Study On Promotion Policy

A STUDY ON
PROMOTION POLICY
WITH REFERENCE TO RINL, VSP

AT
VISHAKAPATNAM STEEL PLANT

(A report submitted to Andhra University)
ANDHRA UNIVERSITY
In Partial fulfillment for the award of
MASTER OF BUSINESS ADMINISTRATION

By
Ch Deepthi
Under The Guidance Of
D. RADIKA
Senior Manager (Personnel H.R DEPT)
RINL, VISAKHAPATNAM STEEL PLANT
Facilitated by HRD Deptt of RINL/VSP

Visakhapatnam
O.R.Mohan Rao
M.L.Srinivasa
Varma
AGM(HRD) RINL/VSP
AM(HRD) RINL/VSP
CERTIFICATE
This is to certify that the project done by

Ms.CH.DEEPTHI during the academic year 2011 2013, in partial fulfillment for the award of
Master of Business Administration. This project
work is original and exclusively done by her and
has been never been a basis for award/fulfillment
of any degree or similar title in this University or
in any other University.
PLACE: VISAKHAPATNAM
DATE:
D. RADHIKA
Senior Manager (Personnel)
CERTIFICATE OF PROJECT GUIDE

IN VISHAKAPATNAM STEEL PLANT
This is to certify that the project report

entitled a case study on PROMOTION
POLICY
with
reference to RINL, VSP is a bonfire work done

and
submitted
in
partial
fulfillment
of
the
requirement for the award of Master of Business

Administration
by
CH.DEEPTHI,
guidance & supervision.
under
my
PLACE: VISAKHAPATNAM
DATE:
D. RADHIKA
Senior Manager (Personnel)
DECLARATION
I, CH.DEEPTHI, hereby declare that the project report entitled a

case study on PROMOTION POLICY with reference to RINL, VSP
SUBMITTED BY ME IS A BONIFIDE WORK DONE BY ME AND IT IS NOT
SUBMITTED TO ANY OTHER University or published any time before. This
project work is in partial fulfillment of the requirements for the award of
the Master of Business Administration, SIR. C.R.REDDY COLLEGE
FOR WOMEN,ELURU,ANDHRA UNIVERSITY.
Place: VISAKHAPATNAM
Date:
CH.DEEPTHI
ACKNOWLEDGEMENT
The Quest for Knowledge Never Ends, so continuing my journey of

Knowledge in Department of Business Administration, SIR.C.R.REDDY
COLLEGE FOR WOMEN,ELURU,ANDHRA UNIVERSITY.I have assigned to do
my Project title on A Case Study on
PROMOTION POLICY with
reference to RINL, VSP

This study is the result of the contribution, guidance and cooperation received from collective at the Steel Plant both explicitly
and implicitly. No amount of words will be adequate to acknowledge
the help rendered by the individual that assisted me in the
preparation of this project report.
I would like to express deeply my sincere gratitude and thanks to
Madam
D.
department)
Radhika,
RINL,
Senior
Manager
Visakhapatnam
Steel
(Personnel
Plant
for
HR
her
outstanding co-operation.
I also want to extend my sincere gratitude to all the functional
members at RINL, Visakhapatnam Steel Plant, Visakhapatnam,
for their kind co-operation and helping me to do my project
successfully with them.
I would also like to express my true sincere gratitude to Dr. W.C.
Singh summer training and placement advisor, MIMS, for
constant guidance, encouragement and inspiration for this study.
I am also thankful to the faculty members and staff of SIR. C,R.REDDY
COLLEGE FOR WOMEN,ELURU,ANDHRA UNIVERSITY for their valuable inputs,
suggestion guidance and encouragement to complete the project

successfully.
Lastly I would like to thank my parents who have always been a
great source of support and encouragement. I would also like to
thank to all my friends for the needful assistance.
CH.DEEPTHI
INDEX
CHAPTER I
Introduction
CHAPTER II
Industry Profile
CHAPTER III
Company Profile
CHAPTER - IV
Promotion Policy
CHAPTER V
Promotion Policy at
Visakhapatnam Steel Plant Ltd.,
CHAPTER VI
Analysis and Interpretation

Findings,
conclusion
Questionnaire
Bibliography
suggestions
and
CHAPTER I
INTRODUCTION
Promotion of one individual by another individual is a continuous

process and it is Natural phenomenon in human beings. This is constantly
done, consciously and unconsciously in our day-to-day interaction, either
in family life or in a social setting or in an organization for that matter.
While the individual or a group uses appraisal in its own fashion
depending upon the need of the situation, in an organization it becomes
necessary to adopt a formal methodology of Promotion because of the
requirement of measuring the promotion for considering suitable reward
or punishment or for assessing the potential of a person to increase
his/her responsibilities. In short, there is a great requirement for assessing
the efficiency to gear up the productivity of the work-force.
OBJECTIVES
The following are the specific objective of the present study. To
study the promotion policy history and their activities in VSP.
1.
To
study
and
accesses
the
executive
promotion
and
effectiveness.
2.
To measure the satisfaction level of the promotion of VSP at

present time.
3.
To analyze the drive towards quality that is integrated into

executives promotion policy.
4.
To find the effectiveness of superior assessment of promotion.
5.
To
study,
identify
and
suggest
measures
to
improve
effectiveness specifically from quality perspective.

6.
To find there is a cohesiveness attitude towards each other

employees
7.
To find subordinates can give effective information for

evaluating the promotion of the employees
8.
To find there is a room for the internal customer in PAS and

can give valuable information for evaluating the performance
of the employee
9.
To find 360 degree promotion can improved the promotion in

VSP and can be implemented in RINL, VSP.
SCOPE OF RESEARCH
A sample of 50 respondents were selected at random from

different department Personnel Department, Vigilance Department,
Marketing Department, Finance Department, Mills-Works Department,
Project Departments and Training and Development Department, of
employees from the executives were sort for their opinions on the existing
promotion policy.
RESEARCH DESIGN
METHODOLOGY:
To get information about promotion policy with reference to RINL,

VSP Simple Random Sampling survey was conducted. For the present
study of the data has collected by ways from the following ways.
Questionnaire:
The questionnaire was personally administrated with respondent in

VSP it took nearly 30 minutes for each respondent to fill the questionnaire.
The responses was given by the respondents were tabulated and a score
sheet is prepared.
Organization Profile:
The general information regards organization has been collected

from files, forms, policy statements, Organization design and steel
industries in India. Isa promotion policy in VSP has been also been
collected from all these records.
Author Books:
The information relating to the promotion policy has been collected

through a study of books. Human resource and personnel management by
C.B Gupta and Khankha, added to this source of information relating to
the system.
LIMITATIONS:
The study is how ever subjected to certain limitation.

1
The time is a major limitation. The whole study was conducted

within a period of 2 months.
The study does not cover the entire executive fraternity and the
officials at the rank of Directors and Chairman Cum Managing
Director. The study confers itself only to executives ranking from
Assistant Managers to General Managers.
Study is quality perspective has only been qualitative the

information gathered in this regard is mostly through information
discussion.
Only the existing system has been studied and no attempt has
been made to identify and complete new and dynamic promotion
due to this constraints.
BRIEF DESCRIPTION
1 Promotion policy is the systematic description of an employees jobrelevant strengths and weaknesses.
2 The basic purpose is to find out how well the employee is promoting the
job and establish a plan of improvement.
3 Appraisals are arranged periodically according to a definite plan.

4 Promotion policy is not job evaluation. Promotion policy refers to how well
someone is doing the assigned job. Job evaluation determines how much a
job is worth to the organization and, therefore, what range of pay should
be assigned to the job.
5 Promotion policy is a continuous process in every large scale organization.
PURPOSE:
Promotion policy aims at attaining the different purposes. They are:
1
To create and maintain a satisfactory level of promotion.
To contribute to the employee growth and development through

training, self and management development programs.
To help the superiors to have a proper understanding about their

subordinates.
To guide the job changes with the help to continuous ranking.
To facilitate fair and equitable compensation based on promotion.
To facilitate for testing and validating selection tests, interview

techniques through comparing their scores with promotion policy
ranks.
To provide information for making decisions regarding lay off,

retrenchment etc.
To
ensure
organizational
effectiveness,
through
correcting
employee for standard and improved promotion, and suggesting

the change in employee behavior.
CONTENT OF PROMOTION POLICY:
Every organization has to decide upon the content to be promoted

before the programme is approved. Generally content to be promoted
may be in the form of contribution to organizational objectives (measures)
like production, cost savings, return on capital, etc. other measures are
based on:
1
Behavior which measure observable physical actions, moments,
Objectives which measure job related results like amount of

deposits mobilized,
Traits which are measured in terms of personal characteristics

observable in promotion and type and level of employees.
Contents to be promoted for an officers job:
Regularity of attendance
Self-expression: Written and Oral
Ability to work with others
Leadership styles and abilities
Initiative
Technical skill
Technical ability / knowledge
Ability to Grasp new things
Ability to Reason
10
Originality and resourcefulness
11
Creative Skills
12
Area of Interests
13
Area of Suitability
14
Judgment Skills
15
Integrity
16
Capability for Assuming Responsibility
17
Level of Acceptance by Subordinates
Establish Goals
For Programmes
Develop Policies
For Feeding back Data
Obtain Top
Management
Design physical
Commitment
Facilities
Conduct
Programme
Do Detailed
Job Analysis
Select Exercises
And Participants
Define
Dimensions to
Design Assessor
Be assessed
Trainings
Programme
Provide Feed
Back
Train
Assessors
Evaluate Participants
and Centre Against
Job Success Criteria
Fig: An Assessment Centre Model
Human
policies
Promotion
policy
Employee
Feedback
Promotion
Measures
Promotion Related
Standards
Human
Resources
Decisions
Employee
Records
Fig: Key Elements of
PROMOTION POLICY
HUMAN RESOURCES DEVELOPMENT:
It
is
well
recognized
everywhere
that
human
competency
development is essential prerequisite for any growth or development of

the organization. Human resource development is a newly emerging field
of study. Although development of human beings has been in existence in
some from or the other since the beginning of civilization, a planned and
systematic approach to HRD in the corporate sector emerged in the latter
half of the 20th century. Many organizations have set up HRD
Departments which symbolized
the recognition
employees competency development.
CONCEPT OF HRD :
of
importance of
HRD is the process of helping people to acquire competencies. It is

an organized learning experience aimed at matching the organization
need for human resource with the individual need for career growth and
development. In an organizational context HRD is a process by which the
employees of an organization are helped in a continuous and planned way
to:
1 Acquire or sharpen capabilities require to promote various functions

associated with their present or expected future roles.
2 Develop their general capabilities so that may be able to discover their
own inner potentialities and exploit them to full for their own and
organizational development.
3 To
develop
and
organizational
culture
where
superior-subordinate
relationship, team work and collaboration among different submits are

strong and contribute organizational wealth and; motivation and pride of
the employees.
FEATURES OF HRD:
1
Human resources Development is planned any systematic

approach to the development of the people.
Human Resource Development is a continuous process of

developing the competencies, motivation, dynamism and
effectiveness of employees.
Human Resources
Development
is
an
inter
disciplinary
concept.
4
Human Resources Development has both micro and macro

aspects.
Human Resource Development is a process not merely a set

of mechanism.
OBJECTIVES OF HRD:
To provide a comprehensive frame work and method for the

development of human resource in an organization.
To generate systematic information about human resource for

purpose of man power planning, placement, succession
planning and the like.
To increase the capabilities of an organization to recruit, retain

and motivate talented employees.
To create a climate that enables every employee to discover,

develop and use his / her capabilities to a fuller extent, in
order to further both individual and organizational goals.
NEED FOR HRD:
Competent
and
motivated
employees
are
essential
for
organizational survival growth and excellence. Over a period of time, an

organization may achieve a saturation point in terms of its growth. Even
to maintain such a saturation level of growth employee competencies
need to be sharpened or developed. Thus, HRD is need by every
organization that is interested in the following activities.
Stability itself
Growing
Diversifying
Renewing itself to become more effective
Improving its systems and services
Change and becoming more dynamic
Playing leadership roles
FUNCTIONS OF HRD DEPARTMENT:
Develop a HR philosophy for the entire organization
Keep inspiring the line managers to have a consistent desire

to learn and develop.
Constantly plan and design new method and systems of

developing and strengthening the HRD climate.
Be aware of the business/other goals of the organization and

direct all their HRD efforts to achieve these goals.
Monitor
effectively
the
implementation
of
various
subsystem / mechanisms.
6
Work with unions and associations and inspire them.
HRD
Conduct
human
process
research,
organizational
health
surveys and renewal exercises regularly.

