Literature Review on 360 Degree Appraisal in Indian Corporate

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Performance Management System

Steel Authority of India Ltd

Atul, SAIL

1
PBT for Last three years
2007-08
PBT for the year 2007-08 Rs.11469 crore
3% of PBT Rs. 345 crore

2008-09
PBT for the year 2008-09 Rs.9403 crore

3% of PBT* Rs.282 crore

*No Incremental Profits so 3% PBT is kitty for PRP
Financial Implication of PRP
2009-10
PBT for the year 2009-10 Rs.10132 crore
3% of PBT Rs. 304 crore

10 % 0f incremental profit Rs.72.9 crore

PR P for distribution Rs.376.9crore

Total 5 % of PBT Rs 506 crore

SAIL Remuneration Committee
Remuneration Committee headed by Shri P K
Sengupta, Independent Director constituted on
20.8.2009. Three meetings held till
November,2009.
 On completion of his tenure, Remuneration
Committee reconstituted
 Headed by an Independent Director Shri A.K.
Goswami
 Other Members
 Director(Finance)
 Director(Personnel)
 Managing Director,DSP
 Remuneration Committee decided the PRP for
2007-08 and 2008-09 and the same was placed
before Board of Directors and implemented
MoU rating of SAIL
Eligibility levels of PRP shall be linked to MoU rating as show

MoU rating of Company PRP eligibility levels (% of Basic Pay)
Excellent 100%
Very Good 80%
Good 60%
Fair 40%
Poor Nil

MoU rating of SAIL for 2007-08 and 2008-09 is E
Methodology for Calculation :
PRP would be based on physical and financial performanc
Weightage for PRP will be as under :
Company Performance : 77.5%
Plant/Unit’s Performance i.e., actual v/s APP
a) Linked to Saleable Steel Production : 2.5%
b) Linked to Specific Energy Consumption : 2.
c) Linked to yield from Crude Steel to Saleable Steel : 2.
Sub total (a+b+c) : 7.5%
d) Linked to Actual PBT v/s Budgeted PBT 7.5%
Total (ii) i.e., (a+b+c+d) : 15%
Individual’s Performance : 7.5%
Formula for PRP for
2007-08 & 2008-09
Performance related payment for individual
executive will be determined by the following
formula :
[0.60 X Annual Basic Pay X MoU rating X {(77.5%
(Company Performance factor) +2.5% X Plant’s
Saleable Steel APP fulfillment% + 2.5% X Plant’s
Specific Energy Consumption APP fulfillment %+
2.5% X Plant’s Yield from Crude Steel to Saleable
Steel APP fulfillment % + 7.5% X Plant’s Budgeted
PBT fulfillment % + 7.5% X Individual Performance
rating)} X Grade Incentive X Ratio of available to
required amount.] – Adjustment of Performance
Related Payments i.e., Incentive/Reward and APLIS
OBJECTIVES OF THE EPMS

 To enable employees to plan their work,
utilize their capabilities and maximize their
contributions.

 To create a performance culture through
continuous performance improvements of
individual employees, teams and the
organization.

 To identify and develop leadership talent
for future.

8
COMPONENTS OF EPMS

 Goal alignment cascade workshops for Performance &
Development Planning.
 On-line System for Performance Management
 Assessing and Developing Competencies for the future
 Performance Review and Assessment
 Final Performance categorization of Ratings by
Performance Management Committee (PMC)
 Separate grading for performance and potential
 Transparency through communication of Performance
Rating to the executives
 Assessment of Assessors
 Leadership development and Competency building
through 360 Degrees and Assessment and
Development Centers (ADCs)

9
SALIENT FEATURES OF SYSTEM
 KPAs categorised as
 Routine
 Non Routine / Special Projects
(Weighted, quantifiable KPAs with evaluation criteria)
 Goal Alignment Cascade Workshops for sequentially
breaking down organizational objectives / targets into various
levels in the organization i.e. Plant / Deptt. / Individual. HoD
is responsible for performance of the department and for
conducting the Goal Alignment Cascade Workshop for
finalizing the KPAs for department / individual.
 All KPAs and performance plans are put on-line which are
accessible to all executives and departments
 A Performance Diary is maintained online to record
individual executive‟s performance highlights / constraints
which is accessible by both Reporting & Reviewing Officers.
 Assessment once a year but PRD to be held twice a year at
least prior to assessment.
 Multistage Assessment (by Self, Reporting & Reviewing)

10
SALIENT FEATURES OF SYSTEM

 Self-assessment by the individual based on his
achievements / shortcomings of KPAs as per task & targets
set at the start of the year.
 Independent assessment by Reporting & Reviewing
Officers
 PMC consists of HoD, Reviewing and Reporting Officers to
reduce subjectivity in grading as well as ownership of the
individual executive‟s grading
 There are 4 gradings EP,HP,AP & LP instead of existing
OABC.
 High level PMC to categorize Exceptional Performer and Low
Performer by recording two major achievements /
shortcomings
 2 separate gradings of executives on Performance and
Potential factors.

11
SALIENT FEATURES OF SYSTEM

 Use of 360 Degree Feedback and ADCs for
leadership development and competency building
and for self-development by the executive concerned
 Performance Development Plans made by the
executive in the beginning of the year on the basis of
performance plans.
 Competency assessments through ADCs and 360
Degree Feedback to feed into the development
plans.
 The Rep-O, Rev-O and HOD to review and ensure
the implementation of the plans.
 HRD assists in finalizing / implementing the
development plan
 Development Plan prepared and communicated
for Low Performers.
 Transparency in the new system has been introduced
through communication of final grading to all
executives.
12
KPAs
 KPAs are weighted, quantifiable with evaluation
criteria.
 KPAs are further classified as under :
 Routine KPAs (i.e. jobs of routine nature and
at the same time critical contributions of the
officer like filing of statutory returns for an
accounts officer or plant supervision for a shift
in-charge);
 Non-routine KPAs / Special Projects
• Non-routine KPAs are key contributions of the
role holder other than the routine operations;
and
• Special projects to be undertaken at the
initiatives of the executive concerned.
 As we go up in the managerial hierarchy, the
percentage of Non-Routine KPAs / Special Projects
will increase.
13
DEVELOPMENT PLANNING

 Executive to identify development needs along with plan to
be recorded in his performance plan
 Self development
 Training Inputs / Assistance required from Orgn.
 Any Training & Development support needed by the
executive should be approved by Reporting Officer along
with concurrence of HoD
 HoD to decide priority for covering executives and
communicate to unit HRD department the development
needs for his department at the beginning of the year.
 MTI to prepare training calendar and communicate to
individuals through HoDs.

14
WEIGHTAGES OF VARIOUS
COMPONENTS OF EPMS

Components E1-E5 E6-E7

Performance 60 50

Competencies 15 20

Values 15 15

Potential 10 15

Total 100 100

15
YEAR-END REVIEW & ASSESSMENT

 Assessment once a year but PRD twice a year
 Final performance review and recording of
comments by both executive concerned and his
Reporting officer on fulfillment of KPAs
 Multistage Assessment of Performance (by Self,
Reporting & Reviewing)
 Self-assessment by the individual based on his
achievements / shortcomings of KPAs as per task
& targets set at the start of the year. Marks
recorded by individual only on achievement of
KPAs i.e. performance.
 Reporting & Reviewing Officers independently
assess individuals both on performance factors as
well as competency factors which includes
potential and values and record marks.

