Bookman International Journal of Accounts, Economics & Business Management, Vol. 1 No. 2, October-November-December 2012               / 51
ISSN No. 2319-426X © Bookman International Journals :


                     (SINGARENI COLLIERIES CO. LTD.)
                                       1Sardar   Gugloth* and 2Nalla Bala Kalyan Kumar
                      1Associate   Professor, 2Research Scholar, 1,2Department of Management Studies,
                                  Sri Venkateswara University, Tirupati, Andhra Pradesh, INDIA.
                                         *Corresponding Author :

Management Development Programmes (MDPs) have been playing an imperative role for the last three decades in India. The current study
analyzes the performance of SCCL. The article highlights and evaluates the performance of MDPs and their efficiency in bringing out the
effective managers so as to ensure the organization development. The Singareni Collieries Company occupies a crucial position in the
economic development of the entire south and particularly the state of Andhra Pradesh. The management of Singareni, its organizational
set-up, financial position, employment status, wages and service conditions of its workers, their working and living conditions and the set-
up of the personal department will greatly influence directly or indirectly the industrial relations climate in it.

Keywords : Coal Industry, Development, Management, Programmes, SCCL.

1. INTRODUCTION                                                            development and under development. Despite the fact of
Management Development Programmes (MDPs) have been                         viewing human resource as an asset, there is a gloomy side
playing a vital role for the last three decades in India,                  to this issue. An element, which has surfaced in the
because these have been widely accepted as critical input                  warning signal of the World Bank, as related to India is that
for improving managerial performance and organizational                    by the turn of this century, India will have abundance of
effectiveness. Management development involves making                      human resources, the brain trust of a nation and on the other
exercises in managerial manpower flows, future inventories                 side, we are in a state of emergency to convert the human
of human skills, abilities, resources to match demands of                  resources as asset. This is possible only through continuous
expanding, diversifying operations of the organization;                    recycling of human resources through formal, informal and
forecast of human resources balance sheets, and                            non-formal education involving training and retraining.
programmes of manpower surpluses and deficits, etc.                        Most of the Public Enterprises have taken up HRD in a big
                                                                           way, however, in private sector it is less continuous but
Definition of Management Development : Management                          more enterprise focused and need based. It is also a fact that
development is any part of the process by which a manager                  in private sector formal assessment of training needs and
grows in his job and becomes more promotable. Under this                   strategies of fulfilling them are absent. It is often viewed as
broad definition, chance could be equally as effective as                  a retreat for reflection and recruitment. But things are
directed activity. It would be fatuous to say that chance                  changing under the new economic policy and globalization
does not play a significant part in the development of most                of operations. Increasingly private sector industrial houses
managers. There are some men who have an amazing                           are setting up training centers and planning to establish
proclivity for being in the right place at the right time under            even private universities.
the right leadership. The assumption is that this will happen
to every young manager.                                                    Importance of MDPs in coal industry : In the present
                                                                           information age, a large number of organizations , whether
“Management development” means any planned, guided,                        engaged in manufacturing or services or whether public or
or directed activity undertaken by a manager to help                       private sectors, are laying emphasis on the development
himself become more competent in his present position or                   which is an outcome of the pressure of change in global
to prepare him for heavier responsibilities to come. Implicit              scenario, which requires competent personnel to cope with
in this concept is a fundamental belief that no man can                    changes. Globalization waves have created considerable
develop another. In the final analysis, the only one capable               ripples in the all-important area of human resources their
way of developing any manger is himself.                                   interaction is the corporate world. Today’s competitive
                                                                           environment necessitates gradation of knowledge and skills
Training and Development Movement in India : India is                      in the existing employees, procurement of skilled/trained
passing through convulsive changes due to advancement in                   employee’s and re-training them on a continuous basis.
science and technology but at the same time, 1000million                   Broadening of skill base of employees and overcoming
people of this country are caught in the twilight zone of                  human resources obsolescence is the need of the hour. One
Sardar Guglothand Nalla Bala Kalyan Kumar                                                         BKMNIJAEBM, Vol. I (II), 2012 / 52

