A

Paper on

Bringing Cultural Shift in BSL through Innovation and Creativity

To

Thrive in the Business

Ujjwal Verma (Sr. Mgr, PEB)

Sushant Mishra (Mgr, PEB)
Karam Chand (Dy. Mgr, PEB)
 ACKNOWLEDGEMENT

We take this opportunity to express our profound gratitude and deep regards to our HOD Sh. KK
Thakur (CGM Maintenance & PF), Sh. D Roy (GM PEB), Sh KB Pandey (GM PEB) for their
exemplary guidance and constant encouragement throughout the course of this project.

We also take this opportunity to express a deep sense of gratitude to other senior officers, our
colleagues and BSL employees for their cordial support, valuable participation in our survey and
guidance, which helped us in giving final shape to this paper.

Last but not the least; we are also thankful to our family and friends who have supported us
empathically throughout the preparation of this project.

Ujjwal Verma

Sushant Mishra

Karam Chand

Page 2
 ABSTRACT

SAIL as an organization is facing huge challenges in the form of turbulent market conditions and
stiff competition in Indian and International market. Being a PSU, it has its own strengths and
weaknesses. Bokaro Steel Plant being a unit of SAIL also requires a relook at its Core
Competencies to excel in the business. This paper is a sincere effort of ours in response to
Director In charge’s trophy theme “Bringing Cultural shift in BSL through innovation and
creativity to thrive in business” for F. Y. 2020-21 aiming to add value for our organization. We
have tried to find out enablers of cultural change through collection of primary data in form of
survey questionnaire, interviews with senior members of the management and relevant case
studies of steel industry. We have formulated certain creative and innovative recommendations
customized for BSL which are based on the responses received and their analysis to emulate
flexibility and competitiveness in our cultural framework. We have to be innovative, customer
centric and responsive to market forces of demand and Supply. Also we need to improve job
satisfaction level amongst employees with a more individualistic approach.

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 INDEX

Acknowledgment ii

Abstract iii

Chapter 1: Overview of BSL organizational culture 1-4

1.1 Introduction to BSL Company Profile 1

1.2 What is organizational culture? 2

1.3 Salient features of BSL Culture 2

1.4 Strengths and Weaknesses of BSL 3

1.5 Why do you need a cultural shift?? 3

Chapter 2: Literature Review 5-7

2.1 Organizational culture components 5

2.2 Studying organizational culture through CVF 6

Chapter 3: Research Methodology 8-9

3.1 Objective 8

3.2 Sample Size 8

3.3 Construction of Questionnaire 9

Chapter 4: Result and Discussion 10-12

4.1 Data Analysis 10

4.2 Graphical Presentation 11

Chapter 5: Recommendations 13-21

5.1 Bringing in the spirit of competition 13

5.2 Bringing a culture of adhocracy 15

5.3 Improving the Clan Culture 19

5.4 Increasing flexibility in the HIERARCHICAL CULTURE 20

5.5 Communication: Emphasis on feedback 20

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 5.6 Suggestions to create a positive impact in working atmosphere of BSL 21

Chapter 6: Conclusions 22

References

Annexure I

Annexure II

Annexure III

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 List of Exhibits
Exhibit 1.1 Edgar Schein “Coming to a new awareness of organisational culture”

Exhibit 2.1 Competing Values Framework Model

Exhibit 3.1 Characteristics of Study

Exhibit 3.2 Classification of Question

Exhibit 4.1 The overall cultural profile of Bokaro Steel Plant

Exhibit 4.2 Comparison of culture profiles

Exhibit5.1 Survey Response of customer relationship

Exhibit 5.2 Introduction of Brand Referral Schemes

Exhibit 5.2 Vein Diagram depicting training effectiveness for a job

Exhibit 5.3 Narrative circulating in the organization form the basis of ownership, involvement
and optimistic empowerment

Exhibit 5.5 Power Swap promotes empathy and learning

Exhibit 5.5 Grouping similar functioning departments laterally in different SAIL Units

Exhibit 5.6 Care for Mental Health of an employee leads to his optimum utilization and sense of
satisfaction

Exhibit 5.7: Culture shift-in feedback

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Chapter 1: Overview of BSL Organizational culture

1.1 Introduction to the first Swadeshi steel plant, BSL.

Bokaro Steel Plant (BSL) is one of the five integrated steel manufacturing plants of the steel
conglomerate Steel Authority of India (SAIL). SAIL is a steel manufacturing firm of national
importance and is designated as a MAHARATNA under the aegis of Steel Ministry of India.
Since its inception in 1964, Bokaro Steel Plant has been a jewel in the crown of SAIL and is
responsible for efficiency in steel production both in terms of quantity and quality. It is an ISO
9000, 14000 certified firm accredited with EMS and OHSAS certifications too.

SAIL has reported a net sales revenue of Rs. 61025 crores in FY 2019-20 with contribution of
around Rs.13400 crore from Bokaro Steel Plant. SAIL manufactures steel plates, sheets, rails,
alloy wheels etc of specialized grades. Company is looking to ramp up its production capacity
by 100% within next 5 years7.

BSL 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 steel Plant provides steel for a variety of
modern engineering industries including automobile, pipe and tube, LPG cylinder, barrel and
drum producing industries.

The manpower strength of BSL is 11368 on-roll employees (1881 executives and 9487 non-
executives). BSL has registered hot metal production of 4.21 MT and saleable steel production
of 4.02MT in FY 18-19 and has contributed to 40% bottom-line of SAIL. The company is
expected to grow at a rate of over 15% CAGR for next 5 years8.

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1.2 What is Organizational Culture?

Organizational culture is the set of shared philosophies, assumptions, values, expectations,

attitudes and norms which bind an organization together. It helps a company to implement its
strategies effectively (Wilkins and Ouchi, 1983)

Cultures basically spring from three sources, (1) the beliefs, values, and assumptions on
founders of organization; (2) the learning experiences of group members as their organization
evolves; and (3) new beliefs, values, and assumptions brought in by new members and leaders
(Schein, 2004).

