MINE

MANAGERS
MANAGEMENT
MANUAL

Anup Krishna Gupta

Former Director(Personnel),
Bharat Coking Coal Limited.

INTRODUCTION
COAL is the key energy source for industrial growth in our
country. It is the fossil fuel resource which is abundantly available in
the country. The country stands at fourth position in the world so far
as the identified reserves of coal are concerned. Coal occurrence is
mainly distributed along river valleys - Damodar - Sone, Mahanadi,
Koel, Pench-Kanhan, Wardha-Godavari etc. There are forty four major
coalfields located in the Peninsular India.
The coal mining industry has passed through various phases
during the last two centuries. It has seen dark and bright days, and
there has been ups and downs, yet the industry continues to maintain
an important position in the industrial scenario of India.
Coal mining in the early days meant generally more hole more
coal. Later when gradually companies were formed and managing
companies came into the scene, some of the establishments and houses
considered systematic approach for extraction of coal, yet earning quick
returns were their main objective. Some of the private owners made
huge money by depriving its labour, indiscriminate mining even
ignoring the safety aspects, leading to dangerous mining condition for
life and property.
After 200 years of coal mining under private era, Government
took over coking coal and non-coking coal mines in two phases in the
early seventies. Initially coal at any cost was the philosophy but the
situation could not continue for long.
Huge manpower, heavy
absenteeism, low productivity, revised wages, very quickly poised a
severe threat to the coal industry. With budgetary support from
Government almost vanishing, expansion and modernisation of mines
became difficult. The obvious choice left was to mobilise internal
resources. This was not easy to generate such huge amounts from
internal sources making it obligatory to go for price hike from time to
time.
This is possible so long there is none in competition but the
monopoly of nationalised coal industry is in cross roads now due to
changing economic policy of the country including opening of global
market. More competition is going to be created with the decision of
the Cabinet Committee on Economic Affairs (CCEA) to allow coal
consuming industries to open captive coal mines and to allow the
private sector to set up coal washeries.
2

The reduction of import duty on coking and non-coking coal from

85% to 35% and later 3% for coking coal and 10% for non-coking coal,
has triggered the alarm bell. Nationalised coal sector is now to suffer a
major setback. The apprehension is that substantial duty cut will help
foreign countries to sell their coal, in the country, at a cheaper rate.
Internal market may be capsized to certain extent and countrys
coal production may have to be slashed down to great extent. Close on
the heels of
the prices of coal declining in the international market,
the reduction in import duty would make the imported coal very
attractive to the bulk coal consumers who are located at the coastal
area.
With Indonesia and Australian Companies already having
outpriced, nationalised coal sector faces the grim prospect of severe
competition with the country.
Under this circumstances, particularly with little or no budgetary
support, it is difficult to invest more to have ventures in capturing
internal as well as market abroad.
Added to this, the net outstanding from State Electricity Board
(SEBs) were on the rise and net budgetary support on the decline.
The coal companies will have to perform huge task before thinking for
modernisation.
The only point for consolation is that the coal companies have
paid back the Government considerable amount over the years.
It is, therefore, important to
pay attention for proper
development of coal resources with appropriate utilisation. It cannot be
said that this is being developed to the maximum extent possible. It is
necessary from the point of view of self sufficiency and for generating
more employment potential, adequate attention will be required so that
a stable industrial bas is laid for economic growth of the nation.
The validity and long term future of the coal industry, largely,
depend on the forecasting of quality-wise future coal demand and
realistic coal price. This would help in deciding future course of action,
essential for decision making with regard to investment for future
growth. The long term prospect of coal demand largely depend on
technique and raw materials to be adopted for power generation in the
power sector and other key industries. Consumption of lower grade coal
3

in power sector and use of appropriate grade of coal in other industries

will help in deciding future coal demand.
In absence of skillful forecasting of coal demand there may be
occasion when on one side there will be heavy stock in the pithead and
on the other side consumers will be short of appropriate coal supply.
Coal being the basic raw material for power generation or a
source of heat or as a chemical raw material, this should be available
with required quality, in adequate quantity with continuity in supply.
The actual happening, however, tells a different story and has
been casting a long shadow on such possibilities with the increasing
wages trend, high cost of stores, machineries, equipment, petrol, oil,
and lubricant are not allowing the industry to establish its position. In
addition to above indifferent power supply and low productivity will
continuously push up the cost of production. Because of all these
factors, many collieries are becoming uneconomical. It is because of the
low productivity, certain collieries have been failing to give minimum
return on the capital so far invested.
In the present context, in which the coal industry has been
operating, the main scope for improvement will largely depend on
higher coal production with the same manpower and without large
increase in stores, and other costs. Productivity increase should be one
of the objectives to overcome the situation.
Productivity which means ratio between input and output can be
interpreted in different ways by different people. To some people, it is
output per manshift (OMS). To the production people, it is actual
return from plants, machineries or productivity of machineries and to
Economists it is the return of the investment made. Output per
manshift does not suggest viability of a mining unit. The break-even
OMS varies from mine to mine depending upon the capital invested and
stores consumed. Economic viability is the most practical aspect of the
industry.
Most of the UG mines are now worked in the conventional
method and by manual systems. Such mines can achieve higher
production with the same manpower through planned layouts,
inventions, elimination of wasteful expenditure, reduction of cost by
introducing labour saving devices, rationalisation of labour force and
utilisation of machines available. Strict manpower deployment will be a
must in the mines where higher mechanisation has been introduced.
4

For success of mechanisation, properly trained workers and

maintenance men will be essential. Training Department has to
therefore plan to bring out specialist workforce for these mines
according to the need.
In most of the mine production costs are more or less fixed cost.
Under such circumstances, the most important factor is to achieve
higher production with the same facilities available in the mine.
Breakdown arising out of poor track maintenance, absence of
proper gradient and insufficient supply of tubs to the work face pose
major problems in the mines. It is worthwhile to concentrate on safe
and proper working face, adequate supply of tubs, proper layout
maintenance and organisation of coal faces.
For mechanised mines, to prove a success a few factors should
be ideal including suitable machine, better geological condition, trained
manpower, spare parts, and congenial working environment. When all
these factors are favourable, success in the mechanised mines is
ensured. While the functioning of each machinery should be kept under
constant vigil, maintenance has to be planned and systematic. Timely
attending breakdowns and availability of spares of right type and right
quality are important in mechanised mines.
In the coalfield there are frequent interruptions in power supply.
As a result, machine, worth crores has the utilisation factors not more
than in average 40%. Major breakthrough is required from all these
constraints to achieve success in the mechanised mines.
Another vital aspect in the mine is Safety. With the exhaustion of
easier deposit, underground mine work becoming complicated for
working at greater depth, coupled with the problems of gas, dust,
ventilation, geological condition, enforcement of strictest
safety
measures is essential.
In the days of complexity, cordial relation in the industry is
essentially required. While it may be a fact that there are multiple
employees union in the mines of coal industry, with various ideology
and approach, yet it is necessary to meet such challanges in
enlightened and moderate ways.
It is clear now that increased pay packets has failed to motivate
the workers to increase productivity. The management has to think
5

very sincerely the ways and means in getting workers and supervisors
more involved in their work to raise the productivity.
To-day we have reached a stage when most operations are
subject to some form of mechanisation. All classes of coal can be
extracted and loaded by proved machines of a type to suit most of the
varied conditions.
While every effort to keep abreast of all these latest technical
developments has to be made, it is necessary to use the new techniques
that have been developed as aids to more effective management. With
this in mind, the methods of training and supervision should be kept
constantly under review and to take prompt action to improve them as
and when need arise.
Whatever has been mentioned, it is clear that the important and
vital need of the coal company today is better management at all levels.
At the directing level, executing level and at the working face level, the
coal mining industry need more enlightened management team and
leadership. Specialisation in the field like planning, ventilation, safety,
engineering, Human Resource Development would be necessary to
achieve success.

2
MINE MANAGEMENT
COAL is still by far the most important primary source of energy
in our country. The future demand of coal has been estimated to the
region of 290 MT in the year 1998 and 340 MT in the year 2000 AD.
Energy demand in excess of this would be met up by other basic fuel
such as oil, uranium, natural gas. Coal is to meet ever-increasing
demand successfully and as such it is imperative that the mining
industry be managed efficiently.
The industry can only claim to be successful, however, when it
produces sufficient coal of proper grades and sizes to meet the need of
all its customers.
This coal must be produced in safe working
conditions, by safe working methods with efficiency. The cost of
production will be such that when fair wages and salaries are paid to
all employees and all other costs are met, the price of coal does not
exceed the selling price so fixed.
The well being of all the members attached to the indstry is very
much tied with the success of coal industry and the success of this
industry very much depends on the success of its Managerial group the Managers of Mine. To have a successful industry, the efforts of
everyone employed in the coal mining industry should be directed
towards extending co-operation and assistance as well as ensuring that
their Colliery Managers are successful.
The Mine Managers are the King Pin of the Coal Industry.
It is a very responsible position and therefore, a Colliery Manager
has to equip himself in such manner that he can handle all important
functions satisfactorily.
The major functions are :

A realistic forecast of output-Short term as well as long term.

Rate of development

To ensure every man is gainfully emplolyed and arriving at his

working place with minimum delay
To fix standard for the use of all materials.

Co-ordination with marketing

deptt. on the size and grade of

product.

To fix a standard for effective industrial relation.

There is no disagreement on the items to be considered in the cost of

production.

Besides above :
(i)
To establish an effectrive communication system.
needed
is the development of a right attitude of
economic production.

What is
mind to

(ii)
To stimulate interest in all the officials at the colliery in the
need
for maximum
efficiency and provide a
means
of
controlling operations.
Managers have always realised their responsibility for production
i.e. to produce the optimum maintainable output at minimum cost,
consistant with a planned rate of development.
This is not only the Mine Managers responsibility but it is his
ambition and his career, as Manager is supposed to aim and striving to
achieve it.
The Colliery Manager is supposed to be engaged in constant
follow-up and implementation of various programmes scheduled as per
activities related to aforesaid fields. As his routine work, daily control
would start with analysis of :

Daily Production Report

Attendance Sheet - OMS

Wage Cost and other allowances - EMS

Saleable coal available

Coal Despatched

Failure of equipments

The control section will supply other information necessary for

control.
8

Meeting with under officials at the end of the shifts, to set

programme for advance action.

As weekly follow up measures, towards the end of each week,

Manager consults with the Under Manager and Cost Assistants on any
probable change in manning or output in the following week. The
temporary adjustments to the standards are sometimes required due to
changed conditions
At the beginning of each week, control section would provide
statements which will allow the Manager to review the previous weeks
result as follows :(a)

The output results statements shows for each section and

(i)

The calculated saleable output

(ii)

The operational forecast output

(iii)

The actual saleable output

)b)

The Wage Cost Summary and reasons for variances.

(c)

The estimated profitability statement will show the estimated

actual result of the previous week against the forecast result.

(d)

The cost control statement will cover items over which there is
direct control at the colliery such as output, allowances,
overtime, general stores - explosives cost. The statement will also
show the budgeted cost for the week.

(e)

The Manager and Under Manager would compare progress of

development.

(f)

Manager will obtain a statement from Store/Material Section

about materials used and salvaged during the week.

The detailed information provided can be used by Managers in

various ways. Graphs in the Managers office prepared and kept
uptodate by Control Section which would be used to show the trend of
production, manpower in the book and deployment, attendance,
productivity, cost per tonne and various break up.

The Manager and Under officials would maintain a continuity of

getting information for selecting their course of action to meet the
objectives of their mine.
All such activities, the Manager will perform by setting some
methods.
It is said that the external vigilance is one of the many prices of
good management.
I keep six honest serving men (they taught me all I know). Their
names are What and Why and When and How and Where and Who.
It is upto Management to see that these honest serving men give
him the regular and reliable information he requires. A Manager will do
well to ask himself the following questions in relation to his own
management team :
(a)

Is my management team pulling together, or is it hampered by

internal friction and jealousy ?

(b)

Are my keymen overloaded ?

(c)

Can I and my immediate officials

responsibility ?

(d)

Does normal routine succeed in my Pit, or is there a continuous

state of emergency ?

(e)

Is the mine well planned so as to ensure continuity of production

and to reduce time and energy of those working in it ?

(f)

Are there excessive material handling costs ?

(g)

Is there waste of power and is power obtained in the most

economical way ?

successfully delegate

(h) What is the cause of machine-idle time ? Is it bad planning, poor

maintenance ?
(i)
(j)

Are machines used to capacity; if not, why not ?

Is there waste of time and if so, what are the causes ? Is it due to
shortage of materials ? Unsuitability of equipment, mechanical
10

breakdown, bottlenecks, waiting between one job and the next ?

(k)

Is labour deployed timely and efficiently or are men kept waiting

to see a variety of officers and supervisors ?

(l)

Is absenteeism high ? Is it due to sickness, accidents, or

indiscipline ? Is there bad time keeping ?

(m)

Is there proper manpower support, is it poor placement, poor

selection, poor working condition or discontent ?

There may be many more such insearch which may play as

guiding factor for managing a mine well.
The tasks are wide and varied. A Manager can afford to do all
these tasks successfully through various small groups charged with
spirit and enthusiasm. A suitable organisation given to a Manager to
administer the mine activities will be much important, as much so to
develop team to achieve common objectives and goals of mines as well
as industry.
Before the organisation of mines, formation of groups and
strength to handle all tasks are discussed, various important tasks in
brief may be enumerated where involvement and participation of man
and management is the central theme.

***

11

3
PRODUCTION PLANNING AND MANAGEMENT

COAL is a wasting asset.

The management of mining industry is

full of reasons, such as, unnatural working condition, hazardous
localities of the operational units in far off areas without adequate civil
amenities. This is an industry where the higher investment has
diminishing returns.
Earlier, since mining began, there has been a natural desire to
exploit the most attractive and profitable reserves of coal. This policy
had always been followed by Mine owners, who like all others, engaged
in commercial undertakings, had been in business to make a profit.
After nationalisation, however, there has been limitation.
Now considerable care is necessary in assessing whether an area
of coal is worth working or not. The cost of production, economy,
consumers demand at the national and Company level, now need to be
assessed.
In some cases, unattractive areas of coal may have to be bypassed, or even abandoned, in the interest of short term profitability,
with the anticipation that future improvement in mining technique and
equipment would permit such areas of coal to be worked profitably at a
later date.
Production planning for coal industry is worked out considering
the market demand.
Depending upon the location of various
consumers and type of demands, coalfields are identified.
The main factors taken into consideration for production
planning are:
(a)
(b)
(c)

Sectorwise coal demand

Quality requirement
Production potential of different coalfields in the country.

By the close working between the method study, mechanisation

and planning branches in conjunction with colliery and group
management, plans can be produced which create incentive to make
real gains in increasing productive capacity. Regular review of planning
is essential in progress.
12

The production plan is not intended in any way to provide an

estimate of what will be done, the main purpose is to get joint
agreement of the work that should be done to improve colliery results
and to make proper plans to achieve this end.

Production Planning
It is generally accepted that there is a need for higher
productivity in the coal mines and there is need for increased efficiency.
To assist colliery Management to achieve these aims, new developments
in mechanisation and workings have been introduced and greater
emphasis has been placed on production and cost controls, planned
maintenance, method study and similar technique.
In addition to the technical and human factors involved, there
are two essential parts of any system which is to produce coal
efficiently. The first is production plan and second is a good means of
controlling the day to day operations. When the national target
production is decided, based on best forecast of demands, some
decision is taken as to how to split up the production between
divisions. Each Company will split up its allocation between Areas and
the Areas to collieries. At colliery level, discussions have to be made as
to the faces to be worked and methods of working to be used keeping in
view the cost.
Many a times, Managers repeatedly complain about target output
set at Area level for their particular colliery.
When these are
unattainable and very frequent enquiries are made as to why they were
not achieved, it creates an atmosphere for frustration which is
detrimental to the effort and concentration required by the Manager to
operate efficiently. It is, however, important to get the budget fixed at
the colliery. Appropriate area level officers may be invited in such
important discussions.
The Managers in conjunction with other
officials and making full use of service Department would initiate a
thorough analysis and investigation into the available resources and all
operations involved in production at his colliery. There would be a full
discussion on the findings of analysis and investigations and a realistic
forecast of output rate of development would be decided. The Area
officials and specialists are required to participate while deciding
colliery Production Programme more because of identifying methods
and systems to be adopted, keeping in view mine capacity utilisation
and means, measures to increase the system capacity of the mine.
13

The Production Planning must reflect the attainable performance

of the Pit with available resources of men, machines and materials and
the prevailing condition of working places. This plan has to be worked
from method study investigation and should show output potential,
manpower and material requirements, with manpower deployment as
effectively as possible and Plant & Machinery operating at optimum
efficiency.
Production Planning of a mine is based on the following main
consideration :

Potentiality - Area available for exploitation, coal seams and

associated geological information, mineable reserves and coal
quality.

Capacity - Capacity of each system alongwith the total system

capacity. This includes winding as well as evacuation.

Infrastructure - Power, Land etc. Their availability.

Resource - Men, material and Fund.

Despatch - Both consumers as well as mode of despatch.

Short term as well as long term plans are drawn to improve

production and productivity mainly depending on the potentiality. In
case of short term plans, production improvement is envisaged with
minor modification to utilise existing capacity involving marginal
investment. Gestation period in this case is less and results are
obtained quickly.
In case potentiality of the mine is quite considerable, long term
plan is generally envisaged to enhance production. This includes major
reconstruction and development works having a long gestation period.
The capital requirement is also higher.
In both short term and long term plan, a schedule of activity is
drawn. After finalisation of the scheme and implementation is followed
as per schedule. Managers are sometimes satisfied with the system in
operation and are reluctant many a time to change or modify it anyway.
Due to reluctance to any change, Managers are required to have open
discussion with seniors so that new points are well accepted after
thoroughly being convinced. Remembering his own reluctance to
accept idea, the Managers task is to plan how to overcome any
14

reluctance on the part of Under Managers and other under officials. It

is foolish to expect success by merely thrusting a batch of forms into
each under officials hands and insisting that the appropriate
information should be entered thereon. Success depends on team
effort and each member of the team should not only know how he must
play his part, but why his contribution is important.
A Manager has therefore to decide with officials :
(a)
(b)
(c)
(d)
(e)

method
men
machine
marketing
money - required to achieve production effectively
keeping in view profitability.

An investigation Group of the mine approach on the following

line:

State the objective - In most cases, this is to produce and sell

certain quantity of various quality coal economically.

To establish the factors which can be attained e.g., choice of

machine, type of method to be adopted for steady output.

Detailed planning on saleable output, face manpower, OMS, Face

profit, has to be worked out.

The next stage is to get reasonable estimate of the costs which

will be incurred and proceeds which should result so that the profit or
break-even points arising from the various alternatives can be
calculated. However, before adopting any production plans, it is
necessary to have cost point estimated face-wise.
The capital cost of equipping a face to be estimated by seperating
them into three categories.
(a)

Costs completely dependent on length of the face; these

include such items as conveyor, belting, props etc.

(b)

Cost partially dependent on face length.

(c)

Costs that completely independent of the length of the face.

15

These include the cost of the actual cost getting machine such as
Shearer.
To obtain the depreciation charges each of these three costs is
divided by the useful life of the item of equipment and the interest
charge added on. To the depreciation and interest charges have to be
added with estimate of the costs for wages, explosive, maintenance etc.
It is also necessary to estimate the proceeds for each of the alternative
methods on each of the faces. To do this, an estimate has to be made
of the size, qualities of coal produced. When the total face costs for a
particular method on a particular face are subtracted from the
proceeds for the method on the face, the figure so obtained will be Face
Profit.
The output plan is a reconciliation of opportunities for output
and commitment for production imposed by the physical limitations at
the colliery. Opportunities for output will be restricted in total only by
the limit of capacity of plant and equipments. Therefore, the prerequisites of the plan is an accurate appraisal of the capabilities and
limitations of every machine from coal face, through the haulage and
the shafts to the depot. Each source of output is evaluated in terms of
productivity and financial return and placed in its respective position in
order of merit.

***

16

4
PRODUCTION MANAGEMENT

Productivity

improvement is a major concern and hence

productivity management is an important area. It emphasizes on better
utilisation of resources like, manpower, materials, machines, money,
energy and so on. Productivity of a mine could be improved through
productivity management when current level of productivity is known
to Manager.
A careful examination of various factors influencing mines
activities, production performances is the first step. Later productivity
enhancement level has to be worked out and aimed.
Technological improvement, effective use of all available
resources, maintenance of machineries, reducing inventory and costs
are the means to promote productivity.
Productivity as a ratio of output/input is over simplification of
complex concept. Productivity is a measure of effect. It aims at the
maximisation of output by planned and most economic use of input
and minimisation of waste. In the coal industry the basis of
productivity measurement is indicated as :

OMS (Output per manshift)

EMS (Earning per manshift
Cost per tonne
Overburden cost per Cu.M.
Net sale value per tonne
Profit per tonne
Cost reduction over the period

Inputs comprises of a number of diverse factor which have no

common physical unit. Each unit is measured through separate
yardstick.
Factors
: Unit of measurement
Labour service

: Man Hours, Manshifts,

Money value, Mandays
: Kilowatt, Hour

Power service
Maintenance &
Repair shop

: Manhour, Mandays
17

Productivity signifies a combination of efficiency and effectiveness

of system. Productivity Management is, therefore, very important task.
A detail study of the organisation is needed as a first step. Productivity
line could be improved when the current level is known.
Productivity management forms an integral part of management
functions. However, productivity improvement efforts need support of
all including employees in the grass root. Concerted effort is needed to
promote favourable attitudes by encouraging proper ethics developing
positive values for productive work, culture and contributing conducive
result oriented environment.
For improving productivity, four main aspects are:

Development of associated technology

Maximum use of existing methods

Efficient method of control

More concentration of workings

Besides above, capacity utilisation of resources, machineries and

tools are means to augment productivity. Use of industrial Engineering
Techniques to restrict wastage and improvement in material handling,
layout incentive plan will help in increasing productivity.
Different people may have different perception to productivity. To
an industrialist, it may mean more profit, to a Manager it is better
utilisation of resources, to a labour, it may mean better wages, to a
Sales Manager, it is higher sale through better processing and so on.
These are imposed and dependent on factors from outside.
Total effectiveness of a Manager will, however, not only judge in
terms of production and marketing performance, but also on the
quality of decision taken at various level and at various occasions.
Every person in the industry has to realise that the day is rapidly
dawning when undertakings must make a contribution to the overall
economy of the country. This is a situation new to many unpalatable
though it may be, we now have to face the hard facts that losses will be
studied very critically in the light of improvement possible in methods
of work and methods of management. Increasing attention will be
necessary to the overall picture of costs against proceeds and proceeds
against need of market and financial advantage in grade of coal.
18

Productivity will not be only yardstick, but it will be necessary for the
colliery Manager to obtain assistance and experience to resolve best
form
of
mechanisation, economical use and the best way of achieving economy
in store costs, wage cost, so that production cost is minimum and
proceeds are at maximum.

***

19

5
MANAGEMENT OF MAINTENANCE
1.

In the coal mining industry, which is by nature, a destructive one,

bad condition, roof falls, operational use may cause equipment
failure, in addition to normal wear and tear on mechanical and
electrical apparatus.

2.

With the new developments of mechanisation, greater emphasis is

required for planned maintenance.

3.

It is apparent the organisation is required at the colliery in order

that management could cope with the administration and efficient
running of maintenance.

4.

A basic maintenance plan at a colliery should indicate trend and

faults, so that management may take positive remedial action.

Maintenance of Equipments

IT

is now realised that for the coal industry to make the best
possible use of the resources available in providing optimum
production at minimum cost, effective control system are essential.
With the advent of these control systems, the task of operating a mine
has become increasingly complex and the colliery Manager is presented
with a set of problems with which he must cope in order to obtain the
full advantage of mechanised mining. This demands a change in
attitude and outlook on the part of colliery Management Team. Indeed,
colliery Manager finds himself in a very different situation than his
counter-part yesterday, now a mine Manager has to operate from a
network of function and relationship more akin to human than mining
engineering.
While human relation, manpower planning, manpower
deployment are of paramount importance, another problem which
colliery Manager faces today is to maintain equipments in a high state
of operating efficiency with change in technology and increased
mechanisation. The colliery Managers dependence on the machineries
becomes greater and with the current shortage and cost of skilled
workmen, the problem becomes a real challenge. This challenge can be
met by the application of a systematic organisation of a maintenance
and a formalised control of colliery engineering services. The
20

achievements of these controls and the part they play in the furthering
of production have been proved. There is, however, common agreement
that the main principle of planned maintenance is that by regular and
systematic inspection, servicing and overhauling, it is possible to
forestall breakdown and ensure continued efficient operation. This is
not a new principle but with the increase in the complexity of colliery
engineering the additional administrative burden on the colliery
Managers and Engineers, a systematic and new approach is required at
the colliery in order the Management could cope with the
administration and efficient reviewing of maintenance.
A basic maintenance Plan in a colliery should indicate trends and
faults, so that Management can take positive remedial steps. Such
features as maintenance and result, breakdown records, utilisation of
engineering employees outstanding workload, should be known not
only by the Engineers but also by the colliery Manager, if the later is
truly in control of his jobs.
Planned maintenance should include therefore

Control of all non-schedule work.

Control and deployment
engineering
employees.

of

all

skilled

and

semi-skilled

Comprehensive breakdown reporting procedures.

