A STUDY ON

PROMOTION POLICY WITH REFERENCE TO RINL, VSP

AT

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. RADIKA
Senior Manager (Personnel H.R DEPT)
RINL, VISAKHAPATNAM STEEL PLANT


Facilitated by HRD Deptt of RINL/VSP
Visakhapatnam

O.R.Mohan Rao M.L.Srinivasa Varma
AGM(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: VISAKHAPATNAM
Date: 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 I Introduction



CHAPTER II Industry Profile


CHAPTER III Company Profile


CHAPTER - IV Promotion Policy

CHAPTER V Promotion Policy at
Visakhapatnam Steel Plant Ltd.,


CHAPTER VI Analysis 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.

OBJECTIVES
The 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 Goals
For Programmes
Develop Policies
For Feeding back Data


Obtain Top
Management Design physical
Commitment Facilities Conduct
Programme

Do Detailed
Job Analysis Select Exercises
And Participants



Define
Dimensions to Design Assessor Train
Be assessed Trainings Assessors
Programme





Provide Feed
Back



Evaluate Participants
and Centre Against
Job Success Criteria




Fig: An Assessment Centre Model


Human Promotion Employee
policies policy Feedback


Promotion
Measures



Promotion Related
Standards


Human Employee
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 20
th
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 II
INTRODUCTION 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 INDUSTRY
The growth in a chronological order is depicted below:
S.No. Year Growth
1 1830 Osier Marshall Heathler constructed the first
manufacturing plant at port-motor in Madras
presidency.
2 1874 James Erskin founded the Bengal frame works
3 1899 Jamshediji TATA imitated the scheme for an
integrated steel plant.
4 1906 Formation of TISCO.
5 1911 TISCO Started production
6 1918 TISCO was founded
7 1940 Formation of Mysore iron and steel initiated at
Bhadravathi in Karnataka
8 1981-1956 First 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.
9 1956-1961 Second 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.
10 1961-1966 Third five year plan during the plan the three steel
plants under HSL, TISCO & TISCO were expanded*
11 1964 Bokaro Steel plant came into existence
12 1966-1969 Recession period till the expansion programmes
were actively existed during this period.
13 1969-1974 Fourth 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
24
th
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

15 1979-1980 Annual plan. The Erstwhile soviet union agreed to
help in setting up the Visakhapatnam steel plant
16 1980-1985 Sixth five-year plan work on Visakhapatnam steel
plant 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.
17 1985-1991 Seventh 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.
18 1992-1997 Eight 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.
19 1997-2002 Ninth five-year plan- Restructuring of
Visakhapatnam steel plant and other public sector
undertakings.


STEEL PLANTS WITH FOREIGN COLLOBORATIONS
Sl. No. Plant Collaboration Capacity of
Finished Steel Products
1 Rourkela Steel Plant West Germany
2 Bhilai Steel Plant Erstwhile USSR
3 Durgapur Steel Plant Britain
4 Bokaro Steel Plant Erstwhile USSR



Sl.No. Plant Collaboration Capacity of
Finished Steel Productions
Annual
Production
1 Rourkela Steel Plant West Germany 7,20,000 Tones
2 Bhilai Steel Plant Erstwhile USSR 7,70,000 Tones
3 Durgapur Steel Plant Britain 8,00,000 Tones





PROBLEMS OF STEEL PLANT INDUSTRY
LACK 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 PROBLEMS
Bhilai 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 POLICY
Since 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 1
st
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 1
st
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 on
31.03.2007
As on
31.03.2008
As on
31.03.2009
As on
31.03.2010
As on
01.07.2011
EXECUTIVES 3532 4201 5218 5263 5258
WORKS
2145 2584 3249 3153 3231
PROJECTS 225 280 329 327 340
MINES 54 64 93 104 94
OTHERS 1108 1273 1547 2110 1593
NON
EXECUTIVES
11937 11544 12007 12567 12500
WORKS 10687 10387 10476 11163 11256
PROJECTS 68 64 63 58 50
MINES 281 265 267 262 247
OTHERS 901 828 1201 1404 947
TOTAL 16574 16433 17225 17830 17758
WORKS 13608 13463 13725 14316 14487
PROJECTS 320 353 392 385 390
MINES 357 350 360 366 360
OTHERS 2289 2267 2748 3514 2521



Key performance indicators :


Production Performance:





Commercial Performance


Year Sales Turnover Domestic Sales Exports
2006-2007 9151 8726 424
2007-2008 10433 9878 555
2008-2009 10458 10379 79
2009-2010 10634 10283 351
Table 3.6.a commercial performance(rupees in crores)




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



Financial Performance












CHAPTER IV
PROMOTION 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:

Item Former Emphasis Present Focus
Terminology Merit-rating Promotion policy
Purpose Determine wage increase,
promotion, transfer, lay off.
Development of the
individual, improved job
promotion
Application Fort rank and file workers For managerial and technical
personnel
Factors
rated
Personal traits Promotion result or
accomplishment
Techniques Rating 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 APPRAISAL
Several 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-VSP
PROMOTION POLICY AND RULES FOR EXECUTIVES
1.0 INTRODUCTION
RINL/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 OBJECTIVES
2.1 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 the
company.
3.0 SCOPE
3.1 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 persons
reappointed 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 MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.1.2
3.3 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/GRADES
4.1 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 pay
Code Code w.e.f. 1.1.1997
Rs . Rs .
E-0 3700-175-7025 E-0 8600-250-14600
E-1 4500-200-5500-250-8250 E-1 10750-300-16750
E-2 5650-250-6650-275-9400 E-2 13700-350-18250
E-3 6600-300-9600 E-3 16000-400-20800
E-4 7500-300-9900 E-4 17500-400-22300
E-5 7950-300-10050 E-5 18500-450-23900
E-6 8400-300-10200 E-6 19000-450-24400
E-7 9000-300-10500 E-7 19500-450-25350
E-8 9500-400-11500 E-8 20500-500-26500
4.2 All promotions made in accordance with this Policy and Rules will be from one
scale of pay to the next, without skipping any scale of pay.
5.0 PROMOTION SYSTEMS
5.1 Promotions from E-1 to E-2, E-2 to E-3 and E-3 to E-4 grades will be effected on
the basis
of 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 MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.1.3
5.2 Promotions from E-4 to E-5 grade and above in respect of eligible executives will
depend on
availability of vacancies in the next higher grades in the respective LOPs and based
on the need
to fill up such vacancies.
5.3 Promotions will be based on the assessed levels of performance of the executives
in terms of
credit points in accordance with the performance appraisal system of the Company.
6.0 ELIGIBILITY CRITERIA
For 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 and
above) and certain specialized/statutory posts. Only those executives who possess
the
prescribed qualifications and fulfil the eligibility criteria as above, will be considered
for such
posts.
6.1 MINIMUM ELIGIBILITY PERIOD
The executive should fulfil the following minimum eligibility period in the
respective LOPs:
For promotions from E-1 to 3 years service
E-2, E-2 to E-3, E-3 to E-4 in the next below
E-4 to E-5, E-5 to E-6, E-6 to E-7 grade
E-7 to E-8 2 years service
in the next below grade
NOTE:
(a) Executives recruited as Management Trainees in E-0 grade as per the
Management Trainee
Scheme of the company will be placed in E-1 grade, from the date of their
satisfactory
completion of training, as per the training completion procedure.
This, however, is not applicable to executives appointed in E-0 grade otherwise than
as
Management Trainees of the Company. Their placement in E-1 grade and growth
thereafter
will be regulated as per rules/procedure prescribed separately.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.1.4
Clarifications: given vide PL/RR/3(1)/98, Dated 08.01.98.
i) The executive employees who have been promoted from the Non-Unionised
Supervisory
cadre to Executive cadre will be required to put in two years of service in E-0 grade
for
being considered for placement in E-1 grade as provided under the Promotion Policy
for
Non-Unionised Supervisory cadre and Executive cadre, subject to other eligibility
criteria
as laid down.
ii) Seniority in E-1 grade and eligibility for promotion to E-2 grade will be counted
from the
date 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 and
Rules for Executives issued vide circular No. 16/97 dated 07.11.1997, as amended
from
time to time.
(b) The period of training as Management Trainee in E-0 grade will be taken into
acount for the
purpose of computation of eligibility period in E-1 grade, subject to the condition
that the
executive 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 one
or more spells during the eligibility period, the total period of such extra-ordinary
leave will be
excluded while computing the eligibility period.
(d) The period of study leave granted by the Company will be taken into account in
determining
the minimum eligibility period for promotion, subject to the condition that the
executive has
completed 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 300
points of the three preceding Annual Performance Appraisal Reports.
(b) In case of executives recruited as Management Trainees where only two Annual
Appraisal
Reports may be available, the marks obtained by them during training will be taken
into account
in lieu of the third report. For this purpose, the aggregate percentage of marks
obtained in the
examination including viva-voce etc., at the end of the training period will be
converted on prorata
basis to a maximum of 100 points.
6.3 VIGILANCE & DISCIPLINARY CLEARANCE
The executive should be clear from vigilance and disciplinary angles in terms of
Personnel
Policy 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 MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.1.5
6.4 ZONE OF CONSIDERATION
For consideration for promotion from E-4 to E-5 grade and above, the Executive
should be
within the zone of consideration based on relative merit in the LOP, as provided in
clause 7.2.3.
7.0 METHODOLOGY
All promotions are promotions by selection based on merit as reflected in the
Appraisal
Reports 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 vacancies
and linked to the prescribed performance of the executives as assessed in their
annual
performance 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 conducted
twice in a year.
7.1.3 Personnel Deptt. shall prepare list of executives in E-1, E-2, E-3 grades who
fulfil the eligibility
criteria as prescribed in clauses - 6.1, 6.2 and 6.3. Those executives who do not fulfil
the
prescribed 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 have
not been included in the merit list and who are not eligible to be considered for
promotion on
account of not fulfilling the criteria under clauses - 6.1, 6.2 and 6.3 and place the
same before
the 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 credit
points in the preceding three appraisal reports, i.e. a total of 180 points out of 300,
subject
to 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
points
in the preceding four appraisal reports, i.e. a total of 220 points out of 400, subject to
a 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
points
in the preceding five appraisal reports, i.e. a total of 250 points out of 500, shall be
promoted.
7.1.6 The executives promoted shall be entitled for monetary benefit from the date of
assumption
of charge only.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.1.6
7.2 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 on
availability 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 basis
of merit as determined from the total credit points of Annual Appraisal Reports of
the
preceding 3 years. Against each vacancy, not more than 5 eligible executives will be
considered from the list in the descending order of merit. However, in case of a tie
between
the last executive in zone of consideration and the next below executive(s) as a result
of their
obtaining equal number of credit points, all the executives involved in the tie will be
considered
along with other eligible executives by the DPC. In such an event the number of
executives
