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Steel Authority of India Limited

Chapter-1
Profile of the Company

There is a Bit Of SAIL In Everybodys Life

Steel Authority of India Limited

STEEL ATHOURITY OF INDIA LIMITED (SAIL)


Registered Office: Ispat Bhawan, Lodhi Road, New Delhi-110003, Phone No.: 01124367481, Website: www.sail.co.in

1. Introduction to Sail

During struggle for independence, Pt. Jawaharlal Nehru our first prime minister of independent India had a very clear vision about the role of steel in the development of our nation. Although Tata Iron & Steel Co. 9TISCO) established in 1907 marking the beginning of Indian Steel industry followed by Indian Steel Corporation (1918) they were too small to meet the development requirement of a big country like ours. Therefore, in the first industrial policy resolution of the government soon after independence, government decided to establish steel plant in Public Sector only. However work could be started at faster pace in 1954 when. Hindustan Steel Limited was formed and the steel plants of 1 MT capacity of each were established with provision of further expansion at Bhilai, Rourkela and Durgapur with assistance from USSR, West Germany and UK respectively. Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is fully integrated Iron and Steel maker, producing both basic and special steel for domestic, construction, Engineering, Power, Railway, Automotive and Defense industries and for sale in export markets.

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Steel Authority of India Limited

Ranked amongst the top ten public sector companies in India in terms of turnover. SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanized sheet, electrical sheets, structural, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces Iron and Steel at four integrated plants and three special steel plants, located principally in the eastern and central religions of India and situated closed to domestic source of three raw materials including the Company's Iron Ore, limestone and dolomite mines. SAIL'S wide range of long and flat steel products are much in demand in the domestic as well as the international market. This vital responsibility is carried out by SAIL's own Central Marketing Organization (CMO) and the International Trade Division (ITD). CMO encompasses a wide network of 38 branch offices and 47 stockyards located in major cities and towns throughout India. With technical and managerial expertise and known-how in steel making gained over decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide. SAIL has a well-equipped Research and Development Center for Iron and Steel (RDCIS) at Ranchi which helps to produce quality steel and develop new technologies for the steel industry. Beside SAIL has its in-house Center for Engineering Technology (CET) Management Training Institute (MTI) and Safety Organization at Ranch. Its captive mines are under the control of the Raw Materials Division in Kolkata. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Kolkata. Almost all its plants and major units are ISO certified. Integrated Steel Plants: Bhilai Steel Plant (BSP) in Chhattisgarh. Durgapur Steel Plant (DSP) in West Bengal. Rurkela Steel Plant (RSP) in Orissa. Bokaro Steel Plant (BSL) in Jharkhand. IISCO steel plant (IIS) in west Bengal.

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Steel Authority of India Limited

Special Steel Plants: Alloy Steel Plants (ASP) in West Bengal. Salem Steel Plant (SSP) in Tamil Nadu. Visvesvaraya Iron and Steel Plant (VISL) in Karnataka.

Subsidiaries: Maharashtra Elektrosmelt Limited (MEL) in Maharashtra.

JOINT VENTURE: SAIL has promoted joint venture in different areas ranging from power to ecommerce. NTPC SAIL Power Company Pvt. Ltd. Set up in March 2001, this 50:50 joint venture between SAIL and the National Thermal Power Corporation (NTPC) operates and manages the Captive Power plants - II of the Durgapur and Rurkela Steel Plants which have a combined capacity of 240 MW. Bokaro Power Supply Company Pvt. Ltd. This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in January 2002 is managing the 302 MW power generation and 1880 tones per hour steam generation facilitates at Bokaro Steel Plant. Bhilai Electric Supply Company Pvt. Ltd. Another SAIL-NTPC joint venture of 50:50 basis formed in March 2002 manages the 74 MW power plants - II of Bhilai Steel Plant which has additional capacity of producing 150 tons of steam per hour. UEC SAIl information technology Ltd. This is 40:60 joint ventures between SAIL and USX Engineers & Consultants. "A subsidiary of the US Steel Corporation, promotes information technology in the steel sector. Metal Junction.com Private Ltd. A joint venture between SAIL and Tata Steel on50:50 basis, this company promotes e-commerce activities in steel and related areas.

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Steel Authority of India Limited

SAIL Bansal Service Centre Pvt. Ltd. SAIL has formed a joint venture with BMW industries Ltd. on 40:60 bases to promote a service centre at Bokaro with the objective of adding value to steel. North Bengal Dolomite Ltd. A joint venture between SAIL and West Bengal Mineral Development Corporation Ltd. on50:50 bases were formed for development of Jayanti Dolomite Deposit, Jalpaiguri for supply of Dolomite of DSP and other plant. Romelt - SAIL (India) Ltd. A joint venture between SAIL, National Mineral Development Corporation (NMDC) and Russian promotes for marketing Romelt technology developed by Russia for reducing of iron bearing materials, which is carried out with carbon in single stage reactor with the use of oxygen. Ownership and Management The Government of India owns about 86% of SAIL's equity and retains voting control of the Company. However, SAIL, by virtue of its Navratna status, enjoys significant operational and financial autonomy. 2. BACKGROUND & HISTORY OF SAIL: The Precursor SAIL traces its origin to the formative years of an emerging nation-India. After independence the builders of modern India worked with a vision - to lay the infrastructure for rapid industrialization of the country. The steel sector was to propel the economic growth. Hindustan Steel Private Limited was set up on January 19, 1954. The President of India held the shares of the company on behalf of the people of India. Expanding Horizon (1959-1973) Hindustan Steel Limited (HSL) was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957 the supervision and control of these two steel plants were also transferred to Hindustan Steel. The
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registered office was originally in New Delhi. It moved to Kolkata in July 1956 and ultimately to Ranchi in December 1959. A new steel company, Bakaro Steel Limited was incorporated in January 1964 to construct and operate the steel plant at Bakaro. The 1 MT phases of Bhilai and Rourkela Steel plants were completed by the end of December 1961. The 1MT phase of "Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from 1.58 MT (1959-60) to 1.6 MT. The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela the Tandem Mill - was commissioned in February 1967, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus with the completion of the 2.5 MT stage at Bhilai 1.8 MT at Rurkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in1968-69 and subsequently to 4MT in 197273. Holding Company The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the Parliament on December 2, 1972. On this basis the concept of creating a holding company to manage inputs and outputs under one umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company, incorporated on January 24, 1973 with an authorized capital of Rs. 2000 Crs. was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, "Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an operating company. Since its inception SAIL has been instrumental in laying a sound infrastructure for the industrial development of the country. Besides, it has immensely contributed to the development of technical and managerial expertise. It has triggered the secondary and tertiary waves of economic growth by continuously providing the inputs for the consuming industry.

