INTERNSHIP REPORT ON

A case study ON VSP with reference to

recruitment
By
K.MEGHANA DASARI
REG NO: 13MB5318
In partial fulfillment of the requirement
For award
Of
MBA(2013-15)
IN
HUMAN RESOURCE MANAGEMENT
August, 2014

ISBR-B-SCHOOL,ELECTRONIC CITY,
BANGALORE-560100
CERTIFICATE

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

of MBA has successfully completed his project on in partial fulfillment
for the award of degree of MBA during the academic session 201315.The study report has been approved as it satisfies the academic
requirements prescribed for the said degree.

Faculty and Internal Guide

Signature of HOD

(Prof. KAVITHA R GOWDA)

DECLARATION
I, K Meghana Dasari , Roll no 13MB5318, student of MBA(Batch 20132015) of ISBR Business School, Bangalore hereby declare that the
research report on A CASE STUDY ON VSP WITH REFERENCE TO
RECRUITMENT, is an original and authenticated work done by me. I
further declare that it has not been submitted elsewhere by any other
person in any of the University for the Award of any degree or diploma.

Date:

(K.Meghana Dasari)

ACKNOWLEDGEMENT
The gratification and elation of this project will be incomplete without
mentioning all the people who helped me to make it possible, whose guidance
and encouragement were valuable to me.
I would like to thank each and every employees of VISAKHAPATNAM STEEL
PLANT who has directly or indirectly helped me in carrying out this project.
I take this opportunity to express my heartfelt thanks to my project guide
Mr.Y.BALAJI, DGM (HRD) of VISAKHAPATNAM STEEL PLANT for his
constant moral support, guidance and suggestions during the progress of my
project. I am so thankful to the VISAKHAPATNAM STEEL PLANT, for
giving me an opportunity to undertake my project work.
I want to express my sincere thanks to my Guide Mr.N.V.V.L.N.MURTHY,
AGM, PERSONNEL DEPT. for his support and valuable guidance in successful
completion of my project work.
My special thanks to Mr.O.R.M.RAO, AGM (MD) of VISAKHAPATNAM
STEEL PLANT, for his valuable suggestions and co-operation throughout the
project work.

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

ISBR for her kind guidance and helpful suggestions in every stage of this project.
This project would not have been successful without her help.

(K.MeghanaDasari)

CONTENTS

Sr. No.

Particulars

Page No.

Title Page

Declaration

Acknowledgement

Executive Summary

Chapter I
Introduction
i) Company Profile
ii) Industry Profile
iii) SWOT analysis

10
36
45

Chapter II
i) Importance of study
ii) Research methodology

51
52

Chapter III
Department study

54

Chapter IV
i)
ii)
iii)
iv)

Observations
Suggestions
Limitations
Conclusion

89
104
110
113

Appendix
i) Bibliography

114

EXECUTIVE
SUMMARY

Two of the most critical activities within the human resources (HR) domain are
recruiting and staffing. This involves identifying and attracting the right people to fill
positions, ranging from upper management and key decision-maker roles to entrylevel personnel. Finding the right person for each position and doing so in a costeffective and timely manner is a challenge for any organization, but it is becoming
especially difficult for public sector entities. Public sector organizations often are at a
disadvantage when compared to the private sector in recruiting and staffing processes.
The private sector typically outmatches the public sector on compensation, including
bonuses and various other perks, such as stock options.
Public sector organizations also often find themselves competing against not only
private companies, but each other, in attracting potential employees. Smaller
organizations in more isolated regions of the country, for example, find that multiple
jurisdictions often compete over the same diminishing applicant pool and, in turn,
drive up compensation costs across the region. These factors have forced many public
sector organizations to develop creative strategies and solutions for recruiting and
staffing. Many organizations report positive overall outcomes from temporary
workers transitioning to permanent employees. Other organizations are improving
their visibility by developing a branding strategy complete with consistent messaging
and marketing. Finally, organizations are tapping into professional and cultural
networks to reach individuals with specialized skill sets and increase the overall
diversity of their workforce. Various new approaches are proving successful, and
these models demonstrate great potential for public sector HR. At the same time,
some of the strategies described here are just the starting point for organizations
overhauling recruiting or staffing efforts. HR continues to struggle with gathering data
and measuring performance, both important steps in efforts to transform HR
operations or utilize alternative models like shared services and outsourcing.
Information technology (IT) is an important enabling tool for recruiting and staffing,
but overall use of IT remains limited, and even the most advanced systems are not
being used to their full potential.

CHAPTER -I
INTRODUCTION
Company profile
Industry profile
SWOT analysis

INTRODUCTION
Steel comprises one of the most important inputs in all sectors of economy. Economy
of any country depends on the strong base of the iron and steel industry. Steel is a
versatile material with multitude of useful properties, making indispensable for
furthering and achieving continual growth of the economy be it construction,
manufacturing infrastructure or consumables. The level of the steel consumption has
long been regarded as an index of industrialization and economic maturity attained by
country.
Keeping in view the importance of steel the integrated steel plant with foreign
collaboration was setup in the public sector in the post independence era. The growth
of any organization depends on the overall performance such as human resource
management, productions, marketing resources and financial performance of the
organization. The growth of any organization can be judged by the growth of the
employee reflecting the performance of organization in larger scale. Vital aspect of
HRM because the performance of an individual in an organization is largely driven by
the work atmosphere or work culture that prevails at the workplace. A good working
condition is one of the benefits that the employees can expect from an efficient human
resource team. A safe, clean and healthy environment can bring out the best in an
employee.
An organization cannot build a good team of working professionals without good
Human Resources. The key functions of the Human Resources Management (HRM)
team include recruiting people, training them, performance appraisals, motivating
employees as well as workplace communication, workplace safety, and much more.

10

COMPANY PROFILE
Introduction
Vision
Mission
Objectives, Policies
Introduction to various
departments.

11

PROFILE OF VISAKHAPATNAM STEEL

PLANT
Visakhapatnam Steel Plant, popularly known as vizag Steel, is one of the major steel
producers in India. Visakhapatnam steel plant the first coast based steel plant of
India is located 16 km south west of city of destiny i.e., Visakhapatnam Bestowed
with modern technologies, VSP has an installed capacity of 7.3 million tons per
annum of liquid steel and 6.773 million tones of saleable steel. At VSP there is
emphasis on total automation, seamless integration and efficient up gradations which
results in wide range of long and structural products to meet stringent demands of
discerning customers with in India and abroad.

VSP products meet exacting

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

VSP has become the first integrated steel plant in the country to be certified to all the
three international standards for quality (ISO-9001) for environment management
(ISO-14001), for Occupational Health & Safety (OHSAS-18001). The certificate
covers quality system of all operational, maintenance and service units besides
purchase system, training and marketing functions spreading over 4 regional
marketing offices, 24 branch offices and stock yard located all over the country.
VSP successfully installing and operating efficiently Rs460 crores worth of pollution
control and environment control equipments and converting the barren landscape by
planting more than 3 million plants has made the steel plant, steel township and
surrounding areas into a heaven of lush greenery.
Steel occupies the foremost place amongst the materials in use today and pervades all
walks of life. All the key discoveries of human genius for instance steam engine,
railway means of communication and connection, automobile, aero place and
computer, are in one way or together with steel and with its sagacious and
multifarious application. Steel is a versatile material with multitude of useful
properties making it indispensable for furthering and achieving continual growth of
the economy be it construction, manufacturing, infrastructure or consumables. The
level of steel consumption has long been regarded as an index of industrialization and
12

economic maturity attained by a country. Keeping in view the importance of steel, the
following integrated steel plants with foreign collaboration were set up in the public
sector in the post independence era:

Sl. No

Steel plant

Collaborated by

Durgapur steel plant

Britain

Bhilai steel plant

Erstwhile USSR

Bokaro steel Plant

Erstwhile USSR

Rourkela steel plant

Germany

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 17th April, 1970 by the Prime Minister of India
Smt.Indira Gandhi.
A site was selected near Balacheruvu creek near Visakhapatnam city by a committee
set up for the purpose, keeping in view the topographical features, greater availability
of land and proximity to a future port. Smt.Indira Gandhi laid the foundation stone for
the plant on 20th January 1971.
Seeds were thus sown for the construction of a modern & sophisticated steel plant
having annual capacity of 3.4 million tons of hot metal. An agreement was signed
between Government of India and the erstwhile USSR on June 12th 1979 for setting
up of an integrated steel plant to produce structural & long products on the basis of
detailed project report prepared by M/s M.N. Dustur& company. A comprehensive
received DPR jointly prepared by soviets & M/s Dustur& company was submitted in
Nov 1980 to Government of India.
The construction of the plant started on 1st Feb 1982. Government of India on 18th Feb
1982 formed a new company called Rashtriya Ispat Nigam Ltd. (RINL) and
transferred the responsibility of construction, commissioning & operating the plant at
Visakhapatnam from steel authority of India Ltd to RINL.
To meet growing domestic needs of steel, Government of India decide to setup an
integrated steel plant at Visakhapatnam, an agreement was signed with erstwhile
13

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

Visakhapatnam.
It can be seem from the above table, during the year 2002-03, the company turned
around by earned a net profit of Rs 521 crores.
In the same year, it bagged the PRIME MINISTER TROPHY for its excellent
performance in the steel industry. In September 2003, RINL became a DEBT FREE
COMPANY.
Since Commission VSP has already crossed many mile stones in the fields of
production, productivity & exports. Coke rate of the order of 509 Kg/Ton of Hot
metal, average converter life of 2864 heats an average of 23.6 heats per sequence in
continuous Bloom Caster. Specific energy consumption of 6.07 G Kale/ton of liquid
steel, a specific refractory consumption of 8.94 kg and a labor productivity of 265
Ton/man year are some of the peaks achieved (during the year 2004-05) in pursuit of
excellence.

Board of Directors:

BOARD OF DIRECTORS
CHAIRMAN-CUM-MANAGING
DIRECTOR

SHRI. P. MADHUSUDAN

DIRECTOR (PERSONNEL)

Dr.G.B.S.PRASAD

DIRECTOR (COMMERCIAL)

SRI. T.K. CHAND

DIRECTOR (OPERATIONS)

SRI. D.N.RAO

DIRECTOR (FINANCE)

SRI T.V.S.KRISHNA KUMAR

DIRECTOR (PROJECTS)

SRI P.C MAHAPATRA

CVO

SRI .SIDDARTHA KUMAR

GM(CA) & COMPANY

SECRETARY

SRI P MOHAN RAO

14

VISION, MISSION & OBJECTIVES

Vision:
To be a continuously growing world class company
We shall

Harness our growth potential and sustain profitable growth.

Deliver high quality and cost competitive products and be the first choice of
customers.

Create an inspiring work environment to unleash the creative energy of

people.

Achieve excellence in enterprise management.

Be respected corporate citizen, ensure clean and green environment and

develop vibrant communities around us.

Mission:
To attain 20 million ton liquid steel capacity through technological up-gradation,
operational efficiency and expansion; augmentation of assured

supply of raw

materials to produce steel at international standards of cost and quality; and to meet
the aspirations of the stakeholder.
Objectives:

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

expand further in subsequent phases as per the corporate plan.

Revamp existing Blast Furnaces to make them energy efficient to

contemporary levels and in the process increase their capacity by 0.5 Mt each,
thus total hot metal capacity to 7.5 Mt. by 2015-16.

Achieve higher levels of customer satisfaction.

Vibrant work culture in the organization.

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

addressing social concerns

Core Values:

Commitment

Customer Satisfaction

Continuous Improvement
15

Concern for Environment, Creativity & Innovation

VSP POLICIES
VSP takes all necessary actions for the fulfillment of regulatory requirements. It has
dedicated departments for this purpose. Energy conservation, environmental
preservation, safety in work place, and occupational health gets highest priority in the
company. Some of the policies in this regard are reproduced below.

Quality Policy:

Supply quality goods and services to customers delight.

Document, Implement, Maintain and periodically review the management

systems including the policy, Objectives and targets.

Focus on conservation of natural resources and energy with concern for

Environment.

Comply with all relevant legal, regulatory and other requirements applicable
to products, activities and processes in respect of Quality, Safety,
Occupational Health & Environment, and also ensure the same by contractors.

Use resources efficiently and reduce waste & prevent pollution.

Continually improve Quality, Safety, and Occupational Health & Environment

performance.

Encourage development and involvement of employees.

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

consciousness amongst employees and contract workers by imparting
Educational & Training.

Energy Policy:

Document, implement, maintain and periodically review the energy

management system including the policy, objectives and targets.

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

among all.

16

Support the purchase of energy efficient products and services and ensure
energy performance improvement in the design of new facilities as well as up
gradation of existing facilities.

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

HR Policy:

Provide work environment that makes the employees committed and

motivated for maximizing productivity

Establish systems for maintaining transparency, fairness and equality in

dealing the employees

Empower employees for enhancing commitment, responsibility and

accountability

Encourage teamwork, creativity, innovativeness and high achievement

orientation

Provide growth and opportunities for developing skill and knowledge

Ensure functioning of effective communication channels with employees

Customer Policy:

VSP will strive to meet more than the Customer needs and expectations
pertaining to Products, Quality, Value for Money and Satisfaction

VSP greatly values its relationship with Customers and would make efforts at
strengthening these relations for mutual benefit

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

IT Policy:

Follow best practices in Process Automation & Business Processes through IT

by in-house efforts / outsourcing and collaborative efforts with other
organizations / expert groups / institutions of higher learning, etc, thus
ensuring the qualityof product and services at least cost

Follow scientific and structured methodology in the software and other IT

infrastructure and ensure high levels of data and information software
development processes with total
17

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

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

role and responsibilities of the personnel and facilitate the
objective of becoming a world-class business organization.

Enrich the skill-set and knowledge base of all related personnel at regular
intervals to make employees knowledge-employees

Periodically monitor the IT investments made and achievements accrued to

review their cost effectiveness

HRD Policy:
To create an organizational culture this nurtures employees potential for the
prosperity of the organization:

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

necessary training and continually evaluate and monitor the effectiveness of
the training so the quality o the training also gets upgraded.

Provide inputs to the employees for developing their attitude towards work
and for matching their competencies with the organizational requirements.

Create an environment of learning and knowledge sharing by providing the

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

Facilitate the employees for continuous development of their knowledge base

skills, efficiency, innovativeness, self-expression and behavior so that they
contribute positively with commitment for the growth and prosperity of the
organization while maintaining a high level of motivation and satisfaction.

