FINAL REPORT OF MANAGEMENT THESIS- II

Topic-

“Analysis of issues of workers and comparative

study of employee satisfaction at PENCH AREA and
KANHAN AREA at WESTERN COALFIELDS
LIMITED of COAL INDIA LIMITED.”

SUBMITTED BY:
Shoyeb Mohammed
Bhopal
 TABLE OF CONTENTS

• Acknowledgement

• About Coal India Limited (CIL)

• Human Resource development in CIL.

• Welfares Measures in CIL.

• Safety Policy in CIL.

• Safety Monitoring Agencies at different levels in CIL.

• Mines Rescue Services.

• About Western Coal Fields Limited

• Welfare activities and creation of Social Infrastructure.

• Limitations

• Findings

• Conclusion

• Abbreviations.

• Reference.
 ACKNOWLEDGEMENTS

The fact that words are indeed inadequate to express the feelings of
heart felt gratitude realized at this juncture. Yet I try my best in most humble
words to thank all those who help me during my work.

With a sense of deep gratitude I express my sincere thanks to Mr. O.P

SINGH GENERAL MANAGER (PENCH) and Mr. PRASAD GENERAL
MANAGER (KANHAN) for trusting me and providing me the information
related to my report.
I wish to express my deep gratitude to all PRESIDENTS of trade unions
at PENCH area and KANHAN area, for extending every help and guidance,
without whose excellent guidance and advise the present work could not have
seen the light of the day.

I am very thankful to the employees of PENCH and KANHAN area,

for being kind and cooperative with me and providing me every possible
support from the side of the college.

I would also like to thank all those who directly or indirectly helped me
in the completion of my Project Work.

DATE:
PLACE:

Shoyeb mohammed
 ABOUT COAL INDIA LIMITED

OBEJECTIVES
• To promote the development and utilization of the coal reserves
in the country for meeting the present and likely future
requirement of the nation with due regard to need for
conservation of non-renewable resources and safety of mine
workers.

• To raise the productivity of coal mining and related activities

through introduction of improved technology, streamlining of
organization, management and improving the skills, motivation of
the work-forces.

• Efficiency of operations and adopting appropriate cost reduction

and cost control methods.

• To make efficiessnt arrangements for marketing and supply of

coal so that coal, coke and other similar derivatives are available
to consumers throughout the country conveniently and at
reasonable prices.

• To promote research and development activities on a continuing

basis in the areas of coal mining, beneficiation development of
new coal based products or by-products, fuel technology or any
other area having a bearing on conservation, development for
utilization of the coal reserves of the country.
 Company Profile

Date of Coal India Limited was formed as holding

incorporation Company with 5 subsidiaries on 21.10.1975

Corporate Status The company is incorporated under the Companies

Act, 1956 and is wholly owned by the Government
of India (GOI).

Business Engaged in the mining of coal, coal based products

and mining consultancy.

Wholly Owned Eastern Coalfields Ltd.

Subsidiaries Bharat Coking Coal Ltd.
Central Coalfields Ltd.
Northern Coalfields Ltd.
Western Coalfields Ltd.
South Eastern Coalfields Ltd.
Mahanadi Coalfields Ltd. and
Central Mine Planning & Design Institute Ltd.

North Eastern Coalfields is directly under Coal

India Ltd.

Registered Office : Coal Bhavan,

10 Netaji Subhas Road,
Kolkata - 700 001
West Bengal, India.
Coal India & Its Subsidiaries
 BACKGROUND HISTORY

Warren Hastings initiates commercial coal mining at Raniganj

1774
(West Bengal)

1815-1820 First Shaft Mine opened at Ranigunj

1835 Carr, Tagore & Company takes over the Ranigunj Coal Mines

Bengal Coal Company takes over Ranigunj Coal Mines and others;
1843
is first Joint Stock Coal Company in India.

Minimal development; River transportation used to transport coal

Up to
to Calcutta; railway lines at Calcutta leads to expansion of Coal
1900
Production

Early
Capacity at 6 million tones per annum
1900s

1955-56 Focus on Coal Industry; capacity up to 38.4 Million tonnes.

