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Submitted as Partial fulfillment of Award of MBA Degree




(Associate professor)

Geethanjali college of Engineering & Technology

Department of Management Studies

Geethanjali College of Engineering & Technology

Cheeryal-501301, Kessar (M), R.R. Dist., A.P.


Hyderabad, A.P.


This is to certify that project entitled COMMUNICATION IN

PSUS is the bonafied work of Ms. E.SWARNA SRI Bearing Roll

No. 07R11E0054 submitted in department of management Studies

of Geethanjali College of Engineering & Technology, Cheeryal-

501301, RR District, A.P., for partial fulfillment of award of M.B.A

(Masters of Business Administration) degree by Jawaharlal Nehru

technological University, A.P. Hyderabad.

GUIDE HOD Principal




I declare that the dissertation under the title “Communication

in public sector undertakings” is an authentic and solely prepared

by me. This has not been submitted either in part or in full for any

degree or diploma of any university earlier.

Place: Cheeryal E.SWARNA SRI

Date: 07R11E0054


This project is an authentic work of mine prepared

during the study of SINGARENI COLLIERIES
COMPANY LTD, Kothagudem.

I express my deepest gratitude to guide

Sri A. Buchi Prasad (Welfare Officer),


Whose guidance at every stage as enables me to submit

this project in time.

For most I would like to thank and express my

gratitude to other staff members who has spared their
valuable time to discuss about the project for it to gain the
objective. They have also been a continued source of

I am also grateful to PROF. DR. M. SRINIVAS RAO

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


Chapter Topic Page No




1. List of Tables
2. List of Graphs


1. Conclusions
2. Suggestions

73 - 75
1. Questionnaire
2. Bibliography


The present study organized in four chapters as Detailed below:

Chapter-1: The first chapter includes Industry profile, Introduction to

the topic, facilities provided by the organization and relations maintained by
the organization, Need for the study, objectives, Research Methodology and
Limitations of the study.

Chapter-2: The second chapter consists of profile of the company

and its history.

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

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



The importance of communication was not very much highlighted by

the traditionalists. They took organisation more as a technical and formal
structure hence the need of communication was undermined. But
Hawthorne experiments conducted by Elton Mayo and his colleagues
observed that organisations are social structures consisting of people
working at different levels, having multiple differences. Their proper
interactions are necessary for achieving common goals. Therefore, the
importance of communication was realised more after thirties and the world
of modern day management is really a world of communication. Now-a-
days, it is considered to be an important human skill. The ability to
communicate effectively has become one of the major skills of a successful
manager. According to a research conducted by Paul Pigors and C.
Mayer’s, an executive spends his near about 40% time in communication.
In some cases communication requires up to 60% of manager’s time. The
lowest levels of managers, such as foremen, may spend less time in
communication activities but the higher one is in the organisational
hierarchy, the more likely he is to spend greater time in communication.

An ex-president of American Management Association once observed

that the number one management problem today is communication. Bernard
has called it the foundation of all group activities. In the words of George
R. Terry. “Its communication serves as the lubricant fostering for the
smooth operations of the management process.”

Impact of good communication on production: -

 Good communication relations improve the moral of the

 Complete mental revolution. i.e., better understanding
towards each other.
 New development programs may be introduced.
 It will reduce wastage on all fronts.
 It will reduce industrial disputes to the maximum by
promoting co-operation.


 To study the Formal communication channels of SCCL.

 To study the working of informal communication channels.

 To study the semantic Barriers in SCCL

 To study the psychological Barriers of SCCL

 To study Structural Barriers of SCCL.

 To study the Personal Barriers in SCCL.

 To suggest effective remedial measures in improving

communication in SCCL.

 To study the methods of communication.

 To study the techniques used in SCCL in communication.

 To know the problems and requirements of the employees.

 To understand employee employer relations

 To study the industrial Harmonious of SCCL.

 To study employment related issues of SCCL.


Research Design : Descriptive in nature.

Population : Employees of the organization.

Data source : Primary and secondary data.

Primary Data : Data collected through administering the

Structured questionnaire.

Secondary Data : It is collected from the company Material,

Textbooks and website.

Research Approach : Survey method.

Research Instrument: A well-structured questionnaire.

Sample Size : 100

Sampling Technique : Random Sampling.


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

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

 While filling the questionnaire employees could not provide 100

percent accurate information because of their illiteracy and personal

 While calculating the percentages, approximations are made to the

nearest figures. This may not give true picture of the study.


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



“Communication is sharing of understanding.”

Any business organisation is a human group constituted for certain

specified objectives. The achievement of these objectives largely depends
upon the fact that all human efforts are properly co-ordinated and
integrated. Individuals in the organisation performing different activities
are functionally interrelated. The working and maintaining of these
relationships is possible only through communication provides for
exchange of information. No business organisation can work without
communication network. It is an important human skill. The ability to
communicate effectively is one of major skills of a manager. According to a
research conducted by Paul Pigors and C. Mayers, an executive, superior or
manager spends his near about 70% time in communication. This face-to-
face communication plays a vital role in managerial decision-making. As a
Benjamin Balinsky put it; “If there is any short-cut to execute
effectiveness, it is the mastery of the art of face-to-face communication.”

Definitions of Communication

Communication is a word derived from the Latin ‘Communi-care’

literally meaning to make common, to share, to impart, convey or transmit.

Communication is the process through which two or more

persons come to exchange ideas and understanding among themselves.
Newman and Summer define communication as an exchange of facts, ideas,
opinions and motions, by two or more persons. Other definitions of
communication are as follows:

(1) “Communication is an intercourse by words, letters, symbols or

manager: and is a way that one organisation member shares meaning and
understanding with another.”
--- Koontz and O’Donnell

(2) “Communication is the sum of all the things one person does when
he wants to create understanding in the mind of another. It involves a
systematic and continuous process of telling, listening and understanding.”
--- Allen. Louis A.

(3) “The word Communication describes the process of conveying

messages (facts, ideas, attitudes and opinions) from one person to another
so that they are understood.”
---- Commin M. W.

(4) “Communication is an exchange of facts, ideas, opinions or
emotions by two or more persons.”
--- Newman and Summer.
(5) “Communication is defined as intercourse by words, letters,
symbols or message and a way that one organisation member shares
meaning and understanding with another.”
--- Bellows, Gilson and Odiorne.

Thus we see that Communication in organisations has the following


(i) It involves more than one person.

(ii) It deals with the transmission of facts and feelings both.
(iii) Medias of Communication may be numerous.
(iv) As a business organisation has continuity, the process of
communication is also a continuous process.
(v) The effectiveness of communication largely depends upon the
proper understanding of what is being communicated and what is being
received and then responded.
Thus the different views on communication emphasize the
understanding element in the communication. Since, sharing of
understanding would be possible only when the person, to which the
message is meant, understand it, in the same sense in which the sender of
the message waits him to understand. Thus, communication involves
something more than more transmission of message and physical receipt
thereof. The correct interpretation and understanding of the message is
important from the point of view if organizational efficiency.
As such, the greater the degree of understanding present in the
communication, the more likelihood that human action will proceed in the
direction of accomplishing organizational goals.