Prepare employees through appropriate development programs for taking up

higher responsibilities in the organization.

Fulfill social obligations by providing training to the students of educational

institutions and to the trainees of the organizations.

VSP Technology: State-of-the-Art:

7 meter tall Coke Oven Batteries with coke dry quenching

Biggest Blast Furnaces in the country

Bell-less top charging system in Blast Furnace

100% slag granulation at the BF Cast House

Suppressed combustion LD gas recovery system

18

100% continuous casting of liquid steel

Tempcore and Stelmor cooling process in LMMM & WRM respectively

Extensive waste heat recovery systems

Comprehensive pollution control measures

Main Products of VSP:

Steel products:
1)
2)
3)
4)
5)
6)
7)
8)
9)

Angles
Billets
Channels
zBeams
Squares
Flats
Rounds
Re-bars
Wire Rods

10)Nut Coke
11)coal tar
12)Anthracene oil
13)HP Naphthalene
14)Benzene
15)Toulene
16)Zylene
17) Wash oil

By-products:
1) Granulated Slag
2) Lime Fines
3) Ammonium Sulphate
Major Sources of Raw Materials:

Raw Material

Source

Iron Ore Lumps & Fines

Bailadilla, MP

BF Lime Stone

Jaggayyapeta, AP

SMS Lime Stone

UAE

BF Dolomite

Madharam, AP

SMS Dolomite

Madharam, AP

Manganese Ore

Chipurupalli, AP

Boiler Coal

Talcher, Orissa

Coking Coal

Australia

Medium Coking Coal (MCC)

Gidi/Swang/Rajarappa/Kargali

19

Table No. 1.1 Major Units:

Department

Annual Capacity

Units (3.0 MT Stage)

(000 T)

Coke

2,261

4 Batteries of 67 Ovens & 7 Mtrs. Height

5,256

2 Sinter machines of 312 Sq. Mtr. Grate area

Ovens

Sinter
Plant

each

Blast

3,400

2 Furnaces of 3200 Cu. Mtr. Volume each

3,000

3 LD Convertors each of 133 Cu. Mtr.

Furnace

Steel Melt
Shop

Volume and six 4 strand bloom casters

LMMM

710

4 stand finishing Mill

WRM

850

2 x 10 stand finishing Mill

MMSM

850

stand finishing Mill

Table 1.2 Production Performance (000 Tons):

Labor
Year

Hot

Liquid

Saleable

Metal

Steel

Steel

2006-2007

4,046

3,606

3,205

413

2007-2008

3,913

3,322

3,210

389

2008-2009

3,546

3,145

3,080

359

2009-2010

3900

3399

3,080

361

2010-2011

3830

3424

3100

339

20

Productivity
(Tons/man year)

2011-2012

3778

3410

3467

340

2012-2013

3998

3456

3467

363

30,000

25,000
2012-2013
20,000

2011-2012
2010-2011

15,000

2009-2010
2008-2009

10,000

2007-2008
2006-2007

5,000

0
Hot Metal

Labor Productivity
(Tons/man year)

Table 1.3 Commercial Performance (Rs. Crs.):

Year

Sales Turnover

Domestic Sales

Exports

2006-2007

9,131

8,487

4243

2007-2008

10,433

9,878

55473

2008-2009

10,411

10,333

7832

2009-2010

10635

10284

35094

2010-2011

11517

11094

42247

2011-2012

14462

13490

41519

12954

59,807

2012-2013

13552

21

Table 1.4 FINANCIAL PERFORMANCE (.Crs)

Year

Gross Margin

Cash Profit

Net Profit

2005-2006

2369

2337

1252

2006-2007

2632

2583

1363

2007-2008

3515

3483

1942

2008-2009

2356

2267

1335

2009-2010

1602

1524

796

2010-2011

1412

1247

658

2011-2012

1645

1454

751

2012-2013

1072

713

352

4000
2005-2006

3000

2006-2007
2007-2008

2000

2008-2009
2009-2010

1000

2010-2011
2011-2012

0
Gross
Margin

Cash
Profit

1FINANCIAL PERFORMANCE

22

Net Profit

2012-2013

Major Sources of Raw Materials:

Raw Material

Source

Iron Ore Lumps & Fines

Bailadilla, MP

BF Lime Stone

Jaggayyapeta, AP

SMS Lime Stone

UAE

BF Dolomite

Madharam, AP

SMS Dolomite

Madharam, AP

Manganese Ore

Chipurupalli, AP

Boiler Coal

Talcher, Orissa

Coking Coal

Australia

Medium Coking Coal (MCC)

Gidi/Swang/Rajarappa/Kargali

Table 1.5 Major Unit sof raw materials

Department

Annual Capacity

Units (3.0 MT Stage)

(000 T)

Coke Ovens

2,261

4 Batteries of 67 Ovens & 7 Mtrs. Height

Sinter Plant

5,256

2 Sinter machines of 312 Sq. Mtr. Grate area

each

Blast Furnace

3,400

2 Furnaces of 3200 Cu. Mtr. Volume each

Steel Melt

3,000

3 LD Convertors each of 133 Cu. Mtr. Volume

Shop

and six 4 strand bloom casters

LMMM

710

4 stand finishing Mill

WRM

850

2 x 10 stand finishing Mill

MMSM

850

6 stand finishing Mill

23

Man Power as on 01-03-2014:

Particulars

Works

Projects

Mines

Others

Total

4250

421

117

1511

6299

11016

48

221

800

12085

Total

18384

Executives
Non
Executives

Introduction to Different Departments:

Company Affairs Department:
It is concerned with following functions:
1) Conducting of various Meetings as mentioned below:

Board of Directors

Committee of Management

Annual General/Extraordinary General Meetings

Annual General Meeting

Extraordinary General Meeting

Audit Committee

Technology Improvement and Bench Marking Committee

High Power Steering Committee(HPSC)

Committee for Award of Contracts relating to Project Expansion Contracts

Committee for Award of Contracts (CAC)

2) Delegation of Powers
3) Other Activities
Corporate Strategic Management:

Visioning & Corporate Planning Exercise

Annual Sustainability Plan & Five year Roll-On Plan

Annual Memorandum of Understanding (MOU) with Ministry of Steel

Monthly & Quarterly Reviews of above plans with Management

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

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

& diversification options

24

Enterprise Risk Management (ERM)

Promotion of Business Excellence concepts through

1) Project Utkarsh Initiatives
2) Knowledge Management system-GNANA
3) Corporate Awards
CSM acts as a nodal agency for co-ordination with Department of Public-Enterprise
(OPE), Ministry of Steel(MOS) and Ministry of Statistics &Programme
Implementation (MOSPI) for dissemination of critical information as required.

Finance and Accounts Department:

Finance & Accounts functions centre around arranging the Finances, facilitating and
accounting the operations and compliance with various statutes. Finance function is
general discipline having universal application. As such, it has its role in all forms and
types of business i.e., from a sole trader to the joint Stock companies, whether it is
Indian or Multi-National Company. The function encompasses broadly, Finance,
Accounting, MIS, Audit, and taxation areas. Function covers the areas of raising of
Finances viz., Capital, loans and servicing thereof. Finance also covers the areas of
controls viz., Budgetary Control and Cost Control.
Accounting deals with recording of daily transactions, compilation of Annual
Accounts and their audit by various agencies, viz, statutory Auditors appointed under
the Companies Act, Audit by Controller & Auditor General of India in case of
Government Companies, Internal Audits and special Audits.

Training & Development:

The needs of induction training, skill up gradation, unit training, computer related
training, refresher training, foreign training, faculty development etc, are attended by
the Training & Development Centre while management development and attitudinal
development are taken care at the Centre for HRD.
Training in certain specialized areas like safety, fire prevention, occupational health
etc. is also taken up by departments specializing in respective fields.

Conduct Training:Once the trainer is identified then the dates should be fixed for the training program
and it should be conducted. The trainer may use various techniques to train the
employees i.e. either by classroom method or demonstration method or slide showing
method or training the employees on the equipment and many more techniques can be
25

used by the trainer. In this way by following either all the above said methods or by
following any one the trainer can train the trainees.

Implementing of the Learned Skills:Once the training is completed then comes the stage of implementation where the
employees implement their newly learnt skills at their respective jobs. Whatever the
employees learnt in the training may be difficult to implement but by following the
techniques taught to them at the training they can easily implement their skills. The
implementation is done under the follow up action of the trainer.

Assessment Test:An Assessment test is conducted at the end to know the knowledge gained by the
employees and how far they are able to recollect the learned material. This test would
give the result of how much knowledge employee gained by the training and what
score he gained in the test and as well it helps in knowing the performance level of the
employee.

If not Assessed then Retrain:If at last the employee has not qualified the test then it means that the employee has to
be retrained so that he gains the required skill. In this way assessment test helps in
knowing the knowledge gained by the employee.
In this way On the Job Training carries all the above steps, which should be
conducted sequentially so that the training is given successfully.

Production Facilities:
The production facilities in the RINL are most modern amongst the steel industry in
the country. The know-how and the technology have been acquired from different
parts of the world from the reputed/established manufacturers.
Some of the production facilities in RINL are:

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

Base Mix Yard for sinter plant introduced for the first time in the country
helps in excellent blending of the faced material to sinter machine and
production of consistent good quality sinter.

26

3200 cubic meter two blast furnaces i.e., Godavari and Krishna with bell less
top charging equipment and 100% cast house slag granulation, the biggest to
be setup in the country have done away either the conventional bell charging
system.

100% continuous costing of liquid steel into blooms resulted in lowest losses
and better quality of blooms.

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

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

Medium Merchant and Structure Mill (MMSM)

The operations of blast furnace, steel melting shop and rolling mills have been
entirely computerized to ensure consistent quality and efficient performance.

Marketing Network:
VSP has a wide network of Regional Offices and Branch Offices spread across the
country for marketing of its products. There are 5 Regional Offices and 23 Branch
Offices. Stock Yards are attached to each of the Branches. These are catering to the
needs and expectations of the customers in various segments. The details of Regional
Offices and Branch Offices are brought out below:

Region

Location of Regional

Branches

Office
East

Kolkata

Bhubaneswar, Kolkata, Patna

North

Delhi

Agra, Chandigarh, Dehradun,

Delhi, Faridabad, Ghaziabad,
Jaipur, Kanpur, Ludhiana

West

Mumbai

Ahmedabad, Indore, Mumbai,

Nagpur, Pune

South

Chennai

Bangalore,

Chennai,

Kochi,

Coimbatore
Andhra

Visakhapatnam

Hyderabad, Visakhapatnam

27

Personnel Department:
One of the primary objectives of Organizations is to develop a well- knit personnel
policy and comprehensive personnel systems that are result-oriented and to develop
an organizational culture which motivates employees to contribute their best towards
the achievement of organizational objectives. In accordance with this objective, VSP
has given considerable emphasis on development of human resources, as well as
formulation and implementation of progressive personnel policies, systems, rules and
procedures with an objective to synchronies organizational needs with organizational
needs with individual aspirations. Since inception, VSP has held emphasis on
effective man management as it subscribes to the belief that effectiveness and success
of the organization depend largely on the skills and commitment of the people.
The rigorous and systematic approach to recruitment- from fresh candidates her
upwards-training, promotions and rewards have all helped to meet the aspiring needs
of the individual and thereby the goals of the organization.
VSP has developed a comprehensive scheme of career planning and managerial
succession. In the field of industrial relations, VSP encourages a participative
approach. A career with VSP will mark the beginning a quest for advancement. VSP
is a fast expanding organization and provides ample opportunities for a rapid career
growth in the area where aptitude lies.

28

Organizational Chart (Personnel Directorate):

Directorate (Personnel)

ED (P&IR)

GM (P)-Works

ED (P&CS)

GM (P)-Non
Works

GM (CP&C)

GM (Law liaison)
officer SC&ST

GM(Training & HRD)

GM (TA)
GM (MS)
GM (M & HS)
DGM (Admn) & Liaison I/C

Pollution Control Measures adopted in VSP:

Generally, integrated steel plant is seen as a major contributor to environmental
pollution as it discharges volumes of waste products. Elaborate measures have been
adopted to combat air and water pollution in VSP has planted more than 3.4 million
trees over an area of 35 Sq. Kms. And incorporated various technologies at a cost of
Rs.460 Crores towards pollution control measures.

Sources of Funds:
VSP raise its working capital from of 10 Bankers. The following are the 10 banks
where funds for finance are raised.
State Bank of India (SBI)
Canara Bank
29

 UCO Bank
Bank of Baroda
Andhra Bank
State Bank of Hyderabad
Allahabad Bank.
HSBC
Industrial Development Bank of India (IDBI)
Indian Overseas Bank (IOB)
Achievements & Awards:
The efforts of VSP have been recognized in various fora. Some of the major awards
received by VSP are in the area of energy conservation, environment protection,
safety, quality, Quality Circles, Rajbhasha, MOU, sports related awards and a number
of awards at the individual level.
Some of the important awards received by VSP are indicated below:
Award

Purpose

Year

Excellence Award by Institute of

Economic Studies

For excellent performance in

Steel industry

2014

Corporate Vigilance Excellence

Award 2013-14

Outstanding initiatives in
vigilance arena

2014

For implementation of the

Official language of Hindi.

