Communication

“COMMUNICATION IN PUBLIC SECTOR UNDERTAKINGS” Submitted as Partial fulfillment of Award of MBA Degree E.SWARNA SRI 07R11E0054

MR. N. S. R. MURTHY (Associate professor) Geethanjali college of Engineering & Technology

Department of Management Studies Geethanjali College of Engineering & Technology Cheeryal-501301, Kessar (M), R.R. Dist., A.P.

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY Hyderabad, A.P.

1

Certificate

This is to certify that project entitled COMMUNICATION IN PSUS is the bonafied work of Ms. E.SWARNA SRI Bearing Roll No. 07R11E0054 submitted in department of management Studies of Geethanjali College of Engineering & Technology, Cheeryal501301, RR District, A.P., for partial fulfillment of award of M.B.A (Masters of Business Administration) degree by Jawaharlal Nehru technological University, A.P. Hyderabad.

GUIDE Place: Date:

HOD

Principal

2

DECLARATION

I declare that the dissertation under the title “Communication in public sector undertakings” is an authentic and solely prepared by me. This has not been submitted either in part or in full for any degree or diploma of any university earlier.

Place: Cheeryal Date:

E.SWARNA SRI 07R11E0054

3

ACKNOWLEDGEMENT

This project is an authentic work of mine prepared during the study of SINGARENI COLLIERIES COMPANY LTD, Kothagudem.

I express my deepest gratitude to guide Sri A. Buchi Prasad (Welfare Officer), SINGARENI COLLIERIES COMPANY LTD.,. Whose guidance at every stage as enables me to submit this project in time.

For most I would like to thank and express my gratitude to other staff members who has spared their valuable time to discuss about the project for it to gain the objective. They have also been a continued source of inspiration.

I am also grateful to PROF. DR. M. SRINIVAS RAO (HOD of M.B.A in GEETHANJALI College) and also to MR. N. S. R. Murthy (Associate Professor of GEETHANJALI College), Cheeryal for helping me to complete the project with their valuable suggestions.

4

CONTENTS

Chapter

Topic

Page No

I. II.

INTRODUCTION

7 - 39

COMPANY PROFILE

41 - 59

III.

DATA ANALYSIS & INTERPRETATION 1. List of Tables 2. List of Graphs

61 - 68

IV.

CONCLUSIONS & SUGGESTIONS 1. Conclusions 2. Suggestions APPENDIX 1. Questionnaire 2. Bibliography

69 - 72

73 - 75

5

CHAPTERISATION

The present study organized in four chapters as Detailed below:

Chapter-1: The first chapter includes Industry profile, Introduction to the topic, facilities provided by the organization and relations maintained by the organization, Need for the study, objectives, Research Methodology and Limitations of the study.

Chapter-2: and its history.

The second chapter consists of profile of the company

Chapter-3: The third chapter is the core chapter of the study. The chapter through its analysis, tabulation and interpretation gives a clear picture of the present study.

Chapter-4: The fourth chapter deals with the summary part of the study where in findings is derived from the study. It also tries to offer some suggestions.

6

CHAPTER – 1

7

COMMUNICATION IN INDUSTRY

The importance of communication was not very much highlighted by the traditionalists. They took organisation more as a technical and formal structure hence the need of communication was undermined. But Hawthorne experiments conducted by Elton Mayo and his colleagues observed that organisations are social structures consisting of people working at different levels, having multiple differences. Their proper interactions are necessary for achieving common goals. Therefore, the importance of communication was realised more after thirties and the world of modern day management is really a world of communication. Now-adays, it is considered to be an important human skill. The ability to communicate effectively has become one of the major skills of a successful manager. According to a research conducted by Paul Pigors and C. Mayer’s, an executive spends his near about 40% time in communication. In some cases communication requires up to 60% of manager’s time. The lowest levels of managers, such as foremen, may spend less time in communication activities but the higher one is in the organisational hierarchy, the more likely he is to spend greater time in communication.

An ex-president of American Management Association once observed that the number one management problem today is communication. Bernard has called it the foundation of all group activities. In the words of George R. Terry. “Its communication serves as the lubricant fostering for the smooth operations of the management process.”

8

Impact of good communication on production:  Good communication relations improve the moral of the employees.  Complete mental revolution. i.e., better understanding towards each other.  New development programs may be introduced.  It will reduce wastage on all fronts.


It will reduce industrial disputes to the maximum by

promoting co-operation.

OBJECTIVES:



To study the Formal communication channels of SCCL.
9

    


To study the working of informal communication channels. To study the semantic Barriers in SCCL To study the psychological Barriers of SCCL To study Structural Barriers of SCCL. To study the Personal Barriers in SCCL. To suggest effective remedial measures in improving

communication in SCCL.       To study the methods of communication. To study the techniques used in SCCL in communication. To know the problems and requirements of the employees. To understand employee employer relations To study the industrial Harmonious of SCCL. To study employment related issues of SCCL.

RESEARCH METHODOLOGY
10

Research Design Population Data source Primary Data

: Descriptive in nature. : Employees of the organization. : Primary and secondary data. : Data collected through administering the Structured questionnaire.

Secondary Data

: It is collected from the company Material, Textbooks and website.

Research Approach : Survey method. Research Instrument: A well-structured questionnaire. Sample Size : 100

Sampling Technique : Random Sampling.

LIMITATIONS
11

 The data is collected through questionnaire from the employees and employers of the organization.

 The sample size of the study was confined to 100 only, hence it cannot be generalized to all areas.

 While filling the questionnaire employees could not provide 100 percent accurate information because of their illiteracy and personal limitations.

 While calculating the percentages, approximations are made to the nearest figures. This may not give true picture of the study.

NEED FOR THE STUDY
12

The human resource is one of the crucial factors for any organization in order to achieve better results. The management of human resources is an important factor in today’s business. The harmonious Communication maintained by the organization should be studied at each and every occasion for the smooth running of the organization. Hence there is a need to study about the Communication maintained by the organization.

13

CHAPTER – 2 COMMUNICATION

“Communication is sharing of understanding.” Any business organisation is a human group constituted for certain specified objectives. The achievement of these objectives largely depends upon the fact that all human efforts are properly co-ordinated and
14

integrated. Individuals in the organisation performing different activities are functionally interrelated. The working and maintaining of these relationships is possible only through communication provides for exchange of information. No business organisation can work without communication network. It is an important human skill. The ability to communicate effectively is one of major skills of a manager. According to a research conducted by Paul Pigors and C. Mayers, an executive, superior or manager spends his near about 70% time in communication. This face-toface communication plays a vital role in managerial decision-making. As a Benjamin Balinsky put it; “If there is any short-cut to execute effectiveness, it is the mastery of the art of face-to-face communication.” Definitions of Communication Communication is a word derived from the Latin ‘Communi-care’ literally meaning to make common, to share, to impart, convey or transmit. Communication is the process through which two or more persons come to exchange ideas and understanding among themselves. Newman and Summer define communication as an exchange of facts, ideas, opinions and motions, by two or more persons. Other definitions of communication are as follows: (1) “Communication is an intercourse by words, letters, symbols or manager: and is a way that one organisation member shares meaning and understanding with another.” --- Koontz and O’Donnell (2) “Communication is the sum of all the things one person does when he wants to create understanding in the mind of another. It involves a systematic and continuous process of telling, listening and understanding.” --- Allen. Louis A. (3) “The word Communication describes the process of conveying messages (facts, ideas, attitudes and opinions) from one person to another so that they are understood.” ---- Commin M. W.

15

(4) “Communication is an exchange of facts, ideas, opinions or emotions by two or more persons.” --- Newman and Summer. (5) “Communication is defined as intercourse by words, letters, symbols or message and a way that one organisation member shares meaning and understanding with another.” --- Bellows, Gilson and Odiorne. Thus we see that Communication in organisations has the following characteristics: (i) It involves more than one person.
(ii) (iii)

It deals with the transmission of facts and feelings both. Medias of Communication may be numerous.

(iv) As a business organisation has continuity, the process of communication is also a continuous process. The effectiveness of communication largely depends upon the proper understanding of what is being communicated and what is being received and then responded.
(v)

Thus the different views on communication emphasize the understanding element in the communication. Since, sharing of understanding would be possible only when the person, to which the message is meant, understand it, in the same sense in which the sender of the message waits him to understand. Thus, communication involves something more than more transmission of message and physical receipt thereof. The correct interpretation and understanding of the message is important from the point of view if organizational efficiency. As such, the greater the degree of understanding present in the communication, the more likelihood that human action will proceed in the direction of accomplishing organizational goals. Communication Process ---- Communication has been defined as a process. The process is a concept of changing rather than static existence. Events and relationships are seen as dynamic, continuous and flexible and are structed only in a relative sense. Communication process, as such, must be considered, as a whole, a continuous and dynamic interaction both affecting and being affected by many variables.
16

The Elements of Communication process A communication process involves the following elements:

SenderIdeasEncodingChannelReceivingDecodin g | -----------------------------------------------------------------Feedback |

Thus the above figure shows the following elements:

(1)Sender---

The person, who intends to make contact with objective of passing information and ideas to other persons, is known as sender. ---- This is the subject matter of Communication. This might be an opinion, attitude, feelings, views, orders or suggestions, etc. ------ Since the subject-matter of communication is abstract and intangible, its transmissing requires the use of certain symbols such as words, actions or pictures, etc. Conversion of the subject-matter into these symbols is the process of encoding. These symbols are transmitted to the receiver through certain channel or medium. ----- Receiver is the person to whom message is meant for.

