CHAPTER 1: INTRODUCTION

HR POLICIES:

HR policies allow an organization to be clear with employees on:

The nature of the organization

What they should expect from the organization

What the organization expects of them.

How policies and procedures work.

What is acceptable and unacceptable behavior.

The consequences of unacceptable behavior

HR policies provide an organization with a mechanism to manage risk by staying up to date with

current trends in employment standards and legislation. The policies must be framed in a manner

that the companies vision & the human resource helping the company to achieve it or work

towards it are at all levels benefited and at the same time not deviated from their main objective.

Purposes

The establishment of policies can help an organization demonstrate, both internally and

externally, that it meets requirements for diversity, ethics and training as well as its commitments

in relation to regulation and corporate governance of its employees. For example, in order to

dismiss an employee in accordance with employment law requirements, amongst other

considerations, it will normally be necessary to meet provisions within employment contracts

and collective bargaining agreements. The establishment of an HR Policy which sets out

obligations, standards of behavior and document disciplinary procedures, is now the standard

approach to meeting these obligations.

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HR policies can also be very effective at supporting and building the desired organizational

culture. For example recruitment and retention policies might outline the way the organization

values a flexible workforce, compensation policies might support this by offering a 48/52 pay

option where employees can take an extra four weeks holidays per year and receive less pay

across the year.

INDIAN RAILWAYS:

From its first railway in 1853, the Indian Railways has grown to become Asia’s second largest

(after China) and the world’s third largest state-owned railway system. Indian Railways is

organized as a central government operation under the Indian Railway Board. Indian Railways

owns and operates its own electric-locomotive, diesel-locomotive, and passenger-coach factories.

It also operates one of the world’s largest railway research organizations. Railways operate both

long distance and suburban rail systems.

Indian Railways is the state-owned railway company of India. Indian Railways has a monopoly

on the country's rail transport. It is one of the largest and busiest rail networks in the world,

transporting just over six billion passengers and almost 750 million tonnes of freight annually. IR

is the world's largest commercial or utility employer, with more than 16 lakh employees.

The railways traverse through the length and width of the country; with its trains reaching every

nook and corner of the country. The routes cover a total length of 63,465 kms. Indian Railways

owns a total of 2, 22,379 wagons, 39,936 coaches and 7,910 locomotives and runs a total of

14,244 trains daily, including about 8,002 passenger trains. The total number of railway stations

in India sum up to 7,133.

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Key statistics for the Indian Railways

Plant and Equipment

Capital-at-charge Rs crore 59,347

Total investment Rs crore 98,490

Route length Kms 63,465

Running track Kms 84,260

Total track Kms 108,805

Locomotives Nos 7,910

Passenger service vehicles Nos 42,441

Other coaching vehicles Nos 5,822

Wagons Nos 222,379

Railway stations Nos 7,133

Operations

Passenger: Train kms Millions 517

Vehicle kms Millions 14,066

Freight: Train kms Millions 284

Vehicle kms Millions 31,365

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CHAPTER 2: INDIAN RAILWAY NETWORKS

CHAPTER 3: ORGANZIATION STRUTURE

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Organizational Structure

Indian Railways is a public-owned company controlled by the Government of India, via the

Ministry of Railways. The ministry is currently headed by Mr. Lalu Prasad Yadav, the Union

Minister for Railways and assisted by two junior Ministers of State for Railways, Mr. R. Velu

and Mr. Naranbhai J. Rathwa. Reporting to them is the Railway Board. The ministry is housed

inside the Rail Bhawan in New Delhi.

Railway Board

The railway board is headed by the cahirman, who has a team of six officers working directly

under him. Apart from this he also has two secretaries working under him, one looking after the

establishment related matters while the other looking after the administration related matters.

Currently this post is held by Mr. J.P. Batra. Given below is a list of officers working under the

chairman.