National Coal Development Corporation (NCDC) formed to explore

1956
and expand coal mining in Public Sector

Coking Coal Industry Nationalized, Bharat Coking Coal Limited

1972 formed to manage operations of all Coking Coal mines in Jharia
Coalfield.
 Non-coking coal nationalized; Coal Mine Authority Limited set up
to manage these mines; NCDC operations bought under the ambit
1973
of CMAL.

Coal India Limited formed as holding Company with 5 subsidiaries

viz. Bharat Coking Coal Limited (BCCL), Central Coalfields
1975
Limited (CCL), Western Coalfields Limited (WCL), Eastern
Coalfields Limited (ECL) and Central Mine Planning and Design
Institute Limited (CMPDIL).

Northern Coalfields Limited (NCL) and South Eastern Coalfields

1985
Limited (SECL) carved out of CCL and WCL

Mahanadi Coalfields Limited (MCL) formed out of SECL to

1992
manage the Talcher and IB Valley Coalfields in Orissa.

2000 De-regulation of Coal pricing and distribution of coal.

Coal India & four of its nos

2007 Subsidiaries,viz,NCL,SECL,MCL,WCL was accorded coveted
"Mini Ratna" Status

Human Resource Development in Coal India

Human Resource Development emphasis in Coal India has been set up
to deal with the development of existing Human Resources as well as
looking ahead with clear perspective with reference to technological
advances and growth of manpower to fulfill demand of production vis-
à-vis technology.

To cope up with the task emerging from strategic plan, Annual HRD
plan is worked out every year to integrate HRD efforts in all the twenty
six training centre located in different subsidiaries in following four
segments.

I. Technical Training :

It is to provide requirement of training for technology being used in

each subsidiary and any other technology being conceived at the
corporate level for which preparedness is necessary to meet current
shortage of skilled manpower and also preparing statutory personnel for
meeting statutory obligation through training. To analyze and project
requirement of personnel in critical and non critical categories as well as
to prepare them so that capital and technology input to the project
through capacity and new equipment or enrichment in the production
process through particular systems in technology could provide
appropriate return to the investment.
In order to implement the above, workers are exposed through:

* Basic Course : Appropriate to technology, equipment and system

* Refresher : Once in three years to those who have already gone
course through basic course or are already working in
specific skill area.
* Specialized : In case of change in technology, in equipment
course configuration and capacity and improvement in the
system of production, suitable input is given to all
the new entrants to the critical skilled areas and have
to go through basic courses, while immediate action
have to be taken to conduct refresher courses for
those who are occupying skilled position. Basic
training have to be conducted in the company's
technical training centers either within the same
company or in any other subsidiary company where
the facility exists. Refresher training is also
conducted either on the site or in the training centers
of the subsidiary company. There are around 105
Vocational Training Centers to take care of statutory
obligation. Basic and Refresher training are
imparted in all these training centers.

II. Management Training:

Executives at each level and at the time of assuming the charge at the
new position i.e. entry to the higher level, a need based training is
imparted at the Management Training Centre of each subsidiary
companies for the level from E.1 to E.5 and at the apex training Centre,
Indian Institute of Coal Management, Ranchi, for higher level, i.e. from
M.1 to M.3 level executives.

III. Transformation Training:

A planned attempt to help those who join CIL as part of management

policy and for the workmen who are required to acquire skill for
movement from conventional to semi-mechanised mines with
intermediate technology or at the instance of closure of mines and
surplus manpower. These trainees are used as source of supply of
manpower in critical and non-critical areas of skills for the technology
specific to the subsidiary company.

