workplace safety, and much more.

11

COMPANY PROFILE

Introduction

Vision

Mission

Objectives, Policies

Introduction to various

departments.

12

PROFILE OF VISAKHAPATNAM STEEL

PLANT

Visakhapatnam Steel Plant, popularly known as vizag Steel, is one of the major steel

producers in India. Visakhapatnam steel plant the first coast based steel plant of

India is located 16 km south west of city of destiny i.e., Visakhapatnam Bestowed

with modern technologies, VSP has an installed capacity of 7.3 million tons per

annum of liquid steel and 6.773 million tones of saleable steel. At VSP there is

emphasis on total automation, seamless integration and efficient up gradations which

results in wide range of long and structural products to meet stringent demands of

discerning customers with in India and abroad. VSP products meet exacting

international quality standards such as JIS, DINAND BIS, and BS etc.

VSP has become the first integrated steel plant in the country to be certified to all the

three international standards for quality (ISO-9001) for environment management

(ISO-14001), for Occupational Health & Safety (OHSAS-18001). The certificate

covers quality system of all operational, maintenance and service units besides

purchase system, training and marketing functions spreading over 4 regional

marketing offices, 24 branch offices and stock yard located all over the country.

VSP successfully installing and operating efficiently Rs460 crores worth of pollution

control and environment control equipments and converting the barren landscape by

planting more than 3 million plants has made the steel plant, steel township and

surrounding areas into a heaven of lush greenery.

Steel occupies the foremost place amongst the materials in use today and pervades all

walks of life. All the key discoveries of human genius for instance steam engine,

railway means of communication and connection, automobile, aero place and

computer, are in one way or together with steel and with its sagacious and

multifarious application. Steel is a versatile material with multitude of useful

properties making it indispensable for furthering and achieving continual growth of

the economy be it construction, manufacturing, infrastructure or consumables. The

level of steel consumption has long been regarded as an index of industrialization and

13

economic maturity attained by a country. Keeping in view the importance of steel, the

following integrated steel plants with foreign collaboration were set up in the public

sector in the post independence era:

Sl. No Steel plant Collaborated by

1 Durgapur steel plant Britain

2 Bhilai steel plant Erstwhile USSR

3 Bokaro steel Plant Erstwhile USSR

4 Rourkela steel plant Germany

Background:

With a view to give impetus to industrial growth and to meet the aspirations of the

people from Andhra Pradesh, Government of India decided to establish integrated

steel plant in public sector at Visakhapatnam (AP). The announcement to this effect

was made in the parliament on 17th April, 1970 by the Prime Minister of India

Smt.Indira Gandhi.

A site was selected near Balacheruvu creek near Visakhapatnam city by a committee

set up for the purpose, keeping in view the topographical features, greater availability

of land and proximity to a future port. Smt.Indira Gandhi laid the foundation stone for

the plant on 20th

January 1971.

Seeds were thus sown for the construction of a modern & sophisticated steel plant

having annual capacity of 3.4 million tons of hot metal. An agreement was signed

between Government of India and the erstwhile USSR on June 12th

1979 for setting

up of an integrated steel plant to produce structural & long products on the basis of

detailed project report prepared by M/s M.N. Dustur& company. A comprehensive

received DPR jointly prepared by soviets & M/s Dustur& company was submitted in

Nov 1980 to Government of India.

The construction of the plant started on 1st Feb 1982. Government of India on 18

th Feb

1982 formed a new company called Rashtriya Ispat Nigam Ltd. (RINL) and

transferred the responsibility of construction, commissioning & operating the plant at

Visakhapatnam from steel authority of India Ltd to RINL.

To meet growing domestic needs of steel, Government of India decide to setup an

integrated steel plant at Visakhapatnam, an agreement was signed with erstwhile

14

USSR in 1979 for co-operation in setting up 3.4mt integrated steel plant at

Visakhapatnam.

It can be seem from the above table, during the year 2002-03, the company turned

around by earned a net profit of Rs 521 crores.

In the same year, it bagged the PRIME MINISTER TROPHY for its excellent

performance in the steel industry. In September 2003, RINL became a DEBT FREE

COMPANY.

Since Commission VSP has already crossed many mile stones in the fields of

production, productivity & exports. Coke rate of the order of 509 Kg/Ton of Hot

metal, average converter life of 2864 heats an average of 23.6 heats per sequence in

continuous Bloom Caster. Specific energy consumption of 6.07 G Kale/ton of liquid

steel, a specific refractory consumption of 8.94 kg and a labor productivity of 265

Ton/man year are some of the peaks achieved (during the year 2004-05) in pursuit of

excellence.

Board of Directors:

BOARD OF DIRECTORS

CHAIRMAN-CUM-MANAGING

DIRECTOR

SHRI. P. MADHUSUDAN

DIRECTOR (PERSONNEL) Dr.G.B.S.PRASAD

DIRECTOR (COMMERCIAL) SRI. T.K. CHAND

DIRECTOR (OPERATIONS) SRI. D.N.RAO

DIRECTOR (FINANCE) SRI T.V.S.KRISHNA KUMAR

DIRECTOR (PROJECTS) SRI P.C MAHAPATRA

CVO SRI .SIDDARTHA KUMAR

GM(CA) & COMPANY

SECRETARY

SRI P MOHAN RAO

15

VISION, MISSION & OBJECTIVES

Vision:

To be a continuously growing world class company

We shall

Harness our growth potential and sustain profitable growth.

Deliver high quality and cost competitive products and be the first choice of

customers.

Create an inspiring work environment to unleash the creative energy of

people.

Achieve excellence in enterprise management.

Be respected corporate citizen, ensure clean and green environment and

develop vibrant communities around us.

Mission:

To attain 20 million ton liquid steel capacity through technological up-gradation,

operational efficiency and expansion; augmentation of assured supply of raw

materials to produce steel at international standards of cost and quality; and to meet

the aspirations of the stakeholder.

Objectives:

Stabilize 6.3 Mt of Liquid Steel expansion by 2014-15 with the mission to

expand further in subsequent phases as per the corporate plan.

Revamp existing Blast Furnaces to make them energy efficient to

contemporary levels and in the process increase their capacity by 0.5 Mt each,

thus total hot metal capacity to 7.5 Mt. by 2015-16.

Achieve higher levels of customer satisfaction.

Vibrant work culture in the organization.

Be proactive in conserving environment, maintaining high levels of safety and

addressing social concerns

Core Values:

Commitment

Customer Satisfaction

Continuous Improvement

16

Concern for Environment, Creativity & Innovation

VSP POLICIES

VSP takes all necessary actions for the fulfillment of regulatory requirements. It has

dedicated departments for this purpose. Energy conservation, environmental

preservation, safety in work place, and occupational health gets highest priority in the

company. Some of the policies in this regard are reproduced below.

Quality Policy:

Supply quality goods and services to customers delight.

Document, Implement, Maintain and periodically review the management

systems including the policy, Objectives and targets.

Focus on conservation of natural resources and energy with concern for

Environment.

Comply with all relevant legal, regulatory and other requirements applicable

to products, activities and processes in respect of Quality, Safety,

Occupational Health & Environment, and also ensure the same by contractors.

Use resources efficiently and reduce waste & prevent pollution.

Continually improve Quality, Safety, and Occupational Health & Environment

performance.

Encourage development and involvement of employees.

Maintain high level of quality, Environment, occupational health and safety

consciousness amongst employees and contract workers by imparting

Educational & Training.

Energy Policy:

Document, implement, maintain and periodically review the energy

management system including the policy, objectives and targets.

Make energy conservation a way of life at RINL by promoting awareness

among all.