(2)Ideas

(3)Encoding

(4)Channel-------

(5)Receiver

(6)Decoding-----

Receiver converts the symbols received from the sender to give him the meaning of the message. Feedback is the process of ensuring that the receiver has received the message and understood in the same sense as sender meant it.

(7)Feedback-----

Different types of communications:17

The following charts reflect upon the important types of communications in industry:

Communication | ------------------------------------------------------------------------------| According to Organisational Structure | ---------------------------| Formal | Informal | | | | | | | | According to Expression | | -----------------------------| Oral | Written

--------------------------------------------------------------------| Downward Communications | Upward Communications | Horizontal Communications

(A)

According to organizational Structure

(1) Formal communications--- Such communications are those communications which are associated with the formal organisation structure. The travel through the formal channels—officially recognized positions in the organisation chart. They are established mainly by the organisation structure. Formal communications are mostly in black and white. We generally hear the phase ‘through proper channel’. It explains the essence of formal channels. Such communications include orders, instructions, decisions or intentions, etc., of the superior.
18

(2) Informal communications--- Informal communications are also known as ‘Grapevine’ communications. They are free from all sorts of formalities, because they are based on the informal relationship between the parties, such as friendship, membership of the same club or association or origin from the same place. Such communications include comments, suggestions or any other informal reaction also. They may be conveyed by a single glance, gesture nod, smile or mere silence too.
(B)

According to Direction of Communication (1) Downward Communications---Communications which flow from the superiors to subordinates are known as downward communications. They include orders, rules, instructions and policy directives, etc. There nature is directive. It would be impossible to manage an enterprise without downward communications. (2) Upward Communications---Upward communications are just reverse of the downward communications. It flows from the subordinates to their superiors. Such communications include reaction and suggestions from workers, their grievances, etc. Contents of the upward communication are reports, reactions, suggestions, statements and proposals prepared for the submission to the boss, etc. There was very little appreciation of this form of communication sometimes before as it does not fit into the traditional theory of organisations. But in modern times, upward communication is considered to be a main source of motivation in employees. (3) Horizontal Communication--- When communication takes place between two or more persons who are subordinates of the same person or those who are working on the same level of organisation this communication is known as horizontal, lateral or managers, among superintendents of department working under one boss, the meeting of general managers of various factories are examples of such communications. Horizontal communications may be oral as well as written also. (4) Cross wise Communication --- It includes the horizontal flow of information, with people on the different levels who have no direct reporting relationships. This kind of communication is used to speed information flow, to improve understanding and to co-ordinate efforts for the achievement of organisational objectives. A great deal of communication does not follow the organisational hierarchy but cuts across the chain of command. The enterprise environment provided many
19

occasions for oral cross communication. They range from the informal meetings of the company and lunch hour spent together. This kind of communication also occurs when individual members of different departments are grouped into task teams or project organisation. Cross wise communication may create difficulties, but it is necessary in many enterprises in order to respond to the needs of the complex and dynamic organisational environment. a) To use simple words and phrases. b) To use short and familiar words. c) To use personal pronounce (such as you) whenever appropriate. d) To give illustrations and examples (charts, whenever possible). e) To use short sentence and paragraphs. f) To express through logically and in a direct way. g) To avoid unnecessary words. (5) Gestural Communication --- Expressions through body a part is know as gestural communication. Facial expressions, nodding of head, twinkling of eyes, movement of hands are examples of such communication. Sometimes a handshake or a prawn may convey easily what several words cannot do. Pictures, charts, diagrams and models are used for communication. Such communication through visual aids may be called pictorial communication.
(C)

According to way of Expression According to way of expression, the communication may be oral or written. (1) Oral or verbal Communications— in oral communications both parties to the process of communication exchange their ideas through oral words either in face-to-face communication or through any mechanical device such as telephone, etc. Meetings and conferences, lectures and interviews are other media of such communications. (2) Written Communications – They are communications in black and white words, graphs, diagrams, pictures, etc. they may take the form of circulars, notes, manuals, reports, posters or memos, etc.

COMMUNICATIONS NETWORK
20

In an organisation there is a number of a channel or paths connecting various positions for the purpose of communication. The sum total of these channels is referred to as ‘communication network.’ This is made up two types of channels which are interrelated and inter-dependent, viz. formal and informal ones. The existence of these channels is necessary for organizational communication further, these channels also determine, to a very significance extent, the smoothness, rapidity and correctness with which the messages flow in an organisation. If the channel is to narrow considering the volume of messages flowing through it, the messages may get delayed or blocked. Similarly, if the channel is too long again the something may happen. Besides the existence of a number of filter points in the channel may also affect the accuracy of the message flowing through it —something may get added or taken away from the original message at each of these points. (A)Communications Through Channel of command (FORMAL COMMUNICATIONS) Formal Communications of communication include established and organizational channel and officially recognised positions. So the formal channel, as the very name implies, is the deliberately created officially prescribed path for flow of communication between the various positions in the organisation. Thus, it is a deliberate attempt to regulate the flow of organisational communication so as to make it orderly and thereby to ensure that information flows smoothly, accurately and timely. We often hear the phase, ‘through proper channel’. It explains the essence of formal channels of combinations. This officially prescribed communication network may be designed on basic of single or multiple channels. A single channel communication network prescribes only one path of communication for any particular position and all communications to that position would have necessarily to flow through that path only. Ordinarily, this path is like of authority thinking a position to its line superior. It is also known as ‘channel of command’, and commonly referred to as ‘through proper channel’. Its implication is that all communications to and from a position should flow through the line of superior or subordinates only. Merits of Communication through Channel and Command

21

The formal communication or communication through channels of command has the following advantages:Maintenance of Authority of the Officers --- The formal communication helps the maintenance of authority of the line officers, subordinates respect their superiors. It helps in exercising control over subordinates and fixation of responsibility in respect of activities to be carried on by a person in the organisation.
(1)

Sound and Proper Communication --- An immediate superior has a direct contact with his subordinates He understands their attitudes, wants, level, of intelligence and capacity well. He can determine it efficiently as to how, what and at what time the information is to be communicated and to whom. It is easy to maintain and orderly in nature.
(2)

Other advantages --- Formal communication offers certain other advantages too. The formal organisation moulds the communication process along certain lines. It receives the support of line authorities and closeness of superior-subordinates reduces the changes of misunderstanding.
(3)

Demerits of Formal Communications Formal communication is not an unmixed blessing. It has the following disadvantages too:Overload to Work — In modern business organisations, there is a lot of information, messages and other things to be communication that if transmitted through formal lines of authority only, it will increase the workload on line officers. They will not be able to perform their other functions well.
(1)

Decay in Accuracy --- It provides bottlenecks in the flow of informations. It enhances the organisational distance also and the changes of more transmission errors are likely to incur there. Screening of information at various positions reduces the accuracy of the message.
(2)

Overlook by Line Officers --- Communication through chains of command is not suitable for upward communications at all. Line Officers do not take any interest in the grievances of their subordinates. They do not like to forward the suggestions to the top management given by their subordinates. They naturally introduce their own views into information. This bias changes the nature and characteristics of information at all when it reaches at its final destination.
(3)
22

Thus we see that formal communication is useful in downward communication only. One way of overcoming these limitations is to provide a number of communication channels linking one position with various other positions. Thus, the system of multiple channels may improve the situation for some cases but an unlimited use of this system may, however, cause confusion and also undermine the superior’s authority. So, along with formal communication the informal channels should also be developed for efficient and effective communication within an enterprise. (B)INFORMAL COMMUNICATION It is also known as ‘grapevine communications’. The communications to be made through informal channels of communication is called informal communication. It is not the result of an official action but of the operation of personnel, social and group relations of the people. A part from their formal organisational relationships, people have got social or personal relationships also. Such informal relations may be based on upon personal friendship, membership of the same club or origin from the same place. Such channels of communication serve as a quick vehicle for messages. While formal communication exists to meet the utilitarian needs of the organisation, informal communication is the method by which people carry on their non-programmed activities within the formal boundaries of the system. Such communications are very fast, spontaneous and flexible. It is a very active channel of communication through which the information is carried immediately. Merits of Informal Communication --- Informal channels of communication perform a positive service to the organisation. If operates with much greater speed. Moreover, their might be certain subject matter of communication which do not require their transmission through the formal channel. The formal network of communications is often relatively static; while the organisation it seek to active is dynamic and much react quickly to its changing environment. Consequently, the informal non-stable network of communications comes into frequently plan in every organisation. The informal communication needs of the various persons in the organisation, more particularly those persons who freely mix up with others and rely upon informal relationships. A typical informal communication network involves people within the same hierarchy level of an organisation, for example, among various departmental managers. Such communication enhances the ability of the organisation to meet sudden problems.
23