No colliery Manager can hope to cope with the detail of

administrative Planned maintenance. It is the full time job of
Engineering Assistant under Colliery Engineer. Depending on the size
of the colliery, it is essential that the maintenance Assistant or
Controller should be a man with adequate experience as well as
efficient.
Besides training, the Maintenance
persistence, persuasion and orderly mind.

Assistant

should

have

The Maintenance Assistant or Controller may co-ordinate

between production and Engineering activities. Joint meetings may be
conducted by Manager each week, where previous performances are
discussed, maintenance holdups are resolved, future work planned in
relation to available employees and equipments. The maintenance
Assistant or Controller will consult the Operator and Fitter for the
status and condition of each equipments. Probably no one is so
21

competent to advise on the probable life of a particular pump impeller

as the Fitter who looks after this from standpoint. Therefore, he should
be made a contributor to the Maintenance Plan by being consulted. The
obvious way to secure enthusiastic co-operation from the Engineering
staff is to place the responsibility for building up maintenance scheme
on their shoulders. They then feel that the data is their own and they
have confidence in it.

For planned maintenance, following steps are to be followed:

To ensure that all equipments are kept in correct receiving order

to allow for safe operation.

To determine engineering manpower requirement and to deploy

them to the best economic advantage.

To establish physical
engineering services.

Workshop control.

Up-to-date inventory of all plant & equipment.

Effective follow up system.

Breakdown reporting procedures.

Inspection procedures to control the quality of work.

control

of

engineering

employees,

As maintenance is a vital part of production, too little or too

much maintenance will increase overall production costs. It must be
controlled on an economic basis according to the needs of each item of
plant. However, there must be adequate trained Engineering personnel
to achieve these targets. The planned maintenance procedures to the
outlined must not be accepted as the final word, but must be the
subject of increasing research to meet any change. Most of the problem
relating to control of maintenance and engineering services do not
consist of engineering know-how. They are bound up with human
relationships. Thus, the critical weakness of such control systems are
the resentments, hostilities and motivational reactions which they tend
to evoke.

22

Maintenance Administration
The administration of this co-ordination of maintenance office
will largely depend on planned maintenance control centre.
Planned
Preventive
Maintenance

Engineering Supervision
at planned maintenance
control and recording
centre

Planned remedial
maintenance, Mining
requests Engg.
requirements.

Full Engg. employees

utilisation on allocated
planned work

Break Down
+
Engg. Calls

Completed work

Engg. Inspection
It has been mentioned earlier that efficient engineering control
depends on the extension of the defined field of scheduled maintenance
to include all other engineering work.
With routine inspection various job requests may come.
requests arises from :

Job

Reported defects from inspection, examination and testing under

routine maintenance.
Mining supervision

Installation work
23

However, verbal requests for work to be done, need to be avoided,

as there may be communication gap and it will be difficult for the
Foreman Incharge to plan the work of his men satisfactorily unless he
has a written record of what has to be done. Very rarely training is
given to Foreman Incharge in organising their work and without such
training it is also unfair to expect Foreman to become a competent
organiser.
There is some evidence in the mines today to suggest a need to
hear and speak the truth plainly relating to breakdowns. Apart from
any other points it is quite impossible to assess the progress of the
maintenance plan unless a factual record of breakdown is kept.
Breakdowns include all equipment failures whether involving loss of
output or not.
Colliery Co-operation
It would be of little use to attempt to establish maintenance on a
full basis if no one in the colliery is keen on the idea. If management is
enthusiastic, however, such enthusiasm can and will be conveyed to all
ranks. Enthusiasm, by itself of course, is hardly sufficient. It must be
translated into action. Primarily this action takes the form of cooperation between the production and engineering personnel.
The changes required by these controls may be in conflict with
the traditional methods and beliefs especially at supervisory level. It is
required that supervisors should not only understand the operation of
the controls within the range of their responsibilities but also the way
in which these controls may be used to assist them in this work.

***

24

6
MANPOWER MANAGEMENT

The process of evolution through which the coal mining industry

is passing is one in which the wages content of the total expenditure is

in the order of 50% and the charge of each shift worked increases
annually. Therefore, it is Managements duty to ensure that mens skill
are not misdirected due to lack of proper deployment.
Manpower planning consists of

taking stock of existing manpower resources

working out future manpower needs
identifying what should be done to ensure that future manpower
resources match those needs.

Manpower planning
Best utilisation of available human resources, manpower
distribution and gainful deployment will be important in setting the
efficiency level of a mine. Manpower Planning is an integral part of
action programming and is fundamental to the efficient operation of the
colliery.
Manpower planning is essentially a two stage process. The first is
to identify the number of jobs, and hence men, required to carry out
the work specified in a collierys Action Programme.
The second stage is concerned with identifying the action needed.

mainly training and placement to achieve and maintain the

required levels of manpower with the appropriate skill.

The basic elements of any system of colliery Manpower Planning

and control are:(i)
Establishing
performance.

and

regularly

updating,

standard

job

(ii) Converting the jobs identified in these plans to the number of

men on roll required by skilled categories.

25

(iii) Preparation and maintaining record of actual manpower for

comparison with requirements.
(iv) Ensuring that day-to-day deployment is related directly to the
current standard job plan.
Manpower planning should be conducted in ways suited to the
size and nature of the units and should be
(i) backed by the management at the highest level.
(ii) integrated with other aspects of planning of the organisation.
(iii) based on adequate and uptodate personnel records.
Standard job Plans
A standard job plan is a list of all the jobs specified and implied
by the activities in the Action Program. It should detail the number of
jobs by type at each workplace during each shift. Care must be taken to
ensure that only whole job requiring the whole of a mans time in shift
are listed. Minor jobs requiring less than a man per shift to complete,
should be grouped into convenient whole jobs.
The most convenient way of establishing a standard job plan for a
pit, in the first instance, is by means of a detailed job survey, based on
the work required in the Pits current action programme.
Regular overall re-appraisals of job plans should be taken place
at each Action Programme review. Job plans will also need regular
minor updating within a period probably weekly, depending on the
progress in operation.
Converting jobs to Men Required
The calculation of the number of men required to carry out any
job plans must take into account non-attendance. Allowance should be
made for all the reasons for men being absent on days when the colliery
is working e.g., due to sickness, accident, training, unauthorised
absence, trade union business, individual rest days, holidays. The total
absence percentage is known as the non-attendance percentage. It is
usual to apply the average actual non-attendance percentage for a
preceding period for each category - updated to reflect current and
expected trend of men availability.

26

The application of such non-attendance percentage should be

selective. Not all jobs require to be manned up each day. Some jobs are
of low priority. There are other jobs which because of their specialised
nature have to be carried out even by overtime when regular men are
absent. There are jobs which may be fitted by redeployment from lower
priority jobs.
It is the function of colliery Management to identify the jobs
which

will not be filled when attendance is poor;

will be covered
manpower pool;

will be filled by redeployment from lower priority;

so exceptional that will be covered by overtime workers (to

restrict as far as possible);

will be shared by other men.

by

drawing

trained

personnel

from

For all jobs like these, the number of men required will be the
same as the number of standard jobs.
Thus, the non-attendance percentage will be applicable to those
jobs which must be manned up everyday, and cannot be manned by
the above methods. The calculation of the number of men on books
required to cover the number of essential jobs in each category is as
follows:No. of men required =

No. of essential jobs

---------------------------------------100 - Non Attendance percentage

x 100

The statistics required for this purpose has to be maintained by

Personnel Department of the colliery.
Manpower planning will be both of short term and long term
basis. Considering the production plan-mechanisation programme,
availability of machines and method to be adopted, productivity level
has to be set and keeping in view the cost part, forecast of manpower
requirement jobwise could be made.
27

Manpower Record
It is necessary to compile an inventory of the number of men
available at the colliery by skills.
Uptodate records covering all
workmen supervisors, are essential out of various registers, following
two are essential 1.

Manpower Register - Name, Designation, Grade/

Category, date of birth, training attainment, statutory
qaualification and certificates etc.

2.

Register - In alphabetical order.

cross reference purpose.

This will require for

Once the basic records are established, they must be kept up-to-date.
Comparision between manpower requirement & availability
Having established the detailed job plans and hence manpower
requirements and knowing the number of men by skills currently
available, the next stage will be to match these to ensure that sufficient
men are available. This is done by allocating man to each job in the
standard job plan by district, activity and shift.
Manpower Deployment
The word Manpower Deployment have widely different meaning
to each individual. The term over the course of time used to describe a
system of manpower recording. Deployment can best be defined by
using it in its original military context of setting out troops from column
to line, according to a devised plan of the military campaign.
The Manager in his capacity of commanding officer, deploys his
workmen to the best advantage from the front line right back to the
supporting areas. As each workman comes to the colliery, the Manager
must ensure that 1.
Each man is fully occupied befitting skills, experience and
ability.
2.

He must so direct the operation that the input of labour,

materials and equipments are aimed towards the target
which will provide the most profitable form of return within
the limitations imposed by the physical condition of his
colliery.
28

In devising the system therefore, the following consideration must

be made

Pre warning of attendance

The ability, skills and other relevant information of all workmen

in the form of labour plan should be made available.

The order of priorities of output and development should be

agreed and form the basis of an output plan.

The factor that must be taken into consideration in preparing for

satisfactory manpower deployment chart are :(a)

Rate of absenteeism, in respect of each grade of workmen,

facewise.

(b)

Overtime worked as substitution for absenteeism.

(c)

The cost to the industry of compensation for industrial injuries

if rapidly rising, such accidents are contributed to by
deployment of personnel to jobs without adequate training.

Every development job to be undertaken at the Colliery will be

listed with the number of men to be required for such job.
A manpower deployment statement is presented for every job at
the colliery. This is to be drawn by the team on the basis of the men
required to produce the standard daily output, maintain the rate of
development. The place of work of every man employed on the surface
is to be shown on the plan of the surface layout.
Priority Number may be given for each job e.g. 1a job means, it
must be manned even at the expense of production, job 1b and 1c
must have the Managers/Under Managers permission to take off men
from the job. 2a, 2b means an Overman can use men in emergency:
3a, 3b, 3c means men can be used by Mining Sirdars or Senior Fitters
who must provide reasons for doing so.
Where shall I begin your Highness ........... Begin at the beginning and carry straight on until you
come to the end and then stop - said the King.
29

Like the King in Alice, the plan to begin is at the beginning and
that a simple and yet a fundamental analysis of the meaning and
implications of the expression Manpower Economy is worth
attempting. If it begins with the statement that the economic use of
manpower means that the service of each man according to his
inherent abilities and training should be utilised in such a way to make
the maximum useful contribution to the undertaking can any pointer
be drawn towards improvement ?
The point may be placed in reverse - what are these factors which
lied within our control which operate against the maximum useful
contribution being made.
These factors are not only by means, all physical in nature, some
are organisational, some historical some even psychological. The
principal reason why the maximum contribution is not made by a man
are (a) He may be restricted by time;
(b) He may be restricted by facilities or equipments;
(c) His labour may not be satisfactorily coordinated or controlled
(d) He may be inadequately motivated.
The above factors are rarely independently operative, however,
motivation and time are often linked and co-ordination overlap.
Coal mining activities like military operations can frequently
show startling improvement in results, by the concentration of effort at
one or two points, rather than by a dispersal effort over a wide front. In
particular, depending on the mine condition, concentration of coal
getting operations underground into one section of the pit may offer a
fruitful source of economy in manpower and equipment, leading to
rapid improvement in the overall productivity.
The saving in manpower achieved between the Pit-Bottom and
coal face by this type of concentration will be apparent. There is a
tendency for development work for face replacement to take place at
several points simultaneously.
This leads to an expensive dispersal of conveyor transfer point
attendant, supplies transport staff.
30

Manpower Budget
Productivity may be fixed considering the production programme
and previous years achievements.
Formulas and Formats of Manpower
Daily production
Manshift

= O M S (Output/manshift)

Daily Production = Manshift + (20% Leave/sick reserve)

OMS
= Manpower Strength.
Taking into consideration :For Loaders
30% - 35% average Leave/Sick, Absenteeism reserve and
15% for others
Total 20% overall
The ratio between PR to TR is preferred to be 1:1.5 in u/g
Redistribution of workload and change in system may help in
rationalising manpower strength.
MANPOWER PLANNING
For proper manpower planning, management activities aim at coordinating the requirements and availability of different type of
employees. This involves assessing right kind of people at the right
time.
Manpower planning constitutes an integral part of corporate plan
and serves the organisational purpose more than one. It helps to :-

capitalise the strength of its human resources

determine gap between availability & requirement
anticipate redundance
determine optimum training level
cost of manpower
assist productivity determination
assure right sizing of manpower
31

The process of Manpower Planning:

Objectives of organisation & strategic plan
Market Forecast

Production Process
(Technology to be used)

Financial Plan

Time (Short/long term)

Manpower Demand
Forecast

Estimating Manpower
Requirement

Number

Supply
Forecast
Manpower Inventory

Category
Skill
Action Plan
Monirtoring/
Control

IntakeRetraining

Redundancy

Productivity

The starting point is Sales forecast and targets. Based on these

production plans are drawn, specifying quantity-quality/gradewise over
a specified period. This is followed by assessing number of people
required skillwise gradewise considering the technologies, process of
production.
Before carrying out Manpower planning exercise, it is to be
decided how and what is to be performed. The several tasks are to be
carried out and divided into work units called job.
Assessing tasks to job is known as job design.
Work study techniques are appropriate to measure work, set
standard/norms and calculate number of persons required.
The method of ratio trend analysis is helpful which refers the
ratio between executive to supervisor, supervisors to workers, PR
workers to TR workers, underground workers to surface workers etc.
32

Managerial judgement is important to prepare guidelines in this

account.
The phases to be followed:
Target of sales
Target of Production
Actual process of production technology to be used
Number/Type of equipments to be used
Capacity of the unit - Pattern of operation - material flow
- Organisation of work - grouping of jobs/activities
- target production - Manpower planning
Manpower flows:
Transfer in -

Transfer out -

Recruits in -

Manpower Position

Promotion in -

Retirement Voluntary RetirementDischarge/Dismissal/

Termination Resignation Promotion out -

Manpower Planning
Information required
Effective Manpower
Colliery

Year

Saleable
output

Face

Transport

Dev.
and
special
work

Other UG

OMS
UG

Surface

The tabulation of the labour detail enables management

To preserve continuity of thought and continuity of control.
33

Total
Overall
OMS

Year
Total face

Manshifts working

Wages Cost per tonne

Transport
Engineering service
Other UG labour
Total UG other than face
Total UG
Total Overall
Total OMS
Manpower available
Jobs

Type of people available

No.

Supervisors

Mining
Elect.
Mech.

Highly skilled

Elect.
Mech.
Mining

Skilled

Machine Operation
Workshops manufacrturing
Fitting
Repairing

Semi-Skilled

Roof support operation

Coal Face

Operator
Face Workers

Designation

Grade

Manpower Distribution Plan

Name of the Mine ..........................................................
Shifts
Ist

2nd

34

3rd

General

Surface Installation
1
2
3
4
CHP
QualityControl
Workshop
Loading
Store
Pit Head
Security
Underground
Coal Face
Machine Gang
Coal Transportation
Material Transport
Elect. Plant
Mech. Plant
Development
Safety

***

35

7
TRAINING MANAGEMENT

ines have undergone lot of changes over a period of last

twenty years. During the next few years, many more
changes will come. While every effort to keep abreast all these latest
technical development has to be made, it is necessary to use the new
technique that have been developed as aids to more effective
management. With this in mind, the methods of training and
supervision should be kept constantly under review and to take
prompt action to improve them as and when need arose.
In Training and outlook, the industry must be ready to meet
these changes. The future presents a tremendous challenge. The
Managers must keep pace with the new techniques, but yet must not
forget that very often the whole success of total operations very largely
depend on the Men . It is one thing to manage machines; it is another
thing to manage men in such a way that manpower is conserved and
utilised efficiently and a high degree of respect in human relation is
also engendered. The progress as machine users can only lead to
disaster, unless progress is made as human beings.
Training practice cannot be static in these times. It must be
related to the rapidly changing methods of work. It is to be borne in
mind that the greatest problems of training and education is to give
the new entrants and budding miners invisible weapon of personal
pride and morale to make him feel that he is not a pawn in the game,
but a member of an honourable and distinguished profession, whose
password is service to the country and his fellowmen. It would be the
task of Managers to see that the aim of this industry must be to have
employees so nurtured and brought up that they will think better, feel
better and act better than they have ever done before.
Mining is a constant struggle with nature and because of that it
attracted men who did not like being Feather Bedded. The Nation has
good cause to be proud of the men who worked in coal mines and of
the people who managed them. The flexibility of Indian coal miners
and their adaptability had made possible the use of new and
mechanised methods with the corresponding increase of output.
In the past, the members of coal industry were completely
behind the drive to make the industry pay its way. Those who are now
associated with this industry have to meet the future with confidence
and determination to see that Indian Coal Industry will not only be the
37

progressive industry but will maintain the industrys favourable

competitive position with other forms of energy.
The members attached to this industry have to therefore feel
involved and for this it is necessary for the improvement of their social,
scientific and intellectual position. An organised Management has to
protect and support the character, status and interests of their
members. A vital necessity of any organisation is a settled and secure
employees.
Training
Today we have reached a stage when most operations are
subject to some form of mechanisation. All classes of coal can be
extracted and loaded by proved machines of a type to suit most of the
varied conditions.
This involves not only consultation but a new training scheme
which recognises that every mine worker is potentially a Craftsman,
and that indeed he must be a Craftsman if he is to be of any real value
in modern mining.
The industrys prime objective is to obtain output at a level
consistent with the present and expected future demands for coal. To
meet this objective, the industry must make the fullest use of all its
resources of which the most important are its people and therefore,
requires from those in management, the most effective contribution of
which they are capable.
In a colliery, the right number of appropriately experienced and
qualified employees in the right jobs at the right time are eeded, if the
mine has to achieve its primary objective. To achieve this, requirement
of manpower and training plans of the available employees have to be
worked out and updated at regular interval.
To get economic results, concentrations of the working of a
colliery will require to be more intense than it has been in the past.
The aim will be to take from a face a larger output over 24 hours
than has been past practice. It follows of course, that any hold up of
such a face will result in a correspondingly greater loss. Therefore, to
prevent hold ups, all work in connection with such faces will need to
be of very high standard. The obtaining of such standards should
automatically bring about safer working conditions and go a long way
38

towards reducing accidents. Colliery Manager will never be able to

obtain and maintain proper standards of work unless they have Junior
Officials who know what Proper Standards are and know how to obtain
them through proper training.
Managers and the superiors often think that the present day
junior officials, overmen, are not upto the same standard as they were
when they were junior officials. This is only more because they are now
looking at the picture from another standpoint or if present day
standard are lower, it is because they themselves are training their
under officials as well as they themselves were trained by their
superior. The real difference is that todays under officials are working
in quite a different atmosphere from that of 15 to 20 years ago.
To be able to cope with prevailing conditions, junior mining
officials and overmen require to have a considerable amount of
technical knowledge. They need to know, how to obtain and maintain
good standards in their districts, and they need the backing of their
superiors in their efforts to obtain and maintain high standards of
workmen.
A great deal can be done to train these under officials, overmen
and colliery Manager should do all they can to help and facilitate the
training course instituted for juniors and overmen.
It is vital for the industry and the country that objectives of the
industry are achieved. To do this, efficient Management is must and
one of the pre-requisites for this is an effective management
development system as well as effective Training programme. This can
help to ensure that every individual has the opportunity to develop his
personal qualities and potential to the full so that he can make
greatest contribution in his present job and be given the opportunity
to develop these for the benefit of his future career. Management
Development as well as Training for our employees are the basic
means to make the best possible use of most vital resource - the
people in the industry. Managers have to recognise their vital role in
building Management team and employee development.

Management Team Building

(a) Assess the individuals ability and potential to improve his
39

performance and develop his present post.

(b) To assess whether individual has potential and to what extent to progress
further in his skills.
(c) To make better use of his ability, to assess what the individual
needs in the way of experience and training.
Considering all these, training and assignment may be finalised
for under officials.
It is the prime responsibility of all those in Management to
ensure that their employees and staff know at all times, what their
jobs are, to apprise continuously and seek to improve the performance
of their employees and staff, and to try to ensure that the abilities and
skills of their employees and staff are developed and used as effectively
as possible. It is necessary, that employee should be made fully aware
of what is expected from him in his present job as well as how best he
can contribute in future with added training. It may be remembered
that while all depreciate, men appreciate with the passage of time and
experience.
Managers will identify type of training needed and training
required to match the skills for standard job performances. It will be
both short and long term depending on the manpower Planning drawn
for the mine.
Identification of training, type and number of individual to be
trained to be planned well in advance by training officer in
consultation with the Manager as soon as Manpower Planning is
finalised.
Training for supervisors/overmen & Foremen
Maximum support for standard performances comes from
Supervisors Group. They need to know Management and Supervisory
techniques much more, as they handle matter at the spot and from
amongst them, next group of Asst. Manager, Engineer and other
officials will be developed.
Therefore, preparing a strong Supervisory Team is equally
important as it is necessary to have an effective Management Team.
Training Area
1.

To appreciate the need to maintain good industrial relation

40

within the sphere of his jurisdiction.

2.

To know the terms and conditions of his personal employment

and know the terms and conditions of his workforces
employment.

3.

Understand
conciliation.

4.

To know standard task and standard manning as they apply

to his district.

5.

To know the existence of colliery emergency organisation in the

event of major incidents.

6.

To understand colliery plan, i.e. Production, Manpower,

Budget, etc.

7.

To know the importance of good leadership.

8.

To recognise the need to develop a team spirit within the group

and to appreciate that they are part of a larger group in
achievement of collieries objectives.

9.

To acquaint with production, maintenance and marketing

problems.

the

difference

between

consultation

and

10. To appreciate safety provisions and their enforcement.

11. To recognise that effective conciliation is an essential tool of
management. Many more other areas may be convened by the
Managers for developing team of supervisors.
Training for Clerical staff serves equally important. They are
required to acquire clerical skills to adopt to a wide range of clerical
jobs.

Need to know about office equipments such as Typewriter,

adding machine duplicator, telephone, wireless,
punching
machine,
numbering
machine, photocopies,
word
processors,
computer, comptometer, calculators, etc.

Office aids such as keeping diaries of events and talks,

external,
internal telephone directory, knowledge of office
41

procedures, ready
reckoners,
emergency contact, time table,
dictionary, organisation
chart. Knowledge and training in
calculation, wage calculation, leave/sick wages, allowances.

Communication-Ability to attend and receive the

taking message accurately, effective use of telephone.

Ability to draft
meeting notes.

or

write

letters,

memorandum,

visitors,
report,

To check documents of all types for :

(i) accuracy
and
(ii) meaning

Filing - To place documents of all types in the system

maintaining,
index, recording, splitting up and closing files.
Sorting - sorting documents.

Management has no option to select people through recruitment

according to their need. Over and above, skilled hands are going away
from the industry through natural wastage and therefore Management
has to depend on these young persons. It is more important now to
involve the young entrants in training. They must get instruction in
safe method of working and travelling below ground and to teach them
technical and practical skills necessary to enable new recruits to carry
out their jobs. Young recruits are trained in one of the following
schemes.

To become skilled face workers.

To become skilled fitter and Electrician.

To become efficient mine workers and underground jobs.

To produce potential Supervisors.

Skilled face workers

42

(a) Pre coal face training at training centre to introduce them to

the environment of the coal face. It allows them to perform face
operations under simulated conditions and to appreciate the
individuals contribution to team effort.
(b) Basic coal face training - Coal face training should be
continuous for a few months, leading on completion to skilled face
workers.
(c) Mine workers - General underground training including
specific training in a particular skill which his age and aptitude
enables him to do.
(d) Skilled Fitter/Electrician - Basic training as well as practical
training to become Colliery Fitter, Electrician, Turner, Machinist,
Blacksmith, Welder, Moulder, Machineman.
e) Supervisors - Training for Surveyors, Sirdar, Overman, who
have potential and educational background to match such trade.
Areas
Management Development

Development of Supervisors

Knowledge of job

Knowledge of job

Responsibility

Responsibility

Ability to gain co-operation

Technical ability

Technical ability

Problem solving

Problem solving

Communication

Decision making

Cost consciousness

Delegating

Team building

Communication

Man management

Attitude to change
Cost consciousness
Team building
Attitude to training
Man management
43

Employees Development
Mining

Electrical

Mechanical

1.

Coal Face
Technology

1.

Basic Workshop

1.

Basic Workshop
Technology

2.

Haulage and
Transport incld.
coal preparation
plant

2.

Surface Ele. Plant

including coal
preparation plant

2.

Surface mech.
plant

3.

UG repairing work

3.

UG Elect. Plant

3.

UG Mech. Plant

4.

Planned
maintenance
material handling

4.

Colliery store
material handling

4.

Colliery store

5.

Surveying and
Tech. course

5.

Management and
Tech. course

5.

Management and
Tech. course

6.

Planning Safety,
Rescue

6.

First Aid

6.

First Aid

7.

Method Study

8.

