Employee Motivation on tata steels

8/10/2019 Employee Motivation on tata steels

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Chapter 1

Introduction

1.1 Introduction

The word motivation has been derived from motive which means any idea, need

or emotion that prompts a man in to action. Whatever may be the behaviour of

man, there is some stimulus behind it .Stimulus is dependent upon the motive of

the person concerned. Motive can be known by studying his needs and desires.

There is no universal theory that can explain the factors influencing motives

which control mans behaviour at any particular point of time. In general, the

different motives operate at different times among different people and

influence their behaviours. The process of motivation studies the motives of

individuals which cause different type of behaviour.

Definition of Motivation

According to Edwin B Flippo, Motivation is the process of attempting to

influence others to do their work through the possibility of gain or reward.

Significance of Motivation

Motivation involves getting the members of the group to pull weight effectively,

to give their loyalty to the group, to carry out properly the purpose of the

organization. The following results may be expected if the employees are

properly motivated.


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1.

The workforce will be better satisfied if the management provides them

with opportunities to fulfil their physiological and psychological needs.

The workers will cooperate voluntarily with the management and willcontribute their maximum towards the goals of the enterprise.

2. Workers will tend to be as efficient as possible by improving upon their

skills and knowledge so that they are able to contribute to the progress of

the organization. This will also result in increased productivity.

3. The rates of labours turnover and absenteeism among the workers will

be low.

4. There will be good human relations in the organization as friction among

the workers themselves and between the workers and the management

will decrease.

5. The number of complaints and grievances will come down. Accident will

also be low.

6. There will be increase in the quantity and quality of products. Wastage

and scrap will be less. Better quality of products will also increase the

public image of the business.

Theories of Motivation.

Understanding what motivated employees and how they were motivated was

the focus ofmany researchers following the publication of the Hawthorne study

results (Terpstra, 1979).Twelve major approaches that have led to our


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understanding of motivation are McClellandsAchievement Need Theory,

Behaviour Modification theory; Abraham H Mallows needhierarchy or

Deficient theory of motivation. J.S. Adams Equity Theory, VroomsExpectation Theory, HerzbergsTwo factor Theory, Psychological theory,

Drive-reduction theory, Alderfers ERG theory, Self-determine theory,

Temporal motivational theory, Goal-setting theory.

1. McClellands Achievement Need Theory.

According to McClellands there are three types of needs;

Need for Achievement (n Ach);

This need is the strongest and lasting motivating factor. Particularly in case of

persons who satisfy the other needs. They are constantly pre occupied with a

desire for improvement and lack for situation in which successful outcomes are

directly correlated with their efforts. They set more difficult but achievable

goals for themselves because success with easily achievable goals hardly

provides a sense of achievement.

Need for Power (n Pow)

It is the desire to control the behaviour of the other people and to manipulate

the surroundings. Power motivations positive applications results in domestic

leadership style, while it negative application tends autocratic style.

Need for affiliation (n Aff)

It is the related to social needs and creates friendship. This results in formation

of informal groups or social circle.


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2. Behavioural Modification Theory

According to this theory people behaviour is the outcome of favourable and

unfavourable pastcircumstances. This theory is based on learning theory.Skinner conducted his researchesamong rats and school children. He found that

stimulus for desirable behaviour could bestlengthened by rewarding it at the

earliest. In the industrial situation, this relevance of thistheory may be found in

the installation of financial and non-financial incentives.

More immediate is the reward and stimulation or it motivates it. Withdrawal ofrewardIncase of low standard work may also produce the desired result.

However, researches showthat it is generally more effective to reward desired

behaviour than to punish undesiredbehaviour.

3. Abraham H Maslow Need Hierarchy or Deficient theory of

Motivation.

The intellectual basis for most of motivation thinking has been provided by

behaviouralscientists, A.H Maslow and Frederick Herzberg, whose published

works are the Bible of Motivation. Although Maslow himself did not apply

his theory to industrial situation, it haswide impact for beyond academic

circles. Douglous Mac Gregor has used Maslows theoryto interpret specific

problems in personnel administration and industrial relations.

The crux of Maslows theory is that human needs are arranged in hierarchy

composed office categories. The lowest level needs are physiological and the

highest levels are the self-actualization needs. Maslow starts with the formation

that man is a wanting animal with ahierarchy of needs of which some are lower

ins scale and some are in a higher scale orsystem of values. As the lower needs


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are satisfied, higher needs emerge. Higher needscannot be satisfied unless

lower needs are fulfilled. A satisfied need is not a motivator. Thisresembles the

standard economic theory of diminishing returns. The hierarchy of needsatwork in the individual is today a routine tool of personnel trade and when

these needs areactive, they act as powerful conditioners of behaviour- as

Motivators. Hierarchy of needs; the main needs of men are five. They are

physiological

Hierarchy of needs; the main needs of men are five. They are physiologicalneeds, safety needs, social needs, ego needs and self-actualization needs, as

shown in order of their importance.

The above five basic needs are regarded as striving needs which make a person

do things. The first model indicates the ranking of different needs. The second

is more helpful in indicating how the satisfaction of the higher needs is based

Self-

Actalisation

Ego Needs

Social needs

Safety needs

Physiological Needs


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on the satisfaction of lower needs. It also shows how the number of person who

has experienced the fulfilment of the higher needs gradually tapers off.

i.

Physiological or Body Needs: - The individual move up the ladder

responding first to thephysiological needs for nourishment, clothing and

shelter. These physical needs must bequeathed with pay rate, pay

practices and to an extent with physical condition of the job.

ii.

Safety: - The next in order of needs is safety needs, the need to be freefrom danger, eitherfrom other people or from environment. The

individual want to assured, once his bodily needs are satisfied, that they

are secure and will continue to be satisfied for foreseeablefeature. The

safety needs may take the form of job security, security against disease,

misfortune, old age etc., as also against industrial injury. Such needs are

generally met bysafety laws, measure of social security, protective

labour laws and collective agreements.

iii.

