CODA Project by Ashita Prabhugaonkar

PROJECT SUBMISSION FORM

Your Exact Name (This will be printed on your certificate): Ashita PrabhuGaonkar  Name of the program: Certified Organization Development Analyst Analyst Date of attendance (will be printed on your certificate): 18/01/2014 to 19/01/2014 Date of Submission: 25 / March / 2014 IF you a participant from WHRB/AHRB - Your Batch location and year: Mumbai 2014 Valid Email ID: [email protected]

POSTAL ADDRESS THAT YOU WANT THE CERTIFICATE TO BE DISPATCHED AT :

Name: Ashita PrabhuGaonkar Street Address 1: House No. 1708, Askanwada, Askanwada, Shiroda Street Address 2:

City:

Ponda

Post/Zip Code: 403104 Working Mobile No: Working land phone No: +91 8551037745

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State/Province: Goa Country: India

Table of Contents Sr. No Section1

Section 2 Section 3

Section 4

4.1 4.2

Content

Page no

Introduction Industry Analysis Government regulations SWOT Analysis of 'Mining Company' Table 1: SWOT Analysis of 'Mining Compnay' Mining Compny' on Porter's Five forces Illustration 1 Porter's Five forces Table 2: showing Porter's five forces vis - a - vis 'Mining Company  Analyzing 'Mining Company' Company' on Porter's Five Forces Forces Organization Analysis using Malcolm Baldrige National Quality programme

4 4 5 6

Preface: Organisational profile of „Mining Company‟

Mission statement, Vision Statement, Value and

7 7 8 9 10 10 11

Philosophy of „Mining Company‟

Table 3: Mission, Vision Values and Philosophy of

11

„Mining Company‟

4.3

Communication methods in 'Mining Company'

4.4

Table 4: „Mining Company‟ Communication methods Key characteristics of „Mining Company‟ Culture Table 5: Key characteristics of „Mining Company‟

4.5

Culture Rules Rules & Regulations Table 6: Regulations and standards

Section 5

5.1

„Mining Company‟ on Organisational excellence Model Leadership 5.1.1 „Mining Company‟ Senior Leadership

a) Mission, Vision Values and Philosophies b) Communication Method 5.1.2 Governance and Social Responsibility 5.2

Strategic Planning

5.2.1 Strategy development Process 5.2.2 Strategy Deployment 5.3

Customer and Market Focus

5.3.1 Customer and Market knowledge 5.3.2 Customer Relationship Management Table 7: Table showing customer redressal process 5.4

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Measurement, Analysis and Knowledge Management

11 11 12 12 13 13 14 14 14 14 14 16 18 18 18 20 20 20 21 22

Table of Contents Sr. No Section1

Section 2 Section 3

Section 4

4.1 4.2

Content

Page no

Introduction Industry Analysis Government regulations SWOT Analysis of 'Mining Company' Table 1: SWOT Analysis of 'Mining Compnay' Mining Compny' on Porter's Five forces Illustration 1 Porter's Five forces Table 2: showing Porter's five forces vis - a - vis 'Mining Company  Analyzing 'Mining Company' Company' on Porter's Five Forces Forces Organization Analysis using Malcolm Baldrige National Quality programme

4 4 5 6

Preface: Organisational profile of „Mining Company‟

Mission statement, Vision Statement, Value and

7 7 8 9 10 10 11

Philosophy of „Mining Company‟

Table 3: Mission, Vision Values and Philosophy of

11

„Mining Company‟

4.3

Communication methods in 'Mining Company'

4.4

Table 4: „Mining Company‟ Communication methods Key characteristics of „Mining Company‟ Culture Table 5: Key characteristics of „Mining Company‟

4.5

Culture Rules Rules & Regulations Table 6: Regulations and standards

Section 5

5.1

„Mining Company‟ on Organisational excellence Model Leadership 5.1.1 „Mining Company‟ Senior Leadership

a) Mission, Vision Values and Philosophies b) Communication Method 5.1.2 Governance and Social Responsibility 5.2

Strategic Planning

5.2.1 Strategy development Process 5.2.2 Strategy Deployment 5.3

Customer and Market Focus

5.3.1 Customer and Market knowledge 5.3.2 Customer Relationship Management Table 7: Table showing customer redressal process 5.4

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Measurement, Analysis and Knowledge Management

11 11 12 12 13 13 14 14 14 14 14 16 18 18 18 20 20 20 21 22

Sr. No

5.4.1 5.4.1.1 5.4.2 5.5 5.5.1 5.5.2 5.5.3 5.6 5.6.1 5.6.2 5.7 5.7.1 5.7.2 5.7.3 5.7.4 5.7.5 5.7.6 5.7.6.1

Section 6

6.1 6.2 6.3 6.4 6.5 6.6 Section 7

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Content

Performance Measurement Performance analysis and review Information & Knowledge Management Workforce Focus Systems for workforce engagement Learning and development or Training needs Hiring and career progression Process Management Value creation process Support Process and Operational Planning Results Product and service Outcomes Customer focused outcomes Financial and Market outcomes Human Resources Outcomes Organisational Effectiveness outcome Leadership and Social Responsibility outcomes Community Support

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Table 8: Performance of „Mining Company‟ on

22 22 22 24 24 24 25 26 26 26 28 28 28 28 28 29 29 30 32

Baldrige Organisational excellence Model HR Audit using PCMM Staffing Communication Work Environment Performance Management Training & development Compensation Project Summary

33 34 35 36 37 38 39 40

Section1 Introduction

Established in 1957 merely as a mining organisation, is an alliance of companies in the Mineral Resources Industry committed to social and economic advancement of its communities.  Alliance comprises of various companies at different locations. The alliance‟s activities include resource development ranging from Mineral Exploration, Excavation and Mineral Processing, logistics surface as well as Marine and Sales both International and domestic. Technological advancements cover several areas such as mineral processing with high gradient magnetic separator, Haulage with adherence to Tier -3 standards and Maritime logistics deploying and successfully operating floating cranes. Second largest exporter of iron ore from India with 16.6 million tonnes of sales including exports to countries such as Japan, China and Romania.

