Vtu Hr Project on Employee Job Satisfaction

A Study on Employee Job Satisfaction at VSL Steels Limited

1. INDUSTRY PROFILE

INTRODUCTION TO STEEL

Steel is an alloy that consists mostly of iron and has carbon content between 0.2% and 2.1%

by weight, depending on the grade. Carbon is the most common alloying material for iron,

but various other alloying elements are used, such as manganese, chromium, vanadium, and

tungsten. Carbon and other elements act as a hardening agent, preventing dislocations in the

iron atom crystal lattice from sliding past one another. Varying the amount of alloying

elements and the form of their presence in the steel (solute elements, precipitated phase)

controls qualities such as the hardness, ductility, and tensile strength of the resulting steel.

Steel with increased carbon content can be made harder and stronger than iron, but such steel

is also less ductile than iron.

Alloys with a higher than 2.1% carbon content are known as cast iron because of their lower

melting point and cast ability. Steel is also distinguishable from wrought iron, which can

contain a small amount of carbon, but it is included in the form of slag inclusions. Two

distinguishing factors are steel's increased rust resistance and better weld ability.

Though steel had been produced by various inefficient methods long before the Renaissance,

its use became more common after more-efficient production methods were devised in the

17th century. With the invention of the Bessemer process in the mid-19th century, steel

became an inexpensive mass-produced material. Further refinements in the process, such as

basic oxygen steelmaking (BOS), lowered the cost of production while increasing the quality

of the metal. Today, steel is one of the most common materials in the world, with more than

1.3 billion tons produced annually. It is a major component in buildings, infrastructure, tools,

ships, automobiles, machines, appliances, and weapons. Modern steel is generally identified

by various grades defined by assorted standards organizations.

HISTORY OF STEEL

The production of iron by humans began probably sometime after 2000 BC in south-west or

south-central Asia, perhaps in the Caucasus region. Thus began the Iron Age, when iron

replaced bronze in implements and weapons. This shift occurred because iron, when alloyed

with a bit of carbon, is harder, more durable, and holds a sharper edge than bronze. For over

Department of Management Studies, AIT, Bangalore Page 1

http://en.wikipedia.org/wiki/Automobile

http://en.wikipedia.org/wiki/Basic_oxygen_steelmaking

http://en.wikipedia.org/wiki/Mass_production

http://en.wikipedia.org/wiki/Bessemer_process

http://en.wikipedia.org/wiki/Renaissance

http://en.wikipedia.org/wiki/Weldability

http://en.wikipedia.org/wiki/Rust

http://en.wikipedia.org/wiki/Slag

http://en.wikipedia.org/wiki/Wrought_iron

http://en.wikipedia.org/wiki/Castability

http://en.wikipedia.org/wiki/Melting_point

http://en.wikipedia.org/wiki/Cast_iron

http://en.wikipedia.org/wiki/Ductility

http://en.wikipedia.org/wiki/Dislocation

http://en.wikipedia.org/wiki/Tungsten

http://en.wikipedia.org/wiki/Vanadium

http://en.wikipedia.org/wiki/Chromium

http://en.wikipedia.org/wiki/Manganese

http://en.wikipedia.org/wiki/Carbon

http://en.wikipedia.org/wiki/Iron

http://en.wikipedia.org/wiki/Alloy


three thousand years, until replaced by steel after 1870 BC, iron formed the material basis of

human civilization in Europe, Asia, and Africa.

Steel was discovered by the Chinese under the reign of Han dynasty in 202 BC till 220 AD.

Prior to steel, iron was a very popular metal and it was used all over the globe. Even the time

period of around 2 to 3 thousand years before Christ is termed as Iron Age as iron was vastly

used in that period in each and every part of life. But, with the change in time and

technology, people were able to find an even stronger and harder material than iron that was

steel. Using iron had some disadvantages but this alloy of iron and carbon fulfilled all that

iron couldn’t do. The Chinese people invented steel as it was harder than iron and it could

serve better if it is used in making weapons. One legend says that the sword of the first Han

emperor was made of steel only. From China, the process of making steel from iron spread to

its south and reached India. High quality steel was being produced in southern India in as

early as 300 BC. Most of the steel then was exported from Asia only. Around 9th century

AD, the smiths in the Middle East developed techniques to produce sharp and flexible steel

blades. In the 17th century, smiths in Europe came to know about a new process of

cementation to produce steel. Also, other new and improved technologies were gradually

developed and steel soon became the key factor on which most of the economies of the world

started depending.

INDIAN STEEL INDUSTRY

The establishment of Tata Iron and Steel Company (TISCO) in 1907 was the starting point of

modern Indian steel industry. India is the fifth largest producer of steel in the world. India

Steel Industry has grown by leaps and bounds, especially in recent times with Indian firms

buying steel companies overseas. The scope for steel industry is huge and industry estimates

indicate that the industry will continue will to grow reasonably in the coming years with huge

demands for stainless steel in the construction of new airports and metro rail projects. The

government is planning a massive enhancement of the steel production capacity of India with

the modernization of the existing steel plants.

Steel industry reforms – particularly in 1991 and 1992 have led to strong and sustainable

growth in India’s steel industry. In 1991, a substantial number of economic reforms were

introduced by the Indian government. These reforms boosted the development process of a

number of industries the steel industry in India in particular – which has subsequently

development quite rapidly.



Industry statistics

Government targets to increase the production capacity from 56 million tonnes annually to

124 MT in the first phase which will come to an end by 2011 – 2012. Currently with a

production of 56 million tonnes India accounts for over 7% of the total steel produced

globally, while it account to about 5% of global steel consumption. The steel sector in India

grew by 5.3 in may 2009. Globally India is the only country to post a positive overall growth

in the production of crude steel at 1.01% for the period of January – March in 2009.

Export

About 50% of the steel produced in India is exported. India’s export of steel during of steel

during April –December 2008 was 64.4 MT in December 2007. In February 2009 steel export

increased by 17% to 12.6 MT from 10.8 MT in the same month last year. More than 50% of

steel from India is exported to china. The Government’s decision to reduce export duty on

iron ore lumps from 15% to 5% has given a major boost to the export of steel.

Hurdles

Power shortage hampers the production of steel.

Use of outdate processes for production.

Deficiency of raw material required by the industry.

Labour productivity is low.

Strengths

There are many strong points of the industry that makes it one of the leading names in the

global steel industry. The rate of labor wage in India is among one of the lowest in the world

thereby making large scale production feasible. The boom witnessed in the automobile

industry has ensured that the demand for steel is increasing gradually and will continue to do

so in the near future. There is huge manpower in India which is another reason why steel

production in India is high and the industry is doing pretty well both national and

international.

Investments

Numerous steel companies some major projects in the pipeline to invest in India steel

industry. Steel companies have earmarked more than 100 million USD for the setting up of



sponge iron units in Koppal and Bellary in Karnataka. As per Investment commission of

India more than 30 billion USD are in the pipeline for investment over the next five years.

Sector structure/Market size

The steel industry in India has been moving from strength to strength and according to the

year-end review by the press Information Bureau, India has emerged as the fourth largest

producer of steel in the world and the second largest producer of crude steel.

Significantly, state-owned steel maker, Steel Authority of India (SAIL), which reported a net

profit of US$571 million in January-June 2009, has become the most profitable steel

company globally, beating steel majors such as ArcelorMittal, Posco, Bao steel and Nippon

in the half yearly profits.

Production

India continually posts phenomenal growth records in steel production. In 1991, India

produced 14.33 million tonnes of finished carbon steels and 1.59 million tonnes of pig iron.

Furthermore, the steel production capacity of the country has increased rapidly since 1991- in

2008, India produced nearly 46.575 million tonnes of pig iron. Steel production reached

28.49 million ton (MT) in April-September 2009. The National steel policy has a target for

taking steel production up to 110 MT by 2019-20. Nonetheless, with the current rate of

ongoing Greenfield and brown field projects, the Ministry of Steel has projected India’s steel

capacity is expected to touch 124.06 MT by 2011-12. In fact, based on the status of

Memoranda of Understanding (MU) signed by the private producers with the various state

governments, India’s steel capacity is likely to be 293 MT by 2020.

Consumption

In 1992, the total consumption of finished steel was 14.84 million tonnes. In 2008, the total

amount of domestic steel consumption was 43.925 million tonnes. With the increased

demand in the national market, a huge part of the international market is also served by this

industry. Today, India is in seventh position among all the crude steel producing countries.

India accounts for around 5 per cent of the global steel consumption. Almost 70 per cent of

the total steel use in railway coaches, wagons, airport, hotels and retail stores is growing

immensely.



India’s steel consumption rose by 6.8 per cent during April-November 2009 over the same

period a year ago on account of improved demand from sectors like automobile and

consumption durables.

A Credit Suisse Group study states that India’s steel consumption will continue to grow by 16

per cent annually till 2012, fuelled by demand for consumption projects worth US$ 1 trillion.

The scope for raising the total consumption of the steel is huge, given that per cent steel

consumption is only 35 kg- compared to 150 kg across the world and 250 kg in China.