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Steel Authority of India Limited

SAIL Today SAIL today is one of the largest industrial in India. Its strength has been the diversified range of quality steel products catering to the domestic, as well as the export markets and a large pool of technical and professional; expertise. Having achieved the initial goal of laying the foundation for the industrial development of the country. SAIL took up the new challenge of facing the era of liberalized economy and the emerging competitive scenario in the Steel market on the eve of entering the new millennium, SAIL launched its Financial and Business restructuring program. The strategy includes a divestment of non-core activities, restructuring of marketing function and a focus on pruning cost of operation. The goal for the company is to emerge as one of the lowest cost producer in the global steel market. 4. Vision, Culture and Core Values:

Vision:
Vision depicts the aspirations of an organization and gives substance to its existence. It defines boundaries for action and sets strategic direction for the organization. To be a respected world

class corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction. Vision

Strategies / Goals

System

Structure

Culture

Core Values

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Steel Authority of India Limited

Core Values
Consistent with Companys vision, goals and strategies, SAIL adopted the following four core values in 1995:
1. Customer Satisfaction: Customer comes first every time. We do not compromise this value because we believe that this alone can enable us to achieve the vision of attaining market leadership. 2. Concern for People: Talent of our people is our greatest asset. We believe that developing competence and commitment of our people for enhancing their contribution, is important for achieving customer satisfaction, and thereby the Prosperity of the company and of the employees. 3. Consistent Profitability: Consistent profitability is essential for growth. We believe that consistent and significant profitability must be essential outcome of all our activities. This is necessary for modernization, growth and market leadership. 4. Commitment to excellence: SAIL does it better. We are committed to harnessing the full potential of all our resources, through creativity, Continuous improvements and teamwork. We believe that this is important for making SAIL the best organisation so that our customers, employees and shareholders have a

5. PRODUCT MIX : Product Wise Semis Long Products Blooms, Billets & Slabs Structural Crane Rails Bars, Rods & Rebars Wire Rods Flat Products HR Coils, Sheets & Skelp Plates CR Coils & Sheets GC Sheets\ GP Sheets and Coils Tinplates Electrical Steel Tubular Products Railway Products Pipes Rails Wheels, Axles, Wheel Sets

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Plant Wise Bhilai Steel Plant Blooms, Billets & Slabs Beams Channels, Angles, bars wire rods (tmt, plain& ribbed)

plates, Rails & heavy structural Pig Iron, Chemicals & Fertilizers. Bokaro Steel Plant HR Coils & Sheets Plates CR Coils & Sheets GP Sheets & Coils/ GC Sheets Pig Iron, Chemicals & Fertilizers. Durgapur Steel Plant Blooms, Billets & Slabs Joists, Channels, Angles Bars, Rods & Rebars Skelp Wheels, Axles, Wheel Sets Pig Iron, Chemicals & Fertilizers Rourkela Steel Plant HR coils Plates CR Coils & Sheets GP Sheets/ GC Sheets Tinplates Electrical Steel Pipes Pig Iron, Chemicals & Fertilizers Salem Steel Plant Stainless Steel

THE SEVEN CS OF SAIL Consistent Quality Committed Delivery Customized product Competitive Price Complaint Settlement Contemporary Products Culture of Customer Service

6. CENTRAL MARKETING ORGANIZATION (CMO) This is the marketing unit of SAIL. The CMO of the SAIL was formed in 1963. When public sector plants were managed by Hindustan Steel Pvt. Limited. It caters to the domestic market and is responsible for coordinated manner. The CMO undertakes marketing of materials produced by SAIL, plant through a distribution
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network of 43 Branch sales offices (BSO), stockyard, dockyards, consignment agents & extension counter spread all over country. Central Marketing Organization (CMO) most of its division have their headquarters at Kolkata and they report to the Executive Director of marketing at Kolkata, who in turn report to the Director headquartered at Delhi. However departments like transport & shipping, export and imports etc. report to Executive Director located at Delhi.

6.1.MAJOR FUNCTIONS OF CMO : Marked Research Demand Assessment. segment prioritization, product planning, sales and after sales service etc. CMO has a network of sales and after sales service etc. CMO has a network of sales officer and stockyards within the country for purpose of distribution of materials from these outlets. The other aspect controlled by CMO are planning, customer service, transport & shipping data information system etc. The distribution of the Iron & Steel products is done by the CMO through 45 branches and stockyards located in all important steel consuming centers in the country. For administration purposes, the branches are grouped under 6 regions.