Industry Analysis

Sector The metals and mining sector consists of companies involved in the mining and production of copper, silver, gold, coal, bauxite, iron, lead, and nickel. This sector also includes companies that mine and produce diamonds and other precious stones. Companies that are involved in metal processing and metal distribution, such as steel and Aluminum, are also included in this sector. The metal industry is very capital intensive. Constructing mines and building production facilities requires huge sums of capital. Long-term survival requires heavy expenditures to finance production and exploration. Technology has not only played a big role in the computer and internet industry, but it has also greatly changed the mining industry. While there is a lot of overlap between the basics of mining Iron and other metals, the primary focus of here is on the Iron market. mar ket. Iron prices are influenced by numerous variables that include fabricator demand, expected inflation, steel industry demand etc. etc. Iron is strongly pegged to supply-anddemand patterns. In general, low prices result in low production, and high prices result in high production. Market forces determine price. A company's attempt to

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control costs is critical to maintaining financial health and production levels in the face of declining Iron prices. The metals industry is not vertically integrated like other industries such as oil and energy. In the metals industry, the companies that mine the Iron refine it, and the prices goes sky rocketing. Big players in the iron ore industry have their own exploration, development and production facilities. Unlike other industries, companies in the mining industry come in all shapes and sizes. Much of the production is done by large companies, but the export s side of the industry is full of junior companies looking to hit a home run with a large Iron ore stocks. Major Iron ore Miners and exporters in Goa are Sesa Goa Ptv. Ltd, „Mining Company‟, V.M Salgaonkar Group of Companies, Chowgule and Company, Bandekar Brothers, Agrawal Minerals Goa Pvt. Ltd. and many small players operating one or two mining leases. Government Regulation

Bans of iron ore mining and exports in top producing states of Karnataka nad Goa have choked the industry really very hard resulting in many smalls firms exiting the industry itself. Even if efforts to fully lift the bans make it past the many bureaucratic and legal hurdles, iron ore miners in Goa do not expect complete resumption of production until late 2014. The bans put in place as the government tired to clamp down illegal mining, have cut the iron ore exports by around 85 per cent, or 100 million tonnes, over the past two years. They have also reduced foreign exchange earnings by more than $17 billion in the same period, according to the Federation of Indian Mineral Industries (FIMI) The structural shift in India‟s iron industry could be blessings for other suppliers, as

demand growth from top market China slows and Australian miners Rio Tinto and BHP Billiton ramp up output. It also makes harder for Goan Mining Industry along with Karnataka to regain its spot as the world‟s No. 3 exporter or the steelmaking raw

material.

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Section 2 SWOT analysis of „Mining Company‟ SWOT Analysis of „Mining Company‟ A

Strength

B

Weakness

C D

Strong Brand Value High Quality and reliability product Demand forecast is accurate , sales increasing at 40% Product range is varied depending customer requirement. Sampling at prime locations Managerial Skills are at a very competent level Operating profit increasing Very few captive mines Competition is with global and big players

Ban on iron ore exports and other government regulations Demands of the community Opportunities Bigger export market Paletisation, pig iron and sponge iron making Threat from small unorganised players Threat Stringent Regulatory norms Price war with local and Australian and Brazilian ore suppliers

Table 1: SWOT Analysis of „Mining Company‟

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Section 3 „Mining Company‟ on Porter‟s five Forces

The model originated from Michael E. Porter's 1980 book "Competitive Strategy: Techniques for Analyzing Industries and Competitors." Since then, it has become a frequently used tool for analyzing a company's industry structure and its corporate strategy. In his book, Porter identified five competitive forces that shape every single industry and market. These forces help us to analyze everything from the intensity of competition to the profitability and attractiveness of an industry.  Attractiveness in this context refers to the overall industry profitability. The overall industry attractiveness does not imply that every firm in the industry will return same profitability. Firms are able to apply their core competences, business model or network to achieve a profit above the industry average.

Illustration 1: Porter‟s Five Forces

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SN Product 1 Substitutes

1. 2. 3. 4. 5.

Available Alternatives Switching Cost Suitability of Alternatives Price Sensitivity Potential Substitute

Iron Ore

+ + + + + 5

2

Buyer

6. Buyer Concentration 7. Price Sensitivity 8. Switching Cost 9. Volumes 10. Threat of backward Integration 11. Substitute of Products 12. Heterogeneity

+ + + + 4

3

Supplier

13. Supplier Concentration 14. Substitute supplier 15. Switching cost 16. Threat of forward Integration 17. Buyer information

+ + + 3

4

Rivalry

18. Concentration (Fixed /Variable cost) 19. Differentiating capacity 20. Pricing Behavior 21. Market Company growth

+ + 2

5

Potential Entrant

22. Potential Economies 23. Scope Economies 24. Brand Equity/ Reputation 25. Switching Cost 26. Capital requirement 27. Market Resource Access

+ + + + + 5 19

Table 2: Showing Porter‟s five Forces vis –a-vis „Mining Company‟ 8|Page

Analyzing „Mining Company‟ on Porter‟s Five Forces „Mining Company‟ is into mining of iron ore, Aluminium, bauxite and limestone Force1 Substitute:

There is practically no substitute to iron ore in Steel making Industry and hence the product scores positive in each point. Force 2 Buyers:

Even though there is no substitute to the product yet buyers are equally stronger in controlling the prices. Buyers purchase large volumes of iron ore also they can switch to the competitor also since they buy in bulk they can do without buying for longer period and hence negative scoring Force 3 Suppliers:

Many iron ore producers in the industry yet there is no substitute to the product. Suppliers also can forward integrate in steel making to build pressure on the buyers. Force 4 Rivalry

Though „Mining Company‟ is seasoned player in iron ore mining industry yet scores negative as there is little differentiation between competitor‟s products with little variance in grade / concentration of iron content in the ore. Also Iron ore mining industry is a mature industry and hence offers very little growth. Also there are more players of the same size as that of „Mining Company‟ Force 5 Potential Entrant

For any new entrant to venture into Mining Industry attracts a lot of capital investments, in the form of applying for lease, royalty to surface right owners, machinery, exploration, development and mining of ore, mineral processing, transport etc. Also many compliances from various departments demand time and capital investment. Since „Mining Company‟ is an old and experienced player in the industry scores high in all aspects.

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Section 4 Organization Analysis using Malcolm Baldrige National Quality programme

With the understanding that Baldrige criteria for performance excellence are about winning marketplace with high performing, high integrity, ethical organisations, „Mining Company‟  was analysed on the Core value concepts embodied in seven categories. 4.1 PREFACE: Organisational profile of „Mining Company‟ „Mining Company‟  is an Indian company which owns and operates several mining

properties like Iron ore, Bauxite and Lime stone. The Company operates in five states of India i.e. Goa, Maharashtra, Karnataka, Rajasthan and Andhra Pradesh and Indonesia, Malaysia and Brazil. We exported first shipment in 1960 to Holland. „Mining Company‟  has been supplying iron ore to Nippon Steel Corporation and Sumitomo metal Industries since last 50 years. Entered into long term supplier contracts with world renowned steel Companies like Arcelor Mittal Romania and Ping Xiang Steel China. For consistently supplying ore with agreed specifications without even a unit diff erence, Sumitomo has conferred upon much coveted “ E v e r g r ee n c o v e n a n t   a memento of trust. ”  

When established in 1957, „Mining Company‟ was only restricted to only mining, processing, and exporting iron ore. Now have pioneered ore beneficiation – through „Mining Company‟ Concentrates, a 100% export oriented unit. Grew in diversity - providing services in trans-shipment, exports, trading, off take,

and mineral processing. „Mining Company‟, with consistently maintaining highest standards of safety,

efficiency, and emissions at all the mines, the group operated Mines have been bestowed by Directorate of Mines and Safety. „Mining Company‟ in its early years adapted modern techniques in pit dewatering,

dust suppression, waste management, and afforestation, backfilling, and land mitigation thus committed to betterment of the environment and surroundings. „Mining Company‟ is at the forefront of innovation in the region and hence Leader  in the field. „Mining Company‟ has always maintained flexible and reliable approach to logistics

to meet the varying needs of our esteemed customers.

