DOI
www.iveycases.com/ProductView.aspx?id=53010
Citation
S, Ramnarayan., Neha Gupta. Singareni Collieries: From Gloom to Glory Ivey publication www.iveycases.com/ProductView.aspx?id=53010.
Copyright
Ivey publication, 2011
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Abstract
The case narrates how A.P.V.N. Sarma, chairman and managing director (CMD) appointed in 1997, realized the pressing need for change to rescue Singareni Collieries Company Limited (SCCL) from impending bankruptcy. SCCL was declared "sick" (bankrupt) by the Board for Industrial and Financial Reconstruction (BIFR) twice, in 1992 and 1996. It had accumulated losses of 12.19 billion rupees. As it provided direct and indirect employment to people residing in the region around SCCL, the well-being of the organization was critical not only for the mammoth workforce, but also for the state of Andhra Pradesh (AP). The power generation units of the state relied significantly on the coal supplied by SCCL.The case captures various initiatives undertaken by Sarma to bridge the trust deficit between management and blue-collared workers with low literacy and income levels. It discusses the novel communication strategies to connect with workers. The case describes how numerous strikes plaguing SCCL were curbed, and order was restored to allow productivity to rise. Under Sarma's leadership, SCCL achieved a net profit of 894.1 million rupees for the fourth consecutive year in 2001.Sarma had a fixed tenure of five years which ended in 2001. The task for the new leader was to build on the foundations laid by Sarma and take the performance of SCCL to new heights.Learning Objective:The case is suitable for a course in organization behavior, change management/organization development and employee relations. As the case deals with the important theme of strengthening communication and thereby enhancing performance, it will be useful in undergraduate and graduate programs in management and executive education.The case can serve the following learning objectives:
Stimulate reflection on developing an effective change communication plan. The sophisticated new-age communication strategies (social networking, SMS, blogs, intranet, etc.) have limited utility in reaching out to workers with low literacy levels.
Encourage discussion on ways to bridge the trust deficit between management and labour, given complete absence of communication between two groups.
Help participants understand different challenges of change management and ways to meet them.