MINE

MANAGER’S
MANAGEMENT
MANUAL

Anup Krishna Gupta

 Dedicated to my father
who was closely associated
to the Coal Industry
and devoted his life for regular
upliftment of Technology
and steady improvement of this
traditional and unique Industry.

-2-
Acknowledgement

Sri S. Sood, Personnel Manager

Sri K.R.G.K. Nair, Secretary
Sri G.V. Ramani, Sr.Personal Assistant
Of BCCL for their assistance.

-3-
 MINE MANAGER’S MANAGEMENT MANUAL

CONTENTS
Page No.
Preface - 4
1. Introduction - 5
2. Mine Management - 10
3. Production Planning and Management - 15
4. Production Management - 20
5. Management of Maintenance - 23
6. Manpower Management - 28
7. Training Management - 40
8. System Management - 49
9. Financial Management - 53
10. Materials Management - 59
11. Safety Management - 61
12. Disaster Management - 69
13. Project Management - 78
14. Operative Plan for Project Implementation - 80
15. Community Development - 95
16. Industrial Relation - 98
17. Role of Public Sector - 128
18. Way to Success - 155
Conclusion - 158
 PREFACE

Coal is by far the most important primary source of energy in our

country. To meet the ever increasing demand of coal, it is imperative
that the Mining Industry be managed efficiently. Mining Management
today has an obligation and challenge which never presented itself to its
predecessors. In the early days of Nationalisation, a drive for coal at any
price resulted in certain complacency regarding financial results. At the
same time, the much needed overhaul of the industry demanded the
capital investment which has now become an embarrassment;
nevertheless the industry could not have continued to meet its
commitments without such reconstruction. The success of this industry
very much depends on the success of its Managerial group - the
Managers of Mines. To have a successful industry, the efforts of
everyone employed in the Coal Industry should be directed towards
extending co-operation and assistance as well as ensuring that its
Colliery Managers are successful. However, there cannot be any “Ten
Commandments” to achieve success. The Managers have to develop that
skill which will give them strength, confidence and courage to negotiate
every situation.

The management experts and intellectuals have contributed a lot

in explaining Management Principles, Theories and Practices. Hence, it is
needless, for further illustration of such thoughts. The intention of
recording my perceptions in short is possibly to remind young Managers
of present days of complexity about their tasks and preparedness.

Some of my published articles based on personal experience, have

been included in brief and attempt has been made to present some of my
observations and thoughts in different chapters and left to the readers to
formulate their own views. It will add to my satisfaction in case someone
is benefitted after going through this book.

***

4
 1

INTRODUCTION

COAL is the key energy source for industrial growth in our

country. It is the fossil fuel resource which is abundantly available in
the country. The country stands at fourth position in the world so far as
the identified reserves of coal are concerned. Coal occurrence is mainly
distributed along river valleys - Damodar - Sone, Mahanadi, Koel, Pench-
Kanhan, Wardha-Godavari etc. There are forty four major coalfields
located in the Peninsular India.

The coal mining industry has passed through various phases

during the last two centuries. It has seen dark and bright days, and
there has been ups and downs, yet the industry continues to maintain
an important position in the industrial scenario of India.

Coal mining in the early days meant generally “more hole more
coal”. Later when gradually companies were formed and managing
companies came into the scene, some of the establishments and houses
considered systematic approach for extraction of coal, yet earning quick
returns were their main objective. Some of the private owners made
huge money by depriving its labour, indiscriminate mining even ignoring
the safety aspects, leading to dangerous mining condition for life and
property.

After 200 years of coal mining under private era, Government took
over coking coal and non-coking coal mines in two phases in the early
seventies. Initially coal at any cost was the philosophy but the situation
could not continue for long. Huge manpower, heavy absenteeism, low
productivity, revised wages, very quickly poised a severe threat to the
coal industry. With budgetary support from Government almost
vanishing, expansion and modernisation of mines became difficult. The
obvious choice left was to mobilise internal resources. This was not easy
to generate such huge amounts from internal sources making it
obligatory to go for price hike from time to time.

This is possible so long there is none in competition but the

monopoly of nationalised coal industry is in cross roads now due to
changing economic policy of the country including opening of global
market. More competition is going to be created with the decision of the
Cabinet Committee on Economic Affairs (CCEA) to allow coal consuming

5
industries to open captive coal mines and to allow the private sector to
set up coal washeries.

The reduction of import duty on coking and non-coking coal from

85% to 35% and later 3% for coking coal and 10% for non-coking coal,
has triggered the alarm bell. Nationalised coal sector is now to suffer a
major setback. The apprehension is that substantial duty cut will help
foreign countries to sell their coal, in the country, at a cheaper rate.

Internal market may be capsized to certain extent and country’s

coal production may have to be slashed down to great extent. Close on
the heels of the prices of coal declining in the international market, the
reduction in import duty would make the imported coal very attractive to
the bulk coal consumers who are located at the coastal area.

With Indonesia and Australian Companies already having

outpriced, nationalised coal sector faces the grim prospect of severe
competition with the country.

Under this circumstances, particularly with little or no budgetary

support, it is difficult to invest more to have ventures in capturing
internal as well as market abroad.

Added to this, the net outstanding from State Electricity Board

(SEBs) were on the rise and net budgetary support on the decline. The
coal companies will have to perform huge task before thinking for
modernisation.

The only point for consolation is that the coal companies have paid
back the Government considerable amount over the years.

It is, therefore, important to pay attention for proper development

of coal resources with appropriate utilisation. It cannot be said that this
is being developed to the maximum extent possible. It is necessary from
the point of view of self sufficiency and for generating more employment
potential, adequate attention will be required so that a stable industrial
bas is laid for economic growth of the nation.

The validity and long term future of the coal industry, largely,
depend on the forecasting of quality-wise future coal demand and
realistic coal price. This would help in deciding future course of action,
essential for decision making with regard to investment for future
growth. The long term prospect of coal demand largely depend on

6
technique and raw materials to be adopted for power generation in the
power sector and other key industries. Consumption of lower grade coal
in power sector and use of appropriate grade of coal in other industries
will help in deciding future coal demand.

In absence of skillful forecasting of coal demand there may be

occasion when on one side there will be heavy stock in the pithead and
on the other side consumers will be short of appropriate coal supply.

Coal being the basic raw material for power generation or a source
of heat or as a chemical raw material, this should be available with
required quality, in adequate quantity with continuity in supply.

The actual happening, however, tells a different story and has been
casting a long shadow on such possibilities with the increasing wages
trend, high cost of stores, machineries, equipment, petrol, oil, and
lubricant are not allowing the industry to establish its position. In
addition to above indifferent power supply and low productivity will
continuously push up the cost of production. Because of all these
factors, many collieries are becoming uneconomical. It is because of the
low productivity, certain collieries have been failing to give minimum
return on the capital so far invested.

In the present context, in which the coal industry has been

operating, the main scope for improvement will largely depend on higher
coal production with the same manpower and without large increase in
stores, and other costs. Productivity increase should be one of the
objectives to overcome the situation.

Productivity which means ratio between input and output can be

interpreted in different ways by different people. To some people, it is
output per manshift (OMS). To the production people, it is actual return
from plants, machineries or productivity of machineries and to
Economists it is the return of the investment made. Output per manshift
does not suggest viability of a mining unit. The break-even OMS varies
from mine to mine depending upon the capital invested and stores
consumed. Economic viability is the most practical aspect of the
industry.

Most of the UG mines are now worked in the conventional method

and by manual systems. Such mines can achieve higher production with
the same manpower through planned layouts, inventions, elimination of
wasteful expenditure, reduction of cost by introducing labour saving

7
devices, rationalisation of labour force and utilisation of machines
available. Strict manpower deployment will be a must in the mines where
higher mechanisation has been introduced. For success of
mechanisation, properly trained workers and maintenance men will be
essential. Training Department has to therefore plan to bring out
specialist workforce for these mines according to the need.

In most of the mine production costs are more or less fixed cost.
Under such circumstances, the most important factor is to achieve
higher production with the same facilities available in the mine.

Breakdown arising out of poor track maintenance, absence of

proper gradient and insufficient supply of tubs to the work face pose
major problems in the mines. It is worthwhile to concentrate on safe and
proper working face, adequate supply of tubs, proper layout maintenance
and organisation of coal faces.

For mechanised mines, to prove a success a few factors should be

ideal including suitable machine, better geological condition, trained
manpower, spare parts, and congenial working environment. When all
these factors are favourable, success in the mechanised mines is
ensured. While the functioning of each machinery should be kept under
constant vigil, maintenance has to be planned and systematic. Timely
attending breakdowns and availability of spares of right type and right
quality are important in mechanised mines.

In the coalfield there are frequent interruptions in power supply.

As a result, machine, worth crores has the utilisation factors not more
than in average 40%. Major breakthrough is required from all these
constraints to achieve success in the mechanised mines.

Another vital aspect in the mine is Safety. With the exhaustion of

easier deposit, underground mine work becoming complicated for
working at greater depth, coupled with the problems of gas, dust,
ventilation, geological condition, enforcement of strictest safety
measures is essential.

In the days of complexity, cordial relation in the industry is

essentially required. While it may be a fact that there are multiple
employees’ union in the mines of coal industry, with various ideology and
approach, yet it is necessary to meet such challanges in enlightened and
moderate ways.

8
 It is clear now that increased pay packets has failed to motivate the
workers to increase productivity. The management has to think very
sincerely the ways and means in getting workers and supervisors more
involved in their work to raise the productivity.

To-day we have reached a stage when most operations are subject

to some form of mechanisation. All classes of coal can be extracted and
loaded by proved machines of a type to suit most of the varied
conditions.

While every effort to keep abreast of all these latest technical

developments has to be made, it is necessary to use the new techniques
that have been developed as aids to more effective management. With
this in mind, the methods of training and supervision should be kept
constantly under review and to take prompt action to improve them as
and when need arise.

Whatever has been mentioned, it is clear that the important and

vital need of the coal company today is better management at all levels.
At the directing level, executing level and at the working face level, the
coal mining industry need more enlightened management team and
leadership. Specialisation in the field like planning, ventilation, safety,
engineering, Human Resource Development would be necessary to
achieve success.

9
 2

MINE MANAGEMENT

COAL is still by far the most important primary source of energy in

our country. The future demand of coal has been estimated to the region
of 290 MT in the year 1998 and 340 MT in the year 2000 AD. Energy
demand in excess of this would be met up by other basic fuel such as oil,
uranium, natural gas. Coal is to meet ever-increasing demand
successfully and as such it is imperative that the mining industry be
managed efficiently.

The industry can only claim to be successful, however, when it

produces sufficient coal of proper grades and sizes to meet the need of all
its customers. This coal must be produced in safe working conditions,
by safe working methods with efficiency. The cost of production will be
such that when fair wages and salaries are paid to all employees and all
other costs are met, the price of coal does not exceed the selling price so
fixed.

The well being of all the members attached to the indstry is very
much tied with the success of coal industry and the success of this
industry very much depends on the success of its Managerial group - the
Managers of Mine. To have a successful industry, the efforts of everyone
employed in the coal mining industry should be directed towards
extending co-operation and assistance as well as ensuring that their
Colliery Managers are successful.

The Mine Managers are the ‘King Pin’ of the Coal Industry.

It is a very responsible position and therefore, a Colliery Manager

has to equip himself in such manner that he can handle all important
functions satisfactorily.

The major functions are :

• A realistic forecast of output-Short term as well as long term.

• Rate of development
• To ensure every man is gainfully emplolyed and arriving at his
working place with minimum delay
• To fix standard for the use of all materials.

10
• Co-ordination with marketing deptt. on the size and grade of product.
• To fix a standard for effective industrial relation.
• There is no disagreement on the items to be considered in the cost of
production.

Besides above :

(i) To establish an effectrive communication system. What is needed

is the development of a right attitude of mind to economic
production.

(ii) To stimulate interest in all the officials at the colliery in the need
for maximum efficiency and provide a means of
controlling operations.

Managers have always realised their responsibility for production

i.e. to produce the optimum maintainable output at minimum cost,
consistant with a planned rate of development.

This is not only the Mine Manager’s responsibility but it is his

ambition and his career, as Manager is supposed to aim and striving to
achieve it.

The Colliery Manager is supposed to be engaged in constant follow-

up and implementation of various programmes scheduled as per
activities related to aforesaid fields. As his routine work, daily control
would start with analysis of :

• Daily Production Report

• Attendance Sheet - OMS
• Wage Cost and other allowances - EMS
• Saleable coal available
• Coal Despatched
• Failure of equipments
• The control section will supply other information necessary for
control.

11
• Meeting with under officials at the end of the shifts, to set programme
for advance action.

As weekly follow up measures, towards the end of each week,

Manager consults with the Under Manager and Cost Assistants on any
probable change in manning or output in the following week. The
temporary adjustments to the standards are sometimes required due to
changed conditions

At the beginning of each week, control section would provide

statements which will allow the Manager to review the previous week’s
result as follows :-

(a) The output results statements shows for each section and

(i) The calculated saleable output

(ii) The operational forecast output

(iii) The actual saleable output

)b) The Wage Cost Summary and reasons for variances.

(c) The estimated profitability statement will show the estimated

actual result of the previous week against the forecast result.

(d) The cost control statement will cover items over which there
is direct control at the colliery such as output, allowances,
overtime, general stores - explosives cost. The statement will
also show the budgeted cost for the week.

(e) The Manager and Under Manager would compare progress of

development.

(f) Manager will obtain a statement from Store/Material Section

about materials used and salvaged during the week.

The detailed information provided can be used by Managers in

various ways. Graphs in the Manager’s office prepared and kept
uptodate by Control Section which would be used to show the trend of
production, manpower in the book and deployment, attendance,
productivity, cost per tonne and various break up.

12
 The Manager and Under officials would maintain a continuity of
getting information for selecting their course of action to meet the
objectives of their mine.

All such activities, the Manager will perform by setting some

methods.

It is said that the external vigilance is one of the many prices of

good management.

“I keep six honest serving men (they taught me all I know). Their
names are What and Why and When and How and Where and Who”.

It is upto Management to see that these honest serving men give

him the regular and reliable information he requires. A Manager will do
well to ask himself the following questions in relation to his own
management team :

(a) Is my management team pulling together, or is it hampered

by internal friction and jealousy ?

(b) Are my keymen overloaded ?

(c) Can I and my immediate officials successfully delegate

responsibility ?

(d) Does normal routine succeed in my Pit, or is there a

continuous state of emergency ?

(e) Is the mine well planned so as to ensure continuity of

production and to reduce time and energy of those working
in it ?

(f) Are there excessive material handling costs ?

(g) Is there waste of power and is power obtained in the most

economical way ?

(h) What is the cause of machine-idle time ? Is it bad planning,

poor maintenance ?

(i) Are machines used to capacity; if not, why not ?

13
 (j) Is there waste of time and if so, what are the causes ? Is it
due to shortage of materials ? Unsuitability of equipment,
mechanical breakdown, bottlenecks, waiting between one job
and the next ?

(k) Is labour deployed timely and efficiently or are men kept

waiting to see a variety of officers and supervisors ?

(l) Is absenteeism high ? Is it due to sickness, accidents, or

indiscipline ? Is there bad time keeping ?

(m) Is there proper manpower support, is it poor placement, poor

selection, poor working condition or discontent ?

There may be many more such insearch which may play as guiding
factor for managing a mine well.

The tasks are wide and varied. A Manager can afford to do all
these tasks successfully through various small groups charged with
spirit and enthusiasm. A suitable organisation given to a Manager to
administer the mine activities will be much important, as much so to
develop team to achieve common objectives and goals of mines as well as
industry.

Before the organisation of mines, formation of groups and strength

to handle all tasks are discussed, various important tasks in brief may
be enumerated where involvement and participation of man and
management is the central theme.

***

14
 3

PRODUCTION PLANNING AND MANAGEMENT

COAL is a wasting asset. The management of mining industry is

full of reasons, such as, unnatural working condition, hazardous
localities of the operational units in far off areas without adequate civil
amenities. This is an industry where the higher investment has
diminishing returns.

Earlier, since mining began, there has been a natural desire to

exploit the most attractive and profitable reserves of coal. This policy
had always been followed by Mine owners, who like all others, engaged in
commercial undertakings, had been in business to make a profit.

After nationalisation, however, there has been limitation.

Now considerable care is necessary in assessing whether an area of

coal is worth working or not. The cost of production, economy,
consumers demand at the national and Company level, now need to be
assessed.

In some cases, unattractive areas of coal may have to be by-

passed, or even abandoned, in the interest of short term profitability,
with the anticipation that future improvement in mining technique and
equipment would permit such areas of coal to be worked profitably at a
later date.

Production planning for coal industry is worked out considering

the market demand. Depending upon the location of various consumers
and type of demands, coalfields are identified.

The main factors taken into consideration for production planning

are:

(a) Sectorwise coal demand

(b) Quality requirement
(c) Production potential of different coalfields in the country.

By the close working between the method study, mechanisation

and planning branches in conjunction with colliery and group
management, plans can be produced which create incentive to make real

15
gains in increasing productive capacity. Regular review of planning is
essential in progress.

The production plan is not intended in any way to provide an

estimate of what will be done, the main purpose is to get joint agreement
of the work that should be done to improve colliery results and to make
proper plans to achieve this end.

Production Planning

It is generally accepted that there is a need for higher productivity

in the coal mines and there is need for increased efficiency. To assist
colliery Management to achieve these aims, new developments in
mechanisation and workings have been introduced and greater emphasis
has been placed on production and cost controls, planned maintenance,
method study and similar technique.

In addition to the technical and human factors involved, there are

two essential parts of any system which is to produce coal efficiently.
The first is production plan and second is a good means of controlling
the day to day operations. When the national target production is
decided, based on best forecast of demands, some decision is taken as to
how to split up the production between divisions. Each Company will
split up its allocation between Areas and the Areas to collieries. At
colliery level, discussions have to be made as to the faces to be worked
and methods of working to be used keeping in view the cost.

Many a times, Managers repeatedly complain about target output

set at Area level for their particular colliery. When these are
unattainable and very frequent enquiries are made as to why they were
not achieved, it creates an atmosphere for frustration which is
detrimental to the effort and concentration required by the Manager to
operate efficiently. It is, however, important to get the budget fixed at the
colliery. Appropriate area level officers may be invited in such important
discussions. The Managers in conjunction with other officials and
making full use of service Department would initiate a thorough analysis
and investigation into the available resources and all operations involved
in production at his colliery. There would be a full discussion on the
findings of analysis and investigations and a realistic forecast of output
rate of development would be decided. The Area officials and specialists
are required to participate while deciding colliery Production Programme
more because of identifying methods and systems to be adopted, keeping

16
in view mine capacity utilisation and means, measures to increase the
system capacity of the mine.

The Production Planning must reflect the attainable performance of

the Pit with available resources of men, machines and materials and the
prevailing condition of working places. This plan has to be worked from
method study investigation and should show output potential, manpower
and material requirements, with manpower deployment as effectively as
possible and Plant & Machinery operating at optimum efficiency.

Production Planning of a mine is based on the following main

consideration :

• Potentiality - Area available for exploitation, coal seams and

associated geological information, mineable reserves and coal quality.

• Capacity - Capacity of each system alongwith the total system

capacity. This includes winding as well as evacuation.

• Infrastructure - Power, Land etc. Their availability.

• Resource - Men, material and Fund.

• Despatch - Both consumers as well as mode of despatch.

Short term as well as long term plans are drawn to improve

production and productivity mainly depending on the potentiality. In
case of short term plans, production improvement is envisaged with
minor modification to utilise existing capacity involving marginal
investment. Gestation period in this case is less and results are obtained
quickly.

In case potentiality of the mine is quite considerable, long term

plan is generally envisaged to enhance production. This includes major
reconstruction and development works having a long gestation period.
The capital requirement is also higher.

In both short term and long term plan, a schedule of activity is

drawn. After finalisation of the scheme and implementation is followed
as per schedule. Managers are sometimes satisfied with the system in
operation and are reluctant many a time to change or modify it anyway.
Due to reluctance to any change, Managers are required to have open
discussion with seniors so that new points are well accepted after

17
thoroughly being convinced. Remembering his own reluctance to accept
idea, the Manager’s task is to plan how to overcome any reluctance on
the part of Under Managers and other under officials. It is foolish to
expect success by merely thrusting a batch of forms into each under
officials hands and insisting that the appropriate information should be
entered thereon. Success depends on team effort and each member of
the team should not only know how he must play his part, but why his
contribution is important.

A Manager has therefore to decide with officials :

(a) method
(b) men
(c) machine
(d) marketing
(e) money - required to achieve production effectively
keeping in view profitability.

An investigation Group of the mine approach on the following line:

• State the objective - In most cases, this is to produce and sell certain
quantity of various quality coal economically.

• To establish the factors which can be attained e.g., choice of machine,

type of method to be adopted for steady output.

• Detailed planning on saleable output, face manpower, OMS, Face

profit, has to be worked out.

The next stage is to get reasonable estimate of the costs which will
be incurred and proceeds which should result so that the profit or break-
even points arising from the various alternatives can be calculated.
However, before adopting any production plans, it is necessary to have
cost point estimated face-wise.

The capital cost of equipping a face to be estimated by seperating

them into three categories.

(a) Costs completely dependent on length of the face; these

include such items as conveyor, belting, props etc.

18
 (b) Cost partially dependent on face length.

(c) Costs that completely independent of the length of the face.

These include the cost of the actual cost getting machine such as
Shearer.