Communication Process ---- Communication has been defined as a

process. The process is a concept of changing rather than static existence.
Events and relationships are seen as dynamic, continuous and flexible and
are structed only in a relative sense. Communication process, as such, must
be considered, as a whole, a continuous and dynamic interaction both
affecting and being affected by many variables.

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


| |


Thus the above figure shows the following elements:

(1)Sender--- The person, who intends to make contact with objective of

passing information and ideas to other persons, is known as sender.

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

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

(3)Encoding ------ Since the subject-matter of communication is abstract and

intangible, its transmissing requires the use of certain symbols such as
words, actions or pictures, etc. Conversion of the subject-matter into these
symbols is the process of encoding.

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

certain channel or medium.

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

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

give him the meaning of the message.

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

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

Different types of communications:-

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



| | |

According to Organisational | According to Expression

Structure | |

| | |

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

| | | | |

Formal Informal | Oral Written


| | |

Downward Upward Horizontal

Communications Communications Communications

(A) According to organizational Structure

(1) Formal communications--- Such communications are those

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

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

(B) According to Direction of Communication

(1) Downward Communications---Communications which flow

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

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

(C) According to way of Expression

According to way of expression, the communication may be oral or

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

In an organisation there is a number of a channel or paths connecting
various positions for the purpose of communication. The sum total of these
channels is referred to as ‘communication network.’ This is made up two
types of channels which are interrelated and inter-dependent, viz. formal
and informal ones. The existence of these channels is necessary for
organizational communication further, these channels also determine, to a
very significance extent, the smoothness, rapidity and correctness with
which the messages flow in an organisation. If the channel is to narrow
considering the volume of messages flowing through it, the messages may
get delayed or blocked. Similarly, if the channel is too long again the
something may happen. Besides the existence of a number of filter points in
the channel may also affect the accuracy of the message flowing through it
—something may get added or taken away from the original message at
each of these points.

(A)Communications Through Channel of command


Formal Communications of communication include established

and organizational channel and officially recognised positions. So the
formal channel, as the very name implies, is the deliberately created
officially prescribed path for flow of communication between the various
positions in the organisation. Thus, it is a deliberate attempt to regulate the
flow of organisational communication so as to make it orderly and thereby
to ensure that information flows smoothly, accurately and timely.
We often hear the phase, ‘through proper channel’. It explains the
essence of formal channels of combinations. This officially prescribed
communication network may be designed on basic of single or multiple
channels. A single channel communication network prescribes only one
path of communication for any particular position and all communications
to that position would have necessarily to flow through that path only.
Ordinarily, this path is like of authority thinking a position to its line
superior. It is also known as ‘channel of command’, and commonly referred
to as ‘through proper channel’. Its implication is that all communications to
and from a position should flow through the line of superior or subordinates

Merits of Communication through Channel and Command

The formal communication or communication through channels of
command has the following advantages:-

(1) Maintenance of Authority of the Officers --- The formal

communication helps the maintenance of authority of the line officers,
subordinates respect their superiors. It helps in exercising control over
subordinates and fixation of responsibility in respect of activities to be
carried on by a person in the organisation.
(2) Sound and Proper Communication --- An immediate superior
has a direct contact with his subordinates He understands their attitudes,
wants, level, of intelligence and capacity well. He can determine it
efficiently as to how, what and at what time the information is to be
communicated and to whom. It is easy to maintain and orderly in nature.
(3) Other advantages --- Formal communication offers certain other
advantages too. The formal organisation moulds the communication
process along certain lines. It receives the support of line authorities and
closeness of superior-subordinates reduces the changes of

Demerits of Formal Communications

Formal communication is not an unmixed blessing. It has the

following disadvantages too:-
(1) Overload to Work — In modern business organisations, there is
a lot of information, messages and other things to be communication that if
transmitted through formal lines of authority only, it will increase the
workload on line officers. They will not be able to perform their other
functions well.
(2) Decay in Accuracy --- It provides bottlenecks in the flow of
informations. It enhances the organisational distance also and the changes
of more transmission errors are likely to incur there. Screening of
information at various positions reduces the accuracy of the message.
(3) Overlook by Line Officers --- Communication through chains
of command is not suitable for upward communications at all. Line Officers
do not take any interest in the grievances of their subordinates. They do not
like to forward the suggestions to the top management given by their
subordinates. They naturally introduce their own views into information.
This bias changes the nature and characteristics of information at all when it
reaches at its final destination.

Thus we see that formal communication is useful in downward
communication only. One way of overcoming these limitations is to
provide a number of communication channels linking one position with
various other positions. Thus, the system of multiple channels may improve
the situation for some cases but an unlimited use of this system may,
however, cause confusion and also undermine the superior’s authority. So,
along with formal communication the informal channels should also be
developed for efficient and effective communication within an enterprise.


It is also known as ‘grapevine communications’. The

communications to be made through informal channels of communication
is called informal communication. It is not the result of an official action
but of the operation of personnel, social and group relations of the people.
A part from their formal organisational relationships, people have got social
or personal relationships also. Such informal relations may be based on
upon personal friendship, membership of the same club or origin from the
same place. Such channels of communication serve as a quick vehicle for
messages. While formal communication exists to meet the utilitarian needs
of the organisation, informal communication is the method by which people
carry on their non-programmed activities within the formal boundaries of
the system. Such communications are very fast, spontaneous and flexible. It
is a very active channel of communication through which the information is
carried immediately.

Merits of Informal Communication --- Informal channels of

communication perform a positive service to the organisation. If operates
with much greater speed. Moreover, their might be certain subject matter of
communication which do not require their transmission through the formal
channel. The formal network of communications is often relatively static;
while the organisation it seek to active is dynamic and much react quickly
to its changing environment. Consequently, the informal non-stable
network of communications comes into frequently plan in every
organisation. The informal communication needs of the various persons in
the organisation, more particularly those persons who freely mix up with
others and rely upon informal relationships. A typical informal
communication network involves people within the same hierarchy level of
an organisation, for example, among various departmental managers. Such
communication enhances the ability of the organisation to meet sudden

Demerits of Informal Communication --- Informal communication
has certain basic limitations also. It is less orderly and less static also.
Sometimes messages communicated through the informal channel are so
erratic that any action based on these may lead to difficult situation to the
organisation. Oftenly, it carries in accurate information, half truths, rumours
and distorted information. In this case, the irresponsibility of the persons
communicating through the informal channel is the most important factor.
Since origin and direction of the flow of information is hard to pinpoint, it
is difficult of assign responsibility for false information or morale lowering
rumours. Moreover, each person conveying the message mat add, or
subtract or change the origin message according to this motive, information
communication problems multiply. There is chance that by the time a
communication completes a complex journey it may be completely
The informal communication is the part and parcel of the
organisational process. The only thing management can do in this respect to
take suitable actions to minimise the adverse effects of such channels.
Proper analysis of informal communication and a suitable classification in
this respect would be helpful in making its use towards organisational


The subject matters of communication, i.e., messages, ideas,

suggestions, etc., being abstract and intangible, their transmission and
receipt require use of certain symbols, which become the media of
communication. These symbols may be (i) words(either oral and
written); (ii) pictures (graphs and diagrams, etc) (iii) actions or
gestures including facial expressions. Each of these media may be used
to supplement each other. For example in Face-to-Face communication,
gestures may be used to emphasize a point and diagrams or charts may be
used to classify the point being described in writing. Of these, oral and
written methods of communication are the most important.

