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Modernization of Mind at Tata SteelAuthor(s): Mirza S. SaiyadainSource: Indian Journal of Industrial Relations, Vol. 36, No. 3 (Jan., 2001), pp. 363-375Published by: Shri Ram Centre for Industrial Relations and Human ResourcesStable URL: http://www.jstor.org/stable/27767731Accessed: 26-01-2016 18:27 UTC

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2/14

IJIR,

Vol.

36,

No.

3,

January

2001

CASE

STUDY

MODERNIZATION OF

MIND

AT TATA

STEEL

Mirza

S.

Saiyadain

INTRODUCTION

TATA STEEL

enters

the

ew

millennium

with the

confidence

f

learning,

knowledge

based

and

a

happy

organisation.

We

will

establish urselves

s

the

supplier

f

choice

by

delighting

ur cus

tomers

with

our

services

and

our

products.

In

the

coming

decade,

we

will become the

most cost

competitive

steel

plant

and

so serve

the

community

and

the

nation.

Where

Tata

Steel ventures.others will

follow.

So

goes

the

vision

statement

of

Tata

Steel;

a

vision

that

took

its

roots

in

the

year

1839

when

a

boy

was

bom

in

the

priestly

Parsee

family

at

Navsari,

a

small

town

in

Gujarat.

On

his

birth

the

sooth

sayer

predicted

that

ome

day

he would be well known

and

famous.

And

so

it

ame

to

pass.

This

was

the

time

in

the

history

when British

government

had

initiated

a

number

of

reforms

to

provide

a

climate

of industrialisation

in

India.

Those

days

the

mining

rules

were

sim

ply

a

fair

illustration of the normal demeanour of the

government

towards

businessmen

in

India

(Harris 1958).

In

1899

Lord

Curzon,

the

Viceroy,

liberalized the mineral concession

policy

and

opened

doors for Indians

to

venture into

the

industrialisation

of

India

(Lala,

1981).

However,

much

before this

n

1882

the

boy,

born

43

years

ago,

Dr. Mirza

S.

Saiyadain

is

FORE

Chair

Professor,

FORE

School of

Management.

Case

material

of FORE

School

of

Management,

New

Delhi is

prepared

as a

basis

for class discussion. Cases are not designed to present illustrations of either correct

or

incorrect

handling

of administrative

problems.

Copy right

2001,

FORE School

of

Management,

New Delhi.

The

author

is

grateful

to

FORE

School

of

Management

for

providing

financial

support

in

the

preparation

of

this

case.


http://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsp


3/14

364

Indian

Journal

f

ndustrialRelations

read

a

report

by

German

geologist,

Ritter Von

Setriwartz

on

the avail

ability

of

iron

ore

in

Chanda

district

in

the

Central Province

(now

Madhya

Pradesh)

which

gave

him

the

idea of

giving

India

a

Steel

plant.

The

boy

was

Jamsetji

usserwanji

Tata

and

the

plant

Tata

Steel.

J.N.

Tata's

incessant

efforts

got

Charles

Page

Perin,

a

consulting

engineer

from

New

York,

to

conduct

a

survey

of the

availability

of

raw

material and

Julian

Kennedy

of

Pittsburg

to

build

the

plant.

The site

chosen

was

the

village

of

Sakchi,

the

meeting point

of

two

riversKhorkai and Subernareka which

provided

themuch needed

water.

The

required

capital

came

from

8,000

investors who sub

scribed

to

the

shares

floated

in

Indian market.

The actual

construc

tion

of

plant

began

in

autumn

of

1908 and

it

poured

its

first teel

on

February

16,1912.

The steel

plant

did

not

develop

around

a

town

but

brought

along

a

town

in

its

wake. On

January

2,

1919

Lord

Chelmsford visited

iron and

steel

works.

He

renamed the

town

of

Sakchi

as

Jamshedpur

in

honour

of the

man

who

gave

India its

first

integrated

ironmill

(Pandey, 1989).

Tata

Steel,

India's

largest fully integrated

private

steel

plant

is

comparable

with

any

integrated

steel

plants

in

the

world.