Exhibit 1.1 Edgar Schein “Coming to a new awareness of organisational culture”

1.3 Salient features of BSL culture

 Stated vision and values (Definite Purpose)

 Role based organization (Specialized Skill)
 Adequate manpower but gaps in utilization (higher working stress, inadequate
development etc)
 Strong laid down procedures (Difficult to change)
 Slow and Procedural Decision Making leading to delayed execution of Projects (lesser
productivity, Higher Costs)
 Lack of product differentiation (Absence of Value Proposition for the customer)

1.4 Strengths and Weaknesses of BSL

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Strengths

 Large organization with adequate infrastructure and space availability

 Bank of experienced manpower with high degree of technical knowhow.
 Well defined procedures for each and every task
 Low attrition rate
 Well established market reputation with extensive network

Weaknesses

 Adverse age profile (Higher proportion of Population is 45+. Rigidity in approach)

 Stringent regulations: Decision making is slow. Public money is involved and hence
control and fear of external agencies CVC , CBI and CAG can be felt in decision
making throughout plant
 Lack of ownership: Static Risk Reward equation, Power structure defined
 Wide organization structure: communication requires customized solution for different
departments
 Gaps in Interdependencies
 Low attention towards Individual care

1.5 Why do we need a cultural shift??

Historically, the major consideration for the setting up of PSU was to accelerate the growth
and economy of a nascent nation. PSU were formed to fulfill the requirement of entire value
chain of critical structures. Apart from the economic agenda PSU also were meant to fulfill and
develop the lives of poor masses of the newly independent country. Most of the strategic
sectors PSU’s have enjoyed monopoly in market for quiet a period of time. However, with the
advent of globalization and economic liberalization in early 1990’s PSU were exposed to the
vagaries of competition and changes in global economy. The major focuses of successful steel
companies of future are6, 12:

 Be innovative in approach to be customer centric, think win-win

 Embrace new technologies (Advent of Industry 4.0)
 Be internationally cost competitive
 Remain financially viable
 Form strategic partnerships and joint ventures to achieve greater flexibility than the
companies of the past.
 Be open to Stringent environmental regulations for sustainable development and
greater credibility

Also, in line with national steel policy 2017 which envisages 300MT output of steel in 2030,
SAIL aims to reach production level of 50MT Hot metal in 2025. This means more than
doubling the capacity in another five years which is a difficult goal in view of the company’s
current financial condition and the prevailing uncertainties of COVID-19. The challenging
target, therefore calls for a strategic shift in all our activities including cultural shift.

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HBR in its 2013 study has shown that change is brought in an organization through two means:
1. Strategy Change (Short term impact in organizational perspective)
2. Culture change (Long term change in organizational perspective)

"Culture eats strategy for breakfast."

Peter Drucker
Management consultant, educator, and author.

This implies that the culture of an organization always determines success regardless of how
effective your strategy may be. Through this statement, Drucker pointed out the importance of
the human factor in any organization. No matter how detailed and solid the strategy is, if the
people executing it don't nurture the appropriate culture, the strategic plans will fail. While
strategy defines direction and focus, culture is the habitat in which strategy lives or dies.
Strategy focuses on resourcefulness and skillfulness, while culture defines engagement,
passion, and execution. With proper strategy, you create the rules for playing, but culture
determines the way the game will be played.

Therefore along with the need to constantly direct our strategies towards excellence in BSL,
we should also develop a culture that catapults us to success.

Chapter 2: Literature Review

We have gone through extensive material on study of organizational culture and have found
two tools suited for putting forward our case. They are:

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  Organizational Culture components by HBR, June 2013
 CVF (Competing values framework) by professors Robert E. Quinn and Kim S.
Cameron at the University of Michigan, February 1999

2.1 Organizational Culture components

Harvard Business Review (HBR) is a general management magazine published by Harvard

Business Publishing, a wholly owned subsidiary of Harvard University. HBR is published six
times a year and is headquartered in Brighton, Massachusetts. HBR in 201313 has laid down six
major components that actually shape up an organizational culture. These components are
described below for BSL.

2.1.1 Vision: A great culture starts with a vision or mission statement. These simple turns of
phrase guide a company’s values and provide it with purpose. That purpose, in turn, orients
every decision employees make. Vision Statement of SAIL is

“To be
A respected
world-class corporation
and the leader in Indian steel business
in quality, productivity, profitability and customer satisfaction”.

2.1.2 Values: Values form the core of organizational culture. While a vision articulates a
company’s purpose, values offer a set of guidelines on the behaviors and mindsets needed to
achieve that vision. Credo of our Organization SAIL is documented as follows:

 We build lasting relationships with customers based on trust and mutual benefit.
 We uphold highest ethical standards in conduct of our business.
 We create and nurture a culture that supports flexibility, learning and is
proactive to change.
 We chart a challenging career for employees with opportunities for advancement
and rewards.
 We value the opportunity and responsibility to make a meaningful difference in
people’s lives.

2.1.3 Practices: Values are of little importance unless they are enshrined in a company’s
practices. If an organization professes, “people are our greatest asset,” it should also be ready
to invest in people in visible ways. And whatever an organization’s values, they must be

5
reinforced in review criteria and promotion policies, and baked into the operating principles of
daily life in the firm. Some of the practices followed at a world class organizations are listed
as:

 Recruit the best and retain them

 Effective training and proper utilization (sense of involvement and ownership among
employees)
 Effective leadership to drive the team towards a specific Goal/Mission.
 Written codes of workplace conduct
 Open Communication among management and employees
 Operational excellence (least wastage and benchmarked with the best in industry)
 Defined and competitive reward structure
 Embrace change to innovate and adapt for generating value in business
 Differentiated product with a USP
 Faster reach to Market

2.1.4 People: No company can build a coherent culture without people who either share its
core values or possess the willingness and ability to embrace those values. That’s why the
greatest firms in the world also have some of the most stringent recruiting policies. People
stick with cultures they like, and bringing on the right “culture carriers” reinforces the culture
an organization already has. This means a company with low attrition rate will have a strongly
reinforced culture

2.1.5 Narrative: Unique story of an organization. They are more powerful when identified,
shaped, and retold as a part of a firm’s ongoing culture. Like for us we feel pride of our tagline
“There is a little bit of SAIL in everybody’s life” which shows the recognition of our brand in
customer’s mind. Narrative creates impression of organization within and outside the
company. Our ringtone “ Har kisi ki zindagi se jhuda hua hai sail” Contribution of SAIL in
national projects like Atal tunnel, Bhupen hazarika setu, staue of unity etc. reaffirms our image
in minds of our citizens.

