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Submitted to:
Mr. Haroon
Waheed
[PAKISTAN RAILWAYS
THE LIFE LINE OF
THE COUNTRY]
Prepared By: Maria Jawed (9689)
Page 2
TABLE OF CONTENTS
S. #
Topics
Executive Summary
Pakistan Railways the life line of the
country
1.
1.1
1.2
1.3
1.4
2.
3.
4.
5.
Action Planning
5.1
5.2
5.3
5.4
5.5
Organizational Issues
Key Clients
OD Process
Time & Resources
Shortage of Locomotives
Eroding Market Share
Soaring Budget Deficit
6.
History
At Present
Organizational Structure
Human Resource
Page #
2
3
10
Structural Design
Downsizing
Reengineering
Alliance Intervention
Network Intervention
Conclusion
Bibliography
12
13
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EXECUTIVE SUMMARY
Pakistan Railways (PR) is the state owned railway company of Pakistan. It is a
large organization under the administration of Ministry of Railways. Pakistan
Railways provides an important mode of transportation in the farthest corners of
the country and brings them closer for business, sightseeing, pilgrimage and
education. He current Chairman is Raja Shahid Hussain.
Over the past many years, Pakistan Railways has been facing problems and is now
on the verge of bankruptcy. With budget deficit of billions, eroding market share
and corruption scandals, the future of Pakistan Railways once the life line of the
country is grim. At the time of independence, both India and Pakistan, inherited
the Railway Network laid down by British. While Indian Railways has emerged as
a highly profitable organization, Pakistan Railways is struggling to keep itself
running.
This report summarizes how organization development can help Pakistan
Railways revamp its image and goodwill. It is based on facts and hypothetical
situations created by the group members to evaluate the applicability of OD
interventions. He data is collected from various sources including books,
newspaper articles and internet.
The report provides introduction of Pakistan Railways, its history, organizational
structure which is then followed by how the concepts of entering and contracting
can be applied to this case. Diagnosis of the organization has been done with the
help of data collected and hypothetical situations. Based on the diagnosis, OD
interventions have been suggested for Pakistan railways which include technostructural interventions and collaborative interventions.
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1.2 At Present
Organization Development & Change
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At present Pakistan Railway comprises of 8,163 route km, 1,212 stations and 42
train halts. It has a fleet of 546 diesel electric locomotives, 25,815 wagons and
2,099 passenger coaches. Maintenance is provided by three major locomotive
workshops and thirty-five smaller workshops. Signaling facilities at important
stations are track circulated within interlocking limits. Most routes have VHF
radio coverage for communication between train dispatchers and trains. Telephone
Communication is over wire lines and microwave. Pakistan Railways is multi
system and operates on three gauges, i.e. broad gauge, meter-gauge and narrow
gauge.
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Inefficient operations
Corruption
3.3 OD Process
To fix the problems faced by Pakistan Railways (PR), we recommend the process
with following key steps:
Organization Development & Change
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Action Planning: The first key output of the team is a 5 year action plan
that describes where Pakistan Railway should move to, key activities and
milestones, assigned responsibilities/accountabilities for those activities,
and contingencies/assumptions that need to be monitored.
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Questionnaires
Interviews
Observations
Unobtrusive measures
The data collected help us in identifying the root causes behind the problems faced
by Pakistan railways. Since the overall organization is facing problems, the
diagnosis is carried out at organizational level. The findings of diagnosis are
discussed in detailed as below:
4.2 Mismanagement
Currently Pakistan Railways is facing acute shortage of locomotives and spare
parts for maintenance of out of service locomotives. Since independence little has
been done to expand the railway network in Pakistan. As per the reports compiled
by the design team, Pakistan Railways need 40 50 locomotives annually to run
its operations effectively. However, during the past two decades only 100
locomotives have been added. The management of PR has failed to generate
revenues through use of assets like land, locomotive factory, carriage factory etc.