17

Support the purchase of energy efficient products and services and ensure

energy performance improvement in the design of new facilities as well as up

gradation of existing facilities.

Look for alternative sources to achieve energy security of the plant.

HR Policy:

Provide work environment that makes the employees committed and

motivated for maximizing productivity

Establish systems for maintaining transparency, fairness and equality in

dealing the employees

Empower employees for enhancing commitment, responsibility and

accountability

Encourage teamwork, creativity, innovativeness and high achievement

orientation

Provide growth and opportunities for developing skill and knowledge

Ensure functioning of effective communication channels with employees

Customer Policy:

VSP will strive to meet more than the Customer needs and expectations

pertaining to Products, Quality, Value for Money and Satisfaction

VSP greatly values its relationship with Customers and would make efforts at

strengthening these relations for mutual benefit

VSP strive for enhancing value for the money and value the relationship with

Customers.

IT Policy:

Follow best practices in Process Automation & Business Processes through IT

by in-house efforts / outsourcing and collaborative efforts with other

organizations / expert groups / institutions of higher learning, etc, thus

ensuring the qualityof product and services at least cost

Follow scientific and structured methodology in the software and other IT

infrastructure and ensure high levels of data and information software

development processes with total

18

Install, maintain and upgrade suitable cost-effective IT hardware, security

Strive to spread IT-culture amongst employees based on organizational need,

role and responsibilities of the personnel and facilitate the

objective of becoming a world-class business organization.

Enrich the skill-set and knowledge base of all related personnel at regular

intervals to make employees knowledge-employees

Periodically monitor the IT investments made and achievements accrued to

review their cost effectiveness

HRD Policy:

To create an organizational culture this nurtures employees potential for the

prosperity of the organization:

Identify development needs of the employees on a regular basis, provide the

necessary training and continually evaluate and monitor the effectiveness of

the training so the quality o the training also gets upgraded.

Provide inputs to the employees for developing their attitude towards work

and for matching their competencies with the organizational requirements.

Create an environment of learning and knowledge sharing by providing the

means and facilities and also access to the relevant information and literature.

Facilitate the employees for continuous development of their knowledge base

skills, efficiency, innovativeness, self-expression and behavior so that they

contribute positively with commitment for the growth and prosperity of the

organization while maintaining a high level of motivation and satisfaction.

Prepare employees through appropriate development programs for taking up

higher responsibilities in the organization.

Fulfill social obligations by providing training to the students of educational

institutions and to the trainees of the organizations.

VSP Technology: State-of-the-Art:

7 meter tall Coke Oven Batteries with coke dry quenching

Biggest Blast Furnaces in the country

Bell-less top charging system in Blast Furnace

100% slag granulation at the BF Cast House

Suppressed combustion LD gas recovery system

19

100% continuous casting of liquid steel

Tempcore and Stelmor cooling process in LMMM & WRM respectively

Extensive waste heat recovery systems

Comprehensive pollution control measures

Main Products of VSP: Steel products:

1) Angles 10)Nut Coke 2) Billets 11)coal tar 3) Channels 12)Anthracene oil 4) zBeams 13)HP Naphthalene 5) Squares 14)Benzene 6) Flats 15)Toulene 7) Rounds 16)Zylene 8) Re-bars 17) Wash oil 9) Wire Rods

By-products: 1) Granulated Slag 2) Lime Fines 3) Ammonium Sulphate

Major Sources of Raw Materials:

Raw Material Source

Iron Ore Lumps & Fines Bailadilla, MP

BF Lime Stone Jaggayyapeta, AP

SMS Lime Stone UAE

BF Dolomite Madharam, AP

SMS Dolomite Madharam, AP

Manganese Ore Chipurupalli, AP

Boiler Coal Talcher, Orissa

Coking Coal Australia

Medium Coking Coal (MCC) Gidi/Swang/Rajarappa/Kargali

20

Table No. 1.1 Major Units:

Department Annual Capacity

(000 T)

Units (3.0 MT Stage)

Coke

Ovens

2,261

4 Batteries of 67 Ovens & 7 Mtrs. Height

Sinter

Plant

5,256

2 Sinter machines of 312 Sq. Mtr. Grate area

each

Blast

Furnace

3,400

2 Furnaces of 3200 Cu. Mtr. Volume each

Steel Melt

Shop

3,000

3 LD Convertors each of 133 Cu. Mtr.

Volume and six 4 strand bloom casters

LMMM

710

4 stand finishing Mill

WRM

850

2 x 10 stand finishing Mill

MMSM

850

stand finishing Mill

Table 1.2 Production Performance (000 Tons):

Year

Hot

Metal

Liquid

Steel

Saleable

Steel

Labor

Productivity

(Tons/man year)

2006-2007 4,046 3,606 3,205 413

2007-2008 3,913 3,322 3,210 389

2008-2009 3,546 3,145 3,080 359

2009-2010 3900 3399 3,080 361

2010-2011 3830 3424 3100 339

21

2011-2012 3778 3410 3467 340

2012-2013 3998 3456 3467 363

Table 1.3 Commercial Performance (Rs. Crs.):

Year Sales Turnover Domestic Sales Exports

2006-2007 9,131 8,487 4243

2007-2008 10,433 9,878 55473

2008-2009 10,411 10,333 7832

2009-2010 10635 10284 35094

2010-2011 11517 11094 42247

2011-2012 14462 13490 41519

2012-2013 13552 12954 59,807

0

5,000

10,000

15,000

20,000

25,000

30,000

Hot Metal Labor Productivity(Tons/man year)

2012-2013

2011-2012

2010-2011

2009-2010

2008-2009

2007-2008

2006-2007

22

Table 1.4 FINANCIAL PERFORMANCE (.Crs)

Year Gross Margin Cash Profit Net Profit

2005-2006 2369 2337 1252

2006-2007 2632 2583 1363

2007-2008 3515 3483 1942

2008-2009 2356 2267 1335

2009-2010 1602 1524 796

2010-2011 1412 1247 658

2011-2012 1645 1454 751

2012-2013 1072 713 352

0

1000

2000

3000

4000

GrossMargin

CashProfit

Net Profit

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

1FINANCIAL PERFORMANCE

23

Major Sources of Raw Materials:

Raw Material Source

Iron Ore Lumps & Fines Bailadilla, MP

BF Lime Stone Jaggayyapeta, AP

SMS Lime Stone UAE

BF Dolomite Madharam, AP

SMS Dolomite Madharam, AP

Manganese Ore Chipurupalli, AP

Boiler Coal Talcher, Orissa

Coking Coal Australia

Medium Coking Coal (MCC) Gidi/Swang/Rajarappa/Kargali

Table 1.5 Major Unit sof raw materials

Department Annual Capacity

(000 T)

Units (3.0 MT Stage)

Coke Ovens

2,261

4 Batteries of 67 Ovens & 7 Mtrs. Height

Sinter Plant

5,256

2 Sinter machines of 312 Sq. Mtr. Grate area

each

Blast Furnace

3,400

2 Furnaces of 3200 Cu. Mtr. Volume each

Steel Melt

Shop

3,000

3 LD Convertors each of 133 Cu. Mtr. Volume

and six 4 strand bloom casters

LMMM

710

4 stand finishing Mill

WRM

850

2 x 10 stand finishing Mill

MMSM

850

6 stand finishing Mill

24

Man Power as on 01-03-2014:

Particulars Works Projects Mines Others Total

Executives 4250 421 117 1511 6299

Non

Executives

11016 48 221 800 12085

Total 18384

Introduction to Different Departments:

Company Affairs Department:

It is concerned with following functions:

1) Conducting of various Meetings as mentioned below:

Board of Directors

Committee of Management

Annual General/Extraordinary General Meetings

Annual General Meeting

Extraordinary General Meeting

Audit Committee

Technology Improvement and Bench Marking Committee

High Power Steering Committee(HPSC)

Committee for Award of Contracts relating to Project Expansion Contracts

Committee for Award of Contracts (CAC)

2) Delegation of Powers

3) Other Activities

Corporate Strategic Management:

Visioning & Corporate Planning Exercise

Annual Sustainability Plan & Five year Roll-On Plan

Annual Memorandum of Understanding (MOU) with Ministry of Steel

Monthly & Quarterly Reviews of above plans with Management

Quarterly Performance Reviews (QPR) with Ministry of Steel(MOS)

Identification & Analysis of Strategic Investments(JVs) for vertical integration

& diversification options

25

Enterprise Risk Management (ERM)

Promotion of Business Excellence concepts through

1) Project Utkarsh Initiatives

2) Knowledge Management system-GNANA

3) Corporate Awards

CSM acts as a nodal agency for co-ordination with Department of Public-Enterprise

(OPE), Ministry of Steel(MOS) and Ministry of Statistics &Programme

Implementation (MOSPI) for dissemination of critical information as required.

