Steel India Limited (SAIL), one of the largest

                  

Steel Authority of
India Limited

 

 

Steel Authority of India Limited (SAIL), one of the
largest state-owned steel making company, is among the seven Maharatna companies
of the Public Sector Enterprises. It has five integrated plants and three
special steel plants, located in the eastern and central regions of India.

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Following are the highlights of SAIL:

SAIL has won
Gold Trophy of “SCOPE Meritorious
Award for Best Practices in Human Resource Management” for the year
2014-15 & “Golden Peacock Award”
for Corporate Governance, by the Institute of Directors, India, for the year
2016.

 

 

Key Facts & Figure –

ü  Founded as Hindustan Steel
Limited on January 19, 1954

ü 
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. SAIL manufactures and sells a broad
range of steel products.

ü 
The Government
of India owns about 75% of SAIL’s equity and retains voting control of the
Company. However, SAIL, by virtue of its ‘Maharatna’ status, enjoys significant
operational and financial autonomy.

ü 
Revenue of INR
503 billion

ü 
Net Income of
INR 449.8802 billion

 

Performance Appraisal System –

There are two
types of
performance appraisal which are done on the basis of designation of
the employee. They
are:

  1. Executive performance appraisal system

   2.  Non-executive performance appraisal system

EXECUTIVE PERFORMANCE APPRAISAL
SYSTEM

This
system is for performance appraisal for executives of the level E-0 to E-4. The
various steps involved are:

A)     
Self-appraisal Performance Review &
Planning

a.      
Appraisee gives his input regarding his actual achievement against
the tasks(KPAs) assigned to him for the year.

b.      
The Reporting officer’s reviews and comments the above activity,
keeping in mind the time frame.

c.      
Any special activity other than the tasks assigned is also
mentioned.

B)     
Performance Review Discussion

a.      
This is done in consensus of the appraisee and the reporting
officer.

b.      
Strengths, weaknesses and areas for development are analyzed.

C)     
Performance Assessment

a.      
Rating ranging between 1 to 5 are given to the appraisee by
the Reporting Officer and Reviewing Officer individually on the basis of
Performance Factors and Potential Factors. Performance Factors: Quantity of
output, Quality of output, Cost control, Job Knowledge and Skill, Team spirit
and Lateral, Coordination, Discipline, Development & Quality of assessing
subordinates and special relevant factor.

 

Potential Factors: Communication,
Initiative, Commitment and sense of Responsibility, Problem Analysis
and Decision making, Planning and Organizing and Management of Human resources

b.      
Different weightage is given to each factor 

c.      
Final scores are calculated by multiplying rating and weightage.
By adding these Total Factor Score is calculated.

d.      
Comments on Overall Performance and Potential are written by both
Reporting and Reviewing Officers individually.

D)     
Suggestions
for Job Rotation and Job Enrichment

a.      
Comments from both reporting and reviewing officers about
the performance of the appraisee and deciding his fate in the current
department is considered.

b.      
Sometimes, the Head of the department also contributes in giving
his valuable comments on the overall performance & potential of the
employee.

E)     
Final Assessment

a.      
Total Factor Score by both reporting and reviewing officers is
written and average is calculated.

b.      
Final Grading between O / A / B / C is given.

c.      
If Final Grade is C, indicate whether to promote or not to
promote the appraisee.

d.      
If not to promote give reasons.

e.      
Meeting with non-promotable appraisee.

 

 

Non-executive Performance Appraisal
System

Performance Appraisal of the non-executive employees is a
simpler process with the reporting and reviewing officer giving their comments
on the basis of job performance; job knowledge and skill; conduct and behavior;
cost and quality consciousness and initiative. Weight age is given to various
factors. Grades of O/A/B/C are given. In case of C grade, the employee is
interviewed by the head of department.

 

 

 

 

 

 

 

 

Salient Features of the New EPMs –

1.      
Online Performance Management System.

2.      
Goal Alignment cascade workshops for Performance
Planning which would include setting of departmental goals & thereby
finalizing the individual KPAs.

3.      
Direct correlation of performance assessment
with Key Performance Areas.

4.      
KPAs would be quantifiable and weighted with
clear cut evaluation criteria.

5.      
Online performance diary available for all
executives with 24 X 7 access.

6.      
Independent assessment by reporting officer and reviewing
officers.

7.      
Assessment on Performance, Potential,
Competencies and Values.

8.      
Two separate grading, one on performance factors
and other for competencies (including potential & Values).

9.      
Transparency through communication of the final
grading on performance to the executives.

10.  
Performance Management Committee (PMC)
consisting of HOD, reporting officer and Reviewing officer to decide the final
ratings of the executives.

11.  
System of “Forced Distribution” has
been dispensed with.

 

 

 

 

 

Sales Turn Over:

 

SAIL achieved sales turnover of `49,180 crore during the Financial Year
2016-17, which was higher by 14% over last year’s turnover of `43,294 crore.
The comparative performance of major financial parameters during the Financial
Years 2016-17 and 2015-16 is given below:

 

 

 

 

 

 

 

 

 

 

 

Manpower Vs Productivity:

 

 

 

Company achieved the Labor Productivity (LP) of 320
TCS/Man/Year in 2016-17. The manpower strength of the Company was 82,964 nos.
as on 31.3.2017 with manpower rationalization of 5,691 achieved during the
year. The enhanced productivity with rationalized manpower could be achieved as
a result of judicious recruitments, building competencies and infusing a sense
of commitment and passion among employees to go beyond and excel. To give
further thrust for enhancing productivity and manpower rationalization, your
Company has recently introduced Voluntary Retirement Scheme-2017 w.e.f. 15th
June, 2017.

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