A Project On

“Comparative Analysis of the Human Resource Policies of the Public and Private Ltd. Companies.”

Submitted to partially fulfillment of Management in Business Finance(MBF) ( 2008-10)

Submitted to Submitted by

Mr. Aman Agarwal Deepak Oberoi

Director, Nikesh Ronta

IIF Nagendra Singh

INDEX

INTRODUCTION

“VIZAG STEEL”

Vision , Mission , Objective

Polices and rule of RINL

Customer Policy

Quality Environment and Occupational Health & Safety Policy

Facilities and Resources

“ESSAR STEEL”

Vision, Mission and Policies

Human Resource Polices of the Company

Key focus areas

Management trainee programmes

Training and Development

CONCLUSION

VIZAG STEEL

The Visakhapatnam Steel Plant was designed way back in late 1960s but by the time its chief Consultants - MN Dastur & Company's - report and revised reports were accepted in 1984 to start construction, it had become the most expensive steel plant ever to be constructed, deisigned to produce about 3 million tonnes (Mt) of processed steel per year.

Its efficiency model was designed after the Pohang Steel Plant in Korea. The Visakhapatnam Steel Plant is the first ever shore-based steel plant in India, and outside the traditional coal belts of Dhanbad–Jamshedpur areas.Vizag Steel, also known as Visakhapatnam Steel Plant steel company based in the outskirts of Visakhapatnam, India. Its main plant is located 26 kilometers from Visakhapatnam, Andhra Pradesh, it is among India's premier steel mills. It has also been conferred the Mini Ratna status. Its vision - Infrastructuring India.

Vizag Steel bagged the first prize in Energy Conservation constituted by Ministry Of Power, Government Of India, consecutively for the last two years primarily due to its focus on energy conservation, cost reduction and waste utilization. Vizag Steel Plant today is among the lowest cost steel producers in the world. The Visakhapatnam Steel Plant has been awarded the Safety Innovation Award - 2006 by the Institution Of Engineers for its "outstanding contributions in the field and adoption of the best and the most innovative safety practices". The plant was awarded the Prime Minister's trophy for the best steel plant in the country, for the year 2002-2003.

VSP added another feather to its cap by bagging six Government of India, Vishwakarma Rashtriya Puraskar (VRP) Awards at national level out of total number of 28 awards announced by Ministry Of Labour, Government of India

VISION, MISSION & OBJECTIVES OF Rashtriya Ispat Nigam Limited.

VISION:

To be a continuously growing world class company we shall

Harness our growth potential and sustain profitable growth.

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

Create an inspiring work environment to unleash the creative energy of people.

Achieve excellence in enterprise management.

Be respected corporate citizen, ensure clean and green environment and develop vibrant communities around us.

MISSION :

To attain 16 million ton liquid steel capacity through technological up-gradation, operational efficiency and expansion; to produce steel at international standards of cost and quality; and to meet the aspirations of the stakeholders.

OBJECTIVES :

Expand plant capacity to 6.3 Mt by 2008-09, with the mission to expand further in subsequent phases as per the Corporate plan.

Sustain gross margin to turnover ratio>25%

Be amongst top five lowest cost liquid steel producers in the world by 2009-10.

Achieve higher levels of customer satisfaction than competitors.

Instill right attitude amongst employees and facilitate them to excel in their professional, personal and social life.

Be recognized as an excellent business organization by 2008-09.

Be proactive in conserving environment, maintaining high levels of safety and addressing social concerns.

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:

Provide work environment that makes the employees committed and motivated for maximizing productivity

Establish systems for maintaining transparency, fairness and equality in dealing the employees

Empower employees for enhancing commitment, responsibility and accountability

Encourage teamwork, creativity, innovativeness and high achievement orientation

Provide growth and opportunities for developing skill and knowledge

Ensure functioning of effective communication channels with employees

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

Policies & Rules OF RINL/VSP

SUBJECT

I. Service Rules Service Rules for Executives

Conduct, Discipline & Appeal Rules

Leave Rules for Non-executive Employees

Recruitment Policy

Certified Standing Orders

II. Promotion Policy and Rules Promotion Policy and Rules for Executives

System of Probation and Confirmation of Executives

Policy for Promotion to Non-Unionised Supervisory Cadre & Executive Cadre

Policy & Rules for Promotion of Non-Executives

Procedure for Dealing with Promotion/Confirmation of Non-executives pending Enquiry/Disciplinary Proceedings and thereafter.

