TATA STEEL

GROUP MEMBERS
SHIV SHANKAR MUNDHRA VALLARI GUPTA VIJAY GYANCHANDANI ANSHUL MONGA VISHAL LALWANI VRINDA MANGHANANI

INDUSTRY PROFILE
Decrease in steel consumption due to economic
slowdown in the developed world Demand for steel remains robust in India and Asia Rise in iron ore and coking coal prices

Sharp depreciation of the Rupee affected the

economic environment of the industry

COMPANY PROFILE
Established in 1907 Among the top ten global steel companies Operates in 26 countries and has a commercial presence in over 50 countries A fortune 500 company a turnover of US$ 26.13 billion in FY 20112012 Around 81000 employees

ORGANISATION STRUCTURE

An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.

CENTRALIZED ORGANISED STRUCTURE

Centralized organisations keep their decision
making power at the top of their hierarchy.

They do not delegate decisions to local or

lower down levels of their hierarchy.

DECENTRALIZED ORGANISATIONAL STUCTURE

Decentralized organizations rely on a team environment at different levels in the business. Decentralisation is delegation not from one individual to another but delegation to all units in an organisation.

TATA STEEL

INTERNAL CONTROLS & SYSTEMS

The effectiveness of the internal controls is continuously monitored by the Corporate Audit Division of the Company. It also assesses opportunities for improvement in business processes, systems & controls and may provide recommendations, designed to add-value. It also follows up on the implementation of corrective actions and improvements in business processes.

RISK MANAGEMENT
The Companys Risk Management framework was based on the Tata Business Excellence Model (TBEM) Value Based Management in order to maximise the shareholders value Enterprise Risk Management (ERM) Risk Dash Board Tata Steel has also adopted the best-in-class DuPonts safety programme Tata Steel's Performance Management System

MANAGEMENT STYLE AND CULTURE

Ratan tatas imprint is seen in all group businessesbe it the Rs 1-lakh car or the Ginger budget hotels or Titans low-end Sonata range. "The group should offer products and services catering to the larger part of the lower income pyramid in India and overseas. In India, this would mean that the addressable market for the Groups products and services would be around 1 billion customers. He drives strategies across the group. He gives managers a freehand, but never hesitates to step in to make a directional change. JRD rarely did that," He created the Tata culture of professionalism where managers as well as employees were given freedom and responsibility.

COMMUNICATIONS AT TATA STEEL

Communication is probably the most powerful tool within an organization. Successful companies are those who harness this power effectively to connect with their stakeholders in an open and transparent way. Communicating the Vision: The new Vision for the Tata Steel Group which reflects the aspirations and goals for the future was co-created collectively by senior executives of the Tata Steel CSR Communication : Tata Steel has created a brand called Pragati. In keeping with the 100 years tradition of serving society, Pragati was developed to serve the long term

perspective of CSR communication.

Centenary Communication : A unique film, The Spirit of Steel was released to mark the occasion. A four-day festival Shatrang was hosted for the people of Jamshedpur which comprised city-wide celebrations

THE COMMUNICATIONS FUNCTION

Supporting integration activities Integration News Creation of an integration micro-site Publications Websites Building a strong brand

CONTROL PROCESS
Inventory Management: HYBRID JIT-MRP The integrated hybrid system provides a better production
planning, scheduling and control. It employs the logic of MRP and JIT, but it eliminates some of the inherent problems and drawbacks in both systems. According to TISCO MRP has better planning capabilities, while JIT has superior shop floor control capabilities which help them to produce at lower cost and achieve economies of scale.

VIHS FRAMEWORK AT TATA STEEL:

ERP SYSTEM
TISCO faced two major problems from the systems that existed for a long time. Firstly they were not customer friendly. The whole system was tuned to the process and very little attention was paid to the customer demands.

Secondly the systems were outdates and the modalities of operation were too complex and not error free. In order to rectify these issues which would otherwise prove to be major setbacks to the company the organization resolved to take up Advanced ERP.