To obtain the depreciation charges each of these three costs is

divided by the useful life of the item of equipment and the interest charge
added on. To the depreciation and interest charges have to be added
with estimate of the costs for wages, explosive, maintenance etc. It is
also necessary to estimate the proceeds for each of the alternative
methods on each of the faces. To do this, an estimate has to be made of
the size, qualities of coal produced. When the total face costs for a
particular method on a particular face are subtracted from the proceeds
for the method on the face, the figure so obtained will be ‘Face Profit’.

The output plan is a reconciliation of opportunities for output and

commitment for production imposed by the physical limitations at the
colliery. Opportunities for output will be restricted in total only by the
limit of capacity of plant and equipments. Therefore, the pre-requisites
of the plan is an accurate appraisal of the capabilities and limitations of
every machine from coal face, through the haulage and the shafts to the
depot. Each source of output is evaluated in terms of productivity and
financial return and placed in its respective position in order of merit.

***

19
 4

PRODUCTION MANAGEMENT

Productivity improvement is a major concern and hence

productivity management is an important area. It emphasizes on better
utilisation of resources like, manpower, materials, machines, money,
energy and so on. Productivity of a mine could be improved through
productivity management when current level of productivity is known to
Manager.

A careful examination of various factors influencing mines

activities, production performances is the first step. Later productivity
enhancement level has to be worked out and aimed.

Technological improvement, effective use of all available resources,

maintenance of machineries, reducing inventory and costs are the means
to promote productivity.

Productivity as a ratio of output/input is over simplification of

complex concept. Productivity is a measure of effect. It aims at the
maximisation of output by planned and most economic use of input and
minimisation of waste. In the coal industry the basis of productivity
measurement is indicated as :-

• OMS (Output per manshift)

• EMS (Earning per manshift
• Cost per tonne
• Overburden cost per Cu.M.
• Net sale value per tonne
• Profit per tonne
• Cost reduction over the period

Inputs comprises of a number of diverse factor which have no

common physical unit. Each unit is measured through separate
yardstick.

Factors : Unit of measurement

Labour service : Man Hours, Manshifts,

Money value, Mandays

20
 Power service : Kilowatt, Hour

Maintenance & : Manhour, Mandays

Repair shop

Productivity signifies a combination of efficiency and effectiveness

of system. Productivity Management is, therefore, very important task. A
detail study of the organisation is needed as a first step. Productivity line
could be improved when the current level is known.

Productivity management forms an integral part of management

functions. However, productivity improvement efforts need support of all
including employees in the grass root. Concerted effort is needed to
promote favourable attitudes by encouraging proper ethics developing
positive values for productive work, culture and contributing conducive
result oriented environment.

For improving productivity, four main aspects are:-

• Development of associated technology

• Maximum use of existing methods
• Efficient method of control
• More concentration of workings

Besides above, capacity utilisation of resources, machineries and

tools are means to augment productivity. Use of industrial Engineering
Techniques to restrict wastage and improvement in material handling,
layout incentive plan will help in increasing productivity.

Different people may have different perception to productivity. To

an industrialist, it may mean more profit, to a Manager it is better
utilisation of resources, to a labour, it may mean better wages, to a
Sales Manager, it is higher sale through better processing and so on.
These are imposed and dependent on factors from outside.

Total effectiveness of a Manager will, however, not only judge in

terms of production and marketing performance, but also on the quality
of decision taken at various level and at various occasions.

Every person in the industry has to realise that the day is rapidly
dawning when undertakings must make a contribution to the overall

21
economy of the country. This is a situation new to many unpalatable
though it may be, we now have to face the hard facts that losses will be
studied very critically in the light of improvement possible in methods of
work and methods of management. Increasing attention will be necessary
to the overall picture of costs against proceeds and proceeds against
need of market and financial advantage in grade of coal. Productivity will
not be only yardstick, but it will be necessary for the colliery Manager to
obtain assistance and experience to resolve best form
of mechanisation, economical use and the best way of achieving economy
in store costs, wage cost, so that production cost is minimum and
proceeds are at maximum.

***

22
 5

MANAGEMENT OF MAINTENANCE

1. In the coal mining industry, which is by nature, a destructive one,

bad condition, roof falls, operational use may cause equipment
failure, in addition to normal wear and tear on mechanical and
electrical apparatus.

2. With the new developments of mechanisation, greater emphasis is

required for planned maintenance.

3. It is apparent the organisation is required at the colliery in order

that management could cope with the administration and efficient
running of maintenance.

4. A basic maintenance plan at a colliery should indicate trend and

faults, so that management may take positive remedial action.

Maintenance of Equipments

IT is now realised that for the coal industry to make the best
possible use of the resources available in providing optimum production
at minimum cost, effective control system are essential. With the advent
of these control systems, the task of operating a mine has become
increasingly complex and the colliery Manager is presented with a set of
problems with which he must cope in order to obtain the full advantage
of mechanised mining. This demands a change in attitude and outlook
on the part of colliery Management Team. Indeed, colliery Manager finds
himself in a very different situation than his counter-part yesterday, now
a mine Manager has to operate from a network of function and
relationship more akin to human than mining engineering.

While human relation, manpower planning, manpower deployment

are of paramount importance, another problem which colliery Manager
faces today is to maintain equipments in a high state of operating
efficiency with change in technology and increased mechanisation. The
colliery Managers’ dependence on the machineries becomes greater and
with the current shortage and cost of skilled workmen, the problem
becomes a real challenge. This challenge can be met by the application of
a systematic organisation of a maintenance and a formalised control of

23
colliery engineering services. The achievements of these controls and the
part they play in the furthering of production have been proved. There is,
however, common agreement that the main principle of planned
maintenance is that by regular and systematic inspection, servicing and
overhauling, it is possible to forestall breakdown and ensure continued
efficient operation. This is not a new principle but with the increase in
the complexity of colliery engineering the additional administrative
burden on the colliery Managers and Engineers, a systematic and new
approach is required at the colliery in order the Management could cope
with the administration and efficient reviewing of maintenance.

A basic maintenance Plan in a colliery should indicate trends and

faults, so that Management can take positive remedial steps. Such
features as maintenance and result, breakdown records, utilisation of
engineering employees outstanding workload, should be known not only
by the Engineers but also by the colliery Manager, if the later is truly in
control of his jobs.

Planned maintenance should include therefore -

• Control of all non-schedule work.

• Control and deployment of all skilled and semi-skilled engineering

employees.

• Comprehensive breakdown reporting procedures.

No colliery Manager can hope to cope with the detail of

administrative Planned maintenance. It is the full time job of Engineering
Assistant under Colliery Engineer. Depending on the size of the colliery,
it is essential that the maintenance Assistant or Controller should be a
man with adequate experience as well as efficient.

Besides training, the Maintenance Assistant should have

persistence, persuasion and orderly mind.

The Maintenance Assistant or Controller may co-ordinate between

production and Engineering activities. Joint meetings may be conducted
by Manager each week, where previous performances are discussed,
maintenance holdups are resolved, future work planned in relation to
available employees and equipments. The maintenance Assistant or
Controller will consult the Operator and Fitter for the status and
condition of each equipments. Probably no one is so competent to advise

24
on the probable life of a particular pump impeller as the Fitter who looks
after this from standpoint. Therefore, he should be made a contributor to
the Maintenance Plan by being consulted. The obvious way to secure
enthusiastic co-operation from the Engineering staff is to place the
responsibility for building up maintenance scheme on their shoulders.
They then feel that the data is their own and they have confidence in it.

• For planned maintenance, following steps are to be followed:

• To ensure that all equipments are kept in correct receiving order to

allow for safe operation.

• To determine engineering manpower requirement and to deploy

them to the best economic advantage.

• To establish physical control of engineering employees, engineering

services.

• Workshop control.

• Up-to-date inventory of all plant & equipment.

• Effective follow up system.

• Breakdown reporting procedures.

• Inspection procedures to control the quality of work.

As maintenance is a vital part of production, too little or too much

maintenance will increase overall production costs. It must be controlled
on an economic basis according to the needs of each item of plant.
However, there must be adequate trained Engineering personnel to
achieve these targets. The planned maintenance procedures to the
outlined must not be accepted as the final word, but must be the subject
of increasing research to meet any change. Most of the problem relating
to control of maintenance and engineering services do not consist of
engineering know-how. They are bound up with human relationships.
Thus, the critical weakness of such control systems are the resentments,
hostilities and motivational reactions which they tend to evoke.

25
Maintenance Administration

The administration of this co-ordination of maintenance office will

largely depend on planned maintenance control centre.

Planned Engineering Supervision Planned remedial

Preventive at planned maintenance maintenance, Mining
Maintenance control and recording requests Engg.
centre requirements.

Full Engg. employees

utilisation on allocated
planned work

Break Down

Engg. Calls

Completed work

Engg. Inspection

It has been mentioned earlier that efficient engineering control

depends on the extension of the defined field of scheduled maintenance
to include all other engineering work.

With routine inspection various job requests may come. Job

requests arises from :-

• Reported defects from inspection, examination and testing under

routine maintenance.

26
 • Mining supervision

• Installation work

However, verbal requests for work to be done, need to be avoided,

as there may be communication gap and it will be difficult for the
Foreman Incharge to plan the work of his men satisfactorily unless he
has a written record of what has to be done. Very rarely training is given
to Foreman Incharge in organising their work and without such training
it is also unfair to expect Foreman to become a competent organiser.

There is some evidence in the mines today to suggest a need to

hear and speak the truth plainly relating to breakdowns. Apart from any
other points it is quite impossible to assess the progress of the
maintenance plan unless a factual record of breakdown is kept.
Breakdowns include all equipment failures whether involving loss of
output or not.

Colliery Co-operation

It would be of little use to attempt to establish maintenance on a

full basis if no one in the colliery is keen on the idea. If management is
enthusiastic, however, such enthusiasm can and will be conveyed to all
ranks. Enthusiasm, by itself of course, is hardly sufficient. It must be
translated into action. Primarily this action takes the form of co-
operation between the production and engineering personnel.

The changes required by these controls may be in conflict with the

traditional methods and beliefs especially at supervisory level. It is
required that supervisors should not only understand the operation of
the controls within the range of their responsibilities but also the way in
which these controls may be used to assist them in this work.

***

27
 6

MANPOWER MANAGEMENT

The process of evolution through which the coal mining industry is

passing is one in which the wages content of the total expenditure is in
the order of 50% and the charge of each shift worked increases annually.
Therefore, it is Management’s duty to ensure that men’s skill are not
misdirected due to lack of proper deployment.

Manpower planning consists of

• taking stock of existing manpower resources

• working out future manpower needs
• identifying what should be done to ensure that future manpower
resources match those needs.

Manpower planning

Best utilisation of available human resources, manpower

distribution and gainful deployment will be important in setting the
efficiency level of a mine. Manpower Planning is an integral part of action
programming and is fundamental to the efficient operation of the colliery.

Manpower planning is essentially a two stage process. The first is

to identify the number of jobs, and hence men, required to carry out the
work specified in a colliery’s Action Programme.

The second stage is concerned with identifying the action needed.

• mainly training and placement to achieve and maintain the

required levels of manpower with the appropriate skill.

The basic elements of any system of colliery Manpower Planning

and control are:-

(i) Establishing and regularly updating, standard job

performance.

28
 (ii) Converting the jobs identified in these plans to the number of
men on roll required by skilled categories.

(iii) Preparation and maintaining record of actual manpower for

comparison with requirements.

(iv) Ensuring that day-to-day deployment is related directly to the

current standard job plan.

Manpower planning should be conducted in ways suited to the size

and nature of the units and should be

(i) backed by the management at the highest level.

(ii) integrated with other aspects of planning of the organisation.
(iii) based on adequate and uptodate personnel records.

Standard job Plans

A standard job plan is a list of all the jobs specified and implied by
the activities in the Action Program. It should detail the number of jobs
by type at each workplace during each shift. Care must be taken to
ensure that only whole job requiring the whole of a man’s time in shift
are listed. Minor jobs requiring less than a man per shift to complete,
should be grouped into convenient whole jobs.

The most convenient way of establishing a standard job plan for a

pit, in the first instance, is by means of a detailed job survey, based on
the work required in the Pit’s current action programme.

Regular overall re-appraisals of job plans should be taken place at

each Action Programme review. Job plans will also need regular minor
updating within a period probably weekly, depending on the progress in
operation.

Converting jobs to Men Required

The calculation of the number of men required to carry out any job
plans must take into account non-attendance. Allowance should be
made for all the reasons for men being absent on days when the colliery
is working e.g., due to sickness, accident, training, unauthorised
absence, trade union business, individual rest days, holidays. The total
absence percentage is known as the non-attendance percentage. It is
usual to apply the average actual non-attendance percentage for a

29
preceding period for each category - updated to reflect current and
expected trend of men availability.

The application of such non-attendance percentage should be

selective. Not all jobs require to be manned up each day. Some jobs are
of low priority. There are other jobs which because of their specialised
nature have to be carried out even by overtime when regular men are
absent. There are jobs which may be fitted by redeployment from lower
priority jobs.

It is the function of colliery Management to identify the jobs which-

• will not be filled when attendance is poor;

• will be covered by drawing trained personnel from manpower

pool;

• will be filled by redeployment from lower priority;

• so exceptional that will be covered by overtime workers (to

restrict as far as possible);

• will be shared by other men.

For all jobs like these, the number of men required will be the
same as the number of standard jobs.

Thus, the non-attendance percentage will be applicable to those

jobs which must be manned up everyday, and cannot be manned by the
above methods. The calculation of the number of men on books required
to cover the number of essential jobs in each category is as follows:-

No. of essential jobs

No. of men required = ---------------------------------------- x 100
100 - Non Attendance percentage

The statistics required for this purpose has to be maintained by

Personnel Department of the colliery.

Manpower planning will be both of short term and long term

basis. Considering the production plan-mechanisation programme,

30
availability of machines and method to be adopted, productivity level has
to be set and keeping in view the cost part, forecast of manpower
requirement jobwise could be made.

Manpower Record

It is necessary to compile an inventory of the number of men

available at the colliery by skills. Uptodate records covering all workmen
supervisors, are essential out of various registers, following two are
essential -

1. Manpower Register - Name, Designation, Grade/

Category, date of birth, training attainment, statutory
qaualification and certificates etc.

2. Register - In alphabetical order. This will require for

cross reference purpose.

Once the basic records are established, they must be kept up-to-
date.

Comparision between manpower requirement & availability

Having established the detailed job plans and hence manpower

requirements and knowing the number of men by skills currently
available, the next stage will be to match these to ensure that sufficient
men are available. This is done by allocating man to each job in the
standard job plan by district, activity and shift.

Manpower Deployment

The word “Manpower Deployment” have widely different meaning

to each individual. The term over the course of time used to describe a
system of manpower recording. “Deployment” can best be defined by
using it in its original military context of setting out troops from column
to line, according to a devised plan of the military campaign.

The Manager in his capacity of commanding officer, deploys his

workmen to the best advantage from the front line right back to the
supporting areas. As each workman comes to the colliery, the Manager
must ensure that -

31
 1. Each man is fully occupied befitting skills, experience and
ability.

2. He must so direct the operation that the input of labour,

materials and equipments are aimed towards the target
which will provide the most profitable form of return within
the limitations imposed by the physical condition of his
colliery.

In devising the system therefore, the following consideration must

be made -

• Pre warning of attendance

• The ability, skills and other relevant information of all workmen in

the form of labour plan should be made available.

• The order of priorities of output and development should be agreed

and form the basis of an output plan.

The factor that must be taken into consideration in preparing for

satisfactory manpower deployment chart are :-

(a) Rate of absenteeism, in respect of each grade of workmen,

facewise.

(b) Overtime worked as substitution for absenteeism.

(c) The cost to the industry of compensation for industrial

injuries if rapidly rising, such accidents are contributed to
by deployment of personnel to jobs without adequate
training.

Every development job to be undertaken at the Colliery will be

listed with the number of men to be required for such job.

A manpower deployment statement is presented for every job at the

colliery. This is to be drawn by the team on the basis of the men
required to produce the standard daily output, maintain the rate of
development. The place of work of every man employed on the surface is
to be shown on the plan of the surface layout.

32
 Priority Number may be given for each job e.g. 1a job means, it
must be manned even at the expense of production, job 1b and 1c must
have the Manager’s/Under Manager’s permission to take off men from
the job. 2a, 2b means an Overman can use men in emergency: 3a, 3b,
3c means men can be used by Mining Sirdars or Senior Fitters who must
provide reasons for doing so.

“Where shall I begin your Highness”-

“ ........... Begin at the beginning and carry straight on until you

come to the end and then stop” - said the King.

Like the King in Alice, the plan to begin is at the beginning and
that a simple and yet a fundamental analysis of the meaning and
implications of the expression “Manpower Economy” is worth attempting.
If it begins with the statement that the economic use of manpower means
that the service of each man according to his inherent abilities and
training should be utilised in such a way to make the maximum useful
contribution to the undertaking can any pointer be drawn towards
improvement ?

The point may be placed in reverse - what are these factors which
lied within our control which operate against the maximum useful
contribution being made.

These factors are not only by means, all physical in nature, some
are organisational, some historical some even psychological. The
principal reason why the maximum contribution is not made by a man
are -

(a) He may be restricted by time;

(b) He may be restricted by facilities or equipments;
(c) His labour may not be satisfactorily coordinated or controlled
(d) He may be inadequately motivated.

The above factors are rarely independently operative, however,

motivation and time are often linked and co-ordination overlap.

Coal mining activities like military operations can frequently show

startling improvement in results, by the concentration of effort at one or

33
two points, rather than by a dispersal effort over a wide front. In
particular, depending on the mine condition, concentration of coal
getting operations underground into one section of the pit may offer a
fruitful source of economy in manpower and equipment, leading to rapid
improvement in the overall productivity.

The saving in manpower achieved between the Pit-Bottom and coal

face by this type of concentration will be apparent. There is a tendency
for development work for face replacement to take place at several points
simultaneously.

This leads to an expensive dispersal of conveyor transfer point

attendant, supplies transport staff.

Manpower Budget

Productivity may be fixed considering the production programme

and previous years achievements.

Formulas and Formats of Manpower

Daily production = O M S (Output/manshift)

Manshift

Daily Production = Manshift + (20% Leave/sick reserve)

OMS
= Manpower Strength.

Taking into consideration :-

For Loaders

30% - 35% average Leave/Sick, Absenteeism reserve and

15% for others
Total 20% overall
The ratio between PR to TR is preferred to be 1:1.5 in u/g

Redistribution of workload and change in system may help in

rationalising manpower strength.

34
MANPOWER PLANNING

For proper manpower planning, management activities aim at co-

ordinating the requirements and availability of different type of
employees. This involves assessing right kind of people at the right time.

Manpower planning constitutes an integral part of corporate plan

and serves the organisational purpose more than one. It helps to :-

- capitalise the strength of its human resources

- determine gap between availability & requirement
- anticipate redundance
- determine optimum training level
- cost of manpower
- assist productivity determination
- assure right sizing of manpower

The process of Manpower Planning:

Objectives of organisation & strategic plan

Market Forecast Production Process Financial Plan

(Technology to be used)

Time (Short/long term)

Manpower Demand Estimating Manpower Supply

Forecast Requirement Forecast

Number Manpower Inventory

Category

Skill

Action Plan

Monirtoring/ Intake- Redundancy Productivity

Control Retraining

35
 The starting point is Sales forecast and targets. Based on these
production plans are drawn, specifying quantity-quality/gradewise over a
specified period. This is followed by assessing number of people required
skillwise gradewise considering the technologies, process of production.

Before carrying out Manpower planning exercise, it is to be decided

how and what is to be performed. The several tasks are to be carried out
and divided into work units called job.

Assessing tasks to job is known as job design.

Work study techniques are appropriate to measure work, set

standard/norms and calculate number of persons required.

The method of ratio trend analysis is helpful which refers the ratio
between executive to supervisor, supervisors to workers, PR workers to
TR workers, underground workers to surface workers etc.

Managerial judgement is important to prepare guidelines in this

account.

The phases to be followed:

Target of sales

Target of Production

Actual process of production technology to be used

Number/Type of equipments to be used

Capacity of the unit - Pattern of operation - material flow

- Organisation of work - grouping of jobs/activities

- target production - Manpower planning

36
Manpower flows:

Transfer in - Transfer out -

Recruits in - Manpower Position Retirement -

Promotion in - Voluntary Retirement-

Discharge/Dismissal/
Termination -

Resignation -

Promotion out -

Manpower Planning

Information required

Effective Manpower OMS

Coll- Year Sale- Face Trans- Dev. Other UG UG Surface Total
iery able port and Overall
output special OMS
work

The tabulation of the labour detail enables management

To preserve continuity of thought and continuity of control.

Year

Total face Manshifts working Wages Cost per tonne

Transport
Engineering service
Other UG labour
Total UG other than face
Total UG
Total Overall
Total OMS

37
Manpower available

Jobs Type of people available No. Designation Grade

Supervisors Mining
Elect.
Mech.

Highly skilled Elect.

Mech.
Mining

Skilled Machine Operation

Workshops manufacrturing
Fitting
Repairing

Semi-Skilled Roof support operation

Coal Face Operator

Face Workers

Manpower Distribution Plan

Name of the Mine ..........................................................

Shifts
Ist 2nd 3rd General

Surface Installation
1
2
3
4

38
CHP
QualityControl
Workshop
Loading
Store
Pit Head
Security

Underground
Coal Face
‘Machine Gang’
Coal Transportation
Material Transport
Elect. Plant
Mech. Plant
Development
Safety

***

39
 7

TRAINING MANAGEMENT

M ines have undergone lot of changes over a period of last

twenty years. During the next few years, many more changes
will come. While every effort to keep abreast all these latest technical
development has to be made, it is necessary to use the new technique
that have been developed as aids to more effective management. With
this in mind, the methods of training and supervision should be kept
constantly under review and to take prompt action to improve them as
and when need arose.