Performance Appraisal System for Executives

Annual Confidential Report for Non-Executives

III. Wage Structure Executive Salary Structure, Non-Executive Salary Structure & Stipend rates for Trainees

Annual Increment Rules

IV. Allowances Travelling Allowance Rules

City Compensatory Allowance

Reimbursement of Local Travelling Expenses

Grant of Conveyance Allowance to Blind and Orthopaedically Handicapped Employees

House Rent and House Rent Allowance

Night Shift Allowance

Split Duty Allowance

Entertainment Allowance

Magazine Allowance

V. Advances House Building Advance Rules ( including Scheme of Interest Subsidy on House Building Loans )

Grant of Advance for Purchase of Motor Vehicle

Grant of Advance for the Purchase of Bicycle

Grant of Advance for Medical Attendance & Treatment

Festival Advance

VI. Employees' Motivation & Welfare Scheme Incentive Scheme for acquiring Professional Qualifications

Jawaharlal Nehru Award Scheme for Executives

Jawaharlal Nehru Award Scheme for Non-Executives

Incentive Scheme for promoting Small Family Norms among Employees

Encashment of Leave

Medical Benefits

Grant of Assistance towards Funeral Expenses of Employees who die while in Service

Family Benefit Scheme

House Allotment Rules

Leave Travel Concession

Reimbursement of School Fees to Employees' Children

Grant of Scholarships to the children of Employees

Scheme for grant of Scholarships to the children of Employees belonging to Scheduled Castes and Scheduled Tribes

Scheme for grant of Scholarships to Physically Handicapped Children of Employees

VII. Retirement Benefits Provident Fund Rules

Procedure for final Settlement of Dues of Retiring Employees

RINL Superannuation Benefit Fund Scheme

Family benefit scheme

Scheme for farewell to retiring employee

VIII. Miscellaneous Rules Determination of Date of Birth

Change of Name

Appointment of Deputationists in the Company

Procedure for Leave Book and Leave Card System

Foreign Travel

Issue of Verification Certificate to Employees for obtaining Passport

Forwarding Applications of Employees for Outside Employment

Transfer Benefits to Executives joining VSP on appointment from Central Government / Public Sector Undertakings & vice - versa

Executive Grievance Redressal Procedure

Formal Grievance Procedure for Non - Executives Details on the above subjects can be obtained from Personnel Manual available for reference in the Central Library, Training & Development Centre, Visakhapatnam Steel Plant.

Customer Policy

VSP will endeavor to adopt a Customer-focused approach at all times with transparency

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 relationships with Customers and would make efforts at strengthening these relations for mutual benefit

Quality Environment

And

Occupational Health & Safety Policy

We, at Visakhapatnam Steel Plant, are committed to meet the needs and expectations of customers and other interested parties, and the occupational health and safety of our workforce and to preserve the environment. To accomplish this, we will:

Supply quality goods and services to customer’s delight. Document, implement, maintain & periodically review the management systems including the policy, objectives and targets.

Use resources efficiently; reduce wastage and prevent pollution.

Comply with all relevant legal, regulatory and other requirements applicable to our products, activities and processes in respect of quality, environment, occupational health & safety and also ensure the same by contractors.

Continually improve the quality, environment, occupational health and safety performance with respect to our products, activities, processes, premises and services.

Encourage development and involvement of employees.

Maintain high level of quality, environment, occupational health and safety consciousness amongst employees and contract workers by imparting education and training.

This policy is communicated to all the employees and contract workers and is made available to interested parties on request.