2014

Recognition by ICAI

2014

Recognition for Corporate

Leaders

2014

Significant Achievement in CII

EXIM Bank Award for Business
Excellence 2013

Overall Excellence in all

activities of the company

2013

Vishwakarma Awards VishwakarmaRashtriyaPuraskar)

for 12 employees

Innovative suggestions for higher

efficiency, productivity & process
improvements

2013

Hindi Award - HINDI

SALAHKAR SAMITI Of Ministry
Of Steel
"ICON OF THE YEAR AWARD
2014" TO SRI P
MADHUSUDAN, CMD- RINL
"GREATEST CORPORATE
LEADERS OF INDIA AWARD"
TO SRI P MADHUSUDAN,
CMD- RINL

First prize of prestigious Indira

Gandhi Rajbhasha Shield

For effective implementation of

Official Language
30

2013

Award for Second best House

Magazine in Hindi 'Sugandh'

For excellence in House

Magazine in Hindi 'Sugandh

2013

Cost Management Excellence

Award by Institute of Cost
Accountants of India , New Delhi

For excellence in Cost

Management

2013

National Vigilance Excellence

Award by Vigilance Study Circle

. For eminent professionals in the

field of Vigilance

ICC Corporate Governance and

Sustainability Vision Award 2013
CII-ITC Sustainability Award
2012 - Strong commitment

For performance on Sustainability

and Corporate Governance
For performance on Sustainability

Awards at ICQCC12, Malaysia -3

star (Top Most Category) for 3 QC
Teams
Vishwakarma Awards VishwakarmaRashtriyaPuraskar
(VRP) for 17 employees
Awards at INSSAN -2012 - 1st
place in the Excellence in
Suggestion Scheme & 3 Merit
prizes
QCFI Award-2012 - Best Public
Sector Organization
National Vigilance Excellence
Award by Vigilance Study Circle
(VSC)

For implementation of QC
projects

CIO-100 Award
Indira Gandhi Rajbhasha
Shield - First prize

2013

2013
2013

Innovative suggestions for higher

efficiency, productivity & process
improvements
For implementation of
Suggestions

2012

2012

2012

For promoting Quality Concepts

2012
For eminent professionals in the
field of Vigilance
For excellence in IT & Special
Award under the category
Networking Pioneer
For effective implementation of
Official Language Hindi

2012

2012

2012

Organizational Environment:
RashtriyaIspat Nigam Limited, a Navratna PSE with 100% ownership held by GOI, is
the corporate entity of Visakhapatnam Steel Plant-the countrys first shore based
integrated steel plant at Visakhapatnam, Andhra Pradesh. Visakhapatnam Steel Plant,
which was fully commissioned in 1992 with a capacity of 3Mtpa liquid steel, is now
31

in the midst of commissioning and stabilizing its 6.3Mtpa facilities, thus realizing its
first phase of growth in line with its Vision and Mission.
Main Products and Services: RINL, with its exclusive product mix of longs is the
largest producer of long products in the country with a market share of 8% in 201213. The company also markets by-Products like coal chemicals (Ammonium
Sulphate, Naphthalene, Coal tar, Pitch, Benzyl products, etc.) and Granulated BF slag.
Delivery Mechanism:
A network of 5 e Regional offices, 23 Branch offices, stockyards, 5 Consignment
Sales Agents and 133 Retailers spread across the country cater to the delivery
requirements, which is further complemented by DLDs and RDs to ensure availability
of quality steel in rural areas at affordable prices. Retailers, DLDs and RDs provide
efficient channel to ensure the availability of RINL products at various points of
consumption that cannot be directly accessed by the company.
Culture of the organization:
Right from inception stage, a conscious effort on inculcating a New Work Culture
of Commitment, Continuous improvement, Concern for environment and Customer
orientation among employees were initiated and appropriate systems put in place,
which over a period of time has evolved into a culture of Creative and Innovative
improvements across the organization.
Employee Profile, Education Levels, Work Force, Job Diversity, Use of Contract
Employees:
Total employee base can be organized into non-executive and executive grades.
Categorization by department also provides a basic segmentation for the purpose of
administrative convenience and structured deployment and monitoring of various
initiatives fig., shows the overall manpower, age profile, gender diversity and
qualification of employees in the organization. Apart from the regular employees on
the rolls of the company, the company also engages contractual labor force for
carrying out non-core activities in the production facilities.

32

Manpower

35%
Executives
65%

Non Executives

Qualification
Engineering
9%
15%

27%

40%

Graduates/PG
Graduates/PG

9%
Engineering
Graduates/PG

33

Gender Diversity
03%
Women
Men
97%

Main facilities of the plat(Not Exhaustive)

Salient Technological features at
Salient technological features at
3Mtpa
6.3Mtps
7M tall Coke Oven Batteries with 100% 3800 Cu.m BF-Profilometer, copper
CDQ3200 Cu.m Blast Furnaces with bell staves, PCI etc.,
less top charging100% Continuous Sinter Plant-Circular cooler, chamber
castingStelmore and Tempcore processes type roof mounted Burner etc.,
at Mills
CCM-Auto Mould technology, ElectroMagnetic StemmingWRM-High Speed
Mill (105-110m/s), digital furnace.

Major Technologies, Equipment, Facilities:

Technologies adopted (Fig) during the inception of plant were the first of its kind in
the Indian steel industry, which RINL over the years has harnessed and improvised
upon, to build a unique competitive advantage around its operational efficiency. It
will vet further strengthened with stabilization of the 6.3Mtpa expansion units.
RINL has been a forerunner in adoption of green technologies in the process of steel
making through the BF-BOF route, in 1980s, well before the concepts of sustainable
development emerged as a concern in the industry.
An initial investment of 468Cr was made on clean technologies, which was 5.5% of
the total project cost and the thrust continues even during the current expansion to
6.3Mtpa with a total investment of1283Cr, which is 10% of the total project cost(fig)

34

Aspect
Waste heat recovery at coke
Dry Cooling Plant(CDQ)
Waste gad utilization (CO,
BF&LD gas)
Utilization of top pressure at
BF through Top Recovery
Turbine(TRT)
Dry fog dust suppression at
RMHP
Evaporative cooling systems at
LMMM&MMSM

Benefit
Generation of Power(2x7.5MW)through
BPTS 14MW power generation from COBIV
Used as fuel in furnaces and boilers.
Generation of power(2x12MW) through
GETS
Reduced dust
Generation of process steam

Aspect
Waste heat recovery at straight line cooler of
sinter plant
Secondary emission control system at Steel
Melt Shop-2
Waste heat recovery at Mills

Waste heat recovery at BF-3 stoves

Generation of power using Lean BF gas (byproduct gas)

Benefit
20.6MW power generation
Cleaner environment
Generation of process steam
by recovery of heat from the
skids reheating furnaces
Used for pre-heating of gas&
air
120MW power plant being
installed.

Installed capacity of green power at RINL at present is 36% of total captive power
generation capacity, through utilization of waste energy and the same is likely to go
up to 62%, after the completion of 63.3Mtpa expansion and other ongoing projects.

Statutory and Regulatory Environment:

Being GoI owned PSE, RINL complies with all the applicable regulations and has
been adopting the recent DPE guidelines on CSR, CG, SD, R&D etc., RINL has been
certified for all three system standards i.e., ISO 9001:2008, ISO 14001:2004 and
OHSAS 18001:2007. Further RINL is the first PSE and first in Steel sector in India to
adopt ISO 50001 standards for Energy Management System.
Stage of VSP in Business Life Cycle:
VSP is a production unit and there shouldnt be a saturation level as the saturation
level is followed by declination of profit, so when the sales of the business unit
reaches to a saturation level then expansion/ extension renovates the business life

35

cycle and exploration of new units and products can be practiced, such that
organization can maintain a consist position in market.

Table 1.10 2Business life cycle of VSP

Similarly VSP was into same stage of business life cycle, as it has already attained the
saturation level, in order to with stand the competition and to maintain its position in
the market, it has gone for expansion of 20000 acres evacuating the surroundings. As
for the company norms they also provided employment for unemployed and as well
as arranged for their accommodation. Government granted permission for new
recruitment of 10% of present manpower.

36

INDUSTRY
PROFILE

37

INTRODUCTION TO STEEL INDUSTRY IN INDIA

Whats in the name? Nothing, one might say. For steel a century old metalthere
additionally seems no reason for any possible non-unanimity of thought. But here
precisely are the chances for our going wrong. True, like most industries, the Indian
Steel Industry has experienced the highs and lows of the business cycle, has been
impacted by the globalization and has been subjected to the vagaries of market forces
in a liberalized set up. But at the end of it all, what we have today is a highly evolved,
resilient and an ever vigilant industry, which through adoption of State-of-the-art
technologies has kept pace with changing times, producing an output that has not only
stood the test of time but has globally transformed the way men think and do business
in steel.
India got into the steel making in the early 20th century when JRD Tata set up the first
steel mill in the country in 1907 in Jamshedpur. Since then, the steel industry has
undergone a lot of change but the Tata Iron and Steel Company continues to be the
largest private steel maker in the country. The steel industry in the 70s and 80s was
dominated by TISCO & SAIL. With the price control regime in place, the steel
companies could turn in a profit without any major effort. But the situation soon
changed when the country decided to open the doors for foreign investment in 1991.
The pricing mechanism of Joint Plant Committee, which has been operating from
1964, was abolished with effect from January 1992.

In the initial economic reforms, industrialists saw the economy growing at 7% per
annum and since steel consumption is directly linked to the growth in economy, it was
assumed that demand for steel in the country would explode. This led to huge flow of
investments into the steel industry and many EAF based steel units were set up. The
1st phase (1914-1947) of its evolution can be traced to the beginning of the 20th
century when the steel industry made a beginning as an icon of active patriotism,
thanks to the pioneering spirit of Swadeshi entrepreneurs in the private sector. This
period saw a small but viable steel capacity of about 1 million on the coffin.

Although the initial years justified these assumptions and steel consumption really
took off, this scenario was not to continue for long. The political instability and the
38

resultant slow down in reforms saw the economic growth slowing down. The South
East Asian economic crises were of course, the final nail on the coffin.
During the second phase (1947 1992), in the hands of the early planners this
industry became an important instrument for attaining rapid economic growth because
of two inherent advantage enjoyed by it. Firstly, Indias fast reserves of the basic raw
materials conferred a certain competitive advance to this industry. Secondly the
wide-ranging linkages, both forward & backward sector has with the rest of the
economy made it an ideal catalyst for generating and sustaining economic
development.
During the 4 decades, the Indian State invested heavily in crating large scale
integrated capacities in the public sector as part of the overall development strategy
aiming at self sufficiency in the heavy & basic industries. To ensure state control at
the commanding heights of the economy, large-scale capacity creation was reserved
for the public sector units (PUS) in a predominantly mixed economic environment.

INDIAS 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 India is operating with
open-hearth furnaces. The existing equipment, energy and labor in Indian Steel
industry are much low than the developed countries.
Indian Steel industry generates as significant amount of waste materials, which can
environmental problems.

The four aspects of Waster Management namely

residue reprocess, recycle and recovery do not hold much ground in the Indian Steel
Industry. The Indian companies cannot spend more for pollution control. The energy
consumption per ton is 50-100% higher than that of the International norms.
The Indian steel industries have developed a bit in the recent years. The production is
going on properly. Many techniques are being implemented in the steel industries.
The countrys aim is to sell quality steel. The government is also helping the steel
industries in this basis. The apparent consumption of steel is shown below:

39

The development of steel industry in India should be viewed in conjunction with the
type and system of government that had been ruling the country. The production steel
in significant quality started after a 1990. The growth of steel industry can be
conveniently started by dividing the period into pre and post independence era. In the
period of pre Independence steel production was 1.5 million tons per year, which was
raised to 9.0 million tones of target by the seventies. This is the present of the bold
steps taken by the government to develop this sector.

PROBLEMS OF STEEL INDUSTRY:

Non-availability of good quality raw material is another problem faced by iron and
steel industry. The modern giant blast furnace needs high-grade iron ore and good
metallurgical coal.

Further, the industry is unable to get good quality coke and manganese is which the
principal raw materials next to iron ore are unfortunately most of our resources of
manganese ore are of poor quality besides the non availability of good quality raw
material, regular supplies of raw materials are very much handicapped due to the
absence of good transport facilities. Another problem faced by the steel industry
related to the difficulty in getting Zinc supplies for the continuous galvanizing line.

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 and
Zinc in the production of galvanized sheet, apart from internal technical problems; our
technology in the field of steel production is not a developed one when compared to
other advanced countries. For instance, Japan is production quality steel in spite of
importing raw material and additional material from other country.

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 the control of Govt. The Govt. decided to
40

remove statutory control over the price and distribution of all, but a few categories
with effect from 1st March 1964 the Govt. Supervise the steel and iron inducted
according to the recommendation of Raja committee. But Raj committee in fixing the
steel price didnt regulate the price of the raw materials.

Table 2.1
Growth of Steel Industry
Table 1.6 The growth in a chronological order is depicted below:
S No

1.
2.
3.

Year

1830
1874
1899

4.
5.
6.
7.

1906
1911
1918
1940-1950

8.

1951-1956

9.

1956-1961

10. 1961-1966
11.
1964
12. 1966-69
13

1969-74

14

1974-79

Growth
Osier Marshall Heathler constructed the first
manufacturing plant at prot-motor in Madras presidency.
James Erskin founded the Bengal frame works.
Jamshediji TATA imitated the scheme for an integrated
steel Plant
Formation of TISCO
TISCO started production
TISCO was founded
Formation of My sore iron and steel initiated at
Bhadravathi in Karnataka
First five-year plan The Hindustan Steel Limited (HSL)
was born in the year 1954 with decision of setting up three
plants each with 1 million tones ingot steel per year at
Rourkela, Bhilai,Durgapur. TISCO started its expansion
programme.
Second five-year plan A bold decision was taken up to
increase the ingot steel output in India to 6 million tones per
year and its production at Rourkela, Bhilai and durgapur Steel
Plant started.
Third five-year plan During the plan the three steel plants
under HSL, TISCO & TISCO were expanded.
Bokaro Steel Plant came into existence
Recession period Till the expansion programmes were
actively existed during this period
Fourth five-year plan Salem Steel Plant started. Licenses
were given for setting up of many mini steel plants and rerolling mills government of India. Plants in south are each in
Visakhapatnam and Karnataka. SAIL was formed during this
period on 24thJanuary 1973.
Fifth five-year plan The idea of setting up the fifth
integrated steel plant, the first re-based plant at
Visakhapatnam took a definite share. At the end of the fifth
five-year plan the total installed capacity from six integrated
plants was up to 10.6 million tons.
41

15

1979-1980

16. 1980-1985

17. 1985-91

Annual plan. The Erstwhile soviet union agreed to help in

setting up the Visakhapatnam Steel Plant.
Sixth five-year plan Work on Visakhapatnam Steel Plant
started with a big bang and top priority was accorded to start
the plant. Schemes for modernization of Bhilai Steel Plant,
Rourkela Steel Plant, Durgapur steel plant and TISCO were
initiated. Capacity at the end of sixth five-year plan from six
integrated plants stood 11.50 million tones.
Seventh five-year plan Expansion works at Bhilai and
Bokaro steel plant completed. Progress of Visakhapatnam
Steel Plant picked up and the nationalized concept has been
introduced to
Commission the plant with 30 MT liquid steel capacities by
1990.

18. 1992-1997

Eighth five-year plan The Visakhapatnam Steel Plant was

commissioned in 1992. The cost of plant has become around
8755 crores. Visakhapatnam Steel Plant started the production
and modernization of other steel plants is also duly engaged.

