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Organizational Structure of Indian Railways

Group No- 22
Saurabh Sharma 40

Himanshu Shrivastava 19
Gaurav Johri 13

INDIAN RAILWAYS SOME FACTS


Daily carries Australian population ( 19 millions). Largest Employer - 14.10 lakhs employees. No strike in last 35 years. Deaths in accidents < Road accidents on Pune Expressway. Last 5 years surplus > INR 90,000 crores.

INDIAN RAILWAY KEY STATISTICS


Plant & Equipments
Route Length Locomotives Passenger Service Vehicles Other Coaching Vehicles Wagons Railway Stations In Km Nos. Nos. Nos. Nos. Nos. 63,327 8,153 45,350 5,905 2,07,719 6,909

IR PERFORMANCE COMPARISON
Head Unit 06-07 07-08 08-09

Freight Traffic

Million tonnes

745

794

825

Gross Receipt

INR Crores

62,732

71,645

82,393

Gross Expenditure Operating Ratio

INR Crores

49,047

54,450

72,500

Percentage

78.7 %

76.2 %

93 %

SECTOR WISE BUSINESS


Sundry earnings 2.75 % 3%

Sales

Other coaching earning 2.75 % 3%

Passenger 27.61 % 27%

Freight 66.89 % 67%

Freight business is a play on volume. Passenger business is a play on volume & quality.

IR FREIGHT BUSINESS
Year
Loading (In million Tons) Earnings (in crores Rs)

01-02 493 24,845

02-03 519 26,505

03-04 557 27,618

04-05 602 30,778

05-06 667 36,787

06-07 728 41,717

07-08 794 47,743

08-09 825 54,293

1000
905

54293

800 600 400 200 0 493


414

519
442

557
460

602
513

667
613

728
695

794
796

825

41714

47743

30778

36787

Loading(Million Ton)
Earnings(in Rs. Crores

24845 26505

27618

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09

IR-FREIGHT BUSINESS SWOT ANALYSIS


STRENGTH
Bulk commodity transportation.

WEAKNESS
Not efficient for small quantities. No door to door service. Front line not customer oriented. Unable to meet industry demand.

Cheapest. Mechanized handling. Reliable service.

OPPORTUNITIES
Robust GDP growth.

THREAT
Alternate Transportation modes Pipeline. Sea route. Road Network Improvement in Infrastructure. Fuel efficient freight carriers.

Bulk Commodities demand is growing. Availability of technology for capacity increase.

IR- FREIGHT BUSINESS GROWTH ACTION PLAN


Dedicated freight corridors on

Western & Eastern sectors. Line capacity augmentation projects on bottle necks. Capturing small commodity market through containers. Freight operating information system(FOIS) for online monitoring & information sharing.

IR-PASSENGER BUSINESS SWOT ANALYSIS


STRENGTH Monopoly in low cost travel Availability of talent pool Low accident rates Reliable system WEAKNESS
Supply driven rather than customer

driven strategies. Front line is not customer oriented. Huge capital requirement for expansion Social obligations.

OPPORTUNITY
Vast untapped market. Advantage of low input cost. Availability of high speed technology.

THREAT
Growth of low cost Airlines. Improvement in road sector. Infrastructure. Mass Transport Technology. Automobile boom. Development of ports and shipping line.

IR- PASSENGER BUSINESS GROWTH STRATEGIES


Diversion of freight on dedicated corridors. Capacity augmentation projects at bottle necks. Terminal capacity augmentation & better services. Feasibility study for running high speed trains. Running of long distance trains. Reduction of speed differential between freight & passenger trains.

IR ENVIRONMENT
Stable Abundant

Simple
Dynamic

Complex
Scarce
Limits

Factors

Explanation Favorable Un- favorable


Scarce

IR Environment
Abundant, however, advantage shrinking

Capacity

To support growth

Abundant

Volatility

Level of instability Level of heterogeneity & Concentration among elements.

Stable

Dynamic

Reasonably Stable

Complexity

Simple

Complex

Simple

INDIAN RAILWAY ORGANIZATIONAL STRUCTURE

16 ZONES OF INDIAN RAILWAYS


1. 2. 3. 4. 5. 6. 7. 8. 9.
General Managers 10. South Western Northern North Eastern 11. North Western North Frontier 12. West Central 13. North Central Eastern South Eastern 14. South East Central South Central 15. East Coast 16. East Central Southern 17. Konkan Rly Central Western

Organizational Structure
An organizational structure is a mainly hierarchal concept of subordination of entities that collaborate and contribute to serve one common aim. Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambiance. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Individuals in an organizational structure are normally hired under time-limited work contracts or work orders, or under permanent employment contracts or program orders.

