A

PROJECT REPORT
ON
ORGANISATION STRUCTURE STUDY
IN
RASHTRIYA ISPAT NIGAM LIMITED
{VISAKHAPATNAM STEEL PLANT}

A project report
Submitted in partial fulfillment for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

Submitted by

R.RACHEL JAYANTHI
(1786910093)

DEAPRTMENT OF MANAGEMENT STUDIES Dr. C.S. RAO

P.G CENTER SRI Y.N COLLEGE
(Affiliated to Adikavi Nannaya University, Rajamaherdravaram)
Thrice Accredited by NAAC at ‘A’ Grade
NARSAPUR – 534 275, WEST GODAVARI Dist., A.P.

1
 DECLARATION

I hereby declare that the Project report entitled “A STUDY ON ORGANISATION

STRUCTURE” With regard to Rashtriya Ispat Nigam limited,Visakhapatnam submitted by
me under the guidance of O.RAM MOHAN RAO (Asst.General Manager ),RINL of our own
work and has not been submitted to any other University or institute or published earlier.

Signature of the Student

R.RACHEL JAYANTHI
SRI Y.N COLLEGE
NARSAPUR
.

2
 CERTIFICATE

This is to certify that R.Rachel jayanthi has her internship from 21-05-2018 to 30-06-
2018 at Vizag Steel Plant and has successfully completed the project under the title
“ORGANISATION STRUCTURE STUDY” under the guidance and supervision of
Dr.O.R.M RAO.
During her tenure with us we found her sincere and hardworking. We wish her a
great success in future.

Place: Visakhapatnam Signature of the guide

Date: O.RAM MOHAN RAO

(Asst. General Manager)

3
 ACKNOWLEDGEMENT

As a token of my feeling, I would like to acknowledge my sincere thanks to Mr. O.RAM

MOHAN RAO (Asst.general Manager), Visakhapatnam Steel Plant for his guidance and
support extended throughout the period of study.
I render my sincere thanks to O.RAM MOHAN RAO, Asst. General Manager (HRD), and
Visakhapatnam Steel Plant for accepting my requesting of doing the project work in this
esteemed organization.
I would like to acknowledge my sincere thanks to all the employees in the plant and
university authorities for their encouragement throughout the academic period.

R.RACHEL JAYANTHI
(1786910093)

4
 CONTENTS
Page No
CHAPTER -1
INTRODUCTION TO ORGANISATION STRUCTURE

OBJECTIVE OF THE STUDY

METHODOLOGY

LIMITATIONS

CHAPTER -2
COMPANY PROFILE

BACKGROUND
VISION
MISSION
POLICIES
CORPORATE INFORMATION

CHAPTER-3
INDUSTRY PROFILE

STEEL INDUSTRY PROFILE

INDIA’S STEEL SCENARIO
PROBLEMS OF STEEL INDUSTRY
GROWTH OF STEEL INDUSTRY

CHAPTER-4
DATA ANALYSIS
RECRUITMENT

PERFORMANCE APPRAISAL

TRAINING AND DEVELOPMENT

CHAPTER-5
FINDINGS
SUGGESTIONS
CONCLUSION

BIBLIOGRAPHY
ANNEXURE:QUESTIONNAIRE

5
 EXECUTIVE SUMMARY
Two of the most critical activities within the human resources 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 useful to their full potential. In this study we can make an assessment of
future requirement of manpower and the new trends that can be adopted in
terms of recruitment in public sector.

6
 CHAPTER 1:

INTRODUCTION
Introduction to ORGANISATION
STRUCTURE STUDY
Objectives of the study
Methodology
Limitations

7
 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. Thegrowth of any organization depends on the overall performance such as
humanresource management, productions, marketing resources and financial
marketing resources and financial performance of the organization. The growth
of any organization can be judgedby the growth of the employee reflecting the
performance of organization inlarger scale. Vital aspect of HRM because the
performance of an individual in anorganization is largely driven by the work
atmosphere or work culture thatprevails at the workplace. A good working
condition is one of the benefits that theemployees can expect from an efficient
human resource team. A safe, clean andhealthy environment can bring out the
best in an employee.
An organization cannot build a good team of working professionals
without goodHuman Resources Management. 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.

8
OBJECTIVES OF THE STUDY

• To study the corporate structure and hierarchy of individual departments

of the RINL.
• To identify safety, security and welfare measures initiated by the steel
plant
• To know about the awards and achievements of the company
• To study the corporate social responsibility activities of the Steel Plant.
• To know the strengths, weakness, opportunities and threats (SWOT
Analysis)of company
METHODOLOGY

The research being an explanatory 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.
• Explanatory 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.Secondarydata

Management
Personal
Primary Data Observation

Respondents

Data Source
Inside the
Annual Reports
Company
Secondary Data
Out Side the Journals , Internet
Company ,Reference

9
1. Primary Data:

It is the information collected directly without any reference.

Observations and through personal interview in this study it is mainly
concerned with interviews from officers and staff, some of the information has
been verified or supplemented with personal observations.
Through Telephone interviews: This is the 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 discussions with recruitment
manager and guidelines are taken from Asst. General Manager (HRD) and
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.
LIMITATIONS OF THE STUDY

The opinions, observations and conclusions expressed here are collected

through survey and literature provided by Visakhapatnam Steel Plant.
Following are the few constraints faced during the study.
One of the limiting factors for a thorough and complete study of the subject
has been the insufficient period of study.

Elaborate study was not possible due to lack of financial resources.

The survey was conducted on the sample based upon stratified random
selection has its own defects.
Executives are not available because they were involved in various
activities.
The size of the sample representing the universe is very small.

10
 CHAPTER 2:
COMPANY PROFILE
Background
Vision
Mission
Policies
Corporate information

11
 PROFILE OF THE VISAKHAPATNAM STEEL PLANT
With a view to give impetus to Industrial growth and to meet the
inspirations of the people from South India, Government of India decided to
establish integrated steel plant in Public Sector Undertaking at Visakhapatnam
(Andhra Pradesh). The announcement was made by the then Prime Minister of
India late Smt. Indira Gandhi in the parliament on 17th April' 1970 for setting
up a 5th integrated steel plant in Visakhapatnam, Andhra Pradesh. The
foundation stone for the plant was laid by Smt. Gandhi on 20.01.1971. The
selection committee chose the site near Balacheruvu creek and the then prime
minister did the formal inauguration on 20th January. The consultants, M/s
M.N.Dastur& Company (P).ltd. submitted a techno-economic feasibility report
in February 1972, and a detailed project report for the plant, with an annual
capacity of about 3 million tons of liquid steel in OCTOBER1977.
The Soviets examined the DPR prepared by M.N.Dastur Co and offered
technical and economic co-operation for the same. The Government of India
and USSR signed an agreement on 12th June 1979, for cooperation in setting up
the 3.4 million tons integrated steel plant at Visakhapatnam. In term of this
agreement the earlier DPR of Dastur co was revised jointly by Soviet and Indian
designorganizations, and a comprehensive revised DPR (CRDPR) for VSP was
submitted in November 1980. The project was estimated to cost Rs.3897.28
crores, based on prices as on 4th quarter of 1981. But during the implementation
of VSP, it has been observed that the project cost has increased substantially
over the sanctioned cost, mainly due to price escalations and under provisions in
DPR estimates. In view of this and the critical fund situation, alternatives for
implementation of VSP with rationalization of approval concept were studied in
1986. The rationalization has been basically from the point of obtaining the
maximum output from the equipment already installed, planned for
procurement, achieving higher levels of operational efficiency and labour
productivity over what was envisaged earlier. Under the rationalized concept
3.0MT of liquid steel will be produced in a year, and the project is estimated to
cost Rs.6281 crores, based on prices as on first quarter of 1986.
The plant is designed to produce three million tons of liquid steel per
annum to be converted to 2.656 million tons per annum of saleable steel. In
addition, Visakhapatnam steel plant will produce annually about 5.56 lakh tons
of pig iron and various by-products and benzol products for sale.