8
Influence personnel policies by providing necessary inputs to

the personnel department / top management.
HRD MECHANISMS:
The following are the mechanisms of HRD

1
Promotion policy
Potential promotion and development
Feedback and promotion counseling
Career planning
Training
Organizational development
Rewards
Employee welfare and quality of work like
Human resources information system
PROMOTION POLICY:
Promotion policy of some type is practiced on most organizational

all over the world:
A HRD oriented promotion policy is used as a mechanism by

supervisions to
1
Understand the difficulties of their subordinates and try to

remove their difficulties.
Understand the strengths and weakness of their sub-ordinates

and help of subordinates to realize these.
Help the sub-ordinates to become aware of their position

contribution.
Encourage sub-ordinates to accept more responsibilities and

challenges.
Help sub-ordinates to acquire new capabilities.
Plan for effective utilization of talents of sub-ordinates.
FEEDBACK AND PROMOTION COUNSELING:
Knowledge of ones strengths helps one to become more effective, to

choose situations in which ones strengths are required and to avoid
situations in which ones weaknesses could create problems. These also
increase the satisfactions of individuals often, people do not recognize
their strengths. Supervisions in and HRD system have the responsibility
for ongoing observation and feedback to subordinates about their
strengths and their weaknesses, as well as for guidance in improving
promotion capabilities.
CAREER PLANNING:
The HRD philosophy is that people perform better when they feel
and see meaning in what they are doing. In the HRD system, corporate
growth plans are not kept secret dong-range plans for the organizations
are made known to the employees. Employees are helped to prepare for
change whenever such change is planned, in fact the employees help to
facilitate the change.
TRAINING:
Training is linked with promotion policy and career development.
Employees generally are trained on the job or through special in house
training programs. For some employees (including executive) outside
training may be utilized to enhance, update to develop specific skills. This
is especially valuable if the external training can provide expertise,
equipments, or sharing of experience that is not available within the
organization.
In-house training programs are developed by in-house trainers or

consultants hired for the task and periodic assessments are made of the
training needs within needs, manager, and employees who attend inhouse or outside training events are also expected to submit proposal
concerning any changes they would like to suggest on the basis of their
new knowledge. The training received by employees is thus utilized by the
organization.
ORGANIZATION DEVELOPMENT:
The function includes research to ascertain the psychological health
of the organization. This is generally accomplished by means of periodic
employee surveys. Efforts are made to improve organizational health
through various means in order to maintain a psychological climate that is
conductive to productivity. The organizational development or systems

experts also help any department or unit in the company that has
problems such as absenteeism, low resistance to change.
REWARDS:
Rewarding employees promotion and behavior is important part of
HRD, Appropriate rewards no only recognize and motivate employees, but
also communicate the organization value to the employees. In HRD
systems, innovations and use of capabilities are rewarded in order to
encourage the acquisition and application, newsletter announcements,
increase in salary bonuses, special privileges and desired training reward
may be given to individuals as well as to teams, department, main and
other units within the organization.
EMPLOYEE WELFARE AND QUALITY OF WORK LIFE:
Employees at lower in the organization usually promotion relatively

monotonous tasks and have fewer opportunities for promotion or change.
This is particularly true in developing countries. In order to maintain their
work commitment and motivation, the organization must provide some
welfare benefits such as medical insurance, disability insurance, holidays
and vacation.
Quality of work life programs generally focus on the environment

with the organization includes basic physical amenities such as food and
beverage facilities. Recreation and aesthetic and psychological and
motivational factors such as flexible work hours, freedom to suggest
change or improvements, challenging work and varying degree of
autonomy.
HRD IN VISAKHAPATANM STEEL PLANT (VSP):
The VSP has a nice HRD department with talented and experienced
staff. It is following more or less all the above mentioned HRD
mechanisms. The HRD staff is very friendly and co-operative.
PHILOSOPHY OF HRD:
Employees of the company are its greatest and most valuable

resources.
While on the hand HRD should appropriately harness employees

potential for the attainment of company objectives on the other, the
company as its corporate responsibility should create an enabling
the best opportunity for self-expression all-round development and
fulfillment.
1 People are more than mere resource and therefore it will be a person with
all the respect and sensitivity that are all the respect and sensitivity
that is warranted when employees are seen as more than more
instrumentality.
2 HRD as a management function will be given a place of strategic priority
along with function like production, maintenance, materials or finance
in the overall scheme of management action in the company.
3 HRD does not refer to training alone or it is just a new name for training.
In
RINL/VSP,
HRD
several
management
functions,
for
the
development and growth of employees.

4 HRD should eventually be a core philosophy of all management action and
should not remain merely a report mental / sectional activity.
5 All functional and divisional heads responsible for various activities of the
company will the HRD spirit and suitably integrate HRD into their
plans, decision and actions.
HRD OBJECTIVES:
1
To
provide
initially
suitable
match
between
employee
competence levels and companys work requirements.

2
To foster an appropriate climate and culture which nature.

Employee competence and crease adequate motivational levels
for the application of their abilities to assigned job / roles with

required commitment.
3
To enable employees seek great identification with the company

by infusing most management decisions and actions with the
requisite care, concern and development approach.
To work towards enabling the employees and other stakeholders

ask self fulfillment even work for the growth and property of the
company.
To utilization enable to employees and the organization to

achieve its mission and objective and business goals through
HRD.
HRD GROUP-KEY ACTIVITY:
TQM and in-house programs
Nomination to external programs
Organization research and organization development
Membership with professional bodies
Promotion policy for executives
Human resource information
In plant training for management studies.
Lectures by eminent personalities.
Corporate presentation
10
Interactions with professional academicians and consultants.
CHAPTER II
INTRODUCTION TO STEEL INDUSTRY IN INDIA
STEEL INDUSTRY:
Steel industry is the back bone of all industrial commercial activities.

Realizing these countries planners have been formulating and updating
annual plants for production of iron and steel. In this context a number of
steel plants were setup. The steel industry plays a vital role in the growth
of nations economy.
Steel is such a versatile commodity that every object we see in our

day to day life has used steel either directly or indirectly in its product. To
mention a few it is used for such small items as nails, needles etc.
agriculture
implements
boilers,
ship
fabrication,
railway
materials,
automobile parts, etc. to have machine structure.
The great investment that has gone into the fundamental research
in iron and steel technology has helped both directly and indirectly in
many modern fields of todays science and technology. It would have been
very painful to imagine the fate of todays civilization if steel has not been
there. Steel is versatile and indispensable item. The versatility steel has
not been there. Steel is versatile and indispensable item. The versatility
steel can be traced mainly of three reasons.
1 It is only metallic item, which can be continently and economically

produced, in large quantities.
2 It has got very good strength coupled with density and malleability.
3 It properties can be changed over a wide range. It alloys easily with many
of the common element.
4
NDIAS STEEL SCENARIO:
Indian steel industry has always remained isolated and protected by

government, where the steel industry was never expected to generate
profit from business, but was expected to provide employment to the
unemployed. Presently Indian is operating with open-hearth furnaces. The
existing equipment, energy and labour in Indian Steel industry are much
low than developed countries.
Indian steel industry generates a significant amount of waste

materials, which can cause environmental problems. The four aspects of
Waste Management namely-residue reprocess, recycle and recovery do
not hold much ground in the Indian steel industry. The Indian companies
cannot spend more for pollution control. The energy consumption per ton
is 50-10% higher than that of the international norms.
The Indian Steel industries have developed a bit in the recent years.
The production is growing 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.
The development of steel industry in India should be viewed in

conjunction with the type and system of government that had been
resulting the country. The production of steel in significant quality started
after 1990. The growth of steel industry can be conveniently started by
dividing the period into pre and post independent era. In the period of pre
independence steel production was 1.5 million tons per year, which was
raised to 9.0 million tons of target by the seventies. This is the present of
the bold steps taken by the government to develop this sector.
WORLDS DEMAND FOR STEEL :
The total demand for steel in world is expected to grow at an annual

rate of 1.7% between 1935 and 2000 A.D. as per the study concerned by
China economists. According to their estimation total demand in advanced
industrial countries on a whole is expected to grow at 0.6% annual rate
following a 2.2% rate between 1974 to 1984. Steel demand is less
developed countries on a whole is expected to grow at a 5.5% annual rate
up to 2000 following a 3.1 annual growth rate between 184-1994. within

the controlling plant economy the Eastern Europe erstwhile USSR region
may have 0.3% annual steel demand growth. Steel demand in China,
North Korea region would grow at 4.0 annual rates up to the end of this
century at a 7.5% per annual growth during 1974-1980.
HIGHLIGHTS OF PRESENT STEEL SECONARIO:

1 The world steel shows a low growth demand.
2 There is a threat to steel industry from competitive products like plastics,
aluminum etc.
3 Developed countries slowly reduced the production of steel.
4 Developing countries like China are planning to produce steel as much
large quantity then of present output of 80 Mt. per annum.
5 Indian
consciously
and
strategically
decides
to
invest
into
steel
production.
6 Preference is given to superior quality products and high value item
production.
7 Customer oriented approach in view of product oriented approach
8 Emergence of new technology like scraps preheating
GROWTH OF STEEL INDUSTRY
The growth in a chronological order is depicted below:

S.No.
Year
Growth
1830
Osier Marshall Heathler constructed the first

manufacturing plant at port-motor in Madras
presidency.
1874
James Erskin founded the Bengal frame works
1899
Jamshediji TATA imitated the scheme for an

integrated steel plant.
1906
Formation of TISCO.
1911
TISCO Started production
1918
TISCO was founded
1940
Formation of Mysore iron and steel initiated at

Bhadravathi in Karnataka
1981-1956
First five-years plan- The Hindustan Steel

Limited (HSL) was born in the year 1954 with
decision of setting up three plants each with 1
million tones in got steel per year at Roiurkela,
Bhilai, Durgapur. TISCo started its expansion
program.
1956-1961
Second five years 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
12
1966-1969
Recession period till the expansion

programmes were actively existed during this
period.
13
1969-1974
Fourth five-years 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 Karnakata. SAIL was
Bokaro Steel plant came into existence
formed during this period on 24th January 1973

definite shape. At the end of the fifth five year
plans the totaled installed capacity fro six
integrated plants was up to 10.6 million tons
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 stared 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 imitated. Capacity at
the end of sixth five-year plan from six
integrated plants stood 11.50 million tones.
17
1985-1991
Seventh five-year plan expansion works at

Bhilai and Bokaro steel plant completed.
Prograess of Visakhapatnam steel plant picked
up and the nationalized concept has been
introduced to commission the plant with 30
MT liquid steel capacities by 1990.
18
1992-1997
Eight 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
planRestructuring
of
Visakhapatnam steel plant and other public
sector undertakings.
STEEL PLANTS WITH FOREIGN COLLOBORATIONS

Sl.
No.
Plant
Collaboration Capacity of
Finished Steel Products

1
Rourkela Steel Plant
West Germany
Bhilai Steel Plant
Erstwhile USSR
Durgapur Steel Plant
Britain
Bokaro Steel Plant
Erstwhile USSR
Sl.N
Plant
o.
Collaboration Capacity
Annual
of Finished Steel
Production
Productions
1
Rourkela
Steel
West Germany
7,20,000 Tones
Erstwhile USSR
7,70,000 Tones
Britain
8,00,000 Tones
Plant
2
Bhilai Steel Plant
Durgapur
Steel
Plant
PROBLEMS OF STEEL PLANT INDUSTRY