In Training and outlook, the industry must be ready to meet these

changes. The future presents a tremendous challenge. The Managers
must keep pace with the new techniques, but yet must not forget that
very often the whole success of total operations very largely depend on
the Men . It is one thing to manage machines; it is another thing to
manage men in such a way that manpower is conserved and utilised
efficiently and a high degree of respect in human relation is also
engendered. The progress as machine users can only lead to disaster,
unless progress is made as human beings.

Training practice cannot be static in these times. It must be related

to the rapidly changing methods of work. It is to be borne in mind that
the greatest problems of training and education is to give the new
entrants and budding miners invisible weapon of personal pride and
morale to make him feel that he is not a pawn in the game, but a
member of an honourable and distinguished profession, whose password
is service to the country and his fellowmen. It would be the task of
Managers to see that the aim of this industry must be to have employees
so nurtured and brought up that they will think better, feel better and
act better than they have ever done before.

Mining is a constant struggle with nature and because of that it

attracted men who did not like being “Feather Bedded”. The Nation has
good cause to be proud of the men who worked in coal mines and of the
people who managed them. The flexibility of Indian coal miners and their
adaptability had made possible the use of new and mechanised methods
with the corresponding increase of output.

40
 In the past, the members of coal industry were completely behind
the drive to make the industry pay its way. Those who are now
associated with this industry have to meet the future with confidence
and determination to see that Indian Coal Industry will not only be the
progressive industry but will maintain the industry’s favourable
competitive position with other forms of energy.

The members attached to this industry have to therefore feel

involved and for this it is necessary for the improvement of their social,
scientific and intellectual position. An organised Management has to
protect and support the character, status and interests of their members.
A vital necessity of any organisation is a settled and secure employees.

Training

Today we have reached a stage when most operations are subject

to some form of mechanisation. All classes of coal can be extracted and
loaded by proved machines of a type to suit most of the varied
conditions.

This involves not only consultation but a new training scheme

which recognises that every mine worker is potentially a Craftsman, and
that indeed he must be a Craftsman if he is to be of any real value in
modern mining.

The industry’s prime objective is to obtain output at a level

consistent with the present and expected future demands for coal. To
meet this objective, the industry must make the fullest use of all its
resources of which the most important are its people and therefore,
requires from those in management, the most effective contribution of
which they are capable.

In a colliery, the right number of appropriately experienced and

qualified employees in the right jobs at the right time are needed, if the
mine has to achieve its primary objective. To achieve this, requirement of
manpower and training plans of the available employees have to be
worked out and updated at regular interval.

To get economic results, concentrations of the working of a colliery

will require to be more intense than it has been in the past.

41
 The aim will be to take from a face a larger output over 24 hours
than has been past practice. It follows of course, that any hold up of
such a face will result in a correspondingly greater loss. Therefore, to
prevent hold ups, all work in connection with such faces will need to be
of very high standard. The obtaining of such standards should
automatically bring about safer working conditions and go a long way
towards reducing accidents. Colliery Manager will never be able to obtain
and maintain proper standards of work unless they have Junior Officials
who know what Proper Standards are and know how to obtain them
through proper training.

Managers and the superiors often think that the present day junior
officials, overmen, are not upto the same standard as they were when
they were junior officials. This is only more because they are now looking
at the picture from another standpoint or if present day standard are
lower, it is because they themselves are training their under officials as
well as they themselves were trained by their superior. The real
difference is that today’s under officials are working in quite a different
atmosphere from that of 15 to 20 years ago.

To be able to cope with prevailing conditions, junior mining

officials and overmen require to have a considerable amount of technical
knowledge. They need to know, how to obtain and maintain good
standards in their districts, and they need the backing of their superiors
in their efforts to obtain and maintain high standards of workmen.

A great deal can be done to train these under officials, overmen

and colliery Manager should do all they can to help and facilitate the
training course instituted for juniors and overmen.

It is vital for the industry and the country that objectives of the
industry are achieved. To do this, efficient Management is must and one
of the pre-requisites for this is an effective management development
system as well as effective Training programme. This can help to ensure
that every individual has the opportunity to develop his personal
qualities and potential to the full so that he can make greatest
contribution in his present job and be given the opportunity to develop
these for the benefit of his future career. Management Development as
well as Training for our employees are the basic means to make the best
possible use of most vital resource - the people in the industry. Managers
have to recognise their vital role in building Management team and
employee development.

42
Management Team Building

(a) Assess the individual’s ability and potential to improve his

performance and develop his present post.

(b) To assess whether individual has potential and to what extent

to progress further in his skills.

(c) To make better use of his ability, to assess what the individual
needs in the way of experience and training.

Considering all these, training and assignment may be finalised for

under officials.

It is the prime responsibility of all those in Management to ensure

that their employees and staff know at all times, what their jobs are, to
apprise continuously and seek to improve the performance of their
employees and staff, and to try to ensure that the abilities and skills of
their employees and staff are developed and used as effectively as
possible. It is necessary, that employee should be made fully aware of
what is expected from him in his present job as well as how best he can
contribute in future with added training. It may be remembered that
while all depreciate, men appreciate with the passage of time and
experience.

Managers will identify type of training needed and training

required to match the skills for standard job performances. It will be both
short and long term depending on the manpower Planning drawn for the
mine.

Identification of training, type and number of individual to be

trained to be planned well in advance by training officer in consultation
with the Manager as soon as Manpower Planning is finalised.

Training for supervisors/overmen & Foremen

Maximum support for standard performances comes from

Supervisors Group. They need to know Management and Supervisory
techniques much more, as they handle matter at the spot and from

43
amongst them, next group of Asst. Manager, Engineer and other officials
will be developed.

Therefore, preparing a strong Supervisory Team is equally

important as it is necessary to have an effective Management Team.

Training Area

1. To appreciate the need to maintain good industrial relation

within the sphere of his jurisdiction.

2. To know the terms and conditions of his personal

employment and know the terms and conditions of his
workforces employment.

3. Understand the difference between consultation and

conciliation.

4. To know ‘standard task’ and ‘standard manning’ as they

apply to his district.

5. To know the existence of colliery emergency organisation in

the event of major incidents.

6. To understand colliery plan, i.e. Production, Manpower,

Budget, etc.

7. To know the importance of good leadership.

8. To recognise the need to develop a team spirit within the

group and to appreciate that they are part of a larger group
in achievement of collieries objectives.

9. To acquaint with production, maintenance and marketing

problems.

10. To appreciate safety provisions and their enforcement.

11. To recognise that effective conciliation is an essential tool of

management. Many more other areas may be convened by
the Managers for developing team of supervisors.

44
 Training for Clerical staff serves equally important. They are
required to acquire clerical skills to adopt to a wide range of clerical jobs.

• Need to know about office equipments such as Typewriter, adding

machine duplicator, telephone, wireless, punching
machine, numbering machine, photocopies, word processors,
computer, comptometer, calculators, etc.

• Office aids such as keeping diaries of events and talks, external,

internal telephone directory, knowledge of office procedures, ready
reckoners, emergency contact, time table, dictionary, organisation
chart. Knowledge and training in calculation, wage
calculation, leave/sick wages, allowances.

• Communication-Ability to attend and receive the visitors, taking

message accurately, effective use of telephone.

• Ability to draft or write letters, memorandum, report, meeting

notes.

• To check documents of all types for :

(i) accuracy

and

(ii) meaning

• Filing - To place documents of all types in the system maintaining,

index, recording, splitting up and closing files.

• Sorting - sorting documents.

Management has no option to select people through recruitment

according to their need. Over and above, skilled hands are going away
from the industry through natural wastage and therefore Management
has to depend on these young persons. It is more important now to
involve the young entrants in training. They must get instruction in safe
method of working and travelling below ground and to teach them
technical and practical skills necessary to enable new recruits to carry
out their jobs. Young recruits are trained in one of the following schemes.

45
• To become skilled face workers.

• To become skilled fitter and Electrician.

• To become efficient mine workers and underground jobs.

• To produce potential Supervisors.

Skilled face workers

(a) Pre coal face training at training centre to introduce them to

the environment of the coal face. It allows them to perform face
operations under simulated conditions and to appreciate the individuals
contribution to team effort.

(b) Basic coal face training - Coal face training should be

continuous for a few months, leading on completion to skilled face
workers.

(c) Mine workers - General underground training including specific

training in a particular skill which his age and aptitude enables him to
do.

(d) Skilled Fitter/Electrician - Basic training as well as practical

training to become Colliery Fitter, Electrician, Turner, Machinist,
Blacksmith, Welder, Moulder, Machineman.

e) Supervisors - Training for Surveyors, Sirdar, Overman, who

have potential and educational background to match such trade.

46
Areas

Management Development Development of Supervisors

Knowledge of job Knowledge of job

Responsibility Responsibility
Ability to gain co-operation Technical ability
Technical ability Problem solving
Problem solving Communication
Decision making Cost consciousness
Delegating Team building
Communication Man management
Attitude to change
Cost consciousness
Team building
Attitude to training
Man management

Employees’ Development

Mining Electrical Mechanical

1. Coal Face 1. Basic Workshop 1. Basic Workshop

Technology Technology

2. Haulage and 2. Surface Ele. Plant 2. Surface mech.

Transport incld. including coal plant
coal preparation preparation plant
plant

3. UG repairing work 3. UG Elect. Plant 3. UG Mech. Plant

47
4. Planned 4. Colliery store 4. Colliery store
maintenance material handling
material handling

5. Surveying and 5. Management and 5. Management and

Tech. course Tech. course Tech. course

6. Planning Safety, 6. First Aid 6. First Aid

Rescue

7. Method Study

8. Mechanisation &
Strata Control

***

48
 8

SYSTEM MANAGEMENT

T HE management of mining industry is complex, compared to

the other industries for various reasons such as locational
disadvantages, hazardous and unsafe operation having risk factors and
the mineral resources itself is wasting asset in coal industries. Managers
therefore have to work with all these constraints.

Since internal management structure is not designed scientifically,

the deficiencies in the management system have resulted in a fall back to
meet the desired expectation of the nation. Colliery Manager have not
been able to adopt scientific management system due to conventional
management style and inherent resistance to change.

Management decisions are based mostly on facts and not

substantiated by figures. However, modern information technology with
advanced technique of computers simulation can deal effectively and
help in taking management decisions.

The Computer will help in -

1. Quick supply of relevant datas on -

(a) Production
(b) Cost
(c) Despatch
(d) Sales
(e) Stores items
(f) Manpower availability
2. Feed back system with memory
3. Monitoring and comparision.

Management information system can be developed by using

computer at mine level to store the following details -

49
 • Customers’ detail requirement and transport order
• Production standard
• Personnel statistics
• Engineering details
• Inventory of materials
• Capital Budget

By systamatic processing and analysis of datas decision can be

formulated. MIS has had moderate influence on the decision making
process, little impact on job content, and no influence on reducing or
increasing the number of top managers required. The major
responsibilities of top management involve long and short range
planning, resource and capacity analysis, settling of profit and budget
goals, and in general establishing the business objectives of the
Company. There is heavy planning content as opposed to heavy control
content at the lower management levels. Information system have been
more effective in the control than in the planning area. Control functions
tend to be more structured, more programmable, more straightforward,
and therefore, more receptive to automated information systems.

The decision making process consists of the following six elements

-

Identify areas of improvement, analyse their areas, develop

alternate solutions, evaluate alternate solutions, make decisions,
implement the decisions.

The steps most influenced by computer systems are the

development and evaluation of alternate solutions. Automated MIS can
make decisions on lot sizes and length of production runs, but they as
yet are not utilised to any major degree in making final decisions on the
introduction of new product or the need for an additional factor. MIS
plays an important role in the implementation of decisions once made.
There are some basic reasons for the relatively limited effect of MIS on
decision making to date.

Unstructured nature of data i.e. data required by top management

is unstructured, non programmed, future oriented, inexact and external
need to be avoided. System Management is important and essential as
information processing has become the dominant theme of this age.

50
MANAGEMENT INFORMATION SYSTEM (MIS)

“The information we have, is not what we want,

The information we want, is not what we need,
The information we need, is not available.”
- Prof. Finagle’s Law of Information

Managers are to devote long hours to deal large number of

problems and therefore, information system is to be designed in such a
manner that vital ingredients are presented systematically for a
meaningful analysis in little time. MIS should provide such information
data.

The information must contain something that Manager already did

not know. The new information must cause Manager to take action
which otherwise would have not been taken.

The action taken must lead to higher pay off - e.g. more gains,
increased profit, reduced risk, greater safety or improved image.

The primary objective and purpose of MIS is to help decision-

making, control./planning and co-ordination.

Information on - Number of machines, equipment & their

Productivity performances,
Production status
Production cost
Physical flow of materials, labour quality.

Sales - Total sales forecast - actual sales and

differences qualitywise/consumerwise sales,
cash & credit sales.

Purchase - Source of supplies, terms of

delivery/discount, flow of material, machines,
equipments parts.

Stores - Stock categories, classification, codification,

moveable-non-moveable items, ABC
categories, post consumption, cycle time

51
 consumption, overstocking.

Finance - Accounting department creates, processes

and retrieves data related to profit & loss,
cash flow, inventory control, pay roll, cost
allocation, expenses classification, cost of
labour, material and overhead.

Personnel - Information of Personnel records, Training,

Pension, Pay roll, Manpower Budget and
utilisation - defecit - surplus position.

Today’s successful Manager needs the system approach to

Management with the ability to participate efficiently in the anlysis,
design, utilisation of computer based information system.

In this area of competition, right information is the major resource

for which Managers are the end users. Managers need to make quick
and correct decisions based on relevant updated and organised
information. Designing effective management information system is
essential for obtaining strategic solution to managerial problem.

***

52
 9

FINANCIAL MANAGEMENT

T HE basic objective of a business unit is to earn a satisfactory

return on its assets in real terms after payment of grants.
Therefore, it should be the aim of coal mine to maximise its long term
profitability by securing those sales which are profitable on a continuing
basis in competition with other fuels, and that it should plan its
marketing, production and capital investment accordingly and bring
production capacity into line with its continuing share of the market.

Also over the next 5 years, operating costs per tonne are reduced
in real terms of deep mine and opencast production considered
separately.

We always come across various financial terms during the course

of running business.

A. Cash It is just like oxygen of business. Without this,

business is stifled, suffocates and ultimately
comes to a halt. The cash is raised in the form
of LOAN or SHARES.

Loan Fixed interest rates, fixed terms

Share Non-repayable, dividend in accordance with the

performance. Share holders are owners not
creditors.

With the cash raised from loans, shares or grants, the amount if
invested either in fixed assets or in working capital.

B. Fixed Assets to be retained in the business for a

Assets longer than the normal operating cycle which
are not converted into final product. Capital
Expenditure e.g. land and buildings, plant and
machinery.

53
 C. Working Assets acquired for conversion into goods or
Capital cash within the normal operating cycle. In
particular, the cash needs to be invested in
stock to store and in a buffer stock of finished
products.

Two other items within working capital : business does not settle
its transactions immediately and in case: Survey reveals that business
takes some 60 days before settling its bills for purchase of goods and
materials. During this period the suppliers of materials are ‘Creditors’ of
the Company. Similarly company usually pays wages and salaries in
arrears. The workforce is also a creditors. Creditors provide finance for
the company in same way as loans, grants, shares.

As company takes credit from suppliers for goods and services,

company have to give credit to the customers. The amount outstanding
from these customers is categorised as DEBTORS.

In case of seasonal shortage, each company makes use of short

term borrowing facilities :over draft.

D. Balance Balance sheet represents a snap shot view of

Sheet the Company’s financial position at one
particular date. It shows on the one side the
cash raised and kept in the business and the
capital employed and on the other side the uses
to which cash (or capital employed) has been
put.

E. Profit & Whereas the balance sheet shows the financial

Loss position, the Profit and Loss A/c reflects
Account financial performance in a specified period.
Profit and Loss a/c for an individual pit
represents the value of production less than the
cost associated with the production. Profit and
Loss a/c does not show :

(i) Who controls different items of cost

(ii) grants and interests
(iii) Colliery contribution (net proceeds less
costs excluding Area & HQ overheads)
(iv) cost behaviour.

54
 F. Cash Flow It is important to realise that profit does not
represent cash generated. Net proceeds may
contain credit or coal produced but not sold.
Even if all coal produced and net proceeds are
entirely made up of sales revenue, profit still
does not equal cash generated .

G. Deprecia- An example of depreciation is shown here. It

tion may be noted that although an amount of
Rs.1,00,000 is charged as a cost in the P&L
Accounts in years 1-8. The cash (Rs.8,00,000)
flows out of the business when the machinery is
actually purchased at the start of year 1. The
amounts of Rs.1,00,000 p.a. represent notional
charges not cash transactions. Hence, to move
from profit or loss to cash, depreciation charges
must be excluded. An equation may be derived.

Profit or (Loss) + depreciation = Cash generated.

Assets and Liabilities

1. Fixed Assets (in Rupees)

Property
Mines and Surface works
Plants and Machinery
Assets in course of construction
Investment in collieries/subsidiaries
Deferred interests.

2. Working capital (in Rupees)

Stock of products
Stock of stores
Debtors
Cash
Creditors

55
3. Less
Deferred Liabilities Rs.

4. Reserves

BUSINESS OPERATING CYCLE

CASH/BANK

MATERIALS

RECEIVABLE

WORK IN PROGRESS

PRODUCT

Every enterprise, public or private, large or small, profit earning or

loss-making, is a financial concern. It’s success depends to a large extent
on the quality of its financial decision. For appropriate financial decision
‘Accounting’ is a must. Accounting is an information system and acts as
a business language.

Accounting Methods

Transaction Supported By Document (Voucher)

Recording of Transaction (book of accounts)

Classification Under Different Heads (ledger accounts)

Summerisation (Trial Balance)

Presentation of Final Account (P&L Account & Balance Sheet)

Auditing of Account Books (Audited P&L Account & Balance Sheet

56
Financial Accounting

It mainly relates to recording and processing of financial data

affecting the business unit Balance Sheet and P & L account are the end
results of financial accounting.

Cost Accounting

In order to control cost and to assess profitability and efficiency of

the unit, the cost of the product or service are ascertained.

Auditing

Accounts are required to be audited by auditors to examine the

accuracy of accounting books and records.

Capital & Revenue Items

Capital items are non-recurring in nature. Revenue items are

recurring in nature. Expenditure incurred for acquisition of fixed assets
is capital expenditure. Payment made for acquiring fixed asset is capital
payment.

Expenditure incurred for purchase of raw materials and stock of

finished goods is a revenue expenditure. Expenditure incurred for
production, administration or marketing is a revenue expenditure.

Elements of cost and cost sheet

• Material accounts for a significant part of the total cost and therefore
it is essential to have proper material costing system to control cost.

• Labour is the second element of cost. Payments made to the

employees are to be accounted for to ascertain labour cost.

• Overhead costs are those costs which are indirect cost and cannot be
identified easily.

57
 Cost Sheet is simply a means to ascertain cost of production or
cost of sales by adding the different elements of cost in an orderly
fashion.

In today’s fast changing economic environment, competitiveness in

terms of cost and productivity is the key to success for any productive
unit. A smart financial approach for managing finance and cost for the
best advance of the unit is, therefore, essential.

***

58
 10

MATERIALS MANAGEMENT

M aterials Management is the process of purchasing materials

and service for the unit where they are economically useful.
Materials Management include the entire range of functions which effect
the planning & programming purchasing, flow, conservation, utilisation,
quality and cost of materials.

There has been considerable misconception about material

management. Some confuse it with inventory control, some other confuse
it with purchasing of materials, and some consider it as store keeping.

Objectives of Material Management

1. To maintain production and operation by ensuring flow of materials.

2. To reduce materials cost.
3. To reduce recurring expenditure.

In summarising briefly the activity of Material Management, it is

the procurement of materials of -

right quality
right quantity
right price
right source
right delivery

with protection against unforeseen failures of supply and

protection against increase in demand during hard time.

The purchasing function may be centralised or decentralised. The

major advantage of centralisations are -

a) Duplication of efforts are minimised.

b) Consolidation of orders benefits in qualtity discounts.

59
c) Effective control on inventory
d) Line Manager can get support from Material Managers.
e) Record keeping is reduced.

Inspite of advantages, it is not always possible to adopt centralised

purchase system.

Decisions regarding quality, quantity, urgency and essentiality of

materials are decided by the Managers who uses -

1) Standard regarding quality & quantity are laid down generally by

the planner.

2) Urgency is demanded by Production Manager.

3) Essentiality is demanded by the Technical experts.

The Manager has to ensure that for improved production, urgent

materials ensuring quality are made available at right time. It is,
therefore, essential to ensure that -

i) authorised materials are procured.

ii) proper inventory control is maintained.
iii) receipt, inspection and identification of materials are carried
out.

***

60
 11

SAFETY MANAGEMENT

T he new outlook towards various matters concerning safety,

favours a special safety consciousness which reaches right
down to the roots of the cause of the injury.

A properly organised safety scheme whether at Company level or

colliery level, should do much to bring the safety department and its
purpose into better co-operation and good faith with management and
workmen and would stimulate all officials and workmen at least to pull
their weight towards a common end.

Coal mining with its eventful tradition has attained distinction in

the history of industrialisation of our country. With the course of time,
coal mining has undergone changes in approach, purpose, methodology
as well as in its objective. With the changing technology, culture and
outlook, specially after nationalisation, the objective has also been
shifted. This remarkable change confers lot of responsibilities and
warrant commitment and involvement of all associated to this industry.
Now coal mining industry, a prime source of energy is engaged for
economic prosperity and growth of the nation. The success of this
industry largely depends on collective and joint effort of all who serve.