12
LOCATION:

The plant is located in Visakhapatnam city, which is on the coast of Bay

of Bengal. Visakhapatnam city is an important commercial center of Andhra
Pradesh. It has the deepest port and is one of the principal outlets for country’s
exporting Iron ore. The city has many large industries such as The Hindustan
petroleum refinery, Bharat heavy Plates and Vessels ltd., Coromandal
Fertilizers, Hindustan zinc, Hindustan Shipyard etc. The city is situated on the
main broad gauge railway line between Calcutta and Madras and is well
connected with other major cities and statecapitals by rail, road and air. The
Visakhapatnam steel plant is located southwest of Visakhapatnam Harbour and
is about 26 Km from Visakhapatnam city. The township and the plant have
been built on an area of 27,000 acres, between the national highway no.5 and
the Bay of Bengal.
EMPLOYMENT OPPORTUNITIES:

At full operation stage, VSP will generate direct employment for about
17,000 persons. The indirect employment due to various auxiliary units
development and other services will be much more. Many of the management
strategies now being talked about were anticipated by the Visakhapatnam steel
plant management much earlier and adopted straight away in the initial years.
The plant decided to operate with around 17,250 workers at work and avoid
surplus manpower. The ban of Indian steel industry has set to achieve quantum
gains in labor productivity. As part of a deliberate recruitment philosophy, VSP
selected young, highly skilled manpower from the region and decided to induct
them through carefully chalked out training programs. Visakhapatnam steel
plant has achieved excellence in various fields of management by introducing
innovative schemes like zero over time working, overlapping shifts, cluster
based promotions, task based performance appraisal and productivity oriented
training and management development. A unique and comprehensive
motivational package with unbolts mechanism for promoting safety and
reducing fire accidents has been worked out and successfully implemented.

13
SOCIAL RESPONSIBILITIES:

Peripheral development and special concern for the displaced persons

underling the Visakhapatnam steel plant’s commitment and concern for the
social and regional development around it. As a special gesture for the welfare
of the displaced persons, Visakhapatnam steel plant provided them with over
5,900 jobs, which constitute more than 1/3 of its total non-executive manpower.
In the recruitment policies of VSP displaced persons have been given several
concessions in the areas of educational qualifications, age and skill levels. As a
part of social responsibility VSP took a massive afforestation program has been
launched in and around the plant. Out of the total 9,200 hectares of area 3,600
hectares has been ear marked for afforestation. Along the land boundary of VSP
a green belt of half a kilometer has been delineated for afforestation. 1.4 lakh
trees have been planted in 100 hectares during 94-95 and 1.22 lakhs of trees has
been planted in 207 hectares during 95-96. 3 million trees for 3MT of steel was
the slogan of VSP. That target also achieved. VSP has been complying with
statutory standards of both Andhra Pradesh pollution control board and central
pollution control board. It has been closely maintaining 31 major stack
emissions and 8 ambient air monitoring areas out side steel plant.
BUSINESS SCENARIO OF VISAKHAPATNAM STEEL PLANT:

VSP is the second largest government owned steel company in India

(Source: Steel world, June 2011 newsletter), with original liquid steel
production capacity of 3.0 MTPA and expanded liquid steel production capacity
of 6.3 MTPA, which is in the advanced stages of completion by the Financial
Year 2013. The plant at Visakhapatnam, VSP, was originally established in
1971 as part of SAIL, a PSU producing iron and steel products. In 1982, the
Company was incorporated and the assets and liabilities of VSP were
transferred from SAIL to VSP. In November 2010, the Company was conferred
“Navratna” status by the GOI, which provides it with a considerable degree of
operational and financial autonomy from the GOI. As of May 2012, VSP is one
of only 16 PSUs in India with Navratna status. The Promoter of the Company is
the President of India, acting through the Ministry of Steel, GOI.
VSP has its Registered and Corporate Office in Visakhapatnam, in the
state of Andhra Pradesh, India, with regional offices in Visakhapatnam, Delhi,
Kolkata, Mumbai and Chennai. VSP conduct its production activities at a single
production site in Visakhapatnam. The steel production facilities consist of four

14
coke oven batteries, three blast furnaces, including one commissioned in April
2012, along with the related processing units, three converters, three rolling
facilities and a thermal power plant and its ancillary facilities, including waste
heat recovery facilities. The expansion of its production capacity to more than
double our liquid steel capacity from 3.0 MTPA to 6.3 MTPA is well advanced,
with major units, including finishing mills, to be commissioned in phases during
the Financial Year 2013. The plant purchase most of its key raw materials,
including iron ore and coking coal, but it also has mines which provide
limestone, dolomite, manganese ore, quartz and silica sand.
VSP owns a majority stake in EIL, a holding company for mining
companies with iron ore, manganese ore, limestone and dolomite reserves. VSP
produces a broad range of steel products, including plain wire rods, rebars,
rounds, squares, structurals, billets, blooms and pig iron. It sells most of the
products domestically, with Indian customers accounting for approximately
97.3percent of the sales as of June 30, 2012, of which 53.6percent was in south
India. The customers consist mainly of companies in the construction,
infrastructure, manufacturing, automobile, general engineering and fabrication
sectors. As of June 30, 2012, VSP employed 18,007 permanent employees. It
sells its products through a wide marketing network of five regional offices, 23
branch offices, 18 consignment agents, four handling contractors and five
consignment sales agents. VSP sell its steel products to project users, industrial
users and retailers. In the Financial Years 2009, 2010, 2011 and 2012 and the
three months ended June 30, 2012, VSP recorded net sales of 91.28 billion,
98.09 billion, 105.79 billion, 131.76 billion and 26.15 billion, respectively, on a
restated consolidated basis. During the same periods, it recorded a profit after
tax of 13.16 billion, 8.87 billion, 6.02 billion, 8.04 billion and 1.24 billion,
respectively. As of June 30, 2012, it had total assets and total net worth of
231.88 billion and 126.63 billion, respectively.

15
BOARD OF DIRECTORS

Chairman-cum-Managing Director Shri P.Madhusudan

Director(Personnel) Shri Kishore Chandra Das
Director(Commercial) Shri P Raychaudhury
Director(Operations) Shri D.N.Rao
Director(Projects) Shri P.C.Mahapatra
Director(Finance) Shri V V V Gopal Rao

VISION, MISSION& OBJECTIVES

VISION :
To be the most efficient steel maker heving the largest single location
shore based steel plant in the country.
• Initiative: Have a self-propelled & proactive approach.
• Decisiveness: Decide with speed & clarity.
• Ethics: Be consistent with professional & moral values.
• Accountability: Take responsibility for actions.
• Leadership: Lead by example.
• Speed: Demonstrates swiftness and efficiency in everything we do.
MISSION:
To attain 16 million tonne (Mt) 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 stakeholders.

OBJECTIVES OF RINL:
• ACHIEVE Gross Margin to Turnover ratio >10%
• Plan for finishing mill to integrate with 7.3Mt capacity and
commission the same by 2017-18.
• Achieve rated capacity of new & revamped units by 2017-18.
• Capture markets for high – end value added product by focusing on
sector specific applications and customer needs.
• Achieve leadership in Energy consumption by achieving 5.6
Gcal/tcs by 2017-18.