Steel players like JSW steel and Essar Steel are increasing their focus on opening up more

retail outlets pan India with growth in domestic demand. JSW steel currently has 50 such

steel retail outlets called JSW Shoppe and is targeting to increase it to 200 by March 2010.

They expect at least 10-15 per cent of their total production to be sold by their retail outlets.

Essar Steel which currently has over 300 retail out lets across the country, plant to set up

5,000 outlets of various formats soon. It expects to sell 3MT of steel through the retail route

in two years.

Export

Out of the India’s annual iron ore production of more than 200 MT, about 50 per cent is

exported.

India’s iron ore exports more than doubled to 9.3 million tonne in October 2009 as compared

to 4.4 million tones in the same month a year ago on the back of increase in demand from

Chinese steel producers, as per a joint study by a group of iron ore exporters.

Iron ore is a key input in steel making. The country’s iron ore export during April- October

2009 period grew 20 per cent over the year ago period to 53 million tonnes, as per the study.

Investments

A host of steel companies have lined up major investment proposals. Furthermore, with an

expanding consumer marketing, the Indian steel industry is likely to receive huge domestic

and foreign investments.

The domestic steel sector has attracted a staggering investment of about US$236 billion,

according to the Minister of state.



World Steel Production in the 20th Century

Over the course of the 20th century, production of crude steel has risen at an astounding rate,

now fast approaching a production level of 800 million tons per year. Today, it is difficult to

imagine a world without steel.

During the 20th century, the consumption of steel increased at an average annual rate of

3.3%. In 1900, the USA was producing 37% of the world’s steel. With post war industrial

development in Asia that region now (at the turn of the 20th century) accounts for almost

40%, with Europe (including the former Soviet Union) producing 36% and North America

14.5%.

Steel consumption increases when economies are growing, as governments invest in

infrastructure and transport, and build new factories and houses. Economic recession meets

with a dip in steel production as such investments falter. The peaks corresponding to the

years of the two World Wars, followed each time by a dip, and soon after by strong climbs as

the major economies recovered from the war and entered new periods of prosperity and

growth, most notably in the 1950s and 1960s. The trend over the past three decades can also

be seen to be in line with cyclical economic trends, with alternating periods of prosperity and

recession. That was the period when the steel industry developed in Western Europe and the

USA followed by the Soviet Union, Eastern Europe and Japan. However, steel consumption

in the developed countries has reached a high stable level and growth has tapered off.

After being in the focus in the developed world for more than a century, attention has now

shifted to the developing regions. In the West, steel is referred to as a sunset industry. In the

developing countries, the sun is still rising, for most it is only a dawn.

Towards the end of the last century, growth of steel production was in the developing

countries such as China, Brazil and India, as well as newly developed South Korea. Steel

production and consumption grew steadily in China in the initial years but later it picked up

momentum and the closing years of the century saw it racing ahead of the rest of the world.

China produced 220.1 million tonnes in 2003, 272.2 million tonnes in 2004 and 349.36

million tonnes in 2005. That is much above the production in 2005 of Japan at 112.47 million

tonnes, the USA at 93.90 million tonnes and Russia at 66.15 million tonnes.



Table 1.1: List of countries producing steel from 2007 to 2009, as per data by World Steel

Association.

Rank Country/Region 2007 2008 2009

— World 1,351.30 1326.5 1,219.70

1 People's Republic of China 494.9 500.5 567.8

2 Japan 120.2 118.7 87.5

3 Russia 72.4 68.5 59.9

4 United States 98.1 91.4 58.1

5 India 53.1 55.2 56.6

6 South Korea 51.5 53.6 48.6

7 Germany 48.6 45.8 32.7

8 Ukraine 42.8 37.1 29.8

9 Brazil 33.8 33.7 26.5

10 Turkey 25.8 26.8 25.3

11 Italy 31.6 30.6 19.7

12 Taiwan 20.9 19.9 15.7

13 Spain 19 18.6 14.3

14 Mexico 17.6 17.2 14.2

15 France 19.3 17.9 12.8

16 Iran 10.1 10 10.9

17 United Kingdom 14.3 13.5 10.1

18 Canada 15.6 14.8 9

19 South Africa 9.1 8.3 7.5

20 Poland 10.6 9.7 7.2

Table 1.2: List of the largest steel-producing companies in the world as per data by World

Steel Association.



Sl. No.

Millions of tonnes (2009)

Millions of tonnes (2008)

Millions of tonnes (2007) Company Headquarters

1 77.5 103.3 116.4 ArcelorMittal Luxembourg

2 31.3 35.4 28.6 Baosteel Group China

3 31.1 34.7 31.1 POSCO South Korea

4 26.5 37.5 35.7 Nippon Steel Japan

5 25.8 33 34 JFE Japan

6 20.5 23.3 22.9 Jiangsu Shagang China

7 20.5 24.4 26.5 Tata Steel India

8 20.1 16 16.2 Ansteel China

9 16.7 19.2 17.3 Severstal Russia

10 15.3 17.7 16.2 Evraz Russia

11 15.2 23.2 21.5United States Steel Corporation United States

12 15.1 12.2 12.9 Shougang China13 14.2 20.4 18.6 Gerdau Brazil

14 14 20.4 20 Nucor Corporation United States

15 13.7 27.7 20.2 Wuhan Iron and Steel China

16 13.5 13.7 13.9Steel Authority of India Limited India

17 12 33.3 31.1 Hebei Iron and Steel China

18 11.3 16 17.9 Gruppo Riva Italy

19 11 14.1 13.8 Sumitomo Metal Industries Japan

20 11 15.9 17 ThyssenKrupp Germany

MAJOR PLAYERS OF STEEL IN INDIA

PUBLIC SECTOR



STEEL AUTHORITY OF INDIA LIMITED (SAIL)

Steel Authority of India Limited (SAIL) is a company registered under the Indian Companies

Act, 1956 and is an enterprise of the Government of India.

RASHTRIYA ISPAT NIGAM LTD. (RINL)

RINL, the corporate entity of Visakhapatnmam Steel Plant (VSP) is the first shore based

integrated steel plant located at Visakhapatnam in Andhra Pradesh.

MSTC LTD.

MSTC Ltd. (formerly Metal Scrap Trade Corporation Ltd.) was set up on the 9th September,

1964 as a canalizing agency for the export of scrap from the country.

FERRO SCRAP NIGAM LTD. (FSNL)

FSNL is a wholly owned subsidiary of MSTC Ltd. with a paid up capital of Rs. 200 lakh.

HINDUSTAN STEELWORKS CONSTRUCTION LTD. (HSCL)

HSCL was incorporated in June 1964 with the primary objective of creating in the Public

Sector an organization capable of undertaking complete construction of modern integrated

Steel Plants.

MECON LTD.

MECON is one of the leading multi-disciplinary design, engineering, consultancy and

contracting organization in the field of iron & steel, chemicals, refineries & petrochemicals,

power, roads & highways, railways, water management, ports & harbors, gas & oil, pipelines,

non ferrous, mining, general engineering, environmental engineering and other related/

diversified areas with extensive overseas experience.

PRIVATE SECTOR



The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country. Private sector steel players have

contributed nearly 67% of total steel production of 38.08 million tonnes to the country during

the period April-December, 2007. The private sector units consist of both major steel

producers on one hand and relatively smaller and medium units such as Sponge iron plants,

Mini Blast Furnace units, Electric Arc Furnaces, Induction Furnaces, Rerolling Mills, Cold-

rolling Mills and Coating units on the other. They not only play an important role in

production of primary and secondary steel, but also contribute substantial value addition in

terms of quality, innovation and cost effective.

TATA STEEL LTD.

Tata Steel has an integrated steel plant, with an annual crude steel making capacity of 5

million tons per annum located at Jamshedpur, Jharkhand. In January 2007 India's Tata Steel

made a successful $11.3 billion offer to buy European steel maker Corus Group PLC.

ESSAR STEEL LTD. (ESL)

Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a footprint covering

India, Canada, USA, the Middle East and Asia.

JSW STEEL LTD.

JSW Steel is a 3.8 MTPA integrated steel plant, having a process route consisting broadly of

Iron Ore Beneficiation – Pelletisation – Sintering – Coke making – Iron making through Blast

Furnace as well as Corex process – Steel making through: BOF- Continuous Casting of slabs

– Hot Strip Rolling – Cold Rolling Mills.

ISPAT INDUSTRIES LTD. (IIL)

IIL has set up one of the largest integrated steel plants in the private sector in India at Dolvi

in Raigad District, Maharashtra with a capacity to manufacture 3 million tones per annum of

hot rolled steel coils (HRC)

2. COMPANY PROFILE



2.a BACK GROUND AND INCEPTION OF THE COMPANY

The V S Lad group is one of the oldest and largest suppliers of iron ore from Karnataka.

While the group has been in this business for more than 5 decades, they have diversified the

mining business into manufacture of pig iron and various other activities.

The V S Lad group has also successfully ventured into Information Technology, Real Estate,

Transportation, Entertainment industry and Aviation. Their businesses include several IT

firms, an Air Cargo company, Real Estate development firms, Movie and TV production

companies, Online Entertainment portals and Clubs.

