Communication in Public Sector

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CONTENTS

1

Chapter

Topic

Page No

I.

II.

III.

IV.

INTRODUCTION

COMPANY PROFILE

DATA ANALYSIS & INTERPRETATION

1. List of Tables

2. List of Graphs

CONCLUSIONS & SUGGESTIONS

1. Conclusions

2. Suggestions

APPENDIX

1. Questionnaire

2. Bibliography

7 - 39

41 - 59

61 - 68

69 - 72

73 - 75


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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: The second chapter consists of profile of the company

and its history.

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.

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CHAPTER 1

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COMMUNICATION IN INDUSTRY

The importance of communication was not very much highlighted bythe 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-a-days, 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.

Mayers, an executive spends his near about 40% time in communication.

In some cases communication requires up to 60% of managers 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.

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Impact of good communication on production: -

Good communication relations improve the moral of the

employees.

Complete mental revolution. i.e., better understanding towardseach 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.

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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

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Research Design : Descriptive in nature.

Population : Employees of the organization.

Data source : Primary and secondary data.

Primary 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

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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

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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 todays business. The harmonious Communication

maintained by the organization should be studied at each and everyoccasion for the smooth running of the organization. Hence there is a need

to study about the Communication maintained by the organization.

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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 dependsupon the fact that all human efforts are properly co-ordinated and

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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-to-

face 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 ODonnell

(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 asystematic 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.

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(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) It deals with the transmission of facts and feelings both.

(iii) Medias of Communication may be numerous.

(iv) As a business organisation has continuity, the process of

communication is also a continuous process.

(v) The effectiveness of communication largely depends upon the

proper understanding of what is being communicated and what is being

received and then responded.

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 thedirection 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.

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The Elements of Communication process

A communication process involves the following elements:

SenderIdeasEncodingChannelReceivingDecodin

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.

(2) Ideas ---- This is the subject matter of Communication. This might be an

opinion, attitude, feelings, views, orders or suggestions, etc.

(3) Encoding ------ 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.

(4) Channel ------- These symbols are transmitted to the receiver through

certain channel or medium.

(5) Receiver ----- Receiver is the person to whom message is meant for.

(6) Decoding ----- Receiver converts the symbols received from the sender to

give him the meaning of the message.

(7)Feedback----- Feedback is the process of ensuring that the receiver has

received the message and understood in the same sense as sender meant it .

Different types of communications:-

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The following charts reflect upon the important types of communications

in industry:

Communication

|

-------------------------------------------------------------------------------

| | |

According to Organisational | According to Expression

Structure | |

| | |

---------------------------- | ------------------------------

| | | | |

Formal Informal | Oral Written

---------------------------------------------------------------------

| | |

Downward Upward Horizontal

Communications Communications 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 channelsofficially 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.

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(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 managean 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, upwardcommunication 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 writtenalso.

(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

occasions for oral cross communication. They range from the informalmeetings of the company and lunch hour spent together.

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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

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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 theflow 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 linesuperior. 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

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The formal communication or communication through channels of

command has the following advantages:-

(1) 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 oversubordinates and fixation of responsibility in respect of activities to be

carried on by a person in the organisation.

(2) 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.

(3) Other advantages --- Formal communication offers certain otheradvantages 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.

Demerits of Formal Communications

Formal communication is not an unmixed blessing. It has thefollowing disadvantages too:-

(1)Overload to Work In modernbusiness 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.

(2)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.

(3)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.

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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 superiors 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 actionbut 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 quicklyto 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.

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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 andwritten 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.

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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, itbecomes 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.

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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 fromthe persons 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 somecommonly used ones in communication in different ways.

Oral Written

1. Personal instructions.

2. Lecture,conferences, meetings.

3. Interviews.

4. Grapevine rumours.

5. Face-to-face conversation.

6. Telephone, etc.

7. Union channel.

1. Rules and instructions

Handbook

2. Letter circulars and Memos.

3. Bulletine and Notice boards

4. Posters

5. Handbooks and Manuals.

6. Annual Reports.

7. House Magazines.

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8. Union publications.

