A STUDY ONPROMOTION POLICY WITH REFERENCE TO RINL, VSPAT

VISHAKAPATNAM STEEL PLANT(A report submitted to Andhra University)

ANDHRA UNIVERSITY

In Partial fulfillment for the award of

MASTER OF BUSINESS ADMINISTRATION

By

Ch Deepthi

Under The Guidance Of

D. RADIKASenior Manager (Personnel H.R DEPT)RINL, VISAKHAPATNAM STEEL PLANT

Facilitated by HRD Deptt of RINL/VSPVisakhapatnam

O.R.Mohan RaoM.L.Srinivasa VarmaAGM(HRD) RINL/VSP AM(HRD) RINL/VSP

CERTIFICATE

This is to certify that the project done by Ms.CH.DEEPTHI during the academic year 2011 - 2013, in partial fulfillment for the award of Master of Business Administration. This project work is original and exclusively done by her and has been never been a basis for award/fulfillment of any degree or similar title in this University or in any other University.

PLACE: VISAKHAPATNAM D. RADHIKA DATE: Senior Manager (Personnel) RINL, VISAKHAPATNAM STEEL PLANT

CERTIFICATE OF PROJECT GUIDE IN VISHAKAPATNAM STEEL PLANT

This is to certify that the project report entitled a case study on PROMOTION POLICY with reference to RINL, VSP is a bonfire work done and submitted in partial fulfillment of the requirement for the award of Master of Business Administration by CH.DEEPTHI, under my guidance & supervision.

PLACE: VISAKHAPATNAM D. RADHIKA DATE: Senior Manager (Personnel) RINL, VISAKHAPATNAM STEEL PLANT

DECLARATION

I, CH.DEEPTHI, hereby declare that the project report entitled a case study on PROMOTION POLICY with reference to RINL, VSP SUBMITTED BY ME IS A BONIFIDE WORK DONE BY ME AND IT IS NOT SUBMITTED TO ANY OTHER University or published any time before. This project work is in partial fulfillment of the requirements for the award of the Master of Business Administration, SIR. C.R.REDDY COLLEGE FOR WOMEN,ELURU,ANDHRA UNIVERSITY.

Place: VISAKHAPATNAMDate:CH.DEEPTHI

ACKNOWLEDGEMENT

The Quest for Knowledge Never Ends, so continuing my journey of Knowledge in Department of Business Administration, SIR.C.R.REDDY COLLEGE FOR WOMEN,ELURU,ANDHRA UNIVERSITY.I have assigned to do my Project title on A Case Study on PROMOTION POLICY with reference to RINL, VSP This study is the result of the contribution, guidance and co-operation received from collective at the Steel Plant both explicitly and implicitly. No amount of words will be adequate to acknowledge the help rendered by the individual that assisted me in the preparation of this project report. I would like to express deeply my sincere gratitude and thanks to Madam D. Radhika, Senior Manager (Personnel HR department) RINL, Visakhapatnam Steel Plant for her outstanding co-operation.I also want to extend my sincere gratitude to all the functional members at RINL, Visakhapatnam Steel Plant, Visakhapatnam, for their kind co-operation and helping me to do my project successfully with them. I would also like to express my true sincere gratitude to Dr. W.C. Singh summer training and placement advisor, MIMS, for constant guidance, encouragement and inspiration for this study.I am also thankful to the faculty members and staff of SIR. C,R.REDDY COLLEGE FOR WOMEN,ELURU,ANDHRA UNIVERSITY for their valuable inputs, suggestion guidance and encouragement to complete the project successfully.Lastly I would like to thank my parents who have always been a great source of support and encouragement. I would also like to thank to all my friends for the needful assistance.

CH.DEEPTHI

INDEX

CHAPTER IIntroduction

CHAPTER IIIndustry Profile

CHAPTER IIICompany Profile

CHAPTER - IV Promotion Policy

CHAPTER VPromotion Policy at Visakhapatnam Steel Plant Ltd.,

CHAPTER VIAnalysis and Interpretation Findings, suggestions and conclusion

Questionnaire

Bibliography

CHAPTER I

INTRODUCTION

Promotion of one individual by another individual is a continuous process and it is Natural phenomenon in human beings. This is constantly done, consciously and unconsciously in our day-to-day interaction, either in family life or in a social setting or in an organization for that matter. While the individual or a group uses appraisal in its own fashion depending upon the need of the situation, in an organization it becomes necessary to adopt a formal methodology of Promotion because of the requirement of measuring the promotion for considering suitable reward or punishment or for assessing the potential of a person to increase his/her responsibilities. In short, there is a great requirement for assessing the efficiency to gear up the productivity of the work-force.

OBJECTIVESThe following are the specific objective of the present study. To study the promotion policy history and their activities in VSP.

To study and accesses the executive promotion and effectiveness. To measure the satisfaction level of the promotion of VSP at present time. To analyze the drive towards quality that is integrated into executives promotion policy. To find the effectiveness of superior assessment of promotion. To study, identify and suggest measures to improve effectiveness specifically from quality perspective. To find there is a cohesiveness attitude towards each other employees To find subordinates can give effective information for evaluating the promotion of the employees To find there is a room for the internal customer in PAS and can give valuable information for evaluating the performance of the employee To find 360 degree promotion can improved the promotion in VSP and can be implemented in RINL, VSP.SCOPE OF RESEARCH

A sample of 50 respondents were selected at random from different department Personnel Department, Vigilance Department, Marketing Department, Finance Department, Mills-Works Department, Project Departments and Training and Development Department, of employees from the executives were sort for their opinions on the existing promotion policy.

RESEARCH DESIGN

METHODOLOGY:To get information about promotion policy with reference to RINL, VSP Simple Random Sampling survey was conducted. For the present study of the data has collected by ways from the following ways.

Questionnaire:

The questionnaire was personally administrated with respondent in VSP it took nearly 30 minutes for each respondent to fill the questionnaire. The responses was given by the respondents were tabulated and a score sheet is prepared.

Organization Profile:

The general information regards organization has been collected from files, forms, policy statements, Organization design and steel industries in India. Isa promotion policy in VSP has been also been collected from all these records.

Author Books:

The information relating to the promotion policy has been collected through a study of books. Human resource and personnel management by C.B Gupta and Khankha, added to this source of information relating to the system.

LIMITATIONS:

The study is how ever subjected to certain limitation. The time is a major limitation. The whole study was conducted within a period of 2 months. The study does not cover the entire executive fraternity and the officials at the rank of Directors and Chairman Cum Managing Director. The study confers itself only to executives ranking from Assistant Managers to General Managers. Study is quality perspective has only been qualitative the information gathered in this regard is mostly through information discussion. Only the existing system has been studied and no attempt has been made to identify and complete new and dynamic promotion due to this constraints.

BRIEF DESCRIPTION

Promotion policy is the systematic description of an employees job-relevant strengths and weaknesses. The basic purpose is to find out how well the employee is promoting the job and establish a plan of improvement. Appraisals are arranged periodically according to a definite plan. Promotion policy is not job evaluation. Promotion policy refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and, therefore, what range of pay should be assigned to the job. Promotion policy is a continuous process in every large scale organization.

PURPOSE:Promotion policy aims at attaining the different purposes. They are: To create and maintain a satisfactory level of promotion. To contribute to the employee growth and development through training, self and management development programs. To help the superiors to have a proper understanding about their subordinates. To guide the job changes with the help to continuous ranking. To facilitate fair and equitable compensation based on promotion. To facilitate for testing and validating selection tests, interview techniques through comparing their scores with promotion policy ranks. To provide information for making decisions regarding lay off, retrenchment etc. To ensure organizational effectiveness, through correcting employee for standard and improved promotion, and suggesting the change in employee behavior.

CONTENT OF PROMOTION POLICY:

Every organization has to decide upon the content to be promoted before the programme is approved. Generally content to be promoted may be in the form of contribution to organizational objectives (measures) like production, cost savings, return on capital, etc. other measures are based on: Behavior which measure observable physical actions, moments, Objectives which measure job related results like amount of deposits mobilized, Traits which are measured in terms of personal characteristics observable in promotion and type and level of employees.

Contents to be promoted for an officers job:

Regularity of attendance Self-expression: Written and Oral Ability to work with others Leadership styles and abilities Initiative Technical skill Technical ability / knowledge Ability to Grasp new things Ability to Reason Originality and resourcefulness Creative Skills Area of Interests Area of Suitability Judgment Skills Integrity Capability for Assuming Responsibility Level of Acceptance by Subordinates

Establish GoalsFor ProgrammesDevelop PoliciesFor Feeding back Data

Obtain TopManagementDesign physicalCommitmentFacilities Conduct Programme

Do DetailedJob AnalysisSelect ExercisesAnd Participants

Define Dimensions toDesign AssessorTrainBe assessedTrainingsAssessorsProgramme

Provide FeedBack

Evaluate Participantsand Centre AgainstJob Success Criteria

Fig: An Assessment Centre Model

HumanPromotionEmployee policies policy Feedback

PromotionMeasures

Promotion RelatedStandards

HumanEmployee Resources Records Decisions

Fig: Key Elements of PROMOTION POLICY

HUMAN RESOURCES DEVELOPMENT:

It is well recognized everywhere that human competency development is essential prerequisite for any growth or development of the organization. Human resource development is a newly emerging field of study. Although development of human beings has been in existence in some from or the other since the beginning of civilization, a planned and systematic approach to HRD in the corporate sector emerged in the latter half of the 20th century. Many organizations have set up HRD Departments which symbolized the recognition of importance of employees competency development.

