To identify the requirement of IT support for Manpower Planning Process in TATA Steel

By

Saurabh Kumar
U109156

under the guidance of

Mr. P.N. Prasad Chief IR(Establishment) TATA Steel

Xavier Institute of Management

Bhubaneswar - 751013 June, 2010

Acknowledgement
This project would not have seen the light of day, but for the opportunity provided by TATA Steel. The company has helped me bridge the gap between academic institution and corporate world by letting me undertake an internship. I would like to express my sincere gratitude to my project guide Mr. P.N. Prasad, who showed me direction but at the same time provided me with autonomy to make my own choices. In his guidance my stay at TATA Steel expanded from a project to a much larger learning experience. I would also like to thank the entire IT-IR Implementation team for supporting me during the two months and helping me develop an understanding into my project I would like to thank all professionals who took the time out to answer my questions and provide me insights about my project. I would like to thank them for their contributions, which have been invaluable. The internship made me undergo the rigor of professional environment both in form and substance. It also satisfied my inquisitiveness to know more details, expose them to technical skills and acquire social skills by continuously interacting and communicating with professionals. It gives me a sense of great pride to acknowledge the fact that working on this project has added value to my learning process.

Certificate of Approval
This is to certify that Mr. Saurabh Kumar, from Xavier Institute of Management, Bhubaneswar has undergone his summer internship in the Industrial Relations Division of TATA Steel, Jamshedpur working on the project To identify the requirement of IT support for Manpower Planning process in TATA Steel . The training period was from 12th April 2010 to 12th June 2010 under the guidance of Mr. P.N. Prasad, Chief IR (Establishment), TATA Steel. The conduct of the student was satisfactory during the period.

(Mr. P.N. Prasad) Signature of Guide Office Seal

Table of Contents
Acknowledgement Certificate of Approval About TATA Steel5 Business Case.6 HRPS History6 HRPS Current Scenario.6 Problem Statement..8 Scope of Project10 Methodology..11 Manpower Planning..12 Manpower Planning as an IR Process.12 Manpower Planning as a Corporate Process.13 Needs Requirement15 Manpower Planning15 Employee Profile & Data Management15 Organization Design & Management.16 Training & Development.16 Sample Study..18 Installation of an IT system19 Adoption Phase..20 Technology Choice Continuum21 Implementation Phase.21 Evaluation of Options23 Risk Assessment23 Cost Analysis24 Cost vs. Risk Matrix25 Benefits and Issues (Each Option) 26 Benefits of IT for Manpower Planning Process27 Issues related to development of In-House Solution.28 Suggestions for Implementation Phase29 Common Pitfalls in Implementation..30 Prioritization of Processes.31 Roll-Out Plan32 Table showing all the Activities..32 Critical Path33 Integration of Various systems..35 Control Measures.36 Institutionalization Phase37 Appendix.38

About TATA Steel

Tata Steel formerly known as TISCO and Tata Iron and Steel Company Limited, is the world's sixth largest steel company, with an annual crude steel capacity of 31 million tonnes. It is the largest private sector steel company in India in terms of domestic production. Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions; the company has become a multinational with operations in various countries. The company produces crude steel and basic steel products, and makes steel for building and construction applications through Tata BlueScope Steel, its joint venture with Australia's BlueScope Steel.
Tata Steel has also set up joint ventures for the development of limestone mines in Thailand, the procurement of low-ash coal from Australia and coking coal from Mozambique, and the setting up of a deep-sea port in Orissa in India. The company is exploring opportunities in the titanium dioxide business in Tamil Nadu, India, and will soon be producing high carbon ferrochrome from its plant in South Africa.

Business Case and History

Manpower is a critical resource in an industry like TATA Steel and its planning for future requirements require a great amount of effort. Accurate data is needed for future forecasting of manpower. Right now in TATA Steel the data required for these purposes are collected manually or semi-manually and hence the data may not be accurate. 10 years back an initiative was taken to digitize all these data for MPP and HRPS was launched. But with time the data in the systems became obsolete and now rarely it is used apart from looking for retirements. So, the task was given to me to explore possibilities and alternatives how to make MPP as a process based on entire information available through IT systems. HRPS History Human Resource Planning System (HRPS) was developed keeping in mind the changing business needs of TATA Steel and was developed In-House in 2000 after having the need of IT support for Manpower Planning Process. The core IR functions were covered. Its primary objectives were : How many people in a particular department Where are they working What Qualifications each one has Demographics

The system deployed at that time is not suitable to cater todays need. The requirement today has changed. Now we also need : The skill set of workers What training is required based on the skill set Vacancies to be filled in-house The HRPS should be integrated

HRPS and Current Scenario Position Profile Employee Profile ESS Qualifications

Position Profile includes the combination of Department, Section and Designation. Current systems deployed : Payroll HRIS TIPS Training 6

EBS Recruitment TMH Medical Reaps Settlement, PF etc. ECBS Employee capability TIMS HRPS Planning

Currently HRPS is not in sync with the others. There are multiple data in all the systems with the same unique ID. This creates confusion and conflict may arise. Infact, in order to plan for manpower one has to do it manually as the data available is not available correctly. This is a lot of wastage of time. Example : There are about 110 Personal Executives for about 284 departments in the Jamshedpur plant and they are responsible for the employee data to the higher management. In fact, for most part of the year they are busy in updating the employee and their details of their respective departments. On an average they are into this duty for about 6 months. So the total no. of man days wasted is :- 110*6*30 days The IT or HRPS system would have saved that much time if it would had been efficient. Also there is no such system in place for the other locations such as Jharia (Jomadoba), Noamundi, West Bokaro etc. There are gaps which have to be identified and hence suggestions to be made.

