Professional Documents
Culture Documents
There are 507 sugars industries in the India, 23 in Punjab and only one in Phagwara namely
Wahid Sandhar Sugars Ltd., Phagwara is a leading company in the sugars, molasses and other by
products. The Sugar Plant originally established in 1933 by Narang Group of Industries formally
known as Jagatjit Sugar Mill Company Ltd., in the year which was later on taken over by Oswal
Group in 1989. The Oswal Group had expanded the crushing capacity of Plant for sugar cane
from 1500 Ton per day to 4500 Ton per day with the latest state of art technology. The Plant was
later on taken over by Wahid and Sandhar Group in the year 2000 and commenced its operation
under the Flagship of M/s Wahid Sandhar Sugars Ltd. Since incorporation the promoters are
running the business very successfully. The raw material is sugarcane is supplied directly to the
factory by local farmers.
By Product in Wahid Sandhar Sugar Ltd.
1.
4 tones of Molasses
2.
3.
4.
5.
1.5 KW Power
6.
In India 566
In Punjab 23
349
COMPANY DETAILS
16 September 2000
Sector
Private
Location
G T Road Phagwara
Web site
www.wahidsandharsugar.com
E- Mail Address
wahidsandharsugars@hotmail.com
Installed Capacity
Licensed Capacity
Setup by
Founder of mill
Working capital
30 crore
Profits
75 lakhs
Registered office
Bankers
Auditors
Export Countries
The main aim of Wahid Sandhar Sugars Ltd. is to serve customers satisfaction by cutting cost &
improving quality.
Need Of The Study
Wahid Sandhar ltd is a well famous company for its quality products. The companies occupies a
good position and enjoy an excellent credit worthiness and goodwill among suppliers, customers,
creditors, and bankers. It has been enjoying excellent labour management relations from last
many years. It is one of the famous and renowned company of India the company is able to
enhance its installed capacity from 400 tones cane per day to 4500 cane per day. The company is
also well aware of its social responsibilities.
Quality policy of Wahid Sandhar Sugars Ltd.
6
The main motto of the companys quality policy is consumers total satisfaction. They commit
themselves to produce and deliver such material, so as to meet the consumers quality
expectations. This is achieved by identifying the customers requirement and translating them
into products and continuous up dating to reflect customers changing requirement.
Sugar production
Normally, the sugar production is graded in three standards i.e., L, M & S. LGrade stands for large crystal size sugar and is retained on 6/7mesh wire
nettings. M-Grade stands for medium crystal size sugar and is retained on 8/10
mesh wire nettings. S-Grade stands for small crystal size sugar retained on 16
mesh wire nettings for the purpose of above stated sugar gradation,The mill has
the latest most modern IC make sugar sizes /grader.
The mill has for long been known for its premium quality of sugar production. It
has a good command over sizeable portion of sugar market in Phagwara and its
surrounding areas. Its L-Grade sugar is widely preferred
Co Generation
Wahid Sandhar Sugar is a leading organization in the North India. This mill has
developed its strength in power generation and raw sugar processing in addition
to the production of white sugar in this mill from decade. We have capability to
generate 12 MW with single turbine and export power to grid upto 8MW.
7
Moreover, we have taken initiative to use biomass as fuel, which has given
direct boost to the farmer's economy. Farmers have started to supply fuel to this
mill rather than to burn in their field, which ultimately has increased their
revenue. It is great initiative towards the development of area Wahid Sandhar
Sugar is also capable to process raw sugar in this plant. Precision and modern
technique has been adopted to process raw sugar in the off-season as well as in
the crushing season. This mill has its competency to produce ultra white sugar.
Molasses
The molasses from which residual sugar cannot be economically recovered is
termed as final molasses. Its quality, in general various from 4.5% on cane
crushed and it depends upon the cane quality and processing. The mill has
enough capacity for its storage. A good arrangement for its preservation also
exists. As per the requirement, it is disposed off from time to time, to molasses
based distilleries. it is also supplied to foundries cattle feed industries etc. against
their demands.
The quality of molasses is determined on the basis of its T.R.S. content. T.R.S.
stands for Total Reducing Sugars. In cane sugar industry T.R.S. in general, is
found to vary from 40 to 45
Sugar Process
The sugar industry is essentially an agro industry basad on availability of
sugarcane in the surrounding area.
The sugarcane contains not only sucrose but also numerous other dissolved
substances, as well as cellulose or woody fibre .The percentage of sugar in the
cane varies from 8 to 16 and depends to a great extent on the variety of cane, its
maturity , condition of the soil , climate and agriculture practices followed.The
8
composition of cane vary widely depending on the region , but fall generally
within the following limits
Composition of cane :
Sugar - : 10 to 14%
Redncing sugar - : 0.5 to 2%
Organic matter - : 0.5 to 1%
Inorganic compounus - : 0.2 to 0.6%
Nitrogenous soules - : 0.5 to 1%
Ash - : 0.3 to 0.3%
Fibre - : 12 to16%
Water - :
Juice extracted from cane is an opague liquid due to air bubbles entangled in it .The colour of the juice
Various from light grey to dark green depending on the colouring matter in the rind of the cane crashed . It
contains a solution of all the soluble substances like sucrose fare particles of bagasse ,wax ,clay (adhering
to cane), colouring matter and alhbumen.
The position of the normal cane juice falls with in the following limits
Water - : 75 to88%
Sucross - : 10 to 21%
Reducing sugar - : 0.3 to 3.0%
matter and suspended organic impurities . the Juice is not fit to be worked for white sugar manufacture
without suitable chemical treatment so it necessary to remove the maximum quantity of impurities from
the juice at the earliest stages to obtain pure crystallized sugar.
The clarification of jouic is done for two purposes:Removal of impurities :
To precipitate out dissolved inorganic non sugars present in the Juice and
b) To separate insoluble solid matter suspended in juice . This help to increase the availability of sugar .
2 . Bleaching Effect : After impurities are removed by the chemical treatment of Juice bleaching is done to
render the juice brilliant and light in colour .
Process of clarificatin sulphitation : The raw juice is heated to 70*c and then clarified with line and so2
gas, It is again heated to 102*c and pumped to clarifier, The clear juice so obtained is pumped to
evaporator for concentration and the mud is sweetned-off in the o.c . filters
Evaporation
The water to the extent of 75% in clear juice is evaporated in the evaporation Section . The evaporating
section consists of one vapour , cell and Two sets of quadruple effect evaporator . Also there is one
spareVapour call . The live steam generator from the boilers is used to run the turbines and the exhaust
steam so generated is feed to the first body of quintriple almost whole of the juice heatings and pan briling
is done on the vapour of diffrent quintriple effects. the material obtained from the last quintriple effect is
called as unsulphured syrup and it brix is around 55-60* it is further treated with so2 gas to reduce its PH
the around 5.0 and to bleach its color . The meterial thus obtained is called sulphured syrup of golden
colour.
Crystallization
11
After concentration of the juice in multiple effect evaporation and bleaching, the subsequent process is to
turn the thick syrup into crystal form. This is done in a vacuum pan which is a single effect. Here we get a
mixture of crystals and its mother liquor which is called massecuite.
To minimize losses in the final mother liquor called final molasses a system of boilings is adopted having
three or four boilings depending on the sugar content of the cane. The low grade massecuities are boiled
on the mother liquor of high grade massecutes. The massecutes boiled are called A, B & C where A
indicates highest purity and C is the lowest in the system.
As soon as the batch of particular massecuite is ready, it is dropped into a long cylindrical open vessel
called crystallizers. This is provided with tirring arrangement to prevent settling of sugar. Hero the
massecuite is cooled, the time of cooling varies with the type of massecuite. The cooling of massecuite
results in shifting of sugar from the mother liquor to the crystals and thus higher yield of crystals is
obtained and in return the sugar escaping in the mother liquor is reduced.