16
YEAR-END REVIEW & ASSESSMENT

 Marks given by Reporting and Reviewing
Officers are visible to them after all of them
complete their assessment online.
 Final assessment and final grading decided by
PMC. The executives are appraised on
Performance factors and Competencies factors
(which includes Potential and Values)
separately and they are given two separate
gradings.

17
DEVELOPING COMPETENCIES FOR FUTURE

 Competencies required by all executives
to perform their current managerial roles;

 Competencies required to prepare them
for future roles (potential factors), and

 The values needed to be demonstrated by
executives all through their career.

18
COMPETENCIES

1. Technical/Functional competencies
2. Commercial acumen
3. Interpersonal skills and team work
4. Proactive Problem solving and Initiative
5. Communication skills
(listening, clarity of thought and expression, written
and oral)
6. Positive attitude
(viewing things with positiveness and optimism and
not being critical or cynical of everything, ability to look
at brighter side of change and various other decisions,
policies and innovations etc. and not being over critical
or all the time critical of people and events etc.)
19
POTENTIAL

Potential is defined as the ability to handle higher
responsibilities.
Assessment of Potential is meant for preparing executives for
handling higher roles as they grow in the organization.
Following attributes will be assessed for potential :
1. Vision and leadership
2. Ability to assume responsibility and take Decisions
3. Execution
4. Change Management
(openness to change, capacity to initiate and manage
change)
5. Creativity

20
VALUES

Values include beliefs, behaviors & actions that are to be
exhibited by every executive.
1. Customer satisfaction
2. Concern for people
3. Consistent Profitability
4. Commitment to excellence
5. Integrity and Character
(defined as coherence between thought, word and deed) i.e.
 Speaking fearlessly what one feels (not having one thing
in mind and speaking different things to please people or
gain advantage of some kind or the other)
 Attempting to keep up promises or verbal commitments
(doing what he says)
The first 4 values are Core Values as per ICS model which
every executive needs to inculcate in their Daily Work
schedule.

21
TRANSPARENCY

 Reporting Officer‟s comments captured in the online
EPMS system and visible to the individual.
 Final grades of the individual only on performance factors
communicated through system.
 For those identified as Low performer, specific
development plan to be prepared for his rehabilitation in
the same department. If successive LP, then rotation to
another department should be thought of to bring him
into the system.
 Development Plan for Low Performers also communicated
through the system along with his final grading.

22
RR

Remuneration
Committee

23
WEIGHTAGES OF VARIOUS
COMPONENTS OF EPMS

Ratings % age

Outstanding 10

Good 40

Average 38-42

Poor 8-10

Total 100

24
25
ASSESS VALUES USING THE INDICATORS
BELOW ON FIVE POINT SCALE

Level 5 Indicates that the Individual can be counted upon to exhibit the value all
the time with out exception. He has internalised this value and can be
considered as an example on this value and should be emulated by all. He
is a mentor and model for others and he/she influences others with this
value
Level 4 Indicating that the individual lives by the values almost all the time with
rare exceptions.
Level 3 Indicates that the individual lives by that value and exhibits most of the
time.
Level 2 Indicates that the value is demonstrated or shown by the individual some
times (50%)
Level 1 Indicates that the individual may show the value occasionally and needs
to practice and exhibit this lot more
Level 0 Indicates that the individual does not exhibit this character or value. If he
shows this it is ore an exception and he needs to learn to show this
behaviours
26
CUSTOMER SATISFACTION

CUSTOMER COMES FIRST, EVERY TIME
Customer satisfaction is the first priority of
every employee and the purpose of every
job.
We do not compromise this value because we
believe that this alone can enable us to
achieve the vision of
attaining market leadership.

27
CUSTOMER SATISFACTION

 Customer Focus (Internal or external, as appropriate)
 Ability to empathize with customers. Firmly believes in &
practices end to end Customer service. Excellent customer
orientation under any circumstances.
 Influence customer to enhance future business &
organization‟s image.
 Understands customer linkages within the job. Attempts to
resolve simple Problems and issues.
 Able to interpret & forward customer (internal or external)
feedback to superiors in a transparent Manner.
 Exhibits concern for all aspects that impact customer
satisfaction.
 Sensitive to internal and external customer interfaces and is
able to build trust in the relationship with minimal guidance.
 Senses the needs and expectations of the customer and acts
appropriately by overcoming the barriers of geography,
language and culture.
28
CUSTOMER SATISFACTION

 Is able to convert client relationships into a long term
association and can effectively manage in case of complex
problems.
 Seeks and is receptive to customer feedback and initiates
actions appropriately.
 Is able to build a Brand Equity for SAIL in the market
through understanding of the clients requirements and
working in partnership with them.
 Senses even the unstated needs and expectations of the
customer and acts appropriately.
 Can generate repeat business and create a 'preferred
company' image for SAIL.
 Is able to build informal relationships with customers and
leverage towards the business objectives.

29
CONCERN FOR PEOPLE

TALENT OF PEOPLE IS OUR GREATEST ASSET
We believe that developing competence and
commitment of our people for enhancing
their contribution, is important for
achieving customer satisfaction,
and thereby the prosperity of the company
and of the employees.

30
CONCERN FOR PEOPLE

 Always keeps employee interests in mind.
 Shows concern for fellow employees
 Shows concern for larger humanity
 Concerned about health, safety and environment
 Invests time and effort in developing people
 Helpful
 Empathetic
 Supports growth and development of colleagues, juniors and
others around him
 Facilitates learning among all staff and others around him
 Coaches and mentors juniors
 Invests time and effort in guiding and developing juniors and
other team members.
 Gives a sense of ownership and empowerment to juniors.
 Maintains motivation and morale among all staff members.
 Treats others with dignity and respect.
31
CONSISTENT PROFITABILITY

CONSISTENT AND SIGNIFICANT PROFITS
ARE ESSENTIAL FOR OUR GROWTH
We believe that consistent and
significant profitability must be the
essential outcome of all our activities.
This is necessary for modernization,
growth and market leadership.

32
CONSISTENT PROFITABILITY

 Constantly shows awareness of
profitability parameters: Cost, quality,
speed etc.
 Shows positive attitudes to change,
modernisation, use of new technologies
etc. for profitability
 Keeps abreast with latest technologies
 Strives for profitability and ROI in all
actions and activities
 Shows constantly quality conscious ness
 Shows cost consciousness
33
COMMITMENT TO EXCELLENCE

SAIL DOES IT BETTER, BETTER ….
We are committed to harnessing the full
potential of all our resources, through
creativity, continuous improvements and
teamwork.We believe that this is important
for making SAIL the best organization so
that our customers, employees and
shareholders have a sense of pride.

34
COMMITMENT TO EXCELLENCE

 Shows concern for excellence.
 Benchmarks with the best.
 Constantly seeking to improve the product
quality and processes.
 Encourages every one to be committed to
excellence
 Keeps the image of SAIL in forefront at all
times.
 Sets high targets and quality goals.