2.1.6 Place: Place — whether geography, architecture, or aesthetic design — impacts the
values and behaviors of people in a workplace. BSL attracts people from different parts of the
country providing a cosmopolitan mix of ideas and culture.

2.2 Studying Organizational Culture through CVF (Competing Values Framework)

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Every organization is different, and all of them have a unique culture to organize groups of
people. Yet every organization actually combines a mix of four different types of
organizational culture under one leading cultural style, according to research by business
professors Robert E. Quinn and Kim S. Cameron at the University of Michigan2.

They have developed a particular framework named Competing Values Framework (CVF) to
assess six key characteristics of any corporate culture:

 dominant characteristics
 organizational leadership
 management of employees
 organization glue
 strategic emphasis
 criteria of success

An organization rarely has only one culture type. Time and again, there is a mix of the four
organizational cultures dependent upon value system of an organization. The culture mix of an
organization is studied based on CVF model depicted below:

Exhibit 2.1 Competing Values Framework Model

The CVF is based on two major dimensions. The first dimension emphasizes the
organizational focus (internal versus external), whereas the second one distinguishes between
the stability and control and the flexibility and discretion. These two dimensions create four

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quadrants, each representing a major type of organizational culture (see Exhibit 2.1). The
cultural values represented in the four quadrants have existed in the literature (see Cameron
and Quinn, 1999 for detailed information).This gives 360ᵒ view of how organizations function
and what are the elements that shape up its culture.

Chapter 3: Research Methodology

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In this study, Quinn’s OCAI (Organization culture assessment Instrument) is used to diagnose
organizational culture of BSL. We have used this model as it gives a quantitative measure to
represent qualitative criteria. This is an industry accepted tool for assessment of organizational
culture and has been used by 10000 organizations worldwide during last 30 years23.

Our study is based on empirical research using primary and secondary data.

 Primary data is collected through Google survey form by giving questionnaire

responses by the employees.
Link of Google form- https://forms.gle/PoEHC8nNkVv4rSpS8

 Secondary data is taken from various sources like Websites, Books and Journals which
is mention in references.

 Apart from this, we have taken inputs from specific interviews with senior management
(Executives- Grade E6 and above) (Questions present in Annexure 1)

3.1 Objective

The Objective of this research is to study the employee’s perception towards work and other
work related issues in a view to investigate the cultural shift required in BSL to thrive in the
business.

3.2 Sample Size

Exhibit3.1 shows the characteristics of the sample in the study. A total of 80 respondents
from works, non-works and others areas across the plant were approached (Details of the
survey responses are included in Annexure 1). The responses of all respondents are taken for
analysis till 6pm on 14 Sept. 2020.

Exhibit3.1. Characteristics of Study

Sl. No. Characteristics Frequency Percentage

1 Employee Grade cluster
E0-E4 56 70
E5-E7 8 10
E8& Above 1 1
S1-S5 10 12.5
S6-S11 5 6.3
Total 80 100

2 Employee Area of posting

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 Works 72 90
Non-works 7 8.8
Others 1 0.2
Total 80 100

3.3 Construction of Questionnaire

The questionnaire designed of total 25 questions and one miscellaneous question. The
questionnaire comprised of two parts. Part 1 consists of the “Organizational Culture
Assessment Instrument (OCAI)” developed by Cameron and Quinn (1999). The OCAI is based
on a theoretical model titled the “Competing Values Framework”. The “Competing Values
framework is based on six organizational culture dimensions (dominant characteristics,
organizational leadership, management of employees, organizational glue, strategic emphases,
and criteria of success) and four dominant culture types (clan, adhocracy, market, and
hierarchy). The OCAI was chosen because it has been tested and proved to be most practical
and reliable in measuring organizational culture. Exhibit3.2 shows the types of question
related to four dominant organizational cultures.

Exhibit 3.2 Classification of Question

Clan Adhocracy Hierarchy Market

Q4,Q8, Q9,Q15, Q5, Q10, Q13,Q16, Q23, Q3,Q11,Q14,Q18, Q7,Q17, Q20,Q22

Q21 Q24 Q19

Part 2 contains questions regarding personal thoughts and suggestions about organizational
culture of BSL. These questions are designed in such way that employees behavior and
commitment towards plant can be easily observed. Part 2 questions are Q1, Q2, Q6, Q12, Q25
and suggestion question.

The responses of all questions are observed in form of multiple choice question, check box
type question and linear scale of 1-5. The meaning of scale 1 is very low and 5 is very high.
Here, we have also design sub-questions of question no-4, 7, 13 and 20. These sub-questions
are about explaining the reason behind choosing your options on linear scale.

Chapter 4: Results and Discussion

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4.1 Data Analysis- The weightage of four organizational Cultures is measured by mean value
of all responses. The responses are given in Annexure I

1. Clan Culture

Sl.No. Clan Culture Mean

Value
1 Q4 2.71
2 Q8 1.97
3 Q9 3.00
4 Q15 3.21
5 Q21 3.75
Average value 2.93

2. Adhocracy Culture

Sl. No. Adhocracy Mean

Culture Value
1 Q5 2.82
2 Q10 3.20
3 Q13 2.30
4 Q16 2.97
5 Q23 3.48
6 Q24 1.93
Average Value 2.78
3. Hierarchy culture

Sl. No. Hierarchy Mean

Culture Value
1 Q3 2.74
2 Q11 2.29
3 Q14 4.00
4 Q18 3.72
5 Q19 3.74
Average Value 3.30

4. Market Culture

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Sl. No. Market Culture Mean
value
1 Q7 2.18
2 Q17 2.54
3 Q20 3.40
4 Q22 3.17
Average Value 2.82

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4.2 Graphical Presentation: Now, we have mean values of four organizational cultures.
Above data is used to plot the graph.

