A PROJECT REPORT ON INDUSTRIAL RELATIONS IN BHILAI STEEL PLANT, SAIL SUBMITTED TO MAEER’s MIT SCHOOL OF BUSINESS BY TRIPTI PATHAK 2803354 28 TH BATCH IN PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) Human Resource September, 2011-12 MAEER’s MIT SCHOOL OF BUSINESS
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A PROJECT REPORT
ON
INDUSTRIAL RELATIONS IN BHILAI STEEL PLANT, SAIL
SUBMITTED TO
MAEER’s MIT SCHOOL OF BUSINESS
BY
TRIPTI PATHAK
2803354
28TH BATCH
IN PARTIAL FULFILLMENT OF
POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)
Human Resource
September, 2011-12
MAEER’s MIT SCHOOL OF BUSINESS
PUNE
Table of Contents
Chapter No. Title Page No.
Declaration from student iii
Certificate from Company/Organization iv
Certificate from Guide v
Acknowledgement vi
List of Tables vii
List of Graphs viii
List of Charts ix
List if Abbreviations x
Executive Summary xi
I Introduction
1.1 Company profile 2-13
1.2 Objectives of the study 14
1.3 Limitations of Study 14
II Research Methodology
2.1 Primary data 16
2.2 Secondary data 16
2.3 Sample design 16
2.4 Population 16
2.5 Sample size 16
2.6 Sampling method 16
2.7 Method of data collection 17
2.8 Instrument for data collection 17
III Theoretical Background 19-23
IV Data Processing and Analysis 25-42
V Management Lessons 44-47
VI Findings 49
VII Recommendations 51-52
VIII Conclusions 54
Bibliography 55
Appendices / Annexure 56
DECLARATION
I the undersigned solemnly declare that the report of the thesis work entitled “INDUSTRIAL
RELATIONS” is based on my own work carried out during the course of my study under the
supervision of “Dr.S.K.SHUKLA”.
I assert that the statements made and conclusions drawn are an outcome of my
research work. I further declare that to the best of my knowledge and belief the report does
not contain any part of any work which has been submitted for the award of MBA degree
certificate in this University or any other University of India or abroad.
NAME: TRIPTI PATHAK
Place: Bhilai
M.B.A Date:
Regd. No.
STEEL AUTHORITY OF INDIA LIMITED
BHILAI STEEL PLANT
CERTIFICATE
This is to certify that the project entitled “INDUSTRIAL RELATIONS” being submitted
by TRIPTI PATHAK
” for the partial fulfillment of MBA as a student from the “MIT SCHOOL
OF BUSINESS” I for the session 2010-2011 is a bonafide presentation under my
guidance and supervision.
I wish her best of luck for a bright future.
P.P.VERMA
DGM(P-NW/MPS/RECTT.)
Bhilai Steel Plant (C.G.)
CERTIFICATE
This is to certify that Ms. Tripti Pathak of MAEER’s MIT School of Business has
successfully completed the project work titled INDUSTRIAL RELATION IN BHILAI
STEEL PLANT under the guidance of Prof. Dhrupa Bhatia for partial fulfillment of
requirement for the completion of PGDM course as prescribed by the MAEER’s MIT
School of Business.
This project report is the record of authentic work carried out by her during the period
from 02-05-2011 to 25-06-2011 (8 weeks).
She has worked under my guidance.
Prof. Dhrupa Bhatia
Project Guide (Internal)
Date:
Prof. (Gp. Capt.) D. P. Apte
Director
Date:
ACKNOWLEDGEMENT
Guidance, help and encouragement are the essential requirements for
successful completion of any project. I owe my gratitude to all those who have helped me
in the preparation of this project report.
I express my deepest gratitude to my project guide P.P.VERMA, DGM (P-
NW/MPS/Rectt.) for his valuable guidance and help in completion of this project.
I express my sincere thanks to Mrs. ANURADHA SINGH, Senior Manager
(P-RECTT.) and the non-works department for their valuable inputs.
I feel obliged to my internal guide Prof. Dhrupa Bhatia for her generous help
and support.
I express my thanks to Dr. S K Shukla (Sr. Research Coordinator) for
coordinating my project work in Bhilai Steel Plant.
I also feel obliged to all the respondents, friends and others who have shared
their valuable time and opinion, for making significant contribution directly or indirectly
in the project.
Executive Summary
Objective:
To conduct a satisfaction survey of the employees on the Industrial Relation activities
in the company.
