Study of HR Policies Practices in Tata Steel

Dissertation
On
“STUDY OF HR POLICIES PRACTICES IN
TATA STEEL”
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF THE DEGREE
Master of Business Administration

Submitted By:
Gajendri Chauhan
Roll No. 1217570019
Under the supervision of

Mr. Azmat Ali Khan
(Sr. Assistant Professor)
AL-BARKAAT INSTITUTE OF MANAGEMENT STUDIES,

ALIGARH
(Affiliated to UPTU Lucknow)
2014
Gajendri Chauhan MBA 4th Sem 2013-14 ABIMS, Aligarh 1

DECLARATION
I solemnly declare that the report titled “Study of HR Policies Practices in Tata
Steel” is a bonafide record of work carried by me, submitted to partial
fulfillment of requirement for the award of degree Master of Business
Administration under the guidance of MR. AZMAT ALI KHAN , (SR.
ASSISTANT PROFESSOR) Al-Barkaat Institute of Management Studies , Aligarh
This project report is solely the work of me based upon analysis, printed
material given in bibliography. The matter embodied in this report has not
been submitted for the award of any other degree.
Dated: Gajendri Chuahan

Acknowledgement
This dissertation is the result of the contributions and cooperation of many people, other than
my own small efforts.
I wish to extend my sincere thanks to all my teachers, who have bestowed me with the
erudition that has made this assignment possible.
In particular I wish to extend my earnest and heartfelt thanks to my supervisor
MR. AZMAT ALI KHAN (Sr. Assistant Professor) Al-Barkaat Institute of
Management Studies , Aligarh whose timely advice, sermonizing words of wisdom and
motivation inspired me into finishing this assignment successfully. I am indebted to him for his
involvement.
I also wish to thank my parents and all those unknown people who agreed on filling my
questionnaires painstakingly and thus helped me actually go ahead with my assignment or my
work would have remained confined to my imagination.
In the end I would also like to add that this report exists because of the cooperation of all and
that I take no credit for this achievement but responsibility for any mistake and inaccuracies.
Gajendri Chauhan

TABLE OF CONTENT
Certificate
Declaration
Acknowledgement
Chapter – 1 Introduction 1-8
Chapter – 2 The Importance of a HR Policies & Practices Strategy 9-20
Chapter – 3 Background of Tata Steel Ltd. 21-28
Chapter – 4 HR policies practices in Tata steel 29-50
Chapter – 5 Research Methodology 51-53
Objectives of the study 53
Chapter – 6 Data Analysis and Interpretation 54-67
Findings 67
Chapter – 7 Suggestions and Conclusion 68-73
Suggestions 69
Recommendations 70
Limitations 72
Conclusion 73
Bibliography 74
Questionnaire 75-78

Chapter-1
Introduction

Introduction
Human resource policies are systems of codified decisions, established by an
organization, to support administrative personnel functions, performance
management, employee relations and resource planning.
Each company has a different set of circumstances, and so develops an individual
set of human resource policies.
Purposes
The establishment of policies can help an organization demonstrate, both
internally and externally, that it meets requirements for diversity, ethics and
training as well as its commitments in relation to regulation and corporate
governance of its employees. For example, in order to dismiss an employee in
accordance with employment law requirements, amongst other considerations, it
will normally be necessary to meet provisions within employment contracts and
collective bargaining agreements. The establishment of an HR Policy which sets
out obligations, standards of behavior and document disciplinary procedures, is
now the standard approach to meeting these obligations.
HR policies can also be very effective at supporting and building the desired
organizational culture.[2] For example recruitment and retention policies might
outline the way the organization values a flexible workforce, compensation

policies might support this by offering a 48/52 pay option where employees can
take an extra four weeks holidays per year and receive less pay across the year.
HR Policies & Employment Legislation
Developing HR Policies
This section gives practical information to organizations on how to
develop HR policies and procedures. The guide is designed for small
nonprofits. It will be useful to those who are just beginning to develop
policies and those who are reviewing and updating existing policies. Tools
you will find in this section include a Policy Template, a Guide to
Developing an Employee Handbook, and a template Statement of
Understanding.
Why policies are important
Policies serve several important functions:
Communicate values and expectations for how things are done at your
organization
Keep the organization in compliance with legislation and provide
protection against employment claims
Document and implement best practices appropriate to the organization

Support consistent treatment of staff, fairness and transparency
Help management to make decisions that are consistent, uniform and
predictable
Protect individuals and the organization from the pressures of
expediency
Defining policy and procedure
A policy is a formal statement of a principle or rule that members of an
organization must follow. Each policy addresses an issue important to the
organization's mission or operations.
A procedure tells members of the organization how to carry out or
implement a policy. Policy is the "what" and the procedure is the "how to".
Policies are written as statements or rules. Procedures are written as
instructions, in logical steps.
Steps in Policy Development
Your workplace is unique and therefore you may need to develop policies
very specific to your organization and type of work, for which there are no
templates or benchmarks. Typically, policy development will follow the
following steps:
Step 1: Establish need for a policy

Step 2: Develop policy content
Step 3: Draft the policy
Step 4: Write the procedure
Step 5: Review of the policy by key parties
Step 6: Approve the policy
Step 7: Implement the policy
Step 8: Policy review and update
Step 9: Communication of changes to the policy
Role of the board of directors in HR policy development
Boards can play a variety of roles in HR policy development. It is helpful to have
the board clearly define the role they want to take in policy development, whether
they want to be involved in shaping the content or be involved only at the
approval stage. They may decide that only some fundamental policies require
their review and other policies can be approved and managed by the executive
director. Alternatively, a board may form an HR committee to write policies and
procedures. The board may set a time frame for reviewing HR policies, or they
may delegate this responsibility.
If your organization develops a policy on the development, review and update of
organization policies, the role of the board can be outlined in it.

Examples of HR Policy Practiced Areas in an Organization
Human resources policies can be compared to game rules. They safeguard
fairness and equality for everyone in the organization, guide management and
supervisors, and clearly explain expectations. HR policies reflect organizational
culture and ensure compliance with employment legislation. Outlined in the
employee handbook, every HR policy addresses five points: scope, or who it
covers; accountability, or who enforces it; definitions of relevant terms;
procedures; and any relationship to other policies.
Employee Conduct
An organization uses HR policies to notify members of its workforce what it
expects of them. Topics range from dress code to using social media. The steps to
take for absences and thresholds that trigger consequences for absenteeism fall
under an attendance policy. Discipline and corrective action policies detail
procedures and subsequent outcomes for performance issues. Although only
publicly traded firms need an ethics policy to comply with the Sarbanes-Oxley
Act of 2002, Business Ethics online magazine editor Michael Connor told Inc.
that all businesses should have an ethics policy to minimize risk. Such a policy
presents the firm's position on honesty, confidentiality and accountability, and
defines gift-giving situations and conflicts of interest.

