Human Resource Management

Contents
QUESTIONING THE STATUS QUO: AN INDUSTRIAL GAME
CHANGER ................................................................................ 2
BREAKING LUMPS OF COAL : A DECISIVE IR SCENARIO .......... 3
STRENGTHENING THE IMPLEMENTATION OF 70:20:10
DEVELOPMENT FRAMEWORK AT TSL ..................................... 5

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Human Resource Management

QUESTIONING THE STATUS QUO: AN INDUSTRIAL GAME CHANGER
Introduction
Tata Steel often faces industrial disputes being raised by outside union on behalf of
Company employees, ex-employees in cases arising out of employment, service conditions
and demand for re-instatement after dismissal. The Company has to spend huge amount of
intellectual, financial resources on fighting cases which take decades to settle thereby
proving to be a great burden on the Company. Most of the cases thus filed hold little merit
and miniscule relevance to the cause for which they have been taken up.
The interference of external, non-recognized unions in Company matters presents
prospective challenges for the Industrial Relations scenario of the Company besides diluting
the strong Union-Management bond which is the legacy of Tata Steel.
Background
Recently, one Industrial Dispute was raised by the Secretary, Koyla Ispat Mazdoor
Panchayat, Union P.O. Jharia, Dist. Dhanbad before Asst. Labour Commissioner , Dhanbad
for denial of employment to the dependant son of an ex-employee.
The Sr.Mgr Govt. Liaison & Statutory Compliance Raw Materials representing the case on
behalf of the Management was in dilemma whether to submit a written reply to the
representation as had been done in the past or to challenge the locus-standi of the outside
Union and verify its bonafide and legal status in raising this dispute. However, a
revolutionary stand to deviate from the five decade old past practice shall require a lot of
effort to convince the management apart from the appropriate government authority.
Problem Statement/Challenges Faced
For decades altogether, the stand of the Company was to contest these cases in the Labour
Court and Industrial Tribunals facing the un-recognized union during conciliations.
If the Company continues to pursue its five decade old stand then the quantum of such
cases shall continue to increase with outside unions taking up cases on behalf of the exemployees and thereby putting a huge drain on the intellectual and financial resources of
the Company.
If the Company contests the locus-standi of the outside Union, then on what grounds?
Critical Case Questions
1. As the HRM executive in-charge of such cases what proposals will you put before the
management?
2. In the light of relevant Labour Laws how shall you contest the case before the
appropriate government authority?
3. Should the management of Tata Steel change its practice of dealing with such cases
before the appropriate government authority, if yes why?

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Human Resource Management

BREAKING LUMPS OF COAL : A DECISIVE IR SCENARIO
Introduction
Jamadoba Washery (JCPP) is an important coal processing plant of Jharia Division . JCPP has a
capacity of 1MTPA. JCPP derives its coal from the three Tata Steel mines namely Digwadih,
Jamadoba, 6&7 Pits Colliery. In addition to the above, Tata Steel washes purchased coal from
BCCL. Therefore, there are two sources of raw coal 1. Captive mines of the Company 2. Purchased
coal from BCCL.
The coal purchased from BCCL ( Bharat Coking Coal Limited) contains big rocks and boulders
which need to be broken into small pieces prior the feed being sent to JCPP. Sending big lump
coal shall damage the washery and hamper operations.
To meet the aforementioned challenge, the management has invested crores in purchasing a
hydraulic machine called Lump Breaker Operator. This joy-stick operated machine uses hydraulic
force to break the raw coal purchased from BCCL into small pieces fit to be fed to the washery.
It is projected that by August 2015 the percentage of BCCL coal washed at JCPP shall be to the
tune of 40%. Due to decrease in raw coal prices by BCCL it is in the interest of the Company to
purchase the coal from BCCL and capitalize on the market scenario to decrease the cost of coal
washed and thereby provide washed coal at low prices to Jameshpur Steel Plant.

BCCL %
50
40
30
20
10
0

39
30
22

JAN

22

FEB

23

MAR

30

31

18

APRIL

BCCL %

MAY

JUNE

JULY

AUG

Coal washeries occupy a very pivotal role in the backbone of the Company. In any contingent
situation, coal supply from the three mines can be compensated by each other or through
purchased coal from BCCL. However, same holds not true for a Coal Washery. Any IR scenario or
technical breakdown which hampers the washery operations is to the absolute detriment on
Company Finances and cost.
Background
The recognized Union had taken up the case of four persons ( Washery Attendants) by
designation, who were at that time operating the Lump Breaker Operator. The contention of the
Union was that since Attendants are a semi skilled designation, however the operations of a joy
stick operated hydraulic machine warrants considerable skill and apercu which the four
attendants have demonstrated in continuous operations of the Lump Breaker hence
management should commensurate the grade of the four persons with their skills. However, the
recognized union contested that since the pay and grade of an Attendant i.e Cat II do not
commensurate with the skill required for the job hence there should be a new designation of
Lump Breaker Operator and the Management should decide on the appropriate pay and grade
structure. The establishment of JCPP conducted interviews for the position FCO Lump Breaker
Operator, communicating to the successful workers that they shall be given grade of Technical C

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Human Resource Management

(monthly rated).
This resulted in an impasse on account of the fact that the job responsibilities of a Lump Breaker
Operator did not commensurate with the highly paid grade structure of Technical C, F.C.O.
To add further to the complications, by virtue of an award arising out of an industrial dispute, the
position of Fitter cum Operator ( F.C.O) is a Technical C position. It was communicated to the
employees that they shall be F.C.O. and operate Lump Breaker Operator. This has implications for
the Company, as other employees working in equivalent skilled designation can cite LBO case as a
precedent to revise their existing grades .
Details of Grade and Wage structure of Jharia
DAILY WAGE GRADES
MONTHLY WAGE GRADES
CAT
I
II
III
IV
V
VI

BASIC RANGE
371.35-3%--670.70
379.61-3%-685.62
391.23-3%-706.60
399.26_3%-721.11
415.83-3%-751.04
433.94-3%-783.74

CAT

BASIC RANGE

A-1

17555-3%-32660

13610-3%-24585

12635-3%-22825

11695-3%21125

10825-3%-19555

10375-3%-18740

10260-3%18535

10115-3%-18270

9905-3%-17890

Problem Statement/Challenges Faced

In light of the aforementioned, there was an impasse. There was a deadlock regarding the what
grade and pay should be given to those workers who are operating the newly installed machine
of Lump Breaker.
With coal cost rising, and purchased coal from BCCL forming 40% of the input of Jamadoba
Washery, this problem if not resolved shall have a very detrimental impact on the cost, volume of
coal processed in Jamadoba Group thereby reflecting on the cost of coal supplied to Jameshdpur
Steel Plant and subsequently impacting the cost of steel produced by Tata Steel.
Critical Case Questions
1. As unit HRM executive how shall you resolve the deadlock of wage & structure?
2. What legal remedies are available to you take to supersede the grade and wage structure
already communicated to the employees operating Lump Breaker?
3. What steps shall you take to preclude the possibility of escalation of the issue to the
Industrial Tribunal?
4. As a unit HRM executive, how shall you bring about a solution to this critical deadlock?

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Human Resource Management

STRENGTHENING THE IMPLEMENTATION OF 70:20:10 DEVELOPMENT
FRAMEWORK AT TSL
Introduction
Tata Steel Limited adopted 70:20:10 framework in 2009 and tied it with its on-line PMS under
SAPHR. Elaborate handholding & training of Officers and HRBP was conducted to ease the
implementation. Over a period of time, the 70 & 20 part started to lose its focus with the officers,
however 10% classroom training part continued and the model remained but lost its efficacy.
Background
70:20:10 framework originally developed by CCL means development of individual comes 70%
thru on-the-job thru or exposure; 20% thru coaching & mentoring or experience and balance 10%
can be achieved thru the classroom or web based learning. TSL adopted this framework in 2009
and tied it with its on-line PMS under SAPHR. Elaborate handholding & training of Officers and
HRBP was conducted to ease the implementation. Over a period of time, the 70 & 20 part started
to lose its focus with the officers, however 10% classroom training part continued and the model
remained but lost its efficacy. Several improvement oriented internal studies were done to
improve the application & relevance of the same from time to time. In 2015-16 TSL had
revamped & launched its PMS and branded it as PACE (Performance Assessment & Capability
Enhancement) which included refurbished Managerial competency framework also. In the same
year the 702010 model was also re-visited to provide learning elements against each of the
Managerial competencies to help in determining individual learning/development goals.
Currently the Manager/Appraiser identifies two key competencies out of the nine Managerial
competencies for development based on his/her assessment which becomes part of officers
individual development plan (IDP) for the subsequent year. There is also provision to identify &
add functional / technical areas of improvement as a part of the IDP.
Problem Definition:
While the classroom training (10 part) including behavioural & functional areas are being
strengthened by the in-house training departments (TMDC & SNTI) but there is a strong need for
strengthening the 70 & 20 part further to improve the quality of learning/development for both
Managerial competencies & functional/technical areas.
Critical Case Questions
Based on the above background you are required to propose / develop strategies around the
following:
1. With mix of Gen X, Gen Y and Millennial now part of its white collared workforce, how can
TSL make this framework relevant & attractive for development for such a mix?
2. How can the model be relevant for a complex organisation which has diverse workforce of
professional across in Medical, Aviation, R&D, Mining etc. besides the normal plant
operations workforce?
3. How have the best practices around the globe adopted this model and how are they
ensuring its effectiveness?
4. How can technology be leveraged to strengthen this model further?
5. Suggestions for improving the framework implementation to help in development of the
executives while developing both their Managerial competencies and functional areas.

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