HUMAN RESOURCE DEPARTMENT

ESSARS human resource policy is based on philosophy that the group success

depends on developing and realizing the potential of each one of us. The mindset of yesterdays manager was to accept compromise keep things orderly, which leads to complacency. Today, we should not be afraid to go against the current because we know that tomorrow is ours. We must work towards our towards our vision of what business can become.
By Mr. Shashi Ruia, Chairman ESSAR Group It is no secret that survival in the new business order depends on people power entrepreneurs who think creatively develop innovation strategies and implement them quickly effectively. That is a secret Essar have always known. You will find that its nearly 5000 employees really live out its philosophy of positive attitude to turn every challenge into an opportunity and every benchmark into baseline. Coupled with its uncompromising focus on technology this achievement oriented attitude gives all its business some of the lowest staffing number and highest productivity not just in India but world wide. Essar goal is to be lean organization where every ESSAR employee is carefully chosen highly trained and empowered with unparalleled challenges and growth opportunities. Indeed the size and scope of our various project provides a range of experience and excitement that few other companies can match. That is especially true because to Essar performance is paramount and its people take responsibities based on their resourcefulness more than their age or tenure.

STRUCTURE OF HUMAN RESOURCES DEPARTMENT

Mr. T. M. Ragunath General Manager

Mr. Dinesh Chandra Deputy General Manager

Mr. Sharad Shah Manager

Mr. Kar Deputy Manager

Mr. Vibin Nair Deputy Manager

Mr. Manish Mehta Sr. Officer

Mrs. Meena Mehta Librarian

NUMBER OF EMPLOYEES: ESSAR has human resources of 3400 employee including 1572 in the Steel Plant at Hazira.

ACTIVITES OF PERSONNEL & HUMAN RESOURCES DEPARTMENT: ESSAR human resource management startergy to attract and retain individual in and environment that is conductive them into satisfied employees who continuously strive for self development. Employee satisfaction and development has been found to be critical for the success of the organization. Employee are selected according to there technical knowledge and the skill with appropriate attitude and aptitude. Compensation offered to the employees has been benchmark with the best in the industry which has helped us to ensure that we are able to retain them in the organization for long duration. This can see from fact that the averages longevity of the employees in ESSAR is around 8 years.

Yes Essar provides cross-functional exposure to a select group of employees who have been identified as exceptional performers. Such exposure is intended to groom employees for higher future responsibility.

CAREER PLANNING & DEVELOPMENT: Career planning development is the planning of ones career and implementation of career plans by means of education, training, job search and acquisition of work experience. ESSAR has a high emphasis on performance. They link both career growth and rewards directly to merit and achievement.

They customize career paths and retention plans according to the unique needs of an individuals. Right from the entry levels, they draw career maps for each employee, outlining possible alternative career paths.

HUMAN RESOUCE:
LEVEL M - 00 M - 01 M - 02 M - 03 M - 04 M - 05 M - 06 M - 07 M - 08 M - 09 M - 10 M - 11 M - 12 T - 01 T - 02 T - 03 DESIGNATION Director Executive Vice-President Senior Vice-President Vice-President General Manager Joint General Manager Deputy General Manager Manager Deputy Manager Senior Officer/ Senior Engineer Officer/ Junior Engineer Junior Officer/ Field Controller Supervisors / Telephone Operator Management Trainees (M.B.A./ C.A.) Officer Trainees / GETS MSW Commercial Trainees/ DETS B.sc / B. Com.

RECRUITMENT:
Recruitment policy is to attract the best talent at the induction level and after familiarization offer them a fair and open field for development and growth purely on achievement and business success.

Process:
Manpower needs to be identified by the line managers by considering manpower Budget and business plan.

Employment Requisition from required to be filled as per The organization charts/ business plan along with the job description.

The Line Manager of the requisitioning department submit The Employment Requisition Form. The form model is below.

Sources of Recruitment that EASSAR is employing Data bank available with Corporate Personnel/ HR and unit Personnel. For junior middle level company gives advertise on leading newspaper, also they go for different website, which provides staff. For junior level, company also get employee by referral of current employee.