16
 • Globalisation of operations through acquisition of mines and
setting up of marketing network abroad.
• Diversify through operational zing of Bhilwara Mines setting up of
pelletization plant, DRI-EAF unit, wheel & Axie Plants.
• Create a high performance and safe work culture by nurturing
talent and developing leaders.
• To grow in harmony with the environment & communities around
us.

• Commitment.
• Customer Satisfaction.
• Continuous Improvement.
• Concern for environment.
• Creativity and Innovation.

VSP - POLICIES:
VSP takes all necessary actions for the fulfilment 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 conversation of natural resources and energy with
concern environment.
• Comply with relevant legal, regulatory and other requirements
applicable to products, activities and processes in respect of quality
and safety and also ensure the 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.

17
 • 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.
• Support the purchase of energy efficient products and service 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:

We, at Visakhapatnam Steel Plant, believe that our employees are

the most important resources. To realize the full potential of employees,
the company is committed to :

• Wake efforts to attract the best of the talents

• 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

Consumer 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 relationships for mutual benefits.

18
 • VSP strive for enhancing value for the money and value the
relationship with customers.
IT Policy:

RINl/VSP is committed to leverage Information Technology as the

vital enabler in improving the customer-satisfaction, organizational
efficiency, productivity, decision-making, transparency and cost
effectiveness, and thus adding value to the business of steel making.
Towards this, RINL shall

• 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 quality of product and
services at least cost
• Follow scientific and structured methodology in the software
development processes with total user-involvement, and thus
delivering integrated and quality products to the satisfaction of
internal and external customers
• Install, maintain and upgrade suitable cost-effective IT hardware,
software and other IT infrastructure and ensure high levels of data
and information 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.

Maintenance Policy:

• Establish and upgrade the maintenance practices for continual

improvement of reliability and availability of system and
equipment.
• Upgrade, modify and replace obsolete and outlived system and
equipment to sustain profitable growth of the company.

19
 • Utilize manufacturing facilities, fleet and other internal resources
for delivery of quality products and services to our customers.
• Develop and monitor knowledge and skill of our employees in an
enabling environment to match the present and future needs of the
Organization.

HRD Policy:

We, at Visakhapatnam Steel Plant, are committed to create an

organizational culture which nurtures employees' potential for the prosperity
of the organization. To accomplish this, we will :

• 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 that the quality of 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 behaviour 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
• Fulfil social obligations by providing training to the students of
educational institutions and to the trainees of other organizations.

20
Main Products Of VSP:

Steel Products:

1) Angles 10) Nut Coke

2) Billets 11) Coal Tar
3) Channels 12) Anthracene Oil
4) Beams 13) HP Naphthalene
5) Squares 14) Benzene
6) Flats 15) Toulene
7) Rounds 16) Zylene
8) Rebars 17) Wash Oil
9) Wire rods 18) Coke Dust

By-Products:

1) Granulated Slag
2) Lime Fines
3) Ammonium Sulphate

Major Sources Of Raw Materials:

Raw Material Source

Iron Ore Lumps& Fines Bailadila , MP
BF Lime Stone Jaggayyapeta, AP
SMS Limestone UAE
BF Dolomite Madharam, AP
SMS Dolomite Madharam, AP
Manganese Ore Chipurupalli, AP
Boiler Coal Talcher, Orissa
Coking Coal Australia
Medium Coking Coal Gidi/Swang/Rajarappa/Kargali

21
Table no.1.1 major units:

Deparments Annual Units(3.0MT stage)

capacity(‘000T)
Coke ovens 2261 4 batteries of 67 ovens & Height
Sinter plant 5256 2 sinter machines of 312sq.Mtr.Grate area
each
Blast furnace 3400 2 furnace of 3200 Cu. Mtr. Volume each
Steel melt shop 3000 3 ld converters each of 133 Cu.Mtr
Volume and six 4 strand bloom Cates
LMMM 710 4 stand finishing mill
WRM 850 2 x 10 stand finishing mill
MMSM 850 Stand finishing mill

Man Power As On 01-03-2016:

Particulars Works Projects Mines Others Total

Executives 4119 368 222 1376 6085
Non- 10678 47 213 616 11549
Executives
Total 17634

22
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
• Enterprise risk management(ERM)

23
Promotion of business excellence concepts through

1. Project Utkarsh initiatives

2. Knowledge Management system – GNANA
3. Corporate awards

CSM acts a nodal agency for co-ordination with department of public-enterprise

(OPE), ministry of steel (M05) and ministry of statistics & programme
implementation (MOSPI) for dissemination of critical information as required.

Finance and Accounts de 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
Indian in case of Government Companies, Internal Audits and special Audits.

Training & development:

Training refresher training foreign training faculty development etc. is

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.

24
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 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 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 the entire above step, which
should be conducted sequentially so that the training is given successfully.

25
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 the 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.
• 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 step up to the country have done away either the
conventional bell charging system.
• 100% continuous 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 bare
mill Wire 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.

26
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 Ahmadabad, Indore, Mumbai,
Nagpur, pune
South Chennai Bangalore, Chennai, Kochi,
Coimbatore
Andhra Visakhapatnam Hyderabad, Visakhapatnam

Personnel Department:

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

personnel policy and comprehensive personnel systems that are resultoriented
and to develop an organizational objective. 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 synchronise 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 upwardstraining, promotions and rewards
have all helped to meet the aspiring needs of the individual and thereby the
goals of the organization.

27
 VSP a comprehensive scheme of career Manning and field of industrial
relations, VSP encourage 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.

Organizational chart ( personnel directorate ) :

Directorate(personnel)

ED (P & IR) GM(Training & HRD) ED (P & CS)

GM(P)-non GM(CP& GM(Law liasison

GM(P)-works GM(TA) C)
works officer SC&ST)

GM(MS)

GM(M&HS)

DGM (Admn
&liaison I/C)

Pollution Measures adopted in VSP :

Generally, Integrated steel plant is seen as a major contributor to

environmental pollution as it discharges volume 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 8 costs of Rs.460 crores towards pollution control
measures.

28
Source Of Funds :

VSP raises it working capital from. The following are the 10 where funds
finance are raised

State Bank of India ( SBH)

Canara Bank
UCO Bank
Bank of Baroda
Andhra bank
State Bank of Hyderabad
Allahabad Bank
HSBC
Indian Overseas Bank( IOB)

Achievements & Awards:

The efforts of VSP have been recognized in various forms. Some of the
major awards received by the VSP are in the area of energy conservation,
environment protection, safety, quality, Quality Circles, Rajbhasha, MOU,
sports related away and a number of awards at the individual level.

Organizationa| Environment;

RashtriyaIspat Nigam Limited, a Navaratna PSE with 100% Ownership

By GOI, Is The Co Entity of Vishakhapatnam steel pant - the country‘s first
Shore Based Integrated first steel plant at Visakhapatnam, Andhra Pradesh.
Visakhapatnam Steel Plant. Which was fully commissioned in 1992 with a
capacity of 3 Mpta liquid steel, is now in the midst f commissioning and
stabilizing its 6.3 Mtpa Facilities , Thus realizing its first phase of growth in line
with its Vision and Mission

29
Main Products and Services:

RINL, with its exclusive product mix of longs is the largest producer of
longs products in the country with a market share of 8% in 201213. The
company also markets by -products like coal chemicals (Ammonium Sulphate,
Naphthalene, Coal tar, Pitch, Benzyl products, etc.) and granulated BF slag.

Deliver 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 R05 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 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 employees 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 labour force for carrying out non-core activities in the production
facilities.