Finance and Accounts Department:

Finance & Accounts functions centre around arranging the Finances, facilitating and

accounting the operations and compliance with various statutes. Finance function is

general discipline having universal application. As such, it has its role in all forms and

types of business i.e., from a sole trader to the joint Stock companies, whether it is

Indian or Multi-National Company. The function encompasses broadly, Finance,

Accounting, MIS, Audit, and taxation areas. Function covers the areas of raising of

Finances viz., Capital, loans and servicing thereof. Finance also covers the areas of

controls viz., Budgetary Control and Cost Control.

Accounting deals with recording of daily transactions, compilation of Annual

Accounts and their audit by various agencies, viz, statutory Auditors appointed under

the Companies Act, Audit by Controller & Auditor General of India in case of

Government Companies, Internal Audits and special Audits.

Training & Development:

The needs of induction training, skill up gradation, unit training, computer related

training, refresher training, foreign training, faculty development etc, are attended by

the Training & Development Centre while management development and attitudinal

development are taken care at the Centre for HRD.

Training in certain specialized areas like safety, fire prevention, occupational health

etc. is also taken up by departments specializing in respective fields.

Conduct Training:-

Once the trainer is identified then the dates should be fixed for the training program

and it should be conducted. The trainer may use various techniques to train the

employees i.e. either by classroom method or demonstration method or slide showing

method or training the employees on the equipment and many more techniques can be

26

used by the trainer. In this way by following either all the above said methods or by

following any one the trainer can train the trainees.

Implementing of the Learned Skills:-

Once the training is completed then comes the stage of implementation where the

employees implement their newly learnt skills at their respective jobs. Whatever the

employees learnt in the training may be difficult to implement but by following the

techniques taught to them at the training they can easily implement their skills. The

implementation is done under the follow up action of the trainer.

Assessment Test:- An Assessment test is conducted at the end to know the knowledge gained by the

employees and how far they are able to recollect the learned material. This test would

give the result of how much knowledge employee gained by the training and what

score he gained in the test and as well it helps in knowing the performance level of the

employee.

If not Assessed then Retrain:- If at last the employee has not qualified the test then it means that the employee has to

be retrained so that he gains the required skill. In this way assessment test helps in

knowing the knowledge gained by the employee.

In this way On the Job Training carries all the above steps, which should be

conducted sequentially so that the training is given successfully.

Production Facilities:

The production facilities in the RINL are most modern amongst the steel industry in

the country. The know-how and the technology have been acquired from different

parts of the world from the reputed/established manufacturers.

Some of the production facilities in RINL are:

7 meter coke ovens of RINL are the tallest so far built in the country.

Base Mix Yard for sinter plant introduced for the first time in the country

helps in excellent blending of the faced material to sinter machine and

production of consistent good quality sinter.

27

3200 cubic meter two blast furnaces i.e., Godavari and Krishna with bell less

top charging equipment and 100% cast house slag granulation, the biggest to

be setup in the country have done away either the conventional bell charging

system.

100% continuous costing of liquid steel into blooms resulted in lowest losses

and better quality of blooms.

RINL has sophisticated and latest features of automation of large polling mills

consisting of

Light and Medium Merchant Mill (LMMM) which include billet and bar millWire

Road Mill (WRM)

Medium Merchant and Structure Mill (MMSM)

The operations of blast furnace, steel melting shop and rolling mills have been

entirely computerized to ensure consistent quality and efficient performance.

Marketing Network:

VSP has a wide network of Regional Offices and Branch Offices spread across the

country for marketing of its products. There are 5 Regional Offices and 23 Branch

Offices. Stock Yards are attached to each of the Branches. These are catering to the

needs and expectations of the customers in various segments. The details of Regional

Offices and Branch Offices are brought out below:

Region Location of Regional

Office

Branches

East Kolkata Bhubaneswar, Kolkata, Patna

North Delhi Agra, Chandigarh, Dehradun,

Delhi, Faridabad, Ghaziabad,

Jaipur, Kanpur, Ludhiana

West Mumbai Ahmedabad, Indore, Mumbai,

Nagpur, Pune

South Chennai Bangalore, Chennai, Kochi,

Coimbatore

Andhra Visakhapatnam Hyderabad, Visakhapatnam

28

Personnel Department:

One of the primary objectives of Organizations is to develop a well- knit personnel

policy and comprehensive personnel systems that are result-oriented and to develop

an organizational culture which motivates employees to contribute their best towards

the achievement of organizational objectives. In accordance with this objective, VSP

has given considerable emphasis on development of human resources, as well as

formulation and implementation of progressive personnel policies, systems, rules and

procedures with an objective to synchronies organizational needs with organizational

needs with individual aspirations. Since inception, VSP has held emphasis on

effective man management as it subscribes to the belief that effectiveness and success

of the organization depend largely on the skills and commitment of the people.

The rigorous and systematic approach to recruitment- from fresh candidates her

upwards-training, promotions and rewards have all helped to meet the aspiring needs

of the individual and thereby the goals of the organization.

VSP has developed a comprehensive scheme of career planning and managerial

succession. In the field of industrial relations, VSP encourages a participative

approach. A career with VSP will mark the beginning a quest for advancement. VSP

is a fast expanding organization and provides ample opportunities for a rapid career

growth in the area where aptitude lies.

29

Organizational Chart (Personnel Directorate):

Pollution Control Measures adopted in VSP:

Generally, integrated steel plant is seen as a major contributor to environmental

pollution as it discharges volumes of waste products. Elaborate measures have been

adopted to combat air and water pollution in VSP has planted more than 3.4 million

trees over an area of 35 Sq. Kms. And incorporated various technologies at a cost of

Rs.460 Crores towards pollution control measures.

Sources of Funds:

VSP raise its working capital from of 10 Bankers. The following are the 10 banks

where funds for finance are raised.

State Bank of India (SBI)

Canara Bank

Directorate (Personnel)

ED (P&IR) ED (P&CS)

GM (P)-Works GM (P)-Non

Works

GM (CP&C) GM (Law liaison)

officer SC&ST

GM(Training & HRD)

GM (TA)

GM (MS)

DGM (Admn) & Liaison I/C

GM (M & HS)

30

UCO Bank

Bank of Baroda

Andhra Bank

State Bank of Hyderabad

Allahabad Bank.

HSBC

Industrial Development Bank of India (IDBI)

Indian Overseas Bank (IOB)

Achievements & Awards:

The efforts of VSP have been recognized in various fora. Some of the major awards

received by VSP are in the area of energy conservation, environment protection,

safety, quality, Quality Circles, Rajbhasha, MOU, sports related awards and a number

of awards at the individual level.

