2. Introduction to the Case
NDPL inherited Delhi Vidyut Board.
NDPL is a joint venture between TATA Power (51% Stake) and Government of National capital
territory of Delhi (49% Stake).
The case identifies the issues that NDPL identified in DVB and the steps that the management t
ook to resolve those issues.
Total consumer base of Eight Lakhs, of which 36% is domestic, 24% is commercial, 34% is
industrial and 6% is others.
The company is committed to bring down Aggregate Losses from 53% to 31% in 5 years
And try to expand the load at the rate of 7% to 10%.
The case illustrates how a public sector utility entity transformed from an archaic personnel
architecture towards institutionalization of strategic HR system.
The establishment of a psychological contract acted as the foundation, resulting in
commitment and faster adaptation to change.
Organizational learning took roots with systemic changes starting from the external customer
and later in the internal customer.
This case is useful for showing how internal change agents and the active partnership of HR can
lead to greater commitment than compliance with top management directives
3. Important people from the case
Mr. Sardana - CEO
Abhay K. Saini - HR head
Narendra kumar Jain - Retired Additional Chief Personnel
Officer
Dev raj Malhotra - Assistant Personnel Officer (DVB)
4. Q1.Challenges lying ahead of Sardana
Bureaucratic work culture
Multileveled Hierarchy
Overstaffing
Manual work resulting in accumulation of files
Salary disbursement through cash
No training programs, no job rotation
Theft of electricity
Widespread of corruption.
Promotions based on seniority.
5. CUSTOMER ISSUES
Poor quality of service and supply
Regular power cuts especially during peak summer and winter hours
Customers had to wait in long queues to pay their monthly bills
Complaints were attended on the basis of relationships and bribes
Billing errors were large
Rectification took days
Corruption was widespread
Large number of employees were extracting money from people to
provide services
6. ORGANISATIONAL ISSUES
Interference by local politicians
Major loss of revenue due to pilferage done by big industrialists
and other high end workers connected with political big shots
Losses reached 53%, had accumulated recievables of about 400
million US dollars.
No financial statements were prepared from a decade
Regular power cuts especially during peak summer and winter
hours
Corruption was widespread
Very poor infrasturucture
Conditions of electric transformers in grid stations were very
unsatisfactory
Wiring network was in shambles
Sales growth was limited
7. EMPLOYEE ISSUES
Employee relationship
Fear among employees that there might be excessive
changes after accusation
Dispersement of salary is a big problem no use of bank
account by employees
Average age of employees is 40. No recruitment in
past few years existing employees have not been
trained properly lack of flexibility in posting
Promotions on the basis of seniority
8. Q2.Considering yourself in place of
Sardana and team how would you
priorities issues to be handled and why?
If in place of sardana and team , focus to face these issues will be in
following order
1) Customer issues
2) Organizational issues
3) Employee issues
Major things we need to focus on:
Develop a proper organization structure and frame work.
Keep Check on corruption.
Decrease influence of local politicians in decision making.
Create a performance based Environment.
Training and Development of Employees
Providing Clarity of job roles.
9. ACTION PLAN
Conduct a SWOT Analysis.
Identify and bifurcate all the issues according to their respective
domains (organisational, employee, customer) to address the issues.
Define organisational goals and strategies and structure.
Implement and evaluate.
Work on following problems:
INFRASTRUCTURE
Upgrade machinery such as transformers, grid stations and wiring
network.
Upgrade office buildings.
Redesign bill paying process through use of online payment methods,
payment through retail stores and cheque drop boxes.
Digitize records and files. Use computers for all major activities.
Pay salaries through banks.
10. Employee Problems
Enhance transparency in work environment.
clear job design.
Create a performance based work environment.
Conduct regular performance appraisals.
promotion and compensation schemes that provide
for the recognition and financial rewarding of the
high-performing members of the workforce.
Training and development of employees.
14. EMPLOTE UNIONS
INTERFERENCE BY LOCAL POLITICIANS
Managing corporate governance
Commercial management
Operational problems
Employee relationship
Fear among employees that there might be excessive changes after accusation
19 employe unions with affilation to different political parties makes it difficult to take
decision
2 computers for 5500 employee
Dispersement of sallery is a big problem no use of bank account by employees
Average age of employyes is 40. No recrutement in past few years existing employyes
have not been trained properly lack of flexibility in posting
Promtions on the basis of seniority , seniors employee prefer chatu people so honest
employes like Jaggi going away
major loss of revenue due to pilferage done by big industrialists and other high end
workers connected with political big shots
Losses reached 53%, had accumulated receivables of about 400 million US dollars.
No financial statements were prepared from a decade