of the main challenges faced by organization, especially the     Management Training : Some institutions cater to the
coalmines industries, is the need to develop human               specific training needs of the in-service people as well as
resources capable of handling in operation; in other words,      prepare newly recruited personnel for the jobs. They
to optimize human resources, organizations have to be            provide job-oriented training and claim to improve job
receptive about designing and implementing MDPs. In the          related knowledge, skill and attitude of the managerial
liberalized and competitive areas, the world is striving for a   personnel of business organizations. These programmes
change amidst pressures of soft skills and technological         usually concentrate on the formation of improvement of
development. The employees need to acquire a considerable        managerial skills. Such training programmes are highly
amount of training development skills in training                specialized, practical, job specific, short ranged, of
assessment, designing and choosing effective methods in          immediate relevance to learners and progress of which can
improving the management skills. In many organizations,          be measured. This may be called as management skill
especially in coal industries, management training is            training programs, which are not very popular in India.
considered as an integral part of organizational planning.
Systematic and planned development of managers provides          Management Education-cum-Training : Most of the
direction and purpose to effective development of                institutions conduct training programmes based on the
employees. For effective functioning of existing managerial      knowledge inputs of management discipline.          These
personnel for future, MDPs need to be analyzed                   programmes are more of the nature of management
periodically and reoriented to cope with the changing            education and meet the training requirements of the in-
requirements.                                                    service people in a general way. They may have direct or
                                                                 indirect bearing on the management skill formation or up
                                                                 gradation depending on individual’s initiative and ability
2. NATURE                   OF           MANAGEMENT              since they are not designed for specific target population.
    DEVELOPMENT PROGRAMMES                                       Such programmes may be of shorter or longer duration
These institutions provide a host of management                  depending on the choice of programmes designed by
development programmes attempting to inculcate concepts,         training institutions. These programmes are very common
principles, theories and techniques of general and functional    in India and work on the proposition of universality of
management in job seekers of high positions and in-service       management knowledge.
executives so as to acquire and upgrade their professional
competence in dealing with growing complexities of work,         Induction and Orientation Training : Some of the
people and organizational management leading to national         institutions or training departments conduct induction and
development. Broadly speaking, most of the management            orientation training programmes. The former usually is
development programmes conducted by these institutions           meant for the people who have been selected fresh to one or
may be classified into several categories depending on the       the other organization of government departments. Under
nature of Management Development Programmes discuss              this, newly selected personnel are prepared first of the jobs
below in figure 1.                                               and thereafter placed in their respective job positions. Such
                                                                 programmes impart job and organization related knowledge
                                                                 and skills. The latter is arranged for in-serve people to
                                                                 update their knowledge and skill or meet new challenges
                                                                 brought in by environmental changes.

                                                                 Research and Consultancy : Some of these institutions
                                                                 conduct management research and offer management
                                                                 consultancy services in addition to education and training.
                                                                 These research and consultancy services help organizations
                                                                 improve their effectiveness by identifying deep rooted
                                                                 problems and resorting to appropriate solutions.

       Fig. 1 : Nature of Management Development                 3. PERFORMANCE OF SCCL
                        Programmes                               Coal is a major mineral-mine in the country. It is a major
                                                                 source of energy for most of the Indian industries as nearly
Management Education : Any of the institutions                   80 per cent of the energy requirements are met by the coal
especially universities and management institutes impart         and therefore, it is one of the chief contributors of economic
management education and confer degree or diploma in the         development of the country. The Indian industries are by
management discipline. These programmes are highly               and large coal based. The importance of coal is also
academic, general in nature and longer in duration. These        realized by the recovery of a number of by-products like
institutions prepare younger generations for management          tar, benzol, sulphur, calcium carbide, methane, etc. Coal
profession by providing more knowledge inputs.                   claims an increasing importance in our national economy as
                                                                 the crude oil prices are rising throughout the globe. The fast
Sardar Guglothand Nalla Bala Kalyan Kumar                                                         BKMNIJAEBM, Vol. I (II), 2012 / 53