Separation of Crystals
The massecuites A, B & C obtained are centrifugaled to separate crystals from its mother liquor. The
mother liquor of higher purity is recycled in the process to extract sugar. The least purity mother liquor is
called final molasses and is sent out to storage tanks. The final molasses is weighed and its sugar
percentage is recorded for the assessment of losses in the boiling process. The sugar obtained from first
higher purity massecuite is taken for bagging and sugar from low purity massecuite is recycled in the
process. The recycling is necessary to produce good quality sugar and to minimize losses.
Drying, Grading, Weighment
The sugar is washed hot water with in the centrifugal machine,It is dropped and passed over a system of
hoppers where the sugar comes into contact with hot air and cold air alternatively. The air removes the
moisture from the sugar and dry sugar is obtained. The dry sugar is taken to the top of a grader with the
held of a sugar elevator. The grader consists of a no. of vibrating screens of the different opening. On
passing over the vibrating screens the sugar separates into different grades of large, medium and small
12
sizes.
The grading of sugar is based on crystal size and color. The different grades of sugar is kept in separate
lots in the godown. The grain size and colour is kept as per Indian sugar standard.
The sugar from grader is filled A twill bags and weighed as 100 kgs. nett. The bags are stitched and sent
to godown.
13
14
2.
3.
Temporary:-These who are not permanent but work in as well as in off-season also.
In the season, total strength of workers is 473. in off season, only 349 pays to the chose labour
that work in the season only as retaining allowance.
Trust
Mill has its own trust named Jagatjit trust. The trust has established in the year 1946. The entire
provident fund cut from the employees salary is deposited in this trust. Mill gives the annually
record of this provident fund to the Govt.
Logo
PHAGWARA
TM
WS
Wahid Sandhar Sugars Ltd. Also use a logo, Logo means a trade mark or a symbol inserted into
the firms letters & use for advertising purpose. The main aim of the logo of Wahid Sandhar Ltd.
is given below:
They believe that every company has a different sign in the market.
Logo of Wahid Sandhar Sugars Ltd. is mainly the name of the company.
Socio Economic Development
Sugar mill contribute to the socio-economic development state by offering. He remunerative
cane manager promoting joint action by the farmers in the management actuaries of the mills.
Providing employment to a large number of people including landless labours and farmers.
Today cooperative mills or other sugar mills directly/indirectly employment to over the 1000
employees and the wages paid in the sugar mills are best as compare to any other state of country
mobilizing rural saving for industrial purpose. Preserving individual states of farmers while
confirming the advantages of large sized industry.
Accounts selection takes area for making invoices and receiving. The payment of all the bill of
purchase and other expenses are entered in the payment register and respective accounts heads
.this selection is responsible employees and parties dealing with Wahid Sandhar sugar ltd.
LIST OF DIRECTORS
16
17
2.
3.
18
DEPARTMENTAL HEADS
Name
Designation
Chief Executive
Finance Controller
K.A. Gaur
B.S Garewal
G.M.(Tech.)
Chief Engineer
Mrs. Nisha
Manager A/cs
Cash Officer
19
Mr.S.K. Chawala
20
It is situated outside the city Phagwara so there is no such Problem which causes
pollution.
The way of working and taking with staff members is very well means its sound relation
with its employees & others.
The Wahid Sandhar sugar ltd Phagwara is was established sugar mill in the state.
There are 493 sugar industries in India in which 23 in Punjab and only one sugar industry
in Phagwara.
21
ORGANIZATIONAL STRUCTURE
Board of Directors
Director
Director
Production
Marketing
Treasurer
Director
Director (finance)
Personnel
or Vice President
Controller
22
Finance Controller
Accounts Officer
Assistance
Accountant
Assistant
Accounts selection takes area for making invoices and receiving. The payment, all the bills of
purchase & other expenses are entered in the payment registrar and respective accounts heads.
This selection is responsible employees and parties dealing with Wahid Sandhar Sugar Ltd.
23
RESEARCH METHODOLOGY
Research simply means search for knowledge. According to Rodman and Mory, research is
systemized effort to gain new knowledge. Some people consider research as a movement from
known to unknown; it is actually a voyage of discovery. According to Clifford Woody, research
includes defining and redefining problem, formulating hypothesis or the suggested solutions,
collecting organizing and evaluating data, reaching conclusions and at last carefully testing the
conclusions to determine whether they fit to the formulated hypothesis or not.
Research methodology has many dimensions, it includes not only the research methods but also
consists the logic behind the methods used in the context of the study and explains why only a
particular method of technique had been used so that search lend themselves to proper
evaluation. Thus in a way it is a written game plan for concluding research. The term research
refers to search of something new that can solve a problem. Research must have a specific
objective which is called research problem. On the basis of the problem, researcher sets
hypothesis. The goal of the research process is to produce new knowledge, which takes three
main forms:
Exploratory research
which structures and identifies new problems
Constructive research
which develops solutions to a problem
Empirical research
which tests the feasibility of a solution using empirical evidence
Casual research
which is related to day to day problems or for casual problem.
24
STEPS OF METHODOLOGY
25
RESEARCH DESIGN
The research design used here is Exploratory Research Design .I has to study the Fund flow
statement .So I need to enquire about financial activities and funds involved in them. So
availability of fund flows is collected by people related with company financial sector and based
on the reports
I have to explore the factors that really help me in analysis of fund flow statement. Since the
major emphasis was on the discovery of ideas and insights into the facts, the research design
most appropriate must be flexible enough to permit the consideration of many different aspects
of a phenomenon.
The methods used in context of this research design are:
(1) The survey of concerning literature
(2) Experience Survey.
The important features of this research design are listed as follows:
There is structured instrument for the collection of the data i.e. company
fund flow statement
Drafting Questionnaire
The questionnaire is considered as the most important thing in a survey operation. Hence it
should be carefully constructed. Structured questionnaire consist of only fixed alternative
26
questions. Such type of questionnaire is inexpensive to analysis and easy to administer. All
questions are closed ended.
Sampling Design
Sampling Unit
It defines the unit of target population that will be sampled i.e. it answers who is to be surveyed.
Sampling unit in my study will be individual employees of Wahid Sandhar Sugar Ltd. who are
indulging in making financial activities.
Sampling Techniques
This refers to the procedure by which the respondents should be chosen. In this study, Non
Probability sampling of the following type is used:- Convenience sampling, Sample Size:
It indicates the number of people to be surveyed. Through large sample give more reliable
results than small samples but due to constraints of time and money the sample size was
restricted to few respondents.
Area of Study
Though other methods are important, but this method is given prime significance in modern
research because of its extensive use to study the relationship of different factors, attitudes and
practices of society and to explore the problems that cannot be treated by experiment methods.
27
INTRODUCTION
Potential appraisal is another powerful tool of employee development. Whether managers realise
it or not, they are accustomed to make potential assessments. Every time a manager recommends
or fails to recommend an employee for a promotion, a potential assessment has, in fact, been
made. The process of assessing the managerial potential of employees deals with the question of
whether or not they have the ability to handle positions in the future which involve considerably
more responsibility than what they have right now. As long as individuals are viewed as being
28
able to handle increased or different responsibilities, they would be considered to have potential
(either latent or visible).
Potential appraisal may thus be defined as a process of determining an employees strengths and
weaknesses with a view to use this as a predictor of his future performance. This would help
determine the promotabilty of an individual to a higher position and help chalk out his career
plan. The fundamental difference between reviewing performance and assessing potential is in
the criteria used. In reviewing performance, the criterion used is what goals the employee
achieved and what skills he or she currently possesses that could be indicators of his or her
ability to assume different or more advanced responsibilities. It is this that makes potential
appraisal a very crucial & critical area.
If an employee without requisite abilities is promoted to a higher position and does not perform
as per expectations, then it becomes impossible to demote him. Thus, he is unable to perform at
the higher level and becomes a passenger in the system. It is rightfully assumed that every
individual has potential, low or high. Many organizations have people whose potential being
low; performance too is not up to the mark. Whilst the question in our minds hovers around how
such people got into the system, the fact remains that they do not contribute to the organizations
performance. If appraisal process implemented well, professional performance and potential
appraisal could take the organisation on a fast development track and faster productivity through
people.