Management Team

(Promoter Directors)

Shri. Shashi Ruia (Chairman) Shri. Ravi Ruia (Vice Chairman)

Prashant Ruia (Director) Anshuman Ruia (Director)

Smiti Kanodia (Director) Rewant Ruia (Director)

Corporate FunctionsMr. S. V. Venkatesan(Resident Director – Chennai)

Mr. J. Mehra (Resident Director - New Delhi)

Mr. Jayesh Buch(Resident Director – Ahmedabad)

Mr. Madhu S. Vuppuluri (Resident Director - New York)

Mr. Suresh Sundaram(Director - Corporate Aviation)

Mr. Adil Malia(President - Human Resources)

Mr. Sunil Bajaj(President - Corporate Affairs)

Mr. Mukesh Bhavnani(President – Legal)

Mr. Vijay Mehra (Chief Information Officer)

Mr. Sharad Goel(Group Head - Media Relations)

Mr. N. S. Paramasivam(Group Head - Forex & Treasury)

Mr. Dinyar M. Jivaasha (Group Head - Corp. Risk & Ins. Mgmt.)

Recruitment :

S.No Recruitment Information

1) SC-ST certificate format

2) OBC certificate format

3) PWD certificate format

4) Format to be submitted by SC-ST candidates along with Caste Certificate

5) Format to be submitted by OBC candidates along with Caste Certificate

6) Interview for the post of Geologist

7) Interview schedule for MT(T) post

8) Written test and interview for the post of Assistant (Hindi)

Training and Development Centre

In house Training Centre of RINL at Visakhapatnam, besides conducting training programmes for employees, offers the Training. Facilities to other organizations.

GUIDELINES FOR VACATIONAL TRAINING AT VIZAG STEEL

Special Features of Development Programmes :

1) Involvement of top management through Apex level and training advisory committees.

2) Training need identification through annual surveys.

3) Annual training calender and nomination through specially designed on-line”Training Information System”. Training record of each employee is also available through this system to HODs.

4) Courses designed in consultations with line managers.

5) Three tier evaluation of training effectiveness.

6) Constant review and improvements based on feed back.

7) Focus on internal faculty development.

8) Unit Training (on- the-job Training.) system developed and implemented with the assistance of British Steel.

Organizations who utilized our services:

: Steel Authority of India ltd (DSP, RSP, BSP, BOPS).

: Bellary Steel and Alloys Ltd.

: Ispat Metallic’s India Ltd.

: Neelanchal Ispat Nigam Ltd.

: N T P C Ramagundam.

: Local organisations: BHPV, HPCL, DCIL, HZL, NMDC etc.

Facilities and Resources: Besides conventional wokshops special facilities are available such as :

1) Hydraulics section- equiped with PLC cotrolled Trg. kit, transparent models.

2) Valve and Pump section with cut sections of various types of pumps/valves used.

3) Material Handling Section.

4) Electronic Laboratory with PLC and microprocssor trg kits. IC trainers etc.

PC Laboratory.

5) Library with rich collection of 21000 books & 21000 Indian and International standards.

6) Over 100 journals received.

7) Well equiped class rooms and AC conference halls with modern AV aids.

8) Air Conditioned Auditorium.

9) Excellent on-the-job Trg facilities.

10) Well qualified and trained faculty.

11) Hostel Facilities for train

ESSAR GROUP

History

The Essar Group was founded in 1969 by brothers Shri Shashi Ruia and Shri Ravi Ruia.

The Essar Group began its operations with the construction of an outer breakwater in Chennai port. It quickly moved to capitalise on every emerging business opportunity, becoming India’s first private company to buy a tanker in 1976.

In the 1990s, Essar began its steelmaking business by setting up India’s first sponge iron plant in Hazira, a coastal town in the western Indian state of Gujarat. The Group went on to build a pellet plant in Visakhapatnam and eventually a fully integrated steel plant in Hazira.

