Thursday 16 June 2016

Understanding the Mess through the Postal Department

Almost all of the government institutions are facing serious problems which have impacted their public image and employee functioning. Below are some of the main ones which are being faced by majority of them. Let me try to explain the same using Postal Department as an analogy
1. Respect among common public
2. Employee satisfaction levels
3. Bad Policy Matters
4. Loss of Monopoly
5. Obselescence
6. Upholding of legacy
7. Attrition

Respect among common public

The aura of respect for an institution lies in hesitation to escalate and non-availability of superior for a trivial matter. Take the case of postal department. For every small issue, a customer at the counter barges into the room of the branch Post Master (be it a two employee Post Office or a 50 employee Post Office) and the Post Master is forced to intervene in every trivial issue. Instead of that, is it not possible to insulate the Post Master from ordinary people? Is it not possible to make a person to think twice before he thinks of speaking to a Post Master? One simpler way is to introduce another layer in between the counter staff and the post master and make that person handle everything. He can take independent decisions or he can go back door to consult with his superior, making the person before him to wait. As time progresses, the aura is automatically built around the person. If he hesitates to reach out to the head of a post office, what chance is that he will complain at a superior office?

Employee satisfaction levels

A few basic things are missing in a government office - sincere appreciation, concern for employee's personal problems and monetary remuneration. These things are not major, but they make people happy. There is no harm in sending out a single line mail saying 'Thank You for your contribution in ensuring that <>' for the superior. But, for the employee, it matters much in motivating him to work more. Next is the concept of personality development and stress busters. Just a ten minute schedule during the office hours is sufficient to bring the stress levels down. An in-house psychiatrist who will visit every office in the division, say, monthly, will help in sorting out their problems. These things don't cost much. Next comes the problems of monetary remunerations. There are two aspects of it. Take the case of a meeting happening in the head office. If no transport is provided for the employee by the management and if the employee is forced to shell out money from his pocket for travel without any scope for reimbursement or even if it exists, at a rate which is twenty years older, will he be happy to attend the meeting and will he be in a position to contribute productively in the meeting? The other aspect of it, do we sufficiently recognize consistent high performers? Institution of awards and token remunerations will help much in solving these problems. None of them is a big matter in implementation, but will have a great effect on loyalty for the employer.

Bad Policy Matters

Let me take some specific examples for this.
a. For a layman, there is no difference between a registered post and speed post. The difference is that registered post is delivered to the person while speed post is delivered at the address. Except in very rare cases, there is no difference between both of them. Why confuse people by having two different services with two different cost structures? Instead, why can't both be combined into a single one thereby reducing the confusion and the wastage of money on printing two different types of stationery?
b. Take the case of Gold or Indian Rail tickets. The case may be that Post Offices are making losses or profits, but it is a different matter. Instead of focusing on core business and trying for increase in income through that, does it make any sense to introduce new troubles for the employees? In case of gold coins, the post master, beside his daily tensions, has to think of the security of the gold coins. In case of train tickets, assuming the employee is getting a salary of Rs 30,000 and the commission on each ticket is Rs 10, at least 3000 tickets should be sold per month to get a return of investment. This is besides the amount and effort spent in educating the employee, setting up the infrastructure and educating the people of the existence of a reservation counter in the post office.
c. Large areas owned by the department are lying waste in the centre of many major cities. Take for example, the land Postal Department owns near Kilpauk Medical College in Chennai. Is it not an atrocious waste of resources? Can't the Postal Department raise some shopping complexes on them and give them for lease?
d. What sense does it make to have post offices in main cities which don't have a delivery service?

Loss of Monopoly

The fact is that it’s Postal Department which should grant licenses to courier operators, who are their direct competitors. There is no proper approach to control their encroachment. Either the department should take on the private service providers either by reigning them in or by providing better services or move to a different field altogether. A person is always bent on earning money whatever the consequences. If there is a provision for hiding behind the law after committing a mistake, he will always use it. Take an example. A small courier firm has 100 letters to be posted from Chennai to Delhi. For every letter it charges Rs 30. If they set up their own apparatus to move the letters, it will cost them more. Instead, can they send these letters through post since the departmental staff are blocked by law from opening a private parcel? If they do that, assuming bulk booking provisions exist, they can send each letter at Rs 10, there by getting a profit of Rs 2000. But, in order to save more money, he can pack the whole lot of letters in a single parcel and send it as book post. It will cost no more than Rs 50, thereby increasing his profit to Rs 2900. Though it is wrong to do that as he is sending commercial mail through book post, he can hide behind the fact that Postal Department has got no right to open mail in transit. If it is happening, the department will know of this loss of revenue, but cannot do anything to tackle it. Instead, can the Postal Department use anti-terrorism laws to check the contents of the parcel? Can they argue that they doubted a bomb in the parcel and got it opened? Instead of a bomb, they noticed a malpractice of sending loose letters in book post, and action will be taken for this which will result in revocation of license? A simple sorry for wasting police time would suffice. Innovative problems like this require innovative solutions.