Oral communication
In oral communication both the parties to the process, i.e., sender and
receiver exchange their ideas through oral words either in face-to-face
conversation or through any mechanical or electrical devices such as
telephone, etc.

Merits of oral communication – oral communication is very helpful in
face-to-face two-way communication where people can exchange their
feelings freely and clarity regarding on doubt may be easily sought. It has
very high degree of potentiality for speedy and complete interchange of
information. Possibility of gestural communication being used along with
oral one increases the effectiveness of this type of communication since
action speak louder than words. Important points may be emphasized
through actions. Rank and file employees as well as supervisors and even
managers often prefer oral communications. They enjoy the opportunity to
task questions and participate in the discussion. Face-to-face oral
communication is sometimes supplemented by public address systems that
permit managers to speak directly to workers is the workshop.

Demerits of oral communication – It suffers from the disadvantages

of absence of any permanent record of communication. Sometimes, it
becomes time-consuming specially in meeting and conference when after
various deliberations nothing concrete comes out. Sometimes, oral
communication is not taken seriously by the receiver and basic objective of
communication in such cases is not achieved. There is also a possibility the
spoken words are not clearly heard or understood. Sometimes, due to
previous strained relations of superior-subordinate the words are taken in
otherwise sense also.

Written communication

When the communication is reduced into writing, it is called the

written communication. This includes written words, graphs, diagrams,
picture, etc. written communication are extensively used in organisations.
Sometimes, this form of communication becomes indispensable as in the
case of Rules, Orders, Schedules or Policy-matters, etc. The circulars,
magazines, notes and manuals are some common force of written

Merits of Written communication -- Written communication

possesses the capacity of being stored as record for future references. The
communication efforts may be minimized by simultaneous communication
to various points, such as though circulars, etc. it also enables the
communication to take place between distantly placed parties without much
cost. Written communication is more orderly and binding on subordinates
and superiors to take suitable actions in the organisation.

Demerits of Written communication – Written communication,
however, suffers from major drawbacks also. It is very time-consuming
both in terms of preparation and in terms of understanding. There is a
greater chance of communication being misunderstood. Sometimes, it is
more costly in comparison to oral communications.


Each of the different media of communication has its strengths and
weakness which determine its use and suitability for communication in any
particular context. Thus, in some causes, oral communication might be
useful while in others, written communication may be necessary. As such,
one cannot depend upon a particular medium of communication and both of
the medium are complementary to each other. That is why, in practice both
these media are used. Oral communication is however more useful where
the subject-matter is complex and final decision requires deliberations from
the person’s concerned. Moreover, in day to day business and in routine
types of activities, oral communication may be relied upon. But, where the
messages are to be kept for future reference, written communication is the
only alternative.

Form of Communication
Oral and written communications may take a number of shapes
or forms depending upon the situation. The following lists presents some
commonly used ones in communication in different ways.

Oral Written

1. Personal instructions. 1. Rules and instructions

2. Lecture,conferences, Handbook
meetings. 2. Letter circulars and Memos.
3. Interviews. 3. Bulletine and Notice boards
4. Grapevine rumours. 4. Posters
5. Face-to-face 5. Handbooks and Manuals.
conversation. 6. Annual Reports.
6. Telephone, etc. 7. House Magazines.
7. Union channel. 8. Union publications.
9. Personal letters and
10. Complaint procedure.


The sole aim of communication is to keep people informed.

Communication for the sake of communication only is fruitless and
ineffective. It should serve the desired purpose. For this, the management
should develop an effective network of communication. In evolving an
effective system of communication, the management should keep the
following relevant and useful principles of communication in its mind.
(1) Principle of Information -- Commenting on the
‘communications realism’ Terry says that first principle of effective
communication is to ‘inform yourself fully’. It implies the first of all the
sender must be clear in his mind what he wants to communicate. Better the
understanding, effective the communication would be.
(2) Principle of Clarity --- Communication should always be in
common and easily understandable language. The ideas should be clear and
ambiguous. It should be kept in mind that ‘words do not speak themselves
but the speaker gives them meaning’.
(3) Principle of Attention --- The principle aim of communication is
to make the message understood by the recipient; not just the transmission
of ideas from one person to another. It is possible only when the person
being communicated evinces interest and pays proper attention to the
communicator. The principle of actions speaks louder then words—should
be kept in mind by the executive in this respect.
(4) Principle of Consistency --- This principle implies that
messages should not be mutually conflicting; rather they should be in line
with the overall objectives, policies, programmes and procedures of the
concern. It will not be out of place of remark that self –contradictory
messages always create chaos and confusion in the organisation which is
highly detrimental to the efficient running of the enterprise.
(5) Principle of Adequacy ---This principle demands that the
information being sent should be adequate and complete in all respects; as
incomplete information turns out to be extremely, dangerous from the view
point of the business. The adequacy of information being transmitted
depends upon the intellectual capacity of the recipient also the individual
circumstances of each particular case.
(6) Principle of Timeliness --- Ideas must be conveyed at the proper
time, any delay in this respect will make mere historical documents as the
information loses its importance on account of delay.
(7) Principle of Integration --- The primary object of every
communication should be to strengthen the enterprise so that it may enable
itself to accomplish its goals within the set framework. The executives
should always attach due importance to the fact that communication is a
means to an end, not an end in itself. It should be geared toward achieving a
genuine spirit of co-operations among the organisational personnel so that
they may put their mite in the attainment of enterprise goals.
(8) Principle of Informality --- Formal channels of communication
are important and useful in their own place, but experience and practice of
many companies reveal that informal information which is extremely useful
for the purposes of the management. So, management should identify the
dignity of such channels besides using formal communication networks for
funneling information in several directions.
(9) Principle of Feedback --- The next more important principle of
an effective communication system is the existence of Feedback
confirmation. Whether the message has been understood by the receiver in
the same sense in which the sender takes it for and also whether the
recipient is agreed or disagreed to the proposal of the communicator, makes
its essential on the part of the sender to confirm it from the receiver. In case
of verbal communication, exists a number of opportunities to secure
Feedback in comparison to written communication. But for written
communication, the management should drives or evolves suitable means
and ways in this regard for the sake of making communication for effective.
(10) Communication Networks --- Communication networks refer to the
routes through which the exchange transmission of ideas, informations
and opinions flow in the process of being transmitted to the destination
person for whom it is intended. A number of such networks may exist in
the organisation at a particular point of time. But management should
figure out such networks only which will contribute a lot in boosting the
morale of individual members working in the organisation.