The distribution through the stockyard is of the order of 69% & through due dispatches by the plant 31%. They adopt various schemes to see that the movement of the products is fast & customers are satisfied.

6.2. OTHER IMPORTANT FUNCTION OF CMO : CMO has got responsibility to sell Pig Iron. Mild Steel products manufactured by BSP, DSP, RSP & BSL having its Head Quarters at Ispat Bhawan. 40. Chowrangee Road. Calcutta- 71. CMO has got 43 branches spread throughout the country with stockyard for storing & selling Iron & Steel materials produced by plants. Each Branch is headed by a Branch Manager having other colleagues including Finance Executive to help Branch Manager in day to day operations. CMO has got transport & shipping department to handle the export-import consignment at different parts. These officers are at following places: (a) Kolkata
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(b) Haldia

(c) Chennai

(d) Vishakapatnam

(e) Paradeep

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Steel Authority of India Limited

To co-ordinate about production & dispatch in different steel plant. CMO has got SRM offices at following places: (a) Bhilai (b) Durgapur (c) Rourkela To take care or the exports CMO has got office at New Delhi. There is separate fertilizers & chemical divisions to sell fertilizers & chemicals produced by the plants. Marketing Management Group : This group is headed by marketing managers. Marketing managers are responsible for market strategy and planning interims of sales, market share & profitability in a specific market segment. Salem Steel Products Division: This division headquartered at Chennai by Salem Steel Plant. They have field office at each of the regional headquarters as well as major consumption centers. Marketing Services Division (MSD): This division looks after the management is supported by a computer center where data on marketing operation throughout the county are processed on a regular basis to bring out periodical MIS report. The responsibility of designing & implementing road movement, handling contract system ect. is also with them. Commercial Division: This division deals with formulation of policies on distribution. This division also deals with parliament question on behalf of CMO. Application Engineering Group (AEG): This division deals with application about selection of best suited raw material development of new products required by the market etc. It also undertakes technical inspection on behalf of the CMO wherever needed. The AE personnel are posted at each regional headquarters. Fertilizers & Chemical Division: This division is headquartered at Kolkata and looks after distribution of Ammonium Nitrate products by Rourkela Steel Plant and ammonium Sulphate produced by all the steel plants. This division has got offices at field location where the demand for fertilizers is substantial. Market Research Group: This division undertakes assessment of demand for pig iron & steel product for long term perspective and advice management about the
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market. This division brings out periodic report covering various aspects of consumption market condition. Competitors activities etc. They have field repetitive for collecting and forwarding market intelligence on the new quarters. Transport and Shipping Department: The department of headquartered at Koltata and has branch offices at major port areas. This division is responsible for handling imports and export on behalf of SAIL. This division clears the goods imported on sale at the ports and forwards the same to various steel plants. Finance and Account Department: This department renders financial advice to the line managers as well as CMO headquarters and maintain the account of the organization covering home sales, transport and shipping exports, residual imports, internal audit etc. Special Project Division: This Division is headquarters at Delhi & reports the Director (commercial). This division deals with modernization of stockyards giving technical help and assistance to the stockyard in maintenance of handling equipment etc. The department also deals with construction of office, building of central marketing organization and acquisition of construction of residential accommodation etc. Regional Offices of CMO : Northern Region Eastern Region Southern Region Western Region

Northern Region Agra Allahabad Chandigarh


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Southern Region Bangalore Calgawan Chennai


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Steel Authority of India Limited

Faridabad New Delhi Kanpur Easter Region Siliguri Bhubaneswer Bokaro Durgapur Jamshedpur Guwahati

Coimbator Hyderabad Cochin Western Region Ahmedabad Baroda Bhilai Bhopal Goa Indore

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Chapter-2
SWOT ANALYSIS of the COMPANY

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STRENGTH Staffing is a big strength for SAIL as being a Govt. venture it is looked upon for generating and offering employment. Customer base is another major strength for SAIL as it offers steel at subsidized rates and hence caters to high volume of clients. Strength for SAIL is its Market position which is on a very successful level and thus there is no hesitation in its client. Financial Resources also acts as strength as it can use Govt funds for ventures. Sales Channels also is strength as it uses all possible channels for promotion and Sales. Another Strength is the (product Steel) is core in nature and related to almost all development and infrastructure activities Profitability is another strength as SAIL records astounding profit figures in spite of providing social benefit and subsidies to its clients

OPPERTUNITIES However SAIL has certain opportunities as it is affiliated to the Central Govt. of India and hence expansion and growth is possible SAIL also can adopt globalization with ease using Govt. support. Also SAIL being financially sound can undertake merger and acquisition projects with weaker counterparts. It can also involve in production of forward integration products and by-products apart from its core product (Steel) with the help of its healthy brand image.

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WEAKNESS Staff also posses as a weakness in a certain way as SAIL being a Govt. venture, targets and workload are not tight and job security leads to staff not being fully productive. Another weakness is that higher profit margins are possible but not allowed since being a Govt venture. Competitive Vulnerability is another weakness as competitors include private players with better quality manpower, strategies and policies. Another weakness is production of a single vertical (Steel) and no diversification. Also a major Weakness is completely answerable to the Central Govt. and hence exposed to corruption and mismanagement. THREATS Threats would include change in Govt Policies and Economy trend which can have a direct impact on the functioning of SAIL. Also emerging and existing private sector competitors who can steal market share. Also late implementation of technology and modern machinery as compared to counterparts can pose a potential threat. Apart from the above major threats turnover can also cause problems due to existence of higher paying jobs with better benefits in the sector.