30
 Man Power
Non -
Executives Executives

35%

65%

Gender Diversity
Women Men

3%

97%

Major Techno1oggies , 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
operationalefficiency. It will vet further strengthened with stabilization of the
6.3Mtpa expansion units.

31
 RINL has been a forerunner in adoption of green technologies in the
process of steel making through the BF-BOF route, in 1980, well before the
concepts of sustainable development emerged as a concern in the industry.

An initial investment of 4680 was made on clean technologies, which

was 5.5 of the total project cost and the thrust continues even during the
expansion to 6.3Mtpa with a total investment of 12830. Which is 10% of the
total project cost?(fig)

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 on-going projects.

Statutory and Regulatory Environment:

Being GOI owned PSE, RINL complies with all the applicable regulation
and has been adopting the recent DPE guidelines on CSR, GD, SD, R&D etc.,
and RINL has been certified for all three system standards i.e., 9001:2008, ISO
1400122004 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 shouldn’t 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 than expansion/ extension renovates
the business life cycle and exploration of new units and products can be
practiced, such that organization can maintain a consist position in the market.

32
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.

33
 Chapter 3:

Industry Profile

Steel Industry Profile

India’s Steel Scenario
Problem Of Steel Industry
Growth Of Steel Industry

34
INTRODUCTION TO STEEL INDUSTRY IN INDIA:

What’s in the name? Nothing, one might say. For steel - a century old
metalthere additionally scenes for any possible non-unanimity of thought. But
here precisely are the chances for our going wrong. True, like most industries
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 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 705 and 805 was dominated TlSCO& SAIL. With the price control
regime in place, the steel companies could turn in profit without in major effort.
But the station 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 the
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 the 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 (1941 1974) of its evolution
can be traced to the beginning of the 20th century when the steel industry made
a beginning as an icon 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 reality tee. Off, this scenario was not to continue for long. The
political Instability and theresultant slowdown in reforms saw the economic
growth slowing down. The South East Asian economic crises were of course,
the final nail on the coffin.

35
 During the second phase (1947 1992), in the hands of the early planners
this industry became an important instrument for attaining the rapid economic
growth because of two inherent advantage enjoyed by it. Firstly, India’s fast
reserves of the basic raw materials conferred a certain competitive advance in
this industry. Secondly the wide ranging linkages, both forward and 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 pubic 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 company, large-scale capacity
creation was reserved for the public sector units (PUS) in a predominantly
mixed economic environment.

INDIA’S 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 labour 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”
namelyresidue 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. Them country’s aim is to sell quality steel. The government is
also helping the steel industries in the basis.

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

36
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 tons
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 the most of
our resources of manganese ore are of poor quality besides the non-availability
of good quality raw material, regular of raw materials 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 technological limitations, Rourkela plant is unable to
substitute Aluminium 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 remove statutory control over the price and distribution of
all, but a few categories with the 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 didn’t regulate the price
of the raw materials

37
Table 2.1

Growth of Steel Industry

The growth in a chronological order is depicted below:

S No Year Growth

1. 1830 Osier Marshall heather constructed the first

manufacturing plant at port-motor in Madras presidency.
2. 1874
James Erskine founded the Bengal frame works.
3. 1899 Jamshediji TATA initiated 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 Mysore 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, Bhili, 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 plant 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

38
13. 1969-74 Fourth five-year plan - Salem Steel Plant started.
Licenses were given for setting up of many mini steel
plants and rerolling 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 Fifty five-years plan – The idea of setting up the fifth
integrated steel plant, the first re – base plant at
Visakhapatnam took a definite shape. At the end of the
fifth five-year plan the total installed capacity from six
integrated plants was up to 10.6 million tons.
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
and TISCO were initiated. Capacity at the end of sixth
five-year plant form 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 cores. Visakhapatnam Steel Plant started the
production and modernization of other steel plants is also
duly engaged.

19. 1997-2002 Ninth five-year plan – Restructuring of Visakhapatnam

Steel Plant and other public sector undertakings.

20. 2002-2007 Ninth five – year plant – Restructuting of Visakhapatnam

steel plant high regime targets achieved the best of them.

39
 21. 2007-2012 Eleventh five year plan - steel industry registers the
growth of visakhapatnam steel plant high regime targets
achieved the vest 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 50Lakh crore in Visakhapatnam
steel plant.

Table-1.7

Steel Plants with Foreign Collaborations

Collaboration Capacity of
S No Plant
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

Table-1.8 Annual Productions at Various Steel Plants

S Plant Collaboration Capacity Annual

No of Finished Steel Production
Products
1. Rourkela Steel Plant West Germany 7,20,000 tonnes

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

3. Durgapur Steel Plant Britain 8,00,000 tonnes

40
Table-1.9:Expansion

Original to Expand

S No PLANT ORIGINAL MT/Year EXPANDED

MT/Year

1 Rourkela Steel Plant 1.0 1.8

2 Bhilai Steel Plant 1.1 2.5

3 Durgapur Steel Plant 1.0 1.6
4 TISCO 1.0 2.0

Growth potential of India’s steel Industry:

India has set a vision to be an economically developed by 2020. The steel

industry is expected to play a major role in india’s 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 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 are 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 as 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
• Housing
• Ground transportation
• Hi-tech engineering industries such as power generation, petrochemicals
and fertilizers.

41
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-the ones
that would provide the Indian steel companies in India like Tata and Archelor
Mittal that are either coming up or have established themselves a prominent
forces in the world steel scenario.
In 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.

42
 CHAPTER 4:

DATA ANALYSIS

Recruitment
Performance appraisal
Training and development

43
History Of Organization:
In 1970’s Kurupam Zamindars donated 6000
acres of land for Vizag Steel Plant. A new company named Rashtriya
Ispat Nigam Limited(RINL) was formed on 18February 1982. Vizag
Steel Plant was separated from SAIL and RINL wasmade the corporate
entity of Vizag Steel Plant in April 1982.
It is a integrated steel producer in Vizag, it
was built using German and Soviet Technology. The company has
grown from a loss making industry to 3 billion dollar turnover
registering a growth of 203.6% in just four years. It was conferred
Navratna status on 17 November 2010. The company focuses on
producing value added steel with 214000 tonnes of steel produced in
August 2010 out of 252000 tonnes total of salable steel produced. It is
the largest single site plant in India and Asia minor.
Vizag Steel Plant is the only indian shore
based steel plant and is situated on 33,000 acres and is poised to expand
to produce upto 20MT in a single campus. Turnover in 2011-2012 was
RS 14,457 crores. On 20 May 2009 Ex-Prime Minister Manmohan
Singh launched the expansion project of Vizag Steel Plant from a
capacity of 3.6MT to 6.3MT at a cost of RS 8,692 crores . But the
investment was revised to 14,489 crores.
MAJOR COMPETITORS OF VSP
1. TATA steel
2. JINDAL steel and power
3. JSW ISPAT

44
MAJOR DEPARTMENTS INSIDE THE PLANT

1. Coke ovens &coal chemical plant

2. Sinter plant
3. Blast furnace
4. Steel melt shop
5. Light & medium merchant mill
6. Wire rod mill
7. Medium merchant mill
8. Special bar mill

45
Profile Of The Product:
There are total of nine products and twelve
by-products.
The products are as follows,
1. Wire Rods
2. TMT RE-Bars
3. Plain rounds
4. Structurals
5. Billets
6. Channels
7. Beams
8. Squares
9. Flats

Wire Rods:
Wire rods are manufactured in special steel grades using stelmor cooling
process. It’s diameter ranges from 5.5mm to 14mm. these are used for
various applications like cold heading, cable armouring etc

TMT Re-Bars:
The reinforcement bars in either straightened form or coil form are
produced from fully killed steel and have low carbon content. These
have ultimate tensile strength and higher percentage of elongation
when compared to cold twisted bars of same grade. These vary from a
size of 8mm and weight of 0.363kgs/m to 36mm and weight of
7.750kgs/m.

