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1 Introduction 2

2 Company Profile 6

3 Literature on Motivation 26

4 HR Practices at VSP 59

5 Survey & Analysis 82

6 Findings 109

7 Suggestions & Conclusions 112

8 Bibliography 118

1

INTRODUCTION

2

Chapter – 1

INTRODUCTION

Motivation has been one of the most widely discussed and researched topics in

the area of management literature for several decades. Both scholars and practitioners

have been heralding the importance of leaders to the revitalization and success of

organizational performance. Despite the great interest in the area of leadership, many of

the studies have been conducted on middle managers in organizations and primarily

concerned with the relationship between leaders and their followers.

In recent years the attention of much management research has been on executive

leadership involving CEOs, senior executives, and the top management team.

Executive leadership focuses on the executives who have overall responsibility for an

organization and are surrounded by ambiguity and complexity of the environment. It

also includes their characteristics, what they do, how they do it, and particularly, how

they affect firm outcomes. An examination and understanding of top leaders can

increase an understanding of many organizational phenomena.

The word “Motive” appeared in the English language around 1300 A.D. And the term

“Motivation” turned up in about 1800 A.D. However the issues of leadership are as old

as human civilization. As soon as some individuals began dominating others,

organizing to fight aliens and protecting their own people, they emerged as Leaders. As

part of Motivation research, there have been many attempts to understand effective

Motivation. Systematic research first focused on the trait theory. Researchers have tried

to identify universal factors that are associated with successful leaders. The subsequent

research was concerned with trying to identify effective Motivation behaviour.

Research within this paradigm became known as behavioural school of Motivation

such as the Michigan State Group and the Ohio State Group. Researchers then began

examine the influence the process between leaders and others and then to a more

situational view of Motivation. There also exists another group of Motivation theories

which on the role of the leader with certain responsibilities and functions.

3

NATURE OF THE STUDY:

Motivation is said to be a Universal Phenomenon. It has been a subject of intense

debate and controversy among theorists, psychologists, historians and business

practitioners since the emergence of civilization. There has been a major controversy

whether Motivation should be viewed as a specialized role. One group of scholars view

Motivation as a great role with responsibility and functions. Some view in terms of

information process.

OBJECTIVES FOR STUDY:

1. To study the theoretical framework of Motivation

2. To study the effectiveness of Motivation in VSP.

3. To know the skills of the Employees and their proper implementation.

4. To examine the impact of executive Motivation on organizational performance.

METHODOLOGY:

The project entitled “Motivation” at Visakhapatnam steel plant and its impact on the

employees was carried out for eight weeks at Vishakhapatnam steel plant .The study

was carried out by collecting; analysing data collected both from primary and

secondary sources.

Primary data collected by discussion with managers. A questionnaire was prepared and

administrated on a sample of 40 containing different level of employees.

The data collected is analysed to know the Motivation qualities of different levels of

employees and their contribution towards the organization.

Secondary data is collected from company profile and internet regarding the industry

and also from books.

4

LIMITATIONS:

In a study of this nature, the finding from the survey is based on the perception of the

respondents and they are influenced by their own bias, values and experiences etc.,

while responding to the survey or questionnaire.

Hence the proposed survey would also have such elements of bias and individual

values and beliefs. Therefore the finding of the survey and resulted suggested future

course of action may have such normal limitation in the suitability and utility.

5

COMPANY PROFILE

6

Chapter – 2

RASHTRIA ISPAT NIGAM LIMITED

VISAKHAPATNAM STEEL PLANTINTRODUCTION:

The Government of India has decided to set up an integrated Steel Plant at

Visakhapatnam to meet the growing domestic needs of steel. Visakhapatnam Steel

Plant was the effect of the persistent demands and mass movements. It is another step

towards increasing the country’s steel production.

The decision of the Government to set up an integrated steel plant was laid down by the

then Prime Minister Smt. Indira Gandhi. The Prime Minister laid the foundation stone

on 20th January 1971.

Visakhapatnam Steel Plant, the first coastal based Steel Plant of India is located, 16

KM South West of city of Destiny i.e. Visakhapatnam. Bestowed with modern

technologies, VSP has a installed capacity of 3 Million Tonnes per annum of

Liquid Steel and 2.656 Million Tonnes of saleable steel. 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 project was estimated to cost to Rs. 3,897.28 crores based on prices as on 4 th

Quarter of 1981. However, on completion of the construction and commissioning of the

whole Plant 1992, the cost escalated to Rs.8, 755 crores based on prices as on 2nd

Quarter of 1994.

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Unlike other integrated Steel Plants in India, Visakhapatnam Steel Plant is one of the

most modern steel plants in the country. The plant was dedicated to the nation on 1 st

August 1992 by the then Prime Minister, Sri.P.V.Narasimha Rao.

New technology, large-scale computerization and automation etc, are incorporated in

the Plant at the international levels and attain such labour productivity the

organizational manpower has been rationalized. The manpower in the VSP has

been limited to17, 500 employees. The plant has the capacity of producing 3.0 million

tones of liquid steel and 2.656 million tones of saleable steel.

It has set up two major Blast Furnaces, the Godavari and the Krishna, which are the

envy of any modern steel making complex.

The economy of a nation depends on core sector industries like iron and steel. Steel is

the basic input for construction, machines building and transport industries. Keeping in

view the importance of steel the following integrated steel plant with foreign

collaborations was constructed in the public sector in the post independence era.

VISION:

To be a continuously growing a world – class company we shall

Harness our growth potential and sustain profitable growth.

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

customers.

Creative 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.

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.

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OBJECTIVES:

Expand plant capacity to 6.3 Mt by 2011-12, with the mission to expand further

in subsequent phases as per the corporate plan.

Revamping existing blast furnaces to make them energy efficient to

contemporary levels and in the process increase there capacity by 1Mt, thus

total hot metal capacity to 7.5 Mt

Be amongst top five lowest cost steel producers in the world.

Achieve higher levels of customer satisfaction

Vibrant work culture in the organisation

Be proactive in conserving environment, maintaining high levels of safety and

addressing social concerns.

CORE VALUES:

COMMITEMENT

CUSTMER SATISFACTION

CONTINUOUS IMPROVEMENT

CONCERN FOR ENVIRONMENT

CREATIVITY & INNOVATION

VSP takes all necessary actions for the fulfilment of regulatory requirements. It has

decided departments for this purpose. Energy conversation, environmental

preservation, safety in work place, and occupational health gets highest priority in the

company.

VSP Technology: State – of – the – Art:

7 meter tall Coke Oven Batteries with coke dry quenching.

Biggest Blast Furnaces in the Country.

Bell-less top charging system in Blast Furnace.

100 % slag granulation at the BF Cast House.

Suppressed continuous casting of liquid steel.

“Temporal” and “Stelmor” cooling process in LMMM&WRM respectively.

Extensive waste heat recovery systems.

Comprehensive pollution control measures.

9

Major Sources of Raw Materials:

Raw Material source Source

Iron Ore Lumps & Fines Bailadilla, MP

BF Lime Stone Jaggayyapeta, AP

SMS Lime Stone UAE

BF Dolomite Madharam, AP

SMS Dolomite Madharam, AP

Manganese Ore Chipurupalli, AP

Boiler Coal Talcher, Orissa

Coking Coal Australia

Medium Coking Coal(MCC) Gide/swang/Rajarappa/Kargali

Water Supply:

Operational water requirement of 36 MGD is being met from the YELERU water

supply Scheme.

Power Supply:

Operation power requirement of 180 to 200 MW is being met through Captive Power

Plant. The capacity of the power plant is 286.5 MW. VSP is exporting 60 MW power to

APSEB.

TECHNOLOGICAL HIGHLIGHTS OF VSP 

First shore based integrated steel plant.

Selective crushing with pneumatic separation of coal blend.

7 Meter tall Coke Ovens.

Dry Quenching of hot coke and production of steam and power from hot inert

gases. 10

Base-mix yard for the Sinter Plant.

3200 cu. m Blast Furnace having belled-less top equipment with conveyor

charging.

Granulation of 100% molten slag at the Cast House.

B.F. top pressure recovery turbine for power generation.

Desulphurization facilities for pre-treatment of hot metal.

MAJOR PRODUCTS OF VSP:

STEEL PRODUCTS BY PRODUCTS BY PRODUCTS

Angles Nut coke Granulated slag

Billets Coal tar Lime fines

Channels Anthracene oil Ammonium sulphate

Beams HP Naphthalene

Squares Benzene

Flats Toluene

Rounds Zylene

Re bars Wash oil

Wire rods Coke dust

MAJOR DEPARTMENTS:

Department Annual Capacity (‘000 T) Units (3.0 MT Stage)

Coke Ovens 2,261 4 Batteries of 67 Ovens & 7 Mtrs. height

Sinter Plant 5,256 2 Sinter machines of 312 Sq. Mtr. grate area each

Blast Furnace 3,400 2 Furnaces of 3200 Cu. Mtr. volume each

Steel Melt Shop 3,000 3 LD Convertors each of 133 Cu. Mtr. Volume and six 4 strand bloom casters

LMMM 710 4 stand finishing Mill

WRM 850 2 x 10 stand finishing Mill

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MMSM 850 6 stand finishing Mill

MAJOR DEPARTMENTS:

1. RAW MATERIAL HANDLING PLANT (RMHP):

Visakhapatnam Steel Plant requires quality materials viz, Iron Ore, fluxes (lime stone,

dolomite), coking and non-coking coals etc, to the tune of 12-13 mt for producing

3million tons of liquid steel. To handle such a large volume of incoming raw materials

received from different sources and to ensure timely supply of consistent quality of

feed materials to different VSP consumers, raw material handling plant serves a vital

function. This unit is provided with elaborate uploading, blending, stacking&

reclaiming facilities viz. wagon tipplers, ground and track hoppers, stock yards

crushing plants, vibrating screens, twin boom stickers and blender recliners.

2. COKEOVENS & COAL CHEMICAL PLANT (CO&CCP):

Blast furnaces, the mother units of any steel plant require huge quantities of strong,

hard and porous solid fuel on the form of hard metallurgical coke for supplying

necessary heat for carrying out the reduction and refining reactions besides acting as a

reducing agent.

Coke is manufactured by heating of crushed coking coal (< 3mm) in absence of air at

temperature of 1000 degrees centigrade and above for 16 to 18 hours. A coke oven

comprises of two hollow chambers namely coal chamber and heating chamber a

gaseous fuel such as blast furnace gas; coke oven gas etc is burnt. The heat so

generated is conducted through the common wall to heat and carbonize the coking coal

placed in the adjacent coal chamber.

At VSP there are three coke oven batteries, 7mt tall and having 67 ovens each. Each

oven is having a volume of 41.6cu.mt & can hold up to 31.6 tonnes of dry coal charge.

The carbonization takes place at 1000-1050 deg centi in absence of air for 16 to 18

hours.

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Red hot coke is pushed out the oven and sent to coke dry cooling plants for cooling to

avoid its combustion. There are three dry cooling plants (CDCP) each having a 4

cooling chambers.

The capacity of each cooling chamber is 50 to 52 TPH Nitrogen gas is used as the

cooling medium. The heat recovery from nitrogen is done by generating steam and

expanding in two back pressure turbines to produce 7.5 powers each. The coal

chemicals such as Benzene, tar, ammonium sulphate etc are extracted in coal chemical

plant from CO gas. The gas is used as by product fuel by mixing it with gases such as

BF gas, LD gas etc.

3. SINTER PLANT (SP):

Sinter is a hard porous ferrous material obtained by agglomeration of iron ore fines,

coke breeze, and lime stone fines, metallurgical wastes etc.

Sinter is a better feed-material to blast furnace in comparison to iron ore lumps and its

usage in blast furnaces help in increasing productivity, decreasing the coke rate

&improving the quality of the hot metal produced. Sintering is done in 2noas. Of

312sq.mt, sinter machines of Dwight Lloyd type by heating the prepared feed on a

continuous metallic belt made of pallets at 1200-1300 deg c.18

Hot sinter discharged from sintering machine is crushed to +5mm-50mm size and

cooled before dispatching to blast furnaces. The dust laden air from the machines are

cleaned in the scrubbers and electro static precipitators to reduce the dust contents to

100mg/m3 level before allowing to escape in to the atmosphere and thus helping in

maintaining a clean and dust pre environment.

5. BLAST FURNACES (BF):

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Hot metal is produced in blast furnaces which are tall vertical furnaces. The furnace is

named blast furnace as it runs with blast with high pressure and temperature. Raw

materials such as sinter/iron ore/ lumps, fluxes and coke are charged from the top and

hot blast at 1100 deg c – 1300 deg c and 5.75 kg pressure is blown almost from the

bottom. The furnaces are designed for 80% sinter in the burden.

VSP has two 3200 cu. mt. blast furnaces equipped with Paul worth bell less top

equipment with conveyor charging named as Godavari and Krishna after the two rivers

of A.P.

The two furnaces with novel curricular cast house and four tap holes each are capable

of producing 9700 tonnes of hot metal daily or 3.4 million tonnes of low sulphur

annually.

6. STEEL MELT SHOP (SMS):

Steel is an alloy of iron with carbon up to 1.8%, hot metal produced in blast furnace

contains impurities such as carbon silicon manganese silver and phosphorus is not

suitable as a common engineering metal. To improve the quality the impurities are to

be eliminated by oxidation process.

VSP produces steel employing 3 no’s of top blown oxygen converters called L.D.

converters which is having 133 cu mitre. Volume capable of producing 3million tones

of liquid steel annually. Liquid steel produced in L.D. converters is solidified in the

form of blooms in continuous bloom casters. To homogenize the steel and to raise its

temperature if needed steel is first routed through, organ releasing station input

(injection refining and up temp.)/ ladle furnaces.

7. LIGHT AND MEDIUM MERCHANT MILL (L.M.M.M.):

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LMMM comprises of two units. In the billet down mill 250 x 320mm size blooms are

rolled into billets of 125 x 125 mm size. After heating them into two nos. of beam

furnaces of 200 tones capacity each. These billets are supplied from this mill to bar mill

of LMMM and wire rod mill.

The billets for rolling in bar mill or LMMM are first heated in two strand roller earth

furnace of 200 t/h capacities to temp. Of 1150 deg c to 1200 deg c. the mill is

facilitated with temp. Core heat treatment technology evaporative cooling system in

walking beam furnaces, automated piling and bundling facilities and computerization.

This mill designed to produce 7, 10,000 tonnes per annum of various finished products

such as rounds, rebar’s, squares, flats, angles, channels.

7. WIRE ROD MILL (WRM):

Wire rod mill is a four strand, 25 strands; fully automated and sophisticated mill. The

mill has a four zone combination type reheating furnace for heating the billets received

from billet mill or LMMM or rolling temp. of 1200 deg c. the mill produces rounds in

5.5 – 12mm range and rebar’s in 8-12mm range. The mill is equipped with standard

and retarded steamier lines for producing

High quality wire rods in low medium and high carbon grade meeting the stringent

national and international standards.

8. MEDIUM MERCHANT AND STRUCTURAL MILL (MM&SM):

This mill is a high capacity consisting of 20 strands arranged in three trains. The feed

material to the mill is 250 x 250 mm size bloom which is heated to rolling temp. of

1200 deg c in two walking beam furnaces. The mill is designed to produce 8, 50,000

tones /annum of various products such as rounds, squares, flats, angles, channels, t-

bars, IPE beams/he beams.

9. ROLL SHOP & REPAIR SHOP (RS & RS):

Roll shop & Repair shop is in the complex of Rolling mills catering to the needs of

mills in respect of roll assemblies, guides little maintenance spares and roll pass design.

Geographically this dept. is in three areas as Roll shop-1, Roll shop-2 and Area Repair

Shop. The main activity of this shop is Roll pass Design, grooving of rolls,

assembly of rolls with bearings.15

For the first time in the country, VSP has adopted CNC technology for grooving of

steel rolling mill rolls. High constant respective accuracy, higher productivity, use of

standard tool for any groove turning, elimination of the use of different templates,

easier to incorporate groove modification etc., are some of the advantages of CNC

lathes over the conventional one.

The Roll Pass design section takes care of design of grooves for development of

new sections, modification of existing pass designs for improving the productivity

and quality. Preparation of rolling schedules, groove detail and distribution and

template drags, part programming for grooving of rolls on CNC lathes. This section

also looks after procurement of rolls, establishment and improvement of their

performance, failure analysis of rolls etc.

CHART PRODUCTION FLOW CHART

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Medium Merchant &

Structural Mill

Raw Materials Handing Plant

Coke Ovens & Coal Chemical

DepartmentSinter Plant

Blast Furnace

Converter Shop

CCD

Light Medium Merchant Mill

Wire Rod Mill

EXPANSION PLAN:

Product Capacity Present

(MT)Future Additional Facilities Envisaged

Hot Metal 4.00 6.50 New BF with 3800 Cum capacity

Charger Sinter 5.26 8.50 New Sinter Plant of 400 Sq.m area

Liquid Steel 3.70 6.30SMS-2 with two 150 CuMConverters, Two 6 std BilletCasters & One std Round Caster

Saleable Steel 3.34 5.72

Wire Rods 1.05 1.65 New WRM of 600,000/Annum

Bars & Structural 1.95 3.40 New SBM of 750,000 T/AnnumNew SM of 700,000 T/Annum

Seamless Pipes - 0.30 Seamless Tube Plant of 300,000 T/Annum

Pollution Control Measures adopted in VSP:

Defining the scope of its activities Incorporating all legal and

other requirements applicable to VSP

Agreeing to communicate its “significant aspects” to external

parties through an “Annual Report” each year

Providing training to all contractors’ workers (before starting any

work) and giving them a copy of the “Policy on Safety, Health & Environment”

in 3 languages

Stipulating the essential environmental requirements in the

“General Conditions of Contract” for compliance by all suppliers of

equipment/services to VSP

The EMS covers 47 departments viz. operation, maintenance and

service departments including the CISF fire wing, training and development

centre and materials management department.

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Marketing Network:

VSP has a wide network of Regional Offices and Branch Offices spread across the country

for marketing of its products. There are 5 Regional Offices and 23 Branch Offices. Stock

Yards are attached to each of the Branches. These are catering to the needs and

expectations of the customers in various segments. The details of Regional Offices and

Branch Offices are brought out below:

Region Location of Regional Office Branches

East Kolkata Bhuvaneswar, Kolkata, Patna

North DelhiAgra, Chandigarh, Dehradun,

Delhi, Faridabad, Ghaziabad, Jaipur, Kanpur, Ludhiana

West MumbaiAhmedabad, Indore, Mumbai,

Nagpur, Pune

South Chennai Bangalore, Chennai, Kochi, Coimbatore

Andhra Visakhapatnam Hyderabad, Visakhapatnam

INDIA’S 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 India is operating with

open-hearth furnaces.  The existing equipment, energy and labor in Indian Steel

industry are much low than the 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 50-100% higher than that of the International norms

The Indian steel industries have developed a bit in the recent years. The production is

going on properly. Many techniques are being implemented in the steel industries. The

18

country’s 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 ruling the country.  The production steel

in significant quality started after a1990.  The growth of steel industry can be

conveniently started by dividing the period into pre and post independence era.  In the

period of pre Independence steel production was 1.5 million tones per year, which was

raised to 9.0 million tones of target by the seventies.  This is the present of the bold

steps taken by the government to develop this sector. 

PROBLEMS OF STEEL INDUSTRY:

Non-availability of good quality raw material is another problem faced by iron and

steel industry. The modern giant blast furnace needs high-grade iron ore and good

metallurgical coal.

Further, the industry is unable to get good quality coke and manganese is which the

principal 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 

Bhili had to execute orders for shipment of rails to Iran, South Korea and Malaysia.

Because of technical limitations, Rourkela plant is unable substitute aluminum of Zinc

for the production of galvanized sheet apart from source internal technical problems;

our technology in the field of steel production is not a developed one when compared to

other advanced countries. For instance, Japan is production quality steel in spite of

importing raw material and additional material from other country. 

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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 the control of Govt. The Govt. decided to

remove statutory control over the price and distribution of all, but a few categories with

effect from 1st March 1964 the Govt., supervise the steel and iron inducted according to

the recommendation of Raja committee. But Raj committee in fixing the steel price

didn’t regulate the price of the raw materials. 

Steel Plants with Foreign Collaborations 

S No PlantCollaboration Capacity of Finished Steel

Products

1 Rourkela Steel Plant West Germany

2 Bhili Steel Plant Erstwhile USSR

3 Durgapur Steel Plant Britain

4 Bokaro Steel Plant Est. USSR

Present Scenario of Indian Steel Industry:

India is uniquely placed to become a very large producer and consumer of finished steel

products in the world. Substantial reserves of high grade iron ore, low wage rates;

technical and managerial skills of a high order have all enabled India to gain this

stature, by becoming 4th largest producer of steel in the world. Unfortunately for the

Indian steel industry, the price and distribution controls to which it was subjected till

about economic liberalization process began in the early 1990’s did not permit the large

Integrated steel plants to modernize their steel manufacturing facilities or to upgrade

their technologies to the state of art levels from time to time.

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With the economic liberalization that was initiated in 1992, Indian steel Industry has to

accept the inevitable i.e. to appreciate the implications of low import duty rated, face

foreign competition and some how improve its strengths and competitive edge to

produce good quality products at lower prices and learn to survive in the market place.

Following liberalization, the steel Industry is well set on the path of globalization. The

dynamics of the world steel industry has a close relation with Indian steel Industry.

Presently in India, Steel products are being produced from four different sources viz.,

Integrated Steel Plants

Mini Steel Plants

Re-rolling Mills

Alloy & Special Steel Plants

Integrated Steel Plants have larger capacity and produce Steel from basic raw materials

and the other three categories mentioned are characterized by low investment and low

break-even point.

Characteristics of Integrated Steel Plants:

They have large capacities.

Highly capital intensive.

They have long gestation period.

Labour intensive.

They would have all facilities including raw materials resources, water supply,

power supply, testing and inspection facilities, township facilities, medical,

educational and recreational etc.

Inter dependency of all the processing units on the proceeding and succeeding

units in the path of materials flow.

A potential source for earning foreign exchange through exports.

They serve as centers for the development of ancillary industries.

They are major consumer of refractory materials.

The integrated Steel Plants in India are:

Rourkela Steel Plant

Bhilai Steel Plant

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Bokaro Steel Plant

Durgapur Steel Plant

Indian Iron and Steel Company (IISCO)

Tata Iron and Steel Company (TISCO)

Visakhapatnam Steel Plant (VSP)

EXIM POLICY (2002-07):

To facilitate sustained growth in exports to attain a share of 1% of global

merchandise trade.

To stimulate sustained economic growth by providing access to essential raw

materials, intermediates, components, consumables and capital goods required

for augmenting production and providing services.

To enhance the technological strength and efficiency of Indian agriculture,

industry and services, thereby improving their competitive strength while

generating new employment opportunities, and to encourage the attainment of

internationally accepted standards of quality.

To provide consumers with good quality goods and services at internationally

competitive prices while at the same creating a level playing field for the

domestic producers.

The New Industrial Policy Regime:

The New Industrial policy has opened up the iron and steel sector for private

investment by

(a) Removing it from the list of industries reserved for public sector and

(b) Exempting it from compulsory licensing.

Imports of foreign technology as well as foreign direct investment are freely permitted

up to certain limits under an automatic route. Ministry of Steel plays the role of

facilitator, providing broad directions and assistance to new and existing steel plants, in

the liberalized scenario.

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THE GROWTH PROFILE

STEEL:

The liberalization of industrial policy and other initiatives taken by the Government

have given a definite impetus for entry, participation and growth of the private sector in

the steel industry. While the existing units are being modernized/expanded, a large

number of new/green field steel plants have also come up in different parts of the

country based on modern, cost effective, state of-the-art technologies.

At present, total (crude) steel making capacity is over 72.76 Million Metric Tons

stands India, the 4th largest producer of steel in the world, has to its credit, the capability

to produce a variety of grades and that too, of international quality standards. As per

the ratings of the Prestigious “World Steel Dynamics”, Indian HR products are

classified in the Tier II category quality products- a major reason behind their

acceptance in the world market. EU, Japan have qualified for the top slot, while

countries like South Korea, USA share the same class as India.

MARKET SCENARIO

The year 2004-05 was a remarkable one for the steel industry with the world crude steel

production crossing the one billion mark for the first time in the history of the steel

industry. The world GDP growth about 4% lends supports to the expectations the steel

market is all set for strong revival after prolonged period of depression .The Indian

economy also become robust with annual growth rates of 7-8 % this will provide a

major boost the steel industry. With the nations focus on infrastructure development

coupled with the growth in the manufacturing sector, the Indian steel industry all set for

north ward movement. The draft national steel police envisage production of 60 Mt by

2012 and 110Mt by2020, and annual growth rate of 6-7%. All this should there fore

augur well for the Indian steel industry.

23

Interpretation: The operating profit of the company is in negative figures due to

losses faced by the company due to its indebtedness. The company has taken loans and

it had to pay huge interests on those loans. But now the financial conditions are better

because the company had made net profit of `650 Crores for the year 2009-10.

SWOT Analysis of RINL:

The strengths and weaknesses of RINL brings forth the opportunities and threats facing

RINL, with a view to buildings up on the strengths, exploiting the opportunities,

improving upon the weaknesses and converting the threats into opportunities. The

strengths, weaknesses, opportunities and threats of RINL are as under:

S-STRENGTHS

State-of-the-art technology

High commitment to achieve capacity levels

Areas of excellence

Economies of scale

High expansion potential

Strong commitment to conserve environment

W-WEAKNESSES

High capital rated charges

Low return product-mix

Productivity below international levels

Practices not as par with international standards

O-OPPORTUNITIES

Shore based

Sizeable export markets

Access to import resources

Proximity to southern markets

Increasing domestic demand due to thrust on infrastructure development

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T-THREATS

Rising input costs

Increasing competition

Sensitive to exchange rate variation

Possibility of import duties declining further

Excise duties continue to be high

Lack of alternative sources for major raw materials

Major market place(North & West) located far off

Infrastructure continue to be inadequate

VSP’s state-of-the-art technology, high expansion potential and economies of scale

would be utilized for off setting the disadvantages of low return product-mix and high

capital related charges. Shore based location of the company would promoted export

and import of quality raw materials. Proximity of VSP to southern markets can help in

capturing larger market share in south. VSP would meet the increasing competition

through its quality products and customer orientation.

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MOTIVATION

26

Chapter-3

M O T I V A T I O N

Definition:

Motivation is a powerful tool in the hands of leaders. It can persuade convince and

propel People to act.

internal state or condition that activates behaviour and gives it direction;

desire or want that energizes and directs goal-oriented behaviour;

Influence of needs and desires on the intensity and direction of behaviour.

Concept of motivation:

The word “motivation” is often used to describe certain sorts of behavior. A definition

of motivation: MOTIVATION CAN BE DEFINED AS A CONCEPT USED TO

DESCRIBE THE FACTORS WITHIN AN INDIVIDUAL WHICH AROUSE,

MAINTAIN AND CHANNEL BEHAVIOUR TOWARDS A GOAL.

Another way to say this is that MOTIVATION IS GOAL-DIRECTED BEHAVIOUR.

While it is easy to see the things that a person does, it is much harder to guess at why

they are doing it.

Since it is part of a manager’s to get their work done through others, managers need to

understand why people do things (that is, what motivates them?) so that she/he can

convince their employees to work towards the goals of the organization.

Performance of any organization would results from the interaction of physical,

financial and human resources. The first two are inanimate; they are translated into

“productivity” only when the human element is introduced. In dealing with employees,

however, an intangible factor of will, volition or freedom of choice is introduced and

workers can increase or decrease their productivity as they choose. This human quality

gives rise to the need for positive motivation.

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DEFINITION AND CHARACTERISTICS OF MOTIVATION :

Definition-1:

In psychology, motivation refers to the initiation, direction, intensity and persistence of

behavior . Motivation is a temporal and dynamic state that should not be confused with

personality or emotion. Motivation is having the encouragement to do something. A

motivated person can be reaching for a long-term goal such as becoming a professional

writer or a more short-term goal like learning how to spell a particular word.

Personality invariably refers to more or less permanent characteristics of an individual's

state of being (e.g., shy, extrovert, conscientious).

Definition 2:

The word motivation is derived from the Latin word mover, meaning "to move." The

simplest definition of motivation is that it is force acting on or within a person that

"moves" the person to behave in a particular manner. The force can come from within

(intrinsic motivation) as well as from outside (extrinsic motivation) of an individual.

When people are intrinsically motivated, they are influenced by internal and self-

managed factors (feeling of accomplishment, enjoying what you do). When people are

extrinsically motivated, they are influenced by external factors that are controlled by

others (money, praise, avoid negative consequences).

Definition 3: Motivation is a combined effect of arousal, direction, intensity and

persistence .Clarification of definition - Graph

28

Arousal Direction Intensity Persistence

Motivation

is a

ofof of of

Combined effect

Graph of motivation as a combination of four elements

Motivation Characteristics:

There are several characteristics of motivation. Some of the important characteristics

are shown in the form of graph as below:

General graph of different characteristics of motivation

29

Motivationis a

is an

is

is is

Hypothetical construct

Inferred state

Individual Dynamic

Multifaceted

Clarification of the graph:

30

OBJECTIVES OF MOTIVATION:

The purpose of motivation is to create conditions in which people are willing to work

with zeal, initiative, interest and enthusiasm, with a high personal and group moral

31

Motivation

MeasuredObserved

Motives Dynamic

Change over time

Individual are are

can cause

Internal

One persons different motives

External

Between different persons motives

can be can be

not directly bebe

Conflict

Involves

Behaviours CognitionAffect

Influenced

can

Multifaceted

by

is

satisfaction, with a sense of responsibility, loyalty and discipline and with pride and

confidence in a most cohesive manner so that the goals of an organization are achieved

effectively.

THEORIES OF MOTIVATION:

Theory X Assumptions:

People inherently dislike work

People must be coerced or controlled to work to

Achieve objectives

People prefer to be directed

Theory Y Assumptions:

People view work as being as natural as play and rest

People will exercise self-direction and control towards achieving

objectives they are committed to People learn to accept and seek

responsibility

WHAT IS MOTIVATION?

It is a general tendency to believe that motivation is a personal trait. Some people have

it and the others don’t. In practice, some are labelled to be lazy because they do not

display an outward sign of motivation. However, individuals differ in their basic

motivational drives. It also depends upon their areas of interest. The concept of

motivation is situational and its level varies between different individuals and at

different times. If you understand what motivates people, you have at your command

the most powerful tool for dealing with them.

32

DEFINING MOTIVATION:

Motivation is to inspire people to work, individually or in groups in the ways such as to

produce best results. It is the will to act. It is the willingness to exert high levels of

effort towards organizational goals, conditioned by the efforts and ability to satisfy

some individual need.

Motivation is getting somebody to do something because they want to do it. It was once

assumed that motivation had to be injected from outside, but it is now understood that

everyone is motivated by several differing forces.

Motivation is a general term applied to the entire class of drives, desires, needs, wishes

and similar forces. To say that managers motivate their subordinates is to say that they

do those things which they hope will satisfy these drives and desires and induce the

subordinates to act in a desired manner.

To motivate others is the most important of management tasks. It comprises the

abilities to communicate, to set an example, to challenge, to encourage, to obtain

feedback, to involve, to delegate, to develop and train, to inform, to brief and to provide

a just reward.

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Motivation Is The Energization Of Goal-Orientated Behaviour:

The definition of motivation is to give reason, incentive, enthusiasm, or interest that

causes a specific action or certain behaviour. Motivation is present in every life

function. Simple acts such as eating are motivated by hunger. Education is motivated

by desire for knowledge. Motivators can be anything from reward to coercion.

There are two main kinds of motivation: intrinsic and extrinsic. Intrinsic motivation is

internal. It occurs when people are compelled to do something out of pleasure,

importance, or desire. Extrinsic motivation occurs when external factors compel the

person to do something. However, there are many theories and labels that serve as sub

tittles to the definition of motivation. For example: "I will give you a candy bar if you

clean your room." This is an example of reward motivation.

A common place that we see the need to apply motivation is in the work place. In the

work force, we can see motivation play a key role in leadership success. A person

unable to grasp motivation and apply it will not become or stay a leader. It is critical

that anyone seeking to lead or motivate understand "Hewlett’s Hierarchy of Work

Motivators."

Salary, benefits, working conditions, supervision, policy, safety, security, affiliation,

and relationships are all externally motivated needs. These are the first three levels of

"Hewlett’s Hierarchy" When these needs are achieved; the person moves up to level

four and then five. However, if levels one through three are not met, the person

becomes dissatisfied with their job. When satisfaction is not found, the person becomes

less productive and eventually quits or is fired. Achievement, advancement,

recognition, growth, responsibility, and job nature are internal motivators. These are the

last two levels of "Hewlett’s Hierarchy." They occur when the person motivates

themselves (after external motivation needs are met.) An employer or leader that meets

the needs on the "Hewlett’s Hierarchy" will see motivated employees and see

productivity increase. Understanding the definition of motivation, and then applying it,

is one of the most prevalent challenges facing employers and supervisors. Companies

often spend thousands of dollars each year hiring outside firms just to give motivation

seminars.

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Another place motivation plays a key role is in education. A teacher that implements

motivational techniques will see an increased participation, effort, and higher grades.

Part of the teacher’s job is to provide an environment that is motivationally charged.

This environment accounts for students who lack their own internal motivation. One of

the first places people begin to set goals for themselves is in school. Ask any adult:

"What is the main thing that motivates you." Their answer will most likely be goals.

Even the simplest things in life are the result of goal setting. A person may say, "I want

to save 300.00 for a new T.V." Well, that is a goal. School is where we are most likely

to learn the correlation between goals, and the definition of motivation. That correlation

is what breeds success.

So, as you can see, motivation is what propels life. It plays a major role in nearly

everything we do. Without motivation, we would simply not care about outcomes,

means, accomplishment, education, success, failure, employment, etc.. Then, what

would be the point?

Wendy Pan is an accomplished niche website developer and author. To learn more about

definition of motivation, please visit Self Improvement and Motivation for current

articles and discussions.

1) Achievement Motivation

It is the drive to pursue and attain goals. An individual with achievement motivation

wishes to achieve objectives and advance up on the ladder of success. Here,

accomplishment is important for its own shake and not for the rewards that accompany

it. It is similar to ‘Kaizen’ approach of Japanese Management.

(2) Affiliation Motivation

It is a drive to relate to people on a social basis. Persons with affiliation motivation

perform work better when they are complimented for their favourable attitudes and co-

operation.

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(3) Competence Motivation

It is the drive to be good at something, allowing the individual to perform high quality

work. Competence motivated people seek job mastery, take pride in developing and

using their problem-solving skills and strive to be creative when confronted with

obstacles. They learn from their experience.

(4) Power Motivation

It is the drive to influence people and change situations. Power motivated people wish to

create an impact on their organization and are willing to take risks to do so.

(5) Attitude Motivation

Attitude motivation is how people think and feel. It is their self confidence, their belief

in them, their attitude to life. It is how they feel about the future and how they react to

the past.

(6) Incentive Motivation

It is where a person or a team reaps a reward from an activity. It is “You do this and you

get that”, attitude. It is the types of awards and prizes that drive people to work a little

harder.

(7) Fear Motivation

Fear motivation coercions a person to act against will. It is instantaneous and gets the

job done quickly. It is helpful in the short run.

Importance of motivation:

Most motivation theorists assume that motivation is involved in the performance of all

learned responses; that is, a learned behaviour will not occur unless it is energized. The

major question among psychologists, in general, is whether motivation is a primary or

secondary influence on behaviour. That is, are changes in behaviour better explained by

principles of environmental/ecological influences, perception, memory, cognitive

development, emotion, explanatory style, or personality or are concepts unique to

motivation more pertinent.

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The relationship of motivation and emotion:

Emotion (an indefinite subjective sensation experienced as a state of arousal) is

different from motivation in that there is not necessarily a goal orientation affiliated

with it. Emotions occur as a result of an interaction between perception of

environmental stimuli, neural/hormonal responses to these perceptions (often labelled

feelings), and subjective cognitive labelling of these feelings (Kleinginna and

Kleinginna, 1981b). Evidence suggests there is a small core of core emotions (perhaps

6 or 8) that are uniquely associated with a specific facial expression (Izzard, 1990).

This implies that there are a small number of unique biological responses that are

genetically hard-wired to specific facial expressions. A further implication is that the

process works in reverse: if you want to change your feelings (i.e., your physiological

functioning), you can do so by changing your facial expression. That is, if you are

motivated to change how you feel and your feeling is associated with a specific facial

expression, you can change that feeling by purposively changing your facial

expression. Since most of us would rather feel happy than otherwise, the most

appropriate facial expression would be a smile.

Explanations of influences/causes of arousal and direction may be

different from explanations of persistence

In general, explanations regarding the source(s) of motivation can be categorized as

either extrinsic (outside the person) or intrinsic (internal to the person). Intrinsic

sources and corresponding theories can be further subcategorized as either

body/physical, mind/mental (i.e., cognitive, affective, cognitive) or

transpersonal/spiritual.

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In current literature, needs are now viewed as dispositions toward action (i.e., they

create a condition that is predisposed towards taking action or making a change and

moving in a certain direction). Action or overt behaviour may be initiated by either

positive or negative incentives or a combination of both. The following chart provides a

brief overview of the different sources of motivation (internal state) that have been

studied. While initiation of action can be traced to each of these domains, it appears

likely that initiation of behaviour may be more related to emotions and/or the affective

area (optimism vs. pessimism; self- esteem; etc.) while persistence may be more related

to conation (volition) or goal-orientation. 

Sources of Motivational Needsbehavioural/external  elicited by stimulus

associated/connected to innately connected stimulus

obtain desired, pleasant consequences (rewards) or escape/avoid undesired, unpleasant consequences

social    imitate positive models be a part of a group or a valued member

biological increase/decrease stimulation (arousal) Activate senses (taste, touch, smell, etc. Decrease hunger, thirst, discomfort, etc. maintain homeostasis, balance

cognitive maintain attention to something interesting or threatening

develop meaning or understanding increase/decrease cognitive

disequilibrium; uncertainty solve a problem or make a decision figure something out eliminate threat or risk

affective  increase/decrease affective dissonance increase feeling good decrease feeling bad increase security of or decrease threats

to self-esteem maintain levels of optimism and

enthusiasm

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conative  meet individually developed/selected goal

obtain personal dream develop or maintain self-efficacy take control of one's life eliminate threats to meeting goal,

obtaining dream reduce others' control of one's life

spiritual  understand purpose of one's life connect self to ultimate unknowns

Theories of motivation:

Many of the theories of motivation address issues introduced previously in these

materials. The following provides a brief overview to any terms or concepts that have

not been previously discussed.

Behavioural:

Each of the major theoretical approaches in behavioural learning theory posits a

primary factor in motivation. Classical conditioning states that biological responses to

associated stimuli energize and direct behaviour. Operant learning states the primary

factor is consequences: the application of reinforces provides incentives to increase

behaviour; the application of punishers provides disincentives that result in a decrease

in behaviour.

Cognitive:

There are several motivational theories that trace their roots to the information

processing approach to learning. These approaches focus on the categories and labels

people use help to identify thoughts, emotions, dispositions, and behaviours.

A first cognitive approach is attribution theory (Heifer, 1958; Weiner, 1974). This theory

proposes that every individual tries to explain success or failure of self and others by offering

certain "attributions." These attributions are either internal or external and are either under

control or not under control. The following chart shows the four attributions that result from a

combination of internal or external locus of control and whether or not control is possible.

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  Internal External

No Control Ability Luck

Control Effort Task Difficulty

In a teaching/learning environment, it is important to assist the learner to develop a

self-attribution explanation of effort (internal, control). If the person has an attribution

of ability (internal, no control) as soon as the individual experiences some difficulties

in the learning process, he or she will decrease appropriate learning behaviour (e.g., I'm

not good at this). If the person has an external attribution, then nothing the person can

do will help that individual in a learning situation (i.e., responsibility for demonstrating

what has been learned is completely outside the person). In this case, there is nothing to

be done by the individual when learning problems occur.

A second cognitive approach is Expectancy theory (Vroom, 1964) which proposes the

following equation:

“Motivation = Perceived Probability of Success (Expectancy) *

Connection of Success and Reward (Instrumentality) *

Value of Obtaining Goal (Valance, Value).”

Since this formula states that the three factors of Expectancy, Instrumentality, and

Valance or Value are to be multiplied by each other, a low value in one will result in a

low value of motivation. Therefore, all three must be present in order for motivation to

occur. That is, if an individual doesn't believe he or she can be successful at a task OR

the individual does not see a connection between his or her activity and success OR

the individual does not value the results of success, then the probability is lowered that

the individual will engage in the required learning activity. From the perspective of

this theory, all three variables must be high in order for motivation and the resulting

behaviour to be high.

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The third cognitive approach is cognitive dissonance theory which is in some respects

similar to disequilibrium in Piaget's theory of cognitive development. This theory was

developed by Leon Fastener (1957), as social psychologist, and states that when there

is a discrepancy between two beliefs, two actions, or between a belief and an action,

we will act to resolve conflict and discrepancies. The implication is that if we can

create the appropriate amount of disequilibrium, this will in turn lead to the individual

changing his or her behaviour which in turn will lead to a change in thought patterns

which in turn leads to more change in behaviour.

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Summary:

To summarize the cognitive approaches, notice the relationship between William

James' formula for self-esteem (Self-esteem = Success / Pretensions) and the

attribution and expectancy theories of motivation. If a person has an external attribution

of success, self-concept is not likely to change as a result of success or failure because

the person will attribute it to external factors. Likewise, if the person has an

Internal/Ability explanation, his or her self-concept will be tied to learning to do a new

activity quickly and easily (I do well because I'm naturally good at it). If failure or

difficulty occurs, the person must quickly lower expectations in order to maintain self-

esteem. However, if the person has a Internal/Effort explanation and high expectations

for success, the person will persevere (i.e., stay motivated) in spite of temporary

setbacks because one's self-esteem is not tied to immediate success.  

Cognitive dissonance theory suggests that we will seek balance or homeostasis in our

lives and will resist influences or expectations to change. How, then, does change or

growth occur. One source, according to Piaget, is biological development. As we

mature cognitively we will rework our thinking and organizations of knowledge (e.g.,

schemas, paradigms, and explanations) to more accurately reflect our understanding of

the world. One of those organizations involves our explanations or attributions of

success or failure. After puberty, when biological change slows down considerably, it is

very difficult to change these attributions. It requires a long-term program where

constant feedback is given about how one's behaviour is responsible for one's success.

Psychoanalytic Theories:

The psychoanalytic theories of motivation propose a variety of fundamental

influences. Freud (1990) suggested that all action or behaviour is a result of internal,

biological instincts that are classified into two categories: life (sexual) and death

(aggression). Many of Freud's students broke with him over this concept. For example,

Erikson (1993) and Sullivan (1968) proposed that interpersonal and social

relationships are fundamental, Adler (1989) proposed power, while Jung (1953, 1997)

proposed temperament and search for soul or personal meaningfulness.

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Humanistic Theories:

One of the most influential writers in the area of motivation is Abraham Maslow

(1954). Abraham Maslow (1954) attempted to synthesize a large body of research

related to human motivation. Prior to Maslow, researchers generally focused separately

on such factors as biology, achievement, or power to explain what energizes, directs,

and sustains human behaviour. Maslow posited a hierarchy of human needs based on

two groupings: deficiency needs and growth needs. Within the deficiency needs, each

lower need must be met before moving to the next higher level. Once each of these

needs has been satisfied, if at some future time a deficiency is detected, the individual

will act to remove the deficiency. The first four levels are:

1) Physiological: hunger, thirst, bodily comforts, etc.;

2) Safety/security: out of danger;

3) Belongings and Love: affiliate with others, be accepted; and

4) Esteem: to achieve, be competent, gain approval and recognition.

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According to Maslow, an individual is ready to act upon the growth needs if and only

if the deficiency needs are met. Maslow's initial conceptualization included only one

growth need--self-actualization. Self-actualized people are characterized by:

1) Being problem-focused;

2) Incorporating an ongoing freshness of appreciation of life;

3) A concern about personal growth

4) The ability to have peak experiences. Maslow later differentiated the growth

need of self-actualization, specifically naming two lower-level growth needs

prior to general level of self-actualization (Maslow & Lower, 1998) and one

beyond that level (Maslow, 1971). They are:

5) Cognitive: to know, to understand, and explore;

6) Aesthetic: symmetry, order, and beauty;

7) Self-actualization: to find self-fulfilment and realize one's potential; and

8) Self-transcendence : to connect to something beyond the ego or to help others

find self-fulfilment and realize their potential.

Maslow's basic position is that as one becomes more self-actualized and self-

transcendent, one becomes more wise (develops wisdom) and automatically knows

what to do in a wide variety of situations. Daniels (2001) suggests that Maslow's

ultimate conclusion that the highest levels of self-actualization are transcendent in

their nature may be one of his most important contributions to the study of human

behaviour and motivation.

The few major studies that have been completed on the hierarchy seem to support the

proposals of William James (1892/1962) and Mathes (1981) that there are three levels

of human needs. James hypothesized the levels of material (physiological, safety),

social (belongingness, esteem), and spiritual. Mathes proposed the three levels were

physiological, belongings, and self-actualization; he considered security and self-

esteem as unwarranted. Alderfer (1972) developed a comparable hierarchy with his

ERG (existence, relatedness, and growth) theory. His approach modified Maslow's

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theory based on the work of Gordon Allport (1960, 1961) who incorporated concepts

from systems theory into his word personality

Alderfer's Hierarchy of Motivational Needs

Level of Need Definition  Properties

Growth

Impel a person to make creative or productive effects on himself and his environment

Satisfied through using capabilities in engaging problems; creates a greater sense of wholeness and fullness as a human being

Relatedness Involve relationships with significant others

Satisfied by mutually sharing thoughts and feelings; acceptance, confirmation, under- standing, and influence are elements

Existence

Includes all of the various forms of material and psychological desires

When divided among people one person's gain is another's loss if resources are limited

Maslow recognized that not all personalities followed his proposed hierarchy. While a

variety of personality dimensions might be considered as related to motivational needs,

one of the most often cited is that of introversion and extroversion. Reorganizing

Maslow's hierarchy based on the work of Alderfer and considering the

introversion/extraversion dimension of personality results in three levels, each with an

introverted and extroverted component. This organization suggests there may be two

aspects of each level that differentiate how people relate to each set of needs. Different

personalities might relate more to one dimension than the other. For example, an

introvert at the level of Other/Relatedness might be more concerned with his or her

45

own perceptions of being included in a group, whereas an extrovert at that same level

would pay more attention to how others value that membership.  

46

A Reorganization of Maslow's and Alderfer's Hierarchies

Level Introversion Extroversion

Growth

Self-Actualization (development of

competencies [knowledge, attitudes,

and skills] and character)

Transcendence (assisting in the development of others' competencies and character; relationships to the unknown,

unknowable)

Other (Relatedness)

Personal identification with group, significant others (Belongingness)

Value of person by group (Esteem)

Self (Existence)

Physiological, biological (including basic emotional needs)

Connectedness,  security

At this point there is little agreement about the identification of basic human needs and

how they are ordered. For example, Ryan & Deci (2000) also suggest three needs,

although they are not necessarily arranged hierarchically: the need for autonomy, the

need for competence, and the need for relatedness.Thompson, Grace and Cohen (2001)

state the most important needs for children are connection, recognition, and power.

Nohria, Lawrence, and Wilson (2001) provide evidence from a sociobiology theory of

motivation that humans have four basic needs :(1) acquire objects and experiences. (2)

Bond with others in long-term relationships of mutual care and commitment. (3) Learn

and make sense of the world and of ourselves; and (4) to defend ourselves, our loved

ones, beliefs and resources from harm. The Institute for Management Excellence

(2001) suggests there are nine basic human needs:

security,

adventure,

freedom,

exchange,

power,

expansion,

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acceptance,

community, and Expression.

Notice that bonding and relatedness are a component of every theory. However, there

do not seem to be any others that are mentioned by all theorists. Franken (2001)

suggests this lack of accord may be a result of different philosophies of researchers

rather than differences among human beings. In addition, he reviews research that

shows a person's explanatory or attribution style will modify the list of basic needs.

Therefore, it seems appropriate to ask people what they want and how their needs could

be met rather than relying on an unsupported theory. For example, Whitley (1996)

advises having a person imagine what life would be like if time and money was not an

object in a person's life. That is, what would the person do this week, this month, next

month, if he or she had all the money and time needed to engage in the activities and

were secure that both would be available again next year. With some follow-up

questions to identify what is keeping the person from happening now, this open-ended

approach is likely to identify the most important needs of the individual.

There is much work still to be done in this area before we can rely on a theory to be

more informative than simply collecting and analyzing data. However, this body of

research can be very important to parents, educators, administrators and others

concerned with developing and using human potential. It provides an outline of some

important issues that must be addressed if human beings are to achieve the levels of

character and competencies necessary to be successful in the information age.

Maslow's work lead to additional attempts to develop a grand theory of motivation, a

theory that would put all of the factors influencing motivation into one model. An

example is provided by Leonard, Beauvais, and Scholl (1995). These authors propose 5

factors as the sources of motivation: 1) Instrumental Motivation (rewards and

punishers), 2) Intrinsic Process Motivation (enjoyment, fun), 3) Goal Internalization

(self-determined values and goals), 4) Internal Self Concept-based Motivation

(matching behaviour with internally-developed ideal self), 5) External Self Concept-

based Motivation (matching behaviour with externally-developed ideal self).

Individuals are influenced by all five factors, though in varying degrees that can change

in specific situations. 

48

Factors one and five are both externally-oriented. The main difference is that

individuals who are instrumentally motivated are influenced more by immediate

actions in the environment (e.g. operant conditioning) whereas individuals who are

self-concept motivated are influenced more by their constructions of external demands

and ideals (e.g., social cognition).

Factors two, three, and four are more internally-oriented. In the case of intrinsic

process, the specific task is interesting and provides immediate internal reinforcement

(e.g., cognitive or humanistic theory). The individual with a goal-internalization

orientation is more task-oriented (e.g., humanistic or social cognition theory) whereas

the person with an internal self-concept orientation is more influenced by individual

constructions of the ideal self (humanistic or psychoanalytic theory).

Social Learning :

Social learning (or observational) theory suggests that modelling (imitating others) and

vicarious learning (watching others have consequences applied to their behaviour) are

important motivators of behaviour.

Social Cognition:

Social cognition theory proposes reciprocal determination as a primary factor in both

learning and motivation. In this view, the environment, an individual's behaviour, and

the individual's characteristics (e.g., knowledge, emotions, cognitive development) both

influence and are influenced by each other two components. Bandura (1986, 1997)

highlights self-efficacy (the belief that a particular action is possible and that the

individual can accomplish it) and self-regulation (the establishment of goals, the

development of a plan to attain those goals, the commitment to implement that plan, the

actual implementation of the plan, and subsequent actions of reflection and

modification or redirection. The work of Ames (1992) and Dweck (1986) discussed

below is a major component of social cognitive views on motivation.

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Transpersonal or Spiritual Theories:

Most of the transpersonal or spiritual theories deal with the meaningfulness of our lives

or ultimate meanings. Abraham Maslow (1954) has also been influential in this

approach to motivation. Other influential scholars included Gordon Allport (1955),

Victor Frankl (1998), William James (1997), Carl Jung (1953, 1997), Ken Wilber

(1998).

Achievement motivation:

One classification of motivation differentiates among achievement, power, and social

factors (see McClelland, 1985; Murray, 1938, 1943). In the area of achievement

motivation, the work on goal-theory has differentiated three separate types of goals:

mastery goals (also called learning goals) which focus on gaining competence or

mastering a new set of knowledge or skills; performance goals (also called ego-

involvement goals) which focus on achieving normative-based standards, doing better

than others, or doing well without a lot of effort; and social goals which focus on

relationships among people (see Ames, 1992; Dweck, 1986; Urdan & Maher, 1995).

In the context of school learning, which involves operating in a relatively structured

environment, students with mastery goals outperform students with either performance

or social goals. However, in life success, it seems critical that individuals have all

three types of goals in order to be very successful.

One aspect of this theory is that individuals are motivated to either avoid failure (more

often associated with performance goals) or achieve success (more often associated

with mastery goals). In the former situation, the individual is more likely to select easy

or difficult tasks, thereby either achieving success or having a good excuse for why

failure occurred. In the latter situation, the individual is more likely to select 50

moderately difficult tasks which will provide an interesting challenge, but still keep

the high expectations for success.

Impacting motivation in the classroom:

Stipek (1988) suggests there are a variety of reasons why individuals may be lacking in

motivation and provides a list of specific behaviours associated with high academic

achievement. This is an excellent checklist to help students develop the cognitive

component of their lives. In addition, as stated previously in these materials, teacher

efficacy is a powerful input variable related to student achievement (Proctor, 1984).

There are a variety of specific actions that teachers can take to increase motivation on

classroom tasks. In general, these fall into the two categories discussed above: intrinsic

motivation and extrinsic motivation.

Intrinsic Extrinsic

o Explain or show why

learning a particular content or

skill is important

o Create and/or maintain

curiosity

o Provide a variety of

activities and sensory

stimulations

o Provide games and

simulations

o Set goals for learning

o Provide clear expectations

o Give corrective feedback

o Provide valuable rewards

o Make rewards available

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o Relate learning to student

needs

o Help student develop plan

of action

As a general rule, teachers need to use as much of the intrinsic suggestions

as possible while recognizing that not all students will be appropriately

motivated by them. The extrinsic suggestions will work, but it must be

remembered that they do so only as long as the student is under the control

of the teacher. When outside of that control, unless the desired goals and

behaviours have been internalized, the learner will cease the desired

behaviour and operate according to his or her internal standards or to other

external factors.

Common myths about employee motivation :

The topic of motivating employees is extremely important to managers and supervisors.

Despite the important of the topic, several myths persist -- especially among new

managers and supervisors. Before looking at what management can do to support the

motivation of employees, it's important first to clear up these common myths.

1. Myth #1 -- "I can motivate people" Not really -- they have to motivate themselves.

You can't motivate people anymore than you can empower them. Employees have

to motivate and empower themselves. However, you can set up an environment

where they best motivate and empower themselves. The key is knowing how to set

up the environment for each of your employees.

2. Myth #2 -- "Money is a good motivator"

Not really. Certain things like money, a nice office and job security can help people

from becoming less motivated, but they usually don't help people to become more

motivated. A key goal is to understand the motivations of each of your employees.

52

3. Myth #3 -- "Fear is a damn good motivator"

Fear is a great motivator -- for a very short time. That's why a lot of yelling from

the boss won't seem to "light a spark under employees" for a very long time.

4. Myth #4 -- "I know what motivates me, so I know what motivates my employees"

Not really. Different people are motivated by different things. I may be greatly

motivated by earning time away from my job to spend more time my family. You

might be motivated much more by recognition of a job well done. People are not

motivated by the same things. Again, a key goal is to understand what motivates

each of your employees.

5. Myth #5 -- "Increased job satisfaction means increased job performance"

Research shows this isn't necessarily true at all. Increased job satisfaction does not

necessarily mean increased job performance. If the goals of the organization are not

aligned with the goals of employees, then employees aren't effectively working

toward the mission of the organization.

6. Myth #6 -- "I can't comprehend employee motivation -- it's a science"

Nah. Not true. There are some very basic steps you can take that will go a long way

toward supporting your employees to motivate themselves toward increased

performance in their jobs.

Basic Principles to Remember

1. Motivating employee’s starts with motivating yourself it’s amazing how, if you hate

your job, it seems like everyone else does, too. If you are very stressed out, it seems

like everyone else is, too. Enthusiasm is contagious. If you're enthusiastic about your

job, it's much easier for others to be, too. Also, if you're doing a good job of taking care

of yourself and your own job, you'll have much clearer perspective on how others are

doing in theirs.

A great place to start learning about motivation is to start understanding your own

motivations. The key to helping to motivate your employees is to understand what

motivates them. So what motivates you? Consider, for example, time with family,

recognition, a job well done, service, learning, etc. How is your job configured to

support your own motivations? What can you do to better motivate yourself?

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2. Always work to align goals of the organization with goals of employees as

mentioned above, employees can be all fired up about their work and be working very

hard. However, if the results of their work don't contribute to the goals of the

organization, then the organization is not any better off than if the employees were

sitting on their hands -- maybe worse off! Therefore, it's critical that managers and

supervisors know what they want from their employees. These preferences should be

worded in terms of goals for the organization. Identifying the goals for the organization

is usually done during strategic planning. Whatever steps you take to support the

motivation of your employees (various steps are suggested below), ensure that

employees have strong input to identifying their goals and that these goals are aligned

with goals of the organization. (Goals should be worded to be "SMARTER". More

about this later on below.)

3. Key to supporting the motivation of your employees is understanding what motivates

each of them each person is motivated by different things. Whatever steps you take to

support the motivation of your employees, they should first include finding out what it

is that really motivates each of your employees. You can find this out by asking them,

listening to them and observing them.

4. Recognize that supporting employee motivation is a process, not a task

Organizations change all the time, as do people. Indeed, it is an ongoing process to

sustain an environment where each employee can strongly motivate themselves. If you

look at sustaining employee motivation as an ongoing process, then you'll be much

more fulfilled and motivated yourself.

5. Support employee motivation by using organizational systems (for example, policies

and procedures) -- don't just count on good intentions

don’t just count on cultivating strong interpersonal relationships with employees to help

motivate them. The nature of these relationships can change greatly, for example,

during times of stress. Instead, use reliable and comprehensive systems in the

workplace to help motivate employees. For example, establish compensation systems,

employee performance systems, organizational policies and procedures, etc., to support

employee motivation. Also, establishing various systems and structures helps ensure

clear understanding and equitable treatment of employees. 54

WHAT MOTIVATES:

One approach to employee motivation has been to view "add-ins" to an individual's job

as the primary factors in improving performance. Endless mixes of employee benefits

—such as health care, life insurance, profit sharing, employee stock ownership plans,

exercise facilities, subsidized meal plans, child care availability, company cars, and

more—have been used by companies in their efforts to maintain happy employees in

the belief that happy employees are motivated employees.

Many modern theorists, however, propose that the motivation an employee feels toward

his or her job has less to do with material rewards than with the design of the job itself.

Studies as far back as 1950 have shown that highly segmented and simplified jobs

resulted in lower employee morale and output. Other consequences of low employee

motivation include absenteeism and high turnover, both of which are very costly for

any company. As a result, "job enlargement" initiatives began to crop up in major

companies in the 1950s.

On the academic front, Turner and Lawrence suggested that there are three basic

characteristics of a "motivating" job:

1. It must allow a worker to feel personally responsible for a meaningful portion of

the work accomplished. An employee must feel ownership of and connection

with the work he or she performs. Even in team situations, a successful effort

will foster an awareness in an individual that his or her contributions were

important in accomplishing the group's tasks.

2. It must provide outcomes which have intrinsic meaning to the individual.

Effective work that does not lead a worker to feel that his or her efforts matter

will not be maintained. The outcome of an employee's work must have value to

himself or herself and to others in the organization.

3. It must provide the employee with feedback about his or her accomplishments.

A constructive, believable critique of the work performed is crucial to a

worker's motivation to improve.

While terminology changes, the tenets of employee motivation remain relatively

unchanged from findings over half a century ago. Today's buzzwords include

55

"empowerment," "quality circles," and "teamwork." All of these terms demonstrate the

three characteristics of motivating jobs set forth in the theory of Turner and Lawrence.

Empowerment gives autonomy and allows an employee to have ownership of ideas and

accomplishments, whether acting alone or in teams. Quality circles and the increasing

occurrence of teams in today's work environments give employees opportunities to

reinforce the importance of the work accomplished by members as well as receive

feedback on the efficacy of that work.

In small businesses, which may lack the resources to enact formal employee motivation

programs, managers can nonetheless accomplish the same basic principles. In order to

help employees feel like their jobs are meaningful and that their contributions are

valuable to the company, the small business owner needs to communicate the

company's purpose to employees. This communication should take the form of words

as well as actions. In addition, the small business owner should set high standards for

employees, but also remain supportive of their efforts when goals cannot be reached. It

may also be helpful to allow employees as much autonomy and flexibility as possible

in how their jobs are performed. Creativity will be encouraged if honest mistakes are

corrected but not punished. Finally, the small business owner should take steps to

incorporate the vision of employees for the company with his or her own vision. This

will motivate employees to contribute to the small business's goals, as well as help

prevent stagnation in its direction and purpose.

MOTIVATION METHODS

There are as many different methods of motivating employees today as there are

companies operating in the global business environment. Still, some strategies are

prevalent across all organizations striving to improve employee motivation. The best

employee motivation efforts will focus on what the employees deem to be important. It

may be that employees within the same department of the same organization will have

different motivators. Many organizations today find that flexibility in job design and

reward systems has resulted in employees' increased longevity with the company,

improved productivity, and better morale.

EMPOWERMENT:

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Giving employees more responsibility and decision-making authority increases their

realm of control over the tasks for which they are held responsible and better equips

them to carry out those tasks. As a result, feelings of frustration arising from being held

accountable for something one does not have the resources to carry out are diminished.

Energy is diverted from self-preservation to improved task accomplishment.

CREATIVITY AND INNOVATION:

At many companies, employees with creative ideas do not express them to management

for fear that their input will be ignored or ridiculed. Company approval and toeing the

company line have become so ingrained in some working environments that both the

employee and the organization suffer. When the power to create in the organization is

pushed down from the top to line personnel, employees who know a job, product, or

service best are given the opportunity to use their ideas to improve it. The power to

create motivates employees and benefits the organization in having a more flexible

work force, using more wisely the experience of its employees, and increasing the

exchange of ideas and information among employees and departments. These

improvements also create an openness to change that can give a company the ability to

respond quickly to market changes and sustain a first mover advantage in the

marketplace.

LEARNING:

If employees are given the tools and the opportunities to accomplish more, most will

take on the challenge. Companies can motivate employees to achieve more by

committing to perpetual enhancement of employee skills. Accreditation and licensing

programs for employees are an increasingly popular and effective way to bring about

growth in employee knowledge and motivation. Often, these programs improve

employees' attitudes toward the client and the company, while bolstering self-

confidence. Supporting this assertion, an analysis of factors which influence

motivation-to-learn found that it is directly related to the extent to which training

participants believe that such participation will affect their job or career utility. In other

words, if the body of knowledge gained can be applied to the work to be accomplished,

then the acquisition of that knowledge will be a worthwhile event for the employee and

employer.

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QUALITY OF LIFE:

The number of hours worked each week by American workers is on the rise, and many

families have two adults working those increased hours. Under these circumstances,

many workers are left wondering how to meet the demands of their lives beyond the

workplace. Often, this concern occurs while at work and may reduce an employee's

productivity and morale. Companies that have instituted flexible employee

arrangements have gained motivated employees whose productivity has increased.

Programs incorporating flextime, condensed workweeks, or job sharing, for example,

have been successful in focusing overwhelmed employees toward the work to be done

and away from the demands of their private lives.

MONETARY INCENTIVE:

For all the championing of alternative motivators, money still occupies a major place

in the mix of motivators. The sharing of a company's profits gives incentive to

employees to produce a quality product, perform a quality service, or improve the

quality of a process within the company. What benefits the company directly benefits

the employee. Monetary and other rewards are being given to employees for generating

cost-savings or process-improving ideas, to boost productivity and reduce absenteeism.

Money is effective when it is directly tied to an employee's ideas or accomplishments.

Nevertheless, if not coupled with other, nonmonetary motivators, its motivating effects

are short-lived. Further, monetary incentives can prove counterproductive if not made

available to all members of the organization.

OTHER INCENTIVES:

Study after study has found that the most effective motivators of workers are

nonmonetary. Monetary systems are insufficient motivators, in part because

expectations often exceed results and because disparity between salaried individuals

may divide rather than unite employees. Proven nonmonetary positive motivators foster

team spirit and include recognition, responsibility, and advancement. Managers, who

recognize the "small wins" of employees, promote participatory environments, and treat

employees with fairness and respect will find their employees to be more highly

motivated. One company's managers brainstormed to come up with 30 powerful

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rewards that cost little or nothing to implement. The most effective rewards, such as

letters of commendation and time off from work, enhanced personal ful-fillment and

self-respect. Over the longer term, sincere praise and personal gestures are far more

effective and more economical than awards of money alone. In the end, a program that

combines monetary reward systems and satisfies intrinsic, self-actualizing needs may

be the most potent employee motivator.

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E M P L O Y E E M O T I V A T I O N

Definition of Employee Motivation:

The heart of motivation is to give people what they really want most from work. The

more you are able to provide what they want, the more you should expect what you

really want, namely: productivity, quality, and service. Employee motivation is the

level of energy, commitment, and creativity that a company's workers bring to their

jobs.

Fear is a damn good motivator:

Fear is a great motivator -- for a very short time. That's why a lot of yelling from the

boss won't seem to "light a spark under employees" for a very long time...

Increased job satisfaction means increased job performance:

Increased job satisfaction does not necessarily mean increased job performance. If the

goals of the organization are not aligned with the goals of employees, then employees

aren't effectively working toward the mission of the organization.

Ideas about What Employees Want From Work

What People Want From Work:

Some people work for personal fulfilment; others work for love of what they do. The

bottom line is that we all work for money and for reasons too individual to assign

similarities to all workers.

How to Demonstrate Respect at Work:

Ask anyone in your workplace what treatment they most want at work. They will likely

top their list with the desire to be treated with dignity and respect. You can demonstrate

respect with simple, yet powerful actions.

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Provide Feedback That Has an Impact:

Make your feedback have the impact it deserves by the manner and approach you use

to deliver feedback. Your feedback can make a difference to people if you can avoid a

defensive response.

Trust Rules: The Most Important Secret:

Trust forms the foundation for effective communication, employee retention, and

employee motivation and contribution of discretionary energy, the extra effort that

people voluntarily invest in work. When trust is present, everything else is easier.

According to one of the universally accepted definitions of motivation, it is an internal

state of being, or an internal condition that activates one’s behaviour, giving it

direction. Motivation has also been defined as a desire or need which directs and

energizes behaviour that is oriented towards a goal.

Another definition of motivation states that it is the influence of the needs and desires

on the intensity of behaviour and direction it will follow. There is one more expert who

defined motivation as the arousal, direction, as well as persistence of one’s behaviour.

However, the fact remains that is rather difficult to clearly define motivation, as various

experts in the field have come to their varying conclusions through the years.

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HR PRACTICES AT VSP

62

Chapter – 4

HR PRACTICES AT VSPHuman Resource Management:

Human resource initiatives at VSP are closely linked to the corporate strategy of the

organization. VSP has harmonious industrial relations where the entire workforce

works as a well-knit team for the progress of the company. The productive

environment prevailing in the company fosters an atmosphere of growth - both for the

employees and for the company. VSP has introduced multi-skilling concept since

inception and the employees are trained to imbibe this. VSP has adopted a system of

overlapping shifts - the first of its kind in the industry. This system ensures smooth

changeover of the shifts and uninterrupted pace of operation of the plant during the

shift change over. The labour productivity is currently 382 tonnes / man / year –

unparalleled in the public sector steel industry.

Management of Industrial Relations:

Presently, 20 registered Trade Unions are functioning at VSP. There are 17 unions

operating for espousing the cause of contract labour. In addition, two unions each are

also separately registered at our captive mines located at Jaggayyapeta and Madharam.

By and large, a smooth and cordial IR climate prevails at VSP.

The “Man days Lost” were brought to ‘NIL’ since 2003 which indicates the peaceful

and harmonious industrial relations scenario in Visakhapatnam Steel Plant.

The Code of Discipline adopted in the state of Andhra Pradesh has envisaged

determination of Majority union by way of secret ballot elections at an interval of every

2 years.

Till date around 75 nos. of Memorandum of Understandings (MOU), Memorandum of

Settlements (MOS) Around 110 nos. of Participative Fora are functioning at VSP

Unique informal and formal Grievance Redressal Systems have been successfully

implemented in the organization

A separate section “Central Employees’ Relations” coordinates with respect to all IR

related issues

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Joint participative / consultative fora

64

Shop floor cooperation committee

Central safety committee

Sports council

Shop floor safety committee

Board of trustees

of PF trust

Board of trustees of SBF trust

Community welfare centre

committees

Town development

committee

Canteen managing

committee

Management-union interaction with the recognised union

& 2 major unions

Joint participative / consultative fora

Management representatives, recognised union

members

HR Policy:

We, at Visakhapatnam Steel Plant, believe that our employees are the most important

resources. To realize the full potential of employees, the company is committed to:

Provide work environment that makes the employees committed and

motivated for maximizing productivity

Establish systems for maintaining transparency, fairness and equality in

dealing with employees

Empower employees for enhancing commitment, responsibility and

accountability

Encourage teamwork, creativity, innovativeness and high achievement

orientation

Provide growth and opportunities for developing skill and knowledge

Ensure functioning of effective communication channels with

employees

Man Power as on 31-03-2011:

Works Projects Mines Others Total

Executives 3262 344 109 1492 5207

Non Executives 11358 51 257 956 12622

Total Employees 17829

HR OBJECTIVES OF VISAKHAPATNAM STEEL PLANT:

To provide initially a suitable match between employee competence level and

company’s work requirements

To foster an appropriate climate and culture which nurtures employee

competence and adequate motivational levels for the application of their

abilities to assigned jobs/roles with required commitment.

To enable employees seek greater identification with the company by fusing

management decisions and actions with the requisite care, concern and

developmental approach.

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To initially enable the employees and the organization achieve its mission and

objectives and business goals through HRD.

FUNCTIONS OF H.R.M

Functions of H.R.M in Visakhapatnam steel plant is being carried out by following

departments.

a) TRAINING DEPARTMENT:

It gives training to employees on technical aspects like crane operations, medical

programs, preventive maintenances, computer education and safety programs.

b) PERSONNEL DEPARTMENT:

It deals with recruitment, wage and salary administration, industrial relations, corporate

social responsibility, welfare measures etc.

c) H.R.D:

It conducts in-house training programs at Centre for H.R.D and also nominates

employees for External training program sessions conducted outside VSP. This

includes sponsoring employees to various management development programs all over

India.

d) Management Services Dept:

It is a nodal department for coordinating various HR related activities like employee

involvement programmes through small group activities like Quality Circles, 5S-The

workplace management & Srujan Vikas, apart from other employee motivational

activities like Incentives, Special Performance Awards schemes are being designed,

implemented and monitored.

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WELFARE MEASURES IN VSP:

Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, considers human resources

as the most important of all the resources in the Company. Its development and

welfare have therefore been given the utmost emphasis in the overall policy of Human

Resources Management of the Company. Pursuant to this policy, VSP has taken

several initiatives for introducing and implementing Statutory as well as Non-Statutory

Welfare schemes which together impart and propagate the feeling that the “Company

cares for its employees”.

Besides the Statutory Welfare Measures, the Company has been taken up the Non-

Statutory Welfare and Social Security Schemes for the benefit of the employees and

their family members, which are detailed below:

Statutory welfare measures: Canteen facilities

Baby crèche

First aid facilities

Waters coolers

Leave

Maternity Leave

Factories act

Gratuity

Workmen’s compensation

Contract Labour Welfare

Non Statutory welfare measures: Facilities for Education

Scholarship

Medical facilities

Housing facilities

Work dress

Vehicle advance to Employees

House building advance

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Motivational Schemes: Jawahar Awards

Suggestion Rewards

Gnana Puraskar Yojana(GPY)

Incentive Schemes

LTC / LLTC

Leave Encashment

Facilities for Recreation

Community Welfare Centers (CWCs):

Library

Ukkunagaram Club & Steel Club

Parks

- Nehru Park in Sector-III

- Indira Gandhi Park in Sector-VIII

- Dr B R Ambedkar Park in Sector-VI

- Babu Jagjeevan Ram Park in Sector-V

- Tenneti Park in Sector-IX

- Swarnajayanthi Park near KBR

- Ekalavya Park in Sector-I

- Mahatma Gandhi Park

Sports Facilities

Sports Complex

Hostel Grounds

National Day Celebrations

Cultural and Trekking Activities

Co-operatives:

Employees Consumers’ Co-operative Stores

Employees Consumers’ Co-operative Thrift & Credit

Society

SOCIAL SECURITY MEASURES:Some of the social security measures being taken implemented in VSP are

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Employees’ family benefit scheme

RINL Employees’ Superannuation Benefit Fund

Group Savings Linked Insurance Scheme

Group Personal Accident Insurance Scheme

Contribution from Incentive Earnings

Traveling/Transport Expenses

Medicaid Insurance Policy for Retired Employees

MOTIVATIONAL SCHEMES IN VISAKHAPATNAM STEEL PLANT

Non - Financial Motivational Schemes.

Many a time, it is felt that a better motivated, worker needs less control. However, a

manager’s job becomes easier if he can empower the employees to take actions

appropriate for bettering his performance. The employee empowerment can be done in

the following ways.

Quality circles

Suggestion Schemes

Jawaharlal Award

Commendation Letter

Employee Instantaneous Recognition Scheme (EIRS)

All these can be effectively used to involve employees in decision – making process.

Jawaharlal award is given to an individual based on his contribution to the organization

in an assessment year, where as the Quality Circles and Suggestion Schemes may

involve a group of people. Suggestion scheme may be applicable to an individual also

apart from a group of people.

The above activities help in tapping human resources that is, potential of an individual

by satisfying his:

Security needs by support

Social needs by participation

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Ego needs by recognition

Self Actualization by achievement and motivating him

Performance based rewards.

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Quality Circles

Human beings are endowed with creative talents and Capabilities. The success of an

organization to a large extent depends on how best the talents and skills of its work

force are harnessed for bringing improvements in production, productivity, quality, cost

reduction etc, through their active participation.

Quality Circles (QC) is a widely recognized forum for participation for progress. QC is

a multi brains mission-an unique solution. It is a path to success. The QC concept is a

people building philosophy that can make miracles in achieving excellence.

In VSP too, the QC movement, that forms a vital segment in the company-wide Total

Quality Management (TQM). Implementation process is growing from strength to

strength since its inception in 1990 and has started recognition at national level also for

its outstanding contributions.

Quality Circles is a voluntary group of people who meet together on a regular basis to

identify, analyze and solve work related problems leading to improvement of their

work life participative.

The most important theory in Quality Circles is that the members implement their own

solutions to the identified problems.

This is of special interest to the organization, as this will create commitment,

harmonious work environment, team spirit etc. Quality Circles philosophy is a people

building philosophy but not people using philosophy.

Quality Circles provide the following benefits to employees:

Opportunity to use their limitless, untapped, capabilities for innovation

and improvement.

Self- Actualization in the work they are doing by including an element

of awareness.

Self – Esteem and Self Confidence and Human Touch at work place.

Necessary thrust to work as a team & Recognition by others.

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Two-day workshop for facilitator/promoter

One-day workshop for leader/members

Half-a-day exposure programme for new QC group

Appreciation programme

for top management

Publicity byHose journalsUkku channel

Participation in chapter, national and international convention

Annual function Mementoes Models/case presentations

QC formation

Identification of

problem

Analysis

Solution / implementation

Monitoring

Recognition

QC techniques

New seven tools

QC techniques

Old seven tools

Management services

Weekly reportsMonthly reportsAnnual reports

QC Implementation modelIn Vizag Steel, QC initiative was launched in April 1990 along with commissioning of the first Unit i.e. coke oven battery and VSP is the first organization in Visakhapatnam to start the QC movement

Till the year 2006, registration, submission of completed projects and evaluation were done manually and later introduced systematic Online QC Management System (QCMS) to propagate this people building philosophy and make it more effective.

What motivates our employees to participate in a big way in the small group activity are:

Attractive mementoes Cash rewards QC talent shows Dinner with top management (QC NITE) Participation at National Conventions Participation in International Events Awards to best teams and facilitators

In order to select the best projects, evaluation is carried out at two stages. One is at department level and other at plant level

Every year we conduct QC annual recognition function wherein we recognize 25 best QC teams with Cash rewards, release QC compendium consisting best QC projects, arrange QC model exhibition, recognize best facilitators and best QC performing departments and arrange best QC oral presentations before top management to encourage the employees.

The selected QC projects at plant level are nominated to participate at different r conventions.

In order to encourage the best QCs at national level, VSP nominates their employees to participate at International conventions. So far VSP employees have participated at International QC conventions held at Colombo, Singapore, South Korea, Bali, Indonesia, Beijing, China, Dhaka, Bangladesh and Cebu, Philippines. And this year our teams are going to participate at Hyderabad for International Convention on Quality Concept Circles (ICQCC).

The number of QC projects has increased tremendously from a mere 51 in 1990-91 to a staggering 4270 in 2010-11with an employee involvement of 56.8% and the financial savings are to the tune of INR 20.05 crores.

Sl. No. YEAR

NO.OF QC PROJECTS

TARGET ACHIEVEMENT

Savings in Rs Lakhs

1 2008-09 3800 4251 1920

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2 2009-10 3850 4277 19953 2010-11 3900 4270 2005

Suggestion Scheme:

As told, “Think analyze and suggest a way to become more competent ”. Suggestion

scheme activities have become a part of VSP’ s work culture generating a sense of

achievement and confidence among its employees for bringing in improvement in all

the areas of production, productivity, yields, energy conservation, cost reduction,

techno economic factors etc., thus bringing in overall financial savings. The

suggestions have also contributed in their own right for the achievement /surpassing the

rated capacities of production in the financial year 2001-02, which was luring for long.

The success of any organization lies in motivating its workforce to highest level of

excellence. “SRUJAN VIKAS” is one such platform at Vizag Steel. The scheme, which

forms part of the “Employee involvement programme”, stimulates the innovative and

creative talents of its employees. “Srujan Vikas”, a suggestion reward scheme in VSP is

an important tool for encouraging the VSP collective to put forth the innovative skills

for continuous improvement.

Srujan Vikas – The Suggestion Reward Scheme was initially launched in Visakhapatnam Steel Plant in 1993 and it was revised in 1996 with additional features to further motivate employees. OBJECTIVES OF SUGGESTION SCHEME

To provide an opportunity for creative thinking among employees and their family members so as to utilize their full potential for advancement and to bring about improvement in their day to day working through the application of their experience and knowledge

To recognize the positive contribution made by employees in bringing about such improvements

To provide an additional forum for mutual co-operation and collective initiatives in fostering production/ productivity, reducing cost and improving quality.

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FEATURES

1. All employees are eligible to participate in the scheme in the grade of E-6 and below including trainees.

2. The Suggestion Scheme is operated by Personnel department and monitored by Management Services department

3. Two tier evaluation

– Prima facie Evaluation

- Zonal Suggestion Evaluation Committee evaluation

4. The suggestions accepted prima facie are given gift items of worth around Rs.30. The Zonal Suggestion Evaluation Committee is empowered to reward upto Rs.2500.

5. Suggestions which are deserving scrutiny by Apex Level Evaluation committee may be rewarded upto Rs.5,000.

6. If any suggestion merits reward more than Rs.5,000, the same is sent to Chairman cum Managing Director for approval who is empowered to reward upto Rs.18,000/-

7. The functional heads review the suggestions status on monthly basis.

8. Keeping in view the number of rewarded suggestions given by the suggestor and the quality and value of such suggestions, one gold medal (15 grams, 22 carats) to the best suggestor and one silver medal (150 grams) to the next best suggestor are presented during RINL formation day celebrations every year. Three trophies are awarded, based on highest number of rewarded suggestions/ employee/year to best performing departments viz., one in main production units, one in services depts. and one in Non works dept.

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Process Chart of Suggestion Scheme

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Reward Rs. 5000/-Reward Rs. 2000/-

Suggestion in prescribed form Suggestion

Box

Collected by Convenor (weekly)

Record details/send acknowledgements Prima facia

evaluation

Gifts worth Rs. 25/-Send information to

suggester

ZSEC Evaluation

Accepted

Rejected

Forwarded to

ALSEC convener

Send IO to F & A

for cheques

Evaluation by ALSEC

Forwarded to CMDCommunicate to convener

ZSEC

More than

Rs. 5000/- worthCheques

Reward to suggester

and others

5S – WORKPLACE MANAGEMENT

I. Background

5S, an integrated Japanese concept for Work Place Management, is a scientific approach for effective organization of work place through the participation of the employees.Five S has become a management philosophy, as orderliness has become an important requirement. Modern developments call for high level of process accuracy, clean atmosphere, proper maintenance, understanding and proper training. Hence 5S has gained paramount importance.In line with the objectives of the company, 5S had been introduced in VSP in Jan’ 2004.Initially the concept was implemented in two departments like Steel Melt Shop and Central Stores as pilot departments under the guidance of QCFI.After the fruitful implementation in these two departments, the philosophy has been extended to other departments in a phased manner.

II. 5S ConceptFive Steps i.e., Seiri, Seiton, Seiso, Seiketsu, Shitsuke each starting with S, are to be taken for ensuring proper organization, neatness, cleanliness, standardization and discipline in work place for sustained house keeping and management practices.

Promotional Activities

Conducted Slogan, Poster and Quiz competitions to create awareness. Organized special suggestion campaigns on 5S to involve more employees. Conducted inter-departmental/zonal competitions on 5S to induce competitive

spirit. Organized exposure programmes for the establishments and house wives of

Ukkunagaram. Conducted awareness programmes for all the unions and CISF personnel. 5S corners were started for the display of visual improvements by adopting 5S. Extended the concept to schools like DPS and DePaul School Conducted best 5S home competition in township. Arranged visits to 5S implemented organizations like NTPC, LGPI, Amara Raja

Batteries, Intimate fashions-Chennai etc to understand the best practices w.r.t. Work Place management.

78

Jawaharlal Nehru Award:

This award aims at creating a climate in the organization wherein employees would be

encouraged to understand, practice and enforce the essentials of a productive work

culture and achieve consistently good performance levels. These awards are only for

individual contributions.

This award covers all regular non – executives and executives of VSP who have put in

three years of service.

Commendation Letters:

Commendation letters are given to all the employees employed in the industry. Letters

of commendation are given whenever:

The employees exhibit the best performance,

The employees are promoted to higher positions,

The employees exhibit courage in saving the company and the co-

employees from accidents in the company etc.

These commendation letters are like a pat of encouragement to the employee to get

motivated, to work for the company sincerely, honestly and to take part in its

development. Although it is a letter appreciating the work done for the company, it

creates a feeling of belongingness of the company, which is very important for every

industry to extract the skills and efficiencies of the employees to increase its share of

profits.

Employee Instantaneous Recognition Scheme (EIRS):

Employee Instantaneous Recognition Scheme (EIRS) has come into force on 1-8-2003.

It has come into force with the approval of Competent Authority.

Objective: To provide instant recognition and encouragement to employees for

achieving outstanding performance and showing individual initiative.

To empower Head of the Department (HOD’ s) to give recognition to such employees

as said above.

79

Financial Motivation Schemes:

An incentive or reward can be anything that attracts an employee attention and

stimulates him to work.It is related with wage payment plans, which tie wages directly

or indirectly to standards of productivity or to the profitability of the organization or to

both criteria.Incentives are monetary benefits paid to workmen in recognition of their

outstanding performance. The International Labour Organization (ILO) refers to

incentives as ‘payment by results’.

Financial motivation schemes include:

1. Incentive Scheme

2. Special Performance Award Scheme

3. Performance Linked Bonus System (PLBS)

The above mentioned schemes are in monetary terms ie., they are related with

wage payment based on their out standing performance.

Incentive Schemes: The incentive scheme is called as Performance Based Incentive

Scheme (PBIS). The scheme covers all employees up to the grade E-5 and below

including trainees posted on the job training.

Special Performance Award Scheme (SPAS):

Objective of the scheme:

To provide ample opportunity to employees in the works area for

achieving outstanding performance and setting new trends by utilizing

their courage / bravery, ingenuity and capabilities through individual

initiative, dynamism or Team Work.

To recognize such excellent contribution made by the employees either

individually or in a group for the growth / interest of the company.

To give an impetus to the active participation of employees in

safeguarding the interests of the company, out experimental /

innovative / exemplary activities for development of company.

80

Performance Linked Bonus System (PLBS):

In this system the executives and non-executives get the cash in the form of Bonus

every year, which is termed as Performance Linked Bonus System (PLBS). Some,

percentage of profits earned by the company are distributed to the employees of VSP.

This system was started in the year 1999-2000.

Other Motivation Schemes:

Major percentage of motivation methods, are in the form of cash. 80% of motivation

methods are in the form of cash.

The other motivational methods are giving out the gifts. These gifts are either

kitchenware, household utensils etc. these gifts cost about rupees 300 to rupees 400.

Sometimes these will be given to all the 17,000 employee manpower in VSP or

sometimes these will be presented to some sections or departments like Quality Circles,

MS department, T&DC department etc. The family members of the best performer of

the sections will be called and honored in a meeting. This system encourages and

motivates the employees and develops a feeling of belongingness and work for the

company’s development

Achievements and rewards:

The efforts of VSP have been recognized in various for a. some of the major awards

received by VSP are in the area of energy conservation, environment protection, safety,

Quality, Quality circles, Rajbhasha, MOU, sports related awards and a number of

awards at the individual level.

Some of the important awards received by VSP are indicated below:

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ACCOLADES & AWARDS:

“Nava Ratna Status” conferred to RINL on 16th November,2010.

The First Steel Minister's trophy for the year 2006-07 was presented by the

Union

Minister for Steel to RINL-VSP on 10th May 2010.

Coke Oven Battery- 4 was dedicated to the Nation on 10th May’10 by Union

Minister

for Steel.

VSP achieved two Class-C Viswakarma Rashtriya Puraskar (VRP) – 2008

(Performance year 2008) Awards for innovative suggestions from Sinter Plant

(first

time) and Engineering Shops & Foundry departments. VSP has won this

distinction

SIXTH time in a row. The winners received awards on 27th September at

Vigyan

Bhavan, New Delhi.

VSP bagged 5 Nos of the prestigious 'Shram Awards' presented by Ministry of

Labour

and Welfare, given annually to the excellently performing workers. VSP won, 1

'Shram

Bhushan' and 4 'Shram Veer' awards.

VSP received 'Indira Gandhi Rajbhasha shield' in New Delhi on 14th

September, 2010.

VSP bagged Award for 'Best Management Practices' instituted by Government

of

Andhra Pradesh. The award was received on 1st May, 2010

RINL was awarded the ‘Gold award for outstanding achievement in Training

Excellence’ by Greentech Foundation, on 17th September 2010 at New Delhi.

VSP was awarded First prize in the contest on "INSSAN Award for

Organizational

Excellence in Suggestion Scheme" in Steel Units' category.

VSP was selected for the award of 'Certificate of Merit' of 'Global Human

Resource

82

Development Awards- 2010' by "International Federation of Training and

Development

Organizations"(IFTDO), London.

VSP received 5S certification for 9 departments in phase -VI.

RINL-VSP has been once again chosen amongst "India's Best Companies to

Work For2010" by the Great Place to Work Institute Inc. and The Economic

Times of The Times

India Group'.

VSP bagged 'Town Official Language Implementation Committee Award,

Visakhapatnam', for its exemplary performance in the implementation of

Official

Language in 2010.

Teams from VSP bagged 20 Gold, 7 Silver and 2 Bronze Medals at the 10th

Chapter

Convention of Quality Circle (CCQC) Forum of India held at Visakhapatnam.

Rolling Mills Zone and SMS& CCD Zone won 2 “Ispat Suraksha Puraskars

2009” for

‘No fatal accident’ consecutively during 2007 & 2008.

RINL-VSP won the second prize amongst the integrated steel plants of the

'National

Sustainability Award' of the Ferrous Division of Indian Institute of Metals on

14th

November in Bangalore.

VSP was awarded the Certificate for "Excellent Water Efficient Unit" during a

National competition for Excellence in Water Management-2010 organized at

Hyderabad by CII.

All the Seven 'Quality Circle' (QC) teams and Four '5S' teams of VSP bagged

'Gold

Medals' at the 'International Convention on Quality Concept Circles (ICQCC)-

2010

held at Hyderabad in Oct'10.

VSP QC teams won good number of Par excellence and Excellence awards at

the"24th

83

National Convention on Quality Concepts (NCQC)" organised by Quality

Circle

Forum of India hosted by its Visakhapatnam Chapter at AU Engineering

College

84

HIGHLIGHTS OF PRDUCTION & FINANCIAL PERFORMANCE

A. Production Performance (‘000 Tonnes ) & Commercial Performance (Rs. Crs.):

B.

Financial Performance (Rs. Crs):

Year Gross Margin Cash Profit Net Profit

2007-08 3,515 3,483 1,943

2008-09 2,355 2,267 1,336

2009-10 1,465 1,209 797

2010-11 1,530 3,417 659

2011-12 1,654 1,468 1,102

85

Year Liquid Steel(lakhs)

Labour Productivity(Tonnes/man-

year)

Sales Turnover

2007-08 3.322 389 10,433

2008-09 3.145 359 10,411

2009-10 3.399 382 10,635

2010-11 3.424 358 11557

2011-12 3.310 340 14558

SURVEY AND

ANALYSIS

86

Chapter 5

SURVEY & ANALYSIS

ANALYSIS OF QUESTIONNAIRE:

Needs satisfaction is very essential in the lives of employees. Actually, they form the

cardinal reason for working in life. Every employee works in order to satisfy his needs

in life. Adana remarked that a job or gainful employment is the single most reliable

medicine or means of obtaining the fundamental benefits, privileges and satisfactions in

the society. These benefits include economic, security, social status, family and social

prerogatives, medical benefits, recreational and educational opportunities. Needs in this

context are divided into five areas according to Maslow (1970). Needs variables in this

study are the physiological needs, the security needs, the social needs, the self-esteem

needs and the self-actualization needs. More so, satisfaction in this context is the ability

of the job to meet the workers’ immediate wants.

There are several theories that tend to link employees’ needs satisfaction with job

performance. Roe’s Needs Theory postulates that an occupation is a primary source of

needs satisfaction. Hop pock, in his theory, states that occupations are chosen to meet

needs. As individuals vary in their needs, they also vary in their choice of occupations.

Satisfaction can result from a job that meets our needs today or from a job which

promises to meet them in future

The following Questionnaire is designed to find out which needs are the employees of

steel plant oriented towards so that the management can give more importance to the

satisfaction of these.

87

QUESTIONNAIRE

Respected Sir/Madam,

I (T.V.S.BHARATHI) am pursuing Master of Business Administration (MBA) for the academic year 2011-13 at “DR.LANKAPALLI BULLAYYA COLLEGE, VISAKHAPATNAM. As a part of my project work, it is required to conduct a survey on “Employee Motivation at VSP” to obtain feedback from the employees. In this regard I request your valuable feedback by filling out this form given below.

Name (optional) :

Designation :

Department :

Age :

Experience : Please tick (0-10) (11-20) (20 & above)

1) Special motivational rewards are given to employees who do their jobs very well.

a) Strongly Agree b) Agree c) Disagree d)StronglyDisagree .2) Employee’s real skills and capacities are put to use on their jobs?

a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree .3) Does VSP go by merit or seniority with respect to promotion?a) By merit b) by seniority c) both d) none4) Employees need to be reminded that their jobs are dependent on company’s ability to compete effectively.a) Strongly Agree b) Agree c ) Disagree d) Strongly Disagree5) Are you satisfied with the rate of progress of the company?

a) Yes b) No c) Can be improved d) Irregular

6) Individual supervision can often bruise feelingsa) Strongly Agree b) Agree c) Disagree d) Strongly Disagree7) How do you consider the relationship with your subordinates, Colleagues, superiors? a) Fully satisfied b) Satisfied c) partly satisfied d)Dissatisfied

8) How is the communication between top level management and bottom level management?

88

a) Excellent b) Very good c) Can be better d)Poor

9) How is the freedom to express new ideas and freedom to take decisions?

a) Fully satisfied b) Satisfied c) partly satisfied d) Dissatisfied10) You are satisfied with the working conditions mentioned below in the organization.

Drinking facilities [ ] Toilet facilities [ ]Lighting, work area [ ] Canteen facilities [ ]

11) Are the employees are treated as a team of management? A) YES B) NO 12) Is the work environment in the organization gives satisfaction? A) YES B) NO13) Is the company is creating career growth opportunities? A) To some extent B) To the extent possibleC) To full extent D)Not at all14) Is the organizational motivation is keeping the employees on the right path A) To some extent B) To the extent possible C) To full extent D) Not at all15) Are you getting a chance to learn from training programmed on the job?A) To some extent B) To the extent possible C) To full extent D) Not at all16) Do the employees get motivated by the incentives provided by the Organization? a) Fully satisfied b) Satisfied c) partly satisfied d)Dissatisfied17) What motivated you to involve in the employee involment activities like QCs, SS &5S? A) To update job knowledge B) To enhance skills C) To contribute more on job D) because I was asked to attend18) Do you notice continuous improvement in the motivational programmes of VSP? A) To some extent B) To the extent possible C) To full extent D) Not at all19) Is fun or entertainment is necessary for the employees in the Organization? A) To some extent B) To the extent possible C) To full extent D) Not at all

20) Are you performing task according to your skill? A) YES B) NO21) Any other suggestions please.

Thank you sir

89

Grade wise criteria followed:

S. No CRITERIA GRADES

1 STRONGLY AGREE A+

2 AGREE A

3 DISAGREE N

4 STRONGLY DISAGREE N+

90

Summary of the Respondents:

Q. No. Description A+ A N N+

1 Special motivational rewards are given to employees who do their jobs very well. 5 32 2 1

2 does VSP go by merit or seniority with respect to promotion? 27 9 3 1

3 Employee’s real skills and capacities are put to use on their jobs? 6 31 3 0

4Employees need to be reminded that their jobs are dependant on company’s ability to compete effectively.

4 27 8 1

5 Are you satisfied with the rate of progress of the company? 24 14 2 0

6 Individual supervision can often bruise feelings 4 31 5 0

7 How do you consider the relationship with your subordinates, Colleagues, superiors? 10 28 2 0

8 How is the communication between top level management and bottom level mgmt? 7 18 12 3

9 How is the freedom to express new ideas and freedom to take decisions? 13 24 3 0

10 You are satisfied with the working conditions mentioned below in the organization. 26 6 3 5

11 Are the employees are treated as a team of management? 30 0 1 9

12 Is the work environment in the organization gives satisfaction? 36 0 0 4

13 Is the company is creating career growth opportunities? 6 22 8 4

14 Is the organizational motivation is keeping the employees on the right path 9 18 9 4

15 Are you getting a chance to learn from training programmed on the job? 7 22 9 2

16 Do the employees get motivated by the incentives provided by the organization 12 22 6 0

17 What motivated you to involve in the employee involvement activities like QCs, SS & 5S. 4 17 17 2

18Do you notice continuous improvement in the motivation programmed being conducted at VSP?

8 18 10 4

19 Is fun or entertainment is necessary for the employees in the Organization? 9 18 8 5

20 Are you performing task according to your skill? 39 1 0 0

  Average response 14.3 17.9 5.55 2.25

  Response % 72% 90% 28% 11%

91

Category wise Summary:

Category A+ A N N+Communication 10 21 8 2

Employee Involvement 10 21 8 1

Motivation 12 20 6 2

AGE GROUP OF THE RESPONDENTS

This question was asked to know which age groups of employees

were answering the survey. This will help in knowing how

motivation changes with increasing age.

Age group Total Respondents Percentage

30-45 8 20%

45-60 32 80%

Total sample size 40 100%

92

A) MOTIVATION/SATISFACTION:

1) Special motivational rewards are given to employees who do their jobs very well.

The Question was asked to know how many of the employees felt that special

motivational rewards should be given to employees who their jobs well. Knowing this

will give an estimate of how many people are oriented towards basic needs.

Inference:

93

S .No Criteria Respondents Percentage1 A+ 5 12.5%2 A 32 80%3 N 2 5%4 N+ 1 2.5%Total sample size 40 100%

12.5% of the employees strongly agreed statement that special motivational

rewards should be given to employees who do their jobs well.

80% of employees agreed that special motivational rewards should be given

5% of the employees disagreed and said that special motivational rewards should

not be given

2.5% of employees strongly disagreed and said that special motivational rewards

should just not be given.

Employees who agreed felt that special motivational rewards if given to employees will satisfy their basic needs and also, motivate them to perform better.

When the employees who disagreed were asked the reason for disagreement they replied that this could lead to arbitrariness and favouritism. In other words, the selection of such performers might become subjective rather than objective

2) Are you satisfied with the rate of progress of the company?

This question was asked to know how many of them satisfied with the rate of progress

of the company.

94

S.No Criteria Respondents Percentage

1 A+ 24 60%

2 A 14 35%

3 N 2 5%

4 N+ 0 0%

Total sample size 40 100%

Inference:

60% of employees strongly agreed that satisfied with the rate of progress of the

company

35% of people agreed with the statement

5% disagreed with the statement

While 0% strongly disagreed

Employees who agreed felt that satisfied with the rate of progress of the company

3) Individual supervision can often bruise feelings.

This question was asked to know how many felt individual supervision can bruise

feelings. Having an idea of this will help in knowing how many employees are

socially oriented

S.No Criteria Respondents Percentage

1 A+ 4 10%

2 A 31 77.5%

3 N 5 12.5%

4 N+ 0 0%

Total sample size 40 100%

Inference:

10% of employees strongly agreed that individual supervision can bruise

feelings.95

77.5% of employees agreed with the statement

12.5% of employees disagreed saying that individual supervision does not

bruise feelings.

0% of employees strongly disagreed with the statement.

Though many people felt that individual supervision does bruise feelings many

felt that it cannot be avoided.

They felt that it is a must for doing a proper and safe job; else employees may tend to make errors.

Some said that for jobs requiring a high amount of safety supervision is a must and should. For others Jobs it might not be that necessary is what they felt.

4) You are satisfied with the working conditions mentioned below in

the organisation.

This question was asked to know how many of them felt employers should give

importance to working conditions of employees. Knowing this would help to know

how many employees consider safety as a factor which can affect job performance.

S.No Criteria Respondents Percentage

1 A+ 26 65%

2 A 6 15%

3 N 3 7.5%

4 N+ 5 12.5%

Total sample size 40 100%

96

Inference:

65% of employees strongly agreed that supervisors should give a good deal of

attention to working conditions of employees

15% of people agreed with the statement

7.5% disagreed with the statement

While 12.5% felt it is not needed

Most of the employees agreed because they felt that if supervisors do not do this then employees would not be able to concentrate on job.

The few people who disagreed felt that, supervisors could not control working conditions. They felt that in any steel plant working conditions are generally hazardous.

5) Is the organisational motivation is keeping the employees on the

right path.

S.No Criteria Respondents Percentage

1 A+ 9 22.5%

2 A 18 45%

3 N 9 22.5%

4 N+ 4 10%

Total sample size 40 100%

97

INFERENCE:

22.5% of employees strongly agreed that keeping the employees on the right

path

45% of people agreed with the statement

22.5% disagreed with the statement

While 10% felt it is not needed

Most of the employees agreed because they felt that organisational motivation is

keeping the employees on the right path.

6) Do the employees get motivated by the incentives provided by the

organisation?

S.No Criteria Respondents Percentage

1 A+ 12 30%

2 A 22 55%

3 N 6 15%

4 N+ 0 0%

Total sample size 40 100%

98

INFERENCE

30% of employees strongly agreed that motivated by the incentives provided by

the organisation

55% of people agreed with the statement

15% disagreed with the statement

While 0% felt it is not needed

Most of the employees agreed because they felt that motivated by the incentives

provided by the organisation

7) Do you notice continuous improvement in the motivational

programmes of VSP

S.No Criteria Respondents Percentage

1 A+ 8 20%

2 A 18 45%

3 N 10 25%

4 N+ 4 10%

Total sample size 40 100%

99

INFERENCE:

20% of employees strongly agreed that notice continuous improvement in the

motivational programmes of VSP

45% of people agreed with the statement

25% disagreed with the statement

While 10% felt it is not needed

Most of the employees agreed because they felt that notice continuous

improvement in the motivational programmes of VSP

8) Is fun or entertainment is necessary for the employees in the

organisation.

S.No Criteria Respondents Percentage

1 A+ 9 22.5%

2 A 18 45%

3 N 8 20%

4 N+ 5 12.5%

Total sample size 40 100%

100

Inference:

22.5% of employees strongly agreed that fun or entertainment is necessary for

the employees in the organisation

45% of people agreed with the statement

20% disagreed with the statement

While 12.5% felt it is not needed

Most of the employees agreed because they fun or entertainment is necessary

for the employees in the organisation

9) Are all the employees treated as a team of management?

S.No Criteria Respondents Percentage

1 A+ 30 75%

2 A 0 0%

3 N 1 2.5%

4 N+ 9 22.5%

101

Total sample size 40 100%

Inference

75% of employees strongly agreed that all the employees treated as a team of

management

0% of people agreed with the statement

2.5% disagreed with the statement

While 22.5% felt it is not needed

Most of the employees agreed because all the employees treated as a team of

management

10) Is the work environment in the organisation gives satisfaction.

102

S.No Criteria Respondents Percentage

1 A+ 36 90%

2 A 0 0%

3 N 0 0%

4 N+ 4 10%

Total sample size 40 100%

Inference:

90% of employees strongly agreed that the work environment in the

organisation gives satisfaction

0% of people agreed with the statement

0% disagreed with the statement

While 10% felt it is not needed

Most of the employees agreed because the work environment in the organisation gives

satisfaction

B) SELF DEVELOPMENT/TARGET/COMPETATION/SKILLS:

1) Employees real skills and capacities are put to use on the jobs.

S.No Criteria Respondents Percentage

1 A+ 6 15%

2 A 31 77.5%

3 N 3 7.5%

103

4 N+ 0 0%

Total sample size 40 100%

Inference

15% of employees strongly agreed that their real skills and capacities are put to

use on the jobs.

77.5% of people agreed with the statement

7.5% disagreed with the statement

While 0% felt it is not needed

Most of the employees agreed that their real skills and capacities are put to use on the

jobs.

2) Does VSP go by merit or seniority with respect to promotion.

104

S.No Criteria Respondents Percentage

1 A+ 27 67.5%

2 A 9 22.5%

3 N 3 7.5%

4 N+ 1 2.5%

Total sample size 40 100%

Inference:

67.5% of employees strongly agreed that the VSP go by merit or

seniority with respect to promotion

22.5% of people agreed with the statement

7.5% disagreed with the statement

While 2.5% felt it is not needed

Most of the employees agreed because the VSP go by merit or seniority with respect to

promotion

3) Employees need to be remained that their jobs are dependent on

company’s ability to Compete effectively.

This question was asked to know how many felt that their jobs should be dependant

on the company’s ability to compete effectively. Having an idea of this will help the

management to know about the safety needs of employees of steel plan

Inference:

105

S.No Criteria Respondents Percentage

1 A+ 4 10%

2 A 27 67.5%

3 N 8 20%

4 N+ 1 2.5%

Total sample size 40 100%

10% of employees strongly agreed and said that employees indeed have

to be reminded that their jobs are dependant on company’s ability to

perform effectively.

67.5% agreed with the statement

20% disagreed and said employees jobs should not be dependant on

company performance.

2.5% of employees however strongly disagreed with the statement.

Many employees feel that individual performance is alone not enough. Teamwork is

needed with full awareness of company’s position.

A significant that disagreed felt that their fortunes should not be linked with company’s

fortunes.

4) What motivated you to involve in the employee involvement activities like

QCs,SS&5S.

S.No Criteria Respondents Percentage

1 A+ 4 10%

2 A 17 42.5%

3 N 17 42.5%

4 N+ 2 6.25%

Total sample size 40 100%

Inference

106

10% of employees strongly agreed that they motivated to involve in the

employee involvement activities like QCs,SS&5S.

42.5% of people agreed with the statement

42.5% disagreed with the statement

While 6.25% felt it is not needed

Most of the employees agreed because the they motivated to involve in the employee

involvement activities like QCs,SS&5S.

5) Are you performing task according to your skill.

S.No Criteria Respondents Percentage

1 A+ 39 97.5%

2 A 1 2.5%

3 N 0 0%

4 N+ 0 0%

Total sample size 40 100%

107

Inference

97.5% of employees strongly agreed that they performing task according to

your skill

2.5% of people agreed with the statement

0% disagreed with the statement

While 0% felt it is not needed

Most of the employees agreed because the they performing task according to your

skill

6) Is the company is creating career growth opportunities?

S.No Criteria Respondents Percentage

1 A+ 6 15%

2 A 22 55%

3 N 8 20%

4 N+ 4 10%

108

Total sample size 40 100%

Inference:

15% of employees strongly agreed that the company is creating career growth

opportunities

55% of people agreed with the statement

20% disagreed with the statement

While 10% felt it is not needed

Most of the employees agreed because the company is creating career growth

opportunities

C) INVOIVEMENT/TRAINING/RELATIONSHIPS:

1) Are you getting a chance to learn from on the job training programmes?

S.No Criteria Respondents Percentage

1 A+ 7 17.5%

2 A 22 55%

3 N 9 22.5%

109

4 N+ 2 5%

Total sample size 40 100%

Inference:

17.5% of employees strongly agreed that they getting a chance to learn from on

the job training programmes

55% of people agreed with the statement

22.5% disagreed with the statement

While 5% felt it is not needed

Most of the employees agreed because that they getting a chance to learn from on

the job training programmes

110

2) How do you consider the relationship with your subordinates,

colleagues, Superiors?

S.No Criteria Respondents Percentage

1 A+ 10 25%

2 A 28 70%

3 N 2 5%

4 N+ 0 0%

Total sample size 40 100%

Inference

25% of employees strongly agreed that they consider the relationship with your

subordinates, colleagues, Superiors.

70% of people agreed with the statement

5% disagreed with the statement

While 0% felt it is not needed

Most of the employees agreed because that they consider the relationship with your

subordinates, colleagues, Superiors.

111

D) COMMUNICATION:

1) How is the communication between top level management and bottom level

management?

S.No Criteria Respondents Percentage

1 A+ 7 17.5%

2 A 18 45%

3 N 12 30%

4 N+ 3 7.5

Total sample size 40 100%

Inference:

17.5% of employees strongly agreed that they communication between top level

management and bottom level management.

45% of people agreed with the statement

30% disagreed with the statement

While 7.5% felt it is not needed

Most of the employees agreed because that they communication between top level

management and bottom level management.

112

2) How is the freedom to express new ideas and freedom to take

decisions?

S.No Criteria Respondents Percentage

1 A+ 13 32.5%

2 A 24 60%

3 N 3 7.5%

4 N+ 0 0%

Total sample size 40 100%

Inference

32.5% of employees strongly agreed that the freedom to express new ideas and

freedom to take decisions

60% of people agreed with the statement

7.5% disagreed with the statement

While 0% felt it is not needed

Most of the employees agreed because that the freedom to express new ideas and

freedom to take decisions

113

FINDINGS

114

Chapter 6

F I N D I N G S

The survey was conducted on motivational aspects in steel plant and based

on the survey the following were the findings.

We observed that VSP conferred “MINI RATNA” status in the year 2006 and

was attained “NAVA RATNA” status in the year 2010.

86% of the respondents feel that environment provided by VSP is excellent.

70% of the respondents feel that the organization is creating a good career

growth opportunities.

72.5% employees are getting a chance to learn from the training programme.

The incentives provided by the organization to the employees are par excellent.

95% employees are motivated to attend the training programme to update their

job knowledge and their skills in order to contribute more for the organization.

86% of the employees feel that there is an excellent improvement in the

motivational programmes being conducted at VSP.

All the employees in the organization feel that entire life is well balanced.

100% employees feel that the organization is utilizing the employee capabilities

according to their skill level.

86% of the employees feel that the attitude of the individual employee is

motivated by the training programmes conducted at VSP.

92.5% of the employees are given special rewards for doing their jobs well.

92.5% of the respondents feeling that their real skills and capacities are put to

use on their jobs.

99 % of the employees are satisfied with the rate of progress of the company.

90% of the respondents are satisfied with the working conditions in VSP.

75% of the respondents are feeling that they are being treated as the team of

management.

85% of the employees get motivated by the incentives provided by the

organisation.

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76% of the employees are motivated to involve in the employee involvement

activities like QCs, SS, and 5S.

65% of the employees had continuous improvement in the motivational

programmes at VSP

68% of the employees feel that there is fun and entertainment is necessary in the

organisation.

100% of the employees are performing their task according to their skills

75% of the respondents feel that employees are treated as team of management

at VSP.

86% of the respondents feel that word environment provided by VSP is

excellent.

86% of the employees feel that there is an excellent improvement in the

motivational programmes being conducted at VSP.

Employees in Visakhapatnam steel plant generally feel that a better job

description would help them to perform better as they would know what is

expected of them.

A large no of employees in steel plant feel that individual supervision does

bruise feelings but say it is a necessary evil. Some on the other hand felt that it

is needed only in certain areas where there is huge risk involved.

Individual recognition according to the employees is very important and say

that this aspect is maximum covered in steel plant policies.

Many employees did emphasize that they want to be recognized as the best at

their jobs but also said today is the era of team work so its importance of

individual recognition is decreasing day by day.

.

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SUGGESTIONS

AND

CONCLUSIONS

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Chapter – 7

S U G G E S T I O N S & C O N C L U S I O N

After a detail and analysis on the motivation of employees I would like to provide

some suggestions to the HR Department they are

VSP has to provide need based training programmes to develop and motivate

the employees especially at this stage of expansion to acquire the latest skills

and update with the changing technologies.

Introducing more motivational and behavioural training programmes at area

specific Zones will bring some attitudinal changes which might bring in a

change in the work.

Introducing more knowledge sharing programmes at area specific zones will

help the workmen to know more about the company and the working process

and their details.

Setting up of various display boards related to their work, machinery which

they will be handling at their work place, control rooms, restrooms etc will

give more focus and appeal on safety, quality and productivity aspects.

Use of counselling as a tool to improve the performance can help the

employees provide it devoid of severe criticism, suppression of domination.

Promotion and increments which are a part of compensation growth and

carrier will motive the employee towards work culture.

Along with the above there are some suggestions to decrease stress levels of

the employees, there can be certain measures which can be followed at the

work place, every employee can begin his work with 20min of yoga, and they

should given 10mints break every hour of work, there can also be arranged

some recreation facilities like Television during the lunch hours etc…

Special project skills are to be imbibed in to the human assets.

As VSP is a growing and expanding organization some innovative

motivational measures will make the employees deliver extra output.118

VSP has to conduct more skill based training programmes to develop the skills

and job knowledge to the employees.

Introducing more knowledge sharing programmes at area specific zones will

help the workmen to know more about the company and the working process

and other details.

At present training on new jobs is being through in house experts. If out side

faculty is involved in the training may be more effective for the needy.

Many employees feel that though while joining many like to give the best in

what they do but soon after a period of time the motivation begins to decrease.

Employee may be given refresher training programmes by nominating them to

training programmes being organised outside VSP.

Employees need to know what is potentially ahead for them, what opportunities

there are for growth. This issue is a sometimes forgotten ingredient as to the

importance it plays in the overall motivation of people.

A great place to hand out leadership roles is to allow your people to lead brief

meetings. Utilize your employees' strengths and skills by setting up "tune up"

training sessions and let one of your employees lead the training. The best time

to do this is when new people start.

Create a positive environment: Promote an office atmosphere that makes all

employees feel worthwhile and important. Don’t play favourites with your

staff. Keep office doors open and let folks know they can always approach

you with questions or concerns. A happy office is a productive office.

Put people on the right path. Most employees are looking for advancement

opportunities within their own company. Work with each of them to develop a

career growth plan that takes into consideration both their current skills and

future goals. If employees become excited about what’s down the road, they

will become more engaged in their present work.

Improve employee professional skills by providing them with on-the-job

training or in-house career development from time to time.

VSP has to conduct more motivational programmes to update their knowledge,

to enhance their skills and to contribute more on their job.

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VSP has to create more opportunities to express new ideas and freedom to take

decision for the employees.

Motivation has equal amount of result on a person who is found to be the best

and also least as motivated being can still be motivated unlimited.

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C O N C L U S I O N

By the above study I would like to conclude that:

The motivation process in VSP is done through the training programmes on

their jobs and through small group/employee involvement activities like QCs,

Suggestion schemes, SPAS & 5S etc and incentives provided by the

organisation.

The motivation process in VSP is creating career growth opportunities.

There is continues improvement in the motivational programmes of VSP.

Financial incentives motivates more than non financial incentives in VSP.

Good physical working conditions are provided in the organization and being

sustained through 5S-the work place management.

The medical benefits provided in the organization are good.

The employees are performing task according to their skills.

The motivation procedures had an impact on job satisfaction of employees

which is being reflected through various employee satis faction surveys

conducted by external agencies i.e “VSP is the best place to work on”

The study also says that the satisfaction level of employees are different for

each employee and mostly this satisfaction levels are depends on good

appraisal, official as well as personal benefits and career growth.

It is in general seen that employees of steel plant are loyal to the company and

learn to share the fruits as well as the hardships of the company.

The motivational policies of steel plant though good have still a long way to go

when compared with other steel plants like SAIL.

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The survey clearly gave an idea regarding the needs of the employees so

management can take necessary steps to see that these needs are satisfied, and

leave no scope for complaining by any of the employees as such.

All that is required on the part of the management is fine tuning of some

policies; some surveys to find out the needs of the employees and rest assured

the company has a great future ahead of it.

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BIBLIOGRAPH

Y

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CHAPTER 8B I B L I O G R A P H Y

I BOOKS Referred:

1.) Hurlock, Elizabeth, Personality development, Tata Mc-graw hill publishing2.) co.Ltd, New Delhi, 1976.

3.) Subba Rao, P., Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House, Mumbai.2000.

4.) Robbins.S, Organizational behaviour, Pearson Education, New Delhi, 2001.5.) Human Side of Enterprise ---------- DOUGLAS Mc GREGOR6.) Maslow’s Hierarchy Needs ----- ABRAHAM MASLOW & FREDERICK

HERZBERG7.) Self Improvement and Motivation------ WENDY PAN

II Journals referred:

1) RINL Journal’s on management, Visakhapatnam.

III Web sites:

1.) http://www.accel-team.com/motivation/index.html

2.) http://www.businessballs.com/herzberg.htm

3.) www.cipfa.org.uk/students/nsf/download/nsf05_motivation.pdf,

4.) www.vizagsteel.com

5.) www.google.com,

IV Newspapers:

Deccan Chronicle,

The Hindu.

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