19. 1997-2002

Ninth five-year plant Restructuring of Visakhapatnam Steel

Plant and other public sector undertakings.

20. 2002-2007

Tenth five year plan-Steel industry registers the growth of

9.9% Visakhapatnam steel plant high regime targets achieved
the best of them.

21. 2007-2012

Eleventh five year plan-Steel industry registers the growth of

Visakhapatnam steel plant high regime targets achieved the
best of them.

22. 2012-2017

Twelfth five year plan-The steel industry has a bright future

as the union government has announced to create
infrastructure worth Rs 50 lakh crore in Visakhapatnam steel
plant.

Table 1.7
Steel Plants with foreign Collaborations
S.No
Plant
Collaboration Capacity of Finished
Steel Products
1.
Rourkela Steel Plant
West Germany
2.
Bhilai Steel Plant
Erstwhile USSR
3.
Durgapur Steel Plant
Britain
4.
Bokaro Steel Plant
Erstwhile USSR

42

Table 1.8 Annual Production

S.No

Plant

1.

Rourkela Steel
Plant
Bhilai Steel Plant

2.
3.

Durgapur Steel
Plant

Table 1.9: Expansion:S.No

PLANT
1.

Rourkela Steel
Plant
Bhilai Steel Plant
Durgapur Steel
Plant
TISCO

2.
3.
4.

Collaboration Capacity
of Finished Steel
Products
West Germany
Erstwhile USSR
Britain

Annual
Production
7,20,000
tunes
7,70,000
tunes
8,00,000
tunes

ORIGINAL
MT/YEAR
1.0

EXPANDED
MT/YEAR
1.8

1.1
1.0

4.5
1.6

1.0

2.0

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

economically developed nation by 2020. The steel industry is expected to play a
major role in Indias economic development in the coming years. The steel industry of
India has a very high growth potential and is expected to register significant growth in
the coming decades. India is expected to emerge as a strong force in the global steel
market in coming years.

The two major aspects that are expected to play a significant role in
the growth of the steel industry in India are :

Abundant availability of iron ore in the country.

The country has well established facilities for steel production.

Steel production in India has grown from 17 million tons in 1990 to 36 million tons in
2003. In India, steel demand is expected to grow by 3.3% to 76.2 Mt in 2014,
following 1.8% growth in 2013

The Major Sectors Where Consumption Of Steel Is Expected To

Grow In The Coming Years Are :

Construction
43

Housing

Ground transportation

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

fertilizers

Conclusion on Indian Steel Industry:

The Indian steel industry is among the upcoming industries of the world. It has a
number of iron ores, which means that it has plenty of resources from which to draw
its raw material.The rate of production of steel in India has been going up at a steady
rate in the last few years. In the recent times Orissa and Jharkhand have been
identified as the potential steel destinations of India the ones that would provide the
Indian steel industry with its necessary raw material. There are also a number of steel
companies in India like Tata and ArcelorMittal that are either coming up or have
established themselves as prominent forces in the world steel scenario.
In the recent times a lot of foreign direct investment is being made in the Indian steel
industry. In fact the rate of investment is being made in the last few years and, to a
certain extent, this increase has been contributed to by the growth potential of the
steel industry of India that is thought of as being impressive in the international steel
circle.

44

SWOT ANALYSIS

45

SWOT Analysis:
RashtriyaIspat Nigam Limited- Vizag Steel
Parent Company

RashtriyaIspat Nigam Limited

Category

Iron & steel

Sector

Industrial products

Tagline/ Slogan

Pride of Steel

USP

Only shore based integrated steel plant in the country

helps in improving cycle time

STP

Segment

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

blooms, billets, beams

Target Group

Industries including automotive, construction, petroleum,

railways, shipbuilding

Positioning

The largest player in the domestic long steel products

segment and delivers high quality, cost competitive
products

SWOT Analysis
1. Conferred with Navratna status in India, making it a strong market player
2. Enriched product mix and sustained profitability and sales
3. One-fourth of saleable steel neutralized impact of rise in raw material prices
4. Dispatch of over 2 mn tons of steel by rail is the best for any year since
inception
5. The first Indian steel company to adopt energy management standard for
46

Strength

systematic improvement in energy efficiency

6. High commitment to achieve capacity levels.
7. Economics of sales.
8. High expansion potential.
9. Strong commitment to conserve environment

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

Weakness

2. High interest and finance charges is a concern

3. Single location company- Only long products exposed to cyclical markets
4. Low return product mix.
5. Productivity below international standards.
6. Lack of ore.

1. Mergers & Acquisitions to gain market share

Opportunities

2. Continued emphasis on infrastructure building & several Greenfield projects

under execution will boost growth
3. Focus on strategic initiatives of Expansion, securing raw materials
4. Improve availability of ports and logistics. Access to import sources.
5. Proximity to southern markets. Increasing domestic demand due to thrust on
infrastructure development.
1. Rising in inflation rate and increase in interest rates by RBI etc. impacts the
rate of growth
2. The debt crisis in Europe & the political turbulence in the Middle east
3. Speculative market of raw materials is a real concern
4.Increasing competition.

Threats

5. Possibility of import duties declining further

47

Competition
1. JSPL
2. TATA Steel

Competitors

3. ISPAT

Future Prospects:

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

Establish different plants like excel wheel and government has sanctioned a
manpower of 8% of the existing workforce in the achieving the integrated
plans.

48

CHAPTER II
IMPORTANCE OF
STUDY
RESEARCH
METHODOLOGY

49

NEED FOR THE STUDY

There is a special role of every industry barring up on the need essentiality where
everything has to be done in accordance with standards that are regulated by the
government.
To understand this, conceptual idea is not only sufficient but also it needs a wide
knowledge and understanding of the factors that are affecting them.

Especially

VISAKHAPATNAM STEEL PLANT has emerged from loss to profit making

company.
Now, the study is all about analyzing, how this has been possible for companies
where there is large scale of employees are working towards the growth of the
organization serving the needs of public. Through this study the code of conduct in
recruiting the manpower and the study of growth of an employee along with
organization, where the backbone of any organization in bringing expected outcomes
is performed by manpower.

50

SCOPE OF THE STUDY

The Study is based upon the part of Recruitment case study at VSP and the scope of
study is limited to recruitment of executives, and the analysis made on the basis of the
data that is available from the respective department. A business, work or any new
idea generates from need. Similarly the recruitment process also starts by the need for
manpower. Promotion and Retirement trends for the next 5 yrs assess the number of
members that should be recruited to deploy the work in right time. The Study
predominantly aims to explore the scope of recruitment in the coming 5 years.

51

RESEARCH METHODOLOGY
The research being an exploratory research deals with data collected from primary
sources. It is conducted to gain better understanding of certain situations. This
research is backed up by serious substantive research to make decisions.

Exploratory research for problem definition purposes.

Understanding the HR delivery process in detail and depth.

Understanding the process through observation in its natural setting.

Context dependent research.

Need for new insights in addition to quantitative research.

The information for the study has been obtained from two sources namely:
1. Primary Data
2. Secondary Data

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

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

52

concerned with interviews from officers and staff, some of the information has
been verified or supplemented with personal observations .
Through telephone interviews: This is method of collecting information
involves contacting the respondents on telephone itself. The comparative
research of HR practices in private Sector and public Sector was made in this
study.
Deliberate sampling: In this case, having discussion with recruitment
manager and guidelines are taken from Asst. General Manager (HRD) and
with Deputy General Manager(HRD).
2. Secondary Data: This is taken from the annual reports, websites, company
journals, magazines and other sources of information of steel plant.
Analysis of Data: Here in this the previous years reports were considered and
the company journals were taken into consideration for the sake of
performance based data .
While evaluating and estimating the manpower requirement the existing
manpower details was collected from the respective officer of the concerned
department.

53

CHAPTER III
DEPARTMENT STUDY

54

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

or

outside

of

an organization)

and cost effective manner.

the requirements of

The
job,

for

recruitment

a job opening,
process

attracting employees to

in

includes
that

timely

analyzing

job, screening and

selecting applicants, hiring, and integrating the new employee to the organization.
This is one of the major responsibilities of the human resource team. The HR
managers come up with plans and strategies for hiring the right kind of people. They
design the criteria which is best suited for a specific job description. Their other tasks
related to recruitment include formulating the obligations of an employee and the
scope of tasks assigned to him or her. Based on these two factors, the contract of an
employee with the company is prepared. When needed, they also provide training to
the employees according to the requirements of the organization. Thus, the staff
members get the opportunity to sharpen their existing skills or develop specialized
skills which in turn, will help them to take up some new roles.

Sources of Recruitment:
Every organization has the option of choosing the candidates for its recruitment
processes from two kinds of sources: internal and external sources. The sources
within the organization itself (like transfer of employees from one department to
other, promotions) to fill a position are known as the internal sources of
recruitment. Recruitment candidates from all the other sources (like outsourcing
agencies etc.) are known as the external sources of recruitment.
Recruitment is of the most crucial roles of the human resource professionals. The
level of performance of an organization depends on the effectiveness of its
recruitment function. Organizations have developed and followed recruitment
strategies to hire the best talent for their organization and to utilize their resources
optimally.
Namely there are two sources of recruitment and the types can be depicted from the
following figure:

55

SOURCES OF RECRUITMENT

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

more and good talent to apply in the organization.
For formulating an effective and successful recruitment strategy, the strategy
should cover the following elements:
Identifying& prioritization:
Requirements keep arising at various levels in every organization; it is almost a
never-ending process. It is impossible to fill all the positions immediately.
Therefore, there is a need to identify the positions requiring immediate attention
and action. To maintain the quality of the recruitment activities, it is useful to
prioritize the vacancies whether to focus on all vacancies equally or focusing on
key jobs first.
The recruitment process can be effective only if the organization completely
understands the requirements of the type of candidates that are required and will
be beneficial for the organization. This covers the following parameters as well:

Performance level required: Different strategies are required for focusing

on hiring high performers and average performers.
56

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

experience level required by the organization. The candidates experience
can range from being a fresher to experienced senior professionals.

Category of the candidate: the strategy should clearly define the target
candidate. He/she can be from the same industry, different industry,
unemployed, top performers of the industry etc.

Sources:
The strategy should define various sources (external and internal) of recruitment.
Those are the sources to be used and focused for the recruitment purposes for
various positions. Employee referral is one of the most effective sources of
recruitment.
The recruitment professionals conducting the interviews and the other recruitment
activities should be well-trained and experienced to conduct the activities. They
should also be aware of the major parameters and skills (e.g.: behavioral, technical
etc.) to focus while interviewing and selecting a candidate.
Evaluation of candidates:
The various parameters and the ways to judge them i.e. the entire recruitment
process should be planned in advance. Like interviews, written tests, psychometric
tests etc.

How Is HR Different Between the Public and Private Sectors?

Sure, there are differences between human resources in the public and private sectors.
But the goal is the sameto enable our organizations to attract, develop and retain
talent. One key difference is that, unlike the private sector, most public sector
organizations are not at-will employers. Among other things, that means that
employees can only be removed "for cause."
There are several reasons for that, including court rulings that government employees
have property rights to their jobs and therefore this propertytheir jobscan only be
taken away for cause.

57

This legalistic approach also applies to your specific question about hiring. While
there are variations among public sector organizations, government hiring typically
must be merit-based, requiring "fair and open competition." This often means that
hiring is more process-oriented than in the private sector.
In practice, fair and open competition means that:

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

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

Candidates often have to go through civil service "exams." However, these are
often not what we think of as exams (e.g., with multiple-choice questions) but
can be questionnaires, training and experience evaluations or even rsum
reviews.

Candidates are assessed, scored and ranked according to predetermined

evaluation criteria.

The evaluation processand resultsare thoroughly documented to ensure

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

Candidate evaluations may require multiple levels of screening, often with

rating panels.

There are often preferences for veterans and member of underrepresented

demographic groups.

The hiring manager is usually given a list of the best-qualified candidates (the
"certified list") and the manager then has to give each candidate equal
consideration

(usually

an

interview,

often

in

very

structured

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

58

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

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

We can't recruit aggressively because that would give the recruited candidates
an unfair advantage.

Multiple choice questions are a must.

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

candidates to apply.

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

Job ads have to mimic the position descriptions.

We can't give hiring or referral bonuses.

Recruitment Process:
1) Identify vacancy
2) Prepare job description and person
specification
3) Advertising the vacancy
4) Managing the response
5) Short-listing
6) Arrange Interviews
7) Conducting interview and decision
making.
Job Analysis:
Definition: A job analysis is the process used to collect information about the duties,
responsibilities, necessary skills, outcomes, and work environment of a particular job.

59

You need as much data as possible to put together a job description, which is the
frequent outcome of the job analysis.
Additional outcomes include recruiting plans, position postings and advertisements,
and performance

development

planning within

your performance

management

system.
The job analysis may include these activities:

Reviewing the job responsibilities of current employees

Doing Internet research and viewing sample job descriptions online or offline
highlighting similar jobs.

Analyzing the work duties, tasks, and responsibilities that need to be accomplished
by the employee filling the position

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

Articulation of the most important outcomes or contributions needed from the

position.
The more information you can gather, the easier the actual writing of the job
description will be.
Job Specification:
Definition :A job specification describes the knowledge, skills, education,
experience, and abilities you believe are essential to performing a particular job. The
job specification is developed from the job analysis. Ideally, also developed from a
detailed job description, the job specification describes the person you want to hire for
a particular job.
A job specification cuts to the quick with your requirements whereas the job
description defines the duties and requirements of an employees job in detail. The job
specification provides detailed characteristics, knowledge, education, skills, and
experience needed to perform the job, with an overview of the specific job
requirements.
Components of a Job Specification
Experience: Number of years of experience in the job you are seeking to fill. Number
of years of work experience required for the selected candidate. Note whether the

60

position requires progressively more complex and responsible experience, and

supervisory or managerial experience.
Education: State what degrees, training, or certifications are required for the position.
Required Skills, Knowledge and Characteristics: State the skills, knowledge, and
personal characteristics of individuals who have successfully performed this job. Or,
use the job analysis data to determine the attributes you need from your ideal
candidate. Your recruiting planning meeting or email participants can also help
determine these requirements for the job specification.
High Level Overview of Job Requirements: In less than ten bullet points, cite the
key components and requirements of the job you are filling.
A job specification is useful for recruiting as it helps you write your job postingsand
your website recruiting material. The job specification is also useful for distribution
in social media, for screening resumes, and for interviewers.
Job Description:
Definition :A broad, general, and written statement of a specific job, based on the
findings of a job analysis. It generally includes duties, purpose, responsibilities, scope,
and working conditions of a job along with the job's title, and the name
or designation of the person to whom the employee reports. Job description
usually forms the basis of specification. Job descriptions are written statements that
describe the:

Duties,

Responsibilities,

Most important contributions and outcomes needed from a position,

Required qualifications of candidates, and

Reporting relationship and coworkers of a particular job.

