COMPETENCY MANAGEMENT AND ITS EFFECTIVENESS

With Reference to Visakhapatnam Steel Plant Rashtriya Ispat Nigam Limited

SUBMITTED BY

K.SONIA MBA (H.R)

Y12BU20046 Under Guidance of

Mr. S. DANIEL ZECHARIAH

MANAGER (TRG) (Vizag Steel Plant)

DEPARTMENT OF COMMERCE AND BUSINESS ADMINISTRATION

ACHARYA NAGARJUNA UNIVERSITY NAGRJUNANAGAR, GUNTUR

Facilitated BY HRD Group Mr.O R M RAO, A.G.M (HRD), Mr. M L S VARMA, Dy.Mgr (H.R.D)

ACHARYA NAGARJUNA UNIVERSITY NAGARJUNA NAGAR-522510, A.P.

CERTIFICATE
This is to certify that K.SONIA, student of M.B.A in the Department of commerce and Business Administration of ACHARYA NAGARJUNA UNIVERSITY CAMPUS GUNTUR, during the period 2011-2013 has undergone this project work entitled COMPETENCY MANAGEMENT AND ITS EFFECTIVENESS at Visakhapatnam steel plant. The project has been carried out by him under my guidance in partial fulfillment for the award of the degree of Master of Business Administration.
PROJECT GUIDE

Prof. Noor Basha Abdul

M.com.,M.phil.,Ph.d.

DECLARATION

I hereby declare that entitled project work COMPETENCY MANAGEMENT AND ITS EFFECTIVENESS at Visakhapatnam steel plant, submitted by me to the ACHARAYA NAGARJUNA UNIVERSITY CAMPUS, GUNTUR in partial fulfillment for the award of degree of Master of Business Administration is entirely based on my own study and findings and is being submitted for the first time.

It has not been submitted or published earlier for the award of any degree or diploma of this university or any other university.

Place: Visakhapatnam Date: (K.SONIA)

ACKNOWLEDGEMENT

I take this opportunity to express my deepest and heart full gratitude to ACHARYA NAGARJUNA UNIVERSITY CAMPUS (GUNTUR) for providing me an opportunity to take of this project I also wish to thank our internal guide Prof. NOOR BASHA ABDUL, ACHARYA NAGARJUNA UNIVERSITY, GUNTUR for her valuable guidance, encouragement and co-operation throughout the completion of the project. This project is a result of the hard work & sincere effort put by many hands. I render my sincere thanks to Shri. O. Ram Mohan Rao, Assistant General Manager (HRD) Shri M. L. S. Varma , Deputy Manager (HRD) Visakhapatnam Steel Plant for giving me this opportunity to do my project work in Visakhapatnam steel plant. I express my sincere thanks to Shri S.DANIEL ZECHARIAH, Manager (Training) whose supervision, valuable guidance & help enabled me to complete this project work. I also wish to express my sincere thanks to all the staff members of VSP who have directly or indirectly lent me a helping hand in completing my project work.

(K.SONIA)
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COMPANY CERTIFICATE

This is to certify that the project entitled COMPETENCY MANAGEMENT AND ITS EFFECTIVENESS at VISAKHAPATNAM STEEL PLANT is a bonafied work done by K.SONIA under my guidance during the academic year 2011-2013 in partial fulfillment of the requirements for the award of the degree of Master of Business Administration in ACHARYA NAGARJUNA UNIVERSITY, GUNTUR. This work is not submitted to any university for the award of any degree / Diploma or prize.

S.DANIEL ZECHARIAH Manager (T&D) Visakhapatnam Steel Plant

CONTENTS
PAGE.NO Chapter 1: Theoretical Introduction------------------------------------- 7-17 Chapter 2: About the Organization -------------------------------18-31

Chapter 3: Competency Management at VSP------------------------32-43 Chapter 4: Data Tabulation & Analysis -------------------------------44-66 Chapter 5: Findings, suggestions & conclusion----------------------67-71
a) Findings

b) Suggestions c) Conclusions Bibliography ----------------------------------------------------------------------------72-73 Annexure Questionnaires ------------------------------------------------------------74-76

CHAPTER 1
Theoretical INTRODUCTION

INTRODUCTION
A lot is going on in recent times on the issue of competency mapping. A lot of resource is spent and consultants are invited to do competency mapping. Competency mapping is gaining much more importance and organizations are aware of having good human resources or putting the right people on right job. Every well managed firm should have well defined roles and list of competencies required to perform each role effectively. Such list should be used for recruitment, performance management, promotions, placements and training needs identification. In performing or carrying out work, it is essential that the required job skills first be articulated. This information not only helps to identify individuals who have the matching skills for doing the work but also the skills that will enhance the successful performance of the work. Yet often to perform well, it is not enough just to have these skills. It is also critical to complement the skills with the necessary knowledge and attitudes. For e.g. the necessary knowledge will enable an individual to apply the right skills for any work situation that will arise while having the right attitude will motivate him to give his best efforts. These skills, knowledge and attitudes required for the work are usually collectively referred as competencies.

What is Competency?
Competency is an underlying characteristic required to perform a given task, activity, or role can be considered as competency. Competency has the following forms: Knowledge Skills Attitude These three factors are important for identifying competency in a person. Different individual requires different competency for e.g. a person working in a manufacturing unit may require different competency than a person working in an IT sector. Competency difference from industry to industry. According to Harvard Business Review Daniel Katz grouped competency into three areas which later expanded in to the following four: Technical Managerial Human Conceptual

In competency mapping all details of the behaviors (observable, specific, measurable etc) to be shown by the person occupying that role are specified.

Competency Mapping: Competency mapping is the process of identification of the competencies required to perform successfully a given job or role or a set of tasks at a given point of time. It consists of breaking a given role or job into its constituent tasks or activities and identifying the competencies (technical, managerial, behavioral, conceptual knowledge, attitudes, skills, etc.) needed to perform the same successfully.

Identification and description of competencies that are most critical to success in a work situation or work role is an important aspect of competency mapping. In order to measure the competencies of individuals so as to ascertain the gaps in competencies, competency assessment is to be done which is an essential part of competency mapping. It is the assessment of the extent to which a given individual or a set of individuals possess these competencies required by a given role or set of roles or levels of roles. The methods to be used depend on the nature of the competencies.

