A PROJECT REPORT ON “JOB SATISFACTION IN B.S.P” For BHILAI STEEL PLANT( DALLI RAJHARA MINES) Submitted in Partial Fulfillment to Mats College, Raipur(C.G) For the Award Of Master’s Degree In Master Of Business Administration Guidance By Submitted By Mrs. Prachi Singh Neha Deodas Lecture M.B.A III Sem. MATS COLLEGE Batch 2008-10 Department Of Management
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APROJECT REPORT
ON
“JOB SATISFACTION IN B.S.P”
For
BHILAI STEEL PLANT( DALLI RAJHARA MINES)
Submitted in Partial Fulfillment to Mats College, Raipur(C.G)
For the Award Of Master’s Degree
InMaster Of Business Administration
Guidance By Submitted By Mrs. Prachi Singh Neha Deodas Lecture M.B.A III Sem. MATS COLLEGE Batch 2008-10
Department Of Management
MATS COLLEGE ,RAIPUR
CERTIFICATE
This is to certified that research report title “Job Satisfaction in BSP” has
been successfully carried out by ‘Neha Deodas’ student of MBA 2nd
semester in MATS COLLAGE in the partial fulfillment of degree
“Master of Business Administration” during academic year 2008-10.
I wish her all the best in her future walk of life.
PROJECT GUIDE
Dr .Prachi Singh
(Lecturer)
Department of Management
MATS COLLEGE
Raipur (C.G)
STUDENT’S DECLARATION
I “Neha Deodas” student of MBA 2nd semester in the year 2008-10 here
by declare that I have undergone project at BSP , Dalli Rajhara(Mines) .
This report is an original work carried out by me and report has not been
submitted to any other university for the award of any degree or diploma.
Date : (NEHA DEODAS)
Place:
MBA 3rd semester
2008-10.
ACKNOWLEDGEMENT
It is a great pleasure for me to submit my summer project
report on “JOB SATISFACTION IN BSP” to MATS COLLEGE ,
Raipur.
I would like to express my sincere gratitude to Mr. S.U.
Prabhakar Rao ( AGM Personnel) for providing me with the
appropriate project to work on. I am thankful to Mr.
N.Prakash (Labour Welfare Office)for his hearted co-
I take this opportunity to express my heartiest thanks &
obligation to Mr. Byju John HOD of Management
Department MATS who has rendered me invaluable
instructions and guidance for preparing the project report. .
Finally I put my profound sense of gratitude towards Dr.
Prachi Singh for her keen support and helping my concept to
build stronger. Last but not least I am thankful to all those who
directly or indirectly helped me for the successful completion
of this project report.
Date: -
Neha
Deodas
PREFACE
Job satisfaction is the degree to which people like their jobs.
Some People enjoy work and find it to be a central part of life.
Other hate to work and do so only because they must. The
study of the cause and consequences of employee attitude is
one of the major domains of industrial –organizational
psychology and organizational behavior. More studies have
been done to understand job satisfaction than any other
variable in organization. In addition, the assessment of the
employee attitude such as job satisfaction has common
activity in organization in which management is concerned
with physical and psychological well-being of people.
Job satisfaction is associated with many important
behavior and outcomes for employees that have implications
for organizational and personal well being.
CONTENTS
1. Executive Summary
1.1. Project assigned 1.2. Commencement of project. 1.3. Highlights of field work. 1.4. Practical difficulties faced. 1.5. Remedial action undertaken. 1.6. Learning 1.7. Outcomes.
2. Introduction
2.1 What is Job? 2.2 What is Job Satisfaction? 2.3 Importance of Job Satisfaction 2.4 Constitutes of Job Satisfaction 2.5 Outcomes. 3. Objective of Project
4. Company profile
5. Project Introduction 5.1 Project Title 5.2 Objective of study 5.3 Research Methodology
6. Analysis & Interpretation of Data
7. Findings and Limitations
8. Conclusion and Suggestions
9. Student work profile
Bibliography
Annexure
Executive summary
I wanted to do project on HRM, for that manufacturing concern
was requirement for me. For that I have chosen BSP i.e.
(BHILAI STEEL PLANT) Dalli Rajhara works. BSP was my first
priority because it was foremost company in steel
manufacturing. My perception was that in plant or
manufacturing concern we are having personal department
since the labor force is more here.
Project assigned
Project what assigned to me was very different as it was
related to employees job satisfaction which is important part of
HRM. The topic/title “Job satisfaction in BSP” in that project the
is to know or to evaluate the employees job satisfaction.
Project was suggested by my project guide.
During initial days we discussed about the “Job satisfaction in
BSP” with its concept such as –
What are the HR Policies used in BSP?
What is its significance?
How HR Policies work?
My project title was inclusive of objective, later on we
discussed what dimensions should be covered under this title,
ultimately Six dimensions were decided for study, as:
1. Allowance
2. Advance.
3. Leave benefit Scheme.
4. Wages
5. Motivation
6. Separate Benefit
Commencement of project.
Project was done in personnel department of BSP, Dalli
Rajhara(Mines), under officer HR & Department members.
Tenure for project was 4 weeks.
In first week of training project title was assigned. Following
that I have gone through the literature regarding the title. On
the basis of that the questionnaire was designed. It was
inclusive of questions covered all dimensions. Questionnaire
was designed in English languages. As soon as questionnaire
was ready my next step was data collection. A Iron Ore
Complex (BSP) was assigned for collection of data.
Highlights of field work
Before going to field work certain instruction was given to me
by project guide like to go certain areas of Dalli Rajhara Mines
likes Iron Ore Complex, Dalli Mines and Rajahara Mines , how
to deal with respondents and how to convince them etc.
sample size of my project was 50 it included Executives, Non –
Executives and workers. I started my survey work HR
Department, from Iron Ore complex. After that I went to some
other department like production, safety and got the
questionnaire filled.
Practical difficulties faced.
Some of the respondents were busy in their work so they
haven’t filled up the questionnaire. Some of the respondents
were not agree to fill up the questionnaire.
.
Remedial actions undertaken.
In order to convince the respondents I explained them that
only information what needed is in form of responses of the
questions, apart from them I don’t want any additional
information from them.
Learning:
This project work impetuses new insights of knowledge in me.
And practical exposure what I got here will be a long term
assets for me. My learning here are as follows:
The symbiotic relationship between Employee , Employers and
workers. Designing of perfect questionnaire.
Learned about some of the soft skills like acceptability,
adjustability & patience required during field work.
Time management.
Art of convincing people.
Discipline of the work place.
Consistency in work.
Outcome:
By means of this study I found the activities/initiatives
undertaken by BSP in certain areas while certain areas are left.
2.INTRODUCTION
WHAT IS JOB
Job is a component of work and may be defined as a specific
requirement to get a product or achieve an objective. A series
of tasks may constitute a job. Jobs are not time bound but the
tasks to be accomplished within a job could be. In a job there
is a strong relationship between the job performer and the
product of that performance.
WHAT IS JOB SATISFACTION
The term “Job satisfaction” refers to a collection of feelings
that an individual holds towards his or her job. When a person
says that he has high job satisfaction it means that he really
like his job, feels good about it and values his job highly. Job
satisfaction is closely related to the gratification of needs. It is
composed of effective, cognitive and behavioral elements.
These elements vary in their intensity and consistency from
one individual to another. Thus, job satisfaction is the
satisfaction derived from any pursuit directed by the process
of fulfillment of the needs. It is the favorableness or
unfavourableness with which employees view their work. It
results from specific attitudes of employees in three areas viz.,
specific job factors, and individual adjustment on the job and
group relationship.
Job satisfaction may refer either to a person or a group. It
results from the best fit among job requirements, wants and
expectations of an employee. It is used to express the extent
of match between the employee’s expectations of the job and
the reward that the job provides. Job satisfaction is the result
of various attitudes the person holds towards his job and
towards life in general. Considering job satisfaction as the
overall attitude of well being with regard to job and its
environment, it is not difficult to know how an employee feels
about his job. In this way job satisfaction is a set of favorable
or unfavorable feelings with which employees view their work.
Job satisfaction is an attitudes of employees towards their job
and the discussion of organizational commitment focuses on
their attitudes towards the over all organization. It results
from the employee’s perception that the job context and
context actually provide what an employee’s values in the
work situation. It’s a pleasurable or positive emotional state
resulting from the appraisal of one’s job or job experience. It
is a result or employee’s perception of how well their job
provides those things that are viewed as important. It is
generally recognized in the organizational behavior field that
job satisfaction is important and frequently studied attitude.
High level of job satisfaction reflects a highly favorable
organization climate resulting in attracting and retaining better
worker.
It is also conductive to the all-round development of the
organization. An employee works in an organization and if any
effect is there on the employee the organization will directly or
indirectly effect. Satisfaction generally is higher in case of
people whose jobs involved control over this work and that of
others and is lowest for those people who are in jobs that are
at the lower end of the organization hierarchy for whom there
is little opportunity after such control. This job satisfaction
directly or indirectly influences attitude morale, absenteeism,
values and production level. If a person or employees is
having good attitude towards the work of the organization, the
productivity and efficiency definitely going to increase same
thing influence the value system when the work is according to
the value and norms they get satisfied and if any thing or
activity hurts their values and norms and it is against their
value system the employees get dissatisfied which effect their
work and the organization get effected.
IMPORTANCE OF JOB SATISFACTION
Satisfaction is necessary in every aspect of life. Job
Satisfaction is not only related with the job but also to the
overall feeling of the employee. It is important not only for an
employee but to the whole organization. The findings of
several investigations suggest that job satisfaction is positively
correlated with high production. Workers satisfied with their
job produce more. Of course, some other studies also do
indicate that not always and in all cases is high production due
to job satisfaction. However, it cannot be denied that
production is partly a function due to job satisfaction. How
ever, it cannot be denied that production is partly a function of
job satisfaction. Because of the specializations of work in
modern industries work lack intrinsic interest and therefore the
worker finds no incentive for work. In the words of Morgan.