Some of the important awards received by VSP are indicated below:

Award Purpose Year

Excellence Award by Institute of

Economic Studies

For excellent performance in

Steel industry 2014

Corporate Vigilance Excellence

Award 2013-14

Outstanding initiatives in

vigilance arena

2014

Hindi Award - HINDI

SALAHKAR SAMITI Of Ministry

Of Steel

For implementation of the

Official language of Hindi. 2014

"ICON OF THE YEAR AWARD

2014" TO SRI P

MADHUSUDAN, CMD- RINL

Recognition by ICAI 2014

"GREATEST CORPORATE

LEADERS OF INDIA AWARD"

TO SRI P MADHUSUDAN,

CMD- RINL

Recognition for Corporate

Leaders 2014

Significant Achievement in CII

EXIM Bank Award for Business

Excellence 2013

Overall Excellence in all

activities of the company 2013

Vishwakarma Awards -

VishwakarmaRashtriyaPuraskar)

for 12 employees

Innovative suggestions for higher

efficiency, productivity & process

improvements

2013

First prize of prestigious Indira

Gandhi Rajbhasha Shield For effective implementation of

Official Language 2013

31

Award for Second best House

Magazine in Hindi 'Sugandh'

For excellence in House

Magazine in Hindi 'Sugandh 2013

Cost Management Excellence

Award by Institute of Cost

Accountants of India , New Delhi

For excellence in Cost

Management 2013

National Vigilance Excellence

Award by Vigilance Study Circle

. For eminent professionals in the

field of Vigilance

2013

ICC Corporate Governance and

Sustainability Vision Award 2013

For performance on Sustainability

and Corporate Governance

2013

CII-ITC Sustainability Award 2012 - Strong commitment

For performance on Sustainability

2013

Awards at ICQCC12, Malaysia -3 star (Top Most Category) for 3 QC

Teams

For implementation of QC

projects

2012

Vishwakarma Awards -

VishwakarmaRashtriyaPuraskar

(VRP) for 17 employees

Innovative suggestions for higher

efficiency, productivity & process

improvements

2012

Awards at INSSAN -2012 - 1st

place in the Excellence in Suggestion Scheme & 3 Merit prizes

For implementation of

Suggestions

2012

QCFI Award-2012 - Best Public

Sector Organization

For promoting Quality Concepts

2012

National Vigilance Excellence

Award by Vigilance Study Circle

(VSC)

For eminent professionals in the

field of Vigilance

2012

CIO-100 Award

For excellence in IT & Special

Award under the category

Networking Pioneer

2012

Indira Gandhi Rajbhasha Shield - First prize

For effective implementation of

Official Language Hindi

2012

Organizational Environment:

RashtriyaIspat Nigam Limited, a Navratna PSE with 100% ownership held by GOI, is

the corporate entity of Visakhapatnam Steel Plant-the countrys first shore based

integrated steel plant at Visakhapatnam, Andhra Pradesh. Visakhapatnam Steel Plant,

which was fully commissioned in 1992 with a capacity of 3Mtpa liquid steel, is now

32

in the midst of commissioning and stabilizing its 6.3Mtpa facilities, thus realizing its

first phase of growth in line with its Vision and Mission.

Main Products and Services: RINL, with its exclusive product mix of longs is the

largest producer of long products in the country with a market share of 8% in 2012-

13. The company also markets by-Products like coal chemicals (Ammonium

Sulphate, Naphthalene, Coal tar, Pitch, Benzyl products, etc.) and Granulated BF slag.

Delivery Mechanism:

A network of 5 e Regional offices, 23 Branch offices, stockyards, 5 Consignment

Sales Agents and 133 Retailers spread across the country cater to the delivery

requirements, which is further complemented by DLDs and RDs to ensure availability

of quality steel in rural areas at affordable prices. Retailers, DLDs and RDs provide

efficient channel to ensure the availability of RINL products at various points of

consumption that cannot be directly accessed by the company.

Culture of the organization:

Right from inception stage, a conscious effort on inculcating a New Work Culture

of Commitment, Continuous improvement, Concern for environment and Customer

orientation among employees were initiated and appropriate systems put in place,

which over a period of time has evolved into a culture of Creative and Innovative

improvements across the organization.

Employee Profile, Education Levels, Work Force, Job Diversity, Use of Contract

Employees:

Total employee base can be organized into non-executive and executive grades.

Categorization by department also provides a basic segmentation for the purpose of

administrative convenience and structured deployment and monitoring of various

initiatives fig., shows the overall manpower, age profile, gender diversity and

qualification of employees in the organization. Apart from the regular employees on

the rolls of the company, the company also engages contractual labor force for

carrying out non-core activities in the production facilities.

33

35%

65%

Manpower

Executives

Non Executives

40%

9% 27%

15% 9%

Qualification

Engineering

Graduates/PG

Graduates/PG

Engineering

Graduates/PG

34

Main facilities of the plat(Not Exhaustive)

Salient Technological features at

3Mtpa

Salient technological features at

6.3Mtps

7M tall Coke Oven Batteries with 100%

CDQ3200 Cu.m Blast Furnaces with bell

less top charging100% Continuous

castingStelmore and Tempcore processes

at Mills

3800 Cu.m BF-Profilometer, copper

staves, PCI etc.,

Sinter Plant-Circular cooler, chamber

type roof mounted Burner etc.,

CCM-Auto Mould technology, Electro-

Magnetic StemmingWRM-High Speed

Mill (105-110m/s), digital furnace.

Major Technologies, Equipment, Facilities:

Technologies adopted (Fig) during the inception of plant were the first of its kind in

the Indian steel industry, which RINL over the years has harnessed and improvised

upon, to build a unique competitive advantage around its operational efficiency. It

will vet further strengthened with stabilization of the 6.3Mtpa expansion units.

RINL has been a forerunner in adoption of green technologies in the process of steel

making through the BF-BOF route, in 1980s, well before the concepts of sustainable

development emerged as a concern in the industry.

An initial investment of 468Cr was made on clean technologies, which was 5.5% of

the total project cost and the thrust continues even during the current expansion to

6.3Mtpa with a total investment of1283Cr, which is 10% of the total project cost(fig)

3%

97%

0 0

Gender Diversity

Women

Men

35

Aspect Benefit

Waste heat recovery at coke

Dry Cooling Plant(CDQ)

Generation of Power(2x7.5MW)through

BPTS 14MW power generation from COB-

IV

Waste gad utilization (CO,

BF&LD gas)

Used as fuel in furnaces and boilers.

Utilization of top pressure at

BF through Top Recovery

Turbine(TRT)

Generation of power(2x12MW) through

GETS

Dry fog dust suppression at

RMHP

Reduced dust

Evaporative cooling systems at

LMMM&MMSM

Generation of process steam

Aspect Benefit

Waste heat recovery at straight line cooler of

sinter plant

20.6MW power generation

Secondary emission control system at Steel

Melt Shop-2

Cleaner environment

Waste heat recovery at Mills Generation of process steam

by recovery of heat from the

skids reheating furnaces

Waste heat recovery at BF-3 stoves Used for pre-heating of gas&

air

Generation of power using Lean BF gas (by-

product gas)

120MW power plant being

installed.

Installed capacity of green power at RINL at present is 36% of total captive power

generation capacity, through utilization of waste energy and the same is likely to go

up to 62%, after the completion of 63.3Mtpa expansion and other ongoing projects.