The reasons for the up-gradation/failure of HRPS : Disjoint systems The systems didnt talked to each other Need of an integrated system The system that was available was only for the Works and that too in Jamshedpur The other locations still had to plan and send the data manually Multi-point data feeding (about 50)

The ROI on making such kind of database for Non-Officers would not be substantial

Problem Statement
Manpower planning is not accurate as data visibility is not there Repetitive kind of manual work while looking out for data for employees (Dept. wise) Hence, time spent on Non-value added services on a daily basis is high Cost of wrong decisions Less time for developmental jobs

Thus, the expectations are really high and a new system or the upgraded version of the previous one should be in place. The expectations are : Reduction of cycle time by usage of an integrated system Decision support for IR Accurate Manpower Planning Complete visibility of all Position and Employee related data for Jamshedpur

To confirm the Problem Statement, I did a sample study wherein I Interviewed 8 Personnel Executives (PE) from 10 Departments. The Departments that were covered were :-

Department LD-1 LD-2 Coke Plant A-F Blast Furnace MSG MED HSM CRM NBM WRM

PE associated Ms. Neena Bahadur Mr. Yeshwant Pandey Mr. Manoj Sinha Mr. Deepankar Gupta Mr. Mukesh Agrawal Mr. Mukesh Agrawal Mr. V.P. Ragam Ms. Pamela Kerketta Mr. M.M. Pandey Mr. M.M. Pandey

The findings were interesting such as : Each PE spends about 10 hours in office on an average daily Meetings and UCM consume the most of their time (about 4 hrs. daily) An alarming 2 hours daily is spent on activities such as data compilation, data collection all related to Manpower planning

The Chart below shows the details :MPP related data collection & compilation activities (manually) 20% 2 hrs./day Developmental Jobs 5%

Meetings 26%

Safety violations & Diciplinary Enquiries etc T&D 4% 5% Reward & Recognition 3%

UCM 14% Employee Interaction, Daily Issues 11%

Plant Visits 12%

Scope of Project
The scope of project was limited to Jamshedpur (Works & Non-Works). Tubes and TGS were not included in this study. The following are the tasks that come under the scope : Understanding key drivers for manpower planning process o The key drivers include the key parameters that manpower planning needs while doing the exercise o Manpower planning exercise is also supported by some other processes too so a brief look of those processes also has to be done Identifying data & information support o The next step is to see that what kind of data and information support the IR Personnel need o Also, the source of data has to be identified Mapping of existing IT systems and Gap Identification o Once the data sources are known, it has to be seen that how much IT systems contribute for the same o If not then what are the gaps that need to be filled Suggestions for needs not fulfilled through existing IT systems o Finally, suggestions for the needs that are not fulfilled through the existing systems

10

Methodology
The following Roadmap has been used while doing this study : Need Identification o Identification of need w.r.t past, current and future requirements o Getting in touch with various stakeholders to get the required information As Is Scenario o Knowledge about current systems through various stakeholders o Detailed analysis on meeting of requirements of various stakeholders Gap Identification o Assessment of the current IT systems capable of fulfilling the identified needs o Identify areas which the current IT systems are not able to cater to IT Solution/Recommendation o Improvement in current systems or development of new systems to meet the identified gaps o Put control measures in place so as the system stays current with business needs

11

Manpower Planning Process

Manpower Planning as an IR Process

Manpower Planning is a process that simultaneously requires to handle 5 parallel activities recruitment, training, migration plan, attrition and outsourcing. The diagram above shows a brief pictorial description of manpower planning. Once a vacancy happens at any post it is because of attritions retirements, resignations, death etc. the recruitment or training of down the line employee takes place. Also in many cases Outsourcing is seen as a solution. In case of a migration plan the movement of employees can both be lateral and vertical.

12

Manpower Planning as a Corporate Process

Ste ps

Enablers

Requirement

Recruitment/Upskilling

Review

Acti on Poin ts Futur e Retire ments Availa bility of TAs, Diplo ma holde rs, Matic ulates Futur etc e Requi reme nts

Quantitative
Recruitment Plan for Diploma & TAs

Upskilling
Syndication with VPs

Ratio in Diplom a:TA:M atirc Deploy ment for core jobs for growth projects Train from within or externa l recruit ment

Placem ent Ne ed

Trainin g Eligi bility

Selecti on Training Module

Placements

I N P U T S

Cos t Ben

Actual vs Planned Recruitment/U pskilling Appro val of Mgmt Plan given to SNTI Adver tisem ent

Tim e Fra me

Various Analysis: Ne Traini Test & Scrutiny w ng & Intervie & Rati w Place Eligibility o ment List for Dipl om Recruitme Qualitative a:T A nt Ne w YEARLY YEARLY Diploma 15 Mths; TAs Depending on YEARLY Avg trade; Upskill 2 Yrs . Age Pro d. Lev els etc. This is the process which I had studied and this diagram shows Manpower Planning as a Corporate Training Plan for upskilling Employees

process from requirement to placement. I have divided the process into 4 stages Enablers, Requirement, Recruitment or Up-skilling and Review. MPP broadly comprises of two parts