IV. General Development Training:

With a change in the scenario with reference to status of mine,

specifically in ECL, BCCL and to an extent in CCL and separate focus
for MCL, NCL, SECL and WCL, the vision of the company, health of
organization - profit & loss, criteria for raising productivity, cost
parameters and criteria for excellence in performance for survival of the
company is propagated through intra - organizational communication as
well as face to face interface with workers and supervisors in a planned
way by sharing the reality of business.
 HRD PERFORMANCE AT A GLANCE BY CIL AND ITS

SUBSIDIARIES DURING LAST SIX YEARS

IN COMPANY

(No of persons trained)

Year 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01

Category
Executives 7047 7282 6942 6873 6101 6397
Supervisors 9060 8404 8252 7785 9251 6927
Workers 16616 16822 16961 15761 17478 18406
Total 32723 32508 32155 30419 32830 31730

OUT COMPANY

Year 2005-06 2004-05 2003-04 2002-03 2001- 2000-01

Category 02
Executives 2550 2344 1960 1957 1991 1826
Supervisors 263 254 480 419 400 383
Workers 180 310 450 532 620 496
Total 2993 2914 2890 2908 3011 2705

TRAINING ABROAD

Year 2005-06 2004-05 2003-04 2002-03 2001- 2000-01

Category 02
Executives 44 6 10 23 13 18
Supervisors 3 0 0 6 5 0
Workers 0 0 0 2 0 0
Total 47 6 10 31 18 18

WORKERS TRAINING AT
VOCATIONAL TRAINING CENTRE

Year 2004-05 2003-04 2002-03 2001-02 2000-01

Category

Basic 3433 5737 4866 4350 6331

Refresher 48845 47415 42728 48364 49969
Special
24798 19052 13814 17613 17883
&Others
Total 77076 72204 61408 70327 74183

Welfare Measures

As on Nationalization As on
01.09.2007

Housing

No. of Houses 1,18,366 4,12,639

Satisfaction 21.07% 95.47 %

Water Supply

Population covered 2,27,300 22,91,148

Medical Facility

No. of Hospitals 49 85

No. of Dispensaries 197 425

No. of beds 1482 5835

No. of Ambulances 42 667

Educational 287 592

 Institutions
(Aided)

(Rs. in
Cores)

Total Expenditure 1975-76 2002-2003 2003-2004 2004-2005

(Rupee in Million) 26.45 1578.66 1605.72 1560.77

Functions

Broad functions
• Laying down policies
• Formulating long and short term strategies.
• Monitoring the functions of the subsidiary companies
• Laying down system and procedures.
• Assisting the subsidiary companies to achieve their objectives.
• Coordinating with ministry of coal, ministry of railways, planning
commission and other ministries.

Specific functions
• Pricing and distribution of coal
• Coal supply agreements
• Consumer services through regional offices
• Negotiations of wages
• Executive cadre control – recruitment, promotion/postings,
pay/perks etc.
• Manpower planning – HRD
• Foreign collaboration
• Introduction of new technology
• R&D activities
• Mobilization of resources – long term and short term
• Accounting policies.

ORGANIZATION STRUCTURE OF CIL

 Safety Policy of Coal India Limited:

1) Operations and systems will be planned and designed to eliminate

or materially reduce mining hazards;

2) Implement Statutory Rules and Regulations and strenuous efforts

made for achieving superior standards of safety;

3) To bring about improvement in working conditions by suitable

changes in technology;

4) Provide material and monetary resources needed for the smooth

and efficient execution of Safety Plans;

5) Deploy safety personnel wholly for accidents for accident

prevention work;

6) Organize appropriate forums with employees’ representatives for

Joint consultations on safety matters and secure their motivation and
commitment in Safety Management;

7) Prepare annual Safety Plan and long term Safety Plan at

beginning of every calendar year, unit-wise and for the company, to
effect improved safety in operations as per respective geo-mining
needs to prepare the units for onset of monsoon, to fulfill
implementation of decisions by Committee on Safety in Mines and
Safety Conferences and to take measures for overcoming accident
proneness as may be reflected through study of accident analysis,
keeping priority in sensitive areas of roof-falls, haulage, explosives,
machinery etc.