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Chapter-3 Functional Analysis

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Meaning of Training & Development


Training A planned process to modify attitude, Knowledge or skill behavior through learning experience to achieve effective performance in an activity or range of activities. Its purpose, in the work situation is to develop the abilities of the individual and to satisfy the current and future manpower needs of the organization. What is Training in terms of organization? Transferring information and knowledge to employers and equipping employers to translate that information and knowledge into practice with a view to enhancing organization effectiveness and productivity, and the quality of the management of people. Development Development is a systematic use of Knowledge or understanding gained form search, directed towards the production of useful materials, devices, system or method including process. Development is a long term educational process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose. Definition of Training Training is the process by which the attitudes, skills and abilities of employees to perform specific jobs are increased. It is any attempt to improve current or future employee performance by increasing an employees ability to perform through learning, usually by changing the employees attitude or increasing his or her skills and knowledge. Training is an act of increasing the knowledge and skill of an employee for doing a particular job. Training is a short-term educational process. Training bridges the difference between job requirements and employees present specification. Training and Development offer competitive advantage to a firm by removing performance deficiencies; making their employees stay long; minimizing accidents, scrap and damage; and meeting future employee needs. There is a greater stability, flexibility, and capacity for growth in an organization Training contributes to
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employee stability in at least two ways. Employees become efficient after undergoing training. Efficient employees contribute to the growth of the organization which intern renders stability to the workforce. Needs assessment diagnoses present problems and future to be met through training and development. Needs Assessment occur at two levels Group and Individual Level An individual obviously needs training when his or her performance falls short of standards, that is, when there is performance deficiency. Inadequacy in performance may be due to lack of skills or knowledge or any other problem. The problem of performance deficiency caused by absence of skills and knowledge can be remedied by training. Faulty selection, poor job design, improving quality or some personal problem may also result in poor performance. Assessment of training needs must also focus on anticipated skills of an employee coping up with the technology change, increasing variety in challenging tasks in their career path. Individuals may also require new skills because of possible job transfers. Assessment of training needs occurs at the group level too. Any change in the organizations strategy necessitates training of group of employees. The root of the TNA is the gap analysis. This is an assessment of the gap between the knowledge, skills and attitudes that the people in the organization currently possess and the knowledge, skills and attitudes that they require to meet the organizations objectives. Objectives of Training Improve Quality Trained worker are less likely to make operational mistakes therefore they are able to maintain quality of product. Increase productivity Training can help employee to increase level of performance on their assignment. Increased human performance directly leads to increased company profit. Improve Health & Seafty Proper training can help to prevent industrial Accidents. Safer environment can lead to more stable mental attitudes on part of the employees. Improve organizational Climate Chain of positive reaction can result from a well planned training programmed.

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To help company fulfill its need When the need arise organizational vacancies can more easily be staffed from internal sources if promotion. Better performance and increased innovation in strategies and product. It helps the employees to increase their performance level. Job satisfaction & improved employee morale. Training and development help employees to have high moral rate and the level of satisfaction from their job is also high.

Importance of Training & Development


There are many benefits of Training and Development to the organization as well as employee. We have categorized as under:1) Benefits for the Organization 2) Benefits for the Individuals 3) Benefits for personnel and human relation, intra group and internal group relation and policy implementation 1) Benefits for the Organization i) ii) Improves communication between group and individuals. Aid in orientation of new employee and those taking new job through transfer or promotion. iii) iv) Provides information on equal opportunities and affirmative action. Provides information on other government laws and administration policies. v) vi) vii) viii) ix) Improves inter personal skills Makes organizational policies, rules and regulations viable. Builds cohesiveness in group. Provides a good climate for learning, growth and co ordination. Makes the organization a better place to work and live.

2) Benefits for the Organization i) Helps and individual in making better decision and effective problem solving. ii) Through training and development, motivational variables of recognition achievement, growth, responsibility and advancement are internalized and operationalised.
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iii) iv) v)

Aid in encouraging and achieving selfdevelopment and self confidence. Helps a person handle stress, tension, frustration and conflict. Provides information for improving leadership, knowledge,

communication skills and attitudes. vi) vii) viii) ix) x) xi) xii) Increases job satisfaction and recognition. Moves a person towards personal goals while improving interactive skills. Satisfies personal needs of a trainee. Provides the trainee an avenue for growth in his or her future. Develops a sense of learning. Helps eliminate fear in attempting new task. Helps a person improve his listening skill, speaking skills also with his writing skills. 3) Benefits for personnel and human relation, intra group and internal group relation and policy implementation i) ii) Improves communication between group and individuals. Aid in orientation of new employee and those taking new job through transfer or promotion. iii) iv) Provides information on equal opportunities and affirmative action. Provides information on other government laws and administration policies. v) vi) vii) viii) ix) Improve interpersonal skills. Makes organizational policies, rules and regulations viable. Builds cohesiveness in group. Provides a good climate for learning, growth and co ordination. Makes the organization a better place to work and live.