Meaning of competency: Competency is an underlying Knowledge, Skill and Personal characteristics or motive demonstrated by various observable behaviors, those continue to outstanding performance on a job.
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To be more precise, the competencies are components of a job, which are reflected in behavior that are observable at workplace.

I.

SIGNIFICANCE OF COMPETENCIES:

One of the major objectives of every organization is to improve its performance year-by-year and set new standards and norms of performance. For every operation and machine there is a human being and it is the quality of the man behind the machine or the process, which determines the performance of the organization. In view of this, the performance of the organization depends not on the human asset but on the human asset having right match of competencies, is available with the employees, then it is their motivation, work environment and incentives, which help them to give their best performance.

II.

NEED FOR COMPETENCY MAPPING:

To achieve higher performance standards, the companies need to identify competencies required for a job and compare these competencies with the extent the employee possess. The differences of these two competencies determine the training needs. Based on the needs, competency building maps (competency mapping) or in other words personal training plans are developed by the superiors and required training is implemented systematically. III. NEED FOR MEASURING MANAGEMENT: THE EFFECTIVENESS OF COMPETENCY

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Measuring effectiveness or evaluation of competency management is the means used to determine the worth or value of the off the job and on the job training given to the employees at different levels of occupation. A comprehensive and effective evaluation plan is a critical component of any successful competency management or training system. It should be structured to generate information on the impact of training on the reactions, on the amount of learning that has taken place and trainees behavior on the job vis- a - vis its contribution to the job effectiveness. Since the organizations spend lot of money time and effort in bridging the competency gaps by training , they are naturally keen in evaluating their training system to find out weather it resulted not only in acquiring the desired competency levels by the employees and also its subsequent transfer to the job situation.

IV.

BRIEF PROFILE OF VISAKHAPATNAM STEEL PLANT

a) BRIEF HISTORY: The Visakhapatnam steel plant is a 3 Million ton. integrated steel plant under the corporate entity, Rashtriya Ispat Nigam Limited (RINL). Initially the project of 3.4Mt capacity was started as a part of SAIL and got separated as a new company, Rashtriya Ispat Nigam Ltd incorporated on 18th Feb 1982. The rationalized concept for a capacity of 3Mt was introduced midway with a view to reducing the project cost and adopting international levels of operation. This involved deletion of a steel melt shop and universal beam mill and updating of capacities of some units. The plant was finally commissioned and dedicated to the nation on Aug 1, 1982. b) PRINCIPAL PRODUCTS: The principal products include pig iron, steel products consisting of rounds, angles, beams, channels, reinforcement bars, wire rods, blooms, billets, squares
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and by-products like coal chemicals, ammonium sulphate and granulated slag. VSP products are used in construction industry, wire drawing industry, bright bar industry, fastener industry, fastener industry and forging and re-rolling industry. The end users of VSPs products also include electrode manufactures, railways, automobile industry, engineering industry, cable industry etc. While coal chemicals are used by chemical industries, ammonium sulphate is used in agriculture and granulated slag is used in cement industry.

V.

Vision, Mission, Objectives & Core values:

In the backdrop of the changing Global and Indian steel scenario, the growing competition in the industry and the healthy overall performance of the company in all the fronts. VSP revisited its vision, Mission, Objectives and Core values through a series of workshops on Envisioning the Future with the help of internal faculty. With the focus on sustained profitable growth of the organization and satisfaction to the stake holders, vision, Mission Objectives and Core values were formulated. a) Vision:

To be a continuously growing would class Company, we shall Harness our growth potential and sustain profitable growth. Deliver high quality and cost competitive products and be the first choice of customers. Create an inspiring work environment to unleash the creative energy of people. Achieve excellence in enterprise management. Be a respected corporate citizen, ensure clean and green environment and develop vibrant communities around us. b) Mission To attain 16 million ton liquid steel capacity though technological up-gradation, operational efficiency and expansion; augmentation of assured supply of raw
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material, to produce steel at international standards of cost &quality; and to meet the aspirations of stakeholders

c)

Core Values: Commitment Customer Satisfaction Continuous improvement Concern for environment Creativity & Innovation

d)

Objectives: Stabilize 6.3mtpa expansion by 2012-13 with the mission to expand further in subsequent phases as per corporate plan Revamping existing blast furnaces to make them energy efficient to contemporary levels and in the process increase their capacity by 1mtpa,thus total hot metal capacity to 7.5mtpa Be among top few lowest cost liquid steel producers in the world Achieve higher levels of customer satisfaction Vibrant work culture in the organization Be proactive in conserving environment, maintaining high levels of safety & addressing social concerns

VI.

Employee Profile:

RINL has a committed work force of 16,624 as on 31-12-2005. Out of these, 3548 are executives, 1105 are in supervisory cadre and 11971 are non-executives. In addition, there are about 7800 outsourced employees in many non-core activities in various key and support processes. VSP has rationalized the designations of non-executive employees. Their core competencies are developed as per the well laid down HRD policy and practices. VII. HRD policy
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We, at Visakhapatnam Steel Plant, are committed to create an organizational culture, which nurtures employees potential for the prosperity of the organization.

Identify competency development needs of the employees on a regular basis, provide the necessary training and continually evaluate and monitor the effectiveness of the training so that the quality of the training also gets upgraded. Provide inputs to the employees for developing their attitude towards work and for matching their competencies with the organizational requirements. Create an environment of learning and knowledge sharing by providing the means and facilities and also access to the relevant information and literature. Facilitate the employees for continuous development of their knowledge base, skills, efficiency, innovativeness, self-expression and behavior so that they contribute positively with commitment for the growth and prosperity of the organization while maintaining a high level of motivation and satisfaction. Prepare employees through appropriate development programmes for taking up higher responsibilities in the organization. Fulfill social obligations by providing training to the students of educational institutions and to the trainees of other organizations.