“Now work is so specialized, so devoid of intrinsic interest that
the workman finds no incentive to work.’’ Under these
circumstances, to provide interest in work and make the job
satisfactory and pleasant there is tremendous need for job
satisfaction research. It is only from the data of scientific
research that the management can know the factors
contributing to job satisfaction. Moreover, knowledge of the
attitudes and factors leading to job satisfaction will provide
scope for better selection procedure. It is to be kept in view
that job satisfaction is a personal and individual feeling. Thus
Balchin has remarked, “An effort should be made to give the
average worker a job which is not merely a means of earning a
living but which has in it all the ingredients of life itself.” Job
satisfaction not only increase efficiency, it also provides
intrinsic motivation for work. Moreover, job satisfaction is also
conducive to the all-round development of the organization
because directly and indirectly it influences attitude, morale,
and absenteeism and production level.
Importance of job satisfaction:-
FOR AN INDIVIDUAL/ AN EMPLOYEE:
MENTAL HEALTH
When an individual work in organization he have certain
expectations from it, it can be personal or professional. This
inner feeling directly and indirectly effect the individual mental
position. When he fulfilled his wants and expectations he
satisfied form his job and work effectively but when he can’t
achieve his goal he not only become mentally but also can’t
put his attention towards his job, which may decrease his
productivity. When he is satisfied he becomes mentally strong
and healthy.
MOTIVATED
When an individual satisfied from his job he get motivated to
work effectively and properly. Motivation influences the
willingness of people to work and this willingness come from
within. When there job give them satisfaction they are
motivated but when they are dissatisfied even then they are
capable and fit they will not do there work or if they do there
work they will not put there efforts and effectiveness to
complete there job or work properly.
PHYSICAL HELATH
Physical health play an very important role in individual life
when we speak about an individual working in an organization
will able to do all types or work when he not only mentally
healthy but also he is physically healthy person. Job
Satisfaction not only makes an individual mentally strong but it
also makes individual feel physically strong and energetic
which allow them to work more effectively and with more
confidence.
POSITVE ATTITUDE TOWARDS JOB
The entire individual have certain wants and expectations
when this wants and expectations are fulfilled from their jobs
they feel satisfied and put all their dedication towards their
job, which gives positive attitude towards their job, which
makes them, work more effectively. These positive attitudes
towards their job, which make them, work more effectively.
This positive attitude makes an individual to remain in
organization and to helps it in progress.
STABILITY AND GROWTH OF EMPLOYEES
A person is satisfied form his job only when he feels that the
job gives him all the opportunities and space for his ideas. A
satisfied person will always want to remain in organization and
organization also not wants that person to leave the
organization and put all effort to that organization only. A
person become stable in that organization and a person is
getting chance to expose himself with new ideas and method,
which help them to create new scope in organization.
SELF-DEVELOPEMNT
If a person is satisfied in his job, he will try to work more
delicately towards his job and will try to create new ideas and
ways to make him self and organization to develop. He will
always come with new ideas so that the effectiveness and
efficiency of him and organization can increase. This helps the
individual to developed and progress.
PROPER BALANCE
Satisfied person keeps proper balance in them. They have
proper balance in them what to do and what not to do. They
can change themselves according to the work and situation.
The maintain proper balance between their wants and the
organization wants they always maintain this balance so that
they can developed but also organization can developed.
FOR THE ORGANISATION:
DIRECTION:
An organization can give and explain the proper direction and
work to the satisfied person more nicely as the satisfied person
always tried to work more nicely according to the direction of
*their head. They listen to the direction properly and try to
follow it and try to put all his effort to complete the task.
CONTROL:
A person is satisfied in the job only when he feels that the job
he had will fulfill his wants and will help to show the capability
inside him. He will work accordingly and in direction given by
his higher authority. An organization can control this type of
person who is satisfied and can take out this maximum
productivity inside them and can put it for the task. But the
other people who are not satisfied can’t give their total
productivity for job.
STABILITY AND GROWTH OF ORGNAIZATION
As we know that the satisfied person will always try to
innovate their idea and always try to discover new techniques
and method not only for their own development but also for
the development of organization helpful in long run and for
stability and for the growth of an organization.
OPTIMUM USE OF RESOURCE
When a person is satisfied from his job gives more effort and
effectiveness to complete his job and try to put his maximum output
from this side. This not only helps the organization to take out
optimum effort from him but also in effective way. This helps
organization to use the optimum resources in the best way and with
less wastage.
MUTUAL COOPERATION
Cooperation plays an important role in an organization
cooperation means helping each other and working together.
Mutual understanding and cooperation is necessary for each
organization. It is only possible only when the employees in
the organization are satisfied in their job when they are
satisfied there will be mutual understanding between them
and cooperative nature will be there. The employee will try to
cooperate with each other and try to achieve the goal, which
can be individual goal, or the organization goal.
What constitute job satisfaction?
Various studies of job satisfaction throw light on some
variables of job satisfaction, which may broadly be divided into
three main categories.
1) Personal factors.
2) Factors related to job.
3) Factors controlled by the management.
1) Personal Factors
Sex
The findings of several studies reveal that women in general
have more job satisfaction than men. Morse’s (1953) study
indicates that while the percentage of dissatisfaction is 55 in
males it was 35 in the case of females. Such difference may be
explained by the fact that females have relatively lower
aspiration and expectations than males and they have less
economic burden. Hence they become easily satisfied to their
jobs compared to their male counterparts. This study is not
supported by Hubin and Smith (1964) regarding the effect of
sex difference in job satisfaction.
Age
The study conducted by Morse (1953) workers of the higher
age group has more job satisfaction than the younger workers.
But other studies do suggests that there is very little
relationship between age and job satisfaction.
Number of dependents in the family
Morse’s investigation proves that there is a negative
relationship between the number of dependents and job
satisfaction. Thus, as the number of dependants in a family
increase job satisfaction decreases and vice versa. Most
probably, financial difficulty is the major cause of job
dissatisfaction in such cases. Sinha (1973) however did not
find the effect of family and dependants on job satisfaction.
Hence without further research on this problem no definite
view can be given on the relationship between job satisfaction
and the number of dependents in the family.
Length of Service
The findings of some investigators suggest that in the
preliminary stage of service more job satisfaction is
experienced. But when the employee reaches the age of 50-60
years, job satisfaction decreases gradually. After this age,
again the tendency of rise in job satisfaction is observed. Sinha
(1965) did not find significant difference between the job
satisfaction of workers and shorter and longer years of service.
According to Hull and Kolstad (1942), the level of morale
usually reaches the maximum after 20 years of service in an
organization.
Intelligence
It is a common assumption that to perform a job satisfactorily
intelligence is necessary. Therefore many have hypothesized
that there exists a positive relationship between intelligence
and job satisfaction. But several investigations have brought
quite confusing findings. According to Ahbroke, workers having
high intelligence have demonstrated dissatisfaction in job.
From the findings of Wyatt and Langdon it has been proved
that most intelligent women workers in a chocolate factory
experienced monotony and boredom very quickly which is an
indicator of dissatisfaction in job. However, from the study of
Kornhouser and Sharp, no significant relationship is observed
between attitude and intelligence.
Personality
It is a major factor in influencing job satisfaction. But since it is
difficult to measure the traits of personality scientifically not
much research could be done on the problem. From a study
conducted by Kornhouser and Sharp on women employees, it
is noticed that out of 25 highly neurotic workers 16 were
always dissatisfied in job while only 3 out of 25 workers
expressed job dissatisfaction.
Fulfillment of personal needs
Morse’s and Schaffer’s research (1953) leads one to conclude
that job satisfaction depends upon the fulfillment of personal
needs. Schaffer found that a high correlation existed between
the person’s strongest needs and overall satisfaction. Among
the strongest needs, creativity and challenge, mastery and
achievement are important ones.
Education
A number of contradictory findings have been obtained
regarding the relationship between educational levels and job
satisfaction. The findings of Morse’s study indicate that
employees who could not pass middle school examinations
had greater job satisfaction than more educated employees.
But the findings of other studies have not supported this view.
Hence further research is necessary to throw light on this
determinant of job satisfaction.
2. Factors related to Job
The results of several studies point out that the level of job
satisfaction is determined to a great extent by variables
related to the job itself. Dissatisfaction in a job caused by such
factors has no relationship whatsoever with the individual
factors discussed earlier. Some of the factors of job
satisfaction related to the job itself are given as follows.
Chance and initiative to establish oneself in job.
From the research of Form (1946) it is evident that workers
who get a chance to establish themselves in their vocation
expressed less dissatisfaction in job than those who could not
get such a chance. It has also been noticed that vocations
having less social prestige and status bring dissatisfaction.
Increasing the importance and status of the job can increase
Job satisfaction.
Nature of Job
The findings of Morse’s study suggest that rotating jobs and
jobs giving the scope for variety and change gave many
workers more satisfaction than routine and mechanical jobs.
According to the results of Hoppock’s (1935) study there may
be a 100 per cent difference in job satisfaction because of the
difference in the nature and variety of work.
Skill of work
Fairchild (1930) opines that skilled job brings a strong feeling
of satisfaction in the workers. The nature of work, the status of
the job and responsibility, etc., is influenced by the skill of the
job. According to Fairchild, “Where skill exists to a
considerable degree, it tends to become the first source of
satisfaction to the workman. Satisfaction in conditions of work
or in wages becomes predominant only where satisfaction in
skill has materially decreased.
Size and location of the factory
It has been viewed that small organizations and factories
increase the level of morale of the workers as the hope for
promotion facility based on impartiality, justice and
competency is better there. This has been suggested by the
findings of Sears and Riback. According to them opportunity
for better interpersonal relationship is available in small
factories. The scope for recognition, feeling of security and
sense of cooperation etc. also increased in small plants.
Similarly, keeping other factors constant, factories situated in
small towns give more satisfaction to the workers as they feel
more secure and satisfied in small towns. Also, there is no
difficulty in adjustment. On the contrary, in big cities the
workers may feel neglected and lost.
3. Factors Controlled by the Management
There are certain psychological determinants of job
satisfaction, which can be improved by the management to
increase the level of job satisfaction of industrial employees.
Some of these important determinants are discussed below.
Salary
Employees are more satisfied when they feel they are
rewarded fairly for the work they do. Consider employee
responsibilities, the effort they have put forth, the work they
have done well and the demands of their jobs. As we have
discussed in example of why to study job satisfaction we can
understand clearly that at what extent payment play as
determinant of job satisfaction. If payment is according to
work and expectations then job satisfaction increases but if
payment is less than contribution then definitely job
dissatisfaction arises.
