E2-E3 Management PDF

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E2-E3/Management Index INDEX Chapter Page Name No. No. 1 INDUSTRY DRIVEN TRANSFORMATIONS 2 2 EFFECTIVE COMMUNICATION SKILLS 12 3 PROJECT MANAGEMENT 22 4 ISO 9001:2015 QMS 30 5 RESTRUCTURING & NEW ROLES 36 6 ROLE & RESPONSIBILITY 47 7 TRANSACTIONAL ANALYSIS 53 8 MOTIVATION 61 9 COST MANAGEMENT 69 10 ASSET MANAGEMENT 77 11 ERP AND E OFFICE 108 12 CAPITAL BUDGETING & REVENUE BUDGETING 130 TRADITIONAL AND DIGITAL MARKETING OF 13 137 PRODUCT AND SERVICES 14 CONTRACT MANAGEMENT 150 15 ENTERPRISE SALES 155 16 RETAIL SALES 161 17 OFFICIAL LANGUAGE 168 18 RIGHT TO INFORMATION ACT 173 19 TIME AND STRESS MANAGEMENT 178 20 BSNL CDA RULES 191 21 GENDER ISSUES 228 22 STAFF WELFARE 233 23 RESERVATION POLICY 237 INTRODUCTION TO OCSC, TEEVRA , SANCHAR 24 AADHAR, SANCHAR SOFT AND FMS 241 APPLICATIONS E2-E3 Management Version 3.0 April 2021 Page 1 of 257 For Restricted Circulation E2-E3 Management Industry driven Transformations 1 INDUSTRY DRIVEN TRANSFORMATION 1.1 LEARNING OBJECTIVES This chapter deals with the following information:  Key Digital Transformation Priorities  What Happens When Your Company Digitally Transforms?  Why Industries Have Shifted To Tech Enabled Transformation?  Changing Dynamics In Industries  Faster-Moving Ecosystems Of Customers And Suppliers  Digital Disrupters  The Digital Transformation Of Industries  The Transformative Power Of Technology  Digital Transformation: Value At Stake For Society And Industry  Examples Of Digital Transformation In Marketing 1.2 OVERVIEW It is the process of analyzing customer needs and leveraging technology to improve the end-user experience. Digital transformation is about evolving your business by experimenting with new tech and rethinking your current approach to common issues.  Are you Digitally Mature?  How far into Your Digital Transformation journey are you?  Have you struggled to achieve your ambitions?  Do you know Where to begin?  Industry is Transforming but the transformation is hard. 1.3 KEY DIGITAL TRANSFORMATION PRIORITIES Around the globe, modern enterprises are making investments in digital transformation a priority to evolve the way their facilities and assets perform. 1.3.1 KEY DIGITAL TRANSFORMATION PRIORITIES 75% making sense of data utilizing AI 74% fostering collaboration 71% increased safety and real-time visualization through Advanced Process cyber security capabilities and Engineering design The push toward digital transformation also promises significant new business value across a broad variety of industries but the reality is that, for many businesses, digital transformation is more difficult to achieve than expected. E2-E3 Management Version 3.0 April 2021 Page 2 of 257 For Restricted Circulation E2-E3 Management Industry driven Transformations Table 1. Percentage sharing 81% 86% 42% Have had digital projects of businesses have been are behind schedule or fail, suffer delays, or get prevented from pursuing at risk of falling behind scaled back new transformation projects and digital services 1.3.2 HOW TO OPTIMISE YOUR DIGITAL TRANSFORMATION RETURN ON INVESTMENT?  Seamlessly share data and insights across multiple platforms.  Respond to unforeseen events automatically with highly adaptive implementations  Mitigate risk and protect critical data with stringent cyber security approaches.  Back your investment with a multidisciplinary ecosystem of technology partners. 1.3.3 WHAT HAPPENS WHEN YOUR COMPANY DIGITALLY TRANSFORMS? a) Value chains: become digital nervous systems that can quickly adapt to market conditions b) Your brand: remains customer-centric. c) Products: become information streams enabling transparency and traceability across the design-to-dispose lifecycle d) Workers: become problem solvers who bring judgment, imagination, and improvisation for agility and innovation e) Work processes: become information loops enabling closed-loop feedback, precision control, and continuous improvement f) Physical assets: become information appliances that are self-aware and increasingly autonomous. 1.3.4 WHY INDUSTRIES HAVE SHIFTED TO TECH ENABLED TRANSFORMATION? Shifting market dynamics and rising competition compel industrial companies to overhaul their organizations to harness technology. The most earth-shattering technological breakthroughs are rarely felt all at once. Individual products or innovations may gradually prove their value, spawn other applications, and eventually become part of a broader platform with the potential to reshape business models. As such, incremental progress can suddenly lead to sweeping change that leaves companies scrambling to catch up. The same holds true for the rate at which entire sectors embrace technological advancements. Some industries incorporate cutting-edge technologies in response to disruption think the digital transformation of entertainment and media. The FAANG (Facebook, Amazon, Apple, Netflix, and Google) and BAT (Baidu, Alibaba, and E2-E3 Management Version 3.0 April 2021 Page 3 of 257 For Restricted Circulation E2-E3 Management Industry driven Transformations Tencent) companies, for example, are regularly resetting the bar for how businesses engage with their customers and suppliers. Their influence on the business landscape and consumers often carries over to other industries. As these trends sweep across the business landscape, the industrial sector finds itself on the cusp of unprecedented upheaval. Periods of intense change often magnify the importance of placing the right strategic bets. A tech-enabled transformation can equip industrial companies to increase revenues, expand margins, and pursue new revenue streams with different business models. Organizations that move aggressively and develop comprehensive strategies for integrating technology into their operations will maximize their odds of capturing the value at stake. By contrast, companies that choose to sit on the side-lines are essentially ceding their competitive advantage. 1.4 CHANGING DYNAMICS IN INDUSTRIES There are three factors which are reshaping the industrial sector.  A changing workforce  Faster-moving ecosystems of customers and suppliers  Digital disrupters. 1.4.1 A Changing Work-force Evolving workforce expectations and increased automation are changing not only the demographics of the workforce but also the ways, in which industrial organizations must adjust their efforts in attracting, retaining and developing talent. Millennial gravitate to jobs supported by digital tools rather than numerous manual tasks. They also actively seek to learn and grow on the job and aren’t shy about jumping to a new company in search of advancement. To remain competitive with other sectors, industrial companies must embrace technology and replace manual tasks with more thought-provoking, challenging roles. Consider, for example, a financial controller in an industrial company. Today, the controller might spend 60 to 70 percent of the workday stitching together reports from different data sources for business partners. If these tasks were automated, the controller could evolve to become a strategic thought partner for the business. At the same time automation, data, and connectivity are changing the nature of work. The overall impact of technology on all facets of the industrial sector, from the shop floor to distribution centers, means that most jobs will evolve and require more tech-savvy employees. 1.4.2 Faster-Moving Ecosystems Of Customers And Suppliers To date, industrials have lagged behind other sectors, such as retail and banking, in their ability to integrate digital technologies into operations. In retail, Wal-Mart has invested in a range of technologies: from autonomous cleaning robots that free up workers’ time to virtual-reality headsets used in training associates. And a number of retailers have at least partially digitalized their stores, increasing visibility and personalization. Likewise, banking is undergoing its own transformation, fueled by the digitalization and integration of processes and tools to make employees more productive. Even industrial-adjacent sectors have been quicker on the uptake. Mines are increasingly conducting maintenance as needed rather than on a fixed schedule using sensors and machine learning to implement predictive maintenance in 20-ton heat exchangers. The model was able to predict when the exchangers would fail, so the E2-E3 Management Version 3.0 April 2021 Page 4 of 257 For Restricted Circulation E2-E3 Management Industry driven Transformations frequency of repair visits adapted from once every 70 days to once every 160 to 200 days. And with dozens of heat exchangers across the operation, the cost savings have been substantial. In the logistics industry (a downstream customer of the commercial vehicle industry), leading shippers and carriers have incorporated digital and analytics into demand forecasts and route optimization. These technologies have enabled some shippers to trim inventories by up to 75 percent and warehousing costs by 15 to 30 percent—all while increasing labor efficiencies as much as 80 percent. Similarly, third-party logistics companies have deployed connectivity and analytics to enhance routing, resulting in efficiencies of up to 25 percent. 