CONCEPT OF HRD :

HRD is the process of helping people to acquire competencies. It is an organized learning experience aimed at matching the organization need for human resource with the individual need for career growth and development. In an organizational context HRD is a process by which the employees of an organization are helped in a continuous and planned way to:

Acquire or sharpen capabilities require to promote various functions associated with their present or expected future roles. Develop their general capabilities so that may be able to discover their own inner potentialities and exploit them to full for their own and organizational development. To develop and organizational culture where superior-subordinate relationship, team work and collaboration among different submits are strong and contribute organizational wealth and; motivation and pride of the employees.

FEATURES OF HRD: Human resources Development is planned any systematic approach to the development of the people. Human Resource Development is a continuous process of developing the competencies, motivation, dynamism and effectiveness of employees. Human Resources Development is an inter disciplinary concept. Human Resources Development has both micro and macro aspects. Human Resource Development is a process not merely a set of mechanism.

OBJECTIVES OF HRD:

To provide a comprehensive frame work and method for the development of human resource in an organization. To generate systematic information about human resource for purpose of man power planning, placement, succession planning and the like. To increase the capabilities of an organization to recruit, retain and motivate talented employees. To create a climate that enables every employee to discover, develop and use his / her capabilities to a fuller extent, in order to further both individual and organizational goals. NEED FOR HRD:

Competent and motivated employees are essential for organizational survival growth and excellence. Over a period of time, an organization may achieve a saturation point in terms of its growth. Even to maintain such a saturation level of growth employee competencies need to be sharpened or developed. Thus, HRD is need by every organization that is interested in the following activities. Stability itself Growing Diversifying Renewing itself to become more effective Improving its systems and services Change and becoming more dynamic Playing leadership roles

FUNCTIONS OF HRD DEPARTMENT:

Develop a HR philosophy for the entire organization Keep inspiring the line managers to have a consistent desire to learn and develop. Constantly plan and design new method and systems of developing and strengthening the HRD climate. Be aware of the business/other goals of the organization and direct all their HRD efforts to achieve these goals. Monitor effectively the implementation of various HRD subsystem / mechanisms. Work with unions and associations and inspire them. Conduct human process research, organizational health surveys and renewal exercises regularly. Influence personnel policies by providing necessary inputs to the personnel department / top management.

HRD MECHANISMS:

The following are the mechanisms of HRD Promotion policy Potential promotion and development Feedback and promotion counseling Career planning Training Organizational development Rewards Employee welfare and quality of work like Human resources information system

PROMOTION POLICY:

Promotion policy of some type is practiced on most organizational all over the world:A HRD oriented promotion policy is used as a mechanism by supervisions to Understand the difficulties of their subordinates and try to remove their difficulties. Understand the strengths and weakness of their sub-ordinates and help of subordinates to realize these. Help the sub-ordinates to become aware of their position contribution. Encourage sub-ordinates to accept more responsibilities and challenges. Help sub-ordinates to acquire new capabilities. Plan for effective utilization of talents of sub-ordinates.

FEEDBACK AND PROMOTION COUNSELING: Knowledge of ones strengths helps one to become more effective, to choose situations in which ones strengths are required and to avoid situations in which ones weaknesses could create problems. These also increase the satisfactions of individuals often, people do not recognize their strengths. Supervisions in and HRD system have the responsibility for ongoing observation and feedback to subordinates about their strengths and their weaknesses, as well as for guidance in improving promotion capabilities.

CAREER PLANNING:

The HRD philosophy is that people perform better when they feel and see meaning in what they are doing. In the HRD system, corporate growth plans are not kept secret dong-range plans for the organizations are made known to the employees. Employees are helped to prepare for change whenever such change is planned, in fact the employees help to facilitate the change.

TRAINING:Training is linked with promotion policy and career development. Employees generally are trained on the job or through special in house training programs. For some employees (including executive) outside training may be utilized to enhance, update to develop specific skills. This is especially valuable if the external training can provide expertise, equipments, or sharing of experience that is not available within the organization.In-house training programs are developed by in-house trainers or consultants hired for the task and periodic assessments are made of the training needs within needs, manager, and employees who attend in-house or outside training events are also expected to submit proposal concerning any changes they would like to suggest on the basis of their new knowledge. The training received by employees is thus utilized by the organization.

ORGANIZATION DEVELOPMENT:The function includes research to ascertain the psychological health of the organization. This is generally accomplished by means of periodic employee surveys. Efforts are made to improve organizational health through various means in order to maintain a psychological climate that is conductive to productivity. The organizational development or systems experts also help any department or unit in the company that has problems such as absenteeism, low resistance to change.

REWARDS:Rewarding employees promotion and behavior is important part of HRD, Appropriate rewards no only recognize and motivate employees, but also communicate the organization value to the employees. In HRD systems, innovations and use of capabilities are rewarded in order to encourage the acquisition and application, newsletter announcements, increase in salary bonuses, special privileges and desired training reward may be given to individuals as well as to teams, department, main and other units within the organization.

EMPLOYEE WELFARE AND QUALITY OF WORK LIFE:

Employees at lower in the organization usually promotion relatively monotonous tasks and have fewer opportunities for promotion or change. This is particularly true in developing countries. In order to maintain their work commitment and motivation, the organization must provide some welfare benefits such as medical insurance, disability insurance, holidays and vacation.

Quality of work life programs generally focus on the environment with the organization includes basic physical amenities such as food and beverage facilities. Recreation and aesthetic and psychological and motivational factors such as flexible work hours, freedom to suggest change or improvements, challenging work and varying degree of autonomy.

HRD IN VISAKHAPATANM STEEL PLANT (VSP):

The VSP has a nice HRD department with talented and experienced staff. It is following more or less all the above mentioned HRD mechanisms. The HRD staff is very friendly and co-operative.

PHILOSOPHY OF HRD: Employees of the company are its greatest and most valuable resources. While on the hand HRD should appropriately harness employees potential for the attainment of company objectives on the other, the company as its corporate responsibility should create an enabling the best opportunity for self-expression all-round development and fulfillment. People are more than mere resource and therefore it will be a person with all the respect and sensitivity that are all the respect and sensitivity that is warranted when employees are seen as more than more instrumentality. HRD as a management function will be given a place of strategic priority along with function like production, maintenance, materials or finance in the overall scheme of management action in the company. HRD does not refer to training alone or it is just a new name for training. In RINL/VSP, HRD several management functions, for the development and growth of employees. HRD should eventually be a core philosophy of all management action and should not remain merely a report mental / sectional activity. All functional and divisional heads responsible for various activities of the company will the HRD spirit and suitably integrate HRD into their plans, decision and actions.

HRD OBJECTIVES: To provide initially a suitable match between employee competence levels and companys work requirements. To foster an appropriate climate and culture which nature. Employee competence and crease adequate motivational levels for the application of their abilities to assigned job / roles with required commitment. To enable employees seek great identification with the company by infusing most management decisions and actions with the requisite care, concern and development approach. To work towards enabling the employees and other stakeholders ask self fulfillment even work for the growth and property of the company. To utilization enable to employees and the organization to achieve its mission and objective and business goals through HRD.

HRD GROUP-KEY ACTIVITY:

TQM and in-house programs Nomination to external programs Organization research and organization development Membership with professional bodies Promotion policy for executives Human resource information In plant training for management studies. Lectures by eminent personalities. Corporate presentation Interactions with professional academicians and consultants.

CHAPTER IIINTRODUCTION TO STEEL INDUSTRY IN INDIA

STEEL INDUSTRY:

Steel industry is the back bone of all industrial commercial activities. Realizing these countries planners have been formulating and updating annual plants for production of iron and steel. In this context a number of steel plants were setup. The steel industry plays a vital role in the growth of nations economy.

Steel is such a versatile commodity that every object we see in our day to day life has used steel either directly or indirectly in its product. To mention a few it is used for such small items as nails, needles etc. agriculture implements boilers, ship fabrication, railway materials, automobile parts, etc. to have machine structure.

The great investment that has gone into the fundamental research in iron and steel technology has helped both directly and indirectly in many modern fields of todays science and technology. It would have been very painful to imagine the fate of todays civilization if steel has not been there. Steel is versatile and indispensable item. The versatility steel has not been there. Steel is versatile and indispensable item. The versatility steel can be traced mainly of three reasons.

It is only metallic item, which can be continently and economically produced, in large quantities. It has got very good strength coupled with density and malleability. It properties can be changed over a wide range. It alloys easily with many of the common element.