46
Plain rounds:
Rounds are produced from fully killed steel. Bundling and automatic
tying/strapping of rounds ensures minimum damage during handling
and transport and has close dimensional tolerance. These vary from a
size of 16mm and weight of 1.58kgs/m to a size of 80mm and a weight
of 39.47kgs/m.

Structurals:
Structurals are rolled from fully killed steel. It has sectional properties
and tolerance as per angles,channels and beams. Piling and automatic
tying of structurals ensures minimum damage during handling and
transport. The size of angles varies from 50x50x5/6mm and a weight of
4.5kgs/m to 110x110x8/10mm and a weight of 4.82kgs/m.The size of
channels varies from 40x32x5mm with a weight of 4.82kgs/m to
150x76x6.5mm with a weight of 16.80kgs/m.

Flats: 150x10mm to 150x12mm.

Beams: 245x245mm to 315x245mm.
Billets: 125x125mm to 65x65mm.

47
The By-Products are
1. Nut coke
2. Coke dust
3. Coal Tar
4. Anthracene oil
5. HP Napthalence
6. Benzene
7. Toluene
8. Zylene
9. Wash Oil
10. Granulated Slag
11. Lime Fines
12. Ammonium Sulphate

Classifications Of Steels:
Low Carbon : 0.30%max carbon
Medium Carbon : 0.31-0.50% Carbon
High Carbon :0.51-0.85% Carbon

48
Mission Of Vizag Steel Plant:
To attain 20 Mt 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 & Quality; and to meet the aspirations of
stakeholders.
Objectives Of Vizag Steel Plant:
• Achieve Gross Margin to Turnover ratio > 10%.
• Plan for finishing mill to integrate with 7.3 Mt capacity
and commission the same by 2017-18.
• Achieve rated capacity of new & revamped units by 2017-18.
• Capture markets for high-end value added products by focusing
on sector specific applications and customer needs.
• Achieve leadership in Energy consumption by achieving
5.6 Gcal/tcs by 2017-18.
• Globalisation of operations through acquisition of mines and
setting up of marketing network.
• Create a high performance and safe work culture by nurturing
talent and developing leaders.
• To grow in harmony with the environment & communities around
us.

Strategies:
• RINL-VSP has formed a joint venture company with
Manganese Ore India Limited- RINMOIL FERRO ALLOY Pvt.
This will help VSP to meet its Ferro Alloys requirements.
• RINL-VSP acquired 51% stake in M/s EIL, the holding
company of OMDC & BSLC (Bird group of Companies) .

49
Organization Chart – Design & Structure:

50
Policies and Procedure followed by Organization
Policies:
Quality, Environment and Occupational Health & Safety Policy:
• Supply quality goods and services to customers delight.
• Document, implement, maintain & periodically review the
management systems including the policy, objectives and targets.
• Use resources efficiently and reduce waste and prevent pollution.
• Comply with all relevant legal, regulatory and other requirements
applicable to products, activities and processes.
• Encourage development and involvement of employees.
Energy policy:
• Monitor closely and control consumption of various forms of
energy through an effective energy Management system.
• Adopt appropriate energy conservation technologies.
• Maximize the use of cheaper and easily available forms of energy.
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 with employees.
• Encourage teamwork, creativity, innovativeness and high
achievement orientation.
• Ensure functioning of effective communication channels with
employees.

51
IT Policy:
• Follow best practices in process automation & business processes
through IT by in-house efforts/ outsourcing and collaborative
efforts with other organizations.
• Follow scientific and structured methodology in the software
development processes with total user involvement, and thus
delivering integrated and quality products to the satisfaction of
internal and external customers.
• Enrich the skill and knowledge at regular intervals to make
employees knowledgeable.

Functions of various departments and their Managers:

There are various departments in RINL and each department

have their respective managers.
Some of departments in RINL which are common in all
the organizations are as follows,
1. Production department
2. H.R department
3. Marketing department
4. Finance department

52
 Production Department:
The Production department is responsible for the
manufacturing of the product in the organization. The
manager of the production department is responsible for the
processes in the production department and the product that
is manufactured.
There are five sub departments in Production Department.
They are,
1. Production and Planning
2. Store department
3. Work department
4. Purchasing department
5. Design and Technical support department

H.R Department:
H.R means Human Resource department. This
department is responsible of recruiting and training of the employees in
their respective organization.
Marketing Department:
This department is responsible to look after the sales of the product, to
promote the product, to analyse the present past and future demand of
the product in the market.

53
Finance Department:
This department is responsible for the accounts section in the
organization. This accounts section includes the wages given to
employee, money spent on the product to be manufactured and all other
expenses.

SWOT Analysis:
Strengths:
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 Million tonnes of steel by rail is the best for any
year since inception.
5. The first Indian steel company to adopt energy management
standard for systematic improvement in energy efficiency.

Weaknesses:
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
cyclicalmarkets.

Opportunities:
1. Mergers & Acquisitions to gain market share.
2. Continued emphasis on infrastructure building & several Greenfield
projects under execution will boost growth.

54
3. Focus on strategic initiatives of Expansion, securing raw materials.
4. Improve availability of ports and logistics.

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.

Key Result Areas of the Organization:

Key Result Areas refer to general areas of outputs for which the
department’s role is responsible.
Importance of Key Result Areas.

• Sets goals and objectives

• Prioritize their activities, and therefore improve their time/work
management.
• Make value-added decisions
• Clarify roles of department or individual
• Focus on results rather than activities
• Align their roles to the organization’s business or strategic plan

• Communicate their role’s purposes to others

Key result areas (KRAs) capture about 80% of the department’s

work role. The remainders are usually devoted to areas of shared
responsibility

55
Human Resource Marketing Finance Production
Motivation tip Product promotion Audit Manufacturing,
quality control and
purchase of raw
material
Harmonious employee Sales P&L statements
relations
Counselling trouble Customer care Balance sheet
makers
Effective grievances Financial analysis
handling
Training and quality
circle
Performance appraisal
Handle issues like
staff, production
&salary

56
Significant factors for success:
In any organization to implement change is a very difficult process as it
requires the collaboration between various departments and persistence
to drive the change initiative forward. These change initiative within
the organizations are more commonly known as organization
development (OD).
1. Thoughtful and workable strategy
2. Customer-centricity
3. Insightful talent management
4. Focus on innovation
5. Flexibility as an important value
6. Change leadership
7. Focus on High Performance Work System & people engagement
8. Alignment of all functional areas
9. Speed (that is higher than the speed of change i business
environment)

10.Planning

11.Skillful workers

12.Long term relationship with customers

13. Organization Widening

14. Increased organization health and effectiveness

57
System of Accounting followed:
Fixed assets:

• Fixed assets are stated at historical cost less depreciation.

• Contributions made by the company towards the cost of fixed
assets owned by the company.
• State / Central Government are grouped together with similar
assets owned by thecompany with appropriate disclosure thereof.
• Expenditure attributable / relating to construction, to the extent
not directly identifiableto any specific Plant Unit, is kept under
‘Expenditure During Construction’ for allocationto Fixed Assets
and is grouped under ‘Capital Work-in- Progress’.

Investments:

• Current investments are carried at lower of cost and fair value.