1.4.3 Digital Disrupters Since the industrial sector is capital intensive and relies on R&D, companies may believe they are insulated from the incursion of digital attackers—that notion is misplaced. Amazon’s B2B business, for example, reached $10 billion in revenues in 2018. In business to business transactions, one company re-sells goods and services produced by others (e.g., a retailer buying the end product from the food manufacturer).The reason is that Amazon has one advantage over its competitors: an ability to offer a greater variety of products than incumbent B2B companies. Fast-moving tech start-ups have also begun to enter advanced sectors such as logistics and pharmaceuticals, in some cases striking partnerships with established companies. For example Fast Radius, which offers 3-D printing on demand, has teamed up with UPS on the glob Expansion of its production capabilities. The company’s vision is to offer a 24-hour turnaround on the Production and shipping of parts, allowing manufacturers to take advantage of a virtual inventory 1.5 FOREWORD Digital Transformation of Industries (DTI) is a project launched by the World Economic Forum in 2015 as part of the Future of the Internet Global Challenge Initiative. It is an ongoing initiative that serves as the focal point for new opportunities and themes arising from latest developments and trends from the digitalization of business and society. It supports the Forum’s broader activity around the theme of the FOURTH INDUSTRIAL REVOLUTION. A key component of the DTI project in 2015 has been the quantification of the value at stake for both business and society over the next decade from the digital transformation of six industries. The “compass” for these industry sectors is being set and it is imperative that all stakeholders collaborate to maximize benefits for both society and industry. Digitalization is one of the most fundamental drivers of transformation ever and, at the same time, a unique chance to shape our future. The World Economic Forum is committed to helping leaders understand these implications and supporting them on the journey to shape better opportunities for business and society. In 2016, the DTI initiative will focus on the impact of digital transformation on an additional 10 industries, further deep-dives into industries from this year’s project, as well as examine a number of cross-industry topics such as platform governance, societal impact, and policy and regulation. The report was prepared in collaboration with Accenture, whom we would like to thank for their support. We would also like to thank the Steering Committee, the Working Group members, as well as the more than 200 E2-E3 Management Version 3.0 April 2021 Page 5 of 257 For Restricted Circulation E2-E3 Management Industry driven Transformations experts from business, government and academia and over 100 Industry Partners who were involved in shaping the insights and recommendations of this project. 1.5.1 THE DIGITAL TRANSFORMATION OF INDUSTRIES Rapid advances in digital technology are redefining society. The plummeting cost of advanced technologies (a top-of the-range Smartphone in 2007 cost $499; a model with similar specifications cost $10 in 2015) is revolutionizing business and society. And the combinatorial effects of these technologies – mobile, cloud, artificial intelligence, sensors and analytics, among others – are accelerating progress exponentially. Technology is the multiplier. Digital transformation provides industry with unparalleled opportunities for value creation. It used to take Fortune 500 companies an average of 20 years to reach a billion dollar valuation; today’s digital start-ups are getting there in four. Digital technologies are creating new profit pools by transforming customer expectations and how companies can address them. At the same time, digitalization could produce benefits for society that equal, or even surpass, the value created for industry – the mass adoption of autonomous vehicles and usage-based car insurance, for instance, could save around 1 million lives by 2025. At present, digital transformation is not well understood, and a number of myths are obscuring the path to realizing its potential for value creation. The initiative demystifies some of the most common myths about digital, revealing, for example, the true extent of disruption by digital start-ups and how the impact of automation on employment is likely to be very different from today’s received wisdom on the subject. Action will be needed to realize the benefits to society and industry of digitalization The importance of realizing the combined value of digital transformation cannot be overstated, given digitalization’s central role in tackling many of the challenges we face today. For example, the world’s energy and natural resource usage is unsustainable. Also, further increases in life expectancy are at risk without resolving the growing cost structures of overburdened health systems. Yet the benefits of digitalization will not accrue automatically to industry or society, and there is a risk that the promise of digital transformation will go unfulfilled. Moreover, organizations do not always understand what impact their digital initiatives will have on different aspects of society – from employment to the environment and beyond – or what responsibility they should bear for addressing any unintended consequences of digitalization. 1.6 THE TRANSFORMATIVE POWER OF TECHNOLOGY The cost of advanced technologies is also plummeting. Consider just one example: a top-of-the-range drone cost $100,000 in 2007; in 2015 a model with similar specifications could be bought for $500. As technology becomes cheaper, world demand is being met at lower price points and fueling an explosion of devices with ever more connections. Sophisticated artificial intelligence devices are now mass-market and better known as personal assistants by the names of Alexa. In less than five years, basic queries such as “What is the time?” have quickly moved onto more sophisticated requests such as “Does the person I just talked to like me?” Technology has been the multiplier. The combinatorial effects of these technologies mobile, cloud, artificial intelligence, sensors and analytics among others are accelerating progress exponentially. Once we overcome physical and chemical limitations that are inhibiting exponential gains in mass-market technologies such as battery storage and wireless charging, it is likely that the pace of change will accelerate even faster. E2-E3 Management Version 3.0 April 2021 Page 6 of 257 For Restricted Circulation E2-E3 Management Industry driven Transformations 1.6.1 INDUSTRY DIGITAL INITIATIVES IDENTIFIED IN PHASE 1 OF THE DTI PROJECT Media 1) Personalized Advertising. 2) Personalized Content 3) Data Privacy and Transparency Reform 4) Physical: Digital Media becomes Physical. Health 1) Patient Engagement at Scale 2) Precision Medicine 3) Robotics 4) Medical Printing 5) Intelligent Devices. Logistics 1) Analytics as a Service 2) Drones 3) 3D Printing 4) Shared Warehouse Capacity 5) Autonomous Trucks 6) Digitally Enhanced Cross Border Platforms Automotive 1) Infotainment 2) Connected Service and Maintenance 3) Automotive Data Marketplace 4) Connected Infrastructure 5) Self-driving Electricity 1) Energy Storage Integration 2) Energy Management 3) Real-time Supply and Demand Platform 4) Connected and Interoperable Devices Consumer 1) Data as an Asset 2) Data Privacy and Transparency 3) Physical Store Transformations E2-E3 Management Version 3.0 April 2021 Page 7 of 257 For Restricted Circulation E2-E3 Management Industry driven Transformations 4) E-commerce 5) Smart Factories 1.6.2 DIGITAL TRANSFORMATION: VALUE AT STAKE FOR SOCIETY AND INDUSTRY a) AUTOMOTIVE- Driverless cars will be significant in automotive in the long term, but even with falling technology costs, adoption rates make it unlikely that autonomous vehicles will form a major proportion of car sales within the next decade. Regulatory constraints exist in some markets, preventing original equipment manufacturers (OEMs) from operating as direct-to-market dealers. Second, without democratizing the flow of profits from usage-based insurance, the telemetric solutions that underpin this business model are unlikely to be installed as standard in most cars. As a consequence, efforts to reduce the global death toll from road accidents (currently 1.25 million people a year) are being held back. b) CONSUMER- Consumer industries in aggregate are also the largest industry with a global market size of over $15 trillion, from agriculture to retail. We have identified four digital transformation themes – consumer data flow and value capture, experience economy, Omni-channel retail and digital operating model – that we expect to play an important role in the future evolution of consumer industries. The single largest theme we have assessed so far has been Omni-channel retail. Time savings from shopping online and fewer single-driver cars on the road, coupled with alternative last-mile delivery options such as drones, can have a significant impact on emissions. c) ELECTRICITY- In economies transitioning to a lower carbon, more decentralized energy system, incentives can be created by regulators and policy-makers to optimize the electricity system. Our estimates of the societal benefits are modest and include just three factors: value creation to customers, reduction in carbon emissions and net job creation. d) LOGISTICS- The largest impact of digitalization to the logistics industry is likely to come from crowd sourcing. It will allow newer entrants to grab a share of the market from existing players. At the same time, it will allow smaller trucking companies to improve their utilization levels by as much as 20%, which could provide uplift to their bottom line. As these platforms offer better rates, convenience and real-time tracking, it could lead to savings of $789 billion to the customers. Digital in logistics alone has the opportunity to reduce carbon emissions by 10-11% by 2025. e) MEDIA- The media industry is already more digital than many other industries, having been transformed by several waves of innovation – desktop internet, mobile, social and now, the Internet of Things. There are significant opportunities for media enterprises if they can successfully personalize their content and adverts to engage the user, create new services that bridge the physical and digital words, and industrialize their content production and monetization processes. The sector also faces some significant barriers to realizing value from digitalization. Notably, intellectual property and regulatory frameworks have not kept pace with customer behavior, forcing the industry to make a choice between defending outdated frameworks and evolving legal and commercial frameworks to better meet the needs of customers. E2-E3 Management Version 3.0 April 2021 Page 8 of 257 For Restricted Circulation E2-E3 Management Industry driven Transformations Table 2. Media transformational impact Traditional Digital Marketing Transformational Impact Marketing Channel Channel Print materials Digital materials Reduce cost of print and distribution; ability to score/ grade prospects based on digital interactions Print mail campaigns Email campaigns Reduce cost of print and postage; greater scale and personalization Print/billboard Social media advertising Personalized targeting; lookalike advertising audience targeting Brick-and-mortar Website/ecommerce site Eliminate rent/utilities; storefront accessibility and scale; opportunity to nurture prospects at scale Loyalty Club Card Mobile App Reduce signup friction; reduce cost of printing cards; ability to personalize promotions and trigger offers in real-time; opportunity to push offers and messaging out to customers. f) HEALTHCARE- We have identified four digital themes – smart care, care anywhere, empowered care and intelligent healthcare enterprise – that will be of crucial importance to the digital transformation of healthcare over the next decade. Our recommendations for businesses include formulating an outside-in strategy (through shifting the focus from managing inputs to delivering medical outcomes), creating a culture of iterative innovation and championing the customer experience. For governments and policy leaders, recommendations include liberating data sources, investing in data standards and infrastructure, and establishing interoperability requirements on a global level. 