1. Mr. S.C. Gupta – Member electrical

2. Mr. K.C. Jena – Member staff

3. Mr. R.R. Jaruhar – Member engineering

4. Mr. R.K. Rao – Member mechanical

5. Mr. S.B. Ghosh Dastidar – Member traffic

6. Mr. R. Sivadasan – Finance Commissioner

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CHAPTER 4: INDIAN RAILWAY ZONES

The Indian Railways is divided into sixteen zones each headed by a General Manager (GM) who

reports directly to the Railway Board. The zones are further divided into divisions under the

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control of Divisional Railway Managers (DRM). The divisional officers of engineering,

mechanical, electrical, signal & telecommunication, accounts, personnel, operating, commercial

and safety branches report to the respective Divisional Manager and are in charge of operation

and maintenance of assets. Further down the hierarchy tree are the Station Masters who control

individual stations and the train movement through the track territory under their stations'

administration.

Production units

There are five production units (PUs) each headed by a General Manager (GM), who also report

directly to the Railway Board. These production units are:

1. Chittaranjan Locomotive Works : Chittaranjan

2. Diesel Locomotive Works : Varanasi

3. Integral Coach Factory : Perambur (Near Chennai)

4. Rail Coach Factory : Kapurthala

5. Rail Wheel Factory : Yelahanka (Near Bangalore)

Public Sector Undertakings

Apart from these zones and production units, a number of Public Sector Undertakings (PSU) are

under the administrative control of the ministry of railways. These PSU's are:

1. Indian Railways Catering and Tourism Corporation (IRCTC)

2. Konkan Railway Corporation (KRC)

3. Indian Railway Finance Corporation (IRFC)

4. Mumbai Rail Vikas Corporation (MRVC)

5. Railtel Corporation of India – Telecommunication Networks

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6. RITES Ltd. – Consulting Division of Indian Railways

7. IRCON International Ltd. – Construction Division

8. Rail Vikas Nigam Limited (RVNL)

9. Centre for Railway Information Systems (CRIS)

Other units

Apart from the above mentioned units there are some more units which come directly under the

railway board.

1. North Frontier Railway (Construction) – Headed by a GM

2. Kolkata Metro Railway - Headed by a GM

3. Central Organization for Railway Electrification - Headed by a GM

4. Railway Staff College - Headed by Director General

5. RDSO - Headed by Director General and ex-officio GM

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CHAPTER 5 : FINANCIAL BACKGROUND

Financially, the Indian Railways was moving towards a debt trap. Between 1996 and 2001, its

net revenue receipts (NRR) crashed from Rs 4135 crore to Rs 1,071crore, a fall of 24 per cent

per annum. The fund balance at the end of 1999-00 had reached a low of Rs 149 crores. In what

can be described as its worst years, this period saw three ministers: Mr. Ram Vilas Paswan

(1996-98), Mr. Nitish Kumar (1998-99), Ms. Mamata Banerjee (2000). If the railways was a

listed firm, these worthies would have been on the next train out.

The market share of the railways in carrying freight fell from 89 per cent to 40 per cent between

1951 and 1996, and was expected to fall to 28 per cent by 2011. Its share of passenger traffic will

fall from 68 per cent to 6 per cent in the same period.

The worst falls came when Mr. Nitish Kumar and Ms. Mamata Banerjee were ministers. While

Mr. Nitish Kumar oversaw a fall of 29 per cent, Ms. Mamata Banerjee managed to lower it by

another 28 per cent. The very next year, Mr. Nitish Kumar, in his second term (2001-04) was

able to stem the fall and lowered it by just 6 per cent. Riding that success, Nitish, doubled the

NRR of Rs 4,479 Crore.