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4.2 Mission statement, Vision Statement, Value and Philosophy of „Mining Company‟ Mission Vision

Maxmise corporate value with sustained growth of assets and deliver optimal stakeholder value Build Financial and physical assets on Human Resources, Technology, Management skills, Managing change, Building long term customer relationship while operating to ensure sustainable social and environmental growth.

1.Have the will to change 2. Value internal and external stakeholders 3. Safety of assets and Human Resources 4. No compromise on ethics Philosophy 1. Continuous supply through secure access to resources 2. Demonstrate the socio- economic benefits of resources utilisation to most Governments and communities 3. Ensure that the resources are consumed safely and in sustainable manner 4. Always play for greater team 5. Remember our roots 6. being self-accountable Value

Table 3: Mission, Vision Values and Philosophy of „Mining Company‟ „Mining Company‟  has always believed in respecting the interest of internal and

external stakeholders with sustainable and consistent growth. The whole existence of the Group revolves around the 6 top philosophy principles. 4.3 Communication methods in Mining Company

Tawn Hall Meetings  Annual Employee Meetings

  y   a   w   o   w    T

  y    h   p   o   s   o    l    i    h    P   y   o    l   p   e    D

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Bulletin Boards Orientation

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Employee Handbook

Intranet

  s   c    i    h    t   e   y   o    l   p   e    D

 

Newsletters

Department Meetings

   h   g   e    i    h   c   n   e   a   g   m   a   r   r   o   u   f   o   r   c   e   n   p    E

  

   k   c   a    b    d   e   e    f   e    k   a    T

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  n   o    i    t   a   m   r   o    f   n    i   e   r   a    h   s

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  s   s   e   r   g   o   r   p   e    t   a    d   p    U

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  s   e   e   y   o    l   p   m    E

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Table 4: „Mining Company‟ Communication methods 11 | P a g e

  n   o    i    t    i   n   g   o   c   e    R

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  s   r   e   m   o    t   s   u    C

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  y    t    i   n   u   m   m   o    C

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4.4 Key characteristics of „Mining Company‟ Culture

Key characteristics of „Mining Company‟  Culture reflect „Mining Company‟ philosophy, and drive improvement in structure, processes, and focus to support rapid growth without losing sight of any individual stakeholder group. Characteristic

Areas of Focus

Performance Excellence

Commitment to delivering best grade ore to customers, best work environment to employees including revenue and profit growth, continuous improvement, high-quality innovative production equipment

Customer Focus

Customer Satisfaction, Voice of the customer

Employee Focus

Leadership focus on creating the environment for employee success, strong reward and recognition programme, best work environment, growth oriented work culture

Teamwork / process oriented Engaged / Aligned workforce

Everything done by a team and through a process Engaged employees; aligned with Philosophy, Corporate goals, and objectives making a positive difference in millions of lives

Table 5: Key characteristics of „Mining Company‟ Culture „Mining Company‟ values stakeholders: customers, employees, and its shareholder. The importance „Mining Company‟  places on these stakeholders is reflected in the Fomento‟s Philosophy„s Guiding Principles (values) and ―Why We Exist (purpose). Fomento‟s Mission was developed to provide sustainable growth to the organisation

thereby optimizing stakeholder value. „Mining Company‟ strongly believes in Meritocracy, human dignity growth realization

of potential performance based rewards. „Mining Company‟  culture believes in the immense potential of its highly motivated

and achievement oriented employees, providing them with freedom at work, unmatched leadership opportunities and chance to excel at a rapid pace. This is coupled with competitive pay structure and on-going training. Integrity, trust, fairness and honesty are the basic principles that guide strategies and behavior at „Mining Company‟

In addition, each line of business (LOB) systematically identifies its own core competencies including the production and beneficiation, technical, and marketing, to create strategic advantage in its specific market.

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4.5 Rules and Regulations „Mining Company‟ is driven by all rules and regulations. Area

Standards Bodies

Iron ore Production limits

Environmental clearance by MoEF Beneficiation plant Inspectorate of Boilers and safety Employee Health and Occupational safety and safety Health Administration Environmental Protection MoEF Safety Directorate General of Mines and Safety Mining and transportation Directorate of Mines and regulations Geology Table 6: Regulations and standards „Mining Company‟ is subject to myriad National, and state standards and Mining

regulations as summarized in the table above Production limits for any operating mining lease is set by Ministry of Environment and Forests called environmental clearance weighed in metric tons. Besides this other rules and regulations have to be abided from time to time like submission of Mining plan for approval, Air and water monitoring, Health and safety, Environmental protection and guidelines of Directorate of Mines and Safety. Directorate of Mines and geology also control the operations at state level.

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Section 5 „Mining Company‟ on Baldrige Organisational excellence Model 5.1 Leadership 5.1.1 „Mining Company‟ Senior Leadership

The hierarchical structure is very simple with directors for each department overall presided by Director Operations, Managing Director and Chairman. Executive Committee

For each Mine location, statutory manpower required as per Mining law is maintained and a General Manager region-wise manages mines. Unit Management Committee „Mining Company‟  has established advisory board to provide timely direction on

cross functional processes including various initiatives to improve performance. Advisory Board a)

Mission, Vision Values and Philosophies

In 1999, an employee team commissioned by senior leaders established Fomento‟s

Purpose i.e. vision (table 3) and Guiding Principles (table 3) to preserve those basic values which we believe has made our organisation the leader and best place to work for. Senior leaders commissioned the Mission as listed in Table 3 to focus growth. „Mining Company‟  Philosophy forms the core that guides decision making, a foundation that supports constant change for sustainability. The  Executive Committee reviews Mission, Vision of the oraganisation vis a vis stakeholder‟s

interest. Unit Management Committee with expertise in the requisite field plays a key part in deploying „Mining Company‟  philosophy, and deploying strategies and plans and

managing operations. Advisory Board facilitates communication across the „Mining Company‟  Through

this model, senior leaders ensure that policies reviewed during business review meetings are in alignment with Mission. b) Communication Method „Mining Company‟  is managed by young and dynamic leader / Managing Director

who believes in two way communication with his entire team downwards and from lowest strata of employees back to him through various channels. Table 4

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Town Hall meetings: held every quarter all employees look forward to be part of it. Annual Employee Meetings: held once a year as the name suggests. It is held in

the first week of financial year start to discuss performance of the company and employees in the previous year and to set the targets for coming year. Bulletin Boards: major communication at the mines happens through bulletin

boards. Business Review Meetings: All the directors participate in this meeting held once in

a fortnight. Usually held at different mining location to understand local problems, social issues if any and so and so forth along with usual department wise discussions related to achieving targets. Employee handbooks: has one article written by the MD or senior leader which is

related to business challenges etc. Customer and vendor meet: Best way to understand expectations of the

customers. Things to do: Informal news bulletin for employees to contribute suggestions Mine wise operations meet: to discuss operational issue from mining to logistics.