VSL Group was started in 1956 by the late Sri Vittal Rao Shivaram Lad. VSL Steels Limited

(formerly, SLR Steels Limited) is a manufacturer of high quality Pig Iron and is a flag ship

company of the "VSL GROUP" owned by V S LAD & Sons. This plant (VSL Steels Limited,

Paramenahally) started its operations from 01.01.2007.

2.b NATURE OF BUSINESS CARRIED

VSL Steels Ltd is one of the steel manufacturing company in India, which is engaged in

producing pig iron, skull, slag which are used in foundries and cement industry.

2.c VISION, MISSION AND QUALITY POLICY

VISION

To be the India’s most prolific manufacturer of Pig Iron, Steel and related product by

delivering high quality metal solutions.

MISSION

To be synonymous with quality, commitment, value to continuously expand and upgrade

operations.

QUALITY POLICY



We, at VSL Steels Ltd., are committed to achieve Total Customer Satisfaction by supplying

quality Pig Iron as per customer’s requirement through quality assurance processes along

with effective work practices.

2.d PRODUCT PROFILE

VSL Steels produces various grades of Pig Iron which are utilized by the foundry industry to

produce superior grade and high quality precision castings. They are catering to the needs of

foundry industry throughout India from Tamil Nadu to Punjab. Their quality is well accepted

because of the consistency of specification of the Pig Iron supplied.

The products produced by VSL are almost semi-finished goods and they are as follows.

PIG IRON- A product in solid (lumpy) form obtained upon solidification of Hot Metal in

Pig Casting Machine. It’s a pure and well-shaped form of iron which is used in foundries.

SKULL- It doesn’t have a well which is also used in foundries and is a form of semi-finished

good.

SLAG- It’s a by-product of pig iron, used in cement industry.

VSL Steels Limited has some standard specifications in their products. In addition to standard

specifications, it can produce pig iron with chemical composition according to customer

needs.

2.e AREA OF OPERATION

The plant is located at:

Vani Vilas Road,

Paramenahally Village

Hiriyur Taluk, Chitradurga District

Karnataka State

India- 572143

Nearest Town: 10 Km from Hiriyur

Nearest Sea Port: 325 km at New Mangalore



Nearest Air port: 170 km at Bangalore International Airport

Nearest Railway Station: 55 km at Chitradurga

The plant has an annual production capacity of 1,44,000 MT of Pig Iron, which will be

enhanced to 2,16,000 MT per annum by commission of new Sinter Plant. Currently, the

company is operating within national localities. There are no exports from the company. It is

marketing its products in Punjab, Tamilnadu, Andhra Pradesh, Maharashtra, Gujarat, Delhi

and Karnataka.

Dealer Network

Belgaum (Karnataka)

Hyderabad (Andhra Pradesh)

Coimbatore, Chennai (Tamil Nadu)

Kolhapur (Maharashtra)

Ahmadabad, Rajkot, Baroda (Gujarat)

Ludhiana, Batala (Punjab)

Delhi

Partial Client List

Electro Steel Castings, Chennai

Ennore Foundries Limited, Chennai

Laxmi Machine Works, Coimbatore

Indoshell Mould Limited, Coimbatore

Sound Castings Pvt Limited, Kolhapur

Ghatge Patil Industries, Kolhapur

BMM Ispat Limited, Hospet



Ashok Iron Works, Belgaum

Pearlite Liners Limited, Shimoga

2.f OWNERSHIP PATTERN:

The VSL Steels Ltd is completely owned by VS Lad group and their family members. No

shares are issued to public.

Board of Directors:

Managing Director: Dr. Eknath V Lad

Chairman: Santhosh S Lad

Director: Vishvas Lad

Executive Director: Vinay E Lad

2.g COMPETITORS INFORMATION:

Some of the competitors for VSL Steels Ltd in National market are as follows.

Jindal

MSPL

Kirloskar

Shathvahan steels

2.h INFRASTRUCTURAL FACILITIES

RAW MATERIAL YARD



Raw material yard is the space provided for the storage of raw materials- iron ore, coke

and limestone.

STOCK HOUSE

Raw material processing like screening, weighing, stocking and charging (or feeding) of

raw material to the Blast Furnace through conveyor at required time is done here. It is a

temporary storage unit.

BLAST FURNACE

VSL Steels Limited has a mini Blast Furnace of 262 m3 capacity of MECON technology

with the capacity of producing 1,44,000 MT of pig iron per annum, which will be enhanced

to 2,16,000 MT per annum by commission of new sinter plant.

BLOWER HOUSE

Here, natural gas is absorbed and supplied to Blast Furnace stoves through induct pipes.

CAPTIVE POWER PLANT(CPP)

VSL Steels Ltd has installed 4MW Captive Power Plant which operates on Blast Furnace

gas. This CPP meets all the energy requirements of the factory.

COKE OVEN PLANT

The in-house Coke Oven Plant has the capacity to produce 100 MT of coke per day.

DG HOUSE

In case of shut down of Captive Power Plant, power stored in DG House generators (2

no.) is utilised.

QUALITY ASSURANCE LAB

In order to get good quality of pig iron the raw materials received are checked here to

ensure their quality by the applicable Indian Standards (IS) methods. The pig iron produced is

checked for its quality by an Optical Emission Spectrometer. It helps the operation

department to take immediate corrective actions.

PIG IRON YARD

The final product of VSLS, pig iron, collected from Pig Cast Machine (PCM) is shifted to

Pig Iron Yard. Pig iron is heaped in batches according to the Heat Numbers produced. Care is

taken to ensure that there is no mix-up of heaps.

FLARE STACK

Blast Furnace gas is used as boiler fuel in CPP and for stove pre-heating. Remaining gas is

discharged through Flare Stack after burning. Burning is done to convert CO contained in

Blast Furnace gas to CO2 since CO is very toxic.

OCCUPATIONAL HEALTH CENTER



For monitoring the health of employees and to provide first aid facility to employees.

CANTEEN with two floors.

ADMIN BUILDING

Admin Building involves various departments’ offices and a Conference Hall.

RO PLANT

At RO Plant hard water is converted into soft water by Reverse Osmosis process.

2.i ACHIEVEMENT/AWARDS

Rajiv Gandhi Shiromani Award – 24th Aug 09

Indhira Gandhi Sadbhavana Award – 18th Nov 09

BharathGourav Award – 17 Jun 10

Indian Achiever Award – 14th Mar 10

2.j WORK FLOW MODEL


Raw material receipt


Figure 2.j.1: Workflow model of VSL Steels Limited

2.k FUTURE GROWTH AND PROSPECTS


Weighment at plant Weigh Bridge

Raw material yard

Tipper movement

Ground hopper

Stock house conveyor

Stock house day bins

Screening of raw material

Weighing hoppers

BFC 1 conveyor

Iron ore coke fines

Fines bunker

Storage yard

Dispatch

BFC 2 conveyor

REBO/small bell hopper

Charging hopper

Pig casting iron

BF Gas

Hot metal ladels

Hot metal

Dust Catcher

Venture 1&2

Slag granulation

Finished product

dispatch

Storage yard

Slag

Pig scrap

Air Blower Stoves Hot blast

Moisture seperatorskull


VSL Steels has aggressive growth plans for expansion of its operation, capacity and product

offerings.

It has plan to become an Integrated Steel plant with production capability of 0.4

million tons of steel by in this year (2011) with an investment of INR 800 million.

In phase II, it plans to further increase the capacity to 1 million tons by 2015.

The company plans to install:

Additional Blast Furnace to produce more hot metal

Coke Oven plant with captive power plant.

Sinter plant with 1x33 m2 capacity.

Steel melting shop with rolling mills, their end products will be TMT bars and special

Alloy Billets.

3. McKENSEY’S 7S FRAMEWORK



The 7S Framework has first appeared in the book “The Art of Japanese’s Management” by

Richard Pascal and Anthony Authors in 1981. The two authors were looking at how Japanese

industry had been so successful. At around the same time Tom Peters and Robert Waterman

were exploring what made a company excellent. The 7S model was born at meeting of the

four authors in 1978. It then appeared in the book “In Search of Excellence” by Peters and

Waterman in 1982. Subsequently it was taken up as a basic tool by the Global Management

Consultancy Company Mckensey’s to diagnose the cause of organisational problems and to

formulate programs for improvement and then on it became famous as Mckensey’s 7S

Model.

According to this model, for an organisation to perform well, the following 7 elements need

to be aligned and mutually reinforcing.

These 7 elements are divided into two types: Hard (strategy, structure and system) and Soft

(skill, staff, style and shared values). Hard elements are easy to identify and feasible. They

can be found in strategy elements, corporate plans, organizational structures and other

documentations. The soft elements are hard to describe. They are sort of intangible. Hence it

is more difficult to plan or influence these elements.

Figure 3.1: McKensey’s 7S framework

1. STRUCTURE


STRUCTURE

SHARED VALUES

SKILL STYLE

STAFF

SYSTEMSTRATEGY


The formal arrangement of jobs within an organization is called organizational structure. It

prescribes the formal relationships among various positions and organizational members to

communicate with other members, what roles members need to perform, who reports to

whom and what rules and procedures exist to guide the various activities performed by

members are all part of the organization structure. The organization’s size affects its

structure.

VSL Steels Limited’s Organization Structure is a functional one.

