Technical Assistance Consultant’s Report
Project Number: 41614
September 2010
India: Energy Efficiency Enhancement Project in
Assam
(Financed by the Japan Special Fund funded by the Government of
Japan)
Prepared by
Pricewaterhouse Coopers Pvt. Ltd.
India
For Assam Electricity Grid Corporation Limited
This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design.
PricewaterhouseCoopers Global Network: Energy, Utilities & Mining Practice
Performance Improvement Advisory
Building Organizations
Redesigning the Organization Structure
Assam Electricity Grid Corporation Limited (AEGCL)
Redesigning the Organization Structure for AEGCL
Table of contents
Introduction .....................................................................................................................................................................3
Background of the Assam State Electricity Board ..................................................................................................... 3
Background of Assam Electricity Grid Corporation Limited ....................................................................................... 3
Scope of this Study.................................................................................................................................................... 4
Objectives of the Study .............................................................................................................................................. 5
Approach & Methodology for the study ...................................................................................................................... 5
Structure of the Report .............................................................................................................................................. 7
AS-IS Analysis and TO-BE Recommendations ............................................................................................................9
The Reporting Hierarchies in AEGCL ........................................................................................................................ 9
Human Resource Profiling ....................................................................................................................................... 10
Age Profiling ............................................................................................................................... 11
Retirement Profiling .................................................................................................................... 12
Board Level: Board of Directors of AEGCL ............................................................................................................. 13
Corporate Level: Function wise Organization Structure of AEGCL ......................................................................... 27
Finance & Accounts ................................................................................................................... 27
Human Resources ..................................................................................................................... 31
Projects ...................................................................................................................................... 34
Operations.................................................................................................................................. 45
Field Level: Function wise Organization Structure of AEGCL ................................................................................. 52
Conclusion ....................................................................................................................................................................57
Annexures .....................................................................................................................................................................60
Annexure 1 ................................................................................................................................. 60
Annexure 2 ................................................................................................................................. 65
Annexure 3 ................................................................................................................................. 67
Annexure 4 ................................................................................................................................. 68
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Redesigning the Organization Structure for AEGCL
Introduction
Introduction
Background of the Assam State Electricity Board
The Assam State Electricity Board (ASEB) was unbundled into five companies
by the State Government of Assam (GoA) in December 2004 under the
provisions of Electricity Act, 2003. The companies that were formed were Assam
Power Generation Corporation Limited (APGCL), Assam Electricity Grid
Corporation Limited (AEGCL), and three distribution companies named Lower
Assam Electricity Distribution Company Limited (LAEDCL), Upper Assam
Electricity Distribution Company Limited (UAECL), and Central Assam Electricity
Distribution Company Limited (CAEDCL).
The objectives of unbundling were to encourage efficiency, improve the quality
of service and increase the accountability of the management. Experience of the
last 6 years of unbundling suggests that though the Assam power sector has
improved, much scope for improvement in efficiency still remains. Some of the
main issues impeding the successful implementation of unbundling are:
• Partial autonomy with regard to financial management: The newly formed
generation, transmission, and distribution companies continue to be partially
autonomous with regard to financial management and operate under a
centralized cash flow mechanism. These expenses have been prioritized
among various heads. Financial management functions such as investment,
funding, and budgeting decision making are being carried out in consultation
with ASEB.
• Paucity of well-trained staff: This has resulted in dual charges for positions
that require specialized skills among companies. This leads to delays in
decision making and restricts the introduction of new initiative within the
companies.
• Employees running as a unified cadre: Despite the reorganization of ASEB
and the implementation of a staff transfer scheme, employees in the
successor companies have actually run as a unified cadre to protect inter-se
seniority and promotional avenues across the companies. Promotion of the
employees of the rank of Senior Manager (SM) and above is done through the
common seniority list maintained by ASEB for all companies. This is counterproductive for the employees and for the companies in the long-run as it
prevents the successful implementation of a company-specific structure
aligned with company level objectives and prevents the ability to build
necessary competencies that are essential for each company.
Background of Assam Electricity Grid Corporation Limited
Assam Electricity Grid Corporation Limited (AEGCL) was incorporated as a
State Public Sector Company under the Companies Act of 1956 and after being
restructured out of the Assam State Electricity Board, it was notified as the State
Transmission Utility.
Assam Electricity Grid Corporation Limited is the largest State Transmission
Utility in the North Eastern region. Its core business is to transmit electrical
power from electrical power bulk heads to the distribution company networks in
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Redesigning the Organization Structure for AEGCL
the state of Assam in an efficient and economical way. It is committed to
strategically serving interstate power flow. In addition to this, AEGCL transmits
and receives power across international borders.
AEGCL has a vast network base – with 46 sub stations having a total
transformation capacity of 3204 MVA and 68 transmission lines having a total
length of 4481 ckt km. Apart from this, there are several projects under planning
and many that have been approved or are under construction / execution. These
projects will enhance the transformation capacity by more than 3500 MVA and
the network length by more than 2500 ckt km. The vision of AEGCL, as
published in a document titled ‘Vision 2020’ by the organization itself, clearly
captures the organization’s image for its future and the key aspects it intends to
develop in order to achieve its goals. The document highlights the following:
• Ensuring that the transmission of power is carried out at an affordable cost
• Ensuring that the transmission network is able to cater to the demands of the
State of Assam
• Establishing best construction and O&M practices
• Developing skilled and satisfied internal customers having the ability to serve
external customers
• Developing an attitude towards social responsibility and adopt a policy of
corporate governance
• Stressing on a research and development wing for upgrading to new and
technologies and also improving the old ones.
• Exploring new avenues of business for the organization by utilizing existing
human and physical assets in the company and generating additional
revenues
• Excelling in project implementation
• Developing high standards of corporate administration
For the organization to be able to achieve these objectives, it has to overcome
both internal and external obstacles. With transmission losses amounting to
5.82% and with the threat of entry of private players, the time is right for the
organization to transform itself with corrective measures and prepare itself to
tackle the oncoming challenges.
Scope of this Study
The overall scope of this study includes:
• Reviewing and benchmarking of the existing organization structure with other
well-performing utilities and proposing appropriate head office and field
organization structures for each company, given the overall objectives of the
company
• Undertaking a human resource profiling exercise of the employees in
successor companies
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Redesigning the Organization Structure for AEGCL
• Analyzing and presenting options for a promotion policy that addresses
concerns regarding immediate transition and evolving requirements over a
five year period across successor companies
• Reviewing the efficacy of the existing performance management system and
proposing options to make it more objective and aligned to each successor
company objectives
• Proposing Key Performance Indicators for each company and analyzing
alternatives for an employee performance linked incentive scheme for each
organization in consultation with the company’s top management. This should
draw from experiences in other similarly placed organizations in the country.
This report pertains to study of re-designing the Organization structure of
AEGCL.
Further, the report is restricted to the study of the executive workforce from the
level of SM & above. The study pertaining to Manager & below including nonexecutive workforce is not covered under this study of the Organization
Structure of AEGCL.
Objectives of the Study
The objectives of carrying out this re-designing of the organization structure are:
•
To develop an organization structure at the corporate and field level and
bring broad functional clarity and accountability
•
To study the apex structure of few Indian utilities and recommend the
appropriate structure
•
To carry out human resource profiling and analyse the age and retirement
pattern for each organization
Approach & Methodology for the study
PwC has developed a comprehensive organizational design methodology to
assist with structural design, role design, associated linkages and performance
measures. The same is shown pictorially below (source PwC Gateway):
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Redesigning the Organization Structure for AEGCL
Redesigning
This report is limited to the study of organization structure for AEGCL. The
The
following approach was adopted while designing the same for AEGCL:
AEG
Understand Business Context, Expansion plans;
Understand and review the existing hierarchy, the
functional responsibilities,
responsibilities, the reporting
mechanisms, the main functional areas and the
geographical spread of operations etc.
Field visits were
conducted to Jorhat,
Silchar, Plant locations
Discussions were held to
understand various roles
and responsibilities and
staff allocations
llocations at
various functions
Benchmarking
with different
state utilities to
obtain industry
information
Options were generated
and deliberated and
recommendations made
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Redesigning the Organization Structure for AEGCL
The approach has 3 main stages:
Review and Analysis of the Current Structure: This entailed a review of the
existing structure and identification of potential areas for strengthening and
greater focus. The following tasks were conducted to achieve the same:
•
•
Stakeholder Consultation & Field Visits: The top level interactions with the
Chairman, Managing Director and CGMs were held to understand the
expectations of the client. Subsequently, discussions with next level of
hierarchy were conducted to review and understand the existing hierarchy,
the functions and reporting mechanisms, the functional areas at corporate
and field level, the geographical spread of operations, the expansion plans
etc.
Visits to the field offices in lower and upper Assam were also made.
Discussions were held to understand the various roles & responsibilities of
the employees and how various functions were being performed.
Please refer to Annexure 2 to see the offices that were visited
Identify Design Criteria and Benchmarking: The existing structure was
analyzed based on management coverage, span of control, key operating
priorities, expansion plans, top level functional clarity etc.
The top level structures of some of the state transmission companies were also
studied to identify improvement opportunities. The transmission companies used
for the benchmarking exercise are Maharashtra State Electricity Transmission
Co. Ltd, West Bengal State Electricity Transmission Co. Ltd and Delhi Transco
Ltd.
Develop Organization Structure, Validate and Finalize: Based on the
previous stages of the approach, the new organization structure for AEGCL was
designed. Then, after iterations and need based discussions with stakeholders
to discuss the proposed structure and gauge initial feedback, the final proposed
organization structure was redesigned and has been presented in this report.
Structure of the Report
This report on the organizational structure of AEGCL is divided into 3 chapters.
• Chapter 1 - Introduction: The first chapter is an introduction to the report and
covers the background of ASEB and AEGCL, objectives of the study and the
approach followed by PwC to conduct the study.
• Chapter 2 – AS-IS Analysis and TO-BE Recommendations: The second
chapter is an AS-IS analysis of the organizational structure and covers human
resource profiling, details of the present organization design and structure.
The AS-IS analysis is followed by TO-BE recommendations to enable a
comparison and clearly highlight the changes being recommended. The TO
BE structure is supported with a write-up on the Basis for recommendations,
Comparison of as-is & to-be manning-positions and Future scenario &
migration for the company.
• Chapter 3 – Conclusion: The third chapter of this report summarizes the broad
recommendations made for AEGCL.
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Redesigning the Organization Structure for AEGCL
•
•
•
•
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Annexure 1 – Benchmarking: Annexure 1 covers the
benchmarking of the organization structure of AEGCL with other
state utilities and highlights the key learnings of the benchmarking
exercise. The key learning is also aligned appropriately in chapter
2 to highlight structural implications.
Annexure 2 – Stakeholder Discussions, Key Points Discussed:
This summarizes some key issues raised during various
stakeholder meetings at HQ and field offices and the discussions
thereon.
Annexure 3 – District Map of Assam
Annexure 4 – List of Sub Stations with their transformation
capacity clubbed under the divisions to which they belong.
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Redesigning the Organization Structure for AEGCL
Redesigning
Organization
AS Present
IS Analysis
andStrucutre
TO BE Recommendations
AS--IS
IS Analysis and TO--BE
BE Recommendations
The Reporting Hierarchies
Hierarchies in AEGCL
A
There are various levels of hierarchies present in the organization.
organization. The following
diagram is a representation of the various levels of hierarchies (above the level
of AM) being followed in the company. The hierarchies are representations of
the legacies followed in the organization and can be used for quick referral.
Sl.
Earlier Designation
New Designation
1
Assistant Engineer (AE)
Assistant Manager (AM)
2
Assistant Executive Engineer (AEE)
Manager/Deputy
ager/Deputy Manager (M/DM)
3
Executive Engineer (EE)
Senior Manager (SM)
4
Superintending
uperintending Engineer (SE)
Deputy General Manager (DGM)
5
Additional
dditional Chief Engineer (ACE)
General Manager (GM)
6
Chief Engineer (CE)
Chief General Manager (CGM)
No
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Redesigning the Organization Structure for AEGCL
Human Resource Profiling
The HR profiling exercise has been carried out for the three companies (APDCL,
APGCL and AEGCL) together.
It has been carried out on the basis of the manpower data collected from the
office of the Director Personal and Deputy General Manager- Human Resource
(DGM-HR) of respective companies.