The application received are screened to remove the application that Do not meet the requirement of the positions. Internally designed application forms will be mailed to the remaining Candidates who appears to be suitable.

Recommended Sources:
1) Internal

Have internal candidates been considered? Yes/No. Have Unit personnel been asked? Yes/No

2) External

a) Through contacts. b) Through advertisements c) Through consultants

Candidates Specifications: 1) Age 2) Qualification 3) Years / Nature of Experience 4) Any specialized training 5) Any others 6) Possible alternatives experience : : : : : :

SELECTION:
Short-listed candidates will be called for their interview to the Corporate Personnel/ HR Department of Unit Personnel Department as the case may be. All interview panels will consist of interviewers from the personnel department and the concerned line functions. All selection will have to be approved by their Chief Execution Officer of the Department / Division concerned. Salary offer for selected candidates will be made after comparing the particulars of the candidates such as age, qualification, and experiences to those of the same responsibility / experiences profile in the same / similar department / grade. The salary offer may take into accounts the following aspects: The market value of the job. The difficulty of getting suitable candidates. The candidates expectation. The time periods until the next salary review.

 The potential of the candidates to raise to higher position. ESSAR divides selection ways: FRESHERS: At the level, company decides various norms for recruitment and selection. Mainly the candidates who have minimum sixty percentages can apply. It related to graduate, diploma engineering and MBA. For selection of fresher company, goes for campus interview and off campus interview. 1. Written test 2. Group discussion 3. Personnel Interview Written test: Aptitude test helps determine a person potential to learn in a given area. Aptitude test indicates the ability of fitness of an individual to engage successfully in any number of specialized activities. Group Discussion: Short-listed the candidates from these appeared for written test. In group discussion the judges from human resources department / line heads evaluates the performances of candidates based on the communication skills and that way they represents themselves in the group with other candidates. Based on this, judges actives of minds of the candidates. After the completion of the Group Discussion, the judges select the best candidate. Personnel Interview: In the personnel interview, the interview collects information on the candidates, his family background, and his knowledge of that field where he is to appointed. If a candidates is as per the company need than they decides the post and grade which is suitable for the candidates. Scale: 1 = Unsatisfactory 2 = Good 3 = Excellent

Absenteeism Rate:
As the company is providing facility like to and fro, accommodation, safety, health, library, canteen, provident fund, gratuity, wedding of employees and their children also, guest house, stores, cell phone cards, medical, insurance etc. Due to that reason the absenteeism rate is less than 1 % only is there at ESSAR STEEL LDT.

TRAINING & DEVELOPMENT PROGRAM:

Management believes that training program improves the productivity and creativity of the employee at the work place. The Human resources department organize training program for the employee both in house and outhouse i.e. outside the company. Base on the performances of an individuals the department also organize training program so that they can improve on their limitation. The Human resources department also organizes seminars at training center i.e. the learning skill department at Essar Steel Ltd. The need for the training is assed by human resources department by confidential appraisal of the employees. Objective of training and development: 1. To increases the productivity and creativity of an individuals. 2. To enable the employee to update their knowledge increases the level of performance. 3. To create an environment of we feeling and enhance the accountability of the people. 4. Achieve desired attitudinal change. 5. Develop the staff with high potential to take greater responsibility.

6. Expose the employee to modern techniques and systems Some of the training program conducted is mentioned below: No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Programme Basic Managerial Skills Negotiating Skills Public Speaking & Presentation Skills Time Management Executive Leadership Camp (ELC) Stress Management Effective Decision Making Communication Skills Creativity And Problem Solving Personnel Effectiveness Personnel Effectiveness Written Communication Corporate Etiquette Assertive Skills Knowledge Management MDP(Mgmt. Development Programme) Internal Customer Orientation Benchmarking Goal Setting Emotional Intelligence 360 degree work shop Material Management Commercial And legal Aspect of Contract Finance for Non Finance Executives I.R. Level M8 & Jr. M6 & Jr. M8 & Jr. M8 & Jr. M8 & Jr. M7 & Sr. M7 & Sr. M8 & Jr. M6 & Jr. M8 & Jr. M8 & Jr. M6, M8, M9 All All All M7 to M5 All All M4 & Sr. M4 & Sr. M4 & Sr. All All M9-M5 M8 & Jr.