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CONSEQUENCES OF ABSENCE OF TRAINING NEEDS ASSESSMENT The significance of needs assessment can be better understood by looking at the consequences of inadequate or absence of needs assessment. Failure to conduct needs assessment can contribute to: Higher labour turnover Increased overtime working Higher recruitment cost, including advertising, time and incentives Poorer-quality applicants Greater pressure and stress on management and staff to provide cover Pressure on job-evaluation schemes, grading structures, payments systems, and career structure. Additional retention costs in the form of flexible working time, job-sharing, part-time working, shift-working, etc Need for job redesign and revision of job specification. A rise in workplace accidents Benchmarking figures do not match or exceed competitors Lower performance than competitors

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METHODS OF TRAINING AND DEVELOPMENT The choice of method of training depend upon cost, time available, number of person to be trained, depth of knowledge required, background of trainees etc. The methods are categorized into two categories:On the Job Training Methods Job instruction training (JIT) Vestibule training (training center training) Training by experienced workmen Demonstration and examples Simulations Apprenticeship Off the Job Training Methods Lecture Conferences Group Discussion Role Playing Case study Programmed instruction T- Group training Vestibule training This method utilizes equipment which closely resembles the actual ones used in the job. It is performed in a special area set aside for the purpose and not at the workplace. The emphasis is placed on learning skills than on production. It is however difficult to duplicate pressures and realities of actual situations. Even though the kind of tension or pressure may be the same but the Employee knows it is just a technique and not a real situation. Also the employees behave differently in real situations than in simulations. Also additional investment is required for the equipment. Apprenticeship It is involved learning from more experienced employee/s. This method may be supplemented with other off-the-job methods for effectiveness. It is applied in cases
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of most craft workers, carpenters, plumbers and mechanics. This approach uses high levels of participation and facilitates transferability. Coaching is similar to apprenticeships. But it is always handled by a supervisor and not by the HR department. The person being trained is called understudy. It is very similar to on the job training method. But in that case, more stress is laid on productivity, whereas here, the focus is on learning. In this method skilled workforce is maintained since the participation, feedback and job transference is very high. Immediate returns can be expected from training almost as soon as the training is over the desired outcomes can be seen in the trainee. Simulation It is any equipment or technique that duplicates as nearly as the possible the actual conditions encountered at the job. It is an attempt to create a realistic for decisionmaking. This method is most widely used in Aeronautical Industry. Job instruction training It is used primarily to teach workers how to do their present jobs. Majority of the industrial training is on the job training. It is conducted at the work site and in the context of the job. Often, it is informal, as when experienced worker shows a trainee how to perform tasks. In this method, the focus of trainers focus is on making a good product and not on good training technique. It has several steps; the trainee first receives an overview of the job, its purpose and the desired outcomes. The trainer then demonstrates how the job is to be performed and to give t trainee a model to copy, and since a model is given to the trainee, the transferability to the job is very high. Then the employee is allowed to mimic the trainers example. The trainee repeats these jobs until the job is mastered. Lectures It is the verbal presentation of information by an instructor to a large audience. The lecturer is presumed to possess knowledge about the subject. A virtue in this method is that it can be used for large groups and hence the cost of training per employee is very low. However, this method violates the principle of learning by practice. Also this type of communication is a one way communication and there is no feedback from the audience because in case of very large groups it is difficult to have interactive sessions. Long lectures can also cause Boredom.
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Audio/ visual This is an extension of the lecture method. This method includes slides, OHPs, Video Tapes and Films. They can be used to provide a range of realistic examples of job conditions and situations in the condensed period of time. It also improves the quality of presentation to a great extent. Case study It is a written description of an actual situation in the business, which provokes the reader to think and make decisions/ suggestions. The trainees read the case, analyze it and develop alternative solutions, select the best one and implement it. It is an ideal method to promote decision making skills. They also provide transference to an extent. They allow participation through discussion. This is the most effective method of developing problem solving skills. The method /approach to analysis may not be given importance. Many a times only the result at the end of the case may be considered and not the line of thinking to approach it. This is a major disadvantage since case studies must primarily be used to influence or mend the attitude or thinking of an individual. Role Playing and Behavior Modeling This method mainly focuses on emotional (human relation) issues than other ones. The Essences are on creating a real life situation and have trainees assumed parts of specific personalities (mostly interchanged roles of boss and subordinate to create empathy for one another). The consequence is better understanding of issues from the others point of view. Sensitivity Training It uses small number of trainees usually less than 12 in a group. They meet with a passive trainer and get an insight into their own behavior and that of others. These meetings have no agenda and take place away from the workplace. The discussions focus on why participants behave the way they do and how others perceive them. The objective is to provide the participants with increased awareness of their own behavior, the perception of others about them and increased understanding of group process.

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Concept of Behavior Modeling: Fundamental psychological process by which new patterns of behavior can be acquired and existing ones can be altered. This change may be videotaped and showed to the trainee and he can review and critique it. It also helps him see the negative consequences that result from not using the behavior as recommended. It is referred to as copying, observational learning or imitation implying that is a behavior is learned or modified through observation of others experiences.

Objectives of the project


Primary Objective To find out most Effective Method of Training and Development in Corporate. To find out the latest trends in Training And Development Programs To compare the Quality and Effectiveness of different Training and Development
methods

Secondary Objectives To find out, whether Training and Development Programs are effective in skill enhancement or not. To find out the minimum length of time period while designing a training module To find out the frequency for Training and Development Program in corporate. To find out the conditions/circumstances when a, Training is required To find out, whether a In House Training is more beneficial or Out House Training. To find out, whether Seminars\Lectures are helpful in enhancing skills or not. Scope of Study Training and Development is a continuous process with -in the organization. An organization constantly spends a large amount of its capital resources on the development of its Human Resources. A well trained and developed Human Resource
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of Organizational is the measure of its potential to carry out the work most effectively and efficiently. Therefore the best methods should be employed in the organization; hence there occurs a need to identify the most effective method of Training And Development. The study then goes on to evaluate and analyze the findings so as to present a clear picture of trends in the training and development. Research Methodology Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods.