Social needs: - Going up the scale of needs the individual feels the desire

to work in acohesive group and develop a sense of belonging and

identification with a group. He feelsthe need to love and be loved and the

need to belong and be identified with a group. In alarge organization it is

not easy to build up social relations. However close relationship canbe

built up with at least some fellow workers. Every employee wants to feel

that he iswanted or accepted and that he is not an alien facing a hostile

group.

iv.

Ego or Esteem Needs: - These needs are reflected in our desire for status

and recognition,respect and prestige in the work group or work place


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such as is conferred by the recognitionof ones merit by promotion, by

participation in management and by fulfilment of workers urge for self-

expression. Some of the needs relate to ones esteeme.g.; need forachievement, self-confidence, knowledge, competence etc. On the job,

thismeans praise for a job but more important it means a feeling by

employee that at all times hehas the respect of his supervisor as a person

and as a contributor to the organizational goals.

v.

Self-realization or Actualization needs: - This upper level need is onewhich whensatisfied provide insights to support future research

regarding strategic guidance fororganization that are both providing and

using reward/recognition programs makes theemployee give up the

dependence on others or on the environment. He becomes growth

oriented, self-oriented, directed, detached and creative. This need reflects

a state defined interms of the extent to which an individual attains his

personnel goal. This is the need whichtotally lies within oneself and

there is no demand from any external situation or person.

4. Alderfer's ERG theory

Alderfer, expanding on Maslow's hierarchy of needs, created theERG theory.

This theory posits that there are three groups of core needsexistence,

relatedness, and growth, hence the label: ERG theory. The existence group is

concerned with providing our basic material existence requirements. They

include the items that Maslow considered to be physiological and safety needs.

The second group of needs are those of relatedness- the desire we have for

maintaining important personal relationships. These social and status desires

require interaction with others if they are to be satisfied, and they align with

Maslow's social need and the external component of Maslow's esteem


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classification. Finally, Alderfer isolates growth needs as an intrinsic desire for

personal development. These include the intrinsic component from Maslow's

esteem category and the characteristics included under self-actualization.

5. Self-determination theory

Edward L. Deci and Richard M. Ryan, during the early nineties, proposed the

theory of self-determination; focusing on the degree to which an individuals

behaviour is self-motivated and self-determined. According to Deci and Ryan,

the three psychological needs motivate the self to initiate specific behaviour

and mental nutriments that are essential for psychological health and well-

being for an individual. These needs are said to be universal, innate and

psychological and include the need for competence, autonomy, and

psychological relatedness. When these needs are satisfied, there are positive

consequence (e.g. well-being and growth), we're motivated, productive and

happy. When theyre thwarted, our motivation, productivity and happiness

plummet. Deci and Vansteenkiste claim that there are three essential elements

to the theory: 1. Humans are inherently proactive with their potential and

mastering their inner forces (such as drive and emotions). 2. Humans have an

inherent tendency towards growth, development and integrated functioning. 3.

Optimal development and actions are inherent in humans but they dont happen

automatically. Whether this aspect of our humanity emerges in our livesdepends on whether the conditions around us support it. The main mechanisms

of Motivation 2.0 are more stifling than supportive. Of course these are

necessary, as stated earlier, but the less salient they are made, the better.

Instead, we should focus our efforts on creating environments (at our

workplace, schools, home) for our innate psychological needs to flourish. Other

researchers also reach the same conclusion, i.e. human beings have an innate


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drive to be autonomous, self-determined yet connected to one another. When

these conditions are met, internal drive is liberated and people achieve more

and live richer lives.

6. Temporal motivation theory

The latest approach in developing a broad, integrative theory of motivation

isTemporal Motivation Theory.Introduced in a 2006Academy of Management

eviewarticle, it synthesizes into a single formulation the primary aspects of

several other major motivational theories, including Incentive Theory, Drive

Theory, Need Theory, Self-Efficacy and Goal Setting. It simplifies the field of

motivation and allows findings from one theory to be translated into terms of

another. Another journal article that helped to develop theTemporal

Motivation Theory,"The Nature of Procrastination" received American

Psychological Association'sGeorge A. Miller award for outstanding

contribution to general science.

7. Goal-setting theory

Goal-setting theory is based on the notion that individuals sometimes have a

drive to reach a clearly defined end state. Often, this end state is a reward in

itself. A goal's efficiency is affected by three features: proximity, difficulty andspecificity. Good goal setting incorporates theSMART criteria,in which goals

are: specific, measurable, accurate, realistic, and timely. An ideal goal should

present a situation where the time between the initiation of behaviour and the

end state is close. This explains why some children are more motivated to learn

how to ride a bike than to masteralgebra.A goal should be moderate, not too

hard or too easy to complete. In both cases, most people are not optimally
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motivated, as many want a challenge (which assumes some kind of insecurity

of success). At the same time people want to feel that there is a substantial

probability that they will succeed. Specificity concerns the description of thegoal in their class. The goal should be objectively defined and intelligible for

the individual. A classic example of a poorly specified goal is to get the highest

possible grade. Most children have no idea how much effort they need to reach

that goal.

8.

J.S Adams Equity Theory

Employee compares her/his job inputs outcome ratio with that of reference. If

the employee perceives inequity, she/he will act to correct the inequity: lower

productivity, reduced quality, increased absenteeism, voluntary resignation.

9. Vrooms Expectation Theory

Vrooms theory is based on the belief that employee effort will lead toperformance andperformance will lead to rewards (Vroom, 1964). Reward may

be either positive or negative.The more positive the reward the more likely the

employee will be highly motivated.Conversely, the more negative the reward

the less likely the employee will be motivated.

10.Herzbergs Two Factor Theory

Douglas McGregor introduced the theory with the help of two views; X

assumptions areconservative in style Assumptions are modern in style.