to 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 basis
provided 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 as
rated in the annual performance appraisals, service in the grade and the potential of
the
executive as assessed by DPC.
The assessment of the potential will be done as per the format enclosed at Annexure-
I. For
the 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 Marks
Performance 50
Service 20
Potential 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
eligible
period 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 being
promoted.
7.2.4 The DPC will draw up select list of the promotable executives in order of merit
on the basis
of total marks obtained, subject to the number of vacancies. Potential assessment will
be made
by the DPC by way of interview in case of promotion from E-4 to E-5 and E-5 to E-6.
There
will, however, be no interview for promotion from E-6 to E-7 and E-7 to E-8 grades
and the
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.1.7
DPC will assess the potentiality based on performance as reflected in the Appraisal
Reports
and 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 will
consist 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 HOD
8.3 The DPC for consideration of promotions from E-5 to E-6 and E-6 to E-7 grades
will consist
of:
(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 Directors
8.5 Chairman-cum-Managing Director shall have discretion to nominate additional
members on
the DPCs
9.0 LINES OF PROMOTION (LOPs)
9.1 Lines of Promotion shall be as decided by the Management. However, the LOPs
will be so
drawn 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 MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.1.8
9.2 However, the Management reserves the right to fill up vacancies irrespective of
the LOPs
on inter-disciplinary or inter-departmental basis by promotion, transfer, or
circulation as may
be decided by the Management. Vacancies may also be filled up by open recruitment
at the
discretion of the Management.
10.0 ABOLITION OF SENIORITY LISTS
This promotion policy does not envisage promotions based on .Seniority.. Therefore,
no
seniority lists will be maintained in the Company for the purpose of promotion.
Instead ,
promotions will be based on LOP-wise merit lists.
11.0 PROBATION
The executive promoted under this Policy and Rules will be kept on probation for a
minimum
period of six months. Confirmation/extension of probation will be regulated as per
Rules
prescribed in this regard.
12.0 PROMOTION OF EXECUTIVES ON DEPUTATION TO OTHER
ORGANISATIONS
12.1 An executive of the Company on deputation to another organisation may be
considered for
promotion in the Company during the period in accordance with the selection
methodology
prescribed in this Policy and Rules.
12.2 In case of an executive who is not on deputation to another organisation but
merely retaining
lien in the Company, he would not be considered for promotion during the period.
He would
merely retain the option to return to his substantive post for the duration of lien.
13.0 PROMOTION OF EXECUTIVES PENDING ENQUIRY/DISCIPLINARY
PROCEEDINGS
The precedure for dealing with promotion/confirmation of executives pending
investigation/
disciplinary proceedings etc. is given at Annexure-II.
14.0 RESERVATIONS FOR SCs & STs
Reservations/concessions for SCs and STs will be provided as per Presidential
Directives on
the subject.
Note: Clause 14.0 will be applicable subject to OM No.36012/23/96- Estt. (Res),
dated
22.07.1997 issued by the Ministry of Personnel, Public Grievances & Pensions, as
given at Annexure- III.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.1.9
15.0 ISSUE OF CLARIFICATIONS ETC.
Clarifications, guidelines, instructions, procedures etc. under this Policy will be
issued by the
Rules Section on approval of CMD.
16.0 POWER TO RELAX
The Chairman-cum-Managing Director, RINL, may at his discretion, relax the
eligibility
criteria etc., in exceptional cases for reasons to be recorded.
17.0 TENURE
17.1 This Policy and Rules shall come into force with immediate effect and shall
remain in force
for 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 and
Rules as may be deemed necessary from time to time.
17.3 This Policy and Rules shall supersede the earlier policy, rules, regulations,
orders and
instructions issued on the subject, except to the extent expressly provided in this
Policy and
Rules.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.1.10
ANNEXURE - 1
POLICY AND RULES FOR PROMOTION OF NON-EXECUTIVES
The policy and rules for promotion of Non-executive employees was introduced in
pursuance of the
memorandum of settlement dt.25.01.90 and subsequently, modifications and/or
incorporations of the
policy have been made vide memoranda of settlement dt.05.02.93, 18.05.94 and
102.08.2000. The policy as given below includes all such changes made through the above
memoranda of settlement.
1.0 OBJECTIVES :
1.1 To boost and sustain the morale of the VSP employees in order to enable them to make
allout
efforts for achieving the Mission and Objectives of the Organisation by working at peak
levels of efficiency.
1.2 To ensure optimum utilisation of manpower with a view to achieving the productivity
level
of not less than 230 tonnes per man year.
1.3 To man non-executive positions in the Company with competent personnel having
growth
potential 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 flexible
work 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 matters
concerning promotions of non-executives.
1.7 To provide mechanics for determining the suitability of non-executives for promotion on
a
standard 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
Rashtriya
Ispat Nigam Limited, including the employees working in out-station Units, Offices and
Mines.
1Amendement vide Memerandum of Settlement dated 02.08.2000 will be effective from 30.06.2000.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.4.2
2.2 'Employee' means all non-executives who are appointed on a regular basis and does not
include Trainees/Apprentices and persons appointed on casual or temporary basis or
appointed 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 been
grouped in the following clusters/cadres:
3.1.1 1The work grades will be grouped into the following clusters/cadres
Cluster Grades
A S-1, S-2, S-3, S-4, S-5 & S-6
`A' Sub-cluster S-4, S-5 & S-6
B S-3, S-4, S-5, S-6, S-7 & S-8
C S-6, S-7, S-8, S-9(P) & 2S-10(P)
3.1.2 3Ministerial Grades
S-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
flexibility
of employees within the cadre becomes viable and optimum utilisation of manpower is
achieved.
4.0 SYSTEMS OF PROMOTION :
4.1 There will be two systems of promotion for non-executives as follows:
a. Promotion within the Cadre
b. Promotion between the Cadres
1Incorporated 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 MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.4.3
4.2 Promotion from one scale of pay to another within the cadre including "Personal grade"
will
be delinked from vacancies. An employee can be considered for promotion on completion
of 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
higher
cadre in the prescribed LOP.
4.41 As a special case, `A' -Sub cluster will be created with maximum strength of 20% of the
total
manpower in `A' -cluster in each department in technical stream as on 30.6.2000. Employees
in S-4 grade with 2 years of service in Cluster `A' subject to passing of job test, interview and
possessing satisfactory ACRs for the preceding 2 (two) years and fulfilling such other
conditions 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 jobs
and 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) in
