Coal Is Just Not Black Gold
COAL IS JUST NOT BLACK GOLD
PREFACE
Drawing upon the organisation in which author is familiar – Coal India Limited, largest coal producing company in the world, In this paper he critically analyses few existing policies implemented by Government of India and Coal India Limited in mining industry from past few decades, works through the complex problems around Coal mining in India and identifies few human resource management related problems and how they have contributed for the company’s stagnation in recent years. The author then critically analyses the issues, compare it with relevant literature and evaluate the limitations. Based on the literature and observations, he then proposes few strategic recommendations to improve organisational effectiveness both to Law makers and to company.
INTRODUCTION
Coal India Limited (CIL) is a Government of India Undertaking, Maharatna (Country’s Jewel) company which employees 400,000 people approximately as of April’12. In ended last financial year, with net annual sales of 15 billion dollars, and a net annual operating profit of 3 billion dollars approximately by producing coal from its 466 Coal mines across India and selling it to Power generation companies. It is the biggest and only listed company in the sector, where private companies are not allowed to compete, Thus accounting to 80% of Annual national production of Coal in India.
CIL has five unions, which represent all the employees in the company. Since the company is only major coal producer and acts more like a monopoly in the sector, wages are low compared to Industry average in other countries. Coal India apart from producing coal on its own also gives few coal mines to private third parties for contract. These mines are smaller in size and remote for the company to allocate resources, hence they are contracted. This strategy of contracting coal mines and not having enough regulations around Coal production has led to few private contractors preferring
PREFACE
Drawing upon the organisation in which author is familiar – Coal India Limited, largest coal producing company in the world, In this paper he critically analyses few existing policies implemented by Government of India and Coal India Limited in mining industry from past few decades, works through the complex problems around Coal mining in India and identifies few human resource management related problems and how they have contributed for the company’s stagnation in recent years. The author then critically analyses the issues, compare it with relevant literature and evaluate the limitations. Based on the literature and observations, he then proposes few strategic recommendations to improve organisational effectiveness both to Law makers and to company.
INTRODUCTION
Coal India Limited (CIL) is a Government of India Undertaking, Maharatna (Country’s Jewel) company which employees 400,000 people approximately as of April’12. In ended last financial year, with net annual sales of 15 billion dollars, and a net annual operating profit of 3 billion dollars approximately by producing coal from its 466 Coal mines across India and selling it to Power generation companies. It is the biggest and only listed company in the sector, where private companies are not allowed to compete, Thus accounting to 80% of Annual national production of Coal in India.
CIL has five unions, which represent all the employees in the company. Since the company is only major coal producer and acts more like a monopoly in the sector, wages are low compared to Industry average in other countries. Coal India apart from producing coal on its own also gives few coal mines to private third parties for contract. These mines are smaller in size and remote for the company to allocate resources, hence they are contracted. This strategy of contracting coal mines and not having enough regulations around Coal production has led to few private contractors preferring
References: * Bamber J, Park F, Lee C, Ross P and Broadbent K, 2000, Employment Relations in the ASIA-PACIFIC Changing Approaches, Allen and Unwin, Australia. * BeardWell J & Claydon T, 1994, Human Resouce Management – A Contemporary Approach, Pearson Education Limited, Great Britian. * LG Group ( 1994) LG Labour – Management Relations Long-term Model Report * http://www.thehindubusinessline.com/companies/article2470720.ece