Project on Post Department of Indai

8/6/2019 Project on Post Department of Indai

1/75

A

Study of GovernmentDepartment of Posts

Submitted To,Prof. Dipalee Atre

N.R.Institute of business

Administration

Submitted by,Abhishek Bhansali (11)Mansi Modi (65)Pooja Rawal (104)Tanha Shah (132)Sakshi Sharma (137)Maitri Sheth (139)Ram Kumar Shinghal (141)Ankita Vadera (160)Bharvi Joshi (180)Vikas Mehta

1


2/75

A

REPORT ON

GovernmentDepartment of Posts

2


3/75

N.R INSTITUTE OF BUSINESS ADMINISTRATIONGLS campus, Mardia plaza lane, Off. C.G.Road, Ellis bridge, A bad -6 Ph- 07926430373

CERTETIFICE:

This is to certify that a report submitted by the undermentioned students is in the partial fulfillment of therequirement for the completion of Project work at the Third YearBachelor Of Business Administration for the year 2009-2010.

Title of the project: Study on Government Department of Posts

Name of the project: Government Department of Posts

Signature Signature

3


4/75

Prof. Anagha Dixit Prof. Dipalee

Atre (DIRECTOR) (PROF. INCHARGE)

ACKNOWLEDGEMENT:

We acknowledge our gratitude to all the kind people, whose support andencouragement made this research a fruitful endeavor.

Here, we take an opportunity to express our deep felt regards to our project

guide Prof. Dipalee Atre, for her genuine interest, astute guidance and motivationthroughout the duration of the project.

We extend are thanks to our director-in-charge Prof. Anagha Dixit for providing such an opportunity to explore the realms of the field of research.

We are especially thankful to Mr. Raju Ganguli -Head officer of khanpur circle Ahmadabad, because without his co-operation & information provided this

project would have not been possible.

4


5/75

INTRODUCTION

India post is the bridge across physical distance and is committed todeploy efficient means to reduce the time between sending a missive toreceiving it. India post is forward looking and modern. It embraces change andincorporates services to fulfill the requirements of its customers.

It was established in India in 1764 by the British East India Company.It has come a long way from using horses to carry mail to todays speed post.

India post brings to the mind a universe of intricate network of postoffices across the length and breadth of the country. This network forms thelargest postal system in the world with an array of about 1.55 lakh of postoffices; it dwarfs all other postal systems in sheer numbers.

In these 154 years, the post office has been more than the Means of communication it has helped in nation building and connecting the diverseregions and populace of the country. India Post touches the lives of Indians inmore ways than one. It has indeed come a long way from merely transmittingmessages, to providing a wide range of services for the Socio-Economic

betterment of the people.

5


6/75

The post office has been in the service of the nation for over 150years from now. Positioned as the nerve center of communication incommunity life, today, the post office faces tough competition from newer modes of technology, which have redefined Connectivity. Even in the tough

competition the focus towards fulfilling social commitment continues unabated by participating in all this kind of activity:

They are providing Communication services through letters, post cardsetc. An extensive postal network has lead the Indian post to the enviable

position of being closer to the citizens of the country, than any other public body.

Transportation services through parcel, logistics etc are also provided bythem. Value added services like Speed Post service, Business Post, Direct Postetc make the postal services closer to the citizens of the country.

They are also providing financial services like savings bank, moneyorder, insurance, etc. They are not only providing fast service but also theservices provided by them are at cheapest, affordable rates to be suitable for absolutely all. As post offices are opened on the basis of specific norms, thedepartment has to do fine balancing act between demands for new post officesand providing financial justification.

The post service still exists inspite of the current scenario - facing toughcompetition from electronic mail, courier service providers - just because their objective has been to provide a post office and thereby postal services , withineasy reach, as far as possible, to all citizens in the country.

The postal department in India is organized as a government department.This means that:

A Minister is in charge of this department and reports directly to the

Prime Minister.The accountability is of the highest order. The minister is accountable tothe general public through their elected representatives.It receives funds through the Central Governments budgetappropriations and all the revenue that it generates goes to the centraltreasury.

6


7/75

All these features of the Department of Post, its operations and its sheer sizeand geographical reach interested us and we chose to study it.

INDEX:

SR.NO PARTICULARS

PREFACE

INTRODUCTION

1. Objective of study2. Research methodology3. About India post

3.1 Vision of postal department3.2 Mission of postal department3.3. Services offered3.4 History of postal department

4. Planning function

4.1 Government department of postal activity4.2 Types of plans

4.2.1 Mission & vision4.2.2 Objectives4.2.3 Policies4.2.4 Strategies4.2.5 Procedures

5. Organizing function

6. Staffing function

6.1 Human resource development6.2 Recruitment6.3 Training infrastructure6.4 Gender issue6.5 Physically challenged6.6 Promotion6.7 Staff welfare

7


8/75

7. Directing function7.1 Analysis of structure7.2 Motivation7.3 Communication

8. Co-ordinating function9. Reporting function10. Budgeting function

LIMITATIONSFINDINGS

SUGGESTIONSCONCLUSION

BIBLOGRAPHY

Chapter 1

OBJECTIVES OF STUDY

8


9/75

The project studies various areas of management like Planning, Organization,Marketing, Directing, Finance, Personnel and other superficially.

OBJECTIVE OF THIS PROJECT :

Primary: Our primary objective behind this project or report is:

1. To know the application of management concept in practical field. Here wehave tried to relate management concepts directly or indirectly practiced bythem.

2. To try and understand the structure and functioning of this nation-wideorganization having its presence in the smallest of villages. We would like tostudy:

i. Hierarchy in this organizations,ii. Reservation and delegation authority and responsibility,

iii. Planning and decision making,iv. Manpower requirements and how they are met,v. Coordination and communication throughout this organization.

Secondary: We have aimed

1. To know how the organization functions and how liaison is maintainedinternally as well as externally,

2. To understand how this network is effective,3. To understand how records are maintained,4. To know the range of facilities and services offered by them,5. To study the strategies devised by them to remain competitive

Chapter 2

RESEARCH METHODOLOGY

9


10/75

2.1 Research Design

Ours is a descriptive study and we have tried to achieve our objectives by gatheringthe following information about the department of posts:

1) Planning

2) Organizing

3) Staffing Postal

4) Directing Department

5) Co-ordinating

6) Reporting

7) Budgeting.

2.2 Data Sources

2.2.1 Primary sources of data :

We have gathered data by personally interacting with:

1) Post masters of post-offices at khanpur post office, Manekbaug post office, Navarngpura post office, Memnagar post office, Maninagar post office, Anandnagar post office.

2) Employees of GPO Navrangpura.

2.2.2 Secondary source of data:

1) Magazines and news papers, other related and publishedmatter.

2) Websites of government agencies.

Chapter 3

About India Post

10


11/75

3.1 VISION OF THE DEPARTMENT

India Post a socially

committed, Technology driven, professionally managed &

forward looking organization

3.2 MISSION STATEMENT OF INDIA POST

T o provide high quality mail, parcel and related services inIndia and throughout the world; to be recognized as an efficient and excellentorganization exceeding the expectations of the customers, employees and thesociety; to perform the task by:

Total dedication to understanding and fulfilling customer's needs

Total devotion to providing efficient and reliable services, which Customersconsider to be value for money.

Total commitment to providing challenging and rewarding career for everyemployee.

Total recognition of the responsibilities as a part of the social, industrial andcommercial life of the country

Total enthusiasm to be forward looking and innovative in all areas.

3.3 Services offered:

India post makes social, commercial and industrial life possible inmodern India. A post office is a facility authorized by a postal system for the

11
http://en.wikipedia.org/wiki/Postal_systemhttp://en.wikipedia.org/wiki/Postal_system


12/75

posting, receipt, sorting, handling, transmission or delivery of mail . Postoffices offer mail-related services such as post office boxes , postage and

packaging supplies. In addition, some post offices offer non-postal servicessuch as passport applications and other government forms, money orders ,

banking and saving schemes.

They also offer a number of post office savings schemes like National SavingsCertificate, MIS (Monthly Income Scheme), IVP(Indira Vikas Patra), KVP(Kisan Vikas Patra), Recurring and term deposits.

Kisan Vikas PatraKisan Vikas Patra (KVP) is a saving instrument that provides interest income similar to bonds. Amount invested in Kisan Vikas Patra doubles on maturity after 8 years &7 months.