the Annual Confidential Reports(ACR)/Appraisal Reports for at least two years,
including the last year, out of the reports for the preceding three consecutive appraisal
years 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 not
communicated to the employee concerned by 31st May of the following year will not be
taken into account and will not adversely affect his promotion.
1Incorporated vide Tripartite Settlement dated 02.08.2000.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.4.4
b. 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 Written
grade test etc.
1WORKS GRADES
A S-1 TO S-2 4 years No As prescribed at the Refer NB:5
time of entry
A 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 above
S-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/Job
cluster B) qualification of Matriculation, test/written test
a written examination of as prescribed.
appropriate standard will be
conducted by the Management.
Those who pass in the examination
will be considered for
promotion to S-3 grade.
Matriculates will not be required
to appear at this examination.
NB: An employee who passes
this examination once will not be
required to appear at this
examination again.
1Incorporated vide Tripartite Settlement dated 02.08.2000.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.4.5
Cluster/ Length Whether Minimum Educational Trade test/
Cadre of service vacancy qualification Job test/
in the linked Written
grade 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 after
successful completion of their training as Asst. Technician Trainees, the eligibility
period for promotion to S-3 grade shall be 3 years of service in S-2 grade. Also, the
stipulation of minimum qualification of Matriculation for promotion to Cluster B will
be 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 MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.4.6
NB-2 : The minimum educational qualification of Matriculation for promotion from S-2 to
S-3 grade, i.e. from Cadre A to Cadre B, may be relaxed by Management in
exceptional cases.
NB-3 : For purposes of promotion within Cadre B , the stipulation of minimum qualification
of Matriculation will be relaxed in respect of employees who have been recruited
directly in Cadre B with a qualification lower than Matriculation.
NB-4 : The standards and procedure of trade test/job test / written test will be prescribed
NB-5: For promotion within cadres in the same line of promotion no trade test/job test has
been 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
minimum
qualification 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 this
promotion policy.
NB-71:DELETED
NB-81:DELETED
NB-91: Employees in `A' Sub-cluster will be eligible for promotion to Cluster `B' on
availability of vacancies in Cluster`B' and subject to possessing prescribed qualification
and fulfilment of other conditions as prescribed.
However, Note NB-1 of Memorandum of Settlement dt.25.1.1990 will not be
applicable for employees in `A' Sub-cluster.
NB-101:On availability of vacancies and subject to possessing prescribed qualifications and
fulfilment of other conditions, employees in cluster `A' and `A'-Sub cluster promoted
to the positions in cluster`B' will be placed in parallel grade of `B' cluster with
protection of grade seniority. However, their cluster seniority for the purpose of
inter-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 and
1Incorporated/deleted vide Tripartite Settlement dated 02.08.2000.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.4.7
fulfilment of other conditions, employees in cluster `B' promoted to the positions in
cluster `C' will be placed in parallel grade of `C' cluster with protection of grade
seniority. However, their cluster seniority for the purpose of inter-cluster promotion
will be reckoned from the date of entry into `C' cluster.
c. The existing provisions regarding disqualification of employees for
promotion/confirmation
during the pendency of disciplinary/vigilance cases and thereafter, as contained in the
Personnel 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 as
Jr. 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 have
completed the prescribed minimum period of service in a grade, possess the minimum
educational qualifications prescribed and have passed the prescribed trade test/job test/
written test wherever prescribed will be considered for promotion, within or between the
cadres, by a Departmental Promotion Committee constituted for the purpose. The
Departmental Promotion Committee shall interview the eligible candidates and make
recommendations about their suitability or otherwise for promotion. The promotions will be
effected 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 for
promotion will be 1:3 and the Departmental Promotion Committee particulars will be
prepared 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 in
the highest grade , but cannot be considered for promotion for want of a vacancy in the
higher
cadre, he will be considered for promotion to the 'Personal Grade, i.e., in the personal grade
of S-9(P), 2and on completion of 5 years of service in S-9(P) grade, he will be considered
for 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 MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.4.8
ARs 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 the
designation and duties.
7.21 DELETED
8.0 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
for
the purpose of promotion will not be required to appear at a test again for a period of 18
months
from 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 a
vacancy becomes available to be filled up.
9.0 TRAINING :
9.1 Employees shall avail of all opportunities for training for updating of skills, growth and
advancement including shop-floor training programme(s).
9.2 Appropriate need-based training packages for skill development will be introduced with
special 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
and
31st December.
10.2 Persons so promoted will count their seniority from the effective date of promotion, i.e.
30th
June or 31st December as mentioned in the promotion order, but the financial benefits will
accrue 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
promotion
and/or as per the rules applicable from time to time.
1Deleted vide Tripartite Settlement dated 02.08.2000.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.4.9
11.0 JOB FLEXIBILITY :
11.1 With the cadre approach, the jobs will be understood in a composite manner so that
flexibility
of employees within the cadre becomes viable and optimum utilisation of human resources
is achieved.
11.2 On promotion, employees will be suitably designated in their lines of promotion
keeping in
view 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 has
been duly informed in writing, he will not be considered for promotion for a period of 6
months
from the date of holding the said test.
12.2 In case an employee refuses to accept promotion, he will not be considered for such
promotion 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 based
promotions in accordance with the Presidential Directives and instructions of the
Government
in this regard issued from time to time.
Note: Clause 13.0 will be applicable subject to OM No.36012/23/96- Estt. (Res), dated
22.07.1997 issued by the Ministry of Personnel, Public Grievances & Pensions, as
given 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,
for
reasons to be recorded.
14.3 The Management will issue such clarifications, procedures, instructions, guidelines, etc.,
as
deemed fit by it for implementing this policy and rules.
14.4 This policy and rules shall supersede all the previous agreement, rules, regulations,
orders and
instructions issued earlier on the subject.
T T T

PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.4.10
ANNEXURE - I
No. 36012/23/96-Estt. (Res)
Govt. of India
Ministry of Personnel, Public Grievances & Pensions
( DEPARTMENT OF PERSONNEL & TRAINING )
North Block, New Delhi
Dated the 22nd July, 1997
OFFICE MEMORANDUM
Sub: Reservation in promotion - Prescription of lower qualifying marks/lesser
standard of
evaluation.
The undersigned is directed to say that in terms of instructions noted in the margin,
certain
relaxations/concessions in the matter of qualifying marks/standards of evaluation
of performance
are to be made in favour of candidates belonging to the Scheduled Castes and the
Sceheduled
Tribes while considering them for promotion.
2. The validity of such lower qualifying marks/lesser standards of evaluation was
called into
question in Courts in the context of the judgement of the Supreme Court in the case
of Indira
Sawhney Vs. Union of India. The Supreme Court, in the case of S.Vinod Kumar Vs.
Union of
India {JT 1996 (8) SC 643} has held that the provision for lower qualifying
marks/lesser level of
evaluation, in the matter of promotion, provided for candidates belonging to the
Scheduled Castes
and the Scheduled Tribes under Government's instructions, is not permissible under
Article 16(4)
in view of the command contained in Article 335 of the Constitution. The Court has
further
observed that even if it is assumed for the sake of argument that reservation is
permitted by Article
16 (4) in the matter of promotion, a provision for lower qualifying marks or lesser
level of evaluation
is not permissible in the matter of promotion, by virtue of Article 335. The Court also
held that
the protection for reservation in promotion for five years, given by the Supreme
Court, vide para
829 of the judgement in Indira Sawhney's case, did not save the provisions for lower
qualifying
marks/lesser level of evaluation.
3. It has accordingly been decided to withdraw the instructions contained in this
Department's
OM No.8/12/69-Estt. (SCT) dated 23.12.1970 and OM No.36021/10/76-Estt.(SCT)
dated
21.1.1977, in so far as these provide for lower qualifying marks for Scheduled
Castes/Scheduled
Tribes candidates in departmental qualifying/competitive examinations for
promotion. Similarly,
the relevant portions of para-6.3.2 of the DPC guidelines circulated vide this
Department's OM
No.22011/5/86-Estt.(D) dated 10.4.1989, to the extent that they provide for
consideration of
Scheduled Castes/Scheduled Tribes candidates without reference to merit and the
prescribed
"bench mark", are hereby rescinded.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.4.11
4. It is clarified that the effect of these instructions is that henceforth there shall be no
separate
standards of evaluation for candidates of the Scheduled Castes/Scheduled Tribes for
promotion,
and assessment of all candidates for this purpose will be with reference to uniform
standards. Any
other instructions of the Govt.,which provide for lower qualifying marks/lesser
standards of
evaluation in matters of promotion for candidates belonging to the Scheduled
Castes/Scheduled
Tribes, may also be treated as having been modified to this extent.
5. These instructions take immediate effect.
6. All Ministries/Departments are also requested to bring these instructions to the
notice of
their Attached/Subordinate Offices and Autonomous Bodies/Public Sector
Undertakings under
their control for compliance.
Sd/-
(YG Parande)
Director
To:
1. All Ministries/Departments of the Govt. of India
2. Union Public Service Commission, Dholpur House, New Delhi.
3. Staff Selection Commission, CGO Complex, Lodi Road, New Delhi.
4. Deptt. of Economic Affairs (Banking Division), New Delhi.
5. Deptt. of Economic Affairs (Insurance Division), New Delhi.
6. Deptt. of Public Enterprises, New Delhi.
7. National Commission for SC&ST, Lok Nayak Bhavan, New Delhi.
8. National Commission for Backward Classes, Trikoot-I,
Bhikaji Cama Place, RK Puram, New Delhi.
9. Ministry of Welfare, Shastri Bhavan, New Delhi.
***









