Quantitative and Qualitative. On quantitative part it takes inputs from the positions w.r.t the vacancies and future requirements for the positions. Other info it seeks is from the employee inventory what is available inside right now and what is in the pipeline. This will help us to give the gap. Once the gap is identified, qualitative part starts. How much of gap should be filled by training from within and how much from outside. So the requirement then gets split into Recruitment plan for Diploma and TAs and Training plan for upskilling of employees. Then it is either recruitment or upskilling and then the need gets fulfilled

13

and the person gets placed. Finally the review is done to check the Actual vs the Planned and various analysis is done its basis so as to calculate the Diploma:TA ratio or the Avg. Age ratio etc. The data needed for each of the stages is mentioned here. Such as for inputs we need the Employee Profile and Position Profile so that we can calculate the gap. Also the qualification of people and their separations are needed. All these data has to be department wise. Then in Requirement we need the Requirement and availability of workforce department wise. The cost benefit analysis is done and then a combination of recruitment and up-skilling is chosen.

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Needs Requirement
The various needs that were required to be fulfilled through IT systems for manpower planning and the supported processes are shown below 1. Manpower Planning

Need

Current Scenario System in Remarks place

Data Reliable Data Reliable Not Not

Inputs from Organisation Design on positions/vacancy HRPS/EBS Status Existing Employee Profile Pipeline Inventory for TAs & JETs (SNTI) Data on future separations, attritions etc. Process for keeping a Planned Organisation Structure for upcoming units Decision support/What-If MIS Report Transfers/Recruitment - Internal Recruitment - External HRPS/EBS HRPS/EBS

Data Reliable

2. Employee Profile Data Management

Need
Master Data for Employee Personal Details Skill/Qualification/Trade Data Service Progression Training Information (SNTI) Payment related Master Data Disciplinary Data, Safety Violations, Accidents Attendance related Master Data Reward and Recognition Medical History Service Bond Nominations MIS

Current Scenario System in place Remarks

HRPS/HRM HRPS/HRM HRPS/HRM TIPS Payroll Data Not Reliable Data Not Reliable Data Not Reliable Data is Reliable Data is Reliable

Data is Reliable

TMH

Data is Reliable

Data is Reliable

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3. Organization Design and Management

Need
Create/Maintain/Update Position

Current Scenario System in Remarks place

HRPS Data Reliable Data Reliable Data Reliable Not Not Not

Maintain Position Profile (Critical Positions, Cadre, HRPS Qualification) Maintain Organisation Unit Department wise, Section HRPS wise Maintain Jobs (JD & JS) Maintain Clusters Maintain Acting and Promotion Chart Maintain Standard Force, Working Force and MOR Organisation Structure Chart Vacancy Status Position requirement vs Employee Skill (Skill Gap, misfit, succession etc) Profile Match Up Dept./ Section Profile Maintain pool Positions, structure Total Unoccupied positions HRPS HRPS

Data Reliable

Not

Data Reliable

Not

4. Training and Development

Need
Identification of training need based on 4Q Analysis Finalization of Training Catalog, Courses Training Resource Management Nominations and Confirmations Training Delivery Positional/Vocational Assessment of training effectiveness Transfer and Learning Improvement in 4Q Score Updating Employee Profile

Current Scenario System in place

Remarks

TIPS TIPS TIPS

Data is Reliable Data is Reliable Data is Reliable

16

The processes defined above are supporting processes for Manpower Planning as we can see from the figure below :-

EMPLOYEE INFORMATION & DATA MANAGEMENT

G A P

ORGANIZATION DESIGN & MANAGEMENT

To close-in the gaps MPP exercise is to be done MANPOWER PLANNING Once the requirement is known the following processes take place

UPSKILLING THROUGH T&D

RECRUITMENT

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Sample Study of LD-2

LD-2 is a department wherein I did a sample study for : To build a common model for all the departments taking inputs from LD-2 To identify the needs of data which is not available through the system To know the requirements at the corporate level and the format in which they want the information To develop the necessary tables (for which a system can be in place) needed while doing a Manpower Planning exercise

The necessary tables are attached in the Appendix. (Appendix 1,2 and 3)

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Installation of IT system : A Model

Adoption Phase Driving Forces Operation al - Automating IR processes - Cost savings - Increased productivity Relational - Decision making support - Superior HR service Transform ational - More developmental jobs - Employee empowerment

Implementation Phase Decision for IT Options Inhouse SAP + Oracle Inhouse Oracle Outsou rced Software Implementati on Process IR proce ss align ment Data migra tion Testin g& Delive ry

Institutionalization Phase

Decision to adopt HR Technology

Needs Analysis

Ti me Inf or ma tio n

IT IR Personne l Expectations

Internal Clients Outcome of Needs Analysis

Change Managem ent Initiatives Fa cil ita to rs

Successful Institutionalizati on Cost savings Superio r IR service IR Person nel to devote more time on VAS

Approach of the Firm - ProcessDriven - TechnologyDriven

Firm related variables

Cust omiz ed Solu tions - Offtheshelf appli Decision catio on IT ns Infrastructure -