Monthly Income AccountPost Office Monthly Income Account is meant for those investors who want toinvest a lump sum and earn interest on monthly basis for their livelihood.

National Savings Certificate National Savings Certificate, popularly known as NSC, is a time-tested tax savinginstrument that combines adequate returns with high safety.

Public Provident FundPublic Provident Fund, popularly known as PPF, is a savings cum tax savinginstrument. It also serves as a retirement planning tool for many of those who do nothave any structured pension plan covering them.

Recurring Deposit AccountRecurring deposit account is a systematic way of saving money. The scheme ismeant for those investors who want to deposit a fixed amount regularly on monthly

Post Office Saving AccountPost office saving account is similar to a savings account in a bank. It is a safeinstrument to park those funds, which you might need to liquidate fully or partiallyat very short notice.

12
http://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Post_office_boxhttp://en.wikipedia.org/wiki/Passporthttp://en.wikipedia.org/wiki/Money_orderhttp://www.iloveindia.com/finance/post-office/kisan-vikas-patra.htmlhttp://www.iloveindia.com/finance/post-office/monthly-income-account.htmlhttp://www.iloveindia.com/finance/post-office/national-savings-certificate.htmlhttp://www.iloveindia.com/finance/post-office/public-provident-fund.htmlhttp://www.iloveindia.com/finance/post-office/recurring-deposit-accounts.htmlhttp://www.iloveindia.com/finance/post-office/saving-accounts.htmlhttp://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Post_office_boxhttp://en.wikipedia.org/wiki/Passporthttp://en.wikipedia.org/wiki/Money_orderhttp://www.iloveindia.com/finance/post-office/kisan-vikas-patra.htmlhttp://www.iloveindia.com/finance/post-office/monthly-income-account.htmlhttp://www.iloveindia.com/finance/post-office/national-savings-certificate.htmlhttp://www.iloveindia.com/finance/post-office/public-provident-fund.htmlhttp://www.iloveindia.com/finance/post-office/recurring-deposit-accounts.htmlhttp://www.iloveindia.com/finance/post-office/saving-accounts.html


13/75

Time Deposit AccountPost office time deposit account is just like the bank fixed deposit account. Thesetime deposits are meant for those investors who want to deposit a lump sum for afixed period.

Indian postal service provide many facilities like - general or registeredmail, parcel post, speed post, express post, e post and special courier service knownas EMS-speed post.

Speed Post : Speed Post service was introduced on 1 August 1986. Under thisservice, letters, documents and parcels are delivered within a given time framefailing which full refund of postage is given to the customer. The Speed Post

Network comprises 163 National and 953 State Speed Post Centres. This service is

also available internationally to 97 countries.

Business Post : The Department launched Business Post with effect from 1 January1997 in order to meet specific needs of bulk customers for pre-mailing activities.Accordingly, it provides value addition to all traditional services offered by the Postin the form of collection, insertion, addressing, sealing, franking, etc. Recently,

printing of bills, financial statements, mailers, etc., have also been included amongthe pre-mailing services extended to customers under Business Post.

Bill Mail services : Bill Mail Service was introduced from 15 September 2003 to provide a cost-effective solution for mailing of periodic communication in the natureof financial statement, bills, monthly account bills or other items of similar nature,which may be posted by service providers to their customers.

Express Parcel Post : The Express Parcel Post seeks to provide a reliable and time bound parcel service through surface transport. It provides door-to-door delivery andVPP service upto Rs 50,000 to cater to corporate users and business establishmentson contractual basis. Express Parcel Post can be booked in 163 stations in thecountry, where National Speed Post Centres exist.

Logistics Post : The Gazette Notification to introduce Logistic Post as a new servicewas issued on 10 August 2004 and the service has already started in many postalcircles. Logistics Post is designed to carry consignments from point to point withoutany maximum limit. Value added services like pick-up, delivery, track and trace arealso being provided in Logistic Post.

13
http://www.iloveindia.com/finance/post-office/time-deposit-account.htmlhttp://www.iloveindia.com/finance/post-office/time-deposit-account.html


14/75


15/75

Ibn Battuta describes the Indian postal system in the 14th century asfollows: In India the postal system is of two kinds. The horsepost, called uluq , isrun by royal horses stationed at a distance of every four miles. The foot-post hasthree stations per mile; it is called dawa , that is one-third of a mile ... Now, at everythird of a mile there is a well populated village, outside which are three pavilions inwhich sit men with girded loins ready to start. Each of them carries a rod, two cubitsin length, with copper bells at the top. When the courier starts from the city he holdsthe letter in one hand and the rod with its bells on the other; and he runs as fast as hecan. When the men in the pavilion hear the ringing of the bell they get ready. Assoon as the courier reaches them, one of them takes the letter from his hand and runsat top speed shaking the rod all the while until he reaches the next dawa . And thesame process continues till the letter reaches its destination. This foot-post is quicker than the horse-post; and often it is used to transport the fruits of Khurasan which aremuch desired in India."

The British East India Company established post offices in Mumbai ,Chennai and Kolkata from 1764-1766, each serving the Bombay, Madras andCalcutta presidencies. During Warren Hastings ' governorship, postal service wasmade available to the general public. A letter would cost 2 annas (one-eighth of aRupee ) for distances up to 100 miles (160 km). Payments would be done throughcopper tokens; a letter was hand stamped "post paid" if paid for, otherwise it wasstamped "post unpaid" or "bearing".

The usage of the stamps began on 1 July 1852 in Scinde /Sindh district, withthe use of an embossed pattern on paper or wax. The shape was circular, with"SCINDE DISTRICT DAWK" around the rim, leading to the common name"Scinde Dawk ". 1854 was the year of the first issue for all of India. The stamps wereissued by the British East India Company , which first printed a 1/2a vermilion inApril but never sold it to the public, then put four values (1/2a, 1a, 2a, 4a) on sale inOctober. All were designed and printed in Calcutta , featuring the usual profile of Queen Victoria .

A new set of stamps, with the queen in an oval vignette inside a

rectangular frame, and inscribed "EAST INDIA POSTAGE", was printed by De LaRue in England (who produced all the subsequent issues of British India) and madeavailable in 1855. These continued in use until after the British government took over administration of India in 1858, and from 1865 were printed on paper watermarked with an elephant head.

15
http://en.wikipedia.org/wiki/Ibn_Battutahttp://en.wikipedia.org/wiki/Greater_Khorasanhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Warren_Hastingshttp://en.wikipedia.org/wiki/Rupeehttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/July_1http://en.wikipedia.org/wiki/1852http://en.wikipedia.org/wiki/Scindehttp://en.wikipedia.org/wiki/Sindhhttp://en.wikipedia.org/wiki/Scinde_Dawkhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Vermilionhttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Victoria_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/Vignette_(philately)http://en.wikipedia.org/wiki/De_La_Ruehttp://en.wikipedia.org/wiki/De_La_Ruehttp://en.wikipedia.org/wiki/Watermarkhttp://en.wikipedia.org/wiki/Elephanthttp://en.wikipedia.org/wiki/Ibn_Battutahttp://en.wikipedia.org/wiki/Greater_Khorasanhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Warren_Hastingshttp://en.wikipedia.org/wiki/Rupeehttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/July_1http://en.wikipedia.org/wiki/1852http://en.wikipedia.org/wiki/Scindehttp://en.wikipedia.org/wiki/Sindhhttp://en.wikipedia.org/wiki/Scinde_Dawkhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Vermilionhttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Victoria_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/Vignette_(philately)http://en.wikipedia.org/wiki/De_La_Ruehttp://en.wikipedia.org/wiki/De_La_Ruehttp://en.wikipedia.org/wiki/Watermarkhttp://en.wikipedia.org/wiki/Elephant


16/75

Postal department today

After independence, the Indian government broadened the vision of the postal system to reach the entire population of the country. Today Indian postalsystem has a reach that ranges from arid deserts of Rajasthan and Kutch to the icyheights of Laddakh. India has the highest post office in the world in Sikkim at aheight of 15,500 feet (postal code - 172114) .

The modern postal service in India is more than 150 years old. In 1854, thePost Office in the Province of Sindh, (then in British India), made postal history,when India became the first country to issue postage stamps. In October 1854, all the

post offices of Indian sub continent came under centralized control. In the same year

Railway Mail Service was established and India had a network of 701 post officesacross the continent. In 1911, India achieved another "first" when a biplane fromAllahabad to Naini flew with 6500 pieces of mail. The flight was the first officialAir Mail in the world.