CHAPTER VI
ANALYSIS AND INTERPRETATION

Statement No. 1
Are you happy working with RINL at VSP ?
Tabulation Format

Sl.No. Rating Respondents Percentage
1 YES 50 100%
2 NO 0 0%
Total 50 100%




Interpretation
The above tabulation format shows that the 100% employees of VSP are
satisfied with the work with the organization.





Statement No. 2
What are the factors you are happy with RINL at VSP ?

Tabulation Format

Sl.No. Rating Respondents Percentage
1 Job security 23 46%
2 Opportunity to learn 6 12%
3 Job satisfaction 16 32%
4 Pay & perks 5 10%
Total 50 100



Interpretation

The above tabular format shows that the 46% employees say that job
satisfaction with the above statement 12% that says that opportunity to learn & 32%
Respondented expressed of job satisfaction and 10% expressed pay & perks of VSP
factors. Employees happy with the organisation.




Statement No. 3
What do you think is the best way to reward your employee ?
Tabulation Format

Sl.No. Rating Respondents Percentage
1 Promotion-designation
wise & pay wise.
36 72%
2 Reward schemes where
they get recognition &
some amount as gift.
14 28%
Total 50 100%



Interpretation

The above table explains that the best way to rewards 72% of employees
opined promotion designation wise and pay wise 28% of employees OK(YES).
Reward schemes where they get recognition and same amount as gift.




Statement No. 4
How do you think that the performance can be improved ?

Tabulation Format

Sl.No. Rating Respondents Percentage
1 Training 43 86%
2 Counseling 7 14%
3 Demoting 0 0%
Total 50 100%



Interpretation

The above table explains that the performance can be improved 86% of
employees favoured training. 14% of employees for counselling to the above
statement.





Statement No. 5
Is counselling, required to improve performance ?

Tabulation Format
Sl.No. Rating Respondents Percentage
1 YES 40 80%
2 NO 10 20%
Total 50 100%


Interpretation

The above tabular format explains the 80% of the employees suggest that the
counselling required to improve performance 20% of the employees say that
counselling required not improve performance.








Statement No. 6
Should the PROMOTIONS be ?...
Tabulation Format

Sl.No. Rating Respondents Percentage
1 Time bound 16 32%
2 Vacancy bound 6 12%
3 Time bound at lower
levels & vacancy bound at
higher levels.
28 56%
Total 50 100%



Interpretation

The above tabulation explains that the employees should be PROMOTIONS
according to employees 32% are time bound.,12% vacancy bound and 56% time
bound at lower levels and vacancy bound at higher levels of the above statement.




Statement No. 7
Do you have any reward and promotionpolicies running currently in your
organisation ?
Tabulation Format

Sl.No. Rating Respondents Percentage
1 YES 35 70%
2 NO 15 30%
Total 50 100%



Interpretation

The above table explains that 70% of them say that YES for reward &
promotion policy running currently in the organisation.30% of them say that NO
then reward & promotion policy is not running currently in the organisation.






Statement No. 8
Which are the most successful policies in general ?

Tabulation Format

Sl.No. Rating Respondents Percentage
1 Policies are motivating the
employee.
42 84%
2 Policies are motivating the
family members of
employee.
8 16%
Total 50 100%


Interpretation

The above explains the most successful policies in general 84% of
employees. Policies are motivating the employee.16% employees policies are
motivating the family members of employees.





Statement No. 9
What are the types of REWARDS usually given to the employees ?

Tabulation Format

Sl.No. Rating Respondents Percentage
1 Monitory 12 24%
2 Non- monitory 5 10%
3 Both 30 60%
5 No defined rewards 3 6%
Total 50 100%


Interpretation

This table explains various types of rewards usually given to the employees .
24% employees monitory. 10% of employees non-monitory. 60% both & 6%
employees NO defined rewards.





Statement No. 10
Has your superior recommended a factor in your getting the promotion ?

Tabulation Format

Sl.No. Rating Respondents Percentage
1 YES 41 82%
2 NO 9 18%
Total 50 100%



Interpretation

It shows that 82% have favoured for YES promotion.Where as others have
side NO.









Statement No. 11
Is the promotion policy transparent & clearly lide down in your organisation ?

Tabulation Format

Sl.No. Rating Respondents Percentage
1
YES
35 70%
2 NO 15 30%

Total 50 100%


Interpretation

The above table explains the 70% employees says that the promotion policy
transparent and clearly laid down in your organisation.30% employees says that
promotion policy statement and not clearly down in your organisation.






Statement No. 12
How did you learn about the job at RINL ?

Tabulation Format

Sl.No. Rating Respondents Percentage
1
Through a job
anouncement
30 60%
2
Follow the employee
3 6%
3
Follow the your superior
17 34%
Total 50 100%



Interpretation

The above table form explains 60% employees say that through job
announcement in the RINL at the job learn about. 6% of them say that follow the
employee with the above statement. 34% of them say that follow the superiorwith the
above statement.


Statement No. 13
Are the HRD programmes being arranged are sufficient for development of
the executives ?
Tabulation Format

Sl.No. Rating Respondents Percentage
1 YES 31 62%
2 NO 19 38%
Total 50 100%




Interpretation

The above tabulation form explain 62% employees say that the HRD
programmes arranged are sufficient for development of the executives.38% of the
employees says that the HRD programmes are being not arranged are sufficient for
development of the executives.





Statement No. 14
Is experience and years of service taken care for your promotion ?

Tabulation Format

Sl.No. Rating Respondents Percentage
1 considered 42 84%
2 Not-considered 8 16%
Total 50 100%



Interpretation

The above tabulation form explain 84% of them say considered as the
experience and years of service taken care for the promotion.16% of them says that
not considered by the experience and years of service taken care for the promotion.






Statement No. 15
What is the upper and lower limit. Incase of monitory rewards for
recognition ?
Tabulation Format

Sl.No. Rating rupees Respondents Percentage
1
Less than 500
14 88 %
2
More than 500 but less
than 1000
2 4%
3
More than 1000 but less
than 2000
12 24%
4
More than 2000
22 44%
Total 50 100%


Interpretation

The above table shows that the employees upper & lower limit incase of
monitory rewards for recognition that 28% of the employees less than 500, 4% of the
employees more than 500 but less than 1000, and 24% of the employees more than
1000 but less than 2000 and 44% of the employees more than 2000.