Methods of Evaluating the Effectiveness of communication;

Communication is the life blood of and organisation and without
it organisation cannot work effectively. As such, management should
ensure that adequate and smooth communication flows in al directions and
it is effective as well. For this purpose a periodical review of the existing
pattern of communication effectiveness should be made. This review
would, on the one hand, reveal the direction in which the existing fails short
of organisational requirements, and on the other hand, would reveal the
underlying forces responsible for the prevailing state of affairs as also the
actions required to remove these.
There are several methods for evaluating the effectiveness of
communication. There are as under:--


The communication is an important instrument in the hands of

management. An effective communication system improves the
relationship between workers and management. It helps a lot in establishing
peaceful industrial relations too. The morale of employees is improved and
their productivity also goes high. But sometimes communication does not
give the desired results. ‘What is communicated? And how is it
communicated? Is it not important in comparison to this fact that flow
much is understood’. There are many obstacles or barriers in the process of
communication which contribute to its failure. As it has been said that the
greatest enemy of communication is its illusion, is perfectly right.


These barriers arise from the linguistic capacity of the parties
involved. The following are some common forms of semantic barriers:

(i) Badly Expressed Message – Lack of clarity and precision in a

message makes it badly expressed. Poorly chosen and empty words and
phrases, careless omission, lack of coherence, bad organization of ideas,
awkward sentence structure, and inadequate vocabulary, numbering
repetition, jargon, and failure implication are some common faults found in
this case.
(ii)Faulty Translations – Every manager receives various types of
communications from superiors, peers, subordinates and he must translate
information destined for subordinates, peers and superiors into language
suitable to each. Hence the message has to be put into words appropriate to
the framework in which the receiver operates, or it must be accompanied by
an interpretation which will be understood by the receiver.
(ii) Unclarified Assumptions – There are certain communicated
assumptions which underline particularly all messages. Though a message
appears to be specific, its underlying assumptions may not be clear to the
(iii)Specialist’s Language – it is often found that technical personnel and
technical language of their own. This increases their isolation from others and
builds a communication barrier.


Emotional or psychological factors are the prime barriers in

inter-personal communications. The meaning described to a both the parties
The following are important example of emotional barriers:
(i) Premature Evaluation – Regers and Roethlisberger in 1952 first
pointed out this barrier. Premature evaluation is the tendency of
prematurely evaluating communications, rather than to keep an
uncompromised position during the interchange. Such evaluation stops the
transfer to information and begets in the sender a sense of futility.
(ii) Inattention – The pre-occupied mind of a receiver and the
resultant non-listening is one of the major chronic psychological barriers. It
is a common phenomenon that people simply fail to bulletins, notices,
minutes and reports.

(iii) Loss by transmission and Poor Retention – When
communication passes through various levels in the organization,
successive transmissions of the same message are decreasingly accurate. It
is said that in case of oral communications about 30% of the information is
lost in each transmission. Even in case of written communication, loss of
meaning might occur as far as the append interpretation, if any, is
concerned. Poor retention of the information is again a malady. It is shown
that employees retain about 50% of information only, whereas supervisor
retain about 60% of it.
(iv) Undue Reliance on the Written Word – Written word is no
substitute for sound face-to-face relationships and that employees cannot be
persuaded to accept companies’ viewpoints and policies through “slick”,
easy-to-read, well illustrated publications unless there is a fair degree of
mutual trust and confidence between the organization and its employees.
(v) Distrust of
Communicator – It arises out of ill-considered judgements of illogical
decisions or frequent counter mending of the original communication by the
communicator. Repeated experience of this kind gradually conditions the
receiver to delay action of act unenthusiastically, hence making the
communication unsuccessful, though apparently it is complete.
(vi) Failure to communicate – It is quite an accepted fact that
managers often fail to transmit the needed messages. This assuming might
because of laziness on the part of the communicator, or assuming that
“everybody knows”, or procrastination or “hogging” information or
deliberately to embarrass.


(i) Organisational Policy – The general organisational policy

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

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


Personal barriers can also be of 2 types:

1. Barriers in superiors
The role of superiors in communication is very vital. Because of
their hierarchical relationships with subordinates, they act as barriers in a
number of ways discussed below:-

(i) Attitude of Superiors – The attitudes of superiors towards

communication in general or in any particular direction affect the flow of
messages in different directions. For example, if this attitude is
unfavourable, there is greater possibility that messages would not flow
adequately from and/or to superiors.
(ii) Fear of Challenge to Authority – A person is the organisation
always tries to get a higher position and prestige to satisfy his needs. As
such, managers in general try to withhold the information coming down the
line or going up as frequent passing of information may disclose their

(iii) Insistence on proper channel – One of the basic features of
superiors’ exercising of the authority is that they wish to remain in
communications and they do not like any type of by passing may,
sometimes, by necessary but superiors treat this as thwarting of their
authority and blocks the flow of communication.
(iv) Lack of Confidence in Subordinates – Superiors generally
perceive, correct or otherwise, that their subordinates are less competent
and capable, they are not able to advise superiors or they may not have
some information coming downwards.
(v) Ignoring
Communication – Sometimes superiors consciously and deliberately
ignore the communication from their subordinates to maintain their
importance. This works against the willingness of subordinates to
(vi) Lack of Time – Superiors feel, whether correct or otherwise, that
they are overburdened with the work and they have little time to talk to
their subordinates.
(vii) Lack of Awareness – Sometimes, superiors may lack the
awareness about the significance and usefulness of communication in
different directions in general or of particular subject-matter. In such a case,
communication flow is blocked.

2. Barriers in subordinates

Two factors are more important in the case of subordinates and

these are responsible for blocking communication in upward direction.

(i) Unwillingness to Communicate – Sometimes, subordinates do not

communicate upwards certain information because they are not willing to
do so. Thus, if a subordinate feels that he is likely to be adversely affected
by a particular piece of information to his superior, he would not be willing
to supply it.
(ii) Lack of Incentive – Sometimes lack of incentive also obstructs
the flow of information. It happens specially in case of upward


A good system of communication should possess certain
essential characteristics which are explained below:
(i) Two-way channel – Communication involves two parties, the sender
or transmitter and the receiver of the massage. Mere transmission of facts,
ideas, information, etc., does not make any communication effective and
meaningful. It is essential to keep the channel open for sending the
receiver’s views. Understanding and opinion about the communication.
Therefore, a good communication system should be like a two-way traffic.
Transfer of information should take place from the senders to the receives
and vice versa without any interruption.
(ii) Clarity of Message – The message must be as clear as possible.
No ambiguity should creep into it. The message can be properly only if it is
clearly formulated in the mind of the communicator. The message should
be encoded in direct and simple language so that the receiver is able to
understand it without much difficulty.
(iii) Credibility of message – Credibility of the message is an
important factor which promotes understanding and cohesiveness among
organisation among organisational members. It depends to a large extent on
the rapport between the parties concerned. A related characteristic is
timeliness of communication which contributes to its credibility. The
message should be complete also. Inadequate message delays action, spoils
good relations and affects the efficiency of the parties to communication
(iv) Speed of Transmission – A good system of communication has
short lines of information flows which help to minimize distortion and
dilution of the messages transmitted. It should give considerable
importance to the speed of transmission of message. However speed of
communication should not impair the accuracy of the information to be
(v) Mutual Understanding – A good communication system should
achieve better relations between the parties to communication. Transfer of
information or knowledge should take place in a cordial atmosphere.
Absence of mutual understanding signifies the lacuna in the system in the
sense that communication becomes one-sided affair only. Mutual trust,
belief and reliance should be the goals of any communication system.
(vi) Flexibility – A good system is flexible enough to adjust to the
changing requirements. It should carry extra loads of information with
much strain. It should absorb new techniques of communication with little
resistance. Employment of a wide range of media such as oral and written
messages ,face-to-face contact, telephonic calls, group meetings, etc.,
should be made use of without any hesitation.