35
CHARACTER & INTEGRITY

Defined as coherence between thought, word and deed.
Speaking fearlessly what one feels (not having one thing in
mind and speaking different things to please people or gain
advantage of some kind or the other) attempting to keep up
promises or verbal commitments (doing what he says)”.
Indicators are:
 Speaks fearlessly what he/she feels
 Does not keep one thing in mind and speak other things to
different people to please them or gain advantage of some kind
or the other
 Keeps up verbal promises
 Does what he says
 Says what he intends to do
 Maintain coherence between thought, word and deed
 Does not cut corners ethically
 Does not play games with facts to win a point
 Keeps organizational interests above self interests

36
1. VISION AND LEADERSHIP
Level 0 • Understands only the tasks assigned to him.
 Has short span of attention.
 Cannot think long term and does not understand the company vision and
long term thinking. Understands his work in short doses.
Level 1 • Has some understanding of the vision and long term thinking
 Appreciates long term goals and ambitions of the company.
 Is approachable to subordinates and colleagues, shares data/information,
 Provides clarification willingly and patiently
Level 2 • Some times is able to give new ideas and formulate long term plans.
Beginning to think slightly bigger and on high canvass.
Level 3 • Thinks big
 Thinks ahead of others
 Articulates vision and presents big picture
 Thinks long term
 Always fits current actions to larger picture
 Sets ambitious goals
 Is empathetic to the issues and concerns of subordinates and colleagues.
 Delegates work to others – mentions duties and specifies the expected
results.
 Provides assistance as required.
 Fosters commitment among team members.
 Expresses his/her views in a forthright manner, while being sensitive to
other‟s perspective(s).
37
1. VISION AND LEADERSHIP
Level • Leads by example. Constantly links activities to vision and long
4 term thinking.
 Is consulted by subordinates and colleagues on issues and
concerns, is able to provide value addition to even complex
issues.
 Delegates work by assigning responsibility and authority –
encourages employees to present ideas and plans and also
provide continuous guidance and support to achieve results.
 Maintains calm equilibrium under delivery constraints/crisis,
sustaining performance.
 Guides, motivates and supports the entire team to achieving
goals
Level • Inspires others with vision and values.
5  Is able to create a sense of accountability amongst subordinates
and colleagues, provides guidance and support, and is able to
strategically introduce initiatives for developing skills and
motivating people at SAIL.
 Takes timely and appropriate decisions.
 Identifies and implements SAIL‟s vision. Is looked upon as a
mentor.
38
2. ABILITY TO ASSUME RESPONSIBILITY AND TAKE DECISIONS

Level 0  Does not take personal responsibility. Always makes excuses.
 Avoids taking responsibility. Does not take decisions.
Level 1  Completes tasks assigned with some monitoring.

Level 2  Takes responsibility occasionally. Collects information for decisions
and takes time for decisions. Takes decisions with support and
guidance
Level 3 • Takes personal responsibility for all actions
 Takes risks
 Does not look for excuses in the event of failures owns failures and
attempts to learn from the same
 Takes decision with speed
 Initiative
 Always first to volunteer
 Approaches things positively
 Demonstrates objectivity and rationality in decision making
 Considers all points of view in decisions
 Collects information adequately for decisions
 Decide on the basis of information than on her say and personal
preferences
39
2. ABILITY TO ASSUME RESPONSIBILITY AND TAKE DECISIONS

Level 4 • Always keeps organizational interests in mind
 Anticipates consequences of decisions
 Can be counted upon to take personal responsibility and take decisions.
Collects information needed for decisions making. Mobilizes resources and
support needed to take decisions and make things happen.
 Owns up mistakes.
Level 5 • Motivates other (juniors, colleagues and even seniors) to take
responsibility and take decisions.

40
3. EXECUTION ABILITY
Level 0 • Delays execution.
 Needs constant supervision and reminders. Lacks sense of priorities.
 Highly dependent.
Level 1 • Can complete tasks under supervision. Needs guidance and assistance in
planning. Cannot anticipate all requirements without help.

Level 2 • Is able to plan and prioritize for completion of defined task/s assigned
under the supervision of a superior.
 Estimates efforts required for completion of set goals and objectives.
 Attempts to use existing company resources, allocated to him/her, in an
optimal and cost effective manner.
Level 3 • Is able to plan and prioritize tasks needed for deliverables with minimal
guidance and can plan interactions with clients independently.
 Can anticipate issues that may arise and thus plans for contingencies and
uses effective systems to manage work.
 Channelizes efforts towards completion of set goals and objectives.
 Is able to plan and prioritize resource requirements for optimal utilization
of limited resources, when requirements far exceed the supply.
 Can be relied on to complete tasks once assigned and delivers results.
 Competes work on time. Does not require supervision

41
3. EXECUTION ABILITY

Level • Is able to prioritize tasks for self and team members through careful
4 consideration of its importance and urgency and based on an
understanding of resources available.
 Can visualize possible problems and can reschedule tasks in the face of
changing/ conflicting priorities with minimal guidance/supervision.
 Evaluates progress periodically and initiates appropriate actions.
 Is able to anticipate future requirements and plan ahead for necessary
resources to ensure optimal utilization of limited resource
Level • Analyses complex situations with numerous alternatives and possible
5 consequences.
 Facilitates the implementation of decisions through objective evaluation of
alternatives.
 Is able to assess availability of resources, implications of a situation and
plan proactively to prevent exceptions.
 Knows the time at which to monitor details of a work plan and manage
new developments without affecting prior commitments.
 Judiciously delegates responsibility to team members and supports their
initiative to achieve results.
 Takes into account current and future resource requirements in the
organization as a whole and is able to allocate company resources in the
most optimal manner to ensure smooth and cost effective functioning
 Seeks out and seized opportunities

42
4. CHANGE MANAGEMENT

Level 0 • Resistant to change. Prefers status quo.
Level 1 • Neutral to change does not resist and occasionally may follow and
demonstrates change orientation.
Level 2 • Is open to change and to new learning
 Changes as per requirements. Some times initiates change.
Level 3 • Initiate changes where required. Champions change process. Fast Adopts
innovations and new methods of doing things.
 Adapts readily to dynamic situations.
 Accepts new concepts and ways of working.
Level 4 • Expert in change. Understands need for change. Champions change.
 Encourages team members to adapt to changes and supports their
initiatives.
Level 5 • Mobilizes others for change
 Pushes others to change
 Design change strategies and manages change process. Helps others to
initiate and manage change. Facilitates change. Can be considered as
change master. Is able to manage & implement changes successfully.
 Influences others to take ownership for the change as required.
 Maintains team morale and communicates the purpose of change and how
it is to be achieved.

43
5. CREATIVITY
Level 0 • Conformist. Conventional thinker. Rigid in ideas and does not
take risks.
 Does not approve new ways of doing things even if they are cost
effective solutions. Slow to adopt innovations and approve
innovations.
Level 1 • .Follows tested out procedures. Appreciates others ideas and
thinking. Occasionally gives new ideas.

Level 2 • Looks for and suggests new ways to complete tasks.
 Demonstrates traits of original thinking

Level 3 • Questions established ways of approaching a task, generates new
ideas and proposes innovative solutions.
 Translates creative ideas into workable solutions.
 Thinks creatively and comes up with alternatives with speed
when needed
 Shows flexibility in thinking
 Comes up with original ideas
 Unconventional in thinking
 Generates ideas fluently
 Takes different view points
44
5. CREATIVITY

Level 4 • Solves problems an disuses in novel ways
 Generates new approaches to problems
 Generates innovative ideas to sustain current level of business in
the changing environment.
 Tackles tasks creatively, evaluating options and adopting
innovative solutions to resolve problems.
 Foresees and develops new techniques and methods, products
and services.
 Introduces and adapts techniques from other areas to the benefit
of own functional area
Level 5 • Provides innovative ideas to create competitive edge and
business advantage
 Is sought by others for his/her creative skills.
 Sees incremental opportunities in the seemingly impossible to
resolve problems.