Today

the

House of

Tatas

owns

close

to

25

per

cent

of

its

equity

and

the

company

has

an

asset

base of

over

9000

crores.

Export

volume

is

about 0.426

million

tonnes

equivalent

to

US$

170

million.

It

grew

from nitial

capacity

of

0.1

million

tons

in

1912 to

3.89

million

tons

by

year

1990-2000.

Besides

going

through

theusual

teething

prob

lems,

Tata

Steel

experienced

a

number of

more

serious

problems.

It

went

through

a

13

month strike:

making

steel

became

less

cost

ef

fective,

competition

with

foreign

and

local steel manufacturers

be

came

severe

and

consumers

started

shifting

their

loyalty

to

local

manufacturers of

recycled products.

TECHNICAL

MODERNIZATION

For

Tata

Steel

it

became

necessary

to

reorient

itself

to

new

think

ing

and

approach.

Modernization became the

guiding principle.

Tata Steel started theprocess of

closing

down old units and

setting

up

new

ones

in

4

phases

of technical modernization.

The

process

of

modernization started

in

1980

and

went

on

till 1997.

The four

phases

varied

in

terms

of time

period

as seen

below:




4/14


5/14

366

Indian

Journal

f

ndustrial

Relations

way

employees

think.All thiswas done to

bring

about customer

sensitivity,

cost

consciousness,

improve productivity

and

create

better

working

and

living

conditions.

The

new

HR

policy

aims

at

ensuring

transparency,

fairness,

and

equity

in all

its

dealings

with

its

employees.

?Tata

Steel

will strive

continuously

to

foster

a

cli

mate

of

openness,

mutual

trust

and

team

work.

?-

Tata

Steel

recog

nizes

that

its

people

are

the

primary

source

of

its

competitiveness.

Steel is

an

extremely

protected,

capital-intensive

industry.

It

was

becoming

a sunset

industry

and hence

capital

investment was made

in

modernizing

the

plant.

While

Tata

Steel,

as

a

company,

is

very

old

its

plants

have become

very

modern. To be able

to

work

on

the

modern

plants

it

was

necessary

to create

a

knowledge

based

learn

ing organisation,

which

is

possible

if

the

minds

are

open.

There

was

a

need

to

create

a

will

to

work

and

will

towin.

While the

formal

Phase

V,

'Modernization

of

Mind'

started

on

April

1,1999

work

had

already

been

underway.

Long

before

Tata

Steel

had

recognized

the

need

to

make

change

in

their

way

of

thinking,

nvestment

in

chang

ing

their attitude and culture was

already

initiated. We have been

very

successful. However continued

success

is the

greatest

enemy

of

change.

Change

had

been

accepted

but

the

pace

of

change

had

to

be

improved.

Hence

an

on-going

non-time

bound

change

process

must

go

on

all

the

time.

Wedded

to

Steel

industry

we

did

not

want

to

die

with it

so

change

became

a

part

of

our

thinking

articularly

in

the

light

f

changes takingplace

in

the

environment because of

glo

balization,

liberalization

and

opening

of

Indian

economy.

The

proc

ess

of

acceptance

of

change

was

initiated

through

a

variety

of

pro

grammes,

significant

among themare

briefly

described below.

CUSTOMER

ORIENTATION

If

we

do

not

take

care

of

our

customers?some

one

else

will .

This

declaration

aptly

summarises

the

feeling

that shift

ust

take

place

in

making

customer

delight

as

the

major

focus

of

all

its

en

deavours. The

shift

became

imperative

because

the

environment

(pre-1992)

was

predictable,

concessional

finance

in

close

markets

was available and the focus was on

promoter's

wealth and social

objectives.

Post

1992,

this

changed

to

uncertain

environment,

mar

ket

based

finances

in

globally integrated

markets

and

focus

on

share

holders value.

Similarly, pre-1992

there

was

a

virtual

SAIL,

TISCO




6/14

Case

Study

367

duopoly

ina sellersmarketwith no

emphasis

on

quality,

customer

service

and

cost

reduction.