Potential appraisal is one of the most important requirements for successful business and human
resource policy (kressler 2003). Rewarding and promoting effective performance in organization,
as well as identifying ineffective performers for developmental programs or other personnel
actions are essential to effective human resource management (Pulakos 2003).
Project on potential appraisal was done by many, and the research process carried out to find out
the employees potential. Sajitha Nair had done a project on potential appraisal for succession
planning in the year 2005. She looked at the competencies required by the person who will fit in
the job role. Then looked at the competencies possessed by the person and did a gap analysis.
She found that everyone excels in all key actions, full mastery of all competencies.
29
Gauging employees potential for managerial skills was done by Jasmine (2006). She found that
employees lack in decision making skills so that should be improved by various training
methods. Shradha (2006) did a research study on potential appraisal process. She recommended
that potential appraisal is an effective method to find out hidden talents and skills.
Potential Appraisal is the process of tracking unrevealed skills and abilities in a person which
even he/she is unaware of. It is a future oriented appraisal which aims to track the potential of the
employees to rise up in the organisational structure. Potential Appraisal is a potent device for
employee advancement. The term is not known to many; however, managers of almost every
organisation have been making potential assessments every year.
Managers use the predictors to determine whether the employee has the managerial potential to
execute added responsibilities in the future. Potential Appraisal helps in the decision making of
promoting candidates and making a career plan for them.
To understand it better, we can compare it with the reviewing performance. Review Performance
is assessed on the basis of the targets accomplished and the skills possessed and utilized by
him/her. The results act as indicators on the candidates aptitude to manage extra functions.
However, this is not a foolproof way of knowing whether added responsibilities will be handled
successfully in future. This makes potential appraisal important.
Potential Appraisal cannot be applied to all in the same level. For e.g. there are people in the
organization who have potential but who do not perform (attitudinal problem). Some people
excel in their day to day jobs but when laden with additional tasks, they fail (workhorses). If they
are promoted to higher designations then it becomes a problem for the employees and the
company. Then there are stars who are brilliant in their jobs and have high potential too; but
since they are prized candidates, they are difficult to retain and are always on the lookout of
something better and bigger.
The time for a potential appraisal is not fixed. It is under the discretion of the manager to hold
the assessment activity. Unlike performance review, it does not happen at a particular period in
every organization. The managers generally exercise it when an employee achieves a certain
30
milestone, or completes a year or is planning to change jobs for whatever reasons. Usually it is
recommended to take place within 6 months.
Potential appraisal may thus be defined as a process of determining an employees strengths and
weaknesses with a view to use this as a predictor of his future performance. This would help
determine the promotabilty of an individual to a higher position and help chalk out his career
plan. The fundamental difference between reviewing performance and assessing potential is in
the criteria used. In reviewing performance, the criterion used is what goals the employee
achieved and what skills he or she currently possesses that could be indicators of his or her
ability to assume different or more advanced responsibilities. It is this that makes potential
appraisal
very
crucial
&
critical
area.
If an employee without requisite abilities is promoted to a higher position and does not perform
as per expectations, then it becomes impossible to demote him. Thus, he is unable to perform at
the higher level and becomes a passenger in the system. It is rightfully assumed that every
individual has potential, low or high. Many organizations have people whose potential being
low; performance too is not up to the mark. Whilst the question in our minds hovers around how
such people got into the system, the fact remains that they do not contribute to the organizations
performance. If appraisal process implemented well, professional performance and potential
appraisal could take the organisation on a fast development track and faster productivity through
people.
The potential appraisal refers to the appraisal i.e. identification of the hidden talents and skills of
a person. The person might or might not be aware of them. Potential appraisal is a future
oriented appraisal whose main objective is to identify and evaluate the potential of the employees
to assume higher positions and responsibilities in the organizational hierarchy. Many
organizations consider and use potential appraisal as a part of the performance appraisal
processes.
Potential appraisal is one of the most important requirement for successful business and human
resource policy (kressler 2003). Rewarding and promoting effective performance in organization,
as well as identifying ineffective performers for developmental programs or other personnel
31
actions
are
essential
to
effective
human
resource
management
(Pulakos
2003).
Project on potential appraisal was done by many, and the research process carried out to find out
the employees potential. Sajitha Nair had done a project on potential appraisal for succession
planning in the year 2005. She looked at the competencies required by the person who will fit in
the job role. Then looked at the competencies possessed by the person and did a gap analysis.
She found that everyone excels in all key actions, full mastery of all competencies.
Gauging employees potential for managerial skills was done by Jasmine (2006). She found that
employees lack in decision making skills so that should be improved by various training
methods. Shradha (2006) did a research study on potential appraisal process. She recommended
that potential appraisal is an effective method to find out hidden talents and skills.
The procedure of potential appraisal should commence and end with a meeting between
the two parties. In the first meeting the manager can list the abilities required to deliver
additional tasks. He/she can recommend various ways to attain them in-house training
programmes, external workshops, etc. The latter meeting can be a review (usually after 6
months) to test whether the skills have been rightly acquired or not. During the observation time
the manager is supposed to note the various abilities adopted and used by the candidate in work
and the improvement areas. The employee should be ready to defend every action with
examples. They can then chalk out a plan to chase the potential and taste growth in the
organization.
It should be noted that a potential appraisal does not guarantee promotion. Normally, most
of the companies do it to facilitate the growth of an individual. The companies can use the results
of such an assessment for
33
To advise employees about their overall career development and future prospects.
CHARACTERISTICS
34
35
Self appraisals
Peer appraisals
Superior appraisals
MBO
Psychological and psychometric tests
Management games like role playing
Leadership exercises etc.
Potential appraisal helps to identify what can happen in future so that it can be guided and
directed towards the achievement of individual and organizational growth and goals. Therefore,
potential should be included as a part of the Performance appraisal in organisations.
1. SELF APPRAISAL
It allows an employee complete freedom in accessing his or her strengths objectively and
identifying the areas of development. The employees get a chance to share the development areas
with their seniors based on their self appraisal and jointly worked out a plan in tune with the
organizational realities like the availability of resources and time. It also gives a chance to the
employee to express his career plans which is in the interest of the organization as it knows
beforehand the aspirations of its employee.
TIPS FOR SELF APPRAISAL
Be honest
Always be truthful and honest while telling your accomplishments or failures. Dont
exaggerate your strengths and dont hide your weaknesses. Dont make personal
judgments for anybody.
Do the preparation
Its always better to prepare yourself before the meeting. Get all the lists in place; prepare
all the evidences and references.
Be objective
Objectivity is important in self appraisal. Dont exaggerate or downplay your
achievements or failures. Be specific and concise in your statements and if possible
support them with examples or references or evidences with dates. For example: "I
37
responded to all queries within 48 hours" is better than just saying "My customer service
was good."
Positive attitude
Have a positive attitude towards the whole appraisal process. Be co-operative. Dont
hesitate from taking the responsibility of your failures as well as the achievements.
Demonstrate enthusiasm to improve in future and take all his suggestions calmly. Dont
complain or demonstrate a negative attitude.
Self appraisal should ideally include the accomplishments, the goals achieved, the failures, and
the personal growth (i.e. new skills acquired, preparation for the future etc.), the obstacles faced
during the period, the efforts for removing them, the suggestions, and the areas of training and
development felt by the employee.
2. PEERS APPRAISAL
It also plays an important role in 360 degree appraisal as the role of peers is quite important in
life of an employee. Selecting the right peers is very important and peers from the departments
that are directly related with the department of the employee should also be included. It mainly
focuses on feedback about the style of functioning of the employee under review and can also
include his ability to work as team leader besides his co-operation and collaboration.
38
The use of multiple raters in the peer dimension of 360-degree assessment programs
tends to average out the possible biases of any one member of the group of raters.
