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1 INTERNSHIP REPORT ON A case study ON VSP with reference to recruitment‖ By K.MEGHANA DASARI REG NO: 13MB5318 In partial fulfillment of the requirement For award Of MBA(2013-15) IN HUMAN RESOURCE MANAGEMENT August, 2014

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case study on recruitment and trend analysis


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    A case study ON VSP with reference to recruitment



    REG NO: 13MB5318

    In partial fulfillment of the requirement

    For award





    August, 2014

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    This is to certify that Ms.K.Meghana Dasari, Roll no 13MB5318 student

    of MBA has successfully completed his project on in partial fulfillment

    for the award of degree of MBA during the academic session 2013-

    15.The study report has been approved as it satisfies the academic

    requirements prescribed for the said degree.

    Faculty and Internal Guide Signature of HOD


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    I, K Meghana Dasari , Roll no 13MB5318, student of MBA(Batch 2013-

    2015) of ISBR Business School, Bangalore hereby declare that the

    research report on A CASE STUDY ON VSP WITH REFERENCE TO

    RECRUITMENT, is an original and authenticated work done by me. I

    further declare that it has not been submitted elsewhere by any other

    person in any of the University for the Award of any degree or diploma.

    Date: (K.Meghana Dasari)

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    The gratification and elation of this project will be incomplete without

    mentioning all the people who helped me to make it possible, whose guidance

    and encouragement were valuable to me.

    I would like to thank each and every employees of VISAKHAPATNAM STEEL

    PLANT who has directly or indirectly helped me in carrying out this project.

    I take this opportunity to express my heartfelt thanks to my project guide


    constant moral support, guidance and suggestions during the progress of my

    project. I am so thankful to the VISAKHAPATNAM STEEL PLANT, for

    giving me an opportunity to undertake my project work.

    I want to express my sincere thanks to my Guide Mr.N.V.V.L.N.MURTHY,

    AGM, PERSONNEL DEPT. for his support and valuable guidance in successful

    completion of my project work.

    My special thanks to Mr.O.R.M.RAO, AGM (MD) of VISAKHAPATNAM

    STEEL PLANT, for his valuable suggestions and co-operation throughout the

    project work.

    I am greatly indebted to my faculty guide, Prof. KAVITHA R GOWDA of

    ISBR for her kind guidance and helpful suggestions in every stage of this project.

    This project would not have been successful without her help.


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    Sr. No. Particulars Page No.


    Title Page









    Executive Summary



    Chapter I


    i) Company Profile

    ii) Industry Profile

    iii) SWOT analysis





    Chapter II

    i) Importance of study

    ii) Research methodology




    Chapter III

    Department study



    Chapter IV i) Observations ii) Suggestions iii) Limitations iv) Conclusion







    i) Bibliography


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    Two of the most critical activities within the human resources (HR) domain are

    recruiting and staffing. This involves identifying and attracting the right people to fill

    positions, ranging from upper management and key decision-maker roles to entry-

    level personnel. Finding the right person for each position and doing so in a cost-

    effective and timely manner is a challenge for any organization, but it is becoming

    especially difficult for public sector entities. Public sector organizations often are at a

    disadvantage when compared to the private sector in recruiting and staffing processes.

    The private sector typically outmatches the public sector on compensation, including

    bonuses and various other perks, such as stock options.

    Public sector organizations also often find themselves competing against not only

    private companies, but each other, in attracting potential employees. Smaller

    organizations in more isolated regions of the country, for example, find that multiple

    jurisdictions often compete over the same diminishing applicant pool and, in turn,

    drive up compensation costs across the region. These factors have forced many public

    sector organizations to develop creative strategies and solutions for recruiting and

    staffing. Many organizations report positive overall outcomes from temporary

    workers transitioning to permanent employees. Other organizations are improving

    their visibility by developing a branding strategy complete with consistent messaging

    and marketing. Finally, organizations are tapping into professional and cultural

    networks to reach individuals with specialized skill sets and increase the overall

    diversity of their workforce. Various new approaches are proving successful, and

    these models demonstrate great potential for public sector HR. At the same time,

    some of the strategies described here are just the starting point for organizations

    overhauling recruiting or staffing efforts. HR continues to struggle with gathering data

    and measuring performance, both important steps in efforts to transform HR

    operations or utilize alternative models like shared services and outsourcing.

    Information technology (IT) is an important enabling tool for recruiting and staffing,

    but overall use of IT remains limited, and even the most advanced systems are not

    being used to their full potential.

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    Company profile

    Industry profile

    SWOT analysis

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    Steel comprises one of the most important inputs in all sectors of economy. Economy

    of any country depends on the strong base of the iron and steel industry. Steel is a

    versatile material with multitude of useful properties, making indispensable for

    furthering and achieving continual growth of the economy be it construction,

    manufacturing infrastructure or consumables. The level of the steel consumption has

    long been regarded as an index of industrialization and economic maturity attained by


    Keeping in view the importance of steel the integrated steel plant with foreign

    collaboration was setup in the public sector in the post independence era. The growth

    of any organization depends on the overall performance such as human resource

    management, productions, marketing resources and financial performance of the

    organization. The growth of any organization can be judged by the growth of the

    employee reflecting the performance of organization in larger scale. Vital aspect of

    HRM because the performance of an individual in an organization is largely driven by

    the work atmosphere or work culture that prevails at the workplace. A good working

    condition is one of the benefits that the employees can expect from an efficient human

    resource team. A safe, clean and healthy environment can bring out the best in an


    An organization cannot build a good team of working professionals without good

    Human Resources. The key functions of the Human Resources Management (HRM)

    team include recruiting people, training them, performance appraisals, motivating

    employees as well as workplace communication, workplace safety, and much more.

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    Objectives, Policies

    Introduction to various


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    Visakhapatnam Steel Plant, popularly known as vizag Steel, is one of the major steel

    producers in India. Visakhapatnam steel plant the first coast based steel plant of

    India is located 16 km south west of city of destiny i.e., Visakhapatnam Bestowed

    with modern technologies, VSP has an installed capacity of 7.3 million tons per

    annum of liquid steel and 6.773 million tones of saleable steel. At VSP there is

    emphasis on total automation, seamless integration and efficient up gradations which

    results in wide range of long and structural products to meet stringent demands of

    discerning customers with in India and abroad. VSP products meet exacting

    international quality standards such as JIS, DINAND BIS, and BS etc.

    VSP has become the first integrated steel plant in the country to be certified to all the

    three international standards for quality (ISO-9001) for environment management

    (ISO-14001), for Occupational Health & Safety (OHSAS-18001). The certificate

    covers quality system of all operational, maintenance and service units besides

    purchase system, training and marketing functions spreading over 4 regional

    marketing offices, 24 branch offices and stock yard located all over the country.

    VSP successfully installing and operating efficiently Rs460 crores worth of pollution

    control and environment control equipments and converting the barren landscape by

    planting more than 3 million plants has made the steel plant, steel township and

    surrounding areas into a heaven of lush greenery.

    Steel occupies the foremost place amongst the materials in use today and pervades all

    walks of life. All the key discoveries of human genius for instance steam engine,

    railway means of communication and connection, automobile, aero place and

    computer, are in one way or together with steel and with its sagacious and

    multifarious application. Steel is a versatile material with multitude of useful

    properties making it indispensable for furthering and achieving continual growth of

    the economy be it construction, manufacturing, infrastructure or consumables. The

    level of steel consumption has long been regarded as an index of industrialization and

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    economic maturity attained by a country. Keeping in view the importance of steel, the

    following integrated steel plants with foreign collaboration were set up in the public

    sector in the post independence era:

    Sl. No Steel plant Collaborated by

    1 Durgapur steel plant Britain

    2 Bhilai steel plant Erstwhile USSR

    3 Bokaro steel Plant Erstwhile USSR

    4 Rourkela steel plant Germany


    With a view to give impetus to industrial growth and to meet the aspirations of the

    people from Andhra Pradesh, Government of India decided to establish integrated

    steel plant in public sector at Visakhapatnam (AP). The announcement to this effect

    was made in the parliament on 17th April, 1970 by the Prime Minister of India

    Smt.Indira Gandhi.