Post-1992

over

capacity

was

generated

because of

the

entry

of

new

players

(Essar,

Jindal,

spat, Lloyds)

cre

ating

a

buyers

market,

players

competing

on

price

and hence focus

shifting

to

cost

reduction

and

quality

improvement.

Tata

Steel has

a

customer

base of

over

5000

customers out

of

which 158 have been identified

s

key

customers

accounting

for

1

per

cent

of the total

business. One

per

cent

increase

in

sale

to

key

customers contributes Rs. 1.8 crores. Tata Steel ensures

preferential

treatment

to

these

key

customers

in

the

area

of

redressai

of

com

plaints

and

quick handling

of accounts.

An

Enterprise

Resource

Planning

System

has been

implemented

to

improve

availability

and

analysis

of

customer

needs and

other market

demands,

stock

man

agement,

quality

assurance

and accounts

management.

Tata

Steel

has

wholeheartedly

accepted

Mahatma

Gandhi's

ob

servations

on

customers.

A

customer

is themost

important

visitor

on our

premises.

He is not

dependent

on us. We are

depended

on

him. He is

not

an

interrupter

on

our

work.

He

is the

purpose

of

it.

We

are

not

doing

a

favour

by

serving-him.

He

is

doing

us a

favour

by

giving

us

an

opportunity

to

do so.

Tata

Steel has issued

several

posters

to

bring

about

customers

consciousness

as

a

means

of

change.

However,

a

large

international market still awaits

and

so

does

tough

competition.

PERFORMANCE ETHICS

PROGRAMME

Performance Ethics

Programme

for executive

category

came

into

being

as

a

follow

up

on

Mckinsey

report

on

transformational

exer

cise and

restructuring

of the

organisation

to

convert Tata

Steel

into

a

high performing

organisation.

The

process

requires identifying

igh

impact positions

and

staff

the

positions

with

best suited

persons.

All

these

positions

would

have

greater

accountability,

autonomy

and

higher profit

and

loss

responsibility.

The

move

is

to

break

away

from

functionally organised

system

with

individuals

reporting

to

their functional

superiors

to

designing

structure based on business

units

as

profit

centres.

Each

business

unit

has

its

own

autonomous

set

up

and

greater

freedom

to

develop

its

own

agenda

and

targets

keeping

in

mind

the

customers

and

business orientation.

The choice




7/14

368

Indian

Journal

f

ndustrial

Relations

of staff is

based

on

objective

and

merit-based

assessment

process

with

the

support

from

a

qualified

external

agency.

While

the

new

structure

ould

come

into

effect

from

April

1,

2001

staffing

ould

be

done

in

three

cycles.

Cycle

1

for

the

first

00

positions

has

been

completed by

November

2000.

Cycle

2

for

next

250-300

positions

will

take

place

during

November-January

2001

and

cycle

3

in

the

second

half

of 2001.

In

terms

of the

actual

mechanics,

each

department

head

signs

an internalMoU with theCEO as a

promise

todeliver. In

addition,

internal MoUs within

the

department,

across

departments

and

with

customers

for

compliance

on

efficiency

nd

quality

and with

provi

sion

of

constant

review and

continuous

monitoring

are

to

be

signed.

The

focus

is

to

give

what

was

not

given

last

year.

All executives

are

given

KRAs

and balance

code

cards for

people

upto

divisional head

quarters

are

to

be maintained.1

No value

or

low

value

items would

be

reduced

in

future

and

eventually

eliminated. Since

all

this

is

done

to

help employees

to

make best

use

of

operating

units,

which

are

young

both

in

terms

of

age

and

facilities,

incentives

are

to

be

given

on

the basis

of

performance.

Keeping

the focus

on

demand,

competition

and

cost

conscious

ness

at

the

level

of

workers cluster

manning

is introduced. This

is

to

help

control

overtime

and

acting

allowance

and

to correct

soul

destroying job

without much

challenge .

These

are

self-managed

teams

loaded with

empowerment,

discretion,

and

room

for

innovativeness.

In

all

cases

Tata

Steel standards

(JRQM),

same

as

ISO,

are tobe

applied.

A fall-outeffect f the

restructuring

as led

to

debureaucratization

process.

