CHAPTER 1 INTRODUCTION
OF THE STUDY
The beginning of the present study
states about the history of Indian Railways , conceptual framework of Human Resource
Management (HRM), overview of Human Resource Management in public and private
companies, orientation of HRM practices in Indian railways etc. It also gives a
brief description about problem statement, objectives of the research, research
methodology, and significance of this research and further explores important
findings of the study.
1.1 ORIENTATION TO THE STUDY
Indian Railways (IR) is a great national
asset. The Indian Railways (IR) is the second largest system in the world under
a single management and 7th largest employer in the world. The first
Railway line in India ran between Boribunder
(Bombay) and Thana was opened to traffic on 16th April, 1853, just 28years after the World’s first train that
ran successful between Stockton and Darlington in England in
1825. Indian Railways is a mammoth organization carrying 140 lakh passengers
and 14 lakh tonne of freight daily, and employs more than 15 lakh staff1. Though,
IR in last two decades has remained under-invested whereas the road sector has
witnessed a surge in investments. Statistics have been shown in the below table
1.1 Share of Transport Sector in
Overall GDP (%)
Overall share of transport sector in
overall GDP has remained stable from 2008-09 to 2012-13. Road transport plays
an important part in the overall GDP, railways comes after the road transport. The
share of IR in overall GDP has been static at 1% and has, in fact, gone down to
0.9% in 2012-132.
Although the Traffic Density on IR is quite high as per
of India, Ministry of Railways (2015), “Indian
Railways: Lifeline of the Nation” Retrieved form
1.1 Traffic Density
The above graph 1.1 portrays the traffic
density of India in comparison with some top class countries’ traffic
statistics. After China and Russia, India is considered third largest country
in terms of traffic density. The Indian Railways continuously increases growth
of the network is order to commensurate with the growth of the traffic.
Any industry or organizations succeed,
or fail, based on the quality and effectiveness of their employees. The success of India’s railway industry majorly
depends upon the employees working under its roof. Currently railway industry
of India accounts for 1.334 million
committed and dedicated employees3.
The core aim of Human Resource Management is
to attain the organization effectiveness that can only be achieved with the
satisfaction of employees working in the sector.
Today all over the
world companies have realized the importance of Human Resource management
practices and its direct relation with productivity. In a huge organization
like Indian Railways Human Resource management has to be kept on top
priorities. Humans are the most complex of all organisms on the earth. Managing
humans is not an easy task. The core
competency of any organization depends upon its human resources. Human Resource
management is an important part in any organization. Companies are coming up
with more and more innovative methods of Human Resource management practices.
Human Resource management involves various activities from recruitment,
selection, training, appraisal, welfare, promotion, compensation and
retirement. Human Resources are the art of managing people. The major
challenges in front of an Indian Railways Human Resources manager are to
recruit and attract new talented employees, to retain them, come up with
competitive packages, working on the welfare programmes for the employees,
managing workforce complexities, designing appraisal, etc. Indian Railways is
the largest sector employing lakhs of employees. The below chart explains the
number of employees increased over the years in the Indian railways.
* No. of Employees in Thousands (000)’
Source: Statistical Summary: Indian Railways, Retrieved
1.2: Number of Employees working in Indian Railways
Therefore analyzing the satisfaction
level of employees, working in the important sector of the country which is the
major source of economic growth, seems very crucial. The railway industry of
India needs to know and understand what their employees feel about working in
this sector? What is their level of satisfaction? Employee satisfaction is a
kind of survey, followed in HR practices, conducted by every organization or
business to analyze and assess the company’s HR performance. An organization
can find out if its employees’ satisfaction level was excellent, good,
satisfactory or poor with the help of the stated method, which help them to
revise and develop their HR practices.