X Theory

1. Individuals inherently dislike work.

2.

People must be coerced or controlled to do work to achieve the


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objectives.

3. People prefer to be directed.

Y Theory

1. People view work as being as natural as play and rest

2. People will exercise self-direction and control towards achieving

objectives they arecommitted too.

3.

People learn to accept and seek responsibility.

11.Psychological theory

Motivation can be divided into two types: intrinsic (internal) motivation and

extrinsic (external) motivation.

i. Intrinsic motivation

Intrinsic motivation refers to motivation that is driven by an interest or

enjoyment in the task itself, and exists within the individual rather than relying

on external pressures or a desire for reward. Intrinsic motivation has been

studied since the early 1970s.The phenomenon of intrinsic motivation was first

acknowledged within experimental studies of animal behavior. In these studies,

it was evident that the organisms would engage in playful and curiosity driven

behaviours in the absence of reward. Intrinsic motivation is a natural

motivational tendency and is a critical element in cognitive, social, and

physical development. Students who are intrinsically motivated are more likely

to engage in the task willingly as well as work to improve their skills, which

will increase their capabilities.Students are likely to be intrinsically motivated

if they:


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attribute their educational results to factors under their own control, also

known as autonomy

believe they have the skills to be effective agents in reaching their desired

goals, also known as self-efficacy beliefs

are interested in mastering a topic, not just in achieving good grades

ii. Extrinsic motivation

Extrinsic motivation refers to the performance of an activity in order to attain

an outcome, whether or not that activity is also intrinsically motivated.

Extrinsic motivation comes from outside of the individual. Common extrinsic

motivations are rewards (for example money or grades) for showing the desired

behaviour, and the threat of punishment following misbehaviour. Competition

is in an extrinsic motivator because it encourages the performer to win and to

beat others, not simply to enjoy the intrinsic rewards of the activity. A cheeringcrowd and the desire to win a trophy are also extrinsic incentives.

12.Drive-reduction theory

There are a number of drive theories. TheDrive Reduction Theorygrows out of

the concept that people have certain biological drives, such as hunger. As time

passes the strength of the drive increases if it is not satisfied (in this case by

eating). Upon satisfying a drive the drive's strength is reduced. The theory is

based on diverse ideas from the theories ofFreud to the ideas

offeedback control systems, such as athermostat.

Drive theory has some intuitive or folk validity. For instance when preparing

food, the drive model appears to be compatible with sensations of rising hunger

as the food is prepared, and, after the food has been consumed, a decrease in
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subjective hunger. There are several problems, however, that leave the validity

of drive reduction open for debate. The first problem is that it does not explain

how secondary reinforces reduce drive. For example, money satisfies nobiological or psychological needs, but a pay check appears to reduce drive

throughsecond-order conditioning.Secondly, a drive, such as hunger, is

viewed as having a "desire" to eat, making the drive ahomuncularbeinga

feature criticized as simply moving the fundamental problem behind this "small

man" and his desires.

Drive reduction theory cannot be a complete theory of behaviour, or a hungry

human could not prepare a meal without eating the food before he finished

cooking it. The ability of drive theory to cope with all kinds of behaviour, from

not satisfying a drive (by adding on other traits such as restraint), or adding

additional drives for "tasty" food, which combine with drives for food in order

Incentives

An incentive is something which stimulates a person towards some goal. It

activates humanneeds and creates the desire to work. Thus, an incentive is a

means of motivation. Inorganizations, increase in incentive leads to better

performance and vice versa.

eed for IncentivesMan is a wanting animal. He continues to want something or other. He is never

fully satisfied. If one need is satisfied, the other need arises. In order to

motivate the employees, the management should try to satisfy their needs. For

this purpose, both financial and non-financial incentives may be used by the

management to motivate the workers. Financial incentives or motivators are

those which are associated with money. They include wages and salaries, fringe
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benefits, bonus, retirement benefits etc. Non-financial motivators are those

which are not associated with monetary rewards. They include intangible

incentives like ego-satisfaction, self-actualization and responsibility.

Motivation is the key to performance improvement

There is an old saying you can take a horse to the water but you cannot force it

to drink; it will drink only if it's thirsty - so with people. They will do what they

want to do or otherwise motivated to do. Whether it is to excel on the workshop

floor or in the 'ivory tower' they must be motivated or driven to it, either by

themselves or through external stimulus.

Are they born with the self-motivation or drive? Yes and no. If no, they can be

motivated, for motivation is a skill which can and must be learnt. This is

essential for any business to survive and succeed.Performance is considered to

be a function of ability and motivation, thus:

Job performance =f(ability)(motivation)

Ability in turn depends on education, experience and training and its

improvement is a slow and long process. On the other hand motivation can be

improved quickly. There are many options and an uninitiated manager may not

even know where to start. As a guideline, there are broadly seven strategies for

motivation. There are broadly seven strategies for motivation.

Positive reinforcement / high expectations

Effective discipline and punishment

Treating people fairly

Satisfying employees needs


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Setting work related goals

Restructuring jobs

Base rewards on job performance

Essentially, there is a gap between an individuals actual state and some desired

state and the manager tries to reduce this gap. Motivation is, in effect, a means

to reduce and manipulate this gap.

1.2 Industry Profile

History of Tata Steel

History of an industrial empire from the illustrious effort of Indias original iron

man and the remarkable people who thereafter, have kept the fire burning.

The story of Tata Steel is a century old. And so is the story of steel in India.

Etched with the visions and the origins and ascent of Tata Steel, which has

culminated into the century long hardships of a single man, the story has flowed

through ages to redefine steel in every way. The saga, which started in 1907,

completes a century of trust in 2007. Over the years this one company

hasexposed the various shapes and forms in which steel can be redefines

conventional wisdom in myriad ways.