NDIAS STEEL SCENARIO:

Indian steel industry has always remained isolated and protected by government, where the steel industry was never expected to generate profit from business, but was expected to provide employment to the unemployed. Presently Indian is operating with open-hearth furnaces. The existing equipment, energy and labour in Indian Steel industry are much low than developed countries.

Indian steel industry generates a significant amount of waste materials, which can cause environmental problems. The four aspects of Waste Management namely-residue reprocess, recycle and recovery do not hold much ground in the Indian steel industry. The Indian companies cannot spend more for pollution control. The energy consumption per ton is 50-10% higher than that of the international norms.

The Indian Steel industries have developed a bit in the recent years. The production is growing on properly. Many techniques are being implemented in the steel industries. The countrys aim is to sell quality steel. The government is also helping the steel industries in this basis. The apparent consumption of steel is shown below.

The development of steel industry in India should be viewed in conjunction with the type and system of government that had been resulting the country. The production of steel in significant quality started after 1990. The growth of steel industry can be conveniently started by dividing the period into pre and post independent era. In the period of pre independence steel production was 1.5 million tons per year, which was raised to 9.0 million tons of target by the seventies. This is the present of the bold steps taken by the government to develop this sector.

WORLDS DEMAND FOR STEEL :

The total demand for steel in world is expected to grow at an annual rate of 1.7% between 1935 and 2000 A.D. as per the study concerned by China economists. According to their estimation total demand in advanced industrial countries on a whole is expected to grow at 0.6% annual rate following a 2.2% rate between 1974 to 1984. Steel demand is less developed countries on a whole is expected to grow at a 5.5% annual rate up to 2000 following a 3.1 annual growth rate between 184-1994. within the controlling plant economy the Eastern Europe erstwhile USSR region may have 0.3% annual steel demand growth. Steel demand in China, North Korea region would grow at 4.0 annual rates up to the end of this century at a 7.5% per annual growth during 1974-1980.

HIGHLIGHTS OF PRESENT STEEL SECONARIO: The world steel shows a low growth demand. There is a threat to steel industry from competitive products like plastics, aluminum etc. Developed countries slowly reduced the production of steel. Developing countries like China are planning to produce steel as much large quantity then of present output of 80 Mt. per annum. Indian consciously and strategically decides to invest into steel production. Preference is given to superior quality products and high value item production. Customer oriented approach in view of product oriented approach Emergence of new technology like scraps preheating GROWTH OF STEEL INDUSTRYThe growth in a chronological order is depicted below:S.No.YearGrowth

11830Osier Marshall Heathler constructed the first manufacturing plant at port-motor in Madras presidency.

21874James Erskin founded the Bengal frame works

31899Jamshediji TATA imitated the scheme for an integrated steel plant.

41906Formation of TISCO.

51911TISCO Started production

61918TISCO was founded

71940Formation of Mysore iron and steel initiated at Bhadravathi in Karnataka

81981-1956First five-years plan- The Hindustan Steel Limited (HSL) was born in the year 1954 with decision of setting up three plants each with 1 million tones in got steel per year at Roiurkela, Bhilai, Durgapur. TISCo started its expansion program.

91956-1961Second five years plan A bold decision was taken up to increase the ingot steel output in India to 6 million tones per year and its production at Rourkela, Bhilai and Durgapur Steel plant started.

101961-1966Third five year plan during the plan the three steel plants under HSL, TISCO & TISCO were expanded*

111964Bokaro Steel plant came into existence

121966-1969Recession period till the expansion programmes were actively existed during this period.

131969-1974Fourth five-years plan - Salem steel plant started. Licenses were given for setting up of many mini steel plants and re-rolling mills government of India. Plants in south are each in Visakhapatnam and Karnakata. SAIL was formed during this period on 24th January 1973 definite shape. At the end of the fifth five year plans the totaled installed capacity fro six integrated plants was up to 10.6 million tons

151979-1980Annual plan. The Erstwhile soviet union agreed to help in setting up the Visakhapatnam steel plant

161980-1985Sixth five-year plan work on Visakhapatnam steel plant stared with a big bang and top priority was accorded to start the plant. Schemes for modernization of Bhilai Steel Plant, Rourkela steel plant, Durgapur steel plant and TISCO were imitated. Capacity at the end of sixth five-year plan from six integrated plants stood 11.50 million tones.

171985-1991Seventh five-year plan expansion works at Bhilai and Bokaro steel plant completed. Prograess of Visakhapatnam steel plant picked up and the nationalized concept has been introduced to commission the plant with 30 MT liquid steel capacities by 1990.

181992-1997Eight five-year plan- The Visakhapatnam steel plant was commissioned in 1992. The cost of plant has become around 8755 crores. Visakhapatnam steel plant started the production and modernization of other steel plants is also duly engaged.

191997-2002Ninth five-year plan- Restructuring of Visakhapatnam steel plant and other public sector undertakings.

STEEL PLANTS WITH FOREIGN COLLOBORATIONSSl. No.PlantCollaboration Capacity of Finished Steel Products

1Rourkela Steel PlantWest Germany

2Bhilai Steel PlantErstwhile USSR

3Durgapur Steel PlantBritain

4Bokaro Steel PlantErstwhile USSR

Sl.No.PlantCollaboration Capacity of Finished Steel ProductionsAnnual Production

1Rourkela Steel PlantWest Germany7,20,000 Tones

2Bhilai Steel PlantErstwhile USSR7,70,000 Tones

3Durgapur Steel PlantBritain8,00,000 Tones

PROBLEMS OF STEEL PLANT INDUSTRYLACK OF RAW MATERIALS:

Non-availability of good quality raw material is another faced by iron and steel industry. The modern gain blast furnace needs high-grade iron ore and good metallurgical coal.

Further the industry is unable to get good quality and manganese is which the principle, raw materials next to iron ore are unfortunately most of our resources of manganese ore are of poor quality besides the non availability of good quality raw material, regular supplies of raw materials are very much handicapped due to the absence of good transport facilities. Another problem faced by the steel industry related to the difficulty in getting zinc supplies for the continuous galvanizing line.

LACK OF TECHNICAL PROBLEMSBhilai had to execute orders for shipment of rails to Iran, South Korea and Malaysia.Because of technical limitations, Rourkela plant is unable to substitute aluminum of zinc for the production of galvanized sheet apart from source internal problems; our technology in the field of steel production is not a developed one when compared to other advanced countries.GOVERNMENT CONTROL AND PRICING POLICYSince 1941, India steel and iron industry was almost completely state regulated. Both prices and distribution of steel were under control of government. The Govt. decided to remove statutory control over the price and distribution of all, but a few categories with effect from 1st March 26, 1964 the Govt. supervise the steel and iron inducted according to the recommendation of Raja Committee. But Raj committee in fixing the steel price didnt regulate the price of raw materials.

CHAPTER III COMPANY PROFILE

Introduction Visakhapatnam Steel Plant (VSP), the first coast based Steel Plant of India is located, 16 KM South West of city of Destiny i.e. Visakhapatnam. Bestowed with modern technologies, VSP has an installed capacity of 3 million Tons per annum of Liquid Steel and 2.656 million Tons of saleable steel. At VSP there is emphasis on total automation, seamless integration and efficient up- gradations, which result in wide range of long and structural products to meet stringent demands of discerning customers within India and abroad. VSP products meet exacting International Quality Standards such as JIS, DIN, and BIS, BS etc. VSP has become the first integrated Steel Plant in the country to be certified to all the three international standards for quality (ISO-9001), for Environment Management (ISO-14001) & for Occupational Health & Safety (OHSAS-18001). The certificate covers quality systems of all Operational, Maintenance and Service units besides Purchase systems, Training and Marketing functions spreading over 4 Regional Marketing Offices, 24 branch offices and stock yards located all over the country.

VSP by successfully installing & operating efficiently Rs. 460 crores worth of Pollution Control and Environment Control Equipments and converting the barren landscape by planting more than 3 million plants has made the Steel Plant, Steel Township and surrounding areas into a heaven of lush greenery. This has made Steel Township a greener, cleaner and cooler place, which can boast of 3 to 4 C lesser temperature even in the peak summer compared to Visakhapatnam City. VSP exports Quality Pig Iron & Steel products' to Sri Lanka, Myanmar, Nepal, Middle East, USA, China and South East Asia. RINL-VSP was awarded "Star Trading House" status during 1997-2000. Having established a dependable export market, VSP plans to make a continuous presence in the export market. Having a total manpower of about 17,600 VSP has envisaged a labor productivity of 265 Tones per man-year of Liquid Steel.

