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CONTENTS
CHAPTER PARTICULARS Page No.
SYNOPSIS
I Introduction
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Bharat Sanchar Nigam Limited ( BSNL) was formed on 1st October 2000. BSNL is
one of the oldest, largest & leading public sector units providing comprehensive range of
telecom services in India. India's public sector telecom companyBSNL is the 7th largest
telecom company in world. In 1975, theDepartment of Telecom(DoT) was separated
fromIndian Post & Telecommunication Accounts and Finance Service . DoT was responsible
for telecom services in entire country until 1985 whenMahanagar Telephone Nigam
Limited (MTNL) was carved out of DoT to run the telecom services ofDelhi and Mumbai. In
1990s the telecom sector was opened up by the Government for private investment as a part of
Liberalisation-Privatization-Globalization policy. Therefore, it became necessary to separate the
Government's policy wing from its operations wing. The Government of India corporatized the
operations wing of DoT on 1st October, 2000 and named it asBharat Sanchar Nigam
Limited (BSNL) with its Registered and Corporate Office at Bharat Sanchar Bhavan, Harish
Chandra Mathur Lane, Janpath, New Delhi.
BSNL has installed Quality Telecom Network in the country & now focusing on
improving it, expanding the network, introducing new telecom services with Information &
Communication Technology (ICT) applications in villages & winning customer's confidence.
Today, it has about 43.74 million line basic telephone capacity, 8.83 million WLL capacity,
72.60 million GSM capacity, 37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA
Towers, 197 Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of microwave network
connecting 623 districts, 7330 cities/towns & 5.8 lakh villages .
http://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/Department_of_Telecomhttp://en.wikipedia.org/wiki/Department_of_Telecomhttp://en.wikipedia.org/wiki/Department_of_Telecomhttp://en.wikipedia.org/wiki/Indian_Post_%26_Telecommunication_Accounts_and_Finance_Servicehttp://en.wikipedia.org/wiki/Indian_Post_%26_Telecommunication_Accounts_and_Finance_Servicehttp://en.wikipedia.org/wiki/Indian_Post_%26_Telecommunication_Accounts_and_Finance_Servicehttp://en.wikipedia.org/wiki/Mahanagar_Telephone_Nigam_Limitedhttp://en.wikipedia.org/wiki/Mahanagar_Telephone_Nigam_Limitedhttp://en.wikipedia.org/wiki/Mahanagar_Telephone_Nigam_Limitedhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limitedhttp://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limitedhttp://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limitedhttp://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limitedhttp://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limitedhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Mahanagar_Telephone_Nigam_Limitedhttp://en.wikipedia.org/wiki/Mahanagar_Telephone_Nigam_Limitedhttp://en.wikipedia.org/wiki/Indian_Post_%26_Telecommunication_Accounts_and_Finance_Servicehttp://en.wikipedia.org/wiki/Department_of_Telecomhttp://en.wikipedia.org/wiki/BSNL -
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BSNL is the only service provider, making focused efforts & planned initiatives to
bridge the rural-urban digital divide in ICT sector. In fact there is no telecom operator in the
country to beat its reach with its wide network giving services in every nook & corner of the
country & operates across India except New Delhi & Mumbai. Whether it is inaccessible areas
of Siachen glacier or North-Eastern regions of the country, BSNL serves its customers with a
wide bouquet of telecom services namely Wireline, CDMA mobile, GSM mobile, Internet,
Broadband, Carrier service, MPLS-VPN, VSAT, VoIP, IN Services, FTTH, etc.
BSNL is numero uno of India in all services in its license area. The company offers
wide ranging & most transparent tariff schemes designed to suit every customer. BSNL
has 90.09 million cellular & 5.06 million WLL customers as on 31.07.2011. 3G Facility has
been given to all 2G connections of BSNL. In basic services, BSNL is miles ahead of its rivals,
with 24.58 million wireline phone subscribers i.e. 71.93% share of the wireline subscriber
base. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure
that provides convergent services like voice, data & video through the same Backbone &
Broadband Access Network. At present there are 8.09 million broadband customers. The
company has vast experience in planning, installation, network integration & maintenance of
switching & transmission networks & also has a world class ISO 9000 certified Telecom
Training Institute.
During the 2010-11, turnover of BSNL is around Rs. 29,700 Crores.
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VISION:
Be the leading telecom service provider in India with global presence. Create a customer focused organization with excellence in customer care, sales and
marketing.
Leverage technology to provide affordable and innovative telecom. Services/productsacross customer segments.
MISSION:
Be the leading telecom service provider in India with global presence.
Generating value for all stakeholders - employees, shareholders, vendors & businessassociates.
Maximizing return on existing assets with sustained focus on profitability. Becoming the most trusted, preferred and admired telecom brand. To explore International markets for Global presence. Creating a customer focused organization with excellence in customer care, sales&
marketing.
Developing a marketing and sales culture that is responsive to customer needs. Excellence in customer service-friendly, reliable, time bound, convenient and courteous
service.
Leveraging technology to provide affordable and innovative products/ servicesacross customer segments.
Offering differentiated products/services tailored to different service segments. Providing reliable telecom services that are value for money.
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Providing a conducive work environment with strong focus on performance. Attracting talent and keeping them motivated. Enhancing employees skills and utilizing them effectively. Encouraging and rewarding individual and team/group performance. Establishing efficient business processes enabled by IT. Changing policies and processes to enable transparent, quick and efficient decision
making.
Building effective IT systems and tools.
OBJECTIVES:
To be the Leading Telecom Services provider by achieving higher rate of growth so as tobecome a profitable enterprise.
To provide quality and reliable fixed telecom service to our customer and therebyincrease customers confidence.
To provide customer friendly mobile telephone service of high quality and play a leadingrole as GSM operator in its area of operation.
Strategy for: Rightsizing the manpower. Providing greater customer satisfaction.
Contribute towards: Broadband customers base of 20 Mn in India by the end of 2011-12 as per
broadband policy 2004.
Providing telephone connections in villages as per Government policy.
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To leverage the existing infrastructure of BSNL for facilitating implementationof other government programmes and initiatives particularly in the rural areas.
ASPIRATION
Be the leading Telecom Service Provider in India with global presence. Create a customer focused organisation with excellence in sales, marketting and
customer care.
Leverage technology to provide affordable and innovative products/services acrosscustomer segments
Provide a conducive work environment with strong focus on performance Establish efficient business processes enabled by IT.
STRUCTURE OF BSNL
24 Telecom Circles and 2 Metro Districts at Chennai and Kolkatta. 4 Transmission Maintenance Regions. 4 Telecom Project Circles and IT Circle at Pune. Telecom Quality Assurance, Testing and Development Circles. Data Network Circle and 5 Telecom Factories. Advanced Level Telecom Training Centers one each at Ghaziabad , Jabalpur, and
NATFM at Hyderabad, 11 Regional Telecom Training Centers (RTTCs) and one circle
telecom training center in each telecom circle.
