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Delhi Metro Rail Corporation Report

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Updated: May 10th, 2019

Major challenges

Delhi Metro Rail Corporation (DMRC) encountered many challenges as it developed the Delhi Metro. About 6 people were reported to have died, and 15 to have sustained serious injuries following the collapse of the transit under construction.

This was one of the accidents that negatively impacted the organization in its endeavor to complete the project awarded by the government. The accidents were caused by failure of the contractor to address technical issues affecting the construction of the bridge.

The corporation also faced the challenge of public criticism due to its low quality public works. The media cited that the business organization was negligent and could not meet construction deadlines.

DMRC was encountering growing bureaucratic pressure from the government that aimed to fire the DMRC engineering specialists who managed the construction of the Delhi Metro.

The organization was not covered by law, and it did not have land for expansion during implementation of the project. In addition, the firm faced the problem of shortage of experienced engineers who could steer the completion of the remaining part of the bridge before Commonwealth Games started.

Strategies used to address the challenges

The challenges faced by the organization required it to formulate tested strategies in order to complete the project and rebuild its corporate image. First, the corporation realized that it would benefit from the services of general consultants who would ensure that the project at hand would adhere to international, technical and professional standards.

DMRC invited tenders from general consultants. Highest bidders with sound technical and financial resources were selected. To deal with the issue of non-standard materials, the corporation adopted a broad gauge that could allow better speed and safety.

The idea was also supported by the Ministry of Railways. DMRC was previously operating without legal cover for the project. This exposed it to many types of litigation from different people and/or organizations.

Later, the management approached the Prime Minister of India to seek important legislation to guide the construction of the bridge. DMRC also requested to be exempted from tax on important imported materials that were used in the project.

In addition, the firm took an initiative to take land from persons near the construction site and compensated them. Through the initiative, it obtained land for expansion.

The factor (phase I)

Corporate culture is the factor that enabled the firm to successfully complete phase I of the project. Culture is a crucial factor in all organizations because it shapes the way people behave within and outside the workplace. Sound corporate culture positively correlates with improved performances of companies.

It is documented that all employees of DMRC worked without delays to avoid a loss of about 0.3 million dollars for each day of delay. Therefore, the personnel worked within the time set and cost. In fact, it is presented in the study case that this was a way of life for the staff.

The leader, Dr. Sreedharan, spent about half an hour to explain to every new hire what would be expected of him or her. The sound culture of the firm helped its personnel to work honestly and without being corrupt. The firm was involved in many contracts, which were not characterized by any form of corruption.

The corporate culture of DMRC ensured that professional competence was valued within the firm. It engaged the services of general consultants to lead the completion of the first phase of the project.

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