    A site was selected near Balacheruvu creek near Visakhapatnam city by a committee

    set up for the purpose, keeping in view the topographical features, greater availability

    of land and proximity to a future port. Smt.Indira Gandhi laid the foundation stone for

    the plant on 20th

    January 1971.

    Seeds were thus sown for the construction of a modern & sophisticated steel plant

    having annual capacity of 3.4 million tons of hot metal. An agreement was signed

    between Government of India and the erstwhile USSR on June 12th

    1979 for setting

    up of an integrated steel plant to produce structural & long products on the basis of

    detailed project report prepared by M/s M.N. Dustur& company. A comprehensive

    received DPR jointly prepared by soviets & M/s Dustur& company was submitted in

    Nov 1980 to Government of India.

    The construction of the plant started on 1st Feb 1982. Government of India on 18

    th Feb

    1982 formed a new company called Rashtriya Ispat Nigam Ltd. (RINL) and

    transferred the responsibility of construction, commissioning & operating the plant at

    Visakhapatnam from steel authority of India Ltd to RINL.

    To meet growing domestic needs of steel, Government of India decide to setup an

    integrated steel plant at Visakhapatnam, an agreement was signed with erstwhile

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    USSR in 1979 for co-operation in setting up 3.4mt integrated steel plant at


    It can be seem from the above table, during the year 2002-03, the company turned

    around by earned a net profit of Rs 521 crores.

    In the same year, it bagged the PRIME MINISTER TROPHY for its excellent

    performance in the steel industry. In September 2003, RINL became a DEBT FREE


    Since Commission VSP has already crossed many mile stones in the fields of

    production, productivity & exports. Coke rate of the order of 509 Kg/Ton of Hot

    metal, average converter life of 2864 heats an average of 23.6 heats per sequence in

    continuous Bloom Caster. Specific energy consumption of 6.07 G Kale/ton of liquid

    steel, a specific refractory consumption of 8.94 kg and a labor productivity of 265

    Ton/man year are some of the peaks achieved (during the year 2004-05) in pursuit of


    Board of Directors:














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    To be a continuously growing 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


    Create an inspiring work environment to unleash the creative energy of


    Achieve excellence in enterprise management.

    Be respected corporate citizen, ensure clean and green environment and

    develop vibrant communities around us.


    To attain 20 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 stakeholder.


    Stabilize 6.3 Mt of Liquid Steel expansion by 2014-15 with the mission to

    expand further in subsequent phases as per the corporate plan.

    Revamp existing Blast Furnaces to make them energy efficient to

    contemporary levels and in the process increase their capacity by 0.5 Mt each,

    thus total hot metal capacity to 7.5 Mt. by 2015-16.

    Achieve higher levels of customer satisfaction.

    Vibrant work culture in the organization.

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

    addressing social concerns

    Core Values:


    Customer Satisfaction

    Continuous Improvement

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    Concern for Environment, Creativity & Innovation


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

    dedicated departments for this purpose. Energy conservation, environmental

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

    company. Some of the policies in this regard are reproduced below.

    Quality Policy:

    Supply quality goods and services to customers delight.

    Document, Implement, Maintain and periodically review the management

    systems including the policy, Objectives and targets.

    Focus on conservation of natural resources and energy with concern for


    Comply with all relevant legal, regulatory and other requirements applicable

    to products, activities and processes in respect of Quality, Safety,

    Occupational Health & Environment, and also ensure the same by contractors.

    Use resources efficiently and reduce waste & prevent pollution.

    Continually improve Quality, Safety, and Occupational Health & Environment


    Encourage development and involvement of employees.

    Maintain high level of quality, Environment, occupational health and safety

    consciousness amongst employees and contract workers by imparting

    Educational & Training.

    Energy Policy:

    Document, implement, maintain and periodically review the energy

    management system including the policy, objectives and targets.

    Make energy conservation a way of life at RINL by promoting awareness

    among all.

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    Support the purchase of energy efficient products and services and ensure

    energy performance improvement in the design of new facilities as well as up

    gradation of existing facilities.

    Look for alternative sources to achieve energy security of the plant.

    HR Policy:

    Provide work environment that makes the employees committed and

    motivated for maximizing productivity

    Establish systems for maintaining transparency, fairness and equality in

    dealing the employees

    Empower employees for enhancing commitment, responsibility and


    Encourage teamwork, creativity, innovativeness and high achievement


    Provide growth and opportunities for developing skill and knowledge

    Ensure functioning of effective communication channels with employees

    Customer Policy:

    VSP will strive to meet more than the Customer needs and expectations

    pertaining to Products, Quality, Value for Money and Satisfaction

    VSP greatly values its relationship with Customers and would make efforts at

    strengthening these relations for mutual benefit

    VSP strive for enhancing value for the money and value the relationship with


    IT Policy:

    Follow best practices in Process Automation & Business Processes through IT

    by in-house efforts / outsourcing and collaborative efforts with other

    organizations / expert groups / institutions of higher learning, etc, thus

    ensuring the qualityof product and services at least cost

    Follow scientific and structured methodology in the software and other IT

    infrastructure and ensure high levels of data and information software

    development processes with total

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    Install, maintain and upgrade suitable cost-effective IT hardware, security

    Strive to spread IT-culture amongst employees based on organizational need,

    role and responsibilities of the personnel and facilitate the

    objective of becoming a world-class business organization.

    Enrich the skill-set and knowledge base of all related personnel at regular

    intervals to make employees knowledge-employees

    Periodically monitor the IT investments made and achievements accrued to

    review their cost effectiveness

    HRD Policy:

    To create an organizational culture this nurtures employees potential for the

    prosperity of the organization:

    Identify development needs of the employees on a regular basis, provide the

    necessary training and continually evaluate and monitor the effectiveness of

    the training so the quality o the training also gets upgraded.

    Provide inputs to the employees for developing their attitude towards work

    and for matching their competencies with the organizational requirements.

    Create an environment of learning and knowledge sharing by providing the

    means and facilities and also access to the relevant information and literature.

    Facilitate the employees for continuous development of their knowledge base

    skills, efficiency, innovativeness, self-expression and behavior so that they

    contribute positively with commitment for the growth and prosperity of the

    organization while maintaining a high level of motivation and satisfaction.

    Prepare employees through appropriate development programs for taking up

    higher responsibilities in the organization.

    Fulfill social obligations by providing training to the students of educational

    institutions and to the trainees of the organizations.