Number

of

positions

is

reduced,

decision

making

is

pushed

down

to

lowest level

and

paper

move

ment

has been

minimized.

RIGHTSIZING

As

on

January

1,1994

Tata

Steel

had

78,276

employees

on

its

pay

roll.

In

order

to

best

fit

the

number of

employees

with the

require

ments of

jobs,

Tata Steel startedtheprocess of

right izing

eventually

bringing

down the

workforce

to

50,910

as

on

October

1,

2000.

The

attempt

is

to

further

reduce

it

to

48,000

level

in

near

future. How

were

they

able

to

downsize

given

a

very

strong

workers

union

on

the




8/14

Case

Study

369

one

hand,

and

a

tradition f

guaranteed

employment

to

thewards of

the

employees

on

the

other?2

According

to

the

General

Secretary

of

Tata

Workers'

Union,

the

dissociation

was

not

painful

because

through

negotiations

the

union

got

a

good

deal

for

its

members.

The

good

deal

basically

refers

o

Early

Separation

Scheme

pro

posed

by

Tata

Management. According

to

this scheme

employees

who

became

surplus

as

a

result of

restructuring

exercise

were

given

the

option

to

performany duty

not

necessarily

that

for hich

they

were

hired

or

take

a

pension.

The

pension

amount

varied with the

age

of

the

employee

and

the

years

of

service.

But all

of

them

were

assured

the

pension

upto

the

age

of

sixty.

Thus those

with

less

than

40

years

of

age

and

less

than

10

years

of service

were

offered

a

monthly

pension equivalent

to

thebasic

and

DA

of

last

drawn

sal

ary,

those

upto

the

age

of

45

years

got

1.25 times and

those

crossing

the

age

of 45

years

received 1.50

times

the last

drawn basic and

DA.

In

addition,

they

ere

provided

medical

facilities

t

company's

hos

pital/dispensary,

loan

of

Rs.

2

lakhs

to

start

a

business,

and

prefer

ence

in

assigning

a

kiosk

in

Jamshedpur

area.

ROAD THROUGH

EDUCATION/TRAINING

The

road

to

change

and

to

make Tata

Steel

a

knowledge

based

learning

organisation

took

many

shapes

and

terms.

Perhaps

one

of

the

more

significant

endeavours

to

change

came

from education

and

training

perpetuated

by

three

agencies.

One of themost influential

attempts

tomodernize was fostered

through

an

exposure

to Tata

Heritage,

Technology

and

Community

Centre

housed

in

Russi

Mody

Centre

forExcellence.

It

provides

consolidated

information

on

the

House

of

Tata. In

addition

it

has

the first

business archive

in

India and

16

professional

associations

housed under

a

single

roof

in

an

ambience of

ancient

civilizations

of

Egypt,

Greece

and

Babylon.

The

Centre

is

journey throughhistory

of

the

achievement

of

House of Tatas

and

a

learning

experience

of

how

dreams

got

converted

to

realities.

It

has

tremendous

educa

tional value for all interested in

change.

The

second

agency

is the Information

Department.

It

was

set

up

in

1955with the

principle

objective

of

keeping

the

technical,

re




9/14

370 Indian

Journal

f

ndustrial

Relations

search and

managerial

personnel

abreast in theirfieldof

knowledge

through

its

libraries

and

publications.

Information

Department

runs

96

libraries

in

Jamshedpur

and 51 libraries

outside

Jamshedpur.

It

collects,

processes

and

disseminates

information

in

the field of

iron

and

steel

and

allied

subjects.

It

has

over

2.5 lakh

books,

subscribes

to

large

number

of

technical

journals,

has

inter

and

intranet

facility,

on-line

catalogue

for

books,

videos

cassettes,

CD

Roms

and music

CDs.

It

also

has

a

book

bank scheme for

employees'

children

of

2nd

standard

and

above,

and

a

kid's

corner

for

showing

them

educa

tional films.Since

knowledge

is the

greatest

driver for

change

ithas

a

budget

of

Rs. 1.6

crores.