The increased use of self-directed teams makes the contribution of peer evaluations the
central input to the formal appraisal because by definition the supervisor is not directly
involved in the day-to-day activities of the team.
Peer ratings have been an excellent predictors of future performance and manner of
performance.
The addition of peer feedback can help move the supervisor into a coaching role rather
than a purely judging role.
Employees report resentment when they believe that their extra efforts are required to
make the boss look good as opposed to meeting the units goals.
It is essential that the peer evaluators be very familiar with the team members tasks and
responsibilities.
The use of peer evaluations can be very time consuming. When used in PA, the data
would have to be collected several times a year in order to include the results in progress
reviews.
Peer evaluations are appropriate for developmental purposes, but to emphasize them for
pay, promotion, or job retention purposes may not be prudent always.
Generally, the identities of the raters should be kept confidential to assure honest
feedback. But, in close-knit teams that have matured to a point where open
communication is part of the culture, the developmental potential of the feedback is
39
enhanced when the evaluator is identified and can perform a coaching or continuing
feedback role.
Depending on the culture of the organization, peer ratings have the potential for creating
tension and breakdown rather than fostering cooperation and support.
3. SUPERIOR APPRAISAL
An appraisal by superiors involves providing constructive, feedback about the performance of
any employee as well as his development areas during the review period. It helps in setting goals
for the employees that help in achieve the organizational goals and improve the performance of
the employee. The career aspirations of an employee are also put in proper prospective.
Clarity of goals With MBO, came the concept of SMART goals i.e. goals that are:
Specific
Measurable
Achievable
41
Realistic, and Time bound. The goals thus set are clear, motivating and there is a linkage
between organizational goals and performance targets of the employees.
The focus is on future rather than on past. Goals and standards are set for the
performance for the future with periodic reviews and feedback.
Motivation Involving employees in the whole process of goal setting and increasing
employee empowerment increases employee job satisfaction and commitment.
MBO Limitations
MBO is not a panacea, cure-all for organizational problems. Quite often many organizations look
to MBO as an instant solution to their problems. They fail to recognize that MBO demands
careful planning and implementation, to be successful. This technique, like all others, can be no
better than the people who try to apply it. Some of the problems preventing MBO from achieving
its best results may be catalogued thus:
(a)
Time consuming: MBO demands a great deal of time to set objectives carefully at all
levels of the organization. Initially to instill confidence in subordinates in the new system'
superiors may have to hold many meetings. The formal, periodic progress and final review
sessions also consume time.
(c)
instruction booklets, training manuals, questionnaires, performance data, reports into the
42
organization. To stay abreast of what is going on in the organization managers may demand
regular reports and data in writing resulting in
created one more paper mill'. According to Howell, MBO's effectiveness is inversely related to
the number of MBO forms.
(d)
Goal-setting problems: MBO works when important measurable objectives are jointly
agreed upon. It works less when; (i) Verifiable goals are difficult to set. (ii) Goals tend to take
precedence over the people who use it. MBO focuses on end results and it may foster an attitude
that any action is acceptable as long as it helps to achieve the goals. Consequently, unwise
decisions are made that would ultimately harm the organization. (iii) Goals are inflexible and
rigid. (iv) There is over-emphasis on quantifiable and easily measurable results instead of
important results. Many important qualitative goals like job satisfaction, employee attitudes are
lost sight of (attempts to set measurable goals force managers to search for a magic figure for
each area). (v) Overemphasis on short-term goals at the expenses of long-term goals. Attempts to
show results force managers to curtail cost in areas where a long-term perspective would be
more fruitful to the organization in the long-run.
(e)
Organizational problems: MBO is not a palliative for all organizational ills. It is not for
There is failure to teach the philosophy to all participants. Too often MBO is introduced
Large organizations employ full time industrial psychologist, when psychologists are used for
evaluations; they assess an individuals future potential and not performance. The appraisal
normally consists of in depth interviews, psychological tests, discussions with
supervisors and a review of other evaluations. The psychologist may be for a specific job
opening for which the person is being considered, or it may be a global assessment
of his or her future potential
Psychometric tests include personality profiles, reasoning tests, motivation questionnaires, and
ability assessments. These tests try to provide objective data for otherwise subjective
measurements. For example, if you want to determine someone's attitude, you can ask the person
directly, observe the person in action, or even gather observations about the person from other
people. However, all of these methods can be affected by personal bias and perspective. By using
a psychometric test, you make a more objective and impartial judgment.
Interest tests measure how people differ in their motivation, values, and opinions in
relation to their interests.
Personality tests measure how people differ in their style or manner of doing things,
and in the way they interact with their environment and other people.
Aptitude tests measure how people differ in their ability to perform or carry out
different tasks.
44
A role playing game is a training session where the facilitator, perhaps with an assistant or
two, sets up a scenario where the participants are assigned different roles, where those roles
identify with those in the situation where participants will find themselves when they
undertake their work in the field.
The play gives the training participants opportunities to act out various roles chosen to
represent actual roles that would be in the field situation.
One important result is that training participants get an opportunity to see the field situation
from perspectives other than those they might be taking in reality. That opportunity results in
a greater sensitivity to the experiences of other persons in the field situation.
The follow-up session following the play gives the training participants an opportunity to
analyze some of the social dynamics that occur. This objectivity is available both to those who
take roles for a play session, and to those who might be observing the role-play session.
The third stage is the follow-up. This is important and cannot be omitted.
7. LEADERSHIP EXERCISES
Leadership Exercises require the presence of an efficient team guided by a leader. Leadership
involves guiding a group of team members towards achieving a pre-defined goal. Since every
individual differs from one another, leadership can be further characterized into various classes
and categories. More often than not; successful leadership depends on the situation. Every
situation demands a different leadership style since there is single style of leadership which can
successfully address every situation.
Leadership Exercises Various Types
Motivation: This is one of the leadership exercises which help you in not only
understanding the situations but also the practices which motivate team members.
Another activity which could be put into practice is the observation of a groups reaction
once a new leader takes charge. This approach that a new leader should follow is also one
of the motives addressed through this exercise. Another factor affecting the success of the
Creative Leadership exercises are the most beneficial. This activity requires the leader
to lead the team towards a successful result. The observers feedback is considered very
crucial since it highlights the shortcomings the leader faces while heading a team. This
activity is entirely based upon effective monitoring, delegation and organization of the
chores assigned. This activity makes you learn the completion of the activity within a
advise employees about what they must do to improve their career prospect
TOOLS USED
Psychometric Tests
Interviews- background interviews, critical incident/situational interviews
Leaderless Group Discussions
In basket Techniques
Management Games
Role Plays
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Presentations
PROCEDURE USED
Observation and Individual Assessor Rating
Assessors Discussions
Consultants Role
CEOS Role
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49
This Performance appraisal concentrates on the future, based on the performance of the past and
helps in developing the personal interests of the employees in alignment to the organisational
goals.
With the help of the potential appraisal form, the employees/ individuals are judged on various
performance and behavioral parameters like:
development?
Recommendations for the training and development of the employee
Updating knowledge on the latest developments on their job related and subject areas.
Rate the employee on the following characteristics or how does the employee fair on
following behavioral characteristics:
o Decision making
o Independent
o Confidence towards the job
o Handling stress and pressure
o Inter-personal skills, both with superiors and subordinates
o Leadership, motivating and conflict handling
The past performance of the employee and the potential of performing in future helps to identify
the hidden talents.
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The next section is, commonly, designed to gather the information from the employee regarding
his on-the-job performance and his responsibilities:
The form also includes a section where the employee rates himself on various behavioral
parameters like:
Communication skills
Inter-personal skills
Problem-solving
Team work
Adaptability/Flexibility
Initiative
Decision Making
Leadership
Maturity
The self appraisal form also includes a section where the employee can quote examples and
incidents to support his ratings and answers. The self appraisal form generally ends with a
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subjective section asking for suggestions and the choice of discussing any other topic that the
employee feels the need to raise and discuss.