changing industrial map of Andhra Pradesh owes much to          The Primary Phase (1889-1927) : The first Coal Mine was
the state participation in the economic activity through the    opened in 1989 at Yellandu and Coal-Mining continued in
philosophy of public sector. The Singareni Collieries Co.       this area till 1927. In the inaugural year 18, 89, 59,671 tons
Ltd., is the oldest industry in the public sector in Andhra     of coal was produced.
Pradesh. It is located in the economically backward and
tribal areas of three districts in Andhra Pradesh, namely       Initial Expansion (1928-1960) : During this period, SCCL
Khammam, Karimnagar and Adilabad, and plays a crucial           commenced Coal-Mining operations in Bellampalli and
role in the economic development of these districts. The        Kothagudem areas. Singareni grew from a production level
large quantities of its coal product are utilized by the        of 0.70 mt in 1928 to 2.49 mt in 1960.
thermal power plants and cement industry. Andhra Pradesh
has large deposits of coal (8,583 million tonnes) of non-       Pre-Nationalization Era (1961-73) : This period witnessed
coking type which would last for several hundreds of years.     a steep growth in coal production as the Government of
                                                                India also participated in investment in SCCL from 1960.
The coal fields in Andhra Pradesh which provides                Coal-Mining activities were extended to other areas like
employment to nearly 88,000 workers cater to the market         Mandamarri & Ramagundam (1961) and Ramakrishnapur
needs of the entire South. The industrial progress of the       (1963).
south, in general and the state of Andhra Pradesh in
particular depends to a considerable extent on the ability of   Post-Nationalization Era (197-92) : In the year 1973
the Singareni to supply the coal at reasonable rate. The        coalmines in other parts of India were nationalized to meet
power houses, industries and railways are the major             the increasing energy requirements of the country. Large
consumers of coal produced by Singareni and the                 Scale expansion/modernization of mines were taken up
consumption accounts to 52.28%, 36.94% and 10.78%               between 1973-1992. Opencast mining commenced in SCCL
respectively during the year 1982-83.                           in 1975 with the opening of Opencast –I mine in
                                                                Godavarikhani area.
The Singareni is the largest contributor to the public
exchequers by way of royalties and taxes. In 1973-74 its        Liberalization Era 1992-2003 : Even though the country
contributions towards the State and Central revenues were       adopted economic reforms in the early 1990’s, it was not
Rs.150.5 lakhs and Rs.149.7 lakhs respectively. They were       until 1996 that the coal industry felt liberalization through
increased to Rs.1783.44 lakhs to State and Rs.687.34 lakhs      deregulation of pricing and distribution of higher grades of
to the Central exchequers during 1982-83. This shows            coal. During this period the company witnessed a
nearly a record of twelve fold and fivefold increase in these   remarkable turnaround due to structural reforms initiated in
contributions to the State and Central revenues respectively,   1997 with significant increase in production, productivity
and it once again highlights the company’s prominence in        and profitability.
the economy. As a consequence of the crucial position it
occupies in the economy and of any disturbance in its           4. REVIEW OF LITERATURE
production activity owing to disturbed industrial peace or
failure or breakdown of plant and machinery, the normal         Anuradha R. Dr (2003) explained the importance of
functioning of the power houses, cement industries,             aligning the energies of various layers inside the
railways and other industries in the area would come to a       organization to achieve the common objective and she
standstill.                                                     concluded that the organization effectiveness and goal
                                                                depended upon the individual effectiveness and
Phases of the Growth of Coal Production : The growth of         responsibility.
coal production since the company’s inception can be
classified into five phases, which are presented in figure 2.   Apparao C and Guptha A.P (2003) highlighted on how
                                                                training has been systematically planned and implemented
                                                                at RINL (Rastriya Ispat Nigam Ltd. Public Sector Steel
                                                                Plant Vishakapatnam) how the top management involved in
                                                                HRD and how the training function was interwoven in the
                                                                hierarchical web of the organization, bringing out
                                                                commitment at all levels.