Demerits of Informal Communication --- Informal communication has certain basic limitations also. It is less orderly and less static also. Sometimes messages communicated through the informal channel are so erratic that any action based on these may lead to difficult situation to the organisation. Oftenly, it carries in accurate information, half truths, rumours and distorted information. In this case, the irresponsibility of the persons communicating through the informal channel is the most important factor. Since origin and direction of the flow of information is hard to pinpoint, it is difficult of assign responsibility for false information or morale lowering rumours. Moreover, each person conveying the message mat add, or subtract or change the origin message according to this motive, information communication problems multiply. There is chance that by the time a communication completes a complex journey it may be completely distorted. The informal communication is the part and parcel of the organisational process. The only thing management can do in this respect to take suitable actions to minimise the adverse effects of such channels. Proper analysis of informal communication and a suitable classification in this respect would be helpful in making its use towards organisational efficiency. SUBJECT MATTERS OF COMMUNICATION: The subject matters of communication, i.e., messages, ideas, suggestions, etc., being abstract and intangible, their transmission and receipt require use of certain symbols, which become the media of communication. These symbols may be (i) words(either oral and written); (ii) pictures (graphs and diagrams, etc) (iii) actions or gestures including facial expressions. Each of these media may be used to supplement each other. For example in Face-to-Face communication, gestures may be used to emphasize a point and diagrams or charts may be used to classify the point being described in writing. Of these, oral and written methods of communication are the most important. Oral communication In oral communication both the parties to the process, i.e., sender and receiver exchange their ideas through oral words either in face-to-face conversation or through any mechanical or electrical devices such as telephone, etc.

24

Merits of oral communication – oral communication is very helpful in face-to-face two-way communication where people can exchange their feelings freely and clarity regarding on doubt may be easily sought. It has very high degree of potentiality for speedy and complete interchange of information. Possibility of gestural communication being used along with oral one increases the effectiveness of this type of communication since action speak louder than words. Important points may be emphasized through actions. Rank and file employees as well as supervisors and even managers often prefer oral communications. They enjoy the opportunity to task questions and participate in the discussion. Face-to-face oral communication is sometimes supplemented by public address systems that permit managers to speak directly to workers is the workshop. Demerits of oral communication – It suffers from the disadvantages of absence of any permanent record of communication. Sometimes, it becomes time-consuming specially in meeting and conference when after various deliberations nothing concrete comes out. Sometimes, oral communication is not taken seriously by the receiver and basic objective of communication in such cases is not achieved. There is also a possibility the spoken words are not clearly heard or understood. Sometimes, due to previous strained relations of superior-subordinate the words are taken in otherwise sense also. Written communication When the communication is reduced into writing, it is called the written communication. This includes written words, graphs, diagrams, picture, etc. written communication are extensively used in organisations. Sometimes, this form of communication becomes indispensable as in the case of Rules, Orders, Schedules or Policy-matters, etc. The circulars, magazines, notes and manuals are some common force of written communications. Merits of Written communication -- Written communication possesses the capacity of being stored as record for future references. The communication efforts may be minimized by simultaneous communication to various points, such as though circulars, etc. it also enables the communication to take place between distantly placed parties without much cost. Written communication is more orderly and binding on subordinates and superiors to take suitable actions in the organisation.
25

Demerits of Written communication – Written communication, however, suffers from major drawbacks also. It is very time-consuming both in terms of preparation and in terms of understanding. There is a greater chance of communication being misunderstood. Sometimes, it is more costly in comparison to oral communications. ORAL vs. WRITTEN COMMUNICATION Each of the different media of communication has its strengths and weakness which determine its use and suitability for communication in any particular context. Thus, in some causes, oral communication might be useful while in others, written communication may be necessary. As such, one cannot depend upon a particular medium of communication and both of the medium are complementary to each other. That is why, in practice both these media are used. Oral communication is however more useful where the subject-matter is complex and final decision requires deliberations from the person’s concerned. Moreover, in day to day business and in routine types of activities, oral communication may be relied upon. But, where the messages are to be kept for future reference, written communication is the only alternative. Form of Communication Oral and written communications may take a number of shapes or forms depending upon the situation. The following lists presents some commonly used ones in communication in different ways.

Oral 1.
2.

Written 1. Rules Handbook and instructions

Personal instructions.

Lecture,conferences, meetings. 3. 4. Interviews. Grapevine rumours.

2. Letter circulars and Memos. 3. Bulletine and Notice boards 4. Posters 5. Handbooks and Manuals. 6. Annual Reports. 7. House Magazines.
26

5. Face-to-face conversation. 6. Telephone, etc.

7.

Union channel.

8. Union publications. 9. Personal Suggestions. letters and

10. Complaint procedure.

PRINCIPLES OF COMMUNICATION The sole aim of communication is to keep people informed. Communication for the sake of communication only is fruitless and ineffective. It should serve the desired purpose. For this, the management should develop an effective network of communication. In evolving an effective system of communication, the management should keep the following relevant and useful principles of communication in its mind. Principle of Information -- Commenting on the ‘communications realism’ Terry says that first principle of effective communication is to ‘inform yourself fully’. It implies the first of all the sender must be clear in his mind what he wants to communicate. Better the understanding, effective the communication would be.
(1)

Principle of Clarity --- Communication should always be in common and easily understandable language. The ideas should be clear and ambiguous. It should be kept in mind that ‘words do not speak themselves but the speaker gives them meaning’.
(2)

Principle of Attention --- The principle aim of communication is to make the message understood by the recipient; not just the transmission
(3)
27

of ideas from one person to another. It is possible only when the person being communicated evinces interest and pays proper attention to the communicator. The principle of actions speaks louder then words—should be kept in mind by the executive in this respect. Principle of Consistency --- This principle implies that messages should not be mutually conflicting; rather they should be in line with the overall objectives, policies, programmes and procedures of the concern. It will not be out of place of remark that self –contradictory messages always create chaos and confusion in the organisation which is highly detrimental to the efficient running of the enterprise.
(4)

Principle of Adequacy ---This principle demands that the information being sent should be adequate and complete in all respects; as incomplete information turns out to be extremely, dangerous from the view point of the business. The adequacy of information being transmitted depends upon the intellectual capacity of the recipient also the individual circumstances of each particular case.
(5)

Principle of Timeliness --- Ideas must be conveyed at the proper time, any delay in this respect will make mere historical documents as the information loses its importance on account of delay.
(6)

Principle of Integration --- The primary object of every communication should be to strengthen the enterprise so that it may enable itself to accomplish its goals within the set framework. The executives should always attach due importance to the fact that communication is a means to an end, not an end in itself. It should be geared toward achieving a genuine spirit of co-operations among the organisational personnel so that they may put their mite in the attainment of enterprise goals.
(7)

Principle of Informality --- Formal channels of communication are important and useful in their own place, but experience and practice of many companies reveal that informal information which is extremely useful for the purposes of the management. So, management should identify the dignity of such channels besides using formal communication networks for funneling information in several directions.
(8)

Principle of Feedback --- The next more important principle of an effective communication system is the existence of Feedback confirmation. Whether the message has been understood by the receiver in the same sense in which the sender takes it for and also whether the recipient is agreed or disagreed to the proposal of the communicator, makes its essential on the part of the sender to confirm it from the receiver. In case of verbal communication, exists a number of opportunities to secure Feedback in comparison to written communication. But for written communication, the management should drives or evolves suitable means and ways in this regard for the sake of making communication for effective.
(9)
28

(10)

Communication Networks --- Communication networks refer to the routes through which the exchange transmission of ideas, informations and opinions flow in the process of being transmitted to the destination person for whom it is intended. A number of such networks may exist in the organisation at a particular point of time. But management should figure out such networks only which will contribute a lot in boosting the morale of individual members working in the organisation.

Methods of Evaluating the Effectiveness of communication; Communication is the life blood of and organisation and without it organisation cannot work effectively. As such, management should ensure that adequate and smooth communication flows in al directions and it is effective as well. For this purpose a periodical review of the existing pattern of communication effectiveness should be made. This review would, on the one hand, reveal the direction in which the existing fails short of organisational requirements, and on the other hand, would reveal the underlying forces responsible for the prevailing state of affairs as also the actions required to remove these. There are several methods for evaluating the effectiveness of communication. There are as under:-BARRIERS TO COMMUNICATION The communication is an important instrument in the hands of management. An effective communication system improves the relationship between workers and management. It helps a lot in establishing peaceful industrial relations too. The morale of employees is improved and their productivity also goes high. But sometimes communication does not give the desired results. ‘What is communicated? And how is it communicated? Is it not important in comparison to this fact that flow much is understood’. There are many obstacles or barriers in the process of communication which contribute to its failure. As it has been said that the greatest enemy of communication is its illusion, is perfectly right.