    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 combustion LD gas recovery system

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    100% continuous casting of liquid steel

    Tempcore and Stelmor cooling process in LMMM & WRM respectively

    Extensive waste heat recovery systems

    Comprehensive pollution control measures

    Main Products of VSP: Steel products:

    1) Angles 10)Nut Coke 2) Billets 11)coal tar 3) Channels 12)Anthracene oil 4) zBeams 13)HP Naphthalene 5) Squares 14)Benzene 6) Flats 15)Toulene 7) Rounds 16)Zylene 8) Re-bars 17) Wash oil 9) Wire Rods

    By-products: 1) Granulated Slag 2) Lime Fines 3) Ammonium Sulphate

    Major Sources of Raw Materials:

    Raw Material 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) Gidi/Swang/Rajarappa/Kargali

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    Table No. 1.1 Major Units:

    Department Annual Capacity

    (000 T)

    Units (3.0 MT Stage)




    4 Batteries of 67 Ovens & 7 Mtrs. Height




    2 Sinter machines of 312 Sq. Mtr. Grate area





    2 Furnaces of 3200 Cu. Mtr. Volume each

    Steel Melt



    3 LD Convertors each of 133 Cu. Mtr.

    Volume and six 4 strand bloom casters



    4 stand finishing Mill



    2 x 10 stand finishing Mill



    stand finishing Mill

    Table 1.2 Production Performance (000 Tons):










    (Tons/man year)

    2006-2007 4,046 3,606 3,205 413

    2007-2008 3,913 3,322 3,210 389

    2008-2009 3,546 3,145 3,080 359

    2009-2010 3900 3399 3,080 361

    2010-2011 3830 3424 3100 339

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    2011-2012 3778 3410 3467 340

    2012-2013 3998 3456 3467 363

    Table 1.3 Commercial Performance (Rs. Crs.):

    Year Sales Turnover Domestic Sales Exports

    2006-2007 9,131 8,487 4243

    2007-2008 10,433 9,878 55473

    2008-2009 10,411 10,333 7832

    2009-2010 10635 10284 35094

    2010-2011 11517 11094 42247

    2011-2012 14462 13490 41519

    2012-2013 13552 12954 59,807








    Hot Metal Labor Productivity(Tons/man year)








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    Year Gross Margin Cash Profit Net Profit

    2005-2006 2369 2337 1252

    2006-2007 2632 2583 1363

    2007-2008 3515 3483 1942

    2008-2009 2356 2267 1335

    2009-2010 1602 1524 796

    2010-2011 1412 1247 658

    2011-2012 1645 1454 751

    2012-2013 1072 713 352








    Net Profit










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    Major Sources of Raw Materials:

    Raw Material 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) Gidi/Swang/Rajarappa/Kargali

    Table 1.5 Major Unit sof raw materials

    Department Annual Capacity

    (000 T)

    Units (3.0 MT Stage)

    Coke Ovens


    4 Batteries of 67 Ovens & 7 Mtrs. Height

    Sinter Plant


    2 Sinter machines of 312 Sq. Mtr. Grate area


    Blast Furnace


    2 Furnaces of 3200 Cu. Mtr. Volume each

    Steel Melt



    3 LD Convertors each of 133 Cu. Mtr. Volume

    and six 4 strand bloom casters



    4 stand finishing Mill



    2 x 10 stand finishing Mill



    6 stand finishing Mill

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    Man Power as on 01-03-2014:

    Particulars Works Projects Mines Others Total

    Executives 4250 421 117 1511 6299



    11016 48 221 800 12085

    Total 18384

    Introduction to Different Departments:

    Company Affairs Department:

    It is concerned with following functions:

    1) Conducting of various Meetings as mentioned below:

    Board of Directors

    Committee of Management

    Annual General/Extraordinary General Meetings

    Annual General Meeting

    Extraordinary General Meeting

    Audit Committee

    Technology Improvement and Bench Marking Committee

    High Power Steering Committee(HPSC)

    Committee for Award of Contracts relating to Project Expansion Contracts

    Committee for Award of Contracts (CAC)

    2) Delegation of Powers

    3) Other Activities

    Corporate Strategic Management:

    Visioning & Corporate Planning Exercise

    Annual Sustainability Plan & Five year Roll-On Plan

    Annual Memorandum of Understanding (MOU) with Ministry of Steel

    Monthly & Quarterly Reviews of above plans with Management

    Quarterly Performance Reviews (QPR) with Ministry of Steel(MOS)

    Identification & Analysis of Strategic Investments(JVs) for vertical integration

    & diversification options

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    Enterprise Risk Management (ERM)

    Promotion of Business Excellence concepts through

    1) Project Utkarsh Initiatives

    2) Knowledge Management system-GNANA

    3) Corporate Awards

    CSM acts as a nodal agency for co-ordination with Department of Public-Enterprise

    (OPE), Ministry of Steel(MOS) and Ministry of Statistics &Programme

    Implementation (MOSPI) for dissemination of critical information as required.

    Finance and Accounts Department:

    Finance & Accounts functions centre around arranging the Finances, facilitating and

    accounting the operations and compliance with various statutes. Finance function is

    general discipline having universal application. As such, it has its role in all forms and

    types of business i.e., from a sole trader to the joint Stock companies, whether it is

    Indian or Multi-National Company. The function encompasses broadly, Finance,

    Accounting, MIS, Audit, and taxation areas. Function covers the areas of raising of

    Finances viz., Capital, loans and servicing thereof. Finance also covers the areas of

    controls viz., Budgetary Control and Cost Control.

    Accounting deals with recording of daily transactions, compilation of Annual

    Accounts and their audit by various agencies, viz, statutory Auditors appointed under

    the Companies Act, Audit by Controller & Auditor General of India in case of

    Government Companies, Internal Audits and special Audits.

    Training & Development:

    The needs of induction training, skill up gradation, unit training, computer related

    training, refresher training, foreign training, faculty development etc, are attended by

    the Training & Development Centre while management development and attitudinal

    development are taken care at the Centre for HRD.

    Training in certain specialized areas like safety, fire prevention, occupational health

    etc. is also taken up by departments specializing in respective fields.

    Conduct Training:-

    Once the trainer is identified then the dates should be fixed for the training program

    and it should be conducted. The trainer may use various techniques to train the

    employees i.e. either by classroom method or demonstration method or slide showing

    method or training the employees on the equipment and many more techniques can be

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    used by the trainer. In this way by following either all the above said methods or by

    following any one the trainer can train the trainees.

    Implementing of the Learned Skills:-

    Once the training is completed then comes the stage of implementation where the

    employees implement their newly learnt skills at their respective jobs. Whatever the

    employees learnt in the training may be difficult to implement but by following the

    techniques taught to them at the training they can easily implement their skills. The

    implementation is done under the follow up action of the trainer.

    Assessment Test:- An Assessment test is conducted at the end to know the knowledge gained by the

    employees and how far they are able to recollect the learned material. This test would

    give the result of how much knowledge employee gained by the training and what

    score he gained in the test and as well it helps in knowing the performance level of the


    If not Assessed then Retrain:- If at last the employee has not qualified the test then it means that the employee has to

    be retrained so that he gains the required skill. In this way assessment test helps in

    knowing the knowledge gained by the employee.

    In this way On the Job Training carries all the above steps, which should be

    conducted sequentially so that the training is given successfully.

    Production Facilities:

    The production facilities in the RINL are most modern amongst the steel industry in

    the country. The know-how and the technology have been acquired from different

    parts of the world from the reputed/established manufacturers.

    Some of the production facilities in RINL are:

    7 meter coke ovens of RINL are the tallest so far built in the country.

    Base Mix Yard for sinter plant introduced for the first time in the country

    helps in excellent blending of the faced material to sinter machine and

    production of consistent good quality sinter.

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    3200 cubic meter two blast furnaces i.e., Godavari and Krishna with bell less

    top charging equipment and 100% cast house slag granulation, the biggest to

    be setup in the country have done away either the conventional bell charging


    100% continuous costing of liquid steel into blooms resulted in lowest losses

    and better quality of blooms.

    RINL has sophisticated and latest features of automation of large polling mills

    consisting of

    Light and Medium Merchant Mill (LMMM) which include billet and bar millWire

    Road Mill (WRM)

    Medium Merchant and Structure Mill (MMSM)

    The operations of blast furnace, steel melting shop and rolling mills have been

    entirely computerized to ensure consistent quality and efficient performance.