Based on the information available, employees have been classified into two
categories - Executive and Non Executive.
All employees belonging to grade 10 (G10) and above have been classified as
executives and all employees belonging to grade 9 (G9) and below have been
classified as non executives.
Details of the availability of the data in the data base collected from each
company are given below:
Company
AEGCL
APDCL
APGCL
Total
Number of Employees
Executives
Non-Executives
At HQ
At Field
At HQ
At Field
33
195
77
1550
110
494
424
10204
44
174
107
1113
187
863
608
12867
Total
1855
11232
1438
14525
E / NE
Ratio (%)
12 / 88
5 / 95
15 / 85
7 / 93
In this report, the HR profiling analysis has been carried out for AEGCL only.
The main observations that have been made on the basis of the profiling
exercise are as follows:
• In AEGCL, about 6% of the total employees are in the headquarters and about
94% of the total employees are in the field offices.
• In AEGCL, HQ executives form 30% of the total employees working in HQ
while field function executives form only 11% of the total employees working in
the field. For AEGCL as a company executives form 12% of the total
employees working.
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Redesigning the Organization Structure for AEGCL
Age Profiling
Age Profiling for Companies
Employees in Various Age Groups
!
"#
"#
## !
"#
The main observations that have been made on the basis of the profiling
exercise are as follows:
• The average age of AEGCL is 51 years.
• The average age of executives and non-executives do not vary much as
compared to the company average.
• Approximately 67% employees are above the age of 50 years and
approximately 66% executives are above the age of 50 years.
• The non executive to executive ratio for AEGCL is 7.
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Redesigning the Organization Structure for AEGCL
Retirement Profiling
Retirement Profile Company wise
(All Employees)
Retirement Profile Company Wise
(Executives)
$
$
%
%
%
%
%
%
%
%
%
%
%
%
%
%
Retirement Profiling SM & Above
&
$&
&
&
&
&
$&
&
&
&
&
%
%
%
%
%
%
%
The main observations that have been made on the basis of the profiling
exercise are as follows:
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•
Approximately 38% of the entire workforce of AEGCL will retire by calendar
year’16 (CY’16)
•
Approximately 40% executives of AEGCL will retire by CY’16
•
Approximately 8% of the executives belonging to the level of SM & above
will retire every year till CY’16
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Redesigning the Organization Structure for AEGCL
The AS-IS and TO-BE Structure
The present structure of AEGCL can be classified under three broad levels as
shown in the diagram below. The AS-IS analysis and TO-BE recommendations
for re-designing the organization structure of AEGCL have been presented in
the same format. The classifications are as follows:
Board
Level
1
Corporate
Level
2
Field
Level
3
Board Level: Board of Directors of AEGCL
The Board of Directors (BoD) of AEGCL has eight members and is headed by
the Chairman of the Board. The Managing Director (MD) is the lone functional
director of the board and has been delegated the powers to undertake
management and control of the affairs of the company. The rest of the board
members are non-functional directors.
The current board comprises of One Chairman, one Managing Director, Two
State Government Representative Directors (one each from Department of
Power and Department of Finance) and Four Independent Director (from
academic institutes, local repute etc)
Main Observations
• AEGCL Board of Directors has representation from the State Government.
• AEGCL Board has 4 independent Directors. The process of their appointment
/ nomination is specified in Article of Association.
• AEGCL has one functional Director as the Managing Director
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Redesigning the Organization Structure for AEGCL
Relevant Guidelines on Corporate Governance
The Department of Public Enterprises has laid out certain guidelines for
constitution of Board for Central Sector PSUs (Source: Guidelines on corporate
governance for CPSE 2007). The key points of the guidelines are:
• The Board of directors of the company shall have an optimum combination of
functional, nominee and independent directors.
• The number of functional directors (including CMD/MD) should not exceed
50% of the actual strength of the Board.
• The number of nominee directors shall be restricted to a maximum of two.
• In case of CPSEs listed in Stock Exchanges, the number of independent
directors shall be at least 50% of Board Members. In case of CPSEs not listed
in the Stock Exchanges, at least one-third of the Board Members should be
independent directors.
Experience from Other Utilities
The following table shows the composition of Board of Directors from some of
the other state utilities:
Indicator
No of
Directors
Directors
UHBVNL
OHPC
AP
Genco
AP
Transco
APNPDCL
APCPDCL
Functional
4
3
7
6
6
8
Govt Nominee
4
3
1
1
-
-
Other NonExecutive
-
4
2
2
2
-
Recent Board Size
8
10
10
9
8
8
The above table shows that the number of government nominated directors is
restricted in most utilities (except UHBVNL) to ensure more independence in
operations of the company. The functional directors in most utilities include
functional directors from Operations, Finance, Human resource, Technical /
Projects to assist the CMD/MD.
In UHBVNL (Haryana Discom), the company has formed a committee consisting
of functional directors of the company, known as “Committee of Whole Time
Directors (WTD) of the Company”. This is popularly called as WTD Committee.
The details and powers of the committee are incorporated in the Article of
Association of the company. The WTD committee has been assigned ‘Full
Powers’ for making various decisions in order to enable smooth functioning of
the company. The powers of the WTD committee are clearly defined and
separated out from the Board of the company.
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Redesigning the Organization Structure for AEGCL
Structural Implications
Sl.
No
Issue
Experience from other
Utilities
Recommendations /
Changes considered
1
Need for greater functional
representation at Board
level
Presence of 3-6
Functional Directors
depending upon the
size and focus of the
organization
Functional Directors at
Board Level for
Projects, Human
Resource, F&A and
Operations proposed to
be introduced
2
Internal Audit Function not
strengthened
Internal Audit function is
a separate function
directly reporting to the
head of the company
Internal Audit function is
proposed, which will
report to Board Audit
Committee
Recommendations
• The introduction of 4 functional directors’ positions at company Board level
namely Director Projects, Director Human Resources, Director F&A and
Director Operations is proposed. These positions are in addition to existing
position of MD of AEGCL.
• These positions at the Board level need to be selected based on merit and
functional requirements and must not be treated as posts by promotion.
Future Scenario and Migration
• During various stakeholder discussions, it was highlighted that incorporation of
the positions of functional director at the Board level requires appropriate
changes in the Article of Association of the company and thus, it may not be
feasible to fill these positions immediately.
• Therefore, an interim arrangement is recommended under which the proposed
positions of Directors may be replaced with Executive Directors (ED) for the
company. The appointment of EDs should be filled from the respective
functional stream only. For eg: it is recommended that the position of ED F&A
or ED Technical is filled from the respective finance or electrical cadre itself.
• The position of EDs should be retained till the time amendments in Article of
Association are made that enable the appointment Functional Directors at the
Board Level.
• A committee comprising EDs and MD should be formed and appropriate
powers should be delegated to the committee to ensure smooth functioning of
the company. As discussed above, UHBVNL (Haryana Discom) has similar
arrangement known as WTD Committee.
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Redesigning the Organization Structure for AEGCL
An overview of the entire structure of AEGCL
The Existing Top Level Structure
The diagram below captures the first level of management that is directly
reporting to the Managing Director (MD) and thus depicts the main functions
being carried out in the entire organization. The MD is the top most functional
position in AEGCL and is the person to whom all the functional heads in the
organization report.
For the purpose of clarity in the report, the functions of Finance and Accounts,
HR, Transmission Design, Civil, State Load Despatch Centre (SLDC), Meter
Relay Testing (MRT) and GM Head Quarter functions have been explained in
detail under the Corporate Structure, while the functions of the transmission and
transformation (T&T) zones/circles/divisions/sub stations in the Lower and
Upper Assam regions have been explained under the field structure. However,
wherever possible in the field structure, the functional presence of F&A, HR,
Civil etc have been captured in detail and an analysis on making the structure
conducive to maximum work effort has been made.
The top level reporting structure under the MD in the existing structure is as
follows:
Managing
Director
GM
Headquarter
DGM
HQ1
DGM
HQ2
Company
Secretary
Senior Medical
Officer
SM
Security
DGM
SLDC
DGM
HR
DGM
Civil
CGM
F&A
DGM
Design
GM
Audit
SM (#5)
Design
DGM
MRT
GM
LAZ
GM
UAZ
DGM (#2)
Circle
DGM (#2)
Circle
DGM
HQ2
DGM
HQ2
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Redesigning the Organization Structure for AEGCL
There are currently twelve positions reporting directly to the Managing Director.
The broad description of the functions reporting directly to MD is as follows:
Sl. No
Function / Position
Broad Roles & Responsibilities
1
CGM (Finance and
Accounts)
• Financial audit function headed by the General
Manager
• Compilations
• Establishments
• Budget and cash
• Pension and trust
2
GM (Head Quarter)
• All work of supervision and coordination at the level of
•
•
•
•
•
3
GM (Lower Assam
Zone
and
Upper
Assam Zone)
head quarters related to sub stations, managed by one
DGM
The same DGM is also involved in the planning and
scheme preparation of both sub stations and
transmission lines
All work of head quarters related to transmission lines,
managed by the second DGM
Tendering and monitoring that is under the supervision
of the second DGM
Commercial function that is managed by the second
DGM
The Procurement function that is divided between the
two DGM’s for sub stations and transmission lines
respectively
• Supervision and coordination of the activities being
undertaken at the circles under the zones
• Monitoring of new sub stations and transmission lines
• Operation and maintenance activities of the area
under respective jurisdiction
• Budget allocation to the entire field unit till the bottom
most rung
4
DGM (Civil)
• Preliminary construction works for sub stations
• Maintenance and upkeep of colonies
• Foundation tower works
• Extension of transmission lines
• Checking and approval of drawings for new stations
prepared by consultants and supervising construction
• Issuing completion certificate
• Conducting pre-construction surveys – land testing,
soil testing, water supply checks etc.
5
DGM (Transmission
design)
• Preparation
•
•
•
•
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of DPR’s for complete transmission
scheme
Study of power stations
Preparation of DPR’s for long term planning
Load flow studies
Preparation of bidding documents
Page 17 of 70
Redesigning the Organization Structure for AEGCL
Sl. No
Function / Position
Broad Roles & Responsibilities
• Commercial evaluation of bids/proposals/quotation
• Inspection in case of any problems arising
• Power clearance from telecom department to ensure
there is no clash with telecom lines
• Provision of services to the discoms on a chargeable
basis
6
DGM (HR)
• Manpower planning
• Recruitment activities
• Performance appraisals
• Training and development activities
• Establishment works for the entire organization
• Transfers and promotions
• Grievance redressal and disciplinary actions
7
DGM (SLDC)
• System operation and load dispatch for Assam
• Operational planning & scheduling and dispatch of
electricity
• Energy accounting and settlement
8
DGM (MRT)
9
Senior
Officer
10
• Supervision
and coordination of all testing and
commissioning jobs at the divisional level
• Ensuring timely technical support is extended to the
people in the field
• Maintenance of total grid discipline
Medical
• Approval of medical bills
• Liaison with local hospitals / medical practitioners
Company Secretary
• Act as company secretary on behalf of BoD
• Maintain details of Board meetings and other statutory
compliance
11
SM (Security)
• Handle activities related to security
Structural Implications
Sl.
No
Issue
Experience from other
Utilities
Changes to b e
considered
BOARD LEVEL
1
Need
for
greater
functional
representation
at
Board level
Presence of 3-6 Functional
Directors depending upon the
size
and
focus
of
the
organization
Functional Directors at
Board Level for Projects
and
Operations
proposed
to
be
introduced
2
Internal
Function
strengthened
Internal Audit function is a
separate
function
directly
reporting to the head of the
company
Internal Audit function is
proposed, which will
report to Board Audit
Committee
The span of control for head of
organization is between 5-10
Functions aligned and
clustered to reduce the
span of control and
Audit
not
CORPORATE LEVEL
1
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12 positions report
directly to the MD and
few of them are not
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Redesigning the Organization Structure for AEGCL
Sl.
No
Issue
Experience from other
Utilities
Changes to b e
considered
ensure CMD is reported
by
functional
head
which are of core
business requirements.
