Abhivyakti - june 2012 - Indian Railwayrscbrc.indianrailways.gov.in/.../1343201879168-Abhivyakti-jan12.pdfMs. Kalyani Sethuraman 7 (iii) Going Green : IT & Environmental Sustainability

From the Desk of Executive Editor 1Articles

(i) Purani Delhi - Heritage Centre For Rail LoversV. S. Ghai 2

(ii) Reinventing Indian Railways - Ethical DilemmasMs. Kalyani Sethuraman 7

(iii) Going Green : IT & Environmental SustainabilityR. K. Sharma 22

(iv) Yesterday's Doctor Today's DOC-MANAGERDr. D. K. Mitra 30

(v) West is West, East is BestMr. Rajiv Agrawal 33

(vi) Towards an Innovative EconomyDr. B.V.L. Narayana 35

(vii) Evaluation of Financial OrganisationV. S. Ghai 52

(viii) Life & Health - "Beautiful Sleep Our Lifeline"Dr. S. K. Mitra 59

(ix) Developing A Strategy for Indian RailwaysMr. M. S. Mathur 61

(x) Roadmap For Innovation on Indian RailwaysDr. B.V.L. Narayana 68

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ABHIVYAKTI • VOLUME 24 • NO. 1 • JANUARY-JUNE 2012 1

Editorial Board

ChairpersonNiraj Kumar : DG

Vice ChairmanK. L. Dixit : Dy.DG

Executive EditorBVL Narayana : SPTM

MembersS. K. Bajpai : SPOBA. K. Shrivastav : SPSTA. K. Shukla : PAM

"Abhivyakti"is published quarterly by Railway Staff College. AllEditorial correspondence and articles should be addressed to the ExecutiveEditor, Abhivyakti, Railway Staff College, Lal Baug, Vadodara- 390 004 (India)

E-mail : [email protected] Site : http://www.rscbrc.ac.inPhone - BSNL : 0265-2651975 (Off.)

0265-2653488 (Resi.)Phone - Rly. : 091-45004 (Off.) / 091-45005 (Resi.)

Fax : 0265 - 2638607 (Office)

Views expressed in the articles are those of therespective authors. Neither Abhivyakti nor Railwayscan accept any responsibility for nor do they agreewith the views expressed in the articles. Every effortis made to acknowledge source material relied uponor referred to but Abhivyakti does not accept anyresponsibility for any inadvertent omission.

Printed by M/s. Javanika Printers,3, Laxmi Estate, Bahucharaji Road,Karelibaug, Vadodara-390 018

From the desk ofExecutive Editor..

Spring is in the air. Our attempt to give anew look to Abhivyakti continues. We havereceived contributions from senior officers onissues of current interest affecting railways. Wehope that readers will benefit from inclusionof these articles. We have also included articleson the subject of "Ethics" and "strategicorientation".Probationers have always been the strength ofRailway Staff College. Their contribution isalways given a separate section. This is atribute to the wealth of talent and creativitythey bring to the Railways.Abhivyakti marches on. It still oscillatesbetween theme based knowledge contributionand general literar y knowledge. This dualnature of it reflects the considerable scope itattempts to embrace. And so life on Indianrailways goes on...

-Executive Editor

2 ABHIVYAKTI • VOLUME 24 • NO. 1 • JANUARY-JUNE 2012

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Purani Delhi -Heritage Centre forRail Lovers

V. S. Ghai The BeginningThe East India Company conducted surveys in 1845 toprovide rail link between Calcutta and Delhi. The site forDelhi station was finalized in 1856. The first station buildingwas constructed in April 1864.The building comprised ofrooms for Station Master, booking office, waiting room,and parcel office. These are located at the east end ofDelhi station and now houses Railway Magistrate and ChiefParcel supervisor offices; it received its first train on 1.8.1864.

Expansion PhaseOver the years, the infrastructure was found to be deficientfor the growing traffic especially to handle the trafficrequirement of Delhi Darbar. Planning for the present buildingstarted in 1890; the construction work commenced in 1893and the station building was declared open in March 1903.The cost of the new building was estimated at Rs. 5 lakh.

Architect of the BuildingDelhi Station building is one amongst the magnificent stationbuildings of the world. A stamp to commemorate the Mughalarchitecture of this station building was issued by the

Mr V. S. Ghai is working as Sr. Fellow, AsianInstitute of Transport Development.


postal department in 2007.Some feature of thestation building were Gothic style blended withthe Indian style. The Minar near the main entrancegate and its resemblances with the historicalmonuments of Red Fort is a symbol of Mughalarchitecture. Red stones used for the building werelocally procured though these resemble the one usedfor the construction of Red Fort, which was broughtfrom outside Delhi.The construction work of first floor of buildingwas completed in 1930. The station building wasprovided with administrative office, refreshmentrooms, waiting halls and retiring rooms to meetthe anticipated requirements of Delhi Darbar. Thestation has a long façade of wide verandah anda spacious lobby as one finds in the buildings ofthe Mughal era. Overbriges were constructed togiven approach along the length of the station.Security considerations were also kept in view, whileconstructing the station building.

Architectural ConceptHamayun’s Tomb and Taj Mahal are the best exampleof Mughal architecture. These monuments havea canal, a fountain, a garden and lastly the tomb.The concept of Old Delhi Station resembled thisarchitecture. Yamuna canal was passing throughthe centre of Chandni Chock; it formed a poolnear the fountain and the picturesque image ofmoon reflected in the pool water. A garden adjacentto the Delhi Municipal Corporation building standsnow and then the station building.

Infrastructure DevelopmentTwo (dead ended) plat forms were constructedopposite the first station building to connect Delhiby rail in April 1864 to handle 1000 passengers.These platforms were not found operationallysuitable and now these platforms are called “EIRParcel post”, and parcel trains for Amritsar andHowrah were started from these platforms.

Infrastructure Development

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Numbers of platforms were added to facilitatedoubling of Delhi Ghaziabad Section before20.02.1902. In1934-35 Old Delhi Station was againremodeled. Platforms were lengthened and,interlocking was modified. Delhi Goods Shed, whichwas out of use, was renovated on 11.05.1982 tohandle Shamli Delhi Trains, but it was closed on08.12.1982 being operationally not feasible. Nowit is being used as parcel shed from 03.02.1985.Platforms no 1A was added in 1996 after the closingof Delhi Steam Shed in June 1995. With entranceand exit facilities from Kashmere gate end. Thenumber of 19 Platforms at Delhi Junction wasreduced to 16 from 05.09.2011.

Lifts And Under Rail PassageThere are fourteen lifts at Delhi Station, themaximum at any station of the world. Those liftswere installed in March 1903 and were connectedwith all the platforms to handle parcel traffic andcash vans. These lifts were later replaced in 1938.On 27.01.2012 it was decided to widen the tunneland extend up to new platform No. 16 with a viewto improve public perception of railway stations.

Change of Platform Number: 05.09.2011In order to handle 24 coach trains at Old Delhistation the platform numbers were rearranged witheffect from 05.09.2011. The station now haveplatform number one from main entrance i.e.Fatehpuri side and platform No. sixteen from theKashmere gate side. The revised number of platformswill be as follows


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Narrow Gauge Lines for Royal Durbar TrainsA 22 63 narrow gauge railway line was laid bythe engineers of North Western Railway for therequirement of Delhi Durbar on 12th December1911. An independent line between Delhi-DelhiBrewary, Tis Hazari, Kashmere gate, Kingsway campand Azadpur stations was opened on 20.12.1909.These stations covered all the areas of the cityof tents located, over an area of 25 square milesfor the royal guests. During the Durbar, a temporarystation was constructed on the Hamilton Road sideof Delhi station to handle Durbar shuttle trains.After the conclusion of Delhi Durbar and finalisationof the location of New Delhi as capital these narrowgauge lines were demolished in 1912.

Royal welcome at Purani DelhiEmperor George V and Queen Mary arrived Delhifor the Coronation Durbar. They were first welcomedat the Delhi Main Railway Station. The speciallyDecked “Royal Train “ arrived at Delhi Stationon 7th December 1911 a few days ahead of DelhiDurbar where the King announced the shifting ofCapital from Calcutta to Delhi.

Engineering MarvelsThe Indian Railways has presently 1.27.768 bridgesincluding 10453 major bridges, 1,16,678 minor bridgesand 637 important bridges. Most of important IndianRailway bridges constructed are having wellfoundations for sub structure and steel open webtriangulated girder as super structure.The types of bridge structure that arise interest amongtourists around Delhi station are described here:-

YAMUNA BRIDGEIt is the last important bridge on rail route betweenCalcutta and Delhi. The site of the bridge was finalizedin 1859; work on it started in 1860 and constructionwork completed in 1866 at a total cost of £16,16515/-. The Yamuna Bridge at Delhi is a peculiar one, wellfoundation resting mostly on rock at shallow depth;sub structure was constructed for double line although,initially, supper structure was provided for single lineonly. This rail road bridge was having rail traffic ontop and road traffic at the bottom. Double line structurewas placed on the same sub structure by the side ofthe first bridge in 1913.The girder of combined railRoad Bridge was constructed in 1866. It was of earlysteel type and considered week for heavier traffic. Itwas replaced in 1933-34 by the bridge branch of N.W.railway at a total cost of Rs. 23, 31,386.

Flood FuryThe Yamuna bridge breached the danger mark onmany occasion due to large quantity of water releasedfrom Haryana as under:-

Year Water level15th October 1956 206.4010th August 1971 206.3422nd August 1976 206.5522nd August, 1977 205.876th September,1978 207.4927th September, 1988 206.9211th September, 1995 206.9310th October, 1998 206.1811th August, 2008 205.7111th August, 2010 205.9611th September 2010 206.7823rd September 2010 207.11

The main flow of Yamuna River is betweenspan No.10 and 11 but during floods there isconsiderable attack of water on pier no nine andten. During heavy flood water goes up to the rocklevel except piers no.6 and 7 which are on sand.

Calcutta BridgeMost of the bridges constructed in the past arearch bridges. The foundation of this arch bridge


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was laid on 5th March 1852 near Salimgarh sidingand completed in 1854, it was doubled in 1905.The length of the bridge was 7.5 meters and width4.3 meters. It is one of the 32 arch bridges ofIndian Railways.

Lothian BridgeThe height of Arc Bridge is 25 feet. Its constructionwork started on 5th March 1852 and was completedin 1854. The bridge was doubled in 1905. Thework to reconstruct Lothian Bridge was startedon 21.9.1987 by works department of NorthernRailway on behalf of Municipal Corporation ofDelhi at a cost of Rs. 1056/- lakhs.

Duffering BridgeThe height of this minor arch bridge is 25 feet.It connects Shyama Prasad Mukerjee Marg andZorawar Singh Marg. It was constructed in 1854and located in the west side of Delhi Main. Laterthe bridge by expanded by 3 meters for pedestriantraffic.

Second Entry to old Delhi Station

Second entry to the railway station from thezorawar Singh Marg, Kashmere Gate side wasopened on 05.09.2011 to ease the parking and,passenger pressure on the S. P. Mukherjee Margentrance which is congested due to the chaos infront of parcel office and to solve the problemof parking space at the station. The second entryhas circulating area, ticketing counter, parcel officeand parking for 300 vehicles.

Other Tourist Interest

There was much more for the tourist to see atDelhi station. The following structure fascinatedthe tourist:

Steam Engines Steam engines were the mainattraction for tourist. Delhi shed was constructedby EIR along with Delhi – Ghaziabad section on

1.8.1864 and was closed for outgoing steam enginefrom 31.3.1994 along with Delhi Queens Road.Meter gauge shed. JIND steam shed engines werehoused at Delhi shed for return trip was closedin May 1995. Delhi shed was closed in June 1995.Rail Mail Services started its journey from PuraniDelhi in 1907. The surge in Mail traffic increasedthe demand for additional space. Work to extendstation building on east side started in 1986 andcompleted in 1999, keeping the original design ofthe building.

World’s Busiest cabinSadar Cabin also known as triangle was the mainattraction for rail lovers. It was world’s busiest cabininterlocking and was constructed on 1.3.1891 byNorth Western Railway to facilitate train movementfrom Delhi - New Delhi, Delhi Kisanganj,Subzimandi and Delhi Queen Road. Power signalingwas introduced in 1934 which was replaced byelectric joint machine in 1964. The cabin was closedon 15.5.1982 with the introduction of Route Relayinterlocking, which was upgraded by NorthernRailway in February’ 1999 with 11000 relays andwas awarded Guinness World record certificate on5.8.2000.Pumping of Raw Water river direct from YamunaRiver was a unique feature. This facility was closedin May’ 1988 for poor flow of water in river Yamunawhich resulted in blocking of pipe line by silt.

Heritage Monuments around stationsThere are several important monuments aroundDelhi Junnction. Some cultural, heritage buildingsare given below which offer great attraction totourists.

Gurdwara Sheesh ganj Sahib: It is the 17thCentury Gurdwara with gold plated domes. Itwas built in memory of Guru Tej Bahadur in1675.


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Tomb of Razia Sultan: It is the tomb of theonly woman sultan, daughter of Altumush(1236-39).Salim Garh Fort: It is located near Red Fort.It was built by Sher Shah Suris son Salim Suri.Ajmeri Gate: Its name derives from its directionfrom Ajmer and was one of the 14 gates ofthe walled city (built in 1644-49).Mirza Ghalibs Haveli: is located in Galli Qasimin Ballimaran.

Coronation Memorial: It houses the marblestatue of King George V which was at IndiaGate at the time of Independence. It remind

of the location where decision to make Delhias the new capital of British India was takenon 12th

Other important structures with in a stretch ofthree kilometers of Delhi station are Red Fort, DaryaGanj, Firozshah Kotla, Khuni Darwaza, Jama Masjidand Fatehpuri Masjid.

In view of the unique location, architectural designand engineering marvel, Old Delhi station will goa long way in creating awareness of the historyof Railways and generating sustained interest inthe engineering heritage.


Article

'Reinventing IndianRailways - EthicalDilemmas'

Ms. Kalyani Sethuraman INTRODUCTIONThe Indian Railways (IR) is the largest department ofgovernment run as a commercial undertaking. The IR hasplayed an important role in the social, political and economiclife of the country all through its 150 years of existence.The transportation network of the Indian Railways has helpedintegrate not only markets but also people across the lengthand breadth of the Indian subcontinent. Even today theIR is the principal mode of transport in the country whichcarries about 13 million passengers (equal to the populationof Australia) and more than a million tonnes of freighttraffic daily over a network spread over 650000 route kmsand covering about 7000 stations.As the growth of a country accelerates the supply of alltransportation services will also have to accelerate accordingly.It follows that as economic competitiveness increases inthe world as a result of globalisation and shrinking of worldmarkets, transportation services have to get competitiveboth in terms of costs and quality of services. The thrust


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of the Indian economy has changed dramaticallyin the last decade. Till some time ago Governmentwas the major entrepreneur in India. It aimed, toquote the Industrial Policy resolution of thegovernment ‘to attain the commanding heights ofeconomy’. Private enterprise was looked upon withskepticism and suspicion. Slow steps have beentaken in the last decade towards changing direction.With globalisation, increasing competition andreduction in import duties, the pace is quickeningand is bound to gather momentum very fast. Somemajor enterprises have been privatized and othersare in the queue. The state is moving away frombeing the prime entrepreneur to assisting, advising,encouraging, regulating and facilitating enterpriseby entrepreneurs.A core activity in this new role of the state isthe provision of infrastructure of which transportis a major component. For years to come, the IndianRailways would be the major transport agency forindustry, given the inadequacy and poor conditionof the roads and the time and money required toimprove them to world standards. The railways onthe other hand can be quickly raised to operateon world standards.The inferences to be drawn therefore areas follows:The Indian Railways remain the most viable modeof mass transport of men and materials even intoday’s context. However it must be recognizedthat it no longer holds monopolistic sway overtransportation like in the past and its more efficientcompetitors have captured some of its market.The main issue to be examined is whether IndianRailways is ailing really and if so why and whatcould be done to remedy the situation. Much hasbeen said and more has been written about thedeteriorating financial condition of the IR overthe last fifteen years or so. Committee after

committee appointed at the highest level hasexamined the state of the railways –their financesand working and submitted reports to Parliamenton what, why and whither –Indian Railways!However the committees and their reports havecontinued along with the continuing inefficiencyand the general dissatisfaction of the customersat large! Could this be because of erosion in theethics of the organization?The significant question therefore is what is reallywrong with the Indian Railways. It is true as allthe reports and the statistics say that budgetarysupport from GOI has reduced overtime fromabout 75 percent of the total capital outlay toabout 25 percent in the past ten years or so; itis also true that cross subsidization exists aspassenger tariff is subsidized by raising freighttariffs which has resulted in ‘driving customersto roads from rail’. Furthermore the Indian Railwaysare overstaffed and the bulk of their earnings arespent on salaries and establishment expenditure.The maintenance of track and rolling stock hasdeteriorated greatly leading to derailments andaccidents that eat away the already diminishingfunds. All said and done the main problem withthe IR is one of funds outlay and mismanagementof funds and assets.These are mere statistics, which are by themselvesnot really helpful. If they were actually helpful therewould be no need really to continue with theappointment of the various committees and thesubmission of their reports! In fact the railwaysshould have been back on rail long ago if reportshad identified the problem correctly and theirsuggestions had been implementable!To put it very simply what ails IR is the lack ofa focussed goal and the lack of firm and supportiveleadership at all levels. Any organisation that hasto be commercially viable has to ask of itself somefundamental questions:


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What is our business ?Whom are we benefiting ?Where do we see ourselves in five years time-what should we aim at ?How does it help society ?On examination of the IR –its leaders and its focusit appears that these questions are never addressedby it as an organisation. The IR is in the businessof transportation but is involved in a host ofperipheral activities like manufacture of rolling stock,catering, ticketing and maintenance andadministration of various assets other than trackand rolling stock, which are its key assets.The question of who is being benefited by IR isalso not being examined; it is obviously not thecustomer as he is a disgruntled one whether heis a passenger or a freight customer! It is not theIR because earnings are not what they should beand the railways are forever complaining about thesocial burden they have to carry as a governmentdept. In the circumstances nobody is happy andnobody seems to draw any benefit really from thevast investments in terms of money, time and energyyear after year.The Indian Railways have a plan but no visionof where they have to reach and how in the nextfive years. In other words there is no corporatestrategy. To effectively discharge its numerousresponsibilities it is important that the entire IRorganisation works in concert towards a commonstated purpose.Lastly although IR is seen as a department witha social obligation, which should override itscommercial interests, the lack of a customer focusimpedes the fulfillment of the same.Also it is the absence of introspection or reviewthat has led to the Railways being forever on thedefensive and not able to answer uninformedcriticism by inexperienced experts. The statistics

so laboriously collected on traffic are not examinedto draw conclusions that are implementable in thefollowing year. Statutory audit has become merelyformal .The IR leadership does not appear to realizethat what is more relevant is efficient managementof accounting principles, constant review of financialdecisions, the will to learn from experience andto prevent a mistake from becoming a misery andto take stock of situations and take decisions notfor the year but to reach the common goal overthe years. In other words the needs of the variousstakeholders is not being kept in sight inpolicymaking. Any organization and especially onethat is as large as the IR and one that affects alarge cross section of stakeholders has to carryits people with it. If this does not happen thenthere will obtain contradictory pulls and pressuresin different directions that will forever impede theprogress of the organization.To appreciate this concept let us examine theRailways in the light of the ‘Stakeholders Model’and the triple bottom line theory.STAKEHOLDERS MODELThe stakeholder theory identifies the differentplayers within an organisation (employees, unionsetc) and outside (customers, suppliers and contractorsetc) and seeks to balance their conflicting interests.The Stanford Research Institute in its firstenunciation of the stakeholder concept postulatedthat ‘the firm’s (in this case the railways) executivesmust understand stakeholders needs and concernsbecause lack of such understanding might threatenthe firm’s survival’.1 Further Eric Rhenman hasdefined Stakeholder as,’ any group who placesdemands on the company and on whom the companyhas claims.’2As such participation of the stakeholders is criticalto the welfare of the organisation not only at thesystem delivery stage but also right at the system


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design one. The sum and substance of thestakeholder theory is that any institution is allowedto exist only because it performs useful functionsfor the society and if it wants to survive it mustrespond to what society (stakeholders) demands.It follows that organizations should not be managedonly with an eye on the financial bottom line butthrough a system of holistic measures, which shouldencompass the following:1. Assure quality products at reasonable prices

manufactured distributed and disposed of underpublicly acceptable conditions.

2. Help to provide a cleaner environment and lessenrisks to human health and safety.

3. Improve the quality of working life by- employeeparticipation in workplace decisions, jobsatisfaction and advances in career andentitlements.

