strategic human resource management ppt
TRANSCRIPT
STRATEGIC HUMAN RESOURCE MANAGEMENT
TATA STEEL: GROWTH THROUGH CREATING SYNERGIES IN VALUE CHAIN
PRESENTATION BY:-
ANKUR AHUJA 191012AVTAR SINGH 191020NIKHIL SINGH 191036PALLAVI 191040PARMINDER SINGH 191041SAURABH ARORA 191053
BACKDROP OF THE COMPANY
• Established in 1907• Asia’s 1st and India’s largest private
sector steel company• Plants @ Jamshedpur, Jharkhand • Products include:-
hot and cold rolled coils and sheets, galvanised sheets, tubes, wire rods, construction rebars, rings and bearings.
VISION
To seize the opportunities of tomorrow and create a future that
will make TATA an EVA positive company.
In the near term what strategic ‘outcomes’ would TATA Steel
should be aiming at…?
STRATEGIES FOLLOWEDCORPORATE STRATEGIES:-• Expansion of capacity at Jamshedpur• Set up of greenfield plant in Jharkhand• 10 MTPA plant in Orissa in Kalinganagar• Acquisition of NATsteel in Singapore• Acquisition of millennium steel in Thailand• Acquisition of Corus Steel
OUTCOMES EXPECTED
• The acquisition hence give rise to greater market reach as discussed above steel producer.
• Access to high growth Asian markets.• More than 50% of the European
markets are been covered.
• Acquisition results in consolidation of the steel industries which deter the bargaining power of both suppliers and buyers.
• Acquisition also results in new technology upgradations.
• resulting in decrease in investments in R&D
• flooding the market with high end differentiated products.
STRATEGIES FOLLOWEDCOMPETITIVE STRATEGY:-• Leveraging on its advantages of cheap
raw materials• Acquisition of Ferro Manganese unit in
South African Iron Ore.• Joint Venture in Iran for producing steel billets with Iron Ore form Iran.
OUTCOMES EXPECTED• Jamshedpur plant will provide the semi
furnished steel for NatSteel and for Chorus bases.
• Orissa and Jharkhand are dotted with small rolling mills that have been lying idle due to shortage of coal and iron ore. Tata Steel will supply these mills with both these resources and buy billets from them.
STRATEGIES FOLLOWEDCOMPETITIVE STRATEGY:-• Maintain the low cost advantage of
producing the steel at lowest cost upto the primary making stage.
• De-Integrated manufacturing followed.
OUTCOMES EXPECTED• NatSteel's cost of production is about 30-
40 per cent higher than Tata Steel's, so supplying NatSteel with billets (semi-finished steel) from India and if NatSteel's electric arc furnaces are shut and scrap is substituted by billets, then its cost of production will come down by about $100 a tonne.
How would the strategic intent and implementation affect the value chain
activities in TATA Steel? What would be the main challenges here?
TATA STEEL’S STRATEGY
breaking up the primary and finishing stages of the value chain and putting each part where it's the most cost-effective.
EFFECT ON THE VALUE CHAIN• Jamshedpur will provide the semi finished steel for
the NatSteel bases. • In few years it could well come from Iran or
Ukraine.• Supplying the billets directly will result in closing
down the Electric Arc Furnaces.• It will bring a $100 difference
in the cost of production at
NatSteel in 2 to 3 years.
CHALLENGES
• SOARING FREIGHT COSTS• SHIFT IN LONG-TERM LINKS WITH THE
RAW MATERIALS• RAW MATERIAL SHORTAGE• RECESSIONS AND ECONOMIC
FLUCTUATIONS• EMERGING COUNTRIES LIKE CHINA
As the HR director, identify the new competencies and behaviours required
in the organisation
“Focus on making the weakest link stronger than cutting off the weakest from the
organisation”
• Install a transparent and unambiguous governance code
• Redeploy some of the workforce at the greenfield
• Training of employees to induce a global outlook
• Focus on leadership development• Separate HR department from IR department• Redesign the organisation to match people
with position
• Have a motivated workforce• Initiate performance appraisal systems• Build a high performing team• Adequate rewarding system• Identify key positions and define their roles• Impart necessary Skill training• High focus on creating leaders• Promote self-directed learning