Professional Documents
Culture Documents
Submitted To: Mr. Haroon Waheed
Submitted To: Mr. Haroon Waheed
TABLE OF CONTENTS S. # 1.
1.1 1.2 1.3 1.4
Topics Executive Summary Pa ista! "ai#$ays % t&e #i'e #i!e o' t&e cou!try
History At Present Organizational Structure Human Resource
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2.
2.1 2.2 2.3
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3.1 3.2 3.3 3.4
E!teri!g , Co!tracti!g
Organizational &ssues 'ey (lients O% Process )ime * Resources
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4.1 4.2 4.3 4.4
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,.1 ,.2 ,.3 ,.4 ,.,
Actio! P#a!!i!g
Structural %esign %o-nsizing Reengineering Alliance &ntervention .et-or# &ntervention
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Co!c#usio! Bi)#iograp&y
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E2EC3T45E S366A"7
Pa#istan Rail-ays /PR0 is the state o-ne! rail-ay com+any of Pa#istan. &t is a large organization un!er the a!ministration of "inistry of Rail-ays. Pa#istan Rail-ays +rovi!es an im+ortant mo!e of trans+ortation in the farthest corners of the country an! 1rings them closer for 1usiness2 sightseeing2 +ilgrimage an! e!ucation. He current (hairman is Ra3a Shahi! Hussain. Over the +ast many years2 Pa#istan Rail-ays has 1een facing +ro1lems an! is noon the verge of 1an#ru+tcy. 4ith 1u!get !eficit of 1illions2 ero!ing mar#et share an! corru+tion scan!als2 the future of Pa#istan Rail-ays 5 once the life line of the country 5 is grim. At the time of in!e+en!ence2 1oth &n!ia an! Pa#istan2 inherite! the Rail-ay .et-or# lai! !o-n 1y $ritish. 4hile &n!ian Rail-ays has emerge! as a highly +rofita1le organization2 Pa#istan Rail-ays is struggling to #ee+ itself running. )his re+ort summarizes ho- organization !evelo+ment can hel+ Pa#istan Rail-ays revam+ its image an! goo!-ill. &t is 1ase! on facts an! hy+othetical situations create! 1y the grou+ mem1ers to evaluate the a++lica1ility of O% interventions. He !ata is collecte! from various sources inclu!ing 1oo#s2 ne-s+a+er articles an! internet. )he re+ort +rovi!es intro!uction of Pa#istan Rail-ays2 its history2 organizational structure -hich is then follo-e! 1y ho- the conce+ts of entering an! contracting can 1e a++lie! to this case. %iagnosis of the organization has 1een !one -ith the hel+ of !ata collecte! an! hy+othetical situations. $ase! on the !iagnosis2 O% interventions have 1een suggeste! for Pa#istan rail-ays -hich inclu!e techno6 structural interventions an! colla1orative interventions.
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1.2 At Prese!t
At +resent Pa#istan Rail-ay com+rises of :21<3 route #m2 12212 stations an! 42 train halts. &t has a fleet of ,4< !iesel electric locomotives2 2,2:1, -agons an! 22=77 +assenger coaches. "aintenance is +rovi!e! 1y three ma3or locomotive -or#sho+s an! thirty6five smaller -or#sho+s. Signaling facilities at im+ortant stations are trac# circulate! -ithin interloc#ing limits. "ost routes have AH8 ra!io coverage for communication 1et-een train !is+atchers an! trains. )ele+hone (ommunication is over -ire lines an! micro-ave. Pa#istan Rail-ays is multi system an! o+erates on three gauges2 i.e. 1roa! gauge2 meter6gauge an! narrogauge.
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)he 1iggest +ro1lem for Pa#istan Rail-ays is the soaring 1u!get !eficit. Although rail-ays are tra!itionally not e9+ecte! to earn +rofit. Ho-ever2 it is legitimate to e9+ect from rail-ays to meet at least o+erational e9+enses. )o!ay Pa#istan Rail-ays -ith Rs.334 1illion lia1ilities is at the verge of 1an#ru+tcy 1ecause of corru+tion2 shortage of locomotives an! losses incurre! !ue to the running e9+enses. Accor!ing to one re+ort Rs 21 1illion is s+ent on -ages an! +ensions every month leaving the !e+artment less or nothing for maintenance of +o-er an! rolling stoc#s. &n the light of a1ove +ro1lems the Rail-ay $oar! !eci!e! to hire e9ternal O% consultants to !esign interventions that can hel+ in turning aroun! the organization into a successful commercial entity.