8) Set up a frame work for execution of the Safety Policy and Plans
through the General Managers of Areas, Agents, Managers and other
safety personnel of the units;

9) Multi-level monitoring of the implementation of the Safety Plans

through Internal Safety Organization at the company headquarters
and Area Safety Officers at area level;

10) All senior executives at all levels of management, will continue

to inculcate a safety consciousness and develop involvement in
practicing safety towards accident prevention in their functioning;

11) Institute continuous education, training and retraining all

employees with the accent placed on development of safety oriented
skills;

12) Continue efforts to better the living conditions and help of all the
employees both in and outside the mines.
 Safety Monitoring Agencies at different levels in
CIL:
1. Workmen’s Inspectors: As per Mine Rule 1955.

2. Safety Committee at mine level: As per Mine Rule 1955.

3. Area Level Tripartite Committees

4. Tripartite Safety Committee at Subsidiary Head quarter level

5. Coal India Safety Board at corporate level

6. Standing Committee on Safety in Coal Mines

7. Different Parliamentary Committees

MINES RESCUE SERVICES:

A well-equipped Rescue Service Organization staffed by rescue

personnel trained in modern training galleries and equipped with
modern rescue equipment is maintained by the subsidiary companies
of CIL. At present 6 Rescue Stations, 15 Rescue Rooms-with-
Refresher Training facilities and 18 Rescue Rooms are being
maintained.

ABOUT WESTERN COAL FIELDS LIMITED

Western Coalfields Limited (WCL) is one of the eight Subsidiary Companies

of Coal India Limited (CIL) which is under administrative control of Ministry
of Coal. The Company incorporated under the Companies Act, 1956 has its
registered office at Coal Estate, Civil Lines, Nagpur–440001.

The Company contributes about 11.3% of the national coal production. It has
mining operation spread over the states of Maharashtra (in Nagpur,
Chandrapur & Yeotmal Districts) and Madhya Pradesh ( Pench and Kanhan
area Chhindawara Districts).

The Company is a major source of supplies of coal to the industries located in

Western India in the States of Maharashtra, Madhya Pradesh, Gujrat and also
in Southern India in the States of Andhra Pradesh, Tamil Nadu, Karnataka and
Kerala. A large numbers of Power Houses under Maharashtra, Madhya
Pradesh, Gujrat, Karnataka, Punjab and Uttar Pradesh - Electricity Boards are
major consumers of its coal along with cement, steel, chemical, fertilizer,
paper and brick Industries in these states.
 MANPOWER

Concerted progress in rationalizing manpower has resulted in reduction of

manpower by 1779 between 2005-06 and 2006-07 in spite of production
growth of 0.008 mt. during the same period.

MANPOWER REPORT

TOTAL
MANPOWER AS ON
CATEGORY
01/04/2006 01/04/2007
EXECUTIVES 2345 2303
MONTHLY RATED 13958 13899
DAILY RATED 44587 43492
PIECE RATED 5853 5429
BADLI 21 21
CASUAL 3 3
CO. TRAINEE 611 452
TOTAL : 67378 65599

SAFETY
• Safety of men and Machinery has been given the highest
priority in WCL .
• Tripartite safety Committee constituted at Area and head
quarter levels regularly review the safety performance.
• Special Safety drives are held every month as per the
calendar
• Annual Safety Week is organized.
 WELFARE ACTIVITIES & CREATION OF
SOCIAL INFRASTRUCTURE

Welfare Board
Welfare Board was set up in Western Coalfields Limited in 1987, the
first of its kind in Coal Industry. The Welfare Board consists of 5 (five)
representatives of Management and 5 (five) workers representatives,
one each from the Central Trade Unions and Director (Personnel) as it's
Chairman and General Manager (Welfare) as it's Secretary.

Welfare Amenities
1. Housing:

Houses Permanent Manpower %age

Period
Available entitled for housing satisfaction
At the time of Nationalization
4390 39794 11.03
(1-5-1973)
As on 1-4-2004 41354 70515 58.64
As on 1-4-2005 41834 68938 60.68
As on 1-4-2006 41914 67378 60.20
As on 1-4-2007 42155 65599 64.26

2. Water Supply:

Total
Generation
Period Population
Capacity MGD
Coverage
At the time of Nationalization
45695 1.50
(1-5-1973)
 As on 1-4-2004 317990 17.52
As on 1-4-2005 320390 17.52
As on 1-4-2006 320790 18.03
As on 1-4-2007 321995 18.68