Background & Corporate Plan of VSP Background

With a view to give impetus to Industrial growth and to meet the aspirations of the people from Andhra Pradesh, Government of India decided to establish Integrated Steel Plant in Public Sector at Visakhapatnam (AP). The announcement to this effect was made in the Parliament on 17 April' 1970 by the then Prime Minister of India late Smt. Indira Gandhi. A site was selected near Balacheruvu creak near Visakhapatnam city by a Committee set up for the purpose, keeping in view the topographical features, greater availability of land and proximity to a future port. Smt. Gandhi laid the foundation stone for the plant on 20.01.1971. Seeds were thus sown for the construction of a modern & sophisticated Steel Plant having annual capacity of 3.4 Million Tons of hot metal. An agreement was signed between Governments of India and the erstwhile USSR on June 12th, 1979 for setting up of an Integrated Steel Plant to produce structural & long products on the basis of detailed Project report prepared by M/s M.N. Dastur & Company. A Comprehensive revised DPR jointly prepared by Soviets & M/s Dastur & Company was submitted in Nov' 1980 to Govt. of India. The construction of the Plant started on 1st February 1982. Government of India on 18th Feb'82 formed a new Company called Rashtriya Ispat Nigam Ltd. (RINL) and transferred the responsibility of constructing, commissioning & operating the Plant at Visakhapatnam from Steel Authority of India Ltd. to RINL. Due to poor resource availability, the construction could not keep pace with the plans, which led to appreciable revision of the plant cost. In view of the critical fund situation and need to check further increase in the plant costs, a rationalized concept was approved which was to cost Rs. 6849 crores based on 4th Quarter of 1988. The rationalized concept was based on obtaining the maximum output from the equipment already installed, planned / ordered for procurement and achieving higher levels of operational efficiency and labor productivity. Thus, the plant capacity was limited to 3.0 Million Tons of Liquid Steel per annum. In the process, one of the Steel Melt Shops and one of the mills were curtailed. The availability of resources were continued to be lower than what was planned and this further delayed the completion of the construction of the plant. Finally all the units were constructed and commissioned by July' 92 at a cost of Rs.8529 Crores. The then prime Minister of India Late Sri P. V. Narasimha Rao dedicated the plant to nation on 1st August 1992.

Since Commissioning VSP has already crossed many milestones in the fields of production, productivity & exports. Coke rate of the order of 509 Kg/Ton of Hot metal, average converter life of 3126 heats an average of 23.6 heats per sequence in continuous Bloom Caster. Specific energy consumption of 6.07 G Kal / ton of liquid steel, a specific refractory consumption of 8.94 kg and a labor productivity of 414 Ton / man-year are some of the peaks achieved in pursuit of excellence. Corporate Plan :Vision, Mission ,Objectives(VMO) and core values MISSION

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

VISION

To be a continuously growing world-class company, we shall Harness the 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 a respected corporate citizen, ensure clean and green environment and develop vibrant communities around us.OBJECTIVES Expand plant capacity to 6.3 Mt by 2011-12 with the mission to expand further in subsequent phases as per Corporate Plan. Revamp existing Blast furnaces to make them energy efficient to contemporary levels and in the process increase their capacity by 1 Mt; thus total hot metal capacity to 7.5 Mt. Be amongst top five lowest cost liquid steel producers in the world. Achieve higher levels of customer satisfaction. Vibrant work culture in the organization. Be proactive in conserving environment, maintaining high levels of safety and addressing social concerns.

CORE VALUES

Commitment Customer Satisfaction Continuous Improvement Concern for Environment Creativity & Innovation

MANPOWER OF RINL, VSP (as on 1.07.2011)

As on31.03.2007As on31.03.2008As on31.03.2009As on31.03.2010As on01.07.2011

EXECUTIVES35324201521852635258

WORKS21452584324931533231

PROJECTS225280329327340

MINES54649310494

OTHERS11081273154721101593

NON EXECUTIVES1193711544120071256712500

WORKS1068710387104761116311256

PROJECTS6864635850

MINES281265267262247

OTHERS90182812011404947

TOTAL1657416433172251783017758

WORKS1360813463137251431614487

PROJECTS320353392385390

MINES357350360366360

OTHERS22892267274835142521

Key performance indicators :

Production Performance:

Commercial Performance

YearSales TurnoverDomestic Sales Exports

2006-200791518726424

2007-2008104339878555

2008-2009104581037979

2009-20101063410283351

Table 3.6.a commercial performance(rupees in crores)

Fig. 3.6.b. Commercial Performance since 2006-07

Financial Performance

CHAPTER IVPROMOTION POLICY

INTRODUCTION:

Promotion policy is wide used in the society. Parents their children, teacher evaluate their student and employers evaluate their employee. However, formal evaluation of employees is believed to have been adopted for the first time during First World Ward. At the inlands of Walter Dill Scott the US army man to man rating system for evaluating military personal. Once the employees has been selected, trained the motivated, he is then promoted for his policy. Promotion policy is the step where the management finds out how effective it has been at hiring and placing employees if any problems are identified, steps are taken to communicated to employee and to remedy them. A Promotion policy is a process of evaluating the Promotion policy is a process of evaluating the promotion and qualification of employee according to job and its requirement. It is also known as the process of estimating and judging the value, excellence. Qualities of status of some object person or things. Individually and collectively, it is the part of the other staffing process, like recruitment, selection, placement, etc.

TRENDS IN PROMOTION POLICY:

ItemFormer EmphasisPresent Focus

Terminology Merit-ratingPromotion policy

PurposeDetermine wage increase, promotion, transfer, lay off.Development of the individual, improved job promotion

ApplicationFort rank and file workersFor managerial and technical personnel

Factors ratedPersonal traitsPromotion result or accomplishment

TechniquesRating scales with emphasis upon Mutual goal-setting.

CONCEPT OF PROMOTION POLICY:Promotion evaluation or promotion policy is the process of assessing promotion and progress of employee or of a group of employee on a given job and his potential for future development. In concept of all formal procedure used working organization to evaluate personality, contribution and potential of employees.

The main characteristic of promotion policy is as follows: Promotion policy is the process consisting of series of steps. It is the systematic examination of employee strengths and weakness in terms of jobs. Promotion policy is the scientific or objective study. Formal procedure is used in the study the same approach is adopted for all jobs holders for that result is comparable. It is an organizing or continuous process where in the valuation is arranged periodically according to a definite plan. Main process promotion policy is to secure information necessary for making objective and correct decision on employees

OBJECTIVES OF PROMOTION POLICY:

The main purposes of promotion policy are as follows: To provide a valid data base for personnel decision concerning placements, pay, promotion, transfer, punishment etc. To diagnosis the strength and weakness of individuals so as to identify further training needs. To provide coaching, counseling, career planning and motivation to subordinates. To develop positive, superior-subordinate relations and thereby reduce grievances. To facilitate research in personnel management.

Definition:Promotion evaluation of Promotion policy is the process of assessing the promotion and progress of an employee or of a group of employees on a given job and his potential for future development.

Formal Definition:it is the systematic evaluation of the individual with respect to his / her promotion on the job and his / her potential for development.

According to Flippo

Promotion policy is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to this present job and his potential for a better job.

Characteristics: It is process of consisting of series of steps It is the systematic examination of an employees strengths and weaknesses in terms of his job. It is a scientific and objective study. Formal procedures are used in this study. It is an ongoing or continuous process there in the evaluations is arranged periodically according to a definite plan. The main purpose of promotion policy is to secure information necessary for making objective and correct decisions on employees.

Objectives: To provide feedback to employees so that they come to know where they stand and can improve their job performance. To provide a valid data base for personnel decision concerning placements, pay promotions, transfers, punishments, etc. To diagnose the strengths and weakness of individuals so as to identify further training needs. To provide coaching, counseling, career planning and motivation to subordinates. To develop positive superior subordinates relations and thereby reduce grievances.

Thus, performance appraisal aims at both judgmental and development efforts.

Uses: It provides valuable information for personnel decisions such as pay increase, promotion etc. It helps to judge the effectiveness of recruitment, selection placement and orientation system of the organization. It is useful in analyzing and development needs. It can be used to improve performance though appropriate feedback, working and counseling to employees. It facilitates Human Resource Planning, career planning and succession planning.

A competitive spirit is created and employees are motivated to improve their performance. Process of Performance Appraisal: Establishing performance standards the appraisal process begins with the setting up of criteria to be used for appraising the performance of employees. The criteria are specified with the help of job analysis, which reveals the contents of job. This criteria should be clear, objective and in wiring. Communicating the standards the standards are conveyed to the employees and the evaluators. A feedback regarding the standards should be obtained from the evaluators and the employees for revision or modification. Measuring performance this require choosing the right technique of measurement, identifying the internal and external factors influencing performance and collecting information on results achieved. Comparing the actual with the standards actual performance is compared with the predetermined performance standards. Such comparison will reveal the deviation, which may be positive or negative. Discussing the appraisal The results of the appraisal are communicated to an discussed with the employees. Along with the deviations, the reason behind them are also analyzed and discussed. Such discussion will enable the employee to know his weaknesses and strengths. Taking corrections through mutual discussions with employees, the step required to improve performance are identified and initiated. Training, coaching, counseling, etc., are examples of corrective actions that help to improve performance. METHODS OF PERFORMANCE APPRAISALSeveral methods and techniques are used for evaluating employee performance. These may be classified into Traditional and modern methods.Traditional Methods: Ranking Method: is technique, evaluator assigns relative ranks to all employee performance. These may be classified into Traditional and Modern methods.