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Indicators of Qualities:
A good potential appraisal system besides listing down the functions and qualities would also
have various mechanisms for judging these qualities in a given individual. Some of the
mechanisms for judging these qualities are
(a) Rating by others,
(b) Psychological tests,
(c) Simulation games and exercises,
(d) Performance appraisal records.
Organising the System:
Once the functions, the qualities required to perform these functions, indicators of these qualities,
and mechanisms for generating these indicators are clear, the organisation is in a sound position
to establish and operate the potential appraisal system. Such establishment requires clarity in
organisational policies and systematisation of its efforts.
Feedback:
If the organisation believes in the development of human resources it should attempt to generate
a climate of openness. Such a climate is required for helping the employees to understand their
strengths and weaknesses and to create opportunities for development. A good potential appraisal
system should provide an opportunity for every employee to know the results of assessment. He
should be helped to understand the qualities actually required for performing the role for which
he thinks he has the potential, the mechanisms used by the organisation to appraise his potential,
and the results of such an appraisal. A good potential appraisal system provides opportunities
continuously for the employee to know his strengths and weaknesses. These are done through
periodic counseling and guidance sessions by either the personnel department or the managers
concerned. This should enable the employee to develop realistic self-perceptions and plan his
own career and development.
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APPRAISAL PROCESS
In a potential appraisal following steps are involved:
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organization.
Several candidates or participants are assessed together to allow interaction and to make
Assessment centres provide good opportunities for indicating the extent to which candidates
match the culture of the organization. This will be established by observation of their behaviour
in different but typical situations, and by the range of the tests and structured interviews that are
55
part of the proceedings. Assessment centres also give candidates a better feel for the organization
and its values so that they can decide for themselves whether or not they are likely to fit.
CONCULING COMMENTS
Potential Appraisal is another powerful tool of employee development. Whether managers realise
it or not, they are accustomed to making potential assessments. Every time a manager
recommends or fails to recommend an employee for a promotion, a potential assessment has, in
fact, been made. The process of assessing the managerial potential of employees deals with the
question of whether or not they have the ability to handle positions in the future which involve
considerably more responsibility than what they have right now. As long as individuals are
viewed as being able to handle increased or different responsibilities, they would be considered
to have potential (either latent or visible). Potential appraisal may thus be defined as a process of
determining an employees strengths and weaknesses with a view to use this as a predictor of his
future performance. This would help determine the promotabilty of an individual to a higher
position and help chalk out his career plan. The fundamental difference between reviewing
performance and assessing potential is in the criteria used. In reviewing performance, the
criterion used is what goals the employee achieved and what skills he or she currently possesses
that could be indicators of his or her ability to assume different or more advanced
responsibilities. Managers cannot rely exclusively on past performance since a persons ability to
adequately handle one level of responsibility does not necessarily mean that he or she can
perform well in a position with a higher level or different responsibility. It is this that makes
potential appraisal a very crucial & critical area. If an employee without requisite abilities is
promoted to a higher position and does not perform as per expectations, then it becomes
impossible to demote him. Thus, he is unable to perform at the higher level and becomes a
passenger in the system. It is rightfully assumed that every individual has potential, low or
high. Many organizations have people whose potential being low; performance too is not up to
the mark. Whilst the question in our minds hovers around how such people got into the system,
the fact remains that they do not contribute to the organizations performance. A major problem
that companies face is tackling the problem children. They can and have the ability to perform
but do not perform and do not contribute to the organizations performance. This is mainly seen
as an attitudinal problem. Further, these problem children bask in the glory of their potential but
56
are unable to contribute to their own jobs. Dealing with workhorses too could be tricky. They can
perform very well on routine tasks but have limited potential. Hence, their promotabilty is
difficult and this creates frustrations for the employees. If promoted, they are unable to perform
higher-level jobs and this too creates problems both for the individuals and the organisation. We
easily conclude that stars are ideal people to have in organisations. But retaining these stars
could be difficult. They have high potential backed by high levels of performance and could be
always on the lookout for greener pastures. Thus, as we see, potential appraisal is more intricate
and complex vis--vis performance appraisal.
Because of the nature of the potential assessment activity, its timing and frequently is left to the
managers discretion. In assessing potential, managers are asked to make predictions about the
future. These predictions concern many unknown factors, namely whether the individual can
handle new responsibilities in a different managerial capacity, In addition, the potential
assessment criteria is based mostly on an employees process skills, which may be difficult to
measure in a precise way. Thus, the timing and frequency of conducting potential assessment can
be quite different from the more predictable timing of a performance review. For example, the
potential assessment might occur when an employee has been on the job for one year, when an
employee reaches certain mile-stones (i.e. every three years), or in preparation for major
organizational shifts brought about by changes in the business such as reorganizations, expansion
or rationalization. It is recommended that the potential assessment process take place at least
over a six-month period, with a manager-employee meeting at both the beginning and end of the
process. To begin the process, the manager and employee should meet to identify the process
skills and the technical and administrative skills required for the employees future
responsibilities. The manager explains why these skills are necessary and explores with the
employee how these skills might be learned and utilized on the current job. This includes
nominating employees for some specific training programmes, both skill-based and knowledgebased. Some organisation may also organise such programmes on an in-house basis. Further onthe-job training could also be incorporated for the employees.
It is recommended that the manager observe the employee for at least three to six months to
assess the extent to which the employee possesses and demonstrates the acquired skills. During
the observation period, the manager should note specific behavioural examples of these skills
57
and be prepared to discuss them with the employee at the concluding assessment meeting. The
employee should also be prepared to discuss behavioural examples that demonstrate ability and
need. At the assessment meeting, the manager and employee jointly review their observations.
This discussion should include the identification of the employees skill strengths and
developmental needs. The manager then provides a written assessment in the form of summary
statement. Usually about one paragraph in length, the summary provides the employee with a
brief, clear statement of where he or she stands regarding potential. An important concept to be
conveyed during this meeting is that, while the employee may be assessed as having potential for
a higher level or different position, no promises of a particular job can be made. Before the
conclusion of this meeting, the pair should formulate a development plan (i.e. decide on new
development activities) that the employee can pursue in order to help realise his or her potential.
Let us realise that there are no shortcuts to the successful implementation of potential appraisal.
If potential appraisal is done in a systematic way it would contribute to having well designed
career plan that would indicate the preferred growth path of an individual in an organisation. For
example, a post-graduate diploma or degree holder in marketing management would aspire for
career avenues in market research, sales management, advertising and such. An individual
specialised in HRM could aspire for avenues in manpower planning, training, welfare, industrial
relations and so on. Any professional organisation would make sincere efforts to match the
individual career aspirations. This would obviously be a mutually beneficial activity for the
individual and the organisation. Further, succession planning is the process where every
individual manager is expected to develop a subordinate who would take over from him over a
period of time. Many managers feel insecure about this process and avoid indulging in this
development activity. What they fail to realise is that, if an individual has the potential and shows
good performance, there is always room at the top. Unless they themselves become
unpromotable and stagnant. Succession planning too would succeed if and only if a good
potential appraisal system exists and is in firm place. To conclude, if potential appraisal is not
done in a planned manner, you may promote an undeserving employee. As a consequence, he
does not succeed but would not accept a demotion back to his old slot. Thus, in a bid to develop
a territory manager out of a super-salesman, and not doing it properly; you lose both in the
process. But if implemented well, professional performance and potential appraisal could take
the organisation on a fast development track and faster productivity through people.