45
COMPETENCY ASSESSMENT : 5 POINTS SCALE
Level or Description of assessment
Rating
Level 0 • Does not exhibit any indicators of this competency at all and some times may
Absent even show the negative side of this competency.
Level 1 • Is a beginner and shows one or two indicators of this competency indicating he
Beginner may have this to a marginally noticeable extent.
Level 2 • To some extent the candidates exhibits this competency. This is more than once
Learner or twice.
 Some of the indicators are exhibited indicating that he is acquiring and has
crossed the beginning stage
Level 3  The candidate has demonstrated this competency adequately during the year
Practitioner and he seems to have it and practice it adequately.
 To a good extent the candidates exhibits this competency. Shows most
indicators.
 He can be considered a practitioner of this competency
Level 4  The candidate has mastered this competence or quality and exhibits this in
Specialist abundance.
 To a very great extent he seems to practice and he can be considered as a
specialist in this.
 To a very great extent he seems to practice and he can be considered as a
specialist in this.
Level 5  He goes beyond specialization and influences others also to acquire this besides
Leader he himself demonstrating this.
teacher  Sets example for others and teaches others influence others also to exhibit this
(Mentor) competency. Develops others. 46
1. TECHNICAL AND FUNCTIONAL COMPETENCIES
Level 0 Lacks technical knowledge and or functional expertise
New to the function
Yet to acquire knowledge and information.
Needs to acquire technical and functional knowledge

Level 1 •Beginning to be familiar with the industry and his function
Asks relevant questions when assigned a job
Seem to be acquiring knowledge of his job or function

Level 2 •Knows the job he is handling
Knows all aspects of his job
Has a acceptable level of information and technical knowledge

Level 3 •Shows adequate technical knowledge and information of steel
Demonstrates basic knowledge required by the job.

Level 4 •Exhibits in-depth knowledge of his subject
Shows skills in solving job related issues and problems
Solves sophisticated problems and issues using his knowledge
Demonstrates thorough knowledge of his function
Reads latest journals, magazines, and other literature relating to his job or
function
Shows thoroughness of knowledge in technical processes and functional know
how
Level 5 •Leader in knowledge and skills
Teaches and trains others in his function
Sets an example to others in terms of his technical and functional knowledge

47
2. COMMERCIAL ACUMEN
Level 0  Lacks commercial acumen. Cannot yet take any business decisions.
 Not yet sensitive to costs and ROI.
Level 1 • Can think commercially.
 Beginning to understand business, cost implication of decisions, quality
implications and calculating ROI.

Level 2 • Understands to some extent the costs, hidden costs, cost of time, opportunity
cost, implications of decisions to quality, customer, products, profits etc.
 Showing cost sensitivity some times.
Level 3 • Keeps in mind the costs and benefits of all activities
 Sensitive to commercial information
 Cost conscious, Conscious of time.
 Calculative (ROI) and always examines decisions and activates in terms of costs
and benefits. Eliminates unnecessary activities and concentrates on important
and crucial activities.
Level 4 • Looks for opportunities and looks at events from a business angle
 Collects information for business and questions various activities and their costs
and benefits.
 Is able to follow up on leads and gather information for appropriate action by
superiors.
 Works for cost and quality advantage.
 Bench marks with the best.
 Actively collects business and process information to get advantage for SAIL or
to his department.
48
2. COMMERCIAL ACUMEN

Level 5 • Works to develop personal relationships with clients and to influence them.
Thinks entrepreneurially. Influences team members to think
entrepreneurially and gets them to be cost sensitive.
 Aware of client‟s business direction/industry trends.
 Is quick to spot opportunities to develop relationships that will increase Sail‟s
visibility. This would be through attending or speaking at Public forum etc.
 Participates in client presentations, preparation of proposals/estimations.

49
3. INTERPERSONAL AND TEAM WORK

• Does not get along well with people. Tends to get into conflicts. Disturbs people
Level 0 and has difficulty maintaining interpersonal relations.
 Not a good team worker.
 Wastes a lot of teams and other‟s time.
 Insensitive to team needs and lacks empathy.
Level 1 • Beginning to understand team members and their requirements.
 Beginning to cooperate.
 Makes efforts to understand and help team members.
 Listens to some extent.
Level 2 • Provides information for team members whenever asked.
 Listens to others some times.
 Shows interpersonal competence and team work some times and not all the
time.
 Some times cooperates with team.
Level 3 • Listens attentively in conversations
 Communicates clearly his view points
 Shows sensitivity to the feelings of others
 Goes out of way to help other members
 Polite in dealing with seniors

50
3. INTERPERSONAL AND TEAM WORK
Level 3  Actively supports team and undertakes team responsibilities
(Contd.)  Carries people and other team members along
 Listens to others and is willing to take on board their views.
 Controls personal prejudices that come in the way of teamwork.
 Demonstrates an understanding of team roles and a commitment to team
decisions. Actively contributes to team goals.
 Treats others with respect and dignity.
Level 4 • Polite and sensitive in dealing with juniors
 Shows humility and not ego
 Looks for opportunities to build the team
 Always keeps team interests in mind
 Looks actively for opportunities for helping team members
 Is an active team member and manages group processes by taking account
of Individual and group behavior.
 Willingly collaborates with other team members and resolves conflicts with
hem openly.
 Initiates teamwork & guides the team to complete tasks on time.
Level 5 • Mastered interpersonal competence. Gets along with all. Sets example in
interpersonal relations.
 Leads others and helps other to maintain good relations.
 Manages and maintains team morale and motivation. Builds team spirit.
 Helps conflicting parties to come to terms and designs processes and
systems that enhance team work and collaboration.
51
4. POSITIVE ATTITUDE
• Tends to interpret most things negatively
Level 0  Tends to make cynical comments
 Shares pessimism and negative thoughts. Complains most of the time. Looks for
external interventions mostly. Does not have any good things to say on others.
 Looks for excuses
 Take an anti establishment view and may even be critical about various events
and happenings
 Spreads negativism and negative feelings to others

Level 1 • Beginning to appreciate the business, company, department and other things
here.
 Beginning to make some positive comments.
 Beginning to see things less cynically and in a positive way.
 Treats some with respect and positive ness.
 Beginning to see decisions and policies in a positive way.
Level 2 • Appreciates SAIL, its policies, team members and events around some times.
 Showing positive ness some times.
 Does not make cynical comments
 Takes a positive view of life