Purpose of Organizational Structure


Distribution of Authority
Determining how an organizational structure distributes tasks to accomplish a main objectives of the organization

Span-of-Control
Span-of-control portion of an organizational structure defines the amount of employees an authority figure is responsible for

Line vs. Staff Structures


An organizational structure may adopt a live structure or a staff structure or both to achieve their main objectives. A line structure, sometimes called a product structure A staff structure is the support staff or network assisting the line structures in their goals.

Organizational Height
Organizational height defines how many levels or layers from the decision makers and down there are.

Departmentalization
It's critical for an organizational structure to determine, categorize, and organize the variety of tasks to be accomplished when achieving a main goal and decide how to separate specific tasks from others

Principles of Management
1. Division of Work
1. The specialization of the workforce according to the skills of a person , creating specific personal and professional development within the labour force and therefore increasing productivity.

2. Authority and Responsibility


1. The issue of commands followed by responsibility for their consequences. Authority means the right of a superior to give order to his subordinates; responsibility means obligation for performance.

3. Discipline
1. Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth functioning of all organizations. 4. Unity of Command
1. This principle states that every subordinate should receive orders and be accountable to one and only one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict.

5. Unity of Direction
1. All those working in the same line of activity must understand and pursue the same objectives. All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one manager.

6. Scalar Chain
1. Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank.

7. Initiative
1. Using the initiative of employees can add strength and new ideas to an organization.

8. The Degree of Centralization


1. The amount of power wielded with the central management depends on company size. Centralization implies the concentration of decision making authority at the top management. Sharing of authority with lower levels is called decentralization.

9. Order
1. Social order ensures the fluid operation of a company through authoritative procedure. Material order ensures safety and efficiency in the workplace.
Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity

10. Remuneration
1.

IR- ZONAL RAILWAYS ORGANIZATIONAL STRUCTURE

Total Strength : 80,000 Nos. Total Business: INR 5000 Crores

IR- PRODUCTION UNITS


Chittranjan Locomotive Works Diesel Locomotive Works, Varanasi Integral Coach Factory, Perambur Rail Coach Factory, Kapurthala Rail wheel Factory, Bangalore Diesel loco modernization works

IR- OTHER UNITS


N.F. (Construction) Metro Railway, Kolkata Central Organization for Rly. Electrification Railway Staff College R.D.S.O

Public Sector Units


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Rail India Technical & Economic Services Ltd.(RITES) Ircon International limited(IRCON) Indian Railway Financial Corporation Limited(IRFC) Container Corporation of India Ltd. (KRCL) Centre for Railway Information System (CRIS) Indian Railway Catering & Tourism Corp. Ltd. (IRCTC) Railtel Corporation of India Ltd. (RAILTEL) Rail Vikas Nigam Ltd. (RVNL) Pipavav Railway Corporation Ltd (PRCL) Mumbai Rail Vikas Nigam Ltd. (MRVC) Railway Land Development Corporation (RLDA) Dedicated Freight Corridor Corporation (DFC)

CONTAINER CORPORATION CORPORATE OFFICE


RLY BOARD MD

Director (Operations) International Marketing Commercial Operation

Director (P&S) Projects Technical MIS

Director (Finance) Finance Accounts Secretarial Internal Audit H.R

Director (Domestic) Domestic Marketing Rating Commercial Domestic terminal

Turnover INR 3400 crores

Growth Rate 20 %

REGIONAL OFFICE SETUP OF CONTAINER CORPORATION


Corporate Office

North Central Noida

Northern Tuglakabad

Western Mumbai

South Central Secundrabad

Southern Chennai

Central Nagpur

Eastern Kolkata

North West Ahmadabad

IR THOUGHT PROCESS FOR IMPROVEMENT IN STRUCTURE Top down restructuring with focus on customer.

Merging of cadres beyond mid way career.


More autonomy at divisional levels Planning of short & Long term goals at every level. Introduction of team & task force concept.