• Long term investments are carried at cost. Diminution in value,
other than temporary,is provided for.

Inventories:

• Inventories are valued at lower of cost and net realizable value.

• The basis of determining cost is:
Finished / Semi-finished goods - Weighted Average cost
Raw material, Stores & Spares, Loose Tools - Monthly
weighted average cost andthose in transit at cost.

Revenue Recognition:

• Sales are recognized when all significant risks and rewards of

ownership have been to the buyer.
• Export incentives under various schemes are recognized as
Income on certainty of realisation.

58
 CLAIMS:
Claims against outside agencies are accounted on certainty of
realisation.

FOREIGN CURRENCY TRANSACTIONS:

• Foreign currency monetary items are recorded at the closing

rate.
• Exchange differences arising on account of settlement /
conversion of foreign currency.
• Monetary items are recognised as expense or income in the
period in which theyarise.

EMPLOYEE BENEFITS:

• Actuarial gains and losses on defined benefit plans are

recognized during the year.

DEPRECIATION AND AMORTISATION:

• Depreciation is provided on straight line method (SLM), up to full

value of the cost of asset over the specified period derived in
accordance with the provisions of Schedule

• XIV of the Companies Act, 1956, except the following:

59
 i)Assets costing up to Rs.5000/- are fully depreciated in the year
of capitalisation.

ii)Depreciation on the following categories of assets is provided

up to full value of thecost of asset on SLM over the period of their
useful life based on the Management’sestimate given in brackets.
iii)Photo Copiers & Fax Machines, Telecom Equipment (5 years);
Cranes, Slag Pot Carriers, Audio & Visual Equipment (10 years);
Other Office Equipment, Earth Moving Equipment,

iv)Forklift Trucks, Air Conditioners, Refrigerators, Water

Coolers, air coolers, freezers.

• (7 years); Cars (6 years); Safety Equipment, Other light vehicles

(8 years); Computers

BORROWING COSTS:

• Borrowing costs incurred for obtaining assets which take more

than 12 months to get ready for its intended use are capitalised to
the respective assets wherever the costs are directly attributable
to such assets and in other cases by applying weighted average
cost of borrowings to the expenditure on such assets.

• Other borrowing costs are treated as expense for the year.

60
 PRIOR PERIOD ADJUSTMENTS:

• Items of Income / Expenditure which arise in the current period

as a result of errors or omissions in the preparation of Financial
Statements of one or more prior periods.

Product Promotional Methods:

In order to increase thesales, the organization needs to promote the
product at various places and in various types.

Brand promotion
A brand promotion campaign has been launched by the company to
increase consumption of steel in the country. The Company has chosen
to promote its brand image through renaming of Hazrat Nizamuddin -
Visakhapatnam Samta Express Train to Vizag Steel Samta Express in
collaboration with the Indian Railways. As the train is running through 5
states, the brand is getting popularity in those places. The Company has
roped in Ms PV Sindhu, the first Indian Silver Medallist in Badminton
in the Olympics, as the Brand Ambassador of Vizag Steel. There are
further advertisements being done in various print and electronic media
are being intensified to ensure enhanced awareness about its products.
The Company is also incentivizing rural marketing to increase the
consumption of steel in rural areas.

61
Existing Marketing Network of RINL:

1) Currently, RINL has a network of 5 regional offices, 23

branch sales offices and22 stockyards spread across the
country.

2) It also takes the help of Consignment Agents and Consignment

Sales for the marketing of their products.

62
 3) The exports are carried out by the export wing of marketing
division with the help of different agencies.

4) The company is recognised as ‘Star Trading House’ by the

director general of foreign trade, ministry of commerce,
government of India.

5) Regional mangers/ Branch managers meet at head quarters

regularly to discuss the market situation and market strategies.

6)RINL has appointed about 150 Retailers. These Retailers

purchase and sell the RINL’S products.

HRD MEASURES :
Employees are in a way an asset to RINL and for this reason they are
made to realise full potential thereby helping both the organization and
the individual. The HRD involves development of the employee in
whole and following are the measures taken by the HRD for
development of the employees:
• In-house training programs
• Nomination to external training programs
• Organisational research, Employees, satisfaction surveys and
voice of employees’ index
• Organizational development
• Membership with professional bodies

63
 • In-plant training for management students
• Lectures by eminent personalities
• Corporate presentation
• Interaction with professionals’ academicians’ consultants
• Emancipation of women through WIPS, Women Development
programs
• Thrust on “Samalochana”
• Sending employees to other steel plant for short duration to find
issues facing the company.
• Employees are also sent to training institutes to get training in
identified areas

WELFARE MEASURES:
Human resources being the most important resources of all their
development and welfare is given utmost priority in overall policy of the
Human Resource Management. The company is implemented many
statutory and non-statutory welfare schemes which shows how much the
company cares for its employees.
STATUTORY WELFARE MEASURES
• CANTEEN FACILITIES: The VSP has 17 canteens with 16 of
them being inside the plant and 1 outside the plant. These
canteens provide breakfast, tea, lunch and evening snacks
which at fixed rates and have been in vogue since 01-12-1996.

• BABY CRECHE: A Baby Creche for infants of women

employees is provided in the plant which has some trained
personnel to look after the needs of the baby.

64
• FIRST AID FACILITITES: There is a first aid cum occupational
health centre in operation in the plant and each first aid centre has
an ambulance.

• WATER COOLERS: A total of 305 water coolers are provided in

the plant for drinking water.

• LEAVE: RINL provides 10 days of earned leave above the

maximum ceiling prescribed under factories act. Apart from
earned leave the company also provides casual leaves, quarantine
leave, commuted leave, etc.

• MATERNITY LEAVE: 180 days of maternity leave is given

to the women employees at the time of conceiving.

• PROVISIONS: Rest rooms, sitting arrangement, safety officers,

etc are provided as per factories act.

• MINES ACT: By this act a consolidated law is provided relating

to regulation and safety of labour in mines.

• CONTRACT LABOUR WELFARE: The welfare facilities like

canteen, urinals, creche, etc. are also provided to contract labour.

65
Career Planning and Promotion Policy of Employees:
The vizag steel plant is a huge platform to provide various career
opportunities to fresh talented people. It requires high qualifications
from candidates who wish to make a career for themselves in the
executive staff. However, for the post of a non- executive staff a
minimum of ITI or diploma in engineering from any recognized
college is required. For candidates acquiring educational qualification
of a lower level there is scope in the plant as workers.

The career planning process at steel plant is however an impressive one

as the employees can choose to uplift their career by possessing
additional qualification with the help of the organization and qualifying
in the internal exams conducted every 7years by the organization. It is a
platform for developing skill and knowledge where merit is recognized
and rewarded.

There are various policies for the support and growth of the employees

• The system indicates smooth change of the plant over the shifts
and uninterrupted pace of the operation of the plant during
shifts.
• Free Medical facilities for the employee family.
• Performance based benefits scheme for all the employees.
• Retirement benefits for the employee.
• Leave Travel Concession (LTC) benefits for the employee and
to his family.

Training Measures:
• The needs of induction training, skill up gradation, unit training,
computer related training, refresher training, foreign training,
faculty development etc are attended by training and
development centre while management development and
attitudinal development are taken care at the centre for HRD.

66
 • It is the initiative of the HRD group to provide In-house
training programs.
• Employees are also sent to suppliers manufacturing units/training
institutes to get specific training in identified areas.
• In-plant training for management students
• It is the initiative of the HRD group to provide In-house
training programs

Performance Appraisal System:

Performance Appraisal System (PAS) was introduced in RINL in the
early eighties and has been modified as per need. Today RINL exists in
a world that is substantially different from what it used to be in eighties
and nineties. In tune with the changing world, lessons learnt from
excellent companies all over the world, new opportunities and
challenges of globalization and the need to have a uniform approach for
assessment of executives in the CPSEs under the Ministry of Steel, it
has been decided to review the appraisal system of RINL.

