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.

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

8. Thank you