Organization Chart of VSL Steels Limited

Figure 3.2: Organization chart of VSL Steels Limited

Structure of Human Resource Department


Chairman & Managing Director and Board of

Executive Director

EA to ED

Manager (Materials)

Sr. Manager (Utility)

Dy. Mgr. (Mech.)

Chief Chemist (QA Lab)

Dy. Mgr. (Civil & Hort.)

Joint Director (O)

Asst. Mgr. (Safety)

Sr. Mgr. (HR)

Sr. Mgr. (Admin.) Asst. Mgr.

Finance Controller

PA to CMDManager (CPP)

Dy. Manager (Instru.)Manager

(Electrical)

DGM (Operations

Dy. Mgr. (RM)

Project Managers (Sintering Plant)

Vice President (Maint.)

Finance Controller (A/c.)

GM (Marketing

)

GM (HR & Bangalore Office

Co-Ordinator

Manager (Coke Oven)

GM (HR & A)


Figure 3.3: Structure of Human Resource Department

Structure of Marketing Department

Figure 3.4: Structure of Marketing Department

Structure of Blast Furnace Operations Department


GM

Sr. Mgr. (Admin)Sr. Mgr. (HR)

Transport Assistant

Security Supervisor

Canteen Supervisor

Jr. Assistant

Jr. Mgr.

Receptionist

Office Assistant

Jr. Mgr.

Weigh Bridge Operations

Yard Asst. /Helper

Jr. OfficerJr. Officer

Despatch sectionAsst. Mgr.


Figure 3.5: Structure of Blast Furnace Operations Department

Structure of Raw Material Handling Department

Figure 3.6: Structure of Raw Material Handling Department

2. STRATEGY


JD

DGM

Technician

Operator

Engineer

Operator

Technician

Engineer

Operator

Technician

Engineer

Operator

Technician

Engineer

Dy. Mgr.Dy. Mgr.Dy. Mgr.Dy. Mgr.

Asst. Mgr.

Day Bin Operators

Sampling Operators

Truck Tippler Operators

Weigh bridge operators

Supervisor

Engineer


Strategies are the actions a company plans in response to or anticipation of changes in its

external environment. It includes purposes, mission, objectives, goals and major action plans

and policies.

Pricing strategy

At VSL Steels Limited, the prices for its products are fixed on the basis of raw material cost,

market condition, and cost of production.

Waste management strategy

Sewage Treatment Plant of 32KLD has been constructed. The plant is designed on zero

discharge principle. The processed water is re-circulated and make-up water is added to take

care of the process losses. The hot gas generated in the blast furnace is cleaned to reduce the

dust content to less than 5mg/NM3. The cleaned gas is used in generation of Power and Stove

heating. Surplus gas is flared through a flare stack.

3. SYSTEM

System refers to all the rules, regulations, daily activities and procedures both formal and

informal that complement the organization structure. It includes all the processes and

information flow that link the organization together, consisting of training and development

systems, planning and budgeting systems, performance management systems, etc.

Some of the systems at VSL Steels Limited are as follows:

Management Information System

Management Information System at VSL Steels Limited has a well designed information

network. They have fully equipped technical information department, which is called as

information system group. The most essential function of this department is to make the

strategic and operational level information at all times.

Inventory Control System:

ABC analysis will be done for stock control. FIFO method is followed for receiving and

issuing materials. Computerized accounting system is used for maintaining store activities.



Remuneration System:

Company fixes salary to employees based on their qualification and experience. Permanent

employees are paid salaries. Group incentives are paid to direct workers if they achieve

monthly production targets. Daily wages are paid to contract employees through contractors.

Performance Appraisal System

Confidential report is prepared by heads of various departments for systematic judgment of

the subordinate by authority to assess the standard of work & overall performance.

4. SKILLS

Skills refer to the actual skills and competencies of the employees working for the company.

The term skill includes those characteristics which are developed over a period of time.

VSL Steels Limited is good at technical and human skills. There are around 130 skilled

workers followed by 30 semi-skilled and 30 unskilled workers out of 300 permanent

employees.

On the Job Training is provided for freshers. Training programs are conducted regularly for

all the employees to enhance their skills.

5. STYLE

Style refers to the style of leadership adopted- authoritative or participative, reporting

relationship between the superiors and subordinates and the flow of communication between

them.

We can say that VSL Steels Limited is following the participative kind of leadership because

its employees have their say in matters like patrolling, conducting health camps, etc.

6. STAFF

The term Staff refers to the employees and their general capabilities. Staffing is the process of

acquiring human resources for the organization and assuring that they have potential to

contribute to the achievement of the organization’s goals.

In VSL Steels Limited, there are nearly 300 workers comprising of permanent employees,

trainees and probationers. There are 500 plus contract workers. The company's Manpower is



its real strength. VSL Steels is an equal opportunity employer. There are around 130 skilled

workers followed by 30 semi-skilled and 30 unskilled workers out of 300 permanent workers.

7. SHARED VALUES

Shared values are the core values of the company that are evidenced in the corporate culture

and the general work ethic. These are also called “superordinate goals.”

Placing shared values in the middle of the model emphasizes that these values are central to

the development of all the other critical elements. The original vision of the company was

formed from the values of the creators. As the values change, so do all the other elements.

Customer Satisfaction:

Both the management and workers are committed to understand the present and the changing

needs of the customers and fulfilling them for achieving total customer satisfaction.

Environment Protection:

Management and workers are committed to protect the environment. To control the dust, all

the major roads within the plant are asphalted. The approach road from Highway to the plant

is also asphalted. Water tanker, water sprinklers and rain guns have been installed to wet

roads and stock yards for dust suppression.

Safety:

They are committed to follow safety procedures to reduce all identified operational hazards,

risks to employees, contractors and visitors. Training is provided for all employees to work

safely to prevent injury to themselves and others, and avoid damage to property.

VSL Steels Limited strives to be a good corporate citizen. VSL Steels as a corporate entity

believes in inclusive growth of all stakeholders associated with the company. They have

taken a pledge to improve the living standards of people in the area of their operations.

Corporate Social Responsibility:

Both the management and the workers are committed to help the society by serving

surrounding villages as below:

School uniforms distributed to all students of Government schools of Paramenahally,

Doddaghatta, Uduvalli and Kathrikenahalli villages.

Dining Hall built for Government schools of Paramenahally villages and Mokshagundam

School at Hiriyur.

Beautification and maintenance of TB Circle at Hiriyur.



Donation for Brahmha Ratha to Kanive Maramma Temple at Vanivilasapura.

Play ground for Government school of Paramenahally and Kathrikenahalli village.

Free Medical Check-up Camp held at Navodaya Viddyalaya, for the villages of

Doddagatta,Uduvalli, Kathrikenahalli and Paramenahally. VSL has sponsored the treatment

and also conducted operations warranted on a case to case basis.

Donation of Wheel Chairs to physically handicapped persons of Uduvalli, Paramenahally,

Doddaghatta and Katrikenahalli Villages.

Mass Marriage ceremony was sponsored and arranged for over hundred couples for the last

four years.

• Donated rupees 10 lakh to Bangalore Diabetes Hospital, Bangalore.

• Contributed rupees 11.4 lakh for North Karnataka Flood Relief Fund.



4. SWOT ANALYSIS

STRENGTHS:

1. Latest technology of production.

2. Captive power plant of 4 MW.

3. Experienced management and technical team.

4. Product quality is the strength of the company.

5. VSL has good reputation in Steel market; this is the result of long experience.

6. Good work culture.

7. Customer satisfaction.

8. Economical and skilled work force.

9. Easy access to the major ports of Mangalore.

WEAKNESSES:

1. VSL is far away from the main market.

2. It faces problems with the infrastructure.

3. Freight & Transportation costs are high as the Port and Railway Station are very far from the

Plant.

4. Market realisation is weak.

5. Transportation costs are high due to non-availability of trucks and other means of

transportation.

6. Financial crunch is another weakness of VSL.

7. Problems in efficient warehousing and out bound transaction.

8. Purchasing iron ore and coke for high price.

OPPORTUNITIES

1. It lies in the vicinity of large potential and unexplored market of southern India.

2. More and more infrastructural projects from State and Central Govt. are another opportunity

which increases demand for its production.

3. Growing market.

4. Support from the state govt.



THREATS:

1. Tough Competition with SAIL, TISCO, MITTAL, JINDAL, KIRLOSKAR and other big

players.

2. Price war may result due to close competition and price being the main constraint in steel

marketing.

3. Dumping of metal from countries like Korea is another major threat.

4. Threats from materials like aluminum, plastic and cement.



5. FINANCIAL STATEMENT

Table 5.1: Balance Sheets for the years 2005, 2006, 2007, 2008, and 2009.