Man-to-man compression methods: In this method, certain factors are selected for the purpose of analysis and the rater for each factor designs a scale. A scale of man is also created for each selected for each factor. Then each man to be rated is compared with the man in the scale, and certain scores are awarded to him. In other words, a whole man is compared to a key man in respect of one factor at a time. This method is used in job evaluation and is known as the factor comparison method.

Paired comparison method This is a modified form of man to main ranking. Herein, each employee is compared with all others in pairs on at a time. The number of times an employee is judged better than other determines his rank. Comparison is made on the basis of overall performance.

Forced distribution method In these techniques the rater appraises an employee according to a pre-determined distribution scale. It is assumed that it is desirable to rate only two factors by this method that is job performance and promo ability. For this purpose a five poking performance scale is used without any descriptive statement & employees are placed between two extremes of good and bad performance.

Graphic rating scales methods It is a numerical scale indicating different degrees of a particular train. The rater is given a printed from for each employee to be rated. The form contains several characteristics relating to the personality and performance of employee. Intelligence, attitude, quality of world, leadership skills judgment, etc. are some use characteristics. This method is widely used as it is easy to understand. It allows a statistical tabulation of scores and, a ready comparison of scores among the employees is possible. The approach is multi-dimensional as several significant dimensions of the job can be considered in evaluation.

Critical incident method In this method the superior keeps a written record or critical (either good or bad) events and how different employees behaved during such events. The rating of the employee depends on the positive or the negative behaviors during these events. These critical incidents are identified after though study of the job and discussions with the staff. This method helps to avoid vague impression and general remarks as the rating is based on actual records of behavior.

Group appraisal method Under this method, a group of evaluators assess employee. This group consists of the immediate supervisors of the employee, other supervisors having close contact with the employers work, head of the department and a personnel expert. The group determines the standards of performance for the job, measurers actual performance of an employee, analysis the causes of poor performance and offers suggestions for improvements in future.

Grading method Under this method, the rater considers certain factors, and marks them accordingly to a scale. The selected factor may be analytical ability, co-operation, dependability self-expression, job knowledge. They may be grades as A outstanding B very good, C good/average, D fair, E poor. The actual performance of an employee is then compared with these definitions and he is allotted the grade which best described his performance.

Forced Choice Distribution method In this method, the rating elements are several of pairs phrases of adjectives relating to job proficiency or personal qualification. The rater is asked to indicate which of the phrases is most and least descriptive of the employee. Checklist method In this method, series of questions are presented concerning and employees behavior. Here rater does not evaluate employee performance; he supplies reports about it and the personnel department does the final rating.

Free Essay Method In this method, the supervisor makes a free form, open-ended appraisal of an employee in his own words and puts down his impression about the employee. The description is always as factual and concrete as possible.

Filed review method In this method, trainer employee from the personnel department interviews line supervisors to evaluate respective subordinates. The supervisor is required to give his opinion about the progress of his subordinates and his plan of action in cases requiring for consideration.

The tradition methods given above focus on the traits of an employee than an his job performance, in the absence of predefined performance criteria or standards, the personal bias or subjectively of the evaluator affects the rating. This approach caused the following responses: The very nature of the appraisal system led to criticism Criticism exercised a negative impact on goal attainment Criticism increased antagonism and defensiveness among employees resulting in inferior performance. Managers generally are not qualified to assess personality traits. Some managers discourage good performances by over emphasizing shortcomings and almost neglecting good work.In order to overcome these weaknesses some new techniques of performance appraisal have been developed.Modern Methods: Assessments center method - An assessment center is a group employee drawn from different work units. These employees work together on assignments similar to the one they would be handlings when promoted. The most important feature of the assessments center is job-related simulations. Evaluators observe and rank the performance of all participants. This group evaluates all employees are both individually and collectively by using simulations techniques like role playing, business games and in-basket exercises? Employees are evaluated on the basis of job related characteristics considered important for job success. The evaluators prepare a summary report and feedback is administered on a face-to-face basis to the employees who ask for it. An assessment center generally measures interpersonal skills, communicating ability to plan and organize, etc. Assessments centers are not only methods of appraisal but help to determine training and development needs of employees and provide data for human resources planning.

Human resource accounting method Human resource are a valuable asset for any organization. This asset can be valued in terms of money. When competent, and well-trained employees leave and organization the human asset ids decreased and vice versa. Under the this method performance is judged in terms of costs and contributions of employees. Costs of human resources consists of expenditure on human resources planning, recruitment, selection, induction, training, compensation, etc. contribution of human resources is the money value of labor productivity of value added by human resources. Difference between cost and contribution will reflect the performance of employees. This method is still in the transitory stage and is, therefore, not popular at present.

Behavioral Anchored Rating Scales (BARS) - This method combines graphics rating with critical incidents method. BARS are decryptions of various degrees of behavior relating to specific performance dimensions. Critical areas of job performance and the most effective behavior for getting results are determined in advance. The rater records the observable job behavior of an employee and compares these observations with BARS. In this way an employees actual behavior is judged against the desired behavior. This steps involved are:-

Identify critical incidents Persons with knowledge of the identify job to be appraised describe specific examples of both effective and ineffective job behaviors.

Select performance dimensions - The persons then cluster the behavioral incidents into a smaller set (usually 5-10) of performance dimensions.

Retranslate the incidents Another group of knowledgeable persons assign each incident to the dimension that it best describes. Incidents for which there is less than 75% agreement with the first group are not retranslated.

Assign Scales to incidents - The second group rates each incident on a 7 or 9 point scale. Rating is done on the basis of how well the behavior described in the incident represents the performance on the appropriate dimensions. Means (average) and standards deviations are then calculated for the scale values assigned to each incident.

Develop final instrument A subset of the incidents that meet both the retranslation and standard deviation criteria is used a behavioral anchor for the final performance dimensions. A final BARS instrument typically comprises a series of vertical scales that are endorsed by the include incidents. Each incident is positioned on the scaled according to its mean value.

360 degrees performance appraisal - This is a new concept in performance appraisal, where the feedback is collected form all around the employee, the superiors, the subordinates, the peer group, and the customers. The evaluation is very comprehensive in terms of the employees skills, Abilities, styles, and job-related competencies. This system has the following advantages: Higher validity and reliability of the evaluation Self evaluation by the employees gets compared with the perception of others. Helps in maximizing employee potential in the face of challenges.ADVANTAGES: Ratings are likely to be accurate because these are done by experts. The method is more reliable and valid as it is job specific and identified observable and measurable behavior. Ratings are likely to be more acceptable due to employee participation The use of critical incidents is useful in providing feedback to the employee being rated.

Limitations: It is very consuming and expensive to develop BARS for every job. Behaviors used are more activity oriented than results oriented

Appraisal by result or MBO (Management by Objectives) The concept of management by objectives was developed by Peter Drucker in 1954. Since the MBO has become an effective and operational technique of performance appraisal and a powerful philosophy of managing.