Statutory and Regulatory Environment:

Being GoI owned PSE, RINL complies with all the applicable regulations and has

been adopting the recent DPE guidelines on CSR, CG, SD, R&D etc., RINL has been

certified for all three system standards i.e., ISO 9001:2008, ISO 14001:2004 and

OHSAS 18001:2007. Further RINL is the first PSE and first in Steel sector in India to

adopt ISO 50001 standards for Energy Management System.

Stage of VSP in Business Life Cycle:

VSP is a production unit and there shouldnt be a saturation level as the saturation

level is followed by declination of profit, so when the sales of the business unit

reaches to a saturation level then expansion/ extension renovates the business life

36

cycle and exploration of new units and products can be practiced, such that

organization can maintain a consist position in market.

Table 1.10 2Business life cycle of VSP

Similarly VSP was into same stage of business life cycle, as it has already attained the

saturation level, in order to with stand the competition and to maintain its position in

the market, it has gone for expansion of 20000 acres evacuating the surroundings. As

for the company norms they also provided employment for unemployed and as well

as arranged for their accommodation. Government granted permission for new

recruitment of 10% of present manpower.

37

INDUSTRY

PROFILE

38

INTRODUCTION TO STEEL INDUSTRY IN INDIA

Whats in the name? Nothing, one might say. For steel a century old metalthere

additionally seems no reason for any possible non-unanimity of thought. But here

precisely are the chances for our going wrong. True, like most industries, the Indian

Steel Industry has experienced the highs and lows of the business cycle, has been

impacted by the globalization and has been subjected to the vagaries of market forces

in a liberalized set up. But at the end of it all, what we have today is a highly evolved,

resilient and an ever vigilant industry, which through adoption of State-of-the-art

technologies has kept pace with changing times, producing an output that has not only

stood the test of time but has globally transformed the way men think and do business

in steel.

India got into the steel making in the early 20th

century when JRD Tata set up the first

steel mill in the country in 1907 in Jamshedpur. Since then, the steel industry has

undergone a lot of change but the Tata Iron and Steel Company continues to be the

largest private steel maker in the country. The steel industry in the 70s and 80s was

dominated by TISCO & SAIL. With the price control regime in place, the steel

companies could turn in a profit without any major effort. But the situation soon

changed when the country decided to open the doors for foreign investment in 1991.

The pricing mechanism of Joint Plant Committee, which has been operating from

1964, was abolished with effect from January 1992.

In the initial economic reforms, industrialists saw the economy growing at 7% per

annum and since steel consumption is directly linked to the growth in economy, it was

assumed that demand for steel in the country would explode. This led to huge flow of

investments into the steel industry and many EAF based steel units were set up. The

1st phase (1914-1947) of its evolution can be traced to the beginning of the 20

th

century when the steel industry made a beginning as an icon of active patriotism,

thanks to the pioneering spirit of Swadeshi entrepreneurs in the private sector. This

period saw a small but viable steel capacity of about 1 million on the coffin.

Although the initial years justified these assumptions and steel consumption really

took off, this scenario was not to continue for long. The political instability and the

39

resultant slow down in reforms saw the economic growth slowing down. The South

East Asian economic crises were of course, the final nail on the coffin.

During the second phase (1947 1992), in the hands of the early planners this

industry became an important instrument for attaining rapid economic growth because

of two inherent advantage enjoyed by it. Firstly, Indias fast reserves of the basic raw

materials conferred a certain competitive advance to this industry. Secondly the

wide-ranging linkages, both forward & backward sector has with the rest of the

economy made it an ideal catalyst for generating and sustaining economic

development.

During the 4 decades, the Indian State invested heavily in crating large scale

integrated capacities in the public sector as part of the overall development strategy

aiming at self sufficiency in the heavy & basic industries. To ensure state control at

the commanding heights of the economy, large-scale capacity creation was reserved

for the public sector units (PUS) in a predominantly mixed economic environment.

INDIAS STEEL SCENARIO:

Indian Steel industry has always remained isolated and protected by Government,

where the steel industry was never expected to generate profit from business, but was

expected to provide employment to the unemployed. Presently India is operating with

open-hearth furnaces. The existing equipment, energy and labor in Indian Steel

industry are much low than the developed countries.

Indian Steel industry generates as significant amount of waste materials, which can

environmental problems. The four aspects of Waster Management namely

residue reprocess, recycle and recovery do not hold much ground in the Indian Steel

Industry. The Indian companies cannot spend more for pollution control. The energy

consumption per ton is 50-100% higher than that of the International norms.

The Indian steel industries have developed a bit in the recent years. The production is

going on properly. Many techniques are being implemented in the steel industries.

The countrys aim is to sell quality steel. The government is also helping the steel

industries in this basis. The apparent consumption of steel is shown below:

40

The development of steel industry in India should be viewed in conjunction with the

type and system of government that had been ruling the country. The production steel

in significant quality started after a 1990. The growth of steel industry can be

conveniently started by dividing the period into pre and post independence era. In the

period of pre Independence steel production was 1.5 million tons per year, which was

raised to 9.0 million tones of target by the seventies. This is the present of the bold

steps taken by the government to develop this sector.

PROBLEMS OF STEEL INDUSTRY:

Non-availability of good quality raw material is another problem faced by iron and

steel industry. The modern giant blast furnace needs high-grade iron ore and good

metallurgical coal.

Further, the industry is unable to get good quality coke and manganese is which the

principal raw materials next to iron ore are unfortunately most of our resources of

manganese ore are of poor quality besides the non availability of good quality raw

material, regular supplies of raw materials are very much handicapped due to the

absence of good transport facilities. Another problem faced by the steel industry

related to the difficulty in getting Zinc supplies for the continuous galvanizing line.

TECHNICAL PROBLEMS:

Bhilai had to execute orders for shipment of rails to Iran, South Korea and Malaysia.

Because of technical limitations, Rourkela plant is unable to substitute aluminum and

Zinc in the production of galvanized sheet, apart from internal technical problems; our

technology in the field of steel production is not a developed one when compared to

other advanced countries. For instance, Japan is production quality steel in spite of

importing raw material and additional material from other country.

GOVERNMENT CONTROL AND PRICING POLICY:

Since 1941, India steel and iron industry was almost completely state regulated. Both

prices and distribution of steel were under the control of Govt. The Govt. decided to

41

remove statutory control over the price and distribution of all, but a few categories

with effect from 1st March 1964 the Govt. Supervise the steel and iron inducted

according to the recommendation of Raja committee. But Raj committee in fixing the

steel price didnt regulate the price of the raw materials.

Table 2.1

Growth of Steel Industry

Table 1.6 The growth in a chronological order is depicted below:

S No

Year Growth

1.

1830

Osier Marshall Heathler constructed the first

manufacturing plant at prot-motor in Madras presidency.

2. 1874 James Erskin founded the Bengal frame works.

3. 1899 Jamshediji TATA imitated the scheme for an integrated

steel Plant

4. 1906 Formation of TISCO

5. 1911 TISCO started production

6. 1918 TISCO was founded

7. 1940-1950 Formation of My sore iron and steel initiated at

Bhadravathi in Karnataka

8. 1951-1956 First five-year plan The Hindustan Steel Limited (HSL) was born in the year 1954 with decision of setting up three

plants each with 1 million tones ingot steel per year at

Rourkela, Bhilai,Durgapur. TISCO started its expansion

programme.

9. 1956-1961 Second five-year plan A bold decision was taken up to increase the ingot steel output in India to 6 million tones per

year and its production at Rourkela, Bhilai and durgapur Steel

Plant started.

10. 1961-1966 Third five-year plan During the plan the three steel plants under HSL, TISCO & TISCO were expanded.