4. Are open and ethical and provide greater publicaccountability for corporate performance,including aspects that heretofore were of littlepublic interest.3

According to classical and neo classical schoolsof economic thought as expounded by Adam Smithand Milton Friedman respectively, the managershould confine himself to maximizing profits andin a world where everyone focuses on profits, asa natural corollary, society will be provided withneeded goods and services.The Stakeholder theory however looks at businessin a different manner in that it deals with distributionof benefits/entitlements and duties and providesmore fundamental reasons for decision-making. Theethical issues in this theory is that the balance ofbenefits tilt in favor of those stakeholders whoseclaim on the organization are accorded priority forvarious reasons. Ultimately the ethics in the theoryboils down to this that personal biases, oversightsand distortions should be minimized such that

personal interest cannot override corporate interestand corporate interest does not override those ofstakeholders. It should also be ensured that thecorporation provides an umbrella that provides acanopy for the variety of interests of differentstakeholders that lend to the success of theorganization.Possibly the management of the Indian Railwayshas been kept with government because societyis distrustful of the market mechanism functioningin a fair and equitable fashion. At the same time,service delivery by government has its own problemof gross inefficiency. Therefore, as a via media,as the government retreats from the commandingheights of economy, the created space has to beoccupied by a web of stakeholders such that thereis a balance of power between the various interests.This would ensure that no one party could hijackthe agenda to the detriment of all others.We may therefore conclude that adoption of theStakeholder theory may well be the right strategyfor reinventing the Railways in India.The various stages in the implementation of thistheory would include the identification of thestakeholders, securing of their participation anddevelopment of strategies to ensure that the interestsof different groups are looked after.

TRIPLE BOTTOM LINE THEORYThe triple bottom line (TBL) focuses on corporationsnot just based on the economic value they add,but also on the environmental and social valuethey add – and destroy. At its narrowest, the term‘triple bottom line’ is used as a framework formeasuring and reporting corporate performanceagainst economic, social and environmentalparameters.At its broadest, the term is used to capture thewhole set of values, issues and processes that


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companies must address in order to minimize anyharm resulting from their activities and to createeconomic, social and environmental value. Thisinvolves being clear about the company’s purposeand taking into consideration the needs of all thecompany’s stakeholders – shareholders, customers,employees, business partners, governments, localcommunities and the public.From the economic angle the railways have theresponsibility to cover costs and earn a reasonableprofit, which they are presently unable to do. Forany organisation to contribute its mite to the overallpublic good the first requirement is that theorganisation by itself should be self-sustainable bygenerating adequate profits. The first step inrestructuring of the Indian Railways is the realizationof this change. It is necessary to communicatethroughout the organisation that it is imperativeto move from employment generation to profitgeneration. It is also important to create anenvironment of safe haven on competitive grounds.The restructuring should take into account thestructure, strategies and systems.It is also important to understand and accept socialcosts involved in restructuring especially as thishas in Public Sector Undertakings resulted in societaldivision, changing family relations and redundancy.Increasing capital investment and decreasing jobcreation have increased the gap between the havesand have-nots. Increased investments in technologymean more dependence on few employees who putin long hours in work life rather than home life.This has resulted in changing family relationships.Downsizing has also led to a higher percentageof long term unemployed in a number of countries;unlike the developed countries where there is asafety net, in India, people losing on account ofdownsizing, have to depend on the compensationgiven by the organisation only. Thus, it is importantto understand the social cost of restructuring.

According to the situation, the kind of measuresrequired to implement restructuring should beconsidered.

OTHER MODELS/THEORIES

Deontological TheoryThis theory postulates the importance of the meansbeing correct/ethical to reach the desired end. Fora commercial organisation we may not be entirelyjudicious to adopt this theory in toto.

Teleological Theory/Consequential TheoryIn this theory, the focus is on the ends. This doesnot mean that the end justifies the means andtherefore unethical means are excusable. All thatthe theory says is that there has to be continuousand constant concentration on the end. TheUtilitarian Theory propounded by Bentham andMills- greatest good of the greatest number wouldfall under this category. Given the commercial natureof a transportation service, this theory is moreapplicable than others as one loses sight of theend that is provision of transportation all is lost.

IDENTIFICATION OF STAKEHOLDERSThe Indian Railways is a world in itself and isa representative microcosm of India. The numberof stakeholders is therefore many and varied intheir interests and nature.1. First among these is the government that is the

owner of the railways. The railways are the onlyarm of the government that is run partially asa commercial undertaking with a budget of itsown that is presented separately beforeParliament. The objectives of the railways aretwofold-on the one hand they are to facilitatetransportation of the common citizen ataffordable rates and on the other hand it hasto be commercially viable so as to sustain itself,as government support is dwindling by the year.


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Further to balance both of the above, it hasto function under the existing political set up.Thus there are contradictory pressures on theIndian Railways that is willy nilly being pulledin opposite directions. Policy framing in thesecircumstances is therefore extremely challengingand fraught with dilemmas at every stage andstep of the processes involved.

2. Second among these are the railway employeeswho are as many as 1.5 million in number; fourout of every ten employees of the Governmentof India are from the railways. In fact the IndianRailways is the single largest employer in theworld! The railways are employee intensive partlybecause all of the maintenance and subsidiarysupporting functions were being carried out inhouse till about a decade or so. Besides politicalleader after leader has regarded the railways ashis personal fiefdom and granted employmentto fulfill political promises. In the process, insteadof being a commercial entity, the railways becamean employment agency! Today, with the prospectsof privatization gaining ground on account ofglobalisation and fiscal constraints faced by thegovernment, opposition from the employees whoare afraid of being laid off in a downsizing exerciseis gaining strength. The railways have a constantpublic interface and the management cannotafford a stalemate with the employees, as thereis no substitute to train transportation. In otherwords if employees refuse to cooperate it isnot as if others can be brought in to run trains.Hence the bargaining power in the hands ofthe employees is quite strong, unlike othergovernment departments.

3. The third stakeholder are the civil servants orthe bureaucrats in the railway system who areresponsible for policy framing, implementationand management. The railways consist of officers

belonging to as many as ten different streams.This is a unique aspect that does not obtainin any other department of the government.While perhaps the peripheral strength of thislies in the fact that in times of crisis (as intimes of accidents) interdepartmentalcoordination leads to speedy resolution, theweakness is that the interdepartmental rivalryand ensuing bitterness is also very divisive anddetrimental to long term cooperation and growth.This leads further to a situation where functionalsilos are set up that cut off communication andthe overall organizational goal is lost sight off.Another fallout of this is a total lack ofaccountability and abdication of responsibility.In short, there is no ownership of any problem.While on the one hand there is a constantscramble for spoils by way of fresh posts andprojects, on the other, passing the buck hasbecome a fine art with the buck stopping atthe customers’ door! The political class that playsone civil servant against the other exploits thislack of unity! Time was when a chiefcommissioner of the railways resigned his officedeclining to reorganize the railways in the mannerdecided by the minister. Today advice is tenderedin accordance with the perceived preferencesof the ‘powers that be’. In other words, thecivil services are unable to hold on to their powersand have passed these on to the political class,which are blamed for doing what is in theirinterest.

4. Passengers who use suburban and long distancetrains are yet another stakeholder. Passengerservices are highly subsidized at the cost offreight tariffs. Till recently, the railways werea monopoly transportation agency. As a result,passengers had no options and had to put upwith whatever service was doled out by the


railways. In the recent past however, things havechanged substantially. Development of thehighways has led to increase in the number ofroad transport operators and a consequentimprovement in road services. As a result, therehas been a migration of short distance customersfrom rail to road. toothless customer has acquireda new clout and has become an importantstakeholder.

5 Freight customers are another importantstakeholder who are at the receiving end ofconsistent increases in tariffs. As in the caseof passengers, the development of roadways hasled to increased competition to the railways. Theadvantages in transporting goods by road aremany- door-to-door delivery, easy tracking ofgoods during transshipment and low transactioncosts in case of loss / damage. On the otherhand, the railways do not offer door to doordelivery, do not have a freight operationinformation system to track wagons and haveextremely complicated and cumbersomeprocedures for making claims against losses /damages. The transaction costs involved aretherefore very high. It is no surprise thereforethat the rail to road migration indices for variouscommodities are increasing by the day. Forinstance, cement, which used to be moved entirelyby rail, is today moved mostly by road. Thusfreight customers have also become significantstakeholders.

6 The railway unions who wield enormous cloutbecause of political affiliations are anotherstakeholder who play an important part in therestructuring exercise. Added to this is the factthat because of the public interface mentionedin the earlier paragraphs, management cannotafford to take a very strong stand on any policythat faces severe opposition from the unions.

It is to be highlighted that unlike in the traditionalsense of the term union which exists to safeguardthe interests of the employees, the railwayemployee unions have virtually become anorganized mafia which subserve the personalinterests of a handful of union leaders who holdthe management to ransom by virtue of theirpolitical and money power. As a result,compromise has become the order of the dayand this in its turn has led to indiscipline andcorruption and emasculation of the civil service.

7. The environment, a voiceless party that suffersall damage inflicted on it by way of socialdevelopment, is another stakeholder that is sadlymarginalized but is increasingly becoming asignificant partner.

8. Suppliers and contractors who supply materialand undertake works for the railways are anotherstakeholder who are very important as a lot ofworks are contracted out especially in the recentpast.

9. One other stakeholder that is often forgottenis the small business enterprises that thrive aroundrailway stations like small eateries and newspaperstalls. The lifeline of these businesses is thetrains that run through the stations.

10. Politicians are another major stakeholder. Theinfrastructure and wherewithal available with therailways is of a very high order and the racefor the ministership of railways has manycontenders because of huge opportunities forpersonal enrichment and political patronage.

PARTICIPATION OF STAKEHOLDERSIN DECISION-MAKINGThe concept of stakeholder committee is not newto the Indian Railways. The germ of the idea isalready in existence in the form of the national,zonal and divisional railway users consultativecommittee. However it is noticed that it does not

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include representatives from each of the stakeholdersenumerated above. Also there is no continuousparticipation in management and decision-making.

ETHICAL ISSUES AND QUESTIONSThe question of restructuring of Indian Railwaysis an ethical minefield and the ethical issues stareone in the face at every step of the proposedrestructuring exercise. Among the various questionsthat pose ethical dilemmas are the following.Q1. How to factor in social obligations like

running trains to remote areas and ataffordable cost even while ensuringefficiency?

The most important issue, which has to be keptin mind in any process of restructuring of the IndianRailways, is the enormous social obligations, whichit is fulfilling at present. Any restructuring whichignores this issue is doomed to fail.It is all very well to say that the railways shouldbecome lean and mean and keen on competition.However, it cannot be forgotten that the most ofIndia lives in villages where the market does notrule and hence incentives for industrialization arenot what they are in the urban pockets. It is forthis reason the commanding heights of economywere kept with government till recently. The railroadindustry is one of long gestation and high capitalinvestment. The private sector is naturally guidedmore by profit motive than by altruistic motives.However there is no running away from the realitiesof India the fact that it is a poor country. In otherwords the social obligation will have to continueto be met.Possibly, one way of continuing the social obligationsand reducing the losses will be to cut down onthe wasteful expenditures. For instance, the perksenjoyed by rail employees are of a very high orderand possibly no other government employees receiveequivalent benefits. These are concessions by way

of free travel passed given to employees while inservice and even after retirement; the provisionto recruit bungalow peons of an officer’s choice;running of subsidized schools for employeeschildren. Considering the staff strength of 1.5 millionand that the passes are for families members alsoeligible for passes, the total number of personsavailing concessions could be around 6 millions(taking average family size of 4). Further, the railwayemployees are paid productivity-linked bonus (PLB)without fail every year, even when there is lowproductivity. While this should be given, as thename suggests only to workshop staff who directlyparticipate in turnover and that also on achievementor crossing certain benchmarks, the reality is quitethe reverse. PLB is given to all group C and Demployees including those in clerical cadre. If theseinefficiencies are to be eliminated the actual coston account of social obligations are likely to comedown substantially. As a consequence it followsthat the cross subsidization borne by the freightcustomers could also be minimized.Q2. How to restructure (right size) the Indian

Railways with minimum pain toemployees?

As mentioned earlier the Indian Railways is thebiggest single employer in the whole world. Duringit’s nearly two centuries of existence it has acquiredthe image of one of the most employee friendlyorganizations. A job with the Indian Railways meanta passport to success in life. At least during thefirst 125 years of operation, the railways attractedthe best of talent and the people so recruiteddisplayed a lot of pride and fierce loyalty to theorganisation. However, after independence all theprivate railway companies were integrated andnationalized and the railways became a milch cowin the hands of politicians who doled out patronagein the form of jobs and contracts to their campfollowers. The employees of the railways have begun


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their professional career in anticipation of job securityand pensions after retirement. Therefore laying offpeople in ruthless fashion in order to right sizewill send the message down the line that- peopledo not matter. This would have a negative effectin that it would erode the camaraderie, loyalty andcommitment that are available to whatever degreeat present. Therefore, right sizing should beattempted with human face signaling that peopledo matter. This was the strategy adopted duringrestructuring of Japanese Railways where eliminationof redundant workforce was done in smooth mannerby securing job changes for workers. One solution towards right sizing would bevoluntary retirement scheme/ golden handshake.Second would be a complete ban on recruitmentfor a fixed period, identification of departmentswhere excess staff is present and their redeploymentto other department after suitable training. Alsoredeployment to other departments of government(outside railways) can also be considered.Q3 How to handle ethical issues while focusing

on core activities and shedding of noncore ones

There is a strong view in general that the IndianRailway is involved in a host of activities otherthan the core activities of transportation of menand material. Of course, maintenance of tracksand related safety works cannot be termed as non-core activities. But surely the railways do not needto maintain stations, supply bed linen on trains,organize catering services, run printing presses foroffice stationery, run tailoring units for supply ofuniforms for workmen in workshops, run schoolsfor its employees. All of these activities wererelevant at the point when they were introduced,as viable alternatives were not available. But todaythe market has developed to such an extent thatoutsourcing of most of these activities would meanreduction in cost along with increase in quality.

Considering that taxpayers’ money is spent on theseactivities, which are wasteful, the issue takes anun-ethical flavor. Of course on the other hand ifall these activities are brought to an end, the ethicsof rendering employees jobless would arise. Thereare two ways to look at this situation- one froman utilitarian point of view if we were to seekthe greatest good of the greatest number, thenreduction in wasteful expenditure of taxpayersmoney is necessary. The railways is afterall an agentfor the principal viz. citizen and hence the interestsof the citizens of the country must take precedenceover the interests of employees. If employees arerendered surplus as a result of such outsourcing,then they have to be redeployed after suitabletraining within the railways or an outside governmentdepartment. This is not an easy but it is inevitable.Q4. How to ensure that citizens secure the

service they have paid for ?Often times in trains running towards the easternpart of the country, ticketless travel happens inreserved compartments. The passengers who havepaid for the seats and have a legitimate right tooccupy the seats end up having to share with theothers who have not paid for it. Technically thefault lies with the TTE who has a responsibilityof ensuring such passengers are kept out of thereserved compartments. However because of thelaw and order situation that obtains in those partsof the country, the TTE for fear of his life takesno action. This is a typical situation where therailways are guilty of unethical stand but are helplessto act really.Q5. How to make railways more environment

friendly ?At present while deciding on new projects and settingup of new lines, the possibility of environmentaldamage and loss of eco-diversity is not consideredat all. Perhaps this is due to fact that environment


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for one is a silent stakeholder and so remains unhearduntil erosion throws up a problem. Secondly,provision of infrastructure as a precursor todevelopment often takes precedent over sustainabledevelopment in Third World countries like ours.The famous Konkan Railway project which linksMalabar Coast to Goa and Mumbai and runs alongthe Western Ghats was in the initial stages of theproposal criticized by number of green groupsbecause it would destroy the fragile eco systemthat thrived in that area. These remonstrations werenot really taken seriously by the railways andgovernment and the project was completed. As theresult of the project, the trade and commerce inthose areas has been facilitated. However, the issueof ecological damage is un-addressed and unknown.Similarly, when railway expansion is done in remoteareas through forests the possibilities of ecologicalerosions do exist but are not built in into the costof the project. All that one is bothered about isthe rate of return on the investments.

On the other side, one has to note that withinurban areas the railways are the mostenvironmentally friendly transport agency aspollution to haul ratio is the lowest as comparedto road transportation. Further, as trains are runalong fixed tracks, containment of pollution canbe done better as opposed to road transportationwhere it is dispersed. Therefore, it is in our interestto use railways for mass rapid transportation inthickly populated cities.

Q6. Transparency in contracts

A lot of work, which originally was donedepartmentally including safety, related works liketrack maintenance, installation of signalingequipments etc. is now done through contracts.The ethical issues involved in this are that in agovernment department there exist unavoidable linksbetween politicians, bureaucracy and corruption that

foster creation of vested interests. To put it verysimply, contracts are often awarded not based oncapability of the contractor but on his ability tosatisfy extraneous demands. While this is true inall government departments, the problem in railwaysis that the safety of human life is involved whichis not the case in every other government transaction.The number of accidents on the rise is only indicativeof how matters have deteriorated. Possibly, oneway of bringing in some degree of ameliorationwould be to computerize the purchase and workscontract activities such that information is madeavailable to all. Publishing of tender notices onthe web cites and acceptance of e-quotations couldbe introduces so that no contractor can be keptout of the race. This should certainly reduce thedegree of corruption to a large extent. Besides,granting greater autonomy to the top civil servantsin various zones may also help. As of now, a numberof major contracts are decided at the central leveland only administration of the same is done atthe local level.

As per Cressen’s fraud model, breach ofintegrity occurs when there is confluence offollowing three factors:

Opportunity to commit a fraud-In a governmentsystem where accountability is not ensured at veryhigh levels because fear of punishment is not severeor even certain, the opportunity to commit fraudsare high. The general lack of commitment,motivation and incentives for performancecompound problems.

Unreasonable needs-In today’s age of consumerism,the needs of people are increasing. The salariesin the government sector are not commensuratewith those in the private sector. This leads to asituation where there is a constant feeling ofinadequacy which fuels the desire to secure wealththrough corruption.


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Ability to rationalize- Unethical behavior andcorruption are no longer frowned upon orcondemned by society. The standards of moralityin society have changed and honesty is no longerrespected as in the past. Further, corruption byway of speed money (extortionary corruption) hasbecome a social norm. In addition collusivecorruption, which is far more serious, also existsand it is eating into the vitals of the system.Therefore, in order to tackle the problem ofcorruption one has to adopt a three prongedapproach.

Opportunities for corruption in the system haveto be minimized through combination of bettersystem design and administration of the same asalso performance appraisal and evaluationmethodology.The problem of unreasonable need can be mitigatedto some extent by setting salaries or benchmarkingsalaries to the levels in the private sector. Thiswas the system adopted for career civil servantsin Singapore Administrative Services, which issupposed to have contributed to low levels ofcorruption.The third angle of rationalization can be addressedby inculcating an ethical culture and spirit of espirit

de corps and sense of pride in theorganizational culture. Towards thisend, the top management should followhuman relation policies, which honourthe honest and nurture a culture ofintegrity within the organisation.Q7. Harmonizing conflictinginterests of various servicesThe railways as of now consist ofas many as ten departments each ofwhich wants to secure to itself greaterauthority and larger share of fundsfor creation of posts and perks as a

result all the time and energy of middle managerialbureaucracy is spent in wangling benefits for theirdepartments and not on reaching common goals.In the result the taxpayers’ money is spent onunviable items of expenditure. If the number ofdepartments is reduced, the degree of such fiercecompetition between departments could get reduced.It is true that for the highly technical departments,which require skills and expertise, there cannot belateral movement except the top management level.However, there are quite a few departments, whichlook after general administration, marketing,personnel, and human relations, which could bemerged to create one department. The TandonCommittee made this recommendation as early as1994 but it was not implemented. If implemented,team spirit, which is now low due to interdepartmental loyalties would increase and theorganisation would be strengthened.Q8. How to minimize political interference in

decision-making?If we look at the restructuring exercise of railwaysworldwide, one common aspect is that of armslength distance between the government and therailways. One happy result of this strategy wouldbe assured tenure of top management as also middle


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management. As of now, tenures are too short atthe decision-making levels to make possible anyserious worthwhile planning and implementationof change and innovations. All change needs carefulplanning, consultation, study, testing, mid coursecorrection and consolidation which tenures of shortduration make difficult to even attempt. First,succession is not transparently planned andannounced in advance. An instance that has recentlyhappened is the appointment to the post ofChairman Railway Board (highest level ofbureaucracy in the railway system) where seniorityand competence have been overruled at the willof the political executives. In the resultdisgruntlement and bitterness with the decision haveresulted leading to lack of co-ordination at thehighest level of policy making. While this is trueof all government departments, it is reiterated thatit acquires a greater significance in the railway systembecause of safety issues and the fact that thereis financial crisis. Possibly, Corporatization may helpin minimizing political interference to a limitedextent.Q9. Issues involved in Zone creation

The railways originally consisted of nine zones.Recently six new zones were created for reasonsof operational efficiency. The reason is good enough.It is true that railway divisions have grown verylarge and unwieldy and this is leading to lack offocus. Creation of new zones will lead to smallerand more number of units which would enabledirected focus and help increase effectiveness andefficiency. However, what has happened is thatinstead of distributing excess staff available, newposts have been created which have increased theburden on the exchequer. In this case the bureaucracyis guilty of unethical conduct, as it has joined handswith the politicians in order to secure benefits byway of quick promotions by increase in number

of posts. So, the benefits by way of increase inefficiency are all offset by the increase in cashoutflows because of higher salaries and perks. Whileone can argue that this is one way of motivationstaff and officers, it is to be noted that nocorresponding performance targets have been set.Numbers of posts are being operated in the newzones without transfer of functions andresponsibilities.