1.7 EXAMPLES OF DIGITAL TRANSFORMATION IN MARKETING 1.7.1 Digital transformation helps marketers connect with individual customers in “welcome to marketing in the age of the customer,” We take a close look at the most popular digital tools and how marketers can leverage them across the entire customer lifecycle. The entire post is well worth a read, and serves as a great primer on how technologies ranging from cloud computing to artificial intelligence can help you get closer to customers. The “on-demand economy” has quickly grown from a few upstart apps that hire errand runners and hail cars for busy urbanites to a global movement to, as Forbes put it, “Uberize the entire economy.” A combination of Smartphone ubiquity, electronic payment systems, and apps designed to match demand (consumers) to supply (gig workers) in real time has created a world in which nearly anything you might want is just a swipe and tap away, around the clock. E2-E3 Management Version 3.0 April 2021 Page 9 of 257 For Restricted Circulation E2-E3 Management Industry driven Transformations Talk about digital transformation! With everything from pizza delivery to child care now available at their fingertips, customers are expecting more and more companies and industries to embrace digital as their primary means of doing business. For service departments, that means greater expectations for 24/7 problem-solving on the customer’s channel of choice. But it also means greater opportunities to delight buyers and win more business. Self-service is a service agent’s best friend. The self-service portal is a great example. These user-facing tools offer features like password reset, self-logging of incidents, service requests, and knowledge base searches. They can also include more interactive services like collaborative spaces, chat services, and embedded social media feeds that are relevant to service issues. AI plays a key role in the digital transformation of service- Bringing artificial intelligence into your service organization is a prime example of the power of digital transformation. AI powered chat bots that answer simple customer inquiries serve as a welcoming presence on your website, reducing the time customers have to wait to reach an agent. Deploying chat bots to handle level one inquiry also frees up service personnel to spend time on more sensitive cases. AI-powered bots can serve as the entry point into intelligent case routing systems. When a customer’s query is too complex for the Chabot to handle, natural language processing helps map the question to the best available expert to resolve the situation. 1.7.2 Examples of digital transformation in banking Not so long ago, the majority of transactions were handled in person by bank tellers. Automated teller machines (ATMs) came along and streamlined the basic transaction process, extending business hours and reducing wait times and dependencies on human employees for cash withdrawals and other popular transactions. Over time, atm technology has evolved to accommodate cash and check deposits, more secure transactions, and support for multiple accounts, including credit cards and mortgages. More recently, pcs and mobile devices have given way to online and mobile banking, and cashless payment systems. Consumers now conduct more and more bank business via the web, including paying bills and sending funds directly to friends and family. Mobile banking apps let users take snapshots of paper checks to make remote deposits, and a new wave of payment systems, including paypal and apple pay, let consumers pay for everyday purchases with accounts linked directly to their phones, no cash or plastic card required. 1.7.3 Examples of digital transformation in insurance Web and app-based self-service portals make it easy for consumers to comparison shop, enroll in coverage, use multiple agents and carriers for different types of insurance (home, car, life, and so on), and file claims. In fact, much of this is now possible without the need to actually speak to an agent, which saves time for consumers and money for the insurance companies. What’s notable about digital transformation in insurance is the role the Internet of Things is playing in revamping the industry. Inexpensive, IoT-enabled sensors are giving insurers access to a wealth of data that’s informing industry forecasting and claim reviews alike. Take auto insurance as an example: In-vehicle sensors monitor actual driving habits, rewarding consumers who routinely drive safely under the speed limit or log fewer-than-average miles. Sensors connected to phones could also be used to deter texting while driving by disabling a driver’s messaging apps while their car is in motion. Connecting vehicles to wearable devices with blood alcohol measurement E2-E3 Management Version 3.0 April 2021 Page 10 of 257 For Restricted Circulation E2-E3 Management Industry driven Transformations capabilities could help prevent drunk driving by temporarily disabling the engine, cutting risk for insurance carriers while also making roads safer for everyone. 1.8 CONCLUSION The Fourth Industrial Revolution has data analytics at its core, and relies on innovations in fields such as robotics, cyber physical systems, digital twins, virtual simulation, augmented reality, edge computing, artificial intelligence and block chain – innovations all contributing to digital transformation of industrial processes. E2-E3 Management Version 3.0 April 2021 Page 11 of 257 For Restricted Circulation E2-E3 Management Effective Communication Skills 2 EFFECTIVE COMMUNICATION SKILLS 2.1 LEARNING OBJECTIVES This chapter deals with the following topics:  Effective Communication  The Communication Process  Rule Of Five For Effective Communication  Media Of Communication  Principles Of Communication  Communication Skills 2.2 EFFECTIVE COMMUNICATION Communication is the transfer of information and understanding from one person to another. It is a way of reaching others with ideas, facts, thoughts, feelings, and values. It always involves at least two people a sender and a receiver. Communication is what the receiver understands and not what the sender says. Organizations cannot exist without communication. If there is no communication, employees cannot know what their co-workers are doing, management cannot receive information inputs, and supervisors cannot give instructions. Coordination of work is impossible, and the organization will collapse for lack of it. Cooperation also becomes impossible, because people cannot communicate their needs and feelings to others. We can say with confidence that every act of communication influences the organization in some way. When communication is effective, it tends to encourage better performance and job satisfaction. People understand their jobs better and feel more involved in them. One of the main hindrances for the successful performance of a group or organization is lack of effective communication. Because, individuals spend nearly 70% of their working hours communicating, writing, reading, speaking and listening. So communication skill is one of the essential qualities required for every individual, whether in a group, work place, family or in any situation. It is worth remembering, "Communication can make or break a relationship". As such, communication skill is a personality trait to be developed by all. Like other social skills, communication skills can be taught and learned, and they improve with practice. Before going into the details of communication skills., we should discuss communication:- its definition, objectives, media, principles, types, barriers etc. 2.2.1 Definitions: Few of the important definitions of Communication given by Management experts are a) Communication- It is the interchange of thoughts or information to bring about mutual understanding and confidence of good human relations. (American Society of Training Directors). Communication is an exchange of. facts, ideas, opinions or emotions by two or more persons. (Rumania and Summer) E2-E3 Management Version 3.0 April 2021 Page 12 of 257 For Restricted Circulation E2-E3 Management Effective Communication Skills Communication means Understanding. (C.G Brown) The dictionary defines communication as a process by which information is exchanged between individuals through a common system of symbols, signs or behavior. b) Skill- It is defined as a learned power of doing something competently and something that is a developed aptitude or ability. Put the two together and it is obvious good communication skills can be learned and that those skills can be used to effectively deliver your message. Human communication is purposive and so understanding is vital in the process of communication. Any communication involves four essential elements, viz. a) The message b) The source c) The receiver d) The channel 2.3 THE COMMUNICATION PROCESS The process of communication involves six stages. The first three stages occurring at the sender's end and the remaining three at the receiver's end as shown. Develop Idea Encod Transmit Bridge of Receive Decode Accept & Use e Meaning Steps: 1 2 3 4 5 6 Figure 1: The Communication Process 2.3.1 At Sender's End Table 3. At senders end 1. IDEATION Step 1 is to develop an idea that the sender wishes to transmit. This is the key step, because unless there is a worthwhile message, all the other steps are somewhat useless. This step is represented by the sign, sometimes seen in an office, that reads, “Be sure brain is engaged before putting mouth in gear.”. 