11. 1964 Bokaro Steel Plant came into existence

12. 1966-69 Recession period Till the expansion programmes were actively existed during this period

13 1969-74 Fourth five-year plan Salem Steel Plant started. Licenses were given for setting up of many mini steel plants and re-

rolling mills government of India. Plants in south are each in

Visakhapatnam and Karnataka. SAIL was formed during this

period on 24th

January 1973.

14 1974-79 Fifth five-year plan The idea of setting up the fifth integrated steel plant, the first re-based plant at

Visakhapatnam took a definite share. At the end of the fifth

five-year plan the total installed capacity from six integrated

plants was up to 10.6 million tons.

42

15 1979-1980 Annual plan. The Erstwhile soviet union agreed to help in

setting up the Visakhapatnam Steel Plant.

16. 1980-1985 Sixth five-year plan Work on Visakhapatnam Steel Plant started with a big bang and top priority was accorded to start

the plant. Schemes for modernization of Bhilai Steel Plant,

Rourkela Steel Plant, Durgapur steel plant and TISCO were

initiated. Capacity at the end of sixth five-year plan from six

integrated plants stood 11.50 million tones.

17. 1985-91 Seventh five-year plan Expansion works at Bhilai and Bokaro steel plant completed. Progress of Visakhapatnam

Steel Plant picked up and the nationalized concept has been

introduced to

Commission the plant with 30 MT liquid steel capacities by

1990.

18. 1992-1997 Eighth five-year plan The Visakhapatnam Steel Plant was commissioned in 1992. The cost of plant has become around

8755 crores. Visakhapatnam Steel Plant started the production

and modernization of other steel plants is also duly engaged.

19. 1997-2002 Ninth five-year plant Restructuring of Visakhapatnam Steel Plant and other public sector undertakings.

20. 2002-2007 Tenth five year plan-Steel industry registers the growth of

9.9% Visakhapatnam steel plant high regime targets achieved

the best of them.

21. 2007-2012 Eleventh five year plan-Steel industry registers the growth of

Visakhapatnam steel plant high regime targets achieved the

best of them.

22. 2012-2017 Twelfth five year plan-The steel industry has a bright future

as the union government has announced to create

infrastructure worth Rs 50 lakh crore in Visakhapatnam steel

plant.

Table 1.7

Steel Plants with foreign Collaborations

S.No Plant Collaboration Capacity of Finished

Steel Products

1. Rourkela Steel Plant West Germany

2. Bhilai Steel Plant Erstwhile USSR

3. Durgapur Steel Plant Britain

4. Bokaro Steel Plant Erstwhile USSR

43

Table 1.8 Annual Production

S.No Plant Collaboration Capacity

of Finished Steel

Products

Annual

Production

1. Rourkela Steel

Plant

West Germany 7,20,000

tunes

2. Bhilai Steel Plant Erstwhile USSR 7,70,000

tunes

3. Durgapur Steel

Plant

Britain 8,00,000

tunes

Table 1.9: Expansion:- S.No PLANT ORIGINAL

MT/YEAR

EXPANDED

MT/YEAR

1. Rourkela Steel

Plant

1.0 1.8

2. Bhilai Steel Plant 1.1 4.5

3. Durgapur Steel

Plant

1.0 1.6

4. TISCO 1.0 2.0

Growth Potential of Indias Steel Industry: India has set a vision to be an

economically developed nation by 2020. The steel industry is expected to play a

major role in Indias economic development in the coming years. The steel industry of

India has a very high growth potential and is expected to register significant growth in

the coming decades. India is expected to emerge as a strong force in the global steel

market in coming years.

The two major aspects that are expected to play a significant role in

the growth of the steel industry in India are :

Abundant availability of iron ore in the country.

The country has well established facilities for steel production.

Steel production in India has grown from 17 million tons in 1990 to 36 million tons in

2003. In India, steel demand is expected to grow by 3.3% to 76.2 Mt in 2014,

following 1.8% growth in 2013

The Major Sectors Where Consumption Of Steel Is Expected To

Grow In The Coming Years Are :-

Construction

44

Housing

Ground transportation

Hi-tech engineering industries such as power generation, petrochemicals,

fertilizers

Conclusion on Indian Steel Industry:

The Indian steel industry is among the upcoming industries of the world. It has a

number of iron ores, which means that it has plenty of resources from which to draw

its raw material.The rate of production of steel in India has been going up at a steady

rate in the last few years. In the recent times Orissa and Jharkhand have been

identified as the potential steel destinations of India the ones that would provide the

Indian steel industry with its necessary raw material. There are also a number of steel

companies in India like Tata and ArcelorMittal that are either coming up or have

established themselves as prominent forces in the world steel scenario.

In the recent times a lot of foreign direct investment is being made in the Indian steel

industry. In fact the rate of investment is being made in the last few years and, to a

certain extent, this increase has been contributed to by the growth potential of the

steel industry of India that is thought of as being impressive in the international steel

circle.

45

SWOT ANALYSIS

46

SWOT Analysis:

RashtriyaIspat Nigam Limited- Vizag Steel

Parent Company RashtriyaIspat Nigam Limited

Category Iron & steel

Sector Industrial products

Tagline/ Slogan Pride of Steel

USP

Only shore based integrated steel plant in the country

helps in improving cycle time

STP

Segment

Wire rods, rounds, reinforcement bars, angles, channels,

blooms, billets, beams

Target Group

Industries including automotive, construction, petroleum,

railways, shipbuilding

Positioning

The largest player in the domestic long steel products

segment and delivers high quality, cost competitive

products

SWOT Analysis

1. Conferred with Navratna status in India, making it a strong market player

2. Enriched product mix and sustained profitability and sales

3. One-fourth of saleable steel neutralized impact of rise in raw material prices

4. Dispatch of over 2 mn tons of steel by rail is the best for any year since

inception

5. The first Indian steel company to adopt energy management standard for

47

Strength

systematic improvement in energy efficiency

6. High commitment to achieve capacity levels.

7. Economics of sales.

8. High expansion potential.

9. Strong commitment to conserve environment

Weakness

1. Rise in input cost affects cost of production & operating efficiency

2. High interest and finance charges is a concern

3. Single location company- Only long products exposed to cyclical markets

4. Low return product mix.

5. Productivity below international standards.

6. Lack of ore.

Opportunities

1. Mergers & Acquisitions to gain market share

2. Continued emphasis on infrastructure building & several Greenfield projects

under execution will boost growth

3. Focus on strategic initiatives of Expansion, securing raw materials

4. Improve availability of ports and logistics. Access to import sources.

5. Proximity to southern markets. Increasing domestic demand due to thrust on

infrastructure development.

Threats

1. Rising in inflation rate and increase in interest rates by RBI etc. impacts the

rate of growth

2. The debt crisis in Europe & the political turbulence in the Middle east

3. Speculative market of raw materials is a real concern

4.Increasing competition.

5. Possibility of import duties declining further

48

Future Prospects:

To expand the plant from 6.3 mn tons to 20 mn tons in different stages.

Establish different plants like excel wheel and government has sanctioned a

manpower of 8% of the existing workforce in the achieving the integrated

plans.

Competition

Competitors

1. JSPL

2. TATA Steel

3. ISPAT

49

CHAPTER II

IMPORTANCE OF

STUDY

RESEARCH

METHODOLOGY

50

NEED FOR THE STUDY

There is a special role of every industry barring up on the need essentiality where

everything has to be done in accordance with standards that are regulated by the

government.

To understand this, conceptual idea is not only sufficient but also it needs a wide

knowledge and understanding of the factors that are affecting them. Especially

VISAKHAPATNAM STEEL PLANT has emerged from loss to profit making

company.

Now, the study is all about analyzing, how this has been possible for companies

where there is large scale of employees are working towards the growth of the

organization serving the needs of public. Through this study the code of conduct in

recruiting the manpower and the study of growth of an employee along with

organization, where the backbone of any organization in bringing expected outcomes

is performed by manpower.