Exhibit 4.1- The overall cultural profile of Bokaro Steel Plant

Exhibit4.1 shows a graphical presentation of the mean scores in each of the four culture
types. As is seen from the figure, the sampled firm tends to have values consistent with
employee focus or clan culture and internal process or hierarchy culture. The values
consistent with external orientation and results focus are emphasized to a lesser extent.

Exhibit4.2- Comparison of culture profiles

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 In Exhibit4.2, The Actual curve is plotted by data received in questionnaire. The
Expected curve is plotted by suggestions responses in our questionnaire and culture profile
results of other famous organization. The ideal result of mean value is 3. Every good
organization always has culture components trending towards 4.

Exhibit4.2 shows that we should increase adhocracy culture and market culture to reach
expected curve and some of change is required in Clan and Hierarchy culture.

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Chapter 5: Recommendations

In our research, which has employed the CVF framework for analyzing the culture in BSL, it
was found that the most dominant culture in BSL is Hierarchial Type where control of the
organization lies in the rigid structure of the constitution and the laid down procedure. The clan
and adhocracy cultures are the next dominating cultures here. People have low concern of
market in BSL.

For bringing financial prosperity emphasis on customer and their needs is of prime importance
for mutual gain. Although, we have found that employees have good relationship with their
internal customers (survey Annexure 1, Question# 21) but there is general ignorance about the
external market dynamics and product demand. People find that they have no role in
influencing the market and therefore have no interest in developing entrepreneurial leadership.

Exhibit5.1- Survey Response of customer relationship

Complacency sets into people’s attitude when they strongly feel that they alone cannot bring a
change in the organization. The survey response (Question #9) says that there is an abundant
presence of team spirit throughout the plant but still they find low involvement in decision
making (Question#11). It can be inferred that there is enough cohesion amongst employees but
they do not perform efficiently as an organization. It may be due to the inertia of the system as
the large delays in paperwork and decision making (Question #12).

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Creation of demand in employee work life may sound a bitter method to remove this
complacency but it will build a momentum for future. Higher the demand of a product higher
is the output. Similarly higher the expectations from an employee higher will be their output.
There should be a culture of demand from the team. If one sets individual goals high people
excel in their tasks.

On the basis of the survey and Quinn’s CVF analysis we have gathered a few
recommendations that would help BSL in bringing a cultural shift to thrive in the business.

5.1 Bringing in the spirit of competition 14

Customers have short-term memory and an infinite number of options at their fingertips, so
how can you stand out from the crowd and achieve customer loyalty? Competitiveness of an
organization may be defined as the ability of organizations to produce goods or services with a
favorable quality-price ratio that guarantees good profit while achieving customer preference
over other competitors. Competitiveness ensures that the company is sustainable and durable.
In short, we have to make BSL such that it anticipates everything, has efficient employees, has
very few or no losses and is proactive. To achieve the competitive edge, the following points
are suggested.

5.1.1 Define your value proposition well

In addition to the intelligent supply chain management, organizations need an attractive and
well-defined value proposition.  That means something that sets BSL apart in the marketplace.
This value comes from a combination of elements such as customer service characteristics,
logistics support, information systems, and product branding. In addition, we could set
benchmark with respect to the world class organization in spheres of safety, training,
innovation, environment management and Societal Contribution.

5.1.2 Communication of comprehensive BSL-Market equation.

Each year the ABP is shared with the employees but we do not get the updates our product
demand. Sharing this information and what benefits the demand will create for the company in
terms of profit, increase in market reach and customer trust. This communication must be
made regularly at least on a weekly basis.

5.1.3 Define a good Risk Management strategy

High risks equate to high rewards. However, this formula can also be applied in the opposite
case; which is why any new project that we apply, we need to cover our back by defining a
good risk management strategy. This will help us to identify all possible negative scenarios
that may arise as a result of the implementation of a project. Therefore, you will be able to take
measures that guarantee the reduction of damages or losses in case the project does not work.

5.1.4 Invest in the right technology

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Innovation goes hand in hand with technology. If one wants to enjoy the benefits of process
standardization, task automation, and intelligent data analysis; then one should certainly invest
in cutting-edge technology tools. Technology is one of the main means by which we can safely
improve the competitiveness and efficiency of our company. Then we should integrate IT
service management tools and security solutions to our systems, to facilitate the work of our
employees and achieve better results. Implementation of the following will lift the standards to
comfortable level.

i. Imbibe online communication for completing procedures

ii. Use GPS in tracking
iii. Include simple data acquisition for machines
iv. Implementation of maintenance module in sap

5.1.5 Pay a lot of attention to customers

There are two types of customers for plant. They are

a. Internal customer
b. External Customer

a. Internal Customer: For a person in services department its customer is the core shop it
caters to. Introduction of SCORE CARDS/ RATINGS for mutual services would enhance the
desire of employee’s to be in the good books of their customer. An example for such activity
has already been implemented in BSL HRD training feedback form. Such rating/ feedback
system have already been in vogue in companies such as OLA and UBER that promotes the
desire to excel in ones services.

b. External Customer: We have a large network outreach in the country. We need to

understand the requirements of our existing customers and generate new customer data base.

i. On time dispatch of products and ensuring quality will help in the same.
ii. Local customers near plant must be identified and products should be promoted in
these areas by giving discounts with respect to far distant customers.
iii. Endorsement of our product’s superiority with respect to other brands must be
done.
iv. A mobile application should be created for ordering the products. Complains and
other issues should also be communicated with this app.
v. A referral scheme may be started in which if an employee is able to bring a fresh
order of our product though their personal effort; he should be rewarded
proportionately by the organization. Various reference schemes are being
established by many brands for endorsement. This activity may be promoted by
having clarity in channel of communication. Use of mobile applications for
generation of reference number can be used for making the system fast and smooth.