Statement No. 16
Does training & development improve performance ?
Tabulation Format

Sl.No. Rating Respondents Percentage
1 YES 50 100%
2 NO 0 0%
Total 50 100%



Interpretation

The above table explains 100% of then say that training & development
improve performance.








Statement No. 17
Should there be a policy for de-formation ?

Tabulation Format

Sl.No. Rating Respondents Percentage
1 YES
35
70%
2 NO
15
30%
Total 50 100%


Interpretation

The tabular format explains that 70% of them say that YES then policy for
de-formation. 30% of them say that NO then policy for de-formation.







Statement No. 18
Is there a clear laid down promotion policy in your organisationv?
Tabulation Format

Sl.No. Rating Respondents Percentage
1 YES 37 74%
2 NO 13 26%
Total 50 100%


Interpretation

The above tabulation form explain that 74% of them says that YES is clear laid
down promotion policy.26% of them say that NO that is not clear laid down
promotion policy.






Statement No. 19

Promotions are required to keep the morale of the employees high?.Do
you agree ?

Tabulation Format


Interpretation

The above tabulation form explain that 66% of them say that YES
promotion are required to keep the morale of the employees are high.
34% of them say that NO . promotion are required to keep the morale
of the employees are low.
S. no Rating Respondents Percentage
1 YES 33 66%
2 NO 17 34%
Total 50 100%
Statement No. 20
Promotions are necessary to keep the employees with the organisation ? do
you agree?

Tabulation Format


S.NO Rating Respondents Percentage
1 YES 19 38%
2 NO 31 62%
Total 50 100%


Interpretation
The above tabulation form explain that 38% of them say that
YESthe Promotions are necessary to keep the employees with the
organisation.62% of them say that not agree Promotions are necessary to keep
the employees with the organisation.


Statement No. 21
Should performance of the only criteria for promoting employer ?



Tabulation Format

s.no Rating respondents Percentage
1 YES 33 66%
2 NO 17 34%
Total 50 100%



Interpretation
The above tabulation form explain that 66% of them say that YES
performance be the only criteria for promoting employer. 34% of them
say that NO performance be the only criteria for promoting employer.







Statement No. 22
Is the laid down promotion policy followed in letter & spirit i.e., strictly ?

Tabulation Format
s.no rating respondents percentage
1 YES 23 46%
2 NO 27 54%
Total 50 100%


Interpretation

The above tabulation form explain that 46% of them say that YES
then the laid down promotion policy followed in letter & spirit . 54% of
them say that NO then the laid down promotion policy followed in letter
& spirit strictly.









Statement No. 23
Should seniority be the one and only factor in promoting employees ?

Tabulation Format
s.no rating respondents percentage
1 YES 21 42%
2 NO 29 58%

total 50 100%


Interpretation
The above explains that 42% of them preferred YES them seniority be
the one and only factor in promoting employees. 58% of them say that NO
them seniority be the one and only factor in promoting employees.









Statement No. 24
Should promotions be linked to seccession planning i.e.,future planning for
higher positions?

Tabulation Format
s.no rating respondents percentage
1 YES 41 82%
2 NO 9 18%
Total 50 100%



Interpretation
The above explains that 82% of the say promotion be linked
to planning i.e.,future planning for higher position.18% of them says
that NO then the promotions be not linked to planning.






Conclusions:
Through the questionnaire survey method for collection of the primary data
using the simple random sample technique, some observations have been made and
certain conclusions drawn. It is observed that 100% employees of VSP are satisfied
with the work with the organization. According to the survey, 46% employees say
that they work for job satisfaction where as 12% says that it is an opportunity to
learn & 32% respondents expressed of job satisfaction and 10% expressed pay &
perks of VSP factors.

When asked if they are you happy working with RINL at VSP, is observed that
100% of the employees of VSP are satisfied with the work with the organization.
46% employees said that they are happy with the job satisfaction, 12% with the
opportunity to learn & 32% with job satisfaction and 10% with pay & perks of VSP
factors. It is observed that the best way to reward employees, 72% of employees
opined promotion designation wise and pay wise 28% of employees OK(YES).
Reward schemes where they get recognition and same amount as gift.

It is noted that performance can be improved through training as 86% of
employees favoured training and 14% of employees said through counselling. 80%
of the employees suggest that the counselling is required to improve performance
where as 20% of the employees say that counselling is not required to improve
performance.

According to the survey, 32% say that the promotions should be time bound
whereas 12% say that it should be vacancy bound and 56% say that it should be
time bound at lower levels and vacancy bound at higher levels. 70% of the
employees say YES that there is reward & promotion policy running currently in
the organisation and 30% of them say NO there is no reward & promotion policy
running currently in the organisation.

It has been collected that the most successful policies in general are that of
employees according to 84% of the employees and 16 % of the employees say that
the Policies are motivating the family members of employees.

The type of rewards given to the employees are according to the 24% of the
employees monitory, according to 10% of employees are non-monitory and
according to 60% of the employees - both monetary and non-monetary and 6% of
the employees said that they are NO defined rewards. 82% of the employees said
that their superiors have recommended in favour of their promotions where as
others said NO. 70% of the employees says that the promotion policy is
transparent and clearly laid down in your organisation whereas 30% of the
employees says that promotion policy statement is not clearly down in the
organisation.