2. ENCODING Step 2 is to encode the idea into suitable words, charts or symbol for transmission. At this point the sender determines the method of transmission, so that the words and symbols may be organized in suitable fashion for the type of transmission. E2-E3 Management Version 3.0 April 2021 Page 13 of 257 For Restricted Circulation E2-E3 Management Effective Communication Skills 3. TRANSMISSION When the message is fully developed, step 3 is to transmit it by the method chosen, such as by memo, phone call or personal visit. Senders also choose certain channels, such as bypassing or not bypassing the superintendent and they communicate with careful timing. Today may not be the right day to talk to one’s manager about that pay raise. Senders also try to keep their communication channel free of barriers, or interference, so that their messages have a chance to reach the receivers and hold their attention. 2.3.2 At Receiver's End Table 4. At Recievers End 4. RECEIVING the encoded message sent by the sender is received by the receiver, who tune to receive the message. If the receiver does not function, the message is lost. 5. DECODING Step 5 is to decode the message so that it can be understood. The receiver tries to get the meaning or understand from the symbols by the sender. 6. ACTION The receiver gets the message and acts or responds in some way. For effective communication mutual cooperation between the sender and receiver is essential. It is desirable that the receiver pays proper attention, gives feedback or response to the sender so that two-way communication is established. For effective communication, sharing of ideas or thoughts is a necessary condition, which can be achieved only through participation. 2.4 RULE OF FIVE FOR EFFECTIVE COMMUNICATION When communicating any message, one should ensure for effective communication that the receiver: 1) Receives the message 2) Understands the message 3) Accepts the message 4) Uses the message and information in the message 5) Sends feedback to the sender 2.4.1 Objectives Of Communication: Communication can be used for any one or more of the following objectives: E2-E3 Management Version 3.0 April 2021 Page 14 of 257 For Restricted Circulation E2-E3 Management Effective Communication Skills Table 5. Objectives of communication Information Advice Order Suggestion Persuasion Education Warning Raising morale Motivation The main goals of communication are to build interpersonal relationship and to influence others. 2.5 MEDIA OF COMMUNICATION: Communication is possible through a vast variety of media. For communication to be effective, the communicator has to be very careful and judicious in the choice of media, which will depend on the factors like the urgency of the message, the time available, the expenditure involved and the intellectual and emotional level of the receiver. Available media of communication can be broadly classified into six groups: Table 6. Media of communication Written communication Oral communication Face-to-Face communication Visual communication Audio-visual communication Silence 2.5.1 Written Communication It includes letters, circulars, memos, telegrams, reports, minutes, forms and questionnaires, manuals etc. Merits and limitations of written communication. 2.5.2 Oral Communication It includes face-to-face conversation, conversation over the telephone, radio broadcasts, interviews, group discussions, conferences and seminars, speeches etc. Merits and limitations of oral communication are: 2.5.3 Face-to-Face Communication It is another form of Oral communication in most of the situations. Table 7. Face to Face Communication Merits Limitations 1. Saves time and money. 1. Not suitable for lengthy messages. 2. More powerful means of persuasion 2. Cannot be retained for a long time. and control. 3. Does not have any legal validity. 3. Speaker gets immediate feedback. 4. Greater chances of 4. Helps to promote friendly relations misunderstanding. Useful at assemblies, meetings etc 5. Cannot assign specific 5. Facial expressions and gestures help responsibilities to communicate better and it is 6. Difficult to practice in large-sized E2-E3 Management Version 3.0 April 2021 Page 15 of 257 For Restricted Circulation E2-E3 Management Effective Communication Skills almost perfect. organizations. 6. Particularly suitable for discussions. 7. Not effective in large gatherings. 8. Ineffective if the listener is inattentive.. 2.5.4 Visual Communication It includes printed pictures, posters, slides, film strips etc. But visual communication alone is not enough. It can be effectively used only in combination with other media. 2.5.5 Audio Visual Communication It makes use of telecasts, short films on cinema screen and videotapes are the latest medium of communication. It is a combination of sight and sound and most suitable for mass publicity and mass education. 2.5.6 Silence It can effectively communicate a number of responses. “Silence is more eloquent than words”- is not a meaningless adage. Silence can very effectively convey such responses as disapproval, anger or indifference. 2.6 PRINCIPLES OF COMMUNICATION: (6 C’S) The six principles of communication discussed below are of fundamental importance and relevant to all media but they are most important to 'written communication’. (A) Clarity: - Use Simple words and concrete expressions. Prefer active voice than passive voice. Avoid usage of 'Jargons' and ambiguity.. Jargons refer to special language of an organization. Eg., CGM, PGM, DGM, DE, SDE, JTO, EE, AO, DA etc. Use short sentences whether in oral or written communication. Long sentences seem to be complex. It is a very common trend in our correspondences to combine two or three sentences into a long sentence. As a convention, if a sentence runs beyond 30 words it is better to split into two sentences. (B) Completeness:-While answering a letter make sure that the receiver is not in any doubt about anything contained in it. Check for the five “W” questions- Who?, What?, Why?, Where? and When? to ensure completeness. (C) Conciseness:-Be as brief as possible since brevity in expression effectively wins the attention of the reader. Brevity should not be at the cost of appropriateness, clarity correctness, completeness or courtesy. Organise well, include only relevant facts and also avoid repetition. (D) Consideration: - Show consideration to the reader/listener. Adopt 'you' attitude than 'we' attitude. Emphasize positive, pleasant facts. (E) Courtesy:-Following principles help to promote courtesy which demands a friendly behaviour towards others. Answer the letters promptly as far as possible, omit E2-E3 Management Version 3.0 April 2021 Page 16 of 257 For Restricted Circulation E2-E3 Management Effective Communication Skills irritating expressions, especially personal attacks and apologize sincerely for an omission or thank generously for a favour. (F) Correctness:- Give correct facts, send the message at correct time and in correct style through appropriate media -Telegram, Fax, E-mail, Telephone etc 2.7 TYPES OF COMMUNICATION Depending upon the purpose and channel there are 5 different types of communication as below. Downward Communication, Upward Communication, Horizontal/Lateral Communication, Grapevine Communication and Consensus. 2.7.1 DOWNWARD COMMUNICATION: Downward communication refers to exchange of ideas with subordinates and people at lower levels. Unfortunately, even with the help of elaborate techniques and skilled staff assistance, management has done a poor job on many occasions. Colourful booklets, expensive multimedia presentations and elaborately planned employee meetings often fail to achieve employee understanding. The key to better communication lies not just in colour, action, and electronic aids, but in more human oriented managers who are sensitive to human needs, prepare carefully and anticipate problems. Objectives of downward communication are:  To give specific directions to subordinates.  To explain policies and organizational procedures  To appraise the subordinates, of their performance.  To give the subordinates information about the rationale of their job.  There are four cornerstones that act as prerequisites to a solid approach.  Managers need to develop a positive attitude.  Managers must continually work to get informed –seek out relevant information of interest to employees, share it and help employees feel informed.  Managers need to consciously plan for communication and do this at the beginning of a course of action.  Developing trust between senders and receivers is important in all communication. If subordinates do not trust their superiors, they are not as likely to listen or to believe management’s messages. 2.7.2 DOWNWARD COMMUNICATION Oral and written media can be used for downward communication. Essentials of downward communication are:  Adequate information  Clear about how much to communicate  Delegation of authority to lower levels E2-E3 Management Version 3.0 April 2021 Page 17 of 257 For Restricted Circulation E2-E3 Management Effective Communication Skills  Pass on to the correct person. Limitations of downward communication are: Under communication:- Sometimes superiors act in a presumptuous manner - Incomplete instructions will lead to unsatisfactory performance. Over communication:- Too much talk by superiors lead to leakage of confidential information. Delay:-By the time message reaches lowest level it may have lost its relevance. Loss of information: -When it comes to lower levels unless fully written. Experiments showed that only 20% of communication, sent downwards through 5 levels of management, finally gets to the workers level. Distortion:-In long lines of communication, information is not only lost but also distorted. Resentment by subordinates:- Built in resistance - because subordinates do not get opportunity of participation in decision -making. 2.7.3 UPWARD COMMUNICATION Upward communication refers to exchange of ideas with superiors and people at higher levels.A main objective of upward communication is feedback, which gives employees, opportunity to vent their problems and grievances, constructive suggestions, easier introduction of new schemes and greater harmony and cohesion among the personnel at different levels. If the two way flow of information is broken by poor upward communication, management loses touch with employee needs and lacks sufficient information to make sound decisions. Management needs to” tune in” to employees in the same way a person with a radio tunes in. This requires initiative, positive action, sensitivity to weak signals and adaptability to different channels of employee information. It primarily requires an awareness and belief that upward messages are important. Essentials of upward communication are:  Superiors get close to subordinates  Keep line of communication short  Prompt redress of legitimate grievance Limitations of upward communication are:  Reluctance to express themselves  Fear of criticism as weakness  Great possibility of distortion  Depressed superiors feel insulted. 