52
4. POSITIVE ATTITUDE
Level 3 • Takes a positive view of things.
 Responds positively to requests.
 Respects the company, department, colleagues and events.
 Supports department and other departments in conversations
 Does not unnecessarily criticize policies
 Takes a very positive view of work
 Always speaks positively about SAIL
 Takes a positive view of his department
 Adheres to organization’s code of conduct and work practices.
 Ensures judicious usage of Organization’s and customer’s resources
Level 4 • Treats failures as learning experiences
 Takes a positive view of life.
 Respects the value of other members’ time, honors commitments related to work and the team.
Level 5 • Always thinks positively and sees things optimistically.
 Influences others to think positively.
 Sees positive things in everything and influences others to view positively. Makes people happy by
encouraging and optimism.
 Always in tune with organization and industry norms.
 Accepted as a role model. I.e. is able to lead by example.
 Sensitive and tolerant when dealing with people.
 Is able to influence others by example to follow the same code of conduct
53
5. PROACTIVE PROBLEM SOLVING
• Unable to take initiative and solve problems. Gets paralyzed when faced with
Level 0 problems. Generates and spreads tension around in the event of problems.
 Wastes the time and resources of others with problems.
 Complains mostly when faced with problems.
Level 1 • Does not complain when faced with problems. Takes initiative and tries to do
things if it is in his expertise area.
 Beginning to take initiative. Has shown interest in solving problems and
taking initiative.
Level 2 • Is able to identify various issues in simple tasks/problems.
 Exhibits ability to deal with matters/issues/situations in a logical manner.
 Able to do simple diagnostic/troubleshooting to identify issues; identify
solutions under guidance.
 Brings to the notice of seniors whenever problems are likely to occur or
issues are likely to prevent organizational functioning
Level 3 • Has solutions to simple problems and apply the same independently.
 Weighs situations appropriately and then reacts.
 Effective in drawing logical conclusions about work related
issues/matters/situations.
 Able to anticipate and solve routine problems
 Generates alternatives quickly when faced with a problem or an issue
without having to be told
 Takes initiative in solving problems
 Takes care to prevent or avoid problems
54
5. PROACTIVE PROBLEM SOLVING
Level 4 • Solves problems aggressively without having to be told
 Demonstrates creativity and creative thinking
 Thinks un conventionally
 Can be counted on to solve any kind pf problems.
 Takes initiative and takes decisions
 Doe not have to be told
 Initiates action on his won when required
 Has demonstrated ability to isolate issues and analyze their relative
importance/impact on the issues, and solved the same.
 Is able to develop alternate solutions/approaches for complex problems
successfully apply his/her analytical mind to resolve crises.
 Always weighs the pros and cons in a situation
 Keeps in mind the holistic view while making any decisions.
 Takes initiative to anticipate problems
Level 5 • Is able to take a bird‟s eye view before going into details, is able to
distinguish the relative importance and impact even in case of complex
assignments/problems.
 Able to provide solutions to complex problems by putting problem
issues into context.
 Is able to break down a crisis/problem into discrete tasks and
successfully manage it from the front.
 Creates problem solving capabilities among juniors
 Develops juniors to solve problems
55
6. COMMUNICATION SKILLS
• Has difficulty communicating verbally or in writing or in both
Level 0 • Needs to be trained.
 Does not communicate fully and adequately
Level 1 • Beginning to learn to communicate. Communicates some what
clearly and occasionally.
Level 2 • Is able to communicate orally and in writing so that the required
information is presented accurately and in a logical sequence.
 Listens actively, raises doubts, questions assumptions, etc., and
clarifies the same appropriately
 Thinks and communicates clearly in speech and writing
 Articulates thoughts and views
 Listens to others carefully
 Interprets requirements of others
Level 3 • Can bring attention to his/her view point by expressing it clearly,
precisely and simply.
 Communicates effectively through all available media of
communication
 Takes initiative to communicate
 Give information required for others
 Expresses him self clearly and precisely
 Does not hide information
 Transparency in dealings and expressions

56
6. COMMUNICATION SKILLS
Level 4 • Is able to decide inputs that need to go into complex
reports/updates/presentations, based on the purpose and
integrate information/data from diverse sources into one
cohesive report.
 Can express opinions on complex issues to an audience and
flex communication style as required.
 Has adequately proven ability to communicate with customers.
Level 5 • Is able to visualize all possible doubts/ issues that may arise
and address them logically in letters/
reports/updates/presentations.
 Can adapt communication style with ease based on group
reactions.
 Is accepted as a master in comprehending and communicating
effectively with peers, superiors, subordinates and customers –
both verbal and written.
 Inspires with communication. Trains juniors to be good
communicators.

57
PERFORMANCE POTENTIAL MATRIX

P
O
EP B B A O
T
E
HP B B A A
N AP C B B B
T
I LP C C B B
A
L
LP AP HP EP
PERFORMANCE

58
FEATURES OF SAIL EPAS

 KPAs, Tasks and Targets setting
 Self Appraisal and Performance Review &
Planning discussion focussing on -
 Task / targets fulfilled
 Constraints faced
 Facilitating resources
 Suggestions for improvement
 Highlights of performance
 Major strengths
 Development needs
 Assessment by Rep. & Rev. Officers
 Primary grading
 Final grading and evaluation by PRC

59
EPAS FORM

60
IMPLEMENTATION ISSUES OF EPAS

EPAS system was good but faced implementation problems
like:
 KPAs not defined at the beginning of year rather framed
at the end of the year on the basis of actual job done
during the year
 Performance mentioned in self appraisal form had no
direct linkage with final marks
 No meaningful feedback system to improve performance
of the individual
• time given for PRP short
• lack of skills in conducting counselling and feedback
sessions
 Lack of transparency in processes and assessment which
generated mistrust in the system
 Single grading of performance and potential factors
based on perception on total performance during the
year
• Marks given in totality as against individual KPAs or
factors 61
IMPLEMENTATION ISSUES OF EPAS

 Gradings given looking into eligibility for promotion – Rotation
of appraisal gradings.
• Role of reporting/reviewing officer in determining
performance grading was minimal. PRC decided the grading
 Forced distribution system into „OABC‟ gradings followed
 Potential assessment of executives not done – therefore no
differentiation between high and low performers
 No communication of final gradings to individuals or his
superiors
 System reduced to a mechanism for granting promotion.
• Less emphasis on other inputs like T&D, job rotation,
identifying high potential executives, succession planning,
etc.
 System driven by HR rather than Line

62
GUIDING FACTORS
PMS should address the following :
 Set of Individual KPAs assigned to flow from organisational
goals
 Individual performance to be rated against set of KPAs
• mutually agreed upon between appraisee and appraiser at
the beginning of the year
• Periodic feedback on performance to create a performance
culture
 Opportunity for Individuals to demonstrate their potential
• by taking challenging tasks beyond routine jobs
 Transparency in Performance Assessment
 Separate assessment for Performance and Potential
 Proper follow-up for implementation is a prerequisite
• otherwise there is every likelihood for failure however, good
a system is designed
 Line driven. Role of HR limited to that of a facilitator
 IT enabled systems in large organisations for ease in
monitoring and retrieval of data
 Linkage to other HR sub-systems and tools
63
DEVELOPMENT OF NEW SYSTEM

 Questionnaire survey and discussion with executives across the
Company at all levels
 Best practices in PMS followed in various organisations in India
and abroad
 Formation of Core Group of Line & HR professionals
 Envisioning workshop with Top Management Team
 Designing of PMS system by Core Group
 Testing the system and seeking involvement of all plants/units/
stakeholders for obtaining necessary approvals/clearances
 Draft PMS discussed with cross section of executives - 5000
officers participated in the process
 Designing of IT enabled PMS system by in-house team and
putting intranet systems in place across all units spread all over
India linked to a Central Server
 Identification of PMS Champions and preparation of standard
communication module for IRPs and training of IRPs by Core
Group
 Communication across plants/units by IRPs covering all
executives
 Launch of New EPMS system on 1st April, 2008 64
WHAT SAIL CHANGED IN NEW SYSTEM?