(. ENTE"4N= , CONT"ACT4N=
A grou+ of four O% +ractitioners has 1een a++roache! 1y the Rail-ay $oar! to hel+ Pa#istan Rail-ays recover from the verge of 1an#ru+tcy. As O% consultants for Pa#istan Rail-ays /PR02 the first an! foremost tas# for us is to un!erstan! the current structure of the organization an! the issues. A meeting -ith the (hairman of Pa#istan Rail-ays2 Ra3a Shahi! Hussain an! other mem1ers of Rail-ay $oar! -as con!ucte! to !iscuss the issues.
(.( O/ Process
Organization Development & Change Page ;
)o fi9 the +ro1lems face! 1y Pa#istan Rail-ays /PR02 -e recommen! the +rocess -ith follo-ing #ey ste+sB 6 6 Se#ecti!g a *esig! team< A team of :61= in!ivi!uals -ill 1e selecte! -hich -ill inclu!e #ey +olicy ma#ers for Pa#istan Rail-ays2 re+resentatives from various functional areas of the organization an! -or#er?s unions. /iag!osi!g< Once the team is selecte! a 3oint !iagnosis of the organization -ill 1e con!ucte! -hich -ill inclu!e un!erstan!ing organization?s current strength an! -ea#nesses2 gro-th o++ortunities2 organization culture an! values etc. Actio! P#a!!i!g< )he first #ey out+ut of the team is a , year action +lan that !escri1es -here Pa#istan Rail-ay shoul! move to2 #ey activities an! milestones2 assigne! res+onsi1ilitiesDaccounta1ilities for those activities2 an! contingenciesDassum+tions that nee! to 1e monitore!. 4mp#eme!tatio!> 6o!itori!g , Eva#uatio!< As the +lan is im+lemente!2 ne- information2 changes in the environment an! other issues al-ays arise that nee! a!3ustment. &n this +hase the O% consultants along -ith the !esign team -ill monitor the im+lementations an! collect fee!1ac# to evaluate -hether action +lan is on trac# or not an! -ill fi9 any !eviations. Also !esign team -ill con!uct formal evaluation +rocesses an! !iscuss their learning a1out organization structure an! change.
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)he !ata collecte! hel+ us in i!entifying the root causes 1ehin! the +ro1lems face! 1y Pa#istan rail-ays. Since the overall organization is facing +ro1lems2 the !iagnosis is carrie! out at organizational level. )he fin!ings of !iagnosis are !iscusse! in !etaile! as 1elo-B
..2 6isma!ageme!t
(urrently Pa#istan Rail-ays is facing acute shortage of locomotives an! s+are +arts for maintenance of out of service locomotives. Since in!e+en!ence little has 1een !one to e9+an! the rail-ay net-or# in Pa#istan. As +er the re+orts com+ile! 1y the !esign team2 Pa#istan Rail-ays nee! 4= 5 ,= locomotives annually to run its o+erations effectively. Ho-ever2 !uring the +ast t-o !eca!es only 1==
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locomotives have 1een a!!e!. )he management of PR has faile! to generate revenues through use of assets li#e lan!2 locomotive factory2 carriage factory etc. )he focus of Rail-ay officials is on getting ne- locomotives -hile ignoring the im+rovement in o+erations an! maintenance of e9isting locomotives. )he +lans to change 1roa! gauge into stan!ar! gauge at this stage are not 3ust costly 1ut also unnecessary.
... Corruptio!
(orru+tion is the 1iggest +ro1lem Pa#istan Rail-ays is facing to!ay. )he Rail-ay %e+artment has 1een suffering losses since years long. (ontractor system is one of the causes of such losses. "oreover2 there are enormous irregularities in local +urchases. )he num1er of officers? ca!re has increase! consi!era1ly since 17;;2 mostly !ue to +olitical a++ointments. &t has 1een reveale! that the crises are self generate! creating a s+ace for more corru+tion an! PRA(S6Pa#istan Rail-ays A!visory (ommute Services is res+onsi1le for this mess. Selective services have 1een +rivatize! 1y allotting its contract to !ifferent +rivate +arties to o+erate those +rivatize! trains. &ronically the contract has 1een a-ar!e! only for tic#eting an! li#e 1uss con!uctors those +rivate firms after selling out the tic#et !e+osits +ayments into the Rail-ays account. As +er agreement after
Organization Development & Change Page 1=
!e!ucting its commission the contractors are legally 1oun! to !e+osit the fun!s into the Rail-ay account 1ut !ue to the ne9uses 1et-een Rail-ays 1osses an! +rivate contractors !e+osit the fun!s in +rivate accounts. )his illegal +ractice has confronte! Rail-ays -ith financial crunch -here as the officials of Rail-ays are least 1othere! for the interest of Pa#istan. Some Rail-ays circles insist that Pa#istan Rail-ays is still a via1le an! +rogressive organization2 +rovi!e! the ram+ant corru+tion coul! 1e controlle!. &n short Pa#istan Rail-ays is a classic e9am+le of 1a! governance2 +oor +olicies2 corru+tion an! mismanagement.