It is the recognisation of this stellar service in the changed world that has prompted the reimbursements of the Indian Post Logo.

16


17/75

Governance and organization

Raja & Jyotiraditya Madhavrao Scindia , launching the new logo for India Poston 23 Sept 2008, at New Delhi.

17
http://en.wikipedia.org/wiki/File:Ministers_launching_the_new_India_Post_logo.jpg


18/75

The first insight that was brought on board was the evolution of designwhich has become increasingly organic. This is the departure from straight lines,which the current logo is dominated by. There is an element of modernity that thereimbursement aims at. At the same time, there was a conscious effort to maintain anelement of continuity. The wings is the anchoring element that have beenretained. The construct of the logo is inspired by the fact that India Post carriesemotion across physical distance.

At first glance, it is an envelope and at next glance it is a bird in flight,unhindered & unrestricted. The following bold strokes convey free flight. Thechoices of colours of Post Office are Red & Yellow. Red has been chosen for itstraditional association with the postal service. It embodies Passion, Power &Commitment. Yellow communicates Hope, Joy & Happiness. Evidence of the

combination of two colors is found across the country.

Today, India possesses the largest postal network in the world with155,000 post offices spread all over the country as on March 31, 2001, of which 89

per cent are in the rural sector. Post offices in India play a vital role in the ruralareas. They connect these rural areas with the rest of the country and also provide

banking facilities in the absence of banks in the rural areas.

3.5STRUCTURE OF POSTAL DEPARTMENT

18


19/75

(Diagram 1: structure of postal department)

Source: annual report 2008-09The Department of Posts comes under the Ministry of Communications

and Information Technology, Government of India, functions under the Minister

19


20/75

for Communications and Information Technology, and has a Minister of State for Communications to assist the Minister of Communicationsand Information Technology in the discharge of various functions. The Secretary,Department of Posts, as the Chief Executive of the Department, isalso the Director General, India Post, and the Chairman of the Postal ServicesBoard.

Shri. A.Raja is the Minister of Communications and InformationTechnology

And

Dr. Shakeel Ahmed is the Minister of State for Communications and InformationTechnology.

Shri. I.M.G. Khan is the Secretary (Posts) to Govt. Of India as well as Director General, Department of Posts and the Chairman of the Postal Services Board.

The Postal Services Board, the apex management body of theDepartment, comprises the Chairman and three Members. The Members of theBoard hold portfolios of Operations, Development and Personnel. The JointSecretary and Financial Advisor to the Department is a permanentinvitee to the Board. The Board is assisted by a senior staff officer of theDirectorate as Secretary to the Board. Presently, Deputy Director General (FS) isassisting the Board in this capacity. Deputy Directors General, Directors and

Assistant Directors General provide necessary support for the Board atHeadquarters. The Postal Services Directorate is the Headquartersorganization located at Dak Bhawan, New Delhi, to oversee the operations in the

provision of postal services throughout the country.

The Postal Services Board comprises the following at present:

20


21/75


22/75

An efficient and reliable communication network is the lifeline of the nationand plays a crucial role in socio-economic development and the integration of thecountry. For nearly a century and half the Postal System has been the maincomponent of the communication infrastructure for the country.

The Indian economy has moved on to a high economic growth trajectoryinvolving an average annual growth rate of about 6% over the last 16 years withfurther acceleration in recent years. Over the years, India Post required a new policyframework because of the emergence of several significant trends such as:liberalisation and globalization, demographic shift towards urbanisation leading toincreasing internal and external migration requiring to be serviced, monetisation of

the economy giving rise to a corresponding demand for financial services by allsections of the population, and government policy to increase funding for weaker section programs. Given the need for a strong communication and financialinfrastructure, government is involved in Postal activities to meet both challengesand avail of the opportunities presented by current market conditions.

4.1 Government policy for postal activity:

Government policy for postal activity has a two-pronged approach.

1. Develop services that assist, facilitate, enhance and quicken the process of development aimed at inclusive growth.

2. Re-position India Post to become a self-sufficient, credible, efficient, quick and costeffective provider of these services.

India Post is an essential part of the governance of the country. It has performed sovereign functions since its inception and is instrumental in unifying thecountry and ensuring connectivity between far-flung regions and between dispersedcitizens, both within and outside the country.

Chairman Postal Service Board

22


23/75

Members Member Member Member Member Member sonnel) (Operational) (Technology) (Postal life (HRD) (Planning)

Insurance)[Collectively responsible for policy making and monitoring]

(Diagram 2: Postal Service Board)

The Postal service board consists of a chairman and three members.The three members hold the portfolios of Operations & Marketing , Infrastructure& Financial Services , and Personnel . The Joint Secretary and Financial Advisor tothe Board is also a permanent invitee to the Board.

India has been divided into 22 postal circles. Each circle is headed by a Chief Postmaster General. Each Circle is further divided into Regions comprising fieldunits, called Divisions, headed by a Postmaster General. Other functional units likeCircle Stamp Depots, Postal Stores Depots and Mail Motor Service may exist in theCircles and Regions.

4.2 Types of plans:

23


24/75

The planning of the postal department is done in pyramid form in which 5types of plans can be seen. These are:

1. Mission and Vision2. Objectives3. Polices4. Statergies5. Procedures

Mission & vision

Objectives

Policies

Strategies

Procedures

( Diagram 3: Types of plans)

4.2.1 Mission and Vision:

24


25/75

Vision: India Post a socially committed, Technology driven, professionally managed & forward looking organization.

While there Mission is to provide high quality mail, parcel and related

services in India and throughout the world; to be recognized as an efficientand excellent organization exceeding the expectations of the customers,employees and the society.

4.2.2 Objectives:

Department of Posts is committed to providing universal access to basic postal services in the country at affordable prices. Its objectives are to:-

Ensure availability of basic postal services in all parts of the country,

including tribal, hilly and remote areas. Provide efficient reliable and economic service. Provide value added services according to market requirements. Modernize the services to handle the growing volume of work with efficiency

and thereby enhance customer and employee satisfaction. Be a forward looking organization To : (i) seek out aggressively MOU with State / Central Governments for

delivery of all social security schemes through post office by the year 2010-11; (ii) Computerize and network all post offices by the year 2011-12 so that

information regarding delivery of social security schemes can flow on realtime basis.

To increase the growth in traffic of mail volumes from the existing decliningand near stagnating state by 50 crores in the year 2009-10 and thereafter increase of 100 crores in each of the subsequent years 2010-11, 2011-12,2012-13, 2013-14.

To increase the growth in traffic of registered articles from the existing near

stagnating state (20 crores) by 10% so as to increase the traffic by 50% in fiveyears time.

To maintain the growth in traffic of Speed Post articles at the existing 15% to20% and continue to be a market leader in express segment.

25


26/75

To have a focused approach on parcel products including e-commerce andlogistics by devising customized products including the facilities of trackingthe movement of these products.

To have a focused approach on the global business comprising of international mails, parcels and financial remittances.

To increase the growth in traffic of financial remittance from the existing near stagnating trend so as to more than double the revenue from financialremittance in five years time.

To increase the number of savings accounts of all types by 1 1.5 croresadditional accounts in each year so as to increase the number of accounts from

the existing 17.3 crores to 22 crores. To increase the revenue on account of Cash Certificates from the existing

Rs.430 crores by Rs.50 crores in each of the subsequent 4years

To increase the revenue on account of mutual funds by Rs.50 crores in 2009-10 x) To increase the revenue on account of postal life insurance and rural

postal life insurance xi) To increase the revenue on account of RetailPost/Business

Generate more resources and improve financial performance. To provide basic postal facilities, i.e., collection and delivery of mails, within

easy reach (1.5 kms) of all people and businesses. This is to be achievedthrough opening of more post offices, relocation of existing post offices,giving out

Franchisees to individuals, shops, institutions, self-help groups etc.

26


27/75

4.2.3 Policies:

The policy decisions in postal department were taken in the form of five year plans.Some of those policies are:-

The first Seven Five Year Plans, construction of buildings has been the singlemost important activity of the Department of Posts. During the Eighth Plan, thisactivity was accorded a lower priority with mechanization and modernization of

postal services being the first charge. However, keeping in line with the past trend,the building activity continued to be the dominant activity of the Department at theimplementation level.

