Submitted by Neelutpal Saha

• Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for different types of industries and for sale in export markets.

• SAIL is ranked amongst the top ten public sector companies in India in terms of turnover.

• SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. The company has the distinction of being India’s largest producer of iron ore and of having the country’s second largest mines network.

SAIL’s Inputs:•Raw Material- Iron-Ore•Manpower•World Class Technology

SAIL’s Value Addition process:

•Integrated production of Steel from Iron-ore•Competence Build-up

SAIL’s Environment:•Liberalization of Steel Industry•Human Resources Management System•Expansion and Modernization of SAIL

SAIL’s Outputs:•Stainless steel and other alloy steels•Competent manpower and Managerial workforce rich in experience

Effect of Liberalization-Iron and Steel Industry being removed from the list of industries reserved for the public sector , many new players like Tata entered the market making competition tougher. Foreign equity investment was increased to 74%Prices being deregulated, market was free to decide own priceFreight disadvantage to states located near steel plants due to removal of Freight Equalization SchemeHuman Resource Management System-A state of the art HR management system which included “Human Resources Planning Model for Modernization”, “Performance Management System”, ‘Market Orientation through Internal Customer Satisfaction’ etc.Expansion and Modernization-Enhancing production capacity and Market ShareWorld Class Technology and ProductsAddition of value added productsEnhanced pollution control measures and environmental conservation

Chairman & CEO

Finance

HR

Technical

Raw Material

Research

Commercial

Plant Managemen

t

Functional Managers

There are 6 group functions within SAIL each of which is being headed by a Director and the Chairman of the board of Directors is the CEO as well

All the functions consist of sub-functions which are each headed by an Additional Director who report to the Director of that specific function

All the operations in a plant are being handled by the Managing Director of that plant who have full operational freedom and report to the CEO directly

There are various functions within the plant each of which is looked after by a General Manager and he directly reports to the plant MD. But some functions like HR, Finance, etc are related to the group functions of the organization and thus have a functional reporting to the Director of those functions as well.

SAIL also have their own Central Marketing Organization (CMO) a services unit who look after the marketing, sales and distribution.

Overall the organizational structure which consist of both functional and multi-divisional approach is very appropriate for a manufacturing firm of such scale.