The Construction business helped the Group build most of its business assets. Essar also entered the GSM telephony business, establishing India’s first mobile phone service in Delhi (branded Essar Cell phone) with Swiss PTT as the joint venture partner.

ESSAR STEEL COMPANY Essar Global Limited is a diversified business corporation with a balanced portfolio of assets in the manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics, and Construction. Essar Global employs over 40,000 people across offices in Asia, Africa, Europe and the Americas. With a firm foothold in India, Essar Global has been focusing on global expansion with projects/investments in Canada, USA, Africa, the Middle East, the Caribbean and South East Asia. Privately owned and professionally managed, Essar is judiciously invested in the commodity, annuity and services businesses.

Forward and backward integration, state-of-the-art technologies, in-house research and innovation have made Essar Global a leading player in each of its businesses. Essar’s abiding philosophy is to be a low cost, high quality, technology driven group with innovative customer offerings.

Salient Features of the company Essar Steel is India's largest exporter of flat steel products Essar Steel is the largest steel manufacturer on the West Coast of India Essar Steel has the first Indian steel plant to receive ISO 14001 award for

environment management and ISO 9002 for the entire plant operations

Vision and Mission of the company.

Vision We will be a respected global entrepreneur, through the power of Positive Action.

Mission We are committed to innovative growth, through our personal passion, reinforced by a professional mindset, creating value for all those we touch.

Beyond business Essar’s Policy

The Essar Group is both a people-driven and people-centric organization. It understands the value that people deliver in the making of a great company. The Group’s spirited involvement in community service is inspired by these beliefs. The Group’s ethos on social responsibility focuses on not just taking care of its own employees but enabling and enriching the communities around the areas where its plants are located. In addition, the Group has been at the forefront in rendering aid and assistance by way of donations as well as relief supplies in times of national calamities, such as the Tsunami, earthquakes and floods.

Human Resource Polices of the CompanyAt the Essar Group, we believe that excellent individuals build excellent companies. And by transforming each employee into a highly motivated, satisfied and productive team member, we will create an outstanding organization. We also understand that each individual has unique talents and expectations from the organization. Based on those principles, human resources development at Essar is customised, flexible and well planned. Every Essar employee is meticulously selected and given the freedom to be innovative, within a work culture that is non-bureaucratic and result-oriented. We work with employees to develop personalized and flexible individual plans for career growth, retention and compensation within a carefully structured work framework. Through extensive career mapping, we offer a choice of career paths that could include job rotations across functions and Group Companies. Essar's wide range of businesses and exciting pace of growth presents a range of opportunities and exposure that only a few others can match. The Group has a very serious commitment to continuous training and development. Our Essar Learning Centre provides year-round training. Thus, a career with Essar will offer you a unique opportunity to unlock your own potential and realize excellence.

Employees Motivation

The underlying objectives of Essar’s activities is to motivate employees to participate in and contribute to the activities initiated by the Community Relations Centre, to create self-help groups for village women, to further overall development of children and women, and to spread awareness about AIDS and de-addiction.

Essar’s key focus areas Essar has outlined seven focus areas where employee involvement can make a difference to the lives of the community:

Education Self-employment Training Infrastructure development Medical Health & hygiene Recreation and welfare

Essar’s policy for the People who related with the company

People, our most valuable assets At Essar, we understand that excellent people deserve excellent people practices. That's why we design our human resource initiatives such that they unlock the full potential of every employee.

Recruitments

We welcome talented college graduates. We are a preferred employer at India's top engineering and business schools because we offer competitive compensation, diverse opportunities in terms of business and roles, fast growth and quick assumption of large responsibilities. For the same reasons, we are able to attract the best and the brightest talent at all levels.