TRANSFERS
There are two types of transfers followed by the company: INTRA: Under this transfer are done internally among the different business run by ESSAR such as from Steel to Telecom, from Power to Oil. INTERNAL: Here the transfers are done between its plant such as from HBI plant to HSM plant etc.

REASONS OF TRANSFER: REQUIRMENT: The Company makes transfer if there is any requirement from one business to another or one plant to another. EMPLOYEES NEED: If the company employee approaches the management for transfers then they are shifted as per the feasibility.

PROMOTION:
Minimum 3 years residency period in current grade in case of graduate engineers/ professionals (non technical) and minimum residency period in current grades in case of diploma engineers, and in case of other (B.Sc./B.Com/ITI/etc) minimum residency period will be 5-6 years. The executives should posses a minimum rating of 3 & above during the assessment years and also during the residency period of assessment for the recommended for promotion.

Employee Turnover:
As the company providing township, has a shopping complex, fully equipped hospital, school, gymnasium and health club, swimming pool, guest house, stores, free cell phone cards, to and fro facility etc. Therefore the employee turnover rate of ESSAR Company is only 11%.

PERFORMANCE APPRASIAL MANAGEMENT:

At ESSAR, performance appraisal management system is a policy to appraisal performance of all employees annually, though every supervisor is expected to assess the performance of his subordinates continuously in order to appraisal the performance for the whole year objectively. Performance appraisal method adopted by ESSAR is as follow: RATING SCALE METHOD:

Under this there are basically two types of appraisal done by company. 1) Discrete 2) Continuous. Continuous appraisal is used for DETS only and then after confirmation is done. This appraisal is represented is graphical manner. ESSAR established a scale of 1-5 rate employees on their based on performances. EXCELLENT VERY GOOD GOOD SATISFACTORY POOR Then rate each employee according to that scale for commonly used factors like 1. Quality of Work. 2. Cooperation 3. Initiative 4. Planning 5. Leadership abilities 6. Communication Skills. Usually authorized person conduct performance review then the appraisal is compared with the job specification to find out what is lacking and such people are going to be trained. And ultimately this helps is framing the recruitment, selection, and compensations policies.

THE APPRAISAL PROCESS: 1) Eastablish Performance Standard.

2) Communicate Standard to Employee.

Measure Actual Performance by Following the Instructions. Adjust Actual Performance Environmental Due to Influnces. Compare Adjusted Performance with Others & Pervious. 6) Compare Actual performance with Standard & Find Out Deviations. Communicate the Actual Performance to The Employee Suggest Changes in Job Analysis & Standard 9) Follow up performance Appraisal Reports.

EMPLOYEES WELFARE:
As a part of employee welfare efforts, Essar has introduction a unique scheme whereby the employee are given a gift in cash at the time of their weeding or wedding of their children. The details of the same are as given below: Wedding of Employees

 Wedding gift in cash, equivalent to half of months basic salary, rounded off to the next hundred rupees plus would be given to the employee. Company car would be provided for a period of one day i.e. on the wedding day with petrol expenses reimbursed. Where Company car is not available and the employee has to make his/her own arrangement for the car, he/she will have to produce original bills for the car. However, the maximum amount payable on the car is Rs. 1000/ Accommodation in appropriate hotel for the couple for the one night on the wedding day including boarding would be given. For the purpose of deciding the hotel the level of the employee would be taken into consideration. For the wedding of Employee Children same procedure as follow by the Essar Steel LDT. Personal Accident Insurance The company has a Group Personnel Accident Insurance covering all employees. In this regards, the company has obtained a Master Policy from Insurance Company. The Company shall make annual contribution towards this policy for each individuals every years.Personnel accident insurance, cover risk of death of the insured person arising directly or indirectly connected to employment or otherwise. Retirement Benefits Provident Fund: The main objective of this scheme is: To establish a compulsory contributory provident fund with equal contribution by employee and employer at a specific rate. Eligibility:

All employees of the ESSAR Group Of Companies are made member from the date of appointment. The Employees Provident Fund and Miscellaneous Provision Act 1952 provides for transfer of Provident Fund in full between organization covered under the said Act. A transfer of the service of a member from one organization to another is constructed as continuation of service for the purpose of his membership of the Fund. Contribution: At present the contribution of every employee who is a member of the Fund is at rate of 12% of gross salary (Basic + Cola). The Company contributes an equal amount of what every employee contributes during the month concerned. In addition to the month contribution of 12% of his basic salary + Cola, every member is at liberty to make a voluntary contribution to the Fund. It is to be noted there is no corresponding contribution from the employers for amount contributed. Employees1 Pension Scheme, 1995: The scheme provides for comprehensive pensionary coverages to the member as old-age provision an also in the event of invalidity and survivorship benefit to his family upon his death in any eventuality irrespective of whether death occurred while in service away from employment.

Contribution: The Employee Pension Fund is created by:

From and out of the PF contribution payable to by the employer in each month, a apart of the contribution representing 8.33% of the employees pay up to and including Rs. 5000/- subject to a maximum contribution of Rs. 417/-. The Central Government shall contribute@1.16% of the employees pay. Group Gratuity Scheme: The objective of this scheme are to provides for payment of Gratuity benefits to the employees after completion of five years service on exits due to resignation, retirement and also to the nominee/ beneficiaries in the event of the death of the member. Eligibility: All permanent employees including whole time Director who are aged not less than 18 years and not more than 58 years are covered under this scheme. Contribution: The company makes an annual contribution in advance to the LIC of India in respect of every eligible member on the annual renewal date of the policy. LIC determines contribution payable as annual premium, under the policy on the basis of actuarial valuation of the gratuity liability subject to the statutory limit of 8/1/3% of the annual wage bill taking into consideration the relevant factors. For futher details on retirement benefits, please contact the respective Unit HR or refer to Handbook on retirement & Welfare benefits. Long Service Awards: Most employees work for the Group fro 10, 15, 20, even 25 years many for their entire careers.

The Company recognizes its employees with Long Services Award- symbols appreciation for years of service. You will receive your first Long Service Award at your 10-year anniversary. Thereafter, award is presented at 15 and 25-years anniversary. Scholarships for Employees Children: A total of eight scholarships are granted each year for employees children. Out of these, five scholarships are for undergraduate, graduate or post graduate studies in India and two for post graduate studies abroad. The subject of study for which scholarships are granted, cover all branches of Engineering, Medicine , Management, Advanced Accountancy, Humanities, science etc. Our scholarship will be given to a boy or girls in this group of 15-20 age, for pursuit of sports combined with his/her course of studies at schools or colleges in India. This award will open to those who are full-time school going or university students-the latter in their first or second years study.

With Respect to Work Satisfaction:

Rating Scale 1. Easy 2. Not so easy 3. Medium 4. Not so hard 5. Hard No. of respondent 8 16 31 35 10

Graph showing the nature of w ork

Hard 10%

Easy 8% Not so Easy 16%

1. Easy 2. Not so Easy 3. Medium 4. Not so hard 5. Hard

Not so hard 35%

Medium 31%

With respect to Salary:

Rating Scale 1. Satisfied 2. Less Satisfied 3. Average 4. Less Satisfied 5. Dissatisfied No. of respondent 6 11 28 45 10

Graph showing salary satisfaction

Dis satisfied 10%

Satisfied 6%
Less Satisfied 11%

1. Satisfied

2. Less Satisfied

3. Average

Less dissatisfied 45%

Average 28%

4. Less dissatisfied

5. Dis satisfied

BIBLIOGRAPHY
WEBSITES: www.essar.com www.steel.nic.in www.indiainfoline.com www.prodomain.com
www.domain-b-com.

REPORTS: Annual Reports of ESSAR STEEL LDT