Job descriptions are based on objective information obtained through job analysis, an
understanding of the competencies and skills required to accomplish needed tasks,
and the needs of the organization to produce work.

61

They clearly identify and spell out the responsibilities of a specific job. Job
descriptions also include information about working conditions, tools, equipment
used, knowledge and skills needed, and relationships with other positions.
The best job descriptions are living, breathing documents that are updated as
responsibilities change. They do not limit employees, but rather, cause them to stretch
their experience, grow their skills, and develop their ability to contribute within their
organization.

62

RECRUITMENT
POLICY AT VSP

63

INTRODUCTION:
RINL/VSP is one of the modern integrated Steel Plants in India with the state-ofthe-art technology in steel making. To manage the given technology, operate the
continuous processes of Production and carry out other critical functions like
Marketing, Personnel, Finance etc, skilled, highly skilled personnel and competent
professionals with excellent managerial capabilities are required to be inducted at
right place and right time. In the contemporary business environment marked by
fierce competition in hiring quality manpower, RINL Recruitment Policy seeks to
provide the broad framework of recruitment to tap suitable personnel in the
market, facilitate evaluation of the capabilities in terms of their potential for
fulfillment of Companys objectives and induct the best and the most competent
personnel in the shortest possible time.

Objectives:

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

strength of manpower.

To fulfill the requirements of competent personnel in terms of requisite

capabilities, skills, qualifications, aptitude, merit and suitability with a view to
fulfill companys objectives.

To attract, select and induct the best of the talents available keeping in view
the functional requirements of the Organization.

To provide suitable induction points for intake from external sources and
thereby infuse fresh blood into the organization.

To ensure an objective and reliable system of selection.

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

market economy to enable induction of personnel in the quickest possible time
to meet the operational requirements of the organization.

Scope:
The policy shall cover all recruitment of personnel made in the Company in executive
as well as nonexecutive cadre (except appointments made by the Govt.) and shall
apply to all units/branches of RINL.

64

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

appointments for temporary requirements.

Sources Of Recruitment:
There will be two sources of recruitment:

i.
ii.

Internal i.e. from within the Company.

External i.e. from open market through Employment Exchange, advertisement
in press/internet, recruitment through reputed placement/manpower agencies,
other organizations and/or campus selection from Universities/Institutes
and/or through direct negotiations. Management shall have discretion to resort
to any of the above sources of recruitment depending on functional needs of
the Company.

INTERNAL CIRCULATION OF POSTS

Recruitment/Selection to posts from within the company may be done through
internal circulation as under:

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

the Company giving the qualifications, age, experience etc.

Internal recruitment involving changes in grade will be processed by the

respective Zonal Personnel I/c with the approval of Competent Authority.
Such proposals will be routed through Manpower Cell of Personnel Dept. to
ascertain the vacancy position, to assess the need to fill up such vacancies,
roster points etc.

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

duly constituted committee.

Transfer from one department to another in parallel grade within the Company
following the procedure of internal selection will not be treated as recruitment.

RECRUITMENT FROM EXTERNAL SOURCES

Recruitment from external sources will be resorted to for injection of fresh blood at
the induction level(s)/grade(s). However, the company may, if required, induct direct
recruits from external sources at other level(s)/grade(s) also to meet functional
requirements of particular skill/experience or for optimum utilization of its assets
and/or infusion of modern systems, skills & techniques of operation etc., necessary
for efficient operation, technology up gradation or modernization.
65

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

induction level(s)/grade(s) in E-0 grade will be filled up through Management
Trainees (MTs).
Recruitment of executives from external sources will be made generally through open
advertisement in the press. However, recruitment of executives can also be done
through campus interviews from approved Institute(s), Universities and/or reputed
placement/manpower agencies and/or circulation of posts to PSUs/ Government with
the prior approval of the Competent Authority. In case of specialist job requirements,
the Company reserves the right to seek response through designated/limited time Post
Box Number applications. In rare/ exceptional cases, recruitment of Executives from
external sources through direct negotiation with individuals can also be made.
Recruitment to the posts in non-executive cadre carrying scale of pay, maximum of
which does not exceed Rs.2500 per month (pre-revised) as indicated in the DPE OM
No.2(48)/91-DPE (WC) dt.6.4.1992, will be done through the Employment Exchange.
In addition to notifying the vacancies for such relevant categories to the Employment
Exchange, the requisitioning authority may, keeping in view administrative/budgetary
conveniences, arrange for the publication of the recruitment notice for these
categories in the Employment News or other newspapers and then consider the cases
of all the candidates who have applied, provided they fulfill the specifications for the
post advertised. In addition to above, such recruitment notices will be displayed on
the office notice boards also for wider publicity (DPE 24(11)/96(GL-010)/GM
dt.2.11.1998)..
In case of death or permanent total disablement of an employee due to

accident

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

dependents will be provided subject to other conditions as per prescribed procedure.
In all other cases of death while in service/termination of service on permanent
medical unfitness, the concerned employee/dependent(s) will only be entitled to
monthly payment benefits as per Employees Family Benefit Scheme.
To encourage and support sports and sportsmen, the Company may recruit
sportsmen under sports quota by following the procedure laid down in DPE
guidelines/Government rules on the subject.

DEPARTMENTAL CANDIDATES

Employees of the Company will be eligible to apply against post(s) advertised in the
press, provided they fulfill the eligibility conditions as prescribed in the
66

advertisement. There will be no special weightage for internal/departmental

candidates.
Induction Levels
Executives: To man executive positions in key performance areas of the Company,
direct recruits will be inducted in various disciplines/work areas from time to time
depending on the requirements, in the following positions:

Management Trainees in different disciplines

Junior Manager (F&A/Marketing/Personnel etc.)

Junior Medical Officers

Specialists in Medical Department

Experienced Executives in suitable positions in different areas

Such other posts as may be decided by CMD keeping in view the requirements
of the organization.

Non-Executives: In the non-executive cadre, induction of direct recruits from

external sources will be carried out to the following positions:
Unskilled/Semi-skilled category: As Trainee Khalasi etc. and after successful
completion of minimum one year training and fulfillment of other conditions, they
will be appointed as regular employees in S-1 grade.
ii) Skilled category: As Junior Trainees and after successful completion of prescribed
period of training they will be placed in S-3 grade.
iii)Highly skilled Category: As Senior Trainees and after successful

completion of

prescribed period of training they will be placed in S-6 grade.

Iv )Ministerial category: As Secretarial Assistants (those possessing Graduation, with
Typewriting and Shorthand qualification) in SL-1 grade and as Junior Assistants
(those possessing only Graduation) in S-3 grade.

Para-medical staff and Store keeping staff etc. in suitable grades

corresponding to the posts.

Experienced employees in suitable grades.

Such other posts as may be decided by CMD keeping in view the requirements
the organization.

Delegation
Delegation of authority to recruit and/or appoint will be as per DOP.

67

Job Specifications
Job specifications will stipulate the minimum eligibility condition for each job/post in
terms of the following:

Educational Qualifications

Experience required, if any

Age limit

Physical/Medical standards, if any

Any other requirements as may be deemed necessary.

Job specifications stipulated for each post may be subject to periodical review and
updating keeping in view the changing needs of the organization. As and when
required, a committee consisting of representatives from the Department(s)
concerned, Personnel and other departments as deemed fit may be constituted by the
Competent Authority. Changes suggested by the Committee with regard to the
existing job specifications will be subject to the approval of the Competent Authority.

Requisitions:
All requisitions/proposals for recruitment of personnel will be sent by the concerned
Head of the Department to the Manpower Planning Cell (MPC) of Personnel
Department.MPC will scrutinize each proposal received from the Indenting
Department keeping in view the approved manpower strength and the need to fill up
the posts and obtain the approval of the competent authority and forward the same to
the Recruitment Section for initiating further action, as required.

Reservation Of Posts:
Reservation of posts for OBCs, Scheduled Castes and Scheduled Tribes shall be
provided in accordance with the Presidential Directives issued on the subject from
time to time..Reservation of posts for other categories such as Ex-serviceman,
Physically Handicapped persons etc., will be provided as per rules.

Responsibility:
All activities pertaining to recruitment will be centrally co-ordinate and managed by
Recruitment Section of Personnel

Department at Headquarters. However,

representative(s) of other department(s), as deemed necessary may be associated at

various stages of recruitment and/or selection of candidates. The services of
68

specialized agencies may be taken, if required, for conducting written tests/job

tests/group tasks/group discussions, etcas also for short listing of suitable candidates
for selection.

Screening Of Applications:

Applications

received

in

response

to

the

vacancies

circulated/notified/advertised etc. will be screened by the Recruitment section

keeping in view the job specifications prescribed for the post(s) in question
and the candidates short listed for interview. As and when necessary, the
indenting department may be consulted for screening and short listing of
candidates.

If suitable candidates with the required job specifications are not available, or
if candidates are otherwise exceptionally qualified or experienced, but require
relaxation in specifications like age, qualifications etc competent authority
may relax the specifications prescribed as a onetime measure in order to
facilitate filling up of such post(s) in time, provided such provision for
relaxation has been stipulated in notification/advertisement for the post. Any
subsequent recruitment against such post(s) will, however, be made strictly on
the basis of the standard job specifications prescribed.

Mode of Selection
Selection of candidates for appointment in the Company will be made on the
basis of their merit and suitability as assessed through selection test(s). The
selection test(s) will comprise of:

Written test/job test/trade test or any combination thereof; and/or

Group task/Group discussion/interview or both; and/or

Any other test(s) as may be prescribed or as decided by the competent

authority. Wherever selection is made on the basis of a combination of a
written test/trade test etc. and interview/group discussion etc., weightage
for different segments administered, will be assigned as follows:

Written test/trade test/job test or any

Other test as may be prescribed: 85 marks

Group task/group discussion/interview or a combination 15 marks

69

A candidate is required to secure minimum qualifying marks of 50% in

each segment or such percentage as may be prescribed by the competent
authority from time to time. Relaxation in respect of SC/ST/OBC, if any,
will be provided as per Presidential Directives in each selection segment to
qualify. Relaxation in qualifying marks will also be provided to DPs as per
the existing policy.

Where the selection is solely based on interview, the weightage for

interview will be 100%.

Selection Committee

In order to assess the suitability of the candidates for the post(s) in question,
Selection committee(s) will be constituted by the competent authority.

As and when required, experts from outside the organization may also be
included in the selection committee(s) to ensure proper evaluation of
candidates.

Final Selection Of Candidates

The selection committee will assess the comparative merit of each

candidate in terms of his/her qualifications, experience, if any, and on the
basis of performance in the selection test(s) and interview as per criteria
laid down and come to a conclusion as to whether or not the candidate
would measure up to the requirements of the job he/she is expected to
perform. However, wherever marks are assigned, committee members will
be required to give marks on the basis of criteria prescribed depending
upon the relative performance of each candidate in the test/interview and
keeping in view his/her suitability for the job in question.

*Candidates found suitable will be empanelled in order of merit on the

basis of following:
Wherever marks are assigned, merit list of candidates who have secured
minimum qualifying marks as at para-will be prepared on the basis of
aggregate marks secured by the candidates in selection/test(s); and
wherever selection is made for more than one discipline/stream, merit lists
would be prepared discipline/stream-wise.
70

In case of a tie while preparation of merit list, preference will be given to

candidates in the following order.
a. Higher marks in written test.
b. Higher marks in Job test/Physical test
c. Date of Birth (those born earlier).
Wherever selection is made only on the basis of evaluation of the selection
committee, merit lists of the candidates will be drawn up as recommended by the
selection committee.
The selection committee shall back-up its recommendations based on marks
assigned for the following criteria:
1) Communication Skills
2) Job Knowledge
3) Planning & Initiative
4) Alertness and Reasoning Ability
5) Leadership and Man Management Skills
Note: Weightage on different criteria shall be decided by the concerned Functional
Director in consultation with Director (Personnel) taking the department, post, grade,
etc. into consideration. If required, further criteria with appropriate weightage may be
added, as decided by the concerned Functional Director in consultation with Director
(Personnel).
This will not be applicable for selection of non-executives which shall be through
written test and/or job test/physical test and interview.
* The select list so prepared will be subject to the approval of the competent authority
and will remain valid for a maximum period of one year from the date of such
approval. The panel shall only be utilized to fill up the unfilled posts of the same
recruitment.
The marks or merit list shall not be disclosed to the public till the recruitment process
is completed and all the vacancies are filled.

ISSUE OF OFFERS
Appointment offers will be issued to the required number of candidates from the
panel/merit list in order of merit in each discipline/stream with the approval of the
competent authority.

71

All appointment offers will be centrally issued by the Recruitment Section of

Personnel Department. The In charge of Recruitment Section is authorized to issue
offers of appointment for and on behalf of the competent authority.

MEDICAL EXAMINATION
16.1All appointments in the company will be subject to the selected candidates
being found medically fit by the Companys medical officer/board for the post(s)
for which they have been selected. Where there is no company hospital, medical
examination will be conducted by an approved Government Hospital/Medical
Board.

Medical standards will be laid down for each category of job(s)/post(s), both
executive as well as nonexecutive, keeping in view the job requirements.

Medical standards prescribed for different jobs/posts will be subject to review

from time to time depending on organizational needs. As and when necessary,
the competent authority may constitute a committee of experts to review and
suggest suitable changes in existing medical standards. Such changes will,
however, be subject to approval of the competent authority.

DEPUTATIONISTS
Notwithstanding anything contained in this policy and in exceptional cases,
employees of other PSUs or Government may be appointed in the Company on
deputation basis for such periods as may be decided by the competent authority. Such
deputationists, however, cannot be absorbed in the Company, against this or any other
post, without advertising the posts and/or circulating to designated PSUs/Government
departments and giving opportunity to other similarly placed/qualified aspirants. Also,
in case of requirement of regular post(s), the conditions prescribed under clause 4.3.3
should not be diluted without adequate justification.

