1. NAVEEN KUMAR MEDAPALLI
B-42,HR

2. COMPANY
MENTORS
K.SATYANARAYANA
D.G.M - H.R(I/C RMHP & TPP)
VIZAG STEEL PLANT
O.RAM MOHAN RAO
A.G.M - H.R(T&D)
VIZAG STEEL PLANT
D.SUNDAR
ASSIT. MANAGER - H.R(RMHP)
VIZAG STEEL PLANT

3. INTRODUCTION OF RINL-VSP
 Type : Public Sector Enterprise
 Founded : 1971
 Products : Plain rounds, Re-bars, Flats, Billets, Pig iron,Plain rods
 Slogan : Pride of Steel
 Employees : More than 18,000

4. COKE
RMHP
BF
SMS
SP
TRAFFIC
IMPORTANT ZONES RMHP- RAW MATERIAL HANDLING
PLANT
SP- SINTER PLANT
BF-BLAST FURNASE
SMS- STEEL MELTING SHOP
TPP- THERMAL POWER PLANT

5.  It is an integrated steel producer in Visakhapatnam, India built using
German and Soviet technology.
 Its products have been rated the best in the world market.
 The company has grown from a loss-making industry to 3-billion-dollar
turnover company registering a growth of 203.6% in just four years.
 Vizag Steel Plant was conferred Navratna status on 17 November 2010.

6. 0
10
20
30
40
50
60
70
80
90
100
1991-1992
1992-1993
1993-1994
1994-1995
1995-1996
1996-1997
1997-1998
1998-1999
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
The last twenty four years production performance is as
under
PIG IRON SPONGE IRON FINISHED STEEL
PRODUCTION PERFORMANCE

7. PROBLEM
EMPLOYEE
ATTRITION RATE

8. ATTRITION
 Defined as a reduction in the number of employees through resignation
and death and also defined as the rate of shrinkage in size or number.
 Attrition of employees in a limited measure is desirable for influx of new
ideas in any type of organization.
 It helps organizations to maintain their agility in fast changing
environment.
 It brings in new blood, opens up new vistas for change, development and
improvement, shows avenues to expand operations and add to the creative
lines of the organizations.
 Attrition in a limited measure can thus bring gains to the organization.

9. FORMULAE
 1. Wayne F.Cascio (2006 . P. 54):
Number of Turnover incidents per period
-------------------------------------------------------------------- X 100%
Average Workforce Size
 2. US Department of Labor (Bohlander:, et. Al:2001:171: Robert L.
Mathis and John H.Jackson:2000:93)
Number of separations during the month
--------------------------------------------------------------------- X 100%
Total number of employees at midmonth
This formula is widely used. In this formula separation means leaving the
organization.

10. DISADVANTAGES
 Poor performers may choose to leave and can be replaced with better
employees.
 Leavers are replaced with more junior employees who cost less and who
may also stay longer.
 Leavers are replaced with people with more up-to-date job skills.
ADVANTAGES
 Decreased overall performance.
 Increase in cost.
 Create a Negative image in market.

11. 16574 16401 16416
17225
17830 17829 18079 18072 18371 18137
383 440 370 370 230 420 530 720 760 900
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
No of Employees Seperated from VSP for last 10 years
Total No Employees No of Employees Left
ATTRITION RATE = 5%

12. 80%
20%
1. The majority employees resigned/removed from VSP are from
a.Technical Background
b. Non Technical Background
ANALYSIS

13. 20%
60%
15%
5%
2. Do you feel “The Promotions policy” in VSP is not a reason for
attrition?
a. Yes
b. No
c. To some extent
d. Can’t Say

14. 25%
40%
10%
25%
3. In your opinion what is the reason for attrition from indian public sector
a. The candidates joining from premiere institutions
not willing to work in PSUs.
b. The PSUs are not utilizing the knowledge base of
the candidates joining from premiere institutions.
c. The PSUs are not paying the wages expected by
them,
d. The wages/salaries paid in PSUs are not in line with
their expectation

15. 50%
10%
10%
30%
4. In your opinion which of the following measure can be implemented to
make the employees not to leave the organization?
a. By creating suitable working
environment
b. By executing bond which will make the
person resigning to pay more for the
company
c. By making compulsory service period
for minimum 5 years
d. All of the above

16. SUGGESTIONS

17.  OFFER COMPENSATION – ATTRACTIVE AND COMPETITIVE.
 TRANSPARENCY IN COMMUNICATION.
 OFFER RETENTION BONUS.
 SPECIAL TEAM FOR GREVIANCE & TO CONTROL CORRUPTON.

18. PROJECT IMPLEMENTATION

19. Naveen Kumar Medapalli
B-42, PGDM-HR
iFEEL