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SUBMITTED TO BY MANEET MA’AM SUBMITTED SUMIT SHUKLA ROLL NO. B47 REG. NO. 11007684
HR PRACTICES OF TATA AND ESSAR STEEL Introduction of Tata steel:The Tata Steel Group has always believed that mutual benefit of countries, corporations and communities is the most effective route to growth. Tata Steel has not limited its operations and businesses within India but has built an imposing presence around the globe as well. With the acquisition of Corus (now Tata Steel Europe) in 2007 leading to commencement of Tata Steel's European operations, the Company today is the tenth largest steel producer in the world with an employee strength of above 81,000 across five continents. During the financial year 2009-10, the Group recorded deliveries of 24 million tonnes against 28 million tonnes in the previous year, the decline being a reflection of the global economic slowdown mainly in the UK and European operations. The Group recorded a turnover of Rs.102, 393
The more changing the environment the department is in. On the basis of these rankings highest reward of the year is given to best suitable worker. workers and supervisors.2010. HR practices at Tata Steel Manpower planning Manpower planning enables HR department to project its short to long term needs on the basis of its departmental plans so that it can adjust its manpower requirements to meet changing priorities. Tata Steel’s overseas ventures and investments in global companies have helped the Company create a manufacturing and marketing network in Europe. The better . the more the department needs manpower planning to show: • the number of recruits required in a specified timeframe and the availability of talent • early indications of potential recruitment or retention difficulties • surpluses or deficiencies in certain ranks or grades • availability of suitable qualified and experienced successors Performance appraisal assesses an individual's performance against previously agreed work objectives. average. It also enables management to compare performance and potential between employees and subordinates of the same rank. South East Asia and the Pacific-rim countries. Since it is a joint responsibility of the individual and the supervisor. Performance appraisal is normally carried out once a year. which is one of the largest steel producers in the Asia Pacific with presence across seven countries. The Group’s South East Asian operations comprise Tata Steel Thailand.1% equity and Nat Steel Holdings. and average to medium and below average. in which it has 67. The Company has always had significant impact on the economic development in India and now seeks to strengthen its position of pre-eminence in international domain by continuing to lead by example of responsibility and trust. Rating of employees is done by their performances. every individual in TISCO are co prime to each other. It is given as per ranks very good.Crores in 2009 . They assess key result areas of their employees.
• Individual performance bonus is also given. • Compensation for inflation is common for all employees. There are well-established and effective arrangements at each business location for transparent communication and consultation with Works Councils and Trade Union representatives. (flat rates) • It is decided by union and management where various demands are negotiated. market. • Yearly increments are given. the Company has always registered steady quality improvement and productivity enhancement through dedicated efforts of the Company’s Performance Improvement teams. . Development of Employees: At Tata Steel. and promotions. • It is paid as per other industries. • They also get training of problem solving techniques. etc Compensation Management It depends on financial capabilities. focused on technical best practice transfer and the value of knowledge networks. Further. Training and Development The Technical Education Advisory Committee guides employee development and training in line with strategic goals of the company and long-term objectives. bonuses. and in steel prices.performing employee gets the majority of available merit pay increases. The in-house training centres impart majority of the training programmes. • They are trained to know the changes in environment. • Officers are trained into business managers through special general management programmes such as at CEDEP. (Technical Institute & Management Development Centre). there is a continuous effort of staying in touch with employees to ensure that there is the right culture to engage them in consistent performance improvement. conflict management. France. • Employees are also deputed to other organizations and training centres in the country such as ITI and abroad for specialized training.