It is a challenge of the day to restrict the incidence of accident. In

order to limit the rate of accident a great deal of research will be
necessary.

After nationalisation, mines have come under one umbrella and

taken a shape of largest organisation in the country and a coal family
has emerged. The joint responsibility of both management and workers
are of great importance in dealing with the safety matter and accident
aspects in the coal mining. Both side has to develop culture of working
with close co-ordination, understanding with clear conception and
sincere intention to tackle the adverses. To recognise the following
aspects will seem to be of importance.

(i) Regard to human life.

(ii) Invisible cost of accident
(iii) Safety policy in clear term.

61
 (iv) Responsibility of the management
(v) Responsibility of the workers’ representative.

Protection of health and life in the mine is necessary and there

should be concern to implement safety measures.

The employers’ liability is the direct cost. There will be also

indirect or hidden costs to the company, which are incurred as a result
of an accident. Those costs include safety administration, medical
services, lost time of injured employees, lost time of other employees,
replacement labour, welfare and other payments to injured employees,
loss of production, repair of damaged plant, replacement of damaged
materials. Once the cost of accidents have been evaluated, the
recognised budgetory system can be implemented. The charges to be
made against the departmental Managers budget can then be calculated
and allocated on monthly basis. This will enable him to plan any action
necessary to maintain the level of safety within his mine.

Any deficiencies would be highlighted in cost terms rather than

frequency rate which may be increasingly questioned by Management as
measure of safety. (Perhaps the addition of economic accountability will
help to minimise the losses resulting from accident).

The responsibility of the Management

It is necessary to have clear policies guideline for safety

Testing the safety policy - a guide -

A. The policy statement

(i) Does it give a clear unequivocal commitment to safety ?

(ii) Is it authoritative ? Has it been agreed to by the Company ?
(iii) Has it been agreed by the trade union representatives ?
(iv) Are there effective arrangements to draw the attention of
employees ?

62
B. The organisation of safety

(i) Is the delegation of duties local and successive throughout

the organisation ?
(ii) Is the safety performance of Managers an ingredient of their
annual review ?
(iii) Are key functional Managers identified -
(a) Safety Manager (b) Training Manager

Are their duties clearly understood ?

C. Training

(i) Is there system for identification of Training needs ?

(ii) Does training cover all levels from senior Manager to new
entrants ?
(iii) Are refreshers courses arranged ?

D. Safe system of work

(i) Are those tasks for which a system is required to be

identified ?
(ii) Are those system properly monitored?

E. Emergency procedures

(i) Are the areas of major hazards identified and assessed by

experienced and qualified staff ?
(ii) Are there adequate first-aid arrangements ?
(iii) What arrangement are there for fire fighting ?

F. Monitoring

(i) Are there adequate staff for monitoring ? Is it understood

that monitoring will be carried out ?
(ii) Are all the causes investigated ?

63
 (iii) Organise to meet those objectives ?
(iv) Make effective arrangement to deal with risk ?
(v) Monitor the effectiveness of the organisation and
arrangement ?

The Company will recognise-

(a) The need to provide for all employees working surroundings

which are as healthy and safe and reasonably practicable.

(b) Their responsibility for creating and maintaining such

conditions.

Their objective is continually to reduce hazards to health and

safety in all activities under their control.

The company will expect from workers representatives:

(c) Total involvement of all employees in working towards this

objective.

(d) Management to aim to achieve the standards set by the

company and to provide the resources and services
necessary to achieve them.

(e) Employees to have constant regard for these standards and

comply with them at all times.

Responsibility of Trade Unions

For implementing safety policies and extending co-operations in all

matter with regard to reduction in accident rates, the functioning trade
unions can play a vital role. Better knowledge of accident and its causes
demand training of the employees.

(i) Trade union representatives have to co-ordinate with the

Management such training programme of the employees to
make workers conscious about safe working practices.

(ii) Joint participation Council, safety may be given priority and

discuss the possible system to be introduced for eliminating
chances of accident.

64
 (iii) Responsibility in preparing workers Inspector to work
effectively.

(iv) Trade union and Management of each mine may draw a

Safety guideline for both surface and underground
workers considering the technology introduced in the mine
and the risk involved in the operation.

(v) Trade union has a role to look after injured workers family
while they are out of employment.

(vi) To uplift the morale of fellow workers trade unions will have
to play a major role that the industrial relation is not
allowed to be deteriorated in case any accident takes place.

In fact, to promote safety consciousness, adoption of safety

measures and attempt to reduce accidents, are the joint responsibility
and with the co-operation of both the parties-Management and Trade
Unions, a zero accident potential will be possible to achieve and
productivity rate of the mine will be maximised.

Those who have had to perform the most odd duty of telling a
woman that her husband has been killed in the pit; know something of
the resultant grief to the family. The tremendous effect upon the family
at the loss of the Bread winner is enormous.

Accident means a tragic incidence followed with mental and

physical grief to a person and his family. Loss of life, the price of injury,
cannot be counted in terms of money. Some items could be achieved,
replaced, such as machinery, loss of production, its cost can be
calculated. But loss of a Father, Brother or Son to a family could not be
compensated.

The accident rate is reflection of conditions in the mine either

natural, man-made, or combination of both.

It is not an under-statement to say that Safety and production go

hand-in-hand. At a mine, where accidents are prevalent, the OMS and
total output set for, will suffer proportionately.

65
 As production has been increasing, output per man-year has also
increased considerably. High standard of equipment, watchful
management and efficient safety department can contribute eliminating
risks of accidents, provided, all men connected to underground work, are
suitably trained and made conscious of safety need. What will be
necessary to prevent injuries in mines are :

(a) A strong department with adequate status;

(b) A suitable training plan;

(c) Safety campaign to reach grass root level.

All who are working in mines and associated to coal mines want to
see that -

• Mine works safely.

• Having steady production network
• Human safety insured
• Constant watch on safety items
• Contended workmen return home happily after work

This entrusts heavy responsibility on those who manage offices in

mines. To achieve all these, while production planning seems must,
enforcement of safety items will be also equally necessary.

A check list of safety matters must be available in a mine, which

should be monitored by Safety Department of a mine. Safety Department
should be allowed scope to use its ability to aid the colliery Manager. The
aim of this department is to assist officials in achieving higher
production without any injury or casualty to anyone. To do this, the
Safety Dept. must have trusted, unfettered scope. The Department
cannot function if strangled by routine or procedures and should be
consulted at every planning stage of projects to ensure all factors.
Installing safety appliances, dust suppression equipments as well as
special training of operations etc. after the project has started, can never
hope to be successful.

66
 Safety Departments’ duty must be injury prevention on its widest
sense and to ensure that the Act, Regulations and good practices at all
times carried out with the right spirit and intention.

The Safety Branch has, uptill now, not enjoyed the best of
treatment and the mine Safety Officer does not have the status to which
he is entitled. The Safety Officers’ work is strenuous and exciting. His
responsibilities cover every shift on everyday and relate to every part of
mine. The Safety Officer must be a man in whom management and trade
unions and workmen have every confidence. A successful Safety Officer
should be promoted and given responsibility to work as Mine Manager.
In other way, no one should be a Mine Manager unless he serves
successfully as Safety Officer and whose position should be No. 2 in the
Mine as Deputy Manager.

In view of the new outlook to work, various matters concerning the

Safety Department, it is favoured that a Special Safety campaign
provided which reaches right down to the cause of injury where an
atmosphere of goodwill prevails and there is genuine desire for co-
operation to reduce injuries, promote safety and further the welfare of all
concerned, success will be achieved. A Joint Committee of
representatives of Management and workmen is a suitable medium of
machinery for giving effect to the desire. It will provide a channel through
which the interest and enthusiasm can reach all ranks. At a regular
interval, the committee should discuss cause of injuries from accidents
and consider suggestions to prevent their recurrence.

The importance must be emphasised of the necessity for the

closest co-operation between management and trade unions. Their
interest is basically the same that is of giving greatest possible protection
to employees and if the maximum success in providing safe and healthier
conditions is to be achieved, then there must be joint endeavour.

The following steps may be taken to accelerate Safety campaign:-

(i) To promote thought and discussion about safety amongst

the workers.

(ii) To help to formulate good communication so that the above

is possible.

(iii) To try and enlist the Specialists knowledge and experiences.

67
 (iv) To give publicity to the campaign through industry’s
own Newspapers.

(v) Mobile safety exhibition to be organised.

(vi) Safety competitions/trophy, award for best suggestions,

safe worker, persons’ contribution for safety matters, etc.

(vii) To have booklets prepared by Safety and mechanisation

branches and issued to all men employed on mechanised
face indicating special risks as well as safe practices.

(viii) Safety Exhibition may be designed by the HQ Safety

Department which may visit each Area in turn to be shown
at one or more suitable centre and this should be visited by
as many as mine workmen and officials as possible. The
Area may be free to add to the exhibition materials of
particular local interest of importance.

(ix) Special Safety Film of 5/6 minutes duration, may be shown

in colliery Canteen.

(x) To avoid campaign lowing down or fizzling out, the

campaign must be in no sense be allowed to appear as
“Nine Days Wonder” arousing merely temporary interest.

Safety is a constant challenge, demanding unremitting vigilance on

the part of all concerned. The campaign should, therefore, aim to
stimulate the workman’s interest in his own and his collegues safety, to
focus attention where necessary, intensify existing safety activities and
procedures and to promote a continuing interest in the need to reduce
accident.

It should be made certain that with the efforts to increase

productivity, safety standards are not allowed to slip. Mines are worked
for production, but in any case, it must never become production at any
price.

***

68
 12

DISASTER MANAGEMENT

A CCIDENT claiming human life is always a sad affair. It not

only upsets the members of ill fated family, but also adds
miseries for the future days to come. Since there is no chance of
preparation in advance to face such odd eventualities, the helpless
members, after accident, have to live for the rest of the period with
memories of the victims.

Even though accident is an undesirable event, it does take place,

now and then, here and there in some corner of the country. Accident
occurring on road, in industry is a regular feature. But when such
accident claims large number of human lives, it turns to disaster.

Disaster is dreadful and devasting. It creates a situation of

dejection, distrust and frustration amongst those who suffer.
Circumstances of disaster may be different due to accident taking place
on road, industry, railway or due to plane crash, yet the effects are same.
However, management and handling of social and economical problems
in all such cases, though difficult may not be that tough as it happens in
case of disaster arising out of operation in industry or mine. The victims
of road accident may or may not be known to the people who assemble
near the spot and in absence of attachment with the victims, the
inquisitive people show resentment and indisciplined behaviour.
Generally no one remains to receive blames from the crowd on the spot
and hence they disperse after a shortwhile.

Railway accident which turns in to disaster creates a different

situation. Passengers are not known to each other and have different
destinations. In case of disaster, passengers who survive, try to escape
and seek quick relief. The relatives of the victims are generally away
from the spot and the people available from nearby, normally extend help
to rescue team, instead of becoming hostile.

Identical position does arise in case of plane crash or drowning of

steamer. Therefore, rescue operation in all such cases though difficult
but not complicated.

69
 Mine disaster takes altogether a different shape. It has a
prolonged effect over hundreds of people located nearby in the place of
occurrence. Generally mines are situated in remote corner, surrounded
by workers’ colony and cluster of villages at a distance. Due to close
association, employees are intimately known to one another. They share
their sorrows and happiness during bad and good days. Any such
unfortunate occasion like a disaster disrupts the normalcy.

Let us imagine what happens immediately after the disaster in a

mine. Mishap triggers off shock waves in the surrounding areas of a
mine. Fear dawn on workers, numbed by the disaster. A pall of gloom
hangs low over the nearby area. Though mining operations continue
round the clock, at whatever hour the information of disaster, involving
life of a large number of workers comes out of the pit, apprehension
spreads like wild fire. It travels faster with distortion. Workers, relatives,
villagers in number, arrive at the spot and plead with the officials for
immediate safe recovery of the miners involved. Due to large number,
the crowd may go out of control and any sort of emotional outburst may
take place.

But situation at that hour demands :

• Rescue teams to arrive in shortest possible time.

• Technical experts to take charge of the mine to guide and handle

operations to save life and mine.

• Medical team to arrive to extend medical assistance.

• To have continuous electric and water supply in the mine.

• Effective communication system to establish contact with Rescue

organisation, law and order authorities, technical experts, Dept. of
Mines Officials and with underground districts.

Thus, in one hand a tense environment contrary to carry out

effective emergency work exists and on the other hand, quick and faster
actions are required for recovery of workers involved.

It is a challenging situation, difficult and tough to handle.

70
 In such disaster, boundary management is vital and of prime
importance. Unless some normalcy is restored, rescue team can’t enter
the spot, medical team can’t arrive and technical emergency work may
get delayed.

Disaster Management with regard to social, economical aspects is

therefore, appears very essential and important. It is also essential and
important to have such leaders and team of dedicated personnel who
continuously, from the time of occurrence, will effectively carry out
functions and attempt to provide normal environment.

The task may be identified as under :

Internal Tasks

(a) Communication to rescue organisation, law and order

authorities, technical experts, Dept. of Mines and medical
team.

(b) To organise the security personnel to guard the spot of

occurrence and entrance of the mines, if any.

(c) To form teams to take charge of Control Room, Information

Centre and co-ordinate rescue and technical operation.

The teams to formed to handle social and economical aspects will

have following

Tasks at the 1st phase

(i) To contact Trade Unions and get their representatives at the

spot.

(ii) To enforce security and to get police personnel to man

various strategic points, in order to prevent any ugly
situation to happen.

(iii) To get Ambulance, as many as possible with the Medical

Team.

(iv) To get the workers lists prepared jointly with the Union
Representatives and to announce the names for information

71
 of the co-workers and relatives.

(v) To inform local public representatives the position and

detail available about the disaster.

(vi) To intercept wild and wrong information and to ventilate

news through sensitive loyal employees about the correct
position of mine and workers involved.

(vii) To appeal for co-operation and to engage various groups

from amongst the employees, to start round the clock
telephone system/section, canteen, survey section, stores,
laboratory and office for any other support.

Thus, to get more and more people involved in the process quickly
in order to counter the force bent upon dislocating operation.

Tasks in the 2nd phase

The team will ensure that :

1. Telephone system is effective and all corners can be

contacted.

2. To establish contact with the relatives of the victims, and to

explain them that all care will be taken.

3. To organise groups to carry the injured workers and in case

of death of employees to carry the dead bodies to Hospital.

4. Opening of Emergency Ward in nearby Central Hospitals

which is equipped to meet up such situations and can
extend all possible medical attention

5. To open canteen and arrangement for food and drinking

water for all those who will be engaged in various
operational and rescue job.

6. To vacate nearby buildings and to arrange beds for rest

purpose of emergency personnel who will have to stay
round the clock.

72
 7. To safeguard the residence and family members of
executives who are always in the workplace.

Tasks in the 3rd phase

To make Trade union Representatives available when injured

persons are to be brought out. In case of recovery of dead bodies, more
precautions need to be taken at the pit top so that workers and crowd
assembled are not emotionally surcharged.

Nearby Central Hospitals are to be alerted to extend medical

assistance before carrying the injured persons from the pit top.

Govt. help to be taken to bring the post mortem team in the

Hospital so that when dead bodies are taken to hospitals, post mortem
part is undertaken without delay.

It will be necessary to set up temporary offices in the Central

Hospital for -

(i) receiving the injured persons or the dead bodies;

(ii) to see the requirement for medical treatment of

injured persons;

(iii) post mortem of the dead workers and after post

mortem handing over dead bodies to relatives;

(iv) for identification of dead body, help of union

personnel, welfare officer and cap lamp no. to be
taken.

At this stage, it is necessary to establish an office with the Police

and Magistrate for issuing various certificates for the purpose of carrying
dead bodies to distant places.

Few other offices are to be opened at Hospitals:

Office-1 : Will receive the relatives and keep them in a waiting

place. A team of officers including lady officers should be available to
look after the relatives, specially the female members. Those who have to
perform the duty of telling a woman that her husband has been killed in
the pit know something of the resultant grief which rises to almost

73
dementia. Hence, a team with human approach should look after the
relatives at hospital. Arrangements for their fooding while they are
waiting at the hospital, are to be done.

Office-2 : Will look after the allotment of vehicles for carrying the
dead bodies, issue of death certificate, certificate from the police and
magistrate for transporting the dead bodies to inter-state, arrangement
for ice, wooden boxes for the dead bodies.

Office-3 : Will arrange for immediate cash payment in presence of

the representative of the Trade Unions so that after due identification,
payment is made to the right persons for carrying out cremation and to
meet up incidental expenditures.

These arrangements will establish a credibility before the relatives

and concern of the management will be reflected.

Establishment of Control Room

This will remain open round the clock to monitor:

• Rescue operations.

• Make contacts wherever essential for the purpose of

recovery operations.

• To arrange adequate copies of mine plans for rescue

teams.

• To maintain uptodate information.

• To maintain duty roster.

Establishment of information Centre

This centre may be opened in a convenient place where from

employees, their relatives get all information about the victims or injured
persons.

74
Tasks in the 4th phase

The Personnel Dept. will contact the family members in the colliery
quarters and will send telegram to their relatives at house addresses for
information about the injury or loss of life of employees whose family
stay away.

The team so formed will visit the quarters of victims -

• To arrange their ration

• To extend medical help, if required

• To give the grief struck family members mental and

financial support so that their helplessness can be
reduced to some extent.

Opening of special Office to deal Economic aspects

• To make arrangements for payment of due wages,

leave wages, PF,Gratuity, payment under life cover
scheme, Workmens’ Compensation, etc.

• To contact PF Commissioner to open their office at

colliery on temporary basis.

• To request Compensation Commissioner to establish

office at the colliery to make payment of compensation
to the nominees.

• LIC official may also be approached for similar

purpose.

All these actions will raise confidence amongst the relatives of the
victims.

It is also essential that the members of the family to be explained

as to how best they can save their money in Bank or Govt. Institutions

75
after they receive a considerable amount from the company as
compensation package.

It is important that while handling socio-economic problems, due

care has to be given with sincere concern for the family members whose
bread winner will never return.

Tasks in the 5th phase

It is essential that immediately after the occurrence, frequent

meeting with the Trade Union representatives need to be carried out to
inform the latest position of mine and rescue operations. They are also
required to be consulted before initiating all future steps.

Their participation will be added strength for the managerial team.

The union representatives have greater control on workers and

without their active support nothing can be really achieved. Hence they
must be treated as important part of the disaster management team.

The correct position of mine has to be unfolded before the union

representatives so that credibility is earned which goes long way during
such crisis.

Handling of Press is an important task. The Press and media have

responsibility to highlight the real position before the countrymen.
Morning and evening meeting with the Press personnel will seem
essential when all their queries may be replied clearly.

During such occasion, important persons and VIPs visit the spot.

To manage their visit smoothly is an important function.

The objective of Disaster Management is to bring normalcy faster

for initiating recovery work of employees and to save the mine as early as
possible.This can only be achieved if the team leaders are sincere to their
approach, have courage to face any eventuality and above all have
respect for human feelings and sentiments.

Mine disaster is an unwanted affair. With the modern and advance

technique, by implementation of safety rules and with determination
efforts have to be made so that chances of such occurrence are

76
eliminated. The human lives are precious and their loss while at work is
painful.

The members who will have to associate in managing social and

economical aspects in case of such happenings, have to generate a sense
of missionary zeal to get the sufferers out of the situation of helplessness.

***

77
 13

PROJECT MANAGEMENT

P roject Management process has the following series of steps:

SET GOALS - PLANS - SCHEDULE - ALLOCATION OF

RESOURCES - ORGANISE - CONTROL

In Project Management, main thrust lies on control. Control is the

process of reducing the deviation between planned performance and
actual performance in a time frame. The three factors - time, budget and
performance form the basis of project control.

Factors affecting

• TIME - Supply Delay - Time consuming - Missed

milestone.

• COST - Inflation - High labour cost - Poor timing of

cash flow.

• PERFORMANCE - Poor design - Poor quality -

conflicting objective - poor functioning - employee’s
morale - complicated technology.

Control can be achieved through tracking, measurement and

evaluation.

Steps for control

• Specify - the specific aspects are to be measured.

• Set standard of Performance - keeping in view industry

practice - work analysis.

• To measure actual performance - measurement scale to

be determined.

78
 • Comparison - between the actual and standard
performance.

• To identify - variances and sources of performance.

• To determine appropriate action - so that poor

performance are rectified and does not recur further.
The variances observed are overcome.

Monitoring of Projects

The Project Progress Reports will mainly include:

• Material supply schedule

• Cash supply schedule and cost performance plots

(Planned vs. Actual)

• Work done schedule and time performance plots

(Planned vs. Actual)

Prevailing level of communication, co-operation and co-ordination

decides the quantum of success of Project Management. When these are
tied in logical manner, the results achieved measures close to planned
schedule of the project.

***

79
 14

OPERATIVE PLAN FOR PROJECT

IMPLEMENTATION

F OR the purpose of steady and faster economic growth, plans for

development in all fronts including industrial units appear to
be important. In deciding priority concentration on viable scheme with
concrete plan of action will be essential. Coal, the prime energy source
will be dominating industrial front for a few decades to come, and
therefore, attaching importance to new Coal Projects will gain priority.

New Projects, especially in Coal sector is directly dependant on the

prime parametre-land. Land of various size is required for coal extraction
either from underground, incline or opencast. With the acquisition of
land for coal projects through various laws, people associated with the
land become affected and may cause shifting of settled people. For
economic growth and in the interest of nation while new Coal Projects are
essential, land acquisition and consequent effect disrupts the traditional,
social system and source of livelihood of the people associated to such
land. Displacement of people involuntarily may give rise to severe social,
economic and environmental problem because :-

(a) In the relocated environment, productive skill of the

people may be less applicable.

