Steel Authority ofIndia Limited Steel Authority of India Limited (SAIL), one of thelargest state-owned steel making company, is among the seven Maharatna companiesof the Public Sector Enterprises.
It has five integrated plants and threespecial steel plants, located in the eastern and central regions of India. Following are the highlights of SAIL: SAIL has wonGold Trophy of “SCOPE MeritoriousAward for Best Practices in Human Resource Management” for the year2014-15 & “Golden Peacock Award”for Corporate Governance, by the Institute of Directors, India, for the year2016. Key Facts & Figure -ü Founded as Hindustan SteelLimited on January 19, 1954ü SAIL producesiron and steel at five integrated plants and three special steel plants,located principally in the eastern and central regions of India and situatedclose to domestic sources of raw materials. SAIL manufactures and sells a broadrange of steel products.
ü The Governmentof India owns about 75% of SAIL’s equity and retains voting control of theCompany. However, SAIL, by virtue of its ‘Maharatna’ status, enjoys significantoperational and financial autonomy.ü Revenue of INR503 billionü Net Income ofINR 449.8802 billion Performance Appraisal System -There are twotypes ofperformance appraisal which are done on the basis of designation ofthe employee. Theyare: 1.
Executive performance appraisal system 2. Non-executive performance appraisal systemEXECUTIVE PERFORMANCE APPRAISALSYSTEMThissystem is for performance appraisal for executives of the level E-0 to E-4. Thevarious steps involved are:A) Self-appraisal Performance Review . Appraisee gives his input regarding his actual achievement againstthe 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 alsomentioned.B) Performance Review Discussiona. This is done in consensus of the appraisee and the reportingofficer.b.
Strengths, weaknesses and areas for development are analyzed.C) Performance Assessmenta. Rating ranging between 1 to 5 are given to the appraisee bythe Reporting Officer and Reviewing Officer individually on the basis ofPerformance Factors and Potential Factors. Performance Factors: Quantity ofoutput, Quality of output, Cost control, Job Knowledge and Skill, Team spiritand Lateral, Coordination, Discipline, Development & Quality of assessingsubordinates and special relevant factor. Potential Factors: Communication,Initiative, Commitment and sense of Responsibility, Problem Analysisand Decision making, Planning and Organizing and Management of Human resourcesb. 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 bothReporting and Reviewing Officers individually.D) Suggestionsfor Job Rotation and Job Enrichmenta. Comments from both reporting and reviewing officers aboutthe performance of the appraisee and deciding his fate in the currentdepartment is considered.
b. Sometimes, the Head of the department also contributes in givinghis valuable comments on the overall performance & potential of theemployee.E) Final Assessmenta. Total Factor Score by both reporting and reviewing officers iswritten 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 topromote the appraisee.d. If not to promote give reasons.e. Meeting with non-promotable appraisee.
Non-executive Performance AppraisalSystem Performance Appraisal of the non-executive employees is asimpler process with the reporting and reviewing officer giving their commentson the basis of job performance; job knowledge and skill; conduct and behavior;cost and quality consciousness and initiative. Weight age is given to variousfactors. Grades of O/A/B/C are given.
In case of C grade, the employee isinterviewed by the head of department. Salient Features of the New EPMs -1. Online Performance Management System. 2. Goal Alignment cascade workshops for PerformancePlanning which would include setting of departmental goals & therebyfinalizing the individual KPAs.3.
Direct correlation of performance assessmentwith Key Performance Areas. 4. KPAs would be quantifiable and weighted withclear cut evaluation criteria.5. Online performance diary available for allexecutives with 24 X 7 access.
6. Independent assessment by reporting officer and reviewingofficers. 7. Assessment on Performance, Potential,Competencies and Values.
8. Two separate grading, one on performance factorsand other for competencies (including potential & Values).9.
Transparency through communication of the finalgrading on performance to the executives. 10. Performance Management Committee (PMC)consisting of HOD, reporting officer and Reviewing officer to decide the finalratings of the executives. 11. System of “Forced Distribution” hasbeen dispensed with. Sales Turn Over: SAIL achieved sales turnover of `49,180 crore during the Financial Year2016-17, which was higher by 14% over last year’s turnover of `43,294 crore.
The comparative performance of major financial parameters during the FinancialYears 2016-17 and 2015-16 is given below: Manpower Vs Productivity: Company achieved the Labor Productivity (LP) of 320TCS/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 theyear.
The enhanced productivity with rationalized manpower could be achieved asa result of judicious recruitments, building competencies and infusing a senseof commitment and passion among employees to go beyond and excel. To givefurther thrust for enhancing productivity and manpower rationalization, yourCompany has recently introduced Voluntary Retirement Scheme-2017 w.e.f.