LACK OF RAW MATERIALS:
Non-availability of good quality raw material is another faced by iron

and steel industry. The modern gain blast furnace needs high-grade iron
ore and good metallurgical coal.
Further the industry is unable to get good quality and manganese is

which the principle, raw materials next to iron ore are unfortunately most
of our resources of manganese ore are of poor quality besides the non
availability of good quality raw material, regular supplies of raw materials
are very much handicapped due to the absence of good transport
facilities. Another problem faced by the steel industry related to the
difficulty in getting zinc supplies for the continuous galvanizing line.
LACK OF TECHNICAL PROBLEMS

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 of zinc for the production of galvanized sheet apart
from source internal problems; our technology in the field of steel
production is not a developed one when compared to other advanced
countries.
GOVERNMENT CONTROL AND PRICING POLICY
Since 1941, India steel and iron industry was almost completely
state regulated. Both prices and distribution of steel were under control of
government. The Govt. decided to remove statutory control over the price
and distribution of all, but a few categories with effect from 1 st March 26,
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 raw materials.
CHAPTER III
COMPANY PROFILE
Introduction
Visakhapatnam Steel Plant (VSP), 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 3 million Tons per annum of Liquid Steel and 2.656 million Tons
of saleable steel. At VSP there is emphasis on total automation, seamless
integration and efficient up- gradations, which result in wide range of long
and structural products to meet stringent demands of discerning
customers
within India
and abroad.
VSP products
meet
exacting
International Quality Standards such as JIS, DIN, and BIS, 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 systems of
all Operational, Maintenance and Service units besides Purchase systems,
Training and Marketing functions spreading over 4 Regional Marketing
Offices, 24 branch offices and stock yards located all over the country.
VSP by successfully installing & operating efficiently Rs. 460 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. This has made Steel Township a greener, cleaner and cooler
place, which can boast of 3 to 4 C lesser temperature even in the peak
summer compared to Visakhapatnam City.
VSP exports Quality Pig Iron & Steel products' to Sri Lanka, Myanmar,
Nepal, Middle East, USA, China and South East Asia. RINL-VSP was
awarded
"Star
Trading
House"
status
during
1997-2000.
Having
established a dependable export market, VSP plans to make a continuous

presence in the export market.
Having a total manpower of about 17,600 VSP has envisaged a labor
productivity of 265 Tones per man-year of Liquid Steel.
Background & Corporate Plan of VSP
Background
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 17 April' 1970 by the then Prime Minister of India late Smt.
Indira Gandhi.
A site was selected near Balacheruvu creak 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. Gandhi laid the foundation stone for the plant on
20.01.1971.
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 Governments 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. Dastur & Company. A Comprehensive revised
DPR jointly prepared by Soviets & M/s Dastur & Company was submitted
in Nov' 1980 to Govt. of India. The construction of the Plant started on 1st
February 1982. Government of India on 18th Feb'82 formed a new
Company called Rashtriya Ispat Nigam Ltd. (RINL) and transferred the
responsibility of constructing, commissioning & operating the Plant at
Visakhapatnam from Steel Authority of India Ltd. to RINL.
Due to poor resource availability, the construction could not keep
pace with the plans, which led to appreciable revision of the plant cost. In
view of the critical fund situation and need to check further increase in the
plant costs, a rationalized concept was approved which was to cost Rs.
6849 crores based on 4th Quarter of 1988. The rationalized concept was
based on obtaining the maximum output from the equipment already
installed, planned / ordered for procurement and achieving higher levels of
operational efficiency and labor productivity. Thus, the plant capacity was
limited to 3.0 Million Tons of Liquid Steel per annum. In the process, one of
the Steel Melt Shops and one of the mills were curtailed. The availability of
resources were continued to be lower than what was planned and this
further delayed the completion of the construction of the plant. Finally all
the units were constructed and commissioned by July' 92 at a cost of
Rs.8529 Crores. The then prime Minister of India Late Sri P. V. Narasimha
Rao dedicated the plant to nation on 1st August 1992.
Since Commissioning VSP has already crossed many milestones in

the fields of production, productivity & exports. Coke rate of the order of
509 Kg/Ton of Hot metal, average converter life of 3126 heats an average
of 23.6 heats per sequence in continuous Bloom Caster. Specific energy
consumption of
6.07 G Kal / ton of liquid steel, a specific refractory
consumption of 8.94 kg and a labor productivity of 414 Ton / man-year are

some of the peaks achieved in pursuit of excellence.
Corporate Plan :
Vision, Mission ,Objectives(VMO) and core values
MISSION
To attain 16 million ton liquid steel capacity through technological upgradation, operational efficiency and expansion: augmentation of assured
supply of raw materials; to produce steel at international standards of cost
and quality: and to meet the aspirations of the stakeholders.
VISION
To be a continuously growing world-class company, we shall

1
Harness the growth potential and sustain profitable growth.
Deliver high quality and cost competitive products and be the

first choice of customers.
Create an inspiring work environment to unleash the creative

energy of people.
Achieve excellence in enterprise management.
Be a respected corporate citizen, ensure clean and green

environment and develop vibrant communities around us.
OBJECTIVES
1 Expand plant capacity to 6.3 Mt by 2011-12 with the mission to expand
further in subsequent phases as per Corporate Plan.
2 Revamp existing Blast furnaces to make them energy efficient to
contemporary levels and in the process increase their capacity by 1 Mt;
thus total hot metal capacity to 7.5 Mt.
3 Be amongst top five lowest cost liquid steel producers in the world.
4 Achieve higher levels of customer satisfaction.

5 Vibrant work culture in the organization.
6 Be proactive in conserving environment, maintaining high levels of safety
and addressing social concerns.
CORE VALUES
Commitment
Customer Satisfaction
Continuous Improvement
Concern for Environment
Creativity & Innovation
MANPOWER OF RINL, VSP (as on 1.07.2011)
As on
As on
As on
As on
As on
31.03.20
07
31.03.20
08
31.03.20
09
31.03.20
10
01.07.20
11
EXECUTIVES
3532
4201
5218
5263
5258
WORKS
2145
2584
3249
3153
3231
PROJECTS
225
280
329
327
340
MINES
54
64
93
104
94
OTHERS
1108
1273
1547
2110
1593
NON
EXECUTIVES
11937
11544
12007
12567
12500
WORKS
10687
10387
10476
11163
11256
PROJECTS
68
64
63
58
50
MINES
281
265
267
262
247
OTHERS
901
828
1201
1404
947
TOTAL
16574
16433
17225
17830
17758
WORKS
13608
13463
13725
14316
14487
PROJECTS
320
353
392
385
390
MINES
357
350
360
366
360
OTHERS
2289
2267
2748
3514
2521
Key performance indicators :
Production Performance:
Commercial Performance
Year
Sales
Domestic
Exports
2006-2007
2007-2008
2008-2009
2009-2010
Turnover
9151
10433
10458
10634
Sales
8726
9878
10379
10283
424
555
79
351
Table 3.6.a commercial performance(rupees in crores)
Fig. 3.6.b. Commercial Performance since 2006-07
Financial Performance
CHAPTER IV
PROMOTION POLICY
INTRODUCTION:
Promotion policy is wide used in the society. Parents their children,

teacher evaluate their student and employers evaluate their employee.
However, formal evaluation of employees is believed to have been
adopted for the first time during First World Ward. At the inlands of Walter
Dill Scott the US army man to man rating system for evaluating military
personal. Once the employees has been selected, trained the motivated,
he is then promoted for his policy. Promotion policy is the step where the
management finds out how effective it has been at hiring and placing
employees
if
any
problems
are
identified,
steps
are
taken
to
communicated to employee and to remedy them. A Promotion policy is a

process of evaluating the Promotion policy is a process of evaluating the
promotion and qualification of employee according to job and its
requirement. It is also known as the process of estimating and judging the
value, excellence. Qualities of status of some object person or things.
Individually and collectively, it is the part of the other staffing process, like
recruitment, selection, placement, etc.
TRENDS IN PROMOTION POLICY:
Item
Terminolog
Former Emphasis
Merit-rating
Present Focus
Promotion policy
y
Purpose
Determine
wage
increase, Development
promotion, transfer, lay off.
of
the
individual, improved job

promotion
Application
Fort rank and file workers
For
managerial
and
technical personnel
Factors
Personal traits
rated
Techniques
Promotion
result
or
accomplishment
Rating scales with emphasis Mutual goal-setting.
upon
CONCEPT OF PROMOTION POLICY:

Promotion evaluation or promotion policy is the process of assessing
promotion and progress of employee or of a group of employee on a given
job and his potential for future development. In concept of all formal
procedure used working organization to evaluate personality, contribution

and potential of employees.
The main characteristic of promotion policy is as follows:

1
Promotion policy is the process consisting of series of steps.
It is the systematic examination of employee strengths and

weakness in terms of jobs.
Promotion policy is the scientific or objective study. Formal

procedure is used in the study the same approach is adopted for all
jobs holders for that result is comparable.
It is an organizing or continuous process where in the valuation is

arranged periodically according to a definite plan.
Main process promotion policy is to secure information necessary for

making objective and correct decision on employees
OBJECTIVES OF PROMOTION POLICY:
The main purposes of promotion policy are as follows:

1
To provide a valid data base for personnel decision concerning

placements, pay, promotion, transfer, punishment etc.
To diagnosis the strength and weakness of individuals so as to

identify further training needs.
To provide coaching, counseling, career planning and motivation to

subordinates.
To develop positive, superior-subordinate relations and thereby

reduce grievances.
To facilitate research in personnel management.
Definition:
Promotion evaluation of Promotion policy is the process of assessing
the promotion and progress of an employee or of a group of employees on
a given job and his potential for future development.
Formal Definition:
it is the systematic evaluation of the individual with respect to his /
her promotion on the job and his / her potential for development.
According to Flippo
Promotion policy is the systematic, periodic and an impartial rating

of an employees excellence in matters pertaining to this present job and
his potential for a better job.
Characteristics:
1
It is process of consisting of series of steps
It is the systematic examination of an employees strengths and

weaknesses in terms of his job.
It is a scientific and objective study. Formal procedures are used

in this study.
It is an ongoing or continuous process there in the evaluations is

arranged periodically according to a definite plan.
The main purpose of promotion policy is to secure information

necessary
for
making
objective
and
correct
decisions
on
employees.
Objectives:
1
To provide feedback to employees so that they come to know

where they stand and can improve their job performance.
To provide a valid data base for personnel decision concerning

placements, pay promotions, transfers, punishments, etc.
To diagnose the strengths and weakness of individuals so as to

identify further training needs.
To provide coaching, counseling, career planning and motivation

to subordinates.
To develop positive superior subordinates relations and thereby

reduce grievances.
Thus, performance appraisal aims at both judgmental and

development efforts.
Uses:
1
It provides valuable information for personnel decisions such as

pay increase, promotion etc.
It helps to judge the effectiveness of recruitment, selection

placement and orientation system of the organization.
It is useful in analyzing and development needs.
It can be used to improve performance though appropriate

feedback, working and counseling to employees.
It facilitates Human Resource Planning, career planning and

succession planning.
A competitive spirit is created and employees are motivated to

improve their performance.
Process of Performance Appraisal:

1
Establishing performance standards the appraisal process

begins with the setting up of criteria to be used for appraising the
performance of employees. The criteria are specified with the
help of job analysis, which reveals the contents of job. This
criteria should be clear, objective and in wiring.
Communicating the standards the standards are conveyed to

the employees and the evaluators. A feedback regarding the
standards should be obtained from the evaluators and the

employees for revision or modification.
3
Measuring
performance
this
require
choosing
the
right
technique of measurement, identifying the internal and external

factors influencing performance and collecting information on
results achieved.
4
Comparing the actual with the standards actual performance is

compared with the predetermined performance standards. Such
comparison will reveal the deviation, which may be positive or
negative.
Discussing the appraisal The results of the appraisal are

communicated to an discussed with the employees. Along with
the deviations, the reason behind them are also analyzed and
discussed. Such discussion will enable the employee to know his
weaknesses and strengths.
Taking corrections through mutual discussions with employees,

the step required to improve performance are identified and
initiated. Training, coaching, counseling, etc., are examples of
corrective actions that help to improve performance.
7
METHODS OF PERFORMANCE APPRAISAL
Several methods and techniques are used for evaluating employee
performance. These may be classified into Traditional and modern
methods.
Traditional Methods:
1 Ranking Method: is technique, evaluator assigns relative ranks to all
employee performance. These may be classified into Traditional and
Modern methods.
1 Man-to-man compression methods: In this method, certain factors are

selected for the purpose of analysis and the rater for each factor designs a
scale. A scale of man is also created for each selected for each factor.
Then each man to be rated is compared with the man in the scale, and
certain scores are awarded to him. In other words, a whole man is
compared to a key man in respect of one factor at a time. This method
is used in job evaluation and is known as the factor comparison method.
1 Paired comparison method This is a modified form of man to main

ranking. Herein, each employee is compared with all others in pairs on at
a time. The number of times an employee is judged better than other
determines his rank. Comparison is made on the basis of overall
performance.
1 Forced distribution method In these techniques the rater appraises

an employee according to a pre-determined distribution scale. It is
assumed that it is desirable to rate only two factors by this method that is
job performance and promo ability. For this purpose a five poking
performance scale is used without any descriptive statement & employees
are placed between two extremes of good and bad performance.
1 Graphic rating scales methods It is a numerical scale indicating

different degrees of a particular train. The rater is given a printed from for
each employee to be rated. The form contains several characteristics
relating to the personality and performance of employee. Intelligence,
attitude, quality of world, leadership skills judgment, etc. are some use
characteristics. This method is widely used as it is easy to understand. It
allows a statistical tabulation of scores and, a ready comparison of scores
among the employees is possible. The approach is multi-dimensional as
several significant dimensions of the job can be considered in evaluation.
1 Critical incident method In this method the superior keeps a written

record or critical (either good or bad) events and how different employees
behaved during such events. The rating of the employee depends on the
positive or the negative behaviors during these events. These critical
incidents are identified after though study of the job and discussions with
the staff. This method helps to avoid vague impression and general
remarks as the rating is based on actual records of behavior.
1 Group appraisal method Under this method, a group of evaluators

assess employee. This group consists of the immediate supervisors of the
employee, other supervisors having close contact with the employers
work, head of the department and a personnel expert. The group
determines the standards of performance for the job, measurers actual
performance of an employee, analysis the causes of poor performance
and offers suggestions for improvements in future.
1 Grading method Under this method, the rater considers certain factors,
and marks them accordingly to a scale. The selected factor may be
analytical
ability,
co-operation,
dependability
self-expression,
job
knowledge. They may be grades as A outstanding B very good, C

good/average, D fair, E poor. The actual performance of an
employee is then compared with these definitions and he is allotted the
grade which best described his performance.
1 Forced Choice Distribution method In this method, the rating

elements are several of pairs phrases of adjectives relating to job
proficiency or personal qualification. The rater is asked to indicate which
of the phrases is most and least descriptive of the employee.
2 Checklist method In this method, series of questions are presented

concerning and employees behavior. Here rater does not evaluate
employee performance; he supplies reports about it and the personnel
department does the final rating.
1 Free Essay Method In this method, the supervisor makes a free form,
open-ended appraisal of an employee in his own words and puts down his
impression about the employee. The description is always as factual and
concrete as possible.
1 Filed review method In this method, trainer employee from the

personnel department interviews line supervisors to evaluate respective
subordinates. The supervisor is required to give his opinion about the
progress of his subordinates and his plan of action in cases requiring for
consideration.
The tradition methods given above focus on the traits of an employee

than an his job performance, in the absence of predefined performance
criteria or standards, the personal bias or subjectively of the evaluator
affects the rating. This approach caused the following responses:
1
The very nature of the appraisal system led to criticism
Criticism exercised a negative impact on goal attainment
Criticism
increased
antagonism
and
defensiveness
among
employees resulting in inferior performance.

4
Managers generally are not qualified to assess personality traits.
Some
managers
discourage
good
performances
by
emphasizing shortcomings and almost neglecting good work.
over
In order to overcome these weaknesses some new techniques of

performance appraisal have been developed.
Modern Methods:
1 Assessments center method -
An assessment center is a group
employee drawn from different work units. These employees work

together on assignments similar to the one they would be handlings when
promoted. The most important feature of the assessments center is jobrelated simulations. Evaluators observe and rank the performance of all
participants. This group evaluates all employees are both individually and
collectively by using simulations techniques like role playing, business
games and in-basket exercises? Employees are evaluated on the basis of
job related characteristics considered important for job success. The
evaluators prepare a summary report and feedback is administered on a
face-to-face basis to the employees who ask for it. An assessment center
generally measures interpersonal skills, communicating ability to plan and
organize, etc. Assessments centers are not only methods of appraisal but
help to determine training and development needs of employees and
provide data for human resources planning.
1 Human resource accounting method Human resource are a valuable

asset for any organization. This asset can be valued in terms of money.
When competent, and well-trained employees leave and organization the
human asset ids decreased and vice versa. Under the this method
performance is judged in terms of costs and contributions of employees.
Costs of human resources consists of expenditure on human resources
planning, recruitment, selection, induction, training, compensation, etc.
contribution of human resources is the money value of labor productivity
of value added by human resources. Difference between cost and
contribution will reflect the performance of employees. This method is still
in the transitory stage and is, therefore, not popular at present.
1 Behavioral Anchored Rating Scales (BARS) - This method combines

graphics rating with critical incidents method. BARS are decryptions of
various degrees of behavior relating to specific performance dimensions.
Critical areas of job performance and the most effective behavior for
getting results are determined in advance. The rater records the
observable job behavior of an employee and compares these observations
with BARS. In this way an employees actual behavior is judged against
the desired behavior. This steps involved are:-
1 Identify critical incidents Persons with knowledge of the identify job

to be appraised describe specific examples of both effective and
ineffective job behaviors.
1 Select performance dimensions - The persons then cluster the

behavioral incidents into a smaller set (usually 5-10) of performance
dimensions.
1 Retranslate the incidents Another group of knowledgeable persons

assign each incident to the dimension that it best describes. Incidents for
which there is less than 75% agreement with the first group are not
retranslated.
1 Assign Scales to incidents - The second group rates each incident on a

7 or 9 point scale. Rating is done on the basis of how well the behavior
described in the incident represents the performance on the appropriate
dimensions.
Means
(average)
and
standards
deviations
calculated for the scale values assigned to each incident.
are
then
1 Develop final instrument A subset of the incidents that meet both the
retranslation and standard deviation criteria is used a behavioral anchor
for the final performance dimensions. A final BARS instrument typically
comprises a series of vertical scales that are endorsed by the include
incidents. Each incident is positioned on the scaled according to its mean
value.
1 360 degrees performance appraisal -
This is a new concept in
performance appraisal, where the feedback is collected form all around

the employee, the superiors, the subordinates, the peer group, and the
customers. The evaluation is very comprehensive in terms of the
employees skills, Abilities, styles, and job-related competencies. This
system has the following advantages:
2
Higher validity and reliability of the evaluation
Self evaluation by the employees gets compared with the

perception of others.
Helps in maximizing employee potential in the face of

challenges.
ADVANTAGES:
1
Ratings are likely to be accurate because these are done by

experts.
The method is more reliable and valid as it is job specific and

identified observable and measurable behavior.
Ratings are likely to be more acceptable due to employee

participation
The use of critical incidents is useful in providing feedback to the

employee being rated.
Limitations:
1
It is very consuming and expensive to develop BARS for every

job.
Behaviors used are more activity oriented than results oriented
Appraisal by result or MBO (Management by Objectives) The

concept of management by objectives was developed by Peter Drucker in
1954. Since the MBO has become an effective and operational technique
of performance appraisal and a powerful philosophy of managing.
CHAPTER V
PROMOTIONS POLICY AT RINL-VSP
PROMOTION POLICY AND RULES FOR EXECUTIVES
1.0 INTRODUCTION
RINL/VSP has a vision to emerge as an excellent organisation in the comity
of steel producers of the country. This calls for dynamic organisation
structure responding swiftly and flexibly to the fast changing business

environment. In promoting and sustaining such a dynamic structure,
RINL/VSP is committed to provide professional satisfaction to its
executives through clear-cut responsibility and accountablility. In this
background, it is essential to have a well laid-out policy framework which
integrates individual aspirations for growth with the functional needs of
the organisation, and fosters a congenial working environment to build up
synergy in the organisation.
2.0 OBJECTIVES
2.1 To man functional positions in the company with competent personnel
having growth potential.
2.2 To infuse a sense of competitiveness amongst the executives to excel
in their performance.
2.3 To link the career growth of executives with their performance.
2.4 To provide positional growth with specific responsiblility and definite
accountability.
2.5 To strengthen frontline executive base by broadbanding of the grades.
2.6 To promote and sustain a flatter structure by providing growth without
building up hierarchy.
2.7 To spell out clearly the principles which govern the system of
promotion of executives in the
company.
3.0 SCOPE
3.1 This policy and rules shall cover all promotions within the executive
posts and will be applicable to all regular executives of the company
(except to the extent expressly excluded in this policy and rules) including
out-station units, offices and mines.
3.2 Deputationists, persons appointed for a limited tenure on adhoc basis,
superannuated persons
reappointed in the Company and executives engaged on contract or
temporary basis shall not be covered under this Policy and Rules.
1Revised vide Personnel Policy Circular No.16/97 dated 7.11.1997.
PERSONNEL MANUAL
RASHTRIYA ISPAT NIGAM LTD. 2.1.2

3.3 This Policy and Rules shall not cover promotions from non-unionised
supervisory cadre to executive cadre and for growth thereafter, which are
being governed by a separate policy.
Clarification: As at 6.1 Note-(a)
3.4 This Policy and Rules shall also not cover promotions from E-8 to E-9
grade, for which a separate policy exists.
4.0 EXECUTIVE POSTS/GRADES
4.1 1The executive posts/grades in the Company which are covered under
this Policy and Rules are as follows :
Scale Existing Scales Scale Revised Scales of pay
Code Code w.e.f. 1.1.1997
Rs . Rs .
E-0 3700-175-7025 E-0 8600-250-14600
E-1 4500-200-5500-250-8250 E-1 10750-300-16750
E-2 5650-250-6650-275-9400 E-2 13700-350-18250
E-3 6600-300-9600 E-3 16000-400-20800
E-4 7500-300-9900 E-4 17500-400-22300
E-5 7950-300-10050 E-5 18500-450-23900
E-6 8400-300-10200 E-6 19000-450-24400
E-7 9000-300-10500 E-7 19500-450-25350
E-8 9500-400-11500 E-8 20500-500-26500
4.2 All promotions made in accordance with this Policy and Rules will be
from one
scale of pay to the next, without skipping any scale of pay.
5.0 PROMOTION SYSTEMS
5.1 Promotions from E-1 to E-2, E-2 to E-3 and E-3 to E-4 grades will be
effected on the basis
of merit of the eligible executives in accordance with the rules prescribed.