Sampling Methodology Sampling Techniques Primary Data:- Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judgmental and convenient. Secondary Data:- The secondary data was collected mainly from the office journals, books, web search and personal interaction with experts. Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of STEEL AUTHORITY OF INDIA LIMITED.

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3.1 DATA ANALYSIS AND INTERPRETATION


Describing, The fact that how many Employees usually undergo the Training and Development programs. Comments No of Respondents Percentage Share

YES NO TOTAL

43 7 50

86 14 100

Employee underwent training


14%

Yes 86% No

Interpretation The above result clearly shows that about 86% of the total underwent the training and development programs during their period of working. This shows that training and development programs are the most crucial element for enhancing the skills and capabilities of the individuals

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Describing, the fact that Training And Development Programs are important for Individuals Performance Enhancement:

Comments Strongly Agree Agree Strongly Disagree Disagree Total

No. of Respondents 35 12 1 2 50

Percentage Share 70 24 2 4 100

Training And Development Programs are important for Individuals Performance Enhancement

Strongly Agree Agree Strongly Disagree Disagree

Interpretation The above results shows that Training And Development Programs are important for
Individuals Performance Enhancement

A total of 94% (Including 70% strongly agree and 24% agree) is a very big picture to
prove that each and every individual is favoring the fact training and development programs enhances individual as well as organizational growth.

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Describing, the fact that how frequently Training Programs should be organized. Comments Once a month 2-3 times in a Year Once in a year Total No. of Respondents 13 26 11 50 Percentage Share 26 52 22 100

How frequently Training Programs Should be Organised

22%

26%

Once a Month 2-3 times in a year Once in a Year 52%

Interpretation The above results give a very clear idea that the frequency of training program will be most effective if it will be conducted 2-3 times per year as a major portion of employee favors this result on the basis of their personal experience. However a very small fraction of employee also state that it should be conducted annually, it may be because it hinders the organizational other works. One thing is very clear from the above result that the training and development program should be conducted either annually or semi-annually to enhance the performance

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Describing, the fact that Training is more required in the case of only Comments New Appointment Promotion During job rotation In all cases Total No. of Respondents 7 6 4 33 50 Percentage share 14 12 8 66 100

When training & development programs are needed

New Appointment Promotion During job rotation In all cases

Interpretation The above result is to prove the fact that the Training and Development program should be conducted during new appointment, promotion as well as during job rotation. Majority of workforce is in support that it is required in almost all the cases either new appointment, promotion and even during job rotation. This shows that training and development should be conducted not only for new appointment but also for the present workforce.

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Describing, the fact that Experience is more Beneficial in Skill Development rather than Training: Comments Strongly Agree Agree Strongly Disagree Disagree Total No. of Respondents 13 23 11 3 50 Experience Is More Beneficial in Skill Development Rather Than Training Percentage Share 26 46 22 6 100

Strongly agree Agree Strongly Disagree Disagree

Interpretation The above result is to prove the fact that the Training and Development programs though are beneficial to enhance the individual performance but Experience is much more helpful in understanding the work profile of the designation. Experience gives a more clear understanding to the real life situation and teaches a good lesson to cope up with the future circumstances. This also suggests that while making critical decisions regarding promotion and job rotation, experience should also be given weightage.

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Describing, the usual method of Training and Development in organization: Comments On The Job Training Role Play Lectures And seminars Training Workshop Developed Training Centre Total No. of Respondents 20 3 11 17 14 50 Usual method of training in org. Percentage Share 40 6 22 34 28 100

On the job training Role play Lectures & Seminars Training Workshop Developed Training Centre

Interpretation While trying to find out the most preferred method of Training and Development it was found that no particular method can be applied for all post and in all organization. It depends upon the designation and the type of organization. Role Plays are the least preferred method while designing a training module. On the job Training is one of the most widely accepted methods as it gives a direct exposure to real world business situations. All the above given processes can be used depending upon the requirement and availability of the resources

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Describing, the fact that On the Job Training (Along with work) is most effective way for Training and Skill Development: Comments Strongly Agree Agree Strongly Disagree Disagree Total No. of respondents 15 27 4 4 50 Percentage Share 30 54 8 8 100

On the Job Training is Most Effective Way For Training and Skill Development

Strongly Agree Agree Strongly Disagree Disagree

Interpretation Majority of the Employees are in favor of the fact that the most effective method of training and skill development is the On the job training Where a 54% of the total workforce is agree with the fact along with 30% who are strongly agree with the fact This means that about 84% of the total sample surveyed found it to be the best method of training and development, on the basis of their personal experience

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Describing, the fact that Vestibule Training is More Beneficial To Employee and also Other Staff Does Not Get Affected: Comments Strongly Agree Agree Disagree Strongly Disagree Total No. of Respondents 4 24 17 5 50 Percentage Share 8 48 34 10 100

Vestibule Training is Beneficial and Effective or Not Than Any Other Method

Strongly Agree Agree Disagree Strongly Disagree

Interpretation While thinking about the Vestibule training, we found that there is a very small variation
in the opinion of the sample surveyed. Where a 56% of the total sample found it to be useful 44% of the sample is totally against it.

Most of them consider it to be useless a virtual environment cannot give you a feel of real
life situations. The problems cannot be imagined theoretically.

Many of them consider it to be useful as it does not hinder other working staff and also
give on hand experience.

