HUMAN RESOURCE MANAGEMENT GROUP 5

TATA STEEL- A CENTURY OF CSR

-ANKIT AGARWAL
-ADITYA VIKRAM VAID
-RAHUL KUMAR
-SAJIL SATYANATHAN
-SNEHAL MENDHE
-SUJOY SENGUPTA
-ZIYAUDDIN KHAN
CONTENT

• HISTORY OF TATA STEEL

• EMPLOYEE RELATION
• BENEFITS OF EMPLOYEE RELATION
• CSR-AN INTEGRAL PART
• MANAGEMENT FOCUS
• CHANGING STRATEGY
• TATA STEEL IN TODAY’S TIME
 License Raj, eccentricities in
legislation, inferior quality by
Raised sufficient capital competitors were the main concerns JOURNEY
through equity in Bombay OF TATA
STEEL
1970
1907

1924
1906
Britons favoring own goods, post
world war 1 scenario, falling prices,
Initial share offering
transportation difficulties,
received a lukewarm
earthquake in Japan (main customer)
response in London
brought to the verge of closure
2001
1991
EVA
Construction of cold rolling mill,
refined and higher margin steel
products, cost reduction
methods, reduction in
employees, decision to cap
community expenditure
 VARIOUS EMPLOYEE RELATION SCHEMES
PRESENT VISION
Implemented by Enforced by
We aspire to be the global EMPLOYEE
Sl No. Labour Welfare Schemes Tata Steel in the law in the
steel industry benchmark RELATIONS
year year
for Value Creation and
1 Eight hour shift 1912 1948
Corporate Citizenship.
2 Free medical aid 1915 1948
Establishment of welfare
3 1917 1948
MISSION department
• Consistent with the vision Complaints regarding service
4 1919 1947
conditions handling department
and values of the founder
Jamsetji Tata 5 Leave with pay 1920 1948
• Tata Steel strives to
6 Worker's provident fund scheme 1920 1924
strengthen India’s industrial
base through effective 7 Technical institute for training 1921 1961
utilization of staff and
materials 8 Maternity benefit 1928 1946
• The means envisaged to
9 Profit sharing bonus 1934 1965
achieve this are best
technology and high 10 Retiring gratuity 1937 1972
productivity, consistent
with modern management
practices
 EMPLOYEE RELATIONS

 Introduced welfare schemes even before they were mandated by the government of India BENEFITS
 In 1956, the management signed a joint consultation agreement with the worker that formed OF
EMPLOYEE
the Joint Department Councils(JDCs) RELATION
 JDCs to tackle issues of working conditions, environment, safety and workers
 Employees had a sense of ownership
 Low attrition rate

CONSEQUENCES OF EMPLOYEE RELATIONS

• Not a single strike against the management of Tata Steel since 1928
• During the 1975 emergency, when the national union announced strike, the TATA worker’s
union refused to join the strike. The management and workers charged the protestors of
national union who were blocking the incoming shipments of TATA Steel
• When the coal sector was being nationalized in 1971, TATA mines were spared. They were
preserved as a benchmark
• The workers union went against the idea of nationalization of TATA Steel in 1977
 COMMUNITY BUILDING

 The city of Jamshedpur was selected on the basis of raw material and water CSR-AN
availability INTEGRAL
 TATA Steel Formalized the ‘Town Division’ PART

 Responsible for constructing and maintaining water works, highway systems,

bridges and public transportation and emergency systems
 Educational and medical facilities made available to residents
 Senior managers were delegated to execute the responsibilities of Town
Division
 Tata Steel also worked for the development of areas near Jamshedpur
 Establishment of Tata Steel Rural Development Society to assist 600 villages:
Accessible health care, enhanced income generation for communities and
empowerment of rural population
 Self help groups for women
 Green efforts and Reforestation to make the area cleaner and greener
 KEY ENVIRONMENTAL FACTORS
Political and Socio- MANAGE
Economical Technological Global Demographic
Legal Cultural MENT
Change in Population
FOCUS
US Anti –
Nationalization of On the verge of Technology- Cold shifting from Workforce
Dumping Act,
Coal closure in 1924 Rolling Process for Rural to Urban Mentality
Trade balance
steel making areas
Employee
MRTP Trade International Vertical EU and Steel Infrastructure
Participati
Enforcement Trade balance integration Exports Development
on
Custom tariffs on % Share of
Stringent HSE Quality % increase in
Imports 200% International Unions
norms Management population
rising players rising

Demand for steel

Organized Sector- production-due to Joint-ventures
47% Workforce on automobile across the
strike industry and globe
Infrastructure

Right to open new Markets

plants evolvement
 SL AMOUNT SPENT
CSR PROJECTS
NO. (INR CRORES)
1 Eradicating hunger, poverty and malnutrition 1.65
CSR PROJECTS 2
Promoting health care including preventive
Healthcare
82.34

3 Making Available safe Drinking Water 18.31

4 Sanitation 2.14
5 Promotion of education including special education 29.93
Average net profit of the company for the
Employment enhancing Vocational skills especially to Women,
6 12.28
last 3 financial years: Rs 7518 crores Children, Differently abled

Prescribed CSR expenditure: Rs 150 Crores 7 Livelihood enhancement projects 14.64

Amount actually spent: Rs 204 Crores 8 Promoting gender equality and empowering women 0.03

9 Reducing inequalities faced by socially and economically backward 0.35

groups

Environmental sustainability,protection of flora &

States and cities served 10 fauna,agro forestry,animal welfare, resource
conservation, maintaining quality of soil, air, water
3.27

1. Jharkand: East Singhbhum, West

11 Promotion and development of traditional arts and handicrafts 0.41
Singhbhum, Ranchi, Dhanbad, Ramgarh
2. Odisha: Ganjam, Jajpur, Kendujhar, 12
Protection and restoration of national heritage, Promotion of art,
4.95
culture, handicrafts,setting up public libraries etc
Sundargarh
3. Chattisgarh: Jagdalpur 13
Promotion of Rural, Nationally recognised,
Paralympic and Olympic sports especially training
5.99

Setting up homes, hostels,old age homes, day care centres for

14 0.43
women, orphan,elderly

15 Rural development projects (infrastructure and developments) 18

Source: http://www.tatasteel.com (Annual report on
Corporate Social Responsibility Activities) 16 Overheads 9.74
 GROWING CHALLENGES Competitors
 Global level of steel production above demand
 Anti dumping laws by US has affected exports CHANGING
 In 2000, European union asked Steel Exporters STRATEGY
forum of India to cut down exports by 60%
 International customer is becoming more
quality and price centric. Do not value the
brand much
 Changing ownership structure and disbursing
of shares Steel Imported from China, Japan etc

Saleable Steel in million MT

5.98
Community Service is just a cost centre for TATA Steel.
In this competitive global scenario, is it worth it?
2016-17
Community service v/s. Shareholder value??

101
Tata Steel Total
 TATA Steel through their community services created benefits for
TATA
themselves in the form of
STEEL IN
• Employee support
TODAY’S
• Indian public holding a large proportion of TATA’s share
TIME

• To adapt to new buyer’s market and

• Target to increase the
efficiency & cost effectiveness
increased influence of international
capital
EVA
of social expenditure
• Alteration in delivery system of
its services
• Only change in the cost structure
and not in the benefits being offered +
• Increase in shareholder’s dividends
• Outsourcing of electricity
services, water distribution
can bring improvement in their
social welfare
Community
•
etc.
Absorption of community
• Competition in the industry entails
increased focus on shareholder’s
Benefits
services in the EVA campaign
wealth

Profitable and socially responsible

THANK YOU!