For this purpose,
the posts in these 4 grades will be pooled together and operated.
1Amended vide Office Order No.PL/RR/W(01)/2001 dated 29.9.2001.
PERSONNEL MANUAL
5.2 Promotions from E-4 to E-5 grade and above in respect of eligible
executives will depend on
availability of vacancies in the next higher grades in the respective LOPs
and based on the need
to fill up such vacancies.
5.3 Promotions will be based on the assessed levels of performance of the
executives in terms of
credit points in accordance with the performance appraisal system of the
Company.
6.0 ELIGIBILITY CRITERIA
For consideration for promotion, an exectutive has to fulfil the following
eligibility criteria
(a) Minimum eligibility period
(b) Minimum performance criteria
(c) Should be within the zone of considerations, where applicable.
Note: The management may prescribe qualifications for positions in the
higher grades (E-5 and
above) and certain specialized/statutory posts. Only those executives who
possess the
prescribed qualifications and fulfil the eligibility criteria as above, will be
considered for such
posts.
6.1 MINIMUM ELIGIBILITY PERIOD
The executive should fulfil the following minimum eligibility period in the
respective LOPs:
For promotions from E-1 to 3 years service

E-2, E-2 to E-3, E-3 to E-4 in the next below
E-4 to E-5, E-5 to E-6, E-6 to E-7 grade
E-7 to E-8 2 years service
in the next below grade
NOTE:
(a) Executives recruited as Management Trainees in E-0 grade as per the
Management Trainee
Scheme of the company will be placed in E-1 grade, from the date of their
satisfactory
completion of training, as per the training completion procedure.
This, however, is not applicable to executives appointed in E-0 grade
otherwise than as
Management Trainees of the Company. Their placement in E-1 grade and
growth thereafter
will be regulated as per rules/procedure prescribed separately.
PERSONNEL MANUAL
Clarifications: given vide PL/RR/3(1)/98, Dated 08.01.98.
i) The executive employees who have been promoted from the NonUnionised Supervisory
cadre to Executive cadre will be required to put in two years of service in
E-0 grade for
being considered for placement in E-1 grade as provided under the
Promotion Policy for
Non-Unionised Supervisory cadre and Executive cadre, subject to other
eligibility criteria
as laid down.
ii) Seniority in E-1 grade and eligibility for promotion to E-2 grade will be
counted from the
date of entry into E-1 grade i.e. 3 years in E-1 grade, subject to fulfilling
other criteria.
iii) For promotions from E-2 to E-3 and thereafter, they shall be governed
by the Policy and
Rules for Executives issued vide circular No. 16/97 dated 07.11.1997, as
amended from
time to time.
(b) The period of training as Management Trainee in E-0 grade will be
taken into acount for the
purpose of computation of eligibility period in E-1 grade, subject to the
condition that the
executive has worked for a minimum of 2 years after placement in E-1
grade.
(c) Where an executive avails of extra-ordinary leave exceeding a period
of three months in one
or more spells during the eligibility period, the total period of such extraordinary leave will be
excluded while computing the eligibility period.
(d) The period of study leave granted by the Company will be taken into
account in determining
the minimum eligibility period for promotion, subject to the condition that
the executive has
completed the course satisfactorily.
6.2 MINIMUM PERFORMANCE CRITERIA
(a) An executive should secure a minimum of 150 credit points out of a
combined total of 300
points of the three preceding Annual Performance Appraisal Reports.
(b) In case of executives recruited as Management Trainees where only
two Annual Appraisal
Reports may be available, the marks obtained by them during training will
be taken into account
in lieu of the third report. For this purpose, the aggregate percentage of
marks obtained in the
examination including viva-voce etc., at the end of the training period will
be converted on prorata
basis to a maximum of 100 points.
6.3 VIGILANCE & DISCIPLINARY CLEARANCE
The executive should be clear from vigilance and disciplinary angles in
terms of Personnel
Policy Circular No.PL/RR/3(10) dated 23.11.83 read with Personnel Policy
Circular No.
PL/RR/3(5)/97 dated 25.3.97.
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6.4 ZONE OF CONSIDERATION
For consideration for promotion from E-4 to E-5 grade and above, the
Executive should be
within the zone of consideration based on relative merit in the LOP, as
provided in clause 7.2.3.
7.0 METHODOLOGY
All promotions are promotions by selection based on merit as reflected in
the Appraisal
Reports and the potential assessment by DPCs, as prescribed hereunder:
7.1 Promotions from E-1 to E-2, E-2 to E-3 & E-3 to E-4 grades :
7.1.1 Promotions from E-1 to E-2, E-2 to E-3 & E-3 to E-4 grades shall be
delinked from vacancies
and linked to the prescribed performance of the executives as assessed in
their annual
performance appraisal reports.
7.1.2 Promotions within the cluster i.e.E-1 to E-2, E-2 to E-3 & E-3 to E-4
grades will be conducted
twice in a year.
7.1.3 Personnel Deptt. shall prepare list of executives in E-1, E-2, E-3
grades who fulfil the eligibility
criteria as prescribed in clauses - 6.1, 6.2 and 6.3. Those executives who
do not fulfil the
prescribed eligibility criteria shall not be considered for promotion ab
initio.
7.1.4 Personnel Deptt. will also prepare separately the list of such
executives whose names have
not been included in the merit list and who are not eligible to be
considered for promotion on
account of not fulfilling the criteria under clauses - 6.1, 6.2 and 6.3 and
place the same before
the Departmental Promotion Committee (DPC) for its information and
perusal.
7.1.5 From out of the list of executives prepared as per caluse - 7.1.3,
- executives having three years of service in the next below grade and
60% of credit
points in the preceding three appraisal reports, i.e. a total of 180 points
out of 300, subject
to a minimum of 60% in atleast two appraisals including the latest one,
shall be promoted.
- executives having four years of service in the next below grade and 55%
of credit points
in the preceding four appraisal reports, i.e. a total of 220 points out of
400, subject to
a minimum of 50% in atleast two appraisals including the latest one, shall
be promoted.
- executives having five years of service in the next below grade and 50%
of credit points
in the preceding five appraisal reports, i.e. a total of 250 points out of 500,
shall be
promoted.
7.1.6 The executives promoted shall be entitled for monetary benefit from
the date of assumption
of charge only.
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7.2 PROMOTION FROM E-4 TO E-5 AND ABOVE :
7.2.1 Promotions from E-4 to E-5 and above will be vacancy based and will
be effected only on
availability of vacancies in the respective LOPs and based on the need to
fill up such vacancies.
7.2.2 Personnel Department will draw up lists of eligible executives in
respective LOPs on the basis
of merit as determined from the total credit points of Annual Appraisal
Reports of the
preceding 3 years. Against each vacancy, not more than 5 eligible
executives will be
considered from the list in the descending order of merit. However, in case
of a tie between
the last executive in zone of consideration and the next below
executive(s) as a result of their
obtaining equal number of credit points, all the executives involved in the
tie will be considered
along with other eligible executives by the DPC. In such an event the
number of executives
to be considered for promotion against a vacancy may exceed 5.
7.2.3 List of eligible executives falling within the zone of consideration
drawn up on the basis
provided in clause -7.2.2 will be placed before the Departmental
Promotion Committee
(DPC). The DPC will assess the suitability of the executives based on the
performance as
rated in the annual performance appraisals, service in the grade and the
potential of the
executive as assessed by DPC.
The assessment of the potential will be done as per the format enclosed
at Annexure-I. For
the purpose of determining the total marks obtained by the eligible
executives, the performance,
service in the grade and potential will carry the following marks :
Parameter Marks
Performance 50
Service 20
Potential 30
- Performance to be counted in terms of average credit points of the
preceding 3 years.
- Service weightage will carry a total of 20 marks with each month beyond
the eligible
period of service in the grade having a credit of 0.55 marks.
- A minimum of 18 marks of 30 in potential assessment will be required for
being
promoted.
7.2.4 The DPC will draw up select list of the promotable executives in
order of merit on the basis
of total marks obtained, subject to the number of vacancies. Potential
assessment will be made
by the DPC by way of interview in case of promotion from E-4 to E-5 and
E-5 to E-6. There
will, however, be no interview for promotion from E-6 to E-7 and E-7 to E-8
grades and the
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DPC will assess the potentiality based on performance as reflected in the

Appraisal Reports
and the record of the service.
8.0 DEPARTMENTAL PROMOTION COMMITTEES (DPCs)
8.1 The DPC for consideration of promotions from E-1 to E-2, E-2 to E-3, E3 to E-4 grades will
consist of :
(a) Conerned Executive Director/General Manager
(b) Concerned HOD
(c) A representative of Personnel Department.
8.2 The DPC for consideration of promotions from E-4 to E-5 grades will
consist of:
(a) Conerned Functional Director
(b) General Manager (Personnel)/A representative of Personnel Deptt.
(c) Concerned HOD
8.3 The DPC for consideration of promotions from E-5 to E-6 and E-6 to E-7
grades will consist
of:
(a) All Functional Directors
(b) General Manager (Personnel)
8.4 The DPC for consideration of promotions from E-7 to E-8 grades will
consist of:
(a) Chairman-cum-Managing Director
(b) Director (Personnel)
(c) Other Functional Directors
8.5 Chairman-cum-Managing Director shall have discretion to nominate
additional members on
the DPCs
9.0 LINES OF PROMOTION (LOPs)
9.1 Lines of Promotion shall be as decided by the Management. However,

the LOPs will be so
drawn that while promotions upto the level of E-5 may be effected within
the departments/
units, flexible/broader lines of promotion to E-6 level and above is
ensured.
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9.2 However, the Management reserves the right to fill up vacancies
irrespective of the LOPs
on inter-disciplinary or inter-departmental basis by promotion, transfer, or
circulation as may
be decided by the Management. Vacancies may also be filled up by open
recruitment at the
discretion of the Management.
10.0 ABOLITION OF SENIORITY LISTS
This promotion policy does not envisage promotions based on .Seniority..
Therefore, no
seniority lists will be maintained in the Company for the purpose of
promotion. Instead ,
promotions will be based on LOP-wise merit lists.
11.0 PROBATION
The executive promoted under this Policy and Rules will be kept on
probation for a minimum
period of six months. Confirmation/extension of probation will be
regulated as per Rules
prescribed in this regard.
12.0 PROMOTION OF EXECUTIVES ON DEPUTATION TO OTHER
ORGANISATIONS
12.1 An executive of the Company on deputation to another organisation
may be considered for
promotion in the Company during the period in accordance with the

selection methodology
prescribed in this Policy and Rules.
12.2 In case of an executive who is not on deputation to another
organisation but merely retaining
lien in the Company, he would not be considered for promotion during the
period. He would
merely retain the option to return to his substantive post for the duration
of lien.
13.0 PROMOTION OF EXECUTIVES PENDING ENQUIRY/DISCIPLINARY
PROCEEDINGS
The precedure for dealing with promotion/confirmation of executives
pending investigation/
disciplinary proceedings etc. is given at Annexure-II.
14.0 RESERVATIONS FOR SCs & STs
Reservations/concessions for SCs and STs will be provided as per
Presidential Directives on
the subject.
Note: Clause 14.0 will be applicable subject to OM No.36012/23/96- Estt.
(Res), dated
22.07.1997 issued by the Ministry of Personnel, Public Grievances &
Pensions, as
given at Annexure- III.
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15.0 ISSUE OF CLARIFICATIONS ETC.
Clarifications, guidelines, instructions, procedures etc. under this Policy
will be issued by the
Rules Section on approval of CMD.
16.0 POWER TO RELAX
The Chairman-cum-Managing Director, RINL, may at his discretion, relax