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Describing, the fact that Job rotation is one of the best practice for Training, Knowledge and Skill Development: Comments Strongly Agree Agree Disagree Strongly Disagree Total No. of Respondents 15 17 15 3 50 Percentage Share 30 34 30 6 100

Job rotation as a technique of training

Strongly Agree Agree Disagree Strongly Disagree

Interpretation To find out that Job Rotation can be used a practice for Training, Knowledge and Skill Development, it was found that 30% of the total sample surveyed is strongly agree with the fact along with 34% who are agree with the fact. It shows that Job Rotation is beneficial in certain circumstances, when there is a lack of financial resources to organize training, lack of sufficient time than we can use Job Rotation. Job rotation is having a limitation that it cannot be applied to higher posts and also an employee cannot be send to other department if a departmental training is required.

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Describing, the fact that Lectures/Seminars can be used as a tool for Training and Development at Executive Level: Comments Cannot be used Are Less Effective Only for certain instances Most Effective Method Total No. of Respondents 3 16 22 9 50 Percentage Share 6 32 44 18 100

Lectures/Seminars As a Tool For Training and Development at Executive Level

Cannot be used Are less effective Only for certain instances Most effective method

Interpretation To find out the applicability of the Lectures and Seminars as a tool for Training And Development, it was found that majority of the sample surveyed is agree with the fact that it can be applied for certain instances. 32% of the sample surveyed finds it to be less effective in enhancing the skill of an individual. Lectures and Seminars can be used only when theoretical knowledge is to be imparted to boost up Moral Values and in Orientation programs only.

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Describing, the fact that For Enhancing Decision Making Skills, Simulation Training Technique is most Effective Method: Comments Strongly Agree Agree Disagree Strongly Disagree Total No. of Respondents 11 28 10 1 50 Percentage Share 22 56 20 2 100

For Enhancing Decision Making Skills, Simulation Training Technique is most Effective Method

Strongly Agree Agree Disagree Strongly Disagree

Interpretation The above result reveals that for Enhancing Decision Making Skills at the Managerial Level, Simulation Technique is one of the most useful tools. Simulation Technique uses, method of creating hypothetical situation which acts as a Brain Teasing technique and helps in developing Decisive Power. Simulation Technique can only be used for enhancing Decisive Skills but it cannot be used for operational training.

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Describing, the fact that Training designed by Organization itself will be more helpful as compared to the training designed by third party(Out House Training): Comments Strongly Agree Agree Disagree Strongly Disagree Total No. of Respondents 22 15 9 4 50 Percentage Share 44 30 18 8 100

In House Training (Designed By Organization) is More Effective than Out House Training

Strongly Agree Agree Disagree Strongly Disagree

Interpretation The above result clearly shows that the In House Training is more effective and efficient in enhancing skills of the individual employee. A very big portion of the total employee (44%) under survey is strongly agreed with this fact along with 30% who are agreeing. So it is very clear that, an organizational training is far much better than Out House Training. An organization can easily understand its work and workforce, so it is preferred to have In House Training.

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Describing, the fact that Use of Audio/Visual Aids in Training And Development Programs makes it more effective: Comments Strongly Agree Agree Disagree Strongly Disagree Total No. of Respondents 23 22 4 1 50 Percentage Share 46 44 8 2 100

Use of Audio/Visual Aids in Training And Development Programs Makes It more Effective

Strongly Agree Agree Disagree Strongly Disagree

Interpretation During finding the effectiveness of using Audio/Visual Aids in training and development program, it was found that it makes the programs more successful. Using audio/Visual aids helps in understanding the concepts very easily, as accepted by 90% of the total sample surveyed. Audio/Visual aids should be used as much as possible while designing a training module.

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Describing, the fact that Training and Development should be a continuous process or it is required during new recruitment only: Comments Should be a continuous process Time consuming process Necessary only during new recruitments Both B & C Total 8 50 16 100 4 4 8 8 No. of Respondents 34 Percentage Share 68

Should training & development be regular process

Should be a continuous process Time consuming process Necessary only during new recruitments Both B & C

Interpretation The above result very clearly proves the fact that Training is not only required during new appointment or promotion or job rotation, but it should be a continuous process even on the same post/work. Due to the changes and advancement it is mandatory to update an individual to work perform better. Though there is also thinking, that it is Time Consuming process, so by keeping in mind the time constrains a training module should be designed and it should be continuous and periodic.

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Describing, the fact that The Length of Training and Development Program Should Be: Comments Less than 1 week About 1 week Approx. 15 days As per the requirement Total No. of respondents 6 9 4 31 50 Length of training & devlopment programe Percentage Share 12 18 8 62 100

Less than 1 week About 1 week Approx. 15 days As per the requirement

Interpretation During finding out the approximate length of the training module, it was found that the Length of Training module cannot be fixed for all training module. It depends upon the requirement of the job. While deciding the length of training module it should be kept in mind that the length should be in accordance to the availability of organizational resources

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Describing, the opinion Of Employee which method is best suitable while designing a Training Module: Comments On The Job Training Role Play Lectures And seminars Training Workshop No. of respondents 24 3 4 12 Percentage share 48 6 8 24 20 100

Developed Training Centre 10 Total 50

Method while designing training module

On The Job Training Role Play Lectures And seminars Training Workshop Developed Training Centre

Interpretation While trying to find out the most preferred method of Training and Development by the employee, it was found that the On Job Training is the best one. About 45% of the total sample surveyed is agree with the fact that on job training gives a practical exposure and is most helpful in understanding the work and organization. Training Workshops are also the most suitable ways of learning the job requirements. All the above given processes can be used depending upon the requirement and availability of the resources Role Plays and Lectures/Seminars are the least preferred method of training and development. They can only be used during the Behavioral and Attitudinal development of an individual.
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Describing the fact that How Many Employees Have Ever attended any Seminar\Lecture for Personality Development: Comments Yes No Total No. of respondents 32 18 50 Percentage Share 64 36 100

Employees Who Have Ever Attended any Seminar\Lecture for Personality Development

Yes No

Interpretation The above result clearly shows that about 64% of the totals have attended Lectures/Seminars during their period of working. This shows that for developmental programs Lectures/Seminars are getting used as per the requirement and Job specification for enhancing the skills and capabilities of the individuals.