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CHAPTER 6: FAIL OF THE HR POLICIES:

Expert Group on Indian Railways/Rakesh Mohan Committee report

As per the report of Expert Group on Indian Railways (also called the Rakesh Mohan Committee

report), submitted in July 2001 (of which the author was a member) which studied the IR for

nearly two years, the Indian Railways considered to be heading towards bankruptcy. The report

stated:

“Today IR is on the verge of a financial crisis... To put it bluntly, the ‘business as usual low

growth’ will rapidly drive IR to fatal bankruptcy, and in sixteen years Government of India

will be saddled with an additional financial liability of over Rs 61,000 crores… On a pure

operating level, IR is in a terminal debt trap.”

Vision 2010 - R.K. Thoopal

In his report called “Vision 2010” submitted to the finance minister Mr. Yashwant Sinha, Mr.

R.K. Thoopal, Officer on Special Duty (OSD), West Central Railway said:

“As things stand to day, unless the central Government or the Indian railways change

their approach to financing and operation of the railway system, there is only darkness

ahead. The present course shall lead the Indian railways inexorably towards decay. The

process will be slow painful and extremely costly. The nation can hardly afford this.”

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CHAPTER 7: THE TURNAROUND

The Minister for Railways (MR), Mr Lalu Prasad, the Chairman and Members of the Railway

Board (RB) were reviewing investments for the XI Five Year Plan in mid July 2006. The total

investment being planned for the eight year time frame (2007-2015) was tentatively in the order

of Rs 350,000 crores. This was a significant increase from the planned Rs 60,000 crores (actual

expected to cross Rs 80,000 crores) in the X Plan period of 2002-07.

This confidence was a result of what the Indian Railways (IR) achieved, not only due to the

rising trend of performance, but also due to the significant growth in the past two years (2004-

06). The fund balances had crossed Rs 12,000 crores. These two years coincided with Mr Lalu

Prasad being at the helm of affairs of the IR, having moved into his position on 23 rd May, 2004.

Mr Lalu Prasad, in his opening remarks of the budget speech of 2006-07 on 24 th February 2006

had said, “Mr. Speaker Sir, I rise to present the Budget Estimates 2006-07 for the Indian

Railways at a point in time when, there has been a historical turnaround in the financial situation

of the Indian Railways.”

The fund balance at the end of 1999-00 had reached a low of Rs 149 crores, improving to Rs

5228 crores by the end of 2003-04 and over Rs 12,000 crores by the end of 2005-06. A 20 year

perspective since 1987-88 gives a bird’s eye view of the performance of IR, in terms of total

earnings, total working expenses, operating ratio and net revenues. The operating ratio (ratio of

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total working expenses (including depreciation and pension, but exclude dividend to GOI) to

total earnings) and net revenues (total earnings less total working expenses, adjusted with

miscellaneous transactions) had reached low levels of performance in 2000-01 (98.3%) and then

had consistently improved till 2005-06 (83.7%). To put this number in perspective, the Indian

Railways is India’s second highest profit maker, after ONGC’s Rs 15,143 crore.

The figures were however not strictly comparable. There had been a decrease in allocations to

the depreciation reserve fund during the late 1990s from over Rs 2000 crores to a low of Rs 1155

crores in 1998-99. This was followed by a gradual increase until 2004-05 to Rs 2700 crores. In

2005-06, the allocation jumped to Rs 3600 crores. Further, there was a change in accounting

practice in 2005-06 when Rs 1615 crores of lease charges to IRFC towards the principal amount

for wagon procurement had been shifted from working expenses to miscellaneous expenditure.

The operating ratio, for the sake of comparability with earlier years, would be 86.6%.

As a recognition of this ‘turnaround,’ some of the world’s biggest asset managers, investment

bankers and consultants including Goldman Sachs, Deutsche Bank, HSBC, Mckinsey etc had

shown interest in working with IR.

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CHAPTER 9: PERFORMANCE OF THE HR POLICIES

The trend of IR’s total earnings and total working expenses are shown in Figure A and Figure B.