Employment Terms
The conditions under which employment may end protect employees and
employers when written as policy. "At will" employment, under which an
employer reserves the right to terminate an employee without notice or cause is a
good example. If you allow a 60- or 90-day probationary period for new hires or
if employment hinges on adherence to noncompete requirements, your employee
handbook should cover these policies. Some organizations outline their policies
on reduction in force.
Work Environment
HR policies that deal with the work environment explain the organization's vision
for diversity and other equal employment opportunity criteria, including a zero
tolerance for harassment and grievance procedures. Businesses that adopt smoke-
free and fragrance-free rules include them as HR policies. Safety and related
training policies, whether OSHA-mandated or not, assure employees that the
company takes their well-being seriously. Examples of safety policy topics
include wearing ID badges, visitors, and steps for emergencies such as fire, lost
children, evacuations and inclement weather.
Staffing
Clearly defined policies for recruitment, hiring, promotions and transfers guide
human resources professionals and minimize litigation risks. These road maps

address reference checks, background checks, testing requirements and
documentation retention. When and if hiring relatives -- nepotism -- is acceptable
appears in some HR policy manuals, as do onboarding, career planning and the
internal selection process.
Benefits
The company must explain its stance regarding benefits. Paid time off -- personal
days, sick days, vacation, holidays, jury duty and bereavement -- require written
policies to avoid misunderstandings, disappointment and confusion. Programs for
tuition reimbursement and employee assistance also merit separate policies.
Worker's compensation and leaves of absence are prime HR policy candidates, as
are 401(k)s, domestic partner eligibility and perks such as travel vouchers.

Chapter-2
The Importance of a HR Policies &

Practices Strategy

The Importance of an HR Policies & Practices Strategy
The Organization values Human Resources as the most potent factor towards
maximizing capital returns. Towards this goal and achieving the vision of the
Company, the organization has put with operation processes and avenues around
contemporary people practices covering amongst others, in areas of Sourcing,
Performance Management, Culture, Work life balance, People Capability, People
Engagement, etc. The Organization has an open, transparent culture, enabling
employees to share views, suggestions, and concerns with their Superiors. Assess
to Management at all levels is encouraged.
In continuation of such efforts to build a vibrant workplace, practices & processes
instituted along multiple interventions mentioned above are being continuously
strengthened.
Towards employee motivation, retention & ownership, the Company has
implemented revised policies, reviewed pay across levels from entry level
onwards. The focus of such review is market driven along with rewarding
meritorious performers.
Work life balance activities through recreation, sports and cultural events
continue at various units. Festivals, events are periodically organized, involving
employees and their families to bring in a sense of bonding and camaraderie.
Towards continued building people capability, technical & other trainings

whether in-house or external continue to be in focus. Technical training is
reemphasized along with behavioral skill to enhance technical skills and
leadership qualifies.
Infusion of contemporary skills at middle & senior levels continue as also internal
movements, career progression to retain & reward individuals and provide
avenues to shoulder higher responsibilities.
Job rotations, overseas visits and exposures continue towards building people
capability in itself and for the future. Key positions continuity planning has been
put in place to ensure a pipeline of quality & talented individuals.
The organization believes that people are one of its major strengths, repository of
knowledge, merit oriented & value based.
"Why," you may ask, "do I need a policies and practices strategy for my
business?"
The simple answer is...because you have people working for you.
With human nature being what it is, employees will test limits and act "creatively"
in workplace situations, so you need a strategy for developing, communicating and
enforcing a set of policies and practices that reflect your standards of acceptable
behavior.

But a successful policies and practices strategy does more than draw boundaries; it
also recognizes and addresses people's needs.
There are many different types of people, and not surprisingly, they react
differently to the need for policies and practices based on those differences. For
example, some people prefer there be a written policy for everything, while others
favor having no policies at all and would leave everything open to interpretation as
situations arise. Neither of these extremes contributes to a work environment that's
conducive to high productivity levels. The answer is found in between, with the
right number and types of policies and practices that are focused on a primary
goal--improving individual performance in the workplace.
When you get to the heart of the matter, performance improvement is really about
the process of setting expectations and meeting them. The focus in business is not
just about meeting specific goals, but also about how you achieve them. And the
"how" affects the liabilities you create in the process.
So how can you make sure your employees have clear expectations and are treated
fairly as they work to help build your company? The answer is found in the way
you address four key elements related to the development and deployment of your
policies and practices: roles, rules, consequences and tools.

Roles
People like to have a clear understanding of their role in a company as well as the
roles of others. Every successful team has well-defined positions for its members:
Everyone knows what he or she is to do, how to do it and how their performance
can impact those around them. In business, this means you need to have clear
reporting structures that spell out who's in charge and how tasks are to be
accomplished in the organization.
This approach applies not only to intradepartmental structures, but also to
company-wide or interdepartmental projects. In addition, role definition is a
foundational part of establishing clear performance expectations for each
employee.
Rules
Managers and employees need to share a clear understanding of what is and what
is not acceptable behavior within the company. Unfortunately, in today's
workplace, an employer can be held liable for the bad behavior of an employee,
especially when that bad behavior affects other employees, clients or individuals.
Having a clear set of behavioral expectations is critical to establishing that you're
not contributing to that bad behavior as an employer.
Setting clear and specific behavioral standards in the form of rules establishes a
framework for spotting and addressing violations of those standards. If you rely on
loosely defined general standards that aren't properly documented, then violations
become subjective and open to interpretation. The result of such ambiguousness is
often litigation.
Consequences
It's important that you clearly state consequences for violations of your behavioral
standards so that employees know what to expect and have fair warning of those
expectations. In addition, clear consequences help to ensure that you aren't limited
in your options for dealing with improper behaviors.
To establish these standards and violation consequences, sit down and think
through the over-the-line behaviors that won't be permitted in your company. It's
essential that you know ahead of time what employee actions require an
immediate dismissal. Similarly, you want to know what performance issues may
qualify for a more progressive disciplinary approach, and then define the steps
involved in that approach.
By nature, people are complex beings who will confound you one minute and
astound you the next. And except for violations that warrant immediate firings, it's
usually a wise, compassionate and financially prudent course to help people
strengthen their character by overcoming their weaknesses. Also, this approach
provides you with a way to retain experienced employees and recover your
investment in their training.

I've found that managers are often disappointed in an employee's performance
even though the manager never clearly communicated his or her expectations to
that employee. If you don't take steps to set clear expectations, the consequences
you administer for failure to meet those expectations can seem unfair. This is
extremely important because an employee who feels they've been treated unfairly
can create a great deal of liability. In many cases, the key issue is not whether they
were actually treated unfairly but whether the employee feels or perceives that
they were treated unfairly.
And it doesn't stop with the affected employee. If you or your managers haven't
clearly communicated your expectations to one employee, chances are you haven't
done so with other employees as well and they can be quick to empathize with any
affected workers. It's natural for employees to wonder, "What if that happened to
me?" To avoid the negative effect such a chain-reaction can have on your
workplace, be clear about your expectations with all employees at all times. Most
employees will appreciate and respect your forthright clarity.
Building a great company has a lot to do with how people work together. Policies
and practices can improve the way your employees interact, while minimizing the
personnel obstacles that often arise in today's workplaces.

Tools
Tools address the question of how you support the people in your company who
manage other employees. When faced with a specific personnel issue, what
resources are available to them? Do they have an employee handbook or a policy
guide? What about regular training in company policies and practices, coupled
with simple, easy-to-use forms to guide them when dealing with particular issues?
Are you giving them a clear directive on working with your human resources
personnel or legal representatives? Are your resources available online?
Tools like these are vital not just to help avoid litigation, but also to minimize the
time it takes for you to deal with productivity-draining people issues instead of
core business matters. Because many small-business owners lack these resources
and aren't sure where to turn for help, they may use attorneys and HR consultants
on an a la carte basis to address such issues. Other businesses call on professional
employer organizations like Administaff to provide the support of a full-service
human resources department.
Whatever your approach, the key to success is to devote the time and resources it
takes to develop a policies and practices strategy for your business before the need
arises. It's an investment that can pay large dividends in increased productivity and
minimized litigation. And it's an essential component of your comprehensive
people strategy.