The above human resource development (HRD) policy re-inforces the commitment of RINL towards all round development of its employees. Thus, realizing the need of developing competencies among employees, VSP has created two separate departments. viz., the Training and Development Centre, where induction training, competency building by skill upgradation, unit training, computer related training, refresher training, faculty training, foreign training etc. are imparted and the HRD center, where competency building in the field of
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management development and attitudinal development are taken care of. Besides, training is also imparted by individual departments. Production, maintenance and services of works division impart on-the-job training. Materials Management, Marketing, Finance, Personnel, Medical, and Safety Departments also conduct training programmes related to their respective areas. VIII. RATIONALE BEHIND THE STUDY:

Realizing the importance of developing the competencies among the employees Training and Development centre has under taken competency management in a big way by identifying core competency needs of employees and imparting training through various training courses under different categories and covering about 18,000 employees annually. The following are the training categories which are administered for building competencies of employees.

Technological and refresher courses Safety and health related courses Skill development programmes in electrical mechanical and electronic areas Computer based training On the job training

In this context it is felt necessary to conduct a study on Competency Management System to through light on its strengths and weaknesses in training the employees to build core competencies and suggest improvements if any . IX. SCOPE OF STUDY:

The study would be confined to the examination of Competency Management model adopted at RINL Visakhapatnam steel plant

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 The approach and the process adopted to identify the competency requirements of the employees at operator and control level (Technicians to Manager level) Scheme adopted to evaluate are assess the competency mapping On the job training system and its effectiveness X. OBJECTIVE OF STUDY: The proposed study seeks to carry out the following objectives To present brief profile of RINL Visakhapatnam steel plant and its Competency Management model adopted for building core competencies of employees at operator and control level (Technicians to Manager level) To analyze the effectiveness of competency mapping and training programmes which address building of core competencies of employees To suggest measures for improving the system XI. RESEARCH METHODOLOGY: It is proposed to collect the secondary data from the records maintained by the training and development centre pertaining to competency mapping and training effectiveness of on the job training. Apart from the above it is proposed to collect primary data on the views and opinions of the beneficiaries through a separate questionnaire administered among the selected responded Discussions and deliberation will be held with senior executives in this area through an informal interview to find out their opinions Literature survey and other necessary information regarding techniques of competency management will be collected from VSP central library and IGNOU local study center.

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 The data which collected pertaining to the effectiveness of the system of study will be tabulated and subjected to appropriate statistical treatment so as to make a meaningful analysis and draw valid and objective conclusions.

XII.

EXPECTED CONTRIBUTION OF THE STUDY:

The study carried out with the above objectives is expected to:

Be useful in understanding the competency management system and its effectiveness

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Chapter-2
About the organization

19

Introduction:

Steel occupies the foremost place amongst the materials in use today and pervades all walks of life. All the key discoveries of the human genius for instance, steam engine, railway, means of communication and connection, automobile, aerospace and computers, are in one way or other, fastened together with steel and with its sagacious and multifarious application. Steel is a versatile material with multitude of useful properties making it indispensable of furthering and achieving continual growth of the economy be it construction, manufacturing, infrastructure or consumables. The level of steel consumption has long been regarded as an index of industrialization and economic maturity attained by a country. Keeping in view the importance of steel, the following integrated steel plants with foreign collaborations were set up in the public sector in the post-independence era:

Sl. No. 1. 2. 3. 4.

Steel Plant Durgapur Bhilai Steel Plant Bokaro Steel Plant Rourkel Steel Plant

Collaboration with Britain Erstwhile USSR Erstwhile USSR Germany

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Background:
To meet the growing domestic needs of steel, Govt. of India decided to set up an integrated steel plant at Visakhapatnam. An agreement was signed with erstwhile USSR in 1979 for cooperation in setting up 3.4 mT integrated steel plant at Visakhapatnam. The foundation stone for the plant was laid by the then Prime Minister on 20th January 1971. other integrated steel plants in India, Visakhapatnam Steel Plant (VSP) is one of the most modern steel plants in the country. The 4th The project was estimated to cost Rs. 8397.28 Cr. based on prices as on quarter of 1981. However, on completion of

construction and commissioning of the whole plant in 1992, the cost escalated to around Rs. 8,500 Cr. Unlike plant was dedicated to the nation on 1st August 1992 by the then Prime Minister, Shri P.V. Narasimha Rao. New technology, large-scale computerization and automation etc., are incorporated in the plant. To operate the plant at international levels and attain such labor productivity, the organizational manpower has been rationalized. The plant has a capacity of producing 3.0 m T. of liquid steel and 2.656 m T. saleable steel.

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Main products of VSP:

Steel products Angles Billets Channels Beams Squares

By-products Nut Coke Coke Dust Coal Tar Anthracene Oil HP Naphthalene Granulated Slag Lime Fines Ammonium Sulphate

Flats Rounds Re-bars Wire Rods

Benzene Toluene Zylene Wash Oil

Advent of Center for Business Systems (CBS) & Corporate Strategic Management (CSM):

The CBS was formulated to cater to the strategic needs of Vizag Steel. The focus of CBS is to study world-class initiatives and develop suitable framework for their adoption and implementation on an organization-wide basis at VSP. CBS was inaugurated on 18th December 2003. On this occasion, a booklet on Strategies to achieve the Vision, Mission & Objectives of Vizag Steel was
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released. VSPs Knowledge Management Portal Gnana was launched on 26th July 2004, basically to capture and share unique experience in day to day operations CBS has four teams to assist other departments in implementation of the initiatives identified and thus guide VSP to achieve its cherished vision of becoming a world-class integrated steel plant. The four teams are:

1. Corporate Management. 2. Technology & Automation. 3. Marketing Research. 4. Intellectual Capital Development.

The above teams initiate activities pertaining to implementation of various aspects of the Business Excellence Model, alignment and integration of organizational activities through Process Management, research on the latest technological developments in the steel industry for suitable adoption and benchmarking, initiatives leading to improved customer satisfaction, knowledge sharing initiatives like Knowledge Management etc.

The CBS has been merged with Corporate Planning Department and renamed as Corporate Strategic Management in order to suit the changing trends.

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VISION
To be a continuously growing world-class company, we shall, 1. Harness our growth potential and sustain profitable growth. 2. Deliver high quality and cost competitive products and be the first choic of customers. 3. Achieve excellence in enterprise manager

MISSION
To attain 10 million ton liquid steel capacity through technological upgradation, operational efficiency and explanation; to produce steel at international standards of cost and quality; and to meet the aspirations of the stakeholders.