    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



    East Kolkata Bhubaneswar, Kolkata, Patna

    North Delhi Agra, Chandigarh, Dehradun,

    Delhi, Faridabad, Ghaziabad,

    Jaipur, Kanpur, Ludhiana

    West Mumbai Ahmedabad, Indore, Mumbai,

    Nagpur, Pune

    South Chennai Bangalore, Chennai, Kochi,


    Andhra Visakhapatnam Hyderabad, Visakhapatnam

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    Personnel Department:

    One of the primary objectives of Organizations is to develop a well- knit personnel

    policy and comprehensive personnel systems that are result-oriented and to develop

    an organizational culture which motivates employees to contribute their best towards

    the achievement of organizational objectives. In accordance with this objective, VSP

    has given considerable emphasis on development of human resources, as well as

    formulation and implementation of progressive personnel policies, systems, rules and

    procedures with an objective to synchronies organizational needs with organizational

    needs with individual aspirations. Since inception, VSP has held emphasis on

    effective man management as it subscribes to the belief that effectiveness and success

    of the organization depend largely on the skills and commitment of the people.

    The rigorous and systematic approach to recruitment- from fresh candidates her

    upwards-training, promotions and rewards have all helped to meet the aspiring needs

    of the individual and thereby the goals of the organization.

    VSP has developed a comprehensive scheme of career planning and managerial

    succession. In the field of industrial relations, VSP encourages a participative

    approach. A career with VSP will mark the beginning a quest for advancement. VSP

    is a fast expanding organization and provides ample opportunities for a rapid career

    growth in the area where aptitude lies.

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    Organizational Chart (Personnel Directorate):

    Pollution Control Measures adopted in VSP:

    Generally, integrated steel plant is seen as a major contributor to environmental

    pollution as it discharges volumes of waste products. Elaborate measures have been

    adopted to combat air and water pollution in VSP has planted more than 3.4 million

    trees over an area of 35 Sq. Kms. And incorporated various technologies at a cost of

    Rs.460 Crores towards pollution control measures.

    Sources of Funds:

    VSP raise its working capital from of 10 Bankers. The following are the 10 banks

    where funds for finance are raised.

    State Bank of India (SBI)

    Canara Bank

    Directorate (Personnel)

    ED (P&IR) ED (P&CS)

    GM (P)-Works GM (P)-Non


    GM (CP&C) GM (Law liaison)

    officer SC&ST

    GM(Training & HRD)

    GM (TA)

    GM (MS)

    DGM (Admn) & Liaison I/C

    GM (M & HS)

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    UCO Bank

    Bank of Baroda

    Andhra Bank

    State Bank of Hyderabad

    Allahabad Bank.


    Industrial Development Bank of India (IDBI)

    Indian Overseas Bank (IOB)

    Achievements & Awards:

    The efforts of VSP have been recognized in various fora. 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:

    Award Purpose Year

    Excellence Award by Institute of

    Economic Studies

    For excellent performance in

    Steel industry 2014

    Corporate Vigilance Excellence

    Award 2013-14

    Outstanding initiatives in

    vigilance arena


    Hindi Award - HINDI


    Of Steel

    For implementation of the

    Official language of Hindi. 2014


    2014" TO SRI P


    Recognition by ICAI 2014





    Recognition for Corporate

    Leaders 2014

    Significant Achievement in CII

    EXIM Bank Award for Business

    Excellence 2013

    Overall Excellence in all

    activities of the company 2013

    Vishwakarma Awards -


    for 12 employees

    Innovative suggestions for higher

    efficiency, productivity & process



    First prize of prestigious Indira

    Gandhi Rajbhasha Shield For effective implementation of

    Official Language 2013

  • 31

    Award for Second best House

    Magazine in Hindi 'Sugandh'

    For excellence in House

    Magazine in Hindi 'Sugandh 2013

    Cost Management Excellence

    Award by Institute of Cost

    Accountants of India , New Delhi

    For excellence in Cost

    Management 2013

    National Vigilance Excellence

    Award by Vigilance Study Circle

    . For eminent professionals in the

    field of Vigilance


    ICC Corporate Governance and

    Sustainability Vision Award 2013

    For performance on Sustainability

    and Corporate Governance


    CII-ITC Sustainability Award 2012 - Strong commitment

    For performance on Sustainability


    Awards at ICQCC12, Malaysia -3 star (Top Most Category) for 3 QC


    For implementation of QC



    Vishwakarma Awards -


    (VRP) for 17 employees

    Innovative suggestions for higher

    efficiency, productivity & process



    Awards at INSSAN -2012 - 1st

    place in the Excellence in Suggestion Scheme & 3 Merit prizes

    For implementation of



    QCFI Award-2012 - Best Public

    Sector Organization

    For promoting Quality Concepts


    National Vigilance Excellence

    Award by Vigilance Study Circle


    For eminent professionals in the

    field of Vigilance


    CIO-100 Award

    For excellence in IT & Special

    Award under the category

    Networking Pioneer


    Indira Gandhi Rajbhasha Shield - First prize

    For effective implementation of

    Official Language Hindi


    Organizational Environment:

    RashtriyaIspat Nigam Limited, a Navratna PSE with 100% ownership held by GOI, is

    the corporate entity of Visakhapatnam Steel Plant-the countrys first shore based

    integrated steel plant at Visakhapatnam, Andhra Pradesh. Visakhapatnam Steel Plant,

    which was fully commissioned in 1992 with a capacity of 3Mtpa liquid steel, is now

  • 32

    in the midst of commissioning and stabilizing its 6.3Mtpa facilities, thus realizing its

    first phase of growth in line with its Vision and Mission.

    Main Products and Services: RINL, with its exclusive product mix of longs is the

    largest producer of long products in the country with a market share of 8% in 2012-

    13. The company also markets by-Products like coal chemicals (Ammonium

    Sulphate, Naphthalene, Coal tar, Pitch, Benzyl products, etc.) and Granulated BF slag.

    Delivery Mechanism:

    A network of 5 e Regional offices, 23 Branch offices, stockyards, 5 Consignment

    Sales Agents and 133 Retailers spread across the country cater to the delivery

    requirements, which is further complemented by DLDs and RDs to ensure availability

    of quality steel in rural areas at affordable prices. Retailers, DLDs and RDs provide

    efficient channel to ensure the availability of RINL products at various points of

    consumption that cannot be directly accessed by the company.

    Culture of the organization:

    Right from inception stage, a conscious effort on inculcating a New Work Culture

    of Commitment, Continuous improvement, Concern for environment and Customer

    orientation among employees were initiated and appropriate systems put in place,

    which over a period of time has evolved into a culture of Creative and Innovative

    improvements across the organization.

    Employee Profile, Education Levels, Work Force, Job Diversity, Use of Contract


    Total employee base can be organized into non-executive and executive grades.

    Categorization by department also provides a basic segmentation for the purpose of

    administrative convenience and structured deployment and monitoring of various

    initiatives fig., shows the overall manpower, age profile, gender diversity and

    qualification of employees in the organization. Apart from the regular employees on

    the rolls of the company, the company also engages contractual labor force for

    carrying out non-core activities in the production facilities.

  • 33





    Non Executives


    9% 27%

    15% 9%







  • 34

    Main facilities of the plat(Not Exhaustive)

    Salient Technological features at


    Salient technological features at


    7M tall Coke Oven Batteries with 100%

    CDQ3200 Cu.m Blast Furnaces with bell

    less top charging100% Continuous

    castingStelmore and Tempcore processes

    at Mills

    3800 Cu.m BF-Profilometer, copper

    staves, PCI etc.,

    Sinter Plant-Circular cooler, chamber

    type roof mounted Burner etc.,

    CCM-Auto Mould technology, Electro-

    Magnetic StemmingWRM-High Speed

    Mill (105-110m/s), digital furnace.