The good years were between 1993-94 to 1995-96, after which the expenses caught up with the

revenues until 2000-01, when the net revenue shrunk to a little over Rs 1000 crores. The

situation started improving steadily to reach an actual net revenue of just over Rs 8000 crores in

2005-06, for a total earnings of Rs 54,404 crores. This figure, collated after the financial year

ended 2005-06, has been a significant increased achievement over and above the budgeted and

revised estimates for the same year. The increase in net revenue is attributed significantly due to

better utilization of freight rolling stock.

The budgeted estimate for the year 2006-07, before the actuals for 2005-06 were collated, is total

earnings of nearly Rs 60,000 crores with a surplus of about Rs 7500 crores. The actuals are

expected to be at least 10% higher on earnings and 50% higher on the net revenue.

Total Earnings and Total Working Expenses

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0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

19 88 - 89 89 - 90 90 - 91 91 - 92 92 - 93 93 - 94 94 - 95 95 - 96 96 - 97 97 - 98 98 - 99 99 - 00 00 - 01 01 - 02 02 - 03 03 - 04 04 - 05 05 - 06 06 - 07

Rs

cr or e

Total Earnings Total Working Expenses

07 - 08

02468

101214161820222426

89-

90 90-

91

91-9

2

92-9

3 93 - 94 94-

95 95-

96 96-

97 97-

98 98-

99 99-

00 00 - 01 01-

02 02-

03 03 - 04 04-

05 05-

06 06-

07

Pe

re ce nt

Total Earnings Total Working Expenses

07 - 08

Growth Rate for Total Earnings and Total Working Expenses

[Source: MOR, Various Years-a; MOR, 2006-a]

Based on the ratio of total working expenses to total earnings, a parameter called the operating

ratio is assessed as a percentage. Figure C presents the operating ratio since 1987-88.

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92.0

89.5

87.4

82.5

86.2

90.9

93.3

98.3

96.0

83.8

92.193.1

84.3

91.0

92.393.3

82.682.9

91.592.5

80

82

84

86

88

90

92

94

96

98

100

19 88 - 89 89 - 90 90 - 91 91 - 92 92-

93 93 - 94 94-

95 95-

96

96-9

7 97-

98 98-

99 99 - 00 00-

01 01-

02

02-0

3 03 - 0404

-05 05-

06 06-

07 07-

08

Pe

rc en t

The operating ratio had reached a peak of 98.3 in 2000-01, reflecting a relatively poor

performance. After that, it had reduced year on year till 91.0 in 2004-05. It dropped sharply to

83.8 in 2005-06. (As stated above, this was both due to better utilization of rolling stock and

changes in accounting practice.)

The IR is targeting an improved operating ratio of 77 for 2006-07. This means that it aims to earn

Re 1 by spending 77 paise in 2006-07, against 83.8 paise in the last financial year [Business Line,

May 6, 2006]

Operating Ratio

The net revenue receipts are then appropriated for dividends payable to the government of India

and into various capital funds. Figure D gives the dividends paid out of the net revenues, including

when the payment was due to deferred dividends. As can be seen, the deferred dividend payments

have happened in the “good” years, which have followed the “bad” years when the IR would have

sought deferment of the dividend.

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723 737982 1,113

1,5411,955

3,102

3,8084,135

3,6253,024

2,1412,736

1,071

2,338

3,830

4,478

5,274

8,005

7,465

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

19 88 - 89 88 - 89 89 - 90 90 - 91 91 - 92 92 - 93 93 - 94 94 - 95 95 - 96 96 - 97 97 - 98 98 - 99 99 - 00 00 - 01 01 - 02 02 - 03 03 - 04 04 - 05 05 - 06 00 6- 07

)

Rs

cr or e

Deferred Dividend Current Dividend Excess/Shortfall

The deferred dividend liability from 1978-79 onwards aggregated to Rs 428.43 crore by end of

March, 1990. The amount was cleared by 1992-93. The dividend payable in 2000-01 and 2001-02

worked out to be Rs 2,131 crore and 2,337 crore respectively, out of which Rs 1823 crore and Rs

1000 crore respectively have been transferred to a deferred dividend liability account. This

amount is expected to be cleared by 2006-07.