Obselescence

Many of the policies of the Postal department are still rooted in the past and they are not relevant to the current time. For example, let’s take two specific examples – personal mail and small savings. How many of us are posting letters these days? Does not making a call to inform what’s happening, or even, typing a mail make us communicate faster? If yes, why are the post cards being printed till date? If anyone wants to post a post card of a letter, can’t he simply use a private envelope? There was a time when postal department used to have the best interest rates compared with any banks in India. Now, the banks provide better interest rates and instant withdrawl, albeit with a penalty. Do I have the same provisions with a Postal Savings Account? If I have a current account in a bank, these days, I am being provided with facilities like ATMs or Internet Banking which means I can use my account money wherever and whenever I want. But, if I go for a Postal Account, I will have to go to the Post Office where I opened my account to withdraw the money. Is it not a hassle? Can a departmental employee be blamed due to loss of revenue and patronization? Another point to highlight is the obsolete rates. Look at the following snippet fromhttp://www.maharashtrapost.gov.in/htmldocs/postalchart.htm taken on 28/09/2014. How are you going to collect 20 paise or 25 paise when the minimum legal tender in itself is 50 paise? This actually, is a two sided problem – either the information provided is obsolete or the rates provided are obsolete.
7.
Registered
Newspapers (single copy)
For a weight not exceeding 50 grams
For a weight exceeding 50 grams but not exceeding 100 grams
For every additional 100 grams or fraction thereof
0.25

0.50
.
0.20
.
8.
Registered Newspapers
(more than one copy)
For a weight not exceeding 100 grams
For every additional 100 grams or fraction thereof, exceeding 100 grams

0.50

0.20
.
 And, actually looking at this specific instance, for a registered newspaper bundle, the cost is 50 paise for the first 100 grams and 20 paise for every hundred grams thereafter.  Note that this is applicable even after 20 paise is demonetized in India. An average newspaper has a quality 50 GSM and 6 A2 papers(420x540 mm). This brings it’s weight to about 11.5 grams per sheet or 68 grams per newspaper. Assuming 5000 newspapers are posted, the total parcel charges amount to Rs 680 or 13 paise per newspaper. Now, even if the cost of a newspaper is 1.50 rupee, we can see the margin postal department is getting. Postal Department may be termed as a service department. But, service to a private businessman?

Upholding of legacy

Postal History, mainly that of stationery and stamps, like anything else, even from the times of Colonial Past, is a part of national heritage. There are some very major landmarks in the international philately which emanated in India. Some of them include –
1.        British India is the first political entity in all Asia which issued a postage stamp
2.        Bhor is the first political entity in the world which issued an oval stamp
3.        Hyderabad is the first postal entity in the world which issued a stamp containing four different scripts.
4.        Excluding Ottoman Sultanate, Junagadh is the first Islamic state which issued postal stamps.
In this regard, below are a fewpertinent questions to ask –
1.        Does the postal department have the details of each and every stamp issued in the physical area enclosed by India, be it issued by British/French/Portuguese India or the Princeley States or Independent India along with the details of their publication? Does India Post maintain an authoritative catalogue of all the stamps issued in India?
2.        Do we know on what dates each of the princely state posts shutdown formally? If we know it, why is the information not in public domain?
3.        Why is Stanley Gibbons, a British firm and not the Indian Philatelic Bureau treated as the best authority over Indian Philately?
4.        Does the Indian Government/Postal Department hold a repository of all the stamps and other postal stationery issued in India? This can include postage stamps, postcards and envelopes, post office cancellations and anything such. For example, the first stamp issued by the state of Bundi costs around Rs 25-30 lakhs in open market. How many stamps of this elusive piece does Indian Philatelic Bureau hold?
If not, is it not the responsibility of the Department to maintain such?

Attrition

This is not a problem only with the Postal department, but with many of the government sector entities. Current scenario is something as below –
1.          An aspirant clears a departmental entrance test and is appointed in a mid-level post.
2.          The department spends money on her training and grooms him to be a competitive employee
3.          Parallel to this, unknown to his masters, the employee prepares for a better job, be it in government sector(say Civil Services) or in private sector(say some IT job) and quits the job.
This scenario is visible in every department in India, be it a public sector enterprise or a private one. Is there any answer to this wastage of resources?
Keeping all these in views, there are some fundamental changes to be made in the way the department works –
1.          Create an aura of superiority against a branch supervisor
2.          There should be a provision to source Business and Design architects at the market rates and as lateral entrants who will decide what should be done. To avoid stagnation in their mode of working, they can probably be moved across multiple government departments. It is your department which should come up with ideas to revitalize the business and not any other entity which sell you ideas for their sustenance. To ensure they do not succumb to third party pressure, a panel involving financial audit can be created across departments to monitor every proposal they forward.
3.          Try to be relevant and be updated with the happenings in the world. If revenue due to personal mail is taking a hit, bring in provisions like
a.     State Post should be the only carrier of government transactions unless it’s a departmental courier
b.     Automated stamp/stationery vending machines
c.     Expand online business and e-banking/e-savings.
d.     Bring in card based payments in the post offices
e.     Shed out all the unwanted businesses which are either diverting attention (like selling gold) or can be pruned (speed post-registered post tussle)
f.      Expand the presence into warehouse stock movement. That market will always be present and try to increase your share of business there.
g.     Introduce concepts like the postman will come and collect the letters you want to post at your house itself, at a cost slightly higher than what he pays if he comes to the post office. The payment will be just electronic.
h.     Take the case of personalized postage stamps. Split it into three types – stamps for marriage, stamps for other occasions and individual stamps. Give contracts to private agents to collect the forms and deposit the form and money at the post office. For individual stamps, concentrate on tourist places and schools.

4.          There is no need to reinvent the wheel when there are at least some countries which have a better postal management than us. Get in touch with India’s diplomatic missions to identify, say, the best five postal systems of the world. Send a delegation comprising of business analysts and design analysts to get the crux of their business models and amalgamate/adapt those which can fit into Indian model. Use the same to design a better software for internal/external use

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