THE CURIOUS CASE OF CITIZENSCHARTERIn an effort to keep up with the latest practicesin public management, the Indian government issueda fiat in the year 1996-97 to the effect that allgovernment departments which interact with publicshould come out with a citizens’ charter clearlylaying down a mission statement and standards ofservice which the citizen can expect from thedepartments. So too in the case of Indian Railwaysa citizens’ charter document was prepared and issued.The concept of citizens’ charter originated in Britonduring 1990s and the core principles, which weresupposed to be articulated in the citizens’ charter,are as follows4:Standards: setting, monitoring and publication ofexplicit standards for the services that individualusers can reasonably expect. Publication of actualperformance against these standards.Information and Openness: Full, accurateinformation readily available in plain language abouthow public services are run, what they cost, howwell they perform and who is in charge.Choice and Consultation: The public sector shouldprovide choice wherever practicable. There shouldbe regular and systematic consultation with thosewho use services. Users’ views about services, and


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their priorities for improving them, to be takeninto account in final decision on standards.Courtesy and Helpfulness: Courteous and helpfulservice from public servants who will normally wearname badges. Services available equally to all whoare entitled to them and run to suit their convenience.Putting Things right: if things go wrong, an apology,a full explanation and a swift and effective remedy.Well publicized and easy to use complaintsprocedures with independent review whereverpossible.Value for Money: Efficient and economical deliveryof public services within the resources the nationcan afford and independent validation ofperformance against standards.However, on perusal of the citizens’ charterdocument issued by the Indian Railways, it is seenthat the document violates each and every principleenlisted above- for example the preamble of thecitizen charter issued by Indian Railways runs asfollows:

Provide safe and dependable train servicesSet notified standards for various serviceswherever possibleProvide courteous and efficient counter servicesEnsure adequate passenger amenities in trainand at railway stationsSet up responsive and effective grievanceredressal machinery, at various levels for timebound resolution of complaints and grievancesas far as possible.

The charter by virtue of the very meaning ofthe word means a Bill of Rights available withthe citizens. The Railway charter affords neitherassurances nor any protection to its customers- thecitizens of the country. The provisions are entirelygray, con-committal and are in the nature ofmotherhood statements. At the same time themanagement can forever take shelter because ofthe escape clauses built into the charter. Thus the

charter is management friendly rather than citizenfriendly. The IR has not thought it important topublicize the existence of the charter and sensitizeits employees to the various obligations cast onthe railways in the charter.To top it all whatever little the IR has committedin terms of charter is not being delivered to thecitizens ; to add insult to injury there is a specificdeclaration in the charter to the following effect-”This Charter does not create any new legalrelationship with the users of the Indian Railwaysnor does it in any way affect their legal rights asthey exist. On the other hand, the effort is to providea transparent, accountable, as also citizen friendlyadministrative machinery, which is responsive tothe needs of its customers. This is also a declarationof the Indian Railway Administration to providethe highest possible passenger care and acommitment to continuously strive to improve thestandards of services offered.”SUMMING UPHaving analyzed the ethical questions involved inrestructuring and running the railways let us nowthink in terms of how such restructuring may bedone in order that it is a win win situation forall the stakeholders involved and at the same timethe norms of ethics are not breached.Service has always been a public service ideal. Thepeople or clients served are not a faceless entitybut real flesh and blood persons with real needsand wants. Revitalizing the railways should be doneby encouraging the managers to:1. Find out what the customers really want2. Benchmark the quality of service and value added

to the clients.3. Reinvent and redesign processes around the core

idea of service delivery.4. Ensure welfare of the internal stakeholders along

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Further there is a need to focus on the publicmanagement perspective rather than the publicadministration perspective. The railways have tilldate been adopting the latter that tends to seegovernment from the top down, emphasizing thedecision making processes and institutions, the seniorpublic service and its interactions with the politicalexecutive. What they need to do now is to focuson the former that tends to see government fromthe bottom up, focusing more on the quality oflife and work in the organization and seekingimprovement of leadership and strategicmanagement, organizational climate, service quality,innovation, performance and client satisfaction.However in restructuring we must not replace‘traditional professional values’ like –economy,fidelity to public trust with ‘new professional values’like quality, innovation, initiative, and creativity.We must recognize that the traditional is not theenemy of the new and we must strive to meldthe two in a happy amalgam.In moving from an overly rule based bureaucraticsystem to a liberal service oriented market drivenone where customer is king public servants wouldrequire guidance about how to treat all clientsequitably and maintain paramountcy of publicinterest. To enable this the following would berequired:a) Empowerment and delegation of authority to

the frontline managers. In other words therehas to be a paradigm shift from a control basedstrategy of management to one of freedomfrom top down authority with flexibility to takeindependent decisions depending on theexigencies of the situation without fear ofreprisal. This would have a double advantage–one the response time in problem solving isminimized and secondly the employees feel asense of ownership, pride and satisfaction, whichis a great motivator in itself. This is a win

win win situation as the customer is happy,the employee is happy and so is the managementas overall efficiency goes up.

b) Guidelines for each department to meet itsparticular challenges; rules should be re-writtento focus on their substantive purpose

c) A central agency to counsel employees andmanagers in matters of ethics and values;developing a comprehensive ethics regime withrecourse mechanisms within and outside thedepartment.

d) Better training about existing codes; sensitizingemployees to primacy of law and theConstitution and its provisions and dueprocesses.

Another aspect that emerges as important in a timeof change is the issue of ‘Leadership’Leadership which has at all times been a challengingtask because of issues of accountability has nowbecome even more so in times of restructuring,rightsizing and new directions. Also all ethical valuesare transmitted, nurtured and reinforced only throughtop leadership. There is a popular perception amongemployees that the senior managers do not walkthe talk and are not accountable even while theydemand accountability from below. In order tochange this perception what is needed is creationof a climate that encourages dialogue andconstructive expression of views at all levels.Secondly there should be emphasis on the importanceof people and demonstration by example by topmanagers.Also in a democratic polity where policy makingis in the hands of the political executive and theexecutive responsibility rests with the careerbureaucracy, there are quite a few occasions whenthe lines, which separate the roles, get blurred andthere is a tendency among politicians to poach intothe administrative domain. This is where the issue


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of intellectual honesty comes in and the entireorganization looks up to the top management tostand up to the political bosses and take ethicalstands. However more often than not, it is seenthat the top management that is supposed to actas a firewall between the political and organizationalinterests fail to live up to this role and cave infar too easily. This is often because they place apremium over prospects of career advancement andorganizational interests are given a go by.Ethical standards in the system are taken for granted.It is interesting to note that while managementtraining is imparted at various levels during a civilservants service no training on ethics is everconsidered necessary. All formal moral training ina person’s life ends after primary school!! Also mostIndians take a very self righteous stand by leaningon what the Gita says about action without desirefor the result-‘Karmanye vadikaraste, ma faleshukadachana’. The pathos is that most people stopwith knowing the verse-they know it, they quoteit all the time but they don’t seem to practise it!Therefore training on how to think about valuesand ethics, how to discern values and ethical issuesin management, how to deal with moral dilemmasand conflicts should be imparted at regular intervalsduring the career of civil servants.All public services are for the people of the country.Oftentimes the service is doled out in a patronizingmanner without respecting the sentiments of thereceiver. This whole mind set has to change andthe end user has to be treated not as client butan equal partner. People values are therefore animportant key to promoting public services. To fulfillits functions the railways must attract and develop

a cadre of people who have a sense of sharedvision and mission, who can work together towardsa common goal. The railways should also displaytowards its own employees the same values ofcourtesy, caring and concern that it displays forits end users. Lastly a professional Indian Railwayswould require a critical mass of committed careercivil servants who share public service values anda human resources regime that is fair transparentand merit based that which promotes continuouslearning and improvement, accountability andexcellence admits errors and learns from them andcelebrates success with all stakeholders!. In thisprocess it may well happen that in order to promoteoriginal out of the box thinking a system of lateralentry should also be put in place to bring in freshideas and energy and enthusiasm.Lastly, pride is the fuel of human achievement.There used to be a time when people took greatpride in belonging to the railway family. Somewheredown the line this sense of ownership and belongingseems to have been lost. The biggest challengebefore the Indian Railways is to rekindle that spiritand reclaim that ambience. This cannot be donein any other way except through the adoption ofthe ‘Stakeholder Theory’.Possibly recollecting and focusing on Gandhi’swords- would best serve the cause of the ‘ ethicalreinvention of the Indian Railways’:“A customer is the most important visitor onour premises. He is not an interruption in ourwork. He is the purpose of it. We are not doinghim a favour by serving him. He is doing usa favour by giving us the opportunity to doso.” Gandhi


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Going Green :IT & EnvironmentalSustainability

R. K. Sharma "We can all join hands and make this world aGreen World… Leo Victor."

R. K. Sharma Sr. Professor/ElectricalEngineering Railway Staff College, Vadodara

Amongst all the factors contributing to the recent decadeof economic, social & political change around the world,one factor stands the tallest i.e. Information Technology(IT). Once considered a privilege of developed countries,IT now bridges the gap between the developed and developingworld. Access to information itself has become an equalizerand a mobilizer in an effort to meet two urgent challenges:climate change and our ability for sustainable environment.IT is growing at an astonishing rate. According to a paperpublished by EMC in USA , the amount of informationcreated, captured, and replicated in 2010 totalled 380 billiongigabytes—more than three million times the informationcontained in all the books ever written. And between 2010and 2014, the amount of data added annually to the digitaluniverse will increase more than 10 times.This leads us to fore think the necessity of environmentalimpact of Information Technology & its urgent greeningrequirements on date. Green IT is about more than justpower consumption. It incorporates the entireenvironmental impact of technology, from the paper we loadin our high-end networked printers to the hazardous e-waste


we throw away

What is ‘Green IT’ ?Green IT is environmentally sustainable IT whichenables processes to run ‘efficiently and effectively’with minimal or no impact on the environment. Alternatively, Green IT or Green Computingis the environmentally responsible use ofcomputers & related resources and Such practicesinclude the implementation of energy-efficientcentral processing units (CPUs), servers andperipherals as well as reduced resourceconsumption and proper disposal of electronicwaste (e-waste).In fact, Green computing is the practice of usingcomputing resources efficiently. The goals are toreduce the use of hazardous materials, maximizeenergy efficiency during the product’s lifetime,and promote recyclability or biodegradability ofdefunct products and factory waste. Such practicesinclude the implementation of energy-efficientcentral processing units (CPUs), servers andperipherals as well as reduced power consumptionand efficient disposal of electronic waste (e-waste).Green IT starts with manufacturers producingenvironmentally friendly products and encouragingIT departments to consider more friendly optionslike virtualization, power management and properrecycling habits. The government has also recentlyproposed new compliance regulations which wouldwork towards certifying data centers as green.Some criteria includes using low-emission buildingmaterials, recycling, using alternative energytechnologies, and other green technologies.

Genesis of ‘Green IT concept’:In 1992, the U.S. Environmental Protection Agencylaunched Energy Star, a voluntary labelling programwhich is designed to promote and recognize energy-efficiency in monitors, climate control equipment,

and other technologies. This resulted in the widespreadadoption of sleep mode among consumer electronics.The Energy Star label became a common sight,especially in notebook computers and displays. Similarprograms have been adopted in Europe and Asia.The term “green computing” was probably coinedshortly after the Energy Star program began.Concurrently, the Swedish organization TCODevelopment launched the TCO Certificationprogram to promote low magnetic and electricalemissions from CRT-based computer displays.The Organisation for Economic Co-operation andDevelopment (OECD) has published a survey ofover 90 government and industry initiatives on GreenICTs, environment and climate change. The reportconcludes that initiatives tend to concentrate on thegreening ICTs themselves rather than on their actualimplementation to tackle global warming andenvironmental degradation.

Benefits of ‘Being Green’ :It is nearly established now that heightened focuson environmental concerns is prompting manyorganizations to consider the benefits of adoptinggreen technology which include:

Cost .Efficiency & Improved Performance.Environmental Sustainability throughout theentire IT lifecycle, making it greener by addressingkey areas including:

Green useGreen disposalGreen designGreen manufacturing

Mitigating the ‘environmental impact of IT’:As access to information over the Internet has becomemore global, ownership of the asset pool has becomemuch less concentrated in developed nations. Near-

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ubiquitous connectivity and access to informationhas empowered people to contribute to the world’sknowledge base from every corner of the world.Harnessing this global human capital represents ourbest chance to address critical issues such as climatechange.But this ever-expanding digital universe is not apanacea: It has had environmental consequences.It consumes large amounts of resources to buildout data centers and server farms, and it’s drivinghigher demands for energy. Yet many of theseresources are being wasted. The average utilizationrate for servers ranges from 5 percent to 15 percentand for non-networked storage, 20 percent to 40percent. That means many companies are payingthe energy costs to run data centers at 100 percentcapacity, but are only using 5 percent to 15 percentof that capacity—a tremendous waste.At the same time, as much as 70 percent of theinformation an organization accumulates may neveror only rarely be accessed. Clearly, the IT industrymust minimize the environmental impact of rapidinformation growth by attaining higher levels ofefficiency. Three key technology initiatives supportthis goal:

Virtualization and consolidationInformation lifecycle managementDe-duplication

‘Virtualization and consolidation’ are essential toenergy conservation in the data center, where ITmanagers have installed more and more systemsto enhance performance, redundancy, andavailability, but without a focus on power or coolingefficiency. Virtualization addresses theseinefficiencies by separating software from theunderlying hardware, so that a single computer canrun multiple operating systems and applications.‘Information lifecycle management’ (ILM) is basedon the premise that the value of information changes

over time. ILM uses automatic intelligence to storeinformation in the most appropriate and energy-efficient storage device at every point in its lifecycle.For example, business-critical and real-timeinformation requires systems that offer the highestreliability and performance—and therefore demandmore resources and power. When that informationreaches a less critical state, ILM migrates it to storagethat consumes less energy.‘De-duplication’ vastly reduces the amount of storedbackup data that results from users storing multiplecopies and variations of the same file in manyplaces across the network. De-duplication stopsrunaway duplication by transforming data files intodata segments that can be stored and re-used inmultiple files. The original file is saved and backedup just once to a central server.Gravity of Non- Greening :Computer design has progressed staggeringly wellperformance-wise and astonishingly fast but lookingat it from a green perspective, the work is at itsepoch. It takes a lot of energy to create, package,store, and move. Conventionally, manufacturingcomputers includes the use of lead, cadmium,mercury, and other toxics in general. Usually,computers can contain 4 to 8 pounds of lead alone,according to green experts. It’s no wonder thatcomputers and other electronics make up two-fifthsof all lead in landfills. To counter this growingpollution threat all over the world, there is a needto look for a eco-friendly computer.Data centre servers use 50 times the energy persquare foot as an office does. Data centres arethe main reason behind energy consumption. Energyconsumed by data centres worldwide doubled from2000 to 2005, according to Jonathan Koomey, aconsulting professor at Stanford University and staffscientist at Lawrence Berkeley National Lab. inUSA . As a result, some companies are chasing


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cheaper data centre power. Google is building adata centre on Oregon’s Columbia River to taphydroelectric power, while Microsoft builds nearbyin Washington for the same reason.To keep servers at the right temperature, companiesmainly rely on air-conditioning equipments. Themore powerful the machine, the more cool air neededto keep it from overheating. By 2008, the energyrequired to power and cool servers accounted forabout 1.2% of total U.S. electricity consumption.According to Gartner by 2012, about half of theForbes Global 2000 companies will spend moreon energy than on hardware such as servers. Energycosts, now about 10% of the average IT budget,could rise to 50% in a matter of years. Fasterprocessors use more power, because they use toomuch power and their waste heat increasestemperature for which air conditioning necessary,especially in server farms - between the computersand the HVAC.Stand alone ‘Go- Greening’ initiatives-

Few Greening intitives taken world wide inindustory/businesses in different countriesaregiven below :Climate Savers Computing Initiative is aneffort to reduce the electric powerconsumption of PCs in active and inactivestates started in 2007. The name stems fromthe World Wildlife Fund’s Climate Saversprogram launched in 1999.The Green Electronics Council offers theElectronic Product EnvironmentalAssessment Tool to assist in the purchaseof “greener” computing systems. The Councilevaluates computing equipment on 51 criteria- 23 required and 28 optionaland productsare rated Gold, Silver, or Bronze, dependingon how many optional criteria they meet.

The Green Grid is a global consortiumdedicated to advancing energy efficiency indata centers and business computingecosystems. It was founded in February 2007by several key companies in the industry –AMD, APC, Dell, HP, IBM, Intel, Microsoft,Sun Microsystems and VMware.The Green500 list rates supercomputers byenergy efficiency (megaflops/watt)encouraging a focus on efficiency rather thanabsolute performance.Green Comm Challenge is an organizationthat promotes the development of energyconservation technology and practices in thefield of ICT.The SPEC Power is the first industry standardbenchmark that measures power consumptionin relation to performance for server-classcomputers.

Emerging Green Solutions :

I) Programming efficiencyThe efficiency of programme/algorithms has animpact on the amount of computer resourcesrequired for any given computing function and thereare many efficiency trade-offs in writing programs.A study by a physicist at Harvard, estimated thatthe average Google search released 7 grams ofcarbon dioxide (CO2). More recently, an independentstudy demonstrates that Windows 7 + Office 2010require 70 times more memory (RAM) than Windows98 + Office 2000 to write exactly the same textor send exactly the same e-mail than 10 years ago.

II) Design of Data centerIt is found that Data center facilities are heavyconsumers of energy, accounting for between 1.1%and 1.5% of the world’s total energy use in 2010. The U.S. Department of Energy estimates that


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data center facilities consume up to 100 to 200times more energy than standard office buildings.The U.S. Department of Energy specifies fiveprimary areas on which to focus energy efficientdata center design i.e. Information technology (IT)systems ,Environmental conditions ,Air management,Cooling systems & Electrical systems

III) Terminal serversTerminal servers have also been used in greencomputing. When using the system, users at aterminal connect to a central server; all of theactual computing is done on the server, but theend user experiences the operating system on theterminal. These can be combined with thin clients,which use up to 1/8 the amount of energy ofa normal workstation, resulting in a decrease ofenergy costs and consumption.

IV) Power managementThe Advanced Configuration and Power Interface(ACPI), an open industry standard, allows anoperating system to directly control the power-savingaspects of its underlying hardware. This allows asystem to automatically turn off components suchas monitors and hard drives after set periods ofinactivity. In addition, a system may hibernate, wheremost components (including the CPU and the systemRAM) are turned off.

