Steel Workers in India

By Dr. M. Dhanalakshmi Mohansundaram

Steel Workers in India discusses the factors that determine organizational climate and employee job satisfaction in the Salem Steel Plant. In this study, job satisfaction is delineated by twelve distinct dimensions, namely human resources policies and welfare measures, work stress, employee promotion, communication, pay and operations circumstances, nature of work, rewards system, safety measures, appraisal systems. Organizational climate is approach in four dimensions: humanistic climate, autonomous climate, flexible climate, and job dimension climate. These associations are framed into a central hypothesis suggesting that there is a strong correlation between organizational climate and job satisfaction. Organizational climate and job satisfaction reinforce each other, for the common ground connecting those concepts is employee perception. Hence the organizational climate and employee job satisfaction are essential reciprocal components for a workplace’s overall performance.

• Language: English
• Publisher: Academica Press
• Release date: Mar 15, 2024
• ISBN: 9781680533507

Book preview

CHAPTER 1

OVERVIEW OF THE RESEARCH

1.1BACKGROUND TO AND RATIONALE FOR THE RESEARCH

Organizations the world over irrespective of their structure and size, face more challenges in the current economic scenario than ever. The rapid changes and challenges in the business environment have their specific impact on organizational climate and employee job satisfaction (Nair, 2006). Accordingly it calls for changes in the behavior and perception of the individual employee as well as structural and managerial changes in the organization, which would lead ultimately to enhancement of employee motivation, job satisfaction and organizational effectiveness. In the absence of such change management, it would increase employee turnover and absenteeism and thus turn down the organizational performance (Gray: 2007). The organization constantly needs to fine-tune the overall performance in order to survive and beat the competitors. To sustain the performance, an organization has to create and maintain better organizational climate, which plays vital role to ensure that individual employees continue and add value to their bottom line by pouring their effort in to their job to promote the organization (Brown & Leigh, 1996).

The concept of climate is evolved from organizational theories (Ahmed, 1998). While Kurt Lewin and Douglas McGregor referred as social climate and organizational climate respectively. The climate of the organization depends on the perceptions and feelings of its employees by the practices, procedures and by the system of reward. Litwin and Stringer (1968) have defined organizational climate as a set of measurable properties of the work environment that is directly or indirectly perceived by the people who live and work in a particular environment and it is assumed to influence their motivation and behavior.

To examine the theoretical link between climate and performance, numerous studies have been conducted and it has been found that the perception of employees is positive in terms of increased contribution in decision making, greater information sharing and management support. (Kangis & Williams, 2000) have also conducted empirical study in numerous industries and found that there is a statistical link between organizational climate and performance. It is highlighted that creation of work environments enables to enhance employee satisfaction and commitment towards increasing their performance.

Brown and Brooks (2002:330) define climate as the feelings in the air and the atmosphere that employees perceive is created in their organization due to practices, procedures and rewards.

While individuals differ in the way they perceive, analyze and interpret information, the organizational climate is seen as the collective perception of its employees. Whether individual or collective, organizational climate is to be understood as being associated with employee perception. The organizational climate is the capacity to convey the general psychological atmosphere of an organization and therefore, it may affect the satisfaction, motivation and behavior patterns of individuals in the workplace (Lawler, 1992).

1.1.1Organization: Concept and Definition

Human beings have always lived in organized groups. Initially, group activities were simple like gathering food, migrating or defending the security of the group. The outcome of school management group effort mainly gave people a chance to pool, their talents and efforts for attaining larger goals such as building and protecting their communities. The group also gives it a distinct identity. Later on, specialized nature of functions enabled individuals to concentrate on tasks that they were best at, instead of doing every task which was required for survival and progress. This sort of group activity requires co-operation without which members may work at cross-purpose and thus miss the benefits of association.

To achieve this co-operation and thereby the desired goals, some system of structural relationships had to be established. This type of a system group relationship built on co-operation is basically the meaning of an organization. In a nutshell, an organization can be seen as two or more people working co-operatively towards a common objective or a set of objectives. This system of co-operation is made up of several components: the human element, physical element, work element and coordination element. All these components put together collectively can be understood as an organization. Thus, an organization can be viewed as a social system of co-operation that is designed to enhance individual effort at goal accomplishment.

Barnard and his followers (1999) have taken different view in defining the organization. While in disagreement with Weber, Barnard stresses a different basis for organization. He defines organization as a system of consciously coordinated activities or forces of two or more persons. This emphasizes that activities are accomplished through conscious, deliberate, and purposeful coordination. Barnard essentially emphasizes the role of the individual because it is he/she, who must communicate, make decisions and motivate.

Etzioni (2000) emphasizes structuring and restructuring of human groups for certain specified goals as the basis for constructing an organization. He defines organizations as ‘social units (or human grouping) deliberately constructed and reconstructed to seek specific goals. Accordingly organizations such as corporations, armies, schools, hospitals, churches and prisons get included and tribes, classes, ethnic groups, and families excluded. Etzioni stresses three characteristics of organization: division of labour, the presences of one or more power center and substitution of personnel.

1.1.2Climate: Concept and Definition

Organizations differ in many respects – their goals, ethnic composition of their population etc. Yet one can sense or feel the individuality of an organization. Sometimes, this individuality is labeled as the atmosphere of the organization. Others commonly use tone of the organization as an environment and personality of the organization or organizations climate. This ‘feeling’ which enables us to know that one organization is different from another is relatively intangible, yet we have some proof of the atmosphere of one organization differing from that of another. If we observe the behavior of people in an organization we get proof of this.

For example, in one organization members may seem relaxed and at ease with each other while in another, we may find greater tension which is seen on members faces, their speech, how they work etc. In some organizations, the boss may be showing authority and status, generally emphasizing formality in dealing with others while in others; he may be informal in his behavior without reducing the importance of his role in the system.

These subtle differences which characterize the psychological environment are the domains of the climate of an organization. The term ‘climate’ is coined to refer the general feeling of one person in groups towards each other and some of the attitudes they reveal in their behavior.

Brown and Brooks (2002:.330) define climate as the feelings in the air and the atmosphere that employees perceive is created in their organization due to practices, procedures and rewards.

1.1.3Organizational Climate Concept and Definition

Organizational climate is a term that was probably first used by Cornell in 1955. He used the term to denote a delicate blending of interpretations or perceptions by persons in the organization of their jobs or roles in relationship to others and their interpretation of the roles of others in the organization." He interpreted organization in the sense of a formal structure. The term organizational climate has been defined in different ways by different writers.

Argyris (1957) used the term ‘personality or organizational climate while some others referred the term as ‘a general flow of behavior and feeling and felt the organizational climate to be the interaction between environmental and personal variables of members of a group or groups which operate in an organization. Organizational climate is created by the interaction with one another of the organizational components namely culture, structure, system, leadership behavior and psychological needs of the members of the organization.

We can conclude from the above that organizational climate can be discussed in terms of how it is perceived or felt by members of the organizational members. Thus a climate may be seen as hostile or supportive, as conducive to achievement or stifling and soon.

1.1.4Job Satisfaction: Concept and Definition

The father of scientific management, Taylor’s (1911) approach to job satisfaction is based on a most pragmatic and essentially pessimistic philosophy that man is motivate by money alone. That the workers are essentially ‘stupid and phlegmatic’ and they would be satisfied with work if they get higher economic benefit from it. But with the passage of time, Taylor’s monetary approach has been changed to a more humanistic approach.

It has come a long way from a simple explanation based on money to a more realistic but complex approach to job satisfaction. New dimensions of knowledge are added every day and with increase understanding of new variables & their inter play; the field of job satisfaction have become difficult to comprehend.

The term job satisfaction has brought to limelight by Hoppock (1935). He reviewed 32 studies on job satisfaction conducted prior to 1933 and observed that job satisfaction is a combination of psychological, physiological and environmental circumstances that cause a person to say. ‘I am satisfied with my job.’

Locke defines job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences. To the extent that a persons job fulfills his dominant need and his consistent with his expectations and values, the job will be satisfying.

Job satisfaction is defined as the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs" (Spector, 1997:2). This definition suggests job satisfaction is a general or global affective reaction that individuals hold about their job.

While researchers and practitioners most often measure global job satisfaction, there is also interest in measuring different facets or dimensions of satisfaction. Examination of these facet conditions is often useful for a more careful examination of employees satisfaction with critical job factors. Traditional job satisfaction facet includes: Co-workers, Pay, Job conditions, Supervision, Nature of the work and benefits." (Williams)

1.1.5Association between Organizational Climate and Job Satisfaction

Empirical study is conducted by few researchers and found that there is an indeed statistical link between organizational climate and employee job satisfaction. With researchers finding evidence support in the present research, it has been confirmed that organizational climate establish a link with job satisfaction from the perception of the employees. Organizational climate and job satisfaction influence and reinforce each other since the basic common ground between these two concepts is employee perception. In précis, organizational climate and job satisfaction are distinct but related constructs. An organizational member is focused on organizational attributes as perceived by organizational members, while job satisfaction address perceptions and attitudes that people exhibits towards their work.

1.2PROFILE OF THE INDUSTRY

1.2.1SAIL - Introduction

Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets. SAIL is also among the seven Maharatnas of the country’s Central Public Sector Enterprises.

SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanised sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Company’s iron ore, limestone and dolomite mines. The company has the distinction of being India’s second largest producer of iron ore and of having the country’s second largest mines network. This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making.

SAIL’s wide ranges of long and flat steel products are much in demand in the domestic as well as the international market. This vital responsibility is carried out by SAIL’s own Central Marketing Organisation (CMO) that transacts business through its network of 37 Branch Sales Offices spread across the four regions, 25 Departmental Warehouses, 42 Consignment Agents and 27 Customer Contact Offices. CMO’s domestic marketing effort is supplemented by its ever widening network of rural dealers who meet the demands of the smallest customers in the remotest corners of the country. With the total number of dealers over 2000, SAIL’s wide marketing spread ensures availability of quality steel in virtually all the districts of the country.

SAIL’s International Trade Division ( ITD), in New Delhi- an ISO 9001:2000 accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAIL’s five integrated steel plants.

With technical and managerial expertise and know-how in steel making gained over four decades, SAIL’s Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide.

SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi which helps to produce quality steel and develop new technologies for the steel industry. Besides, SAIL has its own in-house Centre for Engineering and Technology (CET), Management Training Institute (MTI) and Safety Organisation at Ranchi. Our captive mines are under the control of the Raw Materials Division in Kolkata. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Kolkata. Almost all our plants and major units are ISO Certified.

1.2.2Major Units

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Special Steel Plants

Alloy Steels Plants (ASP) in West Bengal

Salem Steel Plant (SSP) in Tamil Nadu

Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

Ferro Alloy Plant

Chandrapur Ferro Alloy Plant

Subsidiary

SAIL Refractory Company Limited

Joint Ventures

NTPC SAIL Power Company Pvt. Limited (NSPCL): A 50:50 joint venture between Steel Authority of India Ltd (SAIL) and National Thermal Power Corporation Ltd (NTPC Ltd); manages SAIL’s captive power plants at Rourkela, Durgapur and Bhilai with a combined capacity of 814 megawatts (MW).

Bokaro Power Supply Company Pvt. Limited (BPSCL): This 50:50 joint venture between SAIL and the Damodar Valley Corporation (DVC) is managing the 302-MW power generating station and 660 tonnes per hour steam generation facilities at Bokaro Steel Plant.

Mjunction Services Limited: A 50:50 joint venture between SAIL and Tata Steel; promotes e-commerce activities in steel and related areas. Its newly added services include e-assets sales, events & conferences, coal sales & logistics, publications, etc.

SAIL-Bansal Service Centre Limited: A joint venture with BMW Industries Ltd. on 40:60 basis for a service centre at Bokaro with the objective of adding value to steel.

Bhilai JP Cement Limited: A joint venture company with Jaiprakash Associates Ltd on 26:74 basis to set up a 2.2 million tonne (MT) slag-based cement plant at Bhilai.

Bokaro JP Cement Limited: Another joint venture company with Jaiprakash Associates Ltd on 26:74 basis to set up a 2.1 MT slag-based cement plant at Bokaro.

SAIL & MOIL Ferro Alloys (Pvt.) Limited : A joint venture company with Manganese Ore (India) Ltd on 50:50 basis to produce ferro-manganese and silico-manganese required in production of steel.

S & T Mining Company Pvt. Limited: A 50:50 joint venture company with Tata Steel for joint acquisition & development of mineral deposits; carrying out mining of minerals including exploration, development, mining and beneficiation of identified coking coal blocks.

International Coal Ventures Private Limited: A joint venture company/SPV promoted by five central PSUs, viz. SAIL, CIL, RINL, NMDC and NTPC (with respectively 28.7%, 28.7%, 14.3%, 14.3% and 14.3% shareholding) aiming to acquire stake in coal mines/blocks/companies overseas for securing coking and thermal coal supplies.

SAIL SCI Shipping Pvt. Limited: A 50:50 joint venture with Shipping Corporation of India for provision of various shipping and related services to SAIL for importing of coking coal and other bulk materials and other shipping-related business.

SAIL RITES Bengal Wagon Industry Pvt. Limited: A 50:50 joint venture with RITES to manufacture, sell, market, distribute and export railway wagons, including high-end specialised wagons, wagon prototypes, fabricated components/parts of railway vehicles, rehabilitation of industrial locomotives, etc., for the domestic market.

SAIL SCL Limited: A 50:50 JV with Government of Kerala where SAIL has management control to revive the existing facilities at Steel Complex Ltd, Calicut and also to set up, develop and manage a TMT rolling mill of 65,000 MT capacity along with balancing facilities and auxilliaries.

1.2.3Ownership and Management

The Government of India owns about 80% 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

1.2.4Details of Integrated Plants and Units

Bhilai Steel Plant

Ten - times winner of Prime Minister’s Trophy for best Integrated Steel Plant in the country, Bhilai Steel Plant (BSP) is India’s sole producer of rails and heavy steel plates and major producer of structural. The plant is the sole supplier of the country’s longest rail tracks of 260 metres. With an annual production capacity of 3.153 MT of saleable steel, the plant also specializes in other products such as wire rods and merchant products. Since BSP is accredited with ISO 9001:2000 Quality Management System Standard, all saleable products of Bhilai Steel Plant come under the ISO umbrella.

At Bhilai IS0:14001 has been awarded for Environment Management System in the Plant, Township and Dalli Mines. It is the only steel plant to get certification in all these areas. The Plant is accredited with SA: 8000 certification for social accountability and the OHSAS-18001 certification for Occupational health and safety. These internationally recognised certifications add value to Bhilai’s products and helps create a place among the best organisations in the steel industry. Among the long list of national awards it has won, Bhilai has bagged the CII-ITC Sustainability award for three consecutive years.

Location : Forty kms west of Raipur, the capital city of Chhattisgarh, along the Howrah-Mumbai railway line and the Great-Eastern highway, stands Bhilai Steel Plant (BSP).

Bokaro Steel Plant

Bokaro Steel Plant - the fourth integrated plant in the Public Sector-started taking shape in 1965 in collaboration with the Soviet Union. It was originally incorporated as a limited company on 29th January 1964, and was later merged with SAIL, first as a susidiary and then as a unit, through the Public Sector Iron & Steel Companies (Restructuring & Miscellaneous Provisions) Act 1978. The construction work started on 6th April 1968.

The Plant is hailed as the country’s first Swadeshi steel plant, built with maximum indigenous content in terms of equipment, material and know-how. Its first Blast Furnace started on 2nd October 1972 and the first phase of 1.7 MT ingot steel was completed on 26th February 1978 with the commissioning of the third Blast Furnace. All units of 4 MT stage have already been commissioned and the 90s’ modernisation has further upgraded this to 4.5 MT of liquid steel.

The new features added in modernisation of SMS-II include two twin-strand slab casters along with a Steel Refining Unit. The Steel Refining Unit was inaugurated on 19th September, 1997 and the Continuous Casting Machine on 25th April, 1998. The modernisation of the Hot Strip Mill saw addition of new features like high pressure de-scalers, work roll bending, hydraulic automatic gauge control, quick work roll change, laminar cooling etc. New walking beam reheating furnaces are replacing the less efficient pusher type furnaces.

A new hydraulic coiler has been added and two of the existing ones revamped. With the completion of Hot Strip Mill modernisation, Bokaro is producing top quality hot rolled products that are well accepted in the global market.

Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled Plates, Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates (TMBP) and Galvanised Plain and Corrugated (GP/GC) Sheets. Bokaro has provided a strong raw material base for a variety of modern engineering industries including automobile, pipe and tube, LPG cylinder, barrel and drum producing industries.

People - The moving force

Bokaro Steel values its people as the fulcrum of all organisational activities. The saga of Bokaro Steel is the story of Bokaroans erecting a gigantic plant in the wilderness of Chhotanagpur, reaching milestones one after another, staving off stiff challenges in the liberalised era, modernising its facilities and innovating their way to the top of the heap.

Directions

Bokaro Steel is working towards becoming a one-stop-shop for world-class flat steel in India. The modernisation plans are aimed at increasing the liquid steel production capacity, coupled with fresh rolling and coating facilities. The new facilities will be capable of producing the most premium grades required by the most discerning customer segments.

Brand Bokaro will signify assured quality and delivery, offering value for money to the customers

Durgapur Steel Plant

Set up in the late 50’s with an initial annual capacity of one million tonnes of crude steel per year, the capacity