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 Exhibit5.2 Introduction of Brand Referral Schemes

5.2 Bringing a culture of adhocracy

“Failure is an option here. If things are not failing, you are not innovating enough.” Elon
Musk, founder SpaceX, Tesla, The Boring Company, Neurallink and OpenAI.

Adhocracy15 means “A flexible, adaptable and informal form of organization that is defined by

a lack of formal structure that employs specialized multidisciplinary teams grouped by
functions in place of rigid bureaucracy.”

The culture of adhocracy invites people to have individual thinking and promotes innovation
and creativity. Innovation activity to a large extent is determined by an innovation-promoting
culture that encompasses "ability" (innovative ability), "willingness" (willingness to innovate)
and "may" (innovation potential). The three dimensions do not stand alone, but influence each
other. For example, willingness to innovate is very strongly influenced by the other two
dimensions of innovative ability and opportunity. A change in one of the dimensions
automatically results in changes in other areas. Ideas can therefore only be efficiently
developed into innovations once the framework conditions for ability, will and privilege have
been created.

We recommend the following points so that people are empowered enough and feel supported
at the time of failures to have an environment which enables them to be creative and
innovative.

5.2.1 Creation of “Shadow Boards”

The top management is burdened with an array of decisions based on innumerable parameters.
Their minds are occupied with many if and buts and a constant risk analysis is going on during
the process of decision making. It seems that it is over demanding of them to make them toil in
every decisions that has to be made. If a help or a few objective solutions preempt them, it
would be easier for them to take decisions in critical matters and leave some spare time for
them so that they can do some critical thinking and in developing strategies.

One such one effort that may help in this direction is by developing a group of people who
decide on the same parameters and data as they may be for the higher authority. Suppose
whenever a new projects or capital repair is in inception phase, a group of young managers
from the stake holder departments is delegated the responsibility of taking a bird’s eye view of
the assignment. Having a fresh outlook and free from the blockage of minds due to over

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exposure of experience they may arrive at a plan which is creative and optimal. It is quite
possible their decision may be not feasible but a sense of ownership will also develop along
with this exercise. The higher management will have a fresh perspective of the things and they
may feel more confidence in their team’s dedication. Of course, the higher management can
review the decision and have a final word. This delegation of decision making will help the
plant in many ways.

i. Over burdened top management gets relief.

ii. Quick decisions
iii. Increased involvement of younger managers
iv. Deeper understanding of functioning of plant in younger management
v. Enhanced feeling of ownership amongst employees.

5.2.2 Training and Skill Development: Search for a customized learning centre

Upgrading a unit viz. a person, a shop/team or an organization is crucial for progress. Large
organization like ours have training programs which try to cover as many people as it is
possible. This is good up to a certain level. Our organization is based on multiple processes in
which innumerable technologies are employed to achieve the final product. Each technology
and each service requires a customized know how. People perform better when they have
confidence in their work. But the problem is that large scale training program tends to share the
general principles but they are missing the meticulous details. It is only when employees get
the relevant information pertaining to their hands on job do they feel confident. Therefore
experience on the job matters in the present setup of our organization.

The plant is facing retirement of skilled employees therefore experience and skill is depleting
at a very fast pace. New joiners are not getting enough time for learning the finer details of job
and are burdened with handling the job with very little experience. Though the job gets
completed but time and quality both are compromised.

If we are able to design a module where retiring person could transfer their skill and experience
to the department in the form of literature, a guiding principle could be made available to the
members of the department especially the new ones. A list of such executives who are retiring
within two years could be made every year. This executive may be assigned a young manager
who could assist him in formation of the literature. In this manner the young manager will
learn in the process and the literature would be available for future references.

Exhibit 5.3 Vein Diagram depicting training effectiveness for a job

19
 Skills required for a JOB

Fig: Vein Skills

diagram depicting
imparted trainingtrainings
in external effectiveness for a JOB

Skills imparted in Departmental training

5.2.3 Transparency, and wholesome Involvement: Coalescing People with the narrative
of the company

It is true that we often come across employees who nag about actions taken by top
management. We hear them say that a particular project is missing a key feature that could
have enabled better production capabilities. This charade of stories circulates throughout all
segments of the plants and for a longer time. This is not the kind of story we want to permeate
in the fabric of our employee’s attitude. What we want is that there should be proper channel of
communication right at the origin of the decision. It is not feasible to involve everyone in the
inception phase of the project but when a decision has been made let that decision be given a
period for incubation. Let the decision be made open for feedback from all. This incubation
period will not hurt the project duration but will rather help gather wider perspective of things.
From this feedback, a relook could be taken and a final decision be made.

In such a transparent system, people would have their say and they would feel themselves a
part of the decision. Being involved in the decision making makes them more accountable and
improves their understanding of the variables on which the decision has been made.

Exhibit 5.4 Narrative circulating in the organization form the basis of ownership,
involvement and optimistic empowerment

20
 CRM-3 SMS-3

BF-1

CO
Stories
Batteries

Other
Projects Sinter
Plant

5.2.4 Power Swap: A creative approach towards Job Rotation

We all know the benefits of job rotation through which employees gain experience and skills
by taking on new responsibilities. Job rotations are meant to promote flexibility, employee
engagement, and remove job monotony. In our survey, we have found that employees support
job rotation and are willing to work in a different place. One of the respondents said

“Department transfers should often be done and it should be transparent process and based
on skill set.”

But in our organization where skill depletion is happening at a very fast pace, experience of an
individual is becoming indispensible. Despite knowing the benefits of job rotation it is not
achievable successfully.

What if job rotation is done for smaller tenure at internal level! Just as a power nap rejuvenates
a person a power swap may do the same trick. Suppose a person from maintenance may be
shifted to operation and vice versa for a period of two weeks. At least a new perspective may
be gained and people start empathizing about each other’s job profile. People become
cooperative, may present a new insight on the job, have increased flexibility and get a chance
of moving out of monotony of one’s job.

Exhibit 5.5 Power Swap promotes empathy and learning

5.2.5 Sharing of Knowledge: Finding Exemplary work in Similar Working Condition of

Sister Units of SAIL

21
Monthly presentations of innovative works done by employees may be done at departmental
level. Best work may be presented at plant level in each quarter. Such process will increase
competitiveness amongst employees and a vast knowledge sharing will be available to larger
section of the organization.