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

In nut shell, it can be said that communication is a two-way

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

The importance of communication in management can be judged

from the following:

(1) Basis of Co-ordination – The importance of communication in

the context of modern complex organisation is much greater. These big
organisations being designed on the basis of specialization and division of
labour constitute a large number of persons. The large size of organisation,
the greater is generally the degree of specialization and division of work
hence, the more urgent is need for co-ordination. Co-ordination requires
mutual understanding about the organisational goals, the mode of their
achievement and the inter-relationships between the work being performed
by various individuals and all this can be achieved through communication
only. In the words of Mary Cushing Niles, “Good communications are
essential to co-ordination. They are necessary upward, downward and
sideways, through all the levels of authority and advice for the
transmission, interpretation and adaptation of policies for the sharing of
knowledge and information, and for the more subtle needs of good morale
and mutual understanding.”
(2) Smooth Working of Enterprise – Communication makes
possible the smooth and unrestricted running of the enterprise. All
organisational interaction depends on communication. A job of the manager
is to co-ordinate the human and physical elements of an organisation into
an efficient and active working unit that achieves common objectives. It is
only the process of communication which makes co-operative action
possible when objectives are desired, what and when, how people will
react-this all depends upon the internal and external communication process
of the organisation. In the words of Herbert G. Hicks, “communication is
basic to an organization’s existence-from birth of the organisation on
through its continuing life, when communication stops, organized activity
ceases to exist.”
(3) Basis of Decision Making -- Communication is a primary
requirement for decision-making. It is absence, it may not be possible
for the top management to take any meaningful decision. Information must
be received before any meaningful decision can be made. Again to
implement the decision effectively, it becomes essential to have a good
communication system. That is why Chester I. Bernard says that the first
executive function is to develop and maintain a system of communication.
(4) Increases Managerial Efficiency – Communication is essential
for quick and systematic performance of managerial functions. The
management conveys through communication only the goals and targets,
issues, instructions, allocate job and responsibilities and looks after the
performance of subordinates. As a matter of fact, communications
lubricates the entire organisation and keep the organisation at work. In
modern days the skill of communication has become an essential quality of
successful management.
(5) Promotion of Co-operation and Industrial Peace – More,
better and cheaper production is the aim of all prudent managements. It
may be possible only when there is industrial peace in the factory and
mutual co-operation between management and workers. The two way
communication promotes co-operation and mutual understanding between
both the parties. The efficient downward communication helps the
management to tell the subordinates what management actually expects
from them. The upward communication helps the workers in putting their
grievances, suggestions and reactions before management.
(6) Establishment of Effective Leadership – Communication is the
basis of direction and leadership. It is an influence process. By developing
the skill of communication, a manager can be a real leader of his
subordinates. A good system of communication brings them in those
contacts with each other and removes misunderstanding.
(7) Morale Building and Motivation— An efficient system of
communication enables management to change the attitudes, to motivate,
influence and satisfy the subordinates. “Most of the conflicts in business are
not basic but are caused by misunderstood motives and ignorance of the
facts. Proper and timely communication between the interested parties
reduce the points of friction and minimize those that inevitably arises.”
Good communication assists the workers in their adjustment with the
physical and social aspects of work. It improves good human relations in
industry. Communication is the basis of participative and democratic
pattern of management.
Thus we see that communication is very vital for the existence and
smooth running of organisation. Emphasizing the importance of
communication Chester I. Bernard has very aptly remarked that: “The first
executive function is to develop and maintain a system of communication.”

Factors Responsible

There are certain factors which can be held responsible for the
growing importance of communication in business organisations. They are
as follows:
(1) Growth in Size of Organisation – Business organisation in
modern time have grown in size, employing thousands of persons, working
at different places. Such large organisations have various levels of
hierarchy in organisation structure. Direct contact are not possible, hence,
communication is of vital significance in directing these people.
(2) Growth of Trade Unions – After the World War II, the trade
unionism has flourished very rapidly. Today, management of a large
business house is not possible keeping them into confidence. Their co-
operation can be obtained through an efficient system of communication
(3) Technical Development – The technology is developing very
fastly. The technical improvements affect the composition of groups,
relationships between subordinate and his superior and the methods of
working also. The adjustment in social, organisational and physical aspects
of work is possible only through communication.
(4) Emphasis of Human Relations in Industry – The growing
importance of human relations in industry and the desire of management
maintain to good human relations with their workers, have also necessitated
to communication, Now the nature of employer relationship is changed
from master-servant relationship to partnership helps in this process by
changing the attitudes, perception, needs and feeling, etc.
(5) Other Factors – The idea of social responsibilities of business,
the developments in the field of sciences like, Sociology and Psychology,
etc., have also increased the importance of communication in organisation.


It is a system of communication and consultation either formal or

informal by which employees of organisation one kept informed about the
affair of the undertaking and through which they express their opinion and
contribution to management decision.


 It may be viewed as an instrument for improving the efficiency of

enterprises and establishing harmonious industrial relations.
 It is a device for developing social education for the purpose of
promoting latent human resources.
 It is a means for attaining industrial peace and harmony, which lead
to higher productivity and increase production.
 It may be viewed as humanitarian giving the worker an acceptable
status within the working community and the sense of purpose in his
 It is an ideological point of view to develop self-management in

Levels of Participation:
Broadly speaking there are 4 levels of participation. At the initial
stage participation may be

Informative and Associative Participation:

Where members have the right to receive information discuss and

give suggestions on the general and economic situation and concern
production and sales programs, annual balance sheet and profit and loss
account, long term plans for extension and soon.

Consultative Participation:

It involves a higher degree of sharing of views of the members and
giving them an opportunity to express their feelings.

Administrative Participation:

It involves a greater degree of sharing of authority and responsibility

of the management function.

Decision Participation:

It is the highest form of participation where sharing in the decision

making power is complete and the delegation authority and responsibility
of managerial function to such a body is maximum.

Forms of Workers Participation in India:

 Work committees.
 Joint management councils.
 Joint councils.
 Unit councils.
 Plant councils.
 Shop councils.
 Workers representative on the board of management.
 Workers participation in share capital.



In a developing economy like India, coal mining occupies a

pivotal place since coal is the basic input for power and fuel to many basic
and important industries like Powerhouse, Iron and Steel, Railway, Shipping
and construction industries etc. Apart from these, industries like cement,
fertilizes Chemicals, paper industries and thousands of medium and small
scale industries are the main consumers of coal for their major input as fuel
or energy requirement in process. Despite the development of alternative fuel
sources like electricity, petrol and solar energy, coal continues to be major
fuel material in many industries. Thus coal industry plays a strategic role in
the Industrial development of any country, like India.