INDUCTION/ORIENTATION
All newly appointed employees in the Company will undergo suitable
induction/orientation programs to be organized by the Training Department. Induction
program will, among other things, aim at systematically introducing the new
employees to the Company, its philosophy, its major policies, technology, existing

72

status, future plans etc. The induction program should clearly spell out the mutual
expectations with emphasis on Companys objectives and goals.

POST SELECTION FOLLOW UP

The selected candidates on joining the Company will be under probation for a period
of twelve months or such other period as may be specified. The period of probation
may be extended in suitable cases as provided in the Service Rules.
RULES AND PROCEDURES
The Chairman-cum-Managing Director, RINL/VSP, is authorized to frame and issue
the rules, procedures, guidelines, instructions etc. under the policy, designate
competent authorities to exercise powers under the policy and rules and give
clarifications on issues arising out of the policy.
TENURE
Policies and rules framed hereunder will come into force from the date notified by
Chairman-cum-Managing Director, RINL/VSP, and will remain in force for a period
as decided by him.
The Company, however, reserves the right to amend, modify, cancel or withdraw the
policy or any part thereof at any time without notice.

RECRUITMENT PROCESS AT VSP:

Selection process at VSP starts with the recruitment procedure which is an entrance
test. For the executive applicants i.e., management trainees the syllabus, question
pattern is as follows:
The selection process for Management Trainee Positions in VSP will consist:
1) Written Test
2) Group discussion
3) Interview
VSP selection procedure:
The selection pattern will consist of written test followed by GD/Interview.
Eligible candidates will be required to appear for a written examination,
information of which will be provided in the admit card. Candidates shortlisted on
the basis of their performance in the written test will be intimated to appear for
GD/Interview.
73

VSP written test:

Written test will comprise General Awareness, Numerical Ability, General
English, Verbal and Non Verbal Reasoning and separate paper for each discipline.
Eligible registered candidates will have to appear for written test at designated
center at their own expense.Once the likely date for the written test has been
declared it may undergo change
Written test will be held simultaneously at Visakhapatnam, Hyderabad, Chennai,
Delhi, Kolkata and Mumbai. Candidates are required to choose one of these cities
as Test Centre and no change under any circumstances will be allowed
subsequently. The company however reserves the right to add/ delete any center
and allocate appropriate center to the candidate at its direction.

SYLLABUS FOR VSP MT(Tech) WRITTEN TEST-2013(Indicative but not exhaustive)

APTITUDE
1.

Logical Reasoning

Deductive Logic
Inductive Logic
Conceptualization
Puzzles
Venn Diagram

2.

Numerical

Percentages & Averages

Profit, Loss, & Discount
Ration and Proportion
Stocks and Shares
Simple Interest & Compound Interest
Time, work and distance
Permutations & Combinations

3.

Verbal

Articles
Prepositions
Reading Comprehension
Synonyms

4.

General awareness

GK
Current Affairs
History

74

DISCIPLINE
1.

Chemical Engineering

Chemical Reaction Engineering

Chemical Engineering Thermo Dynamics
Heat Transfer
Mass Transfer
Momentum Transfer and Mechanical
Operations
Polymer Synthesis
Polymer Technology
Polymer Testing

2.

Civil Engineering

Air Pollution
Concrete Structure
Foundation Engineering
Hydrology
Irrigation
Mechanics
Municipal Solid Waste
Noise Pollution
Soil Mechanics
Steel Structure
Structural Analysis
Surveying
Water Requirements
Fluid Mechanics and Hydraulics

3.

Electrical

Analog and Digital Electronics

Control Systems
Electric Circuits and Fields
Electrical and Electronic Measurements
Electrical Machines
Power Electronics and Drives
Power Systems
Signals and Systems

4.

Instrumentation

Analog Electronics
75

Analytical, Optical and Biomedical

Instrumentation
Basic of circuits and Measurement System
Communications
Control systems and Process control
Digital Electronics
Electrical and Electronic Measurements
Signal and Systems
Transducers, Mechanical Measurement and Indus
inst
5.

Mechanical

Computer Integrated Manufacturing

Design
Engineering Materials
Engineering Mechanics
Fluid Machines
Fluid Mechanics
Inventory control
Machine Design
Machining and Machine Tool Operations
Management Information System
Metrology and Inspection
Product design and Development
Production planning and Control
Strength of Materials
Theory of Machines
Thermodynamics
Vibrations
Energy conservation
Heat Transfer
Operations Research
Industry Safety

6.

Metallurgy

Extractive Metallurgy
Foundry technology

76

General metallurgy
Material science
Mechanical metallurgy
Physical metallurgy
Welding and Corrosion
7.

Electronics

Electronics ,Analog electronics

Computers and Microprocessors
Control Systems
Digital electronics
Electrical and Electronic Measurements
Industrial Electronics
Network Theory
Semiconductor Devices

8.

Industrial Engineering

Just in Time approach, Operation Research

Supply Chain Management
Total Productive Maintenance(TPM)
Total Quality Management(TQM)
Six sigma
Process control, Quality engineering
Manpower requirement and assessment
Motivational schemes
Value Engineering

SYLLABUS FOR VSP MANAGEMENT TRAINEE (HR & WELFARE,F&A,

CORPORATE COMMUNICATIONS) WRITTEN TEST(BUT NOT
EXHAUSTIVE)

1.

HR& Welfare

Labor Laws

Industrial Relations including Trade

Unions

77

Human Resources Planning &

Recruitment

Performance Management

Collective Bargaining and

Negotiation Process

Grievance Management

Human Resource Development

including Training

2.

Finance & Accounts

Income Tax Provisions Income

taxation

Company Laws

Budgeting

Foreign Trade Policy

Functioning of Financial institutions

viz.RBI, SEBI etc

3.

Corporate Communications

Accounting, Accounting Standards

Auditing & Auditing reports

Communication policies process,

theories and models

Print& Electronic media

Newspaper reporting and writing

Principles of editing design and

layout current trends

Basic communication research

Media laws press council and does

of ethics

Organization and functions of public

relation departments in private and
public sector organizations

78

PR Planning & press relations

Characteristics of the PR man

Tools of Public relations

A SAMPLE ADVERTISEMENT FOR RECRUITMENT PROCESS

T VSP:
Rectt. Advt. No.:07/2014
RashtriyaIspat Nigam Limited, Visakhapatnam Steel Plant, a Navratna Company
under the Ministry of Steel,Government of India, invites qualified, experienced and
competent professionals for the following posts inCompany Affairs Department:
Post

Post

code

Scale of pay vacancies

Post

Upper

and grade

qualification

limit

experience

(August

age

,2014)
General manager `51,3003%01

02

01

(company affairs 73,000/)

(E-8)

Management

`20,600-3%-

Trainee

46,500/-

(company

(E-1)

(UR-1)

25 years

UR: 55 yrs

NIL

OBC: 35 yrs

01
(OBC-1)

affairs)

A. Allowances and Benefits

The selected candidates will be placed at the minimum of the pay scale and will be on
probation for a period of one year. In addition to Basic Pay, they would be entitled to
Industrial Dearness Allowance, Perks and allowances under Cafeteria Approach @
46% of the basic pay (after adjusting the recurring expenditure on maintaining and
running infrastructure facilities), Performance Related Pay, Free Medical Treatment
for Self, Family and Dependant parents, Insurance Cover, Housing in the Company
Township or HRA, Leave and encashment of Earned Leave, Contributory Provident
Fund, Group Insurance, Gratuity, etc. The approximate CTC will be as under:
E-8: `23.92 lakhs
E-1: ` 7.38 lakhs
B. Required Educational Qualifications:
For Post Codes 01 & 02
Full-time regular Bachelors Degree from a recognized Indian University with
minimum 60% marks in aggregate and having Associate Membership of the Institute
of Company Secretaries of India, New Delhi.
79

Preference will be given to the candidates having additional qualifications of ACA /

AICWA or both.
Fellowship of ICSI will be preferred for Post Code 01.
C. Required Post Qualification Experience in the area of:
For Post Code 01 only
a) Company Law matters;
b) Listing requirements and Stock Exchange matters;
c) Knowledge of Patents and Trade Marks; Corporate Governance matters;
d) Knowledge of Drafting of Notices, documentation, conducting Meeting of Board,
Audit
Committee, Sub-Committees of the Board etc.,
e) Should possess upto date knowledge of relevant Laws, Rules, Regulations and
Guidelines
relating to Management of Government / Public Sector Company / Public Limited
Listed
Company and various statutory compliance requirements.
f) SEBI / Stock Exchange Regulations / Listing requirements / Shares related matters
includingissue transfers.
For candidates from PSUs / Government Sector:
Post qualification experience should be in Executive cadre in Company Secretarys
office in theCompany for a period of 25 years of which a minimum of 5 years
experience in the E-7 grade ofSchedule A Public Sector Enterprises.
For candidates from Private Sector:
Post qualification experience should be in Executive Cadre in Company Secretarys
office in theCompany. Latest experience should be in a large Commercial / Public
Limited Company with
an Average Turnover of not less than `3000 Crores in the immediate 2(Two)
preceding financialyears. They should enclose the Profit and Loss Account of the
Company for the last three yearsfor proof of Turnover. Should be drawing total
monthly emoluments of not less than `1,15,000/-Candidates shall enclose their latest
true copy of Form 16 under IT Act along with theirapplication as proof of
emoluments.
D. Selection Methodology
Selection will be through written test and/or interview to be held at Visakhapatnam.
80

E. APPLICATION FEES :
` 300/- (Rupees Three Hundred only)
Application Fees must be deposited in RINL-RECRUITMENT Account
No.30589461220 at any of the core banking branches of State Bank of India in the
prescribed Challan. No other form of payment is accepted.
Format for Challanis available in the website www.vizagsteel.com on the link
Careers.
Candidates have to pay maximum bank commission @ `25/- per Challan for
depositing fees at other than SBI, Steel Plant Branch, Visakhapatnam, Branch Code
6318.
Candidates must fill-up the SBI Branch name, Branch Code, candidates name and
date of birth carefully in the Challan and sign at the place Deposited by: __________.
Last date for deposit of application fees is 27th August 2014.
Candidates should mention in the appropriate column in the application form the
details of SBI branch, Branch code, City, date of deposit and the Journal Number.
Candidates should submit original counterfoil of the Challan (VSP copy) along with
their
Application Form.
Application Fees once deposited into RINLs account will not be refunded under
any
circumstances, even if the candidate is rejected on scrutiny or application not received
in time due to postal delay / loss.
The candidate should retain his / her copy of the counterfoil of the Challan for
further reference.
F. How to Apply
Interested eligible candidates should apply giving full particulars as indicated in the
prescribed format available on the website www.vizagsteel.com on the link Careers.
Application in the prescribed format filled-up in BLOCK CAPITAL LETTERS in
ENGLISH, duly signed and along with photograph (self attested) affixed on it should
be sent by Speed Post / RegisteredPost in a sealed cover by super scribing the
envelope APPLICATION FOR THE POST OF_____________ to Asst. General
Manager(Personnel)-Recruitment,

Room

No.

232,

Main

Administration

Building, Visakhapatnam Steel Plant, Visakhapatnam 530 031 so as to reach on

or before 27th August 2014.
81

Candidates must enclose along with their applications self attested copies of
certificates/ testimonials relating to:
i) Age (SSC/Matric certificate)
ii) Category Certificate {for OBC(Non-Creamy Layer) candidates}
iii) Educational qualifications
iv) Experience certificate
v) Proof of Pay (in case of PSUs/Govt.Sector) / Latest Form 16 (in case of Private
Sector)
G. GENERAL TERMS AND CONDITIONS:
1. Only Indian Nationals are eligible to apply.
2. Wherever CGPA/OGPA/DGPA or letter grade in a degree is awarded, its
equivalent percentage of marks must be indicated in the application as per norms
adopted by the University/Institute.
3. Candidates belonging to OBC category but coming in Creamy Layer will not be
entitled to the benefit of reservation and should apply as general category candidate.
4. Candidates must attach with the application, challan (VSP copy), documentary
evidence in support of age, educational qualifications, experience, caste certificate (in
case of OBC). All certificates /testimonials should be in English or Hindi.
5. Depending on the requirement, the Company reserves the right to cancel/restrict the
recruitment process or increase / curtail the number of vacancies without any further
notice and without assigning any reason thereof.
6. Incomplete / illegible / unsigned / multiple applications / applications not in the
prescribed format or without photograph / without copies of certificates in support of
age, qualification, category, experience and pay / or those received after last date will
be rejected.
7. The candidates are advised to ensure while applying that they fulfill the eligibility
criteria and other requirements mentioned in this advertisement and that the
particulars furnished by them are correct in all respects. In case it is detected at any
stage of recruitment process that the candidate does not fulfill the eligibility criteria
and/or does not comply with other requirements of this advertisement and/or he/she
has furnished any incorrect/false information or has suppressed any material fact(s),
his/her candidature is liable to be rejected. If any of the above shortcoming(s) is/are
detected, even after appointment, his/her services are liable to be terminated without
any notice.
82

8. All qualifications should be from a recognised Board/University/Institution in

India.
9. To & fro rail fare (3rd AC) by the shortest route will be reimbursed for attending
Interview on production of proof of journey.
10. The final selection is subject to the candidates being found medically fit as per
Companys Medical Rules.
11. Candidates working in Govt. / Semi-Govt. / Public Undertakings will have to
produce No Objection Certificate from the present employer at the time of
interview.
12. RINL shall not be responsible for any postal delay / loss in transit at any stage of
the recruitment process. No request in this regard will be entertained.
13. Canvassing in any form shall disqualify the candidature.
14. Any candidate submitting false declaration/certificate or indulging in malpractices
during selection process will be disqualified and also debarred from future
recruitments.
15. In case of any dispute, the case shall be settled in the Courts of Visakhapatnam
jurisdiction only.
16. Our contact details are Telephone No. 0891-2740405 and email id:
[email protected].
17. Complaints, if any, regarding the above recruitment may be lodged on Vigilance
Toll Free No.1800- 425-8878 and/or on our website www.vizagsteel.com under the
link Contact Us Vigilance.
*****
= AGM(Pers)I/c-Recruitment
Date:

Condition for retest:

The entrance test might be conducted again under the following
conditions:
Leakage of question papers
Repetition of previous papers
Problem in setting up the papers.
83