19

Adoption Phase Needs analysis is the primary activity undertaken in the adoption phase. Organizations undertake this activity to zero in on specific technological solutions and make decisions about their IT infrastructure. In this section, our focus is on needs analysis and its outcomes. Driving Forces There are 3 driving forces that influence the technology implementation. They are :Operational Relational Transformational The need for cost reduction, higher quality services, and cultural change are the three main forces that drive firms to seek IT-driven HR solutions. These three forces are analogous to operational, relational, and transformational impact of IT on HR/IR. The classification of the impact that IT has on the internal functioning of an HR department is referred as operational impact. This impact refers to alleviation of administrative burden of HR and lowering of variable transaction costs and head count within HR. Relational impact refers to the impact that technology has on relationships that HR enjoys with its clients. Technology can enhance the quality of relationships by influencing HR response times and service levels and also by providing decision support systems to help internal clients do their jobs more effectively. Transformational impact of IT, when felt, redefines the scope of HR by enabling the function to concentrate more on strategic activities such as creating a learning environment, assisting in knowledge management, facilitating organizational transformation and so forth. In case of TATA Steel the Relational drivers play the most important role in deciding the implementation of the IT systems for IR processes followed by Transformational and Operational Drivers in the given order. The accuracy of decision making is not there because of the manual work of collection of data involved in it. Thus IT would give a decision support system for the IR Personnel. Needs Analysis and its outcome A needs analysis provides an answer to the question: What should the HRIS be capable of doing? The Needs Analysis should be done keeping in mind the requirements of various stakeholders. The team should be thorough with the knowledge of the processes involved. After the needs Analysis is done the firm thinks about its approach should it be Technology-driven or Process-driven. A Matrix is shown below how to decide which approach to follow. Also, where should TATA Steel should be placed in matrix is also shown.

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Technology choice Continuum

HIGH

II

I High Risk Zone

TechnologyDriven Approach Extent of Reengineering Process-Driven

Low-Risk Zone III

IV

LOW

Level of

HIG TATA Steel lies here in the continuum as the IR processes here are too complex and hence high level of customization is required

As the continuum shows TATA Steel requires a lot of customization for the digitization of its processes. This is due to the following reasons : Large no. of Grades existing in Jamshedpur itself Different kinds of structures existing here itself Different business rules for different locations, processes

IMPLEMENTATION PHASE Once the Adoption Phase is complete, the Implementation phase starts wherein we have to decide upon the available options. Also we have to compare the options based on some rationale. Once that is done the Software Implementation Phase starts wherein the desired application has to be installed as per the requirement. And after that a conducive climate is reached within the Organization and the Project implementation is done for the entire
21

company. But the Implementation Phase is the most important phase as it requires the best available option that can be implemented and also its applicability to the Organization. The Options that I considered for the assigned process are : Option 1 In-House development on Oracle platform Option 2 In-House ERP (SAP) Option 3 Outsourced (ERP - SAP)

These options were decided after a long consideration with experts and were the best suited for the purpose. But before assessing them one thing was important to look for Needs that SAP was fulfilling for the processes identified. This was done with the consideration that SAP-HR is already implemented for Officers in TATA Steel and hence we can identify which needs can be fulfilled and which cant for the processes.
Figures in % of Need fulfilled for each process

80 70 60 50 40 30 20 10 0 MPP 50 50

73

70 55 27 30 45 SAP Workaround & Development

OD & M

Emp Profile

T&D

This chart shows that SAP is not able to cater to all the needs that should be required for the processes. In any case we have to make some surround systems either through workaround or new development. In order to meet 100% of identified needs workaround systems based on Oracle platform will have to be developed along with Standard ERP.

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Evaluation of Options
The options were evaluated on two perspectives Risk and Cost. The Risk Assessment is done using the Gartners Model wherein Implementation, Complexity and Operational are the parameters on which the ratings is done for all the Options whereas the cost figures was taken from the ITS Department. Risk Assessment The risk assessment was done by rating some questions on the scale of 5 where 5 means high risk and 1 means low risk. It was rated in presence of IT experts for the following parameters : Implementation
Risk that organisation cannot implement the project on time, to budget or fail to deliver a workable solution Complexity Risk due to the magnitude of the complexity involved because of its scale, degree of change required, the number of parties involved etc Operational Risk that the operating costs of the solution grow uneconomic or the planned benefits from the investment do not eventuate The details of questions for each parameter is given in the Appendix.

The overall score is as follows :Options Implementation Complexity Operational Overall score

Option I (Oracle)

3.0

3.4

3.0

3.13

Option II (SAP) Option III (Outsourced)

2.5

3.4

2.3

2.73

2.4

3.4

1.8

2.53

Scale : Low Risk 1, High Risk 5

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Cost Analysis The cost figures were taken from the ITS department. The main elements that were considered for calculating the cost are : License Cost Hardware cost Labour Cost Training Cost Recurring Cost

The total No. of employees considered are 14192 (Jamshedpur Works & Non-Works only)

Options

One-Time (in Rs. Crores) 6.23

Recurring YOY (in Rs. Crores) 1.15

NPV (in Crores) 10.27

Rs.