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Describing, the fact that Attending any Seminar\Lecture for Personality Development Is Helpful In Improving Any of Related Skills or Not: Comments To some extent Very helpful Not beneficial at all Unpredictable Total No. of respondents 15 12 2 3 50 Percentage Share 47 38 6 9 100

Attending any Seminar\Lecture for Personality Development Is Helpful In Improving Any of Related Skills or Not

To some extent Very helpful Not benificial at all Unpredictable

Interpretation During finding the effectiveness of Lecture/seminars it was found that from the total 45% of the employees, who have attended it, 47% consider it to be helpful to some extent. About 38% of the total, who has attended, consider it to be very helpful. They found it to be very useful in enhancing their skills. This shows that Lectures/Seminars should also be organized time to time to boost up the required skills.

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Chapter-4 Lesson Learned

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FACTS AND FINDINGS Training and Development Programs are organized in almost every organization. Training And Development is the most important process in the organization to enhance the Skills and Capabilities of the organizational workforce. Training and Development Programs are to be organized 2-3 Times a year. Training and Development Programs are required in all most all the cases such as new appointments, Promotions, Job Rotation and Transfers etc. Experience is considered to be more important than Training and Development Programs in enhancing the skills of an individual. The usual methods of Training and Development Programs are: - On the Job training, Role Plays, Lectures/Seminars, Simulation Techniques, Vestibule training etc. On The Job Training is considered to be most effective method of Training and Development. Vestibule Training is also consider to one goo method as it does not affect the whole organizational work and gives an indirect exposure to real situation. Job Rotation can also be used as a tool of Training and Development. Lectures/Seminars can be used as a tool for Training and Development at Executive level Simulation Techniques can be used to enhance the decisive Powers In house Training is preferred over out House training.

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CONCLUSION AND SUGGESTIONS

The Length of Training and Development Programs should depend upon the requirement of Job. The Training and Development Programs should be conducted 2-3 times a year. For enhancing the Decisive Power, Simulation Technique can be used. As far as possible the In House training should be organized At Executive Level Lectures/Seminars should be preferred than any other method of Training And Development. For personality Development Lectures should be organized with- in the organization, as they are cost effective and are easy to understand Audio/ Visual Aids are very helpful in making the Training And Development program more effective, so they must be used as far as possible.

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BIBLIOGRAPHY C.B. Gupta; Human Resource Management, Sultan Chand and Sons, New Delhi, 1998 www.humanresource.org www.sail.co.in http://www.steel.nic.in/ SAIL HRD Hand Book

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Appendices

Questionnaire for Research Name: Organization: Years of Experience: Contact No: Designation: E-Mail Id

1. . Have you ever underwent any training and development program, organized by your organization (a) Yes (b) No

2. . Training And Development Programs are important for Individuals Performance Enhancement: (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Agree

3. In your opinion, how frequently training programs should to be organized. (a) Once in a month (c) Once in a year 4. Training is more required in the case of only: (a) New Appointment (c) During Job rotation (b) Promotion (d) In all cases (b) 2-3 times in a year

5. Experience is more beneficial in skill development rather than training (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree

6. What are the usual method of Training and Development in your organization (a) On the Job Training (b) Role Play (c) Lectures and Seminars (d) Training workshop (e) Have well developed Training Centre for In House Training 7. On the Job Training (Along with work) is most effective way for Training and Skill Development: (a) Strongly Agree (c) Disagree
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(b) Agree (d) Strongly Disagree


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8. If Training is provided by artificially designing the work environment in the organization, then it will be more beneficial to trainee as well as other staff as they will not get suffer(Vestibule Training): (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree

9. Job rotation is one of the best practice for Training, Knowledge and Skill development (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree

10. Do you think Lectures/Seminars can be used as a tool for Training and Development at Executive Level: (a) Cannot be used (c) Only for certain instances 11. For enhancing Decision Making (b) Are less Effective (d) Most Effective Skills, Simulation Training

Technique(Generating Hypothetical Situation of the Business World), is a best method: (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree

12. A Training designed by Organization itself will be more helpful as compared to the training designed by third party(Out House Training): (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree

13. Use of Audio/Visual Aids in Training And Development Programs makes it more effective: (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree

14. Training and Development should be a continuous process or it is required during new recruitment only: (a) Should be a continuous process (b) Time Consuming Process (c) Necessary only during new Recruitments (d) Both b & c

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15. The length of Training and Development Program should be: (a) Less than 1 week (c) Approx. 15 Days (b) About 1 week (d) As Per Requirement

16. In your opinion which method is best suitable while Designing a Training Module: (a) On the Job Training (b) Role Play (c) Lectures and Seminars (d) Training workshop (e) Have well developed Training Centre for In House Training 17. Have you ever attended any Seminar\Lecture for Personality Development: (a) Yes (b) No

If yes then move to 8th question, else leave that 18. Was that helpful in improving any of your related skills: (a) To some extent (c) Was Very Helpful (b) Not beneficial at all (d) Unpredictable

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