2.7.4 Horizontal/Lateral Communication Horizontal communication refers to exchange of ideas between people of same level. E2-E3 Management Version 3.0 April 2021 Page 18 of 257 For Restricted Circulation E2-E3 Management Effective Communication Skills 2.8 BARRIERS TO COMMUNICATION: Even when the receiver receives the message and makes a genuine effort to decode it, there are a number of interferences that may limit the receiver’s understanding. These obstacles act as barriers to communication, and may entirely prevent a communication. filter a part of it or give it incorrect meaning. There are a number of factors, which act as barriers to effective communication. Some of them are:  Wrong choice of media.  Physical barriers - Noise, time and distance.  Semantic - Interpretation of words, by-passed instructions, denotations and connotations.  Different comprehension of reality- Abstracting, slanting,  Socio-psychological barriers - Attitudes and opinions.  Filtering - Sender manipulating information so that the receiver will see it more favourably.  Selective perception.  Emotions - How the receiver feels at the time of receipt of a Communication influence how he interprets. In an emotional state of worry, excitement, fear etc., we will not be able to convey or accept Messages in their real sense.  Language - Words mean different things to different people depending on age, education and culture.  Source of communication - biased notion.  Inattentiveness  Faulty transmission  Poor retention 2.9 COMMUNICATION SKILLS Communication skills encompass a variety of strategies and techniques that aid. interpersonal interaction. Using good communication skills is not a matter of simply being ‘nice’. Rather, communicating well facilitates information sharing, perspective- taking, and genuine understanding. When communication flows well, conflict is more likely to be resolved in a collaborative fashion, rather than escalating to destructive levels. Key elements of effective communication skill are: (1) Active Listening Skills arid (2) Feed Back Skills. 2.9.1 Active Listening Skills: Listening is making sense out of what we hear. This requires i) Paying attention ii) Following - to give indication to the speaker that you are with him or her. E2-E3 Management Version 3.0 April 2021 Page 19 of 257 For Restricted Circulation E2-E3 Management Effective Communication Skills iii) Reflecting - to ask the speaker whether you have correctly understood him by repeating what you have heard in your own words Active Listening Requirements: - Listen with intensity, acceptance, empathy and willingness to take responsibility. Many of us have bad listening habits. Human brain can handle things at a speed four times the speed at which one speaks. Hence, at the time of listening, our lazy mind will be wandering in other matters like vacation, friends, selecting a vehicle etc, etc. In such occasions, we will not understand the message correctly. An active listener concentrates intensely on what the speaker is saying, summarize and integrate what has been said. If ways to develop active listening skills are:  Make eye contact.  Exhibit affirmative head nods and appropriate facial expressions.  Avoid distracting action or gestures - look into the watch, play with pencil, shuffle the papers etc.  Ask questions - ensures understanding.  Avoid interrupting the speaker. Do not over talk.  Make smooth transitions between the roles of speaker and listen. 2.9.2 Feedback Skills The Feedback can be positive or negative depending upon the situations. Table 8. Positive Feedback & Negative Feedback Positive Feed Back Negative Feed Back If positive, feedback is likely to be given If negative, feedback is often avoided, promptly and enthusiastically. Positive delayed or substantially distorted. Negative feedback is always accepted, because feedback often meets resistance. Should we everybody likes to hear good things about avoid negative feedback? No, we should be them. aware of the possible resistance and at the same time, the negative feedback should be used at a circumstance in which it is likely to be accepted. Experiments show that negative feedback is most likely to be accepted when it comes from a credible source or if it is objective in form. 2.9.3 Ways to develop effective Feed Back Skills are: a) Focus on specific behaviours. Eg. Your attitude is not correct, I liked your work etc. are not specific. At the same time, the following are specific. Eg. You came half an hour late in yesterday’s meeting and this attitude of you is disturbing me. Your work last week has increased the revenue by 20%. That is good. E2-E3 Management Version 3.0 April 2021 Page 20 of 257 For Restricted Circulation E2-E3 Management Effective Communication Skills b) Keep feedback impersonal General and impersonal feedback especially, when it is negative. Avoid counterproductive words like stupid, incompetent etc. c) Keep feedback goal oriented. d) Make feedback well timed Feedback is effective only when it is given immediately. In some cases well-timed means somewhat delayed. e) Ensure understanding Remember, every successful communicator requires both transference and understanding. A breakdown in communication usually takes place due to lack of organizing and planning beforehand. A few basic guidelines will result in successful communication whether it is written down or spoken. 2.10 CONCLUSION As we have seen, communication skills are important if we are to build meaningful relationships with peers and subordinates. It is especially important that we are able to build these relationships as social practice moves towards more market-based. E2-E3 Management Version 3.0 April 2021 Page 21 of 257 For Restricted Circulation E2-E3 Management Project Management 3 PROJECT MANAGEMENT 3.1 LEARNING OBJECTIVES At the end of this lesson, participants shall be able to understand:  Concept of Project Management  Project Management Life Cycle  Skills needed & Job of a Project Manager  Project planning Technique Project management is concerned with the overall planning and co-ordination of a project from conception to completion aimed at meeting the stated requirements and ensuring completion on time, within cost and to required quality standards. Project management is normally reserved for focused, non-repetitive, time-limited activities with some degree of risk and that are beyond the usual scope of operational activities for which the organization is responsible. 3.2 CONCEPT OF PROJECT MANAGEMENT A project is generally defined as a programme of work to bring about a beneficial change and which has: - a. A start and an end b. A multi-disciplinary team brought together for the project c. Constraints of cost, time and quality d. A scope of work that is unique and involves uncertainty e. Examples of a project: - f. The development and introduction of new services g. The development of a management information system h. The introduction of an improvement to an existing process i. Setting up a new care initiative j. The creation of a large tender or the preparation of a response to it k. The production of a new customer newsletter, catalogue or Web site. How is a project different to any other work? A continuous process is not a project. The development of a new rent or lettings policy is a project but the subsequent day-to-day operation of that policy is a continuous process that is usually managed by an individual or a department. When is Project Management relevant?  Relevant to any job if it has the following features:-  A defined goal E2-E3 Management Version 3.0 April 2021 Page 22 of 257 For Restricted Circulation E2-E3 Management Project Management  Time, cost and quality (or functionality) constraints  Requires expertise and support from other functions  Involves a unique (to you or the organization) scope of work Using a project team approach helps to achieve the beneficial gain in a structured, controlled and cost effective way. 3.2.1 Project Management Life Cycle The process flow of Project management processes is shown below. The various elements of project management life cycle are Figure 2: Project Management Life Cycle A. NEED IDENTIFICATION This stage involves the project manager and sponsor in the preparation and approval of an outline project justification, plan and project budget. B. INITIATION Initiating is the basic processes that should be performed to get the project started. This starting point is critical because those who will deliver the project, those who will use the project, and those who will have a stake in the project need to reach an agreement on its initiation. Involving all stakeholders in the project phases generally improves the probability of satisfying customer requirements by shared ownership of the project by the stakeholders. The success of the project team depends upon starting with complete and accurate information, management support, and the authorization necessary to manage the project. C. PLANNING The planning phase is considered the most important phase in project management. Project planning defines project activities that will be performed; the products that will be produced, and describes how these activities will be accomplished and managed. Project planning defines each major task, estimates the time, resources and cost required, and provides a framework for management review and control. Planning involves identifying and documenting scope, tasks, schedules, cost, risk, quality, and staffing needs. E2-E3 Management Version 3.0 April 2021 Page 23 of 257 For Restricted Circulation E2-E3 Management Project Management The result of the project planning, the project plan, will be an approved, comprehensive document that allows a project team to begin and complete the work necessary to achieve the project goals and objectives. The project plan will address how the project team will manage the project elements. It will provide a high level of confidence in the organization’s ability to meet the scope, timing, cost, and quality requirements by