9. Personal letters and

Suggestions.

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.

(1)Principle of Information -- Commenting on the communications

realism Terry says that first principle of effective communication is toinform 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.

(2)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.

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

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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 wordsshould

be kept in mind by the executive in this respect.

(4)Principle of Consistency --- This principle implies that messages

should not be mutually conflicting; rather they should be in line with theoverall 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.

(5)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 individualcircumstances of each particular case.

(6)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.

(7)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.

(8)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.(9)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 thisregard for the sake of making communication for effective.

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(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 existingpattern 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

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These barriers arise from the linguistic capacity of the parties

involved. The following are some common forms of semantic barriers:

(i) 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.

(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.

(ii) 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.

(iii)Specialists 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.

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:

(i) Premature Evaluation Regers and Roethlisberger in 1952 firstpointed 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.

(ii) 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.

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(iii) 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.

(iv) 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.

(v)Distrust of Communicator It arises out of ill-consideredjudgements 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.

(vi) 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 ordeliberately to embarrass.

C. ORGANISATIONAL BARRIERS:

(i) Organisational Policy The general organisational policyregarding 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 subject-

matter to be communicated and also the channel through which these are to

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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 superior-

subordinate capacity in the formal organisation structure also blocks theflow 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.(iv) 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

D. PERSONAL BARRIERES:

Personalbarriers 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:-

(i) Attitude of Superiors The attitudes of superiors towards

communication in general or in any particular direction affect the flow ofmessages 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.

(ii) 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.

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(iii) 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.

(iv) Lack of Confidence in Subordinates Superiors generallyperceive, 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.

(v)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.

(vi) Lack of Time Superiors feel, whether correct or otherwise, that

they are overburdened with the work and they have little time to talk totheir subordinates.

(vii) 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.

2. Barriers in subordinates

Two factors are more important in the case of subordinates and

these are responsible for blocking communication in upward direction.

(i)Unwillingness 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.

(ii) Lack of Incentive Sometimes lack of incentive also obstructs

the flow of information. It happens specially in case of upward

communication.

A GOOD COMMUNICATION SYSTEM

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A good system of communication should possess certain

essential characteristics which are explained below:

(i)Two-way 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 thereceivers 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.

(ii) 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.(iii) 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.

(iv) 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.

(v) 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 thesense that communication becomes one-sided affair only. Mutual trust,

belief and reliance should be the goals of any communication system.

(vi) 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.

(vii) Reliance on Feedback feedback refers to transmission ofinformation concering the effect of any act of communication. For example,

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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.

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 themanagement and the organisation.

The importance of communication in management can be judged

from the following:

(1) 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 andsideways, 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.

(2) 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

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

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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 organizations existence-from birth of the organisation on

through its continuing life, when communication stops, organized activity

ceases to exist.

(3) 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.

(4) Increases Managerial Efficiency Communication is essentialfor 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.

(5) Promotion of Co-operation and Industrial Peace More,

better and cheaper production is the aim of all prudent managements. Itmay 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.

(6) Establishment of Effective Leadership Communication is the

basis of direction and leadership. It is an influence process. By developingthe 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.

(7) 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

facts. Proper and timely communication between the interested parties

reduce the points of friction and minimize those that inevitably arises.

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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 ofcommunication 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:

(1) 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.

(2) 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 co-

operation can be obtained through an efficient system of communication

only.

(3) 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.

(4) Emphasis of Human Relations in Industry The growing

importance of human relations in industry and the desire of managementmaintain 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.

(5) 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.

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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 ofenterprises and establishing harmonious industrial relations.

It is a device for developing social education for the purpose ofpromoting latent human resources.

It is a means for attaining industrial peace and harmony, which leadto higher productivity and increase production.

It may be viewed as humanitarian giving the worker an acceptablestatus within the working community and the sense of purpose in his

activity.

It is an ideological point of view to develop self-management inindustry.

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:

It involves a higher degree of sharing of views of the members and

giving them an opportunity to express their feelings.