OBJECTIVES:

1. Expand plant capacity to 5 million ton by 2007-08 with the mission to attain 10 million capacity in two subsequent phases. 2. Wipe out accumulated losses by 2006-07. 3. Be amongst top five lowest cost liquid steel producers in the world by 2006-07. 4. Achieve customer satisfaction levels on par with world class organizations by 2006-2007. 5. Make RINL the employer of choice by caring our employees.

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6. Develop people as knowledge workers by 2005-06 and achieve an improvement of 5 percentage points in employee satisfaction levels every alternate year.

CORE VALUES:

1. Commitment. 2. Customer Satisfaction. 3. Continuous Improvement. 4. Concern for Environment. 5. Creativity & Innovation.

VSP takes all necessary actions for the fulfillment of regulatory requirements. It has dedicated departments for this purpose. Energy conservation, environmental preservation, safety in work place, and occupational health gets highest priority in the company. Some of the policies in this regard are reproduced below. Quality, environment and Occupational Health & Safety policy: We, at Visakhapatnam Steel Plant, are committed to meet the needs and expectations of our customers and other interested parties, the occupational health and safety of our workforce and to preserve the environment. accomplish this, we will, To

1. Supply quality goods and services to customers delight.

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2. Document,

implement,

maintain

and

periodically

review

the

management systems including the policy, objectives and targets. 3. Use resources efficiently and reduce waste and prevent pollution.
4.

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

5. Continuously improve quality, environment, occupational health and safety performance with respect to products, activities, processes, premises and services. 6. Encourage development and involvement of employees. 7. Maintain high level of quality, environment, occupational health and safety consciousness amongst employees and contract worker by imparting education and training. HRD Group Key initiatives: 1. In-House Training Programs. 2. Nomination to External Training Programs. 3. Organization Development. 4. Membership with Professional Bodies. 5. Performance Appraisal for Executives. 6. Human Resource Information Systems. 7. In-Plant training for Management Students. 8. Lectures by eminent personalities. 9. Corporate Presentations.
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10.Interactions with professionals, academicians and consultants. 11.Knowledge Management. 12.Initiatives on Six Sigma Training & Development:

RINL believes that the employees are its assets and strives to realize their potential in full for mutual advantage. The human resource development involves development of the employee as a whole. The needs of induction, training, skill up gradation, unit training, computer related training, refresher training, foreign training, faculty development etc. are attended by the Training & Development Centre while management development and attitudinal development are taken care at the Centre for HRD.

Marketing network: The company markets its products through headquarter marketing office and a network of regional offices, branch offices and stockyards located at 24 centers all over the country. Consignment agents and consignment sales agents located at these centers provide the infrastructure and channels for sale of the products. The exports are carried out by the export wing of marketing division with the help of different agencies. The company is recognized as Star Trading House by the Director General of Foreign Trade, Ministry of Commerce, Govt. of India. The end users of the steel products manufactured at the plant include amongst others, construction industry, automobile industry, engineering industry, re27

rolling industry, forging industry, cable industry, wire drawing industry, fastener industry, electrode manufacturers and railways.

Human Resource Management:

Human resource initiatives at VSP are closely linked to the corporate strategy of the organization. VSP has harmonious industrial relations where the entire workforce works as a well-knit team for the progress of the company. The productive environment prevailing in the company fosters an atmosphere of growth-both for the employees and for the company. VSP has introduced multiskilling concept since inception and the employees are trained to imbibe this. VSP has adopted a system of overlapping shifts the first of its kind in the industry. This system ensures smooth change over of the shifts and

uninterrupted pace of operation of the plant during the shift change over. The labor productivity is currently 282 tonnes / man / year unparalleled in the public sector industry. Management of Industrial Relations: Presently, 20 registered Trade Unions are functioning at VSP. Out of these, 3 unions viz,. Visakha Steel Employees Congress (INTUC), Steel Plant Employees Union (CITU) and Visakha Steel Worker Union (AITUC) have the support of more than 90% of the total votes. There are 17 unions operation for espousing the cause of contract labor. In addition, two unions each are also separately

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registered at our captive mines located at Jaggayyapeta and Madharam. By and large, a smooth and cordial IR climate prevails at VSP.

The Mandays lost were brought to NIL since 2003 which indicates the peaceful and harmonious industrial relations scenario in Visakhapatnam Steel Plant. Till date around 70 nos. of Memorandum of Understanding (MOU), Memorandum of Settlement (MOS) was arrived at by duly following proper collective bargaining process. Welfare amenities: Welfare has been given the utmost emphasis in the overall policy of Human Resource Management of the Company. Pursuant to this policy, VSP has taken several initiatives for introducing and implementing Non-Statutory Welfare Schemes which impart and propagate the feeling that the Company cares for its employees.

Some of the Non-Statutory Welfare and Social Security Schemes for the benefits of the employees and their family members are detailed below:

1. Housing facilities. 2. Educational facilities. 3. Medical facilities. 4. Facilities for recreation.

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Social security measures:

Some of the social security measures being implemented in VSP are, 1. Employees family benefit scheme. 2. RINL Employees superannuation Benefit Fund. 3. Group Saving Linked Insurance Scheme. 4. Group Personal Accident Insurance Scheme. 5. Contribution from Incentive Earnings. 6. Traveling / Transport Expenses.
7.

Mediclaim Insurance policy for Retired Employees.

Corporate social responsibility: A comprehensive Corporate Social Responsibility Policy has also been evolved for addressing the societal issues in a structural manner. RINL is a responsible corporate citizen and taking up community development program and also a member of global compact forum. Achievements & Awards: The efforts of VSP have been recognized in various fora. Some of the major awards received y VSP are in the area of energy conservation, environment protection, safety, quality, Quality Circles, Rajbhasha, MOU, sports related

awards and a number of awards at the individual level.

