MANAGING ORGANISATION

A Study of Indian Railways

INTRODUCTION
Indian Railways is among the worlds largest railway networks and has strongly
emerged as the main vehicle for the countrys socio economic development. It
caters to the transportation needs of the country, bringing together the diverse
geographies and assisting in promoting national integration. Furthermore, the
railway network is also ideal means of transport for long-distance travel and
movement of bulk commodities. Apart from being an energy-efficient and economic
mode of conveyance and transport, the 64,600-km network is spread across 7,146
stations, with 19,000 trains operating the routes daily.
India's railway network is recognized as one of the largest railway systems in
the world under a single management. The Government of India has focused on
investing on railway infrastructure by making investor-friendly policies. It is now
moving quickly to enable Foreign Direct Investment (FDI) in railways to improve
infrastructure for freight and high-speed trains. At present, private sector companies
are also looking to invest in railway projects.

REASON FOR CHOOSING INDIAN RAILWAYS:

Indian Railways plays a decisive role in Indias social, political and economic
upliftment. In addition to the transportation of passengers and freights across the
country, it has also helped numerous men and women who were afflicted during
disasters and been crucial to the development of many industries. Since Indias
foray into the spread of economic superpowers, the role of Indian Railways has
become even more essential, for the reach that it provides, irrespective of
demographic confines. The efficiency of the transportation sector thus, has a direct
bearing on the countrys economy and its growth. Thus, it is highly imperative that
Indian Railways remain viable, in terms of cost-effectiveness and reliability of
service, for India to catapult itself to a super power.
For the benefits of its employees, it runs schools, hospitals, security forces,
besides giving a substantial amount of subsidies. It also employs 1.3 million people,
making it one of the biggest employers in the world, and certainly the biggest in
India. Figuratively speaking, this public organization is a state on wheels. The whole
situation gives rise to organizational problems, since the hierarchy and subsequent
control needed to maintain an organization of this scale is cumbersome. Add the
influence of political compulsions, the concessions provided, the emphasis on nonPage 2 of 6

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core activities, and the damaging effect on Indian Railways escalates. Because of
the turmoil that Indian Railways is in, there are talks of its modernization, if not
privatization. The whole scenario of Indian Railways, and the need of revamping the
organizational structure, thus makes an important as well as an interesting study.

OBJECTIVE OF THE PROJECT:

To study Indian Railways as an organization and recommend
measures to optimize the organizational structure, such that it is
autonomous, cost-effective and scalable.
There is no well-defined prescription about the functioning of an organizational
structure in case of such a huge organization such as Indian Railways. There are
various factors that have to be taken into account viz. political, financial, and
managerial which are different in regions of Indian Railways.
However, through the secondary research that the team has conducted with
reference to restructuring of railway organizations in the European Union, we have
identified certain areas that require decentralization, certain areas that require
diversification, certain areas that require higher levels of integration, and a need to
change the mission statement of the organization as a whole.

CONTACT PERSON:
Mr. Nachiket Jaisingh
Divisional Railway Manager, East Coast Zone, Indian Railways
+91-9283165920

SAMPLE QUESTIONNAIRE:
1. Do you think Indian Railways functions as an autonomous organisation?
2. How has adoption of ICT (Internet and Communication Technologies)
increased the efficiency of the organization?
3. Indian Railways is a very large organization with a complex structure. Do you
feel that there is a need to change the current structure and why?
4. Since Indian Railways is an organization which operates in the shadow of a
government ministry, how do the political factors e.g. change of government,
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centre-state tussles, populist policies etc. affect the functioning of the

organization?
5. Your views/comments on the proposal of privatization of Indian Railways?

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PHASE-WISE STRUCTURE OF THE PROJECT

STAGE
S
STAGE
1:

STAGE
2:

STAGE
3:

STAGE
4:

STAGE
5:

DESCRIPTION

DEADLINE

KNOWING THE ORGANISATION:

Collection of basic information through website
browsing and other online databases
Reading up recent news articles about the
organisation i.e. news items featuring the
organisation during 2015
FORMING
OBJECTIVES
AND
SELECTING
METHODOLOGY:
Deciding upon the objectives to be achieved
through the project work
Collection of relevant data for the project by
exploring secondary data sources
Recognising areas for collection of primary data
or first-hand information which is not available in
online resources
Selection of respondent in the organisation from
the list of personal contacts available
Creation of Sample Questionnaire for seeking
information from the respondent/s
Preparation of Interim Report for submission
purpose
COLLECTION OF INFORMATION
1/2 over-the-phone conversations with the
respondent to explain the context of the
information needed for the project
Sending out of the questionnaire and follow up
Receiving the completed questionnaire and
collection of feedback from the respondent over
the information collection process adopted
ANALYSIS OF COLLECTED INFORMATION
Relating the information collected from the
respondents and other sources to the current
position of the organisation
Listing of factors affecting the organisational
design and environment
Drawing of conclusions from the analysis and
connecting them to the concepts taught in the
class
RECOMMENDATIONS AND REPORT PREPARATION
Proposing future recommendations for the
organization on the basis of conclusions drawn
Preparation of final draft of the report and
submission

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23th July 2015

28th July 2015

16th
2015

August

22nd
2015

August

27th
2015

August

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REFERENCES:
Indian Railways Website: www.indianrail.gov.in
Raghuram, G. (2007). Turnaroundof Indian Railways: A Critical Appraisal of
Strategies and Processes.

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