During the last year i.e., 2005 the coal production in India has
increased. In India, coal-producing companies are mostly in public sector
and they are under the direct administration of the Ministry of Coal. The
following Public/Private sector undertakings are dealing with coal

Coal India Limited (CIL)

Singareni Collieries Company Limited (SCCL)

Naively Lignite Corporation Limited (NLCL)

Indian Iron and Steel Company (IISCO)

Tata Iron and Steel Company (TISCO)


CIL having head quarters at “Calcutta” is the holding company with

seven subsidiaries coal, six producing coal and design subsidiary viz.….

1. Eastern coal Fields India Limited (ECFIL) _Sanctrica, West Bengal.

2. Bharath Cooking Coal Limited (BCCL)—Dhanbad, Bihar.

3. Central coal Fields Limited (CCL)-Ranchi, Bihar.

4. Northern CoalFields Limited (NCFL)—Singrruli, Madhya Pradesh.

5. Western CoalFields Limited (WCFL) –Nagpur, Maharastra.

6. Mahanandi CoalFields Limited (MCL)—Sambalpur, Orissa.

7. Central Mining Planning & Design institute Limited (CMPDIL)-

Ranchi, Bihar.

Singareni Collieries Company Limited:

Among the coal producing companies, SCCL occupies a vital

position. For better understanding of the origin and growth of SCCL an
attempt has been made to discuss the profile of SCCL, in this chapter.


The SCCL is the oldest public Sector Company in India, carrying the
coal mining activities in the Godavari Vally of Andhra Pradesh and catering
to the needs of the consumers in southern India. The company has a history
of more than hundred and twelve years, since the origin.
Of the origin of the SCCL may be traced back to the year 1871, when
the coal was first discovered in the Nizam State at “Yellandu”. In those days
pilgrims going to “Bhadrachalam” used stop travel by road, after getting
down at Yellandu railway station before continuing their journey. One of
such party arranged the firewood between them. They observed that the
stones were also burning, sending out (emitting) heat even after the firewood
was consumed. Subsequently geological reports based on drilling, etc., were
taken up and found the Coal Reserves in that area.


The journey of the Singareni Company Limited started with the

discovery of coal by Dr.William King Star in 1871. A group of pilgrims who
destined to have a darshan of Lord Rama found a substance at Yellandu,
which kindles their cooking fire. They then reported to Dr. William king star.

The mining rights for exploiting the coal reserves were acquired by the
Hyderabad Deccan Company, which was incorporated at London Stock
Exchange. Hence Hyderabad Deccan Company started the first extracting of
coal at Yellandu in 1886.

In 1921, its scripts were purchased in London Stock Exchange and the
name of the company was changed to The Singareni Collieries Company
Limited after the name of the village Singareni where the coal was first

The company became Government Company after Nizam purchased its

shares from London Stock Exchange in 1945. Later after independence it
came under the control of Government of India and Andhra Pradesh as a
joint venture with equity ratio of 49% and 51% respectively.

The SCCL is engaged in coal mining in four districts of Andhra

Pradesh namely, Khammam, Karimnagar, Adilabad and Warangal. In overall
India it spreads to 6% geographical area producing 10% of coal. The SCCL
has also the distinction of the first Government Coal Industry.

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


A. To retain our strategic role of a premier coal producing company in

the country and excess in a competitive business environment.

B. To strive for self- reliance by optimum utilization of existing

resources and earn adequate returns on capital employed.

Though investigation, coal deposits were to be quite rage around the

village of “Singareni”.

The Hyderabad (Deccan) company started its coal mining activities in

“Yellandu” in the year 1889. Later in the 1921, the company was converted
into a public limited company with name as the Singareni collieries
Company Limited (SCCL) and in 1961 it became a public sector
undertaking, being managed by the board of directors, appointed by the
central and state government having shares in the ratio of 51:49 finances the
shares capital of the company respectively.

With a fraction of present private holding, SCCL has exclusive mining

rights of coal in Andhra Pradesh. Mining operation of SCCL over 320K.M,
in the Godavari Valley encompassing four districts in Andhra Pradesh with
proved reserves of about 6,000 million tones.

The operation areas of the SCCL as are follows:

KHAMMAM DISTRICT – kothagudem, Yellandu, Manuguru.

ADILABAD DISTRICT-Bellampalli, Mandamarri

And srirampur



The SCCL occupies a vital position in the countries production program,

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

Name of the Technology Percentage to the total output

Traditional underground mining 38%
Open cast mining 47%
Long wall technology 12%
Blasting gallery technology 3%


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

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


The SCCL was receiving budgetary support from both Government of

India and Government of Andhra Pradesh till some time ago, but they later
abandoned. Also the pricing of coal was decided by government of India
keeping its impact on other major sectors like, power, Railways, cement etc.
The prices were not revised regularly, also hike in input cost due to
periodical revisions of National coal wage agreements (NCWA), stores and
interest were also not fully compensated by government. The strikes by the
workers, least discipline among workers, sober technology absorption,
apathy management caused the company heavy losses during the years 1989-

The company was referred to BIFR in, but due to the efforts made by
the management and GOAP, out of its purviews in 1993-1994 and posted a
gain of 17.76cores and 26.64 cores in 1993-94 and 1994-95 respectively.

But also, due to non-revision of pricing and APM it was imbibed in a

heavy loss of Rs 1,219 cores up to 1996-97.


By the end of 1996-97, it has an accumulated loss of Rs. 1219 cores.

The management of SCCL retrospects and introspected about the grave

The factors helped for coming this grave situation was identified and
diagnosis to set rights them were adopted. The various factors that are tried
to have good Industrial Relations.

Selective mines were adopted in Under Ground mines by installing
shale-pricing arrangements in the mines and at CHPs to improve the quality
of coal dispatches. Fuels supply agreements and joint sampling protocols
including bonus/penalty clauses, with major coal consumers are also
installed a customer’s satisfaction all to ensure customers satisfaction.

In order to stand competitively, and obtain investments to meet

growing demand for increased coal supplied and for technological reforms,
the company has obtained restructuring package from Government of India
in 1999, this includes a 10 years moratorium on payment of interest accrued
on government on government loans of Rs. 663 cores and waiver of penal
interest accrued and infusion of fresh equity by Government and
Government of Andhra Pradesh of Rs. 251 cores and Rs. 268 cores
respectively during the IX five plan period.

The company on its parts its parts adopts includes retrenchments of

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

Success story of the

Singareni collieries company Ltd

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

Prior to 1997 (Post reform period): -

 The company has accumulated losses of about 1269 crores.

 There were as many as 100 unions.

 There were strikes every day in atleast one unit.

 The officers were not getting time to concentrate on planing,

administration except dealing Industrial problems.

 The cost of production is increased day by day.

 The production is also not reaching the target because of strikes.

 The law and order was also worsened in the coal belt.

 The company at the verge of going to BIFR (Beuro of Industrial

Finance Reconstruction).

 Indiscipline is in increasing trend.

 The quality of coal was degraded. The coal was mixed of stones
or clay.

 Low equipment utilization and inefficiency in operations

increase of inventory.

Steps taken to go around: -

• Chairman and managing director started writing letters directly

to the workmen on the occasion of New Year (Ugadi), Dasara,
and dewali festivals and greeted them on the occasion.

• In that letters he also explained about the present company

status, scenario of market in rush of quality coal from other
countries, cost of production details and its impact on working in
the company.