Lateral sharing of ideas is not very common in sister units in SAIL. A platform could be
created where similar functioning departments of various units in SAIL may be connected and
sharing of work and innovative ideas may be done on the platform for everyone to observe.
Creation of such platform in this age of digitalization is quite simple and does not require any
expensive means. Communication could be done by making a portal on SAIL website or
simply by making whatsapp groups. Adherence to sharing of information by employees may
be motivated by appreciation at various levels. Gains made from the communications may be
made public that will create a culture of sharing and innovation on the organizational level.
Such information exchange will create an internal resource to rely on for trouble shootings and
help us find best efficient work practices in similar working conditions of a PSU.

Exhibit 5.6 Grouping similar functioning departments laterally in different SAIL

Units

5.3 Improving the CLAN culture: Employee Care and Respect

SAIL has bestowed upon us a well developed infrastructure that includes planned township,
good medical facilities, excellent education facilities and a serene green environment.
Everything is in proper place but we as an organization lack in utilizing these facility upto its
maximum. It takes a little extra effort to take the final step to create a wholesome experience.
When you care for someone, they feel pampered and a good will is generated amongst them.
This dynamics has long term effect that reflects in the organization on multiple parameters.
Grateful people can go beyond their obligations and set examples in their sphere of relations.
We in plant also need to harness this kind of relationship amongst its people. There are a few
recommendations in this respect that will motivate people.

Personal care of people: Which things are of prime importance to an individual? For a
working individual family comes first. If BSL looks after the well being of family of its
employees then that will create a symbiotic relation between them. Following measures may be
taken up:

22
  Spouses: Re-energizing Forums such as Mahila Samiti and creation of new forums
for enriching their lives. Involving them in CSR activities

 Towards children: Aptitude test and career counseling for employees’ children
especially those of contract labor. We owe much of our jobs to contractal workmen.
These sessions may be organized in HRD centrally or may be organized by the
respective departments with the help of HRD.

 Mental health of employee: Monotony in job leads to fatigue. Personality

development should happen through encouraging participation in extra co-
curricular activities, for example creation of hobby clubs inside plant. Active people
in functional group create healthy relationship amongst members. Creation of
counseling sessions during annual health checkups and creating an online history of
the employee and get periodical feedback regarding their concerns.

Exhibit 5.7 Care for Mental Health of an employee leads to his optimum utilization
and sense of satisfaction

Someone to
talk with

Nutritional
Be active
Health

Ambience
Mental Do you what
you are best
at

Health
Personnel Helping
Counselling nature

Stress
Management

5.4 Increasing flexibility in the HIERARCHICAL CULTURE

As a PSU, the biggest challenges we face is the lengthy procedures we have to follow for
making even a simple decision. Sometimes a simple requirement of office stationery includes a
formal route of documents. In such an environment where there is no room for free thinking-
creativity and free mind finds a back stage and system becomes the Supreme Authority. In
such an atmosphere people try to find loop holes in the system for handling innocuous things
thus creating friction in work. The plant pays heavily in the long term where people do not
trust each other’s actions and amass inertia of doing work in the old fashion.

Decide tasks but give flexibility to perform. Empower employees to achieve set benchmarks
and encourage them to document their achievements. Financial decision making with shared
responsibilities should be given to all executives in department and accountabilities of the

23
same should be taken care of in annual appraisal. Supplement hardcopy of notesheet with
online notesheet system with adequate backup arrangement for protecting loss of data which
will reduce dependencies on physical movement of files.

5.5 Communication: Emphasis on feedback

Accountability of employees will increase if communication and feedback is regularly done

with them. Monthly exchange of planning from frontline executive with the department CGM,
mock interviews of non executive with the HOD especially before promotions, regular classes
for contract worker for enhancing their knowledge regarding not just their plant job but to
make them aware of better standards of living and their social and moral upliftment will create
a healthy atmosphere for mutual gains.

5.5.1 Annual Feedback Survey and analysis

It is beneficial for our organization to regularly assess the change that was envisioned. An
annual survey for the culture prevalent in BSL may be designed. This survey will provide a
feedback about the status of results of the actions that have been made over the period of time.
This survey will help analyze the attitude, behavior, shared values and beliefs of employees of
BSL. ACTIO
NS FOR Exhibit 5.8 Culture shift-in feedback
BRINGI
NG RESUL
CULTU TS
RAL
CHANG ASS
E ESS
FEEDBACK FROM EMPLOYEES
RES (ANNUAL SURVEY)
ULT
S
5.6 Suggestions to create a positive impact in working atmosphere of BSL

 Start incentive reward scheme especially for motivating persons working in Hot
Zone.
 Grade C should not be fixed 10 Percent of total executives in department rather
should be only for those who actually have severely low attendance (barring
medical exceptions) or some other disciplinary issue. Otherwise it leads to
unnecessary demotivation.
 Culture of safety should be created through religious implementation of BBS. All
efforts should be made to show safety as our top most priority which leads to lesser
concerns in minds of its employees (Improve safety framework through technical
aids available)

24
  Improve participatory suggestions from employees through focus groups by
actually defining the problems to focus on and adequately reward the
implementable suggestions and get the suggestions implemented.
 Create a formal communication space on intranet to share ideas among colleagues
and seeking guidance from senior members. Some of snippets may form part of
knowledge repository in future.
 Company may think to share/ absorb transportation cost to create value of our
product in minds of the customers.

Chapter 6: Conclusions

For bringing cultural shift in BSL we have tried to find enablers that bring an appreciable
change.

Through our empirical research, we have found that we need to improve our focus on
Market, Adhocracy and Clan type of culture in order respectively. Also we need to
decrease some hierarchical controls in our organization to bring a cultural of innovation
and creativity.

Some important recommendations we have suggested for bringing change in BSL

organizational culture to thrive in business are

 Inculcating a culture of competition-benchmarking with the best in industry

 Implementation of shadow boards, involving employees in decision making, job
rotation through “power swap”
 Knowledge sharing amongst sister units through creation of communication portal
 Increase personal care of employees to create healthy and stress free environment.
 Creation of annual feedback survey to correct the course of actions.