V) Video card designA fast GPU may be the largest power consumerin a computer.Energy-efficient display optionsinclude:

No video card - use a shared terminal, sharedthin client, or desktop sharing software ifdisplay required.Use motherboard video output - typically low3D performance and low power.Select a GPU based on low idle power, average

wattage, or performance per watt.VI) Materials recyclingRecycling the computing equipments can keepharmful materials such as lead, mercury, andhexavalent chromium out of landfills, and can alsoreplace equipment that otherwise would need tobe manufactured, saving further energy andemissions. Computer systems that have outlivedtheir particular function can be donated to charitiesand non-profit organizations. A drawback to theseschemes is that computers gathered throughrecycling drives are often shipped to countries suchas China and Pakistan. where environmentalstandards are less strict than in North America andEurope. The recycling of old computerssimultaneously raises an important privacy issue.The old storage devices still hold private information,such as emails, passwords, and credit card numbers,which can be recovered simply by someone’s usingsoftware available freely on the Internet. Deletionof a file does not actually remove the file fromthe hard drive. Before recycling a computer, usersshould remove the hard drive, or hard drives ifthere is more than one, and physically destroy itor store it somewhere safe.The Way Out- Altering Work habits of computerusers :The work habits of computer users and businessescan be modified to minimize adverse impact onthe global environment. Here are some steps thatcan be taken:

Use flat panel liquid crystal display (LCD)monitors in place of conventional CRTmonitors, which provide up to 70% powersavings and up to twice the lifespan.Efficient processors are another criticalenergy-saving element as Intel, AdvancedMicro Devices, and Sun Microsystems all have


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adopted the green religion. Sun’s betting onmulticore chip efficiency to fuel interest innew high-end servers. Its 32-thread Niagara1 chip, Ultrasparc 1, consumes 60 to 62 watts,while the Niagara 2 chip due in the secondhalf will have 64 threads & yet run at 80watts only.Buy energy efficient computer products. AnENERGY STAR rated computer, forexample, uses much less electricity thanconventional computers.Select the right-sized monitor to meet yourneeds. The bigger the monitor, the moreenergy it uses. Choose multifunction devices(MFDs) - like HP All-in-Ones - that do thework that used to require several machines.Use ‘notebook’ computers rather than‘desktop’ computers whenever possible.Power-down the CPU and all peripherals duringextended periods of inactivity.Try to do computer-related tasks duringcontiguous, intensive blocks of time, leavinghardware off at other times.Use the power-management features to turnoff hard drives and displays after severalminutes of inactivity. Enable the energysaving settings on PCs and peripherals.Networking printers and copiers will decreasetheir idle time and provide for more cost-effective use of the equipment.Minimize the use of paper and properly recyclewaste paper.Dispose e-waste according to state and localregulations.Employ alternative energy sources forcomputing workstations, servers, networksand data centers.Setting Power Options of computer to sleepmode when it’s not active is a good practice.

It enables PC’s to go to stand-by mode &turn off the monitor when the PC is idle.Flat panel monitors use less energy thantraditional CRT monitors. Avoidance of theuse of screen savers contribute to energysavings by allowing a monitor to enter instand-by mode.Smaller form factor (e.g. 2.5 inch) hard diskdrives often consume less power thanphysically larger drives. Unlike hard diskdrives, solid-state drives store data in flashmemory or DRAM. With no moving parts,power consumption may be reducedsomewhat for low capacity flash based devices.Print only what we need and use of recycledcontent paper whenever possible is anothergood practice. Most printers today have atwo-sided printing option which candramatically reduce paper consumption.

Re-aligning Office procedures- Paperless officeapproach:Long Term Storage of DocumentsTraditionally the long-term storage of documentshas been achieved through paper archiving and thetypical office worker in the US uses approximately10,000 sheets of copy paper annually with theaverage document being copied 19 times duringthe course of its work cycle; this equates to anannual consumption of 85 million tons or papereach year. However the introduction of the digitaldocument has radically changed the way businessesare managing their work flow documents. If eachPDF user printed one less document, it would save80,000 trees & 118,000 tons of carbon dioxidefrom entering the atmosphere each year.Ultimately, the paperless office may remain ahypothetical concept to many but more and moreorganizations are seeking to make a reduction in


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environmental impact by reverting to an electronicstorage system. Therefore, the pertinent questionis not whether we store our documents electronicallybut how?PDF Files – The Ideal Format for thePaperless OfficeIn order to successfully implement and sustain apaperless environment, a good universal digitalformat is required and the choice of storage formatfor electronic documents is varied. Nonetheless,it is the Portable Document Format (PDF) format,created by Adobe in 1993 for the purpose of portabledocument exchange between systems andapplications, which has emerged as the industryleader. PDF documents have a variety of featureslike security, compact size, accessibility, usagerestrictions and the ability to store all kinds ofimage formats . With these advantages, PDF iswidely considered to be the electronic equivalentof paper and comes as the best format to be usedin a paperless office.How to Establish a Paperless OfficeWith the assistance of modern computers andscanners, the paperless office is not hard to establish.Scanners can be used to import paper documentsinto a computer for long-term storage: The scannermakes a copy of the image which is then turnedinto a scanned PDF or TIFF file. Whereas the filescreated by scanners are not electronic character-based files but unsearchable images of the originaldocument, there are solutions such as OCR (OpticalCharacter Recognition) technology at hand toconvert these scanned documents into fullySearchable PDF files.

Green Computing...Our Responsibility:Green computing is an issue that impacts everyone.And it’s an issue shaped by nearly everyone in thedeveloped and emerging economies. E-waste

threatens the planet as both a source of toxinsand through sheer tonnage. The UN EnvironmentProgram estimates the globe may be producing asmuch as 50 million tons a year in e-waste.Companies within the computer, electrical applianceand consumer electronics industries have alwaysaccounted success by their bottom line profits. Butin a plainly endangered world, a new greener wayof accounting seems to makes more sense. Actionsnow must be measured in terms of their impacton people, planet, and profits rather than just thebottom line.This broader view enables companiesto account for their ventures in terms of theirsocietal, ecological, and economic effects. This viewhas also revealed that an ecological approach todesign and manufacturing often equates to the mosteconomical. This is most clearly true in mattersof energy conservation.

The Three Publics: Challenges & Solutions ofGreen computing:The three publics that define the challenges, andhopefully, the solutions of green computing arethe consumers, regulatory agencies, andmanufacturers. These three entities must all do theirparts in order to solve the major problems causedby the making, using and disposing of computingdevices. Each must cooperate in a global fashionto meet the challenge.Conclusion:So far, consumers haven’t cared about ecologicalimpact when buying computers, they’ve cared onlyabout speed and price. But as Moore’s Law marcheson and computers become common commodities,consumers will become pickier about being green.The trends in green computing are positive.Consumers are increasingly aware of the problemsof energy waste and the negative impact e-wastehas on the environment. Organizations like EPEAT


are bringing increased awareness to consumers. Thisincreasing awareness has resulted in a buyingpreference for green solutions. In addition, regulatoryagencies are making positive moves to stem a risingtide of e-waste. Electronics manufacturers are doingtheir part because of governmental regulations, andbecause it’s good business to do so. RoHS(Restriction of Hazardous Substances), in particular,is a bright spot because of its global adoption.Meanwhile, technology continues to yield solutions

with greater energy and material efficiency. Sametime it is essential that successful green endeavorsneed to be of value to a business, anything elsewill only get a minimal uptake or perhaps lip-service.The greenest computer will not miraculously fallfrom the sky one day, it’ll be the product of yearsof improvements. It’s appropriate to conclude withthe Chinese quote –

“If we do not change our direction , we arelikely to end up where we are headed.”

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"Yesterday's DOCTOR,Today's DOC-MANAGER"

Dr. S. K. Mitra Introduction :-Writing an article may not be that easy but systematicexpression of thoughts may be an easier approach.Comprehending that idea, I ventured out to write somethingabout what I felt and thought.Earlier when we passed out of medical colleges, we learntonly to become patient-centric, concerned about his/herdisease process, related treatment and well-being only. Hardlywe used to deal with patient’s other psycho-social factors,difficulties and rarely used to communicate with patient’srelatives. It was literally one-way process from our side andsince patients used to assume doctors as “demi-gods’, theyrarely braved to question us. Neither there was, and nortoday there exists any subject on communication skills withinthe medical school curriculum. So doctors are mostly stampedas poor communicators and hence poor managers. Thereare examples of exceptions of course. But scenario hasbegun to change for last one decade. My younger colleagues,

Dr. S. K. Mitra, Prof. HM, Railway Staff College,Vadodara.


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who are torch-bearers of any organization, are nomore ‘doctors’ only, but are budding and promising‘doctor-managers’now.

Subject :-Contrary to popular belief, medical doctors canbecome effective and efficient corporate managers.Doctors share many of a business manager’s bestqualities __ Richard Smith, editor of “The BritishJournal of Medicine”, in his article named, “Whatdoctors and managers can learn from each other-A lot”, wrote – Both professions are full of highlycommitted people who work extremely hard – oftento the extent of damaging themselves and theirfamilies….Each have unique characteristics likewise, that whenadapted by the other, result in a powerhouse product.Managers and doctors are people of action. Theyare also used to taking risks. There are specialistsin both the professions: managers may specializein finance, marketing or human resources just asdoctors may in their various disciplines. Bothprofessions need competence in communication,but today both have mostly poor reputation ascommunicators, but have excessive jargon.Interpersonal skills are also crucial in bothprofessions, and the difficult most part ofmanagement is the ‘touchy-feeling’ aspects.Managers and doctors have to break and come outof that aspect with certain change and try toencourage people in their respective environmentto change….Some time spent with customers eg. doctors withpatients, is invaluable and many senior managersfind some way to build this into their working lives.This difference in orientation is important: Doctorsthink first about their individual patients, managersthink first about organization. For any hospitalor primary care center to succeed, it will need bothkinds of thinking.

In terms of strategic thinking and working witha team, however, it is doctors who will benefitmore if they take their cue from managers andnot the other way around. This requires buildingdynamic partnerships with the clients in order toprovide right kind of health services and productsto them, matching organizational capacity withdemand.For the past couple of years, a revolution has beengoing on in medical education. Gone are the daysof the “Men who play God”. The focus has thusshifted from the doctor to the patient. Previously,in medical science the mindset was: “see one, doone, teach one”. All that has now changed toinvolve new models like mentoring, coaching, self-assessment, ethics, leadership and other psychosocialcomponents. These aspects of medical educationtoday complement technical competencies topromote a more complete approach towards health.The epitome of this revolution today in medicaleducation is a “new breed of doctor”, that bridgestechnical competency, patients’ needs andpsychosocial milieu. Management is a naturalprogression of this revolution. Not managementin the business sense, but management as an addedcompetency to make better doctors. Nowadaysdoctors do not say “We will cure disease”, rathersays “This is how we plan or intend to manageyour conditions”.Our new breed of doctors has the entrepreneurialspirit, not only in the business sense, but likewiseas social entrepreneurs. They are aware that peoplecan be influenced, mobilized and added to thearmamentarium of medical and surgical proceduresto manage patients. Take for example chronic andlifestyle disorders like hypertension and diabetes.Life style modification is a cornerstone of successfulmanagement. It is accepted that diet and exercise


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programs are always more successful alone withsupport of significant others. By leading thedepartment engaged in the provision of health carewithin an organization, one should face the challengeand share the opportunity by virtues of these newbreed of today’s doctors and can show the worldwhat the ‘doctor-manager’ can accomplish.We should now start to relate change in our railwayorganization and society in general. In initiatinga change effort, we actually create a sense of urgency,win over people to come in on the change effort,bestow ownership for change and if our leadersown the change, they become the effectors ofsustainable change. For this, a genuine andpermanent interpersonal relationship is required andsuch relationship can only prosper if it revolvesaround the needs of the desired changes – thisconcept is nothing new but age-old “Johari Model”.A close interpersonal relationship is maintained bybuilding trust, acceptance and support. All thesewould lead to development of faith among variousgroups of interrelated people. Since faith is saidto be contagious, if developed once, is sure tohave positive influence on the organizationaldevelopment. Transactional Analysis here playsa major role for studying job satisfaction and person’smotivation within the organization, since TAconcentrates on the rational and analytical side ofhuman behavior that can be observed. This mayalso help the leaders to analyze their own behaviorliberating them from unfounded pre-assumptions,utilizing their time in constructive work and makingdesirable change in their attitude towards the peopleemployed under.Now, can we reinvent a corporate culture withinthe organization? Primary objective here would

be informing the organization at all levels. Peopleknow what they want and that they also knowwhen they have to move on. So, we are to letpeople determine their path…. Getting the rightpeople on board. People went and people stayed.But the consistency in action and constant awarenessof organizational goals only sets the stage forachieving the right fit with people.Hence the issue now comes to the psychologicaldrive or force that directs someone towardsindividual and or organization’s objectives byenhancing Quality of Work Life. A hospital managerhas to have an understanding of the way peoplebehave in the organization and what are their innermotives or drives. The interrelationship betweentheir needs, drives and goals. Understanding thesewould help to understand the work-attitudes ofeach and every person attached to the organization.

Merger :-For one thing, doctors aren’t comfortable withuncertainty. Managers have to be comfortable withit. Managers deal with organizations, doctorsprimarily manages individuals. It always starts withthe desire to become a better doctor. But learningfrom both the disciplines will achieve this – TheDoctor-Manager. Combining the two is a matterof expanding your tool-kit – among others wouldbe better interpersonal skills, change management,social entrepreneurship, systemic thinking, financialsavvyness, resource allocation, strategic thoughts,etc. Final message is that the new breeds ofdoctors are the outstanding clinicians. By mergingthe two disciplines they can be more dynamic futureleaders, social catalysts and we and the world cancherish a different doctor —— DOCTOR-MANAGER.


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West is West,East is Best

Mr. Rajiv Agrawal In India, we join our hands & say “Namastey” to greeta person or a group of persons. Why do we join our hands?We can simply say “Namastey”. In the countries to theEast of India, people raise one of their hands to “Salaam”a person. Is there any logic behind it?To understand this, we need to go back thousands of yearswhen there was no concept of Nation states or Countryor even Village. Society was Tribal. There were numeroussmall tribes and, loyalty to one’s tribe was of paramountimportance. There were constant battles between tribesfor physical resources and space. When a person, froma tribe, had to go to another tribe then that person usedto carry arms for his protection as well as for attack, ifthe need be. Different tribesmen used to be vary of eachother, therefore.But as the mobility grew, need for contact between tribesalso grew. When a tribes man had to go to another tribe’sarea, he had to first present himself to the elders of theMr Rajiv Agrawal is working as Sr. Proffesor

(Elect.Engg.)


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tribe. He had to lay down his arms and to conveytrust, he then had to raise both his hands and jointhem to show that he had not only laid down armsbut even had to make considerable effort to liftthe laid down arms. This is how “Namastey” hasevolved. Literal meaning of “Namastey” is “ I bowto you”. While saying “Namastey”, we bow downour head. Meaning is that one has not only laiddown arms but is also offering one’s head. Thisis primarily, to create trust.Go to Far East, say, to Japan. The greeting customis to keep both hands joined to the body on eitherside & then bow to various degrees depending onthe degree of respect, one wishes to convey. Meaning

is, one has not only laid down one’s arms but hasalso no intension of picking up arms and,importantly, one has so much trust in the goodnessof other tribesmen or one respects them so muchthat by bowing upto 60 degrees, one is offeringone’s head without even keeping an eye on thetribesmen.Now contrast these customs with western greetingcustoms. In the near west, only one hand is raisedfor “Salaam”. Other hand is free to continue tohold arms and there is only slight bowing. Sameis true for west, where handshake is done withone hand & other hand is free. This is the levelof mistrust in Western cultures.

Rajiv AgrawalSr.Prof. (Elect. Engg.)


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Towards anInnovative Economy

Dr. B.V.L. Narayana The aim of this chapter is to visualize what sustains aninternal environment which makes any organisation aninnovation driven service provider. In doing so, the higherorder question is how the innovation creation abilities ofIndian railways would drive the Indian economy.To be able to answer the above referred crucial questions,one needs to understand what are the generic sources ofinnovation, what should be the structure of the innovationprocess to take advantage of these sources and what valuesshould be present in the organisation which should drivethese innovation related activities. This thus calls for takingstock of the status of these processes on Indian railwaysand the frame out a functional system to achieve a sustainedinnovation generating capability.

THE PROCESS OF INNOVATION:Innovation has been defined as the first attempt to carryan invention into practice (Fagerberg 2004, p 4). It has

Dr.B.V.L.Narayana, Senior professor(Transportation management)Railway staff college, Vadodara.


also been defined as the adoption of an internallygenerated or purchased device, system, policy,program, process, product or service that is newto the adapting organization (Daft 1982 as quotedin Damanpour 1991). Innovativeness is adoptionof multiple innovations (Damanpour 1991).Adoption of innovation encompasses generation,development and implementation.Literature has distinguished between “Innovation”and “Invention” and yet they are closely linked.They can be seen as part of the same process withinvention preceding innovation, as can be seen fromthe definition of innovation (Fagerberg 2004).Inventions can get carried out anywhere, but usuallyinnovations get carried out in firms. The conversionof an invention into an innovation requires acombination of various types of knowledge andskills such as production, marketing, consumerbehavior, and distribution to name a few. It alsorequires financial resources. Thus the roles of theinventor and innovator (also called “entrepreneur”by Schumpeter) are different.The conditions for conversion of an inventioninto an innovation critically require sufficientnumbers of consumers (or critical levels of need);technological feasibility of production andavailability of complimentary factors facilitatingtechnological production for use or creation ofneed. For eg: The creation of the flying machine,at the idea level was prevalent from the timesof Leonardo da Vinci (1452 –1519 AD). It wasonly after the invention of the Internal combustionengine (19th century) and more so the commercialproduction of petroleum (Late 19th and early 20thcentury) which facilitated the production andcommercial utilization of this idea. Thus therecan be considerable time lag between an idea,the production proof of its feasibility andcommercial utilization of it.

The new product / service developmentprocess:The development of a new product or service andit commercial exploitation (The process ofinnovation) consists of the following phases:

Idea Generation and ScreeningConcept Development and TestingMarketing StrategyBusiness AnalysisProduct DevelopmentTest MarketingCommercialization

Successful innovations are a result of a conscious,purposeful search for innovation opportunities(Drucker 1998). The sources of these opportunitiesfor innovation (Also called the sources ofinnovation) can be categorized based on

Whether the source is one which derives itsbenefit by having a functional relationship withthe innovation (Von Hippel 1988) such as users,manufacturers, suppliers, distributors, etcWhether the source is internal to the firm orindustry or in the societal environment aroundit (Drucker 1998)—such as unexpectedoccurrences, incongruities in processes, processneeds, and industry and market changes(including changing customer needs) which areinternal to firm or industry. The sources, whichare at societal level, are demographic changes,changes in perceptions of people and newknowledge.

Purposeful and systematic innovation begins withthe analysis of the sources of new opportunitiesand each source has different implications for eg:demographics would have little use for peoplelooking for opportunities to develop industrialprocesses, while new knowledge can have significant

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implications if pursuing opportunities created bychanging customer perceptions. The implication isthat every source of opportunity must be analyzed(Drucker 1998).Innovation is both conceptual and perceptual, asinnovators are matching ideas to opportunitiesperceived in the environment around them. Hence,they have also to go out, look, listen to people,potential users, understand their expectations andneeds. Innovation is also management of knowledgeand capabilities of a firm. Innovation always startssmall, and is hard work more often than a strokeof genius.

Innovation process in large firms:To establish and manage a systemic process ofinnovation in firms requires a combination ofspecialized activities and coordination across theseactivities. Therefore, in firms, which establish and

manage the systemic process of innovation, thereare roles for specialists and coordinating managers.The process of innovation can be segregated intothree distinct sets of activities — invention,acceptance and implementation.

The inventors who focus on scientific andtechnical invention prior to conceptdevelopmentChampions who are adept at selling the projectsin organizationsImplementers who focus on facilitating theproject through the firm’s formal developmentprocessInnovators who operate across all the threephases of innovation

The requirements of knowledge, skills andpersonality traits for successful execution of theseroles have been determined to be as given below(Adapted from Sim et al 2007):


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All the activities involved in the systemic processof innovation are fundamentally subject to thestrategic orientation of the firm i.e. what subjectsor issues of firm get the attention of the decisionmakers and what get incorporated into the strategyof the firm (Ocasio and Joseph 2005).It implies that firms need to put in place differentmanagement systems for different types ofinnovations and the people and processes associatedwith them. It also needs to manage all the fourtypes of people associated with the firm’s innovationprocess. This would require effective integrationsystems such as knowledge, communication andresource allocation management systems. Mostcritical would be the top management ownershipand drive, their incorporation of key business issueswhich the firm would like to exploit, and theirability to identify suitable people to fill the rolesof inventors, champions, implementers andinnovators.

THE PROCESS OF INNOVATION ONINDIAN RAILWAYS:Indian railways is a service organization in thebusiness of transportation. It had achieved a double-digit growth rate; both in output and in revenues;during the period 2004-2009. It aims to doubleits transport capacity, reduce its unit cost oftransportation, while maintaining its growth ratein achieving transport output in both passenger andfreight segments; and therefore its revenue growth(Chairman railway boards message to railway staffdated February 2009).Innovative measures introduced by the railways,have been credited with the success and areconsidered the cornerstone for future growth andsuccess (Chairman railway boards message to railwaystaff dated February 2009; Honorable Minister forrailways message to railway staff dated may 2009).