67
POLICIES
SCOPE:
The Performance Appraisal System is aimed at performance and
development planning and assessing the performance, potential,
competencies and values of all executives, including supervisory cadres
and deputationists up to E-7 grade. In respect of executives in E-8 and
E-9 grades, the format as circulated by PESB will remain in vogue.
OBJECTIVES:
1) To enable employees to plan their work, utilize their capabilities
and maximize their contributions.
2) To create a performance culture through continuous performance
improvements of individual employees, teams and the
organization.
3) To identify and develop leadership talent for future.

FINANCIAL HIGHLIGHTS OF VSP

2014-15 2015-16 2016-17

Operating results (Rs Crs)
Turnover 11675 12271 12706
Turnover (excl. trial run) 10401 10059 12317
Gross income 10689 10482 12679
Gross expenditure 10151 11248 13602
Gross profit (PBIIT) 538 7666 923
Profit before tax 103 1417 1690
Net profit after tax 62 1421 1263

Year-end financial position(Rs

Crs)
Share capital 5190 4890 4890

68
Reserves and surplus 6404 4983 3680
Capital employed 2564 7575 6416
Net worth 11587 9866 8570
Gross block 14608 21152 22935
Cumulative depreciation 9251 9288 10007
Net block 5357 11864 12928
Inventory 5180 3908 4767

Profitability & other ratios

1. Percentage of
Gross profit to sales 7.6 5.2 7.5
Net profit to sales 14.1 0.6 10.3
Gross profit to net profit 7.8 4.6 10.8
Net profit to net worth 14.4 0. 5 14.7
Gross profit to capital
employed 10.1 21 14.4
Net profit to capital
employed 18. 8 2. 4 19.7

Gross profit to share capital 15.7 10.4 18.9

Inventory sales 38.8 49.8 38.7

2. Ratio of
Current assets to current 0. 6 0. 6 0. 5
liabilities
Quick assets to current 0. 3 0. 3 0. 1
liabilities
Sales to capital employed 1. 3 4.1 1. 9

69
Advantages and drawbacks of the organization:
Advantages:
1. Tall organisation structure helps in easy flow of command.
2. Authority and responsibility can be delegated easily as it is a
simple Structure.
3. Chances of romours is less as the organisational structure is
staight.

Disadvantages:

1. Flow of command is time consuming which can lead to delay

in decision making.
2. Authority to take the decision is at a very high level.
3. Infrastructure need to be improved, increased and technology
must be upgraded by times.

70
Recommendations to overcome the drawbacks:

The following suggestions will improve the financial position of the

VSP.

PRODUCTION:
1. Need for continuous upgradation of technology for speeding
up and better process.
2. Effort must be done in cost saving, particularly in spare parts
and electricity.
Finance:
Improve financial leverage ratio for better results.

Personnel:
1. Rationalization of existing man power for effective training
for future expansion of plant.
2. Providing better motivation.
3. Improving efficiency through better HRD measures.

Marketing:
1. Continuously monitoring the indigenous sale, export sale ratio
to capture the best of market.
2. Increasing the net realization by selling in most profitable
region.
3. Identifying new markets and new application of the
company product.
4. Improving realization by identifying value added products
and providing feedback to production management.

71
CHAPTER 5

FINDINGS
Suggestions
SWOT analysis
Conclusion

72
Public sector doesn’t mean that it should go with old trend of recruiting it
can also go with the new trends that were in practice, moreover it is difficult
to bring changes in the whole system better go gradually.

SUGGESTIONS:

Here are 11 suggestions that the public sector might deploy that parallel
successful practices in the private sector.

1) Conduct better workforce planning: for years, we’ve been hearing that
the retirement tsunami would soon be washing over the government and
government agencies need to plan for these anticipated vacancies. The
best-managed private sector companies truly value the talent in their
organizations, and they produce semi-annual workforce staffing plans in
order to strategically plan for anticipated vacancies. Companies analyse
growth, anticipated retirements, voluntary and non – voluntary attrition,
skill gaps, as well as expertise in technologies being usually results in an
algorithm that predicts hires needed from both the experienced market
place and campuses. This creates a more quantifiable, strategic approach
to recruiting, this proactive approach has proven to be effective in the
private sector (e.g financial institutions and accounting firms) but most
government agencies have not widely adopted this approach.
2) Understand and leverage the agency’s employer values proposition:
highlighting an agency’s mission, while important, is simply not enough
to convince applicants to apply. Agencies much understand their EVP
and how it differentiates them from the competition. What is the agency
culture? Based on factors like these, agencies can design talent attraction
strategies. The private sector puts a great deal of effort into defining and
tailoring an EVP that sets the company up for consistent success in
attracting people that will fir the culture and want to grow there. The
culture should be appealing to the target demographics, but above all it
must be genuine. Artificial branding can dupe people into applying, but
when employees discover the culture is not as advertised they are quick
to move on to greener pastures, wasting the investment the agency made
to attract and hire that person, as well as incurring the cost of hiring a
replacement.

73
3) Use intern programs more strategically: in 2009, the partnership for
public service study, leaving talent from the table, revealed that less than
10 percent of federal interns were being converted into permanent hire. In
stark contrast, the average conversion rate of interns in private industry is
between 55-60percent. In public accounting, it’s around 90 percent!
According to the partnership, federal agencies are reluctant to offer
permanent (full - time) jobs, but agencies need to work harder to
complete with the private sector.
4) Concentrate on academic intuitions: in some government agencies
there is a misconception that recruiting at specific universities may
conflict with merit principles that require vacancies to be open to all
qualified candidates. While we are not advocating excluding any
applicants, we are suggesting that there are certain programs or majors
that can naturally serve as feeders for certain agencies. For an agency to
truly penetrate a university to source talent, it must take a concentrated
effort to partner with relevant academic departments, faculty members,
student organizations and clubs, just as the private sector does.
5) From campus teams composed of alumni and non-HR employees at
key universities: undoubtedly, a significant difference between private
industry and governmental recruitment activities is the deployment of
campus teams to help identify talent. In the private sector teams
comprised of two of non-Hr staff attend event. Offer educational training,
participate on panels and engage in a wide range of other campus
activities that are essential to identify and attract talent. Government
agencies often rely solely on HR staff to recruit on campus, with little
apart from employees in the positions into which most students would be
hired.
6) Use former interns as ambassadors and talent scouts: some of the best
managed intern programs in the private sector employ their former interns in
a forms capacity as ambassadors to convince their fellow classmates of the
benefits of their companies. These former interns also serve as talent scouts,
identifying and engaging top students who should be considered or are
attracted to the company, government organizations should use their interns
in a similar fashion as an inexpensive but effective way to source and attract
the best graduates for permanent positions.
7) Deploy senior executives early in the recruiting process: campus
presentations are a great way to generate substantial and genuine interest

74
 among students who are prospective job candidates. However, public
sectors are often delivered by senior executives. This is a significant
differentiator because students want to learn about positions they can
aspire to attain. A senior executive can provide first-hand knowledge
about how to move up in an organization, while a lower-level recruiter
tends to lack this perspective and experience.