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ORGANISATIONAL SET UP OF BSNL
Distribution of Group-wise staff strength of BSNL (numbers) as on 31st March 2011 is
indicated below:
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Revenue
Revenue earned by BSNL during 2005-2010
Cumulative Capital Outlay
BSNL has Gross Fixed Assets of over Rs. 160470 Crores as on 31.03.2010.
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The BSNL is making substantial investment year to year for its network expansion and
modernization. During the financial year 2009-10 BSNL has made the gross investment of Rs.
28,227 crore ( US $ 6.28 billion) in Fixed Assets.
The Company has a net worth of Rs. 86,476 crores (US$ 19.26 billion), Authorized Equity
capital of Rs. 10,000 crores (US $ 2.22 billion), Paid up Equity Share Capital of Rs. 5,000 crores
(US $ 1.11 billion) and Revenue is Rs. 32,045 crores (US $ 7.13 billion) in 2009-10.
Bharat Sanchar Nigam Limited has got net fixed assets valuing more than Rs. 54,321 Crores (US
$ 10.67 billion), which are in the form of Land, Buildings Cables, Apparatus & Plants etc. as on
31.03.2009.
Growth Plan
BSNL has continued its growth story ever since its formation & has reached a customer base of
81.49 million as on 31st March, 2009 from 28.11 million as on 31st March, 2001. BSNL further
plans to increase its customer base to 160 Million by March, 2014.
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New Services introduced/planned by BSNL
3G Services: BSNL has started 3G services in 290 cities and acquired more than 6lakh
customers. It has planned to roll out 3G services in 760 cities across the country in 2010-11.
Broadband services: The shift in demand from voice to data has revolutionized the very nature
of the network. BSNL is poised to cash on this opportunity and has planned for extensive
expansion of the Broadband services. The Broadband customer base of 3.56 Million customers
in March'2009 is planned to be increased to 16.00 million by March 2014.
BSNL is also offering prepaid Broadband services. The customers availing prepaid broadband
have many advantages over post paid broadband like control on usage, Mobility etc.
In addition to wireline broadband services, BSNL is also in the process of rolling out its Wi-
MAX network in rural areas to take an initial lead and provide wireless broadband services in all
rural blocks in the country during 2010-11. The Urban Wi-Max is also being deployed in Kerala
& Punjab Circles and shall cover all the mojor cities in these circles.
Wi-Max services are also being provided through a Franchisee agent with M/s SOMA in three
states of Gujrat, AP and Maharashtra.
Value Added Services: BSNL is focussing on provision of value added services/features to
attract high end customers and to double its revenues from VAS
Fibre to Home(FTTH) : To meet the demand for high bandwidth services, BSNL is rolling out
FTTH services (GPON & GE-PON) for the first time in the country, which is likely to generate
substantial revenue in coming years. Services are likely to start by March 2010.
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Mobility in WLL: BSNL is planning to provide full mobility on its WLL network from March
2010.
Important Projects under implementation
Tender for 93 Million GSM Mobile Lines to meet the requirement for next three to fiveyears.
Wi-Max:1000 Base Station rural Wimax project for 12000 CSCs covering all TelecomCircles except A&N, J&K, Kerala & Kolkata Telecm District. 6863 Base Station rural
Phase-II Wimax project for 56000 CSCs covering all Telecom circles except Kerala &
A&N.
CDR based Customer Care & Convergent Billing system. Enterprise Resource Planning (ERP) system country wide. Replacement of life expired exchanges by Class 5 NGN Introduction of Fixed Mobile Convergence to add value to Fixed Network.
International Long Distance
A . Undersea Cable : BSNL is participating/member of the following submarine cable systems:
1. Bharat Lanka Cable System: Connecting to Sri Lanka and to reach in the Pacific direction
from India.
2. Europe India Gateway (EIG) Cable System: Connecting UK, Portugal, Gibraltar, France,
Libya, Egypt, Saudi Arabia, Djibouti, Oman & UAE.
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3. Millennium Cable System: It is joint venture with MTNL to lay Millennium Cable System
in two directions as follows:-
Millennium Cable Sub-System East (MCSS-E) connecting the East Coast ofIndia to South East Asia (Malaysia and Singapore) with optional branches to Port
Blair (Great Andaman Island), Bangladesh, Myanmar, Indonesia and Thailand.
Millennium Cable Sub-System West (MCSS-W): connecting the West Coast ofIndia to the Middle East (United Arab Emirates) and Djibouti with optional
branches to Pakistan, Oman and Yemen.
4. SEMEWE4: Connecting towards Trans-Atlantic as well as Trans-Pacific direction.
(B) International MPLS-VPN : BSNL has made arrangements for providing International
MPLS VPN services in about 400 cities and 150 countries.
With the above expansion plans and introduction of new services, the turnover of the
company is expected to grow from Rs. 35800 crore in March 2009 to Rs. 52,000 crores by
March 2014.
SOCIAL COMMITMENT
BSNL is committed to provide quality Telecom Services at affordable price to the citizens of the
remotest part of the Country. BSNL is making all effort to ensure that the main objectives of the
new Telecom Policy 1999 (salient points indicated below) are achieved:
Access to telecommunications is of utmost importance for achievement of the country's
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social and economic goals. Availability of affordable and effective communications for
the citizens is at the core of the vision and goal of the new Telecom policy 1999.
Strive to provide a balance between the provision of universal service to all uncoveredareas, including the rural areas, and the provision of high-level services capable of
meeting the needs of the country's economy;
Encourage development of telecommunication facilities in remote, hilly and tribal areasof the country;
Transform in a time bound manner, the telecommunications sector to a greatercompetitive environment in both urban and rural areas providing equal opportunities and
level playing field for all players;
Indian Telecom Sector
Introduction
Communication with each other has been the basic instinct of human beings since times
immemorial. The modes for exchange of information over a distance small or long, included
beating of drums, fire/smoke/semaphore signals, etc. The real breakthrough in the transport of
information came in 1830s with the invention of electric telegraphs by Samuel Morse and later
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on telephones by Alexander Graham Bell in 1870s. These were the turning points in the history
of communications. It enabled the exchange of information through electric signals. There are
other landmarks also like the development of vacuum tube, resulting in carrier telephony in
1920s and later on the invention of transistor in 1940s. The invention of radio communications
by Marconi at the turn of the 20th century is also no less important. Telecom in the real sense
means the transfer of information between two distant points in space. The popular meaning of
telecom always involves electrical signals and as a result, people often exclude postal or any
other raw telecommunication methods from its meaning. The history of Indian telecom can be
started with the introduction oftelegraph.
It was in the year 1851 that the British first introduced telecommunication services in India
through operational land lines near Calcutta. Gradually, the telephone service was made
operational in the year 1881. After independence, the foreign telecommunication companies
were nationalized and the Posts, Telephone and Telegraph (PTT) Company was set up by the
Ministry of Communications.
In the year 1985, the Department of Telecommunications (DOT) was set up to provide domestic
and long distance telephone services. In the year 1986, the government established two
companies namely Mahanagar Telephone Nigam Limited (MTNL) for metropolitan telephone
services and Videsh Sanchar Nigam Limited (VSNL) for international telephone services.