Cost/Employee/Month Rs.) 60

(in

Option I (Oracle) Option II (SAP) Option III (Outsourced)

10.60

2.32

19.00

111

4.40

15.57

69.31

407

From the above Cost and Risk Assessment we can draw a Cost vs. Risk Matrix and hence can draw some conclusion.

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Cost vs. Risk Matrix Seeing the Cost vs. risk Matrix we can deduce a lot about the options. From this Cost Risk
Matrix we see that Option 2 & 1 are close enough too be selected but in my view Option 1 is the best bet as :-

HIGH

Cost Efficient Earlier development of systems on those platform Easier Integration

500 Option 3 (Outsourced) 250

Cost/employee/ month (Rs/month)

100 50 0 LOW 1 2 3 Risk Assessment

Option 2 (SAP) Option 1 (Oracle) 4 HIGH

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Benefits and Issues (for each option)

The following table captures the benefits and issues for each of the following options as we can gauge the fact that which option can be best suitable apart from calculating the risk factor and the cost. Benefits On the lines of already implemented SAP-HR for Officers Less time needed as structure will already be in place Issues Control Measures may not be enough Heavy customization required Integration with existing legacy systems Time frame is an issue Available expertise may not be sufficient

SAP

Oracle

Efficient cost wise Deliverables as per requirement

Outsourced

Integration would be easy with some existing systems due to common platform High level of expertise in the field Cost is an issue Delivery in minimum time May not be as per the requirements In-House staff free for other Threat to security & productive work confidentiality Loss of managerial control Unrealistic Expectations

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Benefits of IT system for Manpower Planning Process

Manpower Planning Accuracy o With the use of IT systems the data that would be in use be accurate in nature and hence the planning in terms of numbers would be accurate Reduced cycle time for vacancy filling/recruitment etc. o As the numbers would be known because of the visibility of data the cycle time would be less for both recruitments and vacancy filling through downthe-line promotions Better IR Utilization through systems o The use of systems would inhibit the better use of resources and hence better IR More time for developmental jobs o As time would be saved immensely the IR Personnel can devote much more time on developmental jobs for employees Decision support for critical IR decisions o IT would act as a Decision Support system for critical IR decisions and hence would help Officers to take decisions based on data support Right person for right job o By having the visibility of data the right person can be found out for the right job Visibility across all departments from a single place o The data would be stored in a central database and hence the visibility will be to all those users who need it and then there would be no time delay in collecting data Availability of information will be a click away and hence faster decision making o As time for collecting data would decrease the decisions would come at a faster rate Accuracy of employee details o The employee details would always be kept updated and would be needed for any operation/process as it would be accurate Effective T&D plans and hence proper allocation of resources o Training and Development would also be effective as we would know what training should be imparted to whom and when

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Issues related to development of In-House Solution on Oracle Platform

Composition of the project implementation team o The project implementation should consist of the right people who have the efficient knowledge of both the processes and the IT system required o The Needs analysis team should be the core of the Implementation team Satisfying various stakeholders o The needs requirements should be confirmed with all the stakeholders or users who are going to use the system o A Comprehensive feedback has to be taken from them and also the process owners Unrealistic user expectations o There should not be unrealistic user expectations while the implementing the project o The users should be told about the realistic features of the systems and the advantages because of it Underestimation of complexities involved o The complexities of the processes should never be underestimated o The Process Owner has to sign off the process details that has to be used as base for the software implementation Ineffective communication with users o The communication with the users should be clear and thorough Inner Staff resistance Inhibitors o There would be inner staff resistance because of the change in system and hence that has to be dealt accordingly Privacy concerns while data migration o While data migration data security should be of prime concern Team expertise o The team should be well equipped to handle all the processes Parallel activities which bypass the system o Parallel activities has to be stopped in order to make the system effective Training effort for the users o The training effort required for the users should be well planned and should be efficient enough to cater to their needs

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Suggestion for the Implementation Phase

Treat Implementation as a business change effort o The implementation should be treated as a business change effort and not as a simple another project Implementation Team Nucleus should be Needs Analysis Team o As already discussed this should be of prime importance Comprehensive know-how IR processes o Again the team should be thorough in their knowledge of the processes Users should be taken into confidence o Users should be shown realistic picture of the project o They should be kept informed of the changes Real data usage instead of dummy data o Real data should be used while testing and migration Documentation at each stage o This is very important as documentation gives the evidence of what has been done and how and if required can be of great help in future Implementation of sub-modules o Instead of going at once sub-modules should be taken care of Tracking Projects progress at regular intervals o Keep a progress report of the project at regular intervals say 2 weeks Incentives for employees taking this extra effort o Proper incentives should be given for employees taking part in it as it will help in their motivation Finally, appropriate training to users o Appropriate training is a must for users

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Common Pitfalls in Implementation (McAfees Model)

Inertia Resistance Misspecification Misuse Nonuse (Applicable TATA Steel)

for

Likely Cause

Symptom

Too many new processes all at once Missed due dates

Novel processes; complexity Arguments, hostility, political maneuvers HighRanking leadership; directive style; limit scope

Customization; lack of process knowledge No improvement in process Consensusbuilding; phased implementation

Unsophisticated users

Incorrect/ incomplete data entry; errors Phased implementation; extensive preparation

Use is discretionary; unsophisticated users Prevalence of old way of doing things Phased implementation; extensive preparation

Exercising choices/Prescriptions

HighRanking leadership; directive style; limit scope

As shown in the table above there are 5 common pitfalls in implementing an IT system for a company (according to McAfee). Out of these 5, Non-use is applicable for TATA steel as this problem has already been faced by the Company when the first initiative that was taken in this direction 10 years back. People used parallel processes and hence bypassed the system and hence the data in the system became obsolete and of no use. In order to keep a check on it and preventing the system to reach that stage again there should be some control measures in place and that has been discussed at last.