The present research tries to state the employee
satisfaction level working in the railway industry of India. It further tries
to examine the socio-economic measures like wage structure, job satisfaction
level and examine the performance appraisal and employer employee relationship in
Indian Railways and also suggest measures in improving the present system of
Human Resource management in Indian Railways.
sector industry is growing day by day. It is the largest industry in India and
the important reason for the economic growth of the country. Gross Value Added
(GVA) at current prices for services sector is estimated at 61.18 lakh crore
INR in 2014-15. Services sector accounts for 52.97% of total India’s GVA of
115.50 lakh crore Indian rupees4. Transport
is one of the service sectors in India. Indian Railways is the life line of
India. The total approximate earnings of Indian Railways on
originating basis during FY2014-15 were Rs 157,880 crore (US$ 23.68 billion)
compared to Rs 140,761 crore (US$ 21.11 billion) during the same period last
year, registering an increase of 12.16 per cent. The total approximate earnings
from goods during fiscal 2014-15 were Rs 107,074.79 crore (US$ 16.06 billion)
compared to Rs 94,955.89 crore (US$ 14.24 billion) during the same period last
year, registering an increase of 12.76 per cent5.Thus railway industry is
among the world’s largest service industry.
OF INDIAN RAILWAYS
This section would portray the history of
world’s largest rail network i.e. Indian Railways before Independence and after
Railways Before Independence
Railways were first started in 1825 in
England and thereafter in 1829 in France, and in 1930 in America. The railways in India are the
largest rail web in Asia and the world’s second largest under one management.
With a huge workforce of about 1.65 million, it runs some 11,000 trains every
day, including 7,000 passenger trains.6
The tale of how railway communication gained foothold in India, where the
locomotive was once considered as a “fire-spitting demon”, is indeed an
interesting one. It was started when Railways were first started in 1825 in
England and thereafter in 1829 in France, and in 1930 in America. Cotton was produced in various parts of the Indian sub-continent and it
took days to bring it to the nearest port to transport it to England through
ships, the only major means of international communication then. The British
then had to build a link from the hinterland to India’s major ports for quicker
transport of cotton and other goods as demand soared. This expedited matters
for the British to introduce a railway in India.
British also felt that organising and dispersing the growing native population
faster deployment of troops could be better handled by a railway. As early as
1843, Lord Dalhousie had first conceived the possibility of opening up of India
by means of railway communication. He had proposed to link the three ports of
Bombay, Calcutta and Madras by a railway.
Formation of First Railway Company Great
Indian Peninsular Company
bill for incorporation of first railway company, the Great Indian Peninsular
Railway Company G.I.P.R was presented twice in March 1847 and later in 1849
before the British parliament. In March 1847 the East India Company the than
ruler opposed the bill on specific clauses and asked for withdrawal of the
prolonged till 1849 when Lord Dalhousie,
came into picture backed up with his experience in railway matters in England,
took charge as the Governor-General of
India. With this the act to incorporate the Great Indian Peninsula Railway came
into being on August 1, 1849. The original contract made on August 17, 1849,
between the East India Company and the Great Indian Peninsula Railway stated
that the capital of the GIP Company shall be 5 lakh pounds, but can be
subsequently increased to one million pounds in case the railway line has to be
extended beyond Callian (Kalyan) and across the Thull and Bhor Ghats. The
railway line has been referred to as an “Experimental line of Railway”
throughout the contract.8 Sir Jamsetjee Jejeebhoy & Hon.
Jaganath Shunkerseth (known as Nana Shankarsheth) formed the Indian Railway
Association. Ultimately, the association was integrated into the Great Indian
Peninsula Railway. India’s first ever train ran for a distance of 21 miles
(33.8 km) between Bombay (Mumbai) and Tannah (Thane). The journey took
approximately 45 minutes. The importance of the day can be gauged from
the fact the Bombay government declared the day as a public holiday. The train,
hauled by three engines — Sindh, Sahib and Sultan — carried as many as 400
passengers in its 14 coaches on its debut run. Indian Railways, which had a modest beginning in 1853, has since then
been an integral part of the nation — a network that has held together a
population of one billion.9 A self-propelled social
welfare system that has become the lifeline of a nation, Indian Railways has
woven a sub-continent together and brought to life the concept of a united
India. British engineer, Robert Maitland Brereton, was
responsible for the expansion of the railways from 1857 onwards.