• Multi departmental committees were constituted with different

discipline executives, mining, engineering, personnel, accounts,
and industrial engineering departments. They explained to the
workmen directly at each unit level about production,
productivity, and cost of production, relations with workmen,
strikes and its impact on different aspects.

• Conducting union elections.

• Quality awareness programs were taken-up.

• Consumers were satisfied with the product came back to the


• Strike days situation to “No strike” or “Strike free” month’s

situation came.

• Discipline improved.

• Excess manpower reduced by introducing VRS (GHS) schemes.

• Interference of outside agencies comedown.

• The income of workmen is increased.

• Special incentive schemes were introduced basing on

production, productivity, and attendance.

• Special welfare awareness programs (SWAP) were taken.

• Corporate hospital referrals increased.

• Counseling, taking disciplinary actions controlled unauthorized

• Salaries giving through banks.

Pre-1997 Post-1997 Gain

Coal production 28.73million tones 33.24 16%
OMS* 0.98 1.51 54%
Manpower 114486 97053 -15%
No. of strikes 310 35 -83%
Turnover 2114 crores 3689 crores 75%
Earnings per Man 245.66/- 679.86/- 97%
shifts(in Rs)


Objectives to ensure industrial hormony in the company for

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

Determining relative strength of trade unions: -

The ministry of labour government of India will conduct verification

of the relative strength of the unions functioning in the company through
secret ballet once in 4 years (earlier it was once in 2 years). The trade union
registered under trade union act 1926 and functioning atleast for 1 year after
registration or eligible for contesting in the elections. The registered union
has to give an undertaking to abide by the code of discipline. They have to
give and undertaking that they would discourage illegal strikes, maintain
industrial hormony and strive to improve production and productivity.

Voters: -

All the workmen covered under NCWA (National Coal Wage

Agreements) scale of pay.

Conduct of elections: -

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

Recognized union and representative union (s): -

At company level the strength of each union shall be deemed to be

proportionate to the percentage of valid votes polled in its favor. The union
having the largest strength on company wide basis shall be recognized
subject to securing atleast 15% of the valid votes polled.

At area level the union security largest number of votes polled shall
be treated as representative union for that area subject to securing atleast
15% of the valid votes polled in that area.

Forfeiture of recognition / representative status: -

Indulgence in or any encouragement to violence, intimidatory tactics,

illegal strikes, violation of Law or violation of Code of Discipline shall
render the Union liable to forfeiture of Recognized/Representative status.

In the event of forfeiture of Recognition, the appropriate authority to

conduct a fresh election.

In the event of forfeiture of Representative status, that union shall be

treated at par with other registered trade unions, at the Area level, and the
Union Recognized at Company level shall be treated as the Representative
union for that Area.


This is constituted in relation to Section 3 of Industrial Disputes Act


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

Duties of the committee: -

It shall be the duty of the works committee to promote measures for

securing and preserving amity and good relations between the employer and
the workmen. To that end to the committee upon matters of their common
interest or concern and endeavor to compose any material difference of
opinion in respect of such matters.

In Singareni Collieries Company Ltd the works committee is named

as “Mine Committee” and this committee ordinarily will meet once in a

This committee consists of 11 members and the following

designations are covered:

From the workmen side:

Designation Number of members

Filler 3
Short farer / Mining sardar 1
E &M / Haulage operator / Pump operator 1
Coal cutters 3
Tramers 1
Trimmer man / Line man 1
Others 1

The recognized union / representatives union will nominate the workmen

to the committee. The head of the department / manager will nominate the
representatives from the side of management which will include supervisor
staff. The welfare officer of the mine will act as member secretary of the

Generally the following matters are being discussed:

1) Production:

 Production of the Mine.

 Production of the Area.

 Production of the Company.

 Targets Achievements, and percentage of Achievements, variance

reasons for shortfall.

2) The strategies for achieving the targeted production.

3) Productivity:

Output / Man shift (OMS).

 Filling OMS.

 Percentage of peace rated Man shifts on total.

 Tub average.

4) Break downs:

The breakdowns of machinery / power will be discussed.

5) Work schedules:

The preparatory works and their schedule time of completion will be


6) Quality:

Measures taken to maintain and improve the quality of coal are being

7) Cost:

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

8) Safety:

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

9) Circulars:

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

the members will be informed to the members.

10) Thrust in Areas:

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

reduction, of absenteeism, disciplinary action against chronic absentee’s
settlement of terminal benefits etc.

11) Feedback on management policies.

12) Periodical medical examinations, training to various categories of

employees and industrial relations situations are also being discussed.

The workmen representatives will collect the grievances / problems faced

by the workmen and bring to the notice of the management during the

Some of the decisions are given on the spot and some matters will be
referred to higher authorities for redressal and the same will be informed to
the members in the next meeting. This forum is being used by the recognized
representative union to ventilate the problems of the workmen.


SCCL tries to motivate its employees by various HRD techniques. It

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

S.No. Category No of Employees
1. Top Executives 6
2. Executives 2440
3. Supervisory Staff 3853
4. Secretarial Staff 2527
5. Technical Staff 9633
6. Skilled (Daily Rated) 20562
7. Semi Skilled (Daily 5847
8. Unskilled ( Daily Rated) 19772
9. Unskilled (Piece Rated) 21530
10. Apprentices 101
Total 86271


A complete, comprehensive and holistic medical and health services

are provided to all employees.


(1) To reduce the risk at potentially dangerous coal face. SDLs, LHDs
and Continuous minor are being introduced to replaces manual loading thus
reducing the concentration of workmen at the active coalfaces.

(2) Adopt roof bolting in all the working in large scale for support of
working including in the area of freshly exposed roof

(3) Introduced Man-riding systems in eight for travelling, thus reducing

the tendency of workmen for seer riding.

(4) Establish traveling roadways with shortest possible route airways

with good lighting arrangements.

(5) Side bolting in the mines where the tendency for the falls in more.


(1) Establish two ways haul roads to prevent accidents of dumpier.

(2) Establish haul roads with mild gradient of around 1 in 16.

(3) Implementation of traffic rules.

(4) As far as possible, establish wider benched for smooth and safe
operation of HEMM in excavation areas.

(5) Intensive and practical training of workers of off-loading for

compliance of safety rules and regulations as per statute.

(6) Adequate provision in the contract of off-loading for compliance of

safety rules and regulations as per statute.


SCCL has been taking all possible measures to provide welfare

amenities to its employees. Despite being in financial crunch it never
neglected the welfare of its employees, a majority constitutes of workers
have been provided with good welfare schemes who otherwise may not have

them in Government Sector. The SCCL has been implementing mines act
1952 and mines Rules 1955 and subsequent amendments to them.

SCCL runs for its workers Rest Shelters, Canteens, appointment of

Welfare Officers, Drinking Water facility etc.,

It also tries to educate its illiterate workforce by using literate workers

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


Chairman cum Managing Director who is drawn from senior I.A.S.

officer of State Government heads the Singareni Collieries Company
Limited at Corporation level. Directors and General Manager assist him. The
organizational hierarchy at area level too headed by General Manager. The
Organization Chart is given in the following page. It has been given both at
Area level and Corporation level.