The

third

agency

of

knowledge

dissemination

is

TISCO

Man

agement

Development

Centre,

which

arranges

training

programmes

for

Tata

Steel

employees.

In

a

given

year

it

organises

more

than

70

programmes

on

different

aspects

of

management

and

each

of these

programmes

is

offered

several

times

in

the

year.

Since

the focus

of

management

has

shifted

to

change, special one-day

programmes

on 'Modernization ofMind:

Thinking

Away

fromMindset' are or

ganised.

Many

of

the

training

rogrammes

listed

in

their

directory

have been

conceived

to

respond

to

new

ways

of

thinking

hich have

emerged

as a

result

of

dialogue

and

discussions

among

the

Tata

Steel

employees

in

various fonims

referred

to

in

the section

on

reaching

out.

CO-DETERMINATION

Tata Workers' union is one of the earliest trade unions in India.

It's

history

dates back

to

1920.

Over

the

years

it

has

seen

the

in

volvement of

political

stalwarts

(e.g.

C.

F.

Andrews,

CR. Das and

Motilal

Nehru)

and

office

earers of

such

calibre

as

Subhash Chandra

Bose,

Prof.

Abdul Bari and

Mr.

Michael

John.

Except

for

13

month

long

strike

during

1928

there

has

been

no

major

industrial strife

t

Tata

Steel

during

the

last

70

years.

While

there

re

many

registered

unions

in

Tata

Steel,

Tata

Workers'

Union

is

the

sole

bargaining

agent.

The Union

has

been

able

to

get

some

visible

benefits

for the

workers

(e.g. Joint Councils,

recognised

grievance

procedure,

higher wages

and

better

community

and

social

life).

The

management

has

al

ways

been

enlightened

and

has been

able

to

provide

many

labour

welfare

measure

much before

they

were

enforced

by

law

(See

Ex




10/14

Case

Study

371

hibit

1).

Community

and health facilitiesare

way

above those of

fered

by

any

comparable

organisation.

Yet

there is

some concern

about the

quality

and

cost

of these

services.

The

proactive

attitude

of

management

is

visible

in

open

sharing

of

information

with

the elected

members

of

the

Union,

6 times

a

year

followed

by

lunch.

Union

leadership

is

so

impressed

by

man

agement

transparency

that its

secretary,

while

talking

about

Dr.

Irani,

said Yeh Shaks Imandari

Se

Sach BoltaHai

(This

man

honestly

talks

the truth).

When themodernization

plan

started

in

1980 both

union and

management

agreed

on

no

retrenchment,

redundant

labour

to

be

retrained

and

redeployed

in

suitable

jobs.

Talking

aboutmoderni

zation,

Mr. D.K.

Singh,

General

Secretary

said that

Union

agreed

to

bring

new

technology

because

it

was

consulted. We

co-operated

because

we

wanted

to

serve

the

company

and

we

got

a

good

deal.

There

was

continuous

dialogue,

openness

and

transparency

and

schemes

suggested by

management

were not very

painful

towork

ers.

We

found

a

common

path by

joint

consultationwhich

has

been

a

culture

in Tata

Steel. The

relationship

between

union

and

man

agement

is

best

vocalized

by

Mr.

Singh

when he

said

we

have dif

ferent

paths

but

our

destiny

is

same.

REACHING OUT

Consistent

with

the

policy

of

openness,

trust

and

transparency

as a vehicle of

change,

Tata Steel introduced several programmes of

sharing

information ith the

employees

and

the

community

with

the

intention

f

sharing

truth

nothing

but

the truth.Somewhere

around

themiddle

of

1994

the

idea of

organising

Employee

Aware

ness

Programme

(EAP)

was

initiated.

In

May

1995

the

first

ormal

EAP

was

launched

in

Medium

and

Light

Structure

Mill.

The

topics

covered dealt

with

such

themes

as

personnel

policies,

safe

habits,

training

and

career

development,

health

and

healthy

life,

occupa

tional

health,

welfare

amenities,

work

discipline, suggestion

system

andworking towardshigherproductivity.