An efficient postal communication system is crucial for growth andmodernization. Modernization of the postal services by introducing the latesttechnology and expansion of the postal network in the uncovered areas, especially inthe rural areas, were the two thrust areas of the Eighth Five Year Plan.

The Ninth Plan aimed at making the postal services self-financing at the sectorallevel. To achieve this objective, necessary policy measures had been initiated torecover the operational cost and gradually eliminate the subsidy provided on variousservices in a time-bound manner. However, cross subsidisation amongst servicescontinued so as to ensure the provision of the most essential services to the people,especially the poor, at affordable prices. Due autonomy had been given to the PostalBoard to take appropriate decisions in this regard.

Modernisation and computerisation of foreign mail operations were taken up inthe 10th Five Year Plan for improving the quality of service in this area. Takingfurther steps to improve the quality, the Department of Posts had introduced 13-digit

bar code labels for all international accountable articles from September 3, 2003.The application of barcodes on postal articles and the effective use of electronic

track and trace systems enables both customers and the postal administrations tocheck whether the articles are in transmission or these have been delivered much better than is possible through the manual system of tracing such articles.

In a bid to cut down losses and achieve a higher degree of competitiveness,the Department of Post had put together an ambitious action plan to connect most of

27


28/75

its major post offices across the country. The Department was planning to invest Rs6,000 crore for the technology upgradation across its postal network.

India Post strongly needs to enhance its technology to compete with the private players, Department of Post secretary I.M.G Khan said, adding that Wehave put forward our proposal to the Planning Commission for consideration in the11th Five-Year Plan.

The DoP has an investment plan of Rs 12,000 crore during the 11th Five-Year Plan (2007-12). Khan said his department would invest 50 per cent (Rs 6,000crore) of its proposed expenditure of the 11th Five-Year Plan in computerising andconnecting its 1.5 lakh post offices across the country.

We are setting up a National Data Center in Delhi, which will be ready by

May and would connect about 1,300 major post offices in India while the rest would be connected through other technology, Khan added.

He said there are various possibilities of leveraging our huge network for other business models such as retail, banking and insurance. The Department of Postis already in talks with some general insurance companies for fee-based distributionof non-life products in the rural market.

The Department is also planning to outsource Enterprise Resource Planning(ERP) Systems that will integrate about 8,000 computerised post offices all across

the country, Khan said, adding that the tenders for these solutions would beannounced shortly.

DoP earned a revenue of Rs 5,000 crore with expenditure at Rs 6,200 cr ore in 2005-06. Over the last three years, our revenue has grown by 13.5 per centwhereas expenditure grew at 7.22 per cent. With this trend, we expect to close thegap between revenue and expenditure in next 2-3 years and break even, Khan said.

The government plans to amend the Indian Postal Act to bring courier companies under the ambit of this Act, a move that may hit hard the private players

but could prove to be a shot in the arm for the Indian Postal Department.

If approved, this would bar the private courier service providers fromcarrying packets weighing below 150 grams and could give a major blow to thecourier companies which earn a major share of their revenues from letter and

packets weighing below half a kilogram.

28


29/75

The government is also planning to bring in a regulator called the MailRegulatory and Development Authority to monitor this sector better. Every service

provider, other than the Department of Posts (DoP), has to be registered.

4.2.4 Strategies

Strategy is an interpretative policy. It is a policy formulated by the topmanagement for the purpose for interpreting and shaping the meaning of other

policies.

To effectively face the challenges of competition India Post also needs to beable to respond to market forces quickly and efficiently both in pricing and productdecisions. In order to meet the challenges of the policies of the competitors ,a specialkind of plan is to be formulated called the strategy.

India Post will require a certain degree of financial autonomy andcommercial flexibility while remaining accountable to its customers and toParliament , which is done through timely formulating strategies.

India Post is committed to meeting the challenges of the economy and theneed to ensure connectivity, communication and financial services to every citizen

by flexibility in strategies formulation. It also emphasizes the need to expand andstrengthen its coverage of rural areas where 60% of the people reside and maintaintheir livelihoods.

Following is the example of their strategy:

E.g

Post Office Savings Bank - The safest investment

" Save today-Smile tomorrow "

"Pay Day is your Savings Day "

29


30/75

4.2.5 Procedure:

In Indian postal planning which is taken by higher authorities is categorizedinto two parts:

1) Plan

2) Non Plan

Plan

In the Plan procedure the planning regarding the creation of capitalresources is done , which is futher divided into various sub-parts such as

Expansion of infrastructure : At the time of Independence there were 23,344 postoffices throughout the country. Of these 19,184 post offices were in the rural areasand 4,160 in the urban areas. The country has 1.55 lakhs post offices, of which,1,39,074 are in rural areas and 16,259 in urban areas. As a result of this seven-foldgrowth in the postal network, today India has the largest postal network in the world.

Technology induction: India Posts aims to provide enhanced customer andemployee satisfaction along with increasing its revenue through induction of IT. TheDepartment of Posts aims to leverage information technology to attain a position of leadership and excellence in delivery of postal services, transforming theDepartment to a modern communications and financial services agency. The keyinitiatives undertaken during the year 2006-07 are as under:

Computerisation and Networking of Post Offices : By the end of March2007, the Department of Posts supplied computer and its peripherals likescanner weighing scales, modems, etc. along with requisite power equipmentlike Gensets, UPS, etc. to all Head Post Offices and a large number of sub

post offices. A total of 8263 post offices have been computerised by March2007. The NIC is also implementing a WAN connecting all the Head Post

30


31/75

Offices, Administrative Offices, Major Speed Post Centres and AccountsOffices. National Data Centre has also been set up at New Delhi and this DataCentre is being connected to the WAN. On being operational, the WAN willensure a quantum jump in the quality of services being provided by the Posts

Offices.

Modernisation of Operative Offices : Under the 10th Five Year Plan, toimprove the ergonomics and ambience, 822 Post Offices were taken up for modernisation. This has resulted in better quality of counters, better furniturefor customers and staff, proper illumination and uniform for both sign ages.The Department plans to take a quantum leap in its efforts to provide anelectronic network of all Post Offices in the 11th Five Year Plan. It also plansto develop a single integrated software to link the data being received from allthe Post Offices into a single repository, thereby empowering the customersand the managers.

Non Plan

Non Plan is the other major planning process that is being carried out in the postaldepartment in which various business development matters such as how to increaseincome by doing something that goes beyond your traditional task etc. are taken. Asa part of modernisation programme, computerisation of the HRO for proper maintenance of records relating to mail operations, their prompt retrieval andefficient office management has been undertaken.

A Business Development Directorate was set up in 1996 with the objective of marketing and promoting premium services for meeting the needs of specificcustomer segments. It was reorganised into Business Development and MarketingDirectorate w.e.f 1 April 2005, to provide a sharper focus on marketing of the whole

continuum of postal products. A separate Parcel and Logistics Division has beencreated in the Business Development and Marketing Directorate w.e.f 1 April 2005to focus attention on parcel products. Some of the premium services offered by theDepartment are given below:

31


32/75

Speed Post : Speed Post service was introduced on 1 August 1986. Under thisservice, letters, documents and parcels are delivered within a given time framefailing which full refund of postage is given to the customer.

Business Post : The Department launched Business Post with effect from 1January 1997 in order to meet specific needs of bulk customers for pre-mailing activities. Accordingly, it provides value addition to all traditionalservices offered by the Post in the form of collection, insertion, addressing,sealing, franking, etc. Recently, printing of bills, financial statements, mailers,etc., have also been included among the pre-mailing services extended tocustomers under Business Post.

Besides providing postal communication facilities, the post office network has also

provided facilities for remittance of funds, banking and insurance services from thelatter half of the 19th century.

32


33/75

Chapter :5ORGANISING FUNCTION

33


34/75


35/75

Chairman of the Postal Services Board. The Board has three members, one eachincharge of Operations, Development and Personnel.

The Board is assisted by a senior staff officer of the Directorate as Secretaryto the Board. Deputy Directors General, Directors and Assistant DirectorsGeneral provide the necessary functional support for the Board at theHeadquarters.

Below the Board at the apex there are twenty-two circles, each headed by aChief Postmaster General Each Circle normally corresponds to a State except for afew exceptions*. Each circle is further divided into regions, each region beingheaded by a Postmaster General. Each region has a number of divisions headed by aSenior Superintendent or Superintendent.