(b) Productive assets and sources of income are lost.

(c) Social structures may get disrupted.

(d) Cultural identity may diminish.

Effect on People and Need for Rehabilitation Plan

Since settled persons are generally displaced with the acquisition

of their land for coal projects of different sizes, they lose their earnings
from the produce of the land.

80
 (i) The land that is acquired for the purposes of project by
CIL is for the national interest and the displacement of
persons is involuntary. Often for the purpose of
implementation of project jobs, eviction are faced by
the affected persons.

(ii) Due to industrialisation, the age old rural environment

gets often transformed to semi-urban environment
within a short spell of time and usually follows with
rise in cost of living. The traditional sources of income
is likely to be reduced and in most of the cases, the
persons affected, face difficulty to cope with the new
situation.

(iii) Land acquisition and consequent displacement

disrupts the traditional social system and source of
livelihood.

(iv) Due to change in the pattern of land substantially the

agro-based rural economy and lifestyle of people
changes. Many a time they do not find easily the
alternative source of income.

(v) Only proper resettlement and rehabilitation of the

displaced persons can remove discontentment which in
fact help to derive co-operation from the people
affected.

The objective of the Rehabilitation Plan is to resettle the affected

persons and also to ensure measures for restoration of their income.

Change of Rehabilitation Plan

The rehabilitation plan will cover -

• Objectives

• Detailed plan of the land

• Socio-economic survey

• Community participation

81
 • Mechanism to select alternative sites, evaluating losers
and allocation of compensation.

• Plan and programme for resettlement and

rehabilitation.

• Estimated cost of resettlement and rehabilitation and

financial plan.

• Organisation to deal and undertake such

responsibility.

• Time schedule for implementation of rehabilitation

plan.

• Monitoring and evaluation.

• Legal instruments and regulation.

The rehabilitation plan and resettlement package may differ from

project to project and from state to state. But in all cases, compensation
for the land lost and other losses are payable as per market value of the
asset. Regarding restoration of income, the objective is to generate scope
of employment in the project and to create various avenues for self-
employment.

Rehabilitation of project affected person involves two distinct

aspects;

(i) Compensation for losses in terms of land, cash and other

forms should be provided to the head of the house hold, his
adult son and daughter.

(ii) For restoration of income, the plan lies in starting a new life
in terms of opportunities, training, credit and community
services for schooling and health and new employment
opportunities for project affected people.

Unless the human problems are resolved in time with honest and
sincere approach, Project implementation will be a tough task. It is,
therefore, essential to identify factors responsible for unusual delay in
implementing project activity.

82
Problems and Effect during Project Implementation:

Various problems that crop up during implementation of project

activities are -

(i) Concentration on project preparation tends to leave gap

for detail planning of land acquisition. This leads to

(a) delay in acquisition of proposed land

(b) complications in getting physical possession of
land.

(jj) Land acquisition through various laws takes time. This

factor not only contributes in time over run but also
subsequent escalation in the cost structure.

(iii) Due to delay in the land acquisition process and

procedure, people become reluctant to accept the terms
offered through State Land Machinery.

(iv) In absence of systematic and regular consultation

people do not participate in discussions and their
involvement is less. People do not respond positively
when acceptable alternatives are offered.

People learn about project from sources other than project

authorities, thus misgivings and wrong interpretation on offers create
biasness.

The shortcomings and effect may be classified.

Problems and short comings Effect

(i) In preparation of project (i) a. Delay in acquisition of

report, proper planning of land.
land acquisition remains b. Complications arise in
absent. getting physical possession
of land

83
(ii) The land Acquisition Act, (ii) In general, powers of district
1894, is the main collectors in LA are conferred
legislation governing the on land Acquisition officer
acquisition of private land who belongs to state..
for public purposes and
for companies.

Property is part of the

concurrent list of the
Indian Constitution. This
central Act has several
state amendments.

(iii) The land acquisition (iii) When the quantum of land is

process under LA Act is more such procedure
long drawn and the complicates and claim
district collector decides counter claims come forward.
about the amount of
compensation taking into
account claims and other
evidences.

(iv) Land Acquisition under (iv) Due to resistance for physical

the Coal Bearing possession of land, friction
Areas(Acquisition and between the Industry/Centre
development) Act is and State Government may
advantageous. The occur.
District Administration is
only involved in obtaining
copies of land record and
company has to rely on
the help of District
Administration in the
process of land
acquisition

84
(v) In CBA Act, land (v) People generally do not like
ownership is transferred acquisition of land under CBA
to the Govt. after the Act.
declaration of land
acquisition has been
issued without stipulation
that compensation should
be paid before taking over
the land.

(vi) The acquisition process is (vi) Stiff resistance grows with the
carried out by the land apprehension of long term
acquisition department hardship.
and people get various
information about
proposed project from
third agencies.

(vii) Absence of systematic (vii) People generally do not

consultation with the land respond positively.
associated people from
the initial stage

(viii) No selection of group (viii) Outsiders with various

leader or representative of interests try to gain ground by
people to be affected at raising issues and bring
appropriate time. political bias for their short
term gain.

(ix) Chances of subsidance, (ix) Local habitants feel

fire over underground, threatened and uncongenial
surface, incline mining atmosphere persists.
working and noise, dust
pollution from Opencast
working.

(x) Absence of scheme for (x) People anticipate environ-

protecting environment in mental and land degradation,
the mine areas presents unsatisfactory image

85
 for the industry.

(xi) Absence of proper (xi) Various agencies create

resettlement policy barrier and normal situation
gets disturbed.

(xii) Absence of proper socio- (xii) The project cannot identify

economic survey of the the categories of people
local people associated to affected, and their details for
land the purpose of calculating
compensation and other
benefits.

(xiii) Inadequate administra- (xiii) Creates vaccum and handling

tive arrangements of land matters become
difficult.

(xiv) Lack of training of (xiv) Implementation of resett-

officials dealing with lement plan become difficult
project affected people. and the objective of the
project to “grow with the
neighbours” does not gain
ground.

Classification of Persons Affected

Project affected persons may be classified under the following

headings :-

(i) a. Persons whose entire land is acquired

b. Total agricultural land
c. Some part is cultivable.
(ii) A persons owning land which is not economically viable
after acquisition.
(iii) A persons whose homestead land is acquired
(iv) A person whose homestead land and household is acquired.

86
 (v) A person who is in actual possession of land as tenant, tiller
and which is acquired.
(vi) A tribal owning the land or deriving livelihood from the
land.
(vii) A person having leased ownership and land is acquired.
(viii) A person having occupation ownership and land is
acquired.
(ix) Properties vested with trustee and such land is acquired.
(x) A landless person cultivating Govt. land which is acquired.
(xi) Joint holding of family members and land is acquired.
(xii) A person having land but staying outside which is acquired.

Classification of land

(a) Cultivable

i. Irrigated-two crops/three crops producing land

ii. Non-irrigated one/two crops producing land
iii. Barren land
iv. Vested land
v. Forest land
vi. Pond
vii. Homstead land

Acquisition of land generally to be done through Land Acquisition

Act, through Coal Bearing Act, Chhotanagpur Tenancy Act, keeping in
view various provision of Law in practice at different locality.

Action Strategy

It is necessary that the course of action be decided for successful

completion of project activities keeping in view the human problems
associated to land acquisition.

87
 Actions may be classified as under:-

(i) With the selection of projects and identification of area of

operation for coal extraction, requirement of land and its
sizes to be determined.

(ii) To determine priority-wise phase wise, land acquisition with

the time schedule. Blueprint of land scheduling need to be
prepared where possible with readjustment, alternative
planning may be done for minimum displacement of people.

(iii) Government land department to be intimated for processing

acquisition as per schedule.

(iv) Project in-charge may form action oriented informal

managerial team for co-ordinating the following activities:-

(a) To establish contact with the people associated to land.

(b) To identify ‘carrier’ from the local inhabitants, to

highlight project matters and objectives.

(c) To select appropriate “Co-ordinators” who understand

the villagers, their language and have fair idea of socio
economic position of the localities. The co-ordinator will
be selected from the industry and will work through
“carriers”.

(d) Identification of leaders and representatives of various

groups and people from different social strata.

In order to develop a sense of trust and goodwill amongst the

people to be affected, Community work need to be undertaken by the
corporate officials. Simultaneously a group of officials having aptitude
for doing social work around the villages may have to function and
organise the following activities:-

• Organising polio camps in the surrounding villages.

• Developing child and mother care centres

88
• To initiate literacy drive
• To form an effective administrative group for settling
compensation issues.
• The social work group will implement self employment scheme
for project affected people considering their background, age
and aptitude.

Dealing with various agencies

GR 1

Implementation of self
employment scheme.
Administrative group
for compensation

GR 6 GR 2

GR 5 Project Team Social Workers groups

GR 3
Monitoring Group

Group for socio

economic survey

GR 4

Informal group with-

(i) Village representative
(ii) Public representative
(iii) Representation of District

89
 It is important to strengthen the Project Team, preferably Area
office to guide the project team, in all matters as it will help:-

(i) To eliminate the tendency of taking up Project matters at

Company level.

(ii) The problems are localised and tackled at Project level.

However, Corporate level and Higher Levels are to delink from

negotiating and handling all resettlement matters at appropriate time
and thus allow Project Team to resolve local problems without giving
scope to turn such problems as national issue.

Team 1

Liaison with Project Team

Corporate Office
Team 4

Team for Fund

Arrangement Area Team Team 2

Follow up with
various Agencies

Team 3 Co-ordination with District

Officials for advancing Land
Acquisition process

• A group may be formed from the industry and localities to work as

enumerater.

90
• Socio economic survey will be necessary to ascertain number of
people to be resettled and will receive compensation.

• Every information group will carry out socio economic survey

involving village Chief, Mukhia or accepted group leader

• Associating Panchayat people and Block official for authentication of

records and information.

With the objective to restore the income of the project affected

persons, a specific survey to be made before the resettlement. This
would include the income-source and level of income of such persons.

SURVEY

The project design, including an analysis of alternative designs

aimed at avoiding or minimising resettlement.

In order to solve the problem of information loss and

misinformation comprehensive attempts to be made to check the
response of the respondent through secondary interview. This approach
is to establish the validity of the survey method and reliability of the
responses together.

FOR SOCIO ECONOMIC SURVEY

A. Name of the Head of the Family

Name of M/F Age Skill/ Daily Education

the Family Training Income

91
B. Landed Property

Land Block/ Irrigated Agriculture Yearly Type of

measure Area non- Non- yield ownership.
irrigated agricu-
lture land

C. Details of Live stock

Cattle No. Daily monthly earning if any

Goat

Pig

Chicken Birds

D. Details of household

Type of House
Plinth Areas
No. of Rooms
Area of homestead land
Area of Kitchen Garden
Trees
Ponds and Annual Yield

From the Socio economic survey the following position will emerge

• No. of persons will lose land of various types. Loss of earning

from land etc.
• No. of persons will lose home-stead household.

92
 • No. of persons will lose both cultivable land and homestead
land
• No. of people associated to land and are beneficiaries of the land
• No. of people who have no land/or homestead land but earn
livelihood from the village land.

On ascertaining the position it would be clear to identify:

Details of Landless People

Tribal From lower strata of social groups

Tenant Land Labour

This survey followed by an estimation for creation of jobs and

market potential. Thereafter, a specific rehabilitation plan to be drawn,
in term of restoration of income. The plan will contain the pattern of self
employment like Dairy, poultry, handicrafts, shops etc. The awards of
petty contracts are also included in the self employment programme.

SELF EMPLOYMENT SCHEMES

Schemes For Whom Training by.

1. Agriculture & Land less labour/ Mission, Institutions

scientific methods Tiller Non governmental
of cultimation organisation.

2. Reservoir aqua People having such State Organisation

culture aptitude

3. Development of Females having no District Forest Deptt.

green belt nursery landed property. Land and Environmental cell

93
 less labour. of the Company.

Trades

Carpentary, Masonary Young persons of the Craft Centre

age group of 16 and
above

Weaving/Operating Female of age group of

Hand loom/Cane 16 yrs and above
basket manufacturing

Cycle repairing/ Young boys those are Local Vocational

Watch/TV repairing/ drop out. Training Centre.
Scooter repairing

Brick/Coal briquet/ Persons having skills In plant training

manufacturing in clay making

Poultry, Dairy/Goatery Male, Female over 30 Block Office.

years

Conclusion

Rehabilitation and Resettlement Programme becomes succesful,

when “Just and Fair” approach is adopted and human aspects are given
priority with the objectives to ensure that the population displaced by a
Project receives benefit from it. All involuntary resettlement has to be
conceived and executed as development programme, with resettlers
provided sufficient investment resources and opportunities to share in
project benefits.

With action oriented team it will be possible to resolve the problem

of land acquisition and resettlement. The timely action with human
approach will assure a better community life for the affected people and
will generate sense of confidence for successful running of the Projects.

****

94
 15

COMMUNITY DEVELOPMENT

D evelopment in the community around the mine is essential.

Manager of mine has to give special attention to this aspect.
With the goodwill of the locality, things become easier in many front and
working environment is not dislocated.

• To keep constant touch with the neighbouring localities to make

them aware about certain development programmes.

• To extend possible assistance in developing educational

institutions.

• To arrange extra curricular activities for generating social

awareness by way of organising various health programmes.

• To utilise waste mine water for cultivation purpose in the

nearby land.

• To encourage in development of Green Belt in the waste land

around the mine.

By way of motivating, mobilising and involving more and more

people in planned social activities and utilising local resources, good will
may be earned.

Managers are to endeavour upliftment of social life and economical

condition of the people residing around the Mines operated by various
coal companies. The prospects and growth can be shared and positive
support of the people would forthcome for implementation of the welfare
schemes.

Community work in villages attached to mine area to be initiated

as regular activities by the Area. The jobs of protection of environment,
reclamation of land, land shaping and land scaping etc. are to be carried
out.

95
For Establishing Better Image of the Industry

Community development work to be initiated as regular feature by

Corporate office through Area.

• Diversion of Mine waste water for irrigation purpose

• Excavation of pond by involving villagers.

• Development of community Building-Library

• Development of village link road

• Opening of Health service unit in co-ordination with district

level Health Services Agencies.

• Family welfare scheme

• Organising free eye operation camp

• Supporting educational institution

• Installation of hand pump-Tubewell where needed

• Sinking of well

• Any such other jobs for the benefit of the Community

Schemes for Protection of Environment

• Protection against possible subsidence

• Suppression of dust and elimination of noise

• Developing green belt

• Blanketing of underground fire

• Cultivation of waste land

96
 Our community interest is the pit, the people who live by it, and
the Community which exists around it. From our common interest, we
hope to evolve common affections, and from our common affections, thus
created, if not common opinions atleast a greater identity of purpose and
closer unanimity of outlook will evolve.

“No man can act with effect who do not act in concert.
No man can act in concert, who do not act with confidence.
No man can act with confidence who are not bound together with
common opinion, common affection and common interest”
- Edmund Brooke.

***

97
 16

INDUSTRIAL RELATION

1. It is important in accelerated rate of progress

which is not being witnessed, that Management
and men should take one another into confidence
and go forward with a joint understanding of
what is to be undertaken.

2. Oppoturnities will seem wasted unless technical

development and Managerial reorganisation are
matched by a labour force eager and able to work
with them.

Industrial Relation

I NTERPRETATION of laws, wages and allowances, promotion,

placement, working condition disputes, legal matters are the
major aspects of Industrial Relation.

Matter related to Industrial Relation problem in coal mines should

have been fewer in number. With the implementation of Wage
Agreement and timely payment of wages and allowances, there remain
hardly any scope for adverse IR in the industry. Even the IR problems do
arise because of delay in implementation of agreement, dispute in
interpretation of wage part, legal matters, labour court cases,
disciplinary action.

Certain issues of Industrial Relation problems lead to sudden

strike and stoppage of work. These sort of actions, however, are
detrimental to industrial progress. A suitable Industrial Relation
machinery in the colliery may tackle such issue and with joint
consultation with various functioning unions, both formally and
informally, may ensure congenial Industrial Relation in the mine.
Desired response may not be available all the time but once the
employees are made to know the economic status of the mine, its
commitment and need to earn revenue to meet up various expenditure,
support and effort from workers side will be available.

98
 The principal aim of management is to conduct the business of the
undertaking successfully. Good industrial relations need to be developed
within the framework of an efficient organisation and they will in turn,
help Management to achieve this aim.

One of the Managements’ major objective should be, therefore, to

develop effective industrial relation policies which command the
confidence of the employees. Manager, at the highest level should give as
much attention to Industrial Relations as to such functions as
Production, Finance, Despatch, Engineering. Good industrial relations
are the joint responsibility of management and of employees and trade
unions representing them. But the primary responsibility for their
promotions rest with the Management. Colliery Managers, therefore,
have to take initiative in creating and developing them.

Managers should see that like them, junior officials including

Supervisors should receive training in the Industrial Relation
implications in their jobs.

Effective organisation of work is an important factor in good

industrial relation.

Manager should, therefore, ensure that -

(a) Responsibility for each group of employees is clearly defined in

the organisational structure

(b) Each under official understand his responsibility and has the
authority and training necessary to do his job.

The supervisor is in key position to influence industrial relations.

Managers should ensure that :

• Supervisor is properly selected and trained;

• Has a charge of group of workers to that size which he can

manage effectively.

• Is fully briefed about Management’s objectives.

99
 No Colliery Manager can hope to be successful completely unless
he has given much thought and study of Industrial Relations. It is a
wide subject but establishment of congenial Industrial Relation become
easier if the mine Manager develops attitude of free, fair and firmness.

It has become almost impossible for any Manager to know off hand
all the details of Labour Laws or Agreements. But he should make
himself acquainted with the main Acts, Laws and Agreements.

There are, of course, many facets of Industrial Relation and

improvement can be achieved if one concentrates on the following
aspects:

• Environment
• Implementation of Agreements
• Welfare activities for employees and their family
• Recognition of employees’ capacity and their ability.

In the widest sense, Industrial Relation do not confine only to

procedural matter such as collective agreements and negotiating
machinery. It is also concerned with human relations and, therefore,
with the policies which directly affect the individual employee in the
performance of his job, the effectiveness of Industrial Relation policies
depends on two main themes -

(a) The vital role of collective bargaining carried out in reasonable

and constructive manner between employees and
representatives of trade unions.

(b) The importance of good human relations between employer

and employees in every working unit based on trust and
confidence.

Management need to use its resources efficiently, while employees

look for sincerity in the employer, continuity in the earning and
satisfaction in their jobs. Both have common interest in the success of
the organisation because without which their aims will not be achieved.
But some conflicts of interest are bound to arise and, with good
Industrial Relation those can be resolved in constructive and responsible
way e.g.

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 (i) where appropriate, to maintain jointly with unions concerned
effective arrangements for settling disputes

(ii) to take all reasonable steps for use of agreed procedures and

(iii) to identify trend of Industrial Relation, collection and analysis

of information and remedial measures worked out.

For effective Industrial Relation measures required to be taken are

mainly Negotiation, Consultation, Collective Agreement, Decision
making.

Task for negotiation is an important part of the management

process. Demands are made by group and unions of employees. Many a
time, due to lack of proper attention, situations go adverse and Managers
find longer time to handle matter. Effective negotiation is an important
aspect.

Negotiation should be held with free mind and all sincerity. Any
type of over-cleverness has dislocated the process and the negotiator
loses his credibility.

It is necessary to

1. Create Environment
2. Bringing out the real demand and
3. To decide priority of demands.

Manager would be wise to study the art of negotiation - for this is

indeed an art. For negotiation purpose, a Manager should -

1. Maintain jointly with trade unions effective arrangement for

negotiation, consultation and communication for settling
grievances and disputes.

2. Before meeting workmen or union officials about any question

or points, a Manager should make sure that he has all the
correct information on the matter to be dealt with. The word
“correct” is emphasized because there is nothing more
disconcerting than to find in the middle of a discussion that he

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 has been urging on the basis of something which is not a fact.

3. As far as possible, the discussion should be kept to the point.

This will save time and often temper.

4. The Manager should never become personal to anyone during

the discussion and never allow anyone else to become
personal. This will save lot of ill-will and bad-feeling.

5. The Manager should make sure that all present understand

what he is saying. Use the simplest language and explain any
technical details in a way that will be understood by all.

6. If solution is reached, make certain that what has been agreed

is understood by everyone. This can prevent many misunder-
standing and the resulting trouble.

7. The Manager should try to see both sides of any question and
in making decisions try to hold balance evenly, thus being fair
for both the Company and the workmen concerned.

8. It will be found that the easy solution to an employee’s problem

is seldom the correct one and it is very wise to keep in mind
that these problems concern directly men and not machines.

9. Colliery Managers are faced today with many problems which

become more and more complex as time goes on. They cannot
hope to deal with all these themselves and if they are to do
their jobs efficiently, Managers must make full use of service
Departments.

Every worker in the mining industry has a stake in its well being.
Everyone has the right to say how he thinks the work of colliery can
improve. Management for better running of the colliery, may like to hear
the ideas, suggestions and constructive criticism. This can be done most
effectively through the machinery of consultation - when Management
and mine workers meet to discuss problems and policies, good ideas
continue to emerge. Consultation mobilises the collective common sense
of everyone and provide a means to put it to good use. Success in
consultation depends on the men and the method - on what sort of men
are in the joint consultative committee. Consultation is based on mutual
respect. The idea is not to impose one’s view points but to try to find a
common view and the right one, of course.

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 Those sitting in Consultative Committee, should work as a Team.