ERP framework which TISCO implemented

AUDITING PRACTICES
The Quarterly, Half Yearly and Annual books of account are audited by internal and external auditors. The 2011-12 accounts were audited by Deloitte Haskins & Sells, Chartered Accountants, Mumbai. The scope of external audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. The audit is undertaken in accordance with auditing standards in India. Company has a strong and independent internal audit function. The chief internal auditor reports directly to the chairman of the board. Professionally qualified, technical and financial personnel of the internal audit function conduct periodic audits to ensure that the Companys Internal Control Systems are adequate and are complied with.

CAPITAL BUDGETING PRACTICES

The terms of reference of the Executive Committee of the Board (ECOB) are to approve capital expenditure schemes and donations within the stipulated limits and to recommend to the Board, capital budgets and other major capital schemes, to consider new businesses, acquisitions, divestments, changes in organizational structure and also to periodically review the Companys business plans and future strategies. The composition of ECOB is given below:

HR STRATEGIES
Opportunities for employee wards - domain wise written test, assessment centre, personal interview. We also select talent through Lateral Recruitment process which involves interview by HR, subject matter expert and personal interviews. Group Migration Policy for our employees, which enables the group employees to explore opportunities to work at Tata Steel from other group companies. Campus Selection - B schools, T Schools - written test, psychometric test, personal interview.

Initiatives regarding employee relations, employee development and growth.

Employee relations
Grievance Handling Mechanism Trade Unions

HR Service desk
Employee Health Benefits and Facilities Employee development & Growth 70:20:10 Learning and Development Programme

 Initiatives regarding gender and diversity workforce? The core principles enshrined in the policy, and now applied across the Tata Steel Group worldwide are: Equality of opportunity Continuing personal development Fairness and Mutual trust and teamwork These principles are underpinned by the five Tata Group core values: integrity, understanding, excellence, unity and responsibility.

 HR policies planned for employees in the future To support the expansion of the existing facilities, they have planned the following initiatives: Recruitment and selection: The process involves Reporting officers/ Heads of the process in counseling and training for their colleagues Identifying talent and working with virtual offices Video simulations to assess the skills required for the job Employer Branding: Employer to brand the organization as a preferred employer People centric - considering employees as customers

FINANCIAL STRATEGIES
The Companys financial strategy is focused on managing the capital structure effectively and to undertake financing based on the Companys funding requirements for growth. In the past one year, the capital investment in Tata Steel has been defined by the long-term strategic plan of pursuing growth in the Indian market, raw material integration and downstream value addition.

MARKETING STRATEGIES
Several new initiatives have been undertaken to improve customer service in every market segment. Tata Steel had implemented Vehicle Tracking system (VTS) way back in 2002. In line with the Companys Endeavour to improve customer service, approx 1600 Global Positioning System (GPS) mounted vehicles have been deployed by transport partners of material movement across the Country. This is the largest implementation of GPS enabled fleet in the steel industry. To bring about improvement in delivery reliability, a billboard has been created and uploaded on CSD webpage to track vehicles on-line, again a first in the Indian Steel industry. Standard operating procedures for receipt, storage, handling and delivery of steel materials at all stock points have been implemented. Tata Steel has created transport parks in Jamshedpur to ease out traffic flow and educate all drivers on safety and health concerns. As a CSR initiative approximately 2000 drivers undergo medical check-up at our facilities every month.

OPERATION STRATEGIES
TATA Steel main distribution channel is selling branded steel through Mjunction. It provides cutting edge of Information Technology, is a 50:50 venture of SAIL and Tata Steel. It is India's largest e-Commerce company and the world's largest eMarketplace for steel. Mjunction offers a wide range of selling, sourcing and knowledge services that empower businesses with greater process efficiencies. Tata Steel initiated the first online e-Sale through Mjunction in the month of February 2002 and since then has sold 221,259 MT. The products that Tata Steel has sold through MJunction are: HSM Defectives, HSM POR, GP Coils, LP Defectives, Prime Billets and Secondary Products.