The Regions are further divided into field units called Divisions (Postal/ RMS Divisions). Divisions are headed by Senior / Superintendent of Post Officesor Mail Offices. The post offices and the Mail Business Centres are under theDivisional Superintendents of Posts or Railway Mail Offices respectively. AssistantSuperintendent of Post Offices or Inspector of Post Offices, Complaints Inspector,Manager Mail Business Centre, Manager Customer Care Centre are under therespective Divisional Heads.

Expansion of the postal network especially in the rural areas has to a greatextent been brought about by opening part time Extra Departmental Post Offices, asystem unique to the Department of Posts known as the divisions. Under this system,local residents are employed, subject to fulfillment of certain criteria, to man the

post office for a period not exceeding five hours and to deliver and convey mails on payment of a certain allowance.

The postal network consists of four categories of post offices, viz, Head PostOffices, Sub-Post Offices, Extra Departmental Sub-Post Offices and ExtraDepartmental Branch Post Offices. All categories of Post Offices retail similar postalservices, while delivery function is restricted to specified offices. In terms of

management control, accounts are consolidated progressively from Branch PostOffices to Sub-Post Offices and finally in Head Post Offices.

Chapter :6

STAFFING FUNCTION

35


36/75

The department cherishes its own staff as the most significant resource.Hence, any step towards repositioning the department has to be first and foremost atthe level of Human Resource. As such, an outlay of Rs. 1249.2 million approx. has

been earmarked in the Eleventh Five Year Plan for providing category-wise trainingto all categories of staff.

The basis of any policy of sustainability and growth, especially of labour intensive activities, is the productivity, capacity and morale of its personnel. Agreater focus on human resource development will be given with the objective of enhancing and transforming the human resource of India Post into a customer-friendly, techno-savvy and efficient workforce led by managers attuned to their tasks

and aware of the competitive and accountable environment. Efforts will also bemade to increase productivity of human resources through direct recruitment of technically qualified persons, training of incumbents and various incentive schemes.

This function includes recruitment, human resource development, traininginfra-structure, training programme, physical challenge, gender issue, employeeswelfare like medical, insurance, sports and other benefits, staff relation, employee-employer relation & training programme etc..the allotment of work would be

proper and beneficial.

36


37/75

( Chart 1: Number of employees of postal department and their categories)

37


38/75

6.1 Recruitment : -

Recruitment is process of searching for & obtaining applicants for job, from among whom the right person can be selected . Recruitment refers tothe process of receipt of applications from job-seekers.

METHODS OF RECRUITMENT:-

Open recruitment:- The most common and least expensiveapproach for candidates is direct applications, in which job-seekerssubmit unsolicited application letters or resumes. Direct applications

can also provide a pool of potential employees to meet future needs.employees also prefer , open recruitment as they are free from thehassles associated with other methods of recruitment.

Recruitment in the postal department takes place according to the need of the post in the postal department. For this purpose, the cadres are selected from therecruitment process. Due vacancies in all cadres for all units are calculated everyyear. After that they are sent to the screening committee and ministry of finance.Only a fraction of total vacancies are cleaned for filling-up through directrecruitment. And the rest to filled up through promotion from lower cadre.

In the postal department, Process is done through direct recruitment.The eligibility criteria is that persons age should be 25(+5 year for sc/st/obc) 10+2

pass. At first, a recruitment advertisement appears in newspapers. Then receipts areissued against recruiting amount (for; general category Rs. 100,sc/st/obcRs.50,Physical handicap Nil) + IPOs recruiting amount for forms which sold from

post office counter. For Divisional cadre, Recruitment is done by HIGHER levelunits.in all this they follow the reservation policy of the central government.

38


39/75

6.2 Human resource development

As a Service Organization for the Department of Posts, it is necessary thatthe workforce is well informed and responsive to customer needs. In the presentenvironment computer literacy is essential in order to modernize operations. Thusthere is a need to have focused and well planned training and development programsfor staff and managers. Keeping in view the need to ensure quality of services, theDepartment needs a comprehensive training program on operations, customer services, business orientation, financial management, Computerization andaccounting. The EFC for the XI five-year plan on Human Resources Development tothe tune of Rs.1249.2 million has been approved by the Ministry of Finance.

6.3 Training infra-structure:

The Department has training centre/colleges to take care of the training needsof the Department

Postal Staff College of India at Ghaziabad(PSCI)

Postal Training Centers (PTCs) at Saharanpur,

Mysore, Vadodara, Darbhanga, Madurai and Guwahati.

58 Workplace Computer Training Center (WCTCs) at the Headquarter of Circles/Regions.

Postal Staff College of India, Ghaziabad is the apex training institution for meeting the training needs of the managerial cadres of the Department. The primaryobjective of the College is to impart induction as well as in-services training to theOfficers of the Indian Postal Services and Postal Services Group B. Development

programs for Junior and middle management level for officers of Indian PostalServices and Indian Postal & Telecom Finance and Account Services are alsoconducts programmers for international participants of other Postal Administrations.From time to time Postal Staff College of India also conducts workshops for issues

such as implementation of new initiatives, improvements in quality of services etc.

The six Postal training Centers impart induction training to Inspector (Posts)and Postal and Sorting Assistants. These centers also impart refresher training toSupervisors, Inspector (Posts), Asst. Superintendent (Posts), Postmasters etc., ontechnology, supervisory and customer care related issues.

39


40/75

The Workplace computer Training Centers impart training at local level for implementing department al software. At present more than 9,000 Post Offices have

been computerized. Continuous training programs are required so that all the staff can use the Department software. Training to the operative staff is imparted atWCTCs.

It is proposed to set up Zonal Training Centers at five Postal Accountsoffices located at Lucknow, Nagpur, Chennai, Kolkatta and Delhi. These trainingcenters will impart technology and department al training to the staff of PostalAccounts Offices and Accounts staff in field units. Besides one local training center id proposed to be set up the lines of Workplace Computer Training Canters.

Since the number of computerized post offices is increasing and as all theDepartment Post Offices and Extra Departmental Branch Offices will becomputerized during XI Five Year Plan period, it is proposed to set up local trainingcenter in each Division. Such centres will impart basic and short duration training tothe staff in these centres. By this activity, the distance traversed by the officials toattend training Workbased Computer Training Centre located at RegionalHeadquarters can be reduced and frequent training can be organized.

Training Programme

Induction training, refresher level programs at various levels wereconducted by Postal Staff College of India and Postal Training Centres. In additionto the programs for the officers and staff involved in Project Arrow was alsocompleted. Some of the new initiatives included Train the Trainers for ProjectArrow, introduction to accrual based accounting, focused program for postmasters.

Officers are also sent to training courses abroad to Asian-Pacific PostalCollege, Bangkok in Thailand and to Training Institutes of repute in India likeAdministrative Staff College India, Hyderabad. National Law School University

Banglore. National Institute of Bank management, Pune etc.

The postal circles have organized a number of programs at local level for the supervisory, operational staff, postman and Gramin Dak Sewak. These programsinclude sensilization and training on new products and services,computerization, softskills and marketing. Local training programmes of short term duration on selectedPostal Operations are organized by Circles at nodal points like Divisional / Sub

40


41/75

Divisional level for Postman, Gramin Dak Sewak Branch Postmasters and MailDeliverers.

Recognizing the need for training and development of the workforce, aseparate Training Division has been established. A comprehensive plan for humanresource development for 11 th five year plan has been prepared. Capacity buildingfor imparting training is an important activity as large number of staff is required to

be trained frequently. Training for gramin Dak Sewaks for computerization and business orientation is an important segment of the plan proposal. Online training,self learning tutorials and development of facilitators from the postal employeesand GDS are also proposed.(a) Postal staff college organized Middle level management development

programmed for 40 officers which included a one week program with the RoyalMail,UK.

(b)30 Officers were imparted training on Core banking Solutions at NationalInstittues of bank Management at pune.(c)some of the new developments in training include Training to Asst.Superintendents to work as an Area Manager for strengthening of Rural Postalnetwork was organized at Bhubaneswar through Xavier Institute of Management,Bhubaneswar.These initiatives will be continued.

6.4 Promotion

In government units Promotion of employees is given on seniority bases provided yearly Confidential Reports( CR) are not adverse, And there should not beany inquiry against the employee for not implementing the satisfactory work as per norms lead by the government. Confidential reports (CR) of the employees arewritten by higher level officer of that department, while in private sector units the

promotion of employees is given on the performance bases and efficiency of employees .