The range of possible topics for a colliery is very large. If too many
different subjects are raised at one meeting, there will be not enough
time to deal with them properly. The important thing is to make sure
that committee discuss that really matter at the pit. Such points should
be presented properly so that the meeting do not become a dull routine.

Consultation cannot succeed without full and accurate

information. Most disagreements arise because different people know
different parts of the facts about a subject.

There must be enough accurate information to spot weakness and

scope to consider how to put them right. However, information required
to be presented in time, so that committee members can digest and
concentrate on points. Good committees are always anxious to get the
view of specialist, who may be often invited to attend the meeting and
answer the questions.

Managers can solve many problems if in a colliery such

environment can be created where consultative committee work
effectively and meaningfully.

The co-operation and involvement of the employees required in

(i) maintaining output and productivity

(ii) improvement in underground productivity
(iii) coal face organisation
(iv) safety standard
(v) loading points, quality loading
(vi) manpower utilisation
(vii) welfare and
(viii) economics.

Consultation

Success in consultation depend on the men and method.

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 Consultation in the coal industry has been practised most
effectively through consultative committee and councils. Consultation
means jointly examining and discussing problems of concern to both
management and employees. It includes seeking mutually acceptable
solution through a genuine exchange of views and information.

Consultation is successful when this is based on mutual respect

between the participants from either forum of management and trade
union.

The discussion on a topic should be full, frank and free. It should

be so conducted that talk keeps to the subject under discussion.
Whether the topics are on production, productivity, accident accurate
information needed to spot the weaknesses and consider how to put
them right.

The area of conflict are to be sorted through consultation and in

the area of agreements, immediate steps to be taken. We must remember
that in our country we are to look after a large population, a certain
percentage of those are not having square meal a day. Therefore, those
are having means to earn through the industry, they should learn to take
total view of the economy, rather than a sectional view.

People

Trade unions in our country have a social responsibility to day. It

must be also understood that workers are the section of community and
no sectional interest should be such which may jeopardize the interest of
the community as a whole. Promotion of the workers must be upto that
level so as to harmonise with the larger interest of the community.

With some section of the management there has been an attitude

in terms of Master. There need to be change in such attitude and for
developing a favourable environment the management group has to take
initiative without any preconvinced ideas and conventional thinking.

Perhaps the most significant feature of our social and normal

philosophy is that we tend to define our basic human impurities mainly
in terms of right. We speak and think of human right, constitutional
right, political rights, trade union rights, labour rights. The whole
motivation of social behaviour clamour for rights, which we use to assert
as our due. The demand for rights act as fuel for the machine of our
ambition and at the present situation generate friction and discontent..

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 If we are to develop environment, for achieving the goal of the
industry, what is needed then is to reverse the work of restlessness and
frustration. If for instance, Management felt that the onus of improving
workmen lot rested more on management than labour demanding them,
and if the workmen sensed the urgency of deliberating on how better to
serve the industry by increased productivity and a greater pride in work,
possibly the industry may overcome economic crisis.

In a Public Sector, instead of ascertaining rights at the expenses of

others, one has to assert duties in own expenses.

In the past most of the organisation theory had expected individual

to conform to the wishes of organisation. Now it is having a reverse
trend, organisations have now to conform more to the wishes of its
member.

A positive trend, however, can be developed in this situation

through participative management. The result can be achieved, once
people are involved in a positive way instead of merely in a reactive way.

The test of our leadership must be whether all the various

organisational and bureaucratic management tools are ‘on switches’ or
‘off switches’. It is needed to assess repeatedly, whether the effect on
people is to get them willingly and freely to accept the challenge or to
turn their wit, ingenuity and energy to defeating the intent of the system,
which we seek to manage them. The future need is to have federation of
freely committed willingly, self-aligning people, conscious of their own
freedom, choosing to commit themselves to the achievement of shared
common goals and to be able to use their own individuality to help the
group.

Motivation

A world without change is a world without hope. To reject change

is to reject to-morrow. Mind works only when it is open.

To get the right impact, the right motive for every employee, we
have to find out a common denominator. The crux of the motivation
question and effort is to create and maintain a climate, in which the
people want to contribute their energies and talents towards the
industry’s goal. It is in the nature of man to be creative and try for

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achievements that gives him satisfaction. Success becomes second
alternative when all levels of management speak the same language.

If people are not treated and do not enjoy their work and consider
it as necessary evil, then there is bound to be conflict, it would lead to
discontentment amongst people - inefficient organisation, poor
productivity and, in turn again loss for the mass.

In an atmosphere of participative management, people function

better. When they are a part of decision making process at levels both
below and above.

Democracy is only possible when the members themselves and

they alone own and are responsible for the control of the reasons of the
enterprise.

Betrand Russel compares -

“to be a billiard ball whose relation to another billiard ball is only

co-existence or collision. But men must learn to enter into each
other and work in harmony with each other in co-operation and
team spirit. This is achieved through spiritual growth from
individuality to personality.”

Human values manifest spontaneously in ‘man as person’. When

man as person as an enlightened citizen, becomes an employee of public
service institution, human value become prominent and enrich the work
qualitatively. If the employees are taught and inspired to devote
themselves for country’s betterment through improvement of the
industry, result will come. This may be achieved through the following
values:-

(i) Service to Nation

(ii) Fairness
(iii) Continuous struggle for betterment

When work is done with a citizen’s mind and attitude, the work
does not become drudgery but it elevates both the work and workers.

Such persons will not think himself/herself as an employee only,

but as a free citizen of the country, performing a particular task and

106
service for the people at the call of nation. Thus work is transformed to
worship, transformed to mission and also as National Commitment.
From being a mere employee or paid servant employee turns to an
instrument of human purpose.

PHILOSOPHY OF INDUSTRIAL RELATION

The background of Management aspects with regard to Philosophy

of Industrial Relation in brief are as follows :

Weber (1864-1920)

Weber was a German Sociologist, Philosopher whose theory of

bureaucracy is often presented alongside the work of administrative
management writers as Fayot, Gullick and Urwick. He was not a
Manager, or Engineer but his interest was in the process of social change
and in particular, in the effect of rationality on religious thought and
capitalism.

The Weberian Model

For Weber, the bureaucratic form of organisation possessed the

features of specialisation, heirarchy, rules, impersonality, full time
officials, career focus and a split between public and private activity.

Taylor (1903-1958)

Taylor was the one, who proposed the theory of scientific

management. Time and motion study techniques gave Taylor’s ideas the
claim to be a science. He based his work upon the accurate and scientific
study of unit time. His aim was to increase productivity by improving the
performance of the workers by selecting annual tasks and fragmenting
them into their simplest and smallest components.

Administrative Theory

The primary focus of this theory was the types of specialisation

and hierarchy which would minimise the efficiency of organisations.

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 Administrative management is built around four key pillars. They
are :-

• The division of labour

• Scaler and functional process

• Organisational structure
• Span of control

Additional concepts are :

Discipline, unity of command, unity of direction, remuneration, the

sub-ordination of individual interest to common interest, centralisation
and Espirit-de-Corps.

Human Relations

This idea arose from the American wish to humanize the society
without interfering with free operations of market forces.

The main proposition of Human Relations are :-

(a) A focus on people rather than mechanics or economics.

(b) People exist in an organisational environment rather than an

unorganised social context

(c) To motivate people.

(d) Motivation should be directed towards teamwork, which requires

both co-ordination and co-operation of the individuals.

(e) Human relation seeks to fulfill both individual and organisational

objectives simultaneously.

(f) Both individual and organisation seeks for efficiency i.e. minimum
input and maximum output.

Neo-Human Relations (1950)

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 The basic idea was that, above all, the worker wanted the
opportunity to grow and develop on the job. The writer visualised this
idea to be the one which would bring an end to industrial conflict. This
is when the workers are given responsibility and do meaningful work,
their attitude towards Company would be entirely positive and would
share goals of the management.

Abraham Maslow (1943)

Need hierarchy of motivation theory :

Maslow presented his theory of human motivation based on

hierarchy of seven sets of needs. He addressed social issues in terms of
the effect of social factors upon the mental health of individuals. His
idea was in the realm of science or prescience rather than personal
philosophy. His theories were never conceived with management or
organisations in mind.

Dauglas McGragor (1960)

Theory X to theory Y :

McGragor shares with Maslow the distinction of having an

incorrect interpretation of his theory gain wider circulation than his
original ideas. He presented a set of assumption about human
motivations and behaviour which he said were implicit in management
literature and practice. He named these Theory X. It said average
human beings disliked work and would avoid it. That because of this
people had to be coerced, controlled, directed and threatened in order to
get them put their efforts to achieve organisational goals.

Finally, the individual wished to avoid responsibility, had little

ambition, wanted security above else and preferred to be directed. These
led the managers to rely on promises, rewards, incentives or threats and
other coercive devices.

Fredwick Herzberg (1959)

Motivation Hygiene theory :

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 Said that two sets of variables (called hygiene factors and
motivators) together influenced worker motivation. What he did not say
was that hygiene factors were less important than motivators.

Renesis Likert (1967)

System 4 theory :

He said that democracy paid in Management. He advocated the

integration of individuals into the organisation through groups, which in
turn, were integrated into the organisation’s officials structure of decision
making by being made to overlap by means of their continuing ‘linking-
pin’ members who belonged to more than one group.

Likert sought to establish a single cause linking people’s attitude

and performances. His theory emphasized connecting of work groups,
their interactions and practical considerations of profit and loss. The
measures he used for scoring the dimensions of human organisations
were motivation, communication, interaction, decision making, goal
setting, control and performance.

Robert Blake and Jane Morton (1964)

Managerial Theory

Grid theory owed a strong intellectual debt on studies of leadership

which examined the dimensions of consideration and “initiating
structures”. The Michigan researchers first conceptualised two
leadership dimensions which were “employee orientation” and
“production orientation”. These were independent and leader could be
high or low or both.

Chris Argyris (1964)

Goal congruence theory :

The basic idea was the necessity for organisations to create

circumstances in which adults could develop healthy personalities. This
“self-actualisation” theme was the heart of neo-human relations
movement.

Paul Mersey and Kenneth Blanchand (1969)

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 Situational leadership theory:

It is originally called the life cycle theory of leadership which used

a contingency approach and stated that the effective leadership style was
the one that fitted the particular situation.

Guru theory

A close observation to this theory gives credence to Heller’s (1990)

suggestion that the central contention of this Management idea is that
the only object of business is to compete with others for the favour of
customer as kind. Since Guru idea relies for its authorisation upon the
individual who developed and popularised it, the term of “Guru theory’ is
used to refer to these different contribution that have been influential for
the past years. Among the best known academic management, Gurus of
1950s and 1960s, are one Michael Porter (competitive advantage),
Kenneth Blanchand (one minute Manager), William Ouchi (Theory Z).

The second category of Gurus are consultants among those

Australian born Peter Drucker is the best.

The third type of Gurus are hero-managers. They are successful

Chief Executive Officers (CEO) who have committed their thoughts to
print.

The Profit and Productivity oriented ideas of Business

Management practised in USA and other countries of West for the

last few decades produced a number of “go-getter” Managers, whose only
aim was to bring material success at any cost. Ethics was either ignored
or given the second place. In 1985, Peter Drucker in his book “The
Changing world of the Executive” wrote -

“........... there is only one code of ethics, that of individual

behaviours, for price and pamper for rich and poor for the mighty
and the weak alike”.

Ethics in the Judio-Christian tradition is the affirmation that all

men and workers are alike creatures.

In 1988, new thoughts emerged. Kenneth Blanchand and Vincent,

Peals brought out a book - “The Power of Ethical Management”. It is

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written on the cover of the book that - Integrity pays. You do not have to
cheat to win.

By 1989, value free and profit oriented Management started

cracking. Americam business began to go down.

By 1980s, Japanese had completely upset the US industries and

Management. Japanese are highly patriotic and the common slogan is
“Long Live Japan”. They accepted all work as meditation.

In the book “The Art of Japanese Management” by Richard Tanner

Pascale and Anthony Gathos, spiritual values have been discussed.

Western concept of Management based on Western concept of

man, where man is “born sinner”, the Greeks thought of a man as
“political animal” etc.

The Indian ethos disrules this and its concept is man as

“Amritasya Putra”,son of the heavenly father. According to Vivekananda,
man was power of endless dynamism - “Arise, awake and stop not till the
goal is achieved”.

Vivekananda brought a new idea of service as the means to both

individual and collective perfection. He defined -

“The National ideals of India are Renunciation and service, a new

ethos to work a new “Sadhana” for bringing prosperity in the
national life”.

Unfortunately, nearly thosands years of foreign rule, the system of

westernised educational and the ignorance and prejudice of modern
intellectuals to anything of Indian heritage, led to situation where Indian
heritage is not only neglected and conciously relegated as irrelevant.
Vast treasures of thoughts and wisdom expanded in Upanishads,
Brahmasutras, Bhagwat Gita, the two epics, eight Puranas and several
teaching and commentaries by Buddha, Mahabir, Jesus, Nanak, Kabir,
Chaitanya, Shankara have contributed to Indian heritage. Ancient
thoughts expounded by Ramakrishna, Vivekananda, Auravinda, Raman
are suited in modern times. Indian heritage has relevance to modern
management science.

Human Relations

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 It has for a considerable time been accepted at all level in industry
that the establishment of good human relation is a basic perquisite to
success and it is fairly well recognised by now that the greater
responsibility towards the achievement of this rests on Management.
The mining industry employ a comparatively higher number of workers
than most other industries and most of these workers, by the very nature
of things have to work in less congenial conditions than workmen in
other industries. This being so the Human Relation is bound to have a
considerable impact on the results achieved by the mining industry.

Management has to recognise that each employee has his

individual needs and aspirations at work. This should be taken into
account in its day’s conduct of business. In particular, Management
should recognise the employees real need to achieve a sense of
satisfaction in his job and should provide for it, as far as possible.

Man has an inner desire and need for appreciation. He wants to

receive affection, which makes him feel important and valuable. It
makes him feel he has a place in the order of people. It is necessary to
extend employees support, love, understanding and, in turn, they would
give back best of their capacities.

All are craving for opportunities to express in various creative

ways. None will be happy if one is not constructive at his work or
leisure.

Majority of people are busy with some kind of jobs. Some keep on
fitting, repairing, patching up what would break if unattended in time.
This creative process involves a dignity and fill one with intellectual,
moral and spiritual joy. This human urge has to be realised and
continuous efforts has to be maintained, so that excellence through
creativity is achieved.

In the same way, all feel a need for recognition. It is an established

truth that just and sincere praise are essential to the progress, well being
and efficiency of every man.

All expect credit for the good that is done and look for recognition
of merits in time; one will feel rejected when they are denied.

“Be quick to praise, be slow to censure”.

Factors for dissatisfaction have been shown in the order:-

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 (a) Company policy and Administration
(b) Supervision
(c) Relationship with supervisors
(d) Work condition
(e) Salary
(f) Personal life

(g) Relationship with subordinates

(h) Status
(i) Security

The following factors have been identified providing greatest

satisfaction at work :-

(a) Achievement
(b) Recognition
(c) Work itself
(d) Responsibility
(e) Advancement
(f) Growth
Grievance handling

It is necessary to enable the individual to air grievances.

Endeavour is to be made to establish circumstances causing
dissatisfaction. To attend the grievances, it would be necessary -

• To allow adequate time

• To put employees at ease
• To get feeling as well as facts
• Not to evade the issue or belittle it
• To investigate facts

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 • To get employee to suggest solution
• Not to commit too quickly and
• To state proposed state of action-if known at that time.

Action can be decided after having facts and details. However,

such decisions should not affect company policies.

Persuasion

The more Manager knows the other person, i.e. how he thinks,
what he likes, what he dislikes, his ambition, how he sees himself, the
more likely Manager will be able to persuade him.

Persuasion is a matter to be handled with patience and free mind.

To inform people is to try helping them to see things that either

they had not noticed earlier or to make them see thing from a different
standpoint in a different light. Therefore, it is very essential to prepare
thoroughly.

One has to be sure before persuasion is set out that active and
genuine desire for service to the other party remains.

It is necessary to eliminate emotions and proportions put forward

is judged with facts only.

People always want what will enhance or benefit their ownself and
images. They will change their ideas and attitude when they will believe
that changes will satisfy needs.

To get others to accept your views without their feeling resentment

towards either you or their own changed attitude, is the art of
persuasion.

These factors have very little to do with money and status.

They have much to do with achievement and responsibility and are

connected with the job content i.e., the things that people do at work.

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 People are not machine; the use and organisation of people in ways
which do not recognise their abilities and wishes, will result in
considerable low performance. It is well known that to get things done in
industry is to win the freely given commitment, belief and acceptance of
shared aim by the people who are involved. Beyond a certain level of
dissatisfaction people will withdraw themselves from work, and
involvement will be less.

With the daily routine, life passes very quickly, suddenly one
realises that he does not count. Thus depression sets in and one feels
that he is just a cog in the wheel. A feeling of nobody persists. This
situation of helplessness and inferiority complex in the mind of people
need to be handled carefully.

1. Allow a workman to start thinking and accepting himself as

worthwhile.

2. Allow him to think a new physical attitude.

3. To allow him to develop a fresh outlook to his job as important.

4. Allow him to build a philosophy of his life that is greatest.

5. Not to follow same routine. To devise ways and means of doing

things better and quicker.

6. A new look towards life-dignified and of tremendous important.

(Such perspective will not allow any room for inferiority
complex).

All employees have a right to seek redress of grievances relating to

their employment. Each employee must be told how he can do so. In the
colliery, Manager will have to see that arrangements are there under
which individual employees can raise grievances and have them settled
fairly and promptly. There should be a formal procedure.

Individual grievances and collective disputes are often dealt with

through the same procedure.

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Individual Grievance Procedure

The aim of grievance procedure should be to settle the grievance

fairly and as early as possible nearer to the point of origin. The grievance
should normally be discussed.

Managers have to apply particular attention to the kind of tasks

that they expect employees to do, as job satisfaction comes from
involvement in doing what is considered is worthwhile and challenging.

Managers preparation

- Presentation should be easy and - Ask his opinions

clear in his language and in terms - Open queries find out
of his environment. what is in his mind.

- To be realistic - show interest in him

- Sell the benefit - To consider in his position

and judge his views.

- Design the approach to the needs

of the other party

- to prepare others to accept the

views.

- To be flexible and adjust your

objective

- to make him a party to the idea - This will apply

- sell the benefit positively - you sincerely believe in it.

- once aim is achieved not to lose it

by dragging discussion longer than
necessary.

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Take prompt action on decisions

An attempt may be made to follow the approach while persuading

type of man of different attitude.

Type of man to be Traits Approach to Approach

persuaded Positive(+) Positive(+)
Negative(-) Negative(-)

1. Able and Clever Neutral Dignified brief, Neutral

sincere, firm, factual

2. Self important Positive(+) Eliminate yourself, Negative(-)

plug facts, guide his
conclusion

3. Argumentative Positive(+) Not argumentative, Negative(-)

calm, patient, guide
his conclusion.

4. Obstinate Positive(+) Limited objective, Negative(-)

avoid dead lock,
Switch attach, make
another date

5. Weak and unable Negative(-) In writing, question Positive(+)

at every stage firm

6. Silent Negative(-) Logical presentation, Positive(+)

question at every
stage, firm

7. Not so bright Negative(-) Slowly, simplify use Positive(+)

emotion

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Problem solving

Problem solving at the first instance may appear to be no more

than a common sense even then the following stages of process may help
in structuring problems and decision making.

• Problem analysis
• Direction and control of action
• Decision making

Once individual problems have been recognised, it is necessary to

decide the priority by considering urgency, seriousness and trend.

A problem is a deviation between what should happen and what

actually happens. The cause of the problem is always a change that has
taken place.

After the causes are detected and problems are analysed, Manager
has to be clear about action to be taken.

(a) Interim - to keep things going.

(b) Adaption - to break the link between cause and problem
(c) Corrective - to eliminate cause.

Decision making

Decisions may be taken on the following lines -

1. Managers may solve the problems or make decisions himself

using the information available to him at the relevant time.

2. Managers may obtain any information necessary from his

subordinate, then decide on solution to the problems himself.
He may or may not tell subordinates the purpose of his queries
or give information of his problems or decision he was working
on.

3. Manager shares the problems with relevant subordinates

individually getting their views and suggestions without
bringing them together in a group and then he makes a
decision.

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 4. The Manager shares the problems with his subordinates in a
group meeting and obtain their ideas and suggestions. Then
he makes decision which may or may not reflect his
subordinates’ influence.

5. The Manager shares the problems with the subordinate as a

group. He then generates and evaluates alternatives and
attempt to reach agreement on a solution.

Hence, Manager plays the role of co-ordinator, keeping the focus of

discussion on the problems making sure that critical aspects are
discussed. The Manager will provide necessary information to the group
as well as ideas but will not press to adopt his views. The Manager here
will be ready to accept and implement the solution which has the
support of the group.

A problem which should be studied by senior Management and

those responsible for administration is the number of meeting a Colliery
Manager has to cope with especially at the larger collieries. He is
required to attend meeting with Production personnel, Trade Unions,
Safety Committee, Planning meeting, Pit Meeting and of course, in
addition to his meeting with various under officials. Part of the problem
simply is that there are not enough days in week to fit these in.

Colliery Managers are faced to day with many problems which

become more and more complicated as time goes in. They cannot hope
to deal with all these themselves and they will have to make full use of
Specialists and Service Departments, if they are to do their jobs
effectively and efficiently.

To handle stressful situations

When situation creates stress and body and mind get into various
types of physical and mental problems then,

(i) Use of knowledge; it is essential to know causes of the stresses

and also ways to prevent or manage situation. We should get a
total perspective and better understanding on the basis of facts
and not just feelings.