With the economic liberalization in the 1990s, the telecom market in India was also benefited to
a great extent. The service was improved and the tariffs were also significantly lowered. In the
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year 1997, the government set up the Telecom Regulatory Authority of India (TRAI) to provide
a comprehensive telecom service in the country. In 1999, modification was brought to the policy
and the cellular services were introduced. In 2011, Mobile Number portability has been
introduced.
The telecom services have been recognized the world-over as an important tool for socio-
economic development for a nation. It is one of the prime support services needed for rapid
growth and modernization of various sectors of the economy. Indian telecommunication sector
has undergone a major process of transformation through significant policy reforms, particularly
beginning with the announcement of NTP 1994 and was subsequently re-emphasized and carried
forward under NTP 1999. Driven by various policy initiatives, the Indian telecom sector
witnessed a complete transformation in the last decade. It has achieved a phenomenal growth
during the last few years and is poised to take a big leap in the future also.
The Republic of India possesses a diversified communications system that links all parts of the
country by Internet, telephone, telegraph, radio, and television. None of the telecommunications
forms are as prevalent or as advanced as those in modern Western countries, but the system
includes some of the most sophisticated technology in the world and constitutes a foundation for
further development of a modern network. India has the third largest telecom networkand
world's second-largestmobile phone users with over 881 million as of Oct 2011. It has
the world's fourth-largest Internet users with over 100 million as of December 2010. India has
come to be regarded as the world's most competitive and one of the fastest growing telecom
markets.
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The industry is expected to reach a size of 344,921 crore (US$69.95 billion) by 2012 at a
growth rate of over 26 per cent, and generate employment opportunities for about 10 million
people during the same period. According to analysts, the sector would create direct employment
for 2.8 million people and for 7 million indirectly. The total revenue of the Indian telecom sector
grew by 7% to 283,207 crore (US$57.43 billion) for 2010-11 financial year, while revenues
from telecom equipment segment stood at 117,039 crore (US$23.74 billion).
This rapid growth is possible due to various proactive and positive decisions of the Government
and contribution of both by the public and the private sectors. The rapid strides in the telecom
sector have been facilitated by liberal policies of the Government that provides easy market
access for telecom equipment and a fair regulatory framework for offering telecom services to
the Indian consumers at affordable prices. Presently, all the telecom services have been opened
for private participation.
Next generation networks
In the Next Generation Networks, multiple access networks can connect customers to a core
network based on IP technology. These access networks include fibre optics or coaxial
cable networks connected to fixed locations or customers connected through wi-fi as well as
to 3G and 4G networks connected to mobile users. As a result, in the future, it would be
impossible to identify whether the next generation network is a fixed or mobile network and
the wireless access broadband would be used both for fixed and mobile services. It would then
be futile to differentiate between fixed and mobile networksboth fixed and mobile users will
access services through a single core network. Most telecom companies won 3G and 4G licences
in a competitive auction. They have now rolled out their third-generation (3G) mobile services
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since early 2010, but most companies will officially launch fourth-generation (4G) mobile
services based on LTE or Long Term Evolution technology from 2012.
Indian telecom networks are not so intensive as developed countrys telecom networks and
India's teledensity is low only in rural areas. 670,000 route kilometers (419,000 miles) ofoptical
fibres has been laid in India by the major operators, even in remote areas and the process
continues. BSNL alone has laid optical fibre to 30,000 Telephone Exchanges . Keeping in mind
the viability of providing services in rural areas, an attractive solution appears to be one which
offers multiple service facility at low costs. A rural network based on the extensive optical fibre
network, using Internet Protocol and offering a variety of services and the availability of open
platforms for service development, viz. the Next Generation Network, appears to be an attractive
proposition. Fibre network can be easily converted to Next Generation network and then used for
delivering multiple services at cheap cost.
Rural Telephony
Apart from the 200.77million fixed and WLL connections on March 2010 provided in the rural
areas, 570000 uncovered VPTs have been provided as on March 2010. Thus, 96% of the villages
in India have been covered by the VPTs. More than 3 lakh PCOs are also providing community
access in the rural areas. Further, Mobile Gramin Sanchar Sewak Scheme (GSS) a mobile Public
Call Office (PCO) service is provided at the doorstep of villagers. At present, 2772 GSSs are
covering 12043 villages. Also, to provide Internet service, Sanchar Dhabas (Internet Kiosks)
have been provided in more than 3500 Block Headquarters out of the total 6337 Blocks in the
country. The target of 80 million rural connections by 2010 have already met during year 2008
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itself. USOF subsidy support scheme is also being utilized for sharing wireless infrastructure in
rural areas with about 19,000 towers by 2010.
Telecom equipment manufacturing sector
As a result of Government policy, progress has been achieved in the manufacturing of telecom
equipment in the country. There is a significant telecom equipment-manufacturing base in the
country and there has been steady growth of the manufacturing sector during the past few years.
Rising demand for a wide range of telecom equipment, particularly in the area of mobile
telecommunication, has provided excellent opportunities to domestic and foreign investors in the
manufacturing sector. Ericsson set up GSM Radio Base Station Manufacturing facility in Jaipur.
Elcoteq set up handset manufacturing facilities in Bangalore. Nokia and Nokia Siemens
Networks have set up their manufacturing plant in Chennai. LG Electronics set up plant of
manufacturing GSM mobile phones near Pune. Ericsson launched their R&D Centre in Chennai.
Flextronics set up an SEZ in Chennai. Other major companies like Foxconn, Aspcom, Solectron
etc have decided to set up their manufacturing bases in India.
The Government has already set up Telecom Equipment and Services Export Promotion Council
and Telecom Testing and Security Certification Centre (TETC). A large number of companies
like Alcatel, Cisco have also shown interest in setting up their R&D centers in India. With above
initiatives India is expected to be a manufacturing hub for the telecom equipment.
Research & Development
India has proven its dominance as a technology solution provider. Efforts are being continuously
made to develop affordable technology for masses, as also comprehensive security infrastructure
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for telecom network. Research is on for the preparation of tested infrastructure for enabling
interoperability in Next Generation Network. It is expected that the telecom equipment R & D
shall be doubled by 2010 from present level of 15%. Modern technologies inductions are being
promoted. Pilot projects on the existing and emerging technologies have been undertaken
including WiMax, 3G etc. Emphasis is being given to technologies having potential to improve
rural connectivity. Also to beef up R&D infrastructure in the telecom sector and bridge the
digital divide, cellular operators, top academic institutes and the Government of India together
set up the Telecom Centres of Excellence (COEs).
3G & Broadband Wireless Services (BWA)
The 3G will allow telecom companies to offer additional value added services such as high
resolution video and multi media services in addition to voice, fax and conventional data services
with high data rate transmission capabilities. BWA will become a predominant platform for
broadband roll out services. It is also an effective tool for undertaking social initiatives of the
Government such as e-education, telemedicine, e-health and e-Governance. Providing affordable
broadband, especially to the suburban and rural communities is the next focus area of the
Department.