In view of the above description government sector employees are not workingefficiently as compared to private sector units which is the main drawback of

government sector units.

41


42/75


43/75

EDUCCATIONAL ASSISTANCE TO THE CHILDREN OF POSTALEMPLOYEES FROM THE POSTAL WELFARE FUND. Out of theavailable fund under scholarships and other educational scheme 3% fundsare earmarked for scholarship of handicapped children of Postal employees

apart from the grant of scholarship which is available for the normalstudents.

(II) Orthopedically handicapped employees are for the following financialassistance from the welfare Fund:

a) A handicapped employee is entitled to get full reimbursement of amount spent on purchase of Mechanized tri-cycle (maximum uptoRs.2000/-)

b) A handicapped employee can claim an amount of Rs.15,000% or 50%of the cost of a Motorized tri-cycle whichever is less from the Circlewelfare Fund as financial assistance. If the same employee applies for the grant of scooter advance, his or her case is consideredsympathetically on priority basis,

c) An orthopedically handicapped employee can get full reimbursement of cost of Wheel chair under the Central Services (Medical Attendance)Rules.

(III) Transport Charges and Hostel/Mess Subsidies (in lieu of TransportCharges) is allowed to handicapped /mentally retarded/blin/deaf and dumbchildren ofPostal employees studying from 1 st to 12 th standard @ Rs. 40

p.m. in B class cities respecyively.

(IV) Blind literate Packets weighing up to 5 Kg is transmitted by the

(V) Department of Posts.

6.7 Staff welfare

43


44/75

The objective of postal services staff welfare is to promote, develop andorganize welfare, sports and cultural activities for the employees of the department.The board receives grant-in-aid for these purposes from the consolidated found of India. Voluntary contribution from the state are also arranged by the field formation.

The hands of the welfare board are utilized for financial assistant in cases of illness, death, natural calamities, educational scholarships, subsidy for excursiontrips grant to help handicapped staff and their children, vocational training centers,crches and sports activities, recreation clubs etc.

Sports

During the period from 1 st April 2008 to 31 st December, 2008, postal

tournaments in 8 eventsviz. atheletes and cycling,basketball,cricket,cultural,football,tabletenis,etc.conducted

by the welfare and the sports branch. All the Indian postal tournaments in 4 eventsviz. chess,badminton and hockey were conducted from 1 jan 2009 to 31 march2009.the calendar of the Indian postal tournament for the year 2009-2010 will befinalized and circulated.

Medical

As a welfare measures, the department of post is running 52 postal dispensaries in45 cities/towns in various parts of country. These dispensaries extend out door treatment facilities to the eligiable beneficiaries. Employers as well as pensioners of department ofpost office department of telecom are entitled to postal dispensariesfacilities, wherever such facilities are available. As on 31.03.2008there were about52,018 cardholders covering approximately 1,91,160 beneficiaries, which includesdependant family member of the employees as well as pensioners . servingemployeesare being provided these facilities free of cost/contribution in lieu of CS(MA)rules but a nominal contribution of rupees nine per month is being charged

by pensioners. These dispensaries also help in implementation of family welfare

programmes of the government of india. During the year 2007-08, an expenditure of about Rs. 262 million was incurred on these dispensaries. In other places where

postal dispensaries are not available, the employees of the department can availcomprehensive health care facilities form CGHS dispensaries whenever available or from the authorized medical attendant.

44


45/75

(DIAGRAM 5: no of gazette & non-gazette staff)

45


46/75

Employees of the postal department is divided into two groups. One isgazetted staff and non-gazetted staff. In the gazetted staff group A is only hired in2005-06 year. But group B is showing the increased ratio till 2006-07.In non-gazettestaff the group C has small part but it shows the constant decreasing in the employeetill 2007-08. And same condition happened in group D.

CHART:2Number of employees : Scheduled castes/tribes as on 31-3-08

The same group A,B,C,D is showing the scheduled caste/tribes and also male andfemale. In that the sc/st people get less recruited than others. And the female power shows the good placement in the second chart.187804 woman are employed in 2008.

46


47/75


48/75

(DIAGRAM 6: No of ST/SC employees & no of women employees)

48


49/75

Chapter - 7

DIRECTING FUNCTION

Departmentof posts

Administrative operational(Business Development &marketing directorate) ( 1,55,669 post offices )

129669 20000 8000Branch Sub Headoffices Post offices post offices

( rural )

( Postal Divisions )

22 circles

Regions RMS division( Railway Mail Service )

Sorting

Outward Inward

( Diagram 7: Structure of directing function)

49


50/75

7.1 Analysis of the above structure

The department of posts is categorized mainly under two divisions -Administrative department performing the management work which includes

1. Planning2. Policy formation3. Implementation of Strategy & work

The Adminiration work is done by Directorate who is the Incharge-Departmental head of the whole postal system . Business Development Directoratewas set up in 1996 to design, monitor, develop and market value added premium

products of the department. The Directorate is known by three different names.

Directorate

Chairman, Director General, Secretary

Postal Services Board India Post to the Government of India

The main responsibility of the business development and marketingdirectorate is to ensure focused management of value added services and it includesthe following:-

Administration, expansion and promotion of the existing value added andtraditional mail and parcel products and services.Planning and introduction of new value added products and services. Exceptfinancial and insurance products and services.Procedures, Regularisations and guidelines for the premium services and itsnetworking.Market Study, Market testing and product improvementMarket strategies, alliances and cooperationMonitoring and review of growth of value added products and servicesExploring the scope of commercial utilizations of idle resources of thedepartment.

50


51/75

The overall control of the postal department is in the hands of thedirectorate which is known by the three important posts given to him. Thedirectorate assists the Minister of Communications and InformationTechnology in running the Postal Administration in the country and takingimportant policy decisions. He is assisted by the Members of the PostalServices Board in the discharge of this function.

The Directorate , Postal service Board assists the board & isincharge of administration at the Headquarter. Deputy Director General, Director &Assistant DIirectors General are directed by the board & they provide necessarysupport to the board in running the service.

Under the Directorate , for providing postal service the wholecountry has been divided into 22 postal Circles. The circles are generally co-terminus with a state. Besides the 22 circles, there is a special Circle called the BaseCircle to cater to the postal services of the Armed Forces of India. The Base Circle isdirected by an Additional Director General, Army Postal Service holding the rank of a Major general. Each circle is headed by a Chief Postmaster General whodirects all the branches of the postal department within the state. The Chief Postmaster General is over all in-charge of administration and operations of the unitsunder his jurisdiction for all purposes.

At the circle level, The larger circles are further divided into Regions

directed under the Postmasters General the head of this regions known as JTSecetary to government of India. The Post Master General directs the Deputy :Director Postal Service known as the Deputy Secetary to government of India.

The other division of the department of post is the operational department .The operational work is done by the divisions known as the Operating divisions,which are directed by Gr. A or Gr. B Officers. The Divisions comprise of Sub-Divisions, Head Post Offices, Sub Post Offices and Branch Post Offices, which arethe basic operational units for Postal Services. The operating divisions lead India tothe largest Postal network in the world with 1,55,669 Post Offices of which 89% arein rural areas. Post Offices in the country are categorized as 8000 Head post offices, 20000 Sub post offices and 129669 Branch Post Offices. Gramin Dak Sewa PostOffices are located in rural areas. The Sub Post Offices are departmental officeslocated in both rural and urban areas.

51


52/75

Operational department performing Postal operations at the post officeencompass the entire gamut of the basic postal services which interalia include:

(i) Sale of stamps and stationery(ii) Booking of registered articles(iii) Booking of insured articles(iv) Booking of value payable articles(v) Remittance of money through money orders and postal orders(vi) Booking of Parcels

The Divisional Superintendent is overall in-charge of Administration and Operations in the Division & is directed by the RegionalPostmaster General/Chief Postmaster General.One of the most importantdivision is the RMS ( railway mail service) division , who is responsible for

1. Running of section2. Transportation of mail through Aeroplane.3. Sorting of mails. Sorting of mails is the backoffice job of postoffice. The

process of sorting is done into two different ways Inward & Outward.

The Head offices directs to the sub post offices & sub post offices isdirects to the branch post office for each & every activity to be performedwithin the department. The cash flows from Head Office to Sub Office &

from Sub office to branch office. The postal divisions are responsible for theimplementation work of all the policies ,strategies, programmes, & day to dayroutine work directed by the Directorate .