Security
The findings of several researches indicate that security
contributes highly to job satisfaction. Each and every
employee in the organization or industry wants himself to be
fully secured in his job. Insecure jobs doubtless bring a definite
feeling of dissatisfaction in work. Security may be social,
economical and psychological. A worker who gets security in
all these areas gets maximum satisfaction from his job.
According to Knutson, a feeling of security or insecurity may
tend to become generalized throughout the personality
structure or they may be projected from one area of striving
into others.
Vocational guidance
Lack of proper vocational guidance may lead to job
dissatisfaction. A person who is not suitable for a job, in terms
of his capabilities, aptitudes and interests, is not expected to
be satisfied with his job. It is a fact that people who does not
possess the necessary abilities and aptitude for a job, will not
like to continue in such a job. Besides giving dissatisfaction in
job, many problems arise in almost all organizations when
vocational guidance is not given. But proper guidance about
the selection of a vocation in accordance with the ability and
interest of the person, gives greater satisfaction in job. Thus,
suitable workers for a work and suitable work for a worker are
necessary contributors of job satisfaction.
Employees are more satisfied when they feel they are
rewarded fairly for the work they do. Consider employee
responsibilities, the effort they have put forth, the work they
have done well and the demands of their jobs. As we have
discussed in example of why to study job satisfaction we can
understand clearly that at what extent payment play as
determinant of job satisfaction. If payment is according to
work and expectations then job satisfaction increases but if
payment is less than contribution then definitely job
dissatisfaction arises
Scope of Promotion
Lack of facility for promotion got the fifth position as a
determinant of job Satisfied person keeps proper balance in
them. They have proper balance in them what to do and what
not to do. They can change themselves according to the work
and situation. The maintain proper balance between their
wants and the organization wants they always maintain this
balance so that they can developed but also organization can
developed.
An organization can give and explain the proper direction and
work to the satisfied person more nicely as the satisfied person
always tried to work more nicely according to the direction of
their head. They listen to the direction properly and try to
follow it and try to put all his effort to complete the task.
A person is satisfied in the job only when he feels that the job
he had will fulfill his wants and will help to show the capability
inside him. He will work accordingly and in direction given by
his higher authority. An organization can control this type of
person who is satisfied and can take out this maximum
productivity inside them and can put it for the task. But the
other people who are not satisfied can’t give their total
productivity for job.
As we know that the satisfied person will always try to
innovate their idea and always try to discover new techniques
and method not only for their own development but also for
the development of organization helpful in long run and for
stability and for the growth of an organization.
When a person is satisfied from his job gives more effort and
effectiveness to complete his job and try to put his maximum
output from this side. This not only helps the organization to
take out optimum effort from him but also in effective way.
This helps organization to use the optimum resources in the
best way and with less wastage.
Cooperation plays an important role in an organization
cooperation means helping each other and working together.
Mutual understanding and cooperation is necessary for each
organization. It is only possible only when the employees in
the organization are satisfied in their job when they are
satisfied there will be mutual understanding between them
and cooperative nature will be there. The employee will try to
cooperate with each other and try to achieve the goal, which
can be individual goal, or the organization goal.
Working Conditions
The importance of working conditions and factory environment
cannot be ruled out totally in giving job satisfaction, though it may
have a secondary role to play. Suitable working conditions improve
the attitude and morale of the worker and contribute to the feeling
of satisfaction in work. Study reveals that uncongenial working
condition got third position in a list of nine causes of job
dissatisfaction.
4. Relationship with co-workers
Every worker genuinely wants to be accepted by his co-workers and
desires congenial interpersonal relationship with them. Better
personal and social relationships in the working group have always
been a contributing factor towards the maintenance of high morale
and a favorable attitude. If one has more friends and less foes in the
working group, is accepted by the group and has the sense of
belonging, he has a better feeling of job satisfaction.
Responsibility
From the findings of a study it is found that the morale of the
concerned workers increases when the jobs require responsibility.
Hartman and Newcomb have found that unemployed people
appreciated jobs with more responsibility. But since no specific
study has been conducted on the relationship between
responsibility and job satisfaction no generalized conclusion can be
made on this point.
Supervision
The Hawthorne studies have already emphasized the role of the
supervisor and successful supervision in determining the attitude,
morale and level of job satisfaction of workers. In Herzberg,
Mausner, Peterson and Cap well’s investigations, supervision has
got the eight ranking next to wages. Roethlisberger and Dickson
have also found that the chance in supervisor, the attitude of
workers in an organization changed. When the attitude is favorable
towards the methods of supervision and the dealings of the
supervisor, sincerity and loyalty to the job also increases.
OUTCOMES: -
Satisfaction and performance:–
Satisfaction and performance inter related with each other
employees perform more effectively when they are satisfy.
people assume a positive relationship between job
satisfaction and performance but researchers have different
opinion about the relationship. Thus an individual’s satisfaction
is a function both of the number and amount of the rewards he
receives as well as considers to be a fair level of reward. An
individual can be satisfied with a small amount of reward of he
feels that it is a fair amount of reward for his job.
Turnover:
High job satisfaction reduces turn over. If high satisfaction
level is there people enjoy working on the organization and
where else, so they like to remain there in. If they are
dissatisfied they will try to leave & look for better opportunities
with other organizations.
Labor Turnover is a costly problem in industry. If a single
worker leave the job, his replacement cause the great
expenses which start from advertisement to training as well as
some time it also happens that new workers may not be as
good as old once. One of the reasons of turnover is job
dissatisfaction.
Usually over qualified and under qualified person selected for
the job are dissatisfied with the work and hence leave the job
when ever they get a better job opportunity so the proper
placement and recruitment should be there in the
organization.
Absenteeism:
The satisfaction and absent reflect each other if person is
satisfied the ratio of absenteeism will be less them the person
is dissatisfied. It is important to remember that although high
job satisfaction will not necessarily result in law absenteeism,
low i.e. is move to bring about absenteeism’s absenteeism as
remaining absent from work. It means leaving one’s temporary
cessation of work for not less than one whole working day or
the initiative when we talk about the relationship between
absenteeism and job satisfaction it is stronger than the
relationship between satisfaction and turn over
Morale & Attitude
Morale is willingness to structure or the goals of a particular
group. It is the possession of feeling of being accepted by and
belonging to a group of employees through adherence to
common goals and confidence in the desirability of this goal.
Quite simply morals are a group concept. It esprit de corps or
the summation of attitudes of all employees making up a
group tow and various aspects of their work.
An attitude is a set of actions with an emotional overtone.
They are related to the people, places or things, Attitude may
also be related to a tendency to regard things with approval or
disapproval. Job attitudes contribute to jobs satisfaction. Job
satisfaction or dissatisfaction is affected by various attitudes
the employee’s holds towards his job, job related factored
life in general and so on. The employees towards some of
these aspects may be positive or toward some negative. If
total of all positive attitudes exceeds the total of all negative
attitudes the moral of the group can be said to be high.
Otherwise it is low.
Motivation
Job satisfaction and job motivation are not identical concepts
while job satisfaction refers to satisfaction of a need often
resulting to a state of contentment, motivation is expending
effort towards a goal. High motivation does not in ability lead
to high performance to achieve goals, intelligence, ability, and
appropriate resources are also necessary. A worked strategy
for motivating people is to other them.
Meaningful incentives for achieving specific goals people also
need to know the likelihood that effort leads to reward feed
back on performance is also essential in motivating people.
Not all satisfied employees are well motivated and not all well
motivated people are satisfied. A popular conception of
motivation is that people work to satisfy their needs. But one
cannot avoid relating satisfaction to the theory of human
needs and motivation. The assumption is that people work to
satisfy needs and apply drive or effort towards goals, which
provide the means of satisfying those needs. The individual
get motivated to the extend that Job provides need relate
rewards and incentives so people think there aria basic
patterns of needs. At Marlow had explained it very nicely in
theory of Human need. He postulates that there is a definite
rank order priority of human needs. Physiological or primary,
safety or security, social, esteem or ego and self-actualization.
3. Objective of project :
Bhilai steel plant is a dominant player in iron and steel sector
across the continent. it has certain initiative that are
undertaken towards the company credo. To make meaningful
difference in the people’s life. Along with improvement in
physical and financial performance, it is equally important that
we able to connect the progress of company with aspiration of
the society at large. Opening up of new school’s and health
centre at different area for serving the under privileged,
organizing of health centre, developing of model steel villages
etc have been efforts in a right direction. Bhilai steel plant also
aims at modernization and expansion plans to be undertaken
to enhance production . the whole activity at Bhilai steel plant
works under one driving force of missionary zeal and total
involvement of all the employees of all the departments and
not by project group alone . Bhilai steel plant works on the
policy that full involvement of the employees without caring as
to who gets the credit. It works collectively to create synergy
for convertin their vision into reality.
4. COMPANY PROFILE
General Introduction of SAIL
Steel Authority of India Limited (SAIL) is the leading steel-
making company in India. It is a fully integrated iron and steel
maker, producing both basic and special steels for domestic
construction, engineering, power, railway, automotive and
defense industries and for sale in export markets.
Ranked amongst the top ten public sector companies in India
in terms of turnover, SAIL manufactures and sells a broad
range of steel products, including hot and cold rolled sheets
and coils, galvanized sheets, electrical sheets, structures,
railway products, plates, bars and rods, stainless steel and
other alloy steels. SAIL produces iron and steel at five
integrated plants and three special steel plants, located
principally in the eastern and central regions of India and
situated close to domestic
sources of raw materials, including the Company's iron ore,
limestone and dolomite mines. The company has the
distinction of being India’s largest producer of iron ore and of
having the country’s second largest mines network. This gives
SAIL a competitive edge in terms of captive availability of iron
ore, limestone, and dolomite which are inputs for steel making.
Formation of Hindustan Steel Limited
When the Government of India decided to enter into the field
of Iron and Steel production, it broadly envisaged not to run
the firm as a departmental undertaking. Although initially steel
project administration was directly under a Ministry of the
Central Government, Hindustan Steel was formed as a Limited
Company, with President of India owning the shares on behalf
of the people of India. Thus Hindustan Steel Limited was set up
on January 19, 1954.