BSNL & MTNL have been allotted 3G & BWA spectrum earlier than other operators with a
view to ensuring early roll out of 3G & WiMax services in the country. Honble Prime Minister
launched the MTNLs 3G mobile services on the inaugural function of India Telecom 2008 held
on 11th December 2008, BSNL launched its countrywide 3G services from Chennai, in the
southern Tamil Nadu state on 22nd February 2009.
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Mobile Number Portability (MNP)
Mobile Number Portability (MNP) allows subscribers to retain their existing telephone number
when they switch from one access service provider to another irrespective of mobile technology
or from one technology to another of the same or any other access service provider. The
Government has announced the guidelines for Mobile Number Portability (MNP) Service
Licence in the country on 1st August 2008 and has issued a separate Licence for MNP service
w.e.f. 20.03.2009. The Department of Telecommunication (DoT) has already issued licences to
two global companies (M/s Syniverse Technologies Pvt. Ltd. and M/s MNP Interconnection
Telecom Solutions India Pvt. Ltd.) for implementing the service. MNP has been implemented in
the country in January 2011.
Network Expansion
The telecom sector has shown robust growth during the past few years. It has also undergone a
substantial change in terms of mobile versus fixed phones and public versus private participation.
The following statistics shows the growth trend of telecom sector from last five years:
The number of telephones has increased from 54.63 million as on 31.03.2003 to 621.28 million
as on 31.03.2010 and 914.59 as on 31.10.2011. Wireless subscribers increased from 13.3 million
as on 31.03.2003 to 584.32 million as on 31.03.2010. Whereas, the fixed line subscribers
decreased from 41.33 million in 31.03.2003 to 36.95 million in 31.03.2010. The broadband
subscribers grew from a meager 0.18 million to 8.76 million as on 31.03.2010.
Trend in Tele-density
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Tele-density in the country increased from 5.11% in 2003 to 52.74 % in March 2010. In the rural
area teledensity increased from 1.49% in Mar 2003 to 24.31% in March 2010 and in the urban
areas it is increased from 14.32% in Mar 2003 to119.45% in March 2010.This indicates a rising
trend of Indian telecom subscribers.
Current Statististcs (As on October 2011)
Telephone Subscribers (Wireless and Landline): 914.59 million
Land Lines: 33.19 million
Cell phones: 881.40 million
Monthly Cell phone Addition: 7.79 million
Teledensity: 76.03 %
Projected Teledensity: 1 billion, 84% of population by 2012.
Internet Service Providers (ISPs): 180 (2010)
Internet hosts: 4,536,000;
Internet users: 100 million;
Broadband Internet users: 12.98 million
http://en.wikipedia.org/wiki/Internet_Service_Providerhttp://en.wikipedia.org/wiki/Internet_hosthttp://en.wikipedia.org/wiki/Internet_userhttp://en.wikipedia.org/wiki/Internet_userhttp://en.wikipedia.org/wiki/Internet_hosthttp://en.wikipedia.org/wiki/Internet_Service_Provider -
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ORGANIZATIONAL CULTURE AND CLIMATE
Every organization has some characteristics, which are common with any other organization. At
the same time, each organization has its unique set of characteristics and properties. This
psychological structure of organization and their sub-units is usually referred to as Organization
Culture. Organizational Climate is a relatively enduring quality of the internal environment that
is experienced by the members, influences their behavior, and can be described in terms of
values of a particular set of characteristics of the organization. The culture and climate of an
organization are the natural forces which leave an imprint on the organization. Both have a
strong impact on the organization, particularly during transformational change.
It should be noted that, organizational culture or organizational climate is the perceived
aspects of an organizations internal environment, but within the same organization there may be
very different O.Cs. This might happen because people with different lengths of experience or
at different levels of organizations hierarchy, may perceive internal environment of an
organization differently. Personal characteristics such as values, needs, attitudes and
expectations determine the manner in which an individual is likely to perceive the various
aspects of the internal working environment of the organization.
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DIMENSIONS OF O.C
In the last three decades, extensive studies have been conducted, which helped in identifying
some key factors of O.C. Some of the common dimensions are described below.
INDIVIDUAL AUTONOMY
This refers to the individuals freedom to exercise his or her responsibility. In other words,
individual autonomy is the degree to which employees are free to manage themselves, to have
considerable decision making power, and not to be continually accountable to higher
management.
POSITION STRUCTURE
This refers to the extent of direct supervision, formalization and centralization in an organization.
In other words, position structure is the degree to which objectives of the job and methods for
accomplishing it are established and communicated to the individual by supervisors.
REWARD ORIENTATION
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This refers to the degree to which an organization rewards individuals for hard work or
achievement. An organization, which orients people to perform better and rewards them for
doing so, will have an O.C characterized by high reward orientation.
CONSIDERATION, WARMTH AND SUPPORT
This refers to the extent of stimulation and support received by an individual from other
organization members. In other words, if there is a sense of team spirit among the members of
an organization, the O.C is likely to be perceived as considerate, warm and supportive.
CONFLICT
This refers to the extent of conflict present between individuals and the willingness to be honest
and open about interpersonal differences.
PROGRESSIVENESS AND DEVELOPMENT
This aspect refers to the degree to which organization conditions foster the development of the
employees, allow scope for growth and application of new ideas and methods.
RISK TAKING
The degree to which an individual feels free to try out new ideas or otherwise take risk without
fear of reprisal, ridicule or other form of punishment, indicates the risk-taking dimension of O.C.
This dimension is akin to cautious versus venturesome quality of an organization.
CONTROL
This dimension refers to the degree to which control over the behavior of organizational
members is formalized. In a highly bureaucratic organization, control systems are well defined.
In a low-control organization, most of the controls are self-regulated; i.e, individuals monitor
their own behavior. This dimension can be called as tightness versus looseness of an
organization.
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DETERMINANTS OF O.C
Organizational determinants are the causes while dimensions are the components of O.C. In
short, determinants are those which influence where as dimensions are those which are
influenced. The determinants of O.C have been examined hereunder.
ECONOMIC CONDITION
Several dimensions of O.C are influenced by organizations positions on the economic cycle. The
economic conditions of any organization influence whether its budget should be tight or loose.
In times of prosperity- when budgets are more loose than tight- the organization tends to be more
adventuresome. On the other, tight budget would lead to an air of caution and conservatism
within an organization. Few managers are willing to suggest new programs (probably deserving
merit) when the order from above is to exercise tight control over expenses. So, dimensions of
O.C like risk-taking, control progressiveness and development etc are directly influenced by
economic conditions.
LEADERSHIP STYLE
The leadership style prevailing in organizations has a profound influence in determining several
dimensions of O.C. The influence is so pervasive that one may often wonder whether O.C is a
product of the philosophy and practices of prominent persons in an organization.