A. SEMANTIC BARRIERS
29

These barriers arise from the linguistic capacity of the parties involved. The following are some common forms of semantic barriers: Badly Expressed Message – Lack of clarity and precision in a message makes it badly expressed. Poorly chosen and empty words and phrases, careless omission, lack of coherence, bad organization of ideas, awkward sentence structure, and inadequate vocabulary, numbering repetition, jargon, and failure implication are some common faults found in this case.
(i)

(ii)Faulty Translations – Every manager receives various types of communications from superiors, peers, subordinates and he must translate information destined for subordinates, peers and superiors into language suitable to each. Hence the message has to be put into words appropriate to the framework in which the receiver operates, or it must be accompanied by an interpretation which will be understood by the receiver. Unclarified Assumptions – There are certain communicated assumptions which underline particularly all messages. Though a message appears to be specific, its underlying assumptions may not be clear to the receiver.
(ii)

Specialist’s Language – it is often found that technical personnel and technical language of their own. This increases their isolation from others and builds a communication barrier.
(iii)

B. EMOTIONAL AND PSYCHOLOGICAL BARRIERS Emotional or psychological factors are the prime barriers in inter-personal communications. The meaning described to a both the parties involved. The following are important example of emotional barriers: Premature Evaluation – Regers and Roethlisberger in 1952 first pointed out this barrier. Premature evaluation is the tendency of prematurely evaluating communications, rather than to keep an uncompromised position during the interchange. Such evaluation stops the transfer to information and begets in the sender a sense of futility.
(i)

Inattention – The pre-occupied mind of a receiver and the resultant non-listening is one of the major chronic psychological barriers. It is a common phenomenon that people simply fail to bulletins, notices, minutes and reports.
(ii)

30

Loss by transmission and Poor Retention – When communication passes through various levels in the organization, successive transmissions of the same message are decreasingly accurate. It is said that in case of oral communications about 30% of the information is lost in each transmission. Even in case of written communication, loss of meaning might occur as far as the append interpretation, if any, is concerned. Poor retention of the information is again a malady. It is shown that employees retain about 50% of information only, whereas supervisor retain about 60% of it.
(iii)

Undue Reliance on the Written Word – Written word is no substitute for sound face-to-face relationships and that employees cannot be persuaded to accept companies’ viewpoints and policies through “slick”, easy-to-read, well illustrated publications unless there is a fair degree of mutual trust and confidence between the organization and its employees.
(iv)

Distrust of Communicator – It arises out of ill-considered judgements of illogical decisions or frequent counter mending of the original communication by the communicator. Repeated experience of this kind gradually conditions the receiver to delay action of act unenthusiastically, hence making the communication unsuccessful, though apparently it is complete.
(v)

Failure to communicate – It is quite an accepted fact that managers often fail to transmit the needed messages. This assuming might because of laziness on the part of the communicator, or assuming that “everybody knows”, or procrastination or “hogging” information or deliberately to embarrass.
(vi)

C.

ORGANISATIONAL BARRIERS:

(i) Organisational Policy – The general organisational policy regarding communication acts as an overall guideline to every one in the organisation regarding how he is normally expected to behave in this matter. The policy might be in the form of explicit declaration in writing, or, as is very commonly the case, it has to be interpreted from the behaviour of organisation members, particularly people at the top. If this policy is not supportive to the flow of would not be smooth and adequate. (ii) Organisational Rules and Regulations – Organisational rules and regulations affect the flow of communication by prescribing the subjectmatter to be communicated and also the channel through which these are to
31

be communicated. The rules may restrict the flow of certain messages and may leave many important ones. On the other communication through proper channel in a specified way prescribed by these rules delays it and works against the willingness of persons to convey the message. (iii) Status Relationships – The placing of people in superiorsubordinate capacity in the formal organisation structure also blocks the flow of communication and more particularly in upward direction. Greater the difference between hierarchical positions in terms of their status, greater would be the possibility of communication breakdown. (iv) Complexity in Organisation Structure – In an organisation where there are a number of managerial levels, communication gets delayed, chances of communication getting distorted are more and the number of filtering points are more. This is more true in case of upward communication, because people generally do not like to pass up the adverse criticism either of them selves or of their superiors. Organisational Facilities – Organisational facilities provided for smooth, adequate, clear and timely flow of communication, may take a number of forms. If there are not properly emphasized generally people fail to make effective communication
(iv)

D. PERSONAL BARRIERES: Personal barriers can also be of 2 types:
1.

Barriers in superiors

The role of superiors in communication is very vital. Because of their hierarchical relationships with subordinates, they act as barriers in a number of ways discussed below:of Superiors – The attitudes of superiors towards communication in general or in any particular direction affect the flow of messages in different directions. For example, if this attitude is unfavourable, there is greater possibility that messages would not flow adequately from and/or to superiors. Fear of Challenge to Authority – A person is the organisation always tries to get a higher position and prestige to satisfy his needs. As such, managers in general try to withhold the information coming down the line or going up as frequent passing of information may disclose their weakness.
(ii) (i) Attitude

32

Insistence on proper channel – One of the basic features of superiors’ exercising of the authority is that they wish to remain in communications and they do not like any type of by passing may, sometimes, by necessary but superiors treat this as thwarting of their authority and blocks the flow of communication.
(iii)

Lack of Confidence in Subordinates – Superiors generally perceive, correct or otherwise, that their subordinates are less competent and capable, they are not able to advise superiors or they may not have some information coming downwards.
(iv)

Ignoring Communication – Sometimes superiors consciously and deliberately ignore the communication from their subordinates to maintain their importance. This works against the willingness of subordinates to communicate.
(v)

of Time – Superiors feel, whether correct or otherwise, that they are overburdened with the work and they have little time to talk to their subordinates. Lack of Awareness – Sometimes, superiors may lack the awareness about the significance and usefulness of communication in different directions in general or of particular subject-matter. In such a case, communication flow is blocked.
(vii)

(vi) Lack

2. Barriers in subordinates Two factors are more important in the case of subordinates and these are responsible for blocking communication in upward direction. to Communicate – Sometimes, subordinates do not communicate upwards certain information because they are not willing to do so. Thus, if a subordinate feels that he is likely to be adversely affected by a particular piece of information to his superior, he would not be willing to supply it. Lack of Incentive – Sometimes lack of incentive also obstructs the flow of information. It happens specially in case of upward communication.
(ii) (i) Unwillingness

A GOOD COMMUNICATION SYSTEM
33

A good system of communication should possess certain essential characteristics which are explained below: channel – Communication involves two parties, the sender or transmitter and the receiver of the massage. Mere transmission of facts, ideas, information, etc., does not make any communication effective and meaningful. It is essential to keep the channel open for sending the receiver’s views. Understanding and opinion about the communication. Therefore, a good communication system should be like a two-way traffic. Transfer of information should take place from the senders to the receives and vice versa without any interruption. Clarity of Message – The message must be as clear as possible. No ambiguity should creep into it. The message can be properly only if it is clearly formulated in the mind of the communicator. The message should be encoded in direct and simple language so that the receiver is able to understand it without much difficulty.
(ii) (i) Two-way

Credibility of message – Credibility of the message is an important factor which promotes understanding and cohesiveness among organisation among organisational members. It depends to a large extent on the rapport between the parties concerned. A related characteristic is timeliness of communication which contributes to its credibility. The message should be complete also. Inadequate message delays action, spoils good relations and affects the efficiency of the parties to communication adversely.
(iii)

Speed of Transmission – A good system of communication has short lines of information flows which help to minimize distortion and dilution of the messages transmitted. It should give considerable importance to the speed of transmission of message. However speed of communication should not impair the accuracy of the information to be transmitted.
(iv)

Mutual Understanding – A good communication system should achieve better relations between the parties to communication. Transfer of information or knowledge should take place in a cordial atmosphere. Absence of mutual understanding signifies the lacuna in the system in the sense that communication becomes one-sided affair only. Mutual trust, belief and reliance should be the goals of any communication system.
(v)

Flexibility – A good system is flexible enough to adjust to the changing requirements. It should carry extra loads of information with much strain. It should absorb new techniques of communication with little resistance. Employment of a wide range of media such as oral and written messages ,face-to-face contact, telephonic calls, group meetings, etc., should be made use of without any hesitation.
(vi) 34

Reliance on Feedback – feedback refers to transmission of information concering the effect of any act of communication. For example, the manager who sends a directive to his subordinate should know the response of the letter. Feedback information flows upward and downward. Its purpose is to reinforce or correct the action implied in any act of communication. Feedback also provides an opportunity for suggestion and criticism.
(vii)

In nut shell, it can be said that communication is a two-way process. Management must give as much importance to upward communication as to downward communication. In order to direct the workforce effectively, every manager should possess the skill to communicate well. The manager who can communicate well is able to execute his orders and instructions and build a workforce which is highly motivated. Every manager should try to see that there id no information gap between him and subordinates. It is information gap which is the major cause of workers’ resistance to change and their hostile attitude towards the management and the organisation.