The SCCL has bagged the State Government’s Labour Ministry

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


BY-MONTHLY MAGAZINE – By monthly magazine

SINGARENI SAMACHARAM is being published wherein the information

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

MANA T.V. – Every week on Sunday the Singareni communication

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

SINGARENI WEBSITE – It is installed and its site address is

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

BY - MONTHLY POSTURES – A poster containing the details of

activities of Singareni is being published in the mines of SINGARENI
PRABHA and this is being displayed at vulnerable places at mines and

SUPPLY OF CELLS – In order to improve communication, the

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

Analysis and Interpretation

1. How do you feel atmosphere around you?

Table 4.1

S.NO Response Number of respondents Percentage

A Friendly 75 75%
B Supervisory 5 5%
C Both 20 20%

No. of respondents

Friendly Supervisory Both


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

2. How do you feel your work?

Table 4.2

S.NO. Response No. of Respondents Percentage

A Enthusiastic 60 60%
B Compulsive 35 35%
C Frustrate 5 5%


Number of respondents






Enthusiastic Compulsive Frustrate

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

3. To whom you express your problems freely?

Table 4.3

S.No Response No. of Respondents Percentage
A Supervisor 30 30%
B Colleague 20 20%
C Trade union 20 20%
D Officer 30 30%

Officer Supervisor

Trade Colleague

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

4. Does the management consult employees while taking

important decisions?

Table 4.4

S.No Response Number of Percentage
A Yes 70 70%
B No 30 30%



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

5. Workers participation is important because

Table 4.5

S.No Response No. of Percentage

A Avoid Industrial disputes 25 25%

B Develop Effective communication

64 25 25%

C Both 50 50%
Avoid ID



DEC – Develop Effective Communication

ID – Industrial Disputes

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

6. Does a union play any important role in maintaining

harmonious industrial relations?

Table 4.6

S.No Response Number of Respondents Percentage

A Yes 80 80%
B No 20 20%



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

Table 4.7

S.No Response Number of Respondents Percentage

A Management 20 20%
C Union & Management 80 80%


Management Union Union&Mngt

From the above data we know that the 80% of the employees thinks that
their management will decide their wage pattern and 20% of employees’
thinks that the union & management were jointly decide their wage pattern.
8. How and to whom is the employee handbook distributed?

Employee handbook is distributed to the officer.

9. What is the absenteeism rate? Do you consider it is low or

high? If high what is the reason?

The absenteeism rate is 20 – 25%, it is high. Because of coal

fillers due to strain of physical work.

10. Is there a formal orientation for new employees? Are follow-up

employee orientations scheduled?

Yes mines have a formal orientation i.e., Vocational Training
Centers (VTC) are there for new employees. For every 5-yrs re-
orientation of training will be given to the all existing employees.

11.Does the organisation engage in employee opinion surveys?

During the training programs feedback is taken on activities of


12.Do you communicate survey results to employees?

Based on the information received necessary connections will be


13.Are there opportunities for employee’s professional growth?

Director general of mine safety will conducted the various

examination and educated workmen will appear for the same. On
passing the exam they will be appointed in statutory posts.



 In SCCL management will maintain friendly relationship with


 Workers done the work with enthusiastic and compulsive.

 Management provides better welfare facilities and conduct cultural


 Maximum number of employees joins in the trade union due to their job
security only.

 Workers don’t know how to use Grievance handling machinery.

 Trade union helps to maintain harmonious relationship between

employees and employers.

 Thus it reduces illegal strikes, wildcat strikes, lockouts etc.

 Due to all these reasons SCCL gets more production and productivity for
10 years. These are the reasons for continuous profits for last 10 years.


 Workers should do the work with interest and not compulsive. So the
management should try to motivate the workers to do the work with
enthusiastic, interest.

 Management should use some motivation techniques to motivate the

workers like educational techniques, how to communicate with their
superiors etc.

 Management should give training to employees how to use machinery.


By the end of 1996-97, it has an accumulated loss of Rs. 1219 cores. The
management of SCCL retrospect’s and introspected about the grave

The factors helped for coming this grave situation was identified and
diagnosis to set rights them were adopted. The various factors that are tried
to have good Industrial Relations.

Selective mines were adopted in Under Ground mines by installing

shale-pricing arrangements in the mines and at CHPs to improve the quality
of coal dispatches. Fuels supply agreements and joint sampling protocols
including bonus/penalty clauses, with major coal consumers are also
installed a customer’s satisfaction all to ensure customers satisfaction.

In order to stand competitively, and obtain investments to meet growing

demand for increased coal supplied and for technological reforms, the
company has obtained restructuring package from Government of India in
1999, this includes a 10 years moratorium on payment of interest accrued on
government on government loans of Rs. 663 cores and waiver of penal
interest accrued and infusion of fresh equity by Government and
Government of Andhra Pradesh of Rs. 251 cores and Rs. 268 cores
respectively during the IX five plan period.
The company on its parts its parts adopts includes retrenchments of
surplus staff, inhibiting discipline among employees, maintaining good
Industrial Relations, prudent management and fiscal policies, cost cutting
measures, reducing unnecessary cost, prepaying height interest loans, and
finally increasing its productions and efficacy, But in so way it has
compromised into the interest of tits employees, society in large.


Name :

Department :
Area :

Designation :

Experience :

Qualification :

1. How do you feel atmosphere around you?

a) Friendly b) supervisory c) both

2. How do you feel your work?

a) Enthusiastic b) Compulsive c) Frustrate

3. To whom you express your problems freely?

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

4. Does the management consult employees while Taking important


a) Yes b) No

5. Workers participation is important because

a) to avoid industrial disputes

b) to develop effective communication

c) Both

6. Do you know who will decide your wage pattern?

a) Management b) Union C) Union & Management jointly

7. How do you feel atmosphere around you?

a) Friendly b) Supervisory c) Both



Principles of Management:

- Pradeep Kumar

Human Resource of management:

- L.M. Prasad

Human Relation & Organization Behavior:

- Dwivedi

- Flippo

Personal Management:

- C.B. Mamoria

- S.V. Gankar

Dynamics of Industrial Management

- C.B. Mamoria

- Satish Mamoria

- S.V. Gankar

Web Site: www.scclmines.com


1871: Discovery of coal.

1889: Commencement of mining Operations.

1948: Introduction of machine mining.

1951: Introduction of incentive scheme.

1953: Introduction of electric lamps.

1954: Introduction of frame proof mining machine.

1975: Commencement of open cast mining projects.

1981: Road headers Side Dump Load Haul Dumpers.

1983: Long wall face.

1984: Introduction of first 132/33 KVA Substation.

1986: Introduction of computers and walking dragline in Open cast


1989: Introduction of French blasting Gallery technology.

1994: Introduction of input crushing & conveying Technology in open

cast mining.

1998-99: Re-structuring Package.

1998-99: Election for Trade Unions first time in coal History.

1999-00: All time records production of 29.556 Millions tons of coal.

1999-00: Introduction of Hi-Tech Information’s System (Internet).

2002-03: Records Profits of Rs. 400 crores.



The Chief General Manager (HRD)


//Through General Manager, Srirampur Area. /

Respected sir

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

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

Thanking you,
Yours faithfully,

Geethanjali College of Engineering &