Growth of Hindustan Steel Limited (1959-
1973)
To start with, Hindustan Steel was designed to manage with
only one plant that was coming up at Rourkela. For Bhilai &
Durgapur plants, the preliminary work was done by officials in
Iron & Steel Ministry. From April 1957, the supervision and
control of the Bhilai & Durgapur Plants were also transferred to
Hindustan Steel. The registered office was originally in New
Delhi, moved to Calcutta in July 1956 and ultimately shifted to
Ranchi in December 1959. Initially Bokaro Project was also
under HSL. A new steel company Bokaro Steel Limited was
incorporated in January 1964 to construct and operate the
steel plant at Bokaro. The 1 MT phase of Bhilai & Rourkela
Steel Plants were completed by end of December 1961. The 1
MT phase of Durgapur was completed in January 1962 after
commissioning of wheel and axle plant. As a result, the crude
steel production of HSL went up form 158 thousand tones (in
1959-60) to 1.6 MT(in 1961-62). 2.5 MT phase of Bhilai was
completed on 2nd September, 1967 after commissioning of
Wire Rod Mill. The last unit of 1.8 MT phase of Rourkela was
Tandem Mill commissioned on 17th February, 1968 and 1.6 MT
phase of Durgapur was completed on 6th August 1969 after
commissioning of furnace in SMS. Thus, with the completion of
2.5 MT stage in Bhilai, 1.8 MT in Rourkela and 1.6 MT phase of
Durgapur, the total Crude Steel output from HSL was raised to
3.7 MT in 1968-69 and 4MT in 1972-73.
Formation of Steel Authority of India Limited
The Committee of Public Undertaking of the Fifth Lok Sabha
was the first Parliamentary Committee to undertake a
significant review of the question of setting up a Holding
Company for steel. It was first considered in the Department of
Steel in 1971 with the following two objectives:
• Rapid growth of the industrial sector, of the economy, of the
state as a leading agent of the growth process; and
• Ability of the Government to divert investment into areas
which are strategic from the point of view of future
development.
In this context, it was recognized that the Public Sector had to
be made more efficient in order that it might be able to
contribute far more than it had to the common pool of
invertible surplus in the economy.
Further, such a holding company could perform a number of
other important functions like coordination and control of
constituent units, planning long term programmes,
introduction of necessary technological changes, setting up of
an R & D organization and training of managerial personnel for
the Public Sector as a whole. Based on the above
considerations, the proposal to set up a holding company for
Steel and associated input industries was approved by the
Government in January 1972. Accordingly, the formation of
Steel Authority of India Limited was approved by the
Government in December, 1972. The company was
incorporated on January 24, 1973with an
authorized capital of Rs.2,000 crores. In 1978 SAIL was
restructured as an operating company.
Present Status of SAIL
Steel Authority of India Limited (SAIL) through its five
integrated steel plants at Bhilai, Bokaro, Burnpur, Durgapur
and Rourkela accounts for major steel production capacity of
India.
Three special steel plants at Bhadravati, Durgapur and Salem
produce a wide range of special steels, special alloy steels and
stainless steel .MEL, Chandrapur, a subsidiary company, is one
of the largest producers of bulk Ferro Alloys in the country.
There is a proposal to merge it with SAIL.
Today, SAIL is one of the largest corporate entities. Its innate
strength lies in its technologists and professionals and a
trained manpower of over 1.34 Lakh including subsidiary.
1.1 BHILAI STEEL PLANT
Seven - time winner of Prime Minister's Trophy for best
Integrated Steel Plant in the country, Bhilai Steel Plant (BSP) is
India's sole producer of rails and heavy steel plates and major
producer of structural. The plant is the sole supplier of the
country's longest rail tracks of 260 meters. With an annual
production capacity of 3.153 MT of saleable steel, the plant
also specializes in other products such as wire rods and
merchant products. Since BSP is accredited with ISO
9001:2000 Quality Management System Standard, all saleable
products of Bhilai Steel Plant come under the ISO umbrella.
At Bhilai IS0:14001 has been awarded for Environment
Management System in the Plant, Township and Dalli Mines. It
is the only steel plant to get certification in all these areas. The
Plant is accredited with SA: 8000 certification for social
accountability and the OHSAS-18001 certification for
Occupational health and safety. These internationally
recognized certifications add value to Bhilai's products and
helps create a place among the best organizations in the steel
industry. Among the long list of national awards it has won,
Bhilai has bagged the CII-ITC Sustainability award for three
consecutive years.
Bhilai Steel Plant – a symbol of Indo-Soviet techno-economic
collaboration, is one of the first three integrated steel plants
set up by Government of India to build up a sound base for the
industrial growth of the country, The agreement for setting up
the plant with a capacity of 1 MT of Ingot steel was signed
between the Government of erstwhile U.S.S.R. and India on
2nd February, 1955, and after a short period of 4 years, India
entered the main stream of the steel producers with the
commissioning of its first Blast Furnace on 4th February, 1959
by the then President of India, Dr Rajendra Prasad
commissioning stage was completed by1961. In the initial the
plant had to face many teething problems, mostly unknown to
the workforce at the time, But by meticulous efforts and team-
sprit, these problems were surmounted and the rated capacity
production was achieved only within a year of integrated
operation of the plant. Thereafter, the plant was expanded to
2.5
MT capacity per year, and then to 4 MT of crude steel per
year,. Bhilai expanded its production capacity in two phases -
first to 2.5 MT which was completed on Sept. 1, 1967 and the 4
MT
stage, which was completed in the year 1988 Bhilai has its
own captive mines spread over 10929.80 acres. Iron ore from
Dalli-Rajhara group of mines, 85 kms south-west of Bhilai.
Limestone requirements are met by Nandini mines, 20 kms
north of Bhilai and dolomite comes from Hirri in Bilaspur
district, 135 kms north-east of the plant.
To meet the future requirement of iron ore, another mining
site Rowghat , situated about 100 km south of Rajhara, is
proposed to be developed; as the ore reserves at Rajhara are
depleting.
All the units of the plant have been laid out in sequential
formation according to technological inter-relationship so as to
ensure uninterrupted flow of in-process materials like Coke,
Sinter, Molten Iron, Hot Ingots, as well as disposal of
metallurgical wastages and slag minimizing the length of
various inter-plant communications, utilities and services. The
plant now consists of ten coke oven batteries. Six of them are
4.4 meters tall. The 7 meter tall fully automated Batteries No 9
& 10 are among the most modern in India. Of Bhilai's seven
blast furnaces, three are of 1033 cu. meter capacity each,
three of 1719 cu. meter and one is 2000 cu. meter capacity.
Most of them have been modernized incorporating state-of-
the-art technology.
Steel is made through twin hearth furnaces in Steel Melting
Shop I as well as through LD Converter -continuous Casting
route in SMS II. Steel grades conforming to various national
and international specifications are produced in both the
melting
shops. Production of cleaner steel is ensured by flame
enrichment and oxygen blowing in SMS I while secondary
refining in Vacuum Arc Degassing ensures homogenous steel
chemistry in SMS II. Also in SMS II is a 130 T capacity RH
Degassing Unit, installed to remove hydrogen from rail steel
and Ladle Furnace to meet present and future requirements of
quality steel. Bhilai is capable of providing the finest grades of
steel. The rolling mill complex consists of the Blooming & Billet
Mill, Rail & Structural Mill, Merchant Mill, Wire Rod Mill and
also a most modern Plate Mill.
While input to the BBM and subsequently to Merchant Mill and
Wire Rod Mill comes from the Twin Hearth Furnaces, the Rail &
Structural Mill and Plate mill roll long and flat products
respectively from continuously cast blooms & slabs.
To back this up, there is the Ore Handling Plant, three
Sintering Plants, a captive Power Plants, two Oxygen Plants,
Engineering Shops, Machine Shops and a host of other
supporting agencies giving Bhilai a lot of self-sufficiency in
fulfilling the rigorous demands of an integrated steel plant.
Power Plant No.2 of 74 MW
capacity has been divested to a 50:50 SAIL/NTPC joint venture
company.
PRODUCTION TONNES/ANNUM
Semis 5,33,000
Rail & Heavy Structural 7,50,000
Merchant Products
(Angles, Channels, Round & TMT
5,00,000
bars)
Wire Rods (TMT, Plain & Ribbed) 4,20,000
Plates (up to 3600 mm wide) 9,50,000
Total Saleable steel 31,53,000
1.2 BRIEF DESCRIPTION OF MAJOR
PRODUCTION UNITS OF BSP
Mines & Quarries
Bhilai Steel Plant is an ore based plant. The location of the
plant at Bhilai was based on the fact that three basic and
important raw materials required for steel making i.e. Iron Ore,
Limestone and Dolomite are available in close proximity to
Bhilai. The total iron ore requirement of BSP is met from a
group of mines at Dalli Rajhara, about 80 Kms away. Except
for some quantity of high grade limestone being procured from
Rajasthan, the total limestone requirement of BSP is met from
captive mines at
Nandini . A major portion of dolomite requirement is procured
from captive mine at Hirri. The limestone mine at Nandini and
dolomite mine at Hirri together are known as Flux Group of
Mines. where as Iron ore mines at Dalli Rajhara is named as “
Iron Ore Complex Mines”.
IRON GROUP MINES :
There are five working mines in IOC, Dalli Rajhara , i.e.
Rajhara Mechanized Mine
Dalli Mechanized Mine
Jharandalli Mechanized Mine
Dalli Manual Mine and
Mahamaya Manual Mine.
The iron ore occurring in these deposits is mainly Hematite
( Fe3O4). Principal ore types include Massive ore, Laminated
Ore, and high grade powdery ore also known as Blue Dust or
HGF. Wastes occurring in these deposits include Laterite,
Shale, & Phyllites. The host rock for the iron ore hematite is
known as Banded Hematite Quartzite (BHQ). All the mines are
worked by opencast method with a combination of fully
mechanized, or partly mechanized and partly manual means.
Crawler mounted drilling rigs are used to drill rows of holes of
6/12 meters deep for manual/mechanized mine. These holes
are then charged with cartridges slurry explosives, and
blasted. This blasted mass known as ROM is then loaded into
50 ton dumpers/ 10 ton tippers, for transportation to
processing plants.