The process of innovation:

The systemic process of innovation on Indianrailways is structured around the followingcomponents:

The technological pursuits of Railway Designand Standards organization (RDSO) (Inventor)The implementation efforts of the divisionalunits headed by Divisional railway managers(Implementer)The scheme of capturing innovative ideas andindividualized projects being generated in thefield by the Railway staff college (Collector)The directorate of efficiency and research inthe railway board, which monitors andcoordinates these activities, which includes theirinteraction with other institutions. TheInnovation promotion group does this job(Champion).

The inventors (Research, design andstandards organization—RDSO): This organization was set up with the mandateto provide design standards for the then privaterailways for rolling stock and track. The aim wasto ensure coordinated management of traffic acrossthese railways by the Indian railways conferenceassociation. Standardized designs were to enablefree flow of railway stock across uniform gauge,thereby avoiding transshipment.Presently, the mandate of this organization is toprovide technological research and output so thatthese advances can be used to improve transportoutput and service delivery.The Efficiency and research directorate (Champion)This directorate deals with the subjects directlyrelated to efficiency and research such asbenchmarking, technology mission for safety andExecutive directors inspections. It also monitorsthe Chairman railway boards action plan, whichconsists of indices of operational efficiency and


output, including financial figures of earnings. Thereis a multi-departmental innovation group, whichis mandated to look at issues of productivity andreliability of assets, introduction of technology,customer satisfaction and efficiency in operationsfor which they can interact with insiders and outsidersalike. This directorate also drives the idea-capturingproject run in the railway staff college and finalizesthe minister’s award for the best projects done inkey training courses.

The Railway staff college (Collector) :The railway staff college at Vadodara is the premiertraining institute where the initial courses andmanagement inputs for all officers are given. Thereare technical institutes for various technical andnon-technical services, which cater to the functionaloriented course trainings for respective serviceofficers.The Staff College does the pre promotionalmanagement input courses also. It is as part ofthese courses curriculum that project work is done.The criteria for the identification of projects areideas that are implementable at the divisional leveland have significant monetary benefits by way ofadditional revenues generated or cost saved. Thisscheme has been run from year 2000 AD.Implementers : (The officers atthe divisional level) The divisions implement the ideas and productsthat get incorporated into the overall strategicdirection of the organization.ISSUES IN THE SYSTEMIC PROCESSOF INNOVATION BEING EXECUTEDON INDIAN RAILWAYS:Literature on innovation shows that organizationsmust manage the three key sets of activities whichare :

Inventions through a group of inventorsAcceptance of inventions through a group ofchampions

Implementation through a set of implementersAnd to coordinate and integrate the entireprocesses have innovators.

Literature on innovation shows that organizationsmust manage three key sets of activities that are:

Inventions through a group of inventorsAcceptance through a group of championsImplementation through a group ofimplementersAnd to coordinate and integrate the entireprocess have innovators

Literature on innovation shows that organizationsmust manage the three key sets of activities whichare :

Inventions through a group of inventorsAcceptance of inventions through a groupof championsImplementation through a set of implementersAnd to coordinate and integrate the entireprocesses have innovators.

The process of invention requires a two facetedapproach—one that looks at technology and onethat looks at opportunities for innovation in theenvironment influencing the activities of anorganization. These would cover activity centricissues and customer centric issues. Being a serviceorganization, Indian railways have a greater needto look at customer centric issues such asdifferentiating customers based on differential needsand identifying trends in changing customer needs. Indian railways do not seem to focus on the externalenvironment—external to the organization such aschanging people preferences, changing customerneeds. There seems to be no effort at evenidentifying different customer segments. There areno projects that focus on such issues. The entireemphasis of innovative activity seems to be directedat achieving cost reduction, ensuring asset reliabilityand capacity creation. The analysis of projects

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undertaken by RDSO, the technology mission onsafety and in the MDP and AMP courses at StaffCollege reveal a predominant emphasis on issuesinternal to the organization and highly functionalorientation.This highly one sided functional orientation in allits activities indicates a predominant “Mechanistic”(Burns and Stalker 1961) orientation. Such anorientation indicates an organization that is usedto operating in stable environments where demandsexceed supply. Emphasis is on capacity creationand optimization for meeting demand. It alsoenvisages a culture that is extremely functionoriented with high levels of specialization anddepartmentalization and a hierarchic andbureaucratic control system.This is further reinforced by the fact that thereis a considerable disconnect between proclamationof intent to transform from transporters to Logisticand Supply chain management (Approach paperto eleventh plan) and the deviation seen in actionsbased on the resource allocation in the budgets.The allocation for Research and development forRDSO has been increased only in the eleventhplan. Till the tenth plan the average allocation peryear was not more than twenty crores (Approachpaper to the eleventh plan).There are no technology projects that look at whichlook at Supply chain or logistic issues, nor do theyreflect projects to identify patterns of customerneeds through segmentation. The innovationpromotion group has not achieved any progresswith regard to identification of customer centricopportunities for innovation. The mandate for thisgroup does not seem to reflect this concern.The disconnect seems to continue in the way theroles for Efficiency and research directorate andRailway staff college are envisaged. The Efficiencyand research directorate does not champion the

projects for technology innovation nor foridentification of potential innovation opportunitiesthrough market research. Innovation is one of themany subjects it manages. Perhaps it is a lesssignificant one as the Chairman railway board (CRB)action plan monitoring format does not containany indicators to assess generation and conversionof potential innovation opportunities at any unitlevel. There is also no significant output in formof reports as could be seen for benchmarking, CRB’saction plan, or efficiency parameter monitoring (Thisincludes asset reliability data).The Railway staff college uses parameters forselection of a project in AMP and MDP coursesthat constrain it to process and incrementalinnovations but do not constrain it to be highlyfunctionally oriented. However the prevailing cultureamong officers in the field units, perhaps, forcesselection of projects that are highly functionallyoriented and one-dimensional. What happens tothese ideas and opportunities identified is unclearbut the fact that they do not find mention in theprojects under the budgeting process indicates adead-end for these opportunities.This highly onesided functional orientation in all its activitiesindicates a predominant “Mechanistic”(Burns andStalker 1961) orientation. Such an orientationindicates an organization used to operating in stableenvironments where demand exceeds supply.Emphasis is on optimization and capacity creationfor meeting demand. It also envisages a cultureextremely function oriented with high levels ofspecialization and departmentalization and ahierarchic and bureaucratic system of controls.This is further reinforced by the fact that thereis considerable disconnect between proclamationof intent to transform from transporters to logisticand Supply chain operators (Approach paper toEleventh Plan) and the deviations in the actions


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as seen from the resource allocation in the budgets.The allocation for Research and development forRDSO has been only increased in the eleventhplan. Till the tenth plan, the average allocationper year was not more than twenty crores (Approachpaper to eleventh plan).There are no technology projects, which look atsupply chain, or logistic issues nor they reflectprojects to identify patterns of customer needsthrough segmentation. The innovation promotiongroup has not achieved any progress with regardto identification of customer centric opportunitiesfor innovation. The mandate for this group doesnot seem to reflect this concern.The disconnect continues in the way the roles forEfficiency and research directorate and Railwaystaff college are envisaged. The Efficiency andresearch directorate does not champion the projectsfor technology innovation nor for identification ofpotential innovation opportunities through marketresearch. Innovation is one of the many subjectsit manages. Perhaps it is a less significant one asthe Chairman railway board (CRB) action planmonitoring format does not contain any indicatorsto assess generation and conversion of potentialinnovation opportunities at any unit level. Thereis also no significant output in form of monitoringreports as could be seen for benchmarking, CRB’saction plan or efficiency parameter monitoring (This includes asset reliability data).The railway staff college uses criteria for selectionof topics for a project in MDP and AMP, whichconstrain it to process and incremental innovationsbut do not constrain it to be highly functionallyoriented. However, the prevailing culture amongofficers in the field units perhaps forces selectionof projects, which are functionally oriented andone-dimensional. What happens to these ideas andopportunities identified is unclear, but the fact that

they do not find mention in projects under thebudgeting process indicates a dead end for theseopportunities.

Overall, when we look at the systemic process ofinnovation on the Indian railways, what stands outis that a system has been put in place which ishighly operations and efficiency oriented withoutany connect to customer preferences and needs.The technology and process ideas, whichpredominate result in only efficiency orientedincremental innovations and no revenue generationopportunities. So what should Indian railwaysdo?Three paradigm shifts have to be introduced intothe business practices on Indian railways, whichwould be:

A shift from a functional orientation towardsa composite and integrated approach to businesswhich would entail a more focused approachon the customers and markets, which in turnwould drive the technological research activities.A Shift from capacity based revenue generationsystem to a combination of capacity based andnon-capacity based revenue generation, whichwould require identification of activities acrossthe entire value chain of logistics and Supplychain management. The necessity to generaterevenue should become the prime focus insteadof cost savings.Relook at the management of finances andinvestments- a review of the projectmanagement system on Indian railways

This paradigm shifts would be required in the strategicorientation of the organization and this would drivethe systemic process of innovation on Indianrailways.


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While we looked at the reorientation in the strategicdirection in the chapter on goals, what we wouldbe more interested to know is how the organisationalinternal milieu gets impacted and it in turn thensustains the organisational performance.

The intended impact of change of strategicorientation on the innovation process:While the strategic orientation of Indian railwayswould set the path for identifying the goals forhigh performance, a system must be created toenable execution of the plan to achieve these goalson a consistent basis. Such a system must allowfor creation and execution of implementable ideaswhich would exploit the available technologies todeliver requisite services effectively andefficiently—an effective innovation ecosystem. Thiswould have to be supported by:1. A knowledge management system which would

source the requisite knowledge, store and makeit available for the innovation ecosystem toact upon it. It would also further documentthe activities of the innovation ecosystem tocreate future knowledge.

2. A competency framework supported by atraining system which would identify, document,generate and transmit requisite competenciesto enable high performance delivery of identifiedservices

3. A results framework document and systemwhich continuously enables alignment of theinnovation, knowledge and competencyecosystems to desired goals.

The knowledge management system:The knowledge management system aims to capture,store, allow access and use of all knowledge whichgets generated out of all activities carried out onthe Indian railways in line with delivery of services.It also looks to bridge through links to external

sources of knowledge which would enableintroduction of innovation in the stream of activitiesbeing carried out. The components of such a systemwould consist of :1. The creators of ideas and knowledge - all the

people involved on Indian railways in servicedelivery-directly or indirectly

2. The system at each unit level which documentsthe ideas and knowledge so generated-documentation

3. The system which links the variousdocumentation and storage sources of suchknowledge and allows access to—the backbone

4. The system which screens this knowledge anduses it to generate innovative ideas and takesthem through to implementation stage—theinnovation ecosystem.

5. The linkages to external sources of knowledgesuch as other academic institutions

How effectively this knowledge system is leveragedis dependent upon the volume, breadth and varietyof topics which get included and recorded. It alsois a function of how effectively local unit headsallow access to this source and foster idea generationand trials.Implications for Indian railways: While the Indianrailways have progressed considerably in creationof an Information and communications backbone,it suffers considerably from lack of documentationand storage of such knowledge generated.

There is an urgent need to focus on theseactivities and make it part of regular activitiesto be carried out at each unit level. This activityshould be an indicator for personnel evaluationat each unit level.There is also an urgent need to categorize andgive a structural backbone to categorize theknowledge being generated at various points


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on the system. Separation of knowledge foruse on a short term and long term time linesis essential.There is also a need to standardize numericaldata being collected and storedAccess to all is to be made available for use,which is presently greatly constrained.

Activity classification and standardization ofinformation to be stored by all is one critical wayto start this knowledge system. This will allow thesystem to identify the various sources of creationof knowledge and the relevant users.

The competency assessment anddevelopment framework :The competency framework consists ofidentification, measurement, creation and transfer,and utilization of the various competencies requiredto effectively execute various activities being carriedout on the Indian railways. The aim of this systemis to equip various staff with desired knowledge,skills and attitudes to execute allocated activitiesin the most effective way, such that it enablesachievement of high performance goals.The components of such a systemwould consist of :

A system which identifies evaluates and utilizesthe required competencies to execute allocatedtasks in line with the strategic orientation ofthe organization. This would be the personnelunits attached to various field units inconsultation with the respective technicalpersonnel.A system which recognizes the deficiencies inthe requirement of competencies arranges forassimilation and transfer of these requirementsand facilitates their effective evaluation—bothin terms of transfer and usage at the field level.This would be the training system prevalentin the organization.

A system which recognizes potential futureactivities to be carried out based on generationof ideas in the innovation ecosystem, locatesthe knowledge and skills required to executethese futuristic activities and generatesmechanisms to create and assimilate thisknowledge, skills and attitudes. This wouldconsist of the training system, the strategicHuman resource development unit in the railwayboard and zonal railways and the linkagesamongst the knowledge management systemand external sources of knowledge—academicinstitutions.

How well this identification and management ofcompetencies is dependent upon the strategicorientation of the organization, the strategic Humanresource unit activities and the competencies ofthe training system, including its ability to act asa structural link between external sources ofknowledge and internal usage of such knowledge.Implications for Indian railways: The Indian railwaysis completely deficient in such a competencydevelopment framework. There is no strategicHuman resource development as a policy or activityand so is the lack of such a specific unit at anylevel. The role of training institutions is marginaland is stereotyped based on assessments made agesago. Despite the criticality of human resources,it is still viewed in numbers and not as qualityof resources available. So,· A paradigm shift in the strategic orientation

to Human resources is required. The shift hasto be from looking at numbers to looking atboth numbers and quality in line with thestrategic orientation of the organization. Thisactivity would be a continuous one as Strategicorientation will change with time and hencestrategic human resource management wouldalso change in line with changing strategicorientation.


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To ensure this, there is a need to develop afunctional competency assessment anddevelopment system which will consist of astrategic human resource management unit atRailway board and zonal railways level; thetraining institutions, linkages to outsideacademic institutions and linkages to theorganizations knowledge management andinnovation ecosystems.The key activities of this system would consistof competency requirements identification, anassessment system, a training developmentsystem, a transfer system and a documentationand record keeping system. So developmentof these processes is essential.Linkages to outside academic system to helpin sourcing of knowledge, competencies,resources for training and transfer and evaluationof competencies are essential.

The results framework document:The entire organization is driven by the strategicorientation given by the top management and getsreflected in the indicators incorporated into theResults framework document. This document actsas the distant focus which aligns all the activitiesof the organization and is the bench mark againstwhich an organizations performance will becompared. It means that the identification of goalsleads to identification of corresponding objectivesand indicators, which are to be achieved.For an appropriate and effective performance, theresults framework document must truly reflect thestrategic orientation of the organization, but it mustbe broken down to get interlinked performanceindicators at all levels. Consonance betweenactivities or tasks allocated to and indicators tobe used to evaluate the corresponding unit is criticalfor high performance.

Implications for Indian railways: Presently, on theIndian railways, targets are partly output drivenand partly process driven. However, financial targetsdo not percolate downward to divisions and arenot stressed upon. Focus is more on physical outputtargets. There are no process indicators which lookat working of the innovation ecosystem, theknowledge management system and the competencyassessment and development framework.So, on the Indian railways, the following needsto be done :

Emphasis must shift from physical output targetsto financial and physical output targets. Thiswould encourage innovation towards revenuegeneration and maximization.There should be indicators which indicate howfield units are using and contributing towardsthe overall innovation ecosystem, the knowledgemanagement system and the competencyassessment and development framework.Incentives and rewards must exist for innovativeideas which are accepted by the organizationfor exploitation in the system.

The innovation ecosystem:The principal objective of such a system is to generateimplementable ideas which can then be exploitedfor improving and maintaining the revenue earningpotential of the organization. It would consist ofthe following components:

The idea generating mechanisms which consistof all people in units who attempt to findsolutions to problems faced during day to dayactivity execution. It also, critically, includesmiddle and top level managers who aim tounderstand the changing nature of businessenvironment impacting the organizationalservices and try to create opportunities for itenable it to manage competition. Thus ideageneration can occur anywhere on the system


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and is crucially dependent upon access to sourcesof knowledge which form the basis forunderstanding and finding of appropriatesolutions to problems noticed or opportunitiesidentified for business.The testing mechanisms which convert ideasinto pilot projects and validate theirimplementability. This would include all fieldunits, training and research institutions.

· The strategic innovation monitoring unit whichtakes the responsibility of maintaining andmanaging the innovation ecosystem andchampions the pilot projects in the field. Italso, critically, takes up the successful pilotprojects for inclusion and exploitation as partof the strategy of the organization. This wouldconsist of a directorate in the railway board,aided by small number of filed units especiallyin a training and research institution.The business intelligence units which wouldcontinuously scan the business and technologyenvironment and map all the activities whichwould significantly impact the organizationalactivities and thus its existence. This wouldconsist of specialized unit in the railway boardand aided by small similar units in training andresearch institutions and at zonal railways.

How well the innovation ecosystem gets developedand is utilized for organizational sustenance andadvantage depends upon the abilities of theorganization to identify utilizable ideas; foster aclimate of tolerance and support for such ideasand their testing; champion validated pilot projectsand exploit them for organizational improvement.Speed and effectiveness of such processes is vital.Hence inter-connectivity of all the parts of theinnovation ecosystem, its linkages to the knowledgeand competency development systems is equally

crucial for ensuring organizational sustenance. (SeeAnnexures 1 and 2)Implications for Indian railways : Presently onthe Indian railways, there is nothing like a functionalinnovation ecosystem. However, in various unitson Indian railways, some elements which cancontribute to the innovation ecosystem do exist,but these are individualistic and isolated. The Indianrailways need to :

Create a mechanism for capture of ideas andallow field units to access this information andknowledge. Such a system would cover all unitson the Indian railways. The capture of ideashas to be categorized based on the categorizationof activities on the Indian railways.Create a system of screening these ideas forimplementability and then supporting pilottesting of these ideas at the field or researchunit level through funding and direction. Thiswould involve setting up specialized units intraining and research institutions and at zonalheadquarters.Set up a strategic innovation monitoring unitin the Railway board with sub units in leadtraining and research units.Set up similar business intelligence units inRailway board, lead training and research unitsand in zonal railways.Make activities of the innovation ecosystem,critical activities for appraisal of these unitsand their personnel.

The role of lead training institutions like RailwayStaff College:Lead training institutions like Railway Staff Collegeare presently part of the training system. Their roleis in transfer of information to officers with a viewthat they would convert it into assimilated knowledgewhich in turn would improve their effectiveness.


Specific identification of competencies is lackingand is not stressed upon.The training system is critical for continuedsustenance and competitiveness of Indian railways.This is due to the fact that, changing strategicorientation requires changing competencies andtraining system is the instrument which enablesthe generation of these changed competencies.Finally all performance is a function of actionsundertaken and effective actions are vitallydependent upon appropriate competencies existingin people who carry out these actions. In view ofthis critical function, which the training system mustcarry out, lead training institutions must be partof the competency assessment and developmentframework. In as much as this system would bedriven both by the knowledge management andinnovation eco system, such training institutionsmust also be part of these systems.Critically they should be the catalysts and driversof all the three systems. They should act ascreators, assimilators and transferors of allknowledge, skills and attitudes.Implications for Indian railways : For an effectiveleveraging of skills available in lead trainingand research institutions, the Indian railwaysmust:

Transform all training institutions into researchinstitutionsCreate linkages of in house training institutionswith outside academic and research institutions.Create cells in these institutions which wouldundertake the activities of idea capture, idea

testing and championing; knowledge creation,storage and distribution; competencyidentification and assessment and businessintelligence gathering.Effectively push for positioning of key qualifiedpersonnel in these institutions to dive theseactivities.Convert them to undertake creation of skillsets in general population based on the existingskill gaps based on assessments of skillrequirements. Foe eg: with emphasis ongeneration of large number of urban railtransport systems, training institutes can createand transfer skills required to manage urbantransport systems to candidates from the generalpopulation.

Till now, the paper attempted to create a frameworkfor a comprehensive strategic human resourcedevelopment for Indian railways. Two issues wouldrequire further elucidation - a time frame fordevelopment of such a system and identificationof critical factors which need to be developed andassured.Time frame for development of a strategichuman resource system :The time frame is based upon the fact that somevestiges of all the three systems do exist onthe Indian railways and resource constraints arenot envisaged as impediments. Although therequired act iv i t ies in a l l aspects areinterdependent, the time frame is being suggestedactivity wise and separately for the threeinterdependent systems. The time frame is givenbelow as a table :

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The given time frame is optimistic and is basedon the view that such a requirement has been feltat the polity and top management level and thereforethey will drive the processes leading to theestablishment of the systemsCritical factors which need to be focused uponfor successful creation of the systems:While the systems are interlinked and therefore needto be created in conjunction with each other, yet

it would prudent to consciously focus on certainkey factors during the entire process of creationand management of the working systems. Theseare:

Change of mindset at the officers’ levels: Thesuccessful creation and running of the threesystems leading to high performance worksystem would require a strategic and paradigmshift in the mindsets of officers at all levels.