 All employees irrespective of their rung in the hierarchy have access to all senior leaders and Managers at any time. Senior leaders play an important role in Reward and Recognition programme, sponsoring and presenting awards that reinforce High performance, and stakeholder focus. To ensure Fomento‟s core philosophy is strictly complied by Review team meets

every month to discuss issues related to various departments Mining Unit wise in various states in India and decisions are taken and conveyed to ease the operations. Stevedoring meets are held to discuss issues in water way logistics. Senior leaders demonstrate their commitment to Fomento‟s Guiding Principles through their day to day decisions and actions as shown in table 5 and their active participation in a) b) c) d)

Business Review meets Mine visits Vendor meets Performance meets Constant participation in training

Senior leaders are held accountable for their decisions in Performance management. Including annual assessment. creating work environment that is gender equal, employee friendly and suitable for performance improvement. 15 | P a g e

Senior leaders communicate and engage the workforce through methods listed in table 5 and Senior leaders communicate with and engage the workforce and communicate methods listed in table 5  Two-way communication occurs through various meetings, function leadership meetings, cross-functional team participation, staff meetings, and participation in training for new and existing employees. Senior leaders conduct annual meetings for all employees visiting each location to share progress, recognize accomplishments, and reinforce the Mission, Philosophy. They engage employees in business issues through regular business unit and Business reviews and assess their engagement. Senior leaders also interact with employees through project reviews, one-on-one meetings, and employee events and recognition Open communication and high performance, in which the CEO and his direct reports are responsible for enabling employees to serve customers.  All employees have access to all senior leaders and managers at any time. Senior leaders play an active role in employee reward and recognition, sponsoring, selecting, or presenting awards that reinforce high performance, customer, and business focus Monthly progress reports and Business reviews provide forums for senior leaders to sustain an organizational focus on goals and objectives. 5.1.2 Governance and Social Responsibility

FR protects stakeholders interest with regular reporting, auditing process, The code of conduct outlines expectations for all employees regarding ethical behavior, compliance with laws and regulations, company policies, and conflicts of interest. The CCO and CEAB oversee this process, which includes review and resolution of any issues that arise, assessment of broader trends, and corrective action. Corporate External audits and internal audits ensure financial accountability and systematic improvement of the quality system and areas like tailing dams. An independent auditor conducts external audits and reports to the board and senior leaders. Independent auditors ensure independence in auditing and compliance with legal, regulatory, and organizational standards. Ethical values are embedded in the „Mining Company‟Philosophy and made explicit in its code of conduct. It is periodically refined and improved. The code of conduct outlines expectations for all employees regarding ethical behavior, compliance with laws and regulations, company policies, and conflicts of interest.

Ethics & Values and Integrity & Trust are core competencies and every employee is assessed against these competencies. Approach to ethics is introduced to new

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employees during orientation. Annually, every employee completes training and passes a test to demonstrate knowledge. Societal well-being and benefit are embedded in the Philosophy, which identifies improving the quality and providing an enjoyable and rewarding place to work. „Mining Company‟  shares best practices in its core competencies of employee

engagement, continuous improvement, innovation, and customer relationships. Senior leaders set the example with their involvement, joining employees to support key communities by: Sharing expertise and resources to improve the quality of life through direct sponsorship and participation in company-selected activities and organizations   Supporting community activities and organizations like Magic Bus, Missionaries of charity old age home in Carambolim Goa, Women self-help groups, various schools, Residential school for underprivileged school children like Balram High school, Panchsheel High School. Participating in industry and professional organizations to support employee development and industry information sharing like Mines safety week. Supporting local universities through internship and Co-op programs and use of academic project teams like „Mining Company‟Knowledge, GET Scholars for studies at internationally renowned Universities, Modubab Scholarship to study at London School of Economics.

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„Touching lives‟ is active involvement in supporting orphanages, setting up

Gymnasiums, libraries, women training centers, and elderly assistance.

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5.2 Strategic Planning 5.2.1 Strategy development Process

 A review of „Mining Company‟ Philosophy and Mission, and the prior year„s plan provides a backdrop on strategic direction. Each business and function champion uses common planning templates and workbooks designed to ensure that blind spots are addressed, SWOTs Table 1 are analyzed, core competencies are defined and early indications of major shifts are considered. Technical, business, and functional representatives from across the organization participate on these teams, facilitating cross-functional alignment throughout the organization. Fomento‟s strategic planning process has different time horizons and classified

based on duration in years. Annual planning translates long term plans of other time horizons into action plans

which mainly include resource allocation, prioritization and identification of problem areas. Five year horizon includes new mining lease development, environmental planning,

mines safety provisions etc. Ten year horizon includes long term market exploration, revenue forecasting

evaluation and revision of vision and strategy. There are identified initiatives to capitalize on significant business opportunities. Through the Strategic planning processes, „Mining Company‟  identifies its core competencies, strategic challenges and advantages. Strategic challenges and advantages are identified through SWOT analysis, as well as a strategy summary detailing competitive advantages by each business, region, and corporate function. The Advisory Board validates that the proposed plan and functional requirements will sustain near and longer-term success. Where adjustments are required, the planning group adjusts requirements and modifies the required resource budget appropriately. CDI evaluates the effectiveness, efficiency, and cycle time of the planning process using survey and other input from process stakeholders, making improvements for the next planning cycle which are discussed during the kickoff and training. The Advisory Board evaluates the effectiveness of the entire process. 5.2.2 Strategy Deployment

Short term and long term action plans are critical to achieving set goals. There are guidelines that indicate key planned changes in products, customers and operations. The Goals are set on SMART principle.  Action planning process begins with rationalizing budgets and assigning responsibilities to teams. 18 | P a g e

Strategic plan is deployed to various levels of employees by different ways. Based on the strategic plan developed by senior management define their team and individual goals. These goals are refined during employee meetings of Performance Management. Senior leaders review progress and make mid-term corrections. Using process indicators, benchmark and comparative studies employees track their performance. Various vendors and channel representatives are involved in meetings when deployment of plans in distribution channel is required. Review meetings are held from time to time to discuss effect of changes in action plan. If the changes appear to help improve the set goals, modified action plan is immediately deployed. Project Managers and senior leaders develop action plans to identify financial and Human Resource requirements. Assessment of competency needs and workforce capability plans are part of Strategic Planning Process. Employees set their objectives in alignment with „Mining Company‟  objectives. Fomento‟s career growth ladder and succession planning is designed in such a

manner where individual employee can see clear growth process.

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5.3 Customer and Market Focus 5.3.1 Customer and Market knowledge „Mining Company‟  uses various processes to identify product offerings that meet

customer expectations, attract new customers and solidify existing bond of relationship with the customers. Market research tools are used to understand voice of customer and their expectations from the company as far as product specification is concerned. Customer support mechanism involves various stages 1. Seeking information 2. Sell product with particular specification 3. Conduct business 4. Customer feedback 5. Build and manage relationship 6. Determine satisfaction / dissatisfaction 7. Handle & resolve complaints Customer support requirements are deployed to sales and marketing, quality control and logistics department employees in their role profile, which defines role competencies. Employees learn these competencies through on-job training and in few cases through classroom training. Their performance is then evaluated through Performance Management system.