+. ACT4ON PLANN4N=
After a careful !iagnosis2 the results -ere fee!1ac# to the main clients. Several meetings -ere con!ucte! -ith #ey clients to !etermine the ty+e of O% interventions that -ill most a++ro+riately suit the nee!s of Pa#istan Rail-ays. )he clients an! consultants 3ointly agree that Pa#istan Rail-ays nee! a mi9ture of techno6structural an! colla1orative interventions to recover from the current crisis.
)he structure nee!s to 1e revam+e! into a more leaner an! fle9i1le one. A com1ination of !ivisional an! net-or# structure -ill 1e most a++ro+riate for Pa#istan rail-ays. )he PR management can retain the structure 1ase! on current !ivisions an! create a net-or# of these !ivisions for 1etter management of o+erations an! resources.
+.2 /o$!si;i!g
)he Pa#istan Rail-ays is an over staffe! organization. Political a++ointments over the years have a!!e! to the +ro1lem an! are the ma3or reason 1ehin! organization?s financial trou1les. %e+artments li#e Rail-ay Police2 Stores *
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Purchase nee! to 1e a1olishe!. Other over staffe! !e+artments li#e Au!it * Accounts2 Ceneral A!ministration etc. nee! !rastic cuts in -or#force. 8or successful im+lementation of !o-nsizing2 the PR management must follo- the follo-ing ste+sB 6 6 6 6 (larify organization?s strategy to its mem1ers an! +rovi!e am+le o++ortunities for them to voice their concerns as# @uestions an! o1tain counseling. &n case of PR2 the structural change -ill hel+ in eliminating unnecessary layers2 merge units an! non +ro!uctive staff can 1e re!uce! through layoffs an! 1uyout +ac#ages. 4hile im+lementing metho!s of !o-nsizing2 management shoul! use a to+ !o-n a++roach. &t shoul! target inefficient an! high cost areas. 'ee+ +eo+le informe! throughout the +rocess a1out restructuring activities. A!!ress the nee!s of survivors an! those -ho leave to hel+ them overcome the stress of structural changes.
+.( "ee!gi!eeri!g
Pa#istan Rail-ays have great +otential for gro-th. Ho-ever2 the current +rocess an! technology !oes not +rovi!e much room for im+lementing gro-th strategies. Pa#istan Rail-ays can im+rove the +erformance of its various functions an! !e+artment through +ro+er use of information technology. )he areas -here information technology can +lay a vital role inclu!eB 6 6 6 6 6 6 6 Seat Reservations 8reight "anagement Asset "anagement )rac# "anagement Rolling stoc# inventory lectric $illing )imeta1le
%uring !iagnosis many mem1ers of Pa#istan Rail-ays suggeste! that the organization shoul! 1e +rivatize! li#e P)(L to im+rove +erformance efficiency. Ho-ever2 research suggeste! that #ey state o-ne! enter+rises li#e Rail-ays2 Airlines2 an! Roa! )rans+ort etc. shoul! remaine! +u1lically o-ne! for the overall 1enefit of the customers. Ho-ever2 Pa#istan Rail-ays can +rivatize some of its units li#e )he Locomotive 8actory2 )he (arriage 8actory an! other large manufacturing units.
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-. CONCL3S4ON
4ith gro-ing interest in the !evelo+ment of )rans6Asian rail lin#s2 one might thin# that Pa#istan Rail-ays has a +romising future. Ho-ever2 the Rail-ay "inistry2 the Rail-ay $oar! an! all the relevant agencies have to +lay their role to return Pa#istan Rail-ays to its glorious !ays. $efore allocating any further fun!s to 1ail out the organization2 government shoul! force the management to un!ergo vast structural changes as recommen!e! 1y O% consultants in this re+ort. )hese changes can 1e im+lemente! -ithin a +erio! of 3 5 , years an! once the changes have 1een ma!e an! evaluate! then ne- investment +lans can 1e ma!e.
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B4BL4O="AP:7
6 Organization %evelo+ment * (hange 5 :th !ition 1y (ummings * 4orley. 6 ---.+a#rail.com 6 ---.rail-aygazette.com 6 ---.-i#i+e!ia.com 6 ---.+a#istaniat.com 6 Article H(orru+tion in Pa#istan Rail-aysI +u1lishe! in Pu#htoonistan Cazette on 8ri!ay2 2< .ovem1er2 2=1= 6 htt+BDD+a#1stanfirst.comD2=11=22,323<D+a#istanDeconomyDfi9ing6 +a#istan6rail-ays.html 6 Aarious articles an! e!itorials +u1lishe! in %aily %a-n an! )he .ation from >uly 2=1= 5 "arch 2=11 6 htt+BDD---.+rivatisation.gov.+#D)rans+ortDPa#istanF2=Rail-ays.htm
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