Net Revenue Receipts

[Source: MOR, Various Years-a; MOR, 2006-a]

Analysis of performance

When we talk about the ‘turnaround,’ the first question that comes to our minds is “was it really

a turnaround?” An analysis of the performance of the Indian railways would answer this question

The total earnings in 2005-06 increased by Rs 7121 crores, a 15.0% growth with respect to 2004-

05. The total earnings in 2004-05 increased by Rs 4465 crores, a 10.4% growth with respect to

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2003-04. Similar figures for the earlier years since 2001-02 ranged between 4.5% and 8.5% with

respect to the previous year. The total working expenses plus the lease charges towards principal

payments in 2005-06 increased by Rs 4431 crores, a 10.4% rise with respect to 2004-05. The

total working expenses in 2004-05 increased by Rs 3277 crores, an 8.3% rise with respect to

2003-04. Similar figures for the earlier years since 2001-02 ranged between 3.8% and 4.8% with

respect to the previous year.

As a consequence of the total earnings and total working expenses, the net revenue reached a

record of Rs 8005 crores in 2005-06, following the Rs 5274 crores in 2004-05. This was a record

increase of Rs 2731 crores, reflecting a 52% increase in net revenues. Earlier, until 2004-05,

there had been a steady climb from the low of Rs 1071 crores in 2000-01. The internal

generation of cash surplus including provision for depreciation and Special Railway Safety Fund

(SRSF) reached an historic level of Rs.13,068 crores for 2005-06, following the Rs 7603 crores

in 2004-05.

The essence of the ‘turnaround’ was in the fact that:

(i) Total revenues increased by a significant percentage in the last two years.

(ii) The net revenues continued a robust upward trend.

This justified the principles that “freight business is a play on volumes,” and that “passenger

business is a play on volumes and quality” which were behind various focused initiatives

undertaken by the MR, and driven by the RB. Further, the initiatives were pursued in a manner

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that results could be obtained as quickly as possible, yet laying the foundation for continued

performance improvements.

An interesting aspect was that the total earnings in 2005-06 had gone up by a record Rs 3523

crores with respect to the budget estimates (BE) for the year. While this could raise questions

about the budgeting process, for the year 2005-06 it is more of a consequence of initiatives that

were put in place during the year, with results coming in the same year.

CHAPTER 10: THE INDIAN RAILWAYS HR POLICIES

Recruitment

The recruitment to the cadre is done through the Civil Services Examination. The first

recruitment to the cadre was done by UPSC in the year 1980.Prior to that some officers of sister

cadres had joined the service on option basis. The present advisors are from such groups. The list

of officers of this cadre can be seen in their web site.

The selection consisting of written and viva-voce test which is conducted by the Union Public

Service Commission (UPSC) of India along with other Group A Services

like IAS and IPS, IRS etc.

Role and Function

IRPS officers man the personnel department at Ministry, Zonal railway and divisional levels

including the railway production units and workshops. While other services in the railway are

concerned with the operational or material problems, the Personnel Service handles the human

resource aspect. Importance of the service lies in looking at the problem not only from the

government’s point of view but paying attention to the job oriented professional as well as

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personal needs of the employees as the effectiveness and efficiency of the administration mainly

depends on the nature of personnel it has.

The main functions and responsibility of Personnel Officers in the railway is to arrange

recruitment, training of staff, promotion, demotion, transfers, disciplinary actions, retirement,

settlement, selection etc. The personnel branch actually deals with the employee from the day he

joins the service or even before which is not over even on his retirement.

Dealing with provisions of various laws and acts such as Industrial dispute Act, Factory

Act, Workman Compensation Act, Payment of Wages, Minimum Wages and their

implementation in the railways is another responsibility. The interpretation of rules and

orders is also done in this branch.

