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Sigareni Collieries

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Venkatesh Kg
Venkatesh Kg

Analysis of the company - Sigareni Collieries. In-depth analysis in understanding the root cause of the issues they faced and how they have over them.

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Singareni collieries: From gloom to glory Venkatesh K G
Overview: • Owned by State government (AP) & Central government – 51:49 • 10,435 million tonnes of coal reserves • 114,486 low productive employees • Lot of self designated unions (103) • declared sick (bankrupt twice) – 1992 & 1996 with accumulated loss of 12.19 billion • Post-liberalization pressurising domestic energy & power players.
Issue: • Accumulated loss of ₹12.19 billion • Low productivity of employees • Liberalization. Competitive coal price from China,Australia • Large number of strikes • Large number of unions : 103 • Poor industry relations because of strike & quality issues • Low transparency & lack of trust with the management • Employees : poor, illiterate, alcohol and gambling
Cause: • No communication to labours from top management • Weak top-management • No accountability/recognition for excellence • Low motivation level – not following shift timings • Strong influence of unionism- 103 (self-designated) • Illiteracy & unskilled labours • Strikes due to safety issues & accidental deaths • High number of employees (114,486)
Action: 1. Increase transparency in the organization • Direct Letter communication  illiteracy  Opposition from union • Involvement of employees in client interaction 2. Strengthening the top management team 3. Motivation • Introduction of best Mining worker & non-Mining worker awards / performance based incentive program. • Involvement of employees in client interaction • Employee exchange program to foreign nations & employees education 4. Introduction of union elections & reduce union count to 5. 5. Demonstrate care & concern • Camps on nutrition and ailments • Improve safety in the organization & conduct safety camps • Accommodation facility for employees hospitalised in Hyderabad • Personal touch by interacting by hospitalised victims • Interaction with diseased employees family and explain benefits 6. Centralization of recruitment & Transfer to optimise employee count
Result: • Increased employee productivity & decreasing accumulated loss • better employee satisfaction
Inference: • Transparency has to be maintained in the organization • Better to keep employees in client interaction/problem discussion to keep them motivated • Motivate employees by awarding their superior performance & incentivise them • Under crisis, explain employees the issue and educate them the situation
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Sigareni Collieries

  • 1. Singareni collieries: From gloom to glory Venkatesh K G
  • 2. Overview: • Owned by State government (AP) & Central government – 51:49 • 10,435 million tonnes of coal reserves • 114,486 low productive employees • Lot of self designated unions (103) • declared sick (bankrupt twice) – 1992 & 1996 with accumulated loss of 12.19 billion • Post-liberalization pressurising domestic energy & power players.
  • 3. Issue: • Accumulated loss of ₹12.19 billion • Low productivity of employees • Liberalization. Competitive coal price from China,Australia • Large number of strikes • Large number of unions : 103 • Poor industry relations because of strike & quality issues • Low transparency & lack of trust with the management • Employees : poor, illiterate, alcohol and gambling
  • 4. Cause: • No communication to labours from top management • Weak top-management • No accountability/recognition for excellence • Low motivation level – not following shift timings • Strong influence of unionism- 103 (self-designated) • Illiteracy & unskilled labours • Strikes due to safety issues & accidental deaths • High number of employees (114,486)
  • 5. Action: 1. Increase transparency in the organization • Direct Letter communication  illiteracy  Opposition from union • Involvement of employees in client interaction 2. Strengthening the top management team 3. Motivation • Introduction of best Mining worker & non-Mining worker awards / performance based incentive program. • Involvement of employees in client interaction • Employee exchange program to foreign nations & employees education 4. Introduction of union elections & reduce union count to 5. 5. Demonstrate care & concern • Camps on nutrition and ailments • Improve safety in the organization & conduct safety camps • Accommodation facility for employees hospitalised in Hyderabad • Personal touch by interacting by hospitalised victims • Interaction with diseased employees family and explain benefits 6. Centralization of recruitment & Transfer to optimise employee count
  • 6. Result: • Increased employee productivity & decreasing accumulated loss • better employee satisfaction
  • 7. Inference: • Transparency has to be maintained in the organization • Better to keep employees in client interaction/problem discussion to keep them motivated • Motivate employees by awarding their superior performance & incentivise them • Under crisis, explain employees the issue and educate them the situation