PRESENTATION ON AN ORGANIZATION STUDY AT BESCOM BY, ARUNKUMAR.K III Sem. MBA-VTU USN:1EWO6MBA05

INTRODUCTION Objective Of The Study:- Methodology:- 1. To understand the structure of BESCOM. 2. To understand the various key functional area of management. 3. To find out the strength & weakness of the company. 4. To know the practical aspects in relation to the theoretical aspects of organization. Methodology:- To conduct the studies different methodologies have been adopted . primary data were collected by conducting personal interviews with the departmental heads and secondary data were collected from the organization manuals. Limitations Of The Study:- 1. The time allotted for completing the organizational study is only 30 days. It’s not enough for understanding about the organization in detail. 2. The company was reluctant to reveal some of its official documents & reports which are kept confidential. 3. The study was limited only during the day hours. The working conditions of the employees of the employees in the night shift are not studied

INDUSTRY PROFILE Electricity supply in India is the sole responsibility of the Government of India and the states. The union Government controls the Central Electricity Authority (CEA), and the central generating companies, which are: National Thermal Power Corporation (NTPC) National Hydro-Power Corporation National Nuclear Power Corporation The State Electricity Boards (SEBs) which generate power and account for most of the distribution in the country. The states have also licensed for private power utilities for generation and distribution. Four new distribution companies were formed to distribute power in Karnataka. They are- 1. Bangalore Electricity Supply Co. Ltd. 2. Mangalore Electricity Supply Co.Ltd. 3. Hubli Electricity Supply Co.Ltd. 4. Gulbarga Electricity Supply Co.Ltd. 5. Electricity Supply Co.Ltd. Salient Features Of Indian Electricity Companies:-

COMPANY PROFILE VISION:- MISION:- BESCOM QUALITY POLICY:- BESCOM is a fully owned company of Government of Karnataka was incorporated on 01.06.2002.BESCOM is the largest power distribution zone of KPTCL in Karnataka. VISION:- The vision of BESCOM is to be best electricity distribution company in India. And also the improvement of quality of power supply, reduction in losses, improvement of overall performance, improving billing and collection, tackling theft and pilferage of power by strengthening vigilance wing, Corporate Governance, bringing transparency in administration etc., MISION:- The mission of BESCOM is to ensure complete customers satisfaction by providing its customer reliable and quality power supply at competitive rates. BESCOM QUALITY POLICY:- In the coming years the main focus of BESCOM would be on improving the distribution network by inducting the latest technologies.

PRODUCT PROFILE Mainly there are two products: 1.Domestic lighting. 2.Commercial lighting. Area of operation: BESCOM has under taken the responsibility of supplying electricity at regionally. It covered mainly in the following six districts they are: Bangalore urban, Bangalore Rural, Tumkur, Kolar, Davangere, Chitradurga, It has total network coverage of 41,092 Sq Kms.

MCKINSEY’S 7’S MODEL : STRATEGY: Loss Reduction Strategy Anti-theft Law Implementation Metering Programme Energy Audit 2. STRUCTURE: Organizational Structure Structures describe the hierarchy of authority and accountability in an organization. These relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures – pyramidal, matrix or networked ones- to accomplish their goals.

3. SYSTEMS: System is the formal and informal procedures, and including the innovation systems, compensation systems, management information systems and capital allocation system, that govern everyday activity. 4. STYLE: Management style of BESCOM is top to down as per the organizational structure. Participative style of management has resulted in the development of committed and motivated work force, which is ready to meet the challenges of the future. 5. STAFF: BESCOM is staffed by 10,843 people including both administrative and executor departments as at the end of May 2006. In recruitment, primary emphasize is upon advance planning for manpower requirements BESCOM is headed by a Managing Director. BESCOM has three operating zones: Bangalore metropolitan Area Zone, Bangalore Rural Area Zone and Chitradurga Zone.

6. SKILL: Skill is what the company does best; the distinctive capabilities and competencies that reside in the organization. 1.Accounting skill 2.Technical skill 7. SHARED VALUES: Shared values are what engender trust. Values are the identity by which a company is known throughout its business areas. These values must be explicitly stated as both corporate objectives and individual values. Shared values are the stated objective of the BESCOM.

SWOT ANALYSIS: Strength: Weakness: The distribution of Electricity undertaken by the company is an essential commodity. Scope for increased demand. Presence of strong urban paying consumers. Growing customer need. Bescom is the main wing of KPTCL its revenue is higher compared to other wing. It is mainly situated in industrial area. Good work force and has technical oriented organization. Weakness: Increasing cost of purchase of power. Subsidized supply of Electricity to Agriculture Sector and Weaker sections of the Society. Abnormal Transmission and distribution losses. (20% line loss). Huge Outstanding Dues from Non-paying Categories. Presence of sizeable non-paying rural IP consumers. Aggregated Technical and Commercial loss (ATC loss). Uncertainty of monsoon on account of that we are concentrating on Thermal and Gas which costs the management.

Opportunity: Increasing in entrepreneurship Constant increasing in demand Availability of existing vast distribution network. Renovation and Modernization. Threat: Government restriction to provide electricity at subsidized rate to specified customers. ( e.g. BJ, KJ,IP) Chance of entering competitors. Lack of sufficient installed capacity in the state. Lack of availability of adequate capital investments. Fear of losing electricity when distributing through lines.

SUMMARY OF ANNUAL REPORT The annual income of BESCOM Company was around 3453 crores in the year 2005-06 and it increased to 3655 crores in the year 2006-07. This shows the 5.85% of annual growth. The total expenditure crossed 3419 crores in the year 2006-07. And the profit and loss before depreciation and interest in the year 2006-07 is 236 crores and the profit and loss before interest and taxes 137 crores. And profit before taxation is 88 crores as compared to previous years 21crores. And profit after taxation is 80 crores in 2004-05 and that was 12 crores in financial year 2005-06

LEARNING EXPERIENCE BESCOM is one of the main government owned Electricity Company which supplies energy to Bangalore division. There was an opportunity for us to do inplant training in one of the best and efficient company of Karnataka Government. In plant training is the study about organizational structure, behavioral strategies adopted by the company. During inplant training, there was a chance to study various aspects of the organization practically, acquiring the knowledge about the classification of various departments and the duties and responsibilities of each department. The style of management and style of decision making adopted in the company is participative. Inplant Training gives very good practical knowledge for the students and helps him to know the working of corporate world and teaches him how to prepare well for his future life.

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