We hope that the suggestions recommended in this paper will help in creating positive
changes in our organizational culture.

25
26
 References
1. Hofstede G. (1998), Identifying Organizational Subcultures: An Empirical Approach,
“Journal of Management Studies”, 35.
2. Cameron, K.S. and Quinn, R.E. (1999). Diagnosing and Changing Organizational Culture:
based on the Competing Values Framework, Addison-Wesley, New York.
3. Handy, C.B. (1993). Understanding Organizations, Oxford University Press, New York.
4. Annual reports of companies like Tata Steel and POSCO., 2019
5. “World steel in Figures- 2020”, World steel Association, April 2020. Available:
https://www.worldsteel.org/
6. Indian Steel Industry – Growth, Challenges and Digital Disruption, PWC, November 2019
7. www.sail.co.in
8. bokarosteel.com
9. www.sailmti.com
10. https://www.shrm.org/resourcesandtools/
11. https://www.eaglesflight.com/blog/7-tools-you-can-use-to-measure-your-companys-
culture
12. https://www.ibef.org/download/Steel-June-2020.pdf
13. https://hbr.org/2018/01/the-culture-factor
14. gb advisors tech block,(April 24, 2019 ). “Business Competitiveness: How to make the
company more competitive?” Available: https://www.gb-advisors.com/business-
competitiveness
15. https://en.wikipedia.org/wiki/Adhocracy, September 14, 2020.
16. Jordan.J and Sorell.M (June 04, 2019). Why You Should Create a “Shadow Board” of
Younger Employees; Available: https://hbr.org/2019/06/why-you-should-create-a-
shadow-board-of-younger-employees
17. https://www.researchgate.net/publication/235298321_Organizational_culture_The_case_o
f_Turkish_construction_industry
18. http://indianresearchjournals.com/pdf/IJSSIR/2013/June/7.pdf
19. https://en.wikipedia.org/wiki/Tata_Steel
20. https://www.tatasteel.com/careers/culture-at-tata-steel/culture-tata/
21. https://www.helpguide.org/articles/mental-health/building-better-mental-health.htm
22. https://www.ocai-online.com/
23. https://www.ocai-online.com/about-the-Organizational-Culture-Assessment-Instrument-
OCAI
24. https://www.researchgate.net/publication/292419720
25. https://serraview.com/7-ways-technology-changing-corporate-culture/
26. https://indsteel.org/
27. https://www.gray.com/insights/why-building-a-culture-of-excellence-is-more-difficult-
than-you-think/

Annexure I

27
1. Questionnaire and Responses

28
2. Sample messages for intimation to respond

29
3. Sample of interview Questions from the top management

Q1. What do think is the future scope of BSL?

Q2. How do you find attitude of your subordinates on delegation of work by you?

Q3. Do you find performances are adequately reflected in the promotion policy of BSL?

Q4. What do you think are specific input needed to shape the culture of this organization
for future?

Q5. Do you find our ongoing projects running on schedule? (You may suggest
improvements required)

30
4. Sample Suggestions Received for improvement of organizational culture

 There is no clear vision for the future.

 Lack of learning curve
 Extreme harassment and torture of employees. No system and sop and no basic
facilities available.
 Negativity all around, even if your boss is dumb, you have to listen to him. Non-ex
and union have nexus to harm any good intentions.
 The operations people are stuck up for long years in one shop only and after
working so hard in so harsh working conditions, we are hardly recognized. Our
shift duty goes on years on years and our health is compromised too. We often go
late and the way we are being scolded is humiliating and it should change. Man
power distribution is not done well and many aren't as accountable and coming and
going back comfortably. Job rotation must be there.
 No accountability in top management, No vision, No planning, Non accountability
of employees
 No benefit to employee other than salary
 Accountability at non ex level is negligible
 The culture is not competitive enough. Our KPAs tend to be merely achievable
instead of challenging. Over time it builds mediocrity instead of building excellence
 Because "Har ek kaam desh ke naam"
 Too many hurdles when you try independently. Resources are there but not easily
available. Empowerment is not enough for frontline executive and they have no role
in how the company will become in the future.
 Very bad work culture
 Transfer policy and promotion process till now have discouraged me from
achieving my full potential.
 Low care for mental health
 To make the common platform for sister units where they can shared their
experiences
 Frequent and relevant training programs. Deputations and transfers early in the
employees’ career.
 Plant visits for more than 15 days on a bi yearly basis
 Internal department visit in sister unit for knowledge about work
culture,maintenance management,
 Sharing of best practices. Exchanges of employees for some time.
 Proper communication with the respective departments regarding the procedures
followed by them to solve a particular problem or process. The cost effectiveness,
safety, and time factors are also to be discussed.
 A common platform should be created to share vital information or achievements
about job and work culture.
 Learn from each other and interplant meeting should involve front line executive
 Periodic interplant experience sharing

31
 More interplant technology/problem solving/ improvement interactive sessions
 Use of digital technology
 Online real-time display of process parameters at various locations
 New projects should have more involvement from concerned unit employees, total
knowhow about the projects should be shared with employees.
 Till today biometric system for non executive could not be induced in certain dept.
 Poor drinking water facilities. Canteen facilities... And many more
 Assign task based responsibility, allow some financial decision making powers and
set benchmarks of achievement to get the maximum out of its employees
 Department transfers should often be done and it should be transparent process and
based on skill set.
 All this favoritism sucks. You feel strained. Even a person like me who is so fond
of doing job in steel plant starts finding it cumbersome. There should be definitely
transfers inside the plant. Otherwise some make themselves too comfortable.
 Employees facility related to town administration should be improved

32
Annexure II
1. Case studies of leaders of Industry

1.1 Pohang Steel company (POSCO)

Company Profile: POSCO is the largest steel producer, based on the crude steel production,
in Korea which was incorporated on April 1, 1968, to manufacture and distribute steel
rolled products and plates in the domestic and overseas markets. The company was listed
on the Korea Exchange on June 10, 1988, and is currently operating two steelworks
(Pohang and Gwangyang), with one office in Korea and six overseas offices as of April
2018. The company consists of the Corporate Strategy & Finance Center and CEO
directly-controlled organizations under the CEO and the steel business and operation which
include 4 divisions; Steel Business division, Steel Production Division, Technology &
Investment Division, and Management Support Division.