5.3.2 Customer Relationship management

Over the years „Mining Company‟ has cultivated the culture that ensures consistent and positive customer feedback over the product. „Mining Company ‟has always strived to provide high quality ore and has created leadership position in the mining business. To ensure customers do not face problems over product specification, third party quality control laboratories are arranged at the receiver‟s port and results given by such lab is binding on both the customer and the shipper – „Mining Company‟.  Also in the shipper‟s agreement there is a clause that specifies in case the product

varies from agreed specifications, 5% less amount is to be paid by the customer. Despite all such clauses and utmost care taken by „Mining Company‟, if there are customers complaints the mechanism to redress such complaints is well established within the group. Table 6 shows complaint redressal process.

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Stage

How

Who

Originate and Capture

Complaint entry into CRM through phone call, email or feedback form

customer complaint handlers, employees in customer contact

Resolve  Analysis

Complaint evaluation Team meetings

Improve

Team meetings

relevent departments Operations team, Logistics team, quality control team Operations team, Logistics team, quality control team

Table 7: Table showing customer redressal process

How it all works: It begins with receiving customer complaint, proceeds with investigations and promptly resolving the issues in the complaint and follow up with the customer for customer satisfaction. This ensures customer loyalty to buying „Mining Company‟  produced ore than the competitors. Major focus of „Mining Company‟  is in determining and improving customer satisfaction with constantly exceeding customer satisfaction.

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5.4 Measurement, Analysis and Knowledge Management 5.4.1. Performance Measurement Key performance measures are in alignment with „Mining Company‟  Philosophy

vision and mission. Senior Management with relevant functional teams selects measures that align with set performance targets and facilitate assessment of performance. The gravity of measures set is based on each function‟s needs, with collection of

customer feedback through reporting processes which also have leeway for midterm course correction. Annual Corporate projections align with operational measures. Fomento‟s  IT network enables collection and integration of information related to Company‟s performance in the market, employee performance in assigned time

frame. Daily operations are managed through enterprise resource system –SAP. Over 1500 employees have access to SAP and can upload relevant date from their location. This information is collected at central office and back up of the same is taken every day. Geology department has department specific software namely SURPAC CAD and plotting software which enable them to complete exploration work with much ease. Measurable goals are set in performance metrics. IT generates monthly status reports which include performance evaluation vis-à-vis projected measures There could be unexpected changes or regulations that can come into force and hence the performance evaluation system is sensitive to accommodate such changes. 5.4.1.1 Performance analysis and review

Strategic operational plans are reassessed periodically (Monthly, quarterly, half yearly and annual basis) for adjustment to unexpected changes. Senior management does evaluation. Comparative analysis is taken into consideration by senior management to evaluate performance v/s projected target. Operational and financial data is integrated through CRM systems. 5.4.2 Information & Knowledge Management

Enterprise resource systems and other software have been implemented to ensure accuracy, Reliability timeliness and confidentiality of the information. The primary goal for data security and confidentiality is to ensure that access to data and transactions is appropriate. Ever since adopting SAP system, „Mining Company‟  has a defined process for authorization to major systems that includes manager approval, review by an IT domain expert, and review by functional leaders for certain levels of access, and review by an IT Authorization Manager prior to access being granted.

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IT department follows a formal process to review and approve requests for access to systems. Each employee is required to respect confidentiality of data / information. IT policy in this case includes code of conduct and non-disclosure agreement which has to be signed by each employee and practiced in day to day operations. Individual employees either have fixed workstations or work on their laptops and can access SAP network. Respective business units are responsible for granting access to the information. In 2011 when SAP system was implemented, „Mining Company‟ conducted systematic evaluation of the value its website caters to the customers. The website is designed in such a manner that customer is provided with information related to company. Site content is managed by IT with inputs from relevant departments. Internal journal “Reflections” is generated to collect and transfer workforce information.

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5.5 Workforce Focus 5.5.1 Systems for workforce engagement

Workforce engagement and employee satisfaction is inter-related. This includes employee retention, gain sharing, and productivity etc. „Mining Company‟  has created open communication, high performance and employee engagement through various communication channels by aligning team and individual performance objectives to Organisational performance objectives. „Mining Company‟  has always respected diversity by encouraging employees to

interact honestly while treating each other with respect and dignity. Managing ethnic, linguistic diversity is a leadership competence and senior leaders in „Mining Company‟ have managed it successfully over the years. Performance measurement of employees in „Mining Company‟  is three tier programs. First employee does self- assessment. This is followed by review by supervisor or manager. Third review is done by department General Manager in association with Director. This is done keeping in mind performance against set annual objectives.  All employees are encouraged to do written performance plans that address areas of developments, skills to be acquired to grow in the career ladders. Managers evaluate employee performance against set objectives and performance plans discussed earlier. Performance payout or PP as is known in „Mining Company‟ is paid to all employees to promote togetherness and achievement of „Mining Company‟ performance goals. Rewards and recognition program is implemented in such a manner that exceeding set performance goal is encouraged. All Managers are empowered to take process related significant decisions and accountable for their actions. This has led to healthy competition and nurturing talent in well qualified workforce across the organisation. 5.5.2 Learning and development or Training needs

Cross functional transfers also helps in developing skills. Behavioural competencies are developed in alliance with Organisational performance goals and „Mining These Company‟ Philosophy to drive individual and Organisational success. competencies are interlinked with skills, abilities and expertise needed to achieve goals. Certain behavioural competencies are classified as core set of competencies to perform certain function or level in the hierarchy and are included in Performance management system. 24 | P a g e

Succession planning plays a major role in employee performance encouragement and development needs are identified through it.  All employees are encouraged to identify their training needs in discussion with their department managers. Skills needed to grow in the succession are listed out and time limit is set to achieve these skills. 5.5.3 Hiring and career progression

Once a vacancy is identified, desired and mandatory skills for the said job position are identified and internal hunt to right fit the vacant position is meticulously completed. If not then the position is advertised in news- papers. Once the shortlisted candidates meet requisite skills interviewed and selected candidates are on boarded.  A seven day orientation to new employees is given at Fomento. It includes knowing about Ethics, commitment to „Mining Company‟  Philosophy, visiting all operating units and submitting report at the end of orientation week. In addition to this, individual department orientation is also provided which differs from department to department. Training man-hours per individual employees are decided at the start of performance cycle and is strictly adhered to. This joint approach fosters satisfy both developmental needs and employee desire to grow.