                                                                Deshpande and Viswesvaran (1992) indicated that
                                                                effective selection procedure for the expatriates and their
                                                                training were the important factors in the matter of realizing
                                                                the full potential of the expatriates. In their meta-analysis,
                                                                they found a positive relationship and psychological well
                                                                being; scowl skills with host country nationals, the ability to
    Fig. 2 : Phases of the Growth of Coal Production
                                                                adjust, and the development of accurate perception of the
Sardar Guglothand Nalla Bala Kalyan Kumar                                                       BKMNIJAEBM, Vol. I (II), 2012 / 54

host culture and its people. They also found that most          Area. The sub-objectives of study are as follows :
studies indicate a positive relationship between cross-          To examine the policy, procedures and process of
cultural training and performance.                                  MDPs of the SCCL.
                                                                 To analyse the effective implementation of MDPs in
Dwivedi R. S (1997) describe that the training was                  SCCL.
prerequisite to improved performance and preparing human         To evaluate the performance of MDPs and their
resources for new jobs, transfers, promotions, and change           efficiency in bringing out the effective managers so as
over modern technology and equipment. In addition to                to ensure the organization development.
training of new entrants, manpower at all levels requires        To offer the suggestion to improve the effective
refresher training from time to time to avoid personal              implementation of MDPs at various functionary levels
obsolescence and improving its competence to hold higher            based on the findings and thereupon conclusion in
positions.                                                          drawn.
Hashim (2001) surveyed 262 training institutions in
Malaysia to identify the practices of training providers for    7. HYPOTHESIS OF THE STUDY
evaluating training programs. He found that training            Keeping in view of the above objectives, the following
providers used different evaluation methods that included       hypotheses have been formulated:
trainees feedback, observations, interviews, performance         There is no significant difference between before and
analysis, and training reactions forms and concluded that           after the MDPs in updating the knowledge and skills of
the most used method was the training reactions form as             the Managers at the different management levels.
clients require them.                                            The Management Development programs in SCCL
                                                                    have been perfectly implemented to improve the
5. NEED FOR THE STUDY                                               performance of the employees as per the Manager’s
In the era of Liberalization, Privatization and Globalization       opinion.
(LPG), the manager’s job is challenging and cyclical in
nature, so that the job of management development is a          8. SCOPE OF THE STUDY
continuing and repetitive activity. A new era in the coal       The scope of present study is confined to the SCCL,
industry in India has ushered in necessitating the coal to      Kothagudem area at corporate level. A dedicated discussion
respond effectively to the continuing and rapid changes in      on each criterion has been given to the extent disclosed by
the socio-economic scenario in the country. The                 the undertaking. The present study covers the entire
expectations from coal and demands made on them which           company in overall manner. However for the purpose of
are increasing both in volume and complexity have made          detailed examination unit level practices were taken from
the role of coal as more challenging, requiring empathy and     Kothagudem Area.
new types of skills and expertise on the part of coal mine
employees. In view of the recent and ongoing economic
reforms Indian corporate class has decided to improve           9. METHODOLOGY
Management Development Programmes and its competitive           The methodology adopted in the present study included
edge. No organization can get better over night. Every          selection of sample, period of study, data source, analysis
organization has to start it and success depends on the         and interpretation of data. The present study is based on
willingness of management to abandon the traditional            primary as well as secondary data. Primary data was
approach for a new better way. Competitiveness is a reality     collected through structured questionnaires and personal
to stay ahead of the best of the competitor’s strategy.         discussions with the officials of the SCCL, and secondary
Growth not only helps access to the market but also brings      data from the annual reports of the SCCL, other published
a positive image to the organization. A modern problem          reports, official records and documents relating to
which begins as a result of shift from the craft man is         management training and development programs, libraries
operation of goods to mass production. Moreover MDP is a        of institutes and universities and reports of the committee
dynamic concept which changes overtime, needs and               on public undertaking, public enterprises management
expectations of organization, which is striving untiringly to   board, Hyderabad. While presenting the data, charts and
inform MDPs in to its work environment. Therefore, the          graphs were used at relevant places apart from the table.
present study makes a modern attempt to evaluate the            Abbreviations were used for the term, which were repeated
Management Development Programmes in SCCL unit of               over a number of times.
Kothagudem Area.
                                                                Sample Design : In order to evaluate the effectiveness of
                                                                MDP in SCCL, the Kothagudem unit was chosen. SCCL is
6. OBJECTIVES OF THE STUDY                                      a leading coal industry with 47 mines, among them 11 are
The basic objective of present study is to evaluate the         open cast and remaining 36 under mines. The sample of
Management Development Programmes (MDP) in Coal                 managers at various functioning levels tentatively fixed 180
Industry with Special Reference to SCCL, Kothagudem             which included all Managers cadres. Among them 100
Sardar Guglothand Nalla Bala Kalyan Kumar                                                        BKMNIJAEBM, Vol. I (II), 2012 / 55