CHAPTER V PROMOTIONS POLICY AT RINL-VSPPROMOTION POLICY AND RULES FOR EXECUTIVES1.0 INTRODUCTIONRINL/VSP has a vision to emerge as an excellent organisation in the comity of steel producers of the country. This calls for dynamic organisation structure responding swiftly and flexibly to the fast changing business environment. In promoting and sustaining such a dynamic structure, RINL/VSP is committed to provide professional satisfaction to its executives through clear-cut responsibility and accountablility. In this background, it is essential to have a well laid-out policy framework which integrates individual aspirations for growth with the functional needs of the organisation, and fosters a congenial working environment to build up synergy in the organisation.2.0 OBJECTIVES2.1 To man functional positions in the company with competent personnel having growth potential.2.2 To infuse a sense of competitiveness amongst the executives to excel in their performance.2.3 To link the career growth of executives with their performance.2.4 To provide positional growth with specific responsiblility and definite accountability.2.5 To strengthen frontline executive base by broadbanding of the grades.2.6 To promote and sustain a flatter structure by providing growth without building up hierarchy.2.7 To spell out clearly the principles which govern the system of promotion of executives in thecompany.3.0 SCOPE3.1 This policy and rules shall cover all promotions within the executive posts and will be applicable to all regular executives of the company (except to the extent expressly excluded in this policy and rules) including out-station units, offices and mines.3.2 Deputationists, persons appointed for a limited tenure on adhoc basis, superannuated personsreappointed in the Company and executives engaged on contract or temporary basis shall not be covered under this Policy and Rules.1Revised vide Personnel Policy Circular No.16/97 dated 7.11.1997.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.1.23.3 This Policy and Rules shall not cover promotions from non-unionised supervisory cadre to executive cadre and for growth thereafter, which are being governed by a separate policy.Clarification: As at 6.1 Note-(a)3.4 This Policy and Rules shall also not cover promotions from E-8 to E-9 grade, for which a separate policy exists.4.0 EXECUTIVE POSTS/GRADES4.1 1The executive posts/grades in the Company which are covered under this Policy and Rules are as follows :Scale Existing Scales Scale Revised Scales of payCode Code w.e.f. 1.1.1997Rs . Rs .E-0 3700-175-7025 E-0 8600-250-14600E-1 4500-200-5500-250-8250 E-1 10750-300-16750E-2 5650-250-6650-275-9400 E-2 13700-350-18250E-3 6600-300-9600 E-3 16000-400-20800E-4 7500-300-9900 E-4 17500-400-22300E-5 7950-300-10050 E-5 18500-450-23900E-6 8400-300-10200 E-6 19000-450-24400E-7 9000-300-10500 E-7 19500-450-25350E-8 9500-400-11500 E-8 20500-500-265004.2 All promotions made in accordance with this Policy and Rules will be from onescale of pay to the next, without skipping any scale of pay.5.0 PROMOTION SYSTEMS5.1 Promotions from E-1 to E-2, E-2 to E-3 and E-3 to E-4 grades will be effected on the basisof merit of the eligible executives in accordance with the rules prescribed. For this purpose,the posts in these 4 grades will be pooled together and operated.1Amended vide Office Order No.PL/RR/W(01)/2001 dated 29.9.2001.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.1.35.2 Promotions from E-4 to E-5 grade and above in respect of eligible executives will depend onavailability of vacancies in the next higher grades in the respective LOPs and based on the needto fill up such vacancies.5.3 Promotions will be based on the assessed levels of performance of the executives in terms ofcredit points in accordance with the performance appraisal system of the Company.6.0 ELIGIBILITY CRITERIAFor consideration for promotion, an exectutive has to fulfil the following eligibility criteria(a) Minimum eligibility period(b) Minimum performance criteria(c) Should be within the zone of considerations, where applicable.Note: The management may prescribe qualifications for positions in the higher grades (E-5 andabove) and certain specialized/statutory posts. Only those executives who possess theprescribed qualifications and fulfil the eligibility criteria as above, will be considered for suchposts.6.1 MINIMUM ELIGIBILITY PERIODThe executive should fulfil the following minimum eligibility period in the respective LOPs:For promotions from E-1 to 3 years serviceE-2, E-2 to E-3, E-3 to E-4 in the next belowE-4 to E-5, E-5 to E-6, E-6 to E-7 gradeE-7 to E-8 2 years servicein the next below gradeNOTE:(a) Executives recruited as Management Trainees in E-0 grade as per the Management TraineeScheme of the company will be placed in E-1 grade, from the date of their satisfactorycompletion of training, as per the training completion procedure.This, however, is not applicable to executives appointed in E-0 grade otherwise than asManagement Trainees of the Company. Their placement in E-1 grade and growth thereafterwill be regulated as per rules/procedure prescribed separately.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.1.4Clarifications: given vide PL/RR/3(1)/98, Dated 08.01.98.i) The executive employees who have been promoted from the Non-Unionised Supervisorycadre to Executive cadre will be required to put in two years of service in E-0 grade forbeing considered for placement in E-1 grade as provided under the Promotion Policy forNon-Unionised Supervisory cadre and Executive cadre, subject to other eligibility criteriaas laid down.ii) Seniority in E-1 grade and eligibility for promotion to E-2 grade will be counted from thedate of entry into E-1 grade i.e. 3 years in E-1 grade, subject to fulfilling other criteria.iii) For promotions from E-2 to E-3 and thereafter, they shall be governed by the Policy andRules for Executives issued vide circular No. 16/97 dated 07.11.1997, as amended fromtime to time.(b) The period of training as Management Trainee in E-0 grade will be taken into acount for thepurpose of computation of eligibility period in E-1 grade, subject to the condition that theexecutive has worked for a minimum of 2 years after placement in E-1 grade.(c) Where an executive avails of extra-ordinary leave exceeding a period of three months in oneor more spells during the eligibility period, the total period of such extra-ordinary leave will beexcluded while computing the eligibility period.(d) The period of study leave granted by the Company will be taken into account in determiningthe minimum eligibility period for promotion, subject to the condition that the executive hascompleted the course satisfactorily.6.2 MINIMUM PERFORMANCE CRITERIA(a) An executive should secure a minimum of 150 credit points out of a combined total of 300points of the three preceding Annual Performance Appraisal Reports.(b) In case of executives recruited as Management Trainees where only two Annual AppraisalReports may be available, the marks obtained by them during training will be taken into accountin lieu of the third report. For this purpose, the aggregate percentage of marks obtained in theexamination including viva-voce etc., at the end of the training period will be converted on proratabasis to a maximum of 100 points.6.3 VIGILANCE & DISCIPLINARY CLEARANCEThe executive should be clear from vigilance and disciplinary angles in terms of PersonnelPolicy Circular No.PL/RR/3(10) dated 23.11.83 read with Personnel Policy Circular No.PL/RR/3(5)/97 dated 25.3.97.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.1.56.4 ZONE OF CONSIDERATIONFor consideration for promotion from E-4 to E-5 grade and above, the Executive should bewithin the zone of consideration based on relative merit in the LOP, as provided in clause 7.2.3.7.0 METHODOLOGYAll promotions are promotions by selection based on merit as reflected in the AppraisalReports and the potential assessment by DPCs, as prescribed hereunder:7.1 Promotions from E-1 to E-2, E-2 to E-3 & E-3 to E-4 grades :7.1.1 Promotions from E-1 to E-2, E-2 to E-3 & E-3 to E-4 grades shall be delinked from vacanciesand linked to the prescribed performance of the executives as assessed in their annualperformance appraisal reports.7.1.2 Promotions within the cluster i.e.E-1 to E-2, E-2 to E-3 & E-3 to E-4 grades will be conductedtwice in a year.7.1.3 Personnel Deptt. shall prepare list of executives in E-1, E-2, E-3 grades who fulfil the eligibilitycriteria as prescribed in clauses - 6.1, 6.2 and 6.3. Those executives who do not fulfil theprescribed eligibility criteria shall not be considered for promotion ab initio.7.1.4 Personnel Deptt. will also prepare separately the list of such executives whose names havenot been included in the merit list and who are not eligible to be considered for promotion onaccount of not fulfilling the criteria under clauses - 6.1, 6.2 and 6.3 and place the same beforethe Departmental Promotion Committee (DPC) for its information and perusal.7.1.5 From out of the list of executives prepared as per caluse - 7.1.3,- executives having three years of service in the next below grade and 60% of creditpoints in the preceding three appraisal reports, i.e. a total of 180 points out of 300, subjectto a minimum of 60% in atleast two appraisals including the latest one, shall be promoted.- executives having four years of service in the next below grade and 55% of credit pointsin the preceding four appraisal reports, i.e. a total of 220 points out of 400, subject toa minimum of 50% in atleast two appraisals including the latest one, shall be promoted.- executives having five years of service in the next below grade and 50% of credit pointsin the preceding five appraisal reports, i.e. a total of 250 points out of 500, shall bepromoted.7.1.6 The executives promoted shall be entitled for monetary benefit from the date of assumptionof charge only.