Wife ?f

MD

initiated

omestic

Management Programme

where

wives

of

the

employees

go

through

three nd

half-days

programme




11/14

372

Indian

Journal

f

ndustrial

Relations

with

inputs

provided

on

such themes

as

budget,

safety, ygiene

and

child welfare.

In

addition,

wives

of

the

employees

are

invited

to

visit husbands' work

place

and

have lunch

with them

in

company

cafeteria.

They

are

informed

abut

safety

and

productivity

by

ex

perts.

The

aim is to

involve families of

the

employees

in

affecting

change.

This

programme goes

on

every

day

and

the

attempt

is

to

cover

all

50,000

employees'

wives

in

the

next

2-3

years.

The

specific

purpose

is

to

inspire

their

role

and

integrate

them into the

change

takingplace

in

company

and

society.

Tata

Steel's

endeavour

is

to create

awareness

at

the lowest

level

in

the

company

and

community

at

large

because

'Modernization

of

Mind'

as

a

concept

must

reach

to

a

substantial

segment

of

commu

nity.

In

addition

to

the

above-mentioned

programmes,

the

MD

has

regular

meetings

with

the

female

employees,

dialogue

with senior

citizens

in

the

city

of

Jamshedpur.

It

has also

started

the

practice

of

naming

'Person of theMonth'.

Respect

is

given

to

the

union and

regular meetings

with the elected members

of the

union

are

organ

ised.

Mr. Ratan

Tata

goes

to

the

union

instead

of

calling

them

to

his

office

during

his visits

to

Jamshedpur.

SUCCESS

INDICATORS

Phase

5,

Modernization of

Mind,

formally

egan

on

April

1,1999.

During

the

year

and

a

half

the

picture

has

drastically changed.

Cus

tomer

awareness

is

great,

decision

making

has

been

pushed

to

the

lowest

level,

bureaucracy

has been

demolished,

levels

are

reduced

from13 to4

among

officers,

level

reports

toE level

despite

the

fact

that

there

re

5 levels

within O

Category. Employment

of

chil

dren

has been

stopped

and thanks

to

ESS

work

force

s

reduced

to

50,910

without

any

ripple.

Seven

to ten

percent

of the

profit

goes

to

township

and

community

development;

38

per

cent

of

all

employ

ees

are

covered

in

improvement

projects

and all

departments

are

getting

ISO

ratings.

There has been

no

major

disruption

by

way

of

strike

or

gherao

during

the last

70

years.

There

is

a

general

accept

ance

of

change

among

the

employees

and

they

demand

and

desire

to

learn

beyond

their

regular

jobs.

There is

greater

transparency

in

the

system.

Emphasis

has shifted

to

productivity,

profit

and

cus

tomer

instead of

products

and

opportunity

for

experimentation

and

openness

to

accept

ideas

(learning humility).




12/14

Case

Study

373

The concrete indicators and their

growth

over the 4 years pe

riod

as

reported

in

Annual

Report

1999-2000

are

presented

below:

Indicators

qf

Growth

_1997-98

1998-99

1999-2000

Overall

output

(million

tonnes)

1.Hot

metal_351_^63_3.89

2.

Crude

Steel_^_323_3?6_3.43

3. Works Saleable Steel

3.01

_311_3.29

Works Saleable Steel

(million

tonnes)

1.

Production

_

3.01

_3.11

3.29

2.

Despatch_^_3?l_^09_3.30

Sinter Production

3.373.45 3.69

(million tonnes)

Coke Production

1.83

.96

2.12

(million tonnes)

Specific

Lubrication 1.08

.88

0.70

Consumption (Kg/tss)

Water

Pollution

0.27

0.30 0.21

(Kg/tss)

_._

Inventory

Turnover

Ratio

(%)_16.45_16.55_14.70

Solid

Waste

Utilization

(%)

66.08

67.00

8.24

In

addition,

savings

through suggestions

improved

from523

lakh

in

1997

to

Rs. 720

lakh

in

1998

and Rs.

865

lakh

in

1999.

During

1999-2000

rolling

mill

No.2

was

phased

out and

Tata

Steel

achieved

full

capacity

utilisation

in

all

new

production

units

such

as

coke

plant

No.2,

hot

strip

mill,

L.D.

shop

No.