addressing all aspects of the project. D. EXECUTING Once a project moves into the execution phase, the project team and all necessary resources to carry out the project should be in place and ready to perform project activities. The project plan is completed and base lined by this time as well. The project team and the project manager’s focus now shifts from planning the project efforts to participating, observing, and analyzing the work being done. The execution phase is when the work activities of the project plan are executed, resulting in the completion of the project deliverables and achievement of the project objective(s). This phase brings together all of the project management disciplines, resulting in a product or service that will meet the project deliverable requirements and the customers need. During this phase, elements completed in the planning phase are implemented, time is expended, and money is spent. In short, it means coordinating and managing the project resources while executing the project plan, performing the planned project activities, and ensuring they are completed efficiently. E. CONTROLLING Project Control function that involves comparing actual performance with planned performance and taking corrective action to get the desired outcome when there are significant differences. By monitoring and measuring progress regularly, identifying variances from plan, and taking corrective action if required, project control ensures that project objectives are met. F. CLOSING OUT Project closeout is performed after all defined project objectives have been met and the customer has formally accepted the project’s deliverables and end product or, in some instances, when a project has been cancelled or terminated early. Although, project closeout is a routine process, it is an important one. By properly completing the project closeout, organizations can benefit from lessons learned and information compiled. The project closeout phase is comprised of contract closeout and administrative closure. 3.3 JOB OF A PROJECT MANAGER Typically a project manager will be nominated to lead a project and will be expected to be fully accountable for meeting its objectives. The project manager will be the leader of the project team and will be responsible for ensuring that following are completed in a timely way:-  Gaining approval for the project aim and terms of reference  Selecting and leading the team and setting individual objectives  Ensuring a feasibility study is complete  Ensuring that the project is planned in appropriate detail E2-E3 Management Version 3.0 April 2021 Page 24 of 257 For Restricted Circulation E2-E3 Management Project Management  Allocating and monitoring the work and cost  Motivating the team  Reporting progress back to the organization  Helping the team to solve project problems  Achieve the goals, through the team,  Reviewing and closing down 3.4 SKILLS NEEDED BY A PROJECT MANAGER Very broad skills and a deal of experience are needed to manage a large project successfully. They include business knowledge, technical skills and individual and team leadership skills. 3.4.1 INDIVIDUAL SKILLS The personal skills are likely to include good presentation and persuasive skills, good written skills but allied to goal orientation, high energy and credibility. 3.4.2 TEAM SKILLS They will appreciate the differing needs of both individuals and the project team at different stages of the project. They will be aware of different team types. 3.4.3 TECHNICAL SKILLS They will have technical skills in setting objectives, planning complex tasks, negotiating resource, financial planning, contract management, monitoring skills, managing creative thinking and problem solving, as well as their own specialist topic. 3.5 PROJECT PLANNING TECHNIQUE -PERT The Program Evaluation and Review Technique (PERT) is a network model that allows for randomness in activity completion times. PERT was developed in the late 1950's for the U.S. Navy's Polaris project having thousands of contractors. It has the potential to reduce both the time and cost required to complete a project. 3.5.1 The Network Diagram In a project, an activity is a task that must be performed and an event is a milestone marking the completion of one or more activities. Before an activity can begin, all of its predecessor activities must be completed. Project network models represent activities and milestones by arcs and nodes. PERT is typically represented as an activity on arc network, in which the activities are represented on the lines and milestones on the nodes. The Figure below shows a simple example of a PERT diagram. E2-E3 Management Version 3.0 April 2021 Page 25 of 257 For Restricted Circulation E2-E3 Management Project Management Figure 3: PERT N/W Diagram The milestones generally are numbered so that the ending node of an activity has a higher number than the beginning node. The activities in the above diagram are labeled with letters along with the expected time required to complete the activity. 3.5.2 Steps In The PERT Planning Process The steps involved in PERT planning process are as under: 1. Identify Activities And Milestones The activities are the tasks required to complete the project. The milestones are the events marking the beginning and end of one or more activities. 2. Determine Activity Sequence This step may be combined with the activity identification step since the activity sequence is known for some tasks. Other tasks may require more analysis to determine the exact order in which they must be performed. 3.6 CONSTRUCT THE NETWORK DIAGRAM Using the activity sequence information, a network diagram can be drawn showing the sequence of the serial and parallel activities. Below is an example of preparing a Network Diagram for the “Installation of new landline exchange”. Table 9. N/W Diagram for New Landline Exchange Activity description Activity Dur Preceding ation code activity 1. 1 Sanction of project estimate A 10 days - 2. 2 Equipment/cable B 180 days A procurement 3. 3 Land acquisition C 30 days A 4. 4 Building construction (civil D 180 days C works) 5. 5 Electrical works E 60 days D 6. 6 Battery & power F 20 days B, E plant installation E2-E3 Management Version 3.0 April 2021 Page 26 of 257 For Restricted Circulation E2-E3 Management Project Management 7. 7 Installation of equipment & G 30 days B, E MDF 8. 8 Testing & Acceptance H 20 days F,G Testing Note: Above is only an indicative list. Each work can further be split into many activities. Figure 4: Network Diagram Above is a very simplistic model for understanding activities. Actual will vary. It can be seen that if land acquisition, civil work, electrical work gets completed early, up to 90days can be saved as equipment delivery takes only 180days. Similarly any delay in one activity affects overall execution time if no slack (margin) is available. For example, delay in equipment supply can be tolerated for 90 days. Applying the definition of critical path, we can easily find it as the darkened path. Project manager has to identify, sequence, plan all activities, allocate resources, manages risk and take dynamic decisions to achieve result in defined time & cost. 1. Estimate Activity Times Weeks are a commonly used unit of time for activity completion, but any consistent unit of time can be used. A distinguishing feature of PERT is its ability to deal with uncertainty in activity completion times. For each activity, the model usually includes three time estimates: Optimistic time (OT) - generally the shortest time in which the activity can be completed. (This is what an inexperienced manager believes!) Most likely time (MT) - the completion time having the highest probability. This is different from expected time. Seasoned managers have an amazing way of estimating very close to actual data from prior estimation errors. Pessimistic time (PT) - the longest time that an activity might require. The expected time for each activity can be approximated using the following weighted average: Expected time = (OT + 4 x MT+ PT) / 6 E2-E3 Management Version 3.0 April 2021 Page 27 of 257 For Restricted Circulation E2-E3 Management Project Management This expected time might be displayed on the network diagram. Variance for each activity is given by: [(PT - OT) /6]2 2. Determine The Critical Path The critical path is determined by adding the times for the activities in each sequence and determining the longest path in the project. The critical path determines the total time required for the project. If activities outside the critical path speed up or slow down (within limits), the total project time does not change. The amount of time that a non-critical path activity can be delayed without delaying the project is referred to as slack time. Since the critical path determines the completion date of the project, the project can be accelerated by adding the resources required to decrease the time for the activities in the critical path. Such a shortening of the project sometimes is referred to as project crashing. 3. Update As Project Progresses Make adjustments in the PERT chart as the project progresses. As the project unfolds, the estimated times can be replaced with actual times. In cases where there are delays, additional resources may be needed to stay on schedule and the PERT chart may be modified to reflect the new situation. Benefits of PERT PERT is useful because it provides the following information:  Expected project completion time.  Probability of completion before a specified date.  The critical path activities that directly impact the completion time.  The activities that have slack time and that can lend resources to critical path activities. Activities start and end dates. 