8) Constantly assess and improve marketing and branding materials:

quite often, federal agency recruiting materials and social media
platforms are outdated or are not appealing to millennial. At a recent
campus presentation by a federal agency at major university. It was
obvious that a standard slide deck presented to MBA students was
generic presentation the agency used not only for undergraduate ws not
customized for the audience or educational level of attendees, it fell flat
and was ineffective. The private sector devotes resources to vetting
marketing presentations, documents, job prescriptions and job
advertisements with an eye toward understanding and attracting relevant
talent. Employer branding is increasingly important and organizations can
no longer afford to use one-size-fits-all messaging. By survey on
employment preference data and experience with focus groups and
student panels prove that different major, genders, ethnicities and age
groups are attracted to very different aspects of employers. The
organizations that understand and focus on these menaces will most
effectively engage the widest variety of talent.
9) Accelerate the hiring process: most companies with robust campus
recruiting programs make offers to graduating students in November and
December, up to six months before the students graduate. These firms
expect decisions to be made on those offers by the end of January, if not
sooner. Federal hiring programs, however, can have deadlines for resume
submission as late as April, with interviews occurring in April, May and
June, before offers are extended in July. That’s at least six weeks after
graduation! As a result, these government agencies miss the best
graduates who have already received or accepted other offers. In fact,
some government hiring programs actually hurt a business school’s
reputation because schools usually report job acceptance statistics to the
press by the time student’s graduate.

75
 10) Always look to learn : continuously improve recruiting processes. This
means assessing the performance of staff involved in the recruiting
processes, the benefits of intern programs, and other elements of the
attraction and hiring continuum. The students themselves have the most
accurate view of with fresh eyes, first-hand, and in full. So hiring
organizations should ask probing questions of those who were offered
positions- both those who accepted and declined. Then engage other stake
holders: hiring managers, interviewers, intern supervisor’s faculty, and
career services professionals at universities. Analyse what worked well,
what did not, where there are significant challenges and where the best
opportunities are. Then act on these learning.
11) Treat university recruiting like a business unit: many public sector
agencies do not track or analyse key recruiting metric. Standard hiring
measurements like recruiting yield(the number of candidates who need to
go through each step to produce or hire): hiring cost; return on investment;
and hires from career fairs, universities and diversity events; are just a few
of the metrics that the most successful companies track. These metrics
help employers improve their programs, enhance their presence at target
schools and conferences, and ensure the best use of human and financial
capital. In addition, senior executives should be holding the university
relations function accountable for demonstrating annually how it has
recruited effectively and cost efficiently.

Government agencies are attractive employers for the millennial generation.

Some federal agencies hold great appeal as employers to a large pool of
students across the country. If the public sector can borrow some of the practical
recruiting solutions from the private sector’s playbook, government agencies
will not only recruit more cost effectively in the long run, they will also
improve the quality of new hires more cost effectively in the long run, they will
also improve the quality of new hires who provide public services to our
nation’s citizens.

SWOT Analysis
Strength 1. Conferred with Navratna status in India, making it a
stronger 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 2mm tons of steel by rail is the best for

76
 any year since inception.
5. The first Indian steel company to adopt energy
management standard for systematic improvement in
energy efficiency.
6. High commitment to achieve capacity levels .
7. Economics of sales.
8. High expansion potential.

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

efficiency.
2. High interest and finance charges are 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.

Competition
Competitors 1. JSPL
2. TATA steel
3. ISPAT

77
FUTURE PROSPECTS:

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

• Establish different plans like excel wheel and government has sanctioned
a manpower of 8% of the existing workforce in the achieving the
integrated plans.

Conclusion:

Aristotle told us that “the whole is more than the sum of its pairs”,
this is certainly true when it comes to having all managers fully understanding
the organizations documented business plan and ensuring the alignment of
effective human professionals without good human resources. And the first
stage for the formation of effective human resource is possible by recruitment
and in VSP the scope for new entrees is high as per the analysis made. Future
prospects of VSP strives at its best in adopting new styles of recruitment
diversifying from the traditional practices, and the career planning of its
employees was so well managed, that all categories of employees were given
equal importance. From the above analysis the need of manpower is estimated
and suggestions for new practices resulting effective work force is given.
Implementation of these practices in this advanced world leverages the public
sector to with stand the competency and bring effective advancements.

78
Bibliography

Information given by the manager of personnel department.

General articles and magazines of Rashtriya Ispat Nigam Limited.
Websites: www.vizagsteel.com, www.businessdictionary.com,
http://placement.freshersworld.com/placement-paper/vizag-steel-
plant-RINL/Selection-Procedure-syllabus-41840.
text books: Human Resource Management, V.S.P.Rao,3rd e.
text book : Human Resource Management , Gary Dessler, Biju
Varkkey, 12e, pearson publishers
text book Research Methodology, C.B.Kothari, 2e, HPH Publisher

79
 Appendix - A

Questionnaire for Empirical Study

Questionnaire for employees working at top management/ middle management

Name of the Organisation:

Organization Structure/ Basic organisational form

1. Can you characterize your organizational structure?

a) Functional c) Matrix

b) Divisional d) Any other

2. In what way are individual positions, units and so on clustered within your
organization unit?

a) By Function d) By service

b) By target group e) By place

c) By product f) By project

3. How many people are employed in your company?

4. How many levels of hierarchy are there in your organization?

a) Many (Hierarchical) b) Few (Flat)

5. How does the communication work in this hierarchy?

a) Formal b) Informal

6. Does your company use any of the following ways of organizing work?

(1 = 25%, 2 = 25 -50%, 3 = above 50%, 4 = don’t know, 5 = Please to introduce)

a) Quality circles / groups e) Integration of functions

b) Delegation of responsibility f) Specialization
c) Planned job rotation g) Incentives based upon quality of
results

d) As per resource availability

80
Job Knowledge

7. What level of job knowledge do your employees have?

a) Outstanding c) Average

b) Above average d) Below average

Content of the Job / Tasks

8. Is the content of job changed for the employees during last two years?

a) Work autonomy d) Multi-tasking

b) Specialization e) Weight upon technical qualifications

c) Co –operation with management

Interchangeability
9. Employee transferability to other role / job –

a) No interchangeability

b) Low high

c) Complete interchangeability

10. Do employees easily shift in practice from one role to another?

a) Never

b) Not Very often

c) Often

Decision- making / Empowerment

11. How does the decision-making within unit/department take place?

a) Centralized b) Empowerment

81
 12. Decision making in your organization –

a) Decision making at individual level (Exclusive)

b) Participative decision making (Participation)

Flexibility

13. Attitude of your employees to new concepts and changes is -

a) Constantly drive for change

b) Resistance towards change
c) Can’t say

14. What is the mindset of employees to acquire additional skills/ Competence as a

consequence of organizational change?

a) Very Small
b) Moderate
c) Don’t know

Vision, Mission and Organizational Contribution to it –

15. Does the top management share vision of your company with everyone within
your unit?

a) Always

b) On new basis

c) Never

16. Is the Mission derived by everyone within your unit?

a) Always

b) Sometime

c) Never

82
17. Are there different images / ideas about the mission or the image of the
organization within your unit?

a) Heterogeneous

b) Homogenous

c) Leadership Profile

18. Do you supervise people in the department / unit?

a) Yes b) No

19. How great importance do your company assign to the following

performance parameters of an employee –

(1 = Great 2 = Very much 3 = Less important 4 = can’t say)

a) Quality of work e) Ability to make decisions

b) Quantity of work f) Ability to solve problems

c) Timeliness in completing the work g) Creativity

d) Knowledge of the job h) Focus on

organisational
objectives

20. What do you think Organisational productivity depends on

employee performance?

a) Up to great extent c) Not at all

b) Up to some extent

83