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This would be with reference to risk taking,tolerance of errors, ability to facilitate ideageneration –listening skills and a meta-cognitiveskill of being always willing to learn.A strategic orientation which reflects the primacyof these three systems and stresses on bothrevenue potential and activity efficiencyThe creation of appropriate personnelevaluation and monitoring system to accountfor the key activities of these three systemsThe creation of an incentive and reward systemfor contributing in an excellent way toorganizational performance through thesesystemsThe creation of linkages for both problem solvingand knowledge generation with academicinstitutions and industryThe maintenance of an adequate IT backbone

The drivers of the Innovation and highperformance ecosystem:As indicated above in the discussion, thesesystems—namely the innovation ecosystem, theknowledge management and the results frameworksystems need to be maintained over time and makethem adapt to changing requirements of businessenvironment.Ensuring that a system maintains its focus andperformance at the highest levels requires thecreation and fostering of basic values. These valueswould form the fundamental basis for all activitiesin the system. These would so generic andfundamental that they stand the test of time andyet enable change of instruments to facilitate highlevels of performance.These values are:1. Tolerance for experimentation and its associated

failures2. The inquisitiveness for knowledge and tolerance

of ideas.

3. The ability to be consistent in execution ofadapted ideas—implementation focus—actionorientation

4. To focus on strategic leadership –foster andvalue future focus and orientation

The value of tolerance for experimentation drivesthe key activity of creativity and idea generation,idea experimentation and feasibility assessment andtherefore is the process which forms the sourceof innovative ideas.The value of inquisitiveness and tolerance of ideaspromotes the creation of the knowledge managementsystem and feeds the sustenance of the innovationeco system. The Action orientation orimplementation focus enables the exploitation ofinnovative ideas and associated knowledge.Finally the future focus and orientation give thegoal focus and direction to these three organisationalsystems. This is what gives an organisation the abilityto adapt to changing business environment and itsrequirements. This will be achieved throughunderstanding of trends in customer’s needs andtechnology. This will be executed through upgradation of human resources and organisationalcompetencies.All this requires a system which would generatethe evidence for effective strategic and operationaldecision making. An independent agency which hasthe mandate, the capabilities and the necessarylinkages to institutions which are the seats ofassociated disciplines which contribute to thisresearch institution is what can serve this purpose.The Transport research board of the United Statesof America is an appropriate example. An institutionon the same purpose and functionalities is whatis required. This is depicted as Figure 1


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Figure 1 : AN INNOVATIVE AND HIGH PERFORMANCE SYSTEM

The values of an organisation form the basis formotivation and actions of its members and thusare responsible for the strategic direction and itsexecution. Evidence gathered through research iswhat directs the appropriateness of the decisionsinvolved.Finally how does an innovative ecosystem on theIndian railways contribute to the overall economy?Two major impacts are envisaged. These wouldbe:1. Contribution to the overall innovativeness of

the economy2. Interactive effects on the intrinsic

innovativeness of associated functionalactivities

Contributions of the Innovative ability of Indianrailways:Transport is the central activity which adds valueover time and place, be it people or goods. It alsois the instrument which enables a redistributionof manufacturing and consumption activities in theeconomy. Being pivotal to the economy, it interactswith the production and consumption activities

across all industries. These facts enable innovationsin its production to contribute to innovations inthe production and distribution functions for allgoods and services.The Indian railways being a major mode of transportcontributing to the economic growth of the country,any ability which improves its functional efficiencywould contribute to the betterment of the economy.It will add functional capabilities to industries. It,more importantly, adds possibilities of employmentand utilization of human skills at places whichhitherto were not in the realms of possibility.This is what makes it a necessity for the Indianrailways to become a high performance system andmaintain such a position in times to come.Conclusion:This chapter tried to look at what is required tomake and maintain the environment which wouldmake Indian railways an innovation driven highperformance system. We also looked at the needfor such a requirement and how it would contributeto the overall economic growth. What Indian railwaysneed to do is to action orient itself towards thisobjective.


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Annexure 1 : Process framework for a High performance system

Annexure 2 : Components of a high performance system

Annexure 2: Components of a high performance system


References:Bower, Joseph L (1970); Managing the resourceallocation process: HBR press BostonBower, Joseph L and Gilbert, Clark (2005): Fromresource allocation to strategy; published byOxford university press, London, UKBurns, Tom and Stalker G.M (1961) Themanagement of innovation; published byTavistock, London.Damanpour, F. (1991). ‘OrganizationalInnovation: A Meta-Analysis of Effects ofDeterminants and Moderators’, Academy ofManagement Journal, 34, pp. 555–590.Drucker Peter F (1998): The discipline ofinnovation; Harvard business review, November-December issue, pp 149-157Fagerberg, Jan; Mowery, David.C; and Nelson,Richard R(2005): The Oxford hand book of

innovation ; Published by Oxford universitypress, New YorkOcasio William and John Joseph (2005): Anattention based theory of strategy formulation:linking micro and macro perspectives in strategyprocess; Advances in strategic management,volume 22, 39-61Sim, Edward W; Griffin Abbie; Price RaymondL and Vojak, Bruce A (2007): Exploringdifferences between inventors, champions,implementers and innovators in creating anddeveloping new products in Large mature firms;Creativity and innovation management; vol16(4); pp 422-436Von Hippel, Eric (1988): The sources ofinnovation; Published by Oxford universitypress, New York.

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Evaluation of FinancialOrganisation

V. S. Ghai IntroductionThe secretary of state for India in council appointed SirThomas Robertson, C.V.O, as special commissioner for IndianRailways. In his report (1903), Sir Thomas recommendedsetting up of a Railway Board consisting of a ChiefCommissioner, and two other commissioners all of whomshould have a practical knowledge of railway matters. Itwas also decided to abolish the railway branch of the PublicWorks Department, and to transfer the control of the PublicWorks Department to railway system. The railway boardassumes office in March 1905, and was, directly responsibleto the Government of India in the Department of Commerceand Industry. The staff included amongst others an examinerof accounts known as Railway Accounts Officer.

Appointment of the financial CommissionerAt the dawn of the 20th century, there were thirty threeseparate railway administrations in India of these, four wereworked by Government, five by erstwhile Indian states,and the remaining 24 by private railway companies. Theircontrol was headed by an officer of the Indian Chief ServiceMr V. S. Ghai is working as Sr. Fellow, Asian

Institute of Transport Development.


who was a member of the Viceroy and GovernorGenerals Executive Council. He was assisted inRailway Branch, by one secretary, three DeputySecretaries, 4 Under Secretaries and 4 AssistantSecretaries. The entire railway system was dividedinto seven circles and a team of one consultingEngineer, and one Government Examiner ofAccounts posted to each of those seven circles.Railway Finance Committee (1908)Notwithstanding the establishment of a railwayBoard in 1905, the railway financial administrationhad continued to be like that of a Governmentdepartment within a short time, however, the set-up was reorganised on the recommendations ofthe railway finance committee (1908) by constitutingthe railway Board with its staff, independent ofthe department of commerce and industry, underthe member of the Viceroy and Governor GeneralExecutive Council.The Accounts and Civil Audit Establishment ofthe Public Works Department were amalgamatedunder the control of the Finance Member of theGovernment of India. The post of AccountantGeneral, Public Works Department was abolishedand a separate post of Accountant general, Railwaywas created.Financial Commissioner for railway 1st April1923The most important land mark in the history ofthe financial administration on Railways in Indiawas the appointment of Mr. G. G Sims as the firstFinancial Commissioner Railways on 1st April 1923.He was the direct representative of the FinanceDepartment and was included in the railway board.Acworth Committee Recommendation (1924)The main object of appointment of the Acworthcommittee was to secure firstly economy in theexpenditure of public money and secondly thecoordination of railway policy with the generalfinancial policy of the government of India. Thiswas followed up by the separation convention 1924,by which Railway Finances were separated fromthe general finances of the government of India.

It was decided that finance department should easethe control of the internal finances of the railways,and the railways should have a separate budgetof their own. The matter was placed before thelegislative assembly who adopted the conventionon the 20th September 1924.Separation of the Accounting and AuditingThe process of separation of the accounting andaudit functions on the railways was completed in1929 as a sequel to the recommendations of theAcworth committee in August 1927. At the railwaylevel the two functions were separated by appointinga chief accounts officer answerable to the controllerof railway accounts and a chief auditor responsibleto the Director of Railway Audit. This markedthe beginning of the Indian Railway AccountsService as a cadre.Indian Railway Enquiry Committee (1937)Indian Railway Enquiry Committee (1937)recommended placing of the Railway Accountsdepartment under the general Manager instead ofFinancial Commissioner. While make the changethe chief accounts officer was redesigned as theFinancial Adviser and Chief Accounts Officer. Thisarrangement was tried on North Western Railwayand the Great Indian Peninsular Railway with effectfrom November 1938 and was made permanentin 1941 when it was extended to all otherGovernment Railways.Fund Problems of RailwaysThe problem of congestion at railway stations isfaced by railway management all over the worldis common and bold measures were desired to dealwith the situation. Adequate funds for capitalexpenditure on development and extension or evenfor the essential operations of renewal and repairwere desired.These were score of bridges and girders unfit tocarry train loads up to modern requirements ofengines and thousands of wagers overdue forrenewal. There was no policy to set up replacementreserve. There was the system of making annualgrants for replacement but it had its own limitations

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and the problem continued to persist. In WorldWar I as an austerity measure the expenditures werepostponed, as a result the net profit of the staterailway shown in the official return increased from4.54 percent in 1914-18 to 7.07 percent in 1918-19. However this gain was not real.

Financing of Railway PlansIn the matter of creating infrastructure IndianRailway is far behind China, which started its railstructure 25 years ago. Due to low investment inmodern infrastructure Indian Railway suffer frompoor productivity. The financing of the Railwayplan in the recent past are given in table 1.

Table 1 : Financing of Railway Plan (in Rs. crore)

Operating Ratio :Operating ratio, the ready reckoner of financial health of the Indian Railway, was 98.28 percent lastyear, inching closer to 100 percent and could further overtake during 2012-13. To contain/reduce theexpenditure, Indian Railway has not hired any fresh man-power; rather the staff strength has comedown from 1543 thousands in 2001 to 1362 thousands in 2009-10. Operating ratio from 2007 to 2010-11 is tabulated as below:

Financial ResultsGross traffic receipts of the Railway went up from Rs. 86964 crore in 2009-10 to Rs. 94755 crorein 2010-11. Total working expenses increases from Rs.81915 crore in 2009-10 to Rs. 87100 crore in2010-11. Accounting for the miscellaneous transactions, the net revenue receipts were at Rs. 5544 croresin 2009-10 against Rs. 9781 crore in 2010-11. The comparative position of operating revenue andthe expenditure is given in table II.


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Table 2 : Operating Revenue and Expenditure (in Rs. crore)

Economics of Passenger and Freight BusinessRailway earned 26.13 paise per km for carrying a passenger in 2009-10. The revenue has declinedto 25.97 paise in 2010-11. Railways get nearly 100 paise for carrying one tonne of freight for eachkm. Hence a 24 coach train carrying 1500 passengers will earn Rs. 450, while a 4500 tonnes 54 BOXN wagon train carrying freight will earn Rs. 4500 per km. This clearly brings out that freight traffic(tonnes km) earn ten tonnes the passenger traffic. The growth of traffic earning in given is table IIIbelow:

Uneconomic LinesRevenues of Indian Railways are adversely impacted by a variety of uneconomic transport activitiesundertaken in largest interest of disadvantaged section of the society. These include maintaining oldordinary second class fare, suburban and non suburban season fares, concessions granted on ticketsto certain passenger categories and transportation of certain commodities at freight rate below cost.Working of uneconomic branch lines also imposes a heavy burden on railway finances. A review offinancial results of 102 uneconomic branch line shows that on an investment of Rs.865 crore, lossduring 2009-10 amounted to Rs. 1198 crore. Details in Table V below;

Table 4 : Growth of Traffic Earning (in crore)


Table 5 : Social service Obligations on Indian Railways (in Crore)

Amount in crores

Loss on services 18113

Loss on parcel, luggage 2264

Postal and catering services

Total Social Services Obligation 20377

Loss on low railed commodities 61

Total 20438

Deduct staff welfare and law and order costs 5462

Net Total Social Obligations 14976

Source: Railway Budget Data base 2011-12

Losses in rail trafficHiking the passenger tariff to keep up with risingcost of operation was common for any organization.However, Indian Railway has avoided increasingfares as a populist measure. This has resulted incoaching losses. The total loss on coaching serviceswas Rs. 490 crore in 2007-08. It increased to Rs.11272 in 2008-09 and further increased to Rs. 18113in 299-10. This highly detrimental to Railwayfinancial health and is seriously hampering its growth.It has already cost the railway about Rs. 65000crore in losses over the last five years. The losson this account in 2010-11 is estimated at Rs. 20,000crore.Over and above the existing services, new trainsare added every year; the run of existing trainsis extended by almost 200 numbers every year. Overthe last decade 2000 new trains have been added.Presently 11,000 passenger and 6,000 freight trainsare running railway earned. During 2009-10 totaltraffic earning of Indian Railway was Rs. 87,105crore out of which Rs. 58502 crore was from freight

and Rs. 23,488 crore from passenger business.Losses due to disruption of train movementsThe expenses were hit by 37 per cent due to increasein cost, and failure of the railway to capitalizethe twelve per cent increase in domestic demand.On the earning side disruption of train movementby means of agitation and accident has resultedin a loss of about Rs. 1500 crore. It also resultedaffecting the trading target by 20 mn tonnes. Onthe expenditure side, escalating fuel costs andelectricity tariff increased in some states. HigherD.A costs and excise duty rates, as well as impactof unanticipated higher salary and allowance raisedthe requirement of Rs. 5700 crore out of whichRs. 3700 crore was by economy drive and othersecurity measures.Declining Share of Freight tariffThe share of Indian Railway in total domestic freighthas come down from 89 per cent in 1950 to 20.89per cent in 2008, while that the passenger traffichas declined from 80 per cent to 20 per cent in2009. The deficiencies in rail infrastructure havebeen responsible for the losses in market.

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Investment to improve capacity and safety assetsGovernment has taken initiative to build up capacityby developing dedicated Rail Freight Corridor acrossDelhi-Mumbai and Kolkata-Chennai. About 900km of additional rail net work has been identifiedto set up this corridor. Twin arms of DedicatedFreight Corridor project are to increase line capacity,thereby attracting more freight traffic to the railmode and to reduce unit costs of operations. The

Indian Railway special Railway safety fund was setup in 2002 for replacing overdue assets by theend of 10tth five year plan. Considerate progresshas been made in the execution of works sanctionedover aged signalling system with modern systemwith modern system in 567 stations, work is inprogress in 851 other stations. The progress anddeployment of various devices as on March 312010 is given in table VI below:

Table 6 : Safety Device

Rail Modernisation Committee – 2012Finance is the back bone for every social andcommercial activity, be at a small business activityor a pan India activity as of Indian Railway. Ahigh level committee on rail modernisation chairedby Shri Sam Pitroda, Advisor to the Prime Ministerrecommended railway to hike passenger fares atone time by 25 per cent and index all fare to inflationto raise Rs. 60,000 crore next year. It was alsorecommended, commercial utilisation of land andair to earn Rs. 50,000 crore, cut operation costto save Rs. 15,000 crore and enhance net freightrevenue to earn Rs. 40,000 crore. The subsidy oncoal, iron and fertilizer is to be reduced. Theminimum fare ticket is to be rationalised, theminimum fare of ticket is Rs. 1, and on the contrarythe fare of platform ticket is Rs. 3. Funds for renewaland replacement of assets are to be provided intime. The skill of man power upgraded to the state

governments to share the burden by providing freeland for the projects. Regular monitoring of projectsis necessary to avoid time and cost over run.

Kakodkar High Level Railway Safety ReviewCommitteeThe committee submitted its recommendation toRailway minister on 18.02.2012 and suggested themeans to mobilise the fund for a long overdueinfrastructure upgraded programme over the nextfive years. The committee suggested initialisationof funds into different components, Rs. 20,000 crorefor advance signalling, Rs. 50,000 for eliminationof all level crossings, Rs. 10,000 for new designcoaches, and Rs. 20,000 crore for maintenance ofsafety related infrastructure. The committeesuggested taking small steps towards better managingto finances and suggested among other a safetycars or passenger to generate about Rs. 5000 crore

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every year and doing away with the dividend paymentof Rs. 5,000 crores to the government of India.ConclusionThe railway should be compensated not only forthe loss of transportation of the suburban passengersbut also be exempted from the payment of dividendto the general revenue. The dividend for the year2009-10 was Rs. 5543 crore and subsidy by CentralGovernment Rs. 2156 crore thus Rs. 3387 crorewas paid by Indian Railways to the CentralGovernment as dividend for the general revenues

for the same period. There is no logic in sufferinglosses in respect of social service obligations onthe one haul, and for making substantial contributionto the general revenue as dividend on the otherhand.The increase in the cost of running the railwayor an average is 10 to 15 percent every year anda minimum annual increase of 12 to 15 percent.A policy decision at the government level is requiredto ensure that not only existing losses are eliminatedbut in future also such losses do not arise.

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Life is Health"Beautiful SleepOur Lifeline"

Dr. S. K. Mitra All will agree that sleep is something which we all dothroughout our life. Not only this, imagine we used tosleep even when we had not seen this world but our liveskept pulsating in our mothers’ womb. Then we used tosleep almost 18 hours a day. The span between the daywe’re born and the day we quit this world we sleep almost35% of this life span. So, we sleep because it is necessary.Necessary to refresh our mind, intelligence, vital functionsof our body and to increase our efficiency in life processes.During sleep, the larger part of brain shuts off barring theessential centres of respiration, circulation and vasomotorcentres. These essential centres keeps our life going. Thusthe resting brain rests during sleep.Sound sleep refreshes us and make us capable to face theday. While disturbed sleep makes us irritable, short tempered,poor interpersonal relationship, indecisive, fatigued andinefficient. Sleep is a healer to most of our mental andphysical ailments but becomes a killer when it is deprived.Today’s mad pace of life has deprived sleep of millions.Dr. S. K. Mitra, Prof. HM, Railway Staff College,

Vadodara.


A good night’s sleep has become elusive. Sleepacts as a stress reducer, reduces risk of cardiovasculardiseases, hypertension, immune related disorders.Hence it helps in repair of daytime ‘wear and tear’of our body and mind and we attain a healthymind on a healthy body. Some suggestions to avoidsleep deprivation advocated world wide are: (WENEED REGULAR 6 TO 8 HOURS OF SLEEPAT NIGHT & A SMALL DAY TIME 30 MINS.NAP is beneficial, post lunch).10 - Commandments for sleep:a) Avoid heavy meals during dinner mostly.b) Maintain a fixed time for dinner.c) Dinner should be taken early, preferably before

9 p.m.d) Never to lie down for sleep immediately post

dinner. A gap of 1 ½ - 2 hours between dinnerand resting time to bed is advisable.

e) A mild stroll following dinner is not harmful.

f) Little relaxing after dinner in the form of readingbooks, listening to soft music will induce sleep.

g) Avoid watching television, movies, etc. late nightbecause through our eyes our brain getsstimulated and agitated, hence initiation of sleepgets delayed unnecessarily.

h) Follow sleep hygiene by establishing a routine.

i) Half a cup of warm milk without sugar justbefore lying down will be beneficial.

j) Lastly give your bedroom and bed a relaxedimpact which in turn will give a sleep inducingimpact.

So just TAKE-OFF and LAND on nextbeautiful morning. You’ll never know when you’vetraversed 6-8 hours of smooth journey.

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"Developing A Strategyfor Indian Railways"

M. S. Mathur To develop a long term strategy for the Indian Railways,a study of the environmental factors, industry forces anda SWOT analysis are the pre-requisites.While detailing the all above steps would be lengthy, someof the highlights of the SWOT analysis are given below:STRENGTHS

Large Skilled and loyal Work ForceAssets in prime locationsWell grounded systemsHuge operational assetsGeographical reachSafe mode of transport

WEAKNESSCustomer focus “Low”-alien to organizational cultureLarge Workforce – Under-utilizedLack of proper trainingUnder utilization of IT

M. S. Mathur


Red-tapism in project implementationOrganization : Too many departments – conflictsAbsence of a transparent and standardizedaccounting system

OPPORTUNITIES :Growth in economyPopulation GrowthIncrease in disposable incomeIncrease in customer needsGrowth of container transport requirementRequirement for customized wagons formovement of custom goods like engineeringproducts, food products, agricultural produce-fruits, vegetables.