    Major Technologies, Equipment, Facilities:

    Technologies adopted (Fig) during the inception of plant were the first of its kind in

    the Indian steel industry, which RINL over the years has harnessed and improvised

    upon, to build a unique competitive advantage around its operational efficiency. It

    will vet further strengthened with stabilization of the 6.3Mtpa expansion units.

    RINL has been a forerunner in adoption of green technologies in the process of steel

    making through the BF-BOF route, in 1980s, well before the concepts of sustainable

    development emerged as a concern in the industry.

    An initial investment of 468Cr was made on clean technologies, which was 5.5% of

    the total project cost and the thrust continues even during the current expansion to

    6.3Mtpa with a total investment of1283Cr, which is 10% of the total project cost(fig)



    0 0

    Gender Diversity



  • 35

    Aspect Benefit

    Waste heat recovery at coke

    Dry Cooling Plant(CDQ)

    Generation of Power(2x7.5MW)through

    BPTS 14MW power generation from COB-


    Waste gad utilization (CO,

    BF&LD gas)

    Used as fuel in furnaces and boilers.

    Utilization of top pressure at

    BF through Top Recovery


    Generation of power(2x12MW) through


    Dry fog dust suppression at


    Reduced dust

    Evaporative cooling systems at


    Generation of process steam

    Aspect Benefit

    Waste heat recovery at straight line cooler of

    sinter plant

    20.6MW power generation

    Secondary emission control system at Steel

    Melt Shop-2

    Cleaner environment

    Waste heat recovery at Mills Generation of process steam

    by recovery of heat from the

    skids reheating furnaces

    Waste heat recovery at BF-3 stoves Used for pre-heating of gas&


    Generation of power using Lean BF gas (by-

    product gas)

    120MW power plant being


    Installed capacity of green power at RINL at present is 36% of total captive power

    generation capacity, through utilization of waste energy and the same is likely to go

    up to 62%, after the completion of 63.3Mtpa expansion and other ongoing projects.

    Statutory and Regulatory Environment:

    Being GoI owned PSE, RINL complies with all the applicable regulations and has

    been adopting the recent DPE guidelines on CSR, CG, SD, R&D etc., RINL has been

    certified for all three system standards i.e., ISO 9001:2008, ISO 14001:2004 and

    OHSAS 18001:2007. Further RINL is the first PSE and first in Steel sector in India to

    adopt ISO 50001 standards for Energy Management System.

    Stage of VSP in Business Life Cycle:

    VSP is a production unit and there shouldnt be a saturation level as the saturation

    level is followed by declination of profit, so when the sales of the business unit

    reaches to a saturation level then expansion/ extension renovates the business life

  • 36

    cycle and exploration of new units and products can be practiced, such that

    organization can maintain a consist position in market.

    Table 1.10 2Business life cycle of VSP

    Similarly VSP was into same stage of business life cycle, as it has already attained the

    saturation level, in order to with stand the competition and to maintain its position in

    the market, it has gone for expansion of 20000 acres evacuating the surroundings. As

    for the company norms they also provided employment for unemployed and as well

    as arranged for their accommodation. Government granted permission for new

    recruitment of 10% of present manpower.

  • 37



  • 38


    Whats in the name? Nothing, one might say. For steel a century old metalthere

    additionally seems no reason for any possible non-unanimity of thought. But here

    precisely are the chances for our going wrong. True, like most industries, the Indian

    Steel Industry has experienced the highs and lows of the business cycle, has been

    impacted by the globalization and has been subjected to the vagaries of market forces

    in a liberalized set up. But at the end of it all, what we have today is a highly evolved,

    resilient and an ever vigilant industry, which through adoption of State-of-the-art

    technologies has kept pace with changing times, producing an output that has not only

    stood the test of time but has globally transformed the way men think and do business

    in steel.

    India got into the steel making in the early 20th

    century when JRD Tata set up the first

    steel mill in the country in 1907 in Jamshedpur. Since then, the steel industry has

    undergone a lot of change but the Tata Iron and Steel Company continues to be the

    largest private steel maker in the country. The steel industry in the 70s and 80s was

    dominated by TISCO & SAIL. With the price control regime in place, the steel

    companies could turn in a profit without any major effort. But the situation soon

    changed when the country decided to open the doors for foreign investment in 1991.

    The pricing mechanism of Joint Plant Committee, which has been operating from

    1964, was abolished with effect from January 1992.

    In the initial economic reforms, industrialists saw the economy growing at 7% per

    annum and since steel consumption is directly linked to the growth in economy, it was

    assumed that demand for steel in the country would explode. This led to huge flow of

    investments into the steel industry and many EAF based steel units were set up. The

    1st phase (1914-1947) of its evolution can be traced to the beginning of the 20


    century when the steel industry made a beginning as an icon of active patriotism,

    thanks to the pioneering spirit of Swadeshi entrepreneurs in the private sector. This

    period saw a small but viable steel capacity of about 1 million on the coffin.

    Although the initial years justified these assumptions and steel consumption really

    took off, this scenario was not to continue for long. The political instability and the

  • 39

    resultant slow down in reforms saw the economic growth slowing down. The South

    East Asian economic crises were of course, the final nail on the coffin.

    During the second phase (1947 1992), in the hands of the early planners this

    industry became an important instrument for attaining rapid economic growth because

    of two inherent advantage enjoyed by it. Firstly, Indias fast reserves of the basic raw

    materials conferred a certain competitive advance to this industry. Secondly the

    wide-ranging linkages, both forward & backward sector has with the rest of the

    economy made it an ideal catalyst for generating and sustaining economic


    During the 4 decades, the Indian State invested heavily in crating large scale

    integrated capacities in the public sector as part of the overall development strategy

    aiming at self sufficiency in the heavy & basic industries. To ensure state control at

    the commanding heights of the economy, large-scale capacity creation was reserved

    for the public sector units (PUS) in a predominantly mixed economic environment.


    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 as significant amount of waste materials, which can

    environmental problems. The four aspects of Waster 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 countrys aim is to sell quality steel. The government is also helping the steel

    industries in this basis. The apparent consumption of steel is shown below:

  • 40

    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 a 1990. 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 tons 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.


    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.


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

    Because of technical limitations, Rourkela plant is unable to substitute aluminum and

    Zinc in the production of galvanized sheet, apart from 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.


    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

  • 41

    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 didnt regulate the price of the raw materials.

    Table 2.1

    Growth of Steel Industry

    Table 1.6 The growth in a chronological order is depicted below:

    S No

    Year Growth



    Osier Marshall Heathler constructed the first

    manufacturing plant at prot-motor in Madras presidency.

    2. 1874 James Erskin founded the Bengal frame works.

    3. 1899 Jamshediji TATA imitated the scheme for an integrated

    steel Plant

    4. 1906 Formation of TISCO

    5. 1911 TISCO started production

    6. 1918 TISCO was founded

    7. 1940-1950 Formation of My sore iron and steel initiated at

    Bhadravathi in Karnataka

    8. 1951-1956 First five-year plan The Hindustan Steel Limited (HSL) was born in the year 1954 with decision of setting up three

    plants each with 1 million tones ingot steel per year at

    Rourkela, Bhilai,Durgapur. TISCO started its expansion


    9. 1956-1961 Second five-year plan A bold decision was taken up to increase the ingot steel output in India to 6 million tones per

    year and its production at Rourkela, Bhilai and durgapur Steel

    Plant started.

    10. 1961-1966 Third five-year plan During the plan the three steel plants under HSL, TISCO & TISCO were expanded.