The importance of communication in management can be judged from the following: Basis of Co-ordination – The importance of communication in the context of modern complex organisation is much greater. These big organisations being designed on the basis of specialization and division of labour constitute a large number of persons. The large size of organisation, the greater is generally the degree of specialization and division of work hence, the more urgent is need for co-ordination. Co-ordination requires mutual understanding about the organisational goals, the mode of their achievement and the inter-relationships between the work being performed by various individuals and all this can be achieved through communication only. In the words of Mary Cushing Niles, “Good communications are essential to co-ordination. They are necessary upward, downward and sideways, through all the levels of authority and advice for the transmission, interpretation and adaptation of policies for the sharing of knowledge and information, and for the more subtle needs of good morale and mutual understanding.”
(1)

Smooth Working of Enterprise – Communication makes possible the smooth and unrestricted running of the enterprise. All organisational interaction depends on communication. A job of the manager
(2) 35

is to co-ordinate the human and physical elements of an organisation into an efficient and active working unit that achieves common objectives. It is only the process of communication which makes co-operative action possible when objectives are desired, what and when, how people will react-this all depends upon the internal and external communication process of the organisation. In the words of Herbert G. Hicks, “communication is basic to an organization’s existence-from birth of the organisation on through its continuing life, when communication stops, organized activity ceases to exist.” Basis of Decision Making -- Communication is a primary requirement for decision-making. It is absence, it may not be possible for the top management to take any meaningful decision. Information must be received before any meaningful decision can be made. Again to implement the decision effectively, it becomes essential to have a good communication system. That is why Chester I. Bernard says that the first executive function is to develop and maintain a system of communication.
(3)

Increases Managerial Efficiency – Communication is essential for quick and systematic performance of managerial functions. The management conveys through communication only the goals and targets, issues, instructions, allocate job and responsibilities and looks after the performance of subordinates. As a matter of fact, communications lubricates the entire organisation and keep the organisation at work. In modern days the skill of communication has become an essential quality of successful management.
(4)

Promotion of Co-operation and Industrial Peace – More, better and cheaper production is the aim of all prudent managements. It may be possible only when there is industrial peace in the factory and mutual co-operation between management and workers. The two way communication promotes co-operation and mutual understanding between both the parties. The efficient downward communication helps the management to tell the subordinates what management actually expects from them. The upward communication helps the workers in putting their grievances, suggestions and reactions before management.
(5)

Establishment of Effective Leadership – Communication is the basis of direction and leadership. It is an influence process. By developing the skill of communication, a manager can be a real leader of his subordinates. A good system of communication brings them in those contacts with each other and removes misunderstanding.
(6)

Morale Building and Motivation— An efficient system of communication enables management to change the attitudes, to motivate, influence and satisfy the subordinates. “Most of the conflicts in business are not basic but are caused by misunderstood motives and ignorance of the
(7) 36

facts. Proper and timely communication between the interested parties reduce the points of friction and minimize those that inevitably arises.” Good communication assists the workers in their adjustment with the physical and social aspects of work. It improves good human relations in industry. Communication is the basis of participative and democratic pattern of management. Thus we see that communication is very vital for the existence and smooth running of organisation. Emphasizing the importance of communication Chester I. Bernard has very aptly remarked that: “The first executive function is to develop and maintain a system of communication.” Factors Responsible There are certain factors which can be held responsible for the growing importance of communication in business organisations. They are as follows: Growth in Size of Organisation – Business organisation in modern time have grown in size, employing thousands of persons, working at different places. Such large organisations have various levels of hierarchy in organisation structure. Direct contact are not possible, hence, communication is of vital significance in directing these people.
(1)

Growth of Trade Unions – After the World War II, the trade unionism has flourished very rapidly. Today, management of a large business house is not possible keeping them into confidence. Their cooperation can be obtained through an efficient system of communication only.
(2)

Technical Development – The technology is developing very fastly. The technical improvements affect the composition of groups, relationships between subordinate and his superior and the methods of working also. The adjustment in social, organisational and physical aspects of work is possible only through communication.
(3)

Emphasis of Human Relations in Industry – The growing importance of human relations in industry and the desire of management maintain to good human relations with their workers, have also necessitated to communication, Now the nature of employer relationship is changed from master-servant relationship to partnership helps in this process by changing the attitudes, perception, needs and feeling, etc.
(4)

Other Factors – The idea of social responsibilities of business, the developments in the field of sciences like, Sociology and Psychology, etc., have also increased the importance of communication in organisation.
(5) 37

WORKERS PARTICIPATION IN MANAGEMENT: It is a system of communication and consultation either formal or informal by which employees of organisation one kept informed about the affair of the undertaking and through which they express their opinion and contribution to management decision. Objectives:  It may be viewed as an instrument for improving the efficiency of enterprises and establishing harmonious industrial relations.  It is a device for developing social education for the purpose of promoting latent human resources.  It is a means for attaining industrial peace and harmony, which lead to higher productivity and increase production.  It may be viewed as humanitarian giving the worker an acceptable status within the working community and the sense of purpose in his activity.  It is an ideological point of view to develop self-management in industry. Levels of Participation: Broadly speaking there are 4 levels of participation. At the initial stage participation may be Informative and Associative Participation: Where members have the right to receive information discuss and give suggestions on the general and economic situation and concern production and sales programs, annual balance sheet and profit and loss account, long term plans for extension and soon. Consultative Participation:

38

It involves a higher degree of sharing of views of the members and giving them an opportunity to express their feelings. Administrative Participation: It involves a greater degree of sharing of authority and responsibility of the management function. Decision Participation: It is the highest form of participation where sharing in the decision making power is complete and the delegation authority and responsibility of managerial function to such a body is maximum. Forms of Workers Participation in India:  Work committees.  Joint management councils.  Joint councils.  Unit councils.  Plant councils.  Shop councils.  Workers representative on the board of management.  Workers participation in share capital.

39

CHAPTER - 3

COMPANY PROFILE
40

INTRODUCTION: -

In a developing economy like India, coal mining occupies a pivotal place since coal is the basic input for power and fuel to many basic and important industries like Powerhouse, Iron and Steel, Railway, Shipping and construction industries etc. Apart from these, industries like cement, fertilizes Chemicals, paper industries and thousands of medium and small scale industries are the main consumers of coal for their major input as fuel or energy requirement in process. Despite the development of alternative fuel sources like electricity, petrol and solar energy, coal continues to be major fuel material in many industries. Thus coal industry plays a strategic role in the Industrial development of any country, like India. During the last year i.e., 2005 the coal production in India has increased. In India, coal-producing companies are mostly in public sector and they are under the direct administration of the Ministry of Coal. The following Public/Private sector undertakings are dealing with coal production. Coal India Limited (CIL) Singareni Collieries Company Limited (SCCL) Naively Lignite Corporation Limited (NLCL)
41

Indian Iron and Steel Company (IISCO) Tata Iron and Steel Company (TISCO)

COAL INDIA LIMITED (CIL):

CIL having head quarters at “Calcutta” is the holding company with seven subsidiaries coal, six producing coal and design subsidiary viz.…. 1. Eastern coal Fields India Limited (ECFIL) _Sanctrica, West Bengal. 2. Bharath Cooking Coal Limited (BCCL)—Dhanbad, Bihar. 3. Central coal Fields Limited (CCL)-Ranchi, Bihar. 4. Northern CoalFields Limited (NCFL)—Singrruli, Madhya Pradesh. 5. Western CoalFields Limited (WCFL) –Nagpur, Maharastra. 6. Mahanandi CoalFields Limited (MCL)—Sambalpur, Orissa. 7. Central Mining Planning & Design institute Limited (CMPDIL)Ranchi, Bihar.

Singareni Collieries Company Limited:

Among the coal producing companies, SCCL occupies a vital position. For better understanding of the origin and growth of SCCL an attempt has been made to discuss the profile of SCCL, in this chapter.

ORIGIN AND GROWTH OF SCCL:

The SCCL is the oldest public Sector Company in India, carrying the coal mining activities in the Godavari Vally of Andhra Pradesh and catering to the needs of the consumers in southern India. The company has a history of more than hundred and twelve years, since the origin.
42

Of the origin of the SCCL may be traced back to the year 1871, when the coal was first discovered in the Nizam State at “Yellandu”. In those days pilgrims going to “Bhadrachalam” used stop travel by road, after getting down at Yellandu railway station before continuing their journey. One of such party arranged the firewood between them. They observed that the stones were also burning, sending out (emitting) heat even after the firewood was consumed. Subsequently geological reports based on drilling, etc., were taken up and found the Coal Reserves in that area.