The Divisional heads are known as the Junior Management levelexecutives. The divisional head are given the responsibility of implementingthe Routine activities ,being directed by the Senior officer of post class 1level. By the end of the work they have to report the Senior officer about theactivities.

52


53/75

7.2 Motivation

Motivation means the creation among the personnel the willingness towork & co-operate for the accomplishment of objectives. Indian postal department

being the government sector ,employees are not motivated to work as a result of which performance is not accomplished as per the decided targets.

Government is bound by certain norms for appointing employees of scheduled castes as a result of which the category of employee needed for therequired post is not gained ,which results in poor performance. Training is given tosuch employees , but as they lack education, they are unable to cope up properly.

In the private sector units, employees are motivated & according totheir performance they are promoted to the higher post, but it is not so in

government sector. In government certain time period of performing a job is decided& according to it they are been promoted. It is the main drawback of governmentsector as employees are not judged by performance, so their performance scale doesnot increase. Government employees enjoy a higher sense of job security as compareto their counter parts in the private sector. This dulls their appetite for job

performance and renders all motivational efforts useless.

In private sectors, employees are considered as assets of business , whilegovernment employees are considered as a part of whole economy . the benefitearned by the postal department are not transferred to the department for expansion

programe , but it is directly transfered to central treasury.

7.3 Communication

An efficient and reliable communication network is the lifeline of the nationand plays a crucial role in socio-economic development and the integration of thecountry. For nearly a century and half the Postal System has been the maincomponent of the communication infrastructure for the country.

The face of Indian postal department is changing, under pressure frommodern communication systems. Gone are the days when post offices were used for screening and distributing letters. Today, it is entering into every possible businesssegment, be it money exchange or logistics. With a network of 1,55,516 post officesin every nook and corner of the country, India Post is all set to conquer newfrontiers.

53


54/75


55/75

Indian postal network is the largest in the world. For many years it has been meeting the personal and business communication needs as well as door-to-door delivery, banking, insurance, transfer of money and goods. The structure of Indian postal department relates to the co-ordinating activities. The postaldepartment has its branch all over india, so co-ordinating all the divisions is verydifficult task . but as the structure explains the manner of performing activity clearlyshows the rigidity.

Today, mobile phones, email, SMS are popular means for personalcommunication. There are many operators for customers to choose from for sendingdocuments and goods in India and abroad.

Technology has also made it possible to offer modern and affordableservices to customers like instant money transfer, collection of bills, and so on. It hasalso been possible to bring these services to the rural sector through the vast postalnetwork through co-ordinating function.

The co-ordinating of activities among the department takes place in the followingway:

The overall control of the department is the secetary , Government of India, Department of post, who Assists the Minister of Communications andInformation Technology in running the Postal Administration in the country andtaking important policy decisions. He is assisted by the Members of the PostalServices Board in the discharge of this function. By the completion of theactivity ,the divisional Heads of the operational level Co-ordinate through internet,

phone, official letters, mail according to the need of communication.

The member of postal service SAG-3-5, JAG 2-5, JAG Chief GroupA provide support to secretary for formulating policies which proves that for formulating policies. They both coordinate with each other and decide for final

implication.The senior deputy general controls SAG-1, JAG-2, GPA-3 monitors the

implication of the policies and by the completion work he reports the member of the postal service.

The director deals with matters concerning policy formulation and other related matters. He coordinates with the Group A Officers Group B ,Group

55


56/75

C,Group D officers for inspection OL inspections of the subordinate offices for representing the department work in the circle level.

Co-ordination Activities done by Chief Postmaster General at circle level

Co-ordination with the State Government authorities and other CentralGovernment organizations in the Region.

Oversee the work of Dak Adalats for settlement of public grievances andPension Adalat for retired officials.

Co-ordination with informal groups, (Non-Governmental Organizations),eminent public personalities like Member of Parliament, M.L.A etc.

Inter-act with press and media about departmental activities including new products.

Co-ordination Activities by Regional Postmaster General Co-ordination with the State Government authorities and other

Central Government organizations in the Region. Oversee the work of Dak Adalats for settlement of public grievances

and Pension Adalat for retired officials. Co-ordination with informal groups, (Non-Governmental

Organizations), eminent public personalities like Member of Parliament, M.L.A etc.

Inter-act with press and media about departmental activities .

Co-ordination Activities Senior Superintendent and Superintendent of

Postal and RMS Divisions

Co-ordination with the State Government Authorities and other CentralGovernment Organizations within the division.

Overseeing the work of Dak Adalats for settlement of public grievances.

Chapter 9

REPORTING FUNCTION

56


57/75

A post office is a facility authorized by a postal system for the posting,receipt, sorting, handling, transmission or delivery of mail. Post offices offer mail-related services such as post office boxes , postage and packaging supplies. Inaddition, some post offices offer non-postal services such as passport applicationsand other government forms, money orders , and banking services. Post office

performs many activities & to perform it accurately, timely reporting is the mostimportant function to be performed.

The reporting activity in the postal department flows from the top levelmanagement to all the divisions . The flow of reporting activity flows in this way:

DepartmentOf posts

Administrative operational(Business Development &Marketing directorate) (1, 55,669 post offices)

129669 20000 8000Branch Sub HeadOffices Post offices post offices

(Rural areas)

( Postal Divisions )

22 circles

Regions RMS division

(Railway Mail Service)

( DIAGRAM 8 : chart showing flow of reporting work)The Department of Posts is part of the Ministry of Communications and

Information Technology, Government of India. The Secretary, Department of Posts,as the Chief Executive of the Department, is also the Chairperson of the PostalServices Board and Director General, India Post who directs the divisions &

57
http://en.wikipedia.org/wiki/Postal_systemhttp://en.wikipedia.org/wiki/Post_office_boxhttp://en.wikipedia.org/wiki/Passporthttp://en.wikipedia.org/wiki/Money_orderhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Postal_systemhttp://en.wikipedia.org/wiki/Post_office_boxhttp://en.wikipedia.org/wiki/Passporthttp://en.wikipedia.org/wiki/Money_orderhttp://en.wikipedia.org/wiki/Bank


58/75

administration section. There is a need to revisit India Posts governance structure to provide an effective line of command so that India Post is able to meet thechallenges of current market conditions.

Post Offices in the country are categorized as Head, Sub and BranchPost Office. The Divisions comprise of Sub-Divisions, Head Post Offices, Sub PostOffices and Branch Post Offices, which are the basic operational units for PostalServices.

The Divisions report to the Regional/Circle office on behalf of all their units, the circles report to the Directorate which is the policy and planning

body.

Within the Directorate, the channel of reporting and level of final

disposal of cases have been decided in view of paras 17, 22 and 23 of Manual of office procedure and instructions of the Ministry of Personnel, PG & Pension,Department of Administrative Reforms and Public Grievances and CabinetSecretariat issue from time to time. The following arrangements are followed:-

Officers/Official Level of reporting

LDCs to Assistants with less thanfive years of service

Section Officer

Assistants with more than five yearsservice

ADG or Director where there is noADG

Section Officers/AssistantDirectors/Desk Officers

Director or DDG where there is noDirector

ADsG DDG

Directors DDG or Member where there is noDDG

DDsG/Sr. DDG Member or Secretary.

Divisional heads Junior management level

58


59/75

Senior Superintendent of Post offices ( Class 1 )

Superintendent of Post offices ( Class 2 )

Branches under circles

Circles 22 circles

Head : Chief Post Master General

( HAG )( Additional secretary to the government of India )

Deputy : Director postal services ( DeputySecretary of

( JAG ) govt of India)Region

Head : Post master general (JT Secretary of ( CAG ) govt of India)

At the divisional level the head is the senior superintendent of post officeclass 1 employee at the junior management level to whom reporting of all divisionsis done, under which is the senior superintendent of post office class 2 employeewho manages to perform all administrative actives. They also collect reports fromchief postmaster general of the circle level.

59


60/75


61/75

Indian postal department is a part of the service sector of India. Itsmain objective is to provide service not the profit maximization. As it is servicesector so it is running in loss from past many years.

As a government department, all revenue generated by the India postgoes into the central treasury. It has to submit its budget to the Finance Minister whowould then allocate funds to meet the departments projected expenditure.