Two processing plants have been set up for processing of iron
ore, the first being dry circuit plant installed at Rajhara and the
second being wet circuit installed at Dalli. Iron ore from
Rajhara Mechanized Mine is rich in Fe content, and thus, a dry
circuit plant of 3.7 MTPA capacity has been installed at
Rajhara. Iron ore from Dalli , having lower Fe and higher
percentage of Alumina, has a wet circuit plant of 5.55 MTPA
capacity.
RAJHARA MECHANISED MINE :
This mine was commissioned in 1960 as a fully mechanized
mine with a capacity of 2.8 MT per year. The hanging wall side
of mine consists of shales and phyllites, and the foot wall side
consists of banded hematite quartzite (BHQ) which is the host
rock of iron ore. The high grade ore from this mine is used to
improve quality of ore from Jharandalli and Mahamaya Mines,
by blending. The ore feed is crushed in three stages and
screened, to produce (i)BF lumps (10-40 mm) and (ii) Sinter
Fines (-10 mm) grade ore.
DALLI MECHANISED MINE :
This mine consists of Konde-A and Konde-B blocks. Working is
similar to Rajhara Mechanized Mine with 150 mm dia. drills,
4.6/5.5 cu.m. shovel and 50 T dumpers. Ore at Dalli has lower
Fe content and high alumina, and thus requires beneficiation
by wet processing by two stage crushing, wet screening,
scrubbing
and classification to produce lump (10-40 mm) and fines (-10
mm). This mine is a ISO 14001 certified mine. It is planed to
produce 5.95 MT in 2007-08 through this planed.
JHARANDALLI MECHANISED MINE:
This is a mine working with 1.2/1.5 cu.m. hydraulic shovel and
10 T tippers. Ore from Jharandalli is fed to Rajhara Bunker and
upgraded by high quality ore from Rajhara.
DALLI MANUAL MINE :
This is a manual mine worked by DPR workers who excavate
ore from 6 meter benches and separately stack the 8 to
250mm size ore, generated fines, waste, etc. Loading and
Transportation of ore/waste is done by contractual mechanized
means. The sorted ore is fed exclusively to Dalli Plant.
MAHAMAYA MINE :
This mine, situated 20 Km south of Rajhara, is worked with
DPR workers in a similar manner as that of Dalli manual mine
and the ore is transported to Rajhara Crushing Plant.
Dulki/Kalwar deposit near Mahamaya is yet to be opened
pending clearance by Ministry of Environment & Forests.
MANPOWER OF DALLI RAJHARA MINES
Dept Non-
Executive
Executive Total
Rajhara Mech. Mines 766 63 839
Dalli Mech. Mines 917 82 999
Dalli manual 118 4 122
Jharan Dalli 222 10 232
Iop 20 2 22
Township 66 7 73
Education 75 6 81
Medical 54 10 64
PhD 21 0 21
Ministerial 36 10 46
Ir 12 1 13
Total 2383 199 2582
VISION OF BHILAI STEEL PLANT
To seize the opportunities of tomorrow by consistently
outperforming and create an enterprising entity.
We build lasting relationships with customers based on
trust and mutual benefit.
We uphold highest ethical standards in conduct of our
business.
We create and nurture a culture that supports
flexibility ,learning and is proactive to change.
We chart a challenging career for employees with
opportunities for advancement and rewards.
CORPORATE PHILOSOPHY
Core competence in core area.
Growth through total integration.
Environmental protection by gainful utilization of waste.
Total customer satisfaction.
Positive attitude and teamwork.
2. ORIGIN OF SAIL
A Rich Heritage
The Precursor
SAIL traces its origin to the formative years of an emerging
nation - India. After independence the builders of modern India
worked with a vision - to lay the infrastructure for rapid
industrialization of the country. The steel sector was to propel
the economic growth. Hindustan Steel Private Limited was set
up on January 19, 1954. The President of India held the shares
of the company on behalf of the people of India.
Expanding Horizon (1959-1973)
Hindustan Steel (HSL) was initially designed to manage only
one plant that was coming up at Rourkela. For Bhilai and
Durgapur Steel Plants, the preliminary work was done by the
Iron and Steel Ministry. From April 1957, the supervision and
control of these two steel plants were also transferred to
Hindustan Steel. The registered office was originally in New
Delhi. It moved to Calcutta in July 1956, and ultimately to
Ranchi in December 1959. A new steel company, Bokaro Steel
Limited, was incorporated in January 1964 to construct and
operate the steel plant at Bokaro. The 1 MT phases of Bhilai
and Rourkela Steel Plants were completed by the end of
December 1961. The 1 MT phase of Durgapur Steel Plant was
completed in January 1962
after commissioning of the Wheel and Axle plant. The crude
steel production of HSL went up from .158 MT (1959-60) to 1.6
MT.
The second phase of Bhilai Steel Plant was completed in
September 1967 after commissioning of the Wire Rod Mill. The
last unit of the 1.8 MT phase of Rourkela - the Tandem Mill -
was commissioned in February 1968, and the 1.6 MT stage of
Durgapur Steel Plant was completed in August 1969 after
commissioning of the Furnace in SMS. Thus, with the
completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela
and 1.6 MT at Durgapur, the total crude steel production
capacity of HSL was raised to 3.7 MT in 1968-69 and
subsequently to 4MT in 1972-73.
SAIL Today
SAIL today is one of the largest industrial entities in India. Its
strength has been the diversified range of quality steel
products catering to the domestic, as well as the export
markets and a large pool of technical and professional
expertise.
Organization chart of Bhilai Steel Plant
SOME OF THE IMPORTANT MEMBERS OF SAIL
Shri S.K. Roongta
Chairman
Mr.G.Elias Mr .G. Ojha
Joint sectary of Director (Personnel)
Government of India
Mr. R .Ramaraju Mr. Soiles Bhattacharya
Managing Director Director (Finance)
Mr. Shoeb Ahmed Mr. V.K. Gulhati
Director (Commerical) Director (Technical)
3. Role Of HRD In SAIL And Mines
HR POLICY OF SAIL , BSP AND MINES
To enhance employee productivity attuned to business
goals of Bhilai Steel Plant
To promote a work culture which encourages the
employees to contribute their best
To develop proactive and customer focused HR team
engaged in continual innovation and change
management
To strive for making a meaningful difference in the
quality of life of employees
SERVICE RULES
When Bhilai Steel Plant was set up in late 50’s , in the initial
stages , all employees of BSP were governed under the
Fundamental rules and Supplementary Rules applicable to the
employees of Government of India. After formation of
Hindustan steel Limited , the organization framed its own rules
and procedures covering service matters. At present , there
are 4 sets of services rules that are in force in BSP:
SAIL Conduct , Discipline & Appeal Rules ,1977
Standing Order (plant)
Standing Order (mines)
HSL Conduct Rules and HSL Discipline and Appeal Rules
1. SAIL Conduct ,Discipline & Appeal Rules,1977:-
This rule was approved by Board of directors of SAlL on 30th
May 1977 .the SAIL CAD rules apply to all executives of BSP.
2. Standing Order (plant):-
This order framed under the provision of industrial
Employment Standing Order Act are applicable to all non
executive employees working within the premises. The
standing Order (plant) came into force initially from 1.4.1960
and revision, the present Standing Order came into force w.e.f.
28th Feb. 1965.
3. Standing Orders(Mines):-
This order come into force in 9th Nov 1963 are applicable to all
non executive employees working in the mines.
4. HSL Conduct Rules and HSL Discipline and
Appeal Rules:-
HSL conduct rules (1961) and HSL Discipline & Appeal rules
1962continues to apply to senior non executive who joined
prior to 1989 and who are not governed by either standing
orders (plant& mines).
WAGES AND SALARY STRUCTURE
EXECUTIVE SALARY STRUCTURE:
Scales of pay of executives, excluding Directors, as per the
Rate of Increment on percentage system on cumulative basis
with effect from 01.04.2005.
CodePay scale
E-08600-4%-14600
E-110750-4%-16750
E-213700-4%-18250
E-316000-4%-20800
E-417500-4%-22300
E-518500-4%-23900
E-619000-4%-24400
E-719500-4%-25350
E-820500-4%-26500
E-923750-4%-28550
2. NON-EXECUTIVE SALARY STRUCTURE
Code Scale of pay
S-14000-3%-560
S-24080-3%-5865
S-34170-3%-6095
S-44300-3%-6458
S-54500-3%-6964
S-64800-3%-7551
S-75100-3%-8164
S-85400-3.5%-8751
S-95800-3.5%-9471
S-106400-3.5%-11400
S-117500-3.5%-13250
DEARNESS ALLOWANCE
Dearness Allowances is paid to employees to compensate for
the rising cost of living, over which they cannot exercise any
control. The Dearness Allowance (DA) rates are determined on
the basis of the fluctuations in the All India Consumer Price
Index Number for Industrial Workers. The AICPI is computed by
Labour Authorities based on the price Movement of a basket
of consumer items, each of which has been assigned different
weight age depending on their relative impact on the industrial
consumer. The Dearness Allowance to the employees in the
revised scales of pay was fixed at Nil as on 1.1.1997 at AICPI
1708 (Base 1960=100), entire DA amount payable to an
employee as on that date was merged into the basic pay
whilst fixing the basic pay on revision of wages.
Revised Rates of Dearness Allowance
Quarter
beginning from
Average AICPI
(Base 1960=100)
DA as percentage of
revised Basic Pay
01.01.2006 2700 58.1
01.04.2006 2714 58.9
01.07.2006 2739 60.4
01.10.2006 2822 65.2
01.01.2007 2884 68.8
01.04.2007 2907 70.2
01.07.2007 2922 71.1
01.10.2007 3006 76
01.01.2008 3050 78.6
01.04.2008 3065 79.4
01.07.2008 3150 84.4
As per corporate office order No. PER/EC/1305 ,DA
after merger would be
01.01.2008 3256 40.6
01.04.2008 3362 46.8
01.04.2009 3370 47.3
01.07.2009 3416 50
ALLOWANCES AND BENEFITS
TRAVELLING ALLOWANCE RULES:-
These Rules shall cover all employees of the company for
journeys in India. These rules shall also covers trainees ,
candidates called for interview or any other persons required
to perform company’s work , wherever applicable.