The great Iron Pillar, a thousand years older than the Outab Minar stands as a

living testimony to the unmatched skills of ancient Indian metallurgist. They

Macro Polos travels there is a reference to andanique a corruption of the

Persian hundawanity, i.e. Indian steel. Tavernier, the 17thcentury French

traveller, mentions the existences of a steel industry in the kingdom of

Golconda. And the Arab Edrisi declared, The Hindus excel in the

manufacture of iron. For centuries, therefore, steel of remarkably superior


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quality was being fashioned in India out of primitive furnaces to be used, for

instance, the preparation of medicine and in the manufacture of arms. It was

only in the last century with the advent of the Industrial Revolution that thetime-honoured skills of Indian ironsmiths began to die.

The Industrial Revolution in England ushered in an era of unparalleled peace

and prosperity. Modern science before fruit in an unprecedented technological

development and industrial progress. This left countries like India, where

industrialisation as still in its infancy, feeling slightly dazzled and overwhelmed.

The leading Indian intellectuals of the 19 thcentury believed that if India ere to

keep pace with the world it would have to master the modern scientific methods

of the West.

In these times was born JamsetjiNusserwanji Tata. Within his lifetime, Jamsetji

was to witness the birth of a revolutionary Indian nationalism that would assist

in the emergence of independent India, which he helped to create and whose

presence could already be felt when he died in 1904.

Birth of the Pioneer

Jamsetji Nursserwanji Tata was born in 1839 in Navsari, a small town in

Gujarat, into a family of priests. Having completed his education, he joined his

fathers firm at the age of 20. Later he went to England, and set up a profitable

private trading company with a capital of Rs.21000 only.

Way back in 1882a report by a German geologist, Ritter Yon Schwartz aroused

Jamsetjis interest in the black metal. After a disappointing stint with iron ores

in areas close to Nagpur, the much-awaited opportunity came in 1899 when the

Viceroy, Lord Curzon, liberalised the mineral concession policy. The same

year, Major R H Mahon published an incisive report on the subject, announcing


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that it was time that India started manufacturing its own iron and steel. Mahon

suggested the Jharia coalfields as a source of fuel. The Salem district in the

South, the Chanda district in the Central Provinces and Bengal as good foryielding the iron ore. To initiate the project, Jamsetji went to England and

secured an audience with the then Secretary of State for India, Lord George

Hamilton, who appreciated the idea and readily gave his support.

The War Years

Soon after the outbreak of the First World War in 1914, the plant was geared to

meet the priority needs of the government. It worked on a 24 hour schedule, and

sold its product to the government at a fraction of the price prevailing in the

open market. Two more open hearth furnaces of 60 tonnes capacity each were

added to make more steel. Tatas supplied 1500 miles of rails and 300,000

tonnes of steel to the allies war effort. During this period, Tata steel embarked

on an expansion of the works. The greater extension programme was taken up

in 1917 to raise the steel production to 500,000 tonnes. This phase saw the then

latest Duplex process of steelmaking being introduced along with an electric

driven blooming mill.

The programme was delayed due to the war and could be completed only in

1924. As against the original estimate of Rs.67.6 million, the final cost came toRs. 196 million.

The company progressively added new units such as the third Duplex furnace in

1929, two new roughing and finishing mills in 1933, and a new blast furnace

along with coke ovens in 1935. Simultaneously, mining leases were renewed or

obtained afresh and attention was given to ancillaries and, a capacity of 800,000

tonnes of saleable Steel was attained by 1939. At that time, Tata Steel came to


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be regarded as the largest Steel plant in the British Empire and also the cheapest

exporter of pig iron in the world (the latter reminiscent of the state in 1999).

During the years of the Second World War between 1939 and 1945, Tata Steel

contributed in a big way towards supplying war materials. This was a result of

successful experimentation and innovation with existing resources. At the

instance of the Government, in 1941, Tata Steel put up a wheel, tyre and axle

plant to meet the requirements of the railways; in 1942 a mill to manufacture

1,000 tonnes per month of armour plates for defence carriers was added; a

benzol recovery plant for producing toluene needed for the manufacture of

explosives was put up in 1943; special quality sheets of alloy Steel and of high

silicon were made in 1944-45 along with Steel for the famous Tatanagar

tanks.

Expansion to Two Million Tonnes

The Steel target of six million tonnes of ingot Steel per annum in India set for

the second five year plan included expansion of the existing Steel plants. Tata

Steel was permitted to go in for an expansion to two million tonnes of ingot

Steel per annum. Tata Steels expansion programme, the largest project in the

private sector, was started in 1955 and completed by December 1958.

The rated daily capacity of the five blast furnaces in existence prior to TMP was

4200 tonnes. Blast furnace F, with a rated capacity of 1650 tonnes per day,

provided sufficient hot metal for the two million tonne programme.

By providing sintered ore, blast furnace production increased by 10% to an

annual output of 1,870,000 tonnes. Blast furnace F was completed and put in

operation on October 10, 1958. One of the largest and most modern furnaces in

the world, it was designed for high top-pressure operation and the use of sinter


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in the burden. The blowing-in ceremony of blast furnace F was regarded as the

official christening of TMP.

A huge Steel Melting shop no. 3 (closed down in 1999) comprising two 800

tonne hot metal mixers, three 32 tonne Bessemer converters and seven 200

tonne open-hearth furnaces (with the possibility of adding an eighth furnace)

was the corner stone of steelmaking under TMP.

A new rolling mill complex was constructed consisting of soaking pits,

Blooming Mill no.2 and a sheet Bar and Billet mill (this was closed in early

1999). Between the two mills, the primary capacity was nearly three million

tons of ingots per annum. The continuous sheet bar and billet mill no.2 was the

main mill for semi-finished products for feeding the sheet mills, tin bars for the

tinplate company and gothic for the manufacture of seamless tubes.