Family Benefit Scheme: In the tragic case of a fatality in the Works. Employees work in . Higher studies: Monetary incentives to employees acquiring higher qualifications in a related field along with study leave. scholarships etc. Skill Development: Non Officers Skills training is a process that begins at the time of an employee joining the company and continues throughout his or her career. when necessary. water and housing facilities to all employees. Holiday Homes: Tata Steel has five holiday homes for benefit of employees during vacation. a monthly pension equal to the amount of the last drawn salary of the deceased is given to the legal heir until the time the deceased would have attained the age of 60. In order to leverage maximum potential of human resource to achieve business objectives the Company recognises that enrichment of people will help retain a motivated workforce in a competitive environment. • • • Developing People Valuing its people as a great asset.Towards the well-being of employees Tata Steel has put into practice many initiatives. events and programmes that have helped to create not only an enduring loyalty amongst employees but also enabled them to have a more fulfilled life. both in order to benefit the individual and to benefit the Company through increased knowledge and skills. Special benefits • • • Medical facilities: Free medical facilities for employees and their family. Tata Steel is committed to their development. Tata Steel Officers’ Beach Club: All officers of Tata Steel are eligible to be members of the Beach Club that offers holidays in elite hospitality chains. Housing facilities: Subsidised electricity. which continues even after retirement.
There is an established system of joint working and collective bargaining. Tata Steel encourages female employees to advance their career with initiatives dedicated towards personal development and professional advancement. the Company has introduced elearning whereby employees can access electronic courses from their departmental e-Learning centres. To build a leadership pipeline in the organisation to prepare the people to meet the challenges of growth. In order to promote self-directed learning. • • Equal Opportunity Practices • Tata Steel is an equal opportunity employer and does not discriminate on the basis of race. color. marital status. the departments impart on-the-job training. The HR Policy and Affirmative Action Policy are monitored by the Ethics Counsellor and supported by an effective grievance redressal mechanism. ancestry. Skill Development: Officers • Tata Steel Management Development Centre conducts a number of managerial and functional competency based programmes for officers and supervisors. The Company’s Affirmative Action Policy promotes equal access to its employment and opportunities and all decisions are merit based. service and support functions.clusters of multi-skilled workers and move across and within clusters on improving their skills levels. sex. which ensures that every employee is able to exercise this right without any fear. The Technical Training Institute imparts vocational and basic skills training. Respect for equal opportunities as set out in the Tata Code of Conduct is followed. religion. . age or nationality. The Women Empowerment Cell examines and addresses the issues and concerns of female employees and ensures that they do not miss out on any growth opportunity • Freedom of association and collective bargaining Tata Steel respects the employees’ right to exercise freedom of association and collective bargaining and provides appropriate support for this. globalisation and change. caste. The objectives of these programmes are: To build individual capability by enhancing managerial and functional competencies which are critical to operations.
and to the growing markets of South East Asia and the Middle East. INTRODUCTION OF ESSAR STEEL :Essar Steel is one of India's largest exporters of flat products. Our lean team gives us one of the highest productivities and lowest manpower costs among steel plants internationally. exporting to the highly demanding US and European markets. They also understand that each individual has unique talents and expectations from the organization. the Konkan Railway. they believe that excellent individuals build excellent companies. Hyundai. Every Essar employee is meticulously selected and given the freedom to be innovative. Human Resource Polices of Essar Steel “At the Essar Group. satisfied and productive team member.Pioneering the concept in India. Swaraj Mazda. flexible and well planned. Based on those principles. Essar Steel has acquired extensive quality accreditations. including Caterpillar. within a work culture that is non-bureaucratic and result- . A number of major client companies have approved our steel for their use. a system of Joint Consultation has been in place in Tata Steel for more than 50 years. human resources development at Essar is customised. and Maruti Suzuki. they will create an outstanding organization. And by transforming each employee into a highly motivated.