Entitlement of employees for Traveling Allowance (TA) is as
follows
SNo Grade Road mileage
1 S1-S10(Non-
Executive)
Rs.140 to Rs.500(/
KM)
2 E-3 and above Rs.500 to
Rs.650(/KM)
A)DAILY ALLOWANCE
An employee shall be eligible for daily allowance if journeys
are undertaken for official purposes such as:
a) Tour, Recall from leave, Receiving National Awards,
Participation in training programmes, seminars and
conferences as nominated participant /faculty, sports/ cultural
events representing Company.
b) Appearance in Departmental examination, interview or
selection test conducted by the company.
c) Appearance in Court as jury, assessor, witness, etc. in
connection with Company's work, prosecution witness on
behalf of the State, as Inquiry Officer/ Presenting Officer/
witness/ accused/co-worker/assisting officer in Departmental/
Vigilance enquiry.
B)TRANSFER BENEFIT
An employee on transfer, except on mutual transfer or transfer
on own request, shall be entitled to the following benefits:
SNO GRADE CHARGES
1 EXECUTIVE Rs. 9000 to
Rs.11000
2 NON-EXECUTIVE Rs.6000
2. HOUSE RENT ALLOWANCE:-
HRA will be admissible to an executive who has not been
allotted any accommodation by the Company and also who is
not residing with another employee who has been allotted
accommodation by the Company. Non executives who or
whose spouse has not been allotted company's
accommodation will be entitled for HRA. An employee who
refuses or surrenders accommodation provided by the
Company shall also be eligible to house rent allowance
provided he is staying in his own house or a rented house.
HRA is admissible during duty as well as period spent on any
kind of leave or absence, and also during suspension period,
provided the individual continues to remain on the rolls of the
company.
Rates of HRA for executives:-
Classification of Cities HRA on revised Basic pay
'A-1' (Delhi/ Chennai/ Mumbai
/ Kolkata)
30%
Other `A' 25%
`B-1' & `B-2' 17.5%
`C' 15%
Non-executives will also be paid HRA equal to specified
percentage of basic pay & Dearness Pay(DP). Basic pay for the
purpose of computing HRA for non-executives working in Plant
locations will be determined by deducting Rs. 1900/- from the
actual basic pay drawn. (difference of pay between the pre-
revised & existing wage structure w.e.f. 1.7.2001 at the
minimum of S-1 scale).
2. OTHER ALLOWANCE:-
CITY COMPENSATORY ALLOWANCE(CCA)
To compensate the employees for the high cost of living in
specified locations, City Compensatory Allowance (CCA ) is
admissible to the employees posted at out stations. No CCA is
admissible if posted at Bhilai, or in any of the BSP Mines. The
rates of CCA admissible to those posted at specified cities are
as under:
CCA rates for Employees : (Exe. & Non-exe.)
Revised
Basic Pay
'A-1' class
cities
Other 'A'
class cities
'B-1
class
cities
'B-2 class
cities
Below
Rs.4000 90 65 45 25
Rs. 4001-
5250 125 95 65 35
Rs. 5251-
6499 200 240 10065
Rs. 6500 &
above
300 180 120
LOCAL TRAVELLING EXPENSES(LTE)
Employees who own a vehicle registered exclusively in their
name, will get reimbursement of expenses incurred by them
for utilizing the vehicle in performance of official duties.
The rates of reimbursement of LTE w.e.f 1.1.2005 are as under :-
S.No Type of vehicle Executive
( in Rs)
NON-Executive
(in Rs)
1 Moped/auto
cycle
360 360
2 Scooter/Motor
cycle
626 525
3 Car 1900-2950
4. FURNITURE/FURNISHINGS
To motivate executives of the Company by providing
furniture/furnishings facility at their residence.
SCOPE
To provide household furniture, furnishings and appliances to
the executives. The scheme shall operate on the condition that
the items so purchased shall be bought at their book value
(subject to minimum residual value of 5% of the cost of the
item) by the concerned executive on separation from services
of the company or at the end of specified number of years
from the date of purchase of items in Category A, B & C as per
Annexure - I. The maximum limit for purchase of
furniture/furnishings would be as under:
Grade Maximum Limit
(under category
‘A’, ‘B’, and
‘C’ put together)
(Rs.)
Maximum
purchase limit for
items under
category 'C'
(Rs)
E-7 & above 75000 30000
E-6 50000 20000
E-4 & E-5 25000 10000
5. MEDICAL BENEFITS
All regular employees of BSP and their dependent family
members are entitled to avail free medical treatment in
company's hospitals, and can be referred outside for
specialized medical treatment not available in company's
hospitals.
ADVANCE
HOUSE BUILDING ADVANCE:-
All regular employees who have put in a minimum 7 years of
service (including training period but not including NMR
period) are eligible for House Building Advance. An employee
is not eligible for the Advance if he/ she is to superannuate
within 24 months. Also, if the employee/spouse/minor
children/any other legal dependent owns a house whether
individually or jointly, the employee shall not be eligible for
HBA.
Advance Amount:
The amount of advance shall be admissible as under:
i) 60 months Basic Pay, Dearness Allowance plus DP of the
employee at the time of application; or
ii) 80% of the total value of purchase/acquisition of the land
and house to be constructed or 80% of the purchase price of a
ready built house; or
iii) Rs. 8 Lakhs, whichever is least.
Rate of Interest :
The advance granted shall carry the following rates of interest
w.e.f. 1.1.2005:
1. Upto Rs.1 lakh .. @ 4% p.a.
2. Above Rs.1 lakh .. @ 6% p.a.
2. ADVANCE FOR PURCHASE OF MOTOR VEHICLE:-
Type of
vehicle
Eligibility Maximum
Amount
Max.No.of
Installmen
t.
Max.No.of
Installmen
t.
Four
wheeler
Executives
Rs.12250/-
Exe in E-5 & above
grades :-
For Motor-Car
(including Jeep) -
90% of the normal
show room
booking price of
Maruti Zen LXi
i.e. Rs.3,00,000/-
or price of the
vehicle, whichever
is less.
For Exe in E-4 &
below grades :-
For Motor-Car
(including Jeep)
90% of the normal
show room
booking price of
Maruti 800 cc
Euro-II i.e.
Rs.1,81,700/- or
price
of the vehicle,
216 6% p.a.
whichever is less.
Two
wheeler
All
employees
Rs.4660/-
For purchase of
Motor-cycle/scoote
r:90% of normal
showroom
booking price of
Bajaj Chetak4-
stroke Scooter i.e.
Rs. 30,000/-or
price of the
vehicle, whichever
is less.
120
4% p.a.
Scooterette
/ Moped
All
employees
Rs.4660/
For purchase of
Scooterette/Mope
d, etc: Rs. 7500/-
or price of vehicle,
whichever is less.
75 4% p.a.
3. FESTIVAL ADVANCE
All regular non-executive employees (excluding NMR and
Trainees) are
entitled for Festival Advance of Rs.5000/- once a year for
celebrating festivals, commencing from the financial year.
LEAVE AND LEAVE RELATED BENEFITS
SAIL LEAVE RULES(Applicable for mines also):-
Bhilai Steel Plant provides liberal leave benefits. However,
leave can not be claimed as a matter of right. When the
exigencies of the company service so require, leave of any
kind may be refused or revoked or curtailed by the authority
competent to grant it.
The employees of Bhilai Steel Plant are governed by three
types of leave rules :
1. SAIL Leave Rules:- Applicable to Executives, Ministerial
Staff and other Non -technical staff who are not governed by
Standing Orders or Vacation Leave Rules..
2. Standing Order Leave Rules:- Applicable to all employees
governed by Standing Orders (Plant or Mines).
3. Vacation Leave Rules:- Applicable to Employees working in
Education Departments.
2. LEAVE BENEFITS TO THE EMPLOYEES GOVERNED
BY STANDING ORDERS:-
Leave
An employee, other than an Apprentice, Casual employee and
substitute or badli shall be entitled to leave as follows :
Earned Leave :
The provisions of this section as far as they relate to earned
leave and casual leave shall not operate to the prejudice of
any right to which the persons employed in the establishment
may be entitled under any other law or under the terms of any
award, agreement or contract of service provided that when
such award, agreement or contract of service provides for a
longer leave with wages than provided in this section relating
to these two types of leave, such person shall be entitled only
to such longer leave:
Every employee who has worked for a period of 240 days or
more during a calendar year shall be allowed, during the
subsequent calendar year, leave for a number of days
calculated at the rate of one day for every twenty days of work
performed by him during the previous calendar year. Further
an employee who had not attended the duty for the entire
calendar year on account of unfitness as a result of accident
arising out
of and in the course of employment, should be allowed 10
days
additional leave, as provided in the agreement, though he has
not earned EL during the calendar year. It is clarified that the
workman has not earned any leave (EL) during the whole year,
additional 10 days EL shall not be admissible.
(ii) Half Pay Leave :
At the rate of 20 days for each calendar year which may be
granted either on medical certificate or on private affairs:
provided that in the first year of service of an employee, it
should be calculated proportionately according to the period of
service put in by him. This leave may be accumulated up to 60
days. .(As per clause 4.4.2 of wage agreement 1995, enhanced
limit is 300 days)
(iii) Commuted Leave:
Not exceeding half the amount of half- pay leave due, only on
submission of a medical certificate. The grant of this leave is
subject to the following conditions:-
(a) Twice the amount of such leave shall be debited against
'half pay leave' due and
(b) The sanctioning authority has reason to believe that the
employee will return to duty on its expiry.
(iv) Extra Ordinary Leave:
Extraordinary leave for a period not exceeding 3 months in
special circumstances when no other leave is by rule
admissible, or when other leave is admissible but the
employee concerned applies in writing for the grant of
extraordinary leave, provided that if the workman is actually
under the treatment of a Medical Officer of the management
or the case is referred by the management for treating to any
other institution, the limit of 90 days extraordinary leave may
be extended to the extent recommended by such Medical
Officer or by the institution as the case may be.
(v) Quarantine Leave:
Which may be granted to an employee who is necessitated by
orders not to attend duty in consequence of the presence of
any infectious disease in his family or household. Such leave is
granted on the certificate of a Medical or Public Health Officer,
for the period not exceeding 21 days or in exceptional
circumstances, 30 days.