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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.

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CHAPTER - 3

COMPANY PROFILE

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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 coalproduction.

Coal India Limited (CIL)

Singareni Collieries Company Limited (SCCL)

Naively Lignite Corporation Limited (NLCL)

Indian Iron and Steel Company (IISCO)

Tata Iron and Steel Company (TISCO)

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COAL INDIA LIMITED (CIL):

CIL having head quarters at Calcutta is the holding company withseven 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.

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

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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: -

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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 thecentral 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

And srirampur

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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 SCCLs 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 Percentage to the total output

Traditional underground mining 38%

Open cast mining 47%

Long wall technology 12%

Blasting gallery technology 3%

HONORS:

The Company bagged 1st prize for Design and concept in the Mineral

Sector at the 4th

International Trade Fair on Mineral and Metallurgyconducted 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. SCCLs

Herculean efforts in this sphere that have been recognized by it being

awarded the prestigious Golden Peacock Environment Management

Award by the world Environment Foundation in June 2005.

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BUDGETARY SUPPORT AND ADMINISTERD PRICING:

The SCCL was receiving budgetary support from both Government ofIndia 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 1989-93.

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.

Selective mines were adopted in Under Ground mines by installing

shale-pricing arrangements in the mines and at CHPs to improve the quality

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of coal dispatches. Fuels supply agreements and joint sampling protocols

including bonus/penalty clauses, with major coal consumers are also

installed a customers 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 hascompromised into the interest of tits employees, society in large.

Success story of the

Singareni collieries company Ltd

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.

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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.

Steps taken to go around: -

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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 othercountries, 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 monthssituation 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 basing on

production, productivity, and attendance.

Special welfare awareness programs (SWAP) were taken.

Corporate hospital referrals increased.

Counseling, taking disciplinary actions controlled unauthorized

absenteeism.

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Salaries giving through banks.

Pre-1997 Post-1997 Gain

Coal production 28.73million tones 33.24 16%

OMS* 0.98 1.51 54%

Manpower 114486 97053 -15%

No. of strikes 310 35 -83%

Turnover 2114 crores 3689 crores 75%

Earnings per Man

shifts(in Rs)

245.66/- 679.86/- 97%

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

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 togive and undertaking that they would discourage illegal strikes, maintain

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industrial hormony and strive to improve production and productivity.

Voters: -

All the workmen covered under NCWA (National Coal WageAgreements) 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

conduct a fresh election.

In the event of forfeiture of Representative status, that union shall betreated at par with other registered trade unions, at the Area level, and the

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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 ofrepresentatives 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:

From the workmen side:

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Designation Number of members

Filler 3

Short farer / Mining sardar 1

E &M / Haulage operator / Pump operator 1

Coal cutters 3

Tramers 1

Trimmer man / Line man 1

Others 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:

Output / Man shift (OMS).

Filling OMS.

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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 ofreportable 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.

9) Circulars:

The circulars issued by corporate office, GM office will be informed to

the members will be informed to the members.

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10) Thrust in Areas:

The thrust areas of the management such as publicity, propaganda,

reduction, of absenteeism, disciplinary action against chronic absentees

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.

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S.No. Category No of Employees

1. Top Executives 6

2. Executives 2440

3. Supervisory Staff 3853

4. Secretarial Staff 2527

5. Technical Staff 9633

6. Skilled (Daily Rated) 20562

7. Semi Skilled (Daily

Rated)

5847

8. Unskilled ( Daily Rated) 19772

9. Unskilled (Piece Rated) 21530

10. Apprentices 101

Total 86271

MEDICAL AND HEALTH FACILITIES: -

A complete, comprehensive and holistic medical and health services

are provided to all employees.

UNDER GROUND MINES: -

(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 ofworking including in the area of freshly exposed roof

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(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 neverneglected the welfare of its employees, a majority constitutes of workers

have been provided with good welfare schemes who otherwise may not have

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 workersand officials. It also runs Credit Societies, Community Halls, Clubs etc.,

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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:

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Communication in Public Sector