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The focus of Railway officials is on getting new locomotives while ignoring the
improvement in operations and maintenance of existing locomotives. The plans to
change broad gauge into standard gauge at this stage are not just costly but also
unnecessary.
4.4 Corruption
Corruption is the biggest problem Pakistan Railways is facing today. The Railway
Department has been suffering losses since years long. Contractor system is one of
the causes of such losses. Moreover, there are enormous irregularities in local
purchases. The number of officers cadre has increased considerably since 1977,
mostly due to political appointments. It has been revealed that the crises are self
generated creating a space for more corruption and PRACS-Pakistan Railways
Advisory Commute Services is responsible for this mess.
Selective services have been privatized by allotting its contract to different private
parties to operate those privatized trains. Ironically the contract has been awarded
only for ticketing and like buss conductors those private firms after selling out the
ticket deposits payments into the Railways account. As per agreement after
deducting its commission the contractors are legally bound to deposit the funds
into the Railway account but due to the nexuses between Railways bosses and
private contractors deposit the funds in private accounts. This illegal practice has
Organization Development & Change
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confronted Railways with financial crunch where as the officials of Railways are
least bothered for the interest of Pakistan. Some Railways circles insist that
Pakistan Railways is still a viable and progressive organization, provided the
rampant corruption could be controlled.
In short Pakistan Railways is a classic example of bad governance, poor policies,
corruption and mismanagement.
5. ACTION PLANNING
After a careful diagnosis, the results were feedback to the main clients. Several
meetings were conducted with key clients to determine the type of OD
interventions that will most appropriately suit the needs of Pakistan Railways. The
clients and consultants jointly agree that Pakistan Railways need a mixture of
techno-structural and collaborative interventions to recover from the current crisis.
Officer Cadre
Station Masters
Running Staff
Class Four comprises of labors, signal operators etc.
The structure needs to be revamped into a more leaner and flexible one. A
combination of divisional and network structure will be most appropriate for
Pakistan railways. The PR management can retain the structure based on current
divisions and create a network of these divisions for better management of
operations and resources.
5.2 Downsizing
The Pakistan Railways is an over staffed organization. Political appointments over
the years have added to the problem and are the major reason behind
organizations financial troubles. Departments like Railway Police, Stores &
Purchase need to be abolished. Other over staffed departments like Audit &
Accounts, General Administration etc. need drastic cuts in workforce. For
Organization Development & Change
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5.3 Reengineering
Pakistan Railways have great potential for growth. However, the current process
and technology does not provide much room for implementing growth strategies.
Pakistan Railways can improve the performance of its various functions and
department through proper use of information technology. The areas where
information technology can play a vital role include:
-
Seat Reservations
Freight Management
Asset Management
Track Management
Rolling stock inventory
Electric Billing
Timetable
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Apart from techno-structural interventions, Pakistan Railways can make good use
of collaborative interventions to improve productivity. Instead of hiring
information technology and database experts, Pakistan Railways can create an
alliance with National Database & Registration Authority (NADRA) for
developing Track Management and Seat Reservation Systems.
Similarly Pakistan Railways can create alliance with China Railway Engineering
Corporation (CREC) for expansion of railway tracks in Pakistan.
6. CONCLUSION
With growing interest in the development of Trans-Asian rail links, one might
think that Pakistan Railways has a promising future. However, the Railway
Ministry, the Railway Board and all the relevant agencies have to play their role to
return Pakistan Railways to its glorious days. Before allocating any further funds
to bail out the organization, government should force the management to undergo
vast structural changes as recommended by OD consultants in this report. These
changes can be implemented within a period of 3 5 years and once the changes
have been made and evaluated then new investment plans can be made.
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BIBLIOGRAPHY
-
https://www.ukessays.com/essays/management/organization-developmentpractices-in-pakistani-organization-management-essay.php
http://armandojusto.blogspot.com/2009/04/organizational-developmentod.html
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https://www.ukessays.com/essays/management/organization-developmentpractices-in-pakistani-organization-management-essay.php
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