As regards learning of the job, 60% of the employees said they learn job
through job announcement in the RINL, 6% of them follow the employee and 34%
of them say that they follow the superiors. As regards the HRD programmes being
arranged are sufficient for development of the executives, 62% employees say Yes
and 38% said No. When asked if experience and years of service taken care for
your promotion, e 84% of them say considered and 16% say not considered.

As regards, the upper & lower limit in case of monitory rewards for
recognition, 28% of the employees say that the limit should be less than 500, 4% of
the employees more than 500 but less than 1000, and 24% of the employees more
than 1000 but less than 2000 and 44% of the employees more than 2000. All the
100% say that training & development do improve performance.

70% of the employees feel that there should be a policy for de-promotion and
30% say no to it. When asked if there is a clear promotion policy in the organisation,
74% of them says that YES and 26% of them said NO. 66% of the sample opines
that promotions are required to keep the morale of the employees high and 34%
that that it not so. 38% say that the promotions are required to keep the employees
with the organisation and 62% opine that of it is not so. 66% said that performance
should be the criteria for promotions and 34% said that performance is not the only
factor.

46% of the employees said that the promotion policy is followed in letter and
spirit and 54% said that it is not so. 42% of the sample said that only seniority
should be the criteria for promotions and 58% felt other wise. A very large
percentage i.e., 82% said that the promotions should be linked with the succession
planning of the organisation and only 18% said other wise.

Suggestions :
In general it is observed that the employees of RINL/Visakhapatnam Steel
Plant are happy working in an organisation like this with a good stature but there
are little suggestions which the organisation may adopt to make it an even better
place to work. Along with good pay and perks and growth opportunities, it may
provide good learning opportunities too. It looks employees are looking for more
training and counsellings which may be imparted. Schemes for motivating the
members of the family of the employees may also be explored. The promotions
should be linked to seniority as well as merit or performance. It was very much felt
that the promotions should be going along with the succession planning of the
organisation.








QUESTIONNAIRE

I am MS CH.DEEPTHI, a student of SIR C.R.REDDY COLLEGE FOR WOMEN,
ELURU doing my MBA project at RINL/VSP. I request you to kindly spare your
valuable time to give some feedback on PROMOTION&REWARD POLICIES
and the information provided will be kept confidential and will be used on for
academic purpose.
(CH.DEEPTHI)
Name (optional): ..
Designation
Department ..
Length of the service..
Age
(1)Below 25
(2)26-35
(3)36-45
(4)Above 45
1. Are you happy working with RINL at VSP?
(a) Yes (b) No
2. What are the factors you are happy with RINL at VSP?
(a) Yes (b) No
3. What do you think is the best way to REWARD your employee?
(a)Promotion-designation wise and pay wise
(b)Reward schemes where they get recognition and some amount as gift
4. How do you think that the performance can be improved?
(a) Training
(b) Counseling
(c) Demoting
5. In counseling required to improve performance?
(a) Yes
(b) No
6. Should the PROMOTIONS be.
(a) Time bound
(b) Vacancy bound
(c) Time bound at lower levels and vacancy bound at higher levels.
7. Do you have any Reward and promotion policies running currently in your
organization?
(a) Yes (b) No
8. Which are the most successful policies in general?
(a) Policies are motivating the employee
(b) Policies are motivating the family members of employee
9. What are the types of REWARDS usually given to the employees?
(a)Monetary
(b) Non-monetary
(c) Both
(d) No defined rewards
10. Has your superior recommended a factor in your getting the promotion?
(a) Yes (b) No
11. Is the promotion policy transparent and clearly laid down in your
organization?
(a) Yes (b) No
12. How did you learn about the job at RINL?
(a) Through a job announcement
(b) Follow the employees
(c) Follow the your superior
13. Are the HRD programmes being arranged are sufficient for development of
the executives?
(a) Yes (b) No
14. Is experience and years of service taken care for your promotion?
(a) Considered (b) Not considered
15. What is the upper and lower limit in case of monetary rewards for
recognition?
(a) Less than 500
(b) More than 500 but less than 1000
(C) More than 1000 but less than 2000
(d) More than 2000
16. Does training and development improve performance?
(a) Yes (b) No
17. Should there be a policy for de-formation?
(a) Yes (b) No
18. Is there a clear laid down promotion policy in your organization?
(a) Yes (b) No
19. Promotions are required to keep the moral of the employees high. Do
you agree?
(a) Yes (b) No
20. Promotions are necessary to keep the employees with the organization.
Do you agree?
(a) Yes (b) No
21. Should performance be the only criteria for promoting employer?
(a) Yes (b) No
22. Is the laid down promotion policy followed in letter and spirit i.e., strictly?
(a) Yes (b) No
23. Should seniority be the one and only factor in promoting employees?
(a) Yes (b) No
24. Should promotions be linked to secession planning i.e., future planning for
higher positions?
(a) Yes (b) No
25. What do you suggest to improve the existing rewards policies?
(a) ..
(B)..
(C)..






























BIBLIOGRAPHY


S. KHANDKHA S. CHAND PUBLICATION
K.K.AHUJAS (HRM) KALYANI PUBLISHERS

ARUN MONAPPA& MIRZAS PERSONAL MANAGEMENT
TATA McGRAWHILL

ASWATHPPA HRM&PERSONAL MANAGEMENT
TATA McGRAWHILL

P.SUBBA RAO HRM&IR
HIMALYA PUBLISHERS

V.S.P.RAO & T.S.NARAYANA RAO MANAGEMENT
PREMIER BOOK COMPANY
C.B.MAMORIA
S.V.GANKAR


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