BRIEF HISTORY OF THE COMPANY

The journey of the Singareni Company Limited started with the discovery of coal by Dr.William King Star in 1871. A group of pilgrims who destined to have a darshan of Lord Rama found a substance at Yellandu, which kindles their cooking fire. They then reported to Dr. William king star. The mining rights for exploiting the coal reserves were acquired by the Hyderabad Deccan Company, which was incorporated at London Stock Exchange. Hence Hyderabad Deccan Company started the first extracting of coal at Yellandu in 1886. In 1921, its scripts were purchased in London Stock Exchange and the name of the company was changed to The Singareni Collieries Company Limited after the name of the village Singareni where the coal was first found. The company became Government Company after Nizam purchased its shares from London Stock Exchange in 1945. Later after independence it came under the control of Government of India and Andhra Pradesh as a joint venture with equity ratio of 49% and 51% respectively. The SCCL is engaged in coal mining in four districts of Andhra Pradesh namely, Khammam, Karimnagar, Adilabad and Warangal. In overall India it spreads to 6% geographical area producing 10% of coal. The SCCL has also the distinction of the first Government Coal Industry.

Coal Reserves: 43

The mining rights of the company stretched over 320 K.M. over 4 districts with proven reserves of about 5,726 million tones of coal. Having laid growth perspectives, it envisaged a plan to drill nearly 13.25 lack meters by end of 2006-07 thereby increasing the expected reserves to 7,500 MT

SCCL-MISSION:

A. To retain our strategic role of a premier coal producing company in the country and excess in a competitive business environment. B. To strive for self- reliance by optimum utilization of existing resources and earn adequate returns on capital employed. Though investigation, coal deposits were to be quite rage around the village of “Singareni”. The Hyderabad (Deccan) company started its coal mining activities in “Yellandu” in the year 1889. Later in the 1921, the company was converted into a public limited company with name as the Singareni collieries Company Limited (SCCL) and in 1961 it became a public sector undertaking, being managed by the board of directors, appointed by the central and state government having shares in the ratio of 51:49 finances the shares capital of the company respectively. With a fraction of present private holding, SCCL has exclusive mining rights of coal in Andhra Pradesh. Mining operation of SCCL over 320K.M, in the Godavari Valley encompassing four districts in Andhra Pradesh with proved reserves of about 6,000 million tones.

The operation areas of the SCCL as are follows:

KHAMMAM DISTRICT – kothagudem, Yellandu, Manuguru. ADILABAD DISTRICT-Bellampalli, Mandamarri
44

And srirampur KARIMNAGAR DISTRICT - Ramagundam I, II, III, IV. WARANGAL DISTRICT- Bhupalapally.

The SCCL occupies a vital position in the countries production program, being a century old organization; the SCCL is the lifeline of the industry in its visibility. The SCCL’s coal consumers also spread to the state of Maharastra, Karnataka etc. the company has been making significant straits in modernization of its technology. Its foreign, collaboration extends to U.K., France, Germany and China for various projects.

Name of the Technology Traditional underground mining Open cast mining Long wall technology Blasting gallery technology

Percentage to the total output 38% 47% 12% 3%

HONORS:

The Company bagged 1st prize for Design and concept in the Mineral Sector at the 4th International Trade Fair on Mineral and Metallurgy conducted at Pragati Maidan, New Delhi from 12th September 2002. SCCL has established an Integrated Environment and Forestry Department and is a pioneer in Bioengineering works taken up at the Opencast-mines for stabilizing OB dumps and their reclamation. Over the years, more than 1.20 crore saplings have been planted over an area of 6070 hectares. SCCL’s Herculean efforts in this sphere that have been recognized by it being
45

awarded the prestigious Golden Peacock Environment Management Award by the world Environment Foundation in June 2005.

BUDGETARY SUPPORT AND ADMINISTERD PRICING:

The SCCL was receiving budgetary support from both Government of India and Government of Andhra Pradesh till some time ago, but they later abandoned. Also the pricing of coal was decided by government of India keeping its impact on other major sectors like, power, Railways, cement etc. The prices were not revised regularly, also hike in input cost due to periodical revisions of National coal wage agreements (NCWA), stores and interest were also not fully compensated by government. The strikes by the workers, least discipline among workers, sober technology absorption, apathy management caused the company heavy losses during the years 198993. The company was referred to BIFR in, but due to the efforts made by the management and GOAP, out of its purviews in 1993-1994 and posted a gain of 17.76cores and 26.64 cores in 1993-94 and 1994-95 respectively. But also, due to non-revision of pricing and APM it was imbibed in a heavy loss of Rs 1,219 cores up to 1996-97.

REMEDIAL MEASURES TAKEN BY COMPANY:

By the end of 1996-97, it has an accumulated loss of Rs. 1219 cores. The management of SCCL retrospects and introspected about the grave situation. The factors helped for coming this grave situation was identified and diagnosis to set rights them were adopted. The various factors that are tried to have good Industrial Relations.

46

Selective mines were adopted in Under Ground mines by installing shale-pricing arrangements in the mines and at CHPs to improve the quality of coal dispatches. Fuels supply agreements and joint sampling protocols including bonus/penalty clauses, with major coal consumers are also installed a customer’s satisfaction all to ensure customers satisfaction. In order to stand competitively, and obtain investments to meet growing demand for increased coal supplied and for technological reforms, the company has obtained restructuring package from Government of India in 1999, this includes a 10 years moratorium on payment of interest accrued on government on government loans of Rs. 663 cores and waiver of penal interest accrued and infusion of fresh equity by Government and Government of Andhra Pradesh of Rs. 251 cores and Rs. 268 cores respectively during the IX five plan period. The company on its parts its parts adopts includes retrenchments of surplus staff, inhibiting discipline among employees, maintaining good Industrial Relations, prudent management and fiscal policies, cost cutting measures, reducing unnecessary cost, prepaying height interest loans, and finally increasing its productions and efficacy, But in so way it has compromised into the interest of tits employees, society in large.

Success story of the Singareni collieries company Ltd

47

The Singareni Collieries Company Ltd is a government company 51% of shares belongs to state government and 49% of shares belongs to central government. The administration is under the control of state government. The chairman and managing director has highest authority in the company. The main activity of the company is to produce the coal from 55 underground mines and 11 open cast mines. The approximate manpower at present is 86000 including 2300 officers.

Prior to 1997 (Post reform period): -

 The company has accumulated losses of about 1269 crores.  There were as many as 100 unions.  There were strikes every day in atleast one unit.  The officers were not getting time to concentrate on planing, administration except dealing Industrial problems.  The cost of production is increased day by day.  The production is also not reaching the target because of strikes.  The law and order was also worsened in the coal belt.  The company at the verge of going to BIFR (Beuro of Industrial Finance Reconstruction).  Indiscipline is in increasing trend.  The quality of coal was degraded. The coal was mixed of stones or clay.  Low equipment utilization and inefficiency in operations increase of inventory.

48

Steps taken to go around: -

• Chairman and managing director started writing letters directly to the workmen on the occasion of New Year (Ugadi), Dasara, and dewali festivals and greeted them on the occasion. • In that letters he also explained about the present company status, scenario of market in rush of quality coal from other countries, cost of production details and its impact on working in the company. • Multi departmental committees were constituted with different discipline executives, mining, engineering, personnel, accounts, and industrial engineering departments. They explained to the workmen directly at each unit level about production, productivity, and cost of production, relations with workmen, strikes and its impact on different aspects. • Conducting union elections. • Quality awareness programs were taken-up. • Consumers were satisfied with the product came back to the company. • Strike days situation to “No strike” or “Strike free” month’s situation came. • Discipline improved. • Excess manpower reduced by introducing VRS (GHS) schemes. • Interference of outside agencies comedown. • The income of workmen is increased. • Special incentive schemes were introduced production, productivity, and attendance. basing on

• Special welfare awareness programs (SWAP) were taken. • Corporate hospital referrals increased.
49

• Counseling, taking disciplinary actions controlled unauthorized absenteeism. • Salaries giving through banks.

Pre-1997 Coal production OMS* Manpower No. of strikes Turnover Earnings per Man shifts(in Rs)

Post-1997

Gain 16% 54% -15% -83% 75% 97%

28.73million tones 33.24 0.98 114486 310 2114 crores 245.66/1.51 97053 35 3689 crores 679.86/-

INDUSTRIAL RELATIONS POLICY IN SCCL

Objectives to ensure industrial hormony in the company for improvement in discipline production and productivity and to achieve the objective of one industry one union. The board of directors of Singareni Collieries Company approved industrial policy on 17th Aug 1991 and subsequently make certain changes during the year 1998and 1999.