How to Create Effective and Legal HR Policies
A policy is a guide to action and decision-making under a given set of
circumstances that ensures consistency and compliance with the law within the
framework of an employer‟s objectives and management philosophy. A
comprehensive written policy manual is essential in today‟s complex, competitive,
and regulation-ridden corporate environment.
There must be a single, up-to-date, authoritative source of guidance and
information to which managers and supervisors can turn not only in situations
where the "right" course of action is unclear but also in cases where they are
tempted to act on memory or instinct. With a policy manual to point the way, or to
back up what they feel is a justifiable action or decision, company managers and
supervisors will be able to act swiftly, decisively, fairly, legally, and consistently.
Written policies should do more than help supervisors and managers make
difficult decisions. They should also provide the framework and background for
such decisions, so that supervisors can explain to their subordinates (and to
themselves) why a certain action or decision is the right one under the
circumstances. Some policy manuals give a brief introduction to each policy,
stating the reason a policy is needed in this area, and what the employer hopes to
achieve through implementation of the policy.

Employee handbooks may create legal liability issues when a policy either runs
counter to a law mandate or when breach of contract or wrongful discharge claims
arise from any failure to follow handbook policies and procedures. While
employee handbook policies must be written within the context of the various
federal and state laws governing employment, they should be written in a way that
employees and supervisors (and a potential jury) understand.
In addition, employers must take care to preserve the at-will relationship in states
where that is the standard. For example, many state courts have held that
disciplinary policies included in employee handbooks can create implied contracts
requiring employers to follow all the disciplinary steps before terminating an
employee. This is problematic, especially when an employer is faced with an
employee who has engaged in serious misconduct. Therefore, employers should
make sure their policies include appropriate language reserving the right to decide
what disciplinary action is appropriate in any given situation.
If an employer has an employee handbook for policies, the handbook should
include:
An at-will statement and contract disclaimer
A statement regarding the employer‟s right to revise the policies
An acknowledgment form for the employee to sign

The following policies are what many HR professionals and legal counsel consider
“must haves:”
Equal Employment Opportunity (EEO) statement (covering Title VII of the
Civil Rights Act, the Americans with Disabilities Act, Age Discrimination
in Employment Act, and relevant state discrimination law)
Policy against harassment and the complaint procedure
Family and Medical Leave Act Policy
The following are other policies that HR professionals should consider for their
organization:
Employee classification (exempt/nonexempt) policy
Compensation and payroll practices policy
Paid time off policy
Leaves of absence (non-FMLA) policy
Other benefits policy
Performance evaluation policy
Work rules and discipline policy
Access to personnel files policy
Reference policy
Candidate referral program
Grooming and dress code

Grievance or open-door policy
Other policies unique to the organization (like safety, encouraging
volunteerism, etc.)

Chapter-3
Background of Tata steel limited

TATA STEEL LIMITED
Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is
an Indian multinational steel-making company headquartered in Mumbai,
Maharashtra, India, and a subsidiary of the Tata Group. It was the 12th largest
steel producing company in the world in 2012, with an annual crude steel capacity
of 23.8 million tonnes, and the second largest private-sector steel company in
India (measured by domestic production) with an annual capacity of 9.7 million
tonnes after SAIL and JSW Steel
Tata Steel has manufacturing operations in 26 countries, including Australia,
China, India, the Netherlands, Singapore, Thailand and the United Kingdom, and
employs around 80,500 people. Its largest plant is located in Jamshedpur,
Jharkhand. In 2007 Tata Steel acquired the UK-based steel maker Corus which
was the largest international acquisition by an Indian company till that date.
It was ranked 471st in the 2013 Fortune Global 500 ranking of the world's biggest
corporations. It was the seventh most valuable Indian brand of 2013 as per Brand
Finance.
On February 12, 2012 Tata Steel completed 100 years of steel making in India.

History
TISCo is a worldwide steel industry founded in 1907 by Dorabji Tata. The
company is situated in Mumbai. TISCo stands for Tata Iron and Steel Company
Limited.Tata Iron and Steel Company was established by Dorabji Tata on August
25, 1907, as part of his fatherJamsetji's Tata Group. By 1939 it operated the
largest steel plant in the British Empire. The company launched a major
modernization and expansion program in 1951. Later in 1958, the program was
upgraded to 2 Million metric tonnes per annum (MTPA) project.[9] By 1970, the
company employed around 40,000 people at Jamshedpur, with a further 20,000 in
the neighboring coal mines. In 1971 and 1979, there were unsuccessful attempts
to nationalise the company. In 1990, it started expansion plan and established its
subsidiary Tata Inc. in New York. The company changed its name from TISCO to
Tata Steel in 2005.
Acquisitions
NatSteel in 2004: In August 2004, Tata Steel agreed to acquire the steel making
operations of the Singapore based NatSteel for S$486.4 million in
cash.[13] NatSteel had ended 2003 with turnover of S$1.4 billion and a profit
before tax of S$47 million. The steel businesses of NatSteel would be run by the
company through a wholly owned subsidiary called Natsteel Asia Pte Ltd. The

acquisition was completed in February 2005. At the time of acquisition, NatSteel
had a capacity of about 2 million tonnes per annum of finished steel.[15][16]
Millennium Steel in 2005: Tata Steel acquired a majority stake in the Thailand-
based steelmaker Millennium Steel for a total cost of $130 million. It paid US$ 73
million to Siam Cement for a 40% stake and offered to pay 1.13 baht per share for
another 25% of the shares of other shareholders. For the year 2004, Millennium
Steel had revenues of US$406 million and a profit after tax of US$29 million. At
the time of acquisition, Millennium Steel was the largest steel company in
Thailand with a capacity of 1.7 million metric tonnes per annum, producing long
products for construction and engineering steel for auto industries.[16] Millennium
Steel has now been renamed to Tata Steel Thailand and is headquartered
in Bangkok. On March 31, 2013, it held approx. 68% shares in the acquired
company.
Corus in 2007: On 20 October 2006, Tata Steel signed a deal with Anglo-Dutch
company, Corus to buy 100% stake at £4.3bn ($8.1 billion) at 455 pence per
share. On 19 November 2006, the Brazilian steel company Companhia
Siderúrgica Nacional (CSN) launched a counter offer for Corus at 475 pence per
share, valuing it at £4.5 billion. On 11 December 2006, Tata preemptively upped
its offer to 500 pence per share, which was within hours trumped by CSN's offer
of 515 pence per share, valuing the deal at £4.9 billion. The Corus board promptly
recommended both the revised offers to its shareholders. On 31 January 2007,