2

and Slab Caster

in

the

very

first

year

after

modernization. Cluster

manning

has

been

introduced

in

13

departments

covering

5147

employees.

To

tal operation performance programme covered all major produc

tion and

services

department

in

the

norms

during

1999-2000.

Coke

quality

in

terms

of

strength

is

best

in

the

world,

it has

achieved

lowest

cost

in

steel

production

in

the

world,

and

it

pro




13/14

374 Indian

Journal

f

ndustrialRelations

duces

the

fastestmillion

tonnes

of

iron in

the

new

plant

in

the

world.

The

largest

private

steel

producer

in

the

country,

ata

Steel

is

the

lowest

cost

producer

or

Steel. The

company

may

not

be

making

as

much

profit today

as

it

hoped

to

but

the

real

test

would

come

later

when

it

would have international

competition.

There

is

also

a

lurk

ing

doubt

in

theminds of

some

executives

whether

the

attempts

to

modernize

mind

would sustain

over

a

longperiod

of

time.

The

spirit

and

direction

of

Modernization

of

Mind

is

best

sum

marized

in

the

Tata

Steel Information

Bulletin,

January-March

2000

which

claims

that

Perfection

in

any

endeavour is

an

aiming

point,

not

a

starting

oint.

Let

thedesire for

t

push

you

but

don't

let

the

absence

of

it

stop

you.

If

you

are

going

to

get

any

thing

done

you

must start

some

where. More

specifically,

you

must

start where

you

are. For Tata

Steel

the

journey

has

begun

but

the

road

is

long

and

winding

and

the

destination

is far

away.

NOTES

1.

All executives

at

Tata

Steel

have

been recommended

to

read

a

book

Who

Moved

My

Cheese

by

Spencer

Johnson.

The book deals

in

a

parable

fashion

on

how

to

anticipate

change,

adapt

to

change quickly,

enjoy change

and

be

ready

to

change

quickly

again

and

again.

2.

There

are

instances in

Tata

Steel

of

having

fourth

generation

workers

employed.

However,

this is

changing

now. Merit instead of

kinship

is

given

weightage

in

employment.

REFERENCES

Harris,

Frank,

(1958),

Jamsetji

usserwanji

Tata:A

Chronicle

of

His

Life,

Blackie and

Sons

Limited,

Bombay.

Lala,

R.

M.

(1981),

The Creation

of

Wealth,

IBH

Publishers Pvt.

Ltd.,

Bombay.

Pandey,

S. N.

(1989),

Human

Side

of

Tata

Steel,

Tata McGraw

Hill,

New

Delhi.




14/14

Case

Study

375

EXHIBIT

1

:

Labour Welfare

Measures

in Tata

Steel

Welfare

measures-

Tisco Intro. Enforced

Legal

Measures

by

Law

Eight

hour

Working

Day_1912_1948

Factories

Act

Free M?dical Aid

1915 948

Employees

State

Insurance

Act

Establishment ofWelfare 1917 948 FactoriesAct

Department

Schooling

facilities for 1917

Children

Formation

of

Works

Committee for

handling

complaints,

service

conditions

and

grievances

Leave with

pay

1920

948

Factories Act

Workers

Provident Fund 1920

1952

Employees'

Scheme Provident Fund

Workmen's Accident

1920 1924

Workmen's

Compensation

Scheme

Compensation

Act

Technical

Institute

for

1921

1961

Apprentices

Act

Training

of

Apprentices,

Craftsmen

&

Engineering

Graduates

Maternity

Benefit 1928946

Bihar

Maternity

BenefitAct

Profit

Sharing

Bonus_1934_1965

Bonus

Act_.

Retiring

Gratuity

1937

1972

Payment

of

Gratuity

_Act_

Ex-gratia

Payment

for

Road

1979

accident while

coming

to

or

returning

from

duty

Social

Audit

_1980_-_First

in

India

Pension

Scheme

1989

Social

Responsibility

as

a

1988

Key

Business

Process

1919 1947

Industrial

Disputes

Act

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