To provide suggestions, if any, for enhancement of Industrial Relations in the
company
Research Methodology:
Primary Data:
To know the opinion about the Industrial Relation system in Bhilai Steel Plant (SAIL),
questionnaires has been made separately for workers and executives. The investigator took
interviews of the executives and workers based upon Industrial Relations of B.S.P.
Secondary Data:
The secondary source of getting facts related to project work has been collected from the
following:
o Statistical statement
o Journals
o Internet
o BSP Panorama
Population: the total strength of BSP is 50,000 employees approx. Mostly the labor
workforce
Sample Size: I took a sample of 200 workers in different departments and 30 executives
Method of data collection: Questionnaire
Data processing and analysis:
Separate data was recorded for the floor level employees and executives with the
help of questionnaires and personal interactions.
After filling of questionnaires the information collected was put together in form of
tables.
For analyzing the data, pie charts and bar diagrams were constructed
We made use of charts and diagrams as the pictorial representation data is much more
understandable
CHAPTER – I
INTRODUCTION
The relationship between Employer and employee or trade workers is called Industrial
Relation. Harmonious relationship is necessary for both employers and employees to
safeguard the interests of the both the parties of the production. In order to maintain good
relationship with the employees, the main functions of every organization should avoid any
dispute with them or settle it as early as possible so as to ensure industrial peace and higher
productivity. Personnel management is mainly concerned with the human relation in industry
because the main theme of personnel management is to get the work done by the human
power and it fails in its objectives if good industrial relation is maintained. In other words
good Industrial Relation means industrial peace which is necessary for better and higher
productions.
A man working in a healthy atmosphere can produce more. Within an industry there is a
hierarchy among the people. From the very beginning there is always a gap between have
and have-nots. In order to bring harmonious relation between the management, workers and
workers for the sake of industry as well as for the nation, positive relation within an industry
is expected. Therefore the term "INDUSTRIAL RELATION” came into limelight.
Industrial Relation is a major force which influences the social, political and economic
development of a country .Managing industrial relations is a challenging task because it
deals with a highly complex, fast developing, ever changing and expanding field. There are
certain factors such as composition of working class, work environment, socio-economic
status of the workers and their attitude to work, management's ideology, role of the state,
thinking of the community etc which have a considerable bearing on the state of relationship
between labor and management. Different labor enactments and judicial decisions play a
major role in regulating the employer -employee relationship. It creates an atmosphere in
which the human system will operate harmoniously in a coordinated way. Keeping in view
the different aspects of industrial relations, an attempt has been made in this project to
provide a multi dimensional approach to the subject.
1.1 Company profile
STEEL AUTHORITY OF INDIA LIMITED (SAIL)
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 owing the shares on behalf
of the people of India. Thus Hindustan Steel Limited was set up on January 19, 1954.
Formation of Steel Authority of India Limited (SAIL)
The Committee of public Undertaking of the 5th lok Sabha was the 1st parliamentary
Committee to undertake a significant review of the question of setting up a holding Company
for steel. It was 1st considered in the Department of steel in 1971 with the following 2
objectives:
Rapid growth of the industrial sector, 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 investible
surplus in the economy. Further such a holding company could perform a number other
important functions like coordination and control of constituent units, planning long term
program, 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 consideration, the proposals to set up a holding company for steel and
associated input industry 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 in January 24, 1973 with an authorized
capital of Rs 2 thousand crore. In 1978 SAIL was restructured as an operating company.
BRIEF HISTORY OF BHILAI STEEL PLANT
Bhilai steel plant – a symbol of Indo –soviet techno –economic collaboration ,is one of the
first three integrated steel plant 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
setting up the plant with a capacity of 1MT of Ingot steel was signed between the govt. of
erstwhile U.S.S.R and India on 2nd feb,1955,and after a short period of 4yrs,India entered the
main stream of the steel producer with the commissioning of its 1st blast furnace on 4th feb
1959 by the then President of India Dr Rajendra Prasad. Commissioning of all the units of
1MT stage was completed by 1961. In the initial phase the plant had to face many teething
problems , mostly unknown to the work force at the time, But by meticulous efforts and team
spirit ,these problem where surmounted and the rated capacity production was achieved only
within a yr of integrated operation of the plant.