Tata Steel won their bid for Corus after offering 608 pence per share, valuing
Corus at £6.7 billion ($12 billion).
In 2005, Corus employed around 47,300 people worldwide, including 24,000 in
the UK. At the time of acquisition, Corus was four times larger than Tata Steel,
in terms of annual steel production.Corus was the world's 9th largest producer of
Steel, whereas Tata Steel was at 56th position. The acquisition made Tata Steel
world's 5th largest producer of Steel.
2 Rolling mill companies in Vietnam in 2007: Tata Steel through its wholly
owned Singapore subsidiary, NatSteel Asia Pte Ltd, acquired controlling stake in
two rolling mill companies located in Vietnam: Structure Steel Engineering Pte
Ltd (100% stake) and Vinausteel Ltd (70% stake). The enterprise value for the
acquisition was $41 million. With this acquisition, Tata Steel got hold of two
rolling mills, a 250k tonnes per year bar/wire rod mill operated by SSE Steel Ltd
and a 180k tonnes per year reinforcing bar mill operated by Vinausteel Ltd.[21][22]
Operations

The Tata Centre in Kolkata, India
Tata Steel is headquartered in Mumbai, Maharashtra, India and has its marketing
headquarters at the Tata Centre in Kolkata, West Bengal. It has a presence in
around 50 countries with manufacturing operations in 26 countries including:
India, Malaysia, Vietnam, Thailand, UAE, Ivory Coast, Mozambique, South
Africa, Australia, United Kingdom, The Netherlands, France and Canada.[23]
Tata Steel primarily serves customers in the automotive, construction, consumer
goods, engineering, packaging, lifting and excavating, energy and power,
aerospace, shipbuilding, rail and defence and security sectors.[24]
Expansion plans
Tata Steel has set a target of achieving an annual production capacity of 100
million tons by 2015; it is planning for capacity expansion to be balanced roughly
50:50 between green field developments and acquisitions.[25][26] Overseas
acquisitions have already added an additional 21.4 million tonnes of capacity,
including Corus (18.2 million tonnes), NatSteel (2 million tonnes) and
Millennium Steel (1.2 million tonnes). Tata plans to add another 29 million
tonnes of capacity through acquisitions.
Major greenfield steel plant expansion projects planned by Tata Steel include:
a 6 million tonne per annum capacity plant in Kalinganagar, Odisha, India;

an expansion of the capacity of its plant in Jharkhand, India from 6.8 to 10
million tonnes per annum;
a 5 million tonne per annum capacity plant in Chhattisgarh, India (Tata Steel
signed a memorandum of understanding with the Chhattisgarh government in
2005; the plant is facing strong protest from tribal people);
a 3 million tonne per annum capacity plant in Iran;
a 2.4 million tonne per annum capacity plant in Bangladesh
a 10.5 million tonne per annum capacity plant in Vietnam (feasibility studies
are underway); and
a 6 million tonne per annum capacity plant in Haveri, Karnataka.
Awards and recognitions
In 2013, Tata Steel was ranked India's 7th most admired company by Fortune
magazine. It was India's most admired company in 2012.[42][43]
In 2013, Tata Steel received the Most Admired Knowledge
Enterprises (MAKE) award for 2012 at Global and Asian level. The company
has previously been recognised by the Indian MAKE awards on six accounts
since its inception in 2005.
It won the 'Golden Peacock' award in 2009 for its corporate social
responsibility (CSR) initiatives.

In 2008, Tata Steel was awarded Deming Application Prize for excellence in
Total Quality Management.
The company is part of the composite Dow Jones Sustainability World Index
(DJSI World) since 2008. DJSI World comprises leaders in sustainability (the
top 10% in terms of performance), selected on the basis of long-term
economic, environmental and social criteria, from the largest 2500 companies
in the world.

Chapter-4
HR POLICIES PRACTICES IN TATA STEEL

HUMAN RESOURCE POLICIES OF TATA STEEL
MANPOWER PLANNING
Manpower planning enables HR department to project its short to long term needs
on the basis of its departmental plans so that itcan adjust its manpower
requirements to meet changing priorities. The more changing the environment the
department is in, the more the department needs manpower planning to show:
The number of recruits required in a specified timeframe and the
availability of talent
Early indications of potential recruitment or retention
difficulties
Surpluses or deficiencies in certain ranks or grades  availability of
suitable qualified and experienced successors
PERFORMANCE APPRAISAL
Performance appraisal assesses an individual's performance against previously
agreed work objectives. Performance appraisal is normally carried out once a year.
They assess key result areas of their employees, workers and supervisors. Since it
is a joint responsibility of the individual and the supervisor; every individual in
TISCO are co prime to each other.

It also enables management to compare performance and potential between
employees and subordinates of the same rank.
Rating of employees is done by their performances. It is given as per ranks very
good, average, and average to medium and below average. On the basis of these
rankings highest reward of the year is given to best suitable worker. The better
performing employee gets the majority of available merit pay increases, bonuses,
and promotions.
TRAINING AND DEVELOPMENT
The Technical Education Advisory Committee guides employee
development and training in line with strategic goals of the company and
long-term objectives. The in-house training centres impart majority of
the training programmes. (Technical Institute & Management
Development Centre).
Employees are also deputed to other organizations and training centres in
the country such as ITI and abroad for specialized training.
Officers are trained into business managers through special general
management programmes such as at CEDEP, France.
They are trained to know the changes in environment, market, and in steel
prices.
They also get training of problem solving techniques, conflict
management, etc.

COMPENSATION PLANNING
 Itdepends on financial capabilities.
 Yearly increments are given.
 Compensation for inflation is common for all employees.(flat rates)
 It is decided by union and management where various demands are negotiated.
 It is paid as per other industries.  Individual performance bonus is also given.
DEVELOPMENT OF EMPLOYEES
At Tata Steel, there is a continuous effort of staying in touch with
employees to ensure that there is the right culture to engage them in
consistent performance improvement. There are well-established and
effective arrangements at each business location for transparent
communication and consultation with Works Councils and Trade Union
representatives. Further, the Company has always registered steady quality
improvement and productivity enhancement through dedicated efforts of
the Company Performance Improvement teams, focused on technical best
practice transfer and the value of knowledge networks.
Towards the well-being of employees Tata Steel has put into practice many
initiatives, events and programmes that have helped to create not only an
enduring loyalty amongst employees but also enabled them to have a more
fulfilled life.

Special benefits provided to employees
Medical facilities:
Free medical facilities for employees and their family, which continues
even after retirement.
Housing facilities:
Subsidised electricity, water and housing facilities to all employees.
Higher studies:
Monetary incentives to employees acquiring higher qualifications in a related
field along with study leave, scholarships etc. when necessary.
HolidayHomes:
Tata Steel has five holiday homes for benefit of employees during vacation.
Tata Steel Officer's Beach Club:
All officers ofTata Steel are eligible to be members of the Beach Club that
offers holidays in elite hospitality chains.
Family Benefit Scheme:
In the tragic case of a fatality in theWorks, a monthly pension equal to the
amount of the last drawn salary of the deceased is given to the legal heir until
the time the deceased would have attained the age of 60.
DEVELOPING PEOPLE
Valuing its people as a great asset,Tata Steel is committed to their development,
both in order to benefit the individual and to benefit the Company through

increased knowledge and skills. In order to leverage maximum potential of human
resource to achieve business objectives the Company recognises that enrichment
of people will help retain a motivated workforce in a competitive environment.
Skills Development - Non-officers
Skills training is a process that begins at the time of an employee joining the
company and continues throughout his or her career. Employees work in clusters
of multi-skilled workers and move across and within clusters on improving their
skills levels. The Technical Training Institute imparts vocational and basic skills
training; the departments impart on-the- job training.
In order to promote self-directed learning, the Company has introduced e-learning
whereby employees can access electronic courses from their departmental e-
Learning centres.
Skills Development - Officers
Tata Steel Management Development Centre conducts a number of managerial
and functional competency based programmes for officers and supervisors.The
objectives of these programmes are:
To build individual capability by enhancing managerial and functional
competencies which are critical to operations, service and support functions.
To build a leadership pipeline in the organisation to prepare the people to meet
the challenges of growth, globalisationand change.

