Presented to

Presented by-
Dr. D.S.YADAV SIR.
NUPUR AGRAWAL
History of the Durga Steel Limited
Set up by the public sector in the late 1950s.
Report to Hindustan Steel ,merged with the
holding company SAIL in 1972.
The salaries of the managerial staff were in line
with those of other public sector organizations
but were lower than those in the private sector.
Personnel-29,224 employees: 26,724 workers and
2500 executives.
Location of DSP
In the state of West Bengal ,which is less developed.
(158 Km from Calcutta)

DSP set up residential colonies to the plant for its

employees of all levels.

Reasons for the less development of the industry in

West Bengal are-
 the militancy of unions.
 Inadequate development of infrastructure.
Strained Industrial relations
DSP had three unions.

Majority membership was with the union affiliated

with the CPM.

Managers at all levels were afraid of the unions.

Inter-union rivalry for the dominance among the

unions .
The Managerial Climate
The supervisory and the managerial personnel were
demoralized.

Unable to exercise authority.

Felt helpless in their position and the pressure from

top management for more production.
Financial problems
Production started drooping.
Year Crude Steel Saleable steel Hot steel Pig steel
1964-65 1006 721 1313 386
1992-93 676 641 725 17

Under utilization of the capacity of the plant.

Profits were decreasing.
High production cost.
High manning ratios relative to its output.
Other problems
Poor product quality.

High level of pollution.

High energy consumption.

Recommendations for these
problems
 Modernization of the plant.

To change the attitudes of the employees at all levels

and in management practices.
Implementation of the technological change

Cover three aspects-

 Adding capacity;

 Replacing some machinery , plants and

equipments;

 Introducing and replacing old technology

with new technology.

Relations with the unions
Formation of the forum of unions.-

The management had to work towards becoming

transparent.

Formulation of joint committees to determine the

manpower required for each department, training,
combining of certain operations.

Agreement between DSP and unions on wages and

service conditions and VRS of surplus employees.
Employee Workshops
Aimed to identify the work practices that hindered
performance .
Identification of work practices that needed to be
changed.
For all levels of employees.
Priorities for action.
ADVANTAGES-
Creation of a sense of ownership of ideas among
employees at all levels.
Managers should manage
To be sympathetic but firm.

The Human Aspect.

Face to face interaction between supervisors and

employees.

Sharing data about production, quality, demand ,future

plans, will make employees feel like they are a part of the
organization.
Conclusion
Vast change in the relations with the trade unions.
The operating management had more confidence in
handling production problems than before.
Improvement in work culture.
The unions had divided to cooperate.
Generation of a sense of confidence about the future
among the managers and the employees.
The training programmes were uniformly appreciated
by all employees.
Results of the technological changes
Employment issues.(positive effect as it was long
term)

Changes in occupational profiles.

Education and Training.

New Working Arrangements and Managerial

Attitudes.

Industrial relations.
Trade union response
Fear of unemployment.

Problems of retraining.

Change in the work culture.

Ways to reduce resistance to change
Appropriate training.

Negotiated change.

Supportive management practices.

Benefits from technological changes in
DSP
Higher level of production

Improvement in the profitability.

Conservation of the energy.

Improvement in the quality of the finished products.

Reduction in the environmental pollution.

“A Short Course in Human Relations
The 6 most important words: I admit I was
wrong.
The 5 most important words: You did a great job.
The 4 most important words: What do you think?
The 3 most important words: Could you please.
The 2 most important words: Thank you!
The most important word: We.
The least important word: I."
Thanks…………….