Mechanisation &
Strata Control

***

44

8
SYSTEM MANAGEMENT

HE management of mining industry is complex, compared to

the other industries for various reasons such as locational
disadvantages, hazardous and unsafe operation having risk factors
and the mineral resources itself is wasting asset in coal industries.
Managers therefore have to work with all these constraints.
Since internal management structure is not designed
scientifically, the deficiencies in the management system have resulted
in a fall back to meet the desired expectation of the nation. Colliery
Manager have not been able to adopt scientific management system
due to conventional management style and inherent resistance to
change.
Management decisions are based mostly on facts and not
substantiated by figures. However, modern information technology
with advanced technique of computers simulation can deal effectively
and help in taking management decisions.
The Computer will help in 1.

Quick supply of relevant datas on (a)

Production

(b)

Cost

(c)

Despatch

(d)

Sales

(e)

Stores items

(f)

Manpower availability

2.

Feed back system with memory

3.

Monitoring and comparision.

Management information system can be developed by using

computer at mine level to store the following details Customers detail requirement and transport order

Production standard
45

Personnel statistics

Engineering details

Inventory of materials

Capital Budget

By systamatic processing and analysis of datas decision can be

formulated. MIS has had moderate influence on the decision making
process, little impact on job content, and no influence on reducing or
increasing the number of top managers required.
The major
responsibilities of top management involve long and short range
planning, resource and capacity analysis, settling of profit and budget
goals, and in general establishing the business objectives of the
Company. There is heavy planning content as opposed to heavy
control content at the lower management levels. Information system
have been more effective in the control than in the planning area.
Control functions tend to be more structured, more programmable,
more straightforward, and therefore, more receptive to automated
information systems.
The decision making process consists of the following six
elements Identify areas of improvement, analyse their areas, develop
alternate solutions, evaluate alternate solutions, make decisions,
implement the decisions.
The steps most influenced by computer systems are the
development and evaluation of alternate solutions. Automated MIS
can make decisions on lot sizes and length of production runs, but
they as yet are not utilised to any major degree in making final
decisions on the introduction of new product or the need for an
additional factor. MIS plays an important role in the implementation
of decisions once made. There are some basic reasons for the
relatively limited effect of MIS on decision making to date.
Unstructured nature of data i.e. data required by top
management is unstructured, non programmed, future oriented,
inexact and external need to be avoided. System Management is
important and essential as information processing has become the
dominant theme of this age.
MANAGEMENT INFORMATION SYSTEM (MIS)
46

The information we have, is not what we want,

The information we want, is not what we need,
The information we need, is not available.
- Prof. Finagles Law of Information
Managers are to devote long hours to deal large number of
problems and therefore, information system is to be designed in such a
manner that vital ingredients are presented systematically for a
meaningful analysis in little time.
MIS should provide such
information data.
The information must contain something that Manager already
did not know. The new information must cause Manager to take
action which otherwise would have not been taken.
The action taken must lead to higher pay off - e.g. more gains,
increased profit, reduced risk, greater safety or improved image.
The primary objective and purpose of MIS is to help decisionmaking, control./planning and co-ordination.
Information on
Productivity

Number of machines, equipment & their

performances,
Production status
Production cost
Physical flow of materials, labour quality.

Sales

Total sales forecast - actual sales and

differences qualitywise/consumerwise sales,
cash & credit sales.

Purchase

Source
of
supplies,
terms
of
delivery/discount, flow of material, machines,
equipments parts.

Stores

Stock categories, classification, codification,

moveable-non-moveable
items,
ABC
categories, post consumption, cycle time
consumption, overstocking.

Finance

Accounting department creates, processes

and retrieves data related to profit & loss,
47

cash flow, inventory control, pay roll, cost

allocation, expenses classification, cost of
labour, material and overhead.
Personnel

Information of Personnel records, Training,

Pension, Pay roll, Manpower Budget and
utilisation - defecit - surplus position.

Todays successful Manager needs the system approach to

Management with the ability to participate efficiently in the anlysis,
design, utilisation of computer based information system.
In this area of competition, right information is the major
resource for which Managers are the end users. Managers need to
make quick and correct decisions based on relevant updated and
organised information. Designing effective management information
system is essential for obtaining strategic solution to managerial
problem.

***

48

9
FINANCIAL MANAGEMENT

HE basic objective of a business unit is to earn a satisfactory

return on its assets in real terms after payment of grants.
Therefore, it should be the aim of coal mine to maximise its long term
profitability by securing those sales which are profitable on a
continuing basis in competition with other fuels, and that it should
plan its marketing, production and capital investment accordingly and
bring production capacity into line with its continuing share of the
market.
Also over the next 5 years, operating costs per tonne are reduced
in real terms of deep mine and opencast production considered
separately.
We always come across various financial terms during the
course of running business.
A.

Cash

It is just like oxygen of business. Without this,

business is stifled, suffocates and ultimately comes
to a halt. The cash is raised in the form of LOAN or
SHARES.

Loan

Fixed interest rates, fixed terms

Share

Non-repayable, dividend in accordance with the

performance.
Share holders are owners not
creditors.

With the cash raised from loans, shares or grants, the amount if
invested either in fixed assets or in working capital.
B. Fixed Assets Assets to be retained in the business for a
longer than the normal operating cycle which
are not converted into final product. Capital
Expenditure e.g. land and buildings, plant
and machinery.
C.

Working
Capital

Assets acquired for conversion into goods or

cash within the normal operating cycle. In
particular, the cash needs to be invested in
stock to store and in a buffer stock of finished
products.
49

Two other items within working capital : business does not settle
its transactions immediately and in case: Survey reveals that business
takes some 60 days before settling its bills for purchase of goods and
materials. During this period the suppliers of materials are Creditors
of the Company. Similarly company usually pays wages and salaries
in arrears. The workforce is also a creditors. Creditors provide finance
for the company in same way as loans, grants, shares.
As company takes credit from suppliers for goods and services,
company have to give credit to the customers.
The amount
outstanding from these customers is categorised as DEBTORS.
In case of seasonal shortage, each company makes use of short
term borrowing facilities :over draft.
D.

Balance
Sheet

Balance sheet represents a snap shot view of the

Companys financial position at one particular
date. It shows on the one side the cash raised
and kept in the business and the capital
employed and on the other side the uses to which
cash (or capital employed) has been put.

E.

Profit &
Loss
Account

Whereas the balance sheet shows the financial

position, the Profit and Loss A/c reflects financial
performance in a specified period. Profit and Loss
a/c for an individual pit represents the value of
production less than the cost associated with the
production. Profit and Loss a/c does not show :
(i)
(ii)
(iii)
(iv)

Who controls different items of cost

grants and interests
Colliery contribution (net proceeds less
costs excluding Area & HQ overheads)
cost behaviour.

F.

Cash
Flow

It is important to realise that profit does not

represent cash generated.
Net proceeds may
contain credit or coal produced but not sold.
Even if all coal produced and net proceeds are
entirely made up of sales revenue, profit still does
not equal cash generated .

G.

Depreciation

An example of depreciation is shown here. It may

be noted that although an amount of Rs.1,00,000
is charged as a cost in the P&L Accounts in years
50

1-8. The cash (Rs.8,00,000) flows out of the

business when the machinery is actually
purchased at the start of year 1. The amounts of
Rs.1,00,000 p.a. represent notional charges not
cash transactions. Hence, to move from profit or
loss to cash, depreciation charges must be
excluded. An equation may be derived.
Profit or (Loss) + depreciation = Cash generated.
Assets and Liabilities
1.

Fixed Assets (in Rupees)

Property
Mines and Surface works
Plants and Machinery
Assets in course of construction
Investment in collieries/subsidiaries
Deferred interests.

2.

Working capital (in Rupees)

Stock of products
Stock of stores
Debtors
Cash
Creditors

3.

Less
Deferred Liabilities Rs.

4.

Reserves

BUSINESS OPERATING CYCLE

51

CASH/BANK
MATERIALS
RECEIVABLE
WORK IN PROGRESS
PRODUCT
Every enterprise, public or private, large or small, profit earning
or loss-making, is a financial concern. Its success depends to a large
extent on the quality of its financial decision. For appropriate financial
decision Accounting is a must. Accounting is an information system
and acts as a business language.
Accounting Methods
Transaction Supported By Document (Voucher)
Recording of Transaction (book of accounts)
Classification Under Different Heads (ledger accounts)
Summerisation (Trial Balance)
Presentation of Final Account (P&L Account & Balance Sheet)
Auditing of Account Books (Audited P&L Account & Balance Sheet
Financial Accounting
It mainly relates to recording and processing of financial data
affecting the business unit Balance Sheet and P & L account are the
end results of financial accounting.
Cost Accounting
In order to control cost and to assess profitability and efficiency
of the unit, the cost of the product or service are ascertained.
52

Auditing
Accounts are required to be audited by auditors to examine the
accuracy of accounting books and records.
Capital & Revenue Items
Capital items are non-recurring in nature. Revenue items are
recurring in nature. Expenditure incurred for acquisition of fixed
assets is capital expenditure. Payment made for acquiring fixed asset
is capital payment.
Expenditure incurred for purchase of raw materials and stock of
finished goods is a revenue expenditure. Expenditure incurred for
production, administration or marketing is a revenue expenditure.
Elements of cost and cost sheet

Material accounts for a significant part of the total cost and

therefore it is essential to have proper material costing system to
control cost.

Labour is the second element of cost. Payments made to the

employees are to be accounted for to ascertain labour cost.

Overhead costs are those costs which are indirect cost and cannot
be identified easily.
Cost Sheet is simply a means to ascertain cost of production or
cost of sales by adding the different elements of cost in an orderly
fashion.
In todays fast changing economic environment, competitiveness
in terms of cost and productivity is the key to success for any
productive unit. A smart financial approach for managing finance and
cost for the best advance of the unit is, therefore, essential.

***
10
MATERIALS MANAGEMENT
53

aterials Management is the process of purchasing materials

and service for the unit where they are economically useful.
Materials Management include the entire range of functions which
effect the planning & programming purchasing, flow, conservation,
utilisation, quality and cost of materials.
There has been considerable misconception about material
management. Some confuse it with inventory control, some other
confuse it with purchasing of materials, and some consider it as store
keeping.
Objectives of Material Management
1. To maintain production and operation by ensuring flow of
materials.
2. To reduce materials cost.
3. To reduce recurring expenditure.
In summarising briefly the activity of Material Management, it is
the procurement of materials of right quality
right quantity
right price
right source
right delivery
with protection against unforeseen failures of supply and
protection against increase in demand during hard time.
The purchasing function may be centralised or decentralised.
The major advantage of centralisations are a)

Duplication of efforts are minimised.

b)

Consolidation of orders benefits in qualtity discounts.

c)

Effective control on inventory

d)

Line Manager can get support from Material Managers.

e)

Record keeping is reduced.

54

Inspite of advantages, it is not always possible to adopt

centralised purchase system.
Decisions regarding quality, quantity, urgency and essentiality of
materials are decided by the Managers who uses 1)

Standard regarding quality & quantity are laid down generally by

the planner.

2)

Urgency is demanded by Production Manager.

3)

Essentiality is demanded by the Technical experts.

The Manager has to ensure that for improved production, urgent

materials ensuring quality are made available at right time. It is,
therefore, essential to ensure that i)

authorised materials are procured.

ii)

proper inventory control is maintained.

iii)
carried

receipt, inspection and identification of materials are

out.

***

55

11
SAFETY MANAGEMENT

he new outlook towards various matters concerning safety,

favours a special safety consciousness which reaches right
down to the roots of the cause of the injury.
A properly organised safety scheme whether at Company level or
colliery level, should do much to bring the safety department and its
purpose into better co-operation and good faith with management and
workmen and would stimulate all officials and workmen at least to pull
their weight towards a common end.
Coal mining with its eventful tradition has attained distinction in
the history of industrialisation of our country. With the course of time,
coal mining has undergone changes in approach, purpose,
methodology as well as in its objective. With the changing technology,
culture and outlook, specially after nationalisation, the objective has
also been shifted.
This remarkable change confers lot of
responsibilities and warrant commitment and involvement of all
associated to this industry. Now coal mining industry, a prime source
of energy is engaged for economic prosperity and growth of the nation.
The success of this industry largely depends on collective and joint
effort of all who serve.
It is a challenge of the day to restrict the incidence of accident.
In order to limit the rate of accident a great deal of research will be
necessary.
After nationalisation, mines have come under one umbrella and
taken a shape of largest organisation in the country and a coal family
has emerged.
The joint responsibility of both management and
workers are of great importance in dealing with the safety matter and
accident aspects in the coal mining. Both side has to develop culture
of working with close co-ordination, understanding with clear
conception and sincere intention to tackle the adverses. To recognise
the following aspects will seem to be of importance.
(i)
Regard to human life.
(ii)

Invisible cost of accident

(iii)

Safety policy in clear term.

(iv)

Responsibility of the management

(v)

Responsibility of the workers representative.

56

Protection of health and life in the mine is necessary and there

should be concern to implement safety measures.
The employers liability is the direct cost. There will be also
indirect or hidden costs to the company, which are incurred as a result
of an accident. Those costs include safety administration, medical
services, lost time of injured employees, lost time of other employees,
replacement labour, welfare and other payments to injured employees,
loss of production, repair of damaged plant, replacement of damaged
materials. Once the cost of accidents have been evaluated, the
recognised budgetory system can be implemented. The charges to be
made against the departmental Managers budget can then be
calculated and allocated on monthly basis. This will enable him to
plan any action necessary to maintain the level of safety within his
mine.
Any deficiencies would be highlighted in cost terms rather than
frequency rate which may be increasingly questioned by Management
as measure of safety. (Perhaps the addition of economic accountability
will help to minimise the losses resulting from accident).
The responsibility of the Management
It is necessary to have clear policies guideline for safety
Testing the safety policy - a guide A.

The policy statement

(i)

Does it give a clear unequivocal commitment to safety ?

(ii)

Is it authoritative ? Has it been agreed to by the Company ?

(iii)

Has it been agreed by the trade union representatives ?

(iv)

Are there effective arrangements to draw the attention of

employees ?

B. The organisation of safety

(i)
Is
the
delegation
of

duties

local

and

successive

throughout the organisation ?

(ii)

Is the safety performance of Managers an ingredient of their

annual review ?

(iii)

Are key functional Managers identified -

(a) Safety Manager (b) Training Manager

Are their duties clearly understood ?
57

C.

Training

(i)

Is there system for identification of Training needs ?

(ii)

Does training cover all levels from senior Manager to new

entrants ?

(iii)

Are refreshers courses arranged ?

D.

E.

Safe system of work

(i)

Are those tasks

identified ?

for which a system

(ii)

Are those system properly monitored?

is required to be

Emergency procedures
(i)

Are the areas of major hazards identified and assessed by

experienced and qualified staff ?

F.

(ii)

Are there adequate first-aid arrangements ?

(iii)

What arrangement are there for fire fighting ?

Monitoring
(i)

Are there adequate staff for monitoring ? Is it understood

that monitoring will be carried out ?

(ii)

Are all the causes investigated ?

(iii)

Organise to meet those objectives ?

(iv)

Make effective arrangement to deal with risk ?

(v)

Monitor the effectiveness of the organisation and

arrangement ?

The Company will recognise(a)

The need to provide for all employees working surroundings

which are as healthy and safe and reasonably practicable.

(b)

Their responsibility for creating and

conditions.
58

maintaining

such

Their objective is continually to reduce hazards to health and

safety in all activities under their control.
The company will expect from workers representatives:
(c)

Total involvement of all employees in working towards this

objective.

(d)

Management to aim to achieve the standards set by the

company and to provide the resources and services necessary
to achieve them.

(e)

Employees to have constant regard for these standards and

comply with them at all times.

Responsibility of Trade Unions

For implementing safety policies and extending co-operations in
all matter with regard to reduction in accident rates, the functioning
trade unions can play a vital role. Better knowledge of accident and its
causes demand training of the employees.
(i)

Trade union representatives have to co-ordinate with the

Management such training programme of the employees to
make workers conscious about safe working practices.

(ii)

Joint participation Council, safety may be given priority and

discuss the possible system to be introduced for eliminating
chances of accident.

(iv)

Trade union and Management of each mine may draw a Safety

guideline
for
both surface and underground workers
considering the technology introduced in the mine and the risk
involved in the operation.

(v)

Trade union has a role to look after injured workers family

while they are out of employment.

(vi)

To uplift the morale of fellow workers trade unions will have to

play a major role that the industrial relation is not allowed to
be deteriorated in case any accident takes place.

In fact, to promote safety consciousness, adoption of safety

measures and attempt to reduce accidents, are the joint responsibility
59

and with the co-operation of both the parties-Management and Trade

Unions, a zero accident potential will be possible to achieve and
productivity rate of the mine will be maximised.
Those who have had to perform the most odd duty of telling a
woman that her husband has been killed in the pit; know something of
the resultant grief to the family. The tremendous effect upon the family
at the loss of the Bread winner is enormous.
Accident means a tragic incidence followed with mental and
physical grief to a person and his family. Loss of life, the price of
injury, cannot be counted in terms of money. Some items could be
achieved, replaced, such as machinery, loss of production, its cost can
be calculated. But loss of a Father, Brother or Son to a family could
not be compensated.
The accident rate is reflection of conditions in the mine either
natural, man-made, or combination of both.
It is not an under-statement to say that Safety and production
go hand-in-hand. At a mine, where accidents are prevalent, the OMS
and total output set for, will suffer proportionately.
As production has been increasing, output per man-year has
also increased considerably. High standard of equipment, watchful
management and efficient safety department can contribute
eliminating risks of accidents, provided, all men connected to
underground work, are suitably trained and made conscious of safety
need. What will be necessary to prevent injuries in mines are :
(a)
(b)
(c)

A strong department with adequate status;

A suitable training plan;
Safety campaign to reach grass root level.

All who are working in mines and associated to coal mines want
to see that

Mine works safely.

Having steady production network

Human safety insured

Constant watch on safety items

Contended workmen return home happily after work

60

This entrusts heavy responsibility on those who manage offices

in mines. To achieve all these, while production planning seems must,
enforcement of safety items will be also equally necessary.
A check list of safety matters must be available in a mine, which
should be monitored by Safety Department of a mine. Safety
Department should be allowed scope to use its ability to aid the
colliery Manager. The aim of this department is to assist officials in
achieving higher production without any injury or casualty to anyone.
To do this, the Safety Dept. must have trusted, unfettered scope. The
Department cannot function if strangled by routine or procedures and
should be consulted at every planning stage of projects to ensure all
factors. Installing safety appliances, dust suppression equipments as
well as special training of operations etc. after the project has started,
can never hope to be successful.
Safety Departments duty must be injury prevention on its
widest sense and to ensure that the Act, Regulations and good
practices at all times carried out with the right spirit and intention.
The Safety Branch has, uptill now, not enjoyed the best of
treatment and the mine Safety Officer does not have the status to
which he is entitled. The Safety Officers work is strenuous and
exciting. His responsibilities cover every shift on everyday and relate to
every part of mine. The Safety Officer must be a man in whom
management and trade unions and workmen have every confidence. A
successful Safety Officer should be promoted and given responsibility
to work as Mine Manager. In other way, no one should be a Mine
Manager unless he serves successfully as Safety Officer and whose
position should be No. 2 in the Mine as Deputy Manager.
In view of the new outlook to work, various matters concerning
the Safety Department, it is favoured that a Special Safety campaign
provided which reaches right down to the cause of injury where an
atmosphere of goodwill prevails and there is genuine desire for cooperation to reduce injuries, promote safety and further the welfare of
all concerned, success will be achieved. A Joint Committee of
representatives of Management and workmen is a suitable medium of
machinery for giving effect to the desire. It will provide a channel
through which the interest and enthusiasm can reach all ranks. At a
regular interval, the committee should discuss cause of injuries from
accidents and consider suggestions to prevent their recurrence.
61

The importance must be emphasised of the necessity for the

closest co-operation between management and trade unions. Their
interest is basically the same that is of giving greatest possible
protection to employees and if the maximum success in providing safe
and healthier conditions is to be achieved, then there must be joint
endeavour.
The following steps may be taken to accelerate Safety campaign:(i)

To promote thought and discussion about safety amongst

the workers.

(ii)

To help to formulate good communication so that the above

is possible.

(iii)

To try and enlist the Specialists knowledge and experiences.

(iv)

To give publicity
own Newspapers.

(v)

Mobile safety exhibition to be organised.

(vi)

Safety competitions/trophy, award for best suggestions,

safe worker, persons contribution for safety matters, etc.

(vii)

To have booklets prepared by Safety and mechanisation

branches and issued to all men employed on mechanised
face indicating special risks as well as safe practices.

(viii)

Safety Exhibition may be designed by the HQ Safety

Department which may visit each Area in turn to be shown
at one or more suitable centre and this should be visited by
as many as mine workmen and officials as possible. The
Area may be free to add to the exhibition materials of
particular local interest of importance.

(ix)

Special Safety Film of 5/6 minutes duration, may be shown

in colliery Canteen.

(x)

To avoid campaign lowing down or fizzling out, the

campaign must be in no sense be allowed to appear as
Nine Days Wonder arousing merely temporary interest.

to

the

62

campaign through

industrys

Safety is a constant challenge, demanding unremitting vigilance

on the part of all concerned. The campaign should, therefore, aim to
stimulate the workmans interest in his own and his collegues safety,
to focus attention where necessary, intensify existing safety activities
and procedures and to promote a continuing interest in the need to
reduce accident.
It should be made certain that with the efforts to increase
productivity, safety standards are not allowed to slip. Mines are
worked for production, but in any case, it must never become
production at any price.

***

63

12
DISASTER MANAGEMENT

CCIDENT claiming human life is always a sad affair. It not

only upsets the members of ill fated family, but also adds
miseries for the future days to come. Since there is no chance of
preparation in advance to face such odd eventualities, the helpless
members, after accident, have to live for the rest of the period with
memories of the victims.
Even though accident is an undesirable event, it does take place,
now and then, here and there in some corner of the country. Accident
occurring on road, in industry is a regular feature. But when such
accident claims large number of human lives, it turns to disaster.
Disaster is dreadful and devasting. It creates a situation of
dejection, distrust and frustration amongst those who suffer.
Circumstances of disaster may be different due to accident taking
place on road, industry, railway or due to plane crash, yet the effects
are same.
However, management and handling of social and
economical problems in all such cases, though difficult may not be
that tough as it happens in case of disaster arising out of operation in
industry or mine. The victims of road accident may or may not be
known to the people who assemble near the spot and in absence of
attachment with the victims, the inquisitive people show resentment
and indisciplined behaviour. Generally no one remains to receive
blames from the crowd on the spot and hence they disperse after a
shortwhile.
Railway accident which turns in to disaster creates a different
situation. Passengers are not known to each other and have different
destinations. In case of disaster, passengers who survive, try to
escape and seek quick relief. The relatives of the victims are generally
away from the spot and the people available from nearby, normally
extend help to rescue team, instead of becoming hostile.
Identical position does arise in case of plane crash or drowning
of steamer. Therefore, rescue operation in all such cases though
difficult but not complicated.

64

Mine disaster takes altogether a different shape. It has a

prolonged effect over hundreds of people located nearby in the place of
occurrence.
Generally mines are situated in remote corner,
surrounded by workers colony and cluster of villages at a distance.
Due to close association, employees are intimately known to one
another. They share their sorrows and happiness during bad and
good days. Any such unfortunate occasion like a disaster disrupts the
normalcy.
Let us imagine what happens immediately after the disaster in a
mine. Mishap triggers off shock waves in the surrounding areas of a
mine. Fear dawn on workers, numbed by the disaster. A pall of gloom
hangs low over the nearby area. Though mining operations continue
round the clock, at whatever hour the information of disaster,
involving life of a large number of workers comes out of the pit,
apprehension spreads like wild fire. It travels faster with distortion.
Workers, relatives, villagers in number, arrive at the spot and plead
with the officials for immediate safe recovery of the miners involved.
Due to large number, the crowd may go out of control and any sort of
emotional outburst may take place.
But situation at that hour demands :

Rescue teams to arrive in shortest possible time.

Technical experts to take charge of the mine to guide and handle

operations to save life and mine.

Medical team to arrive to extend medical assistance.

To have continuous electric and water supply in the mine.

Effective communication system to establish contact with

Rescue organisation, law and order authorities, technical
experts, Dept. of Mines Officials and with underground districts.

Thus, in one hand a tense environment contrary to carry out

effective emergency work exists and on the other hand, quick and
faster actions are required for recovery of workers involved.
It is a challenging situation, difficult and tough to handle.

65

In such disaster, boundary management is vital and of prime

importance. Unless some normalcy is restored, rescue team cant
enter the spot, medical team cant arrive and technical emergency
work may get delayed.
Disaster Management with regard to social, economical aspects
is therefore, appears very essential and important. It is also essential
and important to have such leaders and team of dedicated personnel
who continuously, from the time of occurrence, will effectively carry
out functions and attempt to provide normal environment.
The task may be identified as under :
Internal Tasks
(a)

Communication to rescue organisation, law and order

authorities, technical experts, Dept. of Mines and medical
team.

(b)

To organise the security personnel to guard the spot of

occurrence and entrance of the mines, if any.

(c)

To form teams to take charge of Control Room, Information

Centre and co-ordinate rescue and technical operation.

The teams to formed to handle social and economical aspects

will have following
Tasks at the 1st phase
(i)

To contact Trade Unions and get their representatives at the

spot.

(ii)

To enforce security and to get police personnel to man various

strategic points, in order to prevent any ugly situation to
happen.

(iii) To get Ambulance, as many as possible with the Medical Team.