 IT enabled EPMS
 Framing of KPAs at the beginning of the year
 System to be used for development / growth of individual
 No forced distribution
 Transparency through communication of final gradings to
individuals on performance
 Marks to be based on performance criteria and not filled up in
totality
 Performance review planning to take place on time
 Differentiation between high and low performers
 Development of competencies of individuals
 PMS linkage to other systems
 Accountability of Assessors
 Strengthening Role of HoD

65
66
67
Route Map

 Global Steel Scenario
 SAIL- a glimpse
 SAIL- Challenges/Opportunities
 Performance Management System
 Goal Setting Alignment - Video

68
Steel Scenario

69
India Vs World Steel - opportunities

1. China 502 MT
Top 5 Countries in 2. Japan 119 MT
crude steel
3. US 91 MT
production 2008:
4. Russia 68.5 MT
5. India 55 MT

1. Arcelor Mittal 103.3 MT
Top 5 companies 2. Nippon Steel 36.88 MT
in crude steel
production in 3. Shanghai Bao 35.44 MT
2008: Steel
4. POSCO 34.7 MT
5. JFE Steel 33.8 MT
70
Global Steel Scenario

 Global steel production grew rapidly between 2003
to 2008 at a CAGR of 6.6% led mainly by strong
demand from China.
 Financial meltdown from Oct.’08 has severely
impacted the global steel industry.
 World crude steel production in 2008 : 1330 MT;
1.2 % decline from 2007.
 Of the top 10 largest steel producing countries,
only China, India & Korea registered increase in
steel production in 2008.
 India’s crude steel production in 2008 at 55
MT(3.7% growth over 53 MT in 2007)
Source: WSA
71
Indian Steel Industry
 Consumption of steel grew at a CAGR of
around 10% from 2004-05 to 2007-08.
Per Capita
 Consumption of 52 MT of finished steel consumption
during 2008-09, registered negative
growth of 0.5%. of finished
Steel in 2008
 India emerged as the world’s 3 rd largest
steelmaking country (13.1 MT) in Q1 of
2009 after China and Japan. (2008-5th
rank) World 150Kg
India 46 Kg
 SAIL’s market share of finished steel in
Q1 of 2009 is around 22%.

72
Domestic installed capacity
of crude steel - 2009

SAIL is the
largest
domestic
steel
player

73
Production - Saleable Steel

Million Tonne

Capacity
Utilisation (%)
105 109 114 118 113

•Continuous improvement in production achieved, surpassed
13 mill. ton mark in 2007-08
• In 2008-09, share of value added products increased to 30%
74
Techno-Economic Parameters
• Coke rate brought down to the
lowest level of 521 kg/thm. (April-
May’09: 512kg/thm)

Concast prod. (% of total) Specific Energy Consumption
Gcal/tcs

75 75
Financial Performance

PAT (Rs. Cr.)

•Highest ever PAT in 2007-08
•PAT in 08-09 declined by 18 % over CPLY due to impact of higher
input cost (Rs.7000 Cr) & severe slowdown in the steel industry.
76
SAIL – Challenges/Opportunities

77
SWOT Analysis

Strengths Weakness
•Scale and Scope • Technological gaps in
Largest player in India’s select area like production
steel sector through ingot route
Wide selling network • Semis in product-mix
Wide product range • Dependence on external
sources for coal
Large infrastructure
•Captive iron ore mining
• High manpower cost
•Intellectual Capital
–Skilled manpower
78
SWOT Analysis

Opportunities Threats
 Low per capita Delay in clearance of mining
consumption of steel. projects
 Infrastructure development Considerable slow down in
in the country. the world economy
Overcapacity.

79
Director
Board Level
though PSEB

Managerial Ladder in SAIL E9

E8
Cadre is Build
through E7
experience
Promotion and E6
Grooming
E5
Learning curve is
E4 Substantially high
In Steel Plant Positions
E3

Induction E0/E1
J0 Route
Level 80
NEED FOR CHANGE

 Industry Perspective
 Cyclical in nature with major ups and downs
 M&A both in India and abroad
 JVs (Power, Cement, Ferro Alloys, SEZ, SPV, e-
commerce)
 Company Perspective
 Need to retain market share in India
 Stay ahead of competition
 Employee perspective
 Bringing in performance culture in tune with the
changing times
 Keep employees motivated
 e-enabled to meet specified time frames
81
LEADERSHIP DEVELOPMENT &
COMPETENCY BUILDING

82
EPMS AUDIT

Objective
 To assess how EPMS implementation has gone on in a
given area or location or plant
 To make observations on the improvements required
for the subsequent year or corrections needed for the
previous year in terms of assessments, development
needs, performance plans, review discussions etc.
 Post-assessment implementation of development
decisions and facilitate the maximum utilisation of the
potential of the EPMS.

83
EPMS AUDIT

Methodology
 The committee will visit and examine the trends in
ratings and also seek feedback from a cross
section of officers about implementation of EPMS.
 The committee will audit the EPMS of other plant.
They will meet a cross section of officers from each
plant covering major departments.
 Individuals are also encouraged to meet them and
also bring to their notice any grievances.

84
BENEFITS OF EPMS
Old Appraisal System New Performance Mgt. System
Paper Form Online System
No Goal Alignment Goal Alignment Cascade Workshop

KPAs Weighted, quantifiable KPAs with
evaluation criteria (Routine & Non Routine
KPAs/Special Projects)
No Performance Diary Performance Diary
No self assessment Self assessment
Reporting & Reviewing Reporting & Reviewing Officer assessment
officer assessment inter- is independent
dependent
No Transparency as Transparency through communication of
gradings are confidential performance grading

Performance & potential Separate gradings for Performance and
assessments are merged Competencies (includes Potential &
Values)
Forced distribution No Forced distribution 85
BENEFITS OF EPMS
Old Appraisal System New Performance Mgt. System

Reporting / Reviewing Officers Reporting / Reviewing Officers & HoD are
& HoD are not part of the part of the Performance Management
Performance Review Committee Committee and will decide the final
grading
No incentive for high Incentive for high performers
performers
No reasoning was given while PMC identifies EP & LP by recording two
identifying executives as major achievements / shortcomings for
Outstanding or Low Performer categorising executives as EP or LP
No development plan for „Low Rotation/ Development plan for Low
performer Performers
No Assessment of Assessors Assessment of Assessors

No 360 Degree Feedback Introduction of 360 Degree Feedback

No Assessment & Development Introduction of ADCs for assessment of
Centre Competencies / Potential
No Audit system PMS Audit
86
Differentiation through growth

87
PROMOTION POLICY

88
Objectives of Promotion Policy

 Manning of executive posts with competent
personnel by integrating the growth
opportunities for individuals with fulfillment of
Organization‟s objectives.
 Differentiate between high, average & low
performers by giving recognition to executives
for consistent good performance at their job.
 Provide adequate opportunities to individual
executives for acquiring new skills for their
development & growth in the organization.

89
For Executives in E1 to E5 grade
Performance / Potential Matrix

Exceptional Fast Track Fast Track
Potential (45) (50)

Medium
High Fast Track Fast Track
Track
Potential (40) (45)
(30)

Slow Medium Medium
CPV Average
Track Track Track
Factors Potential
(15) (25) (30)

Slow
Low Slow Track
Track
potential (15)
(10)

Low Average High Exceptional
Performer Performer Performer Performer
90
Performance Factors
For executives in E6 & E7 grade
Performance / Potential Matrix

Exception
Fast Track Fast Track
al
(45) (50)
Potential

Medium Medium
High Fast Track
Track Track
Potential (45)
(25) (35)

Medium
CPV Slow Track
Average Slow Track
Factors Track (25)
Potential (15)
(10)

Low Slow Track
potential (10)

Low Average High Exceptional
Performer Performer Performer Performer

91
Performance Factors
Different Tracks for Growth

• Fast Track executives should remain in the Fast
Track Zone in all the years in the eligibility period .
• Medium Track executives should not fall in the
Slow Track in any of the years in the eligibility
period .
• Slow Track executives will be promoted only when
they improve their performance and the
immediately preceding appraisal should be
medium or above.
• Fall to lower track will make executives eligible for
growth as per lower track .