Indian Railway Company
The East Indian Railway Company, later
known as the East Indian Railway (EIR), introduced railways to
eastern and northern India. The company was established in 1 June 1845 in London by a deed of settlement with a capital of £4,000,000,
largely raised in London. Calcutta, the then capital
of India, on the western coast of the sub-continent was also in the race to be
first to introduce railway into India. The survey from Calcutta to Delhi for
the East Indian Railway was carried out during 1945-46. But the construction of
railway line from Howrah to Raniganj was sanctioned only after three years.
line was completed by 1864. The Allahabad-Jabalpur branch line of the East
Indian Railway opened in June 1867. Brereton was responsible for linking this
with the Great Indian Peninsula Railway, resulting in a combined network of
6,400 km (4,000 mi). Hence it became possible to travel directly from Bombay to
Calcutta via Allahabad.
the south, the Madras Railway Company was formed in London as early as July 8,
1845. The shareholders held a general body meeting in February 1846 to
construct a railway line from Madras to Arcot , known as Wallajah Nagar. But
matters were delayed and the actual construction begun on June 9, 1853. The
first train between Royapuram and Wallajah Nagar steamed out on June 26,1856.
The Bangalore section was opened an August 1, 1864. Railway lines to Nagari,
Raichur, Bellary were completed subsequently.10
Bombay-Baroda and Central India Railway
The Bombay, Baroda and Central India Railway (BB&CI) was a company incorporated
in 1855 for the construction of railway line between Bombay and Vadodara in India. On the 3rd of November, 1854, the Governor-General, Lord
Dalhousie, sanctioned the construction of the sections Broach, and Baroda, to Ahmedabad, leaving the
remainder of the scheme for future decision, and the work to be commenced at Bombay. Construction commenced in 1855 and began work on track from Baroda to Surat. By 1865, the Bombay-Surat-Baroda-Ahmadabad route was complete; in 1867, the Virar -Bombay Backbay suburban
service commenced with one train in each direction each day. In 1871, track age
was 300 miles (480km).11
The Scindia Railway
Surveys between Indore and Neemuch started long back in 1871-72 when the plan
and estimates for the whole project was submitted to the Government of India in
1872-73. The Maharaja of Scindia agreed to grant a loan of Rs. 75 lakhs at 4
per cent per annum interest for the project and the railway was renamed the
Scindia-Neemuch Railway. It also included a branch line to Ujjain from Indore.
The Indore–Ujjain branch line was opened in August 1876 and the line was
completed in 1879-801213.
The Scindia-Neemuch Railway; the first
section was opened in 1874 as a metre gauge(MG) line from Neemuch to Indore.
Eastern Bengal Railway
The Eastern Bengal Railway (full name Eastern Bengal Railway Company, shortened
EBR) was one of the pioneering railway companies that operated from 1857 to
1942, in Bengal and Assam provinces of British India. The first line of
Eastern Bengal Railway was from Calcutta to Kushtia in 1862 (presently covered by Sealdah-Ranaghat
Line and Chilahati-Parbatipur-Santahar-Darshana
Line). It was extended to Goalundo
Ghat in 1865. By 1902, it
was extended north to as far as Dhubri in Assam14.
South Indian Railway
Southern of India Railway Company was established with its headquarters in England in 1853. The Carnatic Railway Company was founded in 1869. The two companies merged in 1874 to
form the South Indian Railway Company. The
new firm was registered in London in 1890 with Trichinopoly as its headquarters. In 1891, the Pondicherry Railway Company
(incorporation in 1845) merged with the South Indian Railway Company. The
company moved its headquarters to Madurai and later, Chennai
Central. The company operated a suburban electric train service for
Madras city from May 1931 onwards.15
The Calcutta and South Eastern Railway
The Bengal Nagpur Railway incorporate
in 1887 under the guarantee system later on came to be known as The
Calcutta and South Eastern Railway .