THREATSReduction of market share by rival modesof transport-roadways, airways, pipelinesGrowth of telecom sector and internet coupledwith videoconferencing and 3G services woulddrastically reduce travel needs in the future.Decline of certain industries in future (Coal,POL) because of depleting mineral resourcesmay reduce demand for IR services intransporting them.Security threats – terror attacks

Once the environmental factors, industry forcesand SWOT factors are clearly understood, we arein a position to develop a strategy. To developa comprehensive strategy, we need to clearly definethe mission of the organization, its objectives,followed by a generic strategy and finally a planfor implementing the strategy.1. Mission :To provide a world class and reliable service-comparable to American Railroads in freight services

and European Railways in passenger services; whilecatering to the COMPLETE transportation needsof the customer.2. Objectives :

To bring a paradigm shift in the way we viewand serve customersTo cater to the “complete” transportation needsof the customer by providing a one stop solutionfor all his requirementsTo make each traveling experience a pleasantone.To differentiate and add value to services fordifferent customer segmentsTo re-structure the organization in order toleverage its strength and remove the weaknessesTo develop tourism travel and position astourism service provider

3. GENERIC STRATEGY :In the passenger segment, IR should position itselfas:1. Cost leader in the Non AC segment for short

distance and long distance travel.2. Quality service provider in the AC segment

of short distance and medium distance travel.3. No compromise policy on cleanliness and

hygiene in all segmentsIt should gradually exit from long distance AC traveland Non AC medium distance travel. The mainfocus should be on medium distance AC travel.This will be the most profitable sector in the futureand should be developed with great planning andcare.The above can be best illustrated by the followingmatrix:

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In the freight segment, the focus shall be ondeveloping facilities for increased containeroperations, planning for increasing load bearingcapacity of tracks in high density routes, dedicatedfreight corridors.4. FORMUATION OF PLAN FORACHIEVING OBJECTIVES :The plan should have two broad areas :A. Getting the basics rightB. Increasing market shareA. GETTING THE BASICS RIGHT

CUSTOMER FOCUSCreating loyal customers is at the heart of everybusiness. There is no doubt about the very high

correlation customer satisfaction has with thebottom line and all other performance indices. Yet,it is one of the most neglected and ignored areasin IR. The customer is more of a burden thananything else. Even in day to day business parlance,the word customer is rarely used at any level inIR. At best the word “passenger” is used to describethe hapless traveler who is mostly on his own andhas to fend for himself in his rail travel. Therehave been some improvements in this regard butall these improvements have been more imposedthrough fear of disciplinary action rather thanaccepted.The concept of customer service has not yet beeningrained in the organizational culture of IR.

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Therefore in order to reap higher return on futureinvestments, a paradigm shift is needed in theattitudes of the staff esp. the frontline staff - thosemanaging the railway stations, enquiry help desks,the coaches, TTEs, train attendants and cateringstaff.Customer care is one way of adding value to thecustomer. Once the customer is made comfortableand his requirements are taken care of, then hispleasant travel experience will translate into morefuture travel and good publicity for IR which willhave a snowball effect. This will be more pertinentin the AC segment where a lot of value additioncan be done as briefly detailed above in the abovematrix. IT can be effectively utilized in elicitingcustomer feedback.Action Plan:Railways should do away with its traditionalorganizational business model and embrace thecustomer-on-top business model. This is clearlyexplained in the diagram below.

Managers at all levels must be personally involvedin knowing, meeting and serving customers. Aconcerted awareness and training program is required.This training has to be outsourced to a reputedfirm. It has to be a continuous training programthat shall cover all levels of hierarchy and alldepartments. Special emphasis shall be placed onthe frontline staff. The training should highlightthe fact that more customer care and customer

satisfaction translates into more earnings for IR.It would be more of a brainwashing program whichis easier said than done. A number of initiativeshave been highlighted in the generic strategy matrix.Despite all the training, it is felt that unless customercare (or lack of it) is linked to personal benefits(or lack of it), then it would not give long termreturns. This requires incorporation of increasedearnings component into the salaries of employees.That is, employees’ salaries should have a fixedcomponent and variable component. The variablecomponent would be directly linked to the economicvalue added (which depends upon the differencebetween returns and cost of capital) in a certainperiod of time. Being a govt organization, this wouldbe quite a task to implement. But the chances ofits acceptance at all levels and by trade unionsis high as employees would benefit from the hardwork that they put in and the fixed componentwill take care of the vagaries of the business (Initiallythe fixed component proportion shall be high). Such

a measure will bring about significantdifference in motivation levels, properutilization of employees, return oninvestments and a synergy in achievingthe mission and objectives. The jobof implementing this scheme shouldbe given to a reputed consultancy firm.It should also involve employees atall levels of hierarchy.

ORGANIZATIONAL RESTRUCTURING1. A separate IT wing (department) should becreated throughout the organization at all levels.This role can also be given to CRIS whose roleis now limited only up to IT project commissioning.CRIS should be involved in day to day running,overseeing and maintenance of all IT systems inIR. The aim of the wing should be to incorporateIT to improve process efficiency, quick

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communication and knowledge sharing. Followingimportant steps have to be taken by the ITdepartment:

Use of Enterprise Resource Planning (ERP)to beat the bureaucratic delays and excesspaperworkTotal networking and connectivity across allzones and divisions/ workshops of IR. Setup database systems and data warehouseswhich will help in decision making.Set up a Knowledge Center of Indian Railways.This will be a center for knowledge sharingcutting across all departments and levels ofhierarchy. There shall be forums for exchangeof ideas, problem solving and experiencesharing. This is extremely important as mostof the times a lot of effort is wasted inreinventing the wheel. Given the vastnessof the organization, any innovation orimprovement done in any part of IR mostlygoes unnoticed. There is a lot of redundancyand duplication of effort. Therefore thereshould be center that maintains both explicitand tacit knowledge gained in IR.

1. Merger of departments to reduce agency costs.2. Security services should be outsourced

3. Leveraging our underutilized employee strengthand existing assets, IR is best placed to starta new line of business- delivery services forparcels and couriers. This will not be a newline of business, but will be totally involveutilization of existing assets. Given the

4. A proper accounting system must be put inplace that should make it possible to measurethe performance of each unit, division or zone.And more importantly it should be possibleto compare IR’s performance against universallyaccepted indices. The accounting practice should

be transparent and standardized and at par withthe international and nationally acceptedaccounting measures. The aim is to useaccounting and cost accounting techniques likeABC to help managers in their decision making.IT department will have a major to play inthis exercise. The task of developing thisaccounting system should be outsourced toreputed CA consultancy firms.

A. PLAN TO INCREASE MARKET SHARE1. Investments through PPPIR should leverage its assets in prominent locationsand upgrade these facilities using the PPP model.Using this model, IR can enter into partnershipwith a private party to revamp facilities such asrailway stations, container depots and productionunits. All investment shall be done by the privateparty and ultra modern facilities shall be createdfor IR (like state of the art railway stations, hotels)as well as for the private party (malls, plazas etc.).This is a win-win situation where both parties willgain from the arrangement.The PPP model can be even extended to developinghigh density tracks and high capacity wagons ona revenue sharing basis.2. High speed trains for short distancesHigh expense is a major deterrent in developinghigh speed trains running at speeds of more than200kmph. It appears unlikely that developing highspeed trains would be a profitable option for IRin the next ten years. Since high speed trains area certainty in the future say by 2025 by when IRwould have earned sufficient profits, pilot projectsshould be initiated in high traffic routes likeMumbai-Pune, Indore-Bhopal and Ahmedabad-Baroda. The experiences from these projects wouldhelp in large scale implementation beyond 2025.

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3. Dedicated freight corridorsAs IR earns more than 60% of its revenues fromfreight services, dedicated freight tracks willincrease the throughput of goods trains and alsoincrease the average speed of passenger trains. Thiswill be a good investment and returns are guaranteed.4. Increasing carrying capacity of wagons,tracks and locosIR should work towards increasing the carryingcapacity of wagons by developing low tare weightwagons (like Al alloy wagons or other compositebased wagons). At the same time, it should investto increase the carrying capacity of tracks in selectivehigh density routes. High load carrying locomotivesshould be developed through transfer of technology5. BACKWARD INTEGRATION.To minimize cost railway can go for backwardintegration into the power generation and also steelmanufacturing whereby they cater to therequirements for tracks, coach and wagon bodymanufacture, axle and wheel manufacture and otherrelated products.6. Integrated servicesWe have made it the mission of IR to take careof the complete transportation needs of thecustomer.

This will entail the following plans :FREIGHT SECTOR

Door to door services. IR will collectconsignment from customer’s location anddeliver it directly to customer’s final destination.Customer will not have to be concerned aboutthe loading and unloading of goods at stations.Customer should be able to continuously trackhis consignment via internet. Tracking will bedone using the RFID system.

Corporate Level Tie-up with major Clients –Railway should have corporate level tie-uparrangement with regular Customers like SAIL,Coal India Ltd. And should try to serve asper their requirements with agreement fordiscounted freight charges provided clients aremaintain a minimum level of business .Thistype long term relations will help the Railwayto retain the market share.

PASSENGER SECTORCustomers availing high end services especiallyin the promising medium distance segmentshould be provided with a complete packageright from picking the customer from hisdoorsteps to the end of his final journey. Thiswould include arranging for road transportation,hotel accommodation, even airline ticketing.IR should enter into alliances with bus operatorsand even airlines to deliver the completepackage.Providing complete tourism package and tourismfocus. As has been mentioned before, the tourismsector will be one of the biggest sources ofrevenue in future. IRCTC will have a majorrole to play in this front. Compared to othertour operators, it has the big advantage of havingthe vast railway resources to utilize. It can enterinto alliances with other agencies to providecomplete packages to the tourist. Developingproper operational plans are a must in this regard.IRCTC must ensure that it delivers on whatit promises and develop its brand image as aquality service provider.

CONCLUSION :Indian Railways is at the crossroads today. Giventhe huge asset base that Railway has, the returnson capital employed is not commensurate to thevalue of assets. If one were to calculate the Economic

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Value Added by IR, we will find that economicvalue is destroyed rather than created. So whatis needed is a two pronged strategy.1. In the first part, IR should aim at getting the

basics right and increasing the returns oninvestments/ assets. IR has to bring about aparadigm shift in the way it views its customers.IR also has to make changes in its organizationalstructure.

2. In the second part of the strategy, IR shouldadopt radical means to increase its market share.

All the means have to be adopted taking intoconsideration the future demand, futurecustomer profile and future competition.

The transport sector in India is underdevelopedand with the prospects of high future economicgrowth holds great promise for the transport sector.The onus is on IR to leverage its strengths andopportunities and at the same time tackle itsweaknesses and threats. Successful implementationand control of the strategies will be an equallyimportant determining factor in the success of thewhole exercise.

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Road Map For InnovationOn Indian Railways

Introduction :INNOVATION, as a concept, is as old as mankind. Thereis inherently something human about new ways of doingthings and try them out. Societal change (consisting of bothsocial and economic activities) is built on the wellspringof innovation. Innovation is the process that unleashes wavesof creative destruction and painstaking development(Schumpeter 1934 as quoted in Fagerberg 2004, p6).Consistent efforts at successful innovation also lay thefoundation for sustained competitive advantage for firms.Innovation has been defined as the first attempt to carryan invention into practice (Fagerberg 2004, p 4). It hasalso been defined as the adoption of an internally generatedor purchased device, system, policy, program, process, productor service that is new to the adapting organization (Daft1982 as quoted in Damanpour 1991). Innovativeness isadoption of multiple innovations (Damanpour 1991).Adoption of innovation encompasses generation,development and implementation.

Dr. B.V.L. Narayana



Innovation is also purposive ie: innovativeness inan organization is driven by its strategic orientation.All organizations are there because they attemptto satisfy the felt needs of their prospectivecustomers. Thus customer orientation is the drivingforce behind the strategic orientation of anyorganization. What set of customers an organizationattempts to service defines their business domainand thus the scope of the innovation landscape(Drucker 1998; Thompson 1967).

Why goals and nature of goals :To create and maintain the innovation landscape,organizations in their purposiveness, define theirbusiness domain and identify their strategicorientation. Indian railways must also do so.Purposiveness also requires organizations to identifyLong term goals which would be the focal pointtowards which all organizational activities wouldbe oriented. Goals thus form the motivational factorwhich drives the entire chain of organizationalactivities. Goals which are agreed upon byorganizational members promote intrinsicmotivation and thus are more likely to be achievedthan goals which are thrust upon (Deci and Ryan2005). Creating goals which are in line with customerand business trends enables a logical basis for sellingthe acceptance of such goals and therefore improvestheir chances of acceptance. Ultimately, it is themotivation levels of organizational members whichfacilitate the achievement of objectives and throughthem its long term goals. Thus goals are the criticalreference points for all purposive organizationalactivities (Locke 2001).Goals are long term, but goals can also be viewedas a hierarchy of targets. At a long term level (say10-15 years) they are goals. At a shorter time frame( 3-5 years) they are called objectives and at anyearly level they can be called targets. The settingup of objectives and targets are a function of what

goals are set. Secondly, goals are always set fororganizational level, while objectives and targetscan be set for organizational and as well as functionaldepartments and units of the organization.Strategic orientation of Indian railwaysFour things stand out in the business environmentin which the Indian railways presently operate. Theyare:

Indian railways is confronted with the changingpattern of industrial production and geographyaway from traditional industries and clusterstowards a more dispersed pattern embodyinghigh value and low volume manufactures.A transforming economy in India, which isshifting from a primary bulk commodityproduction system to a specializedmanufacturing system with increasingcontribution from the services sector. Thiswould entail a maturing customer who is shiftingfrom looking for transportation to an integratedmanagement of logistics or Supply chainmanagement.A global economy which is getting highlyintegrated and where the options to source rawmaterials, production source, intermediatefinished goods and markets for finished goodscan be varied and change from one cycle toanother. This has increased the need for transcountry movement of all types of goods (Rawmaterials, intermediate semi finished productsand finished products), especially the semi-finished products, which have driven the globallogistics and Supply chain management industry.With this, the need to outsource such activitieshas also gained apace due to emphasis onspecialization and working to individual corecompetenciesA growing and urbanizing population in India,whose transportation needs are driven by an

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affluence leading to increased requirements ofonboard and off board services.

All in all, the business environment is much moredynamic and changed than what Indian railwaysfaced in the period 1950-1990. What is moreimportant is that the business environment isdynamic because of increasing technologicaladvances which are increasing the substitute productsfor transportation - eg ICT advancements and e-commerce - and shorter but more dominant businesscycles which are globally integrated.Secondly, the Indian railway is faced with two criticalissues, which have been plaguing it from 1950’s.They are:An inability to earn sufficient revenues to enablesignificant capacity expansions so that future growthin transport demand can be taken advantage of,especially in the upswings of business cycles. Alook at the time trends in Operating ratios overthe period 1960-2001 significantly highlights thisfact, when it is looked at the increasing outsidesupport sought for capital inputs.The other critical factor which has been plaguingIndian railways is its inability to efficiently use itscapital financial resources. The over run in costsand time of capital projects on Indian railways(Approach paper to eleventh plan and Planningcommission report) has contributed to its inabilityto earn sufficiently for capital asset generation byincreasing the capital requirements for the samelevel of asset generation (High cost of inefficientuse of capital) and not allowing Operationalisationof capital assets when business cycles are in theupswing (Lesser earning life to total asset life). Itis estimated by the planning commission that thethrow forward on projects is likely to be 100000crores at the start of the twelfth plan.

The two critical issues of changing and increasinglydynamic business environment and inability to earnsufficient capital necessitates that Indian railwayslook to significantly increase their rate of revenuegrowth amidst a more competitive and changinglandscape. This necessitates that the Indian railwaysintroduce innovations in their business practices,which would help achieve them. Perhaps it is timefor another round of frame breaking radicalinnovations.Three paradigm shifts have to be introduced intothe business practices on Indian railways, whichwould be:

A shift from a functional orientation towardsa composite and integrated approach to businesswhich would entail a more focused approachon the customers and markets, which in turnwould drive the technological research activities.A Shift from capacity based revenue generationsystem to a combination of capacity based andnon-capacity based revenue generation, whichwould require identification of activities acrossthe entire value chain of logistics and Supplychain management. The necessity to generaterevenue should become the prime focus insteadof cost savings.Re-look at the internal processes of theorganization and the way they are managedThe hierarchy of goals, objectives and targetsshould be the first to undergo a paradigm shift.This would drive the entire system of innovationon Indian railways

Innovation framework to determine goals:Organizations are purposive. They try to achieveset goals by using technology and establish systemsand processes to do so. The net outcome isperformance. This can be represented as a

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Innovation would be thus required at the technologyand at the Organizational processes level.Technology is defined as the mechanisms used toproduce goods and services. This includessatisfaction of direct customer needs and internalrequirements of organizational processes also. Foreg Information and Communication technologiesare used to deliver direct customer oriented servicessuch as ticketing, while it is also used to facilitateand internal process such as the monitoring andevaluation Management information system.Processes are defined as the way technology willbe used to achieve goals.Hierarchy of goals and their Time frame :The approach framework to the twelfth plan ofthe Government of India talks of achieving inclusivegrowth at a rapid pace. Creation of infrastructuralfacilities, management of constraint of fuel resourcesand environmental impact of economic growth arethe pillars on which the twelfth plan success isgoing to depend upon. These three critical factorsare going to continuously impact economic growthof the country in the long term also.Considering this critical aspect, it was pragmaticallystated that the Indian railways must increase theirshare of transport output so as to achieve a shareof 40-45%. At this level, it was stated that theoptimal modal mix with respect to least impacton fuel resources and impact on environment wouldbe there (RITES Total transport demand study 2008-09).

The best possible situation would be that Indianrailways attempt to achieve this without looking‘to the Government of India for resource support.SUGGESTION 1 : The long term vision of theIndian railways must be to become a self dependentfinancially viable transport organization which actsas the prime driver of the Indian economy.This means that the Railways must reorient itselfto focus on revenue generation to facilitate itscapacity expansion which in turn would drive theeconomic growth. This would require the Indianrailways to foster innovative ideas for revenuegeneration and maintain the innovation climate sothat the revenue generation capabilities continueto be utilized so as to maintain its financial viability.SUGGESTION2 : All in all Indian railways haveto shift from “tonnage based” hierarchy of goalsto “Revenue earnings” based hierarchy of goals.This would cover both revenue and expenditurestreams and would include the sub-goals of thedepartments.How does this paradigm shift translate into thehierarchy of goals?The first set of sub-goals in the hierarchy—basedon the model as depicted above—would be for:1. Customers2. Technology3. Systems and processesCustomers : Customers are the members of thehuman population who have needs and they are

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motivated to satisfy these needs. This motivationis what allows for exchange of monetary assetsto receive the goods and services.Monetary exchange as value capture for goodsand services rendered is what enables anorganisation to attain financial wealth. Whenthis financial wealth is more than what it expendsin the process of manufacture of goods andservices, it leads to surpluses. It is these surpluseswhich allow the organisation to expand capacityfor existing goods and services or allow renewalof assets or create new capabilities and assets

to deliver new goods and services to newercustomer segments being considered as businessinterests.Traditionally the customer segments have beencategorized as Passenger and freight. Drawing fromindustry experience and trends –both present andemerging new ones—further categorization of thecustomer segments in each of the major categoriescan be as follows: (See Annexure 1 and 2 for dimensionsused in Customer segmentation of passenger andfreight services and how the individual segmentscompare with each other on these dimensions)

Indian railways operates in all the segments ofPassenger and freight traffic except the Documents,Smalls and project cargo segments of the freightcategory. The decisions to cater to which segmentshave two dimensions—

Should the Indian railways cater to what arethe customer demands in total , duly adjustingto the changing trends

Business analysis trends have shown that thetransport seeking customer is maturing and seekingmore and more solutions to his felt needs, rather

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than simply seeking modes of transport. This isvisible in both Passenger and Freight categoriesin the shift to seeking logistic and supply chainmanagement solutions. The recent 3PL study (2011)shows that in Asia more than 65% of freightcustomers are seeking logistic solutions and wantto outsource these activities. Same is the trend inthe Passenger segments as can be seen in the formof seeking tour solutions. The question arises isthat Should Indian railways continue to positionitself as a transporter or as a Total solutions provider?Based on recent budget pronouncements, the laterseems the preferred choice.SUGGESTION 3 : The strategic orientation ofthe Indian Railways would be better served if itadapts to the changing customer trends and becomesa total supply chain solutions provider. This shouldbe achieved as a medium term goal- in 3-5 yearstime frame.The second dimension in the discussionwould be :· Irrespective of yes or no in the above

dimension, to what segments do we designand ply our services?