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5.6 Process Management 5.6.1 Value creation process

Key requirements for value creation are determined through customer feedback. To achieve set targets operational requirements and customer‟s needs are incorporated

in the roadmap to exceed customer satisfaction. Value creation through bestpractices, minimum transportation time using best method of transport, etc is done. Formal procedures are set as part of work process design. 5.6.2 Support Process and Operational Planning Preparedness for Emergency „Mining Company‟  has emergency plans chalked out. Such emergencies are

unforeseen especially non seasonal rains, major accidents at mining site, transport snarls so and so forth. Force majeure clause in terms and conditions of any shipping contract is included to provide immunity against any extraordinary circumstances like war, strike, riot, or act of God. Force majeure is generally intended to include risks beyond the reasonable control, incurred not as a product or result of the negligence or malfeasance, which have a materially adverse effect on the ability of „Mining Company‟  to perform its obligations, as where non-performance is caused by the usual and natural consequences of external forces (for example, heavy downpour stops an loading of ore in ship or transport vehicles), or where the intervening circumstances are specifically contemplated. The very purpose of this clause is most of the shipping contracts are sensitive and time-critical. in a iron -supply agreement, the ‟Mining Company‟  always seeks to have "geological risk" included as a force majeure event; however, extensive exploration and analysis of our geological reserves is already done and in case we cannot fulfill customer requirement then we do not negotiate a iron ore-supply agreement. The outcome of that negotiation, of course, depends on the relative bargaining power of the parties and there will be cases where force majeure  clauses can be used by either party effectively to escape liability for bad performance. Preparedness for participating in Mines Safety week helps individual mining units to comply with safety standards and avoid unforeseen events like major accidents.  All employees are trained fire drills, evacuation plans are tested from time to time. Disaster management plan is place and is tested from time to time and a report is submitted.  As part of ongoing operations planned maintenance of utilities is designed.  As part of planned maintenance all heavy duty machinery used at mines, trucks and barges are repaired and overhauled periodically. To ensure uninterrupted continuity of operations, „Mining Company‟has identified critical processes. As part of the same, backup systems are in place.

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Since all the data is stored at centralized location in ERP, IT department takes backup and is stored at remote location to protect IT emergencies. Power back-up generators are installed at all locations to ensure ore beneficiation plants do not strop operations. „Mining Company‟  has been in forefront in incorporating technologies may it be automated dumpers, Volvo machinery or processing and beneficiation plant. Fomento‟s beneficiation plant is largest such plant in South East Asia with latest

technology and highest beneficiation returns of ore and minimum wastage. „Mining Company‟  partners with technology innovators to identify and explore application of new technologies. Employees are encouraged to participate in conferences, seminars, and trade shows world over to understand advent in technology. „Mining Company‟  was first to introduce video conferencing and connect mines at remote locations with each other and with the corporate office. Driving classes to ensure safety included simulator to enable drivers to understand safe and systematic driving. Project and process reviews provide oversight and in-process and sampling of the ore at regular intervals of transportation to ensure quality control and product specifications are not compromised with. Geological exploration also forms the part of quality control process road-map. Capital expenditure is controlled by a proper process.  A proper corporate spending policy for specific time frame is designed. It has various spending authorisation levels. Finance metrics includes cost, revenue and projected forecast which enables senior management to do comparative study of projected versus actual financial budgets. Compliance certificates are essential for mining operations. These compliances need to be renovated from time to time. A proper Environmental department is in place to ensure all compliances are in place and no certification is obsolete. For example environmental clearance, pollution control certificates, mining plans need to be submitted to various departments and need to be approved prior to operating any mine.  All manufacturing equipments are maintained and calibrated to ensure proper control and ore quality. Training is mandatory to ensure performance excellence and forms part of operational roadmap. Strategic planning provides forum for sharing best-practices which drive improvement in enabling processes. Participating in external assessment such as Mines safety awards, geology meets, also is practiced as part of process management. Work improvement lessons learnt are shared through various means of communication.

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5.7 Results 5.7.1 Product and service Outcomes

Process indicators are used to monitor performance on customer needs. Tracking of Key metrics that measure customer needs like timely shipment of quality ore, is always in place. Customers can easily reach „Mining Company‟ through best communication methods and provide their feedback. Continuous customer support is in place which sets „Mining Company‟ apart from its competitors. 5.7.2 Customer focused outcomes

Continuous customer feedback and ensuring customer satisfaction is part of „Mining Company‟ Excellence. „Mining Company‟  tracks customer dissatisfaction in product quality specifications and compensates in subsequent shipments or 5% less payment clause. Over the years „Mining Company‟  has learnt that prompt and efficient service is customer

requirement. Customer satisfaction is measured by repeat orders, transactions and overall relationship. 5.7.3 Financial and Market outcomes

Continuous targets are set depending upon market movement. When economy slowed in 2008, „Mining Company‟  changed revenue target and focused on high quality ore selling and low quality was stacked. In 2010-2011 when market boomed again low quality ore stacks were also offered in the market thereby increasing „Mining Company‟ revenue. Profitability improvements are ensured through process efficiency. Strategic planning and customer focused processes enables „Mining Company‟ to sustain its leadership position. 5.7.4 Human Resources outcomes

Workforce survey and employee engagement surveys are in place to ensure human resources in „Mining Company‟ are well in satisfaction index. Despite the trend of hop-skip-jump  in recent times, „Mining Company‟  has employees serving the company for average 20 years. „Mining Company‟  has always treated employees as a family and no interest loan policy, education support to employee children ensures Human Resources in the company are satisfied.  A robust reward and recognition policy  is in force in „Mining Company‟  which ensures that performance is rewarded and awarded handsomely.  All employees are treated with equality and all fairness irrespective of their ethnic and geographical origin, gender and preferences. Numerous formal and informal programs offer recognition to individuals and their teams. 28 | P a g e

„Mining Company‟ is excellent paymaster and this also ensures that employees get paid for their contribution in Fomento‟s profitability. Despite bas „Mining Company‟ has strived to conserve jobs through worst economic

condition of last couple of years. Health checkups, medical assistance in case of major illness, group health insurance, personal accident insurance etc. are in practice. Skills development training also forms part of improvement drive and helps in enhancing performance. 5.7.5 Organisational Effectiveness outcome

Simulated emergency is planned by IT to tackle disaster recovery. Key measures for support process performance include indicators for HR, Finance, IT, quality control and logistics. HR measures support process of performance such as average time to quality hire. Timely on-boarding of talented manpower is key to performance excellence. HR budgets are set to ease hiring of quality manpower and give the business the resource they need. Supplier scorecard ensures quality parameters are met with, timely delivery of product. Process alignment to customer needs is practiced at „Mining Company‟ that ensures Customer satisfaction. 5.7.6 Leadership and Social Responsibility outcomes „Mining Company‟  has set goals to be achieved over different time horizons. Each

goal is benchmarked based on the product (iron ore, bauxite, and limestone). Impacts are forecasted or anticipated well in advance and thus keep costs under control. This also enables reshuffling of Human Resources, machinery to critical areas.  Auditors indicate financial accountability. Legal compliance is also adhered to and periodical check ensures no compromise policy is strictly followed. Electronic display board displaying Lease details are placed at all mines which shows lease no, lease name, EC quantity, achieved quantity for the year, air and water pollution details. Senior leaders encourage ethical behaviour and adherence to rules and regulations.  At Fomento, we call Corporate Social Responsibility by another name – “Touching Lives” . To us CSR means reaching out and partnering our communities with vigour and enthusiasm. Through “touching lives” „Mining Company‟  established ASHIYANA  Trust for improving, guiding and inspiring the lives of underprivileged women and children. Through ASHIYANA we manage ASHADIP a school for children with special needs and an old age home. 29 | P a g e

“Gyan Jyoti Puraskar” -annual scholarship to students right upto their Post graduate

level. „Mining Company‟group strongly believes in Meritocracy, human dignity, growth,

realization of potential & performance based rewards. Though our employees work together to achieve shared goals in accordance with our philosophies, entrepreneurship and independent decision making is encouraged. We deliver value to our customers through our employees, communities and suppliers in India and other countries. In turn this opens up opportunities to employees to enhance their skills, encourages them to become out-of-the-box thinkers, and to make decisions with confidence. 5.7.6.1 Community Support „Mining Company‟  is proud of its relationship with Communities .This enduring

relationship is characterized by mutual respect, active partnership and long term trust. Consistent with the Philosophy of Alliance everyone at „Mining Company‟  has worked tirelessly over the years to enhance standards in Health, Education Senior Citizen support and Social Development for the benefits of the Communities. a) Health „Mining Company‟  is the second largest provider of the health care in the state of

Goa, second only to the Government.  