members were chosen from junior Managers cadre, 60              The survey of general facilities in the MDP conducted
members from middle level Managers cadre and the                showed that everybody found the facilities to be good while
remaining 20 members from the senior level Managers             a significant portion of around 25% found it very good and
cadre at the selected unit.                                     it was rated very poor by a negligible quarter of trainees
                                                                from various cadres.
Tools of Analysis : The data, thus, collected were be
processed, analyzed by applying appropriate techniques like     The evaluation of MDP at the end of the training program
chi-square test using SPSS package and were percentages,        was evaluated primarily through written test for all the
averages and growth rates. There upon conclusions were          levels of managers. 87% of corporate managers were
drawn and suggestions were offered.                             evaluated through interviews while 75% of junior level
                                                                managers were merited based on trainers report. End of
                                                                course reviews, descriptions and questionnaires were also
10.LIMITATIONS OF THE STUDY                                     used as subordinating tools for evaluation
 Secondary data was collected from more than one
   source, which in turn lacked uniformity, consistency         The calculated values show that the correlation between JL
   and regularity. Information taken from internal records      & ML and ML & TL were negatively correlated, whereas
   suffered from non-availability (irregularity).               the correlation between JL & TL was positively correlated
 The questionnaires used for the purpose of collecting         when compared with others. That there was a very good
   the primary data from the respondents also suffered          correlation between JL & TL. Since they were positively
   due to different level of perception interpretation and      correlated.
   behaviour of sample respondents.
 Different Opinions about Management Development               The calculated values and the table use point out that
   Programmes were also not gathered since they were            correlation between the JL and ML was a good correlation
   widely spread over. Hence the study reflects the view        because they were positively correlated compared to the
   of selected category of organization members only.           other i.e. between JL & TL, TL & ML. They were all
 Since Management Development Programme involves               negatively correlated, only the rank correlation between JL
   all levels, all departments, all functions, all areas, all   and ML were positively correlated. Since they were
   activities and all processes, there can be studied from      positively rejected were formed to be JL & ML positive,
   various angles.                                              and good. The benefits gained by JL & ML were positively
 While calculating the averages and percentages                correlated.
   approximation was to be made for the         values up to
   two decimal digits.
                                                                The study has shown that the training programs for all
11.FINDINGS                                                     levels have yielded fruits to the organization, but during the
It was found that the employees who were undergoing             study there was a suggestion invited from the sample
training programs mostly fell between the ages 25-45 years      respondents saying that the frequency of training programs
and these were 25% of employees who were below 35 years         was increased and the MDP involvement of junior level
at junior level. When we see the trend with the mid level       employees also increased.
employees they were in the age group of 35–45 years who
were interested in management development programs. The         There should be proper utilization of the budgets that are
top level was also equally in MDP programs. So age wise         allocated.
the distribution of employees towards MDP was spread and
acknowledged for all age groups.                                The training methodology adopted should be according to
                                                                the level and skill of employees rather than the decided
In the, use of training at work it was found that 42% of        level.
junior level employees, 27% of mid level employees and
22% of top level people had high correlation to their           Senior managers need a good overview of all managerial
training practices and practical implications. It was found     aspects of designing and operating a mechanized mine. This
                                                                may be gained by a number of in-depth visits to 1 or 2
that overall training found most of supporters across all the
                                                                mines only, with opportunity to discuss plans and
levels of the organization.
                                                                performance with senior mine management. Junior
On the survey on MDP methods for all levels, lecture            managers require detailed knowledge and experience of day
method was preferred by junior level and mid level              to day operational management. Middle managers need to
employees while brain storming was preferred by top level       steer a mid course between these two extremes.
managers. Group discussion was the next most preferred
method for junior level managers while it was seminar           Training “projects” should be defined within the overall
                                                                progamme. Each project should have specific objectives
method for mid level managers and role play for top level
                                                                clearly justified in the context of the industry’s needs. Any
Sardar Guglothand Nalla Bala Kalyan Kumar                                                           BKMNIJAEBM, Vol. I (II), 2012 / 56