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59
POTENTIAL ASSESSMENT
In consonance with the philosophy of human resource development that has replaced the
erstwhile personnel management in many organizations,, more emphasis has been laid on the
appraisal of the employees potential in addition to their performance. Many companies, which
carry out performance appraisal, also keep records on the potential of their employees for future
promotion opportunities. The task of identifying potential for promotion cannot be easy for the
appraising manager, since competence of a member of staff to perform well in the current job is
not an automatic indicator of potential for promotion. Very often the first class salesman is
promoted to become a mediocre sales manager, the excellent chief engineer is promoted to
become a very poor engineering director, and the star football player struggles to be a football
manager. The following are some of the requirements and steps to be followed when introducing
a potential appraisal system:
Role Description: A good potential appraisal system would be based on clarity of roles and
functions associated with the different roles in an organization. This requires extensive job
descriptions to be made available for each job. These job descriptions should spell out the
various functions involved in performing the job. Qualities Required: Besides job descriptions, it
is necessary to have a detailed list of qualities required to perform each of these functions. These
qualities may be broadly divided into four categories
(1) technical knowledge and skills,
(2) managerial capabilities and qualities,
(3) behavioral capabilities, and
(4) Conceptual capabilities.
Indicators of Qualities: A good potential appraisal system besides listing down the functions
and qualities would also have various mechanisms for judging these qualities in a given
individual. Some of the mechanisms for judging these qualities are
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A brief explanation on the parameters based on which the Potential Assessment is done: Group
Effectiveness Questions pertaining to group effectiveness measured the employee in the acpects
of improving the morale of the team, aligning the team to the organizational objectives,
effectively utilizing the resources to optimize the productivity and in directing and coordinating
the team activities.
Ability to develop subordinates
Employees were rated in the aspect of their ability to develop subordinates mental skills,
providing guidance to them, giving opportunities for the team members to grow and develop
their skills and in mentoring the team members.
Analytical Ability
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Employees were also evaluated on their analytical skills based on their capacity to breakdown
complex business situations into manageable terms, in analyzing the situations to arrive at
patterns for any particular problem or issue, in identifying the strength and weakness of a team to
plan activities accordingly.
Breadth of Vision
Employees were also rated with respect to their ability to examine a problem or a business
situation in a broader context and in their sensitivity in taking decisions considering all the
stakeholders.
Ownership and Accountability
Employees were rated on their ability to go the extra mile and take accountability for their
action.
Team Skills
Employees were also rated on their ability to adhere with the team and supporting the team in its
function. A questionnaire was developed based on the above dimensions and was administered to
40 Employees as part of the pilot. 5 Point rating scale was employed for the same with 5 being
the highest and 1 being the lowest. The purposes of a potential review are:
1. To inform employees of their future prospects
2. To enable the organization to draft a management succession programme
3. To update training and recruitment activities
4. To advise employees about the work to be done to enhance their career
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One of the important objectives of appraisal, particularly potential appraisal is to help employees
to move upwards in the organization. People do not like to work on dead end jobs. Hence, a
career ladder with clearly defined steps becomes an integral component of human resources
management. Most HRM practitioners favour restructuring of a job to provide reasonably long
and orderly career growth. Career path basically
refers to opportunities for growth in the organization. Availability of such opportunities has
tremendous motivational value. It also helps in designing salary structures, identifying training
needs and developing second line in command. Career paths can be of two kinds:
(i) Those where designations changes to a higher level position, job remaining more or less the
same. A good example of this is found in teaching institutions, where an assistant professor may
grow to become associate professor and a professor, but the nature of job (teaching and research)
remains the same. Career path in such situations means a change in status, better salary and
benefits and perhaps less load and better working conditions.
(ii) Those where changes in position bring about changes in job along with increased salary,
status and better benefits and working conditions. In many engineering organizations, an
employee may grow in the same line with increased responsibilities or may move to other
projects with different job demands
Role of Potential Assessment in Succession Planning :
Succession planning is an ongoing process that identifies necessary competencies, then works
toassess, develop, and retain a talent pool of employees, in order to ensure a continuity of
leadership for all critical positions. Succession planning is a specific strategy, which spells out
the particular steps to be followed to achieve the mission, goals, and initiatives identified in
workforce planning. It is a plan that managers can
follow, implement, and customize to meet the needs of their organization, division, and/or
department. The continued existence of an organization over time requires a succession of
persons to fill key position .The purpose of succession planning is to identify and develop people
to replace current incumbents in key positions. Potential Assessment can be one of the tools that
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can effectively improve the succession planning process by helping Managers identify the
successors based not only on their performance but also on the potential that they possess.
There are 507 sugar industries in India, 23 in Punjab and only one in Phagwara namely Wahid
Sandhar sugar mill ltd Phagwara is a leading company in the sugars which is engaged in the
production of sugar, molasses and other by products. The Narang group set up in the Phagwara
sugar mill formally known as jagjit sugar Mill Company limited. In the year 1933, Dr Gokal
Chand Narang was the founder of the mill. The factory was set up at initial with crushing
capacity of 400 tones
management of mill took over by oswal group under the chairmanship of sh. Abhey Oswal then
crushing capacity to 4000 tons per day in 1989. On 16 th September 2000, this mill was taken over
in the partnership of Wahid Sandhar Group. Under the chairmanship of managing director sh.
Sukhbir Singh sandhar the present crushing capacity is 4500 tones per day.
The raw material of sugarcane is supplied to the factory through cane corporative society name:
These society arranged sugar supply in the factory through their member Grover. These society
at the rate of 50% per paisa in the cane supply paid by each society to encourage the farmers to
being more under sugar cane they are giving to the farmer these incentives such as interest free
loan subsidies adjusted plant production chemicals high a (Kiran/Gahi) where in basic necessities
have been provided exclusively for the use of the farmers. They have a good parking yard in
front of their factory main gate where incoming cane to loaded trolleys and carts all parked in
addition to this thy have acquired a suitable fact for packing of such cane loader vehicles. Both
the places 400 canes trolleys can be parked which are crushed in 16 hours time. By production in
Wahid Sandhar sugars limited is as below:o
4 tones of molasses
3 tones of presumed
2.
3.
4.
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COMPANYS PROFILE
Sector: private
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Set up by:- narang group formally known as jagjit sugar mill co.
Sector:- private
AUDITORS
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CONTRIBUTION TOWARDS
SOCIETY:
TRUST:
The trust has established in the year 1946. The entire provident fund cut from the
employees salary is deposited in this trust.
Mill gives the annually record of this provident fund to the government
Sugars
Molasses
Bag gasses
Presumed
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Sugars:Production of sugar is seasonal. The production season starts from 1st November to 30th April.
Molasses:It is used as raw material for alcohol products in distilleries and in cattle feed industries. It is also
used in casting.
Bag gasses:It is used in paperboard making and as full boilers
Presumed:It is used as fertilizers in the field and for bio comport making.
Ensuring the quality about insurance system and procedures are highly
maintained and continuously upgraded to reflect customers changing
requirement.
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Years
quantity of
Percentage
Total
cane
crushed in Qtls.
2000-2001
30.02 lacs
09.04
2001-2002
41.15 lacs
08.84
2002-2003
40.62 lacs
10.55
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SUGGETIONS
It is not an easy task to recommend suggestions to such large organization. During the training
period of six weeks, I am able to suggest that:
The staff was not ready to devote much time for providing the data to us.
There is extremely bad smell in the production unit and the places around it. Provisions should be
made to exhaust the bad smell.
Workers of wahid sandhar sugars mill ltd. Are not so co-operate. They should co-operated each
other to create friendly environment and for achieving their organizational goals.
Workers do not like to participate in top management. The management should motivate workers
to participate in decision making and other suggestion schemes.
Financial Participation:
This method involves less consultations or even joint decisions. Performance of the organization
is linked to the performance of the employee. The logic behind this is that if an employee has a
financial stake in the organization, he/she is likely to be more positively motivated and involved.
Total Quality Management:
TQM refers to the deep commitment, almost obsession, of an organization to quality. Every step
in companys processes is subjected to intense and regular scrutiny for ways to improve it.
Participation through Suggestion Schemes:
Employees views are invited and reward is given for the best suggestion. With this scheme, the
employees interest in the problems of the organization is aroused and maintained. Progressive
managements increasingly use the suggestion schemes. Suggestions can come from various
levels. The ideas could range from changes in inspection procedures to design changes, process
simplification, paper-work reduction and the like. Out of various suggestions, those accepted
could provide marginal to substantial benefits to the company. The rewards given to the
employees are in line with the benefits derived from the suggestions.
