STUDY OBJECTIVES :

The purpose of research is to discover answers to question through the application of scientific procedure. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad groupings: To understand , how human resource being managed by the organization. To study the maintenance of the records of their employees. To study if organization is using ICT for HR functions and database. To study the users perception about HRIS to maintain

Definition:
A Human Resources Information System, is a system that lets you keep track of all your employees and information about them. It is usually done in a database or, more often, in a series of inter-related databases Human Resources is an organizational function that deals with issues such as recruitment and selection, training, appraisal, compensation and performance management of the employee.

Information System :
A system, whether automated or manual, that comprises people, machines, and/or methods organized to collect, process, transmit, and disseminate data that represent user information

CHAPTER-1 ORGANSATION PROFILE

Amul: The origin

The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the Himalayas. Similar is the story of Amul which inspired 'Operation Flood' and heralded the 'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects, processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Further, as Ganga-ma carries the aspirations of generations for moksha, Amul too has become a symbol of the aspirations of millions of

farmers.Creating

pattern

of

liberation

and

self-reliance

for

every

farm

AMUL PRODUCTS

Symbol of Amul is a ring of four hands, which are coordinated each other .The actual meaning of this symbol is coordination of hand of different people by whom this union is now at top. India. Second hand is for the representatives of processors by whom the raw milk processed into different finished products. Third hand is for marketers without whom the product would have not be able to reached to the customer. Fourth hand is for customers without whom the organization could not carry on because they are the people who consume the product. The union of Amul would not have been the second biggest successful company in the world without the coordination of the above four hand. 6 First hand is for the farmers (producers), without whom the organization

would do not existed. Farmers are the inspiration of the AMUL the taste of

ORGANIZATION PROFILE
NAME : JANPURI-DISTRICT CO- OPERATIVE MILK PRODUCERS UNION LIMITED, ANAND. FORM : Co-operative sector under the co- operative Society Act. REG.OFFICE : Kaira District Co-operative Milk producers Union ltd, Anand -3881001. Gujarat, India. PROMOTERS (1) SHRI TRIBHUVANDAS PATEL (2) SHRI MORARJI DESAI (3) SHRI VALLABH BHAI PATEL (4) Dr. VARGHESE KURIEN BANKERS : 1. Kaira District Co-operative Bank. 2. Axis Bank. 3. State Bank of India. 4. Bank of Maharastra. 5. Corporation Bank. 6. Bank of Baroda. 7. Bank of Saurastra. AUDITORS SOCITIES MEMBERS OFFICE TIME PREMISES : Special Auditors (Milk), Milk Audit Office Anand. : 1113. : 6, 31,333. : 1O:00 A.M TO 06:00 P.M. : 49.55 Acres. 8

REGISTRATION : 14th December, 1946.

 THE AMUL PLANT AT ANAND FEATURING THE MILK SILOS

The Amul Meaning

AMUL means priceless in Sanskrit . A quality control expert in Anand suggested the brand name AMUL from the Sanskrit word Amoolya variants, all meaning priceless are found in several Indian languages. Amul products have been used in millions of home since 1946 . Amul butter Amul milk powder Amul ghee Amulspray Amul cheese Amul chocolates Amul Ice- cream

Today Amul is a symbol of many things . of high quality products sold at reasonable prices . F triumph of indigenous technology . Of the marketing savvy of a farmers organization . And proven model for dairy development . MOTTO, VISION, AND QUALITY POLICY MOTTO The main motto of AMUL is to help farmers. Farmers were the foundation stone of AMUL. The system works only for farmers and for consumers, not for profit. The main of AMUL is to provide quality products to the consumers at minimum cost. The goal of AMUL is to provide maximum profit in terms of money to the farmers. VISION Vision of AMUL is to provide and vanish the problems of farmers (milk producers). The AMUL apparition was to run the organization with co-operative of four main parties, the farmers, the representatives, the marketers, and the consumers. 10

QUALITY POLICY We the motivated and devoted work force of AMUL are committed to produce whole some and safe foods of excellent quality to remain market leaders through deployment of quality management system, state of art technology innovation and eco- friendly delightment of customer and betterment of milk producer

HISTORY In early 1940s a farmer in Kaira district, as elsewhere in India, derived his income almost entirely from seasonal crops. The income from milk was paltry and could not be depended upon. The main buyers were milk traders of Polson Ltd.-a privately owned company that enjoyed monopoly for supply of milk from Kaira to the Government Milk Scheme Bombay. The system leads to exploitation of poor and illiterate farmers by the private traders.