(iv)

To get the workers lists prepared jointly with the Union

Representatives and to announce the names for information of
the co-workers and relatives.

66

(v)

To inform local public representatives the position and

detail available about the disaster.

(vi)

To intercept wild and wrong information and to ventilate

news through sensitive loyal employees about the correct
position of mine and workers involved.

(vii)

To appeal for co-operation and to engage various groups

from amongst the employees, to start round the clock
telephone system/section, canteen, survey section, stores,
laboratory and office for any other support.

Thus, to get more and more people involved in the process

quickly in order to counter the force bent upon dislocating operation.
Tasks in the 2nd phase
The team will ensure that :
1.

Telephone system is effective and all corners can be

contacted.

2.

To establish contact with the relatives of the victims, and to

explain them that all care will be taken.

3.

To organise groups to carry the injured workers and in case

of death of employees to carry the dead bodies to Hospital.

4.

Opening of Emergency Ward in nearby Central Hospitals

which is equipped to meet up such situations and can
extend all possible medical attention

5.

To open canteen and arrangement for food and drinking

water for all those who will be engaged in various
operational and rescue job.

6.

To vacate nearby buildings and to arrange beds for rest

purpose of emergency personnel who will have to stay
round the clock.

7.

To safeguard the residence and family

executives who are always in the workplace.
Tasks in the 3rd phase

67

members

of

To make Trade union Representatives available when injured

persons are to be brought out. In case of recovery of dead bodies, more
precautions need to be taken at the pit top so that workers and crowd
assembled are not emotionally surcharged.
Nearby Central Hospitals are to be alerted to extend medical
assistance before carrying the injured persons from the pit top.
Govt. help to be taken to bring the post mortem team in the
Hospital so that when dead bodies are taken to hospitals, post mortem
part is undertaken without delay.
It will be necessary to set up temporary offices in the Central
Hospital for (i)

receiving the injured persons or the dead bodies;

(ii)

to see the requirement for medical treatment of injured

persons;

(iii)

post mortem of the dead workers and after post mortem

handing over dead bodies to relatives;

(iv)

for identification of dead body, help of union personnel,

welfare officer and cap lamp no. to be taken.

At this stage, it is necessary to establish an office with the Police

and Magistrate for issuing various certificates for the purpose of
carrying dead bodies to distant places.
Few other offices are to be opened at Hospitals:
Office-1 : Will receive the relatives and keep them in a waiting
place. A team of officers including lady officers should be available to
look after the relatives, specially the female members. Those who have
to perform the duty of telling a woman that her husband has been
killed in the pit know something of the resultant grief which rises to
almost dementia. Hence, a team with human approach should look
after the relatives at hospital. Arrangements for their fooding while
they are waiting at the hospital, are to be done.
Office-2 : Will look after the allotment of vehicles for carrying
the dead bodies, issue of death certificate, certificate from the police
68

and magistrate for transporting the dead bodies to inter-state,

arrangement for ice, wooden boxes for the dead bodies.
Office-3 : Will arrange for immediate cash payment in presence
of the representative of the Trade Unions so that after due
identification, payment is made to the right persons for carrying out
cremation and to meet up incidental expenditures.
These arrangements will establish a credibility before the
relatives and concern of the management will be reflected.
Establishment of Control Room
This will remain open round the clock to monitor:

Rescue operations.

Make contacts wherever essential for the purpose of recovery

operations.

To arrange adequate copies of mine plans for rescue teams.

To maintain uptodate information.

To maintain duty roster.

Establishment of information Centre

This centre may be opened in a convenient place where
from employees, their relatives get all information about the victims or
injured persons.
Tasks in the 4th phase
The Personnel Dept. will contact the family members in the
colliery quarters and will send telegram to their relatives at house
addresses for information about the injury or loss of life of employees
whose family stay away.
The team so formed will visit the quarters of victims 69

To arrange their ration

To extend medical help, if required

To give the grief struck family members mental and financial

support so that their helplessness can be reduced to some
extent.

Opening of special Office to deal Economic aspects

To make arrangements for payment of due wages, leave

wages, PF,Gratuity, payment under life cover scheme,
Workmens Compensation, etc.

To contact PF Commissioner to open their office at colliery

on temporary basis.

To request Compensation Commissioner to establish office

at the colliery to make payment of compensation to the
nominees.

LIC official may also be approached for similar purpose.

All these actions will raise confidence amongst the relatives of

the victims.
It is also essential that the members of the family to be
explained as to how best they can save their money in Bank or Govt.
Institutions after they receive a considerable amount from the
company as compensation package.
It is important that while handling socio-economic problems,
due care has to be given with sincere concern for the family members
whose bread winner will never return.
Tasks in the 5th phase
It is essential that immediately after the occurrence, frequent
meeting with the Trade Union representatives need to be carried out to
inform the latest position of mine and rescue operations. They are also
required to be consulted before initiating all future steps.
70

Their participation will be added strength for the managerial

team.
The union representatives have greater control on workers and
without their active support nothing can be really achieved. Hence
they must be treated as important part of the disaster management
team.
The correct position of mine has to be unfolded before the union
representatives so that credibility is earned which goes long way
during such crisis.
Handling of Press is an important task. The Press and media
have responsibility to highlight the real position before the
countrymen. Morning and evening meeting with the Press personnel
will seem essential when all their queries may be replied clearly.
During such occasion, important persons and VIPs visit the
spot.
To manage their visit smoothly is an important function.
The objective of Disaster Management is to bring normalcy faster
for initiating recovery work of employees and to save the mine as early
as possible.This can only be achieved if the team leaders are sincere to
their approach, have courage to face any eventuality and above all
have respect for human feelings and sentiments.
Mine disaster is an unwanted affair. With the modern and
advance technique, by implementation of safety rules and with
determination efforts have to be made so that chances of such
occurrence are eliminated. The human lives are precious and their loss
while at work is painful.
The members who will have to associate in managing social and
economical aspects in case of such happenings, have to generate a
sense of missionary zeal to get the sufferers out of the situation of
helplessness.

***
13
PROJECT MANAGEMENT
71

roject Management process has the following series of steps:

SET GOALS - PLANS - SCHEDULE - ALLOCATION OF
RESOURCES - ORGANISE - CONTROL

In Project Management, main thrust lies on control. Control is

the process of reducing the deviation between planned performance
and actual performance in a time frame. The three factors - time,
budget and performance form the basis of project control.
Factors affecting

TIME - Supply Delay - Time consuming - Missed

milestone.

COST - Inflation - High labour cost - Poor timing of

cash flow.

PERFORMANCE
- Poor design - Poor quality conflicting objective - poor functioning - employees
morale - complicated technology.

Control can be achieved through tracking, measurement and

evaluation.
Steps for control

Specify - the specific aspects are to be measured.

Set standard of Performance - keeping in view industry

practice - work analysis.

To measure actual performance - measurement scale to

be determined.

Comparison performance.

To identify - variances and sources of performance.

between

the

72

actual

and

standard

To determine appropriate action - so that poor

performance are rectified and does not recur further.
The variances observed are overcome.
Monitoring of Projects
The Project Progress Reports will mainly include:

Material supply schedule

Cash supply schedule and cost performance plots

(Planned vs. Actual)

Work done schedule and time performance plots

(Planned vs. Actual)

Prevailing level of communication, co-operation and coordination decides the quantum of success of Project Management.
When these are tied in logical manner, the results achieved measures
close to planned schedule of the project.

***

73

14
OPERATIVE PLAN FOR PROJECT
IMPLEMENTATION

OR the purpose of steady and faster economic growth, plans

for development in all fronts including industrial units
appear to be important. In deciding priority concentration on viable
scheme with concrete plan of action will be essential. Coal, the prime
energy source will be dominating industrial front for a few decades to
come, and therefore, attaching importance to new Coal Projects will
gain priority.
New Projects, especially in Coal sector is directly dependant on
the prime parametre-land. Land of various size is required for coal
extraction either from underground, incline or opencast. With the
acquisition of land for coal projects through various laws, people
associated with the land become affected and may cause shifting of
settled people. For economic growth and in the interest of nation while
new Coal Projects are essential, land acquisition and consequent effect
disrupts the traditional, social system and source of livelihood of the
people associated to such land. Displacement of people involuntarily
may give rise to severe social, economic and environmental problem
because :(a)

In the relocated environment, productive skill of the

people may be less applicable.

(b)

Productive assets and sources of income are lost.

(c)

Social structures may get disrupted.

(d)

Cultural identity may diminish.

Effect on People and Need for Rehabilitation Plan

Since settled persons are generally displaced with the
acquisition of their land for coal projects of different sizes, they lose
their earnings from the produce of the land.
(i)

The land that is acquired for the purposes of project by

CIL is for the national interest and the displacement of
74

persons is involuntary. Often for the purpose of

implementation of project jobs, eviction are faced by
the affected persons.
(ii)

Due to industrialisation, the age old rural environment

gets often transformed to semi-urban environment
within a short spell of time and usually follows with
rise in cost of living. The traditional sources of income
is likely to be reduced and in most of the cases, the
persons affected, face difficulty to cope with the new
situation.

(iii)

Land acquisition and consequent displacement

disrupts the traditional social system and source of
livelihood.

(iv)

Due to change in the pattern of land substantially the

agro-based rural economy and lifestyle of people
changes. Many a time they do not find easily the
alternative source of income.

(v)

Only proper resettlement and rehabilitation of the

displaced persons can remove discontentment which in
fact help to derive co-operation from the people
affected.

The objective of the Rehabilitation Plan is to resettle the affected

persons and also to ensure measures for restoration of their income.
Change of Rehabilitation Plan
The rehabilitation plan will cover

Objectives

Detailed plan of the land

Socio-economic survey

Community participation

Mechanism to select alternative sites, evaluating losers

and allocation of compensation.
75

Plan
and
programme
rehabilitation.

Estimated cost of resettlement and rehabilitation and

financial plan.

Organisation
responsibility.

Time schedule for implementation of rehabilitation

plan.

Monitoring and evaluation.

Legal instruments and regulation.

to

deal

for

and

resettlement

undertake

and

such

The rehabilitation plan and resettlement package may differ from

project to project and from state to state. But in all cases,
compensation for the land lost and other losses are payable as per
market value of the asset. Regarding restoration of income, the
objective is to generate scope of employment in the project and to
create various avenues for self-employment.
Rehabilitation of project affected person involves two distinct
aspects;
(i)

Compensation for losses in terms of land, cash and other

forms should be provided to the head of the house hold, his
adult son and daughter.

(ii)

For restoration of income, the plan lies in starting a new life

in terms of opportunities, training, credit and community
services for schooling and health and new employment
opportunities for project affected people.

Unless the human problems are resolved in time with honest

and sincere approach, Project implementation will be a tough task. It
is, therefore, essential to identify factors responsible for unusual delay
in implementing project activity.
Problems and Effect during Project Implementation:
Various problems that crop up during implementation of project
activities are 76

(i)

Concentration on project preparation tends to leave gap

for detail planning of land acquisition. This leads to
(a) delay in acquisition of proposed land
(b) complications in getting physical possession of
land.

(jj)

Land acquisition through various laws takes time. This

factor not only contributes in time over run but also
subsequent escalation in the cost structure.

(iii)

Due to delay in the land acquisition process and

procedure, people become reluctant to accept the terms
offered through State Land Machinery.

(iv)

In absence of systematic and regular consultation

people do not participate in discussions and their
involvement is less. People do not respond positively
when acceptable alternatives are offered.

People learn about project from sources other than project

authorities, thus misgivings and wrong interpretation on offers create
biasness.
The shortcomings and effect may be classified.
Problems and short comings

Effect

(i)

In preparation of project
report, proper planning of
land acquisition remains
absent.

(i) a. Delay in acquisition of

land.
b. Complications arise in
getting physical possession
of land

(ii)

The land Acquisition Act,

1894,
is the main
legislation governing the
acquisition of private land
for public purposes and
for companies.

(ii) In general, powers of district

collectors in LA are conferred
on land Acquisition officer
who belongs to state..

77

Property is part of the

concurrent list of the
Indian Constitution. This
central Act has several
state amendments.
(iii)

The
land
acquisition
process under LA Act is
long drawn and the
district collector decides
about the amount of
compensation taking into
account claims and other
evidences.

(iii) When the quantum of land is

more
such
procedure
complicates
and
claim
counter claims come forward.

(iv)

Land Acquisition under

the
Coal
Bearing
Areas(Acquisition
and
development)
Act
is
advantageous.
The
District Administration is
only involved in obtaining
copies of land record and
company has to rely on
the
help
of
District
Administration
in
the
process
of
land
acquisition
The acquisition process is
carried out by the land
acquisition
department
and people get various
information
about
proposed project from
third agencies.

(iv) Due to resistance for physical

possession of land, friction
between the Industry/Centre
and State Government may
occur.

(vi)

(vii)

Absence of systematic
consultation with the land
associated people from
the initial stage

(viii)

No selection of group
leader or representative of

(vi) Stiff resistance grows with the

apprehension of long term
hardship.

(vii) People
generally
respond positively.

do

not

with
various
(viii) Outsiders
interests try to gain ground by
78

people to be affected at
appropriate time.

raising issues and bring

political bias for their short
term gain.

(ix)

Chances of subsidance,
fire over underground,
surface, incline mining
working and noise, dust
pollution from Opencast
working.

habitants
feel
(ix) Local
threatened and uncongenial
atmosphere persists.

(x)

Absence of scheme for

protecting environment in
the mine areas

(x) People anticipate environmental and land degradation,

presents unsatisfactory image
for the industry.

(xi)

Absence
of
proper
resettlement policy

(xi) Various
agencies
create
barrier and normal situation
gets disturbed.

(xii)

Absence of proper socioeconomic survey of the

local people associated to
land

(xii) The project cannot identify

the categories of people
affected, and their details for
the purpose of calculating
compensation
and
other
benefits.

(xiii)

Inadequate
administrative arrangements

(xiii) Creates vaccum and handling

of land matters become
difficult.

(xiv)

Lack
of
training
of
officials
dealing
with
project affected people.

(xiv) Implementation of resett-lement

plan become difficult and the

objective of the project to grow
with the neighbours does not
gain ground.

Classification of Persons Affected

Project affected persons may be classified under the following
headings :(i)

a.

Persons whose entire land is acquired

79

(ii)

b.

Total agricultural land

c.

Some part is cultivable.

A persons owning land which is not economically viable

after acquisition.

(iii)

A persons whose homestead land is acquired

(iv)

A person whose homestead land and household is acquired.

(v)

A person who is in actual possession of land as tenant, tiller

and which is acquired.

(vi)

A tribal owning the land or deriving livelihood from the

land.

(vii)

A person having leased ownership and land is acquired.

(viii) A

person

having

occupation

ownership

and

land

is

acquired.
(ix)

Properties vested with trustee and such land is acquired.

(x)

A landless person cultivating Govt. land which is acquired.

(xi)

Joint holding of family members and land is acquired.

(xii)

A person having land but staying outside which is acquired.

Classification of land
(a) Cultivable
i.
Irrigated-two crops/three crops producing land
ii.

Non-irrigated one/two crops producing land

iii.

Barren land

iv.

Vested land

v.

Forest land

vi.

Pond

vii.

Homstead land

Acquisition of land generally to be done through Land

Acquisition Act, through Coal Bearing Act, Chhotanagpur Tenancy Act,
keeping in view various provision of Law in practice at different
locality.

80

Action Strategy
It is necessary that the course of action be decided for successful
completion of project activities keeping in view the human problems
associated to land acquisition.
Actions may be classified as under:(i)

With the selection of projects and identification of area of

operation for coal extraction, requirement of land and its
sizes to be determined.

(ii)

To determine priority-wise phase wise, land acquisition with

the time schedule. Blueprint of land scheduling need to be
prepared where possible with readjustment, alternative
planning may be done for minimum displacement of people.

(iii)

Government land department to be intimated for processing

acquisition as per schedule.

(iv)

Project in-charge may form action oriented informal

managerial team for co-ordinating the following activities:(a)

To establish contact with the people associated to land.

(b)

To identify carrier from the local inhabitants, to

highlight project matters and objectives.

(c)

To select appropriate Co-ordinators who understand

the villagers, their language and have fair idea of socio
economic position of the localities. The co-ordinator will
be selected from the industry and will work through
carriers.

(d)

Identification of leaders and representatives of various

groups and people from different social strata.
In order to develop a sense of trust and goodwill amongst the
people to be affected, Community work need to be undertaken by the
corporate officials. Simultaneously a group of officials having aptitude
for doing social work around the villages may have to function and
organise the following activities:81

Organising polio camps in the surrounding villages.

Developing child and mother care centres

To initiate literacy drive

To form an effective administrative group for settling

compensation issues.

The social work group will implement self employment

scheme for project affected people considering their
background, age and aptitude.
Dealing with various agencies
GR 1
Implementation of self
employment scheme.

Administrative group
for compensation
GR 6
GR 5

GR 2
Project Team

Social Workers groups

GR 3

Monitoring Group
Group for socio
economic survey
GR 4
Informal group with(i) Village representative
(ii) Public representative
(iii) Representation of District

It is important to strengthen the Project Team, preferably Area

office to guide the project team, in all matters as it will help:(i)

To eliminate the tendency of taking up Project matters at

Company level.
82

(ii)

The problems are localised and tackled at Project level.

However, Corporate level and Higher Levels are to delink from

negotiating and handling all resettlement matters at appropriate time
and thus allow Project Team to resolve local problems without giving
scope to turn such problems as national issue.

Team 1

Liaison with Project Team

Corporate Office
Team 4

Team for Fund

Arrangement

Area Team

Team 2

Follow up with
various Agencies

Team 3

Co-ordination with District

Officials for advancing Land
Acquisition process

A group may be formed from the industry and localities to work as

enumerater.

Socio economic survey will be necessary to ascertain number of

people to be resettled and will receive compensation.

Every information group will carry out socio economic survey

involving village Chief, Mukhia or accepted group leader

Associating Panchayat people and Block official for authentication

of records and information.

83

With the objective to restore the income of the project affected

persons, a specific survey to be made before the resettlement. This
would include the income-source and level of income of such persons.

SURVEY

The project design, including an analysis of alternative designs

aimed at avoiding or minimising resettlement.
In order to solve the problem of information loss and
misinformation comprehensive attempts to be made to check the
response of the respondent through secondary interview.
This
approach is to establish the validity of the survey method and
reliability of the responses together.
FOR SOCIO ECONOMIC SURVEY
A.

Name of the Head of the Family

Name of
the Family

B.

Cattle

Age

Skill/
Training

Daily Income

Education

Landed Property

Land
measure

C.

M/F

Block/
Area

Irrigated
nonirrigated

Agriculture
Non-agriculture land

Yearly
yield

Type of
ownership.

Details of Live stock

No.

Daily monthly earning if any

84

Goat
Pig
Chicken Birds
D.

Details of household

Type of House

Plinth Areas
No. of Rooms
Area of homestead land
Area of Kitchen Garden
Trees
Ponds and Annual Yield
From the Socio economic survey the following position will
emerge

No. of persons will lose land of various types. Loss of earning

from land etc.

No. of persons will lose home-stead household.

No. of persons will lose both cultivable land and homestead

land

No. of people associated to land and are beneficiaries of the

land

No. of people who have no land/or homestead land but earn

livelihood from the village land.

On ascertaining the position it would be clear to identify:

Details of Landless People

85

Tribal

From lower strata of social groups

Tenant

Land Labour

This survey followed by an estimation for creation of jobs and

market potential. Thereafter, a specific rehabilitation plan to be
drawn, in term of restoration of income. The plan will contain the
pattern of self employment like Dairy, poultry, handicrafts, shops etc.
The awards of petty contracts are also included in the self employment
programme.
SELF EMPLOYMENT SCHEMES
Schemes

For Whom

Training by.

1. Agriculture &
scientific methods
of cultimation

Land less labour/

Tiller

Mission, Institutions
Non governmental
organisation.

2. Reservoir aqua
culture

People having such

aptitude

State Organisation

3. Development of
green belt nursery

Females having no
landed property. Land
less labour.

District Forest Deptt.

and Environmental cell
of the Company.

Carpentary, Masonary

Young persons of the

age group of 16 and
above

Craft Centre

Weaving/Operating
Hand loom/Cane
basket manufacturing

Female of age group of

16 yrs and above

Cycle repairing/
Watch/TV repairing/
Scooter repairing

Young boys those are

drop out.

Local Vocational
Training Centre.

Brick/Coal briquet/

Persons having skills

In plant training

Trades

86

manufacturing

in clay making

Poultry, Dairy/Goatery

Male, Female over 30

years

Block Office.

Conclusion
Rehabilitation and Resettlement Programme becomes succesful,
when Just and Fair approach is adopted and human aspects are
given priority with the objectives to ensure that the population
displaced by a Project receives benefit from it.
All involuntary
resettlement has to be conceived and executed as development
programme, with resettlers provided sufficient investment resources
and opportunities to share in project benefits.
With action oriented team it will be possible to resolve the
problem of land acquisition and resettlement. The timely action with
human approach will assure a better community life for the affected
people and will generate sense of confidence for successful running of
the Projects.

****

87

15

COMMUNITY DEVELOPMENT AROUND

MINING AREAS
Coal is by far the most important primary source of energy for
industrial growth in our country. With the growth of economy and
speedy industrialization, demand for power is upward. At the same
time due to increased consumption of steel, more coal is needed. To
meet the ever-increasing demand of coal, it is imperative that the
Mining Industry is prepared to manage promising and challenging
situation efficiently. Mining Management today has an obligation and
challenge of different dimension.
With revised wages structure of employees, low productivity of
underground mines, capital investment for reconstruction and
budgetary support almost vanishing, todays management face a very
complicated situation. Moreover, the coal industry has to face political
interferences in day to days functioning, and an overcautious
bureaucratic management style unsuited to the commercial
undertaking. Due to opening up of global market and competition, the
vital need of coal companys today is to enhance coal production. The
management has therefore the tasks for achieving the goals by
maintaining total co-ordination for (a) planning and its timely
implementation (b) adoption of correct technology for planned
production with economy (c) introduction of effective industrial and
human relation policies (d) implementation of community development
programmes for the people of the surroundings mining area.
Today for the purpose of steady and faster growth plans for
development and its implementation in the coal projects appear to be
most important. Today we are living in an era of the most rapid
technological change, industrial world has ever known. Now we have
reached a stage when most operations are subject to some form of
mechanization. All classes of coal can be extracted and loaded by
proved machineries of type with technology to suit most of the varied
condition. Supported by a smart financial approach for managing
finance and cost for the best advancement of mines is essential.
Opportunity will seen wasted unless technical development and
management re-organization are matched by a labour force influenced
by balanced HR Policy and are eager to work with them.
88

Uniform approach for all the steps mentioned, will be necessary to

have an effective result.
The focus in this topics is on community development, a major
approach in the process of advancement and growth of a project.
The coal companies have to open new projects to match the ever
growing demands of coal. Undoubtedly this is a major and tough task
in the days of complicated socio political environment.
For economic growth and in the interest of the nation while new coal
projects are essential, land acquisition and consequent effect disrupts
the traditional, social system and source of livelihood of the people
associated to such land.
Displacement of people involuntarily may rise to severe social,
economic and environmental problems because:
a)
Productive assets and sources of income are lost
b)
Social structures may get disrupted.
c)
In the relocated environment, productive skill of the people
may be less applicable.
Community development programmes adopted for the surroundings
areas and villages help consolidation of favourable tie with the people
and also become essential to deal complicated issues arising out of
land acquisition.
The key element for any organization are people, structure, technology
and environment in which the organization operates.
The objective of organization including coal industry is to achieve the
triple reward system in which human, organizational and society are
met.
For the effective functioning of all role players, people, structure and
technology, it is essential that the objective of each are clearly
understood in relation to the external stimuli, influence of
surroundings social, economical and political environment.
To have better control and understanding of the surroundings the Coal
Industry has to endeavour
to uplift social life and economical
condition of the people residing around the mines area. The common
feelings and aspiration, emotion and motivation of the people residing
in the operating zone of coal mines, revolve around the activities of this
89

institution. It is the social responsibility of coal company to emphasis

on welfare activities for the workers and general people around the
coalfields.
Sometime community development programmes are considered to be
wasteful expenditure. It is also considered to be the responsibility of
the local Government to ensure development work in villages. It is also
the views that the revenue earned by the state Government from coal
industry should be utilized partially for village development. While
some suggest, that coal company should concentrate in their business
of coal production only.
It is to be noted that coal employees earn fairly higher wages, have a
better living condition with free supply of power, water and free
medical treatment for the family. Since most of the mines are situated
in far off areas having rural base, many villagers are also employee of
mines who reside in the villages. The company do not have to
construct house for them nor, arrange free water and power supply.
Many village link roads are used by the mines authority for movement
of transport.
Moreover due to industrialization, the age old rural environment gets
often transformed to semi-urban environment within a short spell of
time and usually follows with rise in cost of living. The traditional
sources of income is likely to be reduced and in most of the cases, the
persons affected, face difficulty to cope with the new situation.
Subsidence also do occur sometime in the villages over old workings.
All these aspects create regional imbalance. Often comparison is
drawn for the economic status between the villagers and coal workers.
Many a times the prosperity and facilities available to project people
evoke hostility, resentment amongst young people who live in a substandard condition with uncertainty in earning their livelihood.
Sometime it become a potential threat and on any plea project work
get dislocated by disgruntled group.
These days part of Assam, W. Bengal, Jharkhand, M.P., Orissa,
Chhatisgarh, Maharashtra, Meghalaya are witnessing insurgency due
to unemployment, economical imbalances. Most of the coal mines and
projects are operating in these states. Some projects of the coal
companys have faced recently incidences of kidnapping of executives
and looting of magazine house to remove explosives for extremist
activities.
90

If losses are calculated due to dislocation of production process

initiated by villagers or none co-operation to hand over required land
for new projects in time, then the amount will run in to crores of
rupees. The budget, however, for implementing CD programmes will be
much less in comparison to the losses to be incurred. The public
sector has been a part of the philosophy of socio-economic
development in India. Public Sector has
i)
ii)

To give an adequate return on investment to the Nation.