 Out of syllabus
Cancellation of actual tests as per change in management needs
Allegation of malpractices in a center .
Table 3.1 RECRUITMENT STATISTICS AT VSP TILL 2014:
Year

Executives
Gen

1980

1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999

169
129
138
53
61
128
165
131
234
408
242
124
163
26
42
29
60
172
12

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

12
7
1
1
81
5
79
105
6
45
129
133
52
54
3198

OBC

1
7
56
161
4
8
5

44
2
54
57
8
61
110
150
45
62
835

SC

ST

7
1
4
16
22
41
30
25
48
45
36
29
12

58
20
15
90
2

72

Non Executives
PH

5
1
5
14
10
21

4
3
12
2

1
1

25

27

28
22
8
25
53
49
9
22
744

39
38
69
4
12
8
4
5
358

3
2
1
3
2
2
1
16

Total

Gen

SC

ST

251

44

10

305

179
130
142
69
83
174
196
161
296
463
299
153
175
26
173
60
134
435
20

103
585
665
547
90

21
86
113
113
20

1
6
3
6
6

1733
1777
1569
704
2089
1507
514
14
42
38
42
5
1

314
192
445
361
483
241
71

89
84
214
98
116
114
80

112
29
15
1

104
21
31

125
677
781
666
116
0
2136
2053
2228
1163
2688
1862
671
18
272
101
99
8
1

20
13
2
0
1
177
7
200
222
91
135
304
340
110
143
4992

29
46
4
7
2

27
64
1
1

3
11
2
1
1

4
5

2
1

2
6
277
160
192
80
24
148

6
3
279
145
203
68
24
268
1
1140

1
34
73
70
93
30
13
95

117
26
39
15
4
20

3
20
8
16
5
1
18

3088

1213

78

84

2
13255

OBC

6
4
14
13
11
2

PH

Total

63
126
7
9
3
0
9
43
746
401
527
193
65
531
3
18693

The recruitment of candidates completely sticks to the advertisement and concession

of considering eligible candidates is possible within the deviations of the norms
defined by the functional director and the concerned departmental head.
. Selection:

a) The selection committee will assess the comparative merit of each candidate
in terms of his/her qualifications, experience, if any, and on the basis of
performance in the selection test(s) and interview as per criteria laid down and
come to a conclusion as to whether or not the candidate would measure up to
the requirements of the job he/she is expected to perform. However, wherever
marks are assigned, committee members will be required to give marks on the
basis of criteria prescribed depending upon the relative performance of each
candidate in the test/interview and keeping in view his/her suitability for the
job in question.
b) Candidates found suitable will be empanelled in order of merit on the basis of
following:
Wherever marks are assigned, merit list of candidates who have secured minimum
qualifying marks as at para-will be prepared on the basis of aggregate marks
secured by the candidates in selection/test(s); and wherever selection is made for
more than one discipline/stream, merit lists would be prepared discipline/streamwise.
In case of a tie while preparation of merit list, preference will be given to
candidates in the following order.
1) Higher marks in written test.
2) Higher marks in Job test/Physical test
3) Date of Birth (those born earlier).
Wherever selection is made only on the basis of evaluation of the selection
committee, merit lists of the candidates will be drawn up as recommended by the
selection committee.
The selection committee shall back-up its recommendations based on marks
assigned for the following criteria:
1) Communication Skills
2) Job Knowledge
3) Planning & Initiative
85

4) Alertness and Reasoning Ability

5) Leadership and Man Management Skills
Note: Weightage on different criteria shall be decided by the concerned Functional
Director in consultation with Director (Personnel) taking the department, post, grade,
etc. into consideration. If required, further criteria with appropriate weightage may be
added, as decided by the concerned Functional Director in consultation with Director
(Personnel).
This will not be applicable for selection of non-executives which shall be through
written test and/or job test/physical test and interview.
* The select list so prepared will be subject to the approval of the competent authority
and will remain valid for a maximum period of one year from the date of such
approval. The panel shall only be utilized to fill up the unfilled posts of the same
recruitment.
The marks or merit list shall not be disclosed to the public till the recruitment process
is completed and all the vacancies are filled
The respective training is given the low level eligible candidates were forwarded to
the top level management to meet the needs of the job specification such that to
handle the job efficiently.
And the candidates are forwarded to the training and development program such that
to attain the eligible qualities of a VSP employee technically and non technically ie.,
understanding the norms and mores of the organization.
of the departments and checked for meeting the organizational needs.
Once the candidate got selected the background verification starts in the period of
training. A request for verification of documents will be sent to the respective
university and if they find any fake or accusation of tampering the services of the
candidate will be terminated as per the company norms

86

CHAPTER-IV
Observations
Suggestions
Conclusions
Limitations Of The
Study

87

OBSERVATIONS

88

Table 4.1 Analysis on recruitment with respect to Promotion and

Retirement for 2014-2019:

Cadre
E9
E8
E7
E6
E5
E4
E3
E2
E1
E0
JO

2014
1
6
35
56
74
117
139
174
244
1
41

2015
1
4
123
52
228
20
226
277
352
47
157

2016
2
33
99
73
90
40
325
232
179
101
302

2017
8
0
0
107
99
258
395
254
162
71
162

end of 5
2019 yrs
0
12
0
43
0
257
0
288
0
491
0
435
0
1085
0
937
0
937
0
220
2
664

2018
0
0
0
0
0
0
0
0
0
0
0

1200
cadre

1000

2014
800

2015
2016

600

2017
400

2018
2019

200

end of 5 yrs
0
1

10

11

Table 4.1 3 PROMOTION LIST AVAILABLE TILL 2019

The above tabulated data gives brief information about the number of likely eligible
candidates that are ready for promotion in that particular year fulfilling the norms of
Promotion Policy of VSP.
The following data gives the information regarding the number of candidates that are
carrying forward to next upcoming promotion period. For example if we have
89

considered a candidate who is currently in the promotion list of candidates of E0 in

the year of 2014, then his /her grade entry joining date in E1 will be in 2014 and
completing the period of 3 yrs , the same candidate will appear in the list of 2017 E1
promotion list of candidates. Applying the same criteria for all the grades the
information available is as follows:

cadre
E9
E8
E7
E6
E5
E4
E3
E2
E1
E0

2014
1
6
35
56
74
117
139
174
244
1

2015
1
4
123
52
228
20
226
277
352
47

2016
2
33
99
73
90
40
325
232
179
101

2017
14
35
56
181
216
397
569
498
163
41

2018
4
123
52
228
20
226
277
352
47
157

2019
33
99
73
90
40
325
232
179
101
302

END
OF 5
YRS
55
300
438
680
668
1125
1768
1712
1086
649

4ALTERED PROMOTION LIST :

E0
E1
E2

2019

E3

2018

E4

2017

E5

2016

E6

2015

E7

2014

E8
E9
0

100

200

300

400

90

500

600

100%
90%
80%

END OF 5 YRS

70%

2019

60%

2018

50%

2017

40%

2016

30%

2015

20%

2014

10%
0%
cadre E0

E1

E2

E3

E4

E5

E6

E7

E8

E9

Table 4.4 5Altered Promotion List

In consideration with the retirement policy as per the company norms a list of
candidates for the next 5 yrs is prepared.

Table 4.2 RETIREMENT STATISTICS FOR THE NEXT FIVE YEARS:

Cadre
E9
E8
E7
E6
E5
E4
E3
E2
E1
E0
JO
total

2014
2
3
7
2
12
24
7
3
1
8
5
74

2015
3
12
18
11
29
28
10
7
9
14
10
151

2016
2
5
32
12
12
32
11
8
2
18
23
157

2017
2
10
25
9
14
25
15
8
4
16
17
145

91

2018
0
4
45
16
14
28
24
5
6
14
25
181

2019
0
3
53
16
23
19
21
14
3
20
27
199

at the end of
5 yrs
9
37
180
66
104
156
88
45
25
90
107
907

JO
E0
E1
at the end of 5 yrs

E2

2019

E3

2018
E4

2017

E5

2016

E6

2015
2014

E7
E8
E9
0

50

100

150

200

Fig 4.5 6RETIREMENT STATISTICS FOR THE NEXT FIVE YEARS:

With respect to the number of candidates ready for retirement and expansion of plant
the need of recruitment arises to fill the gap between the requirement and availability.
Considering the retirement and promotion statistics there has been a vacancy of 248
junior trainees posts just for 2014.
And the training of candidates was processed as per the fulfillment of requirements.
Training makes a very important contribution to the development of the
organizations human resources and hence to the achievement of its aims and
objectives. To achieve its purpose, training needs to be effectively managed so that
the right training is given to the right people, in the right form, at right time and at the
right costs.
Training is an organized activity for increasing the knowledge and skills of people for
a definite purpose.
Need for Recruitment Requirement:
Need for recruitment raises when there is deficit between the retirements and the
number of promotion candidates in that particular year. Along with it the future
92

estimation of vacancies were also predicted, such that the deficit number can be filled
through this and the appropriate training can also be given in the right.Keeping in
view of the following points the feeder cadre E0 may be recruited as follows:
1. Number of retirements in respective cadres
2. Number of persons to be promoted to next level.
3. Requirement of E0 at base level.
Note: No direct recruitment to the E7,E8, and E9 ,apart from fill the deficit from the
lower levels ,the eligible candidates from other departments were taken as E6-AGM,
E7-DGM, E8- GM( last 3 years outstanding and average candidates were sent to
assessment centre and they would be assessed & processed to Talent Management
program), E9- ED( these people can be rotated throughout all the departments of the
plant).
Table 4.6 Future Requirements

Cadre
E0

2014
27

2015
35

2016
147

2017
59

2018
157

Grand
2019 Total
301
726

Numbers given are approximate and this can be varied according to the need.

E0
800
700
600
500
400
E0

300
200
100
0
2014

2015

2016

2017

2018

93

2019

grand
total

The above furnished analysis depicts the need for recruitment in the next five
years and the factors affecting analogy was also well describes the terms and
conditions that are to be followed by VSP in career planning of its employee
influencing the growth of the organization.

94

NEW PRACTICES IN
RECRUITMENT

95

The Latest Recruiting Opportunities for 2014

The eight top opportunities that will dominate strategic corporate recruiting during
2014 include:
1) The competition for top talent intensifies you could call 2014 the year
that intense recruiting competition returned. That is because after years of
slack hiring, the competition for top performers and technical talent will
increase over the next year in many industries to the point where current
recruiting resources and tools will be stretched to the limit. Aggressiveness,
the need for counteroffers, higher rejection rates, and a renewed focus on
recruiting the currently employed will all return to prominence. As a result of
this increased competition, executives will begin to put pressure on recruiting
to produce new recruiting approaches that provide them with a competitive
talent advantage.
2) A metric-driven employee referral program becomes the dominant
hiring source as more firms adopt quality of hire metrics, it becomes even
clearer that well-designed employer referral programs produce high
performers, high retention rates, and if managed correctly, they are faster, just
as diverse, and often cheaper than all other sources. Referrals are obviously
not new but the results that they produce have been recently strengthened by
the astonishing growth and usage of social media. The impact of social media
has been so strong that that the referral hire target for top firms is now
approaching a dominant 50 percent of all hires. The most effective programs
will adopt specialized types of referrals including assigned referrals, proactive
referrals, college referrals, and non-employee referrals. Overall the 2014
strategic referral goal should be to build a recruiting culture which makes
every employee a 24/7 talent scout, and to channel these employee talent
discoveries through a data-driven employee referral program. At the same
time, many of the recently introduced vendor supplied external referral
programs will begin their inevitable decline.
96

3) Predictive metrics and the use of big data move from interesting to
essential after years of struggling with historical metrics that have had
only minimal impact, recruiting leaders are beginning to follow the lead of the
rest of the business in adapting advanced metrics. This new focus will be on
real-time metrics that let managers know whats happening today, and
predictive metrics, which alert everyone about upcoming recruiting problems
and opportunities, so that they can act appropriately with time to spare.
Although still in its infancy, a handful of vendors are beginning to show that
you can actually identify hundreds of top performers who are not currently
looking for a job (the so-called passives) using external big data. These
advanced metric developments are on top of the established trend of shifting
recruiting toward a data-supported decision model.
4) Employer branding returns as the only long-term recruiting strategy
after years of minimal funding and attention, strategic employer branding
begins its return as the only long-term recruiting strategy. This shift is partially
due to increased recruiting competition but it also comes about because social
media now makes it so easy for others to virally spread either positive or
negative comments covering working at your firm. The willingness of current
and former employees to comment online about their work environment
increases the impact of firms that reveal what employees and applicants say
(i.e. Glassdoor, LinkedIn, and Universum). Talent leaders are also gradually
learning that providing a weak candidate experience can quickly damage that
brand. There is now growing divisions between the one percent top employer
brand firms in each industry (e.g. Google, Facebook, Deloitte, P&G, and
McKinsey) and the remaining 99 percent of firms that simply offer paycheck
jobs. This dramatic and perhaps insurmountable difference in brand strength
and employee treatment may permanently limit the capability of the remaining
99 percent to attract any more-than-average talent.
5) Recruiting finally adopts the practice of monetizing its business impacts
even though it has long been a standard business practice, recruiting is finally
beginning to move away from its long-held attempt to align with business
goals and instead focus on having a direct impact on business goals. Because
revenue is one of the prime corporate goals, by quantifying the revenue
impacts of great compared to average and weak hires, recruiting can now
97

convincingly demonstrate its highest of all talent function business impacts

to executives. Demonstrating the direct connection between recruiting results
and improved business results will eventually supplant quality of hire as the
most important recruiting measurement. By monetizing its revenue impacts,
recruiting can make a continuous business case, which will provide it with the
necessary funding to meet this latest hiring surge.
6) A focus on becoming a serial innovation firm increases the need for
recruiting innovators the wild economic success of serial innovation driven
firms like Apple, Google, and Facebook have demonstrated to executives the
high economic impact of hiring, retaining, and managing innovators. The
renewed expectation for rapid corporate growth means that more innovators
must be recruited. That simply cant happen unless current recruiting systems
are redesigned so that they can now effectively recruit and hire these hard-toland innovators.
7) Boomerangs become a primary target once again boomerang rehires
have proven to be one of the highest qualities of hire sources, and this new
talent shortage will return them to prominence after years of inattention. As
the competition for talent heats up, the best firms will re-energize alumni
groups and they will use them as the mechanism for bringing back the very
best former employees with a proven track record (among the many who were
recently released). This increased emphasis will eventually lead to boomerang
rehires reaching nearly 15 percent of all hires.
8) Accepting social media profiles in lieu of resumes opens the door to many
passives the unabated corporate goal of targeting and recruiting those top
prospectswho are not in job search mode cannot be met if an up-to-date
resume is required. That is because these individuals often resist applying for a
job simply because they dont have the time to update their resume. Although
there are still legal and administrative hurdles, more and more firms are
learning that accepting a social media profile alone (usually a LinkedIn
profile) is more than adequate at least initially to begin the hiring process.