retention and compensation within a carefully structured work framework. and to spread awareness about AIDS and de-addiction. Essar's wide range of businesses and exciting pace of growth presents a range of opportunities and exposure that only a few others can match.Their Essar Learning Centre provides year-round training. They are a preferred employer at India's top engineering and business schools because they offer competitive compensation. diverse opportunities in terms of business and roles. Through extensive career mapping. The Group has a very serious commitment to continuous training and development. Essar’s key focus areas • • • • • • • • Essar has outlined seven focus areas where employee involvement can make a difference to the lives of the community: Education Self-employment Training Infrastructure development Medical Health & hygiene Recreation and welfare Recruitments Essar welcome talented college graduates. They work with employees to develop personalized and flexible individual plans for career growth. to create self-help groups for village women. to further overall development of children and women. They offer a choice of career paths that could include job rotations across functions and Group Companies.oriented. fast . a career with Essar will offer you a unique opportunity to unlock your own potential and realize excellence. Thus.” Employees Motivation The underlying objectives of Essar’s activities is to motivate employees to participate in and contribute to the activities initiated by the Community Relations Centre.
the group hires mainly through two types of programmes: • Management trainee programmes • Graduate trainee programmes • Business leadership programmes Management trainee programmes Through the management trainee programmes. Essar hires post graduate management students from top ranking business schools throughout India. For the same reasons.growth and quick assumption of large responsibilities. they are able to attract the best and the brightest talent at all levels. Campus Programs The Essar group has a strong emphasis on hiring at the entry level. an introduction to all the group companies. human resources and operations. At the entry level. Depending on their capabilities. plants and corporate functions. a career map and the group company and assignment that he or she will be posted to. Soon after the induction. a leadership position within the organization. Andhra Pradesh and Tamil . Trainees are initially hired as a group resource for a range of functions such as marketing. Essar hires graduate engineer trainees (GETs) from the IITs and the top-ranking regional engineering colleges across the country and diploma engineer trainees (DETs) from the best polytechnics in Gujarat. Graduate trainee programmes The Essar group prides itself on using global-scale. to create a pool of talented employees who are developed and groomed to grow with the group. Essar makes selections between December and February. management trainees can usually look forward to a faster career track. an expanded role and eventually. the group hires engineer trainees annually between August and January. world-class technology in all its companies. through a rigorous selection process. in an interview with corporate human resources each trainee has the opportunity to discuss mutual expectations. finance. To maintain the technical edge. Trainees are confirmed after completing the one-year management trainee programmes. Selected candidates then go through a comprehensive one-month induction programme. and a six-day executive leadership camp at the Essar Learning Centre. which includes classroom sessions.
solid rewards Employees with a proven track record of high performance and potential are identified annually through a fast-track programmed evaluated by a top management panel. retention bonuses and relevant training inputs. Building careers Essar has a high emphasis on performance. we draw career maps for each employee. These achievers are rewarded with top-of-the-market compensation. Continuous opportunities for development and growth . a career with the Essar group offers a unique opportunity to unlock your own potential and realize excellence. They customize career paths and retention plans according to the unique needs of an individual. each trainee has an interview with the Essar Learning Centre head. they go through an induction programmes at the company. These trainees are hired for specific group companies. Right from the entry level. Depending on their capabilities. After they are selected. to discuss his or her immediate placement and future growth prospects. both GETs and DETs can look forward to increasing their technological expertise. Soon afterwards. a growing technical specialization and key senior operational and technical roles within the company.Nadu and other regions of the countries to source the best talent available. outlining possible alternate career paths. which includes classroom sessions and plant visits. The Essar group is one of India’s largest spenders on continuous training. and link both career growth and rewards directly to merit and achievement. . Solid performances. which could include planned job rotations between functions or even group companies. Thus. Training and Development Essar has a very serious commitment to continuous training and development.that’s the firm commitment that Essar makes to every single employee. investing about Rs. Trainees are confirmed after a one-year training programmes for GETs and a two-year programmes for DETs. We provide numerous resources for self-assessment and development. Our world-class Essar Learning Centre provides year-round training.