Campus ProgramsThe Essar group has a strong emphasis on hiring at the entry level, to create a pool of talented employees who are developed and groomed to grow with the group. At the entry level, the group hires mainly through two types of programmes:

Management trainee programmes Graduate trainee programmes Business leadership programmes

Management trainee programmesThrough the management trainee programmes, Essar hires post graduate management students from top ranking business schools throughout India. Trainees are initially hired as a group resource for a range of functions such as marketing, finance, human resources and operations. Essar makes selections between December and February, through a rigorous selection process. Selected candidates then go through a comprehensive one-month induction programme, which includes classroom sessions, an introduction to all the group companies, plants and corporate functions, and a six-day executive leadership camp at the Essar Learning Centre. Soon after the induction, in an interview with corporate human resources each trainee has the opportunity to discuss mutual

expectations, a career map and the group company and assignment that he or she will be posted to. Trainees are confirmed after completing the one-year management trainee programmes. Depending on their capabilities, management trainees can usually look forward to a faster career track, an expanded role and eventually, a leadership position within the organization.

Graduate trainee programmesThe Essar group prides itself on using global-scale, world-class technology in all its companies. To maintain our technical edge, the group hires engineer trainees annually between August and January. Essar hires graduate engineer trainees (GETs) from the IITs and the top-ranking regional engineering colleges across the country and diploma engineer trainees (DETs) from the best polytechnics in Gujarat, Andhra Pradesh and Tamil Nadu and other regions of the countries to source the best talent available. These trainees are hired for specific group companies. After they are selected, they go through an induction programmes at the company, which includes classroom sessions and plant visits. Soon afterwards, each trainee has an interview with the Essar Learning Centre head, to discuss his or her immediate placement and future growth prospects. Trainees are confirmed after a one-year training programmes for GETs and a two-year programmes for DETs. Depending on their capabilities, both GETs and DETs can look forward to increasing their technological expertise, a growing technical specialization and key senior operational and technical roles within the company.

Building careers

Essar has a high emphasis on performance, and we link both career growth and rewards directly to merit and achievement. We customize career paths and retention plans according to the unique needs of an individual. Right from the entry level, we draw career maps for each employee, outlining possible alternate career paths, which could include planned job rotations between functions or even group companies.

Solid performances, solid rewards Employees with a proven track record of high performance and potential are identified annually through a fast-track programmed evaluated by a top management panel. These achievers are rewarded with top-of-the-market compensation, retention bonuses and relevant training inputs.

Training and DevelopmentEssar has a very serious commitment to continuous training and development. Our world-class Essar Learning Centre provides year-round training. We provide numerous resources for self-assessment and development. Thus, a career with the Essar group offers a unique opportunity to unlock your own potential and realize excellence.

Continuous opportunities for development and growth - that’s the firm commitment that Essar makes to every single employee. The Essar group is one of India’s largest spenders on continuous training, investing about Rs. 1.4 crore (US$ 3 m) annually. Essar Learning Centre (ELC) at Hazira, Gujarat has emerged as one of India’s foremost training facilities, training 2,000-odd people a year through 7,000 man days of training.

Being a dedicated facility, the ELC allows us to design tailor-made and flexible programmes, so that training at Essar is always relevant and customized both to business needs and the needs of the individual. Our programmes cover a wide range of technical, functional and behavioral training, from materials management to e-commerce procurement to transformational leadership and communication and negotiation skills. Our faculty includes the best of experts and practicing managers. Since we believe in imparting managerial & behavioral training, we also include a number of non-business modules like corporate etiquette or parenting skills. The ELC also has extensive resources for self-development such as a business library of books and audiovisual material. Thus, we support and encourage all Essar employees to develop themselves to the fullest.

Executives Leadership Camp (ELC)The Executive Leadership Camp (ELC) is a six-day residential programmes held at the Essar Learning Centre at Hazira, Gujarat. This comprehensive programmes transforms junior management employees into effective business executives.

Features of the camp Participants in this holistic programme begin their day with yoga. Throughout the camp, they learn more about Essar's key values and culture through modules like quality & customer orientation, Essar leadership values, organizational & behavioral etiquette, a value meet and a plant visit. They learn how to become part of the organization team through modules like self-awareness and interpersonal relationship, conflict management, group dynamics and team building, leadership & leadership styles & followership. The programme also builds their personal management skills by teaching useful skills like assertive skills, time management and presentation skills. A fun outbound module allows them to reinforce and use skills like teamwork or strategic thinking through

specially designed outdoor games and activities such as a treasure hunt or rappelling.

Management Development Programme (MDP)The Management Development Programme (MDP) is a six-day residential programmes that aims to prepare middle management executives for newer roles in a changing environment. The MDP helps make middle managers active and effective participants in organizational processes like planning, implementation and decision-making.

Features of the CampAfter beginning their day with yoga, participants learn how to contribute to organizational growth and excellence through modules like Essar leadership values, quality (kaizen), customer satisfaction, striving for excellence, cost reduction and continuous improvement. They learn how to be effective managers with modules like the role of a manger in the present scenario, performance management, goal setting, team building, people development, conflict management and counseling skills. The programmes enhances their personal management skills by teaching segments like self-awareness, leadership, assertive skills, motivation, integrity/personal values, negotiation skills and corporate etiquette. A fun two-day outbound module allows them to reinforce and use skills like teamwork or strategic thinking through specially designed outdoor games and activities such as a treasure hunt or rappelling.

CONCLUSION:As shown above the human resource policies of both the company’s analysis we found that as a public ltd company Vizag Steel Ltd gives more emphasize on betterment and welfare of their employees as well as their surroundings as a public ltd. Co. they are more concerned to welfare of the people instead of earning profit.

As above shown that the Co. is giving benefits to present employees as well as retired employees so this kind of facilities attract more people to join the organization and also the company helps in social areas also the company is capable enough to provide in house training by doing such type of activities a company shows a self reliance to develop skills of their employees.

Comparatively Essar steel is a private ownership organization and also concerned with more than one type of industry but this will not affect their decision making on their employees because an employee is a valuable asset to the company so as this group thought. Like other companies they have their own facilities to train people also this kind of organizations provide extensive atmosphere to their employees according to the different environment because this organization has corporate offices in other countries so this kind of atmosphere help an employee to develop on both the fronts(mental & physical).

Essar steel shows their responsibilities time and again by helping our countryman in calamities although it is a private organization but they are responsible to their society and it gives a good signal to the society and gives us insight to be a responsible person for the organization as well as our country.

So for the conclusion we can say that both the companies are good at their respective fields but at the same time they wouldn’t neglecting their responsibilities to the people who work for them. And it is a good sign for those companies who follow their footsteps and also these kind of habits helps to make a beautiful future.

“AN HR POLICY CONCEREND WITH PEOPLE IN BOTH WAYS”.

INTRODUCTION This is a project in which we have shown analysis of two companies on ground of their HR policies in this project we have shown that two companies in the same kind of business same type of industry what are the differences of their policies regarding with the employees and the people who related with them in some or the other way so in our project we simply shown the Human Resource approach of both the companies and also how these companies differ from each other but when it comes to their employees turn how they do the job to help their employees .

In this project we have shown that the public company do more helpful in terms of employees satisfaction because they directly affected with the government policies and at the other hand the private company who is responsible to their own decisions they also give facilities and help their employees in same or the other manner to betterment of their employees as well as customers and albeit a private company the are responsible to the people of our country yes will help them in future for building their good image in the society apart from this they work sincerely for the people concerned with them.

So the project is all about the human resource policies of the two companies a public company (VIZAG STEEL) and a private company (ESSAR STEEL).

Acknowledgement

It was a great pleasure and honor for us to undertake this project. This project has been a consolidated effort of all those who directly or indirectly helped us in completion of this and guided us at various stages of this project. We would like to thank all of them for their help and support.

We are indebted to Prof. Aman Agarwal who has given knowledge and guidance regarding this project, he was always available to answer our queries, was eager to help whole heartedly anytime.

We also like to pay sincere gratitude towards Professor J.D. Agarwal (Chairman, IIF, and New Delhi) for providing the services available.