The Medium and Light Structural mill, which was also installed along with the

other mills, was capable of rolling diversified products in wide ranges and was

designed to roll 350,000 tonnes of blooms per annum. The products

manufactured were to be mainly beams, channels, angles, junior beams and

parallel flange beams-the last two for the first time in country. The revamping

of the rail and structural mill (closed down in 1989), sheet bar and billet mill

no.1 (closed down in 1998) and the merchant mill were also undertaken. A new

merchant mill no.2 was commissioned in 1962. The additional service facilities

included water supply arrangement, power supply and distribution to meet the

total maximum demand of 125,000 kW and railway track facilities. The two

million tonne programme was completed on schedule and involved no major

delay.


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Period between1960-80

During the decade of the sixties, consideration was given to the expansion of

Tata Steel in the private sector. In July 1961, Tata Steel obtained an industrial

license for setting up alloy steel.

Sinter plant

A new 1.37 mtpa sinter plant (SP2) to raise the total sinter production to 2.5

mtpa and thereby, increase sinter in blast furnaces to around 65%.

Coke ovens: A coke oven battery with 54 ovens using stamp charging

technology to make coke of internationally acceptable quality was established.

Stamp charging has given following advantages:

1. Superior coke strength after reaction (CSR) compared with top charged

coke, as well as higher bulk density.

2.

Higher yield of sized coke for the blast furnaces.

3. Improved blast furnace productivity because of usage of coke with better

room temperature and high temperature properties.

Waste recovery

1 Mtpa Waste recycling plant to recover metallic from the plant was

established. Ancillary technologies: The main technology improvement in phase

II was the introduction of coal injection in blast furnaces. The limited reserves

of coking coal in India have always spurred Indian iron makers to strive for

lower coke rates. Tata Steel commissioned a coal injection unit in 1991 for its F

blast furnace. The system developed by Kloeckner Stahl Technik (KST) was

adopted on the success of coal injection in F blast furnace; the technology was


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extended to G blast furnace as a part of modernisation phase III and thereafter,

also incorporated in D blast furnace.

Modernization phase III

The success of modernization phases I and II and the need to enter the flat

product market, provided the necessary impetus to embark on the crucial third

phase of modernization. Keeping in view the international and domestic Steel

scenario, it was felt necessary for Tata Steel to set up an internationally

competitive flat products complex. Apart from a one million tonne hot strip

mill, a new one million tonne G blast furnace was also installed. The landmarks

during this phase were:

1. Iron-making: To augment steelmaking capacity, a corresponding increase

in hot metal production was necessary. Hence, a highly automated blast

furnace of 1 mtpa capacity, called the G blast furnace, was commissionedin November 1992.

2. Steel-making: A new LD shop 2 with two 130t capacity LD vessels, with

one out of two operating at any given moment, was commissioned.

New Cold Rolling Mill at Tata Steel

In addition to modernization, Tata Steel has defined its vision for the next

millennium and has embarked on an unprecedented expansion in flat products.

As a first step, taking into account the doubling of the capacity of the HSM, a

1.2 million tonnes cold rolling complex has been commissioned in Jamshedpur

towards the middle of the year 2000. Some of the salient features of this new

development are highlighted.

Facilities in the cold rolling complex


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Internationally, the technology of cold rolling has developed to an extremely

sophisticated level. This progress has been augmented by the work on

technology by equipment suppliers around the world, focused on furtherimproving the processes to produce better products, thereby propelling cold

rolled strips to higher levels of quality and cost competitiveness.

The major facilities include a pickling-cum-tandem cold rolling mill, an

annealing facility, and galvanizing lines.

Steel-making and casting

Major developments in the steel-making and casting areaincludes the following:

1.

Switchover from duplex and open hearth steelmaking to the oxygen

process.

2.

Adopting optimum KD vessel configuration (to accommodate the high

slag volume as a result of high silicon and phosphorus in hot metal) and

use of bottom inert gas agitation.

3. Strategy to make low phosphorus Steel.

4.

Improvement of vessel lining life from 160-180 heats to over

1000 heats

5. Adoption of continuous casting through billet and slab casters.

Tata Steel Today

As a result of innovations and technological up-gradation, Tata Steel, has

become a well-run ultra-modern plant - one of the best in the world.

Fundamental changes in some metallurgical parameters have brought about this

remarkable transformation. Necessity became the mother of invention and


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numerous innovations invoked improvement. The metallurgical changes

introduced were essentially centredon:

1.

Reducing alumina level in sinter from 4.4 to 2.5 %.

2.

Improving in coke quality

3. Making changes in the fluxes used in sinter-making essentially to

decrease the alkali input.

4.

Adopting the optimum LD vessel configuration and blowing conditions

to accommodate the high slag volume required to deal with high silicon

and phosphorus in Indian hot metal.

5. Increasing the yield during LD steelmaking

6.

Introducing continuous casting (CC) instead of ingot casting to increase

the net yield.

All these factors have made Tata Steel internationally cost competitive. In terms

of hot metal costs, Tata Steel is amongst the lowest in the world and has a clear

advantage over other major integrated producers. The cost of conversion from

hot metal to a finished product such as hot rolled coils where Tata Steel has not

been very competitive so far would be taken care of in the near future as

investments already made to achieve the results foreseen. High ash in coke,

poor room temperature and high temperature strengths of coke, high alumina in

the iron oxide feed, high silicon in hot metal, low yields during steelmaking,

low yield of finished products, high energy consumption, high manpower, etc.

have been the weaknesses not only of Tata Steel but of the Indian Steel industry

as a whole.

Appropriate steps taken by the Company have already resulted in better yield

lower energy consumption, lower silicon in hot metal, lower silicon in hot

metal, lower lime consumption in steelmaking, higher vessel life, etc., all of

which augur well for the Steel Company in future.


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Tata Steel in the New Millennium

Tata Steel is all set to establish itself as the supplier of choice by delighting all

its customers with its products and services. The Organisation is envisaged to

become the most cost competitive Steel plant to serve the community and the

nation. Where Tata Steel would venture, others will follow. The 21st century

will certainly see a new Tata Steel - an integrated Steel plant in India with truly

world class facilities along with a will to win amongst a committed and

streamlined workforce.