TABLE- 1

REVENUE AND EXPENDITURE

(FOR THE YEAR 2007-2008 & 2008-09)(UP TO DEC.2008)

(Rs. in Million)

Particulars

Actuals

2007-08

Actuals2008-09

%ageInc(+)/Dec(-)over

previousyear.

Revenue

Sale of Stamps 5668.17 4752.11 (-)16.2

Postage Realisedin Cash

19648.14

14836.59

(-)24.49

Commission onMoney Ordersand IndianPostal Orders

3747.93 2447.85 (-)34.69

Remunerationfor SavingBank/SavingCertificates

24763.58

0.00 _

61


62/75

Work

*Other Receipts 1121.14 622.56 (-)44.47

Total

Expenditure

54948.96

22659.11

(-)58.76

GeneralAdministration

4151.27 4145.38 0.14

Operation 46281.7

7

41733.4

4

(-)9.8

3Agency Services 2478.98 2244.89 (-)9.4

4

**Others 19814.61

18500.63

(-)6.6

3

Total Gross

Expenditure

72726.6

3

66624.3

4

(-)8.39

Less Recoveries 2663.23 610.75 (-)77.06

Net Expenditure 70063.40

66013.60

-5.78

Deficit (Net

Expenditure-Revenue)

15114.4

4

43354.4

8

186.8

4

ANALYSIS OF LAST THREE YEARS DEFICIT

62


63/75

It is not easy a red letter day of postal department from a monopoly situation, thedepartment is now struggling to find out foothold with the onset of put players &undefined foreign direct investment in postal service.Postal deficit in the 2008-09 stood at Rs.43354.48 million while the budgetestimates for 2008-09 had made allocation of only Rs.9580 million postal deficit isthe non plan expenditure. The postal earning are expected to go up only by 3% over 2008-09.The postal department is estimated to earn only Rs.61357.5 million in 2009-10,therefore the balance of Rs.53950 million has been provided as the budgetarysupport.The department of post has had deficit for last 3 years & it is expected to continuethis year also.The department of posts deficit was Rs.12495.2 million in 2007-08,Rs.15114.4 million in 2008-09 & Rs.53950 million estimated in 2009-10.

The deficit has substantially increased during previous year & current year.

REASONS OF DEFICIT

The reason for increasing revenue deficit is largely due to nearly 89% of theexpenditure incur on mandatory heads like salary, pension of staff etc.

The postal services have also been revenue decline from sale of postagestamps, which have fallen by 8.5% from last year. This fact is that the postaldepartment is lagging far behind when it comes to certain key issues such asautomation out of 1.5 lakhs post offices a mere 5.3% have been computerizedas per the ministry of own administration

The increasing deficit has also been due to subsidy being extended to makethe postal service affordable to common man & besides taking to service tothe far flung areas of the country.

They added that the department has not been taking steps like introduction of new product, market development activities & adoption of customer orientedstrategies to increase its revenue.

Capital outlay

The expenditure on fixed assets in the year 2007-08 was RS 906.20 million of which22.44% was on land and building. 74.44% on mechanization and modernization of Postal services. 0% on railway mail vans and 3.12% on mail motor vehicle andothers. The value of gross capital on fixed assets rose to RS 16247.69 million at theend of the year. The net progressive fixed assets value up to the end of the year wasRS 14511.47 million.

63


64/75


65/75

MINISTRY OF COMMUNICATIONS & I.T.

DEPARTMENT OF POSTS

Statement of Receipts and Disbursements for the year (2009-10)

SL. NO.

Major/Minor Head1201-Postal Receipts

Collections upMonth Nov2009

COPPY Nov2008

% GROWTH

(Revenue Receipts)

Postage realized in cash 1365.45 1319.50 3.48

Sale of Postage stamps 400.26 427.76 -6.43

Common. on MOs &IPOs

206.81 218.92 -5.53

Net Reciepts. Fromother postalAdministration.

-52.76 43.57 --21.09

Other Receipts 97.59 100.94 -3.32

Capital Receipts 0.00 0.00

Total 2017.35 2023.55 -0.31

The earnings of the Department are in the form of Recoveries andRevenue Receipts. The item recoveries mentioned in above Table represents theamount of commission earned by the department for agency function done on behalf of other department & organization

65


66/75

Budgetary control

Controlling is requiring in every department of post office, due to rapidincrease in modernization & technology.

There are areas/services where, on larger considerations, government wishes tokeep cost of services at sub-optimal levels e.g. the post cards and rural networks. Insuch cases the Department of Posts should seek to cover the under recovery to theextent possible through cross subsidization within the system and the gap should bemet by explicit subsidy from the central budget. The activities for which suchsubsidy would be available have to be carefully chosen and kept to the minimum.The upper limit for the subsidy should also be carefully determined and announcedin advance. This limit should be such that it does not undermine the enthusiasm of the department of Posts in their efforts to reach zero deficits within a planned period.

It should not also, on the other, make the Department of Posts too complacent andlose focus on their efforts.

In addition to these structural changes the postal department needs to fend for Additional sources of revenue as well as reduce the expenditure on provision of Services. Herein postal department applied some methods of additional revenuegeneration and expenditure control.

Expenditure control

Deficit reduction can be achieved by through greater efficiency and productivitygains in all areas of activities and also through abolition/rightsizing/outsourcing of ancillary logistic services done in house. The existing costs contain many elementsof inefficiency including a major element of manpower deployment based on oldwork norms. New work norms incorporating higher productivity in every sphere of

postal activity are to be devised and introduced.

LIMITATIONS OF STUDY

Limitations of our method of gathering are that we have no evidence as wehave not recorded these interviews/interactions and we did not have a structuredquestionnaire though we did go with a list of questions that we wanted to ask them.

Another limitation of our method of gathering information is that we arenot able to visit the Head office of postal department , as we are the students of Ahmadabad , we have just visited the branches of Ahmadabad. Due to this we have

66


67/75


68/75

Our findings are categorized into two different divisions:

1. SWOT Analysis

Strengths

Government Encouragement: Government of India has accorded thrust area statusto the Indian Post. The Government of India has also set up innovative scheme likeEMS Speed Post, e-MO, e-Payment, Mail Services, Logistic Post Air Services etc.,for promoting Post Department.

Spread at all area: Opening of more and more post offices to giving out fastservices to every corner of the country. Still village areas covered by only post

because no other services reached there.

Excellence Delivery by Speed Post : Speed Post ushered in a new era when OneIndia, One Rate scheme was launched @ Rs 25 for all destinations across India,from Kashmir to Kanyakumari. Now, Speed Post delivers Value for money toevery one everywhere, delivering local Speed Post upto 50 grams @ Rs 12, inclusiveof Service Tax.

Growing Popularity: The popularity of speed post is increasing rapidly day by day.

Department became enthusiastic to be forward looking and innovative in all areas.

WEAKNESSES

* Non-optimization of network capabilities* Poor marketing strategy* Poor organizational set up* Inflexibility in mindset* Limited number of value added services* Poor franchisee network * Legacy of poor service image

* Huge and aged manpower * Procedural delays* Lack of strategic alliances* Problems associated with incumbency like outdated technologies,

unproductive rural assets, social obligations, political interference,* Poor IT penetration within organization* Poor knowledge Management.

68


69/75

OPPORTUNITIES

Global Market: The market is large and rapidly changing-from a mix of clientneeds and corporate requirements. Market openings are emerging across all over world.

Domestic Demand: The corporate government and consumer sector of the Indiandomestic market offers a very huge opportunity to department for speedy service.

E-Commerce/E-Business: India not only has a huge opportunity to service thismarket but also has a unique opportunity to address the needs of the NRI communityaround the world

* Untapped broadband services * Untouched international market

* Can capitalize on public sector image to grab domestic market

* Diversification of business to turn-key projects

* Leveraging the brand image to source funds

* Fuller utilization of slack resources

THREATS

Lack of Speed: The world is moving at the speed of Internet. The decision- makingand time taken for implementation in India needs to be at a much faster pace so thatthe Indian post not loses any opportunities.

* Keeping pace with fast technological changes

* Market maturity in postal department.

69


70/75

II. On the various functions of the department of posts which are asfollows:

Planning function:The planning of plans, policies, stratergies, programmes is done by

the Directorate of the administration section of the department of posts. After theformation of plans ,they are been implemented among the circles, regions &divisions .the planning done is very accurately performed due to the rigidiymaintained in th

Project on Post Department of Indai

Documents

Transcript of Project on Post Department of Indai