VSL STEEL LIMITED, HIRIYUR BALANCE SHEETS ( Rs. in Lakhs ) Particulars As At

31.03.2005

As At

31.03.2006

As At

31.03.2007

As At

31.03.2008

As At

31.03.2009

SOURCE OF FUNDS

1 SHARE HOLDERS' FUNDS

a) share Capital 150.00 150.00 250.00 250.00 700.00

b) Reserves and Surplus

P & L A/c 250.30 444.19 596.74 827.09 320.66

Others Reserves 24.08 24.08 24.08 24.08 24.08

General Reserves 78.86 162.90 215.60 307.91 451.69

2 LOAN FUNDS

a) Secured Loan: Working Capital Loan 505.68 328.09 635.93 1754.32 1732.79

Term Loan Installment 231.67

Term Loan 351.51 532.69 1673.20 2010.79 2694.84

Total Term Loan 351.51 532.69 1673.20 2010.79 2926.51

b) Deposit from Directors 52.88 71.99 82.66 463.19 372.27

c) Creditors on Capital Goods-LC-Pymt 343.99

TOTAL 143.40 1713.83 3478.21 5637.38 6871.99

APPLICATION OF FUNDS

1 FIXED ASSETS

a) Gross Block 975.30 1131.58 2674.73 3232.78 4934.06



b) Less :Depreciation 251.94 310.58 383.40 521.87 690.90

c) Net Block 723.36 821.00 2291.33 2710.91 4243.16

2 INVESTMENT 3.21 3.21 3.21 3.21 3.21

3CURRENT ASSETS, LOANS & ADVANCES

a) Inventories Raw Materials 210.84 246.59 497.06 685.09 387.81

Stock in Process 20.50 21.10 29.14 47.32 95.40

Finished goods 98.74 58.73 100.58 179.10 119.72

Stores & Consumables 32.80 38.74 42.41 226.27 223.37

b) Sundry Debtors 324.66 534.22 508.92 1397.06 1294.35

c) Cash & Bank Balance 24.50 3.13 4.77 116.28 19.33

Deposit with Banks 0.00 5.90 4.27 226.31 151.16

Total Cash & Bank Balance 24.50 9.03 9.04 342.59 170.49

d) Advance to Suppliers of raw materials and stores 59.78 80.00 68.89 257.17 605.12

e) Deposits with Govt. Depts/Statutory Bodies 31.32 26.59 104.50 92.00 64.08

f) Total Advance & Deposit for Supply 91.10 106.59 173.39 349.17 669.20

803.14 1015.00 1360.53 3226.60 2960.34

Less : Trade Creditors 98.86 109.75 161.13 273.53 315.24

Less : Statutory Liabilities & Provisions 17.45 15.63 17.28 30.98 21.38

Net Current Assets 686.83 889.62 1182.12 2922.09 2623.72

Preliminary expenses (Not written off) 1.54 1.16 1.90

TOTAL 1413.40 1713.83 3478.21 5637.38 6871.99



Table 5.2: Profit and Loss accounts for years 2006, 2007, 2008, 2009 and 2010.

VSL STEELS LIMITED, HIRIYUR PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ( Rs. In

Lakhs )Particulars Year

Ended 31.03.2006

Year Ended 31.03.2007




A. INCOME

1 Sales & Operating Income2724.61

3292.64

3440.13 5616.5

7849.45

Other Income 2.3 4.53 4.49 352.22 39.92

TOTAL2727.44

3297.17

3444.62

5968.72

7889.37

B. Expenses

1 Material & Stores Consumed

Raw Materials 1720.94

1982.75

2296.16

4132.51

5887.46

Other Stores & Consumables 135.80 143.79 149.63 79.70 316.92

2 Power & Fuel Charges 201.10 256.70 310.83 591.08 751.68

3 Direct Labour (Wages & Salaries) 103.62 109.52 109.33 109.85 144.49

4 Other Manufacturing Expenses 66.84 69.32 79.78 82.75 114.08

5Administrative Expenses & Selling Expenses 178.20 244.72 107.97 206.48 267.81

6

Interest & Bank Charges :

Term Loan 53.62 63.20 207.27 300.28

Working Capital 47.65 41.06 68.92 157.96 280.20

7Opening Stock Work in Process 12.38 20.50 21.10 29.14 47.32



Finished Goods 51.25 98.74 58.73 100.58 179.10

8Closing Stock Work in Process -20.50 -21.10 -29.14 -47.32 -95.40

Finished Goods -98.74 -58.73 -100.58 -179.10 -119.72

COST OF GOODS SOLD2398.54

2940.89

3135.92

5470.90

8074.22

C. Profit before Depreciation (A-B) 328.90 356.28 308.70 497.82 -184.85

Less : Depreciation for the year 33.33 58.64 72.82 138.47 176.13

D.

Profit before provisation of Income Tax 295.57 297.64 235.88 359.35 -360.98

Less: provisation for Income Tax & arrears 23.93 19.91 30.52 36.69 1.67

E. NET PROFIT FOR THE YEAR 271.64 277.73 205.36 322.66 -362.65

Less : Transferred to reserves (Def. Tax) 78.86 83.93 52.81 92.31 143.78

F.

NET PROFIT AFTER DIVIDEND 192.78 193.80 152.55 230.35 -506.43

Add :Balance as per last year Balance Sheet 57.61 250.39 444.19 596.74 827.09

G.

BALANCE CARRIED TO BALANCE SHEET 250.39 444.19 596.74 827.09 320.66



6. LEARNING EXPERIENCE

It was a great experience doing project on Employees’ Job Satisfaction at VSL Steels

Limited, Paramenahally. Before doing this project, I hadn’t known about how things will

happen in companies. During my project work, I got a chance to understand how exactly

things will go in a company. I came to know that, while working we have to deal with labour

laws a lot and hence they are more important than any other things we have studied in our

classes. I learned how to implement the theories I studied during my academics in real life. I

came to know about what knowledge and skills should I possess to become a good corporate

citizen.

My overall experience in the company was very pleasant. The response & support got from

the management & staffs were appreciable. The atmosphere & working conditions were

encouraging in the company.

During the first week, it was totally a new experience entering into the organization. On the

first day of the training, Mr. Arabindo Patro, Junior Manager (HR) detailed us very clearly

about the company & guidelines to be followed with respect to maintaining the discipline of

the organization and also informed the safety measures.

Ten weeks of project training in the company helped me to know the practicalities. I learned

about the policies and procedures of the company. Totally it was a highly useful training for

me in the company. This has added value to my academic learning.

There was good relationship between the superiors and subordinates. I understood the

activities of all the departments.

The success of organization is the result of Co-ordination between the management and

workers.



1.a GENERAL INTRODUCTION

This is a project report on employee job satisfaction at VSL Steels Limited, Paramenahally,

conducted as a part of MBA program with the objective to know the level of employee job

satisfaction at VSL Steels Limited.

Job satisfaction describes how content an individual is with his or her job. The happier people

are within their job, the more satisfied they are said to be.

Influences on job satisfaction include the management style and culture, employee

involvement, empowerment and autonomous work position. Job satisfaction is a very

important attribute which is frequently measured by organizations. The most common way of

measurement is the use of rating scales where employees report their reactions to their jobs.

Questions relate to rate of pay, work responsibilities, variety of tasks, promotional

opportunities, the work itself and co-workers. Measures of job satisfaction are prone to

subjectivity.

Though job satisfaction is difficult to measure and is dependent on a number of factors,

management may reduce levels of dissatisfaction and control workplace conflicts through

common objectives like career development, training, appropriate rewards and improvements

in the quality of working life.

Factors Affecting Job Satisfaction:

The quality of one's relationship with their supervisor.

The quality of the physical environment in which they work.

Degree of fulfilment in their work.

Demographic traits (age, education level, tenure, position, marital status, years in

service, and hours worked per week) of employees.

Inability of the employer to select qualified workers for the job.

Lack of communications.

Lack of job definitions.

Level of participation.

Having the decision making power.

Achievement and recognition at work.



Management policy,

Relations with the managers and colleagues

Job security.

Devotion to the job.

Job prestige.

Ethnic and religious orientation.

The difference between the results that the individual desire and that he/she

maintained will affect his/her satisfaction.

Professional status and experience.

The workers usually compare their working conditions with the conditions of the

society, under the variable of social conditions. If the social conditions are worse than

the individual's working conditions, then this will result in satisfaction of the

individual, as the workers deem themselves relatively in good position.

Since job satisfaction is subjective to individual experience and expectation,

personality often plays an influential role. Stable personality traits could influence

satisfaction or dissatisfaction at work. Type A personalities tend to be more

aggressive, set high standards for themselves and therefore are more susceptible to job

dissatisfaction. In contrast, Type B’s seem to be more relaxed and, this may reflect on

their attitudes towards work.

THEORIES RELATING TO JOB SATISFACTION

Affect Theory

Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job

satisfaction model. The main premise of this theory is that satisfaction is determined by a

discrepancy between what one wants in a job and what one has in a job. Further, the theory

states that how much one values a given facet of work (e.g. the degree of autonomy in a

position) moderates how satisfied/dissatisfied one becomes when expectations are/aren’t met.

When a person values a particular facet of a job, his satisfaction is more greatly impacted

both positively (when expectations are met) and negatively (when expectations are not met),

compared to one who doesn’t value that facet. To illustrate, if Employee A values autonomy

in the workplace and Employee B is indifferent about autonomy, then Employee A would be

more satisfied in a position that offers a high degree of autonomy and less satisfied in a

position with little or no autonomy compared to Employee B. This theory also states that too



much of a particular facet will produce stronger feelings of dissatisfaction the more a worker

values that facet.