Participation through Collective Bargaining:
Through the process of CB, management and workers may reach collective agreement regarding
rules for the formulation and termination of the contract of employment, as well as conditions of
service in an establishment. Even though these agreements are not legally binding, they do have
some force. For CB to work, the workers and the employers representatives need to bargain in
the right spirit. But in practice, while bargaining, each party tries to take advantage of the other.
This process of CB cannot be called WPM in its strongest sense as in reality; CB is based on the
crude concept of exercising power for the benefit of one party. WPM, on the other hand, brings
both the parties together and develops appropriate mutual understanding and brings about a
mature responsible relationship.
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DISCUSSIONS
In this system, managers or executives called a meeting of workers and share the
information with them whenever they feel necessary. they explain the problems to worker
and give information to them and invite suggestions from them. The workers give their
opinions to managers to solve their problems.
SUGGETIONS
Under this system the employees are encouraged to make suggestions for improvement in
problem of organization are consulted with workers and invite suggestions from them
then workers feel like a part of organization.
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DISCUSSIONS
In this system, managers or executives called a meeting of workers and share the
information with them whenever they feel necessary. they explain the problems to worker
and give information to them and invite suggestions from them. The workers give their
opinions to managers to solve their problems.
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77
78
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Under this scheme, the employees are encouraged to make suggestions for improvements.
Workers at all level of the organization from top to the bottom are to made their suggestions
orally to the top management:
1. Increase productivity
2. Work simplification
3. Material handling
4. Decrease in wastage, spoilage, mishandling of tools or machines
5. Increase in quality
6. Safety and security measures etc.
The workers may suggest some new methods of production or new scheme for all
these. The suggestions are put before a committee of the management for security. Best
method and schemes are kept and other reject
Empowered Teams:
Empowerment occurs when authority and responsibility are passed on to the employees who
then experience a sense of ownership and control over their jobs. Employees may feel more
responsible, may take initiative in their work, may get more work done, and may enjoy the work
more.
Participation through Suggestion Schemes:
Employees views are invited and reward is given for the best suggestion. With this scheme, the
employees interest in the problems of the organization is aroused and maintained. Progressive
managements increasingly use the suggestion schemes. Suggestions can come from various
levels. The ideas could range from changes in inspection procedures to design changes, process
simplification, paper-work reduction and the like. Out of various suggestions, those accepted
80
could provide marginal to substantial benefits to the company. The rewards given to the
employees are in line with the benefits derived from the suggestions.
Participation through Collective Bargaining :
Through the process of CB, management and workers may reach collective agreement regarding
rules for the formulation and termination of the contract of employment, as well as conditions of
service in an establishment. Even though these agreements are not legally binding, they do have
some force. For CB to work, the workers and the employers representatives need to bargain in
the right spirit. But in practice, while bargaining, each party tries to take advantage of the other.
This process of CB cannot be called WPM in its strongest sense as in reality; CB is based on the
crude concept of exercising power for the benefit of one party. WPM, on the other hand, brings
both the parties together and develops appropriate mutual understanding and brings about a
mature responsible relationship.
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One or more representative of the workers can be taken by the board of directors.
workers are therefore fully associated with top decision making body. They are thus
responsible for the successful implementation of all plans.
DISCUSSIONS
In this system, managers or executives called a meeting of workers and share the
information with them whenever they feel necessary. they explain the problems to worker
and give information to them and invite suggestions from them. The workers give their
opinions to managers to solve their problems.
Such methods have been devised in away that workers representatives are consulted for
activities relating to their welfare, working conditions or routine matters. The
representative of the management and workers sit together and discus the issues and find
out suitable suggestions. The workers committees assigned issues like condition of work,
safety measures and labour welfare. Joint management councils have wide role to play.
82
SUGGESTIONS
Under this system the employees are encouraged to make suggestions for improvement in
problem of organization are consulted with workers and invite suggestions from them
then workers feel like a part of organization.
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DISPOSAL OF WASTE
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Proper arrangements are made in the mill for the treatment of wastes due to manufacturing
process.
VENTILATION AND TEMPERATURE
In sugar mill the process which produces high temperature is separated from the workrooms by
insulating the hot parts or by others means.
DUST AND FUMES
Following steps are taken in wahid sandhar sugars mill ltd:
LIGHTING
Every part of mill is provided with suitable lighting. Both artificial and manual lights are
provided in the sugar mill
DRINKING WATER
In sugar mill proper and effective arrangements are made to provide drinking water to workers.
Following rules are observed in mill:
All water points clearly marked as drinking water in the language understood by workers.
Such water points are situated at the distance of 6 meters of any working place, urinals etc.
SPIT TONS
Sugar mill provided a sufficient number of spittoons to workers at convenient places. These all
are maintained in clean and hygienic conditions
PROVISIONS REGARDING SAFETY OF WORKERS
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Safety is a basic and primary requirement in a factory. Unless the life of workers is secure,
smooth and proper, the working cannot be ensured in any factory sections 21 to 41 of the act
contains the provisions regarding the safety of workers. Wahid sandhar sugars ltd follows the
following provisions :
FENCING OF MACHINARY:
In wahid sandhar sugar mill ltd, following machinery is securely fenced by safeguards:
Every moving part of prime mover and every fly wheel connected to a prime mover
The head race and tail race of every water wheel and water turbine
Any part of stock bar which project beyond the headstock of a lathe.
He has been fully instructed as to the dangerous arising in connection with the machine
and the precaution to be observed
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In sugar mill suitable devices for cutting power in emergencies from running machinery
are provided and maintained in every work room
LIFTING CHAINS MACHINES ROPES AND LIFTING TACKLES:
In wahid sandhar sugars ltd the following provisions are following with respect lifting
machines, chains and ropes for the purpose of raising or lowering of good persons or
materials. These shall be:
Properly maintained
REVOLVING MACHINERY :
In every room in a mill in which the process of grinding is carried on, these shall be
permanently affixed to or placed or near each machines in use, a notice indicating
maximum safe peripheral speed.
WORKERS PARTICIPATION IN SUGGESTIONS SCHEME
Under this scheme, the employees are encouraged to make suggestions for improvements.
Workers at all level of the organization from top to the bottom are to made their suggestions
orally to the top management:
1. Increase productivity
2. Work simplification
3. Material handling
4. Decrease in wastage, spoilage, mishandling of tools or machines
5. Increase in quality
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The workers may suggest some new methods of production or new scheme for all
these. The suggestions are put before a committee of the management for security. Best
method and schemes are kept and other reject.
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Level of participation
Subsidiary level
Time factor
Extend of participation
Significance of decision
Industrial practices
Degree of possibility
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No. of workers
Methods of participation
which
express
contribute
to
management
decisions
The broad goal of participation is to change basically the organizational aspect of production
and transfer the management function entirely to the workers so that management becomes Auto
management.
Worker participation can take many forms. There might be a consultative council in the company
where trade unions and management meet regularly to discuss points of mutual interest. Workers
can be organized in quality circles and meet regularly in small groups to discuss ways in which
their work could be better organized.
Three groups of managerial decisions affect the workers of any industrial establishment and
hence the
Economic decisions methods of manufacturing, automation, shutdown, lay-offs, and mergers.
Personnel decisions recruitment and selection, promotions, demotions, transfers, grievance
Settlement, work distribution.
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Social decisions hours of work, welfare measures, questions affecting work rules and conduct
of individual workers safety, health, and sanitation and noise control. Participation basically
means sharing the decision-making power with the lower ranks of the Organization in an
appropriate manner.
Workers participation may be viewed as:
A device for developing social education for promoting solidarity among workers and for
Tapping human talents;
A means for achieving industrial peace and harmony which leads to higher productivity
and increased production;
Importance:
Workers get to see how their actions would contribute to the overall growth of the
company.
They tend to view the decisions as `their own and are more enthusiastic in their
implementation.
