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BSNL should reduce its staff: Pitroda panel
New Delhi: A committee headed by Sam Pitroda, advisor to the Prime Minister, has recommended that Bharat Sanchar Nigam should retire or transfer about 100,000 of its employees through measures such as a voluntary retirement scheme. This is a third of BSNL's total employee strength, of 300,000 across the country, reports Mansi Taneja from Business Standard.
To improve organisational performance and employee productivity substantially, BSNL should induct young talent in all spaces - technology, marketing, customer services and sales, the committee said in its report. BSNL should also start a performance-driven culture and complete the absorption of staff from the Indian Telecommunication service without delay. A restructuring of BSNL is already underway, under which four business units would be created for fixed access, mobility, enterprise and new businesses.
The committee also suggested creation of a separate subsidiary to hold a bank of underdeveloped land and other real estate assets, estimated to be about 2.5 million sq metres, and unutilised staff quarters. It should monetise the value of this subsidiary by collaborating with an experienced real estate company.
The committee, which also had HDFC Chairman Deepak Parekh and Union telecom secretary P J Thomas as its members, was set up to review the functioning of BSNL. For the first time, BSNL is expected to post a loss, due to increased competition and declining market share. Further, procedural delays on purchase of equipment and dependence on the government for decision making also hamper growth.BSNL's 93-million lines GSM tender has been on hold for a long while due to various controversies. The company faces huge capacity crunch in many places and has been constantly losing subscribers and market share.
The committee also recommended scrapping of the 93-million line tender. It said BSNL should follow a lease arrangement for telecom equipment, rather than purchase. Private telecom companies follow such a model for expansion. With this model, BSNL would reduce its capital expenditure, besides reducing its problem of having shortage of young trained engineers in the latest technologies, the panel felt.
To improve organisational performance and employee productivity substantially, BSNL should induct young talent in all spaces - technology, marketing, customer services and sales, the committee said in its report. BSNL should also start a performance-driven culture and complete the absorption of staff from the Indian Telecommunication service without delay. A restructuring of BSNL is already underway, under which four business units would be created for fixed access, mobility, enterprise and new businesses.
The committee also suggested creation of a separate subsidiary to hold a bank of underdeveloped land and other real estate assets, estimated to be about 2.5 million sq metres, and unutilised staff quarters. It should monetise the value of this subsidiary by collaborating with an experienced real estate company.
The committee, which also had HDFC Chairman Deepak Parekh and Union telecom secretary P J Thomas as its members, was set up to review the functioning of BSNL. For the first time, BSNL is expected to post a loss, due to increased competition and declining market share. Further, procedural delays on purchase of equipment and dependence on the government for decision making also hamper growth.BSNL's 93-million lines GSM tender has been on hold for a long while due to various controversies. The company faces huge capacity crunch in many places and has been constantly losing subscribers and market share.
The committee also recommended scrapping of the 93-million line tender. It said BSNL should follow a lease arrangement for telecom equipment, rather than purchase. Private telecom companies follow such a model for expansion. With this model, BSNL would reduce its capital expenditure, besides reducing its problem of having shortage of young trained engineers in the latest technologies, the panel felt.
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Reader's comments (18)
1: it is pity ,there are so many IAS peoples in
the ring, even these kind of situations
arising regular intervals.
whether IAS officer can be replaced with illiterate ones
whether IAS officer can be replaced with illiterate ones
Posted by: kittamani - 06 Mar, 2010
2: This should have been done much earlier.
The same should be done to the Oil PSUs HP, Bharat Petroleum, and Oil India Ltd. All the PSUs are overstaffed and the overhead costs are high reducing the loss.
The government can save crores and need not hike the petroleum prices.
The same should be done to the Oil PSUs HP, Bharat Petroleum, and Oil India Ltd. All the PSUs are overstaffed and the overhead costs are high reducing the loss.
The government can save crores and need not hike the petroleum prices.
Posted by: A. S. Bhasker Raj - 05 Mar, 2010
3: This is not new news. BSNL should have cut
down their staff by 70 percent some ten years
ago. It was a very cunning trick done by the
government babu unions that did not have it
done. When the mobile phones came, the mobile
phone rates were kept very high and the land
line cost low, just to make this department
survive with a gigantic load of white
elephants.
Not only should the government babus inside be cut down in number, but also the staff inside, including the so-called 'officers' should be made to be very polite and respectful to the public. A 'Sir' or 'Madam' or some other equivalant need to be used by them, when addressing the members of the public. A very good beginning can be done if an automatic recording of phone conversation between them and the public can be made, and used if there is any allegation of impoliteness to the public. At the moment, there is no record of perfectly irrascible tone they use to public queries.
As to the golden handshake that has been suggested, the bubus do not have any right to do a golden handshake with public funds. All such golden handshakes using public funds should be recovered from the officials who shared the loot.
Not only should the government babus inside be cut down in number, but also the staff inside, including the so-called 'officers' should be made to be very polite and respectful to the public. A 'Sir' or 'Madam' or some other equivalant need to be used by them, when addressing the members of the public. A very good beginning can be done if an automatic recording of phone conversation between them and the public can be made, and used if there is any allegation of impoliteness to the public. At the moment, there is no record of perfectly irrascible tone they use to public queries.
As to the golden handshake that has been suggested, the bubus do not have any right to do a golden handshake with public funds. All such golden handshakes using public funds should be recovered from the officials who shared the loot.
Posted by: Ved from Victoria Institutions - 05 Mar, 2010
4: Management are more responsible for any loss
or profit in any organization than the
employees who perform the activities under
the supervison of their bosses. Their any
activity can not be performed independentely.