92
Eligibility Condition for Executives

Executive Position in (No. of
Grade Performance Potential Matrix Yrs)

E1 - E2 Fast Track 3
Medium Track 4
Slow Track 5

Qualification Bar

E2 - E3 Fast Track 3
Medium Track 4
Slow Track 5 & above
93
Eligibility Condition for Executives

Exec. Position in
Grade Performance Potential Matrix (No. of Yrs)
Interview
E3 - E4 Fast Track 3
Medium Track 4
Slow Track 6 & above
Assessment of Functional Competencies
3
E4 - E5 Fast Track
Medium Track 4
Slow Track 6 & above
94
Eligibility Condition for Executives

Exec. Position in
Performance Potential (No. of
Grade Matrix Yrs)
DPC / Interview
E5 -E6 Fast Track 4
Medium Track 5
Slow Track 7 & above
Assessment of Competencies /
Potential
E6 - E7 Fast Track 4
Medium Track 5
Slow Track 7 & above
95
Eligibility Condition for Executives

Exec. Position in Performance (No. of
Grade Potential Matrix Yrs)
Assessment of Competencies /
Potential

E7 - E8 Fast Track 3
Medium Track 4
Interview by Board Sub Committee

E8 - E9 Fast Track 2
Medium Track 3

96
Career Growth of a Fast Track Exec.

Levels Minimum Eligibility Age
(Entry age- 23 yrs.)
E1- E2 3 years 26
E2- E3 3 years 29
E3 -E4 3 years 32
E4 -E5 3 years 36
E5 -E6 4 years 40
E6 -E7 4 years 43
E7 -E8 3 years 46
E8- E9 2 years 48
97
New Junior Officer’s (JO) Policy

 Introduction of written test for the promotion to
executive cadre.
 Merit and higher qualification gets preference.
 Due weightage to performance and experience.
 In-house development of study modules for focused
learning.
 Ushering a culture of learning & development.
 Preservation of skilled and experienced workforce.

98
Prospects for Learning
and Development

99
Our Training Philosophy

“ Aiming towards
competitive edge
through Skill,
Technology and
Quality at every
step”

100
HRD set up at a glance

In-house Management Training Institute
(MTI)
 Coordinates centrally all training activities.
 Responsible for Conducting Training Need
Analysis , Preparation of Annual Training
Program, designing and conducting customised
development programmes.
 Collaboration/MoUs with Institutes of
International repute; IIM-Ahmedabad, IIM-
Indore, University of Pittsburgh, MDI Gurgaon
etc. for joint research and MDPs.
Extensive Training and Development
infrastructure in place. All ISPs have well
equipped HRD centers; Modern Laboratories,
Technical workshops.
101
Integrated Approach to HRD
Processes
Communication
Performance Intermediate
Enhancement Outcomes Operational
•Competence
HR strategy

Nurturing results
enhancement
•Higher Productivity
for Future •Motivation& creativity
•Better Techno-
•Team Work
Infusion of Economics
•Sharing of knowledge
•Cost effectiveness
Global Practices •Flexibility of
•Value added
workforce
Competence Products
•Better Organizational
Development climate
Systems
Technology
102
HRD in SAIL
Technical Skill Managerial Skill Development
Development
Unit training Management programs at
plant HRD centres
Basic engineering Skills Management programs at MTI,

Simulation training in Learning thru Quiz
Specialized areas competitions/ debates.
Equipment training Advanced Management
Programs
Multi-skill Training Specialized Management
Programs
Project based training Joint programs with leading
management Institutes.
Sponsorship to premier Sponsorships to management
insitutes for Tech. institutes like IIM-Indore etc.
Trg.(IITs)
103
Talent up gradation
Specialized Management Programmes (SMPs)
 Customized Management
programmes in collaborations Year No. of
with reputed management officers
Schools like IIMs, MDI, ASCI. nominated
 To engrain the globally 2005-06 29
accepted best managerial
practices amongst the senior
practicing executives at the 2006-07 30
level of GMs/EDs.
 Includes a foreign component 2007-08 77
of around 15days

Advanced Management Programs (AMP)
for General Managers who are Potential Directors of the
Company Involves intense training at Indian institute and a
foreign field trip.

104
Talent up gradation

e-learning in Project Management
 To enhance the project management competencies in
view of the ambitious expansion plans.
 Envisages conduct of online certification programme by
Project Management Programme (PMA) for the young
Project Managers.

Synchronous Learning Technology (SLT)
 An advance technology over e-learning in collaboration
with faculties from premier management institutes.
 A virtual classroom training providing all interactions/
discussions available in a classroom situation except for
absence of physical proximity.
 Two such pilot MDPs taken up for around 150 executives.

105
Talent up gradation
Project Based Training Abroad

 Training of middle level Engineers with M/s CORUS and
VAI.
 Carries a foreign component of around two weeks.
 Specific identified project work taken-up by team of 3-4
executives from the plants/units.
 Selection of projects and executives by a central
Committee.
 Implementation of identified projects after training being
monitored at Plant level.
 Total no. of trainings as under:-
• 2004-05 : 64
• 2005-06 : 120
• 2007-08 : 124
106
Talent up gradation
 Multi Skill Training
 Training in 2 additional Trades
 Imparted using Unit Training, Laboratory/Workshop based
Training on PLCs, Hydraulics & Pneumatics, Electronics &
Elect., Automation etc.

HoD
Training
Team
Training Implementation
 Benefit – based on
 Identification
certified utilization,
of multi-skilling career
areas, trainees advancement,
Frontline Steering and master monetary
Utilizers Committee trainers  Some departments
HR
 Training of where implemented
Exec.
trainers  Plate Mill
Roll Turning
Preparation of

 Shop
Evaluators training  Electrical Repair
Team
Core team manuals Shop
-Tech.
 Trainer-trainee  Coke Ovens
attachment for  Blast Furnace
5 weeks  Steel Melting
Multi-skilled Shop
Workforce 107
Talent up gradation
Implanting Culture of Learning

 Chairman’s Trophy for Young Managers
 Encouraging Managerial Excellence, Creative Thinking
 Theme based research paper on Contemporary
issue/challenge before Organization

 Promoting Culture of Quizzing
 ‘Saksham’ Director (Personnel)'s Cup instituted for
Inter-Plant/Unit Management Quiz competition
 On-line Quizzes being organised
 Organized National level “BMBQ”

108
Special Developmental Programs
for the Talent Pool

 Leadership for Young Managers Program
 Selected group of high performers with consistent
track record below 40 years selected for a special
program on leadership
 The program involves special projects and a
review workshop for sharing of experiences

 Collaboration with premier Management &
Technical Institutes by way of entering into MoUs,
etc.
→ IIM Ahmedabad, IIM-Calcutta, IIM-Indore
→ MDI, Gurgaon, ASCI, Hyderabad
→ ISM, Dhanbad, IIT, Kharagpur and many more..

109
Investment in Continued Education

 PG Diploma in Steel Technology at IIT Kharagpur
 PG Certificate Program in Management at IIM-
Indore
 M Tech. in Steel Technology in collaboration with
Chattisgarh Swami Vivekananda University.

 Post-Graduate Management Programme for
Executives in Visionary Leadership for
Manufacturing (PGPEX-VLM) - jointly organized by
IIM-Calcutta in collaboration with IIT-Kanpur and
IIT-Madras.
 MDP for fast track managers (Philippines)
 MBA program at Slovenia 110
Nurturing Innovation &
Creativity

111
Nurturing Creativity & Innovation

• Suggestion schemes
• Suggestion Scheme design‟ acclaimed by INSAAN
as a Model Scheme‟
• More than 60,000 suggestions received, over
20,000 viable for implementation were accepted
• Documentation of significant suggestions in last
few years carried out.
• Quality Circle teams
• Voluntary projects undertaken.
• Notable projects/success stories sponsored at
International level resulting in
individual/organizational accolades.