    11. 1964 Bokaro Steel Plant came into existence

    12. 1966-69 Recession period Till the expansion programmes were actively existed during this period

    13 1969-74 Fourth five-year plan Salem Steel Plant started. Licenses were given for setting up of many mini steel plants and re-

    rolling mills government of India. Plants in south are each in

    Visakhapatnam and Karnataka. SAIL was formed during this

    period on 24th

    January 1973.

    14 1974-79 Fifth five-year plan The idea of setting up the fifth integrated steel plant, the first re-based plant at

    Visakhapatnam took a definite share. At the end of the fifth

    five-year plan the total installed capacity from six integrated

    plants was up to 10.6 million tons.

  • 42

    15 1979-1980 Annual plan. The Erstwhile soviet union agreed to help in

    setting up the Visakhapatnam Steel Plant.

    16. 1980-1985 Sixth five-year plan Work on Visakhapatnam Steel Plant started with a big bang and top priority was accorded to start

    the plant. Schemes for modernization of Bhilai Steel Plant,

    Rourkela Steel Plant, Durgapur steel plant and TISCO were

    initiated. Capacity at the end of sixth five-year plan from six

    integrated plants stood 11.50 million tones.

    17. 1985-91 Seventh five-year plan Expansion works at Bhilai and Bokaro steel plant completed. Progress of Visakhapatnam

    Steel Plant picked up and the nationalized concept has been

    introduced to

    Commission the plant with 30 MT liquid steel capacities by


    18. 1992-1997 Eighth five-year plan The Visakhapatnam Steel Plant was commissioned in 1992. The cost of plant has become around

    8755 crores. Visakhapatnam Steel Plant started the production

    and modernization of other steel plants is also duly engaged.

    19. 1997-2002 Ninth five-year plant Restructuring of Visakhapatnam Steel Plant and other public sector undertakings.

    20. 2002-2007 Tenth five year plan-Steel industry registers the growth of

    9.9% Visakhapatnam steel plant high regime targets achieved

    the best of them.

    21. 2007-2012 Eleventh five year plan-Steel industry registers the growth of

    Visakhapatnam steel plant high regime targets achieved the

    best of them.

    22. 2012-2017 Twelfth five year plan-The steel industry has a bright future

    as the union government has announced to create

    infrastructure worth Rs 50 lakh crore in Visakhapatnam steel


    Table 1.7

    Steel Plants with foreign Collaborations

    S.No Plant Collaboration Capacity of Finished

    Steel Products

    1. Rourkela Steel Plant West Germany

    2. Bhilai Steel Plant Erstwhile USSR

    3. Durgapur Steel Plant Britain

    4. Bokaro Steel Plant Erstwhile USSR

  • 43

    Table 1.8 Annual Production

    S.No Plant Collaboration Capacity

    of Finished Steel




    1. Rourkela Steel


    West Germany 7,20,000


    2. Bhilai Steel Plant Erstwhile USSR 7,70,000


    3. Durgapur Steel


    Britain 8,00,000


    Table 1.9: Expansion:- S.No PLANT ORIGINAL




    1. Rourkela Steel


    1.0 1.8

    2. Bhilai Steel Plant 1.1 4.5

    3. Durgapur Steel


    1.0 1.6

    4. TISCO 1.0 2.0

    Growth Potential of Indias Steel Industry: India has set a vision to be an

    economically developed nation by 2020. The steel industry is expected to play a

    major role in Indias economic development in the coming years. The steel industry of

    India has a very high growth potential and is expected to register significant growth in

    the coming decades. India is expected to emerge as a strong force in the global steel

    market in coming years.

    The two major aspects that are expected to play a significant role in

    the growth of the steel industry in India are :

    Abundant availability of iron ore in the country.

    The country has well established facilities for steel production.

    Steel production in India has grown from 17 million tons in 1990 to 36 million tons in

    2003. In India, steel demand is expected to grow by 3.3% to 76.2 Mt in 2014,

    following 1.8% growth in 2013

    The Major Sectors Where Consumption Of Steel Is Expected To

    Grow In The Coming Years Are :-


  • 44


    Ground transportation

    Hi-tech engineering industries such as power generation, petrochemicals,


    Conclusion on Indian Steel Industry:

    The Indian steel industry is among the upcoming industries of the world. It has a

    number of iron ores, which means that it has plenty of resources from which to draw

    its raw material.The rate of production of steel in India has been going up at a steady

    rate in the last few years. In the recent times Orissa and Jharkhand have been

    identified as the potential steel destinations of India the ones that would provide the

    Indian steel industry with its necessary raw material. There are also a number of steel

    companies in India like Tata and ArcelorMittal that are either coming up or have

    established themselves as prominent forces in the world steel scenario.

    In the recent times a lot of foreign direct investment is being made in the Indian steel

    industry. In fact the rate of investment is being made in the last few years and, to a

    certain extent, this increase has been contributed to by the growth potential of the

    steel industry of India that is thought of as being impressive in the international steel


  • 45


  • 46

    SWOT Analysis:

    RashtriyaIspat Nigam Limited- Vizag Steel

    Parent Company RashtriyaIspat Nigam Limited

    Category Iron & steel

    Sector Industrial products

    Tagline/ Slogan Pride of Steel


    Only shore based integrated steel plant in the country

    helps in improving cycle time



    Wire rods, rounds, reinforcement bars, angles, channels,

    blooms, billets, beams

    Target Group

    Industries including automotive, construction, petroleum,

    railways, shipbuilding


    The largest player in the domestic long steel products

    segment and delivers high quality, cost competitive


    SWOT Analysis

    1. Conferred with Navratna status in India, making it a strong market player

    2. Enriched product mix and sustained profitability and sales

    3. One-fourth of saleable steel neutralized impact of rise in raw material prices

    4. Dispatch of over 2 mn tons of steel by rail is the best for any year since


    5. The first Indian steel company to adopt energy management standard for

  • 47


    systematic improvement in energy efficiency

    6. High commitment to achieve capacity levels.

    7. Economics of sales.

    8. High expansion potential.

    9. Strong commitment to conserve environment


    1. Rise in input cost affects cost of production & operating efficiency

    2. High interest and finance charges is a concern

    3. Single location company- Only long products exposed to cyclical markets

    4. Low return product mix.

    5. Productivity below international standards.

    6. Lack of ore.


    1. Mergers & Acquisitions to gain market share

    2. Continued emphasis on infrastructure building & several Greenfield projects

    under execution will boost growth

    3. Focus on strategic initiatives of Expansion, securing raw materials

    4. Improve availability of ports and logistics. Access to import sources.

    5. Proximity to southern markets. Increasing domestic demand due to thrust on

    infrastructure development.


    1. Rising in inflation rate and increase in interest rates by RBI etc. impacts the

    rate of growth

    2. The debt crisis in Europe & the political turbulence in the Middle east

    3. Speculative market of raw materials is a real concern

    4.Increasing competition.

    5. Possibility of import duties declining further

  • 48

    Future Prospects:

    To expand the plant from 6.3 mn tons to 20 mn tons in different stages.

    Establish different plants like excel wheel and government has sanctioned a

    manpower of 8% of the existing workforce in the achieving the integrated




    1. JSPL

    2. TATA Steel

    3. ISPAT

  • 49






  • 50


    There is a special role of every industry barring up on the need essentiality where

    everything has to be done in accordance with standards that are regulated by the


    To understand this, conceptual idea is not only sufficient but also it needs a wide

    knowledge and understanding of the factors that are affecting them. Especially

    VISAKHAPATNAM STEEL PLANT has emerged from loss to profit making


    Now, the study is all about analyzing, how this has been possible for companies

    where there is large scale of employees are working towards the growth of the

    organization serving the needs of public. Through this study the code of conduct in

    recruiting the manpower and the study of growth of an employee along with

    organization, where the backbone of any organization in bringing expected outcomes

    is performed by manpower.