Equal opportunity practises
Tata Steel is an equal opportunity employer and does not discriminate on the basis
of race, caste, religion, colour, ancestry, marital status, sex, age or nationality. The
Company
Affirmative Action Policy promotes equal access to its employment and
opportunities and all decisions are merit based. Respect for equal opportunities as
set out in the Tata Code of Conduct is followed. The HR Policy and Affirmative
Action Policy are monitored by the Ethics Counsellor and supported by an
effective grievance redressal mechanism.
Tata Steel encourages female employees to advance their career with initiatives
dedicated towards personal development and professional advancement. The
Women Empowerment Cell examines and addresses the issues and concerns of
female employees and ensures that they do not miss out on any growth
opportunity
Free d om of association and collective bargaining
Tata Steel respects the employees
Right to exercise freedom of association and collective bargaining and provides
appropriate support for this. There is an established system of joint working and
collective bargaining, which ensures that every employee is able to exercise this

right without any fear. Pioneering the concept in India, a system of Joint
Consultation has been in place inTata Steel for more than 50 years.
A Fortune 500 company, the Tata Steel Group is the world's second most
geographically diversified steel producer, employing around 80,000 people across
five continents in nearly 50 countries. The Group's vision is to be the world's steel
industry benchmark in 'Value Creation' and 'Corporate Citizenship' through the
excellence of its people, its innovative approach and overall conduct.
Underpinning the vision is a performance culture committed to targets, safety and
social responsibility, continuous improvement, openness and transparency. To
know more, The Hindu Opportunities spoke to Mr. P Senthil Kumar, Chief
Human Resource Officer, Tata Steel.
What are your unique HR practices regarding recruitment?
Tata Steel has always endeavoured to offer some of the best HR practices and the
recruitment process is no exception. The recruitment process is unique as it entails
identifying talent from the pool through various practices. Some of them can be
enlisted as follows:
Opportunities for employee wards - domain wise written test, assessment centre,
personal interview.

We also select talent through Lateral Recruitment process which involves
interview by HR, subject matter expert and personal interviews.
Group Migration Policy for our employees, which enables the group employees to
explore opportunities to work at Tata Steel from other group companies.
We provide career opportunities for down the line people and internal job postings
ensuring that the best talent pool deserves the right opportunity in bringing the
best practices in the company.
Campus Selection - B schools, T Schools - written test, psychometric test,
personal interview.
Shadow recruitment for niche senior talent
What are your initiatives regarding employee relations, employee
development and growth.
Employee relations
Tata Steel is of the opinion that people are its greatest asset and has therefore
adopted the best practices for its employees.
Trade Unions: The Company believes that a healthy union is an asset for it. Trade
unions are therefore present and encouraged at all locations. All the non-officers

(~86% of the total workforce) are represented by 26 independent trade unions
across all locations.
Joint Consultations: Tata Steel is a pioneer of joint consultation in India. A unique
system of joint consultation has been in place in Tata Steel for more than 55 years
in which both management and employee representatives consult each other at all
levels on matters relating to the progress and prosperity of the organisation,
including production, productivity, quality, safety, welfare, training, etc. A
minimum of 56 Joint Departmental Council meetings are held in a year.
Grievance Handling Mechanism: Grievances and complaints of employees at Tata
Steel are handled through well-defined and user friendly mechanisms in order to
redress them at the initial stages thereby ensuring employee satisfaction. The
informal grievance resolution mechanism is an online process and goes by the
name of “Samadhan”. The formal grievance resolution is divided into three stages,
with each stage being reached when a solution is not arrived in the previous stage.
These are further referred to the Central Works Committee.
HR Service Desk: In line with Tata Steel‟s philosophy of “Values Stronger than
Steel”, creating “trust” among employees is an inseparable part of the long term
vision of the company.

Benefits and Facilities: Tata Steel has many „firsts‟ in the area of employee
welfare. Several welfare initiatives of Tata Steel were institutionalised even before
it was formalised worldwide as a convention of the ILO. The Steel Works is the
only steel manufacturing unit and the largest of its kind in the world, to adopt and
enforce SA 8000 as a tool to improve workplace standards.
Employee Health: Apart from continuous preventive health surveillance of
employees (which includes both statutory & non-statutory health check-ups), a
unique programme on Wellness@Workplace has been launched across the
company.
Higher Studies: Monetary incentives to employees acquiring higher technical
qualifications in a related field.
Employee development and growth
The company believes in providing continuous skill and competence upgrading of
all employees by providing access to necessary learning opportunities, on an equal
and non-discriminatory basis. As a management approach Tata Steel has identified
the following strategies to meet this challenge: (i) maximise utilisation of available
employees through right skilling and (ii) recruitment of technically qualified
persons.

Tata Steel encourages a holistic approach to learning and development through its
well established in-house training facilities and approaches. The Tata Steel
Management Development Centre (TMDC) endeavours to provide primarily
managerial training and also functional training to all officers of Tata Steel, the
Shavak Nanavati Technical Institute (SNTI) provides the essential technical and
functional training to all officers and non-officers of the Company.
Moreover, Tata Steel ensures the development and growth of its employees in the
best possible ways through the following steps:
70:20:10 Learning and Development Programme
The 70:20:10 concept of Learning and Development of officers has been launched
with an objective of creating a culture where every manager takes ownership for
the development of his/her subordinates. This also helps in instituting systems so
that employees are trained, coached and mentored in a systematic manner such
that they acquire appropriate knowledge, skill and attitude required by the
organisation and are prepared in advance to take up higher responsibilities.
70% of Learning and Development takes place from real life and on-the job
experiences, tasks and problem solving.
20% of Learning and Development takes place through coaching, mentoring,
discussions, guidance by superiors/experts.

10% of the learning comes from formal Class Room Training.
Job Rotation and Career Planning
In order to eliminate drudgery and maximise the learning opportunities for our
employees, robust processes have been put in place pertaining to job rotation and
career planning. These processes also help raise and retain the technical
capabilities within the organisation by ensuring development of officers through
planned rotation to keep meaningful longevity in each position so that the
executive develops deeper functional capability.
Employee Contact Programme
In addition to the various Employee Satisfaction and Engagement surveys, a
formal method for collecting and resolving officers‟ inputs, named “Employee
Contact Programme”, has been launched in 2009. The key objectives of this
programme are to:
Capture employee concerns on an on-going basis
Analyse concerns to identify need for policy changes
Create a repository of the above data
Create one to one connect with officers

Ensuring Development and Growth of Employees (EDGE)
The Performance Management System called „Ensuring Development & Growth
of Employees‟ (EDGE) is one of the most important people process for executives
in the organisation which cuts across all levels and sections.
Objectives of EDGE
Align the activities and behaviours of individuals with company's corporate
objectives and values
Develop the capabilities of employees to enhance performance of
individuals or organisation Culture enabling process - empowerment,
creditability, values
Supporting a culture of excellent superior-subordinate relationship
What are your initiatives regarding gender and diversity workforce?
It‟s our belief that businesses should provide and maintain equal opportunities
irrespective of caste, creed, gender, race, religion, disability or sexual orientation.
The core principles enshrined in the policy, and now applied across the Tata Steel
Group worldwide, are:
Equality of opportunity
Continuing personal development

Fairness and
Mutual trust and teamwork
These principles are underpinned by the five Tata Group core values: integrity,
understanding, excellence, unity and responsibility.
There are a number of initiatives for women which work under the umbrella of
SWATI, the women empowerment cell of Tata Steel. We have self-development
programmes such as Pehchan, Empowering Women Managers to Succeed and
other developmental programmes.
How challenging is it to manage a diverse workforce across countries and
different cultures?
There is a need to understand culture and ethnicities in the areas we operate. The
cultural and value underpinnings are different hence expectations are quite varied
from across cultures. We have policies and initiatives undertaken to address the
needs which are:
Formalising a policy for movement across geographies.
Formalising a policy for settling down of the family at new location.
Formalising a policy for fitment on return.