(vii) Special Casual Leave:
For the day or days on which an employee is unable to attend
duty in special circumstances (but not for purely personal
reasons as is the case with casual leave) for instance, due to
civil disturbance, curfew or strike( other than strikes connected
with the Works/Project) or when an employee is inoculated or
vaccinated and the Medical Attendant certifies, or takes anti
rabic treatment or is participating in sporting event of the
Steel Projects or of local, national or international importance
in a representative capacity with the prior permission of the
sanctioning authority, or suffers an injury in such sporting
events or when attending a camp of the Territorial Army or a
scout camp or for rest( not exceeding six days) immediately
after an employee undergoes sterilization operation under the
'Family Planning Scheme' subject to a maximum period of 30
days in a calendar year.
Leave Salary:
An employee shall be entitled to leave salary as follows:
(a) During 'earned leave' at a rate equal to the daily average
of his total full time earnings for the days on which he worked
during the month immediately preceding his leave, exclusive
of any over time and bonus but inclusive of dearness
allowance.
(b) During 'half pay leave' at a rate equal to half the amount
admissible under clause (a)
(c) During 'commuted leave' equal to twice the amount
admissible under clause (b)
(d) During 'extraordinary leave', no leave salary
(e) During 'quarantine leave' equal to the amount admissible
under clause (a).
(f) During 'casual leave' and 'special casual leave' at the rate
of wages drawn by the employee on the day immediately
preceding the day on which the leave commences.
Leave to Apprentices:
Apprentices shall be eligible for leave as follows :
(a) Leave on full stipend up to 15 days in any year of
apprenticeship;
(b) Leave on half stipend on medical certificate up to 20 days
in any year of apprenticeship.
(c) Casual leave up to seven days in a calendar year on full
stipend
(d) Quarantine leave and special casual leave as admissible to
other employees at the discretion of the management, on the
merits of each case, but lost time should be subsequently
made up unless this is relaxed by the management.
Leave to substitutes and casual employees:
Subject to the provisions of the law applicable to the works,
substitutes or badlis and casual employees shall not be
entitled to any kind of leave and their wages shall be deducted
on any day on which they do not attend duty excepting paid
holidays as per the Standing Order No.18(a).
Application for Leave:
(i) An employee who desires to obtain leave of absence shall
apply to the sanctioning authority.
(ii) Except in an emergency, applications for leave for three
days or less should be made atleast 24 hours before the time
from which the leave is required.
(iii) Application for leave for more than three days should be
made at least five working days before the date from which
the leave is required.
(iv) Application for leave under clause(b) shall be disposed of
immediately. Applications for leave under clause(c) shall be
disposed off within four working days.
(v) Orders granting or refused leave shall be passed by the
authority in writing. In case leave is sanctioned, the employee
shall be given a leave pass and in case leave is refused, the
reasons for refusal shall be communicated to the employee in
writing.
(vi) All applications for leave must bear the leave address.
(vii) An employee who desires to extend his leave shall make
an application in writing to the sanctioning authority before the
expiry of the leave already sanctioned.
(viii) Applications for leave or extension of leave on medical
grounds shall be supported by a certificate from a medical
officer of the company or where there is no such officer, a
Government medical officer or failing him, from a registered
medical practitioner, stating the period for which leave is
recommended. On receipt of such applications, the sanctioning
authority shall immediately inform the employee in writing
whether the leave or extension of leave has been granted and
if so, for what period. An employee who has been sanctioned
leave or an extension of leave on medical grounds for a period
exceeding 14 days at a time shall not be allowed to resume
duty unless he produces a certificate of fitness.
VACATION LEAVE RULES:
The employees working in Education Department of Bhilai
Steel Plant
are entitled the following leave benefits:-
1) 6 days Earned Leave in a calendar year.
2) 20 days H.P.L. for every completed year of service.
3) 15 days casual leave.
4) 1 day EL for 3 days working during vacation.
5) 18 days closed holiday including 3 NH & 1 CFD.
In addition to the above, they are entitled to the vacations as
follows
a) 45 days summer vacation.
b) 25 days Dusshera-Diwali vacation.
3. GENERAL GUIDELINES REGARDING LEAVE
Grant of leave on Medical Certificate
If leave is availed on Medical Grounds, employee will be
required to produce a medical certificate of unfitness from the
Plant Medical Officer only. In case the employee is not residing
in the Township and is staying at a far off place where
Company Hospital/Dispensary is not available, he may produce
Medical Certificate from a Govt. Doctor. In such cases, it
should be ensured that medical certificate meets with the
prescribed norms viz., printed letter head of the
Hospital/Dispensary, clear diagnosis, OPD No. and signature of
the patient duly attested by the treating Doctor. At the time of
resuming duty after availing leave on medical grounds,
employee will have to produce a certificate of fitness.
4 . LEAVE ENCASHMENT RULES
The rules for encashment of leave shall cover all regular
employees of Bhilai Steel Plant, but exclude those on
deputation from Government/other Organizations . Company
employees on deputation to other organizations are Covered
by these rules provided that, while on such deputation they
are governed by the leave rules of SAIL
Encashment of Earned Leave:
Persons who are employed in the Company after
superannuation from their organizations and who according to
the terms and conditions of appointment in the Company are
allowed to accrue earned leave during the period of service in
the Company may be allowed the facility of encashment of
such earned leave, as in the case of regular employees.
On retirement :
If any leave due to an employee is not utilized , he shall be
allowed to encash the unavailed portion of the earned leave.
On death :
Leave salary in respect of earned leave standing to his credit
shall be paid to the PF nominee/gratuity nominee/legal heirs of
the employee. The limit of encashment will be up to 190 days
for employees governed by Standing Orders and 300 days
earned leave for other employees, depending upon the
applicability of leave rules.
On resignation :
An employee shall not be allowed encashment of earned leave
on acceptance of his resignation. However, an employee who
tenders his resignation shall have the option to pay an amount
equivalent to basic, DA, DP, NPP and PP as applicable for the
shortfall in notice period and seek early release. Employees in
the age bracket of 57 years and above who separate from the
Company on acceptance of their Resignation / Voluntary
Retirement would be allowed encashment of Earned Leave.
On suspension:
Employees placed under suspension shall not be entitled to
leave encashment. Sanctioning Authority:
The authority that is competent to sanction earned leave shall
be the "Sanctioning authority" for approving encashment of
leave under these rules.
Encashment benefits:
Enactment of leave shall be regulated on the basis of last pay
drawn which includes basic pay, dearness allowance, dearness
pay, non-practising allowance for doctors and personal pay, if
any, but shall not include incentive bonus, acting /officiating
allowance and other allowances. The facility of encashment of
EL shall be hence forth allowed only once in a Financial year
instead of calendar year basis. Other terms and conditions for
availing encashment of earned leave remain unaltered.
LEAVE TRAVEL CONCESSION
Leave Travel Concession (LTC) is a welfare measure of the
company to Provide travel assistance to the employees and
members of their families for visiting their home town/any
place in India.
MOTIVATION SCHEME
INCENTIVE SCHEME FOR PROMOTING SMALL FAMILY
NORMS:-
Incentives:
Those employees (or their spouses) who are within the re-
productive age group and undergo sterilization operation
after one or two living children, will be allowed cash incentive
of Rs.2,000/- and those who undergo family planning operation
after more than two living children will be allowed cash
incentive of Rs. 200/- subject to satisfying the conditions for
eligibility. Cash incentive for IUCD insertion shall be paid at the
rate of Rs.50/-.The employees can also avail the incentive
given by the respective State Govt.
Re-productive age group:
Male employee :- Age of self should not be more than 50 years
and wife should be between 20 to 45 years.
Female employee:- Age of self should not be more than 45
years and husband should not be over 50 years.
Cash Incentives for promoting small family norms for
employees and employees family Planning Accepters and
family Planning motivators conducted in family Planning
camps and fornight by SAIL family welfare unit are revised as
under
Category Existing Rate Revised Rate
Female employee
for
undergoing
Tubectomy &
Salpingectomy
operation
Rs. 200 Rs. 400
Male employee
for
undergoing
vasectomy
operation
Rs. 250 Rs. 500
Family Planning
motivators
Rs. 25 in each
case
Rs. 50 in each
case
HINDI PROMOTION INCENTIVE SCHEMES:-
In order to encourage the employees to acquire qualifications
in hindi language, and use Hindi in their official work, various
incentives are provided by the company.
The employees are eligible for Incentive for the following
qualifications in Hindi of the Hindi Teaching Scheme
recognized by Government of India :-
1. Prabodh Examination
2. Praveen Examination
3. Pragya Examination
4. Hindi Typing
5. Hindi Stenography
6. Karyalayeen Hindi Diploma
Benefits :
I. Grant of lump-sum Award:
Examination Award months from the date of their first
appearance in the said examination.
I. Prabodh examination of the Rs.500.00
Hindi Teaching Scheme. (Rs. five hundred only)
II. Praveen examination of the Hindi Rs.500.00
Teaching Scheme. (Rs. five hundred only)
III. Pragya examination of the Hindi Rs.600.00
Teaching Scheme. (Rs. Six hundred only)
IV. Hindi Typewriting examination of Rs.400.00
Hindi Teaching Scheme (Rs. four hundred only)
V. Hindi stenography examination of Rs.750.00
Hindi Teaching Scheme. (Rs Seven hundred fifty only)
VI. Such Hindi examinations conducted Rs.600.0
by voluntary Hindi organizations (Rs Six hundred only)
VII. Hindi Parichay examination of the Rs.600.00
Central Hindi Directorate. (Rs. Six hundred only)
For grant of lump-sum award, the employees will have to pass
the Hindi, Hindi typing or Hindi stenography examination
within a period 15.
II. Grant of Personal Pay :
Personal pay equal in amount to one increment for a period of
12 months at the current rate of increment will be granted to
the employees on passing the following examinations of the
Hindi Teaching Scheme.
1) Pragya or equivalent recognised Hindi examination
2) Hindi stenography examination.
3) Hindi Typewriting examination.