Some salient features present in company’s annual report 2019 are:

 High Innovation R&D expenditure

 Low R&D expenditure to sales ratio
 High Employee Training hours per capita Hours available
 Low Training expenses per unit of sales
 High Employee satisfaction
 Low Safety Operations halt frequency rate Per million
 Low Number of accidents(average) Cases
 Reducing Energy consumption
 Focus on GHG emissions, Water consumption and Waste generated
 Increasing Social contribution expenditure

1.2 TATA Steel Limited

Company profile- Tata Steel Limited is an Indian multinational steel-making company

based in Jamshedpur, Jharkhand, and is headquartered in Kolkata, West Bengal, India. It is
a subsidiary of the Tata Group. TATA steel limited, formerly Tata Iron and Steel Company
(TISCO) was founded by Jamshetji Tata and established by Dorabji Tata on 26 August
1907.Tata Steel is among the top steel producing companies in the world with an annual
crude steel capacity of 34 million tonnes per annum. It is one of the world's most
geographically-diversified steel producers, with operations and commercial presence across
the world.

Organizational culture- We strongly believe that our people are our greatest asset. We
also endeavour to nurture a culture of diversity, innovation, total quality management and

33
employee care and respect. As a matter of principle, we believe that diversity within the
workforce greatly enhances our overall capabilities.

We encourage a high-performance culture and support it through various rewards and

recognitions. We strive to ensure a safe, healthy, clean and ergonomic working
environment for our employees, contractors and anyone affected by our activities. We
aspire to be the health and safety benchmark for the global steel industry.

Three salient features of Tata steel organizational culture are-

 learn and grow

 work-life balance
 Quality living

2. CVF (Competing Value Framework)

When dealing with a multitude of dimensions, typologies are employed as an alternative to

provide a simplified means of assessing cultures. In this regard, typologies have been
developed to use in studies of organizational culture. Notable contributors to the use of
typologies include Handy (1993, 1995) who identified the club, role, task and person
typologies and Quinn (1988) who identified the market, hierarchy, adhocracy and clan
typologies of culture.

Since the culture is regarded as a crucial factor in the long-term effectiveness of

organizations, it becomes important to be able to measure organizational culture. In
response to this issue, a range of tools designed to measure organizational culture have
been developed and applied in industrial, educational, and health care settings over the last
two decades. All of them examine employee perceptions and opinions about their working
environment (the so-called "climate" of an organization) but only a few, such as the
Competing Values Framework and the Organizational Culture Inventory, try to examine
the values and beliefs that inform those views (Scott, 2003).

In this study, the Competing Values Framework (CVF) was selected to assess
organizational culture. The CVF is based on two major dimensions. The first dimension
emphasizes the organizational focus (internal versus external), whereas the second one
distinguishes between the stability and control and the flexibility and discretion. These two
dimensions create four quadrants, each representing a major type of organizational culture
The cultural values represented in the four quadrants have existed in the literature (see
Cameron and Quinn, 1999 for detailed information).

OCAI is a tool to assess the cultural profile as per CVF. OCAI focuses on:

 Your individual profile with current and preferred culture and an explanation
 The discrepancy between current and preferred culture

Separate profiles of the six key aspects of culture:

34
  Dominant characteristics
 Organizational leadership
 Management of employees
 Organization glue
 Strategic emphases
 Criteria of success

An indication of congruence: Are these six aspects aligned or not? Incongruence can cause
confusion or conflicts and may cost you time, money, and energy.

3. SAIL benchmark tree

35
4. Current state of steel industry in India

36
Annexure III

Mean Value Calculation of All responses.

Clan Culture

Sl.No Clan Culture Calculation Mean Value

1. Q4 (11*1+24*2+25*3+17*4+5*3)/80 2.71
2 Q8 (26*1+18*2+23*3+12*4+0*5)/79 1.97
3 Q9 (10*1+15*2+26*3+23*4+6*5)/80 3.00
4 Q15 (7*1+14*2+28*3+17*4+14*5)/80 3.21
5 Q21 (2*1+7*2+18*3+30*4+22*5)/80 3.75
Average 2.93
value

Adhocracy Culture

Sl. Adhocracy Calculation Mean

1No. Culture
Q5 (8*1+24*2+25*3+20*4+3*5)/80 Value
2.82
2 Q10 (7*1+13*2+24*3+25*4+9*5)/78 3.20
3 Q13 (14*1+35*2+24*3+7*4+0*5)/80 2.30
4 Q16 (20*1+40*3+19*5)/79 2.97
5 Q23 (35*5+28*3+19*1)/80 3.48
6 Q24 (51*1+20*3+8*5)/79 1.93
Average 2.78
Value

Hierarchy Culture

Sl. Hierarchy Calculation Mean

No. Culture Value
1 Q3 (7*1+21*2+24*3+24*4+4*5)/80 2.74
2 Q11 (7*1+27*2+31*3+12*4+5*2)/79 2.29
3 Q14 (48*5+24*3+8*1)80 4.00
4 Q18 (38*5+30*3+10*1)/78 3.72
5 Q19 (12*1+10*2+24*3+17*4+17*5)/80 3.74
Average 3.30
Value

Market Culture

Sl. Market Calculation Mean

1No. Culture
Q7 (27*1+22*2+23*3+6*4+2*5)/80 Value
2.18
2 Q17 (8*1+28*2+39*3+3*4+2*5)/80 2.54
3 Q20 (2*1+11*2+29*3+27*4+1*5)/79 3.40
4 Q22 (5*1+15*2+28*3+25*4+7*5)/80 3.17
Average 2.82
Example-1Value

37
The Overall Cultural Profile of the Construction Industry in Turkey (link of paper is
given in refrences)

38