Indian Postal Service Managing the change

Indian Postal Service History of 150 years; based on the British Postal service “Royal Mail” Mission: To provide high quality mail, parcel and related services in India and throughout the world ; to be recognized as an efficient and excellent organisation exceeding the expectations of the customers, employees and the society Mail Services: Speed Post, Business Post, e-Payment, e-Post, Media Post, Logistics Post, Direct Post Financial Services: Banking, Postal Life Insurance, Money Order, Instant Money Order, International Money Transfer, Mutual Funds Other Services: Express Parcel, Public Provident Fund, National Savings Certificate, Kissan Vikas Patra, Monthly Income Scheme, Post Boxes for Mail Recipients

Present Organisation Structure

Key Issues Characteristics Low Customer Satisfaction: Late deliveries of mail, Quality of Service, Lack of facilities to customers Competition: Private Courier Services, Banks, Private Mutual Funds, LIC Management Structure: Government Organisation Inefficient Employee Force Large Number of Services: Majority Unproductive Vast reach in the interiors of the country: Potential not realized Many Services to cater the rural India: Public Benefit Proactive Organisation Political Resistance towards change in the organisation Image of the Organisation Running in Losses: Heavy Investment from the Government to revive the Postal service Natural Advantage in various services

Recommendations Move from Functional Structure to Divisional Structure: Government retaining control on top management Offering services according to the geographic locations: Villages, Small Cities, Large Cities, Metros Dropping out/Adding services specific to these locations: Giving up unprofitable services Building a database of addresses: To improve quality of service & offer innovative products like “Royal Mail” Technological Changes: Equipping the Post Office with IT infrastructure & providing communication services using Internet

Environmental Change Internally: Training the Employees, Improving Processes Externally: Coping up with competitors, Tying up Private players to improve inefficient services ( Ex: Tie-Up with Western Union to offer Money Transfer Services )