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 (ii) By systematic analysis - by studying logically and systema-
tically, we can arrive at realistic explanation and answer.

(iii) To adopt the right attitude and stay calm.

It is to cultivate that during trouble, one should be calm and grace.

Under pressure, it is to practice that during difficult situation in the
industry one is steady and stable. It is to control emotion during adverse
situation, remaining silent and cool gives one opportunity to find out
solution to overcome the odd.

When a mistake happens and deadline is missed, nothing can

change that. On this issue losing temper only makes matter further
worse and makes things complicated. Energy should be harnessed in
finding solution rather than to letting off anger. Any crisis required
discussion this one has to put in the right frame of mind to make the
right decision.

• It is to think and not just to react

• To be ready mentally to resolve the task
• To turn the crisis into opportunity
• While recurring major crisis not desirable, occasional
unavoidable crises are necessary for mental health.
• To review and analysis what went wrong and there by to help
prevent future problems and crisis

Communication

In these modern days, complexity of organisation attach much

importance on proper circumstances. Communication is the central and
critical chord which can get the people working together in the pursuit of
common and well accepted goals. In order to improve effective
communication, it needs understanding of the environment, the
organisation and the employees associated to the organisation.

Communication includes communication with (i) individual (ii) with

small group and (iii) with total workforce.

Communication process becomes critical when behaviourial angle

is taken into account. This is applicable in both cases of vertical and

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horizontal communication. Factors like physical and psychological
distance in the hierarchy, status, mental makeup, background play vital
part.

Communication is, however, the major instrument for achieving

success with people and through people.

Sensitivity to communication problem gets intensified with social

interaction and political circumstances.

Besides, behavioural aspects, four forms of internal

communication are there : (i) Top down, (ii) Bottom up, (iii) Lateral
communication and (iv) Diagonal communication.

Communication from Management to employees

Top down - Commands, communicating procedural practices and

policies, instructions, advices, praise, discipline.

This will involve talking, informing

All human relations essentially depend on proper communications.

Manager’s success as leader depend on how best they communicate.
Poor communication may invite misunderstanding, strained relationship.
Whenever effective and proper communication build the moral of people,
develop trust and understanding.

(a) Oral communication, face to face method

Method : talk to everyone once a month going through section,

department in rotation and explain organisation
position, policy, performance or briefing in a session.

(b) Writing : Appreciation, a letter of congratulations to employees

on achievement message of condolence, warning or
praise.

Upward communication : Upward communication for employees

to express their problems, suggestion,
ideas.

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 Joint consultative committee is a forum for exchange of views and
essential issues. Workers letter to Manager expressing their grievances.

Many people can talk but less number of people can carry out
effective conversation.

Meeting

1. Colliery Managers will have to work through various teams of

officers, group of employees during the course of running of
mines. It is necessary to conduct various meetings with the
groups.

2. Meeting is mode for communication and it is an essential part

of effective administration. The objective of meeting is to
secure co-operation and to save time and efforts. Meeting may
be of various types;

(a) Informative
(b) Instructional
(c) Motivational
(d) Consultative
(e) Decision making

3. To conduct meeting successfully, the following skills need to be

acquired.

(a) Expertise on the subject

(b) Ability to talk effectively
(c) Being prepared for the discussion by studying
documents, information
(d) Producing new ideas

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 (e) Being impartial
(f) Listening effectively
(g) Clarifying and developing others ideas and needs.
4. A Manager while functioning as Chairman, must have
adequate preparation before the meeting.

As Chairman, he should gain sound knowledge of business to

be discussed. He should also gain knowledge about the
members who will participate in the meeting and this will help
in holding the meeting smoothly.

The Chairman should know who needs to attend the meeting.

The meeting should start punctually and business like

atmosphere should prevail.

5. The Chairman should :-

(a) keep the speakers to the point and check attempt

to drag the discussion beyond the points.
(b) allow all members equal chance to speak
(c) allow all members to express their views
(d) be impartial and extend guidance where necessary

The Right personal A knowledge of how to conduct

qualities + the meeting and of the business
to be discussed

Will make Chairman successful.

Time Management

Managers have to look after so many Areas of work and, therefore,

it is necessary that unless they manage their time satisfactorily with
better control over time, Managers cannot prove to be more productive
and work more effectively.

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 Time is most valuable resource which cannot be allowed to waste,
as it is irreversible, irreplaceable and finite. One can budget time but
cannot borrow it. To waste time is to waste some part of life.

Effective Time Management is, therefore, a must. For this, it is

necessary to

• Fix goals
• Set priorities

These can be set as long term (say for 2 years) “and” short term (for
next 6 months).

Priorities set as ‘A’ , ‘B’, ‘C’ etc. where ‘A’s are items of high value,
‘B’medium and ‘C’ as low value. Once ‘A’s are decided, priorities to be set
as A1, A2 aned A3 etc.

Over organisation, however, will lead to further waste of time.

Once the objectives are clear and goals set with priority, it would
be required to prepare a daily ‘to do’ list.

To get the important job done first as per the priority list.

For decision making specific officers/employees to be contacted,

relevant papers required to be seen, all have to be organised for quick
decision making and disposing the “to do” list one by one.

Unless all the A jobs are complete, it is not necessary to do other

A1 at own cost. Any interruption has to be faced. Normally no set speed
and it may be practised to handle each paper only once. Collecting too
much information makes delay.

In order to save time for thinking, it is necessary to make short

replies with points and take assistance from colleagues and Secretaries
in reducing paper work.

It is necessary to have a background file for all important

information for going through it when time available.

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 It is important to foresee the deadline of disposing a paper/

Delay, keeping paper unattended causes unnecessary anguish,

guilt and pressure, so to do it now is the right attitude.

Time is most valuable resource and hence it cannot be allowed to

waste.

It is necessary therefore

• to set priority
• to make a daily ‘to do’ list
• to start with ‘A’ and not with ‘D’ priority
• to ask self “what is the best use of time now”
• to handle each paper once
• to be brief and to do it now

Even with all these steps followed, one is liable to encounter

unexpected barriers to achievements. There cannot be a totally organised
day. What can be done to minimise the extent of and effect of
interruption.

Interruptions are to be accepted as a part of normal daily work.

These interruptions are to be treated also as job and not to think that
these are taking one away from job. It is to control the controllable.

It is to keep interruption short while it is necessary to stick to time

limit, it is also necessary to be gracious with people.

It is not to leave the interrupted with a problem unresolved either

to refer him to other officers or to inform him to look into the matter
later.

It is also to see that self interruptions are avoided - with constant

cups of tea and coffee, gossip, encouraging people to drop in to chat or to
make regular calls to family or friends.

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 Not to commit taking over new task on the spur of moment. Many
pass through the years without recognising the value of time. One has to
take charge of his time. It is necessary to change the old habits that
waste time.

Four things never comes back - the spoken words, the sped arrow,
time past, and the neglected opportunity.

Good Time Management means doing the right thing faster and
better working smarter and not harder.

Take time to

live - killing time is suicide

work - it is the price of success

think - it is the source of power

To sum up

• Time is precious
• Crisis and interruption do happen
• To have a better attitude for them
• To say “No” when people ask too much
• To control jobs not to allow job to control
• Being relaxed one can do job better

***

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 17

ROLE OF PUBLIC SECTOR

OVER last 45 years or so, the public sectors in India has been
subject of discussion amongst intellectuals, politicians and common
people for various reasons. To some people, enlargement of public sector
is a movement towards Welfare societies, other have found in the Public
Sector wastage, inefficiency instead of extension of social benefits.

The public sector in India have mixed results of failure, wastage of

resources as well as pioneering impressive achievement. India having
been left much behind industrial revolution during British regime, the
country had, therefore, to catch up very fast in developing resources and
industries. Despite its several handicaps, the public sectors have made a
place for itself in the National Economy. Over the past years, number of
its industries have gone up, the investment have increased manifold, and
turnover multiplied. In fact philosophy of Public Sector of our country
may provide a model for the developing world. The country is yet to solve
problems of removal of backwardness in some part of our country. The
process of which has started for accelerating industrial progress,
contribution to infrastructure development like Gas, Oil, Minerals and
Coal.

The general feeling towards public sector undertaking is not very

positive. The impression that come to mind immediately are inefficiency,
bureaucracy, huge losses, strikes/corruption, etc. In short, people feel
that many public sector undertakings are a deterrent to progress. There
are, of course, some notable exception.

Public sector undertakings are seen as complacent monopolies

that lack accountability. They seem more a convenient first, because
corporations fail to define the purpose of their programme. Second, they
don’t measure the results. The majority fly behind.

Main difference between private and public sector seems to relate

to attitude. In private sector, employees know company is vulnerable to
failure. So too its Managers. There is a great incentive to survive. In the
public sector these motivations are severely diluted and the enterprise
has less edge.

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 The feeling of invulnerability, sheer complacency about the present
and future, and also conviction at some level that Government would see
the company and protect whatever be the circumstances. It is, therefore,
difficult to inculcate a sense of realism. But realism is necessary, if
problems are to be solved. Need to change attitude seems a major
challenge.

Vacillation will take its toll and Managers will have little credibility
in the eyes of shop floor. So it is not only a question of educating mass of
employees but of changing the attitude of Managers who have grown up
in an atmosphere of compromise and conciliation.

It is worthwhile at this stage to peep into the causes of the public

sector inefficiencies and the main factors that emerge are : political
interference in the public sectors’ day to day functioning, an overcaution,
bureaucratic management style unsuited to commercial undertakings,
muddling of business and social priorities, overstaffing and labour
indiscipline, below cost pricing of public sector output, and the 10%
preferential consideration public sector firms extend to one another on
tenders.

An important aspect of higher accountability is the high level of

business ethics, morality and social responsibility expected of the public
enterprises.

Objective of Public Sector

Public sector has been a part of the philosophy of socio-economic

development in India. Public Sector has :-

(i) To give an adequate return on investment to the Nation.

(ii) To generate surpluses to help in the socio-economic

transformation.

(iii) To generate additional employment.

(iv) To promote balanced regional growth.

(v) To help develop ancilliary industries.

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 Micro-socio-economically, these objectives are stated to be to
accelerate the process of economic development both, in industrial and
agricultural areas and to give the country a self-reliant economy, to bring
about better distribution and reduction in inequalities in incomes and
the removal of poverty.

We advocate a public sector for the three reasons:-

“To gain control of the commanding heights of economy,

To promote critical development in terms of social gain
or strategic value rather than primarily on consideration
of profit;

and to provide commercial surplus with which to

finance further economic development”.

- Mrs. Indira Gandhi

Management Strategies

It is an established truth that whenever for any reason,

equilibrium gets upset, malfunctioning starts reversing the normal
activities. It is applicable for nature, health, as well for the industry.
Imbalance in any field causes various disorder. Whenever such
imbalance emerges in the industry or equilibrium gets upset for any
reason, malfunctioning starts. Main reason, however, is problem of
management.

The problems may arise out of :-

(a) Management’s inefficiency.

(b) Weak Management.
(c) No Management’s Team.
(d) Management without objective.
(e) Unsettled Management.
(f) Huge organisation.
(g) Management with no experience.
(h) Management unaware of its functions and role.
(i) Management by mistake.

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 Whatever may be the causes for imbalanace in the Management’s
system and procedure, the net result is that the industry loses. If it is a
public sector, then the public, the future generations, lose opportunity.
They lose heavily due to price increase, inflation. There is no right of the
people who are associated with such organisation, to allow the industry
to drift at the cost of nation. The major responsibility, however, lies on
the top executive and Managerial group with management theory, and
planning clearly understood.

Since the 1950s, management theory received a great deal of

attention. Again the post 60s, there has been shift from a production
orientation to a marketing orientation; the discipline of marketing is now
being accepted by many public sector companies too. Secondly,
organisation and method was recognised as a management theory that
had real applications in corporations. With the development of computer
technology, operations research gained importance and was increasingly
implemented within corporations. From the sterile area of computers, no
surprisingly moved to behavioural theories. Many different behavioural
theories of management, from Theory X and Theory Y talking about the
positive and negative behavioural aspects of people in organisations to
theories on managerial grids.

In the seventies, structural theories gained increasing recognition.

Should companies be centralised or decentralised? This led to the birth
of strategic theories of management. Strategic management continues
today as the dominant focus for both theoreticians and practical
manager in corporations. Strategic management has evolved over the
years and indeed, one School of thought suggests an evolution of
strategic management.

“There is no strategy here”. This is basic management. Here one

runs a company by having annual budgets and take a very functional
focus on his activities : production, marketing and personnel. 2. It is a
little more advanced. Here one starts taking cognizance of his future,
budgeting for the current year and forecasting for one, two or three years
into the future, and he is still allocating resources on a relatively static
basis.

Step 3 the externally based management, says “Understand the

fundamentals of your business and act dynamically” Step 4 says,
“Think. Think and behave strategically and build coherence”. Essentially,

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it means : Educate, inform and advise. Step 4 says “shared goals,
resulting in shared rewards.”

The Managers basically deals with the elementary ideas,

things(Administrative) and people. These elements are reflected in the
task of conceptual thinking, where one formulates new business ideas
and opportunities, administration, where the details of the management
process are handled and the leadership, where people are motivated to
accomplish business objective.

Organisation

Today, we are living in an era of the most rapid technological

change the industrial world has ever known. The key elements for any
organisation are people, structure, technology and the environment in
which the organisation operates. When people join together in an
organisation to accomplish an objective, some kind of structure is
required. People also use technology to help get the job done, so there is
an interaction of people structure and technology as shown :-

People External
Environment

Organisation

Structure Technology

The objective of the organisation is to achieve a triple reward

system in which human, organisational and social objectives are met.
People find more satisfaction in work when there is co-operation and
team work. They are learning, growing and contributing. The
organisation is also more successful, because it operates more effectively.
Quality is better and costs are less. Perhaps the greatest beneficiary of
the triple reward system is society itself, because it has better products
and services, better citizens, and a climate of co-operation and progress.
For the effective functioning of all role players, people, structure and
technology, it is essential that the objectives of each are clearly

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understood in relation to the external stimuli. For this to be maintained
in the desired manner.

Objectives must be set up

The objectives are :-

(a) To make the country self-sufficient in modern

technologies.

(b) To help in breaking down the concentration of economic

power in fewer hands.

(c) To raise the cadres of professional men in managerial

and technological field.

(d) To reduce eventually dependence on foreign aid.

(e) High growth in assets, turnover and profit.

(f) A consistent reputation, within the industrial sector as

leader. Others imitate and try to get their talents.

(g) A solid public reputation, where people generally feel

good about the company and their operation.

To achieve the objectives organisation will need

• Right man in the right post

• Management culture

• Management skill

• Management standard

A group of executives of various level form the Management Team.

A strong management having leadership and quality to guide and

advice, and to take decision in time is a must.

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 What trait we look for such Management team:-

(a) Physical make up : appearance, smart, vigorous, speech.

(b) Attainment: education, training and experience.

(c) General intelligence:

(i) Fundamental
(ii) General intellectual capacity
(iii) Maturity of judgement
(iv) Realism
(v) Ability to pick up main issue
(vi) How he reacts and confront with problems.

Special Aptitudes

Supplementary to general intelligence.

Interest

Preferred activities.

Disposition

• How acceptable does he make himself to other people.

• Does he influence others?
• Is he steady and dependable?
• Is he self-reliant?
• How does he fit in - how do other people take to him -Does
he make a good member of group?
• Do others take notice of what he says - his opinions carry weight? -
good at getting people to do what he wants them to do.
• Is his behaviour fairly predictable or not?
• Can he stand on his own feet, work things out for himself or need
constant supervision.

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 EIGHT POINT PLAN

Characteristics

• Leadership
• Autonomy
• Control
• Involvement
• Communication
• Market Orientation
• Innovation
• Integrity

1. Leadership

• Demonstrated in varieties of ways, but particularly

through visible top management.

• Top management believe that they have to be seen to be

believed.

• Touring around the units, discussing where and how the

business is going, is an integral part of every senior
Manager’s routine.

• Leaders provide a clear vision which they believe in

passionately themselves and incite others to subscribe to.

• Leadership thrives where people have clear objectives.

• Leadership involves being allowed to make mistakes, i.e.

results in positive attitude towards problems, solving by
making people accountable for solutions rather than just
for the problem.

These help the company to extract extra-ordinary performance

from very ordinary people.

Whoever makes a show of himself cannot shine.

Whoever is self-righteous cannot earn respect of people.
Whoever is self centred cannot be loved by other.
Whoever seeks glory cannot become a true leader.

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2. Autonomy

• “I did not mind what they do as long as it turns out alright”

- Lord Wienstock of GEC.

• Successrful companies have small bureaucracts, informal

system to keep units working together rather than against
each other.

• Action oriented, informal teams.

• A positive attitude to risk taking.

3. Control

• Manager have the freedom to manage in their own way

within a clear framework of necessary restrictions.

• Delegation down the line.

• Tight control over areas that matter, a balance between

strict controls and the flexibility needed to reach quickly.

• Tight control on capital but freedom within budgets.

• Close attention to planning.

• A close understanding of where the company is continually

pushed down the Management heirarchy.

• They have the right way of doing things rather than hefty
rule books.

• Constant feed back on results.

• Creating the right framework of control and independence

is one of the ingredients.

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4. Involvement

• People here are committed because they are proud of what

they are doing.

• Pride in ownership, its not only a job it is a hobby.

• Stress on training. Every Manager is a Teacher.

5. Communication

• To communicate is to commit and to commit is to assume

responsibilities.

• Genuine respect for the individual.

• There is no bigger respect you can pay a subordinate than

to hear his point of view.

• To create a company culture and that the workforce can

identify.

6. Marketing

• They have a deep understanding about the market.

• Huge emphasis on quality control.

• Swift attention to complaints by top Manager.

• Research and Development wholly market oriented.

7. Innovation

• New ideas and uncommon thinking for betterment of the

industry.

8. Integrity

• More importance to integrity than ability. Employees know

where they stand and they are dealt with firmly.

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Tasks of Managers

The Public Sector of Coal Industry has major role to play for
development and promoting growth for the country. A unique feature of
this industry is inheritance of mines with large working force having
different work culture. This formed hetergeneous group after emerging as
Public Sector Company, where large number of people are associated and
human factors play the major role and managerial group of Coal Sector
will have to steer the Industries towards success giving due regards to
commitment with national feelings. Success of the industry will mean -

(i) High growth in assets turn over. generating surplus

(ii) Consistent reputation within the industrial Sector and solid public
reputation of the Industry.

To achieve such success in the Coal Industry, the Managers will

have to concentrate on -

(i) Control
(ii) Involvement
(iii)Communication
(iv) Integrity & Leadership

Managerial Preparedness

Let us imagine colliery Managers’ position, some 30 to 40 years

ago. The Mine Managers used to be the sole authority particularly for
such collieries which used to earn profit. In general, collieries were not
running in losses; as private owners would not allow their investment to
go waste. Collieries normally were situated in remote areas and far from
the town. The Managers used to enjoy better accommodation, car and
other facilities. In turn, the Managers used to remain watchful about the
activities of mines round the clock. Meeting with DGMS, Mine Planning,
Production, Despatch realisation, etc., would all come under Manager’s
purview. Though every evening owners would take the account of daily
production and despatch report. The Managers were quite noteable
person in the industry for their responsibilities, prestige and perquisite.
The general scenario of a mine was minimum number of workers on roll,
and it was controllable. Generally emergency work used to be carried out
by Contractors’ workers. System of seasonal and Badli workers were in
vogue.

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 Hardly a union in a colliery used to operate and workers generally
had to obey instructions of the Managers. Reward and punishment was
not at all difficult. Less number of company’s quarters were available.
Welfare facilities were not available in small or medium sized mines.

Managers had a team of Asst. Manager. In large mine there used to

be one Labour Officer, a few PGPTs, highly skilled supervisors, Head
Clerk, Store Clerk, besides other general Clerks, and a Medical Officer. In
general, colliery used to maintain less number of time rated workers and
surface workers. Mostly piece rated workers were there for underground
coal loading as well as on surface for loading coal in the trucks and
wagons.

Managers of a large mine used to be a very senior person.

Other advantages in the earlier days were -

• There was no top heavy management.

• Decision was taken at the mine level.

• No major IR problem.

• Delegation of authority upto Mining Sirdar level.

• Regular discussion with Asst. Managers, Surveyor,

Overman, by Manager regarding day to day performance,
production, despatches, profit and loss.

There was wide gap in the pay packet of Managers and other
officers, as a result successful Managers were regarded as superior most
person and defacto owner of the mine.

If all the above were taken to be of advantage, there were many

disadvantages; like obeying the owners and to safeguard owner’s
interest. During those days barring a few successful companies, there
was no promotional avenue. Managers used to remain as Managers for
years. In larger mines under enlightened owners, Managers could aspire
to become agent or Dy.CME.

Now a days, Manager is having a large number of superior officials

above him like Agent, Area officials and General Manager and in the
corporate office, Directors, etc.

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 These days, however, there has been avenues for promotion and
scope to earn experience in various types of underground mines,
inclines, opencast including having opportunity to work in mechanised
systems, powered support Longwall Face. There are also scope for
development in Planning and Design discipline and horizontal movement
to other disciplines. Earlier days, a Manager used to retire as Manager
which however has changed now and there is a scope for promotional
growth.

A Manager wants to see him in some position as he is in a huge

industry, where people in his grade are hundreds in number. He loses
his identity in the company. He is sure that many senior officers in the
corporate level do not know him even. Managers with such position
without any identity, before the higher management, considers his
position insignificant when he tries to assess himself in the holding
company in totality. Therefore, first thing he tries not to identify himself
as an officer of the total coal industry rather he makes himself, identified
within the local Area.