All matters concerning the welfare of the staff such as provision of residential

accommodation, canteens, holiday homes, consumer societies, schools, clubs, institutes,

hospitals etc. also comes within its purview. Railway is one of the model employers with

a large number of welfare measures being implemented to look after the staff and their

families. Personnel officer is also the welfare officer in the railways.

Being responsible for the service, as well as personal issues of the employees, the

personnel department works in close coordination with all other departments in the

railways by functioning as consultant and adviser.

In a nutshell, most effective and efficient utilization of the vast human resource that railway have

is entrusted to this department.

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Organisation:

At the apex level of the Ministry of Railways,Government of India,the Railway Board Member

Staff is the highest level post, who also happens to be the Ex-officio Secretary to Government of

India.Currently he is assisted by two Additional members, additionsl member staff and additional

member i r ), who are in the rank of Additional Secretary.Below them are a group of Executive

Directors,Directors,Joint Directors and Deputy Directors who work at Railway Board level who

are either drawn from the service or from the railway board secretariat service.The present

Member Staff is a non-IRPS officer.

Similarly at the 16 Zonal Railway level the HR department or Personnel department as they call

in the railways, is headed by a Chief Personnel Officer or CPO.CPOs are also posted in the

major production units/factories of Indian Railways.The role of Personnel Branch as it is called

all over encompasses all those which are in any Human Resources Management department of

any organisation including those of dealing with Labour Relations and Labour Legislations.

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CHAPTER 10: Critical Appraisal of the Strategies

Freight

The strategy of higher volumes has done well for the railways. Increasing the axle load has been

a major driver for this. The focus on improving wagon turnaround has been a key support for

this. Apart from this relaxing of the examination norms for improving wagon turnaround has also

played a very important role.

The tariff strategy in the 90s had not recognised the market reality, especially as a consequence

of the liberalisation. Corrective strategies in terms of rationalisation of freight classes had begun

from 2002-03, with a reduction from 59 classes to 32 in one year. These strategies had continued

over the past two years, bringing down the number of classes to 18. More significantly, in the

past two years, the approach to freight tariffs had recognised the market scenario and price

elasticity of demand where in (i) IR has a competitive advantage in the generally ‘low rated’ bulk

raw materials and can afford higher rates and (ii) IR faces tough competition in the generally

‘high rated’ finished goods and cannot afford higher rates. Exhibits 2 and 4 provide perspectives

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on the tariff strategies and shares of major commodities. The net result has been an increase in

volumes and revenues, and more importantly an increase in market share. Cement, coal, and iron

and steel are examples. POL is a commodity where freight rates were reduced and there was gain

in lead. For an organisation, generally charged with losing market share, the ‘turnaround’ in

regaining market share especially in ‘high rated’ commodities is indeed commendable.

On the tariff strategy, it is important that the stance that tariffs have not been increased be

underplayed, since tariffs have actually been increased, and significantly so in the case of iron

ore, by reclassification. However, it would appear that the tariff increase had been “accepted” by

the customers, primarily because iron ore selling rates in the international markets had gone up

significantly (88.9% increase in 2004-05 with respect to 2003-04, and 23.5% increase in 2005-06

with respect to 2004-05 [Business Line, July 26, 2005 and FIMI, 2006]).

While the higher volumes and market oriented tariffs have increased revenues under the scenario

of economic growth, the issue of customer oriented strategy development is still in question. One

of the important lacunae in IR is its ability to listen to the customers. In spite of various

initiatives, the approach is essentially supply driven. While the important customers have

appreciated the recent initiatives in increasing IR’s traffic handling ability, they have been

unhappy with the unilateral approach. Concerns like changes in rates, demurrage free hours,

loadability of wagons, etc have been repeatedly voiced.