ORGANIZATIONAL POLICIES
Specific organizational policies can influence a specific dimension of O.C to quite an extent. For
example, if the company policy states that layoffs will be used only as a last resort to cope with
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business downturn, then it would, in general, foster an internal environment that is supportive
and humanistic.
MANAGERIAL VALUES
The values held by executives have a strong influence on O.C because values lead to actions and
shape decisions. Values add to perceptions of the organization as impersonal, paternalistic,
formal, informal, hostile or friendly.
ORGANISATION STRUCTURE
The design or structure of an organization affects the perception of its internal environment. For
example, a bureaucratic structure has an O.C much different from a system4 organization.
According to Rensis Likert, all organizations can be classified into four major groups, depending
upon the way basic organizational processes are conducted. These major groupings are as
follows
System1---Exploitative Authoritative
System2---Benevolent Authoritative
System3---Consultative
System4---Participative
CHARACTERISTICS OF MEMBERS
Personal characteristics of the members of an organization also affect the climate prevailing in
the organization. For example an organization with well educated ambitious and younger
employees is likely to have a different O.C than an organization with less educated, and less
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upwardly mobile, older employees. The former might inculcate an environment of
competitiveness, calculated risk-taking, frankness of opinions etc.
ORGANIZATIONAL SIZE
In a small sized organization it is much easier to foster a climate for creativity and innovation or
to establish a participative kind of management with greater stress on horizontal distribution of
responsibilities. On the other hand, in a large organization it is easier to have a more
authoritative kind of management with stress on vertical distribution of responsibilities.
MANAGERIAL ETHOS
Ethos refers to habitual character and values of individuals, groups, races, etc. Managerial ethos
is concerned with the character and values of managers as a professional group. Contemporary
managers hold some specific values, which effect works and some of these are autonomy,
equity, security and opportunity.
Individual autonomy is a very important dimension of O.C. Enlightened managers believe that,
most people prefer to feel and to do things as they like within the constraints imposed by their
group. These managers are tending to allow enough latitude to individual employees as long as
the use of this freedom does not violate basic norms in the organization. In the last two decades,
some management practices have innovated, which are in keeping with this value of autonomy.
Equity refers to justice in rewarding performance. Here again, modern managers strongly feel
that a person must get a reward proportionate to the input. In any case, deliberate exploitation is
to be avoided and as far as possible fairness is to be maintained.
Another highly rewarding value is security, both economic and emotional. Keeping a person on
his toes by making him feel insecure is slowly but steadily getting discredited as a management
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philosophy. Even the societies which have practiced hire and fire policy are unmistakably
shifting towards providing security of job.
Providing enough career advancement opportunities to employees is yet another contemporary
managerial value. For several reasons, it may not be possible for many organizations to create
enough vacancies for everybody to advance in their career. However, modern managers
encourage themselves and others to continue growing through various modes of education,
although, it does not necessarily lead to career advancement. Besides these four values, which
affect a managers work, the manager may have a strong work value. Work value refers to the
worth a person ascribes to the opportunity of work. If people have a strong work value then,
they may view work as an opportunity to :
a) Accept challenges, (b) serve others,(c) earn money, (d) enjoy prestige and status ( e) becreative or (f) be independent, etc.
ACTION GOAL ORIENTATION
Persons with higher sense of adequacy have clear goals about their future and are directed by
these goals. They usually do not think their goals in status terms (i.e., what they would like to
be) but in activity terms (i.e, what they would like to do). For example, when a junior manager
thinks that he would like to be the chief of marketing he is status-goal oriented. But when he
thinks that he would like to direct and influence the marketing policies of the company he is
action-goal oriented.
PRO-ACTION
Proactive people do things on their own without having to be told by anyone. Such initiative-
taking behavior leads to a high level of activity and experimentation. As contrasted to these
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people are reactive persons or conformists who spend most of their lives in doing things that
others expect them to do. Reactive people are other-directed, where as proactive ones inner-
directed. A superior managerial ethos requires more of pro-action than reaction.
INTERNAL RESOURCES
Managers with higher sense of adequacy are aware of their internal strengths and are guided by
these strengths. They are aware of their weaknesses but this awareness does not deter them from
acting positively or to look for opportunity for continuous self-improvement. They are open to
feedback and ready to learn from experience.
PROBLEM SOLVING ATTITUDE
A superior ethos requires that managers view themselves as problem solvers, rather than
problem-avoiders. These managers have a positive orientation to problem situations and do not
want to run away from problems. They tend to approach problem situations with optimism
because they have internal locus of control. ie., a strong belief that they can change the
environment through their own efforts.
SOCIALIZATION PROCESS
The process through which people are indoctrinated to accept the tradition and maintain the
homogeneity of ethos and behavior is termed as socialization. It is a process of adaptation by
which new members come to understand the basic values, norms, and customs for becoming
accepted members of an organization. The socialization process has the following stages
PREARRIVAL
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This stage tries to ensure that prospective members arrive at an organization with a certain set of
values, attitudes, and expectations. This is usually taken care of at the selection stage itself.
Selectors try to choose the right type of people, who they feel, will be able to fit the
requirements of an organization. Thus an organization, even before allowing an outsider to
join, makes an attempt to ensure a proper match, which contributes towards the creation of a
uniform culture within the organization. The views of the founding fathers of an organization as
well as the ethos of the present top management influences-consciously or inadvertently the
selection of the parameters of this proper match.
ENCOUNTER
After gaining an entry into the organization, a new member faces an encounter stage. There is
always a possibility of difference between his expectations of an organization and the OC. If the
expected image and OC matches, then encounter stage passes of smoothly leading to
confirmation of the image. If the imbalance between the two is acute, then person has usually
tow choices open. First, he undergoes further socialization, which detaches him from his
previous expectations and thus helps him get adjusted to the prevailing system. Second, he drops
out due to disillusionment. In both the cases the final result is the same, the status quo of
traditions and customs are maintained.
METAMORPHOSIS
People who have discovered an anomaly between their expectations and OC, but decided not to
drop out, enter into the metamorphosis stage. They must sort out their problems and go through
changes. Hence this is called metamorphosis. When this metamorphosis is complete, the
members develop a uniform perception of OC and feel comfortable with the organization and
job. Successful metamorphosis results in the members productivity being as per organizations
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norm, average commitment and lowered propensity to leave the organization. All these are
indications of typical or normative behavior.
TYPES OF ORGANIZATIONAL CULTURE
Organizational culture can vary in a number of ways. It is these variances that differentiate one
organization from the others. Some of the bases of the differentiation are presented below
Strong Vs Weak culture: Organizational culture can be labeled as strong or weak based on
sharedness of the core values among organizational members and the degree of commitment the
members have to these core values. The higher the sharedness and commitment, the stronger the
culture increases the possibility of behaviors consistency amongst its members, while a weak
culture opens avenues for each one of the members showing concerns unique to themselves.