O&M clearly separated
from SLDC and kept
under zone operations
Engineering/design is
unified and added with
load
flow
analysis
activities
Project
planning,
execution monitoring,
material
planning,
tendering
grouped
separately
Separate
unit
is
maintained for ADB
related
project
management activities
Commercial
&
regulatory function is
separated
out
as
dedicated function
System studies, load
flow
analysis
is
introduced
under
engineering / design
function
To improve upon the
engineering efficiency
and
capture
field
practical
issues,
a
technical
inspection
wing is introduced to
have quality checks
during execution stage
The role of HR at head
office is enhanced with
transformational
responsibilities
and
circle level presence is
created
for
both
transformational
support
and
transactional activities
A separate cell is
proposed
‘Corporate
planning’ to look after
activities related to
identify
ways
to
enhance
corporate
governance, engage in
CSR activities, monitor
among core business
requirements
2
Core functions like
Project planning &
implementation,
execution,
design,
tendering, O&M etc.
are handled by many
functional heads
Functions are clustered &
grouped within their functional
line and arranged to handle
activities in unified manner
3
Strengthening of new
skills like commercial,
regulatory,
System
studies, load flow
analysis,
technical
inspection/quality
checks
Regulatory function is a part of
commercial function.
Many
utilities have separate RAUs.
Load flow analysis activities are
being introduced in various
utilities for systematic network
planning
4
HR Function has
limited field presence
and
is
involved
primarily
for
transactional
activities, thus limiting
its strategic objective
of company wide
transformational role
In its vision 2020,
company aims to
enhance
corporate
governance
framework,
work
towards
corporate
social responsibility,
continuously strive to
HR is a clearly defined
functions at head office with
reporting
to
head
of
organizations directly
5
PricewaterhouseCoopers
Some of the utilities have
created separate functions for
corporate social responsibility
and allocated budget for the
same
Page 19 of 70
Redesigning the Organization Structure for AEGCL
Sl.
No
Issue
improve
performance
Experience from other
Utilities
Changes to b e
considered
company performance
on
select
business
objectives
The utilities have approximately
4 – 6 sub stations under one
division office
One division can handle
approximately 4/5 sub
stations
and
when
number of sub stations
under division office
exceeds 6 numbers, the
work load rational need
to done either by
allocating sub stations
to nearby division office
or planning of a new
division
the
FIELD LEVEL
1
The addition of new
substation in near
future
will
have
bearing on the work
being handled by
division office
In the above analysis, it has been pointed out that certain functions are not
being performed separately. This does not imply that the function is not being
performed at all. In the report, wherever the functions are being performed, they
have been highlighted and explained.
TO BE STRUCTURE
The top level organization structure proposed for AEGCL is as follows:
Board Audit
Committee
Managing
Director
Company
Secretary & Legal,
PRO
SM
Internal Audit
DGM
Corporate
Performance Mtrg
Director
Projects
Director
HR
Director
F&A
Director
Operations
GM
Projects
DGM
Civil
GM
HR
CGM
F&A
CGM
O&M
GM
Engineering
SM
Technical
Inspection
DGM
Training, PMS
SM
Establishment
DGM
Commercial &
regulatory
PricewaterhouseCoopers
DGM
SLDC
Page 20 of 70
Redesigning the Organization Structure for AEGCL
The following is a summary of the key changes recommended:
• The four positions of functional directors – Director Projects, Director
Operations, Director F&A and Director HR have been introduced to have
enhanced representation of company at Board level and ensure effective
decision making for company operations.
• Internal audit is proposed to be a separate function to ensure that
independence is maintained while carrying out audit activities. The function will
take care of internal and statutory audit and preferably be supported by
external auditing firms. The internal audit function will report to board audit
committee
• The activities related to legal, PRO are proposed to be handled by company
secretary
• A new position of DGM Corporate Performance Monitoring cell is proposed for
corporate social responsibility, enhancing corporate governance framework
and monitoring corporate performance.
Each function and the related changes have been highlighted in detail under the
corporate and field structure respectively.
Comparison of As Is and To Be Man-in-Position
Designation
CGM
GM
DGM
SM
AM / DM / M*
CMO / MO
Total
Electrical
E
P
0
3
8
38
152
0
201
1
4
9
38
152
0
204
Civil
E
F&A
P
0
0
1
3
0
0
4
E
0
0
1
6
0
0
7
1
1
2
4
4
0
12
P
1
0
2
7
4
0
14
HR
E
Secretariat
P
0
0
1
0
1
1
3
0
1
1
2
8
1
13
E
P
0
0
0
1
0
0
1
Total
E
0
0
0
1
0
0
1
Remarks
P
1
4
12
46
157
1
221
2
5
13
54
164
1
239
Note:
1) The numbers mentioned in above table are based on our discussions at corporate office and on
assumption that all the field level circle heads and division heads positions are filled.
2) *: The count of AM / DM / M is based on the employee database.
3) E: Existing; P: Proposed
PricewaterhouseCoopers
Page 21 of 70
Redesigning the Organization Structure for AEGCL
Building Cadres and Promotional Avenues:
This section has been divided into two parts – Highlighting the concerns raised
by the stakeholders and Addressing the concerns raised by the stakeholder.
Concerns raised by the Stakeholders:
•
The various concerns raised by the stakeholders have been grouped under
two headings – Building of cadres in the company and Promotional avenues
for the executive workforce of the erstwhile ASEB, now belonging to APDCL,
AEGCL and APGCL respectively. The details under each heading is as
follows:
o
Building of cadres in the company: The main concerns in this regard
are as follows:
What are the new cadres that need to be introduced and how
can they be built in the company?
How should the existing cadres be strengthened?
How can attractive promotional avenues be built for
employees in each cadre?
o
Promotional avenues for the employees of erstwhile ASEB, now
belonging to APDCL, APGCL and AEGCL respectively: The main
concerns raised in this regard are as follows:
Inter Company Promotional Avenues: How can it be ensured
that employees belonging to the three companies post
restructuring do not feel at a disadvantaged position in terms
of promotional avenues as compared to the situation prior to
restructuring? In the pre restructuring scenario, employees
are eligible to move across the three companies to avail the
promotional opportunities. However, post restructuring, this
movement will be restricted. (for eg. In the current situation, it
is possible that a GM in AEGCL becomes CGM in
APDCL/APGCL, if any vacancy arises in APDCL/APGCL
respectively. But post re-structuring it will be possible for this
GM of AEGCL to become the CGM only when a vacancy
arises in AEGCL). In case the vacancy arises in the other
two companies before it arises in AEGCL, an employee will
feel he/she was better off in the pre restructuring scenario.
To conclude, how can it be ensured that employees don’t
feel that the other company is offering better promotional
avenues?
Promotional Avenues within a company: How can it be
ensured that all cadres within the same company have equal
promotional opportunities? For eg: An employee serving as a
DGM in the F&A cadre in AEGCL must not feel that he/she
lacks promotional opportunities as compared to a DGM in
the electrical cadre in AEGCL.
PricewaterhouseCoopers
Page 22 of 70
Redesigning the Organization Structure for AEGCL
How to ensure that the employees occupying the leadership
positions in each company (eg: at the CGM level), occupies
the position for a longer duration to have sufficient time to
build a vision and also be involved in the execution? At
present, the tenure of employees at these positions is limited
to 1-2 years.
Addressing the concerns raised by the Stakeholder:
•
Building Cadres for AEGCL:
o
The re-designing of organization structure for the three companies
has been conducted and the cadres proposed for three companies
are exclusively for the respective companies. This exercise for
AEGCL has built new cadres for HR stream and strengthened the
existing cadres of Electrical, F&A and Civil.
o
The aspects of building/strengthening each cadre have been
discussed below:
Electrical Cadre: This is the largest cadre in AEGCL. This
cadre serves the core function of the company and the top
most position of this cadre is the level of CGM. In the
redesigned organization structure, the presence of this
function across the HQ and across all levels of the field has
been maintained.
Overall, there has been an increase in the promotional
avenues among executives. There is no reduction at SM &
above level in the cadre. The additional post at the CGM,
GM and DGM level provide greater opportunities of
promotion for the executives.
Civil Cadre: In the redesigned structure, this cadre has been
given the positions of SM and DGM under various activities
both at HQ and field level (at circle level). The positions that
have not been given under this cadre are the level of GM
and CGM. These have been recommended as Post
Personnel (PP) posts. The PP concept is explained later
within this section.
Overall, there has been an increase in the number of
executives at SM level for this cadre. This provides greater
opportunities of promotion for the executives at AM / DM / M
level.
F&A Cadre: In the redesigned structure, this cadre has been
strengthened and has been given the positions of CGM,
DGM and SM level under various activities. The cadre is also
introduced at the zone level in the proposed organization
structure. The positions that have not been given under this
cadre are the level of GM. These have been recommended
as Post Personnel (PP) posts. The PP concept is explained
later within this section.
PricewaterhouseCoopers
Page 23 of 70
Redesigning the Organization Structure for AEGCL
Overall, there has been an increase in the promotional
avenues among executives. By introducing additional posts
at SM level, the promotional avenues have been increased
for AM / DM / M level.
HR Cadre: The presence of the HR cadre in AEGCL has
been very limited and is mainly handled by electrical cadre at
the field level. Thus, the redesigned structure has built this
cadre in the company. Twelve positions of HR at various
levels have been proposed. The positions of SM’s that have
been proposed are presently not occupied. Therefore, it is
recommended that lateral recruitment for filling these
positions be conducted immediately. Alternatively, it is also
possible to give an option to the existing DPMs (placed at
circle office but from electrical cadre) to switch over to the
HR cadre and carry out the functions respectively. Among
total twelve, eight positions have been recommended at the
entry level. In order to ensure that the cadre is built within the
company, the recruitment for thirteen positions must be
conducted keeping in mind that people who will fill this post
must have an appropriate HR background. Overall, the
recruitments at senior positions or at entry level positions
should be done among candidates with a background in HR
to help the company build this cadre effectively.
The position that has not been given under this cadre is the
level of CGM. This has been recommended as Post
Personnel (PP) posts. The PP concept is explained later
within this section.
•
Promotional avenues for the employees of erstwhile ASEB, now belonging
to APDCL, APGCL and AEGCL respectively
o
In dealing with the various issues arising with respect to promotional
avenues, a concept of Post Personnel (PP) has been used. Before
the concerns with respect to promotional avenues are addressed, a
brief description of the concept of PP is presented below:
‘Post Personal (PP)’ enables an employee to attain the next
level in the hierarchy and earn the benefits assigned to
higher position, despite that position actually not existing
within the structure. Once this employee retires, this post will
cease to exist and will return to the original proposed
position. For Eg: In the proposed organization structure of
one of the companies, the highest proposed position is GM
in a cadre. This means that the employee cannot get
promoted beyond the level of GM as there is no post
available above this. By introducing the concept of PP, the
employee will be promoted to the post of CGM based on
some set criteria (this needs to be defined in the PP policy
directive). He/she retains the position achieved through PP
till he/she retires. Post his/her retirement, the status of
PricewaterhouseCoopers
Page 24 of 70
Redesigning the Organization Structure for AEGCL
position in the structure is restored to GM level and the
promotion among successors will take place accordingly.
o
Dealing with inter company promotional avenues:
This refers to the situation where an employee on the
common seniority list who could have been promoted to the
next level in the pre-restructuring scenario now loses out on
the opportunity in the post-restructuring scenario. The
vacancy that arises is in the next company is filled by
someone else from that company and this person despite
being eligible for promotion gets left out as he is not working
in that company.
In order to deal with this issue, the following options are
recommended:
•
Give promotion to each employee who is likely to be
deprived of the next promotion
•
Allow PP based higher position to eligible employees
in other companies
•
Grant higher pay scale to deprived employees
equivalent to the promotion post.
In either case, these options can only be exercised till a
particular point of time. Beyond a certain point, when the
company has taken care of the majority of such cases,
individual cases can be handled and each aggrieved
employee can be dealt with at an individual level.
The retirement profiling of the three companies reveals that
by Calendar Year (CY) 2018, 60% of the total executives of
AEGCL would have retired. The same figures for APDCL
and APGCL are 62% and 60% respectively. Thus, by CY
2018, a majority of the executive workforce (more than 60%)
that is likely to be affected by the restructuring exercise
would have retired.
The PP Policy must then be made valid only till 2018, so that
these employees need not suffer. The situation post CY2018
needs to be reviewed and a separate solution can be created
when the business requirements are different and a different
set of solutions can be created.
o
Dealing with promotional avenues in different cadres of the same
company post restructuring:
This refers to the situation where employees belonging to
different cadres of the same company feel that they are
disadvantaged as they belong to a cadre that does not have
enough promotional avenues.
In order to deal with this issue, the following option is
recommended:
PricewaterhouseCoopers
Page 25 of 70
Redesigning the Organization Structure for AEGCL
•
Allow PP based promotions to deserving and eligible
employees in each cadre. This will be an
accommodation made for the employee to motivate
him/her to keep performing and ensure that the
promotional avenues are not blocked.
•
This policy of PP for cadre based promotions is not
time bound. This is because the structure itself does
not provide for the promotional avenue. So whenever
the employee hits a ceiling, a PP post must be
offered till the employee retires or becomes eligible
for the next level of promotion.
•
Following is the summary of cadre wise PP position
proposed to be introduced in AEGCL
Civil
CGM
PP
GM
PP
F&A
HR
PP
PP
DGM
SM
o
Increasing the tenure of Top Management, especially at the level of
CGM
It is recommended that the company creates an appropriate
policy to ensure that the employees occupying the position of
CGM have a minimum balance of service period (say three
years).
While preparing such policy for the company, the following
care must be taken:
•
The performers do not lose out on promotional
avenues as their balance of service is less then 3
years. For such employees, an interim arrangement
such as extension of service may be adopted.
•
The ineligible (based on balance of service period)
but senior employees do not lose out on their chance
to occupy CGM position. They may be granted
promotion either on PP basis or may be awarded
higher pay scale.
This policy will ensure the following:
PricewaterhouseCoopers
•
The average tenure spent by the CGM will increase
and
greater
time
will
be
available
for
conceptualization and implementation of an overall
strategy
•
The deserving employees do not lose out on
promotional opportunities
Page 26 of 70
Redesigning the Organization Structure for AEGCL
Corporate Level: Function wise Organization Structure of AEGCL
This section covers the structure of the corporate office as defined above for the
purpose of this report and the various functions being performed by the people
in the department.
The following pattern has been followed in the detailed explanation:
•
Finance and Accounts has been explained separately
•
Human Resources has been explained separately
•
Design, Civil, Project Planning and PMU has been explained under Projects.
The function of Commercial Regulatory has been discussed under this
section but the structure has been explained under the operation function
•
O&M, SLDC, Commercial & Regulatory, MRT have been explained under
the Operations function.
Finance & Accounts
The existing structure of the department is as follows:
CGM (F&A)
GM (Audit)
DGM 1
DGM 2
SM,
(Establishment)
PricewaterhouseCoopers
SM
(Compilation)
SM (Budget
and cash)
SM (Pension
and trust)
•
Chief General Manager (F&A): Key accountabilities of CGM are managing
the overall accounts of the company, expenditure on various accounts,
disbursement of pay etc. and reporting of annual report outcomes of
divisions like balance sheet and revenue accounts.
•
GM (Audit): Preparation of audit reports of revenue receipts and audit of
internal accounts of the company.
•
DGM 1: Presently on deputation
•
DGM 2: Is responsible for the overall management of four main functions:
establishment, compilation, budget & cash and pension & trust
Page 27 of 70
Redesigning the Organization Structure for AEGCL
-
SM (Establishment): The main responsibilities under this position
include management of salaries, general administration, issuance of
pay slips, transfers & postings, tender evaluation, pay fixation etc.
-
SM (Compilation): The main responsibilities under this position
include preparation of the final accounts for the HQ as well as other
accounts. However, currently activities related to tax, tariff and MIS
are also being managed by the compilation team.
-
SM (Budget and cash): The main responsibilities under this position
include allocation of budgets, resource planning. Currently, the same
SM is also looking into fund management and financial vetting.
-
SM (Pension and trust): The main responsibilities under this position
include management of the trust activities of pension, GPF and
related matters. This SM is involved in the assessment of pension for
retirees, crediting the same to respective accounts of pensioners /
family pensioners. He/she also monitors the activities related to new
pension schemes.
Structural Implications
PricewaterhouseCoopers
Sl.
No
Issue
Impact
Structural Implication/
Changes to be
considered
1
CGM
has
charge
dual
Increase in span of control and
dilution of focus
To
make
accountable
company
2
Tariff,
compilation and
activities
clubbed under
same SM
tax,
MIS
are
the
Lack of focus in management
as unrelated activities are
clubbed together
Need to segregate the
functions under different
heads managed under
different categories
3
Budget and cash,
financial vetting and
fund management
managed by one
SM
Lack of focus in management
as unrelated activities are
clubbed together
Need to segregate the
functions under different
heads managed under
different categories
4
Functions
of
establishment and
pension & trust that
can be clubbed
under the same
umbrella have been
split under 2 SM’s
Replication of work and skill
All establishment
should be unified
the
for
CGM
one
works
Page 28 of 70
Redesigning the Organization Structure for AEGCL
Basis of Recommendations
The following table analyses and highlights the existing functions that are being
performed, functional heads who are performing them, and how they should be
aligned in the new structure. The To-Be structure has been designed to address
the current and future priorities of AEGCL keeping in mind the structural
implications discussed earlier.
Broad Functions
Existing Functional
Heads
Proposed Functional Groups
Audit
GM
Assigned under Board Audit Committee
Budget & HQ Cash
DGM
Budget, Taxation, Compilation, Corporate Account
Billing & Subsidiary cash
DGM
Budget, Taxation, Compilation, Corporate Account
Compilation
DGM
Budget, Taxation, Compilation, Corporate Account
Reconciliation
DGM
Budget, Taxation, Compilation, Corporate Account
Taxation
DGM
Budget, Taxation, Compilation, Corporate Account
Corporate Account
DGM
Budget, Taxation, Compilation, Corporate Account
Corporate Finance
DGM
Corporate Finance, Fund Management, Project Finance
Project Finance &
Resource mobilization
DGM
Corporate Finance, Fund Management, Project Finance
GPF
DGM
Establishment, Pension, NPS, PF
Establishment
DGM
Establishment, Pension, NPS, PF
Pension
DGM
Establishment, Pension, NPS, PF
GAD
DGM
Establishment, Pension, NPS, PF
TO BE Structure
The following structure is proposed for the F&A Department:
Director
F&A
CGM
F&A
DGM
Corp A/c, Budget,
Taxation, Compile
SM
Budget,
Compilation,
Compliance
PricewaterhouseCoopers
SM
Corp A/c,
Taxation, Billing
SM
Establishment
DGM
Corp Fin, Fund
Mgt, Proj Fin
SM
Corporate Finance
Page 29 of 70
Redesigning the Organization Structure for AEGCL
The changes proposed under CGM – F&A have been highlighted below:
•
The functions under CGM – F&A are aligned to support the F&A activities of
the company and create clear accountability for functional heads under
CGM – F&A.
•
The activities related to taxation, new pension scheme, project finance are
introduced to address the emerging needs of the organization and
strengthen the finance function.
Comparison of As Is and To Be Man-in-Position
Designation
CGM
F&A
E
Remarks
P
1
1
GM
1
0
DGM
2
2
SM
4
7
AM / DM / M
4
4
12
14
One for Internal audit, one for
each zone
One for each circle
CMO / MO
Total
Future Scenario and Migration
•
PricewaterhouseCoopers
The concerns related to the post of Director F&A have been discussed
earlier. In case the post of Director F&A or Executive Director F&A is not
filled, then the CGM F&A will head the function and all functions reporting
directly to Director F&A in the proposed structure will report to CGM F&A.
The CGM F&A will report to MD AEGCL in this case.
Page 30 of 70
Redesigning the Organization Structure for AEGCL
Human Resources
The existing structure of the department is as follows:
DGM (HR)
AM
• DGM (HR): The DGM HR is entirely responsible for planning, supervising and
monitoring all the HR functions across the organization.
• AM (HR): There is no clearly defined responsibility or role for this AM. Since
he is the only one who is assisting the DGM (HR) in the corporate office, the
work allotted is on an ad-hoc basis and done as and when the need arises.
Structural Implications
PricewaterhouseCoopers
Sl.
No
Issue
Impact
Structural
Implication/Changes to be
Considered
1
Top
structure
comprised of too few
people to execute
functions for the entire
organization
Too much burden on the
HR
department
that
makes
it
more
transactional
than
transformational in nature.
No
functional
accountability
in
the
department
To increase the levels of
hierarchy in this department
and
increase
the
responsibilities too
2
Lack of focus on
various HR activities
such as recruitment,
performance
appraisal, manpower
planning, training etc
Lack of a strategic human
capital development plan
for the organization
Need to clearly allocate
specific functions to the
officers to ensure that the
activity is conducted in the
entire organization
3
Recruitment function –
highly centralized
Increases burden on the
DGM HR. This can easily
be conducted at the field
level, at least for Grade 3
and 4 level of employees
Need
to
establish
recruitment as a function that
is more strategic in nature
and can plan strategies and
policies according to org.
needs
4
Lack of linkage of HQ
with field
Lack of strategic initiatives
and focus. Strategic level
involved
in
micro
management.
Field should be integrated
with the HQ in a manner that
it gives appropriate inputs for
policy
and
strategy
formulation.
Page 31 of 70
Redesigning the Organization Structure for AEGCL
Basis of Recommendations
The following table analyses and highlights the existing functions that are being
performed, functional heads who are performing them, and how they should be
aligned in the new structure. The To-Be structure has been designed to address
the current and future priorities of AEGCL keeping in mind the structural
implications discussed earlier.
Broad Functions
Existing Functional
Heads
Proposed Functional Groups
Administrative matters
DGM
IR, Welfare, Admin
Employee grievance, Disciplinary matters
DGM
IR, Welfare, Admin
Industrial relations, union matters,
Employee welfare
DGM
IR, Welfare, Admin
Employee establishment matters
DGM
Establishment
Recruitment & manpower planning
DGM
Establishment
Promotions
DGM
Establishment
Transfers & postings
DGM
Establishment
Medical
SMO
Medical
Employee Legal
DGM
Function assigned to Company Secretary
Training & development
DGM
Training , PMS
Performance appraisals
DGM
Training , PMS
TO BE Structure
The following structure is proposed for the HR Department:
Director
HR
GM
HR
Senior Medical
Officer
PricewaterhouseCoopers
SM
Admin, IR,
Welfare
DGM
Training, PMS
SM
Establishment
Page 32 of 70
Redesigning the Organization Structure for AEGCL
The changes proposed under GM – HR have been highlighted below:
•
The proposed position of GM – HR is expected to bring in a more
transformational role of HR. Therefore, the functions introduced under the
GM – HR ensure functional clarity and accountability keeping in mind the
fact that these functions are essential for employee development and career
progression.
•
The position of SM Establishment will handle activities related to employee
establishments. SM Admin and IR will look into matters relating to welfare,
IR, manpower planning
•
DGM – Training, PMS will ensure the introduction of employee development
initiatives and coordinate with field offices
•
The position of senior medical officer formerly reporting to the MD will now
report to GM HR.
Comparison of As Is and To Be Man-in-Position
Designation
HR
E
Remarks
P
CGM
0
0
GM
0
1
DGM
1
1
SM
0
2
AM / DM / M
1
8
CMO / MO
1
1
Total
3
13
One at each circle, one to
support each SM at HQ, two
for DGM
Future Scenario and Migration
•
PricewaterhouseCoopers
The concerns related to the post of Director HR have been discussed
earlier. In case the post of Director HR or Executive Director HR is not filled,
then the GM HR will head the function and all functions reporting directly to
Director HR in the proposed structure will report to GM HR. The GM HR will
report to MD AEGCL in this case.
Page 33 of 70
Redesigning the Organization Structure for AEGCL
Projects
The following functions have been discussed under Projects:
• Transmission design
• Projects, IT and Commercial
• Civil
The structure for all have these have been clubbed under Director Projects and
discussed at the end of this section
Transmission Design
The existing structure of the department is as follows:
DGM
(Transmission
design)
SM#5
Manager
• DGM (Transmission design): This DGM is responsible for the overall
functioning of the department. He reports directly to the MD and works in
coordination with the entire organization for all design related work.
• There is no specific work division between the 5 SM’s. Work is done as and
when required and is divided by the DGM between the 5 SM’s as per the
requirement. There is one manager to assist all the 5 SM’s in this department.
Structural Implications
PricewaterhouseCoopers
Sl.
No
Issue
Impact
Structural Implication/
Changes to be considered
1
DGM
(Transmission
design)
reporting
directly to the MD and
not synchronized with
the main technical
function
of
the
company
Too
many
people
reporting to the MD. The
focus of the MD is diluted
with scattered information
reaching him/her
To streamline this function
and to club it under the
technical function of the
entire organization
2
Lack of division of
work among the SM’s
This indicates a lack of
clarity among employees
regarding their roles and
responsibilities
and
allotment of work on adhoc basis. Resources are
There is a need to create
proper work division among
the SM’s with clearly defined
responsibilities.
Page 34 of 70
Redesigning the Organization Structure for AEGCL
Sl.
No
Issue
Structural Implication/
Changes to be considered
Impact
over/under utilized when
there is no rationalization
in division of work
3
Lack of integration
with field level and
lack of clarity in
interaction with the
projects/O&M team
This leads to delay in
achievement
of
organizational goals. In
case design department is
not receiving feedback on
what it is designing, it will
not be able to synchronize
with the main activity of
the organization
There is a need to bring out
a step wise interaction
between
the
project
department
and
design
department holding clear
accountability for services
rendered
Basis of Recommendations
The following table analyses and highlights the existing functions that are being
performed, functional heads who are performing them, and how they should be
aligned in the new structure. The To-Be structure has been designed to address
the current and future priorities of AEGCL keeping in mind the structural
implications discussed earlier.
Broad Functions
Existing Functional Heads
Proposed Functional Groups
Overall Design
DGM
Overall
Preparation of DPR
DGM
Engineering, R&D S/Stn and TRL
Preparation of bidding
documents
DGM
Engineering, R&D S/Stn and TRL
Commercial evaluation
DGM
Engineering, R&D S/Stn and TRL
Right of Way/Power Clearance
DGM
Function assigned under GM Projects
Study of Power Stations
DGM
System and Load Flow Studies
Load Flow Studies
DGM
System and Load Flow Studies
TO BE Structure
The structure has been elaborated under Director Projects at the end of this
section.
PricewaterhouseCoopers
Page 35 of 70
Redesigning the Organization Structure for AEGCL
Comparison of As Is and To Be Man-in-Position
Designation
Electrical
E
Remarks
P
CGM
0
0
GM
0
1
DGM
1
0
SM
5
3
Total
6
4
Projects, IT and Commercial and Regulatory
GM Head Quarter (HQ)
The existing structure of the department is as follows:
GM (HQ)
DGM 1 (S/Stn
Planning)
DGM 2 (TRL
Planning and
Tariff)
SM # 5
SM # 2
AM # 4
AM # 1
• GM (HQ): The GM (HQ) is in charge of the supervision and coordination of all
activities related to system augmentation, network expansion and planning &
contracting of new projects for sub stations and transmission lines. He/she
also looks after project planning and commercial functions. Two DGMs report
to the GM:
PricewaterhouseCoopers
Page 36 of 70
Redesigning the Organization Structure for AEGCL
DGM (Sub station): The main responsibility area of this DGM is related to
sub stations and ADB projects. He is also doing the job of planning and
preparation of schemes for ADB transmission lines and sub stations. Apart
from this, he is responsible for the supervision of five SM’s reporting to him
who are performing the following functions:
-
SM (1): Repair and Maintenance and O&M works.
-
SM (2): Nodal officer for ADB Projects
-
SM (3): IT manager and computation of bills and price rise for ADB
projects. Also looks into internal projects like Vision 2020, EOI
analysis for 750 mm of optical fibre for the company (basically
support in all communication activities)
-
SM (4): ADB Projects (communication part), responsible for
expansion of SLDC’s, RTU’s, communication equipment etc.
-
SM (5): Deposit works for bulk consumers, coordinator for technical
training, placing orders for testing based on requirement from
engineers, small O&M activities, and additional charge of 400 KV
sub stations.
DGM (Transmission lines): This DGM looks into all work related to the non
ADB Transmission lines across the entire state. This work includes all
O&M works and receiving field reports. The other functions carried out by
this DGM include (i) All new constructions under NLCPR (ii) All NDC works
(iii) monitoring SLDC works (iv) granting of funds for Transmission Lines
for all those that are exceeding the budget allocated – ie, all Central Pool
Allocations (v) All work related to turnkey projects (vi) tendering,
contracting and monitoring of existing and non ADB transmission lines.
This DGM has two SM’s reporting to him. Their functions are:
-
SM (1): All work related to transmission lines
-
SM (2): Managing one 220 KV TRL, AERC works, ARR filing and
tariff petition, monitoring of SLDC.
• Procurement and material management function: Currently, the function of
procurement is divided between the two DGM’s and the seven SM’s. They
procure material related to the following:
-
For schemes prepared by them for their function
-
Supporting the DGM’s of circle offices for out of budget issues.
The items procured are generally heavier in nature. These items, when
procured, are sent directly to the site and handed to the resident engineer
(RE). Thus, there is no need for a store keeper. Store keepers, however, are
present but not uniformly distributed across sub stations. In sub stations where
store keepers are present, the material is stored at the sub-station itself.
PricewaterhouseCoopers
Page 37 of 70
Redesigning the Organization Structure for AEGCL
Structural Implications
Sl.
No
Issue
Impact
Structural Implication/
Changes to be considered
1
Commercial Function
being performed by
the DGM looking into
technical matters of
TRL’s and non-ADB
projects
Lack of attention to a
function that deserves to
be a full fledged function
To
create
a
separate
function that looks into
commercial and regulatory
aspects of the company
2
DGM 1 is managing
IT, ADB and sub
stations while DGM 2
is looking into TRL’s,
non ADB projects and
commercial function
Unrelated
and
over
burdening
of
work
pressure on DGM’s: lack
of focus and efficiency on
any
function,
over
burdening of DGM’s
To create a structure with
proper work division by
holding
different
people
responsible
for
different
aspects of the Transmission
business
3
Dual charge held by
one DGM – holds
charge of DGM (MRT)
as well as DGM (HQ)
Increase in span of control
that
makes
tasks
unmanageable. Lack of
focus on part of the
manager due to work
pressure and inability to
devote time due to a
particular issue
To create a structure with
proper work division by
holding
different
people
responsible
for
different
aspects of the Transmission
business
Basis of Recommendations
The following table analyses and highlights the existing functions that are being
performed, functional heads who are performing them, and how they should be
aligned in the new structure. The To-Be structure has been designed to address
the current and future priorities of AEGCL keeping in mind the structural
implications discussed earlier.
PricewaterhouseCoopers
Broad Functions
Existing Functional Heads
Proposed Functional Groups
ARR, Tariff Petition
DGM – II
Commercial and Regulatory (now
recommended under Director Operations)
ADB Project Monitoring
DGM – I
PMU
Overall System Strengthening and
Planning
GM
Projects
Substation planning
DGM – I
Projects, Works, Schemes
R&M, O&M works S/Stn
DGM – I
Projects, Works, Schemes
IT, Billing and Internal Projects
DGM – I
Projects, Works, Schemes
Communication, RTU'
s
DGM – I
Projects, Works, Schemes
Deposit Works, Technical Training
DGM – I
Projects, Works, Schemes
TRL Planning
DGM – II
Projects, Works, Schemes
R&M, O&M works TRL
DGM – II
Projects, Works, Schemes
Page 38 of 70
Redesigning the Organization Structure for AEGCL
Broad Functions
Existing Functional Heads
Proposed Functional Groups
Procurement and Material
Management
DGM – II
Projects, Works, Schemes
Field Inspection, Quality Control
DGM – I
Technical Inspection
None
Corporate Performance Monitoring System
(under DGM CPMS)
CS
CS, PRO, Legal, Security (under Company
Secretary)
CSR, Corporate Performance
Monitoring, Corporate Governance
Framework
Company Secretariat,PRO,
Corporate Legal
TO BE Structure
The structure has been elaborated under GM Projects under Director
Operations at the end of this section.
Comparison of As Is and To Be Man-in-Position
Designation
Electrical
Secretariat
Total
E
E
E
P
P
P
CGM
0
0
0
0
0
0
GM
1
1
0
0
1
1
DGM
1
3
0
0
1
3
SM
7
8
1
1
8
9
Total
9
12
1
1
10
13
Civil
The existing structure of the department is as follows:
DGM (Civil)
PricewaterhouseCoopers
SM,(Guwahati
Works Division)
SM (Nagaon)
AM/JM#5
JM#1
SM (Jorhat)
AM for DGM
Office
AM/JM 4
Page 39 of 70
Redesigning the Organization Structure for AEGCL
• The DGM (Civil) is responsible for the entire supervision and coordination of
the various activities and for the functioning of the entire department. Each SM
under the DGM is responsible for the civil works in their respective areas and
renders his/her duties accordingly.
Structural Implications
Sl.
No
Issue
Impact
Structural Implication/
Changes to be considered
1
Lack of integration
between the civil and
electrical circle
The work that gets done
is not as per utmost
priority due to lack of
clarity on both ends
Need to create a manner of
integrating the civil function
with the electrical circle and
define the corporate Civil
function more clearly
Basis of Recommendations
The following table analyses and highlights the existing functions that are being
performed, functional heads who are performing them, and how they should be
aligned in the new structure. The To-Be structure has been designed to address
the current and future priorities of AEGCL keeping in mind the structural
implications discussed earlier.
Broad Functions
Existing Functional
Heads
Proposed Functional Groups
Overall Civil
DGM
Civil
Field Civil Maintenance
DGM
Function assigned to Circle O&M
Guwahati Works
Division, design,
monitoring
DGM
Design
Field Coordination
DGM
Coordination
TO BE Structure
The structure has been elaborated under Director Projects at the end of this
section.
PricewaterhouseCoopers
Page 40 of 70
Redesigning the Organization Structure for AEGCL
Comparison of As Is and To Be Man-in-Position
Designation
PricewaterhouseCoopers
Electrical
E
Remarks
P
CGM
0
0
GM
0
0
DGM
1
1
SM
3
6
Total
4
7
Two at HQ and 4 at each
circle office
Page 41 of 70
Redesigning the Organization Structure for AEGCL
TO BE Structure under Director Projects
The following structure is proposed under Director Projects:
Director
Projects
SM
Technical
Inspection
GM
Engineering
DGM
Civil
SM
Engg, R&D – Sub
Stn
SM
Civil Design
SM
Engg, R&D - TRL
SM
Coordination
SM
System Study,
Load Flow
GM
Projects
DGM
Project, Works,
Schemes
DGM
PMU
SM
SM
Planning, Project
Mtrg
SM
SM
ADB Fund Mgt,
Nodal Officer
SM
SM
Environment &
Resettlement
R&M, O&M, Deposit
works – TRL & S/Stn
Mtrl Planning,
Tendering, Contract
Execution Mtrg,
RoW, Field Survey
SM
IT, Billing,
Communication
The changes proposed under Director – Project have been highlighted below:
PricewaterhouseCoopers
•
The position of SM Technical Inspection is proposed to take care of field
inspections / quality checks of various projects while in execution stage. This
inspection will provide inputs to design team for taking corrective measures
and built in the practical aspects of execution thus enhance design /
engineering effectiveness.
•
The civil function will support the project activities and field civil activities.
SM civil design at HQ will provide support to civil design related to new
projects. The mechanism to integrate corporate office civil function with field
zonal offices, civil maintenance of colonies & buildings of AEGCL has been
created by proposing a position of SM – Coordination under DGM Civil.
•
The existing position of DGM HQ is now renamed as DGM – Commercial &
Regulatory. The position is supported by two SMs and will perform activities
related to regulatory, tariff, commercial & compliance.
•
The position of GM – Engineering is proposed to take care of design, R&D
activities for Substation and Transmission lines separately. Under this
Page 42 of 70
Redesigning the Organization Structure for AEGCL
position, additional function of system studies and load flow analysis is also
introduced.
•
The existing position of GM HQ is renamed as GM Projects and will be
responsible for entire project activities in the company. The new position of
SM IT is created under DGM Project works and schemes to take care of all
IT related projects and a separate position of SM Execution monitoring,
RoW is created under DGM Projects, Schemes to take care of monitoring of
field execution and coordinate with appropriate bodies for RoW matters.
The structure that has been proposed ensures that each step in the process of
project management is clearly highlighted and functional responsibilities are
fixed using reporting hierarchies. Before the relation between the GM
(Projects) and GM (Engineering) is explained, it is imperative to understand
the work flow. The following diagram captures the same:
Inputs from field
Scheme preparation
Design based
Project tendering and
for projects
on scheme
contracting; award
contract
Execution
Monitoring,
Completion
Inspection
Based on the diagram above, the interaction between the GM (Projects) and
GM (Engineering) will be as follows:
The SM (R&M) under the DGM (Projects) will be receiving the inputs from the
field in a specified format which will measure the performance of the sub
stations and TRL’s under various parameters. Based on these inputs, this SM
and the DGM (Projects and schemes) will prepare the project scheme which
will be approved by the GM (Projects).
Once this is complete, the scheme will be handed over to the GM
(Engineering) for design preparation. Depending on what the scheme is for,
the GM (Engineering) will allocate the responsibility to the SM’s under him.
The final design once prepared will again be handed over to the GM (Projects)
for material planning, tendering and contracting. The job of this SM (Material
PricewaterhouseCoopers
Page 43 of 70
Redesigning the Organization Structure for AEGCL
Planning, Tendering and Contracting) will be complete once the final contract
is awarded.
Then, the project is handed over to the field for execution. This will be
monitored by the GM/DGM/SM of the jurisdiction area in which the project is
commissioned. While it will be the duty of the field staff to ensure timely
execution of the project, the SM (Execution monitoring) will be responsible for
monitoring this at HQ. This will ensure that the field staff does not get
lackadaisical in executing the project and that there will be someone from the
HQ to constantly monitor the progress of the project. Once the project is
complete, the completion certificate should also have a sign off from the SM
(execution monitoring). This will ensure accountability in the system of project
management. The SM (execution monitoring) will also be responsible for the
functions of Right of Way (ROW), field surveys etc.
PricewaterhouseCoopers
Page 44 of 70
Redesigning the Organization Structure for AEGCL
Operations
The following functions have been discussed under Operations:
• SLDC
• MRT
• For Operation and Maintenance, the structure has been discussed under field
level organization structure of the same report.
The structure for all of these have been clubbed under Director Operations and
discussed at the end of this section. While the Commercial and Regulatory
function has been discussed earlier under projects, the structure has been
included under the Director Operations.
SLDC
The existing structure of the department is as follows:
DGM (SLDC)
SM (Ghy comm
div)
SM (Jorhat comm
div))
SM (Operations)
SM (Direct
assistant)
SM (Khp s/stn)
SM Sarusajai s/
stn)
• DGM (SLDC): The DGM (SLDC) is in charge of ensuring the proper
functioning of the communication divisions and ensuring smooth operations of
the entire SLDC wing. Apart from this, he is also responsible for the entire
functioning of the 132KV Kahelipara sub station and the 220 KV Sarusajai sub
station. Both these stations actually belong to the Lower Assam Zone but the
DGM (SLDC) has been given the charge of monitoring these sub stations.
PricewaterhouseCoopers
-
SM (Guwahati and Jorhat communication division): These two SM’s
are mainly responsible for supervising turnkey projects and
maintaining sub stations (SCADA upto 132KV).
-
SM (SLDC Operations): This SM is mainly responsible for all
operation works related to SLDC.
-
SM (Kahelipara and Sarusajai sub stations) – These SM’s are the
resident engineers of these sub stations and are responsible for the
entire O&M operations and day to day functioning of these sub
stations. These stations fall under the Lower Assam Zone but
currently instead of reporting to the GM (Zone), they report to the
DGM (SLDC).
Page 45 of 70
Redesigning the Organization Structure for AEGCL
Structural Implications
Sl.
No
Issue
Impact
Structural Implication/
Changes to be considered
1
SLDC burdened with
the maintenance of
sub divisions
Lack of focus on either
functions
To hand over the jurisdiction
of the sub stations to T&T
electrical circles
Basis of Recommendations
The following table analyses and highlights the existing functions that are being
performed, functional heads who are performing them, and how they should be
aligned in the new structure. The To-Be structure has been designed to address
the current and future priorities of AEGCL keeping in mind the structural
implications discussed earlier.
Broad Functions
Existing Functional
Heads
Proposed Functional Groups
Communication and SLDC
activities
DGM
SLDC
O&M of 2 sub stations
DGM
Function assigned to Circle O&M
Communication SCADA upto
132 KV
DGM
Communication Division Jorhat and Guwahati
SLDC Operations
DGM
SLDC Operations
TO BE Structure
The structure has been elaborated under Director Operations at the end of this
section.
Comparison of As Is and To Be Man-in-Position
Designation
PricewaterhouseCoopers
Electrical
E
Remarks
P
CGM
0
0
GM
0
0
DGM
1
1
SM
6
3
Total
7
4
Page 46 of 70
Redesigning the Organization Structure for AEGCL
Meter Relay Testing
The existing structure of the department is as follows:
DGM (MRT)
SM (Bongaigaon)
SM (Guwahati)
SM (Tezpur)
SM (Jorhat)
SM (Protection
cell)
SM (Silchar)
SM (Tinsukia)
• DGM (MRT): The DGM (MRT) is in charge of ensuring the proper functioning
of the entire MRT division and heads the entire unit. Apart from this, he is also
a member of the North Eastern Regional Power Cell.
o
The MRT function is divided into 6 divisions to be able to service
the entire state of Assam. MRT has two Laboratories (LABs) and
two transformer repair workshops (TRW’s) at Guwahati and Jorhat
respectively. The department also maintains oil filtration plants.
o
The function has now been changed and is called Testing and
Commissioning (T&C).
o
The two boxes in the above structure that are dotted are those
divisions which exist but which are not currently being headed by
anyone. These units are currently not headed by an SM.
-
PricewaterhouseCoopers
SM (MRT Divisions): The SM is the overall in charge of the MRT
divisions that renders a set of mostly preventive and corrective
functions. The main MRT division functions are to:
o
Extend technical support to all sub stations – in case of fault,
analyse the problem, identify fault and rectify only it the fault is
related to relay.
o
Condition monitoring of transformers to avoid break down.
Page 47 of 70
Redesigning the Organization Structure for AEGCL
An indicative structure of the MRT division headed by SM is as follows:
SM (Guwahati)
Manager (Narengi
office)
Manager (MRT
sub divisions) # 3
Manager (Lab)
Manager (TRW)
M/AM#2
M/AM#3
AM#1
-
Function of the LAB
LAB is mainly for oil testing that checks for 17 characteristics of oil. The LAB
checks regularly for characteristics such as viscosity, moisture content,
resistance, fresh point, acidity etc. and also for preventive maintenance.
Conducting this function ensures that failure of the transformer is prevented.
Periodic checking will ensure that the transformer lives through its entire life.
-
Function of the Transformer Workshop (TRW)
This unit is involved in the maintenance and repair of transformers of the
distribution company. Interactions revealed that the reason why it is actually
with the transmission company is that they have the skill to perform this
function. Else, it should actually be with the distribution company as only
distribution transformers are repaired here.
-
SM (Protection cell): Functions of the protection cell are:
The protection cell functions like a central agency in AEGCL that
looks after the total protection of the grid. They act as an extremely
specialized function that provides support to the MRT division
itself. They are involved in design, modification, investigation of
disturbance and identifying areas where improvement is needed.
Structural Implications
PricewaterhouseCoopers
Sl.
No
Issue
Impact
1
2 divisions of MRT left
untended
Difficulty
makes
difficult
Structural
Implication/Changes to be
Considered
to commute,
administration
Remap the MRT divisions to
overlap with T&T divisions
Page 48 of 70
Redesigning the Organization Structure for AEGCL
Sl.
No
Issue
Impact
Structural
Implication/Changes to be
Considered
2
TRW as a function
under
transmission
company – need to
check
actual
profitability
of
the
function
In case a revaluation
shows that the function is
a cost rather than being
profitable, the company
will be paying for serving
the distribution company
Reduction in the revenues of
the
organization,
direct
impact on profitability. Need
to analyze if the function is
profitable, and even if it is,
whether it should be retained
with the company or not.
3
Silchar and Tinsukia
are the farthest places
and does not have
active MRT unit
Difficult to attend MRT
needs at quick time
Remap the MRT divisions to
overlap with T&T divisions
Basis of Recommendations
The following table analyses and highlights the existing functions that are being
performed, functional heads who are performing them, and how they should be
aligned in the new structure. The To-Be structure has been designed to address
the current and future priorities of AEGCL keeping in mind the structural
implications discussed earlier.
Broad Functions
Existing Functional
Heads
Proposed Functional Groups
Overall Testing Commissioning, LAB, TRW
DGM
Testing and Commissioning
Preventive and corrective measures
(Division Wise)
DGM
Testing and Commissioning
System Protection and Testing
DGM
Testing and Commissioning
Sample Collection and Testing
DGM
Testing and Commissioning
Protection Cell
DGM
Protection Cell
TO BE Structure
The structure has been elaborated under Director Operations at the end of this
section.
PricewaterhouseCoopers
Page 49 of 70
Redesigning the Organization Structure for AEGCL
Comparison of As Is and To Be Man-in-Position
Designation
Electrical
E
Remarks
P
CGM
0
0
GM
0
0
DGM
1
1
SM
5
5
Total
6
6
TO BE Structure under Director Operations
The following structure is proposed under Director Operations:
Director
Operations
CGM
O&M
GM
LAZ
DGM
SLDC
GM
UAZ
DGM
Testing &
Commissioning
SM
T&C (#4)
Protectin Cell (#1)
Security Officer
DGM
Commercial &
Regulatory
SM
Communication
Div, Jorhat
SM
Regulatory
SM
Communication
Div, Guwahati
SM
Compliance,
Commercial
SM
SLDC Operations
The changes proposed under Director – Operations have been highlighted
below:
•
PricewaterhouseCoopers
The SLDC function is proposed to be free from O&M of two sub stations.
These sub stations will be transferred to one of the circle under Lower
Assam zone. This will bring dedicated focus towards SLDC function and
clear accountability.
Page 50 of 70
Redesigning the Organization Structure for AEGCL
PricewaterhouseCoopers
•
The position of CGM O&M is proposed for single point accountability and
clear responsibility for entire O&M related activities of the company. The
functions placed under CGM O&M are zonal operations, testing &
commissioning and security functions.
•
Under DGM - testing & commissioning (T&C); four T&C divisions are
proposed. Each T&C division will be aligned with respect to each
transmission circle, which means, there will be one T&C division operating
within the jurisdiction area of transmission circle. There is no functional
change in the Testing & commissioning divisions (earlier called as MRT
divisions).
•
A dedicated commercial & regulatory function is proposed for clear
responsibility and building necessary skills
•
For TRW, these are the options that are proposed:
o
Decision to be taken on revising the fee charged based on using
proper financial methods to arrive at the actual cost for services
offered to distribution business
o
In case the function is not profitable, it should not be retained with
the organization. The entire unit should be shifted to the discom as
power transformers are not being serviced by TRW
o
In case the function is profitable, the organization still needs to
deliberate if it wants to retain the function with itself based on long
term vision, focus and value addition to the entire organization.
Page 51 of 70
Redesigning the Organization Structure for AEGCL
Field Level: Function wise Organization Structure of AEGCL
The field structure of AEGCL is divided into hierarchical units with the HQ at the
top of the vertical and goes down in the hierarchy to zones, circles, divisions
and sub stations. Transmitting electrical power from electrical power bulk heads
to the distribution company networks in the state of Assam in an efficient and
economical way is the core service of the transmission company. For the same
reason, the reporting has been structured to report from the sub stations to
divisions, divisions to circles and circles to zones.
1
2
3
Sub Division and Sub
Station
4
Sl. No
Hierarchical Unit (#)
Broad Roles & Responsibilities
1
Zone (#2)
• Zone level organization is the overall custodian of all
2
Circle (#4)
• The circle office is responsible for 3 – 6 division
the activities of circles under it. All the circle offices
directly report to their respective zonal offices. Zone
level organization is the interface of field organization
with the HQ.
• Apart from supervising & monitoring role, the zone
office also acts as sanctioning / approving authority as
per delegation of power.
• The zonal office is headed by the GM, who in turn
reports to the MD of
offices.
• The various functions of the circle office include review
of performance of divisions, TRL sub divisions & sub
stations, review of capital works & various schemes,
establishment activities etc. In addition, circle handles
functions related to procurement, quality control and
inspection of materials.
PricewaterhouseCoopers
Page 52 of 70
Redesigning the Organization Structure for AEGCL
Sl. No
Hierarchical Unit (#)
Broad Roles & Responsibilities
• The main functional departments at the circle office
are technical, civil, accounts and establishment.
• The approval & sanctioning procedures are governed
as per delegation of powers defined for circle.
• Each circle office is headed by DGM, who reports to
the GM of the zonal office
3
Division (#15)
• A division is responsible for the TRL sub division and
5
Sub Division (#15)
• The sub division looks after the transmission lines.
6
Sub Station (#46)
• Sub-station is the unit at the bottom of the hierarchy.
approximately. 3 – 6 sub stations. The main functions
of divisions include review performance of
subdivisions and sub stations, review of capital works
& various schemes, establishment activities etc.
• The main functional departments at divisional office
are technical, accounts/revenue and establishment.
• Division office is headed by SM, who in turn reports to
the circle office. There are 17 division offices reporting
to 4 circle offices. Under the division offices, there are
46 sub station
There is one sub division that is linked to every
division office and is responsible for all the O&M works
of all the transmission lines linked to that division office
The sub station mainly comprises the switch yard and
the control panel and controlling these is the core
activity in transmission. O&M activities of sub stations
include breakdown maintenance of HT & LT line &
equipments and general technical and non-technical
operation & maintenance of sub stations.
• Sub stations are led by resident engineers (RE). RE’s
can be either SM/M/DM/AM depending on the type of
the sub-station. Sub stations are classified into two
types – Type I and Type II Sub stations. Type I are
220KV and above while Type II are 132KV and below.
Type I stations generally have an SM as their RE while
Type II will have M/DM/AM as the RE. Currently, there
are seven 220KV Sub Stations and thirty nine 132 KV
Sub stations
Field level Organization Structure
The following is a diagrammatic explanation of the broad reporting hierarchies
that are followed in the field.
PricewaterhouseCoopers
Page 53 of 70
Redesigning the Organization Structure for AEGCL
MD
DGM(SLDC)
GM(LAZ)
GM(UAZ)
SM (Divisions) # 2
DGM (Guwahati)
DGM(Silchar)
DGM(Jorhat)
DGM(Tezpur)
Sub Stations # 3
SM (Divisions) # 5
SM (Divisions) # 2
SM (Divisions) # 5
SM (Divisions) # 3
Sub Stations # 14
Sub Stations # 6
Sub Stations # 14
Sub Stations # 9
Structural Implications
PricewaterhouseCoopers
Sl.
No
Issue
Impact
Structural
Implication/Changes to be
Considered
1
Lack of integration
with
the
civil
department
Leads
to
lack
of
prioritization
and
identification of areas for
improvement
One point contact for all field
level work to be created
2
Lack of a formal
system of integration
with the transmission
design department
All the work gets executed
at the field level. Thus,
imperative to include their
feedback in the design
process.
Create a formal system of
reporting
that
gets
incorporated in the system
3
Lack of Officer level
representation of HR
at field level
Many activities that should
be conducted get ignored.
HR transactional than
transformational
Create the presence of an
Officer at the field level
responsible for various HR
activities
4
Burden of RE falling
on the SM for 220 KV
Sub Stations. Overlap
of management of
division and 220 KV
sub station
Reduces the efficiency of
the SM as it does not
allow him/her to travel to
monitor the area under the
division
Need to completely free SM
of duties of RE. The division
should remain above the RE
Page 54 of 70
Redesigning the Organization Structure for AEGCL
Basis of Recommendations
The following table analyses and highlights the existing functions that are being
performed, functional heads who are performing them, and how they should be
aligned in the new structure. The To-Be structure has been designed to address
the current and future priorities of AEGCL keeping in mind the structural
implications discussed earlier.
Broad Functions
Existing Functional Heads
Proposed Functional Groups
Overall Zone O&M
GM
Zone O&M
Overall Circle O&M
DGM
Circle O&M
Overall Division, Sub
Station O&M
SM
Division O&M
TO BE Structure
The following structure is proposed for the field:
Structure of the GM Zone office
The main change recommended is that of one SM (Electrical) each at the office
of the GM for Technical Support. No other change is proposed in the structure
of the GM office.
Structure of the DGM Circle office
DGM (Circle)
SM’s (Divisions)
AM (F&A)
AM (HR)
Manager
(Technical)
SM (Civil)
AMO
ASO
The new position of AM (HR) is introduced at circle office for handling various
establishment and employee development activities, so that the head office role
is minimal in routine activities of the circle establishment.
Structure of the SM Division office
No changes have been proposed to the structure of the office of the SM. During
stakeholder discussions it was desired that PwC propose an approximate
number of sub stations that can be handled by one division office.
PricewaterhouseCoopers
Page 55 of 70
Redesigning the Organization Structure for AEGCL
The proposition made was based on the data available in PwC knowledge
management. Examples of Punjab and West Bengal were used. It was found
that in Punjab, approximately 4-6 sub stations are handled by the division office
and in West Bengal, an average of 5 sub stations are handled.
Based on the above, it is felt that in AEGCL one division can handle
approximately 4-5 sub stations and when the number of sub stations under the
division office exceeds 6, a revision of work load should be conducted. This can
be done either by allocating sub stations to a nearby division office or planning
a new division.
Comparison of As Is and To Be Man-in-Position
Designation
CGM
Electrical
E
0
1
GM
2
2
DGM
4
4
15
19
SM
AM / DM / M
Total
PricewaterhouseCoopers
Remarks
P
4
21
30
Page 56 of 70
Redesigning the Organization Structure for AEGCL
Conclusion
Conclusion
This chapter highlights the key recommendations / changes proposed for redesigning of organization structure of AEGCL. The details of the same are
covered in the previous chapters of this report.
•
The highlights of the human resource profiling carried out for the existing
employees of the company are as follows:
•
•
•
PricewaterhouseCoopers
The average employee age of the company is approximately 51 years
and approximately 55% of the existing workforce will superannuate
during next 8 years. Therefore, the company requires an immediate
focus on manpower planning and linked recruitment plans to induct
employee at entry level.
The main recommendations made at the Company Board level are as
follows:
•
The introduction of 4 board level functional directors namely Director –
Operations, Director – Projects, Director – Human Resource and
Director – Finance & Accounts. These board level director positions
are in addition to the existing position of MD of AEGCL.
•
The positions of functional directors at Board level need to be selected
on the basis of merit and functional requirements, and need not be
treated as posts of promotion.
•
The introduction of these positions at Board level will enhance the
corporate governance framework, enable greater representation of
company at board level and effective decision making for company
operations.
•
As informed during stakeholder discussions, the appointment
functional directors requires certain changes in the Article
Association of the company, which might take some time
incorporate. Therefore, as an interim arrangement, instead
directors, the executive directors (ED) positions are proposed.
of
of
to
of
The main changes proposed at the Corporate and Field level are as follows:
•
The span of control of MD has been reduced to 7 from 12 positions, by
clustering core business functions together and aligning them under
one umbrella.
•
Internal audit has been proposed as a separate function to maintain
independence while carrying out audit activities. The function will take
care of internal and statutory audit and should preferably be supported
by external auditing firms. The internal audit function will report to
board audit committee.
•
A centralized Corporate Performance Monitoring cell is proposed for
corporate social responsibility, enhancing corporate governance
framework, monitoring corporate performance.
•
The HR function at corporate office is gaining a greater
transformational role. Field level presence at circle office has been
Page 57 of 70
Redesigning the Organization Structure for AEGCL
created for both transformational support and transactional activities.
Total 12 executive level positions are proposed, which includes 4
positions at field offices of AEGCL.
Designation
CGM
GM
DGM
SM
AM / DM / M
CMO / MO
Total
Electrical
Civil
E
P
E
0
3
8
38
152
0
201
1
4
9
38
152
0
204
•
The Commercial function has been strengthened with clear
responsibility for Regulatory and Commercial activities at corporate
office.
•
The new position of SM Technical Inspection is proposed to take care
of field inspections / quality checks of various projects while in
execution stage. This inspection will provide inputs to design team for
taking corrective measures and built in the practical aspects of
execution thus enhance design / engineering effectiveness.
•
The entire Project planning of ADB & other projects, designing, DPR
preparation, Tendering, Contracting, Procurement, Project execution
monitoring, Material management, PMU cell has been unified under
Director – Projects.
•
The SLDC function has been made free from looking into the O&M of
two sub stations. These sub stations will be transferred to one of the
circle under Lower Assam zone. This will bring dedicated focus
towards SLDC function and clear accountability.
•
The As-is and To-be man-in-position is tabulated below:
F&A
P
0
0
1
3
0
0
4
E
0
0
1
6
0
0
7
1
1
2
4
4
0
12
HR
P
1
0
2
7
4
0
14
E
P
0
0
1
0
1
1
3
0
1
1
2
8
1
13
Secretariat
Total
E
E
P
0
0
0
1
0
0
1
0
0
0
1
0
0
1
Remarks
P
1
4
12
46
157
1
221
2
5
13
54
164
1
239
Note:
1) The numbers mentioned in above table are based on our discussions at corporate office and on
assumption that all the field level circle heads and division heads positions are filled.
2) *: The count of AM / DM / M is based on the employee database.
3) E: Existing; P: Proposed
PricewaterhouseCoopers
•
The benchmarking of organization structure was carried out with other state
utilities in India and based on the learning from the benchmarking exercise,
the new structure for the company was proposed.
•
The following solutions have been proposed to address the concerns of the
stakeholders of the company:
Page 58 of 70
Redesigning the Organization Structure for AEGCL
•
The promotional avenues among various cadres have been increased,
thus ensuring employees of one company are least affected due to
promotions in other companies.
•
Under circumstances in which the employee eligible for promotion in
the pre restructuring scenario based on the common seniority list loses
out on the promotional avenue due to the companies now being
different, the following solutions are recommended:
•
PricewaterhouseCoopers
o
All senior employees are promoted in their respective
companies, or
o
All senior employees are provided with PP based higher
positions in their respective companies, or
o
All senior employees are granted higher pay scale.
o
The above mentioned recommendations to manage inter-se
issues are allowed till the calendar year 2018, By then,
majority of the executive workforce, which is likely to be
affected due to creation of company specific cadre would have
retired. Approximately 60% of the executive workforce will
retire by calendar year 2018.
In case of different promotional avenues for employees in the same
organization belonging to different cadres, the concept of PP is
introduced. This will be granted to employees on the basis of set
criteria (mostly depending on performance). In case the employee is
eligible for promotions and is meeting his/her performance standards,
the employee will be entitled to the benefits of the next level. Thus,
even though the structure does not provide for greater growth
opportunities for the employee, the career graph does not hit a ceiling
in the same organization.
Page 59 of 70
Redesigning the Organization Structure for AEGCL
Annexures
Annexures
Annexure 1
Benchmarking
The following chapter presents the benchmarking exercise for the organization
structure of AEGCL with other states. The benchmarking exercise is limited by
the granularity of the data availability from other states and the variability of
organization structure.
The companies that have been studied for the purpose of comparison and
benchmarking are:
Maharashtra Transco
West Bengal Transco
Delhi Transco
MSETCL
Illustrative Top Level Org Structure of MSETCL is shown below
ILLUSTRATIVE
Top Level Org Chart
Maharashtra State Electricity
Transmission Company Limited
MD
Director
(Operations)
ED (STU)
Director (Finance)
ED (Operations)
CE (STU)
CE (TR O&M)
CE (SLDC)
CE (Spl Projects)
CGM (F&A)
ED (HR)
CGM (HR)
Director (Projects)
Dy CIRO
ED (Projects)
CE (TR projects)
.
CE (CPA)
CE (Field ) # 7
(source: www.mahatranso.in)
PricewaterhouseCoopers
Page 60 of 70
Redesigning the Organization Structure for AEGCL
Main Observations
• The organization is structured functionally with the key functions of technical,
finance, HR reporting to the MD directly
• Construction and O & M are under separate heads ensuring clear demarcation
between construction & maintenance activities
• Zonal head for construction works reports to Executive Director (Transmission
Project)
• Zonal O&M activities are managed by CE level position ensures accountability
for O & M of Sub-station and Transmission lines. CE level position ensures
lesser involvement of corporate office for routine activities of zone.