To generate surpluses to help in the socio-economic
transformation.
To generate additional employment.
To promote balanced regional growth.
To help develop ancillary industries.

iii)
iv)
v)

Micro-socio-economically, these objectives are stated to be to

accelerate the process of economic development both in industrial and
agricultural areas and to give the country a self reliant economy to
bring about better distribution and reduction in inequalities in
incomes and the removal of poverty.
With the community development programmes in the villages, greater
support is earned by project authority. It develops a common
platform through which understanding will be much more effective
and clear between both the groups.
For establishing better image it is necessary that following community
development activities are initiated as regular feature in the
neighbouring areas:

Diversion of mine waste water for irrigation purpose.

Excavation of pond by involving villagers.
Development of community building, library with matching
grants.
Development of village link road, green belt with medicinal
plants in the waste land.
Opening of health service unit in co-ordination with district level
health services agencies.
Family welfare scheme, organizing free eye operation camp, to
encourage State Government Health Programmes.
Installation of hand pump, tubewell where needed, sinking of
well.
91

To initiate ancillary work activities which may generate

employment opportunities for the village people.
Such other jobs for the benefit of the Community like training
for poultry and fisheries.
Organising sports activities for handicapped people and for
economically backward community.
Scheme for Protection of Environment

Protection against possible subsidence.

Suppression of dust and elimination of noise.
Developing green belt over wasteland.
Blanking of underground fire.

Community development is a step followed by management with

modern outlook. This is rational approach and a measure for
protection and growth of projects. It is to be taken as an aggressive
agenda.
Our common interest is the mine, the people who live by it and the
community which exists around it. From our common interest, we
hope to evolve common affections and from our common affections
thus created, if not common opinions at least a greater identity of
purpose and closer unanimity of outlook will evolve.
No man can act with effect who do not act in concert
No man can act in concert, who do not act with confidence
No man can act with confidence who are not bound together with
common opinion, common affection and common interest.
Edmund Brooke
To initiate community development work is to grow with the
Neighbour. Some portion of wealth so generated by the project, can be
shared with the citizen of our country, who live in rural village and
have not received minimum facilities from the society.
With action oriented inspired team, having positive attitude to risk
taking, regard to ethics, concern for surrounding people, freedom to
manage with clear frame work of necessary restriction and tight
control over the areas that matter, will definitely lead the coal industry
to success.

92

16

OUTSOURCING - A STRATEGY
For turn around of Sick Industry

BACK DROP
The Indian economy was highly protected from stiff competition of the
global market forces till the mid eighties. Though a strong foundation
of the economy was laid by the public sector undertakings, many of
the PSUs failed miserably in achieving commercial success and
became inefficient units.
Till recently, the Indian market was having limited opportunities
because of too many government controls and restrictions. The
government introduced a series of reforms in its economic policies
from July, 1991.
With rising import cost, inflation and reduced purchasing capacity,
many industries are facing recession. To stop excess money supply,
government had to cut its expenditure in many areas and this resulted
in spiraling recession as government is still the major buyer.
Increasing competition from within and abroad has led many
companies to reformulate strategies to survive and succeed.
Every individual organization, government face a single choice, that is
to think re-think the future or be compelled to think future. Those
who choose the first option have fair chance to prosper. Those who
choose second will be overtaken by changes.
With the rapid change in economy, the management of business
assumes greater importance and has to adopt unconventional
approach to stay in the competition.
Fast change in the market behaviour and accelerated technological
advancement has forced business organization to optimize its all
activities with maximum utilization of its resources.
The preparedness of organization to meet the growing changes has
become the major task and the focus areas. Therefore would be to
looking for qualitative improvement in the performances through
concentrating on (i) Core business, (ii) Cost control and (iii) to compete
with others for the favour of customers.
93

1.

Main objectives of Industries :

2.

Obligations of
undertaking:

3.

Steady improvement in production both in quantity and

quality.
Improved productivity through effective working system.
Efficient marketing.
Adequate return against investment.
Investment for future growth.
Constant reputation.
Nationalised

sector

and

public

To follow guidelines and Govt. directives issued from time to

time.
To be in touch with the concerned Ministry regarding
production target, performances and achievements.
Accountability before public.
Open for scrutiny and investigations.

Effect of globalisation liberalization:

Rapid economic transformation and change in business

approach.
Challenges in changing scenarios.
Competitive market.

Tasks:

4.

Sector

Higher production & productivity

Reduction in cost
Customers satisfaction
Gainful utilization of men at work
Proper planning, effectiveness, implementation

Some PSUs have registered high growth and profit:

Results of many PSUs however tell different stories:
94

5.

Why

Low productivity
Low efficiency of Men-Machines
Under utilization of manpower
Huge accumulated loss
Price hike at regular intervals
out sourcing :

For economic benefit

By loss making companies
Of certain jobs involved in the chain of production process

What our sourcing of activities means. It is in any business

process off loading of jobs to other companies or agencies related to
upgradation of
(a)
(b)
(c)

Technology
Skill
Production process

To execute for a certain period on a mutually agreed upon

compensation for which industry no longer wish to carry out.
6.

When

High cost in running certain production related activities.

Lack of funds for technologically up gradation of system
and production process.
Inherited restricted work practice.
Non availability of desired skill, expertise with the
employees or equipments, technology.

How

Risk sharing with other companies agencies

Hiring of equipments with operators

Deployment of Heavy Machines by company on the

basis of agreement

Which
95

7.

Outsourcing such work which can be quantified and

measured

Safe and economical

Logical and will have lesser confrontation with labour

laws

Out sourcing of services/jobs in major organisation

Jobs off loaded

Railway

Erection, extension,
bridge, pool,, catering

construction

of

Power

Erection,
installation
of
machines,
assembling of components and parts

Oil & Gas

Exploration, drilling

Coal, metals, minerals

Exploration of reserves, erection

structures, drilling, excavation

Telephone

Manufacturing of components

Private companies dependent on out sourcing for major jobs :

IT, TV, Radio, Transister, Air-condition, Fridge, shoes
components, accessories, packaging, etc.
8.

of

for

Impediments :
Resistance from workers union representatives for :

Apprehension of de-nationalisation or privatization of

industry
Provisions of laws
Mental barrier
Fear for redundant of employees

96

Coal industry has been passing through a critical phase. Production of

required grade of coal and its regular distribution has become the
major task before the coal Companies. Of late, the coal market has
been fluctuating, which has led to financial set back in many coal
Companies.
With the shrinkage and less paying capacity of coal consuming
industries, a void has been created resulting sudden financial crunch
in some of the coal companies. This situation has created vicious
circle. To break the vicious circle the company is needed to gear up to
meet the situation.
The focus on quality through continuous improvement is the key
concept to perceive the production process as an integrated system
that originates with the customer and ends with the customer.
This industry of such large magnitude with varieties of problems needs
to have clear plan and specific mission which will spell out status of
the industry, the structure of organization and the standard of
managerial teams of the next few years. The coal industry has to be
ready to meet the challenges of future changes.
9.

A story of turn around of a Sick Coal Company.

No. of mines raising coking coal were run by various

private companies with the philosophy of more hole
more coal
In 1972, mines were taken over by Govt. of India. Along
with permanent workers, a large number of temporary,
badli, casual and contractors men came into the roll of
nationalized coal Company.
Coal at any cost, was the initial philosophy. Huge
manpower, low productivity, heavy absenteeism,
revised wages, poised a severe threat to the Company.
In nineties with budgetary support from Government
almost vanishing, modernization and expansion of mines
become difficult.
Not easy to generate huge amount from internal sources
making it obligatory to go for price like from time to time.

Major set back

97

The reduction of import duties on coking coal from 85% to

35% and later 3% triggered the alarm bell.
Close on the heels, the prices of coal declining in the
international market and reduction in the imported duty
made the imported coking coal more attractive.
Raising of coal of required quality and quantity.
Accumulated loss led to negative net worth and in 1995 the
Company was declared sick and referred to BIFR.
Revival for Survival

Action plan

Reduce cost on controllable item.

Increase production & productivity.
Impose discipline, settle land issues for opening new
project.
Purchase of safety items given priority.

Due to loss and fund crunch

Delay in payment of salary, statutory dues of workers.

Delay in purchase of stores item became a normal feature.

Revival
plan
was
not
easily
accepted
by
the
union
representatives.Alternative suggestions from them were : ask for more
subsidy from central government, higher wages to be given to the coal
workers in view of implementation of 5th Pay Commission for
government employees, resistance to manpower rationalization.
It was difficult for the union representatives to break the barriers to
their traditional concept and overcome mental blockade.
The financial position over the years was such that no incremental
improvement could save the Company. It needed obviously dramatic
improvement in a shortest possible period.
Speed, cost control, quality and drastic steps were the only remedies
left.
The management union highest committee started
collieries/Areas project and the real picture emerged.
98

visiting

The mind set and attitude changed and employees derived pride on
their achievements.
The Safety measures were essential

To tackle fire, subsidence and to stop illegal mining carried out by

unscrupulous people

It was not possible to arrange departmental machines to deal

with fire, subsidence and to stop illegal mining At the first
phase.
Union were convinced and hired machineries were deployed in
the affected areas, especially in the patches situated beside river
Damodar.
Drilling machines on hire was also engaged.
Union representatives were acquainted with the Companys
financial position.
They allowed out sourcing in a few projects on the basis of
Risk sharing
Hiring equipments with operators
Shifting of coal through hired transport from
quarry coal bed to surface.
Repairing of heavy machineries.

With a view to carry out these jobs, Ministry of Coal was requested to
take up with Ministry of Labour for exemption.
Result : The Company has reached break even point from January,
2005.
The average losses were as under :
In
In
In
In

2001-2002
2002-2003
2003-2004
2004-2005

Rs. 1200 crore

Rs. 700 crore
Rs. 300 crore
each Break even point (from January 2005)

The workers were not declared redundant.

99

They were trained retrained and used gainfully against the

various jobs caused due to retirement.
U/G employees trained as SDL Operators and for other skilled
jobs.
Payment of statutory dues are being made uptodate now.
Timely wage payment to workers.
Likely to register profit in the year 2005-2006.
Determination and joint effort of both management and workers,
with proper plan, its effective implementation and co-operation
from Govt. Labour deptt. can bring turn around for a sick
company faster.

This leads to growth

As active partner, unions contribution toward creating positive
working environment yielded result.
With action oriented, in formal team, it will be possible to keep units
working together. A positive attitude to risk taking, outsourcing of
jobs, freedom to manage with clear frame work of necessary restriction
and tight control over the areas that matter, will definitely lead the
industry to success.

100

17
Discipline A key factor
for organisation

The Aim of every organization is to secure growth a steady and

positive Growth.

It is achieved through major supporting factors of (i) Principle (ii)

Planning, (iii) Policies.
i)

Principle : The direction and course the organization will

follow

ii)

Planing

iii)

Policies : of handling Money Machine Materials

Manufacturing Marketing Method Man and Management

: of process production permanent profitability

The basic ingredient for management functioning are : Rules System

Guidelines and proper control of these aspect. Men engaged in the
organization are to follow these rules and system- which contribute in
developing working environment and discipline.
Discipline is a key factor in the organization. (i) Obedience to rule is act
of discipline. (ii) It is sheer conformity to rules of the organization
willingness to work adhering the accepted norms of the organization.
On the other hand
Disobedience violating rules is a mark of indiscipline. Indiscipline
causes dislocation in working spirit system environment.
Maintaining discipline is important in the organization.

Misconduct:
Act of breaking the discipline is misconduct any conduct on part of
an employee inconsistent with the faithful discharge of his duties
towards the organization would constitute misconduct.
Whether it is violated or not is to be decided in reference to Rules of
Discipline which can be found in :

101

i)

Standing order

ii)

The customs and usages

iii)

Settlement or Industrial Award

iv)

The contract of employment

Breach of discipline in organization invites disciplinary action. When

an employee indulges in indiscipline and thus commits misconduct,
the authority responsible for controlling management and maintaining
discipline reviews the position and may choose to initiate process of
disciplinary action against the erring employee.
This is done basically
(1) To maintain discipline, (2) to rectify the attitude of the concerned
employee, (3) warned cautioned or penalized depending on the
gravity of the charges so proved. The desired result is achieved only
when course of action taken is based on fair approach and just
punishment awarded.
The highest judicial authority in the country has recognized the right
of the employers to maintain discipline in the industry and to take
proper action in a fair manner against erring employees who indulge in
misconduct.
Steps: The starting point is always the receipt of a complain from
superior or co-worker on misconduct committed by an employee.
ON RECEIPT OF THE COMPLAINT, SECOND STEP WOULD BE
MANAGEMENT TAKING A DECISION ON VARIOUS ALTERNATIVE
OPEN TO THEM, MANAGEMENT MAY CONDUCT AN INFORMAL
ENQUIRY MOSTLY ORAL, PRELIMINARY ENQUIRY OR AN
INVESTIGATION OF THE COMPLAINT AND TO DECIDE AS TO
WHETHER OR NOT TO PROCEED WITH THE DISCIPLINARY
ACTION.
Once it is decided to proceed for disciplinary action, charge sheet is
issued against the employee.
102

Charge Sheet is a word of law. In framing charge sheet it is necessary

to mention ingredient of misconduct and aggravating circumstances
relating to misconduct.
Employee must be informed clearly, precisely and accurately of the
charges level against him. As far as possible stick to the words of the
standing order of the organization.
The certified standing order generally specify as to what act would
constitute misconduct. In absence of certified standing order model
standing order to be followed.
The purpose of charge sheet is to give timely notice to the concerned
employee to explain the charges leveled against him. It should not give
the impression that the issue has been prejudge.
In an ideal organization disciplinary action is regarded as a rarity. It
must be resorted to when all other positive means like advising,
counseling, coaxing etc. are exhausted.
If such action are adopted as regular ritual, they will have adverse
effect on the production and Administration. Regular mass scale
disciplinary actions create insecurity in the minds of the employees
and industrial relation get distributed also.
In brief, disciplinary action must be used as the last weapon and not
the first.
While framing charge it should be mentioned:i)

Who was committed ? (name of the employee with

designation, department)

ii)

When was it committed ? (date and time)

iii)

Where was it committed ? (place and department)

iv)

With what means ? (give description of the means used in

committing the misconduct)

v)

Who have been affected ? (property, organization or

individual)

vi)

How was it committed ? (Modus operandi)

vii)

With what consequences ? (Injury to individual, damage to

property, work disruption etc.)
103

viii)

Why should he be punished ?

ix)

Within how many days he has to show cause (explain) against

the charges ?

x)

What is the consequence of non-submission of reply to show

cause letter.

Vague and alternate expressions should be avoided and all necessary

particulars should be furnished. For example, where an employee has
abused his superior officer, it is advisable to give the actual words
spoken by the employee.
In case of charges for negligence, acts subversive of discipline,
disorderly behaviour, intentional neglect of work etc. facts constituting
the misconduct should be given. A simple charge that an employee has
neglected the work will not be sufficient.
If the employee has done something in relation to a person, for
example, either beaten or insulted him, then the same should be
mentioned together with other details i.e., all aggravating
circumstances relating to misconduct should be mentioned.
If the misconduct is habitual negligence or habitual absence, then it
will not be sufficient to mention that an employee has neglected duty
for a day or has absented himself on a particular day. The reason is
that there are various finer distinctions between the meanings. It is
not necessary to mention the sub-para of Standing Orders under
which a particular misconduct might fall as the Standing Orders are
generally loosely drafted and misconduct mentioned in various subparas may be overlapping one another.
As long as the details of charge have been mentioned, not mentioning
the sub-clause will not be prejudicial to the charge sheeted employee
and also it will not invalidate the charge Sheet.
i)

the employee proceeded against has been informed clearly of

the charges leveled against him.

ii)

The witnesses are examined ordinarily in the presence of

the employee in respect of the charges.
104

iii)

The employee is given a fair opportunity to cross examine

witnesses.

iv)

He is given a fair opportunity to examine witnesses including

himself in his defence, if he so wishes on any relevant matter
and

v)

The enquiry officer records his findings with reasons for the
same in his report..

Todays worker
i)

Is more rational, conscious,

knowledgeable and vocal

demanding,

ii)

He plans his career, works in that direction.

ambitions,

It has taken years for labour and management to bid farewell to class
conflict and accept each other as partners in industry. Rate of
Socio0political, socio-tehnological, socio-economic changes today are
much faster than ever before. There has been change in the concept of
discipline and the management. The authority vested with power to
enforce discipline by dispensing justice has to give due importance to
the rate of change and keep abreast with the latest in all aspects of
discipline.

Due care should be taken while deciding for disciplinary action

no ulterior motive should be allowed.

Punishment out of proportion should not be awarded.

Basic error in the fact should be avoided.

Observance of principle of natural justice

precondition for finding of rights and liabilities.

In short, no man shall be condemned unheard. Impartiality and

fairness should be the guiding principles in conducting enquiry.

To act with good faith and honesty the decision has to be

impartial.

Compassionate
circumstances.

decision

may

105

be

taken

is

the

according

basic

to

the

Industrial relation and productivity should be taken and care

and adjustment for good worker to be made.

There should not be any apology or regrets in punishing

erring employee whoever he may be.

an

APPELLATE AUTHORITY
The delinquent may approach the Appellate Authority in the
organization against the decisions of the Disciplinary Authority. The
Appellate Authority should apply its mind not only to the points raised
by the appellant but also other related points incidental to or
connected with issue.
In regard to duties and functions of Appellate Authority decision of
High Court of Karnataka in W.P. Nos. 1863 & 1864/1987, dated
November 18, 1994 is cited below.
Disciplinary proceedings Appellate Authority Duties and functions of
Appellate Authority Mechanical Stereo type order Appellate Authority
dealing with removal from service or dismissal cannot pass mechanical
orders Appellate order must be capable of being sustained of its own
and it should be a self sustained one Appellate order is completely
independent order Functions of Appellate authority is totally different
from original Authority Appellate Authority should set out specifically
and precisely grounds on which charges are passed and punishment
justified.

106

18
INDUSTRIAL RELATION
1.

It is important in accelerated rate of progress

which is not being witnessed, that Management
and men should take one another into confidence
and go forward with a joint understanding of
what is to be undertaken.

2.

Oppoturnities will seem wasted unless technical

development and Managerial reorganisation are
matched by a labour force eager and able to work
with them.

Industrial Relation

NTERPRETATION of laws, wages and allowances, promotion,

placement, working condition disputes, legal matters are the
major aspects of Industrial Relation.
Matter related to Industrial Relation problem in coal mines
should have been fewer in number. With the implementation of Wage
Agreement and timely payment of wages and allowances, there remain
hardly any scope for adverse IR in the industry. Even the IR problems
do arise because of delay in implementation of agreement, dispute in
interpretation of wage part, legal matters, labour court cases,
disciplinary action.
Certain issues of Industrial Relation problems lead to sudden
strike and stoppage of work. These sort of actions, however, are
detrimental to industrial progress. A suitable Industrial Relation
machinery in the colliery may tackle such issue and with joint
consultation with various functioning unions, both formally and
informally, may ensure congenial Industrial Relation in the mine.
Desired response may not be available all the time but once the
employees are made to know the economic status of the mine, its
commitment and need to earn revenue to meet up various expenditure,
support and effort from workers side will be available.

The principal aim of management is to conduct the business of

the undertaking successfully. Good industrial relations need to be
107

developed within the framework of an efficient organisation and they

will in turn, help Management to achieve this aim.
One of the Managements major objective should be, therefore, to
develop effective industrial relation policies which command the
confidence of the employees. Manager, at the highest level should give
as much attention to Industrial Relations as to such functions as
Production, Finance, Despatch, Engineering. Good industrial relations
are the joint responsibility of management and of employees and trade
unions representing them. But the primary responsibility for their
promotions rest with the Management. Colliery Managers, therefore,
have to take initiative in creating and developing them.
Managers should see that like them, junior officials including
Supervisors should receive training in the Industrial Relation
implications in their jobs.
Effective organisation of work is an important factor in good
industrial relation.
Manager should, therefore, ensure that (a)

Responsibility for each group of employees is clearly defined in

the organisational structure

(b)

Each under official understand his responsibility and has the

authority and training necessary to do his job.

The supervisor is in key position to influence industrial

relations.
Managers should ensure that :

Supervisor is properly selected and trained;

Has a charge of group of workers to that size which he can

manage effectively.

Is fully briefed about Managements objectives.

No Colliery Manager can hope to be successful completely unless

he has given much thought and study of Industrial Relations. It is a
108

wide subject but establishment of congenial Industrial Relation

become easier if the mine Manager develops attitude of free, fair and
firmness.
It has become almost impossible for any Manager to know off
hand all the details of Labour Laws or Agreements. But he should
make himself acquainted with the main Acts, Laws and Agreements.
There are, of course, many facets of Industrial Relation and
improvement can be achieved if one concentrates on the following
aspects:

Environment

Implementation of Agreements

Welfare activities for employees and their family

Recognition of employees capacity and their ability.

In the widest sense, Industrial Relation do not confine only to

procedural matter such as collective agreements and negotiating
machinery. It is also concerned with human relations and, therefore,
with the policies which directly affect the individual employee in the
performance of his job, the effectiveness of Industrial Relation policies
depends on two main themes (a)

The vital role of collective bargaining carried out in reasonable

and
constructive
manner
between
employees
and
representatives of trade unions.

(b)

The importance of good human relations between employer and

employees in every working unit based on trust and confidence.

Management need to use its resources efficiently, while

employees look for sincerity in the employer, continuity in the earning
and satisfaction in their jobs. Both have common interest in the
success of the organisation because without which their aims will not
be achieved. But some conflicts of interest are bound to arise and,
with good Industrial Relation those can be resolved in constructive and
responsible way e.g.
(i)

where appropriate, to maintain jointly with unions concerned

effective arrangements for settling disputes
109

(ii)

to take all reasonable steps for use of agreed procedures and

(iii)

to identify trend of Industrial Relation, collection and analysis

of information and remedial measures worked out.

For effective Industrial Relation measures required to be taken

are mainly Negotiation, Consultation, Collective Agreement, Decision
making.
Task for negotiation is an important part of the management
process. Demands are made by group and unions of employees.
Many a time, due to lack of proper attention, situations go adverse and
Managers find longer time to handle matter. Effective negotiation is an
important aspect.
Negotiation should be held with free mind and all sincerity. Any
type of over-cleverness has dislocated the process and the negotiator
loses his credibility.
It is necessary to
1. Create Environment
2. Bringing out the real demand and
3. To decide priority of demands.
Manager would be wise to study the art of negotiation - for this
is indeed an art. For negotiation purpose, a Manager should 1.

Maintain jointly with trade unions effective arrangement for

negotiation, consultation and communication for settling
grievances and disputes.

2.

Before meeting workmen or union officials about any question

or points, a Manager should make sure that he has all the
correct information on the matter to be dealt with. The word
correct is emphasized because there is nothing more
disconcerting than to find in the middle of a discussion that he
has been urging on the basis of something which is not a fact.

3.

As far as possible, the discussion should be kept to the point.

This will save time and often temper.

4.

The Manager should never become personal to anyone during

110

the discussion and never allow anyone else to become personal.

This will save lot of ill-will and bad-feeling.
5.

The Manager should make sure that all present understand

what he is saying. Use the simplest language and explain any
technical details in a way that will be understood by all.