How are your HR policies tuned to deal with the challenges that are entailed
in managing a global workforce?
To deal with the challenges of managing a global workforce, our HR policies are
customised to local requirements as well as global requirements as per the needs
of our employees.
To manage global requirements, we have compensation policy which covers
security, political and economic risks of the location and based on which, mobility
premium is inbuilt into the compensation structure.
What HR policies have you planned for your employees in the future?
To support the expansion of our existing facilities, we have planned the following
initiatives:
Recruitment and selection: The process involves Reporting officers/ Heads
of the process in counselling and training for their colleagues
Identifying talent and working with virtual offices
Video simulations to assess the skills required for the job
Employer Branding: Employer to “brand” the organisation as a preferred
employer
People centric - considering employees as customers

For our newly joined officers, we are working on a policy to ease their settling
down process in the organisation. To entertain our customers at Marketing and
Sales locations, we are working on policy on Club Membership.
„People are our greatest asset‟
With the Tata Steel group rapidly evolving and expanding its reach strategically
and geographically, there is need to prepare its leaders, both current and future, to
overcome adversities. Consequently, leadership development across all levels is
the focus of its employee policies, along with people development and
growth. Suresh Tripathy, the head of HR at Tata Steel, in conversation
with Nithin Rao, notes that the other key objective is upholding the Tata group‟s
values through transparency and fairness in HR practices and policies.
What are the focus points of the HR practice and the policies that are
pursued at Tata Steel?
At Tata Steel the prime focus in terms of HR practices is on people development
and growth, and employee relations, which is imbibed in the culture of caring for

our people. Tata Steel has always held the view that people are its greatest asset.
It has adopted the best standards for employee well-being and quality of life,
strongly promoting workforce rights. The other focal point is upholding the Tata
values through transparency and fairness in HR practices and policies.
One of the primary challenges that HR professionals consistently voice
relates to retaining and rewarding your best employees. How is this managed
at Tata Steel?
Our employee engagement practices, facilities and benefits are aligned towards
ensuring retention of employees. Our engagement survey results are constantly
acted upon to maintain competitive compensation, productive work environment,
employee involvement in improvement initiatives, opportunities for learning and
growth, performance-based rewards and recognition, high standards of amenities
and facilities (housing, medical, education, recreation, social support), and two-
way communication, to name a few.
Leadership development also finds frequent mention as an HR challenge,
especially of late. What has the experience of Tata Steel been on this issue?
The change in the business scenario across the world has been centrestage at the
Tata Steel group. While meeting the current business challenge has been the
focus, there is a clear mandate to be continually resolved to not only weather the

current economic storm, but to prepare and equip the group for a healthy future as
a leading global steel organisation.
Further, the business environment is swiftly changing, bringing in its own set of
opportunities and challenges; at the same time, the group is rapidly evolving and
expanding its reach strategically, geographically and culturally. The new
geographies and the shifting environments of the businesses demand that we
prepare our leaders (current and future) to face and overcome such adversities.
Hence, for a sustainable future, leadership development at all levels is the focus
across the Tata Steel organisation.
Business growth has posed a challenge, of a kind never experienced by the
company in the past, resulting in a 45-percent increase in demand for leadership
positions over FY10. Further, 17 percent of our senior leaders are retiring in the
next three years. This has compounded the challenge of meeting the increased
demand in an already constrained supply situation. The executive committee,
headed by the managing director, owns the development and succession plans for
the top positions and reviews availability of talent across all functions during
talent reviews and succession planning meetings.
It has been said that the ethical problems that employees confront are among
the most difficult to resolve for HR managers. Do you agree, and how does
your organisation deal with such issues?

Ethical business practices have been at the core of the Tata Steel business since
the time of its inception, in line with the Founder‟s philosophy. In order to ensure
that all our employees exhibit behaviour that is consistent with the group‟s ethical
values, Tata Steel adopted the Tata Code of Conduct (formally articulated in
1998) which is applicable to all employees, vendors and other stakeholders. Our
HR managers have been facilitated by clear policies that provide them with
guidelines in resolving ethical problems. A framework is also provided for taking
action against those found violating the code. Senior leadership support provides
further strength to fair and firm redressal of problems, depending on the gravity of
the issue.
Tata Steel encourages whistleblowing and the reporting of instances of unethical
behaviour to the management, while ensuring full protection to the whistleblower
in its „whistleblower protection and reward policy‟.
Companies talk about encouraging teamwork and creating a culture of
collaboration. How important is the role of HR in making this happen?
Culturally, at Tata Steel, there has been specific emphasis on teamwork. Our
work systems are designed to deliver day-to-day output by people working as
teams or clusters; this has matured to the state of being self-managed.
Our incentive schemes and rewards encourage working and delivering as a team.
The total quality management way of working encourages continuous

improvement in systems and processes through daily management, small group
activities and suggestion management.
Tata Steel has created a culture of collaboration through its proactive approach to
stakeholder engagement, joint consultative processes and mechanisms for conflict
resolution. This has been rewarded with over eight decades of industrial harmony
and the licence to operate in the very communities in which the company began
operations more than a century ago. Tata Steel takes pride that there are several
instances where it has been the employer of choice for a family for three and even
four generations.
Tata Steel respects its employees‟ right to exercise freedom of association and
collective bargaining. It has ensured that every employee is able to exercise this
right without fear. That‟s why we have enjoyed 85 years of industrial harmony to
date, with no strikes since 1928.
Is the recruitment component of the HR department’s responsibility more
problematic now than before, especially so in India? How do you tap talent
in the circumstances?
Recruitment now would not really fall under the label of „problematic‟, though it
is much more challenging than before. With the mushrooming of the economy,
each sector actually has to tap the same sources of talent, be they freshers (from

campuses) or laterals (from other industries). The number of „quality‟ campuses
has more or less remained the same, though some of them have increased their
number of seats. In case of laterals, companies may try to influence potential
employees with higher compensation, which may or may not be sustainable.
Here, brand image and employee value proposition, to name two factors, give an
edge to reputed companies.
How exactly does employee engagement manifest itself in your company?
Also, in this context, how important is employee feedback and the company’s
response to feedback?
Employee engagement is a state of emotional and intellectual commitment. An
initiative on employee engagement has been undertaken for white-collared
employees at Tata Steel in partnership with Aon Hewitt to measure the current
levels of engagement of officers in India.