the eligibility
criteria etc., in exceptional cases for reasons to be recorded.
17.0 TENURE
17.1 This Policy and Rules shall come into force with immediate effect and
shall remain in force
for a tenure as may be decided by the Management.
17.2 The Management reserves the right to withdraw, review, alter and/or
amend this Policy and
Rules as may be deemed necessary from time to time.
17.3 This Policy and Rules shall supersede the earlier policy, rules,
regulations, orders and
instructions issued on the subject, except to the extent expressly provided
in this Policy and
Rules.
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ANNEXURE - 1
POLICY AND RULES FOR PROMOTION OF NON-EXECUTIVES
The policy and rules for promotion of Non-executive employees was introduced in
pursuance of the
memorandum of settlement dt.25.01.90 and subsequently, modifications and/or
incorporations of the
policy have been made vide memoranda of settlement dt.05.02.93, 18.05.94 and
02.08.2000. The policy as given below includes all such changes made through
the above
1
memoranda of settlement.
1.0 OBJECTIVES :
1.1 To boost and sustain the morale of the VSP employees in order to enable
them to make allout
efforts for achieving the Mission and Objectives of the Organisation by working at
peak
levels of efficiency.
1.2 To ensure optimum utilisation of manpower with a view to achieving the
productivity level
of not less than 230 tonnes per man year.
1.3 To man non-executive positions in the Company with competent personnel
having growth
potential and to utilise their capability to the maximum.
1.4 To improve job satisfaction among non-executive employees through job
enlargement,
training, etc., and to encourage them to work with enriched job contents and
accept flexible
work practices for optimum utilisation of manpower.
1.5 To recognise and reward good performance consistent with the needs of the
organisation.
1.6 To provide for a system which is conducive to equity, fairness and objectivity
in matters
concerning promotions of non-executives.
1.7 To provide mechanics for determining the suitability of non-executives for
promotion on a
standard pattern and in an objective manner.
2.0 SCOPE :
2.1 The policy and rules will be applicable to all the regular non-executive
employees of Rashtriya
Ispat Nigam Limited, including the employees working in out-station Units,
Offices and
Mines.
Amendement vide Memerandum of Settlement dated 02.08.2000 will be effective from
30.06.2000.
1
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2.2 'Employee' means all non-executives who are appointed on a regular basis
and does not
include Trainees/Apprentices and persons appointed on casual or temporary
basis or
appointed on tenure basis after retirement, etc.
3.0 CLUSTERS(CADRES) :
3.1 For the purpose of promotion, non-executive employees in different pay
scales have been
grouped in the following clusters/cadres:
3.1.1 1The work grades will be grouped into the following clusters/cadres
Cluster Grades
A S-1, S-2, S-3, S-4, S-5 & S-6
À' Sub-cluster S-4, S-5 & S-6
B S-3, S-4, S-5, S-6, S-7 & S-8
C S-6, S-7, S-8, S-9(P) & 2S-10(P)
3.1.2 3Ministerial Grades
S-6, S-7, S-8, S-9(P) & 2S-10(P)
3.1.3 `Personal grade' will be retained in S-9(P) for cluster `C' only.
3.1.4 With the cadre approach, the job will be understood in a composite manner
so that flexibility
of employees within the cadre becomes viable and optimum utilisation of
manpower is
achieved.
4.0 SYSTEMS OF PROMOTION :
4.1 There will be two systems of promotion for non-executives as follows:
a. Promotion within the Cadre
b. Promotion between the Cadres
1
Incorporated vide Tri-partite settlement dt.02.08.2000.
Incorporated vide IOM No.PL/RR/3(6)/2004/109 dated 9.2.2004.
Amended vide PP Circular No.5/2001, dated 18.10.2001.
PERSONNEL MANUAL
4.2 Promotion from one scale of pay to another within the cadre including
"Personal grade" will
be delinked from vacancies. An employee can be considered for promotion on
completion
of prescribed years of qualifying service and subject to fulfilling other eligibility
criteria.
4.3 Promotion from one cadre to another will depend on the availability of
vacancies in the higher
cadre in the prescribed LOP.
4.41 As a special case, À' -Sub cluster will be created with maximum strength of
20% of the total
manpower in À' -cluster in each department in technical stream as on
30.6.2000. Employees
in S-4 grade with 2 years of service in Cluster À' subject to passing of job test,
interview and
possessing satisfactory ACRs for the preceding 2 (two) years and fulfilling such
other
conditions as may be prescribed, will be considered for placement on horizontal
basis in
À'-Sub cluster. However, the vacancies will be filled up in phases.
4.51 On placement in À'-sub cluster, they will be designated as Helper-cum-Jr.
Technician/
Helper-cum-Jr. OCM, etc. Such employees will continue to perform existing
unskilled jobs
and will also carry out skilled jobs as and when assigned.
5.0 ELIGIBILITY AND CONDITIONS FOR PROMOTION :
5.1 Employees will be considered for promotion subject to the following
conditions:
a. that the employee has earned promotable gradings (minimum 'C', i.e.,
Satisfactory) in
the Annual Confidential Reports(ACR)/Appraisal Reports for at least two years,
including the last year, out of the reports for the preceding three consecutive
appraisal
years and no adverse entry has been made in his Annual Confidential Report
(ACR)/
Appraisal Reports. Any adverse entry in the ACR/Appraisal Report for a year not
communicated to the employee concerned by 31st May of the following year will
not be
taken into account and will not adversely affect his promotion.
1
Incorporated vide Tripartite Settlement dated 02.08.2000.
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b. that the employee has fulfilled the following eligibility criteria.

Cluster/ Length Whether Minimum Educational Trade test/
Cadre of service vacancy qualification Job test/
in the linked Written
grade test etc.
1
WORKS GRADES
A S-1 TO S-2 4 years No As prescribed at the Refer NB:5

time of entry
A S-2 to S-3 4 years No --- --A S-3 to S-4 4 years No --- --A S-4 to S-5 4 years No --- --A S-5 to S-6 4 years No --- --A - Sub Cluster
(Cluster A to A Sub-cluster)
S-4 to S-5 4 years Yes As prescribed in 4.4 &
4.5 above
S-5 to S-6 4 years No --- ---B S-2 to S-3 4 years Yes For employees in S-2 grade Should pass the
(cluster A to who do not possess the Trade test/Job
cluster B) qualification of Matriculation, test/written test

a written examination of as prescribed.
appropriate standard will be
conducted by the Management.
Those who pass in the examination
will be considered for
promotion to S-3 grade.
Matriculates will not be required
to appear at this examination.
NB: An employee who passes
this examination once will not be
required to appear at this
examination again.
1
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Cluster/ Length Whether Minimum Educational Trade test/

Cadre of service vacancy qualification Job test/
in the linked Written
grade test etc.
B S-3 to S-4 4 years No - do- -B S-4 to S-5 4 years No - do - -B S-5 to S-6 4 years No - do - -B S-6 to S-7 4 years No - do - -B S-7 to S-8 5 years No - do - -C S-5 to S-6 4 years Yes Matriculation + ITI Should pass the
(cluster B to or Graduation Trade test/ Job test,
cluster C) written test as prescribed.
C S-6 to S-7 4 years No -do- --C S-7 to S-8 5 years No -do- --C S-8 to S-9(P) 5 years No -do- -1
C S-9(P) to S-10(P) 5 years No -do- --
MINISTERIAL GRADES :
S-6 to S-7 4 Years No Graduation --S-7 to S-8 5 years No -do- --S-8 to S-9(P) 5 years No -do- --1
S-9(P) to S-10(P) 5 years No -do- ---
NB-1 : In respect of employees who have been directly inducted in S-2 grade
after
successful completion of their training as Asst. Technician Trainees, the eligibility
period for promotion to S-3 grade shall be 3 years of service in S-2 grade. Also,
the
stipulation of minimum qualification of Matriculation for promotion to Cluster B
will
be relaxed in respect of such employees.
1
Amended vide PP Circular No.5/2001, dated 18.10.2001.
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NB-2 : The minimum educational qualification of Matriculation for promotion from

S-2 to
S-3 grade, i.e. from Cadre A to Cadre B, may be relaxed by Management in
exceptional cases.
NB-3 : For purposes of promotion within Cadre B , the stipulation of minimum
qualification
of Matriculation will be relaxed in respect of employees who have been recruited
directly in Cadre B with a qualification lower than Matriculation.
NB-4 : The standards and procedure of trade test/job test / written test will be
prescribed
NB-5: For promotion within cadres in the same line of promotion no trade test/job
test has
been prescribed. However, in specific cases where job requirements demand,
suitable test(s) may be prescribed.
NB-6 : For the purpose of promotion within the Ministerial Cadre, the stipulation
of minimum
qualification of Graduation will be relaxed in respect of the employees in SL-1/
SL-2/SL-3 and SL-4 grades who are in position as on date of the introduction of
this
promotion policy.
NB-71:DELETED
NB-81:DELETED
NB-91: Employees in À' Sub-cluster will be eligible for promotion to Cluster `B'
on
availability of vacancies in Cluster`B' and subject to possessing prescribed
qualification
and fulfilment of other conditions as prescribed.
However, Note NB-1 of Memorandum of Settlement dt.25.1.1990 will not be
applicable for employees in À' Sub-cluster.
NB-101:On availability of vacancies and subject to possessing prescribed
qualifications and
fulfilment of other conditions, employees in cluster À' and À'-Sub cluster
promoted
to the positions in cluster`B' will be placed in parallel grade of `B' cluster with
protection of grade seniority. However, their cluster seniority for the purpose of
inter-cluster promotion will be reckoned from the date of entry into `B' cluster.
NB-111:On availability of vacancies and subject to possessing prescribed
qualifications and
1
Incorporated/deleted vide Tripartite Settlement dated 02.08.2000.
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fulfilment of other conditions, employees in cluster `B' promoted to the positions

in
cluster `C' will be placed in parallel grade of `C' cluster with protection of grade
seniority. However, their cluster seniority for the purpose of inter-cluster
promotion
will be reckoned from the date of entry into `C' cluster.
c. The existing provisions regarding disqualification of employees for
promotion/confirmation
during the pendency of disciplinary/vigilance cases and thereafter, as contained
in the
Personnel Policy Circular No.10/86 dated 29th April/15th May, 1986 shall
continue.
5.21 The past cases of promotions of employees from cluster À' to cluster `B'
and from cluster
`B' to cluster `C'will also be regulated as per NB-10 & NB-11.
5.31 Not less than 50% of vacancies in `B'/`C' clusters will be filled up through
induction as
Jr. Trainees/Sr. Trainees respectively.
6.0 METHODOLOGY FOR PROMOTION :
6.1 Employees fulfilling the eligibility criteria as prescribed in clause 5.1, i.e.,
those who have
completed the prescribed minimum period of service in a grade, possess the
minimum
educational qualifications prescribed and have passed the prescribed trade
test/job test/
written test wherever prescribed will be considered for promotion, within or
between the
cadres, by a Departmental Promotion Committee constituted for the purpose.
The
Departmental Promotion Committee shall interview the eligible candidates and
make
recommendations about their suitability or otherwise for promotion. The
promotions will be
effected based on the recommendations of the Departmental Promotion

Committee.
6.2 The ratio of vacancies and the number of eligible persons in the LOP to be
considered for
promotion will be 1:3 and the Departmental Promotion Committee particulars will
be
prepared accordingly.
7.0 PROMOTION TO EXTENDED CADRE :
7.1 Where an employee in Cluster `C' has put in the prescribed number of years
of service in
the highest grade , but cannot be considered for promotion for want of a vacancy
in the higher
cadre, he will be considered for promotion to the 'Personal Grade, i.e., in the
personal grade
of S-9(P), 2and on completion of 5 years of service in S-9(P) grade, he will be
considered
for promotion to S-10(P) grade, provided he has earned promotable gradings in
the ACRs/
1
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ARs and is clear from disciplinary/vigilance angle, as prescribed in Clauses 5.1(a)

and (c)
respectively. On such promotion to the "Personal Grade", there will be no change
in the
designation and duties.
7.21 DELETED
8.0 VALIDITY OF TRADE TEST/JOB TEST/WRITTEN TEST :
8.1 An employee who passes a Trade test/ Job test/ Written test within his LOP
conducted for
the purpose of promotion will not be required to appear at a test again for a
period of 18 months
from the date of the last test.