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Some of the important awards received by VSP are: 1. ISO 9002 for SMS and all downstream units a unique distinction in the Indian Steel Industry. 2. Indira Priyadarshini Vriksha Mitra Award - 1992-93. 3. Nehru Memorial National Award for Pollution Control - 1992-93 & 199394. 4. EEPC Export Excellence Award - 1994-95. 5. CII (Southern Region) Energy Conservation Award 1995-96. 6. Golden peacock (1st prize) National Quality Award 96 IIM in the National Quality Competition 1996. 7. Selected for World Quality Commitment Award 1997 of J*BAN, Spain. 8. Gold Star Award for Excellent performance in productivity. 9. Udyog Excellence Gold Medal Award for excellence in Steel Industry. 10.Excellence Award for outstanding performance in Productivivity management, Quality & Innovation. 11.ISPAT Suraksha Puraskar (1st Prize) for Longest Accident Free Period 1991-94. 12.Best Labor Management Award from the Govt. of AP. 13.SCOPE Award for Best Turnaround 2001. 14.Environment Excellence Award from Greentech Foundation for energy conservation 2002. 15.Best Enterprise Award from SCOPE, WIPS 2001-02

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RINL has been bestowed with several national accolades in the year 2005-06 significant among them being:

1. National Energy Conservation Award for the 6th time in succession. 2. National Award for Excellence in Water Management. 3. ICWAI Award for excellence in Cost Management. 4. Viswakharma Rashtriya Puraskar Awards (6 out of 32 at national level). 5. FAPCCI Best Industrial Productivity Award. 6. INSSAN National Award for Organizational Excellence. 7. Best CEO Award.

The above awards are beside a number of awards at the local, regional & national level competitions in the area of Quality Circles, Suggestion Schemes etc. Hallmark of Vizag steel as an organization:

Today, VSP is moving forward with aura of confidence and with pride amongst its employees who are determined to give their best for the company to enable it to reach new heights in organizational excellence. At the same time, no single advantage accruing form a knowledge society is found wanting by the neighborhood community with the growth & development of a phenomenon called VIZAG STEEL existing so close to its proximity. Futuristic enterprises, academic activity, planned & progressive residential localities are but few of the plentiful ripple effects of this transformation and each one of us take immense pride to uphold the philosophy of mutual ( i.e., individual and societal ) progress.
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Chapter-3
Competency management

At
Visakhapatnam steel plant

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Introduction: One of the major objectives of every company is to improve its performance year by year and set new standards and norms of performance. For every operation and machine there is a human being and it is the quality of the man behind the machine or the process, which determines the performance of the company. Competency mapping can also be done for contract or free lance workers, or for those seeking employment to emphasize the specific skills which would make them valuable to a potential employer. These kinds of skills can be determined, when one is ready to do the work. To achieve higher performance standards, the companies need to identify competencies required for a job and compare these competencies with the extent the employee possess. The differences of these two competencies determine the training needs. Based on the needs, competency building maps (competency mapping) or in the other words personal training plans are developed by the superiors and the required training is implemented systematically. Competency Mapping: Competency mapping is the process of identification of the competencies required to perform successfully a given job or role or a set of tasks at a given point of time. It consists of breaking a given role or job into its constituent tasks or activities and identifying the competencies (technical, managerial, behavioral, conceptual knowledge, attitudes, skills, etc.) needed to perform the same successfully.
34

Identification and description of competencies that are most critical to success in a work situation or work role is an important aspect of competency mapping. In order to measure the competencies of individuals so as to ascertain the gaps in competencies, competency assessment is to be done which is an essential part of competency mapping. It is the assessment of the extent to which a given individual or a set of individuals possess these competencies required by a given role or set of roles or levels of roles. The methods to be used depend on the nature of the competencies.

Meaning of competency: Competency is an underlying Knowledge, Skill and Personal characteristics or motive demonstrated by various observable behaviors, those continue to outstanding performance on a job. To be more precise, the competencies are components of a job, which are reflected in behavior that are observable at workplace. The competencies that exist at different levels of personality are: 1. Observable (easily assessable)

level:
a. Knowledge: Information that an individual has in a particular area. b. Skill:

Individuals ability to perform a certain physical or mental task

(analyzes and decision).gives

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c. Behavior: Action of a person in a given situation.

2. Non Observable (difficult to assess):

a.

Traits: Psychological characteristics and consistent responses shown towards a situation or information.

b.

Motives: The things a person consistently thinks about or wants and, which causes action. Motives drive or direct behavior towards a select or certain action goals.

c.

Self-concept: Person attitudes values or self image.

Knowledge and skill competencies are relatively easy to develop; training is the most effective way to secure this abilities. However core motives and traits are more difficult to assess and develop.

The essence of competency based HR is to define the behaviors that create exemplary employees through a competency model. HR professionals can create competency models through which they can promote those employees who have competencies, hire those who have competencies and train those who dont have required competencies.

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Competency Mapping process includes the following: 1. Identifying the skill, knowledge and qualification required for all the key job positions / areas of activity 2. Assessment of the level of competence for each identified employee for a particular job / area of activity with continuous interaction with the line managers 3. Documenting the present level of competence and prioritizing the training needs 4. Providing the employees with adequate training in the weak areas

Objectives of Competency Mapping: 1. To create a competency based system and culture in the organization. 2. To identify and built competencies of individuals for making them more efficient and effective at their jobs. 3. To ensure that right people are identified and placed in the right jobs. 4. To ensure that employee potential is identified, developed and utilized to the fullest extent.
5.

Help uplift the competencies of key manages by providing them insights into their competencies and developmental opportunities.

Benefits of Competency Mapping: 1. Enhancing the capabilities of the individuals.

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2. Flexibility to deploy people in different jobs. 3. Identification of persons who can work in different areas of the department. 4. Systematically identifying the potential of the qualified employees and provide them with opportunities for their development and growth.
5.

It provides the scope of multi-skilling to the employees through job enrichment and takes away the monotony of doing the same job.

Factors to be considered:

Before carrying out Competency Mapping the following factors are to be considered and addressed: 1. Fear and Anxiety: Employees may perceive a threat of being segregated as unfit. It is important to take the people into confidence before undertaking this exercise. Any bias during assessment process is detrimental to the purpose of the exercise. 2. Lack of objectivity and clarity of purpose: Focus of facilitators and key personnel involved in the exercise should be clear at all stages. There is some element of subjectivity in competency mapping; hence it needs to be done objectively and with utmost sincerity.