Determining relative strength of trade unions: The ministry of labour government of India will conduct verification of the relative strength of the unions functioning in the company through secret ballet once in 4 years (earlier it was once in 2 years). The trade union registered under trade union act 1926 and functioning atleast for 1 year after
50

registration or eligible for contesting in the elections. The registered union has to give an undertaking to abide by the code of discipline. They have to give and undertaking that they would discourage illegal strikes, maintain industrial hormony and strive to improve production and productivity.

Voters: All the workmen covered under NCWA (National Coal Wage Agreements) scale of pay.

Conduct of elections: The ministry of labour, government and unions will decide the time and date of elections. The counting of votes polled and the officers of ministry of labour will also do declaring of results. The ministry of labour is also issuing certificates with the details of recognition of status.

Recognized union and representative union (s): At company level the strength of each union shall be deemed to be proportionate to the percentage of valid votes polled in its favor. The union having the largest strength on company wide basis shall be recognized subject to securing atleast 15% of the valid votes polled. At area level the union security largest number of votes polled shall be treated as representative union for that area subject to securing atleast 15% of the valid votes polled in that area.

Forfeiture of recognition / representative status: -

Indulgence in or any encouragement to violence, intimidatory tactics, illegal strikes, violation of Law or violation of Code of Discipline shall render the Union liable to forfeiture of Recognized/Representative status. In the event of forfeiture of Recognition, the appropriate authority to
51

conduct a fresh election. In the event of forfeiture of Representative status, that union shall be treated at par with other registered trade unions, at the Area level, and the Union Recognized at Company level shall be treated as the Representative union for that Area.

MINES COMMITTEE:

This is constituted in relation to Section 3 of Industrial Disputes Act 1947. As per the act wherever 100 or more workmen are employed or have been employed on any day in the preceding 12 months, the appropriate government may by general or special order require the employer to constitute in the prescribed manner a works committee consisting of representatives of employers and workmen engaged in the establishment. The number of representatives of workmen on the committee shall not be less than the number of representatives of the employer.

Duties of the committee: -

It shall be the duty of the works committee to promote measures for securing and preserving amity and good relations between the employer and the workmen. To that end to the committee upon matters of their common interest or concern and endeavor to compose any material difference of opinion in respect of such matters. In Singareni Collieries Company Ltd the works committee is named as “Mine Committee” and this committee ordinarily will meet once in a month. This committee consists of 11 members and the following designations are covered:

52

From the workmen side:

Designation Filler Short farer / Mining sardar E &M / Haulage operator / Pump operator Coal cutters Tramers Trimmer man / Line man Others

Number of members 3 1 1 3 1 1 1

The recognized union / representatives union will nominate the workmen to the committee. The head of the department / manager will nominate the representatives from the side of management which will include supervisor staff. The welfare officer of the mine will act as member secretary of the committee. Generally the following matters are being discussed:

1) Production:  Production of the Mine.  Production of the Area.  Production of the Company.  Targets Achievements, and percentage of Achievements, variance reasons for shortfall. 2) The strategies for achieving the targeted production. 3) Productivity:
53

Output / Man shift (OMS).

 Filling OMS.  Percentage of peace rated Man shifts on total.  Tub average.

4) Break downs: The breakdowns of machinery / power will be discussed.

5) Work schedules: The preparatory works and their schedule time of completion will be discussed.

6) Quality: Measures taken to maintain and improve the quality of coal are being discussed.

7) Cost: The cost of production under the heading of wages cost, input cost and other costs and the cost per ton, loss / profit per ton, and the measures to the taken to reduce cost per ton.

8) Safety: The accident details of the mine are being discussed. The status of reportable accidents, serious accidents and fatal accidents. Details will be given to the members. The suggestions for minimizing the accidents and helping the injured person will be discussed.

54

9) Circulars: The circulars issued by corporate office, GM office will be informed to the members will be informed to the members.

10) Thrust in Areas:

The thrust areas of the management such as publicity, propaganda, reduction, of absenteeism, disciplinary action against chronic absentee’s settlement of terminal benefits etc.

11) Feedback on management policies. 12) Periodical medical examinations, training to various categories of employees and industrial relations situations are also being discussed. The workmen representatives will collect the grievances / problems faced by the workmen and bring to the notice of the management during the meeting. Some of the decisions are given on the spot and some matters will be referred to higher authorities for redressal and the same will be informed to the members in the next meeting. This forum is being used by the recognized representative union to ventilate the problems of the workmen.

HRD IN SCCL: -

SCCL tries to motivate its employees by various HRD techniques. It takes great pains and includes in huge costs by constantly giving training and motivational programs. IUTR into some cases sand employees to for off places for training with a penchant of using their renowned services. The total number of employees of all categories is given bellow in following table.

55

S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Category Top Executives Executives Supervisory Staff Secretarial Staff Technical Staff Skilled (Daily Rated) Semi Rated) Skilled (Daily

No of Employees 6 2440 3853 2527 9633 20562 5847 19772 21530 101 Total 86271

Unskilled ( Daily Rated) Unskilled (Piece Rated) Apprentices

MEDICAL AND HEALTH FACILITIES: -

A complete, comprehensive and holistic medical and health services are provided to all employees.

UNDER GROUND MINES: -

56

(1) To reduce the risk at potentially dangerous coal face. SDLs, LHDs and Continuous minor are being introduced to replaces manual loading thus reducing the concentration of workmen at the active coalfaces. (2) Adopt roof bolting in all the working in large scale for support of working including in the area of freshly exposed roof (3) Introduced Man-riding systems in eight for travelling, thus reducing the tendency of workmen for seer riding. (4) Establish traveling roadways with shortest possible route airways with good lighting arrangements. (5) Side bolting in the mines where the tendency for the falls in more. OPEN CAST MINES: -

(1) Establish two ways haul roads to prevent accidents of dumpier. (2) Establish haul roads with mild gradient of around 1 in 16. (3) Implementation of traffic rules. (4) As far as possible, establish wider benched for smooth and safe operation of HEMM in excavation areas. (5) Intensive and practical training of workers of off-loading for compliance of safety rules and regulations as per statute. (6) Adequate provision in the contract of off-loading for compliance of safety rules and regulations as per statute.

WELFARE MEASURES:

SCCL has been taking all possible measures to provide welfare amenities to its employees. Despite being in financial crunch it never neglected the welfare of its employees, a majority constitutes of workers have been provided with good welfare schemes who otherwise may not have
57

them in Government Sector. The SCCL has been implementing mines act 1952 and mines Rules 1955 and subsequent amendments to them. SCCL runs for its workers Rest Shelters, Canteens, appointment of Welfare Officers, Drinking Water facility etc., It also tries to educate its illiterate workforce by using literate workers and officials. It also runs Credit Societies, Community Halls, Clubs etc.,

ORGANIZATION HIERARCHY:

Chairman cum Managing Director who is drawn from senior I.A.S. officer of State Government heads the Singareni Collieries Company Limited at Corporation level. Directors and General Manager assist him. The organizational hierarchy at area level too headed by General Manager. The Organization Chart is given in the following page. It has been given both at Area level and Corporation level.

BEST MANAGEMENT AWARD:

The SCCL has bagged the State Government’s Labour Ministry “Management Award” for the year 2002 on May Day from Chief Minister of Andhra Pradesh. The C&ND has said this award was possible was because of cohesive work by all employees including officers and supervisors. Their integrity, honesty, hard working nature, Trade Unions wholehearted support helped the SCCL to bag this prestigious award.

ABOUT COMMUNICATION IN SCCL:

BY-MONTHLY MAGAZINE – By monthly magazine SINGARENI SAMACHARAM is being published wherein the information
58

pertaining to the company and various programs conducted by communication cells are being published in this magazine. The meritorious students details also being published to motivate the workmen.

MANA T.V. – Every week on Sunday the Singareni communication being telecasting the interviews, cultural programs conducted at various areas through MANA T.V. from 11.00 AM to 12 NOON. This program is very much popular in families of Singareni.

SINGARENI WEBSITE – It is installed and its site address is scclmines.com. This site contains all officers were given mail address and through this the officers are interacting each other, so that mere interaction is being done.

BY - MONTHLY POSTURES – A poster containing the details of activities of Singareni is being published in the mines of SINGARENI PRABHA and this is being displayed at vulnerable places at mines and departments.

SUPPLY OF CELLS – In order to improve communication, the company has provided cells to the head of the department and mines all executives upto E5 grade. This is besides P&T telephones. These executives were given group Sims, so as to have effective communication.

59

CHAPTER - 4 Analysis and Interpretation

60

1. How do you feel atmosphere around you?

Table 4.1 S.NO A B C Response Friendly Supervisory Both Number of respondents 75 5 20 Percentage 75% 5% 20%

80 70 60 50 40 30 20 10 0 Friendly Supervisory Response Both

From the above chart we know that the 75% of employees were feel that the atmosphere around them is Friendly, 5% of employees were feel supervisory and 20% of employees feel that it was both friendly and supervisory.