112
Nurturing Creativity & Innovation

• Nominations to PM Shram/Vishwakarma
Awards:
• Innovative projects/contributions being
recommended for participation in these
award schemes instituted by Ministry of
Labor, Government of India.

• Reward and recognition Schemes
• R & R Philosophy of SAIL
• Structured system in place for rewarding
innovations.

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Motivation Schemes

Driving
Performance Profit
& Sharing/ Production/
Organizational APLRS/PLBS Gross Margin
Change
Based
Schemes
Uniqueness
 Enough flexibility to Units
to adapt/ customize.
Reward &  Framework has resilience
Recognition to integrate changes as
Schemes per business priorities. Performance
 Yearly changes – Change Related Pay+
@ change

114
Harmonious Employee Relations

115
Pro-active IR

 History of Bipartism – From Shopfloor to
meetings with highest cadre of Mgmt.
 A well honed system of Preventive IR
 All potentially volatile issues like manning,
incentives, work practices – discussed at
appropriate forums

Trade Unions have identified with Business realities

116
Pro-active IR

Formal Level

 National Level – NJCS, JCSSI
 Corporate Level – Production/Productivity
 Plant/Zonal Level - Shop-floor Committees on
Production/Productivity, Safety, Welfare, Grievance,
Canteen, etc.

Informal level
 Suggestion Schemes, Quality Circles, Shop
Improvement Groups

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Structured Communication Channels

Two Way
Communication
Mass
Unions & Officer
Communication
Associations

Shop Floor Communication
Counselling Communication
Modules

Internal
Cable TV, House Resource
Journal, Wall Paper Fears & Persons
Apprehensions,
allayed
118
Proactive Communication
- Employee Feedback
Participation in Culture Audits
 Participated in Culture Audits/ Employee Feedback
Surveys/ Assessment of Organizational Processes by
external agencies
 Analysis of Feedback and generated learnings
 Inputs used for Review/ Fine tuning of HR Systems
System of Exit Survey
 Provide Opportunity to Separating Employee for Sharing
Free & Frank Opinion/ Feedback.
 Tap Ideas, suggestion and views of employees on
Company policies, systems and practices.
 A system institutionalized across SAIL Plants/Units.
 Analysis of Feedback and Action Points.
119
Employee Welfare initiatives

Captive Townships
 Maintain own townships for offering a comfortable life
style with most of the basic amenities such as schools,
hospitals, clubs, gardens, community centers, sports
infrastructure being run and managed by Company.
 Offer Company owned accommodation with all essential
facilities like drinking water, electricity available 24X7
hrs.
 SAIL Townships are known for state of art facilities to
employees.

120
Employee Welfare Initiatives

Mediclaim Facilities
 Company owned state of art Medical colleges and
hospitals offering free health care support to employees.
In most of the cases, these hospitals have emerged as
the leading healthcare center in the respective states.
 Mediclaim Insurance for retired employees and spouse.

Education
 Company run schools providing quality education on
free/subsidized basis to employee/non-employee wards.
 Scholarship schemes for meritorious students.
 Free vocational/technical training to students in SAIL
Plants/units/HRD centers.
 Education facilities in Bhilai township have made a mark
on the National level.

121
Employee Welfare Initiatives

EFBS/Compassionate appointment
 In the event of Death or medical invalidation of an
employee during service period, Provisions are their for
compassionate appointment from among dependents.
The family has the option of availing Employee Family
benefit Scheme [EFBS] wherein they get amount
equivalent to last drawn Basic Pay + DA till notional
superannuation.

Facilitating the weaker sections
 All above indicated facilities being provided free of cost
to the SC/STs and the downtrodden in addition to other
special privileges

122
Plans Ahead

123
Modernisation & Expansion Plans

Capacity build-up as per current expansion plan envisages :

(Million Tonnes)

Particulars Installed After
Capacity Modernization

Hot Metal 13.82 26.18

Crude Steel 12.84 24.59

Saleable 11.07 23.13
Steel
124
124
ASSESSMENT OF ASSESSORS

125
ASSESSMENT OF ASSESSORS

 To make the system less subjective and to
ensure that all executives use similar
standards, an attempt is being made to
develop assessors to be more objective and
make proper judgment of the performance of
their juniors.
• Assessing Assessors by studying their
rating behaviour and giving them
feedback
• Using EPMS Audit committees periodically
to review implementation of EPMS

126
ASSESSMENT OF ASSESSORS

 As per the new EPMS every assessor is to be assessed
at the end of the year for their credibility and
assessment behaviour.
 Assessor here includes the Reporting officer and
Reviewing officer.
 On completion of the appraisal process in the EPMS at
the end of the performance year, each Individual
executive assessed is assesses his reporting and
reviewing officers using the Assessors Assessment
Form.
 The Assessors Assessment Form is completed and
sent to the HR department at the central office.
 The ratings are confidential and are available only to
the HOD and the PMC at the time of final grading.
 Based on this, feedback is given to the assessors on
their rating behaviour & their credibility quotient
127
ASSESSMENT OF ASSESSORS

 A credible assessor is one who
 spends sufficient time with the performer in the
beginning of the year,
 understanding the situation of the performer fully
and assists him/her in planning work through
identifying critical activities,
 anticipating difficulties and making plans to meet
the challenges, and setting challenging goals
 identifying development needs.
 Subsequently guiding the performer when required,
providing guidance and support through out the
year,
 setting a personal example to be emulated by the
appraisee.
 assesses the executives objectively and by being
sensitive to the situations faced by the candidate,
 coaching and mentoring the executive concerned. 128
ASSESSMENT OF ASSESSORS

 Assessment of assessors is done on the following scale.
Ratings are confidential and are used to review the
assessments of assesors.
 HS= He has done this extremely well. I am highly
satisfied with this.
 QS= He has done this to a good degree. I am quite
satisfied with this.
 SS = He has done this to some extent. I am
somewhat satisfied with this.
 DS = He has done this very little. I am dissatisfied
more than satisfied. I wish he does this well in
future in the interests of our performance.
 QDS = He has not done this at all. I am quite
dissatisfied. I expect him to pay attention to this
in future.
129
ASSESSMENT OF ASSESSORS

Appraisee assesses on the following parameters
at the beginning of the year
 Spent adequate time discussing my KPAs
 Listens attentively to my KPAs and
understood the challenges faced by me
 Clarified organizational goals and
departmental priorities
 Helped me identify critical activities and
plan my time appropriately in the
beginning of the year

130
ASSESSMENT OF ASSESSORS

Appraisee assesses on the following parameters during the
Year
 Helped me identify my development needs and
development actions
 Kept in touch with my work, activities and challenges
faced
 Assisted in solving difficulties and coordinated with
other input providers and internal customers
 Periodically reviewed my performance and or progress
during the year (spent time, understood
accomplishments and challenges)
 Noticed my accomplishments, recognised them and
recorded the same in performance diary
 Spent adequate time for conducting half yearly
performance review discussions

131
ASSESSMENT OF ASSESSORS

Appraisee assesses on the following parameters
on year end performance assessment
 Gave me the confidence that he has taken
all my inputs into consideration for
assessing me on KPAs
 Took inputs from me with regard to the
competencies, potential factors
 Observed me closely enough during the
year to make an informed assessment
 Listen to me attentively and learnt from me
in details about my work and
accomplishments for final review
 Does not seem to carry any biases against
me and can be relied to make an informed
assessment
132