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.1.67.2 PROMOTION FROM E-4 TO E-5 AND ABOVE :7.2.1 Promotions from E-4 to E-5 and above will be vacancy based and will be effected only onavailability of vacancies in the respective LOPs and based on the need to fill up such vacancies.7.2.2 Personnel Department will draw up lists of eligible executives in respective LOPs on the basisof merit as determined from the total credit points of Annual Appraisal Reports of thepreceding 3 years. Against each vacancy, not more than 5 eligible executives will beconsidered from the list in the descending order of merit. However, in case of a tie betweenthe last executive in zone of consideration and the next below executive(s) as a result of theirobtaining equal number of credit points, all the executives involved in the tie will be consideredalong with other eligible executives by the DPC. In such an event the number of executivesto be considered for promotion against a vacancy may exceed 5.7.2.3 List of eligible executives falling within the zone of consideration drawn up on the basisprovided in clause -7.2.2 will be placed before the Departmental Promotion Committee(DPC). The DPC will assess the suitability of the executives based on the performance asrated in the annual performance appraisals, service in the grade and the potential of theexecutive as assessed by DPC.The assessment of the potential will be done as per the format enclosed at Annexure-I. Forthe purpose of determining the total marks obtained by the eligible executives, the performance,service in the grade and potential will carry the following marks :Parameter MarksPerformance 50Service 20Potential 30- Performance to be counted in terms of average credit points of the preceding 3 years.- Service weightage will carry a total of 20 marks with each month beyond the eligibleperiod of service in the grade having a credit of 0.55 marks.- A minimum of 18 marks of 30 in potential assessment will be required for beingpromoted.7.2.4 The DPC will draw up select list of the promotable executives in order of merit on the basisof total marks obtained, subject to the number of vacancies. Potential assessment will be madeby the DPC by way of interview in case of promotion from E-4 to E-5 and E-5 to E-6. Therewill, however, be no interview for promotion from E-6 to E-7 and E-7 to E-8 grades and thePERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.1.7DPC will assess the potentiality based on performance as reflected in the Appraisal Reportsand the record of the service.8.0 DEPARTMENTAL PROMOTION COMMITTEES (DPCs)8.1 The DPC for consideration of promotions from E-1 to E-2, E-2 to E-3, E-3 to E-4 grades willconsist of :(a) Conerned Executive Director/General Manager(b) Concerned HOD(c) A representative of Personnel Department.8.2 The DPC for consideration of promotions from E-4 to E-5 grades will consist of:(a) Conerned Functional Director(b) General Manager (Personnel)/A representative of Personnel Deptt.(c) Concerned HOD8.3 The DPC for consideration of promotions from E-5 to E-6 and E-6 to E-7 grades will consistof:(a) All Functional Directors(b) General Manager (Personnel)8.4 The DPC for consideration of promotions from E-7 to E-8 grades will consist of:(a) Chairman-cum-Managing Director(b) Director (Personnel)(c) Other Functional Directors8.5 Chairman-cum-Managing Director shall have discretion to nominate additional members onthe DPCs9.0 LINES OF PROMOTION (LOPs)9.1 Lines of Promotion shall be as decided by the Management. However, the LOPs will be sodrawn that while promotions upto the level of E-5 may be effected within the departments/units, flexible/broader lines of promotion to E-6 level and above is ensured.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.1.89.2 However, the Management reserves the right to fill up vacancies irrespective of the LOPson inter-disciplinary or inter-departmental basis by promotion, transfer, or circulation as maybe decided by the Management. Vacancies may also be filled up by open recruitment at thediscretion of the Management.10.0 ABOLITION OF SENIORITY LISTSThis promotion policy does not envisage promotions based on .Seniority.. Therefore, noseniority lists will be maintained in the Company for the purpose of promotion. Instead ,promotions will be based on LOP-wise merit lists.11.0 PROBATIONThe executive promoted under this Policy and Rules will be kept on probation for a minimumperiod of six months. Confirmation/extension of probation will be regulated as per Rulesprescribed in this regard.12.0 PROMOTION OF EXECUTIVES ON DEPUTATION TO OTHERORGANISATIONS12.1 An executive of the Company on deputation to another organisation may be considered forpromotion in the Company during the period in accordance with the selection methodologyprescribed in this Policy and Rules.12.2 In case of an executive who is not on deputation to another organisation but merely retaininglien in the Company, he would not be considered for promotion during the period. He wouldmerely retain the option to return to his substantive post for the duration of lien.13.0 PROMOTION OF EXECUTIVES PENDING ENQUIRY/DISCIPLINARYPROCEEDINGSThe precedure for dealing with promotion/confirmation of executives pending investigation/disciplinary proceedings etc. is given at Annexure-II.14.0 RESERVATIONS FOR SCs & STsReservations/concessions for SCs and STs will be provided as per Presidential Directives onthe subject.Note: Clause 14.0 will be applicable subject to OM No.36012/23/96- Estt. (Res), dated22.07.1997 issued by the Ministry of Personnel, Public Grievances & Pensions, asgiven at Annexure- III.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.1.915.0 ISSUE OF CLARIFICATIONS ETC.Clarifications, guidelines, instructions, procedures etc. under this Policy will be issued by theRules Section on approval of CMD.16.0 POWER TO RELAXThe Chairman-cum-Managing Director, RINL, may at his discretion, relax the eligibilitycriteria etc., in exceptional cases for reasons to be recorded.17.0 TENURE17.1 This Policy and Rules shall come into force with immediate effect and shall remain in forcefor a tenure as may be decided by the Management.17.2 The Management reserves the right to withdraw, review, alter and/or amend this Policy andRules as may be deemed necessary from time to time.17.3 This Policy and Rules shall supersede the earlier policy, rules, regulations, orders andinstructions issued on the subject, except to the extent expressly provided in this Policy andRules.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.1.10ANNEXURE - 1POLICY AND RULES FOR PROMOTION OF NON-EXECUTIVESThe policy and rules for promotion of Non-executive employees was introduced in pursuance of thememorandum of settlement dt.25.01.90 and subsequently, modifications and/or incorporations of thepolicy have been made vide memoranda of settlement dt.05.02.93, 18.05.94 and102.08.2000. The policy as given below includes all such changes made through the abovememoranda of settlement.1.0 OBJECTIVES :1.1 To boost and sustain the morale of the VSP employees in order to enable them to make alloutefforts for achieving the Mission and Objectives of the Organisation by working at peaklevels of efficiency.1.2 To ensure optimum utilisation of manpower with a view to achieving the productivity levelof not less than 230 tonnes per man year.1.3 To man non-executive positions in the Company with competent personnel having growthpotential and to utilise their capability to the maximum.1.4 To improve job satisfaction among non-executive employees through job enlargement,training, etc., and to encourage them to work with enriched job contents and accept flexiblework practices for optimum utilisation of manpower.1.5 To recognise and reward good performance consistent with the needs of the organisation.1.6 To provide for a system which is conducive to equity, fairness and objectivity in mattersconcerning promotions of non-executives.1.7 To provide mechanics for determining the suitability of non-executives for promotion on astandard pattern and in an objective manner.2.0 SCOPE :2.1 The policy and rules will be applicable to all the regular non-executive employees of RashtriyaIspat Nigam Limited, including the employees working in out-station Units, Offices andMines.1Amendement vide Memerandum of Settlement dated 02.08.2000 will be effective from 30.06.2000.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.4.22.2 'Employee' means all non-executives who are appointed on a regular basis and does notinclude Trainees/Apprentices and persons appointed on casual or temporary basis orappointed on tenure basis after retirement, etc.3.0 CLUSTERS(CADRES) :3.1 For the purpose of promotion, non-executive employees in different pay scales have beengrouped in the following clusters/cadres:3.1.1 1The work grades will be grouped into the following clusters/cadresCluster GradesA S-1, S-2, S-3, S-4, S-5 & S-6`A' Sub-cluster S-4, S-5 & S-6B S-3, S-4, S-5, S-6, S-7 & S-8C S-6, S-7, S-8, S-9(P) & 2S-10(P)3.1.2 3Ministerial GradesS-6, S-7, S-8, S-9(P) & 2S-10(P)3.1.3 `Personal grade' will be retained in S-9(P) for cluster `C' only.3.1.4 With the cadre approach, the job will be understood in a composite manner so that flexibilityof employees within the cadre becomes viable and optimum utilisation of manpower isachieved.4.0 SYSTEMS OF PROMOTION :4.1 There will be two systems of promotion for non-executives as follows:a. Promotion within the Cadreb. Promotion between the Cadres1Incorporated vide Tri-partite settlement dt.02.08.2000.2Incorporated vide IOM No.PL/RR/3(6)/2004/109 dated 9.2.2004.3Amended vide PP Circular No.5/2001, dated 18.10.2001.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.4.34.2 Promotion from one scale of pay to another within the cadre including "Personal grade" willbe delinked from vacancies. An employee can be considered for promotion on completionof prescribed years of qualifying service and subject to fulfilling other eligibility criteria.4.3 Promotion from one cadre to another will depend on the availability of vacancies in the highercadre in the prescribed LOP.4.41 As a special case, `A' -Sub cluster will be created with maximum strength of 20% of the totalmanpower in `A' -cluster in each department in technical stream as on 30.6.2000. Employeesin S-4 grade with 2 years of service in Cluster `A' subject to passing of job test, interview andpossessing satisfactory ACRs for the preceding 2 (two) years and fulfilling such otherconditions as may be prescribed, will be considered for placement on horizontal basis in`A'-Sub cluster. However, the vacancies will be filled up in phases.4.51 On placement in `A'-sub cluster, they will be designated as Helper-cum-Jr. Technician/Helper-cum-Jr. OCM, etc. Such employees will continue to perform existing unskilled jobsand will also carry out skilled jobs as and when assigned.5.0 ELIGIBILITY AND CONDITIONS FOR PROMOTION :5.1 Employees will be considered for promotion subject to the following conditions:a. that the employee has earned promotable gradings (minimum 'C', i.e., Satisfactory) inthe Annual Confidential Reports(ACR)/Appraisal Reports for at least two years,including the last year, out of the reports for the preceding three consecutive appraisalyears and no adverse entry has been made in his Annual Confidential Report (ACR)/Appraisal Reports. Any adverse entry in the ACR/Appraisal Report for a year notcommunicated to the employee concerned by 31st May of the following year will not betaken into account and will not adversely affect his promotion.1Incorporated vide Tripartite Settlement dated 02.08.2000.