2. How do you feel your work?
61

No. of respondents

Table 4.2 S.NO. Response A B C Enthusiastic Compulsive Frustrate No. of Respondents Percentage 60 35 5 60% 35% 5%

70
Number of respondents

60 50 40 30 20 10 0 Enthusiastic Compulsive Frustrate
Response

From the above graph we know that the 60% of the employees were do their work with enthusiastic, 35% of the employee’s feel their work as compulsion, and remaining 5% of employees feel their work as frustrate.

3. To whom you express your problems freely?

Table 4.3
62

S.No A B C D

Response Supervisor Colleague Trade union Officer

No. of Respondents 30 20 20 30

Percentage 30% 20% 20% 30%

Officer

Supervisor

Trade Union

Colleague

From the above graph we know that the 30% of employees were express their problems freely to their supervisor, 20% of employees to their colleague, 20% of employees to their trade union, and 30% of employees to their officers

4. Does

the

management

consult

employees

while

taking

important decisions?

Table 4.4

63

S.No

Response

Number Respondents

of Percentage

A B

Yes No

70 30

70% 30%

30%

70%

From the above graph we know that the 70% of employees feels that their management consults them while taking important decisions and 30% of employees feels that their management didn’t consult them while taking important decisions.

5. Workers participation is important because

Table 4.5 S.No Response No. of Percentage

Respondents A B C Avoid Industrial disputes Develop Effective communication 64 Both 25 25 50 25% 25% 50%

Avoid ID

Both DEC

DEC – Develop Effective Communication ID – Industrial Disputes

From the above data we know that 25% of employees feel that the workers participation is important because to avoid Industrial disputes, 25% of employees feel that to develop effective communication, and 50% of employees feel that it is important for both to avoid industrial disputes and to develop effective communication.

6.

Does a union play any important role in maintaining harmonious industrial relations?

65

Table 4.6 S.No A B Response Yes No Number of Respondents 80 20 Percentage 80% 20%

No

Yes

From the above the graph we know that the 80% of employees were feel that the unions are play an important role in maintaining harmonious relationship and 20% of employees feels that they were not. 7. Do the employees know who will decide their wage pattern?

Table 4.7 S.No Response A B Management Union
66

Number of Respondents Percentage 20 NILL 20% NILL

C

Union & Management

80

80%

NUMBER OF RESPONDENTS

90 80 70 60 50 40 30 20 10 0 Management Union Union&Mngt
RESPONSE

From the above data we know that the 80% of the employees thinks that their management will decide their wage pattern and 20% of employees’ thinks that the union & management were jointly decide their wage pattern.
8.

How and to whom is the employee handbook distributed? Employee handbook is distributed to the officer.

9.

What is the absenteeism rate? Do you consider it is low or high? If high what is the reason? The absenteeism rate is 20 – 25%, it is high. Because of coal fillers due to strain of physical work.

10. Is there a formal orientation for new employees? Are follow-up employee orientations scheduled?
67

Yes mines have a formal orientation i.e., Vocational Training Centers (VTC) are there for new employees. For every 5-yrs reorientation of training will be given to the all existing employees. 11.Does the organisation engage in employee opinion surveys? During the training programs feedback is taken on activities of SCCL. 12.Do you communicate survey results to employees? Based on the information received necessary connections will be taken. 13.Are there opportunities for employee’s professional growth? Director general of mine safety will conducted the various examination and educated workmen will appear for the same. On passing the exam they will be appointed in statutory posts.

68

CHAPTER - 5

CONCLUSION & SUGGESSIONS

CONCLUSION:

 In SCCL management will maintain friendly relationship with employees.
69

 Workers done the work with enthusiastic and compulsive.  Management provides better welfare facilities and conduct cultural activities.  Maximum number of employees joins in the trade union due to their job security only.  Workers don’t know how to use Grievance handling machinery.  Trade union helps to maintain harmonious relationship between employees and employers.  Thus it reduces illegal strikes, wildcat strikes, lockouts etc.  Due to all these reasons SCCL gets more production and productivity for 10 years. These are the reasons for continuous profits for last 10 years.

SUGGESSIONS:

70

 Workers should do the work with interest and not compulsive. So the management should try to motivate the workers to do the work with enthusiastic, interest.  Management should use some motivation techniques to motivate the workers like educational techniques, how to communicate with their superiors etc.  Management should give training to employees how to use machinery.

REMEDIAL MEASURES TAKEN BY COMPANY:

By the end of 1996-97, it has an accumulated loss of Rs. 1219 cores. The management of SCCL retrospect’s and introspected about the grave situation. The factors helped for coming this grave situation was identified and diagnosis to set rights them were adopted. The various factors that are tried to have good Industrial Relations. Selective mines were adopted in Under Ground mines by installing shale-pricing arrangements in the mines and at CHPs to improve the quality of coal dispatches. Fuels supply agreements and joint sampling protocols including bonus/penalty clauses, with major coal consumers are also installed a customer’s satisfaction all to ensure customers satisfaction. In order to stand competitively, and obtain investments to meet growing demand for increased coal supplied and for technological reforms, the company has obtained restructuring package from Government of India in 1999, this includes a 10 years moratorium on payment of interest accrued on government on government loans of Rs. 663 cores and waiver of penal interest accrued and infusion of fresh equity by Government and Government of Andhra Pradesh of Rs. 251 cores and Rs. 268 cores respectively during the IX five plan period.
71

The company on its parts its parts adopts includes retrenchments of surplus staff, inhibiting discipline among employees, maintaining good Industrial Relations, prudent management and fiscal policies, cost cutting measures, reducing unnecessary cost, prepaying height interest loans, and finally increasing its productions and efficacy, But in so way it has compromised into the interest of tits employees, society in large.

QUESTIONNAIRE

Name Department

: :
72

Area Designation Experience Qualification

: : : :

1. How do you feel atmosphere around you? a) Friendly b) supervisory c) both

2. How do you feel your work?
a)

Enthusiastic

b) Compulsive c) Frustrate

3. To whom you express your problems freely?
a)

Your supervisor B) trade union c)Your colleague d)Your officer

4. Does the management consult employees while Taking important Decisions? a) Yes b) No

5. Workers participation is important because a) b) c) to avoid industrial disputes to develop effective communication Both

6. Do you know who will decide your wage pattern? a) Management b) Union C) Union & Management jointly
73

7. How do you feel atmosphere around you? a) Friendly b) Supervisory c) Both 8.

BIBLIOGRAPHY Principles of Management: - Pradeep Kumar Human Resource of management: - L.M. Prasad
74

Human Relation & Organization Behavior: - Dwivedi - Flippo Personal Management: - C.B. Mamoria - S.V. Gankar

Dynamics of Industrial Management - C.B. Mamoria - Satish Mamoria - S.V. Gankar

Web Site: www.scclmines.com

MILE STONES/LANDMARKS IN SCCL:

1871: Discovery of coal. 1889: Commencement of mining Operations. 1948: Introduction of machine mining. 1951: Introduction of incentive scheme.
75

1953: Introduction of electric lamps. 1954: Introduction of frame proof mining machine. 1975: Commencement of open cast mining projects. 1981: Road headers Side Dump Load Haul Dumpers. 1983: Long wall face. 1984: Introduction of first 132/33 KVA Substation. 1986: Introduction of computers and walking dragline in Open cast mines. 1989: Introduction of French blasting Gallery technology. 1994: Introduction of input crushing & conveying Technology in open cast mining. 1998-99: Re-structuring Package. 1998-99: Election for Trade Unions first time in coal History. 1999-00: All time records production of 29.556 Millions tons of coal. 1999-00: Introduction of Hi-Tech Information’s System (Internet). 2002-03: Records Profits of Rs. 400 crores.

Date: To, The Chief General Manager (HRD) KOTHAGUDEM. //Through General Manager, Srirampur Area. / Respected sir
76

Sub: Collection of data/information for project Submitted in partial fulfillment for the award of the Degree of Master of Business Administration of JNTU Ref: 1.CGM (HRD) Lr.No.CRP/HRD/154/621, Dt: 18/02/2009 2. SRP/PER/19-007/888, Dt. 04/03/2009

You are kind enough for permitting me to collect the data/information from your company for project work purpose as a part of my study M.B.A Course. I am here with submitting the data/information collected by me at SRP3&3A Incline/SRP Area for your kind perusal. I request you to kindly accord approval and issue the Certificate of completion of the above project work for enabling me to submit the same to the Geethanjali College of Engineering & Technology. (Affiliated to JNTU), Secunderabad, for which act of kindness I shall be ever grateful to you. Thanking you, Yours faithfully, (E.SWARNA SRI) Geethanjali Technology. College of Engineering &

77