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CHAPTER 11: Problem Areas and Recommendations

Cleanliness:-

This is one area where the Indian Railways has always lagged behind. Even though the Indian

Railways is the third largest railways in the world, yet the cleanliness standard maintained by

them is very poor. The poor economic condition of the Indian Railways was often held

responsible for this, but even today, when the Indian Railways has reached an all time high level

of earnings the scenario hasn’t changed.

Reasons

The main reason for the poor standard of cleanliness and hygiene is that this job is performed by

multiple agencies.

The cleaning of the railway tracks is done by the Civil engineering department

The cleaning of the railway stations and on board cleaning is done by IRCTC.

The cleaning of the coaches is done by the mechanical department

Recommendations

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The job of cleaning should be completely taken over by the IRCTC which is a public sector unit

i.e. IRCTC should look after the cleaning of the railway stations, railway tracks, railway coaches

as well as the onboard cleaning. The IRCTC is currently looking after the cleaning of railway

stations and the onboard cleaning and has been doing a good job. Apart from this cleaning is

basically a routine maintenance job, hence it should be looked after by a body like the IRCTC

which is meant to look after routine maintenance jobs. In fact this would also enable the

mechanical and the civil engineering departments to focus of the primary jobs.

Parcel Business :-

A passenger train has 16 tons of capacity for carrying parcel. The IR has an annual parcel

carrying capacity of around 35 mt, of which the current utilization is 5 mt (14%). This generates

a revenue of about Rs 500 crore (Table A). The cost of haulage and parcel office staff is Rs 1800

crore. Thus, the parcel segment is making a loss of Rs 1300 crore per annum.

Reasons

The main reasons for poor performance in this sector is that working of this unit is highly

centralized. Even though the GM’s have been given the powers to fix up leases, they can do it

only if they get a bid which is 20% higher than the last year’s bid.

Recommendations

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The working of the parcel unit of the Indian Railways should be decentralized to some extent.

The GM’s should be given more powers. In addition to this the DRM’s should also be given

powers of fixing up leases.

Earnings from Advertisements :-

Even though the earnings from advertisements has increased drastically over the last two years

yet there is a lot of untapped potential in this field, especially in the sub-urban sector.

Reasons

This is a media related sector and can be managed best by media professionals, while the Indian

Railways lacks the presence of media professionals.

Recommendations

The Indian Railways should hire a media resource agency which offers it a complete media

solution.

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CHAPTER 13: CONCULSION

The turnaround of the Indian Railways has come at a time when it was needed the most. It has

come at a time when the Indian Railways was heading towards a complete bankruptcy and was

declared by experts as an organization whose survival was under threat.

In the last two years there has been an overall improvement in the performance of the Indian

Railways. A very professional approach on the part of the Railway Minister, the Railway Board

and employees of the Indian Railways has enabled the Indian Railways attain this feat.

The most remarkable thing about this turnaround has been that the same officers, staff, gangmen

etc. who have been working in this organization for years and have always been a part of this

loss making organization are the ones who have brought about this magical turnaround.

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The fact that there have been no increase in the passenger fares and the freight charges yet the

Indian Railways has managed to an all time high level of performance is really commendable. In

addition to this the Indian Railways has not discontinued or modified any discount/rebate offered

to senior citizens, students, freedom fighters, defense personnel etc as a part of its social

responsibility activity.

When Laloo Ji took over, the Indian Railways was a loss-making organization. The Rakesh

Mohan Committee (headed by Rakesh Mohan, Secretary, Department of Economic Affairs) had

termed it a 'white elephant' and predicted that it was destined to hit Rs 61,000 crore (Rs 610

billion) in bankruptcy by 2015.

BIBILOGRAPHY:

BOOKS:

Human Human Resource Management (9th Edition) by Gary Dessler

Managing Human Resources by George W. Bohlander, Scott A. Snell, Hardcover

Human Resources Management by Wendell L. French

SITES:

www.irctc.co.in

google.com

wikipedia.com

indianrailwys.in

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