leadership & leadership styles & followership. Our faculty includes the best of experts and practicing managers.1. Essar leadership values. the ELC allows us to design tailor-made and flexible programmes. group dynamics and team building. organizational &behavioral etiquette. This comprehensive programmes transforms junior management employees into effective business executives. a value meet and a plant visit. Being a dedicated facility.4 crore (US$ 3 m) annually. training 2. we also include a number of non-business modules like corporate etiquette or parenting skills. from materials management to e-commerce procurement to transformational leadership and communication and negotiation skills. Features of the camp Participants in this holistic programme begin their day with yoga. Our programmes cover a wide range of technical. Since we believe in imparting managerial & behavioral training. Throughout the camp. Executives Leadership Camp (ELC) The Executive Leadership Camp (ELC) is a six-day residential programmes held at the Essar Learning Centre at Hazira. A fun outbound module allows them to reinforce and use skills like teamwork or strategic thinking through specially designed outdoor games and activities such as a treasure hunt or rappelling. They learn how to become part of the organization team through modules like self-awareness and interpersonal relationship. The programme also builds their personal management skills by teaching useful skills like assertive skills. Gujarat has emerged as one of India’s foremost training facilities. they learn more about Essar's key values and culture through modules like quality & customer orientation. so that training at Essar is always relevant and customized both to business needs and the needs of the individual. The ELC also has extensive resources for self-development such as a business library of books and audiovisual material. Gujarat. functional and behavioral training. . Thus.000 man days of training.000-odd people a year through 7. we support and encourage all Essar employees to develop themselves to the fullest. conflict management. Essar Learning Centre (ELC) at Hazira. time management and presentation skills.
implementation and decision-making. The MDP helps make middle managers active and effective participants in organizational processes like planning. tata steel officers beach club but essar steel doesn’t provide these facilities .On the other hand essar steel also have some special facilities which tata steel doesn’t provide. They learn how to be effective managers with modules like the role of a manger in the present scenario. Features of the Camp After beginning their day with yoga. performance management. essar steel are more serious about training and development program. Tata steel provides some special facilities to their employees such as housing facilities . leadership. In Tata steel they are more focusing on equal opportunity process and essar steel they are not. team building. integrity/personal values.tata steel they are mainly concerned with employee development. quality (kaizen). people development. A fun two-day outbound module allows them to reinforce and use skills like teamwork or strategic thinking through specially designed outdoor games and activities such as a treasure hunt or rappelling. assertive skills. striving for excellence.Training and develope ment programme of essar steel are effective than tata steel. negotiation skills and corporate etiquette. cost reduction and continuous improvement. . The programmes enhances their personal management skills by teaching segments like self-awareness. participants learn how to contribute to organizational growth and excellence through modules like Essar leadership values. goal setting. customer satisfaction.Management Development Programme(MDP) The Management Development Programme (MDP) is a six-day residential programmes that aims to prepare middle management executives for newer roles in a changing environment. Employee develpoement policy of tata steel is far better than essar steel. COMPARISION OF THEIR HR POLICIES:In essar steel they are focusing on employee motivation policy and Tata steel they are focusing on performance appraisal. motivation. conflict management and counseling skills.
tatasteel.com/section_level1.RECOMMENDATION:As shown above the human resource policies of both the company’s analysis I found that as a public ltd company Tata Steel gives more emphasizeon betterment and welfare of their employees as well as their surroundingsas a public ltd.com/2011-0318/news/29141867_1_hr-coil-prices-coking-coal-steel-prices http://www. Co.asp .html http://articles. As above shown that the Co.com/1749-hr-practices-tata-steel. REFERENCES:http://www. Like other companies they have their own facilities to train people also this kind of organizations provide extensive atmosphere to their employees according to the different environment because this organization has corporate offices in other countries so this kind of atmosphere help an employee to develop on both the fronts. is giving benefits to present employees as well as retired employees so this kind of facilities attract more people to join the organization and also the company helps in social areas also the company iscapable enough to provide in house training by doing such type of activitiesa company shows a self reliance to develop skills of their employees.economictimes.citeops. they are more concerned to welfare of the people instead of earning profit. Comparatively Essar steel is a private ownership organization and also concerned with more than one type of industry but this will not affect their decision making on their employees because an employee is a valuable asset to the company so as this group thought.essar.indiatimes.com/corporate/company-profile.aspx?cont_id=eLiVfqUiZks= http://www.
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