Chapter-5
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY:
Universe:
Finite
Research Design:
Descriptive Research Design
Types of Data:
Primary Data
Secondary Data
Data Collection Methods:
1. Primary Data
Questionnaire
2. Secondary Data
Magazines
Reports
Sampling Method:
Random Sampling
Sampling Area:
Aligarh
Sampling Size:
100
Sample Unit:
Tata Steel

Objectives of Study
To determine the various constitute of the policies in banking organization.
To study the implication of the human resources concerning policies over
banks.
To understand the perception of ehttp://www.globalplacementshyd.
com/indexmployees towards HR policy of banks.
To study the reasons that is contributing in strengthening or weakening of
the banking policy structure.
To study the advances public understanding of the role of the Human
resources management and its vitality for efficient running of the Banks.
To traces the overall status of HRM practices of the public sector industrial
enterprises.

Chapter-6
DATA ANALYSIS AND INTERPRETATION

Data Analysis and Interpretation
Q.1.Are you satisfied the present HR Policy?
a. Highly Satisfactory [ ]
b. Satisfactory [ ]
c. Average [ ]
d. Dissatisfactory [ ]
e. Highly Dissatisfactory [ ]
30
30 25
25 20
20 15
15 Highly satisfactory
10
10 Satisfactory
5 Average
0 Dissatisfactory
Highly Dissatisfactory
Interpretation:
In the above graph we show that 25% respondents highly satisfied 30%
respondents satisfied, 20% average, 10% dissatisfied and remaining 15% highly
dissatisfied with this HR Policy.

Q2. Are you satisfied the medical benefits provided by the Organization for the
employees & their families?
b. Satisfactory [ ]
c. Average [ ]
30
30
25
25
20
20
15
10
Satisfactory
10
Average
5 Dissatisfactory
0 Highly Dissatisfactory
Interpretation:
dissatisfied with this medical facility for employees and their families.

Q3. How do you rate the Conveyance Allowance offered by the Organization?
b. Satisfactory [ ]
c. Average [ ]
Highly satisfactory Satisfactory Average

Dissatisfactory Highly Dissatisfactory
10%
25%
30%
20%
15%
Interpretation:
dissatisfied with this conveniences allowance.

Q4. Rate the Overtime allowance offered by the Organization?
b. Satisfactory [ ]
c. Average [ ]
Highly satisfactory Satisfactory Average Dissatisfactory Highly Dissatisfactory
10%
20%
30%
15%
25%
Interpretation:
dissatisfied with this overtime allowance.

Q5. How do you rate leave policy of the Organization?
b. Satisfactory [ ]
c. Average [ ]
30
30
25
25
20
20
15
10
Satisfactory
10
Average
5
Dissatisfactory
0
Interpretation:
dissatisfied with the leave Policy by the company provide their workers.

Q6. Does working in the organization give you a feeling of security?
a. Yes [ ]
b. No [ ]
Yes No
30%
70%
Interpretation:
In the above graph we show that 30% respondents feeling of security and
remaining 70% respondents not feeling with this security.

Q7. Does the organization provide housing facility for employees?
a. Yes [ ]
b. No [ ]
Yes No
40%
60%
Interpretation:
In the above graph we show that 40% respondents satisfied and remaining 60%
respondents not satisfied with the house facility provide by company for their
workers or employees.

Q8. Which of the following factors which motivates you most ?
a. Salary Increase [ ]
b. Promotion [ ]
c. Leave [ ]
d. Motivational talks [ ]
c. Recognition [ ]
30
30
25
25
20
20
15 Salary increase
15
10 Promotion
10 Leave
5 Motivation
0 Recognition
Interpretation:
In the above graph we show that 30% respondents motivated by salary increase,
20% respondents motivated by promotion, 10% respondents motivated by leave,
15% respondents motivated by motivational talks and remaining 25% respondents
motivated by recognition.

Q9. How often is training and development provided to the employees?
a. Once in a month [ ]
b. Once in a year [ ]
c. Others [ ]
45
45 40
40
35
30
25 Once in a month
20 15 Once in a year
15 Others
10
5
0
Once in a Once in a year Others
month
Interpretation:
In the above graph we show that 40% respondents have training once in a month
45% respondents have training once in a year and remaining 15% respondent
have others period.

Q10. On what basis is the compensation for employees calculated?
a. Overall performance [ ]
b. Over time [ ]
c. Code of conduct [ ]
Overall performance Overtime Code of conduct
30%
50%
20%
Interpretation:
In the above graph we show that 50% respondents have basis of compensation is
overall performance, 20% respondent have basis of expectation is overtime and
remaining 30% respondents have basis of compensation is code of conduct.

Q11. Additional compensation package including holiday, sick time and health
insurance meet employees expectation?
b. Satisfactory [ ]
c. Average [ ]
30
30
25
25
20
20
15
10
Satisfactory
10
Average
5
Dissatisfactory
0
Interpretation:
dissatisfied with the facilities that are provided by the Bank for their employees.

Q12. In HR department has been successful in reduce adverse condition and
change?
a. To certain extent [ ]
b. To some extent [ ]
c. Not at all [ ]
To certain extent To some extent Not at all
30%
40%
30%
Interpretation:
In the above graph we show that 40% respondents to certain extent, 30%
respondents to some extent and remaining 30% respondents not at all.

Findings
1. It has been found that mostly employees are satisfied with the medical
benefit of the organization.
2. It is also found that many employees are satisfied with the HR policy
of the organization.
3. Many employees are found to have average response towards
conveyance allowance offered by the organization.
4. Maximum employees are found dissatisfied with the overtime
allowance offered by the organization.
5. Most of the employees are found dissatisfied with the leave policy.
6. Most of the employees are not feeling service in the organization.
7. Most of the organization does not provide housing facility to their
employees.
8. In any of the organization increment of salary motivate the employee
mostly.
9. Mostly organization organized yearly training and development
programme to their employees.
10.Most of the employees are dissatisfied with additional compensation
provided by the organisation.
11.Mostly organization compensation their employees on the basis of
their overall performance.
12.Most of the HR Dept. of the origination is found successful in
reducing adverse condition to certain extent.

Chapter-7
SUGGESTIONS AND CONCLUSION

SUGGESTIONS
1. Organisation try to provide good overtime allowance to motivate the
employees towards their work.
2. Organisation should provide housing facility according to the employees
level.
3. Organisation time to time make changes in the HR Policy for the welfare of
the employees.
4. HR Department should make policy to cope-up adverse condition coming
from the external environment.
5. During compensation programme code of conduct is also be considered by
the organisation.
6. Organisation should provide separate vehicle for office work.

RECOMMENDATIONS
It is worthwhile to consider broad-basing the courses conducted in these
institutions among other higher –level educational institutions, so that
specializations in the area of banking and financial services becomes an
option in higher education curricular.
There is a need to adopt global best practices in financial sector regulation
and supervision and adapt them to the domestic environment. This largely
depends on the functioning and policies of public institutions, such as the
RBI as it is increasingly subject to public discussion and debate.
This calls for greater transparency more effective communication, and a
high degree of professionalism in the bank‟s staff, are the need of the hour.
Continuous up gradations of human resources management strategies with
a view to enhancing the level of knowledge, sharpening skills are and also
to important the necessary and work culture must be installed.
There is a pressing need to develop work practices which encourage
efficiency in this banking sector.
Incentive structures need to be conceived, supported by appropriate training
and motivations, which aligns the employee‟s goals and orientations with
the core competencies and strategic advantages of the institution

This service sector has to explore the feasibility of entering into
collaborative arrangements with universities and other institutions in India
and abroad to identify and provide specialized training in the financial
services industry with an ongoing flow of emerging training packages.
Information technology is an area where human resources development is
critical fortunately, Indian professionals are world leaders in this area and
spirit of co –operation and partnership between them in banking industries
will result in a strong and modern financial system comparable to the best
in the world.
This committee recommended a system of recruitment from open market,
including lateral induction of experts.