3. Resistance from Employees: General view of rejection may be there for this initiative. Change creates uneasiness and is viewed skeptically.
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4. Lack of suitable Training Modules: Those gaps may not be brought out for which organization is not able to find the training module. Training modules are to be designed to suit the actual requirement of the employees. External training providers may be located.

5. Difficulty in getting people for training: Due to work exigencies, managers may prevent release of employees for training. It is to be ensured that the employees are released for training.

Process and approach at VSP:

The competencies required for a job are identified by a team in the department, who has core knowledge and experience in relevant areas.

The competencies are classified into four different areas behavioral, technical, emotional and conceptual competencies

Developing the Competencies:

In order to identify, develop and sustain the knowledge and competencies (both Technical & Behavioral) of the employees in a systematic way, two separate buildings namely, Training and Development Centre (T & DC) and Centre for HRD are dedicated for the purpose.

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While the T & DC caters to the needs for Technical Development Programs like induction training, skill up gradation, unit training, computer related training etc., Centre for HRD takes care of the Management Development Programs (MDP) and Attitudinal Development Programs (ADP) like communicational skills, interpersonal relations, team working etc. The MDPs are conducted for various levels of managers to nurture their managerial skills and prepare them to shoulder greater responsibility. Training in certain specialized areas like safety, fire prevention, occupational health etc., is also taken up by department specializing in respective fields. Both T & DC and Centre for HRD are well established departments with proper facilities for training, latest technology and its facets comprise manifold functions.

Facets of T & DC:

1. Knowledge dissemination: It comprises of library and information service, books, periodicals, articles, abstracts, ***** and codes. 2. Continuous improvement: It comprises of feedbacks, audits, corrective actions, proactive actions, surveys, suggestions, and quality circles. 3. Training need identification: It comprises of competence assessment, identification of programs, matching individual needs and organizations initiative. 4. Design of program: It comprises of title, objectives, course contents, eligibility and methodology.
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5. Provision of training: It comprises of venue, faculty, catering, audio / video aids and other such hands on utilities. 6. Fresher training: It comprises of induction, orientation, plant general training, departmental training, onthejob training and tests. 7. On-the-Job training: It comprises of SOP, SMP, unit training, competency checklist and follow up. 8. Foreign training: It comprises of supplier training, bench marking, post training presentations and training reports. 9. Refresher training: It comprises of critical equipment training,

departmental refresher, technical refresher. 10.Awareness training: It comprises of ISO 9001, ISO 14001, OHSAS 18001, computer, waste management, TQM and cost. 11.Faculty training: It comprises of learning principles, session planning, presentation techniques and self assessment through videos. 12.Evaluation of training: It comprises of reaction level, learning level, post training, and results. 13.Monitoring and review of training: It comprises of weekly review, quarterly review, monthly review and management review. 14.Records of training: It comprises of employees training records, training calendar and training evaluation. 15.Rewards for training: It comprises of rewards for best training departments and best unit training departments.

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Three types of training are given to the employees: 1. On-the-Job training (Unit training). 2. Off-the-Job training (Classroom training). 3. External training.

Off-the-Job training: The Off-the-Job training is also called as Classroom training. The Off-the-Job training programs are those programs that are scheduled in the Training Calendar. These programs are conducted at T & DC.

These programs can be categorized into as follows: 1. Technological and Refresher courses

2. Safety and Health related Train 3. Skill development programs

On-the-Job Trainers Programs:

There are also exclusive On-the-Job Trainers Programs specifically meant for Executives / JO / Charge man who are responsible for On-the-Job
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External Training: RINL also provides learning opportunities to individual by nominating them to external training programs for enhancing their knowledge. Employees are sponsored for external training programs including seminars and competitions organized by various professional bodies and institutes like CII, ASSOCHAM, INSDAG, AIMA, NIPM, LPAI, ISTD, ICWAI, CSI, SCOPE, QCFI, ASCI, ESCI, XRLI, MDI, BVQI, WIPS, IIMs, CBI Academy, NPC etc.

Employees are also sent to other steel plants on short duration tours to find solutions to the various issues facing the company.

Employees are also sent to suppliers manufacturing units / training institutes to get specific training in identified areas.

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Establish job knowledge & skill requirement

Establish jobholders knowledge, skill and compare with job requirement

Identify the gaps / shortfalls and arrive at personal training needs

Design most effective method of training

Implement the training plan

Assess the effectiveness of the training

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Chapter-4
Data tabulate & analysis

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POPULATION OF THE STUDY: The participants who have attended Developmental training program are the population of this study. SAMPLE SELECTION: A sample of 10% employees was selected out of a population of 1700 employees belonging to technical departments on the basis of stratified sample random sampling method. Total sample was divided into various sections. From each section the sample was selected taken into consideration the managerial and non-managerial cadre on a simple random basis there by satisfying the necessity to represent each section. (Stratification and proportionate of the sample) METHOD OF DATA COLLECTION: The data was collected from Training & Development centre. Apart form this, the views and opinions of the beneficiaries were also be elicited through a separate questionnaire, discussion. Secondary information is sought to be collected by listing the VSP central library and IIAM local study centre. The data thus collected is tabulated. So as to make a meaningful analysis and draw valid and objective.

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Types of Competencies:

Technical Competencies: I. Knowledge II. Job Performance Skills

Behavioral Competencies: III. Leadership IV. Team Working V. Communication Skills VI. Personal Qualities VII. The roman numbers I & II represent the Technical Competencies, whereas III, IV, V & VI represent the Behavioral Competencies. Under this Technical & Behavioral Competencies, a list of competencies is given. Kindly refer the +format attached.

PREPARATION OF QUESTIONNAIRE: The data has been collected with the help of questionnaire consisting of 20 items.

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TABLE -1 Response of Employees to if there is high competition for talented people in marketing place? Response YES NO DOUBTFUL TOTAL No. of Respondents 40 5 5 50 % of Respondents 80 10 10 100

INTERPRETATION: The above observation indicate that 80% of the employees agree that there is high competition for talented people in market place. Some neither accept nor reject. Here 10% of employees do not accept and remaining 10% are doubtful in decision making.
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TABLE -2

Response of employees whether there are any setbacks in the recent past due to lack of competent people?