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Prioritization of Processes
In order to implement the processes through systems one has to prioritize the processes as in which process should be taken up first and why. This has been taken care of using the Touch-Technology Matrix as shown below :-

Employee Information & Data Manageme nt Organizatio n Design & Manageme nt

Ready To Automate

Be Careful To Automate

High Tech Low Touch

High Tech High Touch

Manpowe r Planning T&D Recruitme nt

Low Tech Low Touch

Automate and Outsource

Low Tech High Touch

Avoid To Automate

As shown in the figure I already have classified which processes should be taken up first. OD&M and Employee Profile & Data Management should be taken up first as more amount of data migration is needed and also they are input to the MPP process. MPP process, T&D and Recruitment are a bit complex as they would be using the inputs from the previous processes and also a bit of human intervention is required.

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Roll-Out Plan
After prioritizing the processes the tasks should be identified and the roll out plan should be laid down. This is my roll out plan that I have suggested and the critical path method shows us the time taken to finish the project. In my opinion there should be 2 development teams working simultaneously on different processes of 5 members each and a Testing team comprising of 3 members. The total no. of days that come out from the critical path is about 248 days. The table covering all the tasks and also the critical path has been shown below :-

Table showing all the tasks needed for the roll-out of the project
Activity No. 1 2 Activities Predecessor Time Duration (Days) 5 4 Remarks

Sign-off from Process owners by the Needs Analysis Team Formation of Implementation Team

Detailed Design of the 1,2 Processes to be Implemented - MPP, OD&M, Emp Profile & Mgmt, Recruitment, T&D Prioritizing processes using 3 the Touch-Technology Matrix

45

Formation of Teams and allocation of modules for working simultaneously Development of OD&M and Emp Profile & Data Mgmt modules by Team - I - Phase 1 Phase -2 - Development of MPP, Recruitment modules Team -I Phase -1 - Developing TIPS and ECBS - Team _II Formation of a Testing Team

Team should consist of Needs Analysis Team, Development Team & Testing Team To be done with the respective IR Personnel and the Process Owner OD&M, Emp Profile & Data Mgmt in Phase 1 and MPP (including Recruitment) & T&D in Phase 2, Integration in Phase 3 2 development teams of 5 members each

30

Mainly consists Migration

of

Data

30

Development of new system for MP In case of T&D, TIPS needed to be developed and ECBS also should be linked to it 3 members in the team 32

45

3,4

10

11 12 13

Extensive Testing of all the 7,8,9 modules and simulataneously reflecting the issues to the development team Buffer time for Development 10 Team to correct the modules Final Testing of modules Integration of systems 11 12

25

Meanwhile the development team would be trying to correct the issues at the same time

7 7 20

Integration with existing systems and newly developed systems

14 15 16

17

Linkage to Payroll Training to Users Selecting Department for Pilot Plan and making necessary arrangements Pilot Plan for a Department (Live - Testing)

13 14 14

15 15 15

15,16

20

Parallel Processes should be there to check the authenticity of data

18

Roll out Company

for

the

entire 16

20

Critical Path

Ta sk 1 Ta sk 3 Ta sk 2 Ta sk 8 Ta sk 13 Ta sk 4 Ta sk 5 Ta sk 6 Ta sk 7 Ta sk 10 Ta sk 11 Ta sk 12

START

Ta sk 9

Ta sk 15

Ta sk 14

FINISH

Ta sk 18

Ta sk 17

Ta sk 16

33

The Pink bubbles show the critical path for the project and the tasks that are needed to be finished. The numbers in brackets are the number of days needed to finish the task. The total sum of days therefore comes to be about 248 days or about 8 months. So the Project would take about 8 months to get implemented and hence the company wide roll-out would be possible.

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Integration of Various Systems

Payroll Recruitment (Internal/Externa l)

EBS

Cross-validation of data before updating data on Payroll Employe e Profile Position Profile Organization Design &

ARS

Employee Central Database

MPP system

Other systems

Approval Cycles

TIPS

The diagram above shows the integration of various systems and Manpower planning system would be an integral part of it. The Employee Central database should be the central information for every system. The Organization design & Management should be interlinked with the Central Database. These 2 systems would form the core of the entire IT Infrastructure. All data should flow from the Central database to all other systems. The Manpower Planning system should get its inputs from the above described 2 systems. Once the input is received it should do the processing and then the output should be given to the Training system (TIPS) and the Recruitment systems. Both these systems would again linked to the central database and hence interlinkages would keep the systems up-to-date. Finally the Payroll should be connected the Central Database and before processing of employees salary slip every month it should authenticate the data present in the Central database. If any anomaly is there then the pay slip wont get generated and the system would report an error to the concerned person and action has to be taken.