    



We provide 18 Clinics with specialist doctors Free consultancy by Doctors specialized in Dermatology, General Medicine, ENT, Ophthalmology, Obstetrics & Gynecology to name a few. Health checkups through Experienced medical professionals Significant health infrastructure such as 24 hour Ambulances Free of cost Medicine supply Health awareness workshops with specialist Doctors A first of many corporate initiatives  –  provision of Occupational therapy services for children with special needs. State of the Art Hospital at Village Redi, Maharashtra

b) Education „Mining Company‟‟ commitment to relationship with students, families and teachers is

reflected in their educational activities. Ashiyana Trust

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

 











 

Gyan Jyoti Puraskar Scholarships  for students coming from economically

disabled families till the completion of their higher education Transport facilities for the students Distribution of School Uniforms, books, dictionaries and monsoon wear every year “Confidential” Scholarship, in memory of our founder at the London School of Economics to fund meritorious Indian students who secure admission in LSE “Confidential Education Trust”  to fund education of students securing admissions in various Educational Institutes globally. Teachers in subjects like English, Science and Mathematics have been provided to impart additional training and assessment in various Schools across Goa and Konkan region in Maharashtra Manav Vikas Kendra  through which three month intensive motor driving training is imparted Computer training centers in the state of Goa, Maharashtra, Rajasthan and Karnataka to impart basic computer literacy to community members of the villages. Music teachers for students interested in learning music Music and Dance therapy to special students

c) Senior Citizen Support System Missionaries of Charity is a home for elderly. This home is operated by sisters of the Congregation of The Missionaries of Charity.    

 

Free medicines to seventy elderly residents. Physiotherapist for Occupational Therapy. Specialist Doctors visit and prescribe medicines. Basic necessities such as bed sheets, clothes, walking sticks, etc are provided. Regular maintenance of the home and providing miscellaneous help Vehicle assistance and transport facilitation

d) Sports Sponsorship to deserving sportsmen to hone their skills in their chosen field Supporting Magic Bus India Foundation Distribution of Chess boards to all 185 Panchayat in Goa to encourage leaning to play chess e) Women Empowerment and Social Development Self-help groups in villages have been helped with sewing machines, utensils for catering contracts. Culinary competitions for women in various villages Sponsorship for cultural programmes in various villages   



 

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Sr. No

1

2

3

4

5

6

7

„Mining Company‟ on Organisational excellence Model Leadership „Mining Company‟ Senior Leadership

Max Score

Mining Company Score

120

110

70

60

Mission, Vision Values and Philosophies Communication Method Governance and Social Responsibility

50

50

Strategic Planning

85

81

Strategy development Process Strategy Deployment

40 45

39 42

Customer & Market Focus

85

82

Customer and Market knowledge Customer Relationship Management

40 45

40 42

Measurement, analysis and Knowledge Management

90

75

Performance Measurement Information & Knowledge Management

45 45

35 40

Workforce Focus

85

70

Systems for workforce engagement Learning and development or Training needs Hiring and career progression

35 25 25

30 20 20

Process Management

85

59

Value creation process Support Process and Operational Planning

45 40

30 29

Results

450

415

Product and service Outcomes Customer focused outcomes Financial and Market outcomes Human Resources Outcomes Organisational Effectiveness outcome Leadership and Social Responsibility outcomes

100 70 70 70 70 70

92 65 65 65 60 68

Table 8: Performance of „Mining Company‟ on Baldrige Organisational excellence Model

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Section 6 HR Audit using PCMM

The People Capability Maturity Model is a proven set of human capital management practices that provide a roadmap for continuously improving the capability of an organization‟s workforce. The People CMM refers to these practices as workforce practices. Organizations are now competing in two markets, one for their products and services  and one for the talent required to produce or perform them. An organization‟s success in its business markets is determined by its success in the

talent market. At the very time that business markets are expanding, talent markets seem to be shrinking. As the knowledge required building products and delivering services increases, the retention of experienced employees becomes critical to improving productivity  and time to market. In every domain of business, executives know that their ability to compete is directly related to their ability to attract, develop, motivate, organize, and retain talented people. Yet the people-related challenges of the business stretch far beyond recruiting and retention. Competing for talent and recruiting the best is not enough, and focusing  just on winning the “talent wars” can be damaging to the organization. As agility in

responding to continual change in technological and business conditions has become critical to success, organizations must strive to create learning environments capable of rapidly adjusting to the changes engulfing them. A critical component of agility is a workforce with the knowledge and skills to make rapid adjustments and the willingness to acquire new competencies. Organizations have attempted to apply many different techniques in their efforts to move towards strategic human capital management. They combine downsizing with restructuring, apply reengineering or process improvement, clearly communicate the organization‟s mission, improve information sharing, institute employee involvement programs, establish formal complaint-resolution procedures, institute gain-sharing or other incentive plans, emphasize the importance of training the workforce, formalize performance management and feedback processes, perform job or work analysis and design, support job rotation, begin to establish team-based work designs, retrain employees to meet changing demands, provide flexible work arrangements, address diversity issues, conduct formal mentoring programs, and align business and human resource strategies. With the primary focus on improving workforce capability, an attempt to evaluate „Mining Company‟ on level 2 of PCMM certification has been done here.

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6.1 Staffing

Since there are around 21+ mining leases of the „Mining Company‟ unit-wise staffing needs are analysed. Unit Managers coordinate staffing needs based upon Unit target for any given year. Manpower requisition form (MRF) is duly completed by the Unit Manager. This

form is then assessed by General Manager responsible for functioning of the Unit. This in turn is sent for approval of Director of the Department and final approval is taken from Director Operations.  After the assessment is complete and it is established that particular staff is required, HR department is intimated about the same through MRF. Mandatory and desired competences for the said position are also intimated to HR in the requisition form. Turn- around time (TAT) to raise MRF and approval by Senior Management is 48 hours. Once MRF is received, in house search is completed for the required talent by communicating to all the Units, and if not then applications database is searched for. If not available from within then advertisement is placed in national and local dailies, job portals  and depending upon criticality and urgency  of filling the vacant job position TAT of a week to a fortnight is allowed to receive applications for the job positions. Short listing of received applications keeping in mind mandatory and desired capabilities, qualification and experience is done by HR in guidance with respective Department Director. TAT 24 hours. Interview is scheduled with a panel comprising of Recruitment Manager, Department Director, General Manager and Manager of the Unit. Candidate for the position is selected. BEST FIT Salary negotiations are done based on the approved budgets. Fringe benefits / perquisites depend upon position in the hierarchy. The selected candidate is on-boarded and inducted into the system. The induction process has introduction to „Mining Company‟ Best Practi ces, Ethics.