When this is the mental make up, he comes and joins a mine
having 2/3 units at a radius of 1-2-3 Kms. He finds himself on assuming
charges as the only new person in the colliery, who might have come to
bring change.

The Head Clerk, Store Keeper, Lamp Cabin Staff, Surveyor,

Loading Clerk, Mining Staff and all union men know the mine from
inception possibly have been in the mine for a long long period.

At the same time, he has officer’s team - with a number of Under

Managers, PGPTs, Engineers, Asst. Engineer, a dozen of supervisors in
Engineering, Mining discipline and Office Superintendents and number
of workers in various odd categories who, due to age, cannot be
retrained. A group of youngsters are available, who did not come
through selection but have entered the mine through some provisions of
wage agreement in place of their parents who happened to be the
employees of the collieries. Inspite of such situations, challenges need to
be taken by the managers. There cannot be any readymade solution to
achieve success but systematic planning, sincerity to the purpose,
devotion to works and honest approach will make a Manager’s position
strong.

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The Tasks of the Managers

To transform the inputs through Managerial activities grouped into

the functions of -

Planning

Organising

Re-energizing Staffing Facilitated by Communication

the system that also links the organisation
with the external environment
Leading

Controlling

To produce outputs

External Environment

Planning

Planning is essential for any human activity either at individual,

family, society, organisational or at a national level. The very essence of
planning is the phenomenon of time as defined subjectively by the
occurance of events. The future exists only as a projection of the present.
The purpose of planning is to anticipate the future and in some sense, to
fashion it according to the requirements for organisational survival and
growth.

Corporate planning is process of setting objectives and then

formulating strategies and action plans to achieve these objectives
bearing in mind changes in the environment. The uniqueness of a
corporate plan that distinguishes it from any other type of plan such as
production plan, financial plan, project plan, etc., is its capability to
integrate all these plans towards a common corporate objective. All these
plans put together in no case mean that a corporate plan is ready but all
these plans should be off shoots of corporate plan of a company.

Long range planning does not deal with future decisions. It deals
with the futurity of present decisions. This decision making is under

142
ambiguous circumstances. This means that the planning takes place in
an environment in which the goals, the constraints and the
consequences of possible actions are not known precisely, i.e. the
transition from membership in one set to another is gradual rather than
abrupt.

Organisation

Mining management today has an obligation and challenge which

never presented itself to its predecessors. In the early days of
Nationalisation, a drive for coal at any price resulted in a certain
complacency regarding financial results. At the same time, the much
needed overhaul of the industry demanded the capital investment which
has now become an embarassment; nevertheless, the industry could not
have continued to meet its commitments without such reconstruction.
Early move towards increasing productivity were set back with the over-
production of coal and resultant stocking, causing a change of policy and
a reversion to more conventional form of coal cutting. Accepting all these
points, it is now to realise that the wheel has turned full cycle and we are
at the point in time when finance in the industry are predominant.
Accepting the position as it stands, we have to get the very best from
existing workings with existing plans. To overcome such a situation,
solution must have to be obtained. We must accept that to survive, the
industry has to show results in productivity considerably higher than
anything achieved upto the present. Reconstruction and modern
technology have already begun to pay off. The key person in this is the
Man in closest touch with the situation, namely the Manager, at the pit.
Direction and assistance can come from higher level but plan must be
successful or failure in the majority of the cases as a result of
organisation and implementation at pit level. For this purpose, Managers
have to be given a team for his support.

Staffing

Considering the line management from Manager to Under

Manager, Overman, Mining Sirdar, there is nothing basically wrong
having four levels of line management at a pit; what is wrong is failure to
appreciate that the number at each level must vary according to the
extant of their responsibilities and to the number of subordinate that
they can effectively control.

Considering the high concentration of machines and production,

appointment for one under Manager for each face and one Overman for

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each shift on that face is to be considered.This would elevate the Under
Manager from the Overman, into which he too often degenerates to a
man with time to think and to exercise his proper Managerial function.
Mining Sirdar would be able to assist the Overman as required, but
primarily, they would be freed to which tend to be aggravated by rapid
advance. So far as functional staff is concerned, it is necessary to have
adequate staff to provide detailed information to colliery manager
regarding cost, store items, production, despatch, etc. In fact, the
Manager of today now needs a Personnel Administration Department
with officer and Staff of real calibre, if the work of the various functional
staff under him is to be properly co-ordinated.

A Mining Engineer should be there in each pit as a kind of

technical Assistant of the Manager with a variety of persons in method
study, mechanisation and other specialist branches of information
available to him so that Management are kept abreast of modern
scientific development and knowhow. These developments to have
effectiveness, Mine Managers should be posted with uptodate
information by Area. This is a kind of technical intelligence service. In
Military, it is called “Intelligence process” and breaks down into three
heading : “Collection”, “Synthesis” and “Dissemination”.

In coal mines, information is collected in colliery but is collated at

Area and in Corporate level it is synthesized. But what happens to
disseminate possibly, it takes place rarely. With the changes in system of
work, there is an increasing need for dissemination.

Manager of a Pit has neither the time to abstract relevant

information nor to conduct own research of data available. Manager’s
Clerk should do all this and may be attached to technical service section.
He should prepare statement of production, despatch, break-downs,
wagons supplied, etc. and all other statement of importance.

A further point which will require consideration is the need for

increased supervision by technical and qualified staff.

To have cohesive teams of dynamism, good gesture and attitude,

various groups are to be developed. Groups are to be allowed to go
through natural stages so that ultimately they form into effective teams.

When a few members are called and asked to act in a group, the
members pass through the phase of

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 i) Forming

ii) Storming

iii) Norming

iv) Performing

(i) They want to know purpose and goal of meeting.

They may want specific points of objectives -
clarification

(ii) Group members selling their ideas and try to

consider other members to follow their proposed
action.

(iii) Group form into team and active listening start,

team spirit is generated. Members being to be
participants in a ‘good’ team, “constructive
questionering”.

(iv) Polite phase - people get to know each others mind

- hear their points - conflict is avoided.

Spirit estimate - The Team shows high morale and

intense loyality. At this stage no new members
should be included.

Controlling

While on the other side of managing task, things are not always
straight, simple. Ideal conditions do not exist in course of
Administration. Condition has to be, however, created and then
according to analysis and careful study, action and steps need to be
taken. Bigger the task slower the speed, when majority Assistants are
allegiance then bigger discussion can be sorted out quickly and with less
effort.

Condition 1

• When alone to try and establish a good image

• Low profile

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 to watch and start action

Condition 2

• when covered 10% assistants and earned their loyalty and could
create an image.
• identify the problem
• to start persuation jointly
• to have individual interview
• to appreciate Assistant who have clear image and reputation
• to identify constraints, negative attitude of Assistants and to have
frequent group meetings.
priority be fixed for task and to start work

Condition 3

• when above 50% Assistants respect is earned to identify the

Assistants not in line
• to have open door policy

Need to Change Attitude is Major Challenge.

Colliery Managers often give lack of discipline as the reason for the
low standard of workmanship prevailing at their colliery. This is probably
true, but it is also probable that present day, Colliery Managers have not
the weapons at their disposal to enforce discipline as had the colliery
Manager in the past. It is certain that they have no wish to adopt the
methods of days gone by but even at present day condition, discipline
can be improved and maintained and so bring about greater safety and a
high standard of efficiency.

How it is to be done? It is suggested that the colliery Manager

should first discipline themselves.

• They should set themselves a high standard the manner in

which they carry out their own duties and do their utmost to
achieve this.

• They should control themselves in a proper manner when

dealing with junior officials or workmen. Junior officials should
also be taught how to discipline themselves.

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 The Manager should instruct them in the proper method of
carrying out their duties and they should also be advised how to behave
towards employees. When this has been achieved, the Management will
be in a position to ask even insist that workmen behave in the same
manner and carry out their work properly.

Colliery Managers will of course, need to take all steps possible to

see that workmen understand what is required of them and why it is
required. They should strive to improve communication between the
Management and the men and between the men and the Management.

Though this is clearly the duties of Management, even colliery

Managers should never hesitate to seek the help and advice of the
appropriate trade union officials in improving and maintaining results
and discipline at their colliery.

There can be little doubt that most workmen at any colliery are
anxious to do their jobs in a workman like manner and like to see other
workmen do their jobs in the same way. Employees like to see that where
they work have

a. A consistant reputation.
b. High growth in assets, turn over and profit.

They also like to see good results being achieved at their colliery. In
short, these men want to be proud of their pit and to be in a position to
boast about the results being obtained there. Colliery Manager would be
well to seek the help of these men in their efforts to improve discipline
and to uplift the standard of work and efficiency.

To organise all these, a more scientific approach to Management is

necessary. It lies, in fact, in the training of Managers and other executive
personnel the art of Management. Management has been defined as “the
art of creating Industrial Relations in order to secure co-operation”. The
Managers own initiative in putting into practice modern ideas on
Management and in endeavouring to allay mistrust and antagonism and
hence in securing true co-operation, is undoubtedly one of the main
factors contributing to improvement in Industrial life.

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 The factors that play a vital part in good management is
Leadership. One can define the function of Leadership as

a. effective representation
b. initiative and initiation
c. sound administration
d. just interpretation

Leadership thrives where people have clear objective. Leadership

involves being allowed to make mistakes; it results in positive attitude
towards problem solving by making people accountable for solutions
rather than just for the problem.

Leadership thrives where people have clear objective. Leadership

involves being allowed to make mistakes; it results in positive attitude
towards problem solving by making people accountable for solutions
rather than just for the problem.

Leadership provide a clear Mission which they believe

impassionately themselves and incite others to subscribe to -

Managers chose a Leadership style. For a Leader:-

• Less direct control the Manager has over specific courses of

action.
• The greater the time available for considering major questions.
• Less time is required for routine issues.
• Greater is the freedom of the group to influence decisions.
• Greater the opportunity for subordinate development.
• Greater is the group acceptance of responsibility for its action.

There are atleast three aspects of the relationship between the

leaders and his followers or subordinates which effect the likelihood of
their voluntarily accepting his decisions. They can be thought of as basis
of power from which a Leader can operate and which can enable him to
be more autocratic in his decision making. They are -

1. Legitimate Power - Do subordinates think that the

Leaders should make the decision, i.e.that it is his
legitimate right to do so.

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 2. Expert Power - Do subordinates think that the Leader
is the expert on the matter of questions.

3. Attractive Power - Do the subordinates greatly admire

the Leader, value his approval and wish to model their
behaviour after the Leader.

Leader, who in the eyes of subordinates, posses any one of these

basis of power are more likely to get the decision accepted than those
who lack them.

It must be emphasised that - Leadership is not domination. The

following are the comparision between the Leaders and a Boss as per
F.A.Ryan.

Leader Boss

Develops his men Drives his men

Depends and commands Depends on authority

goodwill

Inspires initiative and Evokes fear

enthusiasm

Says ‘We’ Says ‘I’

Says how it is done Knows how it is done

Shows how to do Knows how it is done

Makes it a challenge Makes it a drudgery

Shows what is wrong Shows who is wrong

Uses them Abuses men

Commands respect Demands respect

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The skills required for quality leadership are -

• Professional technical academic knowledge, extensive,

thorough and up-to-date.

• Considerable relevant experience.

• Quick to grasp the point.

• Expresses himself clearly and effectively.

• Good reasoning power and balanced judgement.

• Pleasant personality and acceptable.

• Shows persistence, energy, drive, ensure a job through.

Optimism is one of the most essential quality for being successful.

This winning quality is essential for a leader. Every optimist may not be
successful but every successful man is an optimistic.

An optimistic looks brighter side of every situation. It develops

thoughts of hope and courage and also instills cheerfulness.

It is, however, necessary to think ahead and to assess the adverse

consequences of decision.

Problems of a Manager

• Working environment - Underground work, Location of

working place (remote)

• Family problems - Schooling of children

• Stress/strain - Large industry

• Psychological - Approach of Boss and Understaff, attitude

of people towards work, competition and growth.

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 With all these, a Manager faces :

(a) Industrial
(b) Social and
(c) Psychological problems

To negotiate this, a group of young executives need to be given a

strength, a power to fight and overcome problems.

There cannot be any “Ten Commandments” or tips for man

management in tackling human problems arising out of work. But
definitely preparation can be made to face such aspects and with normal
and spontaneous flow, things can be sorted out. However, the approach
needs to be sincere, honest, straightforward. The preparations are
actually to acquire and add such qualities within oneself and to have
character, which will help to secure leadership and respect from others.

It is of paramount importance to management science. It teaches

to develop the good virtues within the self. It preaches to manage yourself
before you manage others.

If one can articulate the approach, the behaviour, management of

work and person attached to work become simple. This is true for all the
situations and all the periods to come.

Thousands of our youths joined the hard and continuous struggle

movement for India’s political freedom and social upliftment of the
downtrodden masses under the leadership of Gandhiji. Many suffered
and were jailed and many lives were lost during freedom movement,
ultimately the Nation achieved independence.

After the independence the free India saw number of unfree men.
Most of our educated people now remain busy with their own affairs and
material gain. They remain content at the low level of seeing “nothing
beyond their little horizon of a few yards - the routine work, eating,
drinking, earning and begetting, following each other in mathematical
precision” - Vivekananda. When thousands and thousands of people of
the country remain illiterate, underfed and are at sub human level, the
so called educated of the society remain self centred and are busy for
their pay, prospect and promotion, or running after wealth and more
wealth for their families. Do all such people try sincerely to bring out
poor people from poverty, they have hardly any time to think for the
welfare of common people.

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 When persons associated to organisation and infused with
awareness of their responsibility and function as enlightened citizen to
public work, the entire society gains and common people get benefit.
Progress and development can be achieved only through combined efforts
and co-operation of all Industry is a part of society through which society
achieves growth. In industry also the orientation and change in out look
makes management and administration dynamic. The philosophy of
management is, therefore, the guiding force.

The basic objective, belief and values of any industry requires to be

so understood that management’s philosophy is clear to all.

“Many of our people have no knowledge of their philosophy of life

and work and we have been imitating our neighbours, or western
methods. It makes us empty, hollow, vacant without any
philosophy. It makes one indisciplined. A nation cannot become
great without self-discipline : and self discipline is the mark of
freeman as indiscipline is the mark of a slave. We are still
indisciplined, people riddled with petty jealousies. We use our
intelligence only to advance our own cause in total neglect of the
nation. We forget that such life is empty inspite of high or low
levels of money or power, such people are “dead than alive”.

- Vivekananda.

Most of our upper class people have been missing the opportunity
to educate and raise the level of our common people and build up a great
nation. Many of them, have built their career at the cost of common
people.

This is a country backed with culture and heritage of ancient days.

The spiritual base is rather unique to India and its ethos cover a wide
range of thoughts - characters, moral, ideals, Indian environment
provides opportunity for the Managers to equip themselves with virtues
and activities backed by intellectual belief with disciplined way of
developing oneself. Our heritage and culture has taught the following
ways to prepare oneself.

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 • Set goals with high ideals.
• Work with a sense of altruism.
• To have faith in human endeavour.
• To develop wisdom.
• To be gentle to others.
• To overcome laziness.
• To develop character.
• To follow the path of righteousness
• To have good thoughts, deeds and words.
• To be balanced, and sensitive to the problems of others.
• To be free from envy
• Better cope with failure
• Be delight with vision
• Be tolerant
• To uphold morality
• Avoid waste
• Be concerned about improvement of human life
• Be fair in all dealings

CHARACTER

As per Peter Drucker

Importance of character in regard to Productivity -

“No matter how knowledgeable, how brilliant, how successful a man is, if
he lacks in character and integrity, he will destroy. He destroys his
people, the most valuable resource of the enterprise. He destroys spirit
and he destroys performance”.

Lord Budha valued people attitude and their mental progress very high.
Some verses from “Dharmapada” -

Better to live in virtue and wisdom for one day than to live a hundred
years with an evil and indisciplined mind.

Better to live in goodness and wisdom for one day than live an ignorant
and indisciplined life for a hundred years.

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• Now is the time to wake up when you are young and strong. Those
who wake and waver with a weak will and divided mind will
never find the way to pure wisdom.

• Be vigilant, guard your mind against negative thoughts. Pull

yourself out of bad ways as an elephant raises himself out of the
mud.

• Guard your thoughts, words and deeds. These three disciplines

will speed you along the path to pure wisdom.

They live for themselves and have forgotten others. Selfishness

and the evils flowing from self-centredness, have brought no positive
result to our country. The educated mass has to, therefore, work hard to
reverse this downward trend by participating in nation building process.

***

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 18

WAY TO SUCCESS

The success depends on

• A master mind determination

• Definite aim
• Self confidence
• Initiative and leadership
• Imagination
• Enthusiasm
• Concentration, Co-operation and tolerance
• Self control

Every one can, of course, talk but a few can make conversation
which needs real skill and practice.

All that is required for effective conversation is simple, even day

remark with smile that indirectly projects one’s desire to be friendly. This
encourages other to be at ease and speak.

One who will make conversation has to be a good listener. It is no

use of monopolising the conversation on one’s own : Others must be
given chance to respond and express views.

• To develop self control skill

• To refuse to take insults personally

• To create a win-win position

• To compose thoughts whenever conflict arises and to act

purposefully (Presence of mind, coolness and sense of
proportion are necessary during sudden and unexpected
situation)

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 • To control temper

• To recognise other person’s points

• To limit time with each associated

To fill mind consciously and deliberately with bright and cheerful

thoughts.

• To face a day with confidence and courage

• To view the difficulties and problems as challenge

• If you want to keep-Keep your promise

• If you want to cultivate-Cultivate good manner

• If you want to read-Read good books

• If you want to dress-Dress wounds of others

• If you want to kill-Kill your pride

The single characteristic quality for success is positive mental

attitude. There are many ingredients for winning attitude but the most
important is self-honesty.

In order to cultivate self-honesty

• To assume responsibility of action

• To follow own goal

• Not to escape

To think positively about every thing.

• To build good habits. Good habits will help to achieve goal

• To be enthusiastic, enthusiasm attract other people,

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 enthusiastic persons radiate joy and make other to share.

• To be empathetic. Empathy is the capacity to share others

feeling. By being empathetic one can bring other round to
accept his point of view.

• To think creatively, there are two types of people in the

industry. One is work processor and other is thinker - a
creative thinker.

• To be a good decision maker for a true achiever. It is to

find out better answers to any problem.

Applying judgement and fairness one can make appropriate

decision. No decision or “playing safe” is a bad approach. It creates
problem and complication as solution get delayed. For a good decision,
one must have a good grasp of the subject.

To delegate by design is essential. It is to be delegated to someone

else who can perform well or even better.

***

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 CONCLUSION
The Indian economy was highly protected from stiff
competition of the global market forces till the mid-eighties. Though a
strong foundation of the economy was laid by the Public Sector
Undertakings, many of the PSUs failed miserably in achieving
commercial success and became inefficient units.

Till recently, the Indian market was having limited opportunities

because of too many government controls and restrictions. The
government introduced a series of reforms in its economic policies from
July, 1991.

With rising import cost, inflation and reduced purchasing capacity,

many industries are facing recession. To stop excess money supply,
government had to cut its expenditure in many areas and this resulted in
spiralling recession as government is still the major buyer. Increasing
competition from within and abroad has led many companies to
reformulate strategies to survive and succeed.

Coal Industry has been passing through a critical phase.

Production of required grade of coal and its regular distribution has
become the major task before the coal Companies. Of late, the coal
market has been fluctuating, which has led to financial set back in many
coal Companies.

With the shrinkage and less paying capacity of coal consuming

industries, a void has been created resulting sudden financial crunch in
some of the coal companies. This situation has created a vicious circle.

(a) Less movement of coal so raised, will lead to

accumulation of coal stock.

(b) Forced reduction in coal production.

(c) Production rate diminishes.

(d) Development of mine-project gets upset.

(e) The Industry’s paying capacity gets restricted.

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 To break the vicious circle, marketing department needs to be
geared up to meet the present situations.

Industry aims for its position in the market through proper

marketing of its products. Produced items can only command for its
position through assured quality and quantity agreed in the supply
contract. The consumer expects value for the investment and hence
quality management assumes greater importance in the present day.

Quality management is based on the feed back from the customers

about the product and service. The focus on quality through continuous
improvement is the key concept to perceive the production process as an
integrated system that originates with the customer and ends with the
customer.

This industry of such huge magnitude with varieties of problems

needs to have clear plan and specific mission which will spell out status
of the industry, the structure of organisation and the standard of
managerial teams for the next five years. The coal industry has to be
ready to meet the challenges of future changes. Every individual,
organisation, government face a single choice, that is to think - re-think
the future or be compelled to think future. Those who choose the first
option have fair chance to prosper. Those who choose second will be
overtaken by changes.

The traditional coal industry which has faced ups and downs in
the past 200 years has to occupy the position of an institution like
visionary Company. The industry has to prosper over a long period of
time and to establish to last being dependent with distinct values and
ethics. These values are Respect, Excellence, Innovation and Ownership.

The industry will grow with real leaders, having ability to motivate
others to the highest level of achievement. The industry will be
successful if the employees are motivated by an ideology. With the
empowerment employees may become responsible for success of the
organisation. It is the Managerial group backed by motivated employees
who has to steer the industry to tide over the present critical situation.
This may necessitate coming together, keeping together and working
together - as “coming together is beginning, keeping together is progress
and working together is success”.
- Henry Ford.

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 With action oriented, informal team, it will be possible to keep
units working together. A positive attitude to risk taking, freedom to
manage with clear frame work of necessary restriction and tight control
over the areas that matter, will definitely lead the industry to success.

***

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 MINE
MANAGER’S
MANAGEMENT
MANUAL

Anup Krishna Gupta

161