Soft Vs Hard culture: Soft work culture can emerge in an organization where the organization
pursues multiple and conflicting goals. In a soft culture the employees choose to pursue a few
objectives which serve personal or sectional interests. A typical example of soft culture can be
found in a number of public sector organizations in India where the management feels
constrained to take action against employees to maintain high productivity. The culture is
welfare oriented; people are held accountable for their mistakes but are not rewarded for good
performance. Consequently, the employees consider work to be less important than personal and
social obligations.
Formal Vs Informal Culture: the work culture of an organization, to a large extent, is
influenced by the formal components of organizational culture. Roles, responsibilities,
accountability, rules and regulations are components of formal culture. They set the expectations
that the organization has from every member and indicates the consequences if these
expectations are not fulfilled.
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The below table presents some of the components of formal culture and their implication on
organizations.
TABLE 1: FORMAL COMPONENTS OF ORGANIZATIONAL CULTURE
Sl.
no
Component Description
Effect on Organizational
Culture
1 Mission/Vision The milestones to be reached Could be unrealistic
2 Policies
Statements designed to be guidelines
to behavioral decision
Policies, if not drafted properly
can provide leeway
3 ProceduresMethods of providing specific
guidelines
Can facilitate or create
obstacles in smooth functioning
4 RulesSpecific instructions for performing
a task
Rules could be a means or an
end in themselves
5
State of
Organizational
Development
Organization at young, growing,
maturing, or mature stage of
development
State of organizational
development has direct impact
on work culture
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Levels of Organization culture
Level 1 - At Level One the organizational culture can be observed in the form of physical
objects, technology and other visible forms of behavior like ceremonies and rituals. Though the
culture would be visible in various forms, it would be only at the superficial level. For example,
people may interact with one another but what the underlying feelings are or whether there is
understanding among them would require probing.
Level 2 - At Level Two there is greater awareness and internalization of cultural values. People
in the organization try solutions of a problem in ways which have been tried and tested earlier. If
the group is successful there will be shared perception of that success, leading to cognitive
changes turning perception into values and beliefs.
Level 3 - Level Three represents a process of conversion. When the group repeatedly observes
that the method that was tried earlier works most of the time, it becomes the preferred solution
and gets converted into underlying assumptions or dominant value orientation. The conversion
process has both advantages. The advantages are that the dominant value orientation guides
behavior, however at the same time it may influence objective and rational thinking.
Levels of Organization culture
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Level 1 - Visual organizational structures and
processes
(hard to decipher)
Level 2 - Strategies, goals, philosophies
(espoused justifications)
Level 3 - Unconscious, taken for granted beliefs,
perceptions, Thoughts and feelings
(ultimate source of values and action)
ARTIFACTS
ESPOUSED VALUES
BASIC UNDERLYING
ASSUMPTIONS
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The present study on Organizational culture and Climate has been carried out in BSNL,
Hyderabad. The sample size of employees is 100 who are executives and non-executives. As
per the requirements of the study, a closed end questionnaire with a five-point scale has been
formulated and they have been administered to the sample respondents to elicit their opinions
about the topic understudy. The sample respondents responded voluntarily and enthusiastically.
After collecting the opinions of the sample employees, the data have been processed, tabulated
and analyzed. The tables together with analysis have been summarized in the chapter.
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Table 5.1
Individual autonomy exist in BSNL
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 33 33.0
2 Disagree 27 27.0
3 Agree 40 40.0
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Interpretation
Table 5.1 denotes the opinions of sample respondents on the statement individual autonomy
exist in BSNL. Out of a total of 100 sample respondents, 40% of them Agreed with the
0
10
20
30
40
Strongly Disagree Disagree Agree Strongly Agree
3327
40
0%o
fRespo
nse
Responses
4 Strongly Agree 0 0.0
TOTAL 100 100
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statement. Of the remaining, 33 % of them strongly Disagreed and 27% Disagreed with the
statement. The above analysis indicates that individual autonomy partially exists in BSNL
Table 5.2
Position structure is clearly defined in BSNL
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0.0
2 Disagree 6 6.0
3 Agree 60 60.0
4 Strongly Agree 34 34.0
TOTAL 100 100
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Interpretation
Table 5.2 denotes the opinions of sample respondents on the statement Position structure is
clearly defined in BSNL. Out of a total of 100 sample respondents, 34% of them Strongly
Agreed and 60% of them Agreed with the statement. The remaining sample respondents who
account for 6% Disagreed with the statement. The above analysis indicates that Position
structure is clearly defined in BSNL.
Table 5.3
Management Encourages and Rewards Employees for Good work
0
20
40
60
Strongly Disagree Disagree Agree Strongly Agree
0 6
60
34
%of
Response
Responses
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0.0
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Interpretation
Table 5.3 denotes the opinions of sample respondents on the statement Management
Encourages and Rewards employees for good work. Out of a total of 100 sample respondents,
22% of them Strongly Agreed and 58% of them Agreed with the statement. The remaining
0
20
40
60
Strongly Disagree Disagree Agree Strongly Agree
020
58
22
%o
fRespo
nse
Responses
2 Disagree 20 20.0
3 Agree 58 58.0
4 Strongly Agree 22 22.0
TOTAL 100 100
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sample respondents who account for 20% Disagreed with the statement. Hence, the conclusion
is that Mechanisms exist in BSNL to reward the good work done by employees.
Table 5.4
Team spirit is High in BSNL
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0.0
2 Disagree 20 20.0
3 Agree 51 51.0
4 Strongly Agree 29 29.0
TOTAL 100 100
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Interpretation
Table 5.4 denotes the opinions of sample respondents on the statement Team spirit is High in
BSNL. Out of a total of 100 sample respondents, 29% of them Strongly Agreed and 51% of
them Agreed with the statement. The remaining sample respondents who account for 20.0%
Disagreed with the statement. The above analysis indicates that Good Team Spirit exists in
BSNL
Table 5.5
Employees are Honest and open in their interpersonal relations in BSNL
0
20
40
60
Strongly Disagree Disagree Agree Strongly Agree
0 20
51
29
%of
Response
Responses
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0.0
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Interpretation
Table 5.5 denotes the opinions of sample respondents on the statement Employees are Honest
and open in their interpersonal relations in BSNL. Out of a total of 100 sample respondents,
40% of them Strongly Agreed and 45% of them Agreed with the statement. The remaining
0
20
40
60
Strongly Disagree Disagree Agree Strongly Agree
0
15
4540
%o
fRespo
nse
Responses
2 Disagree 15 15.0
3 Agree 45 45.0
4 Strongly Agree 40 40.0
TOTAL 100 100
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sample respondents who account for 15.0% Disagreed with the statement. Therefore it can be
concluded that Employees are Honest and open in their inter-personal relations in BSNL
Table 5.6
Management controls the behavior of Employees
Sl.No
Choice of
Response
No. of
RespondentsPercent
1 Strongly Disagree 0 0.0
2 Disagree 13 13
3 Agree 62 62
4 Strongly Agree 25 25
TOTAL 100 100
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Interpretation
Table 5.6 denotes the opinions of sample respondents on the statement Management controls
the behavior of Employees. Out of a total of 100 sample respondents, 25% of them Strongly
Agreed and 62% of them Agreed with the statement. The remaining sample respondents who
account for 13.0% Disagreed with the statement. So, it can be understood that the management
of BSNL controls the behavior of Employees.