Steel Making All the Ages

Way back in 1907 the greatest visionary of all times, Mr. J.N Tata established

Indias first Iron and Steel making company and named it the Tata Iron and

Steel Industry. The company was established primarily to provide India with a

substantial supply of raw material for its industrial usage. Within a few years of

establishment, the company took a major bound and established the first ever

Blast Furnace in India in 1911. Ever since there has been no looking back, and

soon the company became a giant industrial group that spreads its arms not only

in India but across several other nations too. The companys journey so far, has

been full of events that has mark several milestones achievements. Today, the

Tata Iron Steel industry celebrates its glorious hundredth year of existence and

fondly looks back at the time when its pioneers saw a dream that they are living

even today.


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1.3 Company Profile

Vision

Aspire to be the global steel industry benchmark for Value Creation and

Corporate Citizenship.

Achieve this through:

1. Peopleby fostering team work, nurturing talent, enhancing leadership

capability and acting with pace, pride and passion.

2.

Offerby becoming the supplier of choice, delivering premium products

and services, and creating value for our customers.

3.

Innovationby developing leading-edge solutions in technology,

processes and products.

4.

Conductby providing a safe and healthy workplace, respecting the

environment, caring for our communities and demonstrating high ethical

standards

Mission


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Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel

strives to strengthen Indias industrial base through the effective utilization of

staff and materials. The means envisaged to achieve this are high technologyand productivity, consistent with modern management practices.

Tata Steel recognizes that while honesty and integrity are the essential

ingredients of a strong and stable enterprise, profitability provides the main

spark for economic activity.

Overall, the Company seeks to scale the heights of excellence in all that it does

in an atmosphere free from fear, and thereby reaffirms its faith in democratic

values.

Organisational Structure

Department profile

The organization has mainly 5 departments. They are

1. Human resource department

2. Financial department

3.Purchase department

4. Marketing department

5. Production department

Organizational chart of Human Resource Department

The managing human resource in the organization is an important task.

Human resource department is doing the management of human resource in

the organization. Tata Steels follows a system in HR department that each

authority coming under the General Manager (works) has to report directly


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to General Manager (Works) in the hierarchy. This will helps to speed up the

communication flow in the organization.

Organizational chart of Finance Department

Sound financial decisions have been one of the critical practices in the

success of Tata Steel Industries, proper planning and long vision of the

financial managers help the company to undergo to smooth sail. All

monetary transactions of the company are handled and brought to account by

the finance department.

General Manager (Works)

Manager Industrial Relations

Jr. Manager Establishment

Sr. Officer HR

Security

Time Office Assistants

Assistants

Sr. Accounts Officer

Assistant manager

Deputy Manager Accounts


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Organizational chart of Purchase department

The purchase manager is the only person who is the having the prime authorityto make orders for the purchase of raw materials. After referring the stock report

of raw materials and finished goods, the purchase manager purchase the raw-

materials in order to ensure the continuous flow of production.

Organizational chart of Production Department

The production manager and his team are responsible for realizing the visions of

the company within constraints of technical possibility. This involves

coordinating the operations of various production activities and maintains a

good flow of work without any blockage.

Assistants

Purchase Officer

Assistant Manager Purchase

Sr. Purchase Manager


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Organizational chart of Marketing Department

Sound marketing decisions have been one of the critical practices in the

success of Tata Steel Industries, proper planning and long vision of the

marketing managers help the company to undergo to smooth sail marketing.

All marketing and promotional activities of the company are handled by the

marketing department.

Production

Manager

Deputy Manager

Production

Jr. Manager Production

Deputy Manager

Maintenance

Jr. Manager Production

Marketing Manager

Sales Manager

Regional Sales Manager

Area Sales Manager

Sales Officer


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Chapter 2

Scope and Objectives

2.1 Scope of study

The factors that motivate the employees may change with change in time

because the needs of the employees too change with change in time. Continuous

monitoring and close observation of factors that motivate the employees is

necessary to maintain a competent work force. Only with a competent work

force an organisation can achieve its objectives. Moreover, human resource is

the most valuable asset of an organisation. A future study within the department

analysis to know to what extent these factors motivate the employee is required.

2.2 Objectives

1.

To study the important factors which are needed to motivate the

employees.

2.

To analyze the monetary method of motivating employee.

3.

To analyze the non-monetary method of motivating employee

4. To study the effects of monetary and non-monetary benefits provided by

the organisation on the employeesperformance.

5.

To study the effect of job promotion on employees.

6.

To learn the employees satisfactions on the interpersonal relationship

exist in the organisation.

7. To provide the practical suggestion for the improvement of organisations

performance.


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8.

To understand the importance of employee motivation as in Tata Steel.

9.

To understand the difficulties/challenges found in caring out the

strategies.10.

Finally, to recommend how Tata Steel can improve its motivational

strategies.

2.3 Limitation

This questionnaire was revised several times before finalization. During those

revisions, some questions and some answer choices were removed in order to

make the questionnaire as short as possible while still providing worthwhile

data. The quality of the data collected will still be sufficient for the study, but

perhaps not as specific as a lengthier questionnaire could provide. Because the

questionnaire was distributed to only one place of work, the data is not expected

to reflect an incredibly wide range of perspectives. To apply results to a greater

population, a larger, more random sample would need to be taken.

1.

The data is also gathered from secondary source thus any error in the

information would have also got replicated in this report.

2.

Time constraint was the major limitation faced by the researcher.

3.

Another problem was knowledge constraint and this report was an attempt to

gather as much of relevant data as possible.


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Chapter 3

Research Methodology

3.1 Definition

Research is a systematic method of finding solutions to problems. It is

essentially aninvestigation, a recording and an analysis of evidence for the

purpose of gaining knowledge. According to Clifford woody, research

comprises of defining and redefining problem, formulating hypothesis or

suggested solutions, collecting, organizing and evaluating data, reaching

conclusions, testing conclusions to determine whether they fit the formulated

hypothesis

Nature of Research

Descriptive research, also known as statistical research, describes data and

characteristics about the population or phenomenon being studied. Descriptive

research answers the questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the research

cannot describe what caused a situation. Thus, descriptive research cannot be

used to create a causal relationship, where one variable affects another. In other

words, descriptive research can be said to have a low requirement for internal

validity.


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Questionnaire

A well-defined questionnaire that is used effectively can gather information on

both overallperformance of the test system as well as information on specificcomponents of the system.A defeated questionnaire was carefully prepared and

specially numbered. The question were arranged in proper order, in accordance

with the relevance.

Nature of Questions Asked

The questionnaire consists of open ended, dichotomous, rating and rankingquestions.

3.2 Method of Data Collection

1. Primary Data

Primary data are in the form of raw material to which statistical methods are

applied for the purpose of analysis and interpretations. The primary sources are

discussion with employees, datas collected through questionnaire.

2. Secondary Data

Secondary datas are in the form of finished products as they have already been

treated statistically in some form or other. The secondary data mainly consists

of data and information collected from records, company websites and also

discussion with the management of the organization. Secondary data was also

collected from journals, magazines and books.

3.2 Sample Size

A finite subset of population, selected from it with the objective of investigating

its properties called a sample. A sample is a representative part of the


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population. A sample of 50 respondents in total has been randomly selected.

The response to various elements under each questions were total for the

purpose of various statistical testing.

Universe

The universe chooses for the research study is the employees of Tata Steel

Industries Ltd.

Sample Size.Number of the sampling units selected from the population is called the size of

the sample. Sample of 50 respondents were obtained from the population.

Sample Procedure.

The procedure adopted in the present study is probability sampling, which is

also known as chance sampling. Under this sampling design, every item of the

frame has an equal chance of inclusion in the sample.


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Chapter 4

Data Analysis and Interpretation

Response about the support from the HR department

Sr. no Particular No. Of

Respondents

Percentage

1 Highly satisfied 18 36

2 Satisfied 29 58

3 Neutral 3 6

4 Dissatisfied 0 0

5 Highly dissatisfied 0 0

Total 50 100

0

10

20

30

40

50

60

70

Highly satisfied Satisfied Neutral dissatisfied highly

dissatisfied

Response about the support from the HR department

Series 1


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INTERPRETATION

The table shows that 58% of the respondents are satisfied with the support they

are getting from the HR department.

Management is interested in motivating the employees

Sr. No Particulars No .of

Respondents

Percentage

1 Strongly agree 27 54

2 Agree 30 40

3 Neutral 3 6

4 Disagree 0 0

5 Strongly disagree 0 0

Total 50 100

0

10

20

30

40

50

60

Strongly agree Agree Neutral Disagree Strongly

disagree

Management is interested in motivating the employees

Series 1


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INTERPRETATION

The table shows that 54% of the respondents are strongly agreeing that the

management is interested in motivating the employees.

The type of incentives motivates you more

Sr. No Particulars No. Of

Respondents

Percentage

1 Financial incentives 15 30

2 Non-financial incentives 9 18

3 Both 26 52

Total 50 100

The type of incentives motivates you more

Fiancial Incentives

Non-financial Incentives

Both


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INTERPRETATION

The table shows that 52% of the respondents are expressing that both financial

and non-financial incentives will equally motivate them.

Satisfaction with the present incentives scheme


Respondents

Percentage

1 Highly satisfied 18 36

2 Satisfied 29 58

3 Neutral 3 6

4 Dissatisfied 0 0

5 Highly dissatisfied 0 0

Total 50 100

0

10

20

30

40

50

60

70

Highly

satisfied

Satisfied Neutral Dissatisfied Highly

dissatisfied

Satisfaction with the present incentives

scheme

Satisfaction with the present

incentives scheme


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INTERPRETATION

The table shows that 58% of the respondents are satisfied with the present

incentive scheme of the organization.

The company is eagerness in recognizing and acknowledging

Employees work


respondents

Percentage


2 Agree 29 58

3 Neutral 3 6

4 Disagree 0 0


Total 50 100

0

10

20

30

40

50

60

70

Strongly agree Agree Neutral Disagree Strongly disagree

Company's eagerness in recognizing & acknowledging

employee's work

Company's eagerness in recognizing & acknowledging employee's work


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Interpretation

From the study, 58% of employees agree that the company is eager in

recognizing and acknowledging the work, 36% strongly agree and 6% showedneutral response.

Periodical increase in salary


respondents

Percentage


2 Agree 23 46

3 Neutral 3 6

4 Disagree 9 18


Total 50 100

0

5

10

15

20

25

30

35

40

45

50


periodical increase in salary

periodical increase in salary


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Interpretation

The table shows 46% of employees agree that there is a periodical increment in

the salary.

Job security existing in the company


respondents

Percentage


2 Agree 18 36

3 Neutral 11 22

4 Disagree 3 6


Total 50 100

0

5

10

15

20

25

30

35

40


Job security

Job security


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Interpretation

The table shows 35% of employees agree with good job security exist in the

company.

Good relations with the co-workers


respondents

Percentage


2 Agree 27 54

3 Neutral 8 16

4 Disagree 0 0


Total 50 100

0

10

20

30

40

50

60

Strongly agree Agree Neutral Diagree Strongly disagree

Good relaion with the co-workers

Good relaion with the co-workers


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Interpretation

The table shows 54% of the respondents agree that they have good relations

with co-workers.

Effective performance appraisal system


respondents

Percentage


2 Agree 23 46

3 Neutral 8 16

4 Disagree 6 12


Total 50 100

0

5

10

15

20

25

30

35

40

45

50


Performance appraisal system

Performance appraisal system


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Interpretation

The table shows 46% of respondent agree to effective performance appraisal

system existing in the company.

Effective promotion opportunities in the present job


respondents

Percentage


2 Agree 26 52

3 Neutral 9 18

4 Disagree 3 6


Total 50 100

0

10

20

30

40

50

60

Strogly agree Agree Neutral Disagree Strongly disagree

Promotion opportunities

Promotion opportunities


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Interpretation

The table shows 52% of the respondents agree with effective promotional

opportunities in their present job.

Good safety measures existing in the organisation


respondents

Percentage


2 Agree 23 46

3 Neutral 3 6

4 Disagree 6 12


Total 50 100

0

5

10

15

20

25

30

35

40

45

50


Safety measures

Safety measures


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Interpretation

The table shows 46% of the respondents agree that there is a good safety

measure exiting in the company.

Performance appraisal activities are helpful to get motivated


respondents

Percentage


2 Agree 23 46

3 Neutral 6 12

4 Disagree 3 3

Strongly disagree 9 18

Total 50 100

0

5

10

15

20

25

30

35

40

45

50


performance appraisal activities are helpful to get

motivated

performance appraisal activities are helpful to get motivated


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Interpretation

The table shows 46% of the respondents agree that the performance appraisal

activities are helpful to get motivated.

Support from the co-worker is helpful to get motivated


respondents

Percentage


2 Agree 29 58

3 Neutral 0 0

4 Disagree 6 12


Total 50 100

0

10

20

30

40

50

60

70


Support from the co-worker

Support from the co-worker


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Interpretation

The table shows 58% of the respondents that the support from the co-worker is

helpful to get motivation.

Career development opportunities are helpful to get motivated


respondents

Percentage


2 Agree 26 52

3 Neutral 2 4

4 Disagree 4 8


Total 50 100

0

10

20

30

40

50

60


Career development opportunities

Career development opportunities


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Interpretation

The table shows 52% of the respondent agree that the career development

opportunities are helpful to get motivated.

Factors which motivates you the most


respondents

Percentage

1 Salary increase 21 42

2 Promotion 15 30

3 Leave 3 6

4 Motivational talk 5 10

5 Recognition 6 12

Total 50 100

0

5

10

15

20

25

30

35

40

45

Salary increase Promotion Leave Motivational talk Recognition

Factors of motivation

Factors of motivation


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Interpretation

The table shows that the 42% of the respondent is responding that increasing in

salary will motivate them the most.

Incentive & other benefits will influence your performance


respondents

Percentage

1 Influence 32 64

2 Does not influences 12 24

3 No opinion 6 12

Total 50 100

0

10

20

30

40

50

60

70

Influence Does not influence No opinion

Incentivies & other benefits

Incentivies & other benefits


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Interpretation

The table shows, 64% of the respondent responded incentive & their

performance.

Management involves you in decision making which are connected to your

department


respondents

Percentage

1 Yes 47 94

2 No 0 0

3 Occasionally 3 6

Total 50 100

Interpretation

The table shows, 94% of the respondents agree that management involves them

in the decision making which are connected to your department.

0

10

20

30

40

50

60

70

80

90

100

Yes No Occasionally

Management involves you in decision-making

Management involves you in decision-making


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Chapter 5

Conclusion

5.1 Conclusion

The study concludes that, the motivational program procedure in Tata Steel

Industry is found effective but not highly effective. The study on employee

motivation highlighted so many factors which will help to motivate the

employees. The study was conducted among 50 employees and collected

information through structured questionnaire. The study helped to findings

which were related with employee motivational programs which are provided in

the organization.

The performance appraisal activities really play a major role in motivating the

employees of the organization. It is a major factor that makes an employee feels

good in his work and results in his satisfaction too. The organization can still

concentrate on specific areas which are evolved from this study in order to

make the motivational programs more effective. Only if the employees are

properly motivated- they work well and only if they work well the organization

is going to benefit out it. Steps should be taken to improve the motivational

programs procedure in the future. The suggestions of this report may help in this

direction.


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Suggestion

6.1 Suggestion

The suggestions for the findings from the study are follows

Most of the employees agree that the performance appraisal activities are

helpful to get motivated, so the company should try to improve performance

appraisal system, so that they can improve their performance.

Non-financial incentive plans should also be implemented; it can improve the

productivity level of the employees.

Organization should give importance to communication between employees

and gain co-ordination through it.

Skills of the employees should be appreciated.

Better carrier development opportunities should be given to the employees for

their improvement.

If the centralized system of management is changed to a decentralized one,

then there would be active and committed participation of staff for the success

of the organization


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QUESTIONAIRE

Q1. What is your Response about the support from the HR department? (pg no36)

Q2. Is Management interested in motivating the employees?(pg no.37)

Q3. Which types of incentive motivates you?(pg no.38)

Q4. Are you satisfiedwith the present incentives scheme?(pg no.39)

Q5. Is company eagerin recognizing and acknowledgingEmployees work?(pg

no.40)

Q6. Is any Periodical increase in salary?(pg no41)

Q7. Is Job security existing in the company?(pg no.42)

Q8. Is company having Good relations with the co-workers?(pg no.43)

Q9. Do you have Effective performance appraisal system in your company?(pgno.44)

Q10. Do you have Effective promotion opportunities in the present job?(pg

no.45)

Q11. Doesgood safety measures existing in the organisation?(pg no.46)


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Q12. Does performance appraisal activities helpful to get motivated?(pg no.47)

Q13. Does Support from the co-worker helpful to get motivated?(pg no.48)

Q14. Does Career development opportunities helpful to get motivated?(pg no.

49)

Q15. Factors which motivates you the most?(pg no.50)

Q16. Incentive & other benefits will influence your performance?(pg no.51)

Q17. Management involves you in decision making which are connected toyour department? (pg no.52)

Documents

Employee Motivation on tata steels