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6.2 Communication

Keeping in mind Communication and Coordination establishes the basis for developing and empowering workgroups „Mining Company‟ has established various channels of communication. „Mining Company‟ has a social environment where all employees have access to

Senior Management at any given point of time. Irrespective of their ethnic, geographical and linguistic origin and gender, the staff is treated and heard with equality. „Mining Company‟ has created open communication, hi gh performance and

employee engagement through various communication channels by aligning team and individual performance objectives to Organisational performance objectives. „Mining Company‟ has always respected diversity by encouraging employees to

interact honestly while treating each other with respect and dignity. Managing ethnic, linguistic diversity is a leadership competence and senior leaders in „Mining Company‟ have managed it successfully over the years.

Two way Information is shared between the senior management and the employees through various forums as represented in Table 4 This information could be related to product, code of conduct, new policies being framed and opinions of all the employees is being sought. Grievance redressal cell is established by HR department with members from various units and departments and various hierarchy levels with senior management as advisory members. Standard operating procedure (SOP) is in place to raise grievances and resolving the same. Individual employee can always raise their opinions to the Senior Management through emails, and other forums and are effectively resolved through proper channels of grievance redressal. Employees are groomed for communications skills needed to perform tasks effectively. Mandatory training is imparted in modes effective of interpersonal communication to all levels in the hierarchy biannually.

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6.3

Work Environment

„Mining Company‟  is keen to provide favourable work environment to perform

towards achieving set targets. Company‟s performance management system is robust and provides necessary

resources like machinery, best in class equipment, to fulfill job responsibility of an individual and team therein. The Principles that „Mining Company‟ follows revolves around following rules and

regulations and ethical behaviour. This is reinforced through the Senior Management and their behaviour and reflected in their decision making. Work environment is such that ethical behavior is promoted. Environment, health and safety is given priority while working and all employees are trained. Regular health checkups are done for air borne diseases due to dust pollution, and water borne diseases. Dermatologists and ENT specialists along with general physicians are recruited to take care of health of the employees and their families. Safety gears like, helmets, safety shoes, gloves etc. are provided to ensure that safety measures are prioritized while performing any work. It is reiterated from time to time that though it is important to achieve set goals, safety plays major role at every part of work life. Major problems arise when surrounding community stops working of the mine siting reasons that can be resolved. Such stoppage of work results into shifting of target achievement dates. Senior management strives to resolve such issues that lead to interruption work by being in touch with community leaders and people in the surrounding of the mining leases. Unionised employees‟  used to often go on strike. Taking note of their grievances management has introduced best work practices that promotes healthy work environment and such instances have reduced to none in last 10 years. These thoughtful measures have resulted in improvement in work and timely achievement of set targets yet following rules and regulations.

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6.4 Performance Management

Performance criteria are set for the organisation. These are further broken down into Unit-wise performance criteria. These are further broken down to Department level performance criteria and team level followed by individual position-wise performance criteria by setting up the targets. Every unit gives its projected performance at the start of financial year which is reviewed periodically to track performance record. Every individual is trained on performance indicators at the start of Performance cycle and is given definition of business role the employee is expected to perform. This leads to planning the performance with setting up individual objectives and development plans. Individual performance targets are formally reviewed every quarter to track the performance and corrections if any. Progress track is always in force with occasional inputs from the advisory board and the senior leaders. Monitoring is done to ensure that timely management support is received to enhance performance by means of providing necessary machinery and related resources are to enhance performance levels of the individual, team and Unit.  Assessment at the end of performance period is done and is linked with pay rise and promotion.  A robust Reward and Recognition policy is in place with SOP for the same.  A unique „performance pay‟  is given to each employee in addition to the bonus.

Performance pay is equal to all the employees across the hierarchy Performance pay is directly proportional to „Mining Company‟ performance v is-a-vis

set sales targets, zero accident targets and ethical behavior targets.

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6.5 Training & Development

With the understanding that to perform any job to desired level of expectation, there are mandatory skills and desired skills necessary. If an employee has desired skills and lacks mandatory skills then the individual needs training to enhance the skills. If new processes, machinery IT software is introduced to enhance performance and ease the task, all employees irrespective of their qualification need to undergo training. Training in certain skills is also required to perform the given assignment and to provide development opportunities in career growth. „Mining Company‟ has critical skills listed out needed to perform critical task. In-

house training department is largely into training need analysis through TNA surveys. The outcome of survey is shared to the Advisory board and senior Leaders. In case in- house training can be provided it is arranged for. Otherwise employees are nominated to various training schools to impart training. Every year every individual has to undergo fixed man-hours of training depending upon level in the hierarchy, and it is observed by all the units. Employees also express their desire to undergo training in certain skills and are encouraged by HR department by arranging for their training. This leads to healthy work environment which is conducive for enhanced performance.

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6.6 Compensation

Last but most important is Compensation management. Compensation Management is more than just the means to attract and retain talented employees. In today‟s competitive labor market, organisations need to fully leverage their human capital to sustain a competitive position. This requires integrating employee processes, information and programs with Organisational processes and strategies to achieve optimal results. To recruit and retain highly competitive talent „Mining Company‟ has its

compensation management plan in place. Compensation scales are well above market standards. Compensation strategy is reviewed vis-a- vis industry salary benchmarking and correction in scales is done. The workforce is informed about the compensation plan revisions from time to time. Compensations and benefits team with directives from senior leaders review compensation packages. Discrepancies are sorted out, corrections are made according to level in the hierarchy.

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Section 7 Project Summary Objective

This project study was taken to analyze a major Mining Company in Goa (hereafter referred as „Mining Company‟ since Senior Management was benevolent enough to allow me to use most of the insider information but has denied permission to use Company name anywhere in my project)  which is one of the

largest exporters of Iron ore from India on various Organisational development parameters. Also confidential data related to export quantity, quality of the ore exported & revenue earned and details of Human Resources could not be shared since its confidential Scope

Mining Industry in Goa is a major contributor of foreign exchange to the country exchequer. Section 2 Porter‟s five forces v/s „Mining Company‟

The Company was analyzed using strategic tool - Porter‟s Five Forces. Here the Company. Company faired excellently as practically there are no substitutes for Iron ore when it comes to steel manufacturing. Buyers also cannot threaten the existence or market presence of the „Mining Company‟ since the product of competitors also is of similar nature.

Since capital investment for new entrants is huge, along with cease on granting new leases, threat from potential entrant almost Nil. Switching cost is relatively low but product quality might drop and hence buyers do

not switch between iron ore suppliers. Since „Mining Company‟  is an old and experienced player with penchant for

innovations and adopting new technology, it scores high in all aspects. Section 3 Baldrige Organisational Excellence model

When analysed on Baldrige National Quality Program, „Mining Company‟ scores really well. But needs to pay attention and improve certain processes where only need based attention is given.

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