So in my opinion management should be changed
firstly than employees will be automatically
improved yourself under the expert
management.
Posted by: sudha asthana - 05 Mar, 2010
5:Yes i agree with you and one more thing i
would like to add in you comment, Generally
You might have observed workstyle of Govt
Sectors and PVT LTD company i hope thre is
lot of things to change in that PVT LTD
company work with some target or Goal they
employee knows if he dont bring result within
the specified time he will no more sit on
that Table.In case of Govt employee once they
recruited till they get retire they are safe
i hope appresal should be calculated on the
bases of performance Not on the Pay
commission. That changes a lot. Belive me if
this thing happens within 2 or 3 years many
more people who are not comptant enough will
volantry retirement. May be mangement can
adopt these policies i know it is very very
dificult but i think not imposible
What do you say I arppreciate if some one respond to it.
What do you say I arppreciate if some one respond to it.
Ravindra replied to: sudha asthana
post - 06 Mar, 2010
post - 06 Mar, 2010
6: Good News. But this alone will not make
wonders. This decisiion has to be coupled
with quality initiatives. We all know most of
the Govt. organizations lack qualitative
service that are supplemented by lethargic
support. Change the staff, but make sure the
replacements copme in with competitive
attitude. Also, try to create a pool of
talents who can replace them in cases of
crisis.
Overall, it is a good move and much welcomed one.
Overall, it is a good move and much welcomed one.
Posted by: Nitinkumar - 05 Mar, 2010
7: First the panel has to remove the management
for under utilisation of equipment , men and
material. In my view the employees are not
responsible. The government has to make
compulsory that all IIM qualified candidates
to be inducted in the maintenance of all
PSU’s. Without the corrupted politicians
involvement. This will give good operational
management to make all PSUs as profit making
centre for Government
Posted by: Nageshwar Rao Samala - 05 Mar, 2010
8: Way to go Mr. Sam,
It was time we had a performance based criteria in place...
We can also incorporate a system in which the company is responsible to take care of the monthly salaries of its employees from the revenue generated.. this will make them more responsible..
It was time we had a performance based criteria in place...
We can also incorporate a system in which the company is responsible to take care of the monthly salaries of its employees from the revenue generated.. this will make them more responsible..
Posted by: Vivek, 9989844151 - 04 Mar, 2010
9: Perfect decision... it will help these people
getting more competitive to retain their
jobs, and hence efficiency in work. I also
think that there is a need to outsource lot
more of the company's tasks in order to bring
in efficiency and customer service.
Posted by: Jaymin Ghatalia - 04 Mar, 2010
10: BSNL employs dinosaurs, these creatures are
unable to change. They work for 9-5, do not
want to take any initiative, despise
customers, giving customers a run around
every time is in their DNA. Just want their
own comfort. Are pure bureaucratic, short
tempered and illiterate.
Trust me - no one can excel in any field just by clearing bunch of stupid exams (i am talking about verbal and non verbal reasoning).
Trust me - no one can excel in any field just by clearing bunch of stupid exams (i am talking about verbal and non verbal reasoning).
Posted by: Amit - 04 Mar, 2010
11:Agree to You
Jean replied to: Amit
post - 05 Mar, 2010
post - 05 Mar, 2010
12: During retrenchment, voluntary retirement can
be one option. Training employees for other
jobs (outplacement) can be another option.
Assisting employees to open new businesses
with liberal loans and cash surrender value
of pension in retirement may also be mutually
beneficial.
Posted by: Som Karamchetty - 04 Mar, 2010
13: Expected. you can't show results with govt
control.Freedom and accountability can work
wonders even in govt controlled companies.
Babugiri has already killed many companies
like ITI, HMT etc.
Posted by: mohan - 04 Mar, 2010
14: It was needed.
Posted by: Anjaan - 04 Mar, 2010
16:in our home town bsnl staff comes at 11 am
and leave at 3 pm in between 1 hr lunch time.
so loss is obvious
kumar replied to: sharad
post - 05 Mar, 2010
post - 05 Mar, 2010
17: IT's not the time which specify the quality
of the company. But the work they do is the
real thing to count. BSNL employees are lazy
they say, but please find the root cause.
This is same for all the public based
company. The root cause is management.
Management should be aware of the current
competitor and should make employees under it
equally aware of it.Management should Plan
transparency structure where each branch
should be aware of the other branch growth
and progress. So that the current branch and
take up the challenge and work more.Removing
the employees giving VRS and recruiting the
new is not a bad idea. But this will have
worst effect on the families who are forced
to take up it. Instead they can give training
to the employees based on the new
technologies growth. Learning marketing skill
will not take much time.It depends upon their
will and skill to get adopt.Working on the
same domain also is an reason that person
become inactive.Instead managers should
always see there employees are in active
state by giving them different
assignments.Define a new work culture instead
removing the employees from the job.
Neelam replied to: kumar
post - 10 Mar, 2010
post - 10 Mar, 2010
18: I agree with you.BSNL employees are not aware
of day 2 day progress and current
challenges.There is a huge lack of
communication between different sections.
There is no rocket science evolved which
employees cant understand or cant do .BSNL
employees might also be equally worried of
their future as company's viability is
questionable but what can they do unless they
are properly trained, assigned, monitored and
communicated by a system in place? A huge
change in work culture is needed and
definitely this has to be initiated from the
top level.
manoj replied to: Neelam
post - 17 Mar, 2010
post - 17 Mar, 2010
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