III. Grant of Additional Incentive by way of Cash
Awards:
For passing Praveen or Pragya: 70% & above. - Rs.600/-
60% to 69% - Rs.400/-
55% to 59% - Rs.200/-
For passing Prabodh : 70% & above. - Rs.400/-
60% to 69% - Rs.200/-
55% to 59% - Rs.100/-
For passing Hindi Stenography/Hindi Typewriting examination:
95% & above. - Rs.600/-
90% to 94% - Rs.400/-
85% to 89% - Rs.200/-
Incentive @ Rs.600/-is also admissible for such Hindi
qualifications which are equivalent to Pragya.
INCENTIVE FOR NATIONAL AND ALL INDIA AWARD WINNERS:
Objective
To give recognition to employees for their unique
accomplishment in Innovation in technology, work-
performance, sports, which has brought them recognition at
the national level, SAIL has formulated an incentive scheme for
winners of specified national and all India awards.
Policy
Employees who win specified National / All-India Awards shall
be granted an advance increment as a token of appreciation
by the Company. The intention of the Scheme is to give the
incentive only to those employees who get a National / All-
India Award after joining the service of the Company.
Employees, who might have won any of the specified awards
prior to their joining the Company, would not be entitled to the
incentive under this Scheme.
Sanctioning Authority
The sanctioning Authority for the incentive is Managing
Director/Chief Executive of Plant/Unit.
Incentive Entitlement
One advance increment shall be admissible for winning any of
the following awards:
Invention Promotion Scheme Award / National Research
development corporation Award.
National Metallurgists' Day Award
Jiwan Raksha Award
Vishwakarma Rashtriya Puraskar
Arjun Award for Sportsmen
S.S.Bhatnagar Award
Homi Bhabha Award for excellent scientific work
Vasivik award for Senior Scientists
Indian Science Academy (INSA) Award.
Bharat Ratna
Padma Vibhushan
Padma Bhushan
Padma Shri
Ashok Chakra
Kirti Chakra
Shaurya Chakra
Sarvottam Jeevan Raksha Padak
Uttam Jeevan Raksha Padak
President's Police Medal
Police Medal
Fire Service Medal awarded by President of India
Rashtrapati Award for Teachers
Lalit Kala Academy Award
Sangeet Natak Academy Award
SEPERATION BENEFITS
CONTRIBUTORY PROVIDENT FUND (CPF ) :
Any person who is employed for wages in any kind of work,
manual or Otherwise, in or in connection with the work of the
company and who gets his wages from the company is
covered under the CPF rules of the company. From the first
day of the service, an employee becomes the member of the
fund.
Member's contribution:
The compulsory contribution of a member shall be 12% of the
emoluments while on duty or on leave.
However, a member can increase his own voluntary
contribution to a rate exceeding 12%, but there will be no
matching company's contribution to the VPF . The rate of VPF
contribution of a member may be enhanced or reduced at any
time during the financial year.
Company's Contribution:
The contribution of the Company to the PF Fund shall also be
12 %, i.e. matching to the employee's contribution. Except in
the case of employees who have joined service prior to 1971
and did not become member of FPS 1971, all other employees
are also compulsory members of Employee Pension Scheme
(EPS 1995) . In their cases, the effective company's
contribution to the PF fund will be 12% of emoluments less
8.33% of emoluments or Rs.542/- per month which ever is less.
The difference amount is remitted as the employee's
contribution to the EPS Fund. The figure of Rs 542/- p.m. or Rs
6500/- per year is as per the present ceiling of EPS
contribution notified by the Govt. and may increase in future.
For example, if an employees monthly pay is Rs 10,000/-, its
12% will be Rs 1200/- and 8.33% will be Rs 833/-. Accordingly,
in this case, out of the employer's contribution, Rs 542/- will be
remitted to EPS Fund, and the remainder, i.e. Rs 658/- will be
credited to the PF fund. If however, pay is Rs 5000/-, (12% =
Rs 600/- and 8.33% is Rs 416.50), then only Rs 416.50 will be
remitted to the EPS fund and the remainder of employer's
contribution, i.e. Rs 183.50 will be credited to the member's PF
accumulation.
Interest:
The present rate of Interest on the contributions to the PF fund
is 9.50% per annum. The interest is calculated on a monthly
running basis.
2. GRATUITY
Gratuity is granted for good, efficient and faithful service
rendered in the Company. Where nothing has been provided
against an employee, it would be deemed that he has
rendered good, efficient and faithful service. The payment of
Gratuity Act-1972. 16.9.1972 it was came into effect.
Reasons for Separation Minimum qualifying
service
Superannuation /
discharge on
abolition of post /
resignation/
termination on account of
unauthorized absence /
misconduct
5 years
In case of death
/permanent
physical or mental
incapacity.
Irrespective of any
qualifying
period
The Gratuity nominee as declared by the employee.
For the purpose of computation of gratuity, 15 days wages will
be computed in the following manner.
15 days wages = Monthly wages x 15
26
Payment of Gratuity on separation of an employee on account
of misconduct.
Type of misconduct
leading
to termination/dismissal
Amount of gratuity
admissible
Misconduct resulting in
damage /
loss to the Company's
Forfeiture of gratuity to
the extent of
loss suffered by the
property Company
Acts of violence and
riotous or
disorderly behavior and
offence
involving moral turpitude
50% of the amount to
which the
employee is entitled as per
the
computation of gratuity
under SAIL
Gratuity Rules
Other misconduct Full Payment.
Death :
In case of death Gratuity shall be calculated as mentioned
above and as given below and higher of the two will be
admissible.
1. Death during the first year of service 2 months
emoluments.
2. Death after one year but 6 months
emoluments. before five years of service
3. Death after completion of 12 months
emoluments five years of service.
3. LIFE COVER SCHEME.
Background :
According to the clause 6.5 of the NJCS Agreement dated 30th
July 1975 on wage structure applicable to the employee of
Steel Industry, it was agreed that a Life Cover Scheme (LCS)
will be worked out. In the meantime a notification was issued
by Govt. of India on 17.7.1976 for introduction of an insurance
scheme called Employees Deposit Linked Insurance Scheme
(EDLI) from 1.8.1976 providing for insurance benefits upto Rs.
10,000/- to the nominee of a PF member in case of death of
the member while in service. The notification also provided for
exemption from operation of this scheme (EDLI) where
establishments are having insurance schemes which are more
favourable than the EDLI. In the Agreement reached in the
NJCS on 27.9.1978, it was stipulated that “in the event of
death, on any account, of any covered employee, his nominee
shall be paid a sum which, together with the payment due to
him under the Company’s
Gratuity Rules, will be equal to 20 month’s salary (Basic + DA)
at the rates payable immediately before the date of death of
the member; provided that the amount to be paid in addition
to the normal gratuity shall not in any even be less than Rs.
11,000/-” This scheme was named Life Cover Scheme and was
effective from 1.8.1975. A group insurance scheme of LIC was
introduced w.e.f 1.11.78 for a coverage in lieu of the EDLI
1976. This Group Insurance scheme met the company's
liability, in terms of the Life Cover Scheme agreed by NJCC.
Subsequently vide NJCS agreement dated 19th June 1979, the
scheme was also extended to employees who ceased to be in
employment on account of permanent total disablement due
to any reason whatsoever. However payment under Life Cover
Scheme on a/c of permanent total disablement is borne by the
Company and not by LIC.
Coverage:
Whilst all death and medical unfit cases are covered under the
Life cover scheme, employee who gets rehabilitated by way of
alternative appointment will not be covered under Life Cover
Scheme.
Benefit:
At present SAIL operates the Life Cover Scheme (LCS) in lieu of
the statutory EDLI Scheme. With effect from. 24th June,2000,
an amount of Rs. 62,000/- is admissible under Life Cover
Scheme in case of death / medical unfit of employee
(Executive & non-executive both) Whenever there is a revision
in the EDLI benefits, the benefits under Life Cover Scheme are
also revised. However SAIL also revised the benefits under LCS
twice (1st in 1983 and again 1995) although there was no
increase under EDLI in these years. The details of the benefits
payable under EDLI visa- vis the Life Cover Scheme (Group
Insurance Scheme) being operated through LIC are as under :
Period Maximum
benefits
payable
under EDLI
Period Benefit
payable
under Life
Cover
Scheme of
LIC
1.8.76 to
Feb 1990
Up to Rs.
10,000
1.11.78 to
April
1983
Rs. 11,000/-
1.3.1990 to
March 1993
Up to Rs.
25,000
May 1983 to
Feb,
1990
March 1990
to
March 1993
Rs.15,000/-
Rs. 26,000/-
April 1993
to 23.6.2000
Up to
Rs.35,000/-
1.4.1993 to
17.5.95
17.5.1995 to
23.6.2000
Rs. 37,000/-
Rs.40,000/-
(Rs.37,000/-
by
LIC Rs.
3000/- by
SAIL)
24.6.2000
onwards
Up to Rs.
60,000/-
1.12.2000
onwards
Rs. 62,000/-
STEEL EMPLOYEES WELFARE ASSOCIATION (SEWA)
Scope:
Steel Employees Welfare Association(SEWA) was formed with
the objective of creating a social security fund to extend
financial assistance to the member of the association at the
time of his/her permanent disability / medical unfitness /
retirement / resignation/ dismissal / removal / termination from
service and transfer to any other Establishment from BSP or to
the nominee(s) (or to a dependent in case there is no nominee
or if the nominee has pre deceased the member) of the
employee in case of death during service in Bhilai Steel Plant.
Eligibility :
1) All employees of the Bhilai Steel Plant except casual, NMR
workers shall be ipso-facto members of SEWA, unless he/she
desires to remain out of SEWA and states the same in writing.
Trainees who have been allotted Personnel number on their
entering into BSP service and whose subscription recovery is
being effected through regular salary, will be treated as
member and entitled for the benefits as per the bye-laws.
2) Once an employee of BSP has been sent on deputation to
any other organization other than BSP, he is not eligible to
continue his membership and ceases to be a member from the
date of such deputation, even though he is on lien. However,
he is entitled for the benefits as on the date of cessation of
membership, as per eligibility.
Resignation:
1) If an employee so desires, he may revoke/resign his
membership of SEWA by an intimation in writing to the
Chairman/ Secretary, SEWA to this effect. However he will not
be entitled to any refund towards entry fee or subscription on
any account or any benefit. The resignation from the SEWA will
be subject to approval by the Governing Body.
2) Any member of SEWA will automatically cease to be a
member consequent upon his/her retirement/ compulsory or