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.4.4b. that the employee has fulfilled the following eligibility criteria.Cluster/ Length Whether Minimum Educational Trade test/Cadre of service vacancy qualification Job test/in the linked Writtengrade test etc.1WORKS GRADESA S-1 TO S-2 4 years No As prescribed at the Refer NB:5time of entryA S-2 to S-3 4 years No --- ---A S-3 to S-4 4 years No --- ---A S-4 to S-5 4 years No --- ---A S-5 to S-6 4 years No --- ---A - Sub Cluster(Cluster A to A Sub-cluster)S-4 to S-5 4 years Yes As prescribed in 4.4 &4.5 aboveS-5 to S-6 4 years No --- ----B S-2 to S-3 4 years Yes For employees in S-2 grade Should pass the(cluster A to who do not possess the Trade test/Jobcluster B) qualification of Matriculation, test/written testa written examination of as prescribed.appropriate standard will beconducted by the Management.Those who pass in the examinationwill be considered forpromotion to S-3 grade.Matriculates will not be requiredto appear at this examination.NB: An employee who passesthis examination once will not berequired to appear at thisexamination again.1Incorporated vide Tripartite Settlement dated 02.08.2000.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.4.5Cluster/ Length Whether Minimum Educational Trade test/Cadre of service vacancy qualification Job test/in the linked Writtengrade test etc.B S-3 to S-4 4 years No - do- --B S-4 to S-5 4 years No - do - --B S-5 to S-6 4 years No - do - --B S-6 to S-7 4 years No - do - --B S-7 to S-8 5 years No - do - --C S-5 to S-6 4 years Yes Matriculation + ITI Should pass the(cluster B to or Graduation Trade test/ Job test,cluster C) written test as prescribed.C S-6 to S-7 4 years No -do- ---C S-7 to S-8 5 years No -do- ---C S-8 to S-9(P) 5 years No -do- --1C S-9(P) to S-10(P) 5 years No -do- --2MINISTERIAL GRADES :S-6 to S-7 4 Years No Graduation ---S-7 to S-8 5 years No -do- ---S-8 to S-9(P) 5 years No -do- ---1S-9(P) to S-10(P) 5 years No -do- ---NB-1 : In respect of employees who have been directly inducted in S-2 grade aftersuccessful completion of their training as Asst. Technician Trainees, the eligibilityperiod for promotion to S-3 grade shall be 3 years of service in S-2 grade. Also, thestipulation of minimum qualification of Matriculation for promotion to Cluster B willbe relaxed in respect of such employees.1Incorporated vide IOM No.PL/RR/3(6)/2004/109 dated 9.2.2004.2Amended vide PP Circular No.5/2001, dated 18.10.2001.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.4.6NB-2 : The minimum educational qualification of Matriculation for promotion from S-2 toS-3 grade, i.e. from Cadre A to Cadre B, may be relaxed by Management inexceptional cases.NB-3 : For purposes of promotion within Cadre B , the stipulation of minimum qualificationof Matriculation will be relaxed in respect of employees who have been recruiteddirectly in Cadre B with a qualification lower than Matriculation.NB-4 : The standards and procedure of trade test/job test / written test will be prescribedNB-5: For promotion within cadres in the same line of promotion no trade test/job test hasbeen prescribed. However, in specific cases where job requirements demand,suitable test(s) may be prescribed.NB-6 : For the purpose of promotion within the Ministerial Cadre, the stipulation of minimumqualification of Graduation will be relaxed in respect of the employees in SL-1/SL-2/SL-3 and SL-4 grades who are in position as on date of the introduction of thispromotion policy.NB-71:DELETEDNB-81:DELETEDNB-91: Employees in `A' Sub-cluster will be eligible for promotion to Cluster `B' onavailability of vacancies in Cluster`B' and subject to possessing prescribed qualificationand fulfilment of other conditions as prescribed.However, Note NB-1 of Memorandum of Settlement dt.25.1.1990 will not beapplicable for employees in `A' Sub-cluster.NB-101:On availability of vacancies and subject to possessing prescribed qualifications andfulfilment of other conditions, employees in cluster `A' and `A'-Sub cluster promotedto the positions in cluster`B' will be placed in parallel grade of `B' cluster withprotection of grade seniority. However, their cluster seniority for the purpose ofinter-cluster promotion will be reckoned from the date of entry into `B' cluster.NB-111:On availability of vacancies and subject to possessing prescribed qualifications and1Incorporated/deleted vide Tripartite Settlement dated 02.08.2000.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.4.7fulfilment of other conditions, employees in cluster `B' promoted to the positions incluster `C' will be placed in parallel grade of `C' cluster with protection of gradeseniority. However, their cluster seniority for the purpose of inter-cluster promotionwill be reckoned from the date of entry into `C' cluster.c. The existing provisions regarding disqualification of employees for promotion/confirmationduring the pendency of disciplinary/vigilance cases and thereafter, as contained in thePersonnel Policy Circular No.10/86 dated 29th April/15th May, 1986 shall continue.5.21 The past cases of promotions of employees from cluster `A' to cluster `B' and from cluster`B' to cluster `C'will also be regulated as per NB-10 & NB-11.5.31 Not less than 50% of vacancies in `B'/`C' clusters will be filled up through induction asJr. Trainees/Sr. Trainees respectively.6.0 METHODOLOGY FOR PROMOTION :6.1 Employees fulfilling the eligibility criteria as prescribed in clause 5.1, i.e., those who havecompleted the prescribed minimum period of service in a grade, possess the minimumeducational qualifications prescribed and have passed the prescribed trade test/job test/written test wherever prescribed will be considered for promotion, within or between thecadres, by a Departmental Promotion Committee constituted for the purpose. TheDepartmental Promotion Committee shall interview the eligible candidates and makerecommendations about their suitability or otherwise for promotion. The promotions will beeffected based on the recommendations of the Departmental Promotion Committee.6.2 The ratio of vacancies and the number of eligible persons in the LOP to be considered forpromotion will be 1:3 and the Departmental Promotion Committee particulars will beprepared accordingly.7.0 PROMOTION TO EXTENDED CADRE :7.1 Where an employee in Cluster `C' has put in the prescribed number of years of service inthe highest grade , but cannot be considered for promotion for want of a vacancy in the highercadre, he will be considered for promotion to the 'Personal Grade, i.e., in the personal gradeof S-9(P), 2and on completion of 5 years of service in S-9(P) grade, he will be consideredfor promotion to S-10(P) grade, provided he has earned promotable gradings in the ACRs/1Incorporated vide Tripartite Settlement dated 02.08.2000.2Incorporated vide IOM No.PL/RR/3(6)/2004/109 dated 9.2.2004.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.4.8ARs and is clear from disciplinary/vigilance angle, as prescribed in Clauses 5.1(a) and (c)respectively. On such promotion to the "Personal Grade", there will be no change in thedesignation and duties.7.21 DELETED8.0 VALIDITY OF TRADE TEST/JOB TEST/WRITTEN TEST :8.1 An employee who passes a Trade test/ Job test/ Written test within his LOP conducted forthe purpose of promotion will not be required to appear at a test again for a period of 18 monthsfrom the date of the last test.8.2 An employee who fails in the Trade test/ Job test/ Written test conducted for the purpose,of promotion will be given an opportunity after 6 months from the date of last test held, if avacancy becomes available to be filled up.9.0 TRAINING :9.1 Employees shall avail of all opportunities for training for updating of skills, growth andadvancement including shop-floor training programme(s).9.2 Appropriate need-based training packages for skill development will be introduced withspecial emphasis on employees in unskilled categories.10.0 EFFECTIVE DATE OF PROMOTION :10.1 The promotions as per these rules will be effected twice in a year i.e., from 30th June and31st December.10.2 Persons so promoted will count their seniority from the effective date of promotion, i.e. 30thJune or 31st December as mentioned in the promotion order, but the financial benefits willaccrue to them from the date of assumption of charge of the higher post.10.3 Date of annual increment will be decided with reference to the effective date of promotionand/or as per the rules applicable from time to time.1Deleted vide Tripartite Settlement dated 02.08.2000.PERSONNEL MANUALRASHTRIYA ISPAT NIGAM LTD. 2.4.911.0 JOB FLEXIBILITY :11.1 With the cadre approach, the jobs will be understood in a composite manner so that flexibilityof employees within the cadre becomes viable and optimum utilisation of human resourcesis achieved.11.2 On promotion, employees will be suitably designated in their lines of promotion keeping inview the requirements of work.12.0 CONSEQUENCES OF REFUSAL :12.1 If an employee does not appear in the Trade test/Written test/Job test, etc., for which he hasbeen duly informed in writing, he will not be considered for promotion for a period of 6 monthsfrom the date of holding the said test.12.2 In case an employee refuses to accept promotion, he will not be considered for suchpromotion for a period of one year from the date of last such promotion which was refused.13.0 RESERVATION OF VACANCIES FOR SC/ST :13.1 Reservation of posts for SC/ST candidates shall be provided in respect of vacancy basedpromotions in accordance with the Presidential Directives and instructions of the Governmentin this regard issued from time to time.Note: Clause 13.0 will be applicable subject to OM No.36012/23/96- Estt. (Res), dated22.07.1997 issued by the Ministry of Personnel, Public Grievances & Pensions, asgiven at Annexure- I.14.0 TENURE :14.1 This Policy and Rules will come into force with effect from 01-01-1990.14.2 The Management may at its discretion relax the eligibility criteria in exceptional cases, forreasons to be recorded.14.3 The Management will issue such clarifications, procedures, instructions, guidelines, etc., asdeemed fit by it for implementing this policy and rules.14.4