The case narrates how A.P.V.N. Sarma, chairman and managing director of Singareni Collieries Company (SCCL) since 1997, realized the need for change to rescue the company from impending bankruptcy. SCCL, a supplier of coal to the power and energy sectors, had been declared bankrupt by the Board for Industrial and Financial Reconstruction twice, in 1992 and 1996, and had accumulated losses of 12.19 billion rupees. As it provided direct and indirect employment to people residing in the region around SCCL, the health of the organization was critical not only to the massive workforce, but also to the state of Andhra Pradesh. The power generation units of the state relied significantly on the coal supplied by SCCL. <br><br>The case captures various initiatives undertaken by Sarma to bridge the trust deficit between management and blue-collar workers with low literacy and income levels. It discusses the novel communication strategies to connect with workers. The case describes how numerous strikes plaguing SCCL were curbed and order was restored to allow productivity to rise. Under Sarma’s leadership, SCCL achieved a net profit of 894 million rupees for the fourth consecutive year in 2001. Sarma had a fixed tenure of five years, ending in 2001. The task for the new leader was to build on the foundations laid by Sarma and take SCCL to new heights.
The case describes the introduction of a human resources (HR) system named Project Vishwamitra (PV) in 2000 in a large, public-sector manufacturing organization, T.P. Engineering Corporation (TPEC). PV was introduced with considerable leadership support and visibility. It was intended to provide every engineer trainee at TPEC a friend and guide to ease their entry and socialization into the organization. The senior managers assigned to guide the trainees were called mentors. For about five years, the project ran smoothly — the trainees felt supported whenever they needed help, and the mentors were happy to guide trainees. But afterwards, certain important changes took place in the organization in the staffing of leadership positions. With expansion and new projects, the growth trajectory of TPEC showed a sharp increase. With longer-standing employees moving out and a significant rise in the number of trainees recruited, PV ran into difficult times. However, no changes were made in the system or processes. Meetings between trainees and mentors became more infrequent and, in certain areas, there was no contact between the two. In the midst of degeneration, one of the leaders was able to revive the project in one of the company units. TPEC had highly ambitious growth plans and the number of trainees was expected to increase from 450 in 2010 to 750 in 2011. The company faced a choice regarding the form in which PV should continue.