Dispositional Theory

Another well-known job satisfaction theory is the Dispositional Theory. It is a very general

theory that suggests that people have innate dispositions that cause them to have tendencies

toward a certain level of satisfaction, regardless of one’s job. This approach became a notable

explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over

time and across careers and jobs. Research also indicates that identical twins have similar

levels of job satisfaction.

A significant model that narrowed the scope of the Dispositional Theory was the Core Self-

evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that there are four

Core Self-evaluations that determine one’s disposition towards job satisfaction: self-esteem,

general self-efficacy, locus of control, and neuroticism. This model states that higher levels of

self-esteem (the value one places on his/her self) and general self-efficacy (the belief in one’s

own competence) lead to higher work satisfaction. Having an internal locus of control

(believing one has control over her\his own life, as opposed to outside forces having control)

leads to higher job satisfaction. Finally, lower levels of neuroticism lead to higher job

satisfaction.

Two-Factor Theory (Motivator-Hygiene Theory)

Frederick Herzberg’s Two-Factor Theory (also known as Motivator Hygiene Theory)

attempts to explain satisfaction and motivation in the workplace. This theory states that

satisfaction and dissatisfaction are driven by different factors – motivation and hygiene

factors, respectively. An employee’s motivation to work is continually related to job

satisfaction of a subordinate. Motivation can be seen as an inner force that drives individuals

to attain personal and organizational goals. Motivating factors are those aspects of the job

that make people want to perform, and provide people with satisfaction, for example

achievement in work, recognition, promotion opportunities. These motivating factors are

considered to be intrinsic to the job, or the work carried out. Hygiene factors include aspects

of the working environment such as pay, company policies, supervisory practices, and other

working conditions.


http://en.wikipedia.org/wiki/Two_factor_theory

http://en.wikipedia.org/wiki/Frederick_Herzberg

http://en.wikipedia.org/wiki/Neuroticism

http://en.wikipedia.org/wiki/Neuroticism

http://en.wikipedia.org/wiki/Locus_of_control

http://en.wikipedia.org/wiki/Self-efficacy

http://en.wikipedia.org/wiki/Self-esteem


While Hertzberg's model has stimulated much research, researchers have been unable to

reliably empirically prove the model, with Hackman & Oldham suggesting that Hertzberg's

original formulation of the model may have been a methodological artifact. Furthermore, the

theory does not consider individual differences, conversely predicting all employees will

react in an identical manner to changes in motivating/hygiene factors. Finally, the model has

been criticised in that it does not specify how motivating/hygiene factors are to be measured.

Job Characteristics Model

Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a

framework to study how particular job characteristics impact on job outcomes, including job

satisfaction. The model states that there are five core job characteristics (skill variety, task

identity, task significance, autonomy, and feedback) which impact three critical

psychological states (experienced meaningfulness, experienced responsibility for outcomes,

and knowledge of the actual results), in turn influencing work outcomes (job satisfaction,

absenteeism, work motivation, etc.). The five core job characteristics can be combined to

form a motivating potential score (MPS) for a job, which can be used as an index of how

likely a job is to affect an employee's attitudes and behaviors. A meta-analysis of studies that

assess the framework of the model provides some support for the validity of the JCM.

CONTENT THEORIES

Maslow (1954) outlined the most influential of content theories. He suggested a hierarchy of

needs up which progress. Once individuals have satisfied one need in the hierarchy, it ceases

to motivate their behaviour and they are motivated by the need at the next level up the

hierarchy.

1. Physiological needs such as hunger and thirst are the first level on the hierarchy.

2. Security needs such as shelter and protection are the next level.

3. Social needs such as need for satisfactory and supportive relationships are the next level.

4. From these needs, the individual can move up the hierarchy to higher order needs. Self

esteem needs for recognition and a belief in oneself is the next level.

5. Finally, the progression leads to the need to realize one’s full potential, which is termed

self – actualization. Only a small proportion of the population achieves this level. This theory

was not intended as an explanation of motivation in the workplace; however, many

managerial theorists have enthusiastically adopted it. The theory suggests that employees will

always tend to want more from their employers. When they have satisfied their subsistence


http://en.wikipedia.org/wiki/Meta-analysis

http://en.wikipedia.org/w/index.php?title=Job_Characteristics_Model&action=edit&redlink=1


needs, they strive to fulfil security needs. When jobs are secure they will seek ways of

satisfying social needs and if successful will seek the means to the ultimate end of self –

actualization.

Alderfer (1972) suggests that individual needs can be divided into three groups:

1. Existence needs, which include nutritional and material requirements (at work this would

include pay and conditions.)

2. Relatedness needs, which are met through relationships with family and friends and at

work with colleagues.

3. Growth needs, which reflect a desire for personal psychological developments. Alderfer’s

theory differs from Maslow in a number of important respects. Alderfer argued that it was

better to think in terms of a continuum rather than a hierarchy; from concrete existence needs

to least concrete growth needs and argued that you could move along this in either direction.

Maslow argued that when satisfied a need becomes less important to an individual, but

Alderfer argues that relatedness or growth needs become more important when satisfied. This

means that team - working arrangements can continue to motivate employees and are not

necessarily superseded by growth needs.

Mumford (1976) argues that workers have:

1. Knowledge needs, work that utilizes their knowledge and skills.

2. Psychological needs, such as recognition, responsibility, status and advancement.

3. Task needs, which include the need for meaningful work and some degree of autonomy.

4. Moral needs, to be treated in the way that employers would themselves wish to be treated.

Mumford’s assumption was that employees did not simply see their job as a means to an end

by had needs which related to the nature of their work.

Hertzberg (1959) presented a two – factor theory, which looks at motivators and hygienes

and proposed that job satisfaction and dissatisfaction appeared to be caused by two sets of

different factors. The presence of motivators in the workplace caused enduring states of

motivation in employees but their absence did not lead to dissatisfaction. Hygiene on the

other hand produced an acceptable working environment but did not increase satisfaction –

their absence did however cause job dissatisfaction.



Motivators Hygienes

Responsibility Supervision

Recognition Salary

Promotion Work environment

Achievement Company policies

Intrinsic aspects of the job Relationship with colleagues

This theory suggests how people’s jobs can be redesigned to incorporate more motivators.

Process theories

What all process theories have in common is an emphasis on the cognitive processes in

determining his or her level of motivation.

Equity theory

Equity theory assumes that one important cognitive process involves people looking around

and observing what effort other people are putting into their work and what rewards follow

them. This social comparison process is driven by our concern for fairness and equity.

Research by Adams (1965) and others confirms equity theory as one of the most useful

frameworks for understanding work motivation.

Valence, instrumentality and expectancy (VIE) theory

VIE theory had resulted from Vroom’s (1964) work into motivation. His argument was that

crucial to motivation at work was the perception of a link between effort and reward.

Perceiving this link could be thought of as a process in which individuals calculated first

whether there was a connection between effort and reward and then the probability (valences)

would follow from high performance (instrumentality.) The motivational force of a job can

therefore be calculated if the expectancy, instrumentality and valence values are known. The

individual’s abilities, traits, role perceptions and opportunities attenuate the motivational

force. The main contribution of both types of process theory has been to highlight the effects

of cognitive and perceptual processes on objective work conditions. It suggests that managers

need to pay attention to four main aspects of their subordinate’s perceptions:

1. Focus on the crucial expectancy values (the link between effort and their performance.)

2. Managers should determine what outcome employee values.

3. They need to link the reward that subordinates value to their performance.

4. Managers need to ensure that wage rates are not perceived as



Measuring job satisfaction

There are many methods for measuring job satisfaction. By far, the most common method for

collecting data regarding job satisfaction is the Likert scale (named after Rensis Likert).

Other less common methods of for gauging job satisfaction include: Yes/No questions,

True/False questions, point systems, checklists, and forced choice answers.

Results of job satisfaction

Better Performance

Less Absenteeism

Reduced Turnover

Low costs

Reduced conflicts

Better employer-employee relationships

Job satisfaction v/s Performance

There is no strong acceptance among researchers, consultants, etc., that increased job

satisfaction produces improve job performance. Improved job satisfaction can sometimes

decrease job performance. For example, you could let workers sometime sit around all day

and do nothing. That may make them more satisfied with their "work" in the short run, but

their performance certainly doesn't improve. The individual's willingness to get a result,

his/her endeavour and expectation of maintaining the result will push him/her to show the

highest performance.


http://en.wikipedia.org/wiki/Rensis_Likert

http://en.wikipedia.org/wiki/Likert_scale


STATEMENT OF THE PROBLEM

Performance of an organization partly depends on the job satisfaction level of employees. If

the employees are content with different aspects affecting their job and life, their performance

may improve leading to the progress of the organization. Any dissatisfaction can spoil the

work environment and hence lead to problems like low productivity, absenteeism, conflicts

among employees, turnover, etc. Hence a study has been conducted to understand level of job

satisfaction and to suggest corrective measures.

OBJECTIVES OF THE STUDY

To identify the factors which influence the job satisfaction of employees.

To find out the level of job satisfaction among employees at VSL Steels Limited,

Paramenahally.

To understand and specify the areas in which workers feel satisfied and dissatisfied at

VSL Steels Limited.