8.2 An employee who fails in the Trade test/ Job test/ Written test conducted for
the purpose,
of promotion will be given an opportunity after 6 months from the date of last
test held, if a
vacancy becomes available to be filled up.
9.0 TRAINING :
9.1 Employees shall avail of all opportunities for training for updating of skills,
growth and
advancement including shop-floor training programme(s).
9.2 Appropriate need-based training packages for skill development will be
introduced with
special emphasis on employees in unskilled categories.
10.0 EFFECTIVE DATE OF PROMOTION :
10.1 The promotions as per these rules will be effected twice in a year i.e., from
30th June and
31st December.
10.2 Persons so promoted will count their seniority from the effective date of
promotion, i.e. 30th
June or 31st December as mentioned in the promotion order, but the financial
benefits will
accrue to them from the date of assumption of charge of the higher post.
10.3 Date of annual increment will be decided with reference to the effective
date of promotion
and/or as per the rules applicable from time to time.
1
Deleted vide Tripartite Settlement dated 02.08.2000.
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11.0 JOB FLEXIBILITY :

11.1 With the cadre approach, the jobs will be understood in a composite manner
so that flexibility
of employees within the cadre becomes viable and optimum utilisation of human
resources
is achieved.
11.2 On promotion, employees will be suitably designated in their lines of
promotion keeping in
view the requirements of work.
12.0 CONSEQUENCES OF REFUSAL :
12.1 If an employee does not appear in the Trade test/Written test/Job test, etc.,
for which he has
been duly informed in writing, he will not be considered for promotion for a
period of 6 months
from the date of holding the said test.
12.2 In case an employee refuses to accept promotion, he will not be considered
for such
promotion for a period of one year from the date of last such promotion which
was refused.
13.0 RESERVATION OF VACANCIES FOR SC/ST :
13.1 Reservation of posts for SC/ST candidates shall be provided in respect of
vacancy based
promotions in accordance with the Presidential Directives and instructions of the
Government
in this regard issued from time to time.
Note: Clause 13.0 will be applicable subject to OM No.36012/23/96- Estt. (Res),
dated
22.07.1997 issued by the Ministry of Personnel, Public Grievances & Pensions, as
given at Annexure- I.
14.0 TENURE :
14.1 This Policy and Rules will come into force with effect from 01-01-1990.
14.2 The Management may at its discretion relax the eligibility criteria in
exceptional cases, for
reasons to be recorded.
14.3 The Management will issue such clarifications, procedures, instructions,
guidelines, etc., as
deemed fit by it for implementing this policy and rules.

14.4 This policy and rules shall supersede all the previous agreement, rules,
regulations, orders and
instructions issued earlier on the subject.
TTT
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ANNEXURE - I
No. 36012/23/96-Estt. (Res)
Govt. of India
Ministry of Personnel, Public Grievances & Pensions
( DEPARTMENT OF PERSONNEL & TRAINING )
North Block, New Delhi
Dated the 22nd July, 1997
OFFICE MEMORANDUM
Sub: Reservation in promotion - Prescription of lower qualifying
marks/lesser standard of
evaluation.
The undersigned is directed to say that in terms of instructions noted in
the margin, certain
relaxations/concessions in the matter of qualifying marks/standards of
evaluation of performance
are to be made in favour of candidates belonging to the Scheduled Castes
and the Sceheduled
Tribes while considering them for promotion.
2. The validity of such lower qualifying marks/lesser standards of
evaluation was called into
question in Courts in the context of the judgement of the Supreme Court
in the case of Indira
Sawhney Vs. Union of India. The Supreme Court, in the case of S.Vinod
Kumar Vs. Union of
India {JT 1996 (8) SC 643} has held that the provision for lower qualifying
marks/lesser level of
evaluation, in the matter of promotion, provided for candidates belonging
to the Scheduled Castes
and the Scheduled Tribes under Government's instructions, is not
permissible under Article 16(4)
in view of the command contained in Article 335 of the Constitution. The
Court has further
observed that even if it is assumed for the sake of argument that
reservation is permitted by Article
16 (4) in the matter of promotion, a provision for lower qualifying marks or
lesser level of evaluation
is not permissible in the matter of promotion, by virtue of Article 335. The
Court also held that
the protection for reservation in promotion for five years, given by the
Supreme Court, vide para
829 of the judgement in Indira Sawhney's case, did not save the
provisions for lower qualifying
marks/lesser level of evaluation.
3. It has accordingly been decided to withdraw the instructions contained
in this Department's
OM No.8/12/69-Estt. (SCT) dated 23.12.1970 and OM No.36021/10/76-Estt.
(SCT) dated
21.1.1977, in so far as these provide for lower qualifying marks for
Scheduled Castes/Scheduled
Tribes candidates in departmental qualifying/competitive examinations for
promotion. Similarly,
the relevant portions of para-6.3.2 of the DPC guidelines circulated vide
this Department's OM
No.22011/5/86-Estt.(D) dated 10.4.1989, to the extent that they provide
for consideration of
Scheduled Castes/Scheduled Tribes candidates without reference to merit

and the prescribed
"bench mark", are hereby rescinded.
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4. It is clarified that the effect of these instructions is that henceforth

there shall be no separate
standards of evaluation for candidates of the Scheduled Castes/Scheduled
Tribes for promotion,
and assessment of all candidates for this purpose will be with reference to
uniform standards. Any
other instructions of the Govt.,which provide for lower qualifying
marks/lesser standards of
evaluation in matters of promotion for candidates belonging to the
Scheduled Castes/Scheduled
Tribes, may also be treated as having been modified to this extent.
5. These instructions take immediate effect.
6. All Ministries/Departments are also requested to bring these
instructions to the notice of
their Attached/Subordinate Offices and Autonomous Bodies/Public Sector
Undertakings under
their control for compliance.
Sd/(YG Parande)
Director
To:
1. All Ministries/Departments of the Govt. of India
2. Union Public Service Commission, Dholpur House, New Delhi.
3. Staff Selection Commission, CGO Complex, Lodi Road, New Delhi.
4. Deptt. of Economic Affairs (Banking Division), New Delhi.
5. Deptt. of Economic Affairs (Insurance Division), New Delhi.

6. Deptt. of Public Enterprises, New Delhi.
7. National Commission for SC&ST, Lok Nayak Bhavan, New Delhi.
8. National Commission for Backward Classes, Trikoot-I,
Bhikaji Cama Place, RK Puram, New Delhi.
9. Ministry of Welfare, Shastri Bhavan, New Delhi.
***
CHAPTER VI
ANALYSIS AND INTERPRETATION
Statement No. 1
Are you happy working with RINL at VSP ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
YES
50
100%
NO
0%
50
100%
Total
Interpretation
The above tabulation format shows that the 100% employees of VSP are
satisfied with the work with the organization.
Statement No. 2
What are the factors you are happy with RINL at VSP ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
Job security
23
46%
Opportunity to learn
12%
Job satisfaction
16
32%
Pay & perks
10%
50
100
Total
Interpretation
The above tabular format shows that the 46% employees
say that job
satisfaction with the above statement 12% that says that opportunity to learn & 32%
Respondented expressed of job satisfaction and 10% expressed pay & perks of VSP
factors. Employees happy with the organisation.
Statement No. 3
What do you think is the best way to reward your employee ?

Tabulation Format
Sl.No.
1
Rating
Promotion-designation
Respondents
Percentage
36
72%
14
28%
50
100%
wise & pay wise.

2
Reward schemes where

they get recognition &
some amount as gift.
Total
Interpretation
The above table explains that the best way to rewards 72% of employees
opined promotion designation wise and pay wise 28% of employees OK(YES).
Reward schemes where they get recognition and same amount as gift.
Statement No. 4
How do you think that the performance can be improved ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
Training
43
86%
Counseling
14%
Demoting
0%
50
100%
Total
Interpretation
The above table explains that the performance can be improved 86% of
employees
statement.
favoured training. 14% of employees for counselling to the above
Statement No. 5
Is counselling, required to improve performance ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
YES
40
80%
NO
10
20%
50
100%
Total
Interpretation
The above tabular format explains the 80% of the employees suggest that the
counselling required to improve performance 20% of the employees say that
counselling required not improve performance.
Statement No. 6
Should the PROMOTIONS be ?...

Tabulation Format
Sl.No.
Rating
Respondents
Percentage
Time bound
16
32%
Vacancy bound
12%
Time bound at lower
28
56%
50
100%
levels & vacancy bound at

higher levels.
Total
Interpretation
The above tabulation explains that the employees should be PROMOTIONS

according to employees 32% are time bound.,12% vacancy bound and 56% time
bound at lower levels and vacancy bound at higher levels of the above statement.
Statement No. 7
Do you have any reward and promotionpolicies running currently in your

organisation ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
YES
35
70%
NO
15
30%
50
100%
Total
Interpretation
The above table explains that 70% of them say that YES for reward &
promotion policy running currently in the organisation.30% of them say that NO
then reward & promotion policy is not running currently in the organisation.
Statement No. 8
Which are the most successful policies in general ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
Policies are motivating the
42
84%
16%
50
100%
employee.
2
Policies are motivating the

family members of
employee.
Total
Interpretation
The above explains the most successful policies in general 84% of

employees. Policies are motivating the employee.16% employees policies are
motivating the family members of employees.
Statement No. 9
What are the types of REWARDS usually given to the employees ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
Monitory
12
24%
Non- monitory
10%
Both
30
60%
No defined rewards
6%
50
100%
Total
Interpretation
This table explains various types of rewards usually given to the employees .
24% employees monitory. 10% of employees non-monitory. 60% both & 6%
employees NO defined rewards.
Statement No. 10
Has your superior recommended a factor in your getting the promotion ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
YES
41
82%
NO
18%
50
100%
Total
Interpretation
It shows that 82% have favoured for YES promotion.Where as

others have side NO.
Statement No. 11
Is the promotion policy transparent & clearly lide down in your

organisation ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
YES
35
70%
NO
15
30%
50
100%
Total
Interpretation
The above table explains the 70% employees says that the promotion policy
transparent and clearly laid down in your organisation.30% employees says that
promotion policy statement and not clearly down in your organisation.
Statement No. 12
How did you learn about the job at RINL ?
Tabulation Format
Sl.No.
1
Rating
Through a job
Respondents
Percentage
30
60%
6%
17
34%
50
100%
anouncement
2
Follow the
employee
Follow the your

superior
Total
Interpretation
The above table form explains 60% employees say that through job
announcement in the RINL at the job learn about. 6% of them say that follow the
employee with the above statement. 34% of them say that follow the superiorwith the
above statement.
Statement No. 13
Are the HRD programmes being arranged are sufficient for development of
the executives ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
YES
31
62%
NO
19
38%
Total
50
100%
Interpretation
The above tabulation
form explain 62% employees say that the HRD
programmes arranged are sufficient for development of the executives.38% of the

employees says that the HRD programmes are being not arranged are sufficient for
development of the executives.
Statement No. 14
Is experience and years of service taken care for your promotion ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
considered
42
84%
Not-considered
16%
50
100%
Total
Interpretation
The above tabulation form explain 84% of them say considered as the
experience and years of service taken care for the promotion.16% of them says that
not considered by the experience and years of service taken care for the promotion.
Statement No. 15
What is the upper and lower limit. Incase of monitory rewards for
recognition ?
Tabulation Format
Sl.No.
Rating rupees
Respondents
Percentage
Less than 500
14
88 %
More than 500 but
4%
12
24%
less than 1000

3
More than 1000 but

less than 2000
More than 2000

Total
22
44%
50
100%
Interpretation
The above table shows that the employees upper & lower limit incase of
monitory rewards for recognition that 28% of the employees less than 500, 4% of the
employees more than 500 but less than 1000, and 24% of the employees more than
1000 but less than 2000 and 44% of the employees more than 2000.
Statement No. 16
Does training & development improve performance ?

Tabulation Format
Sl.No.
Rating
Respondents
Percentage
YES
50
100%
NO
0%
50
100%
Total
Interpretation
The above table explains 100% of then say that training & development
improve performance.
Statement No. 17
Should there be a policy for de-formation ?
Tabulation Format
Sl.No.
Rating
Respondents
Percentage
YES
35
70%
NO
15
30%
50
100%
Total
Interpretation
The tabular format explains that 70% of them say that YES then policy for
de-formation. 30% of them say that NO then policy for de-formation.
Statement No. 18
Is there a clear laid down promotion policy in your organisationv?