51

SCOPE OF THE STUDY

The Study is based upon the part of Recruitment case study at VSP and the scope of

study is limited to recruitment of executives, and the analysis made on the basis of the

data that is available from the respective department. A business, work or any new

idea generates from need. Similarly the recruitment process also starts by the need for

manpower. Promotion and Retirement trends for the next 5 yrs assess the number of

members that should be recruited to deploy the work in right time. The Study

predominantly aims to explore the scope of recruitment in the coming 5 years.

52

RESEARCH METHODOLOGY

The research being an exploratory research deals with data collected from primary

sources. It is conducted to gain better understanding of certain situations. This

research is backed up by serious substantive research to make decisions.

Exploratory research for problem definition purposes.

Understanding the HR delivery process in detail and depth.

Understanding the process through observation in its natural setting.

Context dependent research.

Need for new insights in addition to quantitative research.

The information for the study has been obtained from two sources namely:

1. Primary Data

2. Secondary Data

1. Primary Data: It is the information collected directly without any reference.

Observations and through personal interview: In this study it is mainly

53

concerned with interviews from officers and staff, some of the information has

been verified or supplemented with personal observations .

Through telephone interviews: This is method of collecting information

involves contacting the respondents on telephone itself. The comparative

research of HR practices in private Sector and public Sector was made in this

study.

Deliberate sampling: In this case, having discussion with recruitment

manager and guidelines are taken from Asst. General Manager (HRD) and

with Deputy General Manager(HRD).

2. Secondary Data: This is taken from the annual reports, websites, company

journals, magazines and other sources of information of steel plant.

Analysis of Data: Here in this the previous years reports were considered and

the company journals were taken into consideration for the sake of

performance based data .

While evaluating and estimating the manpower requirement the existing

manpower details was collected from the respective officer of the concerned

department.

54

CHAPTER III

DEPARTMENT STUDY

55

Recruitment: Definition: The process of finding and hiring the best-qualified candidate (from

within or outside of an organization) for a job opening, in a timely

and cost effective manner. The recruitment process includes analyzing

the requirements of a job, attracting employees to that job, screening and

selecting applicants, hiring, and integrating the new employee to the organization.

This is one of the major responsibilities of the human resource team. The HR

managers come up with plans and strategies for hiring the right kind of people. They

design the criteria which is best suited for a specific job description. Their other tasks

related to recruitment include formulating the obligations of an employee and the

scope of tasks assigned to him or her. Based on these two factors, the contract of an

employee with the company is prepared. When needed, they also provide training to

the employees according to the requirements of the organization. Thus, the staff

members get the opportunity to sharpen their existing skills or develop specialized

skills which in turn, will help them to take up some new roles.

Sources of Recruitment:

Every organization has the option of choosing the candidates for its recruitment

processes from two kinds of sources: internal and external sources. The sources

within the organization itself (like transfer of employees from one department to

other, promotions) to fill a position are known as the internal sources of

recruitment. Recruitment candidates from all the other sources (like outsourcing

agencies etc.) are known as the external sources of recruitment.

Recruitment is of the most crucial roles of the human resource professionals. The

level of performance of an organization depends on the effectiveness of its

recruitment function. Organizations have developed and followed recruitment

strategies to hire the best talent for their organization and to utilize their resources

optimally.

Namely there are two sources of recruitment and the types can be depicted from the

following figure:

56

SOURCES OF RECRUITMENT

A successful recruitment strategy should be well planned and practical to attract

more and good talent to apply in the organization.

For formulating an effective and successful recruitment strategy, the strategy

should cover the following elements:

Identifying& prioritization:

Requirements keep arising at various levels in every organization; it is almost a

never-ending process. It is impossible to fill all the positions immediately.

Therefore, there is a need to identify the positions requiring immediate attention

and action. To maintain the quality of the recruitment activities, it is useful to

prioritize the vacancies whether to focus on all vacancies equally or focusing on

key jobs first.

The recruitment process can be effective only if the organization completely

understands the requirements of the type of candidates that are required and will

be beneficial for the organization. This covers the following parameters as well:

Performance level required: Different strategies are required for focusing

on hiring high performers and average performers.

57

Experience level required: the strategy should be clear as to what is the

experience level required by the organization. The candidates experience

can range from being a fresher to experienced senior professionals.

Category of the candidate: the strategy should clearly define the target

candidate. He/she can be from the same industry, different industry,

unemployed, top performers of the industry etc.

Sources:

The strategy should define various sources (external and internal) of recruitment.

Those are the sources to be used and focused for the recruitment purposes for

various positions. Employee referral is one of the most effective sources of

recruitment.

The recruitment professionals conducting the interviews and the other recruitment

activities should be well-trained and experienced to conduct the activities. They

should also be aware of the major parameters and skills (e.g.: behavioral, technical

etc.) to focus while interviewing and selecting a candidate.

Evaluation of candidates:

The various parameters and the ways to judge them i.e. the entire recruitment

process should be planned in advance. Like interviews, written tests, psychometric

tests etc.

How Is HR Different Between the Public and Private Sectors?

Sure, there are differences between human resources in the public and private sectors.

But the goal is the sameto enable our organizations to attract, develop and retain

talent. One key difference is that, unlike the private sector, most public sector

organizations are not at-will employers. Among other things, that means that

employees can only be removed "for cause."

There are several reasons for that, including court rulings that government employees

have property rights to their jobs and therefore this propertytheir jobscan only be

taken away for cause.

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This legalistic approach also applies to your specific question about hiring. While

there are variations among public sector organizations, government hiring typically

must be merit-based, requiring "fair and open competition." This often means that

hiring is more process-oriented than in the private sector.

In practice, fair and open competition means that:

Hiring is preceded by, and based on, very detailed position descriptions.

Application periods are specified in advance and have firm closing dates.

Candidates often have to go through civil service "exams." However, these are

often not what we think of as exams (e.g., with multiple-choice questions) but

can be questionnaires, training and experience evaluations or even rsum

reviews.

Candidates are assessed, scored and ranked according to predetermined

evaluation criteria.

The evaluation processand resultsare thoroughly documented to ensure

that all candidates receive equal consideration and the process is defensible if

challenged.

Candidate evaluations may require multiple levels of screening, often with

rating panels.

There are often preferences for veterans and member of underrepresented

demographic groups.

The hiring manager is usually given a list of the best-qualified candidates (the

"certified list") and the manager then has to give each candidate equal

consideration (usually an interview, often in a very structured

fashion).However, these steps don't mean that the hiring process has to be

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user-unfriendly or take forever, even though some government agencies can

take the hiring process to unreasonable lengths. Some common myths are:

We can't recruit aggressively because that would give the recruited candidates

an unfair advantage.

Multiple choice questions are a must.

We always need long application periods to allow the maximum number of

candidates to apply.

Accepting applications online isn't fair because not everyone has a computer.

Job ads have to mimic the position descriptions.

We can't give hiring or referral bonuses.

Recruitment Process:

Job Analysis:

Definition: A job analysis is the process used to collect information about the duties,

responsibilities, necessary skills, outcomes, and work environment of a particular job.

1) Identify vacancy

2) Prepare job description and person specification

3) Advertising the vacancy

4) Managing the response

5) Short-listing

6) Arrange Interviews

7) Conducting interview and decision

making.

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You need as much data as possible to put together a job description, which is the

frequent outcome of the job analysis.

Additional outcomes include recruiting plans, position postings and advertisements,

and performance development planning within your performance management

system.

The job analysis may include these activities:

Reviewing the job responsibilities of current employees

Doing Internet research and viewing sample job descriptions online or offline

highlighting similar jobs.

Analyzing the work duties, tasks, and responsibilities that need to be accomplished

by the employee filling the position

Researching and sharing with other companies that have similar jobs, and

Articulation of the most important outcomes or contributions needed from the

position.

The more information you can gather, the easier the actual writing of the job

description will be.

Job Specification:

Definition :A job specification describes the knowledge, skills, education,

experience, and abilities you believe are essential to performing a particular job. The

job specification is developed from the job analysis. Ideally, also developed from a

detailed job description, the job specification describes the person you want to hire for

a particular job.

A job specification cuts to the quick with your requirements whereas the job

description defines the duties and requirements of an employees job in detail. The job

specification provides detailed characteristics, knowledge, education, skills, and

experience needed to perform the job, with an overview of the specific job

requirements.

Components of a Job Specification

Experience: Number of years of experience in the job you are seeking to fill. Number

of years of work experience required for the selected candidate. Note whether the

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position requires progressively more complex and responsible experience, and

supervisory or managerial experience.

Education: State what degrees, training, or certifications are required for the position.

Required Skills, Knowledge and Characteristics: State the skills, knowledge, and

personal characteristics of individuals who have successfully performed this job. Or,

use the job analysis data to determine the attributes you need from your ideal

candidate. Your recruiting planning meeting or email participants can also help

determine these requirements for the job specification.

High Level Overview of Job Requirements: In less than ten bullet points, cite the

key components and requirements of the job you are filling.

A job specification is useful for recruiting as it helps you write your job postingsand

your website recruiting material. The job specification is also useful for distribution

in social media, for screening resumes, and for interviewers.

Job Description:

Definition :A broad, general, and written statement of a specific job, based on the

findings of a job analysis. It generally includes duties, purpose, responsibilities, scope,

and working conditions of a job along with the job's title, and the name

or designation of the person to whom the employee reports. Job description

usually forms the basis of specification. Job descriptions are written statements that

describe the:

Duties,

Responsibilities,

Most important contributions and outcomes needed from a position,

Required qualifications of candidates, and

Reporting relationship and coworkers of a particular job.

Job descriptions are based on objective information obtained through job analysis, an

understanding of the competencies and skills required to accomplish needed tasks,

and the needs of the organization to produce work.

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They clearly identify and spell out the responsibilities of a specific job. Job

descriptions also include information about working conditions, tools, equipment

used, knowledge and skills needed, and relationships with other positions.

The best job descriptions are living, breathing documents that are updated as

responsibilities change. They do not limit employees, but rather, cause them to stretch

their experience, grow their skills, and develop their ability to contribute within their

organization.

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RECRUITMENT

POLICY AT VSP

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INTRODUCTION:

RINL/VSP is one of the modern integrated Steel Plants in India with the state-of-

the-art technology in steel making. To manage the given technology, operate the

continuous processes of Production and carry out other critical functions like

Marketing, Personnel, Finance etc, skilled, highly skilled personnel and competent

professionals with excellent managerial capabilities are required to be inducted at

right place and right time. In the contemporary business environment marked by

fierce competition in hiring quality manpower, RINL Recruitment Policy seeks to

provide the broad framework of recruitment to tap suitable personnel in the

market, facilitate evaluation of the capabilities in terms of their potential for

fulfillment of Companys objectives and induct the best and the most competent

personnel in the shortest possible time.

Objectives:

To meet manpower requirements of the company in terms of the approved

strength of manpower.

To fulfill the requirements of competent personnel in terms of requisite

capabilities, skills, qualifications, aptitude, merit and suitability with a view to

fulfill companys objectives.

To attract, select and induct the best of the talents available keeping in view

the functional requirements of the Organization.

To provide suitable induction points for intake from external sources and

thereby infuse fresh blood into the organization.

To ensure an objective and reliable system of selection.

To have a dynamic and reasonably flexible recruitment policy in tune with

market economy to enable induction of personnel in the quickest possible time

to meet the operational requirements of the organization.

Scope:

The policy shall cover all recruitment of personnel made in the Company in executive

as well as nonexecutive cadre (except appointments made by the Govt.) and shall

apply to all units/branches of RINL.

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The policy shall not cover engagement of advisers/consultants/experts etc or ad-hoc

appointments for temporary requirements.

Sources Of Recruitment:

There will be two sources of recruitment:

i. Internal i.e. from within the Company.

ii. External i.e. from open market through Employment Exchange, advertisement

in press/internet, recruitment through reputed placement/manpower agencies,

other organizations and/or campus selection from Universities/Institutes

and/or through direct negotiations. Management shall have discretion to resort

to any of the above sources of recruitment depending on functional needs of

the Company.

INTERNAL CIRCULATION OF POSTS

Recruitment/Selection to posts from within the company may be done through

internal circulation as under:

The posts intended to be filled through internal sources will be circulated in

the Company giving the qualifications, age, experience etc.

Internal recruitment involving changes in grade will be processed by the

respective Zonal Personnel I/c with the approval of Competent Authority.

Such proposals will be routed through Manpower Cell of Personnel Dept. to

ascertain the vacancy position, to assess the need to fill up such vacancies,

roster points etc.

Internal selection will be done by conducting written test and/or interview by a

duly constituted committee.

Transfer from one department to another in parallel grade within the Company

following the procedure of internal selection will not be treated as recruitment.

RECRUITMENT FROM EXTERNAL SOURCES

Recruitment from external sources will be resorted to for injection of fresh blood at

the induction level(s)/grade(s). However, the company may, if required, induct direct

recruits from external sources at other level(s)/grade(s) also to meet functional

requirements of particular skill/experience or for optimum utilization of its assets

and/or infusion of modern systems, skills & techniques of operation etc., necessary

for efficient operation, technology up gradation or modernization.

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At least, 66 2/3% of vacancies occurring during the preceding year(s) at

induction level(s)/grade(s) in E-0 grade will be filled up through Management

Trainees (MTs).

Recruitment of executives from external sources will be made generally through open

advertisement in the press. However, recruitment of executives can also be done

through campus interviews from approved Institute(s), Universities and/or reputed

placement/manpower agencies and/or circulation of posts to PSUs/ Government with

the prior approval of the Competent Authority. In case of specialist job requirements,

the Company reserves the right to seek response through designated/limited time Post

Box Number applications. In rare/ exceptional cases, recruitment of Executives from

external sources through direct negotiation with individuals can also be made.

Recruitment to the posts in non-executive cadre carrying scale of pay, maximum of

which does not exceed Rs.2500 per month (pre-revised) as indicated in the DPE OM

No.2(48)/91-DPE (WC) dt.6.4.1992, will be done through the Employment Exchange.

In addition to notifying the vacancies for such relevant categories to the Employment

Exchange, the requisitioning authority may, keeping in view administrative/budgetary

conveniences, arrange for the publication of the recruitment notice for these

categories in the Employment News or other newspapers and then consider the cases

of all the candidates who have applied, provided they fulfill the specifications for the

post advertised. In addition to above, such recruitment notices will be displayed on

the office notice boards also for wider publicity (DPE 24(11)/96(GL-010)/GM

dt.2.11.1998)..

In case of death or permanent total disablement of an employee due to accident

arising out of and in course of employment, employment to one of his/her direct

dependents will be provided subject to other conditions as per prescribed procedure.

In all other cases of death while in service/termination of service on permanent

medical unfitness, the concerned employee/dependent(s) will only be entitled to

monthly payment benefits as per Employees Family Benefit Scheme.

To encourage and support sports and sportsmen, the Company may recruit

sportsmen under sports quota by following the procedure laid down in DPE

guidelines/Government rules on