To come out with solutions to enhance employees’ job satisfaction at VSL Steels

Limited, Paramenahally.

SCOPE OF THE STUDY

This study was to find out the level of employees’ job satisfaction at VSL Steels Limited,

Paramenahally. This study covers 50 employees of almost all departments’ employees at

VSL Steels Limited. It covers those employees at supervisory and below-supervisory level.

Employees above the supervisory level are not considered for the study.



METHODOLOGY

Type of research: Descriptive Research is conducted to describe the state of view as it is at

present. It is a fact finding investigation. Definite conclusions can be arrived at using this

kind of research method.

Sample type: Probability sampling was used to get the required sample amongst population

of 200 employees where each element has a known chance of being selected. The group of

employees selected for sampling were supervisory and below-supervisory level employees.

Data collection:

Primary data is collected from employees at supervisory and below-supervisory level using

questionnaire. The questionnaire consists of 21 closed-ended questions.

Secondary data is collected from company employees, various web sites and text books.

Procedure:

A questionnaire with 21 closed-ended questions is prepared. It was a five-point scale

questionnaire. Respondents had to tick one out of five options given – Strongly Agree, Agree,

Neutral, Disagree, and Strongly Disagree – to all statements. This is done to make it easier

for the respondents to fill up the questionnaire and hence to increase the response rate.

The number of supervisory and below-supervisory level employees at VSL Steels Limited is

found 200. There are 18 departments. Out of them, 10 departments where there are relatively

more number of workers are working are chosen. 100 questionnaires were distributed to

departmental heads and directly to employees depending on the convenience. The response

rate was 57%. 7 questionnaires are randomly picked out of the sample to keep the sample size

at 50.

Data collected is tabulated, pie charts showing percentages of each kind of response are

drawn for each statement, and the employees’ satisfaction levels for the issues in the given

statements are analysed.



LIMITATIONS OF THE STUDY

Since the study is conducted on sample and not on whole population, there will

definitely be sampling errors.

Most of the employees were worried about the confidentiality of the information

given by them and hence they might not have made prompt reply to all the questions

being asked.

Most of the lower level employees are illiterates and hence they were unable to

understand the questionnaire properly.

I faced problem while getting reply from those people who know Hindi only since I’m

not good in Hindi.

Time constraint, as only ten weeks were allotted for the study.



1.b ANALYSIS, INTERPRETATIONS AND FINDINGS

ANALYSIS AND INTERPRETATIONS

1. I identify myself with my company and its goals.

Table 1.b.1: Number of employees identifying themselves with their company and its goals.

Sl. No. Particulars Frequency Percentages (%)

1 Strongly Agree 28 562 Agree 16 323 Neutral 6 124 Disagree 0 05 Strongly Disagree 0 0

Total 50 100

Chart 1.b.1: Number of employees identifying themselves with their company and its goals.

Strongly Agree56%Agree

32%

Neutral12%

Interpretation:

We can see that 56% of the employees strongly agree, 32% of the employees agree and

remaining 12% of the employees are neutral about the statement.

Hence, we can say that majority of the employees identify themselves with their company

and its goals.



2. The workplace is neat and clean.

Table 1.b.2: Neatness and cleanliness of the workplace in the eyes of employees.

Sl. No. Particulars Frequency

Percentages (%)

1 Strongly Agree 24 482 Agree 22 443 Neutral 4 84 Disagree 0 05 Strongly Disagree 0 0Total 50 100

Chart 1.b.2: Neatness and cleanliness of the workplace in the eyes of employees.

Strongly Agree48%

Agree44%

Neutral8%

Interpretation:



Hence, we can conclude that almost all the employees are satisfied with the cleanliness of the

workplace.

3. The workplace is safe and adheres to safety norms.



Table 1.b.3: Employees’ opinion about the safety in their workplace.


Percentages (%)


Chart 1.b.3: Employees’ opinion about the safety in their workplace.

Strongly Agree60%

Agree36%

Disagree4%

Interpretation:


remaining 4% of the employees disagree with the statement.

Hence, we can say that almost all the employees think that their workplace is safe and

adheres to safety norms.

4. I’m doing the work that I had expected to do.



Table 1.b.4: Employees’ responses about whether they are doing the same work that they

had expected to do.


Percentages (%)


Chart 1.b.4: Employees’ responses about whether they are doing the same work that they

had expected to do.

Strongly Agree56%Agree

32%

Neutral4% Disagree

8%

Interpretation:

We can see that 56% of the employees strongly agree, 32% of the employees agree, 4% of

the employees neither agree nor disagree and remaining 8% of the employees disagree with

the statement.

Hence, we can say that majority of the employees feel that they are doing the same work that

they had expected to do.

5. I feel that I have ample opportunities to learn and grow.



Table 1.b.5: Employees’ feeling about the opportunities to learn and grow in their

organization.


Percentages (%)


Chart 1.b.5: Employees’ feeling about the opportunities to learn and grow in their

organization.

Strongly Agree44%

Agree44%

Neutral12%

Interpretation:



Hence, we can say that almost all the employees agreed that they have ample opportunities to

learn and grow.

6. I have good relationship with my co-workers.



Table 1.b.6: Goodness of the relationship of employees with their co-workers.


Percentages (%)


Chart 1.b.6: Goodness of the relationship of employees with their co-workers.

Strongly Agree76%

Agree24%

Interpretation:

We can see that 76% of the employees strongly agree and 24% of the employees agree with

the statement.

Hence, we can conclude that employees’ relationship with their co-workers is very good at

VSL Steels Limited.

7. My work is recognised by the company and co-workers.



Table 1.b.7: Employees’ feeling about whether their work is recognised by their company

and co-workers.


Percentages (%)


Chart 1.b.7: Employees’ feeling about whether their work is recognised by their company

and co-workers.

Strongly Agree60%

Agree32%

Neutral4%

Disagree4%

Interpretation:


the employees area neutral and remaining 4% of the employees disagree with the statement.

Hence, we can say that majority of the employees feel that their work is recognised by their

company and co-workers.

8. I can make best use of my skills and talents in the work given to me.



Table 1.b.8: Employees’ feeling about whether they can make best use of their skills and

talents in the work given to them.


Percentages (%)


Chart 1.b.8: Employees’ feeling about whether they can make best use of their skills and

talents in the work given to them.

Strongly Agree76%

Agree20%

Neutral4%

Interpretation:



Hence, we can conclude that almost all the employees feel that they can make best use of

their skills and talents in the work given to them.

9. Management involves me while making decisions which are connected to our

department.



Table 1.b.9: Level of involvement of employees while making decisions related to their

department.


Percentages (%)


Chart 1.b.9: Level of involvement of employees while making decisions related to their

department.

Strongly Agree16%

Agree60%

Neutral4%

Disagree16%

Strongly Disagree4%

Interpretation:


the employees are neutral, 4% of the employees disagree and the remaining 16% of the

employees strongly disagree with the statement.

Hence, we can say that majority of the employees agree that they are involved while making

decisions relating to their department.

10. I am comfortable with timings of our company.

Table 1.b.10: Comfort of employees with timings of their company.




Percentages (%)


Chart 1.b.10: Comfort of employees with timings of their company.

Strongly Agree68%

Agree16%

Neutral12%

Disagree4%

Interpretation:


the employees are neutral and remaining 4% of the employees disagree with the statement.

Hence, we can conclude that majority of employees are satisfied with the timings of the

company.

11. I have given the resources I need to successfully do my job.



Table 1.b.11: Employees’ satisfaction towards the resources given to them to successfully do

their jobs.


Percentages (%)


Chart 1.b.11: Employees’ satisfaction towards the resources given to them to successfully do

their jobs.

Strongly Agree64%

Agree28%

Neutral4%

Disagree4%

Interpretation:


the employees area neutral and remaining 4% of the employees disagree with the statement.

Hence, we can say that majority of the employees are satisfied with the resources given to

them to successfully do their jobs.

12. I have enough autonomy to take decisions at my work.



Table 1.b.12: Belief in employees about the autonomy they have to take decisions at their

work.


Percentages (%)


Chart 1.b.12: Belief in employees about the autonomy they have to take decisions at their

work.

Strongly Agree48%

Agree32%

Neutral12%

Disagree8%

Interpretation:



Hence, we can say that majority of the employees feel that they have enough autonomy while

taking decisions at their work.

13. I am satisfied with my salary & other benefits.



Table 1.b.13: Satisfaction in employees towards their salary and other benefits.


Percentages (%)


Chart 1.b.13: Satisfaction in employees towards their salary and other benefits.

Strongly Agree12%

Agree32%

Neutral24%

Disagree32%

Interpretation:


the employees are neutral and remaining 12% of the employees are disagreed about the

statement.

Less than half of the employees are satisfied with their salary and other benefits given to

them in their organization. A large number of employees are dissatisfied with their salary and

other benefits followed by a quarter being neutral.

14. I am satisfied with the transport facility of my company.



Table 1.b.14: Satisfaction in employees about the transport facility of their company.


Percentages (%)


Chart 1.b.14: Satisfaction in employees about the transport facility of their company.

Strongly Agree52%

Agree44%

Disagree4%

Interpretation:


the employees disagree with the statement.