complementary inputs (e.g. consultants, equipment)                [4] Chakraborty, S.K. “Managerial Effectiveness and Quality of
required to achieve the objectives should be specified and             Working Life: Indian Insights “, New Delhi: Tata McGraw
used for training.                                                     Hill, 1987.
                                                                  [5] Dwivedi, R.S. “Managing Human Resources: Personnel
                                                                       Management in India Enterprises “, New Delhi: Galgotia
13.CONCLUSION                                                          Publishing Co., 1997.
In the era of Liberalization, Privatization and Globalization     [6] Dwivedi, R.S. “Managing Human Resources: Personnel
                                                                       Management in India Enterprises “, New Delhi: Galgotia
(LPG), the manager’s job is challenging and cyclical in
                                                                       Publishing Co., 1997.
nature, so that the job of management development is a            [7] Kuldeepsingh T.V.Rao, “Excellence through Human
continuing and repetitive activity. A new era in the coal              Resource Development systems”, Tate McGraw hill, 1996.
industry in India has ushered in necessitating the coal to        [8] Managham, I. and Silver, M., “Management Training
respond effectively to the continuing and rapid changes in             Context and Practice”, Pilot Survey on Management Training
the socio-economic scenario in the country. MDP is a                   sponsored by the Economic and Social Research Council and
dynamic concept which changes overtime, needs and                      the Department of Trade and Industry, School of
expectations of organization, which is striving untiringly to          Management, University of Bath, Bath, 1986.
inform MDPs into its work environment. Management                 [9] Nair, M.R.R.” Major HRD initiatives in SAIL “, in IGNOU’s
                                                                       Human Resource Development, 1990.
development implies programme centered training for
                                                                  [10] R.S.    Dwivedi      “Human      Relation   &Organizational
developing professional class of managers in modern                    Behaviouer”, Machillan India limited, 1995.
techniques in making them acquire skill and insight in            [11] Rao, T.V, “Human Resources Development: Experiences,
decision making. This paper discussion was carried on the              Interventions, Strategies”, New Delhi: Sage Publications
history of coal industry and coal companies in India,                  India Pvt.Ltd. 1996.
evolution of SCCL, phases of the growth of coal                   [12] Satesh pai, S. Ravisankar R.K. Mishra “Human Resource
production,     operational     analysis,    communications            Managerial and Perspective for the New Millennium”,
strategies, working performance and organizational                     Himalaya publisher, 1999.
strengths of SCCL, welfare measures, safety and trainee           [13] Virmani, B.R. and Premila Seth, “Evaluating Management
and measures taken for enhancement of safety,                          Training and Development “, Vision Books, 1985.
developments, other achievements and landmarks in the             [15]
history of SCCL and organization structure of SCCL at             [16]
mining level, area level and corporate level. The total           [17]
workforce employed in an organization at various levels,                                                                       
performing different types of jobs whether blue collar or
white collar nature collectively complimented for the
success and effectiveness of management of human
resources. In the paper an attempt has been made to analyze
and evaluate the performance of MDPs in SCCL with a
structured questionnaire, according to age-wise, length of
service, functional need, satisfaction of trading methods,
annual budget for training and development, difficulties
faced by the organization in implementing MDPs,
identifying, selecting and improving training programmes
to employees and procedures used at the end of the training
programmes, etc. Training teams with diversified
background having unprecedented excellence or mostly
used and performance improvement was taken up based on
the study. The organization is encouraging the global
training programs in the fields of mining, management
training and maintenance of equipments supplied to the

[1] A.K.Sharma “Management Development in Public
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[2] Agarwal, R.D., “Dynamics of Personnel Management in
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[3] Bala Krishnan, S., J.Rath and C.S.Venkat Rartnam. “Steel in
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    prulishers, 1993.
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