3. Educational Facilities (fully aided & partially aided):

At the time of
Sr.No. Particulars Nationalization As on 1.4.2007
(1-5-1973)
1 Primary Schools 30 23

2 Middle Schools 18 20

3 Secondary.Schools 15 26

4 DAV School -- 1

5 Central Schools -- 4
Shishu Vidya Mandir
6 -- 29
& Other Schools
School Buses (run by
7 5 112
WCL)

4. Medical Facilities:

At the time of
Subject Nationalisation As on 1.4.2007
(1-5-1973)
Hospital 4 11
Beds 159 710
Dispensaries 19 54
Ambulances 9 110
Total Doctors 18 203
Nursing Staff/ Other Para Medical Staff 120 614
Bed Ratio 1:250 1:93

5. Statutory Facilities:
 Description As on 1.4.2007
No. of Creches --
No. of Rest Shelters 72
No. of Pit Head Baths --
No. of Canteens 79
Banks & Extension 113
Counters
WCL has recognized that Welfare of employees by improving quality of
life of employees in particular and their family members in general, will
help to achieve the objective of the Company. WCL, with
determination, has adopted all-round Welfare Measures for employees
as its mission. In order to ensure achievement of the mission, in addition
to the statutory welfare measures, the company has adopted a system of
formulation of Revenue Welfare Budget every year, covering the
following items.

1. Medical Services
2. School & Education
3. Residential / Colony Maintenance / upkeep
4. Sports & Recreation/ Cultural Activities
5. Mahila Mandal.
6. Water supply
7. Canteen.
8. Community Development including SC/ST Plan.
9. Other Miscellaneous items / works.

In order to monitor the Welfare Activities, a Welfare Board has been

formulated at the Company Level, consisting of Representative from
different Unions and Management. Welfare Committee on similar line
are constituted at the Area Level also for proper monitoring and smooth
implementation.

Every year, the Welfare Activities to be undertaken are discussed by the

Welfare Committee at the Area level and a budget proposal made out
and sent to Headquarters. At the Company level, the same is examined
and deliberated by the Welfare Board and approval accorded.
Implementation of the Revenue Welfare Budget is monitored by the
Welfare Committee at the Area level and Welfare Board at Company
level. WCL Welfare Board has been regularly visiting the Areas for
monitoring the progress of work and whatever assistance is required, is
extended to the Area.

With a view to bring a competitive spirit in improving Welfare

Facilities and there by attaining better quality of life, every year,
competition is held in all units with participation of employees and
Union Representatives. This has indeed given boost in achieving better
status of Welfare Amenities and thereby alleviated quality of life of the
employees.
LIMITATIONS
• Globalization.
• Enlarging utilizing effectively for education and training.
• Absorption of new technologies by labors using education and
training.
• Modular approaches to vocational training, which will aid multi-
skill, impart skills attuned to the needs of the labor market, and in
consonance with the latest technology.

• Setting up a competency based continuing training system

covering al aspects of the economy with well defined certification
system covering learning, training, retraining, and assessment and
accreditation opportunities with desired academic flexibility to
overcome the barriers of time and distance.
• To expand training capacity and to provide training anything and
anywhere, new delivery mechanisms such as computer based
training, web based training, distance learning etc. Can be
adopted which would offer flexibility in timings, pace of learning,
and customization of content to serve the varying needs of the
different target groups.
• Worker education should receive attention.
• Focus on developing knowledge in the areas like economy,
industry, business organization and control of workers over their
work.
Training is considered as a tool for HRD. Training has immense
potential in transfer and utilization of latest technical known-how,
leadership development, organization of people, formation of self-help-
groups, mobilization of people as well as resources, empowerment of
resource-poor rural mass, entrepreneurship development, etc., which are
considered essential components of HRD.

FINDINGS

TECHNIQUES TO COLLECT THE DATA.