11

However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a cooperative union, instated of supplying milk to private traders. Sardar Patel sent the farmer to Shri Morarji Dasai in order to gain his Co-operation and help. Shri Dasai held a meeting at Samrkha village near Anand, on January 4, 1946. He advised the farmers to from a society for collection of the milk.These village societies would collect the milk themselves and also decided prices for that which would be profitable for them. The district union was also from to collect the milk from such village cooperative societies and to sell them. It was also resolved that the government should asked to buy milk from the union. However, the government did not seem to help farmer by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of government, farmer of Kaira district went on a milk strike. For 15 days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Finely he decided to fulfill the farmers demand. Thus their cooperative unions were forced at village and district level to collect and sell milk on a cooperative basis, without the intervention of government. Mr. Verghese Kurien had main interest in establishing union who was supported by Shri Tribhuvandas Patel who convinced farmers in forming the cooperative unions at thevillage level. The Kaira District Co-operative Milk Producers Union was thus established in Anand and was registered formally under section 10 of Bombay Act VII of 1925 on December 14, 1946. Since then farmers are selling all the milk in Anand through cooperative union. In 1955 it was commonly decided the sell milk under the brand name Amul At the initial stage only 250 liters of milk was collected everyday. But with the growing awareness of the benefits of the co-operative-ness the collection of milk increased. Today Amul collect 50, 00,000 liters of milk everyday. As the milk is perishable commodity it 12

became difficult to preserve milk for a longer period. Besides when the milk was to be collected from the far places there was a fear of spoiling of milk. To over come this problem the union thought to develop the chilling unit at various junctions, which would collect the milk and could chill so as preserve it a for a longer period. Thus, today Amul has more than 168 chilling centers in various villages. Milk is collected from almost 1097 societies. With the financial help from UNICEF, assistance from the government of New Zealand under the Colombo plan, of Rs. 50 million for factory to manufactory milk powder and butter. Dr. Rajendara Prasad, the president of India laid the foundation on November 50, 1954. Shri Pandit Jawaharlal Nehru, the prim minister of India declared it open at Amul dairy on November 20, 1955. A plant to manufacture balanced cattle feed was formally commissioned on October 31, 1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At the request of the government of India, a new dairy with a capacity to manufacture 40 tons of milk powder and 20 tons of butter a day was completed in 1963. This was meant to meet the requirement of Indias defense forces. The dairy was declared open by ShriMorarji Desai in April, 1965. in 1974, the Kaira Union setup a plant to manufacture high-protein weaning food, chocolate and malted food at Mogar, about 8 km south of Anand. In September, 1981, the second cattle feed plant at Kanjari were started. The succesion of the co-generation project on September 11, 1985, marked a milestone on the energy front when two gas turbine generators of 1.5 MW each based on natural gas, were commissioned. On October 31, 1992, Dr. V. Kurien chairman, National Dairy Development Board, laid the foundation of Kaira Unions third dairy with a processing capacity of 6.5 lakh liters of milk a day. Work on the third dairy and cheese plant at Khatraj with capacity for 20 Metric Ton of cheese per day, began in February, 1994. Also in 1994, Kaira Union put up bread spread plant at Mogar with the assistance from National Dairy Development Board.

13

THE AMUL BUTTER GIRL STORY

Amul Butter Girl: The moppet who put Amul on India's breakfast table. 50 years after it was first launched, Amul's sale figures have jumped from 1000 tones a year in 1966 to over 25,000 tones a year in 1997. No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses. Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife is out in the balcony drying clothes. From her second floor flat she can see her neighbors on the road. There are other people too. The crowd seems to be growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects the worst but can see no signs of an accident. It is her four-year-old girl who draws her attention to the hoarding that has come up overnight. Round eyed, chubby cheeked, winking at you, from strategically placed hoardings. She is the Amul moppet everyone loves to love

14

For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much so that the ads are now ready to enter the Guinness Book of World Records for being the longest running campaign ever. The ultimate compliment to the butter came when a British company launched butter and called it Utterly Butterly. It all began in 1966 when Sylvester daCunha, then the managing director of the advertising agency, ASP, clinched the account for Amul butter. The butter, which had been launched in 1945, had a staid, boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads. The Amul girl who lends herself so completely to Amul butter, created as a rival to the Polson butter girl. This one was, village belle, clothed in a tantalizing choli all but covering her upper regions. "Eustace Fernandez (the art director) and I decided that we needed a girl who would worm her way into a housewife's heart. And who better than a little girl?" says Sylvester daCunha. And so it came about that the famous Amul moppet was born.

OBJECTIVES OF THE UNIT

Investing in appropriate technology. Working collaborators with the business partners. Quality products to customers. Continuous training and retraining of the employees to create culture that value quality and food safety as a core pillar of the business. To control the wastage and save time and efforts. To work under the principals of Kiazen, Haccp and 5 S.

15

ORGANISATION STRUCTURE OF AMUL Board of Director

CHAIRMAN MANAGING CHAIRMAN GENERAL MANAGER

ASSISTANT GENERAL MANAGER

MANAGER DEPUTY MANAGER

ASSISTANT MANAGER SENIOR EXECUTIVE

SENIOR OFFICER 16