The major segments in both passenger and freightare given in Table 1(Please above). The ability tocater to the various segments in both passengerand freight depends upon the technical abilitiesof Indian railways to provide Time sensitive andcomfort/ safety laden services. This would translatein to the technical abilities of Speed and Space/comfort services in Passenger and Speed andbreakage preventing services and handling in Freight.These abilities not only determine what segmentsthe Railways can service, but more importantly howell it can compete with its competitor in eachsegment. This issue becomes critical in view ofthe fact that the business environment is becomingmore and more competitive and customers are

becoming more and more demanding with respectto quality of services.Before any suggestion is made to what limits ofspeed and comfort Indian railways must target, itwould be prudent to understand who are and wouldbe the competitors in various segments.In the freight business category—in bulk transport,coastal shipping would be our main competitor alongwith Road. Critical to this segment would be theability to deliver quality services at a competitivecost. In all other segments, road transport wouldbe our main competitors.SUGGESTION 4 : The Indian railways must beable to

Run Goods trains at 100-150kms speed. –medium term objectiveHave multi purpose Flat wagon and a combinedopen and covered wagon—medium termobjectiveIncrease common user terminals—short termobjectiveHave mechanized loading and unloadingmechanisms at all terminals—medium termobjectiveHave associated mechanisms to provide logisticssupport—medium term objectiveWork round the clock—short term objective

In the Passenger segment, the Main competitionwould be from road transport. It is a misplacednotion that low cost airlines are competing withLong distance rail passenger traffic. This has givenplace to a misconceived demand for high speedrail transport. Low cost airlines are not viable withoutgovernment subsidy, if Rail transport is welldeveloped. Secondly the capacity to carry per highspeed train and a plane is 20% of that of a fulllong distance train. Third, High speed rail can never

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match airlines in speeds achieved and thereforecannot compete on Time savings/.urgency whichis the main criteria for choice of Air transport bypassengers. Where urgency is not the reason fortravel of long distance, Comfort is the main customercriteria for choice of mode, which is the uniqueselling proposition of Railways. Therefore highspeed is not a requisite for rail transport.However, a definitive speed target is essential asthe inter city category should be enhanced by seekingto be able to do overnight travel in distances ofrange from 300-1200 kms and 300-900kms for daytime intercity travel. Presently the Limits are 300-800 for overnight and 300-500 for intercity daytime travel. This would require that speeds ofpassenger trains be increased.SUGGESTION 5 : The Indian railwaysmust be able to:

Run Passenger trains at 180-200kms speed—medium term objectiveShift from multi segment service trains tospecialized trains for each segment.—mediumto long term goalsSpecialized coaches for each passenger segment-medium-long term objectiveShould de-link catering from On-board activities.–medium term objectivesIdentify and provide critical on board services-short term objectives

While entering and maintaining services is oneobjective, but the Railways are also required tocontribute to the National objective of conservationof fuel resources and reduce environmental impactof fuel consumption. This it would achieve whenit would enhance its share in the transport marketto 45% each in freight and Passenger segments.

SUGGESTION 6: The Indian railways in the givenbelow time frame must attain the following marketshares in passenger and freight categories:

Presently, Indian railways is not in the businesssegments of Documents and project goodstransportation. It must create an entry into thesesegments enhance its revenue potential for the longterm.

An assumption is made that Railways has moreshare in long distance segments than in the shortdistance segments of passenger traffic. The overallshare of Railways in total passenger market is 18%as per the figures of the Ministry of Surface transport.Technology :Technology, as defined above is the mechanismsused to deliver goods and services in line withthe felt needs of the customers elected to serveby the organisation. Satisfaction of customers feltneeds is what all competition is about. This enablesthe best competitor to capture the maximum valuepotential available in this process. Technology isa great enabler of this process, especially in thebusiness of transportation or logistics. Thus creation,adaptation and leveraging of technology is anessential component of the strategic activities ofthe organisation which would enable it to successfullyachieve its long term goals.

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SUGGESTION 7: The following would be the Hierarchy of goals for the technology system on Indianrailways which would facilitate its achievement of its long term goal of financial viability.

Three major sub-goals at the Organisational levelare identified which are :1. Capacity addition2. Enhancement of Operational capabilities3. Reduce unit cost of operationsWhen the organisation wants to be financiallyindependent, it must have requisite capacity whichwill enable it to generate required surpluses, whichin turn would enable future capacity creation. Havingfinancial surpluses is crucial. This in turn is a functionof capacity and ability to deliver services aheadof competition or enhanced operational capabilitiesalong with pricing advantage. Pricing advantage iswhen there is an ability to capture maximum valuefrom customers in premium segments which arenot cost sensitive and an ability to fight price warswith maximum effectiveness (without sustaininglosses). Having a reduced unit cost of operationsenhances generation of surplus revenues from

premium segments while enabling a greaterdifferential as a slack to fight price wars in costdriven strategic segments. The various objectiveswhich are subservient to the main three sub-goalsare crucial ones. The other departmental objectiveshave to be developed in line with these strategicobjectives. It is these strategic objectives whichwill determine the importance of initiatives andactivities and thus the priority for resource allocationduring budgeting.The meaning of the relevant time frames is dealtas next.Time frames :The time frame for achievement of the hierarchyof goals is also a useful for monitoring andintroduction of course correction mechanisms. Forthis exercise the following time frames and theirmeaning in time periods is given below:

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The categorization is self explanatory. The samewill aply to all hierarchy of goals as suggested inthis paper. The idea of positioning it half waybetween the discussion of generation of goals isto facilitate the understanding of the concept ofinterlinkages of goals in the hierarchy and theconcept of feasibility on a time frame. Achievementof goals requires capabilities and a relevant timeframe. The first part of the discussion was to enablethe understanding of the concept of linkagesbetween the various goals, sub-goals and objectivesand the capabilities required to achieve them. Havingdone so, the paper is positioning the requisite timeframe as a concept.While technology is the instrument which is requiredto design and produce services, the organisationneeds to have in place appropriate systems andprocesses to leverage the value of having goodtechnology. So what should be the interlinked andsubservient hierarchy of goals for organisationalsystems and processes?Organisational systems and processes:These are the methods which humans will use toproduce the services in line with customers feltneeds. Business is defined as the fair exchange of

goods and services. Two wordsare critical in this definition—namely “A fair exchange” and “anexchange”. The first word“Exchange’ means that there aretwo parties—one the needy andone the giver and that’s why therequirement of exchange. It alsomeans that the needy

communicates what he/she wants and the giverproduces goods/services exactly as per the needy’swants. Therefore the first requirement for anysuccessful business venture is to have a Customerorientation.Customer orientation means, identification,recording, assessment, conversion and supply ofgoods and services in line with the felt needs ofidentified customers so that maximum customersatisfaction results. This is not a one time exercisebut needs to be done continuously over time ascustomer needs change with time and thereforebusiness requirements would also change. Customerorientation thus is effective alignment of productionsystems to felt needs of identified customer feltneeds.When such an alignment is achieved, it is felt thata customer and producer would agree to share thecustomer value achieved and availed by thecustomer. This is based on satisfaction achieved.The organisational systems and processes arecoordinated attempts to achieve this alignment.SUGGESTION 8 : Based on this logic the identifiedhierarchy of goals for organisational systems andprocesses is given as below:

Article


The Key organisational systems and processes whichwill serve the achievement of the final goal oflong term financial viability are:1. Reduced unit cost of operations2. Reduced unit cost of construction3. Customer orientation4. System and process audit5. Knowledge management6. Attaining capabilities for fostering innovation,

use of SCM, IT and Logistics AND OwnResearch and Development.

While the first three strategic sub-goals are selfexplanatory and have been touched n detail in theabove paragraphs (Prior to this discussion), the otherthree strategic sub-goals are equally important. Theseare related to equipping the human resource withthe requisite knowledge and skills to produce theservices designed in an effective way.

Capabilities to foster in terms of knowledge (K),Attitudes (A), skills (S) and Habits (H)-formingthe KASH framework-form the basic frameworkto develop a high performance work system.In such a work system, Human resourcemanagement is the strategic system objective andthus KASH framework forms the ideal frameworkto understand the achievement of a highperformance work system. Work is essentially ahuman intellect driven activity and is purposeful.Thus such activities are driven by aligned sub-goalsand objectives. Hence human work activities alsoneed to be interconnected to organisationalproduction systems through appropriate interlinkedsub-goals and objectives.

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All in all these aligned Organisational systems andprocesses facilitate the effectiveness of theproduction technology.Yet how are these three major components inan organisation linked to innovation?Linkages to innovation ecosystem and its sustenanceWhen we started this discussion on generation ofhierarchy of goals, we had defined innovation as“The adoption of an internally generated orpurchased device, system, policy, program,process, product or service that is new to theadapting organization”And Innovativeness as :“Innovativeness is adoption of multipleinnovations. Adoption of innovationencompasses generation, development andimplementation”.Thus innovativeness is an organisational capabilitywhich is an outcome of the innovation landscapeprevailing in the organisation and is part of theorganisational work culture.The work culture of any organisation is a functionof what is the work direction or strategic orientationof the organisation and strategic orientation is afunction of what customers segments does anorganisation want to do business in.

It is the strategic orientation which is chosen bythe top management of the organisation based anevaluation of the business opportunities availablein the business environment which is impactingthe organisation. The Hierarchy of goals are thendetermined by this strategic orientation and arelinked to the three pillars of organisational businessactivity - customers, technology and Organisationalprocesses.Innovation, therefore, becomes the tool whichenables an organisation to be competitive and attaincompetitive advantage in the business domain itis active. Sustained competitive advantage means—sustained market share, high customer satisfaction,and high capture of customer value. This is nota one time achievement but is to be maintainedover a long period of time. Sustained competitiveadvantage is what delivers financial surpluses whichthen facilitate long term financial viability. Thusinnovativeness is the foundation required to achievesustained competitive advantage.Many of the Customer, technology andorganisational processes objectives are there tofacilitate the attainment of organisational capabilityof innovativeness. For eg: Under Technology –OwnResearch and Development; under organisationalprocesses—System audit and Innovationcapabilities, knowledge management, and underCustomers—Customer intelligence are the mainstaysof the innovation landscape in an organisation andthus effective use of these leads to the developmentof an effective innovativeness capability. Theframework with which we started can now bemodified as given below :

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Conclusion:This Chapter highlights that the longterm goal should be to become afinancially independent andeconomically contributingorganisation. This requires an alignedhierarchy of goals, sub-goals andstrategic objectives for the three pillarsof the organisation –namely –Customers, Technology and Systemsand processes. Organisationalinnovativeness is the foundationwhich would drive the achievementof this hierarchy of goals.An attempt has been made to developa framework based on which thesehierarchy of goals have beendeveloped. Its linkages to theInnovation landscape have beenestablished. However, the details ofthese linkages are discussed in thechapter of “Towards an innovativeeconomy”.

REFERENCES :Damanpour, F. (1991).‘Organizational Innovation: AMeta-Analysis of Effects ofDeterminants and Moderators’,Academy of Management Journal,34, pp. 555–590.Drucker Peter F (1998): Thediscipline of innovation; Harvardbusiness review, November-December issue, pp 149-157Fagerberg, Jan; Mowery, David.C;and Nelson, Richard R(2005): TheOxford hand book of innovation; Published by Oxford universitypress, New YorkThompson, J D, Organizations inaction (1967), McGraw hillpublication, New York

Article


Vividh

My son Shovrya

He is my son, my only onePlain and simple, he carries two druples.

He feels happy to surprise me and I to get surprised.He Thinks his gradies are bettering me.

I think my modest income is troubling him.Both of us are wrong about the golden crownOur hearts are together

Whnen we have fun with each otherMy son, my only one

What can I do to keep him smilingHis tender lips tells me many things

- Lap top, Nintendo wii, x-box, mallBut I cannot get him all.He loves it as much, when I drop by

When he is not expecting me.He studies only to learn

How to have some more funMy son, my only one

"Shourya"

Anand Vijay Jha



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aobdo ñQ>oeZ na,~g ñQ>¢S> na `m aoñVm§ Ho$o ~mha,J§Xo go, {Î_§Jo go,¿n¡gm|L H$s JwOm[ae _| ¿Xmo ~ƒoL&

EH$ ¿d¥ÎmmH$ma ^dZL,~ZVo h¢ {Og_| ¿{Z`_/H$mZyZL,CZ Xmo ~ƒm| H$m OrdZ gwYmaZo Ho$o,CÝh| _w»` Ymam _| bmZo Ho$o&

na§Vw,¿{Z`_/H$mZyZL ñd`§ _| Hw$N> ^r Vmo Zht&do AnZm O_md‹S´>m MmhVo h¢,¿H$V©ì` {Zð>mL Am¡a CÎmaXm{`Ëd Ho$o gmW&

M§X _wÆ>r â bmoJ,¿A{YH$mam|LH$s Z¡`m _|,^yb OmVo h¢,H$V©ì`m| H$s nVdma H$mo&

na,¿h_L Zht ^yb nmVo h¢,~g,CZ ¿Xmo ~ƒm|LH$mo&lr {dO` Jm¡V_, I.R.S.S.E., AFP-04

{dO` Jm¡V_


{d{dY

B§gmZ _a ahm h¡, H$í_ra Ob ahm h¡

B§gmZ _a ahm h¡, H$í_ra Ob ahm h¡&nd©V-E- {h_mb` g§^b Om, dmo MrZ ~µT—> ahm h¡&ò AmJ Omo bJr h¡, OmZo ò H$~ ~wPoJr_mdmo BYa H$‹S´>o h¢, ZmJm ^r bJVo ZmamO h¡&Vob§JmZm Omo h¡ XhH$m- JwO©a ^r I‹S´>o h¢ AmO&&Mmam| Va\$ go {Ka H$a H$hVr h¡ ò O_rZo-E- {hÝXþñVmZ h_H$moXoIm ~hþV h¡ _¢Zo- Am`©Z H$mo- Am¡a Ð{d‹S´> H$mo-am_ _¢Zo XoIm- amdZ ^r _¢Zo XoIm-gwIm ^r _¢Zo XoIm- gmdZ ^r _¢Zo XoIm-Vwbgr H$mo _¢Zo XoIm- ahr_ _¢Zo XoIm-{VbH$, gw^mf, Ae\$mH$- Zohê$ H$mo _¢Zo XoIm~mny H$mo _¢Zo XoIm- ZËWy H$mo _¢Zo XoImBZ g~ Ho$o AmZo OmZo go- EH$ ~mV _¢Zo: grIr~wamB`m± ~hþV h¢ Bg O_mZo _| bo{H$Z-AÀN>mB`m| H$mo boHo$o ~µT—>Zm ~hþV H${R>Z h¡&^maV Cgr H$mo H$hVo- {OgH$m A_Z _| {Xb h¡&&AJa Mmho Vmo nb _| Xþ{Z`m± no hmo bo H$m{~OAmng _| `yht b‹S´>Ho$o H$hVo h¢ IwXm-hm{\$O\§$gmXmo H$mo hmoZo Xmo- Hw$N> PJ‹S´>o ^r ahZo XmoOhmZV h¡ ò h_mar- H$_Omoar Zm g_PZmAmVm h¡ {Xb-E- {hÝXþñVmZ H$mo _wpíH$bm| _| _ohgZmò Xoe Zm ê$Ho$oJm- AmJo Oê$a ~µT—>oJmOmo Mmho bJm bo Z\$aV Ho$o {V\$b gmao&{JbmZr, Aê$§{YªVr `m Y_© Ho$o aIdmbo&&OmAmo Mbmo Vw_ Mmb Q>oµT—>r - Am¡a bJm Xmo VmH$V gmar&na Hw$N> ~mV h¡ {H$ hñVr {_Q>Vr Zht h_mar&&lr {OVoÝÐ Hw$_ma, I.R.S.S.E., AFP-02

{OVoÝÐ Hw$_ma


{d{dY

àH¥${V H$s brbm

XoI àH¥${V H$s `h brbm, _¢ Vmo {Zhmb hmo J`m,H$sM‹‹S> _| H$_b pIbVm h¡, `h Vmo H$_mb hmo J`m&H¡$go JmD$, H¡$go gwZmD$, BgH$s {Xì`Vm XoI ê$H$ OmVr h¢ o Ow~m±,H$mo{Q>-H$mo{Q> hmWm| go Á`mXm, BgHo$ j{UH$ H$m`m©| _| h¢ D$Om©&_¢ Zht H$hVm {H$ B§gmZm| _| D$Om© Zht ahr h¡,na Cg D$Om© H$s {Xem H$ht Z H$ht JbV ahr h¢&{dZme àH¥${V ^r H$aVr h¡, na _Zwî` Cggo Zht grIVm,àH¥${V go à{VñnYm© H$a, AnZr hr H$~« h¡ ImoXVm&àH¥${V aMZm ^r H$aVr h¡ Am¡a AnZm gd©loð> XoVr h¡,na H$V©ì`m| H$m nmbZ Z hmo Vmo, nbâ _| aoV ^r H$a XoVr h¡&AmpIa Š`m| _Zwî` àH¥${V H$mo AnZm Xþí_Z g_PVm h¡,Omo _Zwî` àH¥${V go ~ZVm h¡ Am¡a Cgr _| {_b OmVm h¡,{\$a Š`m| _Zwî` AnZr Bg emœV _m± H$m Xm_Z ObmVm h¡&na _m± bo _m± h¡, dh Vmo XoVr hr ahoJr,AnZr Bg ñdmWu ~oQ>o H$s H$maJwOm[a`m± ghVr ahoJr&_oar ZOa _| "ñdmWu' eãX Bg ~oQ>o Ho$o {bE H$_ h¡,Omo AnZr hr _m± H$m OrZm _whmb H$ao, dmo Š`m "hË`mao' go H$_ h¡&lr {OVoÝÐ Hw$_ma AJ«dmb, I.R.A.S., AFP-02

{OVoÝÐ Hw$_ma AJ«dmb


{d{dY

g¥{ï>

OrdZ Ho$o nW na {~Iao hþò h¢ eyb,H$moB© ~M OmVm h¡ BZgo, na Hw$N> H$a OmVo h¢ ^yb&Hw$N> Eogo ^r h¢ Omo H$m±Q>m| _| ^r nm OmVo h¢ \y$bg~Hw$N> h¡ Vw_ na, OrdZ _| Zht h¢ Hw$N> ^r à{VHy$bÑµT—> {ZíM` Ed§ AmË_~b go hmoVr h¡ ha pñW{V AZwHy$bYmamAm| Ho$o doJ go Zm{dH$ hmoVm h¡ H$^r Zm ì`mHw$b,Y¡`© go nm boVm h¡ CëQ>r Ymam _| ^r _§{Ob AZwHy$bXoImo ZÝht MrQ>r AnZr JR>ar boH$a MbVr h¡,{JaVr h¡, {\$a CR>Vr h¡ Am¡a nm boVr hr h¡ _§{Ob _ZmoZwHy$b&Vw_ Vmo _mZd hmo g¥{ï> H$m gdm}Îm_ daXmZg~ Hw$N> h¡ Voao A§Xa Zht Mm{hò VwPH$mo AZwXmZH$a bo Vy \y$b-H$m±Q>m| H$s nhMmZ,Š`m|{H$ BZ na MbH$a hr ~ZoJm Vy _Zwî` _hmZ&lr gË`Xod nmR>H$, AFP-01

gË`Xod nmR>H$


{d{dY

_oao gnZo

CZtXr Am±I|, gnZo {bEbhamVr Mmb,IwX H$mo OJmVo,Xm¡‹S´>H$a-MbVo,ê$H$Vo-^mJVo,g_` na AmZo H$m à`mg,AmYm grEb ~MmZo H$s Amg,Eogo ewê$ hmoVm gdoam,Š`m `hr Wm gnZm _oam&

H$Vma _| AmZo,~§X Am±Im| go nµT—>Vo,WHo$o-WHo$o go ZhmVo,h‹S´>~‹S´>r _| ImVo,Xm¡‹S´>Vo hþE Šbmg_| AmVo,narjm _| nmg hmoZo H$m à`mg,AZ~wPo ~wPZo H$s H$`mg,Eogo ~rVVm {XZ _oam,Š`m `hr Wm gnZm _oamlrgd}e MÝÐ {ÛdoXr$, ^m.ao.`m§.go. go h¢

gd}e MÝÐ {ÛdoXr