  • 51


    The Study is based upon the part of Recruitment case study at VSP and the scope of

    study is limited to recruitment of executives, and the analysis made on the basis of the

    data that is available from the respective department. A business, work or any new

    idea generates from need. Similarly the recruitment process also starts by the need for

    manpower. Promotion and Retirement trends for the next 5 yrs assess the number of

    members that should be recruited to deploy the work in right time. The Study

    predominantly aims to explore the scope of recruitment in the coming 5 years.

  • 52


    The research being an exploratory research deals with data collected from primary

    sources. It is conducted to gain better understanding of certain situations. This

    research is backed up by serious substantive research to make decisions.

    Exploratory research for problem definition purposes.

    Understanding the HR delivery process in detail and depth.

    Understanding the process through observation in its natural setting.

    Context dependent research.

    Need for new insights in addition to quantitative research.

    The information for the study has been obtained from two sources namely:

    1. Primary Data

    2. Secondary Data

    1. Primary Data: It is the information collected directly without any reference.

    Observations and through personal interview: In this study it is mainly

  • 53

    concerned with interviews from officers and staff, some of the information has

    been verified or supplemented with personal observations .

    Through telephone interviews: This is method of collecting information

    involves contacting the respondents on telephone itself. The comparative

    research of HR practices in private Sector and public Sector was made in this


    Deliberate sampling: In this case, having discussion with recruitment

    manager and guidelines are taken from Asst. General Manager (HRD) and

    with Deputy General Manager(HRD).

    2. Secondary Data: This is taken from the annual reports, websites, company

    journals, magazines and other sources of information of steel plant.

    Analysis of Data: Here in this the previous years reports were considered and

    the company journals were taken into consideration for the sake of

    performance based data .

    While evaluating and estimating the manpower requirement the existing

    manpower details was collected from the respective officer of the concerned


  • 54



  • 55

    Recruitment: Definition: The process of finding and hiring the best-qualified candidate (from

    within or outside of an organization) for a job opening, in a timely

    and cost effective manner. The recruitment process includes analyzing

    the requirements of a job, attracting employees to that job, screening and

    selecting applicants, hiring, and integrating the new employee to the organization.

    This is one of the major responsibilities of the human resource team. The HR

    managers come up with plans and strategies for hiring the right kind of people. They

    design the criteria which is best suited for a specific job description. Their other tasks

    related to recruitment include formulating the obligations of an employee and the

    scope of tasks assigned to him or her. Based on these two factors, the contract of an

    employee with the company is prepared. When needed, they also provide training to

    the employees according to the requirements of the organization. Thus, the staff

    members get the opportunity to sharpen their existing skills or develop specialized

    skills which in turn, will help them to take up some new roles.

    Sources of Recruitment:

    Every organization has the option of choosing the candidates for its recruitment

    processes from two kinds of sources: internal and external sources. The sources

    within the organization itself (like transfer of employees from one department to

    other, promotions) to fill a position are known as the internal sources of

    recruitment. Recruitment candidates from all the other sources (like outsourcing

    agencies etc.) are known as the external sources of recruitment.

    Recruitment is of the most crucial roles of the human resource professionals. The

    level of performance of an organization depends on the effectiveness of its

    recruitment function. Organizations have developed and followed recruitment

    strategies to hire the best talent for their organization and to utilize their resources


    Namely there are two sources of recruitment and the types can be depicted from the

    following figure:

  • 56


    A successful recruitment strategy should be well planned and practical to attract

    more and good talent to apply in the organization.

    For formulating an effective and successful recruitment strategy, the strategy

    should cover the following elements:

    Identifying& prioritization:

    Requirements keep arising at various levels in every organization; it is almost a

    never-ending process. It is impossible to fill all the positions immediately.

    Therefore, there is a need to identify the positions requiring immediate attention

    and action. To maintain the quality of the recruitment activities, it is useful to

    prioritize the vacancies whether to focus on all vacancies equally or focusing on

    key jobs first.

    The recruitment process can be effective only if the organization completely

    understands the requirements of the type of candidates that are required and will

    be beneficial for the organization. This covers the following parameters as well:

    Performance level required: Different strategies are required for focusing

    on hiring high performers and average performers.

  • 57

    Experience level required: the strategy should be clear as to what is the

    experience level required by the organization. The candidates experience

    can range from being a fresher to experienced senior professionals.

    Category of the candidate: the strategy should clearly define the target

    candidate. He/she can be from the same industry, different industry,

    unemployed, top performers of the industry etc.


    The strategy should define various sources (external and internal) of recruitment.

    Those are the sources to be used and focused for the recruitment purposes for

    various positions. Employee referral is one of the most effective sources of


    The recruitment professionals conducting the interviews and the other recruitment

    activities should be well-trained and experienced to conduct the activities. They

    should also be aware of the major parameters and skills (e.g.: behavioral, technical

    etc.) to focus while interviewing and selecting a candidate.

    Evaluation of candidates:

    The various parameters and the ways to judge them i.e. the entire recruitment

    process should be planned in advance. Like interviews, written tests, psychometric

    tests etc.

    How Is HR Different Between the Public and Private Sectors?

    Sure, there are differences between human resources in the public and private sectors.

    But the goal is the sameto enable our organizations to attract, develop and retain

    talent. One key difference is that, unlike the private sector, most public sector

    organizations are not at-will employers. Among other things, that means that

    employees can only be removed "for cause."

    There are several reasons for that, including court rulings that government employees

    have property rights to their jobs and therefore this propertytheir jobscan only be

    taken away for cause.

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    This legalistic approach also applies to your specific question about hiring. While

    there are variations among public sector organizations, government hiring typically

    must be merit-based, requiring "fair and open competition." This often means that

    hiring is more process-oriented than in the private sector.

    In practice, fair and open competition means that:

    Hiring is preceded by, and based on, very detailed position descriptions.

    Application periods are specified in advance and have firm closing dates.

    Candidates often have to go through civil service "exams." However, these are

    often not what we think of as exams (e.g., with multiple-choice questions) but

    can be questionnaires, training and experience evaluations or even rsum


    Candidates are assessed, scored and ranked according to predetermined

    evaluation criteria.

    The evaluation processand resultsare thoroughly documented to ensure

    that all candidates receive equal consideration and the process is defensible if


    Candidate evaluations may require multiple levels of screening, often with

    rating panels.

    There are often preferences for veterans and member of underrepresented

    demographic groups.

    The hiring manager is usually given a list of the best-qualified candidates (the

    "certified list") and the manager then has to give each candidate equal

    consideration (usually an interview, often in a very structured

    fashion).However, these steps don't mean that the hiring process has to be

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    user-unfriendly or take forever, even though some government agencies can

    take the hiring process to unreasonable lengths. Some common myths are:

    We can't recruit aggressively because that would give the recruited candidates

    an unfair advantage.

    Multiple choice questions are a must.

    We always need long application periods to allow the maximum number of

    candidates to apply.

    Accepting applications online isn't fair because not everyone has a computer.

    Job ads have to mimic the position descriptions.

    We can't give hiring or referral bonuses.

    Recruitment Process:

    Job Analysis:

    Definition: A job analysis is the process used to collect information about the duties,

    responsibilities, necessary skills, outcomes, and work environment of a particular job.

    1) Identify vacancy

    2) Prepare job description and person specification

    3) Advertising the vacancy

    4) Managing the response

    5) Short-listing

    6) Arrange Interviews

    7) Conducting interview and decision


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    You need as much data as possible to put together a job description, which is the

    frequent outcome of the job analysis.

    Additional outcomes include recruiting plans, position postings and advertisements,

    and performance development planning within your performance management


    The job analysis may include these activities:

    Reviewing the job responsibilities of current employees

    Doing Internet research and viewing sample job descriptions online or offline

    highlighting similar jobs.