Limitations
1. Due to very tight schedule of working, the employee‟s interaction was
difficult. Most of the employees were often too busy to spare time for
filling up the questionnaire.
2. Some employees were hesitant to fill up the questionnaire especially the
open ended questions.
3. Time period for the survey was very limited
4. Sample size may not be a correct representation of population
5. Lack of interaction
6. Fear of Identity disclose

CONCLUSION
At Tata Steel, there is a continuous effort of staying in touch with employees to
ensure that there is the right culture to engage them in consistent performance
improvement. There are well-established and effective arrangements at each
business location for transparent communication and consultation with Works
Councils and Trade Union representatives. Further, the Company has always
registered steady quality improvement and productivity enhancement through
dedicated efforts of the Company‟s Performance Improvement teams, focused on
technical best practice transfer and the value of knowledge networks.
Towards the well-being of employees Tata Steel has put into practice many
initiatives, events and programmes that have helped to create not only an enduring
loyalty amongst employees but also enabled them to have a more fulfilled life.
Tata Steel's Performance Management System has the following aims:
Align the activities and behaviour of the workforce with Company values
and objectives
Assess the performance of individuals comprehensively and fairly
Develop the capabilities of employees to enhance performance
Develop corporate culture
Enhance line management relationships

Bibliography
Research Methodology by C.R. Kothari
www.SBI bank.com
www.ICICIbank.com
Brewster, C. and Connock, S. (1985). Industrial Relations: Cost Effective
Strategies, London, Hutchinson.
Brewster, C., C. Gill and S. Lichbell. (1981) Developing an Analytical
Approach in Industrial Relations Policy, Personnel Review, Vol.10, part 2,
pp3-lO.
Brewster, C. and Richbell, 5. (1984), Getting Managers to Implement
Personnel Policies. Personnel Management. December 1982, pp34-37.
Burns, T. and Stalker, G. (1961). The Management of Innovation, London,
Tavistock Press. V
Fowler, A. (1987). When Chief Executives Discover HRM, Personnel
Management, January, pp32-35.

QUESTIONNAIRE
Topic: HR Policies Practiced by Tata Steel
Name: ____________________
Address: ____________________
Phone Number: ____________________
Name of the Bank: ____________________
Q.1 Are you satisfied the present HR Policy?
b. Satisfactory [ ]
c. Average [ ]
Q2. Are you satisfied the medical benefits provided by the Organization for the
employees & their families?
b. Satisfactory [ ]
c. Average [ ]

Q3. How do you rate the Conveyance Allowance offered by the Organization?
b. Satisfactory [ ]
c. Average [ ]
Q4. Rate the Overtime allowance offered by the Organization?
b. Satisfactory [ ]
c. Average [ ]
Q5. How do you rate leave policy of the Organization?
b. Satisfactory [ ]
c. Average [ ]

Q6. Does working in the organization give you a feeling of security?
a. Yes [ ]
b. No [ ]
Q7. Does the organization provide housing facility for employees?
a. Yes [ ]
b. No [ ]
Q8. Which of the following factors which motivates you most ?
a. Salary Increase [ ]
b. Promotion [ ]
c. Leave [ ]
d. Motivational talks [ ]
c. Recognition [ ]
Q9. How often is training and development provided to the employees?
a. Once in a month [ ]
b. Once in a year [ ]
c. Others [ ]
Q10. On what basis is the compensation for employees calculated?
a. Overall performance [ ]
b. Over time [ ]

c. Code of conduct [ ]
Q11. Additional compensation package including holiday, sick time and health
insurance meet employees expectation?
b. Satisfactory [ ]
c. Average [ ]
Q12. In HR department has been successful in reduce adverse condition and
change?
a. To certain extent [ ]
b. To some extent [ ]
c. Not at all [ ]

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What is the overall aim and scope of the study?

What HR policies and practices does the study focus on in Tata Steel?

What HR policies and practices does the study focus on in Tata Steel?

Dissertation

Master of Business Administration

Under the supervision of

AL-BARKAAT INSTITUTE OF MANAGEMENT STUDIES,

Gajendri Chauhan MBA 4th Sem 2013-14 ABIMS, Aligarh 1

Steel” is a bonafide record of work carried by me, submitted to partial

fulfillment of requirement for the award of degree Master of Business

Administration under the guidance of MR. AZMAT ALI KHAN , (SR.

ASSISTANT PROFESSOR) Al-Barkaat Institute of Management Studies , Aligarh

been submitted for the award of any other degree.

Dated: Gajendri Chuahan

Gajendri Chauhan MBA 4th Sem 2013-14 ABIMS, Aligarh 2

my own small efforts.

erudition that has made this assignment possible.

In particular I wish to extend my earnest and heartfelt thanks to my supervisor

MR. AZMAT ALI KHAN (Sr. Assistant Professor) Al-Barkaat Institute of

questionnaires painstakingly and thus helped me actually go ahead with my assignment or my

work would have remained confined to my imagination.

Gajendri Chauhan MBA 4th Sem 2013-14 ABIMS, Aligarh 3

Chapter – 1 Introduction 1-8

Chapter – 2 The Importance of a HR Policies & Practices Strategy 9-20

Chapter – 3 Background of Tata Steel Ltd. 21-28

Chapter – 4 HR policies practices in Tata steel 29-50

Chapter – 5 Research Methodology 51-53

Objectives of the study 53

Chapter – 6 Data Analysis and Interpretation 54-67

Chapter – 7 Suggestions and Conclusion 68-73

Gajendri Chauhan MBA 4th Sem 2013-14 ABIMS, Aligarh 4

Gajendri Chauhan MBA 4th Sem 2013-14 ABIMS, Aligarh 5

Human resource policies are systems of codified decisions, established by an

organization, to support administrative personnel functions, performance

management, employee relations and resource planning.

Each company has a different set of circumstances, and so develops an individual

set of human resource policies.

The establishment of policies can help an organization demonstrate, both

training as well as its commitments in relation to regulation and corporate

governance of its employees. For example, in order to dismiss an employee in

accordance with employment law requirements, amongst other considerations, it

will normally be necessary to meet provisions within employment contracts and

collective bargaining agreements. The establishment of an HR Policy which sets

out obligations, standards of behavior and document disciplinary procedures, is

now the standard approach to meeting these obligations.

organizational culture.[2] For example recruitment and retention policies might

outline the way the organization values a flexible workforce, compensation

HR Policies & Employment Legislation

This section gives practical information to organizations on how to

develop HR policies and procedures. The guide is designed for small

nonprofits. It will be useful to those who are just beginning to develop

you will find in this section include a Policy Template, a Guide to

Developing an Employee Handbook, and a template Statement of

Why policies are important

Policies serve several important functions:

Keep the organization in compliance with legislation and provide

protection against employment claims