Table 5.7
Leadership Style in BSNL
0
20
40
60
80
Strongly Disagree Disagree Agree Strongly Agree
013
62
25
%of
Response
Responses
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Authoritarian 80 80
2 Democratic 12 12
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Interpretation
Table 5.7 examines the opinions of sample respondents on the type of Leadership prevailing in
the BSNL. Of the 100 sample respondents, 80% of them felt that authoritarian leadership style
prevails in the company where as 12% of them felt that democratic leadership style exist in the
company. The remaining sample respondents 8% of them said that Goal Directed leadership
0
20
40
60
80
Authoritarian Democratic Goal Directed
80
12 8%ofResponse
Responses
3 Goal Directed 8 8
TOTAL 100 100
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style exist in the company. Hence, the conclusion drawn from the analysis is that Authoritarian
leadership style mostly prevails in BSNL.
Table 5.8
Policies of BSNL are employee Oriented
0
20
40
60
Strongly Disagree Disagree Agree Strongly Agree
013
41 46
%o
fRespon
se
Responses
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0
2 Disagree 13 13
3 Agree 41 41
5 Strongly Agree 46 46
TOTAL 100 100
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Interpretation
Table 5.8 denotes the opinions of sample respondents on the statementPolicies of BSNL are
Employee Oriented. Among the sample of 100 respondents, 46% of them Strongly Agreed and
41% of them Agreed with the statement. The remaining sample respondents who account for
13.0% Disagreed with the statement. Therefore, the conclusion drawn from the analysis is that
the statement under study is mostly true.
Table 5.9
Managerial Values help in achieving the Goals
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0
2 Disagree 13 13.0
3 Agree 58 58.0
4 Strongly Agree 29 29.0
TOTAL 100 100
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Interpretation
Table 5.9 denotes the opinions of sample respondents on the statement individual autonomy
exist in BSNL. Out of a total of 100 sample respondents, 29% of them Strongly Agreed and
58% of them Agreed with the statement. The remaining sample of respondents who account for
13% Disagreed with the statement.
Table 5.10
Employees are treated with Equity
0
20
40
60
Strongly Disagree Disagree Agree Strongly Agree
0
13
58
29
%of
Response
Responses
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0.0
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Interpretation
Table 5.10 reflects the opinions of sample respondents on the statement Employees are treated
with equity. Of the 100 respondents, 36% of them Strongly Agreed and 55% of them Agreed
with the statement. The remaining sample of respondents who account for 9% Disagreed with
the statement. Hence it is understood that employees in BSNL are treated with equity.
0
20
40
60
Strongly Disagree Disagree Agree Strongly Agree
0
9
55
36
%o
fRespo
nse
Responses
2 Disagree 9 9.00
3 Agree 55 55.00
4 Strongly Agree 36 36.00
TOTAL 100 100
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Table 5.11
Job security is provided to employees
0
50
100
Strongly Disagree Disagree Agree Strongly Agree
0 0 0
100
%o
fResponse
Responses
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0.0
2 Disagree 0 0.0
3 Agree 0 0.0
4 Strongly Agree 100 100
TOTAL 100 100
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Interpretation
Table 5.11 denotes the opinions of sample respondents on the statement Job security is
provided to employees . Of the 100 sample respondents all of them i.e, 100% of them Strongly
Agreed with the statement. This clearly states that BSNL provides good Job security to its
employees.
Table 5.12
Promotional Opportunities exist in BSNL
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0
2 Disagree 11 11.00
3 Agree 52 52.00
4 Strongly Agree 37 37.00
TOTAL 100 100
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Interpretation
Table 5.12 denotes the opinions of sample respondents on the statement Promotional
opportunities exist in BSNL. Out of a total of 100 sample respondents, 37% of them Strongly
Agreed and 52% of them Agreed with the statement. The remaining sample of respondents who
account for 11% Disagreed with the statement. From above it can be concluded that promotional
opportunities are available in the company.
Table 5.13
Employees in BSNL are proactive
0
20
40
60
Strongly Disagree Disagree Agree Strongly Agree
011
5237
%o
fRespon
se
Responses
Sl.No Choice of No. of Percent
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Interpretation
Table 5.13 denotes the opinions of sample respondents on the statementEmployees in BSNL
are proactive. Out of a total of 100 sample respondents, 55% of them Strongly Disagreed and
35% Disagreed with the statement. While the remaining sample of respondents who account for
0
20
40
60
Strongly Disagree Disagree Agree Strongly Agree
55
35
100
%o
fRespo
nse
Responses
Response Respondents
1 Strongly Disagree 55 55.00
2 Disagree 35 35.00
3 Agree 10 10.00
4 Strongly Agree 0 0.0
TOTAL 100 100
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10% Agreed with the statement. From above it can be concluded that Employees are not Pro-
Active in BSNL.
Table 5.14
Workloads are evenly Distributed based upon positions in BSNL
Sl.NoChoice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0
2 Disagree 57 57.00
3 Agree 31 31.00
4 Strongly Agree 12 12.00
TOTAL 100 100
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Interpretation
Table 5.14 denotes the opinions of sample respondents on the statementWorkloads are evenly
distributed, based upon the positions. Out of a total of 100 sample respondents, 12% of them
Strongly Agreed and 31% of them Agreed with the statement. The remaining sample of
respondents who account for 57% Disagreed with the statement. From above it can be
concluded the workloads are not evenly distributed based upon the positions.
Table 5.15
Commemoration of special events is common in BSNL
0
20
40
60
Strongly Disagree Disagree Agree Strongly Agree
0
57
3112
%of
Response
Responses
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 0 0.0
2 Disagree 0 0.0
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Interpretation
Table 5.15 denotes the opinions of sample respondents on the statementCommemoration of
special events is common in BSNL. Out of a total of 100 sample respondents, 67% of them
Strongly Agreed and 33% of them Agreed with the statement. Hence it is clearly understood that
Commemoration of special events is common in BSNL
0
20
40
60
80
Strongly Disagree Disagree Agree Strongly Agree
0 0
33 67
%o
fRespo
nse
Responses
3 Agree 33 33.00
4 Strongly Agree 67 67.00
TOTAL 100 100
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Table 5.16
Seniors give adequate support & guidance to their juniors at work
0
10
20
30
40
Strongly Disagree Disagree Agree Strongly Agree
2028
40
12%o
fRespon
se
Responses
Sl.No
Choice of
Response
No. of
Respondents
Percent
1 Strongly Disagree 20 20.0
2 Disagree 28 28.0
3 Agree 40 40.0
4 Strongly Agree 12 12.0
TOTAL 100 100
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Interpretation
Table 5.16 denotes the opinions of sample respondents on the statement seniors give adequate
support & guidance to their juniors at work. Out of a total of 100 sample respondents, 12%
Strongly Agreed and 40% of them Agreed with the statement. Out of the remaining sample of
respondents 20% of them strongly Disagreed and 28% of them Disagreed with the statement.