3.6.1 Software for Project Management Simpler projects can be managed manually by making Network diagram etc. But for complex projects , it becomes essential to use some project management software. There are several project management software available in the market. Two of them are briefly discussed below: 1. Microsoft Project Microsoft Project is a project management software program developed and sold by Microsoft which is designed to assist project managers in developing plans, assigning resources to tasks, tracking progress, managing budgets and analyzing workloads. The application creates critical path schedules, although critical chain and event chain methodology third-party add-ons are available. Schedules can be resource leveled, and chains are visualized in a Gantt chart ( in the form of horizontal bars). Additionally, Project can recognize different classes of users. These different classes of users can have differing access levels to projects, views, and other data. Custom objects such as calendars, views, tables, filters and fields are stored in an enterprise global which is shared by all users. The latest version is MS project 2007. E2-E3 Management Version 3.0 April 2021 Page 28 of 257 For Restricted Circulation E2-E3 Management Project Management 2. Primavera Primavera Systems Inc. provides project and program management software for the Architecture, Engineering and Construction industry. Focused on project portfolio management, or PPM, Primavera's solutions let users measure progress, assure governance, improve team collaboration and prioritize project investments and resources. The newest addition to the suite of project management solutions is Primavera P6, which is an integrated PPM (project portfolio management) solution that provides a real- time view of portfolio performance. P6 also offers what-if scenario modeling, tabular scorecards and capacity analysis. 3.7 CONCLUSION All organizations use projects as the way to translate strategies into actions and objectives into realities. The art of managing projects is about having consistency in achieving stated objectives within limits of time, budget, and stakeholders' satisfaction, by directing and coordinating human and material resources. In order to remain competitive in this fast changing telecom market, it is essential for BSNL to use project management techniques. E2-E3 Management Version 3.0 April 2021 Page 29 of 257 For Restricted Circulation E2-E3 Management ISO 9001:2015 QMS 4 ISO 9001:2015 QUALITY MANAGEMENT SYSTEM 4.1 LEARNING OBJECTIVES: At the end of this session, participants will be able to: Explain what is ISO 9001 standard Explain benefits of obtaining ISO 9001: 2015 certification Define Quality and understand ISO9001: 2015 quality principles Understand BSNL approach to ISO 9001 certification. 4.2 INTRODUCTION Everyone wants to achieve profits. Profits can come by more sales with some profit margin and by cutting down costs. While good quality can lead to more sales, yet the poor processes can increase the cost to achieve that quality level thereby reducing profits. Cost cutting is possible through better processes while ensuring quality output. Quality cannot be compromised at any cost, as it dents the company image and paves the path for demise of company. Many techniques for improving the processes are available to modern managers. ISO 9001 is one such technique, widely accepted across the world being an international standard and is applicable to all types of industries, business and organizations. Latest version of this standard is ISO 9001:2015. In today’s scenario, many organizations decide to buy products/services (including Telecom solutions) only from ISO 9001 certified suppliers. Therefore, ISO 9001 certification for BSNL is necessary. 4.3 WHAT IS ISO 9001 STANDARD? ISO stands for international organization for standardization. Across the world, page A4 is of same size, size 40 of a shirt is expected to be of same size irrespective of the place of purchase. All such things require adherence to certain standards by the manufacturers. ISO headquartered at Geneva defines standard for almost all the items being sold in the market. In fact, ISO in Greek means equal. ISO has come up with product standards as well as process standards. In India Bureau of Indian Standards (BIS) defines the product standards [ISI mark], which are based on international standard. The process standard of ISO for ensuring quality is called as ISO 9001. At present 2015 version is in effect commonly known as ISO 9001:2015.This standard helps the organizations to develop, establish, implement and maintain a quality management system capable of delivering consistent quality output with focus on continual improvements. 4.4 BENEFITS OF OBTAINING ISO 9001:2015 CERTIFICATION: Implementing a quality management system brings internal benefits to most Organizations, as well as opening up opportunities vis-à-vis the outside world. Internal benefits to the company include: E2-E3 Management Version 3.0 April 2021 Page 30 of 257 For Restricted Circulation E2-E3 Management ISO 9001:2015 QMS  improved customer focus and process orientation within the company;  improved management commitment and decision-making;  better working conditions for employees;  increased motivation of employees;  reduced cost of internal failures (lower rates of rework, rejection, etc.) and  external failures (fewer customer returns, replacements, etc.); and last but not least,  continual improvement of the quality management system.  The following external benefits are generated:  customers are more confident that they will receive products conforming to their requirements, which in turn results in higher customer satisfaction;  an improved image of the company;  more aggressive publicity, as customers can be informed of the benefits of  their doing business with a company that manages the quality of its outputs;  more confidence that the company’s products meet relevant regulatory requirements;  better objective evidence to defend product liability charges if such are brought by customers. 4.4.1 Quality: Quality is not absolute, unique, static and by chance. It must be defined, be measurable, achieve able and link to customer satisfaction. As per ISO standard, “quality is defined as the ‘degree to which, a set of inherent characteristic fulfils requirements of a process, product or system”. There are ten quality management principles on which the quality management system standards of the ISO 9001:2015 are based. The ten quality management principles, Quality management systems Guidelines for performance improvements are detailed. 4.5 TEN QUALITY MANAGEMENT CLAUSES IN ISO 9001:2015: ISO 9001:2015 has ten clauses instead of eight. The following table shows the relationship of the ISO 9001:2008 clauses to those in ISO 9001:2015 Table 10. ISO 9001-2008 S.N. ISO 9001:2008 ISO 9001:2015 1. Scope Scope 2. Normative Reference Normative Reference 3. Terms & Conditions Terms & Conditions 4. Quality Management System Context of the organization 5. Management responsibility Leadership 6. Resource management Planning 7. Product realization Support E2-E3 Management Version 3.0 April 2021 Page 31 of 257 For Restricted Circulation E2-E3 Management ISO 9001:2015 QMS 8. Measurement, analysis and Operation improvement 9. - Performance evaluation 10. - Improvement The first three clauses in ISO 9001:2015 are the same as those in ISO 9001:2008, but there are considerable differences between ISO 9001:2008 and ISO 9001:2015 from the fourth clause onwards. 4.5.1 Scope (First Clause): This Quality Manual specifies requirements for a quality management system: a) Needs to demonstrate its ability to consistently provide product and services that meet customer and applicable statutory and regulatory requirements, and b) Aims to enhance customer satisfaction through the effective application of the system, including processes for improvement of the system and the assurance of conformity to customer and applicable statutory and regulatory requirements. All the requirements of this ISO 9001:2015 are generic and are intended to be applicable to any organization, regardless of its type or size, or the products and services it provides; 4.5.2 Normative References (Second Clause): The following documents, in whole or in part, are normatively referenced in this document and are indispensable for its application. For dated references, only the edition cited applies. For undated references, the latest edition of the referenced document (including any amendments) applies. ISO 9001:2015, Quality management systems — Fundamentals and vocabulary 4.5.3 Terms and Definitions (Third Clause): The terms and definitions given in ISO 9001:2015 apply. Context of the organization (Fourth Clause): It has determined external and internal issues that are relevant to its purpose and its strategic direction and that affect its ability to achieve the intended result(s) of its quality management system. It monitors and reviews information about these external and internal issues. 4.5.4 Leadership (Fifth Clause): Top management demonstrates leadership and commitment with respect to the quality management system by: a) Taking accountability for the effectiveness of the quality management system; b) Ensuring that the quality policy and quality objectiveness are established for the quality management system and are compatible with the context and strategic direction of It; c) Ensuring the integration of the quality management system requirements into its business process; d) Promoting the use of the process approach and risk-based thinking; E2-E3 Management Version 3.0 April 2021 Page 32 of 257 For Restricted Circulation E2-E3 Management ISO 9001:2015 QMS e) Ensuring that the resources needed for the quality management system are available; f) Communicating the importance of effective quality management and of conforming to the quality management system requirements; g) Ensuring that the quality management system achieves its intended results; h) Engaging, directing and supporting persons to contribute to the effectiveness of the quality management system; i) Promoting improvement; and j) Supporting other relevant management roles to demonstrate their leadership as it applies to their areas of responsibility. 4.5.5 Planning (Sixth Clause): Panning for the quality management system for determining the risks and opportunities that need to be addressed to: a) Give assurance that the quality management system can achieve its intended results. b) Enhance desirable effects. c) Prevent, or reduce, undesired effects; and d) Achieve improvement. It plans: a) Actions to address these risks and opportunities; b) How to: 1. Integrate and implement the actions into its quality management system processes. 2. Evaluate the effectiveness of these actions. Actions taken to address risks and opportunities are proportionate to the potential impact on the conformity of products and services. 4.4.7 Support (Seventh Clause): It determines and provides the resources needed for the establishment, implementation, maintenance and continual improvement of the quality management system. It considers: a) The capabilities of, and constraints on, existing internal resources; and b) What needs to be obtained from the external providers? 