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They become more willing to take initiative and come out with cost-saving suggestions
and growth-oriented ideas.
It is now necessary that we review the steps that have been taken in India to specify the areas in
which, workers can participate in management, and the machinery that can be provided for
participation
The participation has to be at different levels of management:
(i)
(ii)
(iii)
The decision-making at these different levels would assume different patterns in regard to policy
formulation and execution.
Elements of Participation
The term participation has different meanings for different purposes in different situations.
McGregor is of the view that participation is one of the most misunderstood idea that has
emerged from the field of human relations. Keith Davis has defined the term participation as
the mental and emotional involvement of a person in a group situation which encourages him to
contribute to group goals and share responsibilities in them. This definition envisages three
important elements in participation. Firstly, it means mental and emotional involvement rather
than mere physical activity; secondly, participation must motivate a person to contribute to a
specific situation to invest his own resources, such as initiative, knowledge, creativity and
ingenuity in the objectives of the organization; and thirdly, it encourages people to share
responsibility for a decision or activity. Sharing of responsibility commits people to ensure the
success of the decision or activity.
Elements of Participation
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Firstly, it means mental and emotional involvement rather than mere physical activity;
Scope and ways of participation :One view is that workers or the trade unions should, as equal partners, sit with the management
and Make joint managerial decisions. The other view is that workers should only be given an
opportunity, through their representatives, to Influence managerial decisions at various levels. In
practice, the participation of workers can take place by one or all the methods listed below:
1. Board level participation
2. Ownership participation
3. Complete control
4. Staff or work councils
5. Joint councils and committees
6. Collective Bargaining
7. Job enlargement and enrichment
8. Suggestion schemes
9. Quality circles
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This
would
be
the
highest
form
of
industrial
democracy.
The workers representative on the Board can play a useful role in safeguarding the
interests of workers. He or she can serve as a guide and a control element.
He or she can prevail upon top management not to take measures that would be
unpopular with the employees.
He or she can guide the Board members on matters of investment in employee benefit
schemes like housing, and so forth.
Focus of workers representatives is different from the focus of the remaining members of
the Board. Communication and subsequently relations between the workers
representative and the workers Suffers after the former assumes directorship.
As a result, he or she may be less effective with the other members of the Board in
dealing with Employee matters.
Because of the differences in the cultural and educational backgrounds, and differences in
behavior and manners, such an employees representative may feel inferior to the other
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members, and he or she may feel suffocated. Hence, his or her role as a director may not
be satisfying for either the workers or the management
Such representatives of workers on the Board, places them in a minority. And the
decisions of the Board are arrived at on the basis of the majority vote
This involves making the workers share holders of the company by inducing them to buy
equity shares.
In many cases, advances and financial assistance in the form of easy repayment options
are extended to enable employees to buy equity shares. Examples of this method are
available in the manufacturing as well as the service sector.
Advantage: Makes the workers committed to the job and to the organization.
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Staff councils or works councils are bodies on which the representation is entirely of the
employees. There may be one council for the entire organization or a hierarchy of councils. The
employees of the respective sections elect the members of the councils. Such councils play a
varied role.
Their role ranges from seeking information on the managements intentions to a full share in
Decision-making. Such councils have not enjoyed too much of success because trade union
leaders fear the erosion of their power and prestige if such workers bodies were to prevail.
3. Participation through Joint Councils and Committees:
Joint councils are bodies comprising representatives of employers and employees. This method
sees a very loose form of participation, as these councils are mostly consultative bodies. Work
committees are a legal requirement in industrial establishments employing 100 or more workers.
Such committees discuss a wide range of topics connected to labour welfare. Examples of such
committees are welfare committee, safety committee, etc. Such committees have not proven to
be too effective in promoting industrial democracy, increasing productivity and reducing labour
unrest.
4. Participation through Collective Bargaining:
Through the process of CB, management and workers may reach collective agreement regarding
rules for the formulation and termination of the contract of employment, as well as conditions of
service in an establishment. Even though these agreements are not legally binding, they do have
some force. For CB to work, the workers and the employers representatives need to bargain in
the right spirit. But in practice, while bargaining, each party tries to take advantage of the other.
This process of CB cannot be called WPM in its strongest sense as in reality; CB is based on the
crude concept of exercising power for the benefit of one party. WPM, on the other hand, brings
both the parties together and develops appropriate mutual understanding and brings about a
mature responsible relationship.
5. Participation through Job Enlargement and Job Enrichment:
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Excessive job specialization that is seen as a by-product of mass production in industries, leads
to Boredom and associated problems in employees. Two methods of job designing job
enlargement and job enrichment are seen as methods of Addressing the problems.
Job enlargement means expanding the job content adding task elements horizontally.
Job enrichment means adding `motivators to the job to make it more rewarding. This is
WPM in that it offers freedom and scope to the workers to use their judgment. But this
form of participation is very basic as it provides only limited freedom to a worker
concerning the method of performing his/her job.
The worker has no say in other vital issues of concern to him issues such as job and
income Security, welfare schemes and other policy decisions.
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Employees cannot spend all their time in participation to the exclusion of all other work.
The attitude and outlook of the parties should be enlightened and impartial so that a free
and frank exchange of thoughts and opinions could be possible. Where a right kind of
attitude exists and proper atmosphere prevails the process of participation is greatly
stimulated.
Both parties should have a genuine faith in the system and in each other and be willing to
work together. The management must give the participating institution its right place in
the managerial organization of the undertaking and implementing the policies of the
undertaking. The labor, on the other hand, must also whole heartedly co-operate with the
management through its trade unions. The foremen and supervisory cadre must also lend
their full support so that the accepted policies could be implemented without any
resentment on either side.
Participation should be real. The issues related to increase in production and productivity,
evaluation of costs, development of personnel, and expansion of markets should also be
brought under the jurisdiction of the participating bodies. These bodies should meet
frequently and their decisions should be timely implemented and strictly adhered to.
Further,
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LIMITATIONS OF PARTICIPATION:
Technology and organizations today are so complex that specialized work-roles are
required.
This means employees will not be able to participate effectively in matters beyond their
Particular environment. Everybody need not want participation.
The role of trade unions in promoting participative management has been far from
satisfactory.
Employers are unwilling to share power with the workers representatives. Managers
consider
i) Welcome changes
j) Rapid industrialization
Demerits of Workers participation in management
a) Inactive trade union
b) Chances of suspicion
c) Employee may lead a careless life
d) Industrial anarchy
Methods for implementing Workers participation in management
a) Co-partnership/co-ownership
b) Workers committee
c) Joint management council
d) Suggestions
e) Board representation
CONCLUSION
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Potential appraisal is a holistic approach for studying wholesome qualities of an employee with a
given intellect, personality and character. The main objective of potential appraisal is to identify
the potential of a given employee to occupy higher positions in the organizational hierarchy and
undertake higher responsibilities.
Career development is essential for implementation of career plan. Career plan sets career path
for an employee, career development ensures that the employee is well developed before he
moves up the next higher ladder in the hierarchy.
On the basis of my study during the training period of six weeks at Wahid sandhar sugars ltd the
conclusion drawn relates to the positive aspect that there is participation of workers in
management of Wahid sandhar sugars limited understand the importance of workers and satisfies
all their need which in turn reduces the labour turnover and increases the profit and production of
the industry. It also create co operation between top management and workers. The management
system of the mill is very effective and efficient. All the workers of the mill perform their work
properly and participate in the management.
While studying and interpreting the need of workers participation. In management, the
conclusion is to be drawn relate to positive aspect. There should be workers participation as
workers are most dynamic factor which plays vital role. If workers participation is involved then
they should feel a part of management. If they are given some importance then the peaceful
administration will be more prevalent and will result in more productivity and increase in
profitability. So, workers must be given a chance to participate only than both management and
workers can co-operate.
BIBLIOGRAPHY
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Websites
www.google.com
www.scribd.com
www.appraisal-naukrihub.org
www.citeHR.com
www.HRfolks.com
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