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Control Measures
Tracking People movement/recruitment o Instead of issuing ER slip at every possible movement, unique code should be issued which will be given only after the entry of latest data No bypass methods to update o All bypass methods such as maintaining excels, updating in personal files should be stopped except for the first few months where in validation would be going on Linkage to Payroll o Payroll should be the final linkage of the employee database wherein every month the pay should be processed only if validation of data to the central database is accurate Maintaining Org. chart o Use of Org. structures for Approvals, leaves etc. Position wise validation of reporting officer Currency of data o Data from the central database should be feeded to all the systems Part of KRA o %ge data correctness measures for different departmental PEs Integration with all systems o Data visibility to all stakeholders Audits o Surprise audits should be in place If all these control measures are in place then the systems would be updated on a regular basis and the data would be accurate for all the processes. As this project is considering only Manpower Planning as the main process to be looked as far as system is concerned, but all other processes are of equal importance and hence the Institutionalization phase will require the entire processes to be IT enabled. All the processes company wide and location wide for TATA steel should be covered for the entire Institutionalization Phase and then only the company would have the visibility of data for all locations.

36

Institutionalization Phase

Health, Safety & Security Safety Training Accident Records

IR Planning and Analysis Organization charts Staffing Projections Skills Inventories Turnover Analysis Absenteeism Analysis Restructuring Costing Internal Job Matching Job Description Tracking

Equal Employment Affirmative Action Plan Applicant Tracking Workforce Utilization Availability Analysis

Employee & Labor Relations Union Negotiation Costing Career Progression Auditing Records Attitude Survey Results Exit Interview Analysis

TS - IRIS

Staffing/Recruitment Recruiting Sources Internal/External Recruitment Applicant Tracking Job Offer & Refusal Analysis Contract Labor Management Visibility across departments and locations Man Days Usage

Compensation & Benefits Pay Structures Wage/Salary Costing Flexible Benefit Administration Vacation Usage Benefits Usage Analysis

Training & Development Employee Training Profiles Training Needs Assessments Succession Planning Career Interests & Experience

TATA Steel - IRIS

37

APPENDIX

APPENDIX 1 Data structures for various information needed at departmental level 1. People Profile
Department Position Section Min Qualification Experience Job Responsibility

Minimum Qualification Department

Experience Section Position Grade Numbers

Total

2. People Profile
Personal Number Age Department Section Position Grade DOB DOE Basic Sal Skill

Person al No.

Name

Age

S.No.

Date

Designati Grade on (P)

Grade (S)

Position Name

Position Code

Cluster

Departme nt Name

38

Quali ficati on

Basic Salary

Job Nature Respons of Job ibility

Disciplin ary Record

Absenteeism during the year

4Q Scor e

Annu al Incre ment

W ag e R ev isi o n B Rewar e d & n recogn ef ition its

Re ma rks

3. Training Details
Personal No. S.No. Training Undergone Duration Score Remarks

Profile for Worker Level Personal No. S.No.

Minimum Qualification needed Matriculate

Trade Test Modules (Pass/Fail) Date

Department S.No

Section Name Personal No Position Qualification

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4. Desired & Existing Manpower

Existing Manpower Department S.No. Section Position

Name Personal No. Grade Age

Department Nos. Existing

Section

Positon

Desired Manpower Department Total Reqd Nos. Section

Position

5. Superannuation
Year S.N o. Nam e Personal No. Department Sectio Sub n Section Positi on Grad e Date Retirement of Qualifica tio Cadr e

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6. Down-the-Line Promotions
Eligibility Departm ent Position to be filled Min Qualificaton Needed Na me Experie nce Experience Needed Disciplinary Record Eligible (YES/NO)

S.No.

Personal No.

Qualification

7. Advertisement Details
Personal No. Na me Departm ent Qualifica tion Qualification Needed Disciplinary Record Eligible for Interview (YES/NO)

S.No.

Section

Experience

Advertisement Details for all departments

Advertisemen t Date

Departm Secti ent on

Positi on

Person Applied

Personal No

Person's Department

Person's Secction

8. Trainee Tracking
Recruitments Year Department Section Diploma Holders TAs

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9. Skill Mix
Department Position Section Employee Name Personal No Cadre Qualification

Cadre mix JET TA Trainees Others Position

Non-Cadre Mix Matriculate Diploma Holder I.Sc/I.A etc Graduate Post-Graduate Others Positon

APPENDIX 2 Sample Manpower Planning Template

Se cti on Of fic e

Design ation Sr. OA Off Asso Off

Clust Min. er/Gr Qualific ade ation

Existing Force Not Mee Mee ting ting Mini Mini mu mu m m Min. Qual Qual Experi ificat ificat ence ion ion

Desir ed Forc e

Separations-2010 Attriti on/O ther Unfor esee n G Super E Move a annua S ment p tions S s

Pro mot ion to Hig her Lev el

Su bTot al

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Attd Total B.E. (Mech/ Met) B.E. (Mech/ Met) Diplom a (Mech/ Met) Diplom a (Mech/ Met)

Forem an Asst. forem an Castin g contro ller

SC Sh op

Asst. CC SubTotal Sr. Opera tor I Sr. Opera tor II Opera tor SubTotal Total

Matricu late Matricu late Matricu late

Once this is known the Requirement can be calculated.