Early Gauranteed system:
the north, the first train ran between Allahabad and Kanpur, a distance of 180
km, on March 3, 1859, six years after the first train. The railways then were
built on a Guarantee System, which meant that the railway companies were
guaranteed a certain rate of interest on its capital investment. The guarantee
was to be honoured by the East India Company.
The Early Guarantee System: Under these contracts the Railway Companies
undertook to construct and manage specified lines, while the East India Company
(or the Secretary of State for India) agreed to provide land and guaranteed
interest on the capital, the rate fixed being in various cases 5, 4.75 and 4.5
percent according to the market rates prevailing when the various contracts
State Railway constructions: There were three kinds:
Imperial State Railways- owned by
the British Government of India through the Governors of one of the
Presidencies of Bombay, Bengal or Madras.
Provincial State Railways- owned by
the British provinces e.g. Northwest Awadh, Punjab etc.16
Railways owned by the native
states e.g. Jodhpur Railway owned by the Maharaja of Jodhpur etc.
New Guarantee System- Three new guaranteed companies were formed- Southern
Maratha in 1882, the Indian Midland Railway in 1885 and the Bengal Nagpur
Railway in 1887.
guaranteed companies were acquired by the state as and when they cup for renewal.
Board 1905 emerged from Robertson Committee of 1901. It was so that in 1901 Mr.
Thomas Robertson who was then appointed to look into the railway administration
and organisation matters after careful analysis othe entire situation came up
with the following recommendations –
of a Railway fund line for improvement
of old and new railway lines.
All lines should be leased out to the railway companies.
of a Railway Board.
Steps should be taken to improve the operational efficiency of the railways.
For the construction of new lines the Guarantee system should continue.
first three suggestions were very significant. Sufficient amount of money was
not available from the General Reserve Fund for the development of railways.
The Govt. did not consider it worthwhile to create a separate railway fund but
they established a Railway Board in 1905 with 3 members – 1. President and 2
members; and it were put under the Department of commerce and Industries. 17
came the Nationalization of Railways: Acworth committee recommended the
government should take control of railways.
Railways After Independence
independence in 1947, India inherited a decrepit rail network. About 40 per
cent of the railway lines were in the newly created Pakistan. Many lines had to
be rerouted through Indian Territory and new lines had to be constructed to
connect important cities such as Jammu. A total of 42 separate railway systems,
including 32 lines owned by the former Indian princely states existed at the
time of independence spanning a total of 55,000 km. These were amalgamated into
the Indian Railways.
In 1952, it was
decided to replace the existing rail networks by zones. A total of six zones
came into being in 1952. As India developed its economy, almost all railway production
units started to be built indigenously. The Railways began to electrify its
lines to AC. On 6 September 2003 six further zones were made from existing
zones for administration purpose and one more zone added in 2006. The Indian
Railways has now seventeen zones including
1 Agarwal, V. K., & Kumar, N.
(2004). Managing Indian Railways: The Future Ahead. New Delhi: Manas
2 Government of India, Ministry of Railways (2015), “Indian Railways: Lifeline of the Nation”
Retrieved form //www.indianrailways.gov.in/railwayboard/uploads/directorate/finance_budget/Budget_2015-16/White_Paper-_English.pdf
3 Statistics Summary of Indian railways, 2014
4 Planning Commission. (2015, July
08). Sector-wise contribution of GDP of India. Statistics Times .
5 IBEF. (2016, February). Indian Railways. Strong Revenue
Growth For Indian Railways . Indian Brand Equity Foundation.
8 Haque, S.M. Imamul (1989), “Management of Indian Railways”, Mittal
Publications, New Delhi.
12 “History of Railway Division” http://www.wr.indianrailways.gov.in/cris/uploads/files/1397109746468-history_1.pdf
Retrieved on 13 December 2015
13 Wikipedia “Neemuch/Nimach” https://en.wikipedia.org/wiki/Neemuch
; Retrieved on 13 December 2015
14 Mukherjee, Hena
(2012). “Eastern Bengal Railway”. In Islam, Sirajul; Jamal,
Ahmed A. Banglapedia: National Encyclopedia of Bangladesh (Second
ed.). Asiatic Society of Bangladesh.