Tabulation Format
Sl.No.
Rating
Respondents
Percentage
YES
37
74%
NO
13
26%
50
100%
Total
Interpretation
The above tabulation form explain that 74% of them says that YES is clear laid
down promotion policy.26% of them say that NO that is not clear laid down
promotion policy.
Statement No. 19
Promotions
are required to keep the morale of the employees

high?.Do you agree ?
Tabulation Format
S. no
Rating
Respondents
Percentage
YES
33
66%
NO
17
34%
50
100%
Total
Interpretation
The above tabulation form explain that 66% of them say that
YES promotion are required to keep the morale of the
employees are high. 34% of them say that NO . promotion
are required to keep the morale of the employees are low.
Statement No. 20
Promotions are necessary to keep the employees with the

organisation ? do you agree?
Tabulation Format
S.NO
Rating
Respondents
Percentage
YES
19
38%
NO
31
62%
Total
50
100%
Interpretation
The above tabulation form explain that 38% of them say

that YESthe Promotions are necessary to keep the employees
with the organisation.62% of them say that not agree
Promotions are necessary to keep the employees with the

organisation.
Statement No. 21
Should performance of the only criteria for promoting

employer ?
Tabulation Format
s.no
Rating respondent Percentage

s
YES
33
66%
NO
17
34%
Total
50
100%
Interpretation

that YES performance be the only criteria for promoting
employer. 34% of them say that NO performance be the only
criteria for promoting employer.
Statement No. 22
Is the laid down promotion policy followed in letter & spirit i.e.,
strictly ?
Tabulation Format
s.no
rating
respondents
percentage
YES
23
46%
NO
27
54%
Total
50
100%
Interpretation

that YES then the laid down promotion policy followed in
letter & spirit . 54% of them say that NO then the laid down
promotion policy followed in letter & spirit strictly.
Statement No. 23
Should seniority be the one and only factor in promoting

employees ?
Tabulation Format
s.no
rating
respondents
percentage
YES
21
42%
NO
29
58%
total
50
100%
Interpretation
The above explains that 42% of them preferred YES them

seniority be the one and only factor in promoting employees.
58% of them say that NO them seniority be the one and only
factor in promoting employees.
Statement No. 24
Should promotions be linked to seccession planning i.e.,future

planning for higher positions?
Tabulation Format
s.no
rating
respondents
percentage
YES
41
82%
NO
18%
Total
50
100%
Interpretation
The above explains that 82% of the say promotion

be linked to planning i.e.,future planning for higher
position.18% of them says that NO then the
promotions be not linked to planning.
Conclusions:
Through the questionnaire survey method for collection of the

primary
data
using
the
simple
random
sample
technique,
some
observations have been made and certain conclusions drawn. It is

observed that 100% employees of VSP are satisfied with the work with the
organization. According to the survey, 46% employees say that they work
for job satisfaction where as 12% says that it is an opportunity to learn &
32% respondents expressed of job satisfaction and 10% expressed pay &
perks of VSP factors.
When asked if they are you happy working with RINL at VSP, is
observed that 100% of the employees of VSP are satisfied with the work
with the organization.
46% employees said that they are happy with the
job satisfaction, 12% with the opportunity to learn & 32% with job
satisfaction and 10% with pay & perks of VSP factors. It is observed that
the best way to reward employees, 72% of employees opined promotion
designation wise and pay wise 28% of employees OK(YES). Reward
schemes where they get recognition and same amount as gift.
It is noted that performance can be improved through training as

86% of employees favoured training and 14% of employees said through
counselling. 80% of the employees suggest that the counselling is
required to improve performance where as 20% of the employees say that
counselling is not required to improve performance.
According to the survey, 32% say that the promotions should be

time bound whereas 12% say that it should be vacancy bound and 56%
say that it should be time bound at lower levels and vacancy bound at
higher levels. 70% of the employees say YES that there is reward &
promotion policy running currently in the organisation and 30% of them
say NO there is no reward & promotion policy running currently in the

organisation.
It has been collected that the most successful policies in general are
that of employees according to 84% of the employees and 16 % of the
employees say that the Policies are motivating the family members of
employees.
The type of rewards given to the employees are according to the

24% of the employees monitory, according to 10% of employees are
non-monitory and according to 60% of the employees - both monetary
and non-monetary and 6% of the employees said that they are NO
defined rewards. 82% of the employees said that their superiors have
recommended in favour of their promotions where as others said NO.
70% of the employees says that the promotion policy is transparent and
clearly laid down in your organisation whereas 30% of the employees says
that promotion policy statement is not clearly down in the organisation.
As regards learning of the job, 60% of the employees said they learn
job through job announcement in the RINL, 6% of them follow the
employee and 34% of them say that they follow the superiors. As regards
the HRD programmes being arranged are sufficient for development of the
executives, 62% employees say Yes and 38% said No. When asked if
experience and years of service taken care for your promotion, e 84% of
them say considered and 16% say not considered.
As regards, the upper & lower limit in case of monitory rewards for
recognition, 28% of the employees say that the limit should be less than
500, 4% of the employees more than 500 but less than 1000, and 24% of
the employees more than 1000 but less than 2000 and 44% of the
employees more than 2000. All the 100% say that training & development
do improve performance.
70% of the employees feel that there should be a policy for depromotion and 30% say no to it. When asked if there is a clear promotion
policy in the organisation, 74% of them says that YES and 26% of them
said NO. 66% of the sample opines that promotions are required to keep
the morale of the employees high and 34% that that it not so. 38% say
that the promotions are required to keep the employees with the
organisation and 62% opine that of it is not so. 66% said that performance
should be the criteria for promotions and 34% said that performance is
not the only factor.
46% of the employees said that the promotion policy is followed in

letter and spirit and 54% said that it is not so. 42% of the sample said that
only seniority should be the criteria for promotions and 58% felt other
wise. A very large percentage i.e., 82% said that the promotions should be
linked with the succession planning of the organisation and only 18% said
other wise.
Suggestions :
In general it is observed that the employees of RINL/Visakhapatnam
Steel Plant are happy working in an organisation like this with a good
stature but there are little suggestions which the organisation may adopt
to make it an even better place to work. Along with good pay and perks
and growth opportunities, it may provide good learning opportunities too.
It looks employees are looking for more training and counsellings which
may be imparted. Schemes for motivating the members of the family of

the employees may also be explored. The promotions should be linked to
seniority as well as merit or performance. It was very much felt that the
promotions should be going along with the succession planning of the
organisation.
QUESTIONNAIRE
I am MS CH.DEEPTHI, a student of SIR C.R.REDDY COLLEGE
FOR WOMEN, ELURU doing my MBA project at RINL/VSP. I
request you to kindly spare your valuable time to give some
feedback on PROMOTION&REWARD POLICIES and the
information provided will be kept confidential and will be used
on for academic purpose.
(CH.DEEPTHI)
Name (optional): ..
Designation
Department ..
Length of the service..

Age
(1)Below 25
(2)26-35
(3)36-45
(4)Above 45
1. Are you happy working with RINL at VSP?
(a) Yes
(b) No
2. What are the factors you are happy with RINL at VSP?
(a) Yes
(b) No
3. What do you think is the best way to REWARD your

employee?
(a)Promotion-designation wise and pay wise
(b)Reward schemes where they get recognition and some
amount as gift
4. How do you think that the performance can be improved?
(a) Training
(b) Counseling
(c) Demoting
5. In counseling required to improve performance?
(a) Yes
(b) No
6. Should the PROMOTIONS be.
(a) Time bound
(b) Vacancy bound
(c) Time bound at lower levels and vacancy bound at

higher levels.
7. Do you have any Reward and promotion policies running
currently in your
organization?
(a) Yes
(b) No
8. Which are the most successful policies in general?

(a) Policies are motivating the employee
(b) Policies are motivating the family members of
employee
9. What are the types of REWARDS usually given to the
employees?
(a)Monetary
(b) Non-monetary
(c) Both
(d) No defined rewards
10. Has your superior recommended a factor in your getting the
promotion?
(a) Yes
(b) No
11. Is the promotion policy transparent and clearly laid down in

your organization?
(a) Yes
(b) No
12. How did you learn about the job at RINL?

(a) Through a job announcement
(b) Follow the employees
(c) Follow the your superior
13. Are the HRD programmes being arranged are sufficient for
development of the executives?
(a) Yes
(b) No
14. Is experience and years of service taken care for your

promotion?
(a) Considered
considered
(b) Not
15. What is the upper and lower limit in case of monetary

rewards for
recognition?
(a) Less than 500
(b) More than 500 but less than 1000
(C) More than 1000 but less than 2000
(d) More than 2000
16. Does training and development improve performance?
(a) Yes
(b) No
17. Should there be a policy for de-formation?

(a) Yes
(b) No
18. Is there a clear laid down promotion policy in your

organization?
(a) Yes
(b) No
19. Promotions are required to keep the moral of the

employees high. Do you agree?
(a) Yes
(b) No
20. Promotions are necessary to keep the employees with the

organization. Do you agree?
(a) Yes
(b) No
21. Should performance be the only criteria for promoting

employer?
(a) Yes
(b) No
22. Is the laid down promotion policy followed in letter and

spirit i.e., strictly?
(a) Yes
(b) No
23. Should seniority be the one and only factor in promoting

employees?
(a) Yes
(b) No
24. Should promotions be linked to secession planning i.e.,

future planning for higher positions?
(a) Yes
(b) No
25. What do you suggest to improve the existing rewards

policies?
(a) ..
(B)..
(C)..
BIBLIOGRAPHY
S. KHANDKHA
K.K.AHUJAS (HRM)
S. CHAND PUBLICATION
KALYANI PUBLISHERS
ARUN MONAPPA& MIRZAS
PERSONAL MANAGEMENT
TATA McGRAWHILL
ASWATHPPA
MANAGEMENT
HRM&PERSONAL
TATA McGRAWHILL
P.SUBBA RAO
HRM&IR
HIMALYA PUBLISHERS
V.S.P.RAO & T.S.NARAYANA RAO
MANAGEMENT
PREMIER BOOK COMPANY
C.B.MAMORIA
S.V.GANKAR
*****

Study On Promotion Policy

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Study On Promotion Policy

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A STUDY ON

WITH REFERENCE TO RINL, VSP

VISHAKAPATNAM STEEL PLANT

In Partial fulfillment for the award of

MASTER OF BUSINESS ADMINISTRATION

Facilitated by HRD Deptt of RINL/VSP

This is to certify that the project done by

CERTIFICATE OF PROJECT GUIDE

This is to certify that the project report

reference to RINL, VSP is a bonfire work done

requirement for the award of Master of Business

guidance & supervision.

I, CH.DEEPTHI, hereby declare that the project report entitled a

The Quest for Knowledge Never Ends, so continuing my journey of

my Project title on A Case Study on

PROMOTION POLICY with

reference to RINL, VSP

suggestion guidance and encouragement to complete the project

Visakhapatnam Steel Plant Ltd.,

Analysis and Interpretation

Promotion of one individual by another individual is a continuous

To measure the satisfaction level of the promotion of VSP at

To analyze the drive towards quality that is integrated into

To find the effectiveness of superior assessment of promotion.

effectiveness specifically from quality perspective.

To find there is a cohesiveness attitude towards each other

To find subordinates can give effective information for

To find there is a room for the internal customer in PAS and

To find 360 degree promotion can improved the promotion in

A sample of 50 respondents were selected at random from

To get information about promotion policy with reference to RINL,

The questionnaire was personally administrated with respondent in

The general information regards organization has been collected

The information relating to the promotion policy has been collected

The study is how ever subjected to certain limitation.

The time is a major limitation. The whole study was conducted

Study is quality perspective has only been qualitative the

3 Appraisals are arranged periodically according to a definite plan.

To create and maintain a satisfactory level of promotion.

To contribute to the employee growth and development through

To help the superiors to have a proper understanding about their

To guide the job changes with the help to continuous ranking.

To facilitate fair and equitable compensation based on promotion.

To facilitate for testing and validating selection tests, interview

To provide information for making decisions regarding lay off,

employee for standard and improved promotion, and suggesting

CONTENT OF PROMOTION POLICY:

Every organization has to decide upon the content to be promoted

Behavior which measure observable physical actions, moments,

Objectives which measure job related results like amount of

Traits which are measured in terms of personal characteristics

Contents to be promoted for an officers job:

Self-expression: Written and Oral

Ability to work with others

Leadership styles and abilities

Technical ability / knowledge

Ability to Grasp new things

Originality and resourcefulness

Capability for Assuming Responsibility

Level of Acceptance by Subordinates

Fig: An Assessment Centre Model

Fig: Key Elements of

HUMAN RESOURCES DEVELOPMENT: