The beginning of the present studystates about the history of Indian Railways , conceptual framework of Human ResourceManagement (HRM), overview of Human Resource Management in public and privatecompanies, orientation of HRM practices in Indian railways etc. It also gives abrief description about problem statement, objectives of the research, researchmethodology, and significance of this research and further explores importantfindings of the study.  1.1     ORIENTATION TO THE STUDY Indian Railways (IR) is a great nationalasset. The Indian Railways (IR) is the second largest system in the world undera single management and 7th largest employer in the world.

The firstRailway line in India ran between  Boribunder(Bombay) and Thana was opened to traffic on 16th April, 1853, just  28years after the World’s first train thatran  successful  between Stockton and Darlington in England in1825. Indian Railways is a mammoth organization carrying 140 lakh passengersand 14 lakh tonne of freight daily, and employs more than 15 lakh staff1. Though,IR in last two decades has remained under-invested whereas the road sector haswitnessed a surge in investments. Statistics have been shown in the below table: Table1.1     Share of Transport Sector inOverall GDP (%)  Overall share of transport sector inoverall GDP has remained stable from 2008-09 to 2012-13. Road transport playsan important part in the overall GDP, railways comes after the road transport. Theshare of IR in overall GDP has been static at 1% and has, in fact, gone down to0.9% in 2012-132.

Although the Traffic Density on IR is quite high as perworld standards,   Source: Governmentof India, Ministry of Railways (2015), “IndianRailways: Lifeline of the Nation” Retrieved form//www.indianrailways.gov.in/railwayboard/uploads/directorate/finance_budget/Budget_2015-16/White_Paper-_English.pdfFigure1.

1 Traffic Density The above graph 1.1 portrays the trafficdensity of India in comparison with some top class countries’ trafficstatistics. After China and Russia, India is considered third largest countryin terms of traffic density. The Indian Railways continuously increases growthof the network is order to commensurate with the growth of the traffic.  Any industry or organizations succeed,or fail, based on the quality and effectiveness of their employees. The success of India’s railway industry majorlydepends upon the employees working under its roof.

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Currently railway industryof India accounts for 1.334 millioncommitted and dedicated employees3.The core aim of Human Resource Management isto attain the organization effectiveness that can only be achieved with thesatisfaction of employees working in the sector.  Today all over theworld companies have realized the importance of Human Resource managementpractices and its direct relation with productivity. In a huge organizationlike Indian Railways Human Resource management has to be kept on toppriorities.

Humans are the most complex of all organisms on the earth. Managinghumans is not an easy task.  The corecompetency of any organization depends upon its human resources.

Human Resourcemanagement is an important part in any organization. Companies are coming upwith more and more innovative methods of Human Resource management practices.Human Resource management involves various activities from recruitment,selection, training, appraisal, welfare, promotion, compensation andretirement. Human Resources are the art of managing people. The majorchallenges in front of an Indian Railways Human Resources manager are torecruit and attract new talented employees, to retain them, come up withcompetitive packages, working on the welfare programmes for the employees, managingworkforce complexities, designing appraisal, etc.

Indian Railways is thelargest sector employing lakhs of employees. The below chart explains thenumber of employees increased over the years in the Indian railways.  * No.

of Employees in Thousands (000)’Source: Statistical Summary: Indian Railways, Retrievedfrom http://indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/IRSP_2013-14/pdf/Statistical_Summary/Summary%20Sheet_Eng.pdf Figure1.2: Number of Employees working in Indian Railways Therefore analyzing the satisfactionlevel of employees, working in the important sector of the country which is themajor source of economic growth, seems very crucial. The railway industry ofIndia needs to know and understand what their employees feel about working inthis sector? What is their level of satisfaction? Employee satisfaction is akind of survey, followed in HR practices, conducted by every organization orbusiness to analyze and assess the company’s HR performance. An organizationcan find out if its employees’ satisfaction level was excellent, good,satisfactory or poor with the help of the stated method, which help them torevise and develop their HR practices. The present research tries to state the employeesatisfaction level working in the railway industry of India.

It further triesto examine the socio-economic measures like wage structure, job satisfactionlevel and examine the performance appraisal and employer employee relationship inIndian Railways and also suggest measures in improving the present system ofHuman Resource management in Indian Railways. Servicesector industry is growing day by day. It is the largest industry in India andthe important reason for the economic growth of the country.

Gross Value Added(GVA) at current prices for services sector is estimated at 61.18 lakh croreINR in 2014-15. Services sector accounts for 52.97% of total India’s GVA of115.50 lakh crore Indian rupees4. Transportis one of the service sectors in India. Indian Railways is the life line ofIndia.

The total approximate earnings of Indian Railways onoriginating basis during FY2014-15 were Rs 157,880 crore (US$ 23.68 billion)compared to Rs 140,761 crore (US$ 21.11 billion) during the same period lastyear, registering an increase of 12.16 per cent. The total approximate earningsfrom goods during fiscal 2014-15 were Rs 107,074.

79 crore (US$ 16.06 billion)compared to Rs 94,955.89 crore (US$ 14.24 billion) during the same period lastyear, registering an increase of 12.76 per cent5.Thus railway industry isamong the world’s largest service industry.

 1.2     HISTORYOF INDIAN RAILWAYSThis section would portray the historyof world’s largest rail network i.e. Indian Railways before Independence andafter Independence.  IndianRailways Before IndependenceRailways were first started in 1825 inEngland and thereafter in 1829 in France, and in 1930  in America. The railways in India are thelargest rail web in Asia and the world’s second largest under one management.With a huge workforce of about 1.

65 million, it runs some 11,000 trains everyday, including 7,000 passenger trains. The tale of how railway communicationgained foothold in India, where the locomotive was once considered as a”fire-spitting demon”, is indeed an interesting one. It was started when Railwayswere first started in 1825 in England and thereafter in 1829 in France, and in1930  in America.

Cotton was produced in various parts of the Indiansub-continent and it took days to bring it to the nearest port to transport itto England through ships, the only major means of international communicationthen. The British then had to build a link from the hinterland to India’s majorports for quicker transport of cotton and other goods as demand soared. Thisexpedited matters for the British to introduce a railway in India.TheBritish also felt that organising and dispersing the growing native populationfaster deployment of troops could be better handled by a railway. As early as1843, Lord Dalhousie had first conceived the possibility of opening up of Indiaby means of railway communication.

He had proposed to link the three ports ofBombay, Calcutta and Madras by a railway.  Formation of First Railway Company GreatIndian Peninsular CompanyThebill to incorporate India’s first railway company, the Great Indian PeninsularRailway Company G.I.P.

R (later it was rechristened as Peninsula), came upbefore the British Parliament twice. First in March 1847 and later in 1849. InMarch 1847, the East Indian Company, which then ruled India, opposed the billon certain clauses forcing it to be withdrawn. Matters dragged on till 1849when Lord Dalhousie, who had experience in railway matters in England, tookover as the Governor-General of India. On August 1, 1849, the Act toincorporate the Great Indian Peninsula Railway came into being.

The originalcontract made on August 17, 1849, between the East India Company and the GreatIndian Peninsula Railway stated that the capital of the GIP Company shall be 5lakh pounds, but can be subsequently increased to one million pounds in casethe railway line has to be extended beyond Callian (Kalyan) and across theThull and Bhor Ghats. The railway line has been referred to as an “Experimentalline of Railway” throughout the contract.6 Sir Jamsetjee Jejeebhoy & Hon.

JaganathShunkerseth (known as Nana Shankarsheth) formed the Indian Railway Association.Ultimately, the association was integrated into the Great Indian PeninsulaRailway. India’s first ever train ran for a distance of 21 miles (33.8 km)between Bombay (Mumbai) and Tannah (Thane).

The journey took approximately 45minutes.  The importance of the day can be gauged from the fact the Bombaygovernment declared the day as a public holiday. The train, hauled by threeengines — Sindh, Sahib and Sultan — carried as many as 400 passengers in its14 coaches on its debut run. Indian Railways,which had a modest beginning in 1853, has since then been an integral part ofthe nation — a network that has held together a population of one billion. Aself-propelled social welfare system that has become the lifeline of a nation,Indian Railways has woven a sub-continent together and brought to life theconcept of a united India.  Britishengineer, Robert Maitland Brereton,was responsible for the expansion of the railways from 1857 onwards.  EastIndian Railway Company The East Indian Railway Company, laterknown as the East Indian Railway (EIR), introduced railways toeastern and northern India. The company was established in 1 June 1845 in London by a deed of settlement with a capital of £4,000,000,largely raised in London.

Calcutta, the then capitalof India, on the western coast of the sub-continent was also in the race to befirst to introduce railway into India. The survey from Calcutta to Delhi forthe East Indian Railway was carried out during 1945-46. But the construction ofrailway line from Howrah to Raniganj was sanctioned only after three years.The Calcutta-Allahabad-Delhiline was completed by 1864. The Allahabad-Jabalpur branch line of the East IndianRailway opened in June 1867. Brereton was responsible for linking this with theGreat Indian Peninsula Railway, resulting in a combined network of 6,400 km(4,000 mi).

Hence it became possible to travel directly from Bombay to Calcuttavia Allahabad. MadrasRailway Company Inthe south, the Madras Railway Company was formed in London as early as July 8,1845. The shareholders held a general body meeting in February 1846 toconstruct a railway line from Madras to Arcot , known as Wallajah Nagar. But matterswere delayed and the actual construction begun on June 9, 1853.

The first trainbetween Royapuram and Wallajah Nagar steamed out on June 26,1856. The Bangaloresection was opened an August 1, 1864. Railway lines to Nagari, Raichur, Bellarywere completed subsequently,TheBombay-Baroda and Central India RailwayThe Bombay, Baroda and Central India Railway (BB) was a company incorporatedin 1855 for the construction of railway line between Bombay and Vadodara in India.

On the 3rd of November, 1854, the Governor-General, LordDalhousie, sanctioned the construction of the sections Broach, and Baroda, to Ahmedabad, leaving theremainder of the scheme for future decision, and the work to be commenced at Bombay. Construction commenced in 1855 and began work on track from Baroda to Surat. By 1865, the Bombay-Surat-Baroda-Ahmadabad route was complete; in 1867, the Virar -Bombay Backbay suburbanservice commenced with one train in each direction each day. In 1871, track agewas 300 miles (480km).TheScindia RailwaysThe Scindia RailwaySurveys between Indore and Neemuch started long back in 1871-72 when the planand estimates for the whole project was submitted to the Government of India in1872-73. The Maharaja of Scindia agreed to grant a loan of Rs.

75 lakhs at 4per cent per annum interest for the project and the railway was renamed theScindia-Neemuch Railway. It also included a branch line to Ujjain from Indore.The Indore–Ujjain branch line was opened in August 1876 and the line wascompleted in 1879-8078.The Scindia-Neemuch Railway; the firstsection was opened in 1874 as a metre gauge(MG)  line from Neemuch  to Indore.TheEastern Bengal RailwayThe Eastern Bengal Railway (full name Eastern Bengal Railway Company, shortenedEBR) was one of the pioneering railway companies that operated from 1857 to1942, in Bengal and Assam provinces of British India.

The first line ofEastern Bengal Railway was from Calcutta to Kushtia in 1862 (presently covered by Sealdah-RanaghatLine, Ranaghat-GedeLine and Chilahati-Parbatipur-Santahar-DarshanaLine). It was extended to GoalundoGhat in 1865. By 1902, itwas extended north to as far as Dhubri in Assam9.