Discussions:

Discussions are very much informal, spontaneous and effective tool in

doing the evaluation. Discussions can be arranged with workers,
supervisors, managers and executives individually or jointly. The
discussions are lively since they are conducted in an informal
atmosphere. Frank discussions based on trust and mutual confidence is
very much useful in the area of evaluation. There is also possibility of
noting down and recording the discussions. Anybody can participate in
the discussions irrespective of age, cadre, experience, and others.

The study revealed some significant findings derived from the

interactions among the three independent variables (technology,
structure, and organizational climate). The results partially support the
effects of technology and organizational climate, and substantially
support the effect of structure, on job satisfaction. As for the
interactions, technology structure
Interaction hypothesis was not supported, while technology-climate and
structure climate interactions were partially supported. The results also
showed the effects of the independent variables on job satisfaction. The
interaction of technology and structure did not contribute to any
significant outcome. However, in the technology and organizational
climate interaction, two interaction effects were found significant for
job satisfaction. The interaction of structure and organizational climate
variables revealed a higher number of significant effects.

In examining the effect of technology on job satisfaction,

automation was found significantly predictive. Technology was
indicated to have influenced employees’ when its variable,
specialization, indicated higher scores along with job satisfaction.
A study in determining the satisfaction level among employees
of PENCH and KANHAN AREA of WCL revealed similar results
where they found work technology to be positively and significantly
related to job satisfaction. The findings are consistent with the literature
on organization theory, citing technology as an organizational context
that has great influence on organizational effectiveness.

In examining the effects of structure on job satisfaction, the

results showed a marked consistency in the effects of specialization,
formalization and centralization on job satisfaction. Structure’s
significant effect on job satisfaction was consistent. Some of the
organizational-climate factors were found significantly predictive of
organizational effectiveness. The significant effect of decision making
on job satisfaction supports the notion that employees allowed to
participate in decision making will be likely to have higher satisfaction
level.

The finding was also in line with the empowerment model of

management, whereby a participative workplace climate is created to
provide opportunity for employees in decision making the
empowerment model generally assumes that organizational performance
improves when hierarchy is reduced disposes power to workers.

Employees have higher job satisfaction when they are given the
opportunity in some form of decision making. Employees working in
highly automated plants showed higher job satisfaction level compared
to those working with lower automation technology.
Two factors of structure, specialization and centralization, were found
significant in their interactions with organizational climate. The
interactions showed the importance of work to be organized in an
organization practicing high specialization and centralization.

Organization of work is important in a situation where control

is with the centralized authority and work is specialized. Employees,
thus, interact and communicate efficiently through a structure of well-
defined rules and procedures. Specialization and decision-making
climate also revealed a significant interaction on job satisfaction.
Variation in job satisfaction indicated by employees of high and low
specialization is depicted by the difference in means of the two levels,
given less opportunity in decision making (indicated by low decision
making).
As employees were given more opportunity to participate in decision
making, the situation changed—employees of both levels of
specialization did not show any variation in job satisfaction.

The findings of the current study provide some insights into

plant managers on improving their technology in meeting organizational
goals. Job satisfaction was found to be significantly correlated to the
three organizational contexts—technology, structure, and organizational
climate—denoting the presence of the three variables as organizational
mechanisms that are imperative to achieving organizational
effectiveness. Plant managers may consider organizational climate for
better performance of their Organizations.
 CONCLUSION

Because of cutting edge of competition today demands every

organization, to measure its activities in terms of Effectiveness,
Excellence and Efficiency (triple E).

Evaluation is not one time measure. It is an ongoing process. Evaluation

of training in these days is doing with the help of various sophisticated
mathematical, statistical and psychometric tools. Highly developed
electronic machines and computers are employed by experts and
trainers to do the evaluation in systematic and scientific way.
Specialized experts and management consultants are available to do the
evaluation of training programmers independently with out any biases
or prejudices. It is worthwhile to try evaluation in a scientific way since
the proper and appropriate evaluation s may change the color of the
entire training system towards more usefulness to the organizations.

The evaluation tools and procedures of the company should be sensitive

and sharp enough to evaluate the referred changes precisely, as far as
possible.

ABBREVIATIONS

WCL: Western Coal Fields Limited.

CIL: Coal India Limited