Responses YES NO DOUBTFUL TOTAL

No. Of Respondents 10 25 15 50

% of Respondents 20 50 30 100

INTERPRETATION: The above observation indicates that 50% of the employees does not accept that there are any setbacks in recent past due to lack of competent people. 10% of them accepted that there are setbacks. Remaining 30% of employees stand neutral.
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TABLE -3 Response of employees whether the organization have missed any business opportunities due to lack of competent people. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 5 30 15 50 % of Respondents 10 60 30 100

INTERPRETATION: The above observation indicate that 60% of employees does not accept that the organization have not missed any business opportunities due to lack of competent people. 10% accept that the organization have not missed any business opportunities due to lack of competent people. Remaining employees stand neutral.
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TABLE -4 Responses of employees towards whether the top management believe that competencies can be developed through continuous effort and interventions. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 40 5 5 50 % of Respondents 80 10 10 100

INTERPRETATION: The above observation indicates that 80% of employees accept that top management believes that competencies can be developed through continuous effort and interventions.10% employees disagree with this. Remaining stand neutral.

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TABLE -5 Response of employees whether the top management willing to invest time and effort in building competencies of your employees on a continuous basis. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 50 0 0 50 % of Respondents 100 0 0 100

INTERPRETETION: The above observation indicates that all the employees accept that the top management willing to invest time and effort in building competencies of your employees on a continuous basis.

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TABLE -6 Response of employees whether they believe the top management is building a competency-based organization. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 40 5 5 50 % of Respondents 80 10 10 100

INTERPRETATION: The above observation indicates that the 80% of employees aceept that the top management is building a competency-based organization.10% disagree with the sentence and remaining 10% stand neutral.

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TABLE -7 Responses of employees on whether the recruitment of people on the basis of competencies needed to perform each job. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 25 10 15 50 % of Respondents 50 20 30 100

INTREPRETETION: The above observation indicates that 50% of the employees accept that the recruitment of people on the basis of competencies is needed to perform each job. 20% of the employees disagree with the statement and 30% cannot comment on this statement.
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TABLE -8 Response of employees on whether they have a competency based training Responses YES NO DOUBTFUL TOTAL . No. Of Respondents 0 45 5 50 % of Respondents 0 90 10 100

INTERPRETATION: The above observation indicates that the 90% of employees do not have competency based taining.10% are doubtful and no employee have competency Based training.

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TABLE -9 Responses of employees on whether they intend to coach employees for future careers in the organization. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 40 10 0 50 % of Respondents 80 20 0 100

INTERPRETATION: The above observation indicates the 80% of employees intend to coach future employees in the organization itself, while 20% say no to this statement.

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TABLE -10 Response of employees on whether they have well laid out career paths. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 40 5 5 50 % of Respondents 80 10 10 100

INTERPRETATION: The above observation indicates that 80% of employees have well laid out career paths. 10% of employees do not have well laid out career, while 10% of the employees cannot turn on any of the ways.
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TABLE -11 Responses of employees on whether their top management believes that success of the organization depends on having competent managers. Responses YES NO DOUBTFULL TOTAL No. Of Respondents 30 5 15 50 % of Respondents 60 10 30 100

INTERPRETATION: The above table indicates that 60% of employees accept that their top management believes that success of the organization depends on having competent managers.10% of employees do not agree with the sentence and 30% are unable to answer the question.

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TABLE -12 Responses of on whether the employees suffered draw backs, profit, production, marketing, customer etc.losses, shares, market down trends etc due to turn over or people at the top. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 10 15 25 50 % of Respondents 20 30 50 100

INTERPRETATION: The above table indicates 20% of employees accept that the they suffered draw backs, profit, production, marketing, customer etc.losses, shares, market down trends etc due to turn over or people at the top.30% of employees do not accept with that statement and 50% cannot judge .

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TABLE -13 Responses on whether the employees training based on scientific, systematic, identification of competency gaps and needs. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 15 15 20 50 % of Respondents 30 30 40 100

INTERPRETATION: The above data indicates that 30% of them accept the employees training based on scientific, systematic, identification of competency gaps and needs.30% of them do not accept that the .Employees training based on scientific, systematic, identification of competency gaps and needs. 40% cannot judge any way.
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TABLE -14 Responses on whether their performance appraisal have a measure of competencies separately for each individual level or function or group of jobs. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 35 10 05 50 % of Respondents 70 20 10 100

INTERPRETATION: The above data indicates that 70% of employees accept that their performance appraisal have a measure of competencies separately for each individual level or function or group of jobs.20% do not accept the statement, while 10% of them remain neutral.
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TABLE -15 Responses of employees on whether the team work in their organization is of higher order. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 25 20 05 50 % of Respondents 50 40 10 100

INTERPRATION: The above table indicates 50% of employees accept that the team work in their organization is of higher order.40% of employees do not agree team work in their organization is of higher order.10% remain neutral.

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TABLE -16 Responses of employees on whether the top level managers capable of performing their integrating roles. Responses YES NO DOUBTFUL TOTAL No. Of Respondents 40 5 5 50 % of Respondents 80 10 10 100

INTERPRETATION: The above data indicates that 80% of employees accept the level managers capable of performing their integrating roles. 10% do not agree, while 10% are doubtful with this statement.

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Table -17 Responses of employees on if their organization value talent and excellence. Responses YES NO DOUBTFULL TOTAL No. Of Respondents 30 10 10 50 % of Respondents 60 20 20 100

I NTERPRETATION: The above data indicates that 60% of employees agree that organization value talent and excellence.20% of employees do not agree that the organization value talent and excellence. Remaining are doubtful about it.
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TABLE -18 Responses of employees on whether their organization is good in execution of projects. Responses YES NO DOUBTFULL TOTAL No. Of Respondents 25 15 10 50 % of Respondents 50 30 20 100

INTERPRETATION: The above data indicates that 50% of employees accept that organization is good in execution of projects.30% of them oppose this and 20% stand neutral.