Thereafter, the plant was expanded to 2.5MT capacity per yr, and than to 4 MT of crude steel
per yr, Bhilai expended its production capacity in two phases 1st to 2.5MT which was
completed on sept. 1, 1967 and the 4 MT Stage, which was completed in the yr 1988.All the
units of the plant have been laid out in sequential formation according to technological
interrelation ship so as to ensure uninterrupted flow of in process material like coke, sinter,
molten iron, hot ingot, as well as disposal of metallurgical wastages and slag etc, minimizing
the length of various inter plant communications, utilities & services Bhilai has its own
captive mines spread over 10929.80 acres. Iron ore from dalli-rajhara group of mines, 85 km
south west of bhilai .Lime stone requirements are mate by nandini mines, 20 kms north of
bhilai & dolomite comes from hirri in bilaspur district, 135 kms north east of the plant. To
meet the future requirements of iron ore, another mining site rowghat, situated about 100
kms south of rajhara, is proposed to be developed as the ore reserve as at rajhara are
depleting the plant now consist of 10 coke oven batteries. Six of them are 4.4 MTS tall. The
7 meters tall fully automated batteries NO 9&10 are among the most modern in India. Of
Bhilai’s 7 blast furnaces, there are of 1033 cu.meters capacity each, 3 of 1719 cu.metres and
1 is 2000 cu.metres capacity each, 3 of 1719 cu.metres 1 is 2000 cu.metres capacity. Most of
them have been modernized incorporating state-of-the-art technology.
The plant’s Quality Assurance System has been awarded ISO 9001:2000 certification. Not
content with the Quality Assurance system for production processes, Bhilai has obtained
ISO 14001 certification for its Environment Management System and for its Dalli
Mines. Besides environment-friendly technology like Coal Dust Injection System in the
Blast Furnaces, de-dusting units and electrostatic precipitators in other units, BSP has
continued a vigorous a forestation drive, planting trees each year averaging an impressive
1000 trees per day in the steel township and mines. A leader in terms of profitability,
productivity and energy conservation, BSP has maintained growth despite recent difficult
market conditions. A significant reason for BSP’s performance is adherence to quality
management systems in different fields.: Bhilai has become the first public sector
organization to have been awarded all the four certifications of ISO 9001 for quality,
ISO 14001 for environmental management system for plant and mines, OHSAS 18000
for safety and health and SA 8000 for social accountability.
Rail and Structural Mill:-
Rail and Structural Mill of Bhilai Steel Plant, SAIL is the world’s largest Producer of rails
with an installed capacity to produce 500 000 tons of rails and250 000 tons of structurals.
Bhilai is also the sole supplier of the country’s longest rail tracks of 260 metres. The length
of rails produced so far since inception is sufficient to encircle the globe more than 8 times.
The major profiles produced in the mill are:-
Merchant Mill:-
The "350 mm" Merchant mill is a semi continuous high capacity mill designed to roll
500,000 tones of finished products per year as per present market demand. Main products are
:Rounds Bars 28,32,36,40,50,53,56,60,63 & 67 mm dia; TMT bars of 28, 32,36, 40 and 45
mm are also being rolled. Angles 50x50, 65x65, 75x75, 80x80 and 90x90 mm leg lengths
and thickness ranging from 5 to 10 mm.Channels 100x50, 75x40 mm.
Plate Mill:-
The modern plate mill rolls out heavy and medium plates, as well as those for the pipe
manufacturers. Plates of wide varity in any required size, and strength, chemical and physical
properties can be produced here. It has capacity to produced high pressure, boiler quality and
high tensile steel. Ship building creates, conforming to Lloyds specifications, and pressures
vessals boiler plates, conforming to various ASTM, ASME, standards, have with stood the
challenges of nature and time. Some of the unique features of the mill are on line finishing
facilities and off line normalizing facilities. BHILAI has the widest plate mill in the country
and it uses continuously caste slabs as input. Liquid steel produces under control conditions
in the LD converters is rinsed with argon gas to homogenize the composition as well as to
remove non-metallic inclusion before continuous casting so as to ensure the production of
high quality feed stock for the plate mill.
BSP ORGANISATIONAL OBJECTIVES:
To encage customer satisfaction through:-
Improvement in productivity and product quality.
Skill enhancement of our people by competence commitment and culture-
building.
Production as per customer requirements.
Achieving continual improvement in productivity, quality and salability of our
products.
PRODUCT PROFILE:
Bhilai Steel Plant (BSP) has mainly three types of products:-
1. Semis Product
2. Long Products
3. Flat Products
BSP is one of the major producers of long steel products in India. The current product mix of