6. If solution is reached, make certain that what has been agreed is

understood by everyone. This can prevent many misunderstanding and the resulting trouble.
7. The Manager should try to see both sides of any question and in
making decisions try to hold balance evenly, thus being fair for
both the Company and the workmen concerned.
8. It will be found that the easy solution to an employees problem
is seldom the correct one and it is very wise to keep in mind that
these problems concern directly men and not machines.
9. Colliery Managers are faced today with many problems which
become more and more complex as time goes on. They cannot
hope to deal with all these themselves and if they are to do their
jobs efficiently, Managers must make full use of service
Departments.
Every worker in the mining industry has a stake in its well
being. Everyone has the right to say how he thinks the work of colliery
can improve. Management for better running of the colliery, may like
to hear the ideas, suggestions and constructive criticism. This can be
done most effectively through the machinery of consultation - when
Management and mine workers meet to discuss problems and policies,
good ideas continue to emerge. Consultation mobilises the collective
common sense of everyone and provide a means to put it to good use.
Success in consultation depends on the men and the method - on
what sort of men are in the joint consultative committee. Consultation
is based on mutual respect. The idea is not to impose ones view
points but to try to find a common view and the right one, of course.
Those sitting in Consultative Committee, should work as a
Team.
The range of possible topics for a colliery is very large. If too
many different subjects are raised at one meeting, there will be not
enough time to deal with them properly. The important thing is to
111

make sure that committee discuss that really matter at the pit. Such
points should be presented properly so that the meeting do not become
a dull routine.
Consultation cannot succeed without full and accurate
information. Most disagreements arise because different people know
different parts of the facts about a subject.
There must be enough accurate information to spot weakness
and scope to consider how to put them right. However, information
required to be presented in time, so that committee members can
digest and concentrate on points.
Good committees are always
anxious to get the view of specialist, who may be often invited to attend
the meeting and answer the questions.
Managers can solve many problems if in a colliery such
environment can be created where consultative committee work
effectively and meaningfully.
The co-operation and involvement of the employees required in
(i)

maintaining output and productivity

(ii)

improvement in underground productivity

(iii)

coal face organisation

(iv)

safety standard

(v)

loading points, quality loading

(vi)

manpower utilisation

(vii)

welfare and

(viii) economics.
Consultation
Success in consultation depend on the men and method.
Consultation in the coal industry has been practised most
effectively through consultative committee and councils. Consultation
means jointly examining and discussing problems of concern to both
management and employees. It includes seeking mutually acceptable
solution through a genuine exchange of views and information.
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Consultation is successful when this is based on mutual respect

between the participants from either forum of management and trade
union.
The discussion on a topic should be full, frank and free. It
should be so conducted that talk keeps to the subject under
discussion. Whether the topics are on production, productivity,
accident accurate information needed to spot the weaknesses and
consider how to put them right.
The area of conflict are to be sorted through consultation and in
the area of agreements, immediate steps to be taken. We must
remember that in our country we are to look after a large population, a
certain percentage of those are not having square meal a day.
Therefore, those are having means to earn through the industry, they
should learn to take total view of the economy, rather than a sectional
view.
People
Trade unions in our country have a social responsibility to day.
It must be also understood that workers are the section of community
and no sectional interest should be such which may jeopardize the
interest of the community as a whole. Promotion of the workers must
be upto that level so as to harmonise with the larger interest of the
community.
With some section of the management there has been an
attitude in terms of Master. There need to be change in such attitude
and for developing a favourable environment the management group
has to take initiative without any preconvinced ideas and conventional
thinking.
Perhaps the most significant feature of our social and normal
philosophy is that we tend to define our basic human impurities
mainly in terms of right. We speak and think of human right,
constitutional right, political rights, trade union rights, labour rights.
The whole motivation of social behaviour clamour for rights, which we
use to assert as our due. The demand for rights act as fuel for the
machine of our ambition and at the present situation generate friction
and discontent..
If we are to develop environment, for achieving the goal of the
industry, what is needed then is to reverse the work of restlessness
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and frustration. If for instance, Management felt that the onus of

improving workmen lot rested more on management than labour
demanding them, and if the workmen sensed the urgency of
deliberating on how better to serve the industry by increased
productivity and a greater pride in work, possibly the industry may
overcome economic crisis.
In a Public Sector, instead of ascertaining rights at the expenses
of others, one has to assert duties in own expenses.
In the past most of the organisation theory had expected
individual to conform to the wishes of organisation. Now it is having a
reverse trend, organisations have now to conform more to the wishes
of its member.
A positive trend, however, can be developed in this situation
through participative management. The result can be achieved, once
people are involved in a positive way instead of merely in a reactive
way.
The test of our leadership must be whether all the various
organisational and bureaucratic management tools are on switches or
off switches. It is needed to assess repeatedly, whether the effect on
people is to get them willingly and freely to accept the challenge or to
turn their wit, ingenuity and energy to defeating the intent of the
system, which we seek to manage them. The future need is to have
federation of freely committed willingly, self-aligning people, conscious
of their own freedom, choosing to commit themselves to the
achievement of shared common goals and to be able to use their own
individuality to help the group.
Motivation
A world without change is a world without hope. To reject
change is to reject to-morrow. Mind works only when it is open.
To get the right impact, the right motive for every employee, we
have to find out a common denominator. The crux of the motivation
question and effort is to create and maintain a climate, in which the
people want to contribute their energies and talents towards the
industrys goal. It is in the nature of man to be creative and try for
achievements that gives him satisfaction. Success becomes second
alternative when all levels of management speak the same language.
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If people are not treated and do not enjoy their work and
consider it as necessary evil, then there is bound to be conflict, it
would lead to discontentment amongst people - inefficient
organisation, poor productivity and, in turn again loss for the mass.
In an atmosphere of participative management, people function
better. When they are a part of decision making process at levels both
below and above.
Democracy is only possible when the members themselves and
they alone own and are responsible for the control of the reasons of the
enterprise.
Betrand Russel compares to be a billiard ball whose relation to another billiard ball is only
co-existence or collision. But men must learn to enter into each
other and work in harmony with each other in co-operation and
team spirit. This is achieved through spiritual growth from
individuality to personality.
Human values manifest spontaneously in man as person. When
man as person as an enlightened citizen, becomes an employee of
public service institution, human value become prominent and enrich
the work qualitatively. If the employees are taught and inspired to
devote themselves for countrys betterment through improvement of
the industry, result will come. This may be achieved through the
following values:(i)

Service to Nation

(ii)

Fairness

(iii)

Continuous struggle for betterment

When work is done with a citizens mind and attitude, the work
does not become drudgery but it elevates both the work and workers.
Such persons will not think himself/herself as an employee only,
but as a free citizen of the country, performing a particular task and
service for the people at the call of nation. Thus work is transformed to
worship, transformed to mission and also as National Commitment.
From being a mere employee or paid servant employee turns to an
instrument of human purpose.
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PHILOSOPHY OF INDUSTRIAL RELATION

The background of Management aspects with
Philosophy of Industrial Relation in brief are as follows :

regard

to

Weber (1864-1920)
Weber was a German Sociologist, Philosopher whose theory of
bureaucracy is often presented alongside the work of administrative
management writers as Fayot, Gullick and Urwick. He was not a
Manager, or Engineer but his interest was in the process of social
change and in particular, in the effect of rationality on religious
thought and capitalism.
The Weberian Model
For Weber, the bureaucratic form of organisation possessed the
features of specialisation, heirarchy, rules, impersonality, full time
officials, career focus and a split between public and private activity.
Taylor (1903-1958)
Taylor was the one, who proposed the theory of scientific
management. Time and motion study techniques gave Taylors ideas
the claim to be a science. He based his work upon the accurate and
scientific study of unit time. His aim was to increase productivity by
improving the performance of the workers by selecting annual tasks
and fragmenting them into their simplest and smallest components.
Administrative Theory
The primary focus of this theory was the types of specialisation
and hierarchy which would minimise the efficiency of organisations.
Administrative management is built around four key pillars.
They are :

The division of labour

Scaler and functional process

Organisational structure

Span of control
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Additional concepts are :

Discipline, unity of command, unity of direction, remuneration,
the sub-ordination of individual interest to common interest,
centralisation and Espirit-de-Corps.
Human Relations
This idea arose from the American wish to humanize the society
without interfering with free operations of market forces.
The main proposition of Human Relations are :(a) A focus on people rather than mechanics or economics.
(b) People exist in an organisational environment rather than an
unorganised social context
(c) To motivate people.
(d) Motivation should be directed towards teamwork, which
requires both co-ordination and co-operation of the
individuals.
(e) Human relation seeks to fulfill both
organisational objectives simultaneously.

individual

and

(f) Both individual and organisation seeks for efficiency i.e.

minimum input and maximum output.
Neo-Human Relations (1950)
The basic idea was that, above all, the worker wanted the
opportunity to grow and develop on the job. The writer visualised this
idea to be the one which would bring an end to industrial conflict.
This is when the workers are given responsibility and do meaningful
work, their attitude towards Company would be entirely positive and
would share goals of the management.
Abraham Maslow (1943)
Need hierarchy of motivation theory :
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Maslow presented his theory of human motivation based on

hierarchy of seven sets of needs. He addressed social issues in terms
of the effect of social factors upon the mental health of individuals.
His idea was in the realm of science or prescience rather than personal
philosophy. His theories were never conceived with management or
organisations in mind.
Dauglas McGragor (1960)
Theory X to theory Y :
McGragor shares with Maslow the distinction of having an
incorrect interpretation of his theory gain wider circulation than his
original ideas. He presented a set of assumption about human
motivations and behaviour which he said were implicit in management
literature and practice. He named these Theory X. It said average
human beings disliked work and would avoid it. That because of this
people had to be coerced, controlled, directed and threatened in order
to get them put their efforts to achieve organisational goals.
Finally, the individual wished to avoid responsibility, had little
ambition, wanted security above else and preferred to be directed.
These led the managers to rely on promises, rewards, incentives or
threats and other coercive devices.
Fredwick Herzberg (1959)
Motivation Hygiene theory :
Said that two sets of variables (called hygiene factors and
motivators) together influenced worker motivation. What he did not
say was that hygiene factors were less important than motivators.
Renesis Likert (1967)
System 4 theory :
He said that democracy paid in Management. He advocated the
integration of individuals into the organisation through groups, which
in turn, were integrated into the organisations officials structure of
decision making by being made to overlap by means of their
continuing linking-pin members who belonged to more than one
group.
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Likert sought to establish a single cause linking peoples attitude

and performances. His theory emphasized connecting of work groups,
their interactions and practical considerations of profit and loss. The
measures he used for scoring the dimensions of human organisations
were motivation, communication, interaction, decision making, goal
setting, control and performance.
Robert Blake and Jane Morton (1964)
Managerial Theory
Grid theory owed a strong intellectual debt on studies of
leadership which examined the dimensions of consideration and
initiating structures. The Michigan researchers first conceptualised
two leadership dimensions which were employee orientation and
production orientation. These were independent and leader could be
high or low or both.
Chris Argyris (1964)
Goal congruence theory :
The basic idea was the necessity for organisations to create
circumstances in which adults could develop healthy personalities.
This self-actualisation theme was the heart of neo-human relations
movement.
Paul Mersey and Kenneth Blanchand (1969)
Situational leadership theory:
It is originally called the life cycle theory of leadership which
used a contingency approach and stated that the effective leadership
style was the one that fitted the particular situation.
Guru theory
A close observation to this theory gives credence to Hellers
(1990) suggestion that the central contention of this Management idea
is that the only object of business is to compete with others for the
favour of customer as kind.
Since Guru idea relies for its
authorisation upon the individual who developed and popularised it,
the term of Guru theory is used to refer to these different
119

contribution that have been influential for the past years. Among the
best known academic management, Gurus of 1950s and 1960s, are
one Michael Porter (competitive advantage), Kenneth Blanchand (one
minute Manager), William Ouchi (Theory Z).
The second category of Gurus are consultants among those
Australian born Peter Drucker is the best.
The third type of Gurus are
hero-managers.
They are
successful Chief Executive Officers (CEO) who have committed their
thoughts to print.
The Profit and Productivity oriented ideas of Business
Management practised in USA and other countries of West for
the last few decades produced a number of go-getter Managers,
whose only aim was to bring material success at any cost. Ethics was
either ignored or given the second place. In 1985, Peter Drucker in his
book The Changing world of the Executive wrote ........... there is only one code of ethics, that of individual
behaviours, for price and pamper for rich and poor for the
mighty and the weak alike.
Ethics in the Judio-Christian tradition is the affirmation that all
men and workers are alike creatures.
In 1988, new thoughts emerged.
Kenneth Blanchand and
Vincent, Peals brought out a book - The Power of Ethical
Management. It is written on the cover of the book that - Integrity
pays. You do not have to cheat to win.
By 1989, value free and profit oriented Management started
cracking. Americam business began to go down.
By 1980s, Japanese had completely upset the US industries and
Management. Japanese are highly patriotic and the common slogan is
Long Live Japan. They accepted all work as meditation.
In the book The Art of Japanese Management by Richard
Tanner Pascale and Anthony Gathos, spiritual values have been
discussed.

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Western concept of Management based on Western concept of

man, where man is born sinner, the Greeks thought of a man as
political animal etc.
The Indian ethos disrules this and its concept is man as
Amritasya Putra,son of the heavenly father.
According to
Vivekananda, man was power of endless dynamism - Arise, awake
and stop not till the goal is achieved.
Vivekananda brought a new idea of service as the means to both
individual and collective perfection. He defined The National ideals of India are Renunciation and service, a new
ethos to work a new Sadhana for bringing prosperity in the
national life.
Unfortunately, nearly thosands years of foreign rule, the system
of westernised educational and the ignorance and prejudice of modern
intellectuals to anything of Indian heritage, led to situation where
Indian heritage is not only neglected and conciously relegated as
irrelevant. Vast treasures of thoughts and wisdom expanded in
Upanishads, Brahmasutras, Bhagwat Gita, the two epics, eight
Puranas and several teaching and commentaries by Buddha, Mahabir,
Jesus, Nanak, Kabir, Chaitanya, Shankara have contributed to Indian
heritage. Ancient thoughts expounded by Ramakrishna, Vivekananda,
Auravinda, Raman are suited in modern times. Indian heritage has
relevance to modern management science.
Human Relations
It has for a considerable time been accepted at all level in
industry that the establishment of good human relation is a basic
perquisite to success and it is fairly well recognised by now that the
greater responsibility towards the achievement of this rests on
Management. The mining industry employ a comparatively higher
number of workers than most other industries and most of these
workers, by the very nature of things have to work in less congenial
conditions than workmen in other industries. This being so the
Human Relation is bound to have a considerable impact on the results
achieved by the mining industry.
Management has to recognise that each employee has his
individual needs and aspirations at work. This should be taken into
account in its days conduct of business. In particular, Management
121

should recognise the employees real need to achieve a sense of

satisfaction in his job and should provide for it, as far as possible.
Man has an inner desire and need for appreciation. He wants to
receive affection, which makes him feel important and valuable. It
makes him feel he has a place in the order of people. It is necessary to
extend employees support, love, understanding and, in turn, they
would give back best of their capacities.
All are craving for opportunities to express in various creative
ways. None will be happy if one is not constructive at his work or
leisure.
Majority of people are busy with some kind of jobs. Some keep
on fitting, repairing, patching up what would break if unattended in
time. This creative process involves a dignity and fill one with
intellectual, moral and spiritual joy. This human urge has to be
realised and continuous efforts has to be maintained, so that
excellence through creativity is achieved.
In the same way, all feel a need for recognition. It is an
established truth that just and sincere praise are essential to the
progress, well being and efficiency of every man.
All expect credit for the good that is done and look for
recognition of merits in time; one will feel rejected when they are
denied.
Be quick to praise, be slow to censure.
Factors for dissatisfaction have been shown in the order:(a)

Company policy and Administration

(b)

Supervision

(c)

Relationship with supervisors

(d)

Work condition

(e)

Salary

(f)

Personal life

(g)

Relationship with subordinates

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(h)

Status

(i)

Security

The following factors have been identified providing greatest

satisfaction at work :(a)

Achievement

(b)

Recognition

(c)

Work itself

(d)

Responsibility

(e)

Advancement

(f)

Growth

Grievance handling
It is necessary to enable the individual to air grievances.
Endeavour is to be made to establish circumstances causing
dissatisfaction. To attend the grievances, it would be necessary

To allow adequate time

To put employees at ease

To get feeling as well as facts

Not to evade the issue or belittle it

To investigate facts

To get employee to suggest solution

Not to commit too quickly and

To state proposed state of action-if known at that time.

Action can be decided after having facts and details. However,

such decisions should not affect company policies.
Persuasion
The more Manager knows the other person, i.e. how he thinks,
what he likes, what he dislikes, his ambition, how he sees himself, the
more likely Manager will be able to persuade him.
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Persuasion is a matter to be handled with patience and free

mind.
To inform people is to try helping them to see things that either
they had not noticed earlier or to make them see thing from a different
standpoint in a different light. Therefore, it is very essential to prepare
thoroughly.
One has to be sure before persuasion is set out that active and
genuine desire for service to the other party remains.
It is necessary to eliminate emotions and proportions put
forward is judged with facts only.
People always want what will enhance or benefit their ownself
and images. They will change their ideas and attitude when they will
believe that changes will satisfy needs.
To get others to accept your views without their feeling
resentment towards either you or their own changed attitude, is the
art of persuasion.
These factors have very little to do with money and status.
They have much to do with achievement and responsibility and
are connected with the job content i.e., the things that people do at
work.
People are not machine; the use and organisation of people in
ways which do not recognise their abilities and wishes, will result in
considerable low performance. It is well known that to get things done
in industry is to win the freely given commitment, belief and
acceptance of shared aim by the people who are involved. Beyond a
certain level of dissatisfaction people will withdraw themselves from
work, and involvement will be less.
With the daily routine, life passes very quickly, suddenly one
realises that he does not count. Thus depression sets in and one feels
that he is just a cog in the wheel. A feeling of nobody persists. This
situation of helplessness and inferiority complex in the mind of people
need to be handled carefully.

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1. Allow a workman to start thinking and accepting himself as

worthwhile.
2. Allow him to think a new physical attitude.
3. To allow him to develop a fresh outlook to his job as important.
4. Allow him to build a philosophy of his life that is greatest.
5. Not to follow same routine. To devise ways and means of doing
things better and quicker.
6. A new look towards life-dignified and of tremendous important.
(Such perspective will not allow any room for inferiority
complex).
All employees have a right to seek redress of grievances relating
to their employment. Each employee must be told how he can do so.
In the colliery, Manager will have to see that arrangements are there
under which individual employees can raise grievances and have them
settled fairly and promptly. There should be a formal procedure.
Individual grievances and collective disputes are often dealt with
through the same procedure.
Individual Grievance Procedure
The aim of grievance procedure should be to settle the grievance
fairly and as early as possible nearer to the point of origin. The
grievance should normally be discussed.
Managers have to apply particular attention to the kind of tasks
that they expect employees to do, as job satisfaction comes from
involvement in doing what is considered is worthwhile and challenging.
Managers preparation
- Presentation should be easy and
clear in his language and in terms
of his environment.

- Ask his opinions

- Open queries find out
what is in his mind.

- To be realistic

- show interest in him

- Sell the benefit

- To consider in his position

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and judge his views.

- Design the approach to the needs
of the other party
- to prepare others to accept the
views.
- To be flexible and adjust your
objective
- to make him a party to the idea

- This will apply

- sell the benefit positively

- you sincerely believe in it.

- once aim is achieved not to lose it

by dragging discussion longer than
necessary.
Take prompt action on decisions
An attempt may be made to follow the approach while
persuading type of man of different attitude.

Type of man to be
persuaded

Traits
Positive(+)
Negative(-)

Approach to
Positive(+)
Negative(-)

Approach

Neutral

Dignified brief,
sincere, firm, factual

Neutral

2. Self important

Positive(+)

Eliminate yourself,
plug facts, guide his
conclusion

Negative(-)

3. Argumentative

Positive(+)

Not argumentative,
calm, patient, guide
his conclusion.

Negative(-)

4. Obstinate

Positive(+)

Limited objective,

Negative(-)

1. Able and Clever

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avoid dead lock,

Switch attach, make
another date
5. Weak and unable

Negative(-)

In writing, question
at every stage firm

Positive(+)

6. Silent

Negative(-)

Logical presentation,
question at every
stage, firm

Positive(+)

7. Not so bright

Negative(-)

Slowly, simplify use

emotion

Positive(+)

Problem solving
Problem solving at the first instance may appear to be no more
than a common sense even then the following stages of process may
help in structuring problems and decision making.

Problem analysis

Direction and control of action

Decision making

Once individual problems have been recognised, it is necessary

to decide the priority by considering urgency, seriousness and trend.
A problem is a deviation between what should happen and what
actually happens. The cause of the problem is always a change that
has taken place.
After the causes are detected and problems are analysed,
Manager has to be clear about action to be taken.
(a) Interim - to keep things going.
(b) Adaption - to break the link between cause and problem
(c) Corrective - to eliminate cause.
Decision making
Decisions may be taken on the following lines -

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1. Managers may solve the problems or make decisions himself

using the information available to him at the relevant time.
2. Managers may obtain any information necessary from his
subordinate, then decide on solution to the problems himself.
He may or may not tell subordinates the purpose of his queries
or give information of his problems or decision he was working
on.
3. Manager shares the problems with relevant subordinates
individually getting their views and suggestions without
bringing them together in a group and then he makes a
decision.
4. The Manager shares the problems with his subordinates in a
group meeting and obtain their ideas and suggestions. Then
he makes decision which may or may not reflect his
subordinates influence.
5. The Manager shares the problems with the subordinate as a
group. He then generates and evaluates alternatives and
attempt to reach agreement on a solution.

Hence, Manager plays the role of co-ordinator, keeping the focus

of discussion on the problems making sure that critical aspects are
discussed. The Manager will provide necessary information to the
group as well as ideas but will not press to adopt his views. The
Manager here will be ready to accept and implement the solution
which has the support of the group.
A problem which should be studied by senior Management and
those responsible for administration is the number of meeting a
Colliery Manager has to cope with especially at the larger collieries. He
is required to attend meeting with Production personnel, Trade
Unions, Safety Committee, Planning meeting, Pit Meeting and of
course, in addition to his meeting with various under officials. Part of
the problem simply is that there are not enough days in week to fit
these in.
Colliery Managers are faced to day with many problems which
become more and more complicated as time goes in. They cannot
hope to deal with all these themselves and they will have to make full
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use of Specialists and Service Departments, if they are to do their jobs

effectively and efficiently.
To handle stressful situations
When situation creates stress and body and mind get into
various types of physical and mental problems then,
(i) Use of knowledge; it is essential to know causes of the stresses
and also ways to prevent or manage situation. We should get a
total perspective and better understanding on the basis of facts
and not just feelings.
(ii) By systematic analysis - by studying logically and systematically, we can arrive at realistic explanation and answer.
(iii) To adopt the right attitude and stay calm.
It is to cultivate that during trouble, one should be calm and
grace. Under pressure, it is to practice that during difficult situation
in the industry one is steady and stable. It is to control emotion
during adverse situation, remaining silent and cool gives one
opportunity to find out solution to overcome the odd.
When a mistake happens and deadline is missed, nothing can
change that. On this issue losing temper only makes matter further
worse and makes things complicated. Energy should be harnessed in
finding solution rather than to letting off anger. Any crisis required
discussion this one has to put in the right frame of mind to make the
right decision.

It is to think and not just to react

To be ready mentally to resolve the task

To turn the crisis into opportunity

While recurring major crisis not desirable, occasional

unavoidable crises are necessary for mental health.

To review and analysis what went wrong and there by to help

prevent future problems and crisis

Communication
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In these modern days, complexity of organisation attach much

importance on proper circumstances. Communication is the central
and critical chord which can get the people working together in the
pursuit of common and well accepted goals. In order to improve
effective communication, it needs understanding of the environment,
the organisation and the employees associated to the organisation.
Communication includes communication with (i) individual (ii)
with small group and (iii) with total workforce.
Communication process becomes critical when behaviourial
angle is taken into account. This is applicable in both cases of vertical
and horizontal communication.
Factors like physical and
psychological distance in the hierarchy, status, mental makeup,
background play vital part.
Communication is, however, the major instrument for achieving
success with people and through people.
Sensitivity to communication problem gets intensified with social
interaction and political circumstances.
Besides, behavioural aspects, four forms of internal
communication are there : (i) Top down, (ii) Bottom up, (iii) Lateral
communication and (iv) Diagonal communication.
Communication from Management to employees
Top down - Commands, communicating procedural practices
and
policies, instructions, advices, praise, discipline.
This will involve talking, informing
All
human
relations
essentially
depend
on
proper
communications. Managers success as leader depend on how best
they
communicate.
Poor
communication
may
invite
misunderstanding, strained relationship.
Whenever effective and
proper communication build the moral of people, develop trust and
understanding.
(a) Oral communication, face to face method
130

Method :

talk to everyone once a month going through section,

department in rotation and explain organisation
position, policy, performance or briefing in a session.

(b) Writing :

Appreciation, a letter of congratulations to employees

on achievement message of condolence, warning or
praise.

Upward communication : Upward communication for employees

to express their problems, suggestion,
ideas.
Joint consultative committee is a forum for exchange of views
and essential issues. Workers letter to Manager expressing their
grievances.
Many people can talk but less number of people can carry out
effective conversation.

Meeting
1. Colliery Managers will have to work through various
teams of officers, group of employees during the course of
running of mines. It is necessary to conduct various
meetings with the groups.
2. Meeting is mode for communication and it is an essential
part of effective administration. The objective of meeting
is to secure co-operation and to save time and efforts.
Meeting may be of various types;
(a) Informative
(b) Instructional
(c) Motivational
(d) Consultative
(e) Decision making
3. To conduct meeting successfully, the following skills need
to be acquired.
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(a) Expertise on the subject

(b) Ability to talk effectively
(c) Being prepared for the discussion by studying
documents, information
(d) Producing new ideas
(e) Being impartial
(f) Listening effectively
(g) Clarifying and developing others ideas and
needs.
4. A Manager while functioning as Chairman, must have
adequate preparation before the meeting.
As Chairman, he should gain sound knowledge of
business to be discussed. He should also gain knowledge
about the members who will participate in the meeting
and this will help in holding the meeting smoothly.
The Chairman should know who needs to attend the
meeting.
The meeting should start punctually and business like
atmosphere should prevail.
5. The Chairman should :(a) keep the speakers to the point and check attempt
to drag the discussion beyond the points.
(b) allow all members equal chance to speak
(c) allow all members to express their views
(d) be impartial and extend guidance where necessary

The Right personal

qualities

A knowledge of how to conduct

the meeting and of the business
to be discussed

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Will make Chairman successful.