From above it can be seen a mixed response50% for and 50% against the statement.
FINDINGS AND SUGGESTIONS
In BSNL, it appears that individual autonomy partially exists as majority of the sample
respondents S. Autonomy refers to individual freedom to exercise ones responsibility.
Individual autonomy is the degree to which employees are free to manage themselves and to
have considerable decision making power. But in BSNL autonomy is relatively low. This may
be due to the rule orientedness as well as the centralized authority orientation of managers. So
the company needs to give autonomy to its employees clearly specifying the limits of authority.
As evidenced from the study, position structure is clearly defined in BSNL. Position structure
means the degree to which objectives of the job and methods for accomplishing it are established
and communicated to individual employees. In BSNL, service is a continuous process and
provision of service is time bound. Hence superiors always inform subordinates about the work
to be accomplished on a daily, weekly, biweekly basis. It is to be stated here that the methods
for executing the work in different areas are well established and subordinates have to follow the
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established procedures. Besides this, superiors continuously monitor the work of the
subordinates. In short, position structure is clearly defined in BSNL.
In BSNL, Management Encourages and Rewards employees for Good work. Mechanisms exist
to reward the good work done by employees. This is a fact that the company instituted Sanchar
Sarathi award for executives, Sanchar sewa pathak award for Group-C employees and
Sanchardhoot for regular mazdoors. In this way, good mechanisms exist in the company to
reward the good work done by employees.
Team spirit is very high in BSNL. The success of organizations to a considerable extent depends
upon the integrated and coordinated efforts of employees. The management having realized the
importance of team spirit created various committees and these committees are functioning
effectively in the organization. These committees act suitably to solve the problems that arise
from time to time. At the same time, these committees continuously monitor the progress of
work. During the training programs also the management emphasizes the importance of team
work. This clearly indicates that there is good team work in BSNL.
In the study, it appears that employees are partially honest and open in their interpersonal
relations as evidenced from the opinions of sample respondents. It indicates good organizational
culture and climate in BSNL. In view of this, it is suggested to BSNL to educate its employees
about the importance of honesty and openness in interpersonal relations.
In BSNL, management always controls the behavior of employees. Control refers to the degree
to which the behavior of the organizational members is formalized. It also refers to the extent of
incentives given for higher effort and performance. In BSNL, control systems are well defined
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with regard to punctuality, sincerity, discipline, leaves etc. These controls are well defined and
properly practiced. In view of this, it is suggested to continue the existing control practice.
The leadership in BSNL is autocratic as felt by majority of the sample respondents. This may be
due to the inherent behavior of employees. It is to be noted that employees do not like autocratic
leadership style. In fact, they like democratic leadership style. Hence it is suggested to the
management of BSNL Hyderabad to mould the leadership style of managers from autocratic
style to democratic style.
The statementpolicies of BSNL is employee oriented is felt to be mostly true by majority of
the sample respondents. As a matter of fact, the policies of the company are quite good. For
instance, the company gives what it is due to all its employees. It provides various welfare
facilities to its employees. It also provides social security measures like provident fund, gratuity
etc. in addition to this, the company provides medical facilities to all its employees. In fact, all
the HR policies are transparent and fair. In view of this, it is suggested to BSNL to continue the
present employee oriented policies.
IN BSNL managerial values helps in achieving the goals. Managerial values refer to autonomy,
equity, security and opportunity. As mentioned earlier, autonomy is partially exists in the
company. Even important variable like opportunities for growth and development are available
in the company. The company follows the principles of equity and it provides job security.
Hence, managerial values help in achieving the goals. However, the management of BSNL
should train and develop its managers and officers in such a way that they follow good values
which help in achieving the goals of the organization.
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The statementBSNL treats its employees with equity is felt to be mostly true by majority of
the sample respondents. The company treats its employees with equity. Under no circumstances
discrimination is shown among employees. The company rewards its employees on the basis of
their merit and worth rather than other considerations. An organization where equity is followed,
there good organization climate and culture prevails in the company.
BSNL provides job security. It is a fact that BSNL is a PSU. Hence, 100% job security is there
for all the employees. As job security exists for employees, good organization culture and
climate exists in the company.
It is observed in the study that promotional opportunities are available to employees. It is to be
noted that for executives, promotional opportunities are rare. Hence it is suggested to the
company to provide promotional opportunities to all its employees uniformly.
It is understood from the study that employees of BSNL are not proactive. Proactiveness refer to
taking self-initiation. Proactive people do things on their own without waiting for instruction to
get the work done. Such initiative taking behavior leads to a high level of activity and
experimentation. In BSNL subordinates wait for instructions from superiors to carryout the work
as there is not enough freedom to take initiative and do things on their own. The management of
the company should make people proactive. This can be achieved by restructuring the
organizations as well as by entrusting authority along with responsibility to employees.
In BSNL, commemoration of special events is common. The company celebrates BSNL
formation day on 1st of October every year. On this day, all the employees have a social
gathering, the company provides breakfast and lunch facilities. Even games are being played
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and the winners are distributed prizes. This discussion reveals that good organizational culture
and climates in the company.
QUESTIONNAIRE
A study on Organisational Culture and Climate in BSNL, Hyderabad
PERSONNEL DETAILS
Name:
Age:
Educational Qualifications:
Cadre:
Experience:
Dept/section in which employed:
ORGANISATIONAL CULTURE AND CLIMATE SURVEY
A number of statements are given here under. Please state your opinion on a five-point scale of
each statement given below.
1) Individual autonomy exists in BSNL
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i) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
2) Position structure is clearly defined in this organizationi) Strongly Disagreeii) Disagreeiii)
Agree
iv)Strongly Agree3) Management Encourages and Rewards Employees for Good work
i) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
4) Team spirit is very high in this organizationi) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
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5) Employees in this organization are honest and open in their inter-personal relationsi) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
6) Management controls the behavior of employeesi) Strongly Disagreeii)
Disagree
iii)Agreeiv)Strongly Agree
7) What type of leadership style prevails in BSNLi) Authoritarianii) Democraticiii)Goal directed
8) The policies of the organization are employee orientedi) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
9) Managerial values positively help in achieving the goalsi) Strongly Disagreeii) Disagree
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iii)Agreeiv)Strongly Agree
10)Employees are treated with equity in this organizationi) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
11)Employees are provided job security in this organizationi) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
12)Promotional opportunities exist in this organizationi) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
13)Employees in this organization are proactivei) Strongly Disagreeii) Disagreeiii)Agree
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iv)Strongly Agree14)Employees use feedback for self-development
i) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
15)Commemoration of special events is common in this organizationi) Strongly Disagreeii)
Disagree
iii)Agreeiv)Strongly Agree
16)New members accept the values, norms and customs and get adjusted with thejobsi) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
17)Employee turnover in this organization is highi) Strongly Disagreeii) Disagreeiii)Agreeiv)Strongly Agree
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