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TABLE -19 Responses of employees on whether the organization have a culture of using task forces and work groups for various tasks. Responses YES NO DOUBTFULL TOTAL No. Of Respondents 25 10 15 50 % of Respondents 50 20 30 100

INTREPRATION: The above data indicates that 50% of employees agree that the organization have a culture of using task forces and work groups for various tasks.20% of employees reject this statement.30% are doubtful about this.

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TABLE -20 Responses of employees on whether the organization encourage innovations and scientific ways of doing things. Responses YES NO DOUBTFULL TOTAL No. Of Respondents 20 10 20 50 % of Respondents 40 20 40 100

INTERPRETATION: The above data indicates that 40% of employees agree that organization encourage innovations and scientific ways of doing things.20% of employees do not agree that organization encourage innovations and scientific ways of doing things.40% of employees are doubtful about the statement.

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Chapter-5
Findings, Suggestions &conclusion

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Findings:

80% of the employees agree that there is high competition for talented people in market place.

10% of the employees accept that there are any setbacks in recent past due to lack of competent people.

10% of the employees accept that the organization have not missed any business opportunities due to lack of competent people.

80% of the employees accept that top management believes that competencies can be developed through continuous effort and interventions.

100% of the employees accept that the top management willing to invest time and effort in building competencies of your employees on a continuous basis. 80% of employees accept that the top management is building a competency-based organization. 50% of the employees accept that the recruitment of people on the basis of competencies is needed to perform each job. 0% of the employees do not have competency based training. 80% of the employees intend to coach future employees in the organization itself. 80% of the employees have well laid out career paths.

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 60% of the employees accept that their top management believes that success of the organization depends on having competent managers. 20% of the employees accept that the they suffered draw backs, profit, production, marketing, customer etc.losses, shares, market down trends etc due to turn over or people at the top. 30% of the employees accept the employees training based on scientific, systematic, identification of competency gaps and needs. 70% of the employees accept that their performance appraisal have a measure of competencies separately for each individual level or function or group of jobs. 50% of the employees accept that the team work in their organization is of higher order. 80% of the employees accept the level managers capable of performing their integrating roles. 60% of the employees agree that their organization value talent and excellence. 50% of the employees accept that organization is good in execution of projects. 50% of the employees agree that the organization have a culture of using task forces and work groups for various task. 40% of the employees agree that organization encourage innovations and scientific ways of doing things.
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Suggestions:
Though majority of the employees are satisfied with the facilities provided by the management, some of them are not much satisfied. The company should o provide the competency based coaching scheme. o prepare their employees for taking training responsibilities by providing some monetary benefits. o train their employees for getting targeted output o make employees aware about the importance of TPM activities and ensure participation of its employees o provide more technical related knowledge at the time of initial training o ensure good relations among the employees and sectional head to increase coordination among them o provide promotion, monetary and non monitory benefits to the employees who exceed the company requirements.

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Conclusion:
The objective of the organization is to enable all its employees to make their maximum contribution towards achieving business objectives. For this purpose, the Competency Management system is getting established and the application of this system is giving results and effectively contributing in the continual improvement of the performance of the organization as well as the employees. The entire Competency Management process for all departments of training and development centre. It took around 8 weeks to complete. Imagine the amount of investment in terms of time and money would it take to continue the process for all the employees, i.e. around 16,700 employees covering all the departments. This process is not a one-time process but a continuous process to enhance the performance of the employees. Use of this system has definitely created a visible difference in the performance of the employees. It has given multiple benefits to the organization. It has helped in building the core competencies required by the employees, organizing systematic training, sustain

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BIBLOGRAphy

73

BIBLIOGRAPHY

JOHN BERNARDIN, JOHN PRIO, RAO TV, SILVERA DM, BRITISH STEEL DR (MRS.) PREMILAVERMA

HUMAN RESOURCE MANAGEMENT, EXPERIMENTAL APPROACH TRAINING & DEVELOPMENT HANDBOOK RECENT EXPERIENCES IN HUMAN RESOURCE MANAGEMENT

AN

HUMAN RESOURCE DEVELOPMENT: THE INDIAN EXPERIENCE PROFESSIONAL ENGINEERING TRAINING HANDBOOK DIPLOMA IN TRAINING AND DEVELOPMENT, COURSE COMMUNICATION

ILO, GENEVA,

EVALUATION OF TRAINING, TEACHING & TRAINING METHODS FOR MANAGEMENT DEVELOPMENT COURSE MATERIAL FOR SYSTEMATIC APPROACH TO TRAINING EVERY ONES PROBLEM SOLVING HANDBOOK CASE ON MEASURING TRAINING EFFECTIVENESS

MTI, SAIL, RANCHI,

JOURNALS: INHOUSE JOURNALS OF VIZAG STEEL PLANT:

INDIAN JOURNAL OF TRAINING & DEVELOPMENT, APR-JUNE 95

VIKAS DHARA

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Questionnaire

1. Are you in a business where there is high competition for talented people in

marketplace?
2. Has your organization experienced any setbacks in the recent past due to

lack of competent people?

3. Has your organization missed any business opportunities in the recent past

due to lack of competent people to handle any one or more functions or territories or lines of business etc?
4. Does your top management believe that competencies can be developed

through continuous effort and interventions?

5. Is your top management willing to invest time and effort in building

competencies of your employees on a continuous basis?

6. Does your top management believe in building a competency - based

organization?

7. Do you (intend to), recruit people on the basis of competencies needed to

perform each job?

8. Do you already have a competency based coaching scheme?

9. Do you intend to coach employees for future careers in your own

organization?

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10. Do you have well laid out career paths (or intend to improve existing)? 11. Does your top management believe that the success of your organization

depends on having competent managers?

12. Have you suffered any draw backs, profit, production, marketing, customer

etc. losses, share market down turns etc. due to turn over or people at the top?
13. Is your training based on scientific, or at least systematic, identification of

competency gaps and competency needs?

14. Does your performance appraisal have a measure of competencies

separately for each individual level or function or group of jobs (top, middle, R&D etc.)?
15. Is the teamwork in your organization of high order? 16. Are the top-level managers capable of performing their integrating roles

well?
17. Does your organization value talent and excellence? 18. Is your organization good in execution of projects? 19. Does your organization have a culture of using task forces and work groups

for various exercises/tasks?

20. Does your organization encourage innovations and scientific ways of doing

things?

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