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tirupati management control system In the following paper I have described an incentive scheme used in a railway workshop as a Management Control tool to improve
Submitted by apoorvau on March 12, 2006
Category: Technology
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In the following paper I have described an incentive scheme used in a railway workshop as a Management Control tool to improve productivity. This scheme was successfully introduce at Tirupathi while I was in charge of the workshop. The scheme is unique because it has inbuilt systems to motivate workers through peer pressure to improve productivity. The productivity achieved over and above a base level is compensated monetarily. Since motivation to produce is inbuilt into the system, the supervisors have spare time to concentrate on logistics such as arranging materials and tools rather than supervision of workers per se.
Workers want to produce more to get more compensation. Management is able to achieve its objective of higher production at much lower marginal cost. The incentive scheme as such addresses the issue of goal congruence successfully.
Background
Indian Railways is a large organization with 1.3 million strong workforce. It has an extremely extensive and large infrastructure and asset base. The rolling stock mainly locomotives, coaches and wagons form an important infrastructural backbone of the railways. In other words the rolling stock is the primary revenue generators for the railways. As such it is paramount that the rolling stock is in good fettle at all times so as to maximize productivity.
The maintenance of rolling stock in the Indian Railways is a two stage process namely routine maintenance and periodic overhauling. After every trip (e.g. after going to Delhi and back for coaches of Karnataka Express) the coaches are stabled in the yard. During this period they are attended for cleaning, watering and roadworthiness. Once in a year the coaches are sent to major workshops for Periodic Overhaul (POH). During periodic overhaul, all the subassemblies are removed, tested, repaired and fitted back. In addition all the amenity fittings are replaced. The coach is painted afresh and dispatched. There are around 50...
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