98

a. Section 2: Currently Impactful Trends That Will Continue to Remain

Important
9) Six major corporate recruiting trends that have been prominent during the last
year will continue to be significant corporate recruiting trends during the next
year.
10) The mobile platform continues to be a critical tool even though last year
was the year of the mobile platform, the impact of this platform in recruiting
will continue to expand and grow. The emergence of the technical capability
that allows the direct instant application for jobs from mobile phones will
soon become mainstream. A multitude of startups will continue their
development of a variety of recruiting-focused mobile phone apps.
11) A data-driven approach to operations continues to be the benchmark
standard even though most business functions have long ago shifted to
data-driven decision making, the practice is strikingly unusual within
recruiting. Google continues to separate itself from every other firm in its
comprehensive data-driven approach to recruiting and its use of predictive
metrics. Its recent data-driven research on the ineffectiveness of many
traditional recruiting tools can only be classified as groundbreaking.
12) Live video interviewing steadily grows in acceptance live video
interviews has now proven its effectiveness, so its use will continue to expand
until it becomes the standard practice, at least for initial interviews.
13) On-line candidate assessment continues toward the mainstream as
online technical knowledge and skill assessment options become cheaper and
more effective, they will continue their growth until they become main stream.
Their impact is high because they reduce unnecessary interviews and they can
dramatically improve the quality of hire.
14) Remote work continues to expand the talent pool the growth of
technology and the willingness of managers to accept remote work positions
will continue to dramatically expand the number of available recruits for those
remote work jobs. This shift to remote work will also force recruiting to
increase its capability to find and land candidates around the globe.

99

15) Accelerated internal movement is still needed continued uneven growth in

business units will mean that there will be a much greater need for the rapid
movement of current employees into new areas where they can have a higher
impact. The most effective solutions have involved either using corporate
recruiters to proactively move underused employees or encouraging employee
referrals to quickly identify a wider range of talent for internal openings.

100

CONSTRAINTS TO
ADOPT NEW TRENDS
AT VSP

101

Constraints for Growth of New Practices:

From the year 2010 VSP has adopted the culture of campus interviews for
recruitment process but there are some constraints for public sector based
companies were unable to practice due to the recent litigations involved and the
amendments made by different state governments.
LEGAL ISSUES:
A public interest litigation petition has been filed in the Madras High Court
seeking a direction to the authorities to ban all campus interviews and to forbear
the Central and State government public sector undertakings from making
recruitment from campuses.
Similarly, the Central Bank of India appealed against a recent Bombay High Court
order restricting campus recruitment for appointment of officers by the bank, as
said by M V Tanksale, chairman and managing director of the Central Bank of
India. Other public sector banks, which are also affected by the court order, are
likely to join the appeal.Although management institutes have mostly completed
final placement process, they are worried this decision will affect their students in
the coming period. Given the slump in the job market, public sector banks were
offering good positions with decent packages for students. Now, it is going to be
further challenging for students to find a secure job, said the placement head of a
Mumbai-based business school. Human resource consultants also explained
management students hopeful of getting placed with public sector banks would
have to find other options. The senior official of a New Delhi-based HR
consultancy, who is involved in public sector recruitments, said that government
banks are preferred by students as they offer job security.
While pay packages may not be very high, these candidates are comforted by the
fact that these firms do not have a hire-and-fire policy. Especially when the job
market is slow, these banks could have offered excellent career opportunities.

102

Solution: VSP is going for the colleges and universities where there is all over
India intake such that to avoid legal issues and to ensure all India representation
and opportunity like NIITs and JNTU.

103

SUGGESTIONS

104

Public sector doesnt mean that it should go with old trend of recruiting it can also
go with the new trends that were in practice, moreover it is difficult to bring
changes in the whole system better go gradually.
SUGGESTIONS:
Here are 11 suggestions that the public sector might deploy that parallel successful
practices in the private sector:
1) Conduct better workforce planning: For years, weve been hearing that the
retirement tsunami would soon be washing over the government and
government agencies need to plan for these anticipated vacancies. The bestmanaged private sector companies truly value the talent in their organizations,
and they produce semi-annual or annual workforce staffing plans in order to
strategically plan for anticipated vacancies. Companies analyze growth,
anticipated retirements, voluntary and non-voluntary attrition, skills gaps, as
well as expertise in technologies being taught in college that current
employees might not possess. This planning usually results in an algorithm
that predicts hires needed from both the experienced marketplace and
campuses. This creates a more quantifiable, strategic approach to recruiting.
While somewhat risky if the hiring assumptions do not materialize, this
proactive approach has proven to be effective in the private sector (e.g.
financial institutions and accounting firms) but most government agencies
have not widely adopted this approach.
2) Understand

and

leverage

the

agencys

employer

value

proposition: Highlighting an agencys mission, while important, is simply not

enough to convince applicants to apply. Agencies must understand their EVP
and how it differentiates them from the competition. What is the agency
culture? What impacts does the agency have? What attracts people to join the
agency? Why do they stay? What does the future hold for the agency? Based
on factors like these, agencies can design talent attraction strategies. The
private sector puts a great deal of effort into defining and tailoring an EVP that
105

sets the company up for consistent success in attracting people that will fit the
culture and want to grow there. The culture should be appealing to the target
demographics, but above all it must be genuine. Artificial branding can dupe
people into applying, but when employees discover the culture is not as
advertised they are quick to move on to greener pastures, wasting the
investment the agency made to attract and hire that person, as well as incurring
the cost of hiring a replacement.
3) Use intern programs more strategically: In 2009, the Partnership for Public
Service study, Leaving Talent on the Table, revealed that less than 10 percent
of federal interns were being converted into permanent hires. In stark contrast,
the average conversion rate of interns in private industry is between 55-60
percent. In public accounting, it is around 90 percent! According to the
Partnership, federal agencies are reluctant to offer permanent (full-time)
positions at the conclusion of a successful summer internship because the
agencies are uncertain if they will have the authorized vacancies when the
interns graduate. This is a direct roadblock to retaining top talent and, in
effect, the agencies wind up training students who competitors often hire. The
Office of Personnel Managements new Pathways program has made it easier
to hire interns into permanent (full-time) jobs, but agencies need to work
harder to compete with the private sector.
4) Concentrate on Academic Institutions: In some government agencies there
is a misconception that recruiting at specific universities may conflict with
merit principles that require vacancies to be open to all qualified candidates.
While we are not advocating excluding any applicants, we are suggesting that
there are certain programs or majors that can naturally serve as feeders for
certain agencies. For an agency to truly penetrate a university to source talent,
it must take a concerted effort to partner with relevant academic departments,
faculty members, student organizations and clubs, just as the private sector
does.
5) Form campus teams composed of alumni and non-HR employees at key
universities: Undoubtedly, a significant difference between private industry
and governmental recruitment activities is the deployment of campus teams to
help identify talent. In the private sector, teams comprised of non-HR staff
attend events, offer educational training, participate on panels, and engage in a
106

wide range of other campus activities that are essential to identify and attract
talent. Government agencies often rely solely on HR staff to recruit on
campus, with little (if any) support from employees in the positions into which
most students would be hired.
6) Use former interns as ambassadors and talent scouts: Some of the bestmanaged intern programs in the private sector employ their former interns in a
formal capacity as ambassadors to convince their fellow classmates of the
benefits of their companies. These former interns also serve as talent scouts,
identifying and engaging top students who should be considered or are
attracted to the company. Government organizations should use their interns in
a similar fashion as an inexpensive but effective way to source and attract the
best graduates for permanent positions.
7) Deploy senior executives early in the recruiting process: Campus
presentations are a great way to generate substantial and genuine interest
among students who are prospective job candidates. However, public sector
agencies often bring only lower-level staff or recruiters to speak about their
organizations. The most successful presentations in the private sector are often
delivered by senior executives. This is a significant differentiator because
students want to learn about positions they can aspire to attain. A senior
executive can provide first-hand knowledge about how to move up in an
organization, while a lower-level recruiter tends to lack this perspective and
experience.
8) Constantly assess and improve marketing and branding materials: Quite
often, federal agency recruiting materials and social media platforms are
outdated or are not appealing to millennial. At a recent campus presentation by
a federal agency at a major university, it was obvious that a standard slide
deck presented to MBA students was a generic presentation the agency used
not only for undergraduate audiences, but even for high school students.
Because this presentation was not customized for the audience or educational
level of attendees, it fell flat and was ineffective. The private sector devotes
resources to vetting marketing presentations, documents, job descriptions, and
job advertisements with an eye toward understanding and attracting relevant
talent. Employer branding is increasingly important, and organizations can no
longer afford to use one-size-fits-all messaging. By survey on employment
107

preference data and experience with focus groups and student panels prove
that different majors, genders, ethnicities, and age groups are attracted to very
different aspects of employers. The organizations that understand and focus on
these nuances will most effectively engage the widest variety of talent.
9) Accelerate the hiring process: Most companies with robust campus
recruiting programs make offers to graduating students in November and
December, up to six months before the students graduate. These firms expect
decisions to be made on those offers by the end of January, if not sooner. In
MBA recruiting, companies try to influence students to make decisions even
sooner. Federal hiring programs, however, can have deadlines for resume
submission as late as April, with interviews occurring in April, May, and June,
before offers are extended in July. Thats at least six weeks after graduation!
As a result, these government agencies miss the best graduates who have
already received or accepted other offers. In fact, some government hiring
programs actually hurt a business schools reputation because schools usually
report job acceptance statistics to the press by the time students graduate.
10) Always look to learn: Continuously improve recruiting processes. This means
assessing the performance of staff involved in the recruiting process, the
benefits of intern programs, and other elements of the attraction and hiring
continuum. The students themselves have the most accurate view of how well
these components are working. Students view the hiring program with fresh
eyes, first-hand, and in full. So hiring organizations should ask probing
questions of those who were offered positions both those who accepted and
declined. Then engage other stakeholders: hiring managers, interviewers,
intern supervisors, faculty, and career services professionals at universities.
Analyze what worked well, what did not, where there are significant
challenges and where the best opportunities are. Then act on these learning.
11) Treat University recruiting like a business unit: Many public sector
agencies do not track or analyze key recruiting metrics. Standard hiring
measurements like recruiting yield (the number of candidates who need to go
through each step to produce a hire); hiring costs; return on investment; and
hires from career fairs, universities and diversity events; are just a few of the
metrics that the most successful companies track. These metrics help
employers improve their programs, enhance their presence at target schools
108

and conferences, and ensure the best use of human and financial capital. In
addition, senior executives should be holding the university relations function
accountable for demonstrating annually how it has recruited effectively and
cost-efficiently.
Government agencies are attractive employers for the millennial generation. Some
federal agencies hold great appeal as employers to a large pool of students across the
country. If the public sector can borrow some of the practical recruiting solutions
from the private sectors playbook, government agencies will not only recruit more
cost effectively in the long run, they will also improve the quality of new hires who
provide public services to our nations citizens.

109

LIMITATIONS OF
THE STUDY

110

Limitations of the Study

The study was carried based on the information and documents provided by the
organization and based on the interaction with the various employees of the respective
departments.

Most of the matters related to the statistics and policies were confidential so it was not
possible to gather much information.

This project is made on the basis of data available at present. The data or information
was insufficient to know the reasons for quitting the organizations. To say more
precisely, exit interview was not conducted to know the reasons for quitting, if company
related or personal.

The period of 31 days was not sufficient to explore more in different departments of the
organization.

111

CONCLUSION

112

Conclusion
Aristotle told us that the whole is more than the sum of its parts, this is certainly true when it
comes to having all managers fully understanding the organizations documented Business Plan
and ensuring the alignment of management thinking organization cannot build a good team of
working professionals without good Human Resources. And the first stage for the formation of
effective human resource is possible by recruitment and in VSP the scope for new entrees is
high as per the analysis made. Future prospects of VSP strives at its best in adopting new styles
of recruitment diversifying from the traditional practices ,and the career planning of its
employees was so well managed, that all categories of employees were given equal importance.
From the above analysis the need of manpower is estimated and suggestions for new practices
resulting effective work force is given. Implementation of these practices in this advanced world
leverages the public sector to with stand the competency and to bring effective advancements.

113

Bibliography:

Books of Rashtriya Ispat Nigam Limited : trainee development guide of VSP

Information given by the manager of personnel department.

General Articles And Magazines Of Rashtriya Ispat Nigam Limited.

Website:www.vizagsteel.com, www.businessdictionary.com,
www.indianinfoline.com,

http://placement.freshersworld.com/placement-

papers/Vizag-Steel-Plant-RINL/Selection-Procedure-Syllabus-41840,

Text book : Human Resource Management, V.S.P.Rao,3rd e.

Text book: Human Resource Management, Gary Dessler, Biju

Varkkey,12e,Pearson Publishers

Text

book:

Research

Methodology,

publishers

114

C.B.Kothari,2e,HPH

List of Tables:

TABLE No.

NAME OF THE TOPIC

PAGE No.

1.1

Major Units

20

1.2

Production Performance

20

1.3

Commercial Performance

21

1.4

Financial Performance

22

1.5

Major units of Raw materials

23

1.6

The growth in a chronological order

41

1.7

Steel Plants with foreign Collaborations

42

1.8

Annual Production

43

1.9

Expansion

43

3.1

Recruitment statistics at VSP till 2014:

84

4.1

Analysis on recruitment with respect to Promotion

89

and Retirement for 2014-2019

4.2

Retirement statistics for the next five years

91

4.6

Future Requirements

93

115

List of Figures
FIRURE No.

NAME OF THE FIGURE

PAGE No.

1.2

Production Performance

20

1.4

Financial Performance

22

1.10

Business life cycle of VSP

36

1.11

Promotion list available till 2019

89

4.3

Altered Promotion List

75

4.4

Altered Promotion List

91

4.5

Retirement statistics for the next five years

92

4.6

Future Requirements

93

116