    Analyzing the work duties, tasks, and responsibilities that need to be accomplished

    by the employee filling the position

    Researching and sharing with other companies that have similar jobs, and

    Articulation of the most important outcomes or contributions needed from the


    The more information you can gather, the easier the actual writing of the job

    description will be.

    Job Specification:

    Definition :A job specification describes the knowledge, skills, education,

    experience, and abilities you believe are essential to performing a particular job. The

    job specification is developed from the job analysis. Ideally, also developed from a

    detailed job description, the job specification describes the person you want to hire for

    a particular job.

    A job specification cuts to the quick with your requirements whereas the job

    description defines the duties and requirements of an employees job in detail. The job

    specification provides detailed characteristics, knowledge, education, skills, and

    experience needed to perform the job, with an overview of the specific job


    Components of a Job Specification

    Experience: Number of years of experience in the job you are seeking to fill. Number

    of years of work experience required for the selected candidate. Note whether the

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    position requires progressively more complex and responsible experience, and

    supervisory or managerial experience.

    Education: State what degrees, training, or certifications are required for the position.

    Required Skills, Knowledge and Characteristics: State the skills, knowledge, and

    personal characteristics of individuals who have successfully performed this job. Or,

    use the job analysis data to determine the attributes you need from your ideal

    candidate. Your recruiting planning meeting or email participants can also help

    determine these requirements for the job specification.

    High Level Overview of Job Requirements: In less than ten bullet points, cite the

    key components and requirements of the job you are filling.

    A job specification is useful for recruiting as it helps you write your job postingsand

    your website recruiting material. The job specification is also useful for distribution

    in social media, for screening resumes, and for interviewers.

    Job Description:

    Definition :A broad, general, and written statement of a specific job, based on the

    findings of a job analysis. It generally includes duties, purpose, responsibilities, scope,

    and working conditions of a job along with the job's title, and the name

    or designation of the person to whom the employee reports. Job description

    usually forms the basis of specification. Job descriptions are written statements that

    describe the:



    Most important contributions and outcomes needed from a position,

    Required qualifications of candidates, and

    Reporting relationship and coworkers of a particular job.

    Job descriptions are based on objective information obtained through job analysis, an

    understanding of the competencies and skills required to accomplish needed tasks,

    and the needs of the organization to produce work.

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    They clearly identify and spell out the responsibilities of a specific job. Job

    descriptions also include information about working conditions, tools, equipment

    used, knowledge and skills needed, and relationships with other positions.

    The best job descriptions are living, breathing documents that are updated as

    responsibilities change. They do not limit employees, but rather, cause them to stretch

    their experience, grow their skills, and develop their ability to contribute within their


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    RINL/VSP is one of the modern integrated Steel Plants in India with the state-of-

    the-art technology in steel making. To manage the given technology, operate the

    continuous processes of Production and carry out other critical functions like

    Marketing, Personnel, Finance etc, skilled, highly skilled personnel and competent

    professionals with excellent managerial capabilities are required to be inducted at

    right place and right time. In the contemporary business environment marked by

    fierce competition in hiring quality manpower, RINL Recruitment Policy seeks to

    provide the broad framework of recruitment to tap suitable personnel in the

    market, facilitate evaluation of the capabilities in terms of their potential for

    fulfillment of Companys objectives and induct the best and the most competent

    personnel in the shortest possible time.


    To meet manpower requirements of the company in terms of the approved

    strength of manpower.

    To fulfill the requirements of competent personnel in terms of requisite

    capabilities, skills, qualifications, aptitude, merit and suitability with a view to

    fulfill companys objectives.

    To attract, select and induct the best of the talents available keeping in view

    the functional requirements of the Organization.

    To provide suitable induction points for intake from external sources and

    thereby infuse fresh blood into the organization.

    To ensure an objective and reliable system of selection.

    To have a dynamic and reasonably flexible recruitment policy in tune with

    market economy to enable induction of personnel in the quickest possible time

    to meet the operational requirements of the organization.


    The policy shall cover all recruitment of personnel made in the Company in executive

    as well as nonexecutive cadre (except appointments made by the Govt.) and shall

    apply to all units/branches of RINL.

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    The policy shall not cover engagement of advisers/consultants/experts etc or ad-hoc

    appointments for temporary requirements.

    Sources Of Recruitment:

    There will be two sources of recruitment:

    i. Internal i.e. from within the Company.

    ii. External i.e. from open market through Employment Exchange, advertisement

    in press/internet, recruitment through reputed placement/manpower agencies,

    other organizations and/or campus selection from Universities/Institutes

    and/or through direct negotiations. Management shall have discretion to resort

    to any of the above sources of recruitment depending on functional needs of

    the Company.


    Recruitment/Selection to posts from within the company may be done through

    internal circulation as under:

    The posts intended to be filled through internal sources will be circulated in

    the Company giving the qualifications, age, experience etc.

    Internal recruitment involving changes in grade will be processed by the

    respective Zonal Personnel I/c with the approval of Competent Authority.

    Such proposals will be routed through Manpower Cell of Personnel Dept. to

    ascertain the vacancy position, to assess the need to fill up such vacancies,

    roster points etc.

    Internal selection will be done by conducting written test and/or interview by a

    duly constituted committee.

    Transfer from one department to another in parallel grade within the Company

    following the procedure of internal selection will not be treated as recruitment.


    Recruitment from external sources will be resorted to for injection of fresh blood at

    the induction level(s)/grade(s). However, the company may, if required, induct direct

    recruits from external sources at other level(s)/grade(s) also to meet functional

    requirements of particular skill/experience or for optimum utilization of its assets

    and/or infusion of modern systems, skills & techniques of operation etc., necessary

    for efficient operation, technology up gradation or modernization.

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    At least, 66 2/3% of vacancies occurring during the preceding year(s) at

    induction level(s)/grade(s) in E-0 grade will be filled up through Management

    Trainees (MTs).

    Recruitment of executives from external sources will be made generally through open

    advertisement in the press. However, recruitment of executives can also be done

    through campus interviews from approved Institute(s), Universities and/or reputed

    placement/manpower agencies and/or circulation of posts to PSUs/ Government with

    the prior approval of the Competent Authority. In case of specialist job requirements,

    the Company reserves the right to seek response through designated/limited time Post

    Box Number applications. In rare/ exceptional cases, recruitment of Executives from

    external sources through direct negotiation with individuals can also be made.

    Recruitment to the posts in non-executive cadre carrying scale of pay, maximum of

    which does not exceed Rs.2500 per month (pre-revised) as indicated in the DPE OM

    No.2(48)/91-DPE (WC) dt.6.4.1992, will be done through the Employment Exchange.

    In addition to notifying the vacancies for such relevant categories to the Employment

    Exchange, the requisitioning authority may, keeping in view administrative/budgetary

    conveniences, arrange for the publication of the recruitment notice for these

    categories in the Employment News or other newspapers and then consider the cases

    of all the candidates who have applied, provided they fulfill the specifications for the

    post advertised. In addition to above, such recruitment notices will be displayed on

    the office notice boards also for wider publicity (DPE 24(11)/96(GL-010)/GM


    In case of death or permanent total disablement of an employee due to accident

    arising out of and in course of employment, employment to one of his/her direct

    dependents will be provided subject to other conditions as per prescribed procedure.

    In all other cases of death while in service/termination of service on permanent

    medical unfitness, the concerned employee/dependent(s) will only be entitled to

    monthly payment benefits as per Employees Family Benefit Scheme.

    To encourage and support sports and sportsmen, the Company may recruit

    sportsmen under sports quota by following the procedure laid down in DPE

    guidelines/Government rules on