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APPENDIX 3 Manpower data needed at Corporate level 1. Discipline-wise summary

Locat ion Department Sectio n Requirement 2011 JETs Mettal Mecha Oth urgy nical ers

Requirement 2010 JETs Mettal Mecha Oth urgy nical ers

TAs Trad e1

Trad e2

Trad e3

TAs Trad e1

Trad e2

Trad e3

Total

2. 4Q Scores
N a m e A B C D E Expected Sores Trai Trai nin nin g1 g2 3 4 4 3 3 3 3 3 4 4 4Q Trai nin g3 4 3 3 4 2 Actual 4Q Sores Trai Trai Trai nin nin nin g 1 g 2 g3 1 2 3 2 2 3 3 4 3 4 2 1 3 2 3 Gap Trai nin g1 2 2 0 -1 1 Trai nin g2 2 1 -1 1 2 Trai nin g3 1 0 0 3 -1 Training Required Trai Trai nin nin g1 g2 Y Y Y Y N N N Y Y Y

Se cti on 1 2 3 4 5

Pers onal No. 111 112 113 114 115

Po siti on A1 A2 A3 A4 A5

Trai nin g3 Y N N Y N

3. Requirement of Workforce
Location Requirement of JETs No. vacancies planned to filled by fresh Diploma Holders 2010 2011 2012 2013 Department

Section

Position MOR of Supervisors

Desired Workforce

44

Requirement of TAs Location Department

Section

Total No. of Ex-TAs No. vacancies planned to filled by MOR of Workers amongst them as on fresh TAs in skilled Category date 2010 2011 2012 2013

4. Training of Recruits
SNTI Training Details TAs Under Training TA Bat ch Finis h Date 01012010 02012011 03062011 Trades Fit M te M r V Tra de 3 Tra de 4 JETs Under Training JET Batc Start h Date 01011 2008 02012 2009 03063 2009 Finis h Date 01042009 02042010 03092010 Streams Elec Elect Mec tric ronic hani al s cal Mett alurg y Cer ami cs

Start Date 01012008 02012009 03062009

15 11

23

32

43

21

23 12

22

33

32

21

21 16

24

21

31

22

Placement of JETs & TAs at Different Departments TA JET Departme Sectio Disciplin Nos Remark Departme nt n e . s nt

Sectio n

Disciplin e

Nos .

Remark s

45

5. Recruitment Plan
New Recruits Diploma Holders Mettal Mecha urgy nical 5 7 4 11 LD-1 2 3 4 6 7 LD-2 3 3 5 2 3 5 3 10 7 5 4

Depart ment

Oth ers 4 5 6 7 5 4 5 6 4 7

Tot al 12 17 12 21 12 10 19 19 16 14

Trade Apprentice E/E Mech. Others/I Fitter Operations 5 7 4 11 2 3 4 6 7 3 3 5 2 3 5 3 10 7 5 4 4 5 6 7 5 4 5 6 4 7

Fce optr 3 4 2 3 5 4 3 2 6 7

Tot al 15 21 14 24 17 14 22 21 22 21

TOT AL 27 38 26 45 29 24 41 40 38 35

Ye ar 20 10 20 11 20 12 20 13 20 14 20 10 20 11 20 12 20 13 20 14

6. Requirement vs. Availability Matrix

Requirement vs Availability Matrix

Discipli ne

2010 Requirem ent

Availabi lity

2010 Requirem ent

Availabi lity

2010 Requirem ent

Availabi lity

2010 Requirem ent

Availabi lity

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APPENDIX 4 Gartners Model Questions

Implementat ion Risk that organisation cannot implement the project on time, to budget or fail to deliver a workable solution Extent that it will be for a long duration? Extent that it will involve a high degree of implementation effort? The lack of experience of the program / project manager in a project like this? The lack of experience of key project team members in a project like this? Extent to which the make up of the team and skills is not appropriate Extent that the people impacted by the project (users) are unavailable to be involved Extent of the skill uptake required by the people impacted (users)? The risk that the project is not clearly defined 3. 0 4. 0 5. 0 4. 0 3. 0 2. 0 2. 0 2. 0 2. 0 2. 5 3. 0 3. 0 3. 0 3. 0 2. 0 2. 0 2. 0 2. 0 2. 5 3. 0 3. 0 3. 0 3. 0 2. 0 2. 0 2. 0 2. 0 2. 4 3. 0 2. 0 2. 0 4. 0 2. 0 2. 0 2. 0 2. 0

Complexity

Risk due to the magnitude of the complexity involved because of its scale, degree of change required, the number of parties involved etc How large is the scale of the project? How large is the change? How large is the number of different technologies used? How large is the impact on business processes? How large is the number of vendors and other 3rd parties used?

3. 4 5. 0 4. 0 2. 0 4. 0 2. 0

3. 4 3. 0 4. 0 3. 0 4. 0 3. 0

3. 4 3. 0 4. 0 3. 0 4. 0 3. 0

3. 4 3. 0 4. 0 3. 0 4. 0 3. 0

Operational

Risk that the operating costs of the solution grow uneconomic or the planned benefits from the investment do not eventuate Low availability of local support Low vendor stability Low vendor quality How non-standard will the solution be?

3. 0 2. 0 3. 0 2. 0 5. 0

2. 3 2. 0 2. 0 2. 0 3. 0

2. 0 2. 0 2. 0 2. 0 2. 0

1. 8 2. 0 1. 0 2. 0 2. 0

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