• The functions of SLDC, STU are separated from O&M activities for their
respective performance and are integrated at higher position for effective
coordination
• Zonal head for O & M reports to Executive Director (Transmission O & M)
• Combined purchase and material management function is conducted at the
corporate office in the name of CPA – Central purchase agency
WBSETCL
Illustrative Top Level Org Structure of WBSETCL
ILLUSTRATIVE
Top Level Org Chart
West Bengal Transco Limited
Chairman &
Managing
Director
AGM
(F&A – Internal
Audit)
Director
(HR)
Company
Secretary
Director
(Transmission)
ED
(TR Project)
Director
Finance
GM
(P&A)
CE
(CP&ED)
CE
(SLDC)
MC
GM
Fin
DGM
(P&A)
CE
(TR O&M)
Addl CE
(CTD)
CE
(TR Project)
DGM
Fin
CE
(IT&C)
GM
(O&M)
(source: www.wbsetcl.in)
PricewaterhouseCoopers
Page 61 of 70
Redesigning the Organization Structure for AEGCL
Main Observations
• The organization is structured functionally with the key functions of technical,
finance, project, HR reporting to CMD directly
• The internal audit function is independent to finance and is reporting to CMD
directly
• The transmission O&M, SLDC, communication are under Directortransmission - this brings better control in terms of co-ordination between them
• The project and construction are kept separate from O&M function and have
direct reporting to CMD
• The reporting among HR and finance functions is more of hierarchy based. It
does not bring the functional clarity within the function
• The work imbalance between Director – Transmission and Director – Projects
appears to be high as Director – Projects seems to have lesser work load
Delhi Transco
Illustrative Top Level Org Structure of DTL
IL L U S T R A T IV E
T o p L e v e l O rg C h a r t
D e lh i T ra n s c o L im ite d
C h a irm a n &
M a n a g in g
D ire c to r
C om pany
S e c re ta ry
D ire c to r
(H R )
D ire c to r
(O p e ra tio n s )
D ire c to r
(F in a n c e )
GM
(A d m in )
DGM
(IT )
GM
(S L D C )
DGM
(F -I)
GM
(L e g a l)
GM
(P la n n in g )
GM
(C o n s tru c tio n )
DGM
(F -II)
GM
(S to re s &
P u rc h a s e )
GM
(O & M )
DGM
(F -III)
GM
(C o m m e rc ia l)
GM
(C iv il)
GM
(P ro je c t – I)
GM
(P ro je c t – II)
(source: www.delhitransco.gov.in)
Main Observations
• The organization is structured functionally with the key functions of operations,
HR, finance reporting to CMD directly
PricewaterhouseCoopers
Page 62 of 70
Redesigning the Organization Structure for AEGCL
• All core functions (planning, construction, stores & purchase, O&M, SLDC,
civil) in addition to IT, commercial and reforms report to the Director
(Operations). This increases its span of control.
• The functions are classified under various function functional head under
Director (Operations) to bring single point accountability
• Planning & procurement functions have been segregated to ensure adequate
focus on each function
• Construction & maintenance activities have been segregated as different
functions.
• Functional Director for operations, finance & HR.
• Separate head for Admn. & legal affairs reporting to Director (HR).
Key Learning
In the table given below we have summarized the key learning’s from the
benchmarking of the organization structures of different utilities.
Structural Imperatives
Summary
Comparisons with and Implications for
AEGCL
1
Structural basis
All organizations are structured as functional
structures. Few organizations have regional
structure for operations
AEGCL is already structured functionally at the
HQ and has regionally dispersed units for its
regular O&M activities.
2
Functional clustering
Organizations have clustered most of the core
functions together
The functions in AEGCL are scattered and
have scope for streamlining and unification
under one umbrella.
3
Span of control
Single point accountability of functions with the
Directors makes optimal span of control for
CMD, range varies from 5 to 10
The span of control in AEGCL for the MD is
large – 12 people report to the MD presently.
The reporting has to be made more systematic
and channelized.
4
Operations
Decentralized through zonal structure to
ensure corporate focus on strategic areas.
Organizations
have
representation
of
operations at corporate level with single point
accountability for O&M activities in field.
While the activities are decentralized through
the zonal structure, the activities at the
corporate level need more streamlining.
Activities such as SLDC and MRT that have a
strategic impact need better corporate level
unification and channelizing. Also, single point
accountability for all O&M activities needs to
be created.
5
Commercial and regulatory
Most organizations have the regulatory
function combined with the commercial
department and focus on ARR & tariff filing
and handling regulatory compliances
AEGCL does not presently have a separate
commercial and regulatory function. The
presence of this function needs to be
established for the company.
6
Projects
Project is a clearly defined function in
organization whereas in few it is clubbed with
operations.
In AEGCL, there is no centralized project
management department. It is clubbed neither
with operations nor with the technical
department. Project management is need
based and AEGCL lacks an end-to-end
solution for project planning, implementation
Sl.
No
PricewaterhouseCoopers
Page 63 of 70
Redesigning the Organization Structure for AEGCL
Sl.
Structural Imperatives
Summary
No
Comparisons with and Implications for
AEGCL
and monitoring. This needs to be created.
7
Material Management
Mostly, MM refers to looking after stores as
well as the procurement function and is
clubbed under either operations or projects.
In AEGCL, material management is not
centralized and is managed separately for sub
stations and transmission lines. Similarly, it is
managed separately for ADB and non-ADB
related work. Material management should be
a centralized function.
8
Finance
All organizations have defined F&A function
reporting directly to the head of organization
In AEGCL, CGM (F&A) reports to the MD.
However, there is scope for bringing about
more clarity within the department.
9
Company secretary
The CS function is reporting to head of the
organization directly
The CS function is reporting to head of the
organization directly
10
Internal audit
The function is reporting to head of
organization in few cases while otherwise
clubbed under F&A function
The system of audit in AEGCL is
and the concept of internal audit as
function does not exist. This
introduced and should be under
supervision of the MD.
11
Information technology
IT is a clearly dedicated function in all
organizations for IT planning & implementation
along with carrier communication
IT in AEGCL is still in the nascent stage of
development. It however shows great scope
for improvement in future. The structure must
provide for the future development of IT – to
the extent that it can sustain as an
independent function itself.
12
Human resource
HR is an important department in all
organizations with a direct reporting to head of
the organization
The HR department in AEGCL is more
transactional in nature with only two officers to
deliver all activities. Further, there is ample
scope for the development of a sound HR
practice with representation of HR at a
strategic level of decision making. This needs
to be looked into while creating the new
structure.
PricewaterhouseCoopers
not strong
a separate
must be
the direct
Page 64 of 70
Redesigning the Organization Structure for AEGCL
Annexure 2
The following is the list of the various offices that were visited during the AS IS
analysis for the study. This list covers the entire list of executives from the
level of MD to DGM’s with whom interactions were held. When the offices of
the officers listed below were visited, an interaction with the SM’s, M/DM’s and
AM’s in their offices were also made. They have however, not been indicated
in the list below.
The offices that were visited during the as-is analysis were:
-
-
ASEB (Bijulee Bhawan) – Paltan Bazaar
-
Meeting with Mr SK Handique (CMD)
-
Meeting with Mr SK Saha (CGM F&A)
-
Meeting with Mr B Paul (GM – HQ)
-
Meeting with Mr RL Baruah (DGM – HQ)
-
Meeting with Mr R Saikia (DGM – HQ)
GM’s Office (T&T) – Guwahati (Narengi)
-
-
DGM’s office (T&T), Guwahati (Narengi)
-
-
Meeting with Mr Pranab Sharma (DGM – Ghy)
DGM Design’s Office, Guwahati (Narengi)
-
-
Meeting with Mrs Utpala Sharma (GM – LAZ)
Meeting with Mr Utsab Bora (DGM – Design)
DGM Civil’s Office, Guwahati (Kahelipara)
-
Meeting with Mr Dilip Datta (DGM – Civil)
-
DGM MRT’s Office, Guwahati (Narengi)
-
DGM SLDC’s Office, Guwahati (Kahelipara)
-
-
DGM (T&T) Jorhat - SM (MRT), Lab TRW
-
-
Meeting with Mr Heman Hazarika (DGM SLDC)
Meeting with Mr HS Ahmed (DGM – Jorhat)
DGM (T&T) Silchar
-
Meeting with Mr Dipankar Nath (DGM – Silchar)
The officers consulted during the iteration stage for discussion and finalization
for the proposed were:
PricewaterhouseCoopers
-
Mr SK Handique (CMD)
-
Mr B Paul (GM (HQ))
-
Mrs Utpala Sharma (GM (LAZ))
Page 65 of 70
Redesigning the Organization Structure for AEGCL
PricewaterhouseCoopers
-
Mr RL Baruah (DGM (MRT and o/o MD (AEGCL))
-
Mr Utsab N Bora (DGM (Design))
-
Mr RK Saikia (DGM (o/o MD (AEGCL)))
-
Mr Dilip K Dutta (DGM (Civil))
-
Mr SK Ghose (SM – o/o MD (AEGCL))
-
Mr R Dohutia (SM – o/o MD (AEGCL))
Page 66 of 70
Redesigning the Organization Structure for AEGCL
Annexure 3
The District Map of Assam
The analysis that has been conducted has been keeping in mind the
hierarchical boundaries as well as the geographical boundaries. The analysis
and recommendations are based on solutions that will help serve the entire
geographical spread of Assam. For the same reason, this map (not to scale)1
can be referred to while going through the report.
1
Source: http://www.mapsofindia.com/maps/assam/assam-district.htm
PricewaterhouseCoopers
Page 67 of 70
Redesigning the Organization Structure for AEGCL
Annexure 4
The following table is an expansion of the list of sub stations clubbed under
divisions. The divisions are further grouped into circles. The circles are then
classified into zones.
Zone
Circle
Division
Sub Station
Headed by
GM
Headed by DGM
Headed by SM
Headed by SM/M/DM/AM
Lower
Assam
Guwahati/Narengi
Rangia
Rangia Sub Station (132 KV)
Barnagar Sub Station (132 KV)
Sipajhar Sub Station (132 KV)
Nalbari Sub Station (132 KV)
Dhaligaon
Dhaligaon Sub Station (132 KV)
Gossaingaon Sub Station (132 KV)
Gauripiu Sub Station (132 KV)
Goalpara
APM Sub Station (132 KV)
Agia Sub Station (132 KV)
Boko Sub Station (220 KV)
Narengi
(Guwahati)
Narangi Sub Station (132 KV)
Bagjap Sub Station (132 KV)
Shishugram Sub Station (132 KV)
LDC Circle
Guwahati
Silchar TandT
Circle
BTPS Switch
Yard - Salakati
Salakati Sub Station (220 KV)
Kahelipara
Kahilipara Sub Station (132 KV)
Chandrapur Sub Station (132 KV)
Sarusajai
Sarusajai Sub Station (220 KV)
Panchgram
Panchgram Sub Station Old (132
KV)
Panchgram Sub Station New (132
KV)
Silchar
Srikona Sub Station (132 KV)
Haflong Sub Station (132 KV)
Dullavcherra Sub Station (132 KV)
Pailapool Sub Station (132 KV)
Upper
Assam
Jorhat
Jorhat
Golaghat Sub Station (132 KV)
Bokakhat Sub Station (132 KV)
Sibasagar Sub Station (132 KV)
Diphu Sub Station (132 KV)
Mariani Sub Station (220 KV)
Bokajan Sub Station (66 KV)
PricewaterhouseCoopers
Garmur
Garmur Sub Station (132 KV)
Tinsukia
Tinsukia Sub Station (220 KV)
Page 68 of 70
Redesigning the Organization Structure for AEGCL
Zone
Circle
Division
Sub Station
Headed by
GM
Headed by DGM
Headed by SM
Headed by SM/M/DM/AM
Doomdooma Sub Station (66 KV)
Dibrugarh
Dibrugarh Sub Station (132 KV)
Moran Sub Station (132 KV)
Nazira
Nazira Sub Station (132 KV)
Margherita Sub Station (132 KV)
Tezpur
Depota
Rowta Sub Station (132 KV)
Depota Sub Station (132 KV)
Biswanath Chairali Sub Station
(132 KV)
N Lakhimpur
Dhemaji Sub Station (132 KV)
North Lakhimpur Sub Station (132
KV)
Majuli Sub Station (132 KV)
Samaguri
Samaguri Sub Station (220 KV)
Sankardev Nagar Sub Station (132
KV)
Gohpur Sub Station (132 KV)
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Page 69 of 70
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Redesigning the Organization Structure for AEGCL
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