4.4.8 Operation (Eighth Clause): It planned, implemented and controls the processes needed to meet the requirements for the provision of products and services, and implemented the actions determined in Clause 6, by: a) Determining the requirements for the products and services; b) Establishing criteria for: i The processes; ii The acceptance of products and services; c) Determining the resources needed to achieve conformity to the product and service requirements; d) Implementing control of the processes in accordance with the criteria; and E2-E3 Management Version 3.0 April 2021 Page 33 of 257 For Restricted Circulation E2-E3 Management ISO 9001:2015 QMS e) Determining and keeping documented information to the extent necessary: i To have confidence that the processes have been carried out as planned; ii To demonstrate the conformity of products and services to their requirements. The output of this planning is in a form suitable to its method of operations. It ensures that outsourced processes are controlled. 4.4.9 Performance Evaluation (Ninth Clause): It determines: a) What needs to be monitored and measured; b) The methods for monitoring, measurement, analysis and evaluation needed to measure valid results; c) When the monitoring and measuring is performed; d) When the results form monitoring and measurement are analyzed and evaluated? It evaluates the performance and the effectiveness of the quality management system. It retains appropriate documented information as evidence of the results. 4.4.10 Improvement (Tenth Clause): General: It determines and selects opportunities for improvement and implements any necessary actions to meet customer requirements and enhance customer satisfaction. These include: a) Improving products and services to meet requirements as well as to address future needs and expectations; b) Correcting, preventing or reducing undesired effects; and c) Improving the performance and effectiveness of the quality management system. Nonconformity and Corrective Action 1. When a nonconformity occurs, including any arising from complaints, It: a) Reacts to the nonconformity and, as applicable: 1. Takes action to control and correct it; 2. Deals with the consequences; b) Evaluates the need for action to eliminate the cause(s) of the nonconformity, in order that it does not recur or occur elsewhere, by: 1. Reviewing and analyzing the nonconformity; 2. Determining the causes of the nonconformity; 3. Determining if similar nonconformities exist, or could potentially occur; c) Implements any action needed; d) Reviews the effectiveness of any corrective action taken; e) Updates risks and opportunities determined during planning, if necessary; and f) Makes changes to the quality management system, if necessary. Corrective actions are appropriate to the effects of the nonconformities encountered. 2. It retains documented information as evidence of: E2-E3 Management Version 3.0 April 2021 Page 34 of 257 For Restricted Circulation E2-E3 Management ISO 9001:2015 QMS a) The nature of the nonconformities and any subsequent actions taken; and b) The results of any corrective action. Continual Improvement: It continually improves the suitability, adequacy and effectiveness of the quality management system. It considers the results of analysis and evaluations, and the outputs from the management review, to determine if there are needs or opportunities that are addressed as part of the continual improvement. 4.5 CONCLUSION ALTTC was the first unit of BSNL to obtain ISO 9001 certification in 2001. Since then, BRBRAITT and many other training centers, Maintenance regions & project circles, Civil and electrical wings, Telecom Factories have obtained this certificate. In 2007, BSNL corporate office directed Circles to obtain ISO 9001 certification for all SSAs. Apart from SSAs, circles have also been asked to obtain this certification for customer related sections such as Enterprise Business, CS, Commercial, PG cell etc. Similarly, at BSNL Corporate office, initially CS, EB, PG, Commercial and T&C sections have to get ISO 9001 certification. It continually improves the suitability, adequacy and effectiveness of the quality management system. It considers the results of analysis and evaluations, and the outputs from the management review, to determine if there are needs or opportunities that are addressed as part of the continual improvement. E2-E3 Management Version 3.0 April 2021 Page 35 of 257 For Restricted Circulation E2-E3/Management Restructuring & New Roles 5 RESTRUCTURING & NEW ROLES 5.1 LEARNING OBJECTIVES Organizational change is must to meet the competitive challenges and to keep pace with ever changing scenario. As part of Aspiration Driven Transformation, it was decided to restructure BSNL setup for realizing its shared dream. This chapter discusses the structural changes being effected in BSNL.  Objectives of Restructuring  Macro view of New company structure  Job Description concept  Implementation of new structure  Example of Job description 5.2 OBJECTIVES OF RESTRUCTURING Project SHIKHAR is a holistic transformation exercise with the help of The Boston Consulting Group with a view to strengthen BSNL as an organization and enable it to get back on the path of growth and profitability. In order to implement the new strategy effectively, BSNL’s organization structure has been redesigned with a view to provide end-to-end focus on potential growth areas such as Broadband, Mobile, Marketing, Sales & Distribution and Customer Service. A business unit based organization structure is being adopted. The motive behind adoption of new organization structure is to help BSNL to –  Create adequate focus – On critical growth segments such as broadband, mobile, enterprise and new businesses (e.g., infrastructure sharing, international expansion etc.) – On critical skills such as marketing, sales, customer service, network management and IT  Develop accountability at all levels in the organization along with control – Business units driving each of the key businesses with full responsibility for generating revenue with adequate control over all critical functions – Business unit structure at Head Office, Circle Office and in the field units (i.e. SSAs)  Strike the right balance – Ensure business units have equitable distribution of work-load and resources  Synergy/ Co-ordination – Ensure minimal duplication of resources between the different business units as well as ease of co-ordination among them E2-E3 Management Version 3.0 April 2021 Page 36 of 257 For Restricted Circulation E2-E3/Management Restructuring & New Roles 5.3 MACRO VIEW OF NEW STRUCTURE OF BSNL The functional Directors on BSNL Board as per new organization structure have been re-designated as: - Table 11. New designations Earlier Designation New Designation Director (Operations) Director (Consumer Fixed Access) Director (P&NS) Director (Consumer Mobility) Director (C&M) Director (Enterprise) Director (HRD) Director (HR) Director (Finance) Director (Finance) In the new organization structure, there are four Business Units (BUs) – Consumer Fixed Access (Headed by a Director): Responsible for products such as landline, PCO, broadband and related VAS, and targets retail customers as well as small businesses. This business unit controls all PSTN and data switches as well as all fixed access media (i.e. the last mile). Consumer Mobility (headed by a Director): Responsible for products such as GSM (2G, 3G), WiMax and related VAS, and serves retail customers as well as small businesses. This business unit controls the mobility access network (i.e., BTS, BSC, MSC etc.). Enterprise (headed by a Director): Serves medium and large enterprises (i.e., corporate customers), carriers and ISPs. Enterprise products include voice solutions, data solutions and managed services. This business is also responsible for the wholesale business undertaken on BSNL’s National Long Distance (NLD) and International Long Distanc (ILD) network. It also controls BSNL’s core network (i.e., transmission media assets – OFC, microwave etc.). There is an Executive Director responsible for the core network within this BU. New Businesses (headed by an Executive Director): In-charge of new business opportunities which BSNL plans to pursue. One such concrete opportunity that has been identified and is being pursued is passive infrastructure sharing. Other areas being evaluated include expanding BSNL’s core telecom operations in international markets; leveraging BSNL’s real estate assets to earn additional revenues etc. Each of the above described BUs is responsible for generating revenue and driving profit in their respective areas. They also have control over critical resources needed to drive the business – such as strategy & planning, product management, marketing, sales & distribution, customer service as well as engineering, development and operations of their respective network assets. Macro view of new verticals with reference to customer, product & assets is given below: E2-E3 Management Version 3.0 April 2021 Page 37 of 257 For Restricted Circulation  E2-E3/Management Restructuring & New Roles Table 12. Macro View of New Verticals with reference to Customer, Product & Assets Director Consumer Director Director Enterprise EDNew Business Consumer Fixed Access Mobility Customer Consumers (SOHO) Consumers Medium & depends on SOHO nature of Small enterprises large business Small enterprises enterprises Carriers Carriers ISPs Products Landline GSM (2G,3G,4G) Voice Data Depends on nature of Broadband VAS Wi-Max VAS Managed business Roaming Services Passive NLS/ILD wholesale Infra sharing Network Access Media AccessNetwork Transmission media Passive assets (BTS) up to -Beyond infra-Towers, -2G/3G/4G local exchange local battery, -Wi-Max (PSTN) Up exchange (PSTN) generator, Switches MSC to -Beyond Air Conditioning BSC DSLAM (data) etc. DSLAM (data) Others(depends All PSTN & on nature of Data switches business -PSTN (TAX etc.) -Data (BRAS etc.) In addition to the four business units, there are a few critical shared functions to enable the entire organization. These functions comprise –  HR (including Admin, Legal) –Headed by Director  Finance – Headed by Director, supported by an Executive Director Directly reporting to CMD  ED Corporate Affairs (including Corporate IT, Corporate Planning & Monitoring, Corporate Marketing and Public Relations, Regulation)  Co