Time Management
Managers have to look after so many Areas of work and,
therefore, it is necessary that unless they manage their time
satisfactorily with better control over time, Managers cannot prove to
be more productive and work more effectively.
Time is most valuable resource which cannot be allowed to
waste, as it is irreversible, irreplaceable and finite. One can budget
time but cannot borrow it. To waste time is to waste some part of life.
Effective Time Management is, therefore, a must. For this, it is
necessary to

Fix goals
Set priorities

These can be set as long term (say for 2 years) and short term
(for next 6 months).
Priorities set as A , B, C etc. where As are items of high
value, Bmedium and C as low value. Once As are decided, priorities
to be set as A1, A2 aned A3 etc.
Over organisation, however, will lead to further waste of time.
Once the objectives are clear and goals set with priority, it would
be required to prepare a daily to do list.
To get the important job done first as per the priority list.
For decision making specific officers/employees to be contacted,
relevant papers required to be seen, all have to be organised for quick
decision making and disposing the to do list one by one.
Unless all the A jobs are complete, it is not necessary to do other
A1 at own cost. Any interruption has to be faced. Normally no set
speed and it may be practised to handle each paper only once.
Collecting too much information makes delay.

133

In order to save time for thinking, it is necessary to make short

replies with points and take assistance from colleagues and
Secretaries in reducing paper work.
It is necessary to have a background file for all important
information for going through it when time available.
It is important to foresee the deadline of disposing a paper/
Delay, keeping paper unattended causes unnecessary anguish,
guilt and pressure, so to do it now is the right attitude.
Time is most valuable resource and hence it cannot be allowed
to waste.
It is necessary therefore

to
to
to
to
to
to

set priority
make a daily to do list
start with A and not with D priority
ask self what is the best use of time now
handle each paper once
be brief and to do it now

Even with all these steps followed, one is liable to encounter

unexpected barriers to achievements. There cannot be a totally
organised day. What can be done to minimise the extent of and effect
of interruption.
Interruptions are to be accepted as a part of normal daily work.
These interruptions are to be treated also as job and not to think that
these are taking one away from job. It is to control the controllable.
It is to keep interruption short while it is necessary to stick to
time limit, it is also necessary to be gracious with people.
It is not to leave the interrupted with a problem unresolved
either to refer him to other officers or to inform him to look into the
matter later.
It is also to see that self interruptions are avoided - with
constant cups of tea and coffee, gossip, encouraging people to drop in
to chat or to make regular calls to family or friends.
Not to commit taking over new task on the spur of moment.
Many pass through the years without recognising the value of time.
One has to take charge of his time. It is necessary to change the old
habits that waste time.
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Four things never comes back - the spoken words, the sped
arrow, time past, and the neglected opportunity.
Good Time Management means doing the right thing faster and
better working smarter and not harder.
Take time to
live

killing time is suicide

work

it is the price of success

think

it is the source of power

To sum up

Time is precious

Crisis and interruption do happen

To have a better attitude for them

To say No when people ask too much

To control jobs not to allow job to control

Being relaxed one can do job better

***

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19

MOTIVATING WORKFORCE
WORK FORCE

::

OBJECTIVE

::

Objective of the
Company

::

TASK

::

For these tasks

The attitude and
mental climate
desired.

::

Male and Female employees of Industry.

Here FOCUS is on workforce of coal
industry attached to Coal Mines Project
OCP-office, Hospital Workshop other
establishments.
Motivating work force in the Unit for
achieving desired Result.
To perform (a) produce planned quantity
of coal for various sector.
(b) quality coal supplied to consumers
for National Prosperity.
Keeping in view safety - conservation
i) Achieving production target.
ii)
Improving
production
and
productivity.
iii) In the office, increase efficiency,
eliminate wastage, improve performance.
iv) Optimum utilization of machines and
manpower.
v)
Improve physical conditions of
working.
vi)
Proper
flow
of
two
way
communication between management
and workforce.
vii) Welfare and health care
viii) Maintenance of discipline.
ix) Step to improve attendance, working
hours.
Increase in acceptance of managements
ideas improved attitude towards the job
and organization increased co-operation
from the staff and workers.

Reduction in complaints and grievance Reduction absenteeism

Congenial industrial relation to secure from the employees maximum
performances in terms of the pre-determined objectives.
For this the employee should be committed.
Commitment is the attitude,
136

MOTIVATED
Worker workforce
For a Temporary period

For Long Period

FACTORS
Physical
Physical factor:
Man is a
machine.
Working
condition.Light,
Sound, working
environment,
temporary,
Humidity

Physiological

Psychological

Philosophical

Strength of
Hand, knee,
vision, hearing,
smell,

Emotion,
Temperament,
Attitude,
Moral Physical
needs, safety,
security, love,
affection,
esteem, self
actualization.

For both
employees and
management
Ethics, values,
Principles and
Policies outlook.

Trade Union
activities,
Political
environment
Motivator
Expertise on
communication,
interaction, TA.
Fair, energetic,
Leadership,
Ethics, Vision,
Psychologically
satisfactory
working
environment

Motivation process
Physical

Motivated

Physiological

Optimum
production

Psychological

Higher efficiency
Result:generates good
moral Loyalty to
the company.
Improved skill,
knowledge,
ability, attitude
and interest.

Philosophical

Communication rewards
employees welfare, dependences,
trust, confidence, appreciation,
clear principle and policies on
137

promotion, transfer, discipline.

De Motivating factor
\
No responsibility, feeling of no
entity.
Payment without work
No role clarity
No accountability
No delegation
No recognisation
Fault finding
Bad IR, Inter-Intra Union Rivalry,
Indiscipline
MOTIVATION DEFINED
to provide with a motive; to impel; incite. Motive means which incites
him to action. Idea, need, emotion of organic state that prompts to an
action. Incite is defined as to arouse to action; spur or urge on.
Lasting commitment to a task can be secured only if conditions are
provided which build intrinsic motivations. In simple language, the
persons concerned must believe that the task is inherently worthwhile.
SECURITY AND SELF DETERMINATION
The aims of management is to secure from the employee maximum
performance in terms of the pre-determined objectives. The employees
should be committed. Commitment as the syndrome of attitudes,
understanding and feeling that identify the team, dedicated participant.
In his view, each manager seeks to develop and maintain morale.
Therefore, get his commitment from an individual employee towards
organizational goals and thus commitment towards improving future of
the organization rather than the individual himself in whom the
individual employee is more concerned.
MOTIVATION THEORIES
(i) The Interaction Theory (ii) The Participation Theory (iii) The Pattern
Concept (iv) The Achievement Expectation theory.
1) The Interaction Theory: (i) Activities (ii) Interactions (iii) Sentiments.
138

2) The Participation Theory: Participative leadership style for securing

maximum motivation. The human beings need for belongingness and
love in the work situation can be met by providing appropriate
interaction. Participative management techniques can make a valuable
contribution.
3) The Pattern Concept: Traditional theories of management. assume
that people work only or primary for economic returns = that people
should be treated as human beings rather than as cogs in a
machine.
4) The Achievement Expectation Theory: A person is given a thorough
understanding of the theoretical concept relating to achievement,
motivation and his own scores, such an individual would subsequently
perform more effectively in competitive achievement situations.
DO FRINGE BENEFITS MOTIVATE EMPLOYEES?
Fringe benefits including bonus motivate an employee.
Whilst money is an important motivator of human behaviour, in terms
of the need hierarchy it can help satisfy only the physiological need of
the human beings. This brings into focus the importance of nonfinancial incentives or psychic wages aimed at satisfying the other needs
in the hierarchy. The psychological need for Safety or security can be
satisfied by the psychological climate or environment of the work place.
COMPENSATION PROGRAMME
Fringe benefits like provident fund, free medical treatment, etc., do not
generally motivate an individual. This is because, after some time, these
are taken for granted.
Some of the non-financial incentives, in brief, are as follows:
1)
2)

Providing responsibility through job enlargement;

Providing involvement or participation;

3)

Creating a sense of achievement;

4)

Providing recognition for accomplishment and

5)
Offering inducement of promotion and growth as a result of
effective performance.
Some organizations are noted for their policies of hiring and firing
at will, whereas in other organizations a person can retire in old age,
although inefficient. Thus a balance has to be struck so that sufficient
sense of security is created without encouraging complacency.
139

Well perceived fringe benefits can only make the employee more loyal.
Why should be not be loyal to such a generous employer who is willing
to give him benefits not geared to his performance.
Im OK Youre not OK The manager has thus very low concern for his
people and extreme concern for accomplishing production tasks.
At the other extreme, the style, there is extreme concern for people the
belief being the old human relations one namely that of happy
employees working harder. In Transactional Analysis (TA) language, the
position taken is that or Im not OK-Youre OK.
There is high concern for both production and people. In this sense, in
TA lanaguage the position taken is that of Im OK-Youre OK. This
sort of attitude create imbalance in offering the benefits to employees.

ENVIRONMENT FOR EXECUTIVE

Managers wish not only to accept responsibility, but seek responsibility given
the proper conditions and that if people avoid responsibility it is the culture of
the organization and the system of rewards and punishment which cause them
to do so.
That motivation mainly stems from job satisfaction. Every endeavour should,
therefore, be made by each senior to enrich the job of individuals below him and
to make it as rewarding as possible in terms of job satisfaction.
That it is the main duty of the superior to help his subordinates perform better by
removing the obstacles in his path and to develop him by providing him with
opportunities to express himself and his abilities beyond the compass of his
present job.
That the best results are achieved through participative management because
this style of management ensures involvement and commitment. However,
participative management does not imply elimination of authority and control.
Maximum delegation, but accompanied by responsibility and accountability.
MORALE
As Nepoleon said In war, morale conditions make up three-quarters of the
game: the relative balance or manpower accounts for the remaining quarter.
140

Some may consider this an exaggeration. However, moral is important. It refers

to the groups zest for action.
Generally, the plight of junior executive was due to low morale caused by a
climate of uncertainty which existed in such concerns showing unsatisfactory
growth prospects, chronic under utilization of capacity and low productivity.
Frequent changes in top management also brought about such a climate. Public
enterprises are generally placed favourably as they offer the highest challenge
to professional employee. This challenge however becomes ineffective where
achievement is not recognized and is diluted where there are too many layers of
authority. From the motivational perspective, environmental disincentives must
be identified and reduced if they cannot altogether be removed.
Exposing them to the latest concepts, information and techniques and
developing in them skills required in their fields.
Senior Managers by providing them opportunities for interchange of
experiences.
(1)

Organisational Goals.

(2)

Group Goals.

(3)

The followers personal Goals.

(4)

The Leaders Personal Goals.

The productivity of performance secured is also a function of leadership styles

which have their effect on the motivation ultimately generated. The pattern and
philosophies of management have their implications on the effectiveness of the
individual as well as of the organization as a whole.
Result of Motivation

It increases the employees productivity.

It creates favourable Cos image.

It provides a means of satisfying the employees need.

To help boost group morale.

Encourages discipline amongst the employees.

Creating a sense of achievement.

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THE NATURE OF LEADERSHIP

The relationship between a superior and a subordinate triggers a persons will
to do and transforms lukewarm desires for achievements into burning passions
for successful accomplishment.
(1) The leaders characteristics.
(2) The followers attitudes, needs and personal characteristics.
(3) The organization characteristics such as its basic purpose: habits,
customs.
DIFFERENT LEADERSHIP STYLE
A persons leadership style depends on his personal attitudes towards and
assumptions regarding human beings.
(i)

Autocratic or Authoritarian (ii) Paternalistic (iii) Democratic or

Participative.

Autocratic or Authoritarian Leadership

1. The average human being has an inherent dislike of work and will avoid it, if
he can.
2.

The average human being prefers to be directed, wishes to avoid

responsibility, has
little ambition and wants security above all.
3. Because of this human characteristics of dislike of work, most people must be
coerced, controlled, directed and threatened with punishment to get them to put
forth adequate effort towards the achievement of organizational objectives.
4. Man is wanting animal as soon as one of his needs is satisfied, another
appears in its place.
Paternalistic

I am not OK. You re OK. This leads to extend facilities to

employees only and no account of work done is maintained.

Democratic or Participative
Organisation of human being with a personality and dignity. An organization of
these human being who are workers, who are to realize their human aspiration
through individual and collective endeavour of their work and ownership by all.
142

The average human being does not inherently dislike work. Depending upon
controllable conditions work may be source of satisfactions and inspiration or a
source of punishment.

COMMUNICATION
The way for motivation

Communication is concerned with imparting a common idea or understanding

and covers any type of behavior resulting in an exchange of meaning.
An executives working day is filled with communication of different types like
orders, reports, conversations and remours. Communication is vital in the
relationship between executive and their subordinates.
The three way Communication structures
Information, opinions, etc., upwards, downwards and laterally
They go through authorized channels.
1) Downward Communication. Both the delegation process and the
principle that authority flows downward require information.
2) Upward Communication.

A manager wants to know what has

happened. He, therefore, needs information to be fed upward to him. He

can then evaluate the effectiveness with which his orders have been
carried out and can determine the basis of fresh orders and directions.
3) Lateral or Diagonal Communication. Emphasised the executives coordinating

responsibility.

communication

flows

and

They,
did

therefore,
not

stressed

elaborate

on

vertical
horizontal

communications.
1.

To be sure of what you wish to communicate and why. Do you

want to alter individuals behavioural pattern? Do you know
further information?

2.

To be clear in the use of language, use the receivers

language.
143

3.

To watch how much you want to communicate not too muchnot to little.

4.

To provide right climate. Many people talk but very few can
carryout conversation.

5.

Listen attentively.

6.

Watch out for unintentional communication. It is a two way

process.

7.

To be sure your action do not contradict your communication.

Practice what you preach.

8.

To avoid faulty listening. There is no in speaking if no use one

is listening. One hears with ear but listens with the mind.

1) Recognise the Individuality of Individuals.

People are different

physically and more importantly psychologically. Do not assume that all

the group members are motivated by the same needs or desires.
2) Make your Subordinates Feel Important. Human beings want to be
appreciated and like to feel important. Give credit where it is due and
show interest in and appreciation for your subordinates.
3) Guide rather than Order. Instead of giving order guide them.
4) Set a Good Example.

The manager sets the style for his people.

Subordinates are always watching their superior. They often presume, at

times erroneously, that their superiors conduct is the appropriate one for
adoption. Therefore, play up the positive and be a person worth copying.
5) Show confidence in your Subordinates. This will instill confidence in
themselves.
6) Listen Attentively. A good motivator wants first to understand the facts.
Listening can provide deeper understanding.
7) Watch How You Communicate. Be careful not only of what you say but
how you say it as even the tone of the voice is relevant.
144

8) Encourage Participation. Wherever possible, provide the subordinates

with an opportunity to take part in the decisions.
9) Do not be Secretive. Create a feeling of belonging, team spirit and group
cohesiveness through communications.
Make Your Subordinates Want To Do Things That You Want Them To Do.
Making the subordinates want to do the things you want them to do can only
be done by an integration of objectives. The subordinates must feel that they
will achieve their own goals best by striving towards the achievement of the
organisations goals.

145

20
ROLE OF PUBLIC SECTOR
OVER last 45 years or so, the public sectors in India has been
subject of discussion amongst intellectuals, politicians and common
people for various reasons. To some people, enlargement of public
sector is a movement towards Welfare societies, other have found in
the Public Sector wastage, inefficiency instead of extension of social
benefits.
The public sector in India have mixed results of failure, wastage
of resources as well as pioneering impressive achievement. India
having been left much behind industrial revolution during British
regime, the country had, therefore, to catch up very fast in developing
resources and industries. Despite its several handicaps, the public
sectors have made a place for itself in the National Economy. Over the
past years, number of its industries have gone up, the investment have
increased manifold, and turnover multiplied. In fact philosophy of
Public Sector of our country may provide a model for the developing
world. The country is yet to solve problems of removal of backwardness
in some part of our country. The process of which has started for
accelerating industrial progress, contribution to infrastructure
development like Gas, Oil, Minerals and Coal.
The general feeling towards public sector undertaking is not very
positive. The impression that come to mind immediately are
inefficiency, bureaucracy, huge losses, strikes/corruption, etc. In
short, people feel that many public sector undertakings are a deterrent
to progress. There are, of course, some notable exception.
Public sector undertakings are seen as complacent monopolies
that lack accountability. They seem more a convenient first, because
corporations fail to define the purpose of their programme. Second,
they dont measure the results. The majority fly behind.
Main difference between private and public sector seems to
relate to attitude. In private sector, employees know company is
vulnerable to failure. So too its Managers. There is a great incentive to
survive. In the public sector these motivations are severely diluted and
the enterprise has less edge.

146

The feeling of invulnerability, sheer complacency about the

present and future, and also conviction at some level that Government
would see the company and protect whatever be the circumstances. It
is, therefore, difficult to inculcate a sense of realism. But realism is
necessary, if problems are to be solved. Need to change attitude seems
a major challenge.
Vacillation will take its toll and Managers will have little
credibility in the eyes of shop floor. So it is not only a question of
educating mass of employees but of changing the attitude of Managers
who have grown up in an atmosphere of compromise and conciliation.
It is worthwhile at this stage to peep into the causes of the
public sector inefficiencies and the main factors that emerge are :
political interference in the public sectors day to day functioning, an
overcaution, bureaucratic management style unsuited to commercial
undertakings, muddling of business and social priorities, overstaffing
and labour indiscipline, below cost pricing of public sector output, and
the 10% preferential consideration public sector firms extend to one
another on tenders.
An important aspect of higher accountability is the high level of
business ethics, morality and social responsibility expected of the
public enterprises.
Objective of Public Sector
Public sector has been a part of the philosophy of socioeconomic development in India. Public Sector has :(i)

To give an adequate return on investment to the Nation.

(ii)

To generate surpluses to help in the socio-economic

transformation.

(iii)

To generate additional employment.

(iv)

To promote balanced regional growth.

(v)

To help develop ancilliary industries.

Micro-socio-economically, these objectives are stated to be to

accelerate the process of economic development both, in industrial and
agricultural areas and to give the country a self-reliant economy, to
147

bring about better distribution and reduction in inequalities in

incomes and the removal of poverty.
We advocate a public sector for the three reasons:To gain control of the commanding heights of economy,
To promote critical development in terms of social gain
or strategic value rather than primarily on consideration
of profit;
and to provide commercial surplus with which to
finance further economic development.
-

Mrs. Indira Gandhi

Management Strategies
It is an established truth that whenever for any reason,
equilibrium gets upset, malfunctioning starts reversing the normal
activities. It is applicable for nature, health, as well for the industry.
Imbalance in any field causes various disorder. Whenever such
imbalance emerges in the industry or equilibrium gets upset for any
reason, malfunctioning starts. Main reason, however, is problem of
management.
The problems may arise out of :(a)

Managements inefficiency.

(b)

Weak Management.

(c)

No Managements Team.

(d)

Management without objective.

(e)

Unsettled Management.

(f)

Huge organisation.

(g)

Management with no experience.

(h)

Management unaware of its functions and role.

(i)

Management by mistake.

Whatever may be the causes for imbalanace in the

Managements system and procedure, the net result is that the
industry loses. If it is a public sector, then the public, the future
generations, lose opportunity. They lose heavily due to price increase,
148

inflation. There is no right of the people who are associated with such
organisation, to allow the industry to drift at the cost of nation. The
major responsibility, however, lies on the top executive and Managerial
group with management theory, and planning clearly understood.
Since the 1950s, management theory received a great deal of
attention. Again the post 60s, there has been shift from a production
orientation to a marketing orientation; the discipline of marketing is
now being accepted by many public sector companies too. Secondly,
organisation and method was recognised as a management theory that
had real applications in corporations. With the development of
computer technology, operations research gained importance and was
increasingly implemented within corporations. From the sterile area of
computers, no surprisingly moved to behavioural theories. Many
different behavioural theories of management, from Theory X and
Theory Y talking about the positive and negative behavioural aspects of
people in organisations to theories on managerial grids.
In the seventies, structural theories gained increasing
recognition. Should companies be centralised or decentralised? This
led to the birth of strategic theories of management. Strategic
management continues today as the dominant focus for both
theoreticians and practical manager in corporations. Strategic
management has evolved over the years and indeed, one School of
thought suggests an evolution of strategic management.
There is no strategy here. This is basic management. Here one
runs a company by having annual budgets and take a very functional
focus on his activities : production, marketing and personnel. 2. It is a
little more advanced. Here one starts taking cognizance of his future,
budgeting for the current year and forecasting for one, two or three
years into the future, and he is still allocating resources on a relatively
static basis.
Step 3 the externally based management, says Understand the
fundamentals of your business and act dynamically Step 4 says,
Think. Think and behave strategically and build coherence.
Essentially, it means : Educate, inform and advise. Step 4 says
shared goals, resulting in shared rewards.
The Managers basically deals with the elementary ideas,
things(Administrative) and people. These elements are reflected in the
task of conceptual thinking, where one formulates new business ideas
and opportunities, administration, where the details of the
149

management process are handled and the leadership, where people are
motivated to accomplish business objective.
Organisation
Today, we are living in an era of the most rapid technological
change the industrial world has ever known. The key elements for any
organisation are people, structure, technology and the environment in
which the organisation operates. When people join together in an
organisation to accomplish an objective, some kind of structure is
required. People also use technology to help get the job done, so there
is an interaction of people structure and technology as shown :-

People

External
Environment
Organisation

Structure

Technology

The objective of the organisation is to achieve a triple reward

system in which human, organisational and social objectives are met.
People find more satisfaction in work when there is co-operation and
team work. They are learning, growing and contributing. The
organisation is also more successful, because it operates more
effectively. Quality is better and costs are less. Perhaps the greatest
beneficiary of the triple reward system is society itself, because it has
better products and services, better citizens, and a climate of cooperation and progress. For the effective functioning of all role players,
people, structure and technology, it is essential that the objectives of
each are clearly understood in relation to the external stimuli. For this
to be maintained in the desired manner.
Objectives must be set up
The objectives are :(a)

To make the
technologies.

country

150

self-sufficient

in

modern

(b)

To help in breaking down the concentration of economic

power in fewer hands.

(c)

To raise the cadres of professional men in managerial

and technological field.

(d)

To reduce eventually dependence on foreign aid.

(e)

High growth in assets, turnover and profit.

(f)

A consistent reputation, within the industrial sector as

leader. Others imitate and try to get their talents.

(g)

A solid public reputation, where people generally feel

good about the company and their operation.

To achieve the objectives organisation will need

Team.

Right man in the right post

Management culture

Management skill

Management standard

A group of executives of various level form the Management

A strong management having leadership and quality to guide

and advice, and to take decision in time is a must.

What trait we look for such Management team:(a)

Physical make up : appearance, smart, vigorous, speech.

(b)

Attainment: education, training and experience.

(c)

General intelligence:
(i)

Fundamental
151

(ii)
(iii)
(iv)
(v)
(vi)

General intellectual capacity

Maturity of judgement
Realism
Ability to pick up main issue
How he reacts and confront with problems.

Special Aptitudes
Supplementary to general intelligence.
Interest
Preferred activities.
Disposition

How acceptable does he make himself to other people.

Does he influence others?
Is he steady and dependable?
Is he self-reliant?
How does he fit in - how do other people take to him -Does
he make a good member of group?
Do others take notice of what he says - his opinions carry weight? good at getting people to do what he wants them to do.
Is his behaviour fairly predictable or not?
Can he stand on his own feet, work things out for himself or need
constant supervision.
EIGHT POINT PLAN

Characteristics

Leadership
Autonomy
Control
Involvement
Communication
Market Orientation
Innovation
Integrity

152

1.

Leadership

Demonstrated in varieties of ways, but particularly

through visible top management.

Top management believe that they have to be seen to be

believed.

Touring around the units, discussing where and how the

business is going, is an integral part of every senior
Managers routine.

Leaders provide a clear vision which they believe in

passionately themselves and incite others to subscribe to.

Leadership thrives where people have clear objectives.

Leadership involves being allowed to make mistakes, i.e.

results in positive attitude towards problems, solving by
making people accountable for solutions rather than just
for the problem.
These help the company to extract extra-ordinary performance
from very ordinary people.
Whoever
Whoever
Whoever
Whoever

2.

makes a show of himself cannot shine.

is self-righteous cannot earn respect of people.
is self centred cannot be loved by other.
seeks glory cannot become a true leader.

Autonomy

I did not mind what they do as long as it turns out alright

- Lord Wienstock of GEC.

Successrful companies have small bureaucracts, informal

system to keep units working together rather than against
each other.

Action oriented, informal teams.

153

3.

Control

Manager have the freedom to manage in their own way

within a clear framework of necessary restrictions.

Delegation down the line.

Tight control over areas that matter, a balance between

strict controls and the flexibility needed to reach quickly.

Tight control on capital but freedom within budgets.

Close attention to planning.

A close understanding of where the company is continually

pushed down the Management heirarchy.

They have the right way of doing things rather than hefty
rule books.

Constant feed back on results.

Creating the right framework of control and independence

is one of the ingredients.

4.

Involvement

People here are committed because they are proud of what

they are doing.

Pride in ownership, its not only a job it is a hobby.

Stress on training. Every Manager is a Teacher.

5.

Communication

To communicate is to commit and to commit is to assume

responsibilities.

Genuine respect for the individual.

154

There is no bigger respect you can pay a subordinate than

to hear his point of view.