Hence, we can say that most of the employees are satisfied with the transportation facility

provided by the company.

15. Training and development provided in this organization is effective.



Table 1.b.15: Belief in employees about the effectiveness of the training and development

provided in their organization.


Percentages (%)


Chart 1.b.15: Belief in employees about the effectiveness of the training and development

provided in their organization.

Strongly Agree16%

Agree52%

Neutral4%

Disagree28%

Interpretation:



Hence, we can say that many of the employees are satisfied with the training and

development facilities provided by the organization. Even though, a considerable number of

employees are dissatisfied with the training and development facilities provided by the

organization.

16. All the employees are treated equally.



Table 1.b.16: Feeling of employees about whether they are treated equally.


Percentages (%)


Chart 1.b.16: Feeling of employees about whether they are treated equally.

Strongly Agree60%

Agree16%

Neutral8%

Disagree4%

Strongly Disagree12%

Interpretation:



employees are strongly disagree with the statement.

Even though majority of the employees are feeling that all the employees are treated equally,

still a considerable number of employees are feeling that they are not treated equally.

17. I find my job repetitive and boring.



Table 1.b.17: Feeling of employees about whether their job is repetitive and boring.


Percentages (%)


Chart 1.b.17: Feeling of employees about whether their job is repetitive and boring.

Strongly Agree24%

Agree36%Neutral

4%

Disagree20%

Strongly Disagree16%

Interpretation:




Hence, we can conclude that more than half of the employees felt their job repetitive and

boring.

18. My superior encourages my development.



Table 1.b.18: Level of satisfaction employees have towards their superiors’ encouragement

for their development.


Percentages (%)


Chart 1.b.18: Level of satisfaction employees have towards their superiors’ encouragement

for their development.

Strongly Agree68%

Agree24%

Neutral4%

Disagree4%

Interpretation:



Almost all the employees feel that their superiors encourage their development. Hence, we

can say that supervisor-subordinate relationship is very good at VSL Steels Limited.

19. I feel a sense of job security in this organization.



Table 1.b.19: Level of sense of job security employees have in this organization.


Percentages (%)


Chart 1.b.19: showing the level of sense of job security employees have in this organization.

Strongly Agree36%

Agree48%

Neutral12%

Disagree4%

Interpretation:


the employees are neutral and remaining 4% of the employees are disagreed about the

statement.

Majority of employees feel that their job is secure at VSL Steels Limited. This helps

employees in performing their duties peacefully. Still, some people are not shore whether

their job is secure.

20. I’m satisfied with my present work.



Table 1.b.20: Level of satisfaction in employees towards their work.


Percentages (%)


Chart 1.b.20: showing the level of satisfaction in employees towards their work.

Strongly Agree; 64Agree; 20

Neutral; 12

Disagree; 4

Interpretation:



Hence, we can say that majority of the employees are satisfied with the job they are doing.

21. I want to continue in this organization.



Table 1.b.21: Number of employees willing to continue in their organization.


Percentages (%)


Chart 1.b.21: Number of employees willing to continue in their organization.

Strongly Agree52%

Agree16%

Neutral16%

Disagree12%

Strongly Disagree4%

Interpretation:




Even though the number of employees wishing to continue in the organization is more, a

considerable number of employees are ready to quit if they get better opportunity. This needs

to be taken care to enhance employees’ loyalty towards the organization and hence to reduce

the cost of recruitment, training, etc.

FINDINGS

88% of the employees identify themselves with the company and its goals.



92% of the employees agree that the workplace is neat and clean.

96% of the employees felt that the workplace is safe and adheres to safety norms.

88% of the employees are doing the work that they had expected to do and felt that

they have ample opportunities to learn and grow in the organization.

All the employees have good relationships with their co-workers.

92% of the employees felt that their work is recognised by their company and co-

workers and they can make best use of their skills and talents in the work given to

them.

76% of the employees told that management involves them while taking decisions

relating to their department. 20% of the employees expressed that management does

not involve them while taking decisions relating to their department.

84% of the employees are comfortable with the timings of the company.

90% of the employees felt that they have given the resources necessary to do their job.

80% of the employees felt that they have enough autonomy to take decisions at work.

Only 42% of the employees are satisfied with the salary and other benefits provided

by the company. 32% of the employees are dissatisfied with their salaries and other

benefits.

96% of the employees are satisfied with the transportation facility of the company.

68% of the employees felt that training and development facilities provided by the

company are effective. 28% of the employees felt that training and development

facilities provided by the company are ineffective.

76% of the employees felt that all the employees are treated equally. 16% of the

employees felt that all the employees are not treated equally.

Only 36% of the employees didn’t find their job repetitive and boring. 60% of the

employees found their job repetitive and boring.

92% of the employees told that their superiors encourage their development.

84% of the employees felt a sense of job security in this organization.

84% of the employees are satisfied with their present work.

Only 68% of the employees want to continue in this organization. 16% of the

employees are very eager to quit the organization.

1.c CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS



Most of the employees of VSL Steels Limited are satisfied with most of the factors

mentioned in the questionnaire. This means, the level of employee job satisfaction is

quite high at VSL Steels Limited.

Employees are identifying themselves with the company and its goals.

Almost all the employees agree that the work place is neat and clean.

Employees are satisfied with the safety measures taken by the company.

They think that they have ample opportunities to grow.

They have really very good relationships with their co-workers.

Lower level employees are also sometimes involved while taking decisions relating to

their departments.

Employees are satisfied with the resources provided to them to successfully do the

job.

Employees are encouraged by their superiors. This shows that employer-employee

relationship is good at VSL Steels Limited.

Most of the employees feel that their job is secure.

Employees are satisfied with their present work.

But, still some factors are causing dissatisfaction among employees.

A big number of employees have dissatisfaction regarding their salary and other

benefits provided by the employer.

Many people are not happy with the training and development facilities provided by

the organization. Hence, it is very essential to assess the training needs of the

employees and to provide them with required training. Training the employees to

make them competent enough in this dynamic world is very crucial in the long term

success of the organization.

Some of the employees think that they are not treated equally.

Nearly half of the employees are bored by their work and felt that their job is

repetitive. Hence, it is very essential to take measures to make employees feel their

job non-repetitive and not boring.

RECOMMENDATIONS

The company needs to maintain the prevailing level of satisfaction among employees

towards those factors by which employees are pleased.



Since most of the employees are not satisfied with their salary, company can go for

salary revision.

Salary surveys need to be conducted properly to ensure that the salaries paid to

employees are in par with that of the industry.

Since many employees are not happy with the training and development facilities

provided by the organization, it is very essential to assess the training needs of the

employees and to provide them with required training.

Since many of the employees found their repetitive and boring, it is very essential to

redesign their jobs.

Many of the employees are eager to quit the organization and it needs to be taken care

in order to avoid turnover and hence to avoid related losses.

1.d ANNEXURE

Questionnaire on Employee Job Satisfaction



I am Naveen Babu D, studying MBA at Acharya Institute of Technology, Bangalore,

conducting a research on “Employee Job Satisfaction” as part of my academics. I will be very

thankful to you if you can spend few minutes of your valuable time in filling this

questionnaire. Data collected will be kept confidential and used for academic purpose only.

Name (optional): ___________________

Department: ___________

Designation: ___________

Experience:___________

Mark the following statements using the following keys:

Strongly Agree (SA)

Agree (A)

Neither Agree nor Disagree (NAND)

Disagree (D)

Strongly Disagree (SD)



1.e BIBLIOGRAPHY


Sl. No. Statements SA A NAND D SD

1 I identify myself with my company and its goals.

2 The work place is neat and clean.

3 The workplace is safe and adheres to safety norms

4 I’m doing the work that I had expected to be.

5 I feel that I have ample opportunities to learn and

grow.

6 I have good relationship with my co-workers.

7 My work is recognised by the company and co-

workers.

8 I can make best use of my skills and talents in the

work given to me.

9 Management involves me while making decisions

which are connected to our department.

10 I am comfortable with timings of our company.

11 I have given the resources I need to successfully

do my job.

12 I have enough autonomy to take decisions at my

work.

13 I am satisfied with my salary & other benefits.

14 I am satisfied with the transport facility of my

company.

15 Training and development provided in this

organization is effective.

16 All the employees are treated equally.

17 I find my job repetitive and boring.

18 My superior encourages my development.

19 I feel a sense of job security in this organization.

20 I’m satisfied with my present work.

21 I want to continue in this organization.


Text Books

Research Methodology, C.R. Kothari, Revised Second Edition, New Age

International Publishers, 2004.

Organization Behaviour, K. Ashwathappa, 8th Revised Edition, Himalaya

Publications, 2009.

Human Resource Management by VSP Rao, Second Edition, Excel Books, Second

Edition, 2005.

Websites

www.steel.nic.in

www.economywatch.com

www.worldsteel.org

www.vslsteels.in

www.managementhelp.org

www.mbaclubindia.com

www.mindtools.com

www.tradechakra.com


http://www.worldsteel.org/

http://www.economywatch.com/business-and-economy/steel-industry.html

http://www.steel.nic.in/

Documents

Vtu Hr Project on Employee Job Satisfaction