To create a company culture and that the workforce can

identify.

6. Marketing

They have a deep understanding about the market.

Huge emphasis on quality control.

Swift attention to complaints by top Manager.

Research and Development wholly market oriented.

7.

Innovation
New ideas and uncommon thinking for betterment of the
industry.

8.

Integrity

More importance to integrity than ability. Employees know

where they stand and they are dealt with firmly.

Tasks of Managers
The Public Sector of Coal Industry has major role to play for
development and promoting growth for the country. A unique feature
of this industry is inheritance of mines with large working force having
different work culture. This formed hetergeneous group after emerging
as Public Sector Company, where large number of people are
associated and human factors play the major role and managerial
group of Coal Sector will have to steer the Industries towards success
giving due regards to commitment with national feelings. Success of
the industry will mean (i) High growth in assets turn over. generating surplus
(ii) Consistent reputation within the industrial Sector and solid
public reputation of the Industry.
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To achieve such success in the Coal Industry, the Managers will

have to concentrate on (i)
Control
(ii)
Involvement
(iii)Communication
(iv) Integrity & Leadership
Managerial Preparedness
Let us imagine colliery Managers position, some 30 to 40 years
ago. The Mine Managers used to be the sole authority particularly for
such collieries which used to earn profit. In general, collieries were not
running in losses; as private owners would not allow their investment
to go waste. Collieries normally were situated in remote areas and far
from the town. The Managers used to enjoy better accommodation, car
and other facilities. In turn, the Managers used to remain watchful
about the activities of mines round the clock. Meeting with DGMS,
Mine Planning, Production, Despatch realisation, etc., would all come
under Managers purview. Though every evening owners would take
the account of daily production and despatch report. The Managers
were quite noteable person in the industry for their responsibilities,
prestige and perquisite. The general scenario of a mine was minimum
number of workers on roll, and it was controllable. Generally
emergency work used to be carried out by Contractors workers.
System of seasonal and Badli workers were in vogue.
Hardly a union in a colliery used to operate and workers
generally had to obey instructions of the Managers. Reward and
punishment was not at all difficult. Less number of companys
quarters were available. Welfare facilities were not available in small or
medium sized mines.
Managers had a team of Asst. Manager. In large mine there used
to be one Labour Officer, a few PGPTs, highly skilled supervisors, Head
Clerk, Store Clerk, besides other general Clerks, and a Medical Officer.
In general, colliery used to maintain less number of time rated workers
and surface workers. Mostly piece rated workers were there for
underground coal loading as well as on surface for loading coal in the
trucks and wagons.
Managers of a large mine used to be a very senior person.
Other advantages in the earlier days were 156

There was no top heavy management.

Decision was taken at the mine level.

No major IR problem.

Delegation of authority upto Mining Sirdar level.

Regular discussion with Asst. Managers, Surveyor,

Overman, by Manager regarding day to day performance,
production, despatches, profit and loss.

There was wide gap in the pay packet of Managers and other
officers, as a result successful Managers were regarded as superior
most person and defacto owner of the mine.
If all the above were taken to be of advantage, there were many
disadvantages; like obeying the owners and to safeguard owners
interest. During those days barring a few successful companies, there
was no promotional avenue. Managers used to remain as Managers for
years. In larger mines under enlightened owners, Managers could
aspire to become agent or Dy.CME.
Now a days, Manager is having a large number of superior
officials above him like Agent, Area officials and General Manager and
in the corporate office, Directors, etc.
These days, however, there has been avenues for promotion and
scope to earn experience in various types of underground mines,
inclines, opencast including having opportunity to work in mechanised
systems, powered support Longwall Face. There are also scope for
development in Planning and Design discipline and horizontal
movement to other disciplines. Earlier days, a Manager used to retire
as Manager which however has changed now and there is a scope for
promotional growth.
A Manager wants to see him in some position as he is in a huge
industry, where people in his grade are hundreds in number. He loses
his identity in the company. He is sure that many senior officers in the
corporate level do not know him even. Managers with such position
without any identity, before the higher management, considers his
position insignificant when he tries to assess himself in the holding
company in totality. Therefore, first thing he tries not to identify
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himself as an officer of the total coal industry rather he makes himself,

identified within the local Area.
When this is the mental make up, he comes and joins a mine
having 2/3 units at a radius of 1-2-3 Kms. He finds himself on
assuming charges as the only new person in the colliery, who might
have come to bring change.
The Head Clerk, Store Keeper, Lamp Cabin Staff, Surveyor,
Loading Clerk, Mining Staff and all union men know the mine from
inception possibly have been in the mine for a long long period.
At the same time, he has officers team - with a number of Under
Managers, PGPTs, Engineers, Asst. Engineer, a dozen of supervisors in
Engineering, Mining discipline and Office Superintendents and
number of workers in various odd categories who, due to age, cannot
be retrained. A group of youngsters are available, who did not come
through selection but have entered the mine through some provisions
of wage agreement in place of their parents who happened to be the
employees of the collieries. Inspite of such situations, challenges need
to be taken by the managers. There cannot be any readymade solution
to achieve success but systematic planning, sincerity to the purpose,
devotion to works and honest approach will make a Managers position
strong.
The Tasks of the Managers
To transform the inputs through Managerial activities grouped
into the functions of Planning
Organising
Re-energizing
the system

Staffing

Facilitated by Communication
that also links the organisation
with the external environment

Leading
Controlling
To produce outputs
External Environment
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Planning
Planning is essential for any human activity either at individual,
family, society, organisational or at a national level. The very essence
of planning is the phenomenon of time as defined subjectively by the
occurance of events. The future exists only as a projection of the
present. The purpose of planning is to anticipate the future and in
some sense, to fashion it according to the requirements for
organisational survival and growth.
Corporate planning is process of setting objectives and then
formulating strategies and action plans to achieve these objectives
bearing in mind changes in the environment. The uniqueness of a
corporate plan that distinguishes it from any other type of plan such
as production plan, financial plan, project plan, etc., is its capability to
integrate all these plans towards a common corporate objective. All
these plans put together in no case mean that a corporate plan is
ready but all these plans should be off shoots of corporate plan of a
company.
Long range planning does not deal with future decisions. It deals
with the futurity of present decisions. This decision making is under
ambiguous circumstances. This means that the planning takes place
in an environment in which the goals, the constraints and the
consequences of possible actions are not known precisely, i.e. the
transition from membership in one set to another is gradual rather
than abrupt.
Organisation
Mining management today has an obligation and challenge
which never presented itself to its predecessors. In the early days of
Nationalisation, a drive for coal at any price resulted in a certain
complacency regarding financial results. At the same time, the much
needed overhaul of the industry demanded the capital investment
which has now become an embarassment; nevertheless, the industry
could not have continued to meet its commitments without such
reconstruction. Early move towards increasing productivity were set
back with the over-production of coal and resultant stocking, causing
a change of policy and a reversion to more conventional form of coal
cutting. Accepting all these points, it is now to realise that the wheel
has turned full cycle and we are at the point in time when finance in
the industry are predominant. Accepting the position as it stands, we
have to get the very best from existing workings with existing plans. To
159

overcome such a situation, solution must have to be obtained. We

must accept that to survive, the industry has to show results in
productivity considerably higher than anything achieved upto the
present. Reconstruction and modern technology have already begun to
pay off. The key person in this is the Man in closest touch with the
situation, namely the Manager, at the pit. Direction and assistance
can come from higher level but plan must be successful or failure in
the majority of the cases as a result of organisation and
implementation at pit level. For this purpose, Managers have to be
given a team for his support.
Staffing
Considering the line management from Manager to Under
Manager, Overman, Mining Sirdar, there is nothing basically wrong
having four levels of line management at a pit; what is wrong is failure
to appreciate that the number at each level must vary according to the
extant of their responsibilities and to the number of subordinate that
they can effectively control.
Considering the high concentration of machines and production,
appointment for one under Manager for each face and one Overman
for each shift on that face is to be considered.This would elevate the
Under Manager from the Overman, into which he too often degenerates
to a man with time to think and to exercise his proper Managerial
function. Mining Sirdar would be able to assist the Overman as
required, but primarily, they would be freed to which tend to be
aggravated by rapid advance. So far as functional staff is concerned, it
is necessary to have adequate staff to provide detailed information to
colliery manager regarding cost, store items, production, despatch, etc.
In fact, the Manager of today now needs a Personnel Administration
Department with officer and Staff of real calibre, if the work of the
various functional staff under him is to be properly co-ordinated.
A Mining Engineer should be there in each pit as a kind of
technical Assistant of the Manager with a variety of persons in method
study, mechanisation and other specialist branches of information
available to him so that Management are kept abreast of modern
scientific development and knowhow. These developments to have
effectiveness, Mine Managers should be posted with uptodate
information by Area. This is a kind of technical intelligence service. In
Military, it is called Intelligence process and breaks down into three
heading : Collection, Synthesis and Dissemination.
160

In coal mines, information is collected in colliery but is collated

at Area and in Corporate level it is synthesized. But what happens to
disseminate possibly, it takes place rarely. With the changes in system
of work, there is an increasing need for dissemination.
Manager of a Pit has neither the time to abstract relevant
information nor to conduct own research of data available. Managers
Clerk should do all this and may be attached to technical service
section. He should prepare statement of production, despatch, breakdowns, wagons supplied, etc. and all other statement of importance.
A further point which will require consideration is the need for
increased supervision by technical and qualified staff.
To have cohesive teams of dynamism, good gesture and attitude,
various groups are to be developed. Groups are to be allowed to go
through natural stages so that ultimately they form into effective
teams.
When a few members are called and asked to act in a group, the
members pass through the phase of
i)

Forming

ii)

Storming

iii)

Norming

iv)

Performing

(i)

They want to know purpose and goal of meeting.

They may want specific points of objectives clarification

(ii)

Group members selling their ideas and try to

consider other members to follow their proposed
action.

(iii)

Group form into team and active listening start,

team spirit is generated. Members being to be
participants in a good team, constructive
questionering.

(iv)

Polite phase - people get to know each others mind

161

- hear their points - conflict is avoided.

Spirit estimate - The Team shows high morale and
intense loyality. At this stage no new members
should be included.
Controlling
While on the other side of managing task, things are not always
straight, simple. Ideal conditions do not exist in course of
Administration. Condition has to be, however, created and then
according to analysis and careful study, action and steps need to be
taken. Bigger the task slower the speed, when majority Assistants are
allegiance then bigger discussion can be sorted out quickly and with
less effort.
Condition 1

When alone to try and establish a good image

Low profile
to watch and start action

Condition 2

when covered 10% assistants and earned their loyalty and could
create an image.
identify the problem
to start persuation jointly
to have individual interview
to appreciate Assistant who have clear image and reputation
to identify constraints, negative attitude of Assistants and to
have frequent group meetings.
priority be fixed for task and to start work

Condition 3

when above 50% Assistants respect is earned to identify the

Assistants not in line
to have open door policy

162

Need to Change Attitude is Major Challenge.

Colliery Managers often give lack of discipline as the reason for
the low standard of workmanship prevailing at their colliery. This is
probably true, but it is also probable that present day, Colliery
Managers have not the weapons at their disposal to enforce discipline
as had the colliery Manager in the past. It is certain that they have no
wish to adopt the methods of days gone by but even at present day
condition, discipline can be improved and maintained and so bring
about greater safety and a high standard of efficiency.
How it is to be done? It is suggested that the colliery Manager
should first discipline themselves.

They should set themselves a high standard the manner in

which they carry out their own duties and do their utmost to
achieve this.

They should control themselves in a proper manner when

dealing with junior officials or workmen. Junior officials
should also be taught how to discipline themselves.

The Manager should instruct them in the proper method of

carrying out their duties and they should also be advised how to
behave towards employees. When this has been achieved, the
Management will be in a position to ask even insist that workmen
behave in the same manner and carry out their work properly.
Colliery Managers will of course, need to take all steps possible
to see that workmen understand what is required of them and why it
is required. They should strive to improve communication between the
Management and the men and between the men and the Management.
Though this is clearly the duties of Management, even colliery
Managers should never hesitate to seek the help and advice of the
appropriate trade union officials in improving and maintaining results
and discipline at their colliery.
There can be little doubt that most workmen at any colliery are
anxious to do their jobs in a workman like manner and like to see
other workmen do their jobs in the same way. Employees like to see
that where they work have
163

a. A consistant reputation.
b. High growth in assets, turn over and profit.
They also like to see good results being achieved at their colliery.
In short, these men want to be proud of their pit and to be in a
position to boast about the results being obtained there. Colliery
Manager would be well to seek the help of these men in their efforts to
improve discipline and to uplift the standard of work and efficiency.
To organise all these, a more scientific approach to Management
is necessary. It lies, in fact, in the training of Managers and other
executive personnel the art of Management. Management has been
defined as the art of creating Industrial Relations in order to secure
co-operation. The Managers own initiative in putting into practice
modern ideas on Management and in endeavouring to allay mistrust
and antagonism and hence in securing true co-operation, is
undoubtedly one of the main factors contributing to improvement in
Industrial life.
The factors that play a vital part in good management is
Leadership. One can define the function of Leadership as
a.
b.
c.
d.

effective representation
initiative and initiation
sound administration
just interpretation

Leadership thrives where people have clear objective. Leadership

involves being allowed to make mistakes; it results in positive attitude
towards problem solving by making people accountable for solutions
rather than just for the problem.
Leadership thrives where people have clear objective. Leadership
involves being allowed to make mistakes; it results in positive attitude
towards problem solving by making people accountable for solutions
rather than just for the problem.
Leadership provide a clear Mission which they
impassionately themselves and incite others to subscribe to Managers chose a Leadership style. For a Leader:-

164

believe

Less direct control the Manager has over specific courses of

action.
The greater the time available for considering major
questions.
Less time is required for routine issues.
Greater is the freedom of the group to influence decisions.
Greater the opportunity for subordinate development.
Greater is the group acceptance of responsibility for its
action.

There are atleast three aspects of the relationship between the

leaders and his followers or subordinates which effect the likelihood of
their voluntarily accepting his decisions. They can be thought of as
basis of power from which a Leader can operate and which can enable
him to be more autocratic in his decision making. They are 1. Legitimate Power - Do subordinates think that the
Leaders should make the decision, i.e.that it is his
legitimate right to do so.
2. Expert Power - Do subordinates think that the Leader
is the expert on the matter of questions.
3. Attractive Power - Do the subordinates greatly admire
the Leader, value his approval and wish to model their
behaviour after the Leader.
Leader, who in the eyes of subordinates, posses any one of these
basis of power are more likely to get the decision accepted than those
who lack them.
It must be emphasised that - Leadership is not domination.
The following are the comparision between the Leaders and a Boss as
per F.A.Ryan.
Leader

Boss

Develops his men

Drives his men

Depends and commands

goodwill

Depends on authority

Inspires initiative and

enthusiasm

Evokes fear

165

Says We

Says I

Says how it is done

Knows how it is done

Shows how to do

Knows how it is done

Makes it a challenge

Makes it a drudgery

Shows what is wrong

Shows who is wrong

Uses them

Abuses men

Commands respect

Demands respect

The skills required for quality leadership are

Professional technical academic knowledge, extensive,

thorough and up-to-date.

Considerable relevant experience.

Quick to grasp the point.

Expresses himself clearly and effectively.

Good reasoning power and balanced judgement.

Pleasant personality and acceptable.

Shows persistence, energy, drive, ensure a job through.

Optimism is one of the most essential quality for being

successful. This winning quality is essential for a leader. Every
optimist may not be successful but every successful man is an
optimistic.
An optimistic looks brighter side of every situation. It develops
thoughts of hope and courage and also instills cheerfulness.
It is, however, necessary to think ahead and to assess the
adverse consequences of decision.
166

Problems of a Manager

Working environment - Underground work, Location of

working place (remote)

Family problems - Schooling of children

Stress/strain - Large industry

Psychological - Approach of Boss and Understaff, attitude

of people towards work, competition and growth.
With all these, a Manager faces :
(a)
(b)
(c)

Industrial
Social and
Psychological problems

To negotiate this, a group of young executives need to be given a

strength, a power to fight and overcome problems.
There cannot be any Ten Commandments or tips for man
management in tackling human problems arising out of work. But
definitely preparation can be made to face such aspects and with
normal and spontaneous flow, things can be sorted out. However, the
approach needs to be sincere, honest, straightforward. The
preparations are actually to acquire and add such qualities within
oneself and to have character, which will help to secure leadership and
respect from others.
It is of paramount importance to management science. It teaches
to develop the good virtues within the self. It preaches to manage
yourself before you manage others.
If one can articulate the approach, the behaviour, management
of work and person attached to work become simple. This is true for all
the situations and all the periods to come.
Thousands of our youths joined the hard and continuous
struggle movement for Indias political freedom and social upliftment of
the downtrodden masses under the leadership of Gandhiji. Many
suffered and were jailed and many lives were lost during freedom
movement, ultimately the Nation achieved independence.
167

After the independence the free India saw number of unfree

men. Most of our educated people now remain busy with their own
affairs and material gain. They remain content at the low level of
seeing nothing beyond their little horizon of a few yards - the routine
work, eating, drinking, earning and begetting, following each other in
mathematical precision - Vivekananda.
When thousands and
thousands of people of the country remain illiterate, underfed and are
at sub human level, the so called educated of the society remain self
centred and are busy for their pay, prospect and promotion, or
running after wealth and more wealth for their families. Do all such
people try sincerely to bring out poor people from poverty, they have
hardly any time to think for the welfare of common people.
When persons associated to organisation and infused with
awareness of their responsibility and function as enlightened citizen to
public work, the entire society gains and common people get benefit.
Progress and development can be achieved only through combined
efforts and co-operation of all Industry is a part of society through
which society achieves growth. In industry also the orientation and
change in out look makes management and administration dynamic.
The philosophy of management is, therefore, the guiding force.
The basic objective, belief and values of any industry requires to
be so understood that managements philosophy is clear to all.
Many of our people have no knowledge of their philosophy of life
and work and we have been imitating our neighbours, or western
methods. It makes us empty, hollow, vacant without any
philosophy. It makes one indisciplined. A nation cannot become
great without self-discipline : and self discipline is the mark of
freeman as indiscipline is the mark of a slave. We are still
indisciplined, people riddled with petty jealousies. We use our
intelligence only to advance our own cause in total neglect of the
nation. We forget that such life is empty inspite of high or low
levels of money or power, such people are dead than alive.
- Vivekananda.
Most of our upper class people have been missing the
opportunity to educate and raise the level of our common people and
build up a great nation. Many of them, have built their career at the
cost of common people.
168

This is a country backed with culture and heritage of ancient

days. The spiritual base is rather unique to India and its ethos cover a
wide range of thoughts - characters, moral, ideals, Indian environment
provides opportunity for the Managers to equip themselves with
virtues and activities backed by intellectual belief with disciplined way
of developing oneself. Our heritage and culture has taught the
following ways to prepare oneself.

CHA

Set goals with high ideals.

Work with a sense of altruism.
To have faith in human endeavour.
To develop wisdom.
To be gentle to others.
To overcome laziness.
To develop character.
To follow the path of righteousness
To have good thoughts, deeds and words.
To be balanced, and sensitive to the problems of others.
To be free from envy
Better cope with failure
Be delight with vision
Be tolerant
To uphold morality
Avoid waste
Be concerned about improvement of human life
Be fair in all dealings
RACTER

As per Peter Drucker

Importance of character in regard to Productivity No matter how knowledgeable, how brilliant, how successful a man is,
if he lacks in character and integrity, he will destroy. He destroys his
people, the most valuable resource of the enterprise. He destroys
spirit and he destroys performance.
Lord Budha valued people attitude and their mental progress
very high. Some verses from Dharmapada Better to live in virtue and wisdom for one day than to live a hundred
years with an evil and indisciplined mind.
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Better to live in goodness and wisdom for one day than live an ignorant
and indisciplined life for a hundred years.

Now is the time to wake up when you are young and strong.
Those
who wake and waver with a weak will and divided
mind will
never find the way to pure wisdom.

Be vigilant, guard your mind against negative thoughts. Pull

yourself out of bad ways as an elephant raises himself out of the
mud.

Guard your thoughts, words and deeds. These three disciplines

will speed you along the path to pure wisdom.

They live for themselves and have forgotten others. Selfishness

and the evils flowing from self-centredness, have brought no positive
result to our country. The educated mass has to, therefore, work hard
to reverse this downward trend by participating in nation building
process.

***

170

21
WAY TO SUCCESS
The success depends on

A master mind determination

Definite aim

Self confidence

Initiative and leadership

Imagination

Enthusiasm

Concentration, Co-operation and tolerance

Self control

Every one can, of course, talk but a

conversation which needs real skill and practice.

few can make

All that is required for effective conversation is simple, even day

remark with smile that indirectly projects ones desire to be friendly.
This encourages other to be at ease and speak.
One who will make conversation has to be a good listener. It is
no use of monopolising the conversation on ones own : Others must
be given chance to respond and express views.

To develop self control skill

To refuse to take insults personally

To create a win-win position

To compose thoughts whenever conflict arises and to act

purposefully (Presence of mind, coolness and sense of
proportion are necessary during sudden and unexpected
situation)

To control temper

To recognise other persons points

171

To limit time with each associated

To fill mind consciously and deliberately with bright and cheerful

thoughts.

To face a day with confidence and courage

To view the difficulties and problems as challenge

If you want to keep-Keep your promise

If you want to cultivate-Cultivate good manner

If you want to read-Read good books

If you want to dress-Dress wounds of others

If you want to kill-Kill your pride

The single characteristic quality for success is positive mental

attitude. There are many ingredients for winning attitude but the most
important is self-honesty.
In order to cultivate self-honesty

To assume responsibility of action

To follow own goal

Not to escape
To think positively about every thing.

To build good habits. Good habits will help to achieve goal

To be enthusiastic, enthusiasm attract other people,

enthusiastic persons radiate joy and make other to share.

To be empathetic. Empathy is the capacity to share others

feeling. By being empathetic one can bring other round to
accept his point of view.
172

To think creatively, there are two types of people in the

industry. One is work processor and other is thinker - a
creative thinker.

To be a good decision maker for a true achiever. It is to

find out better answers to any problem.

Applying judgement and fairness one can make appropriate

decision. No decision or playing safe is a bad approach. It creates
problem and complication as solution get delayed. For a good decision,
one must have a good grasp of the subject.
To delegate by design is essential. It is to be delegated to
someone
else who can perform well or even better.

***

173

CONCLUSION
The Indian economy was highly protected from stiff
competition of the global market forces till the mid-eighties. Though a
strong foundation of the economy was laid by the Public Sector
Undertakings, many of the PSUs failed miserably in achieving
commercial success and became inefficient units.
Till recently, the Indian market was having limited opportunities
because of too many government controls and restrictions. The
government introduced a series of reforms in its economic policies
from July, 1991.
With rising import cost, inflation and reduced purchasing
capacity, many industries are facing recession. To stop excess money
supply, government had to cut its expenditure in many areas and this
resulted in spiralling recession as government is still the major buyer.
Increasing competition from within and abroad has led many
companies to reformulate strategies to survive and succeed.
Coal Industry has been passing through a critical phase.
Production of required grade of coal and its regular distribution has
become the major task before the coal Companies. Of late, the coal
market has been fluctuating, which has led to financial set back in
many coal Companies.
With the shrinkage and less paying capacity of coal consuming
industries, a void has been created resulting sudden financial crunch
in some of the coal companies. This situation has created a vicious
circle.
(a)

Less movement of coal so raised, will lead to

accumulation of coal stock.

(b)

Forced reduction in coal production.

(c)

Production rate diminishes.

(d)

Development of mine-project gets upset.

(e)

The Industrys paying capacity gets restricted.

174

To break the vicious circle, marketing department needs to be

geared up to meet the present situations.
Industry aims for its position in the market through proper
marketing of its products. Produced items can only command for its
position through assured quality and quantity agreed in the supply
contract. The consumer expects value for the investment and hence
quality management assumes greater importance in the present day.
Quality management is based on the feed back from the
customers about the product and service. The focus on quality
through continuous improvement is the key concept to perceive the
production process as an integrated system that originates with the
customer and ends with the customer.
This industry of such huge magnitude with varieties of problems
needs to have clear plan and specific mission which will spell out
status of the industry, the structure of organisation and the standard
of managerial teams for the next five years. The coal industry has to be
ready to meet the challenges of future changes. Every individual,
organisation, government face a single choice, that is to think - rethink the future or be compelled to think future. Those who choose the
first option have fair chance to prosper. Those who choose second will
be overtaken by changes.
The traditional coal industry which has faced ups and downs in
the past 200 years has to occupy the position of an institution like
visionary Company. The industry has to prosper over a long period of
time and to establish to last being dependent with distinct values and
ethics. These values are Respect, Excellence, Innovation and
Ownership.
The industry will grow with real leaders, having ability to
motivate others to the highest level of achievement. The industry will
be successful if the employees are motivated by an ideology. With the
empowerment employees may become responsible for success of the
organisation. It is the Managerial group backed by motivated
employees who has to steer the industry to tide over the present
critical situation. This may necessitate coming together, keeping
together and working together - as coming together is beginning,
keeping together is progress and working together is success.
- Henry Ford.
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With action oriented, informal team, it will be possible to keep units

working together. A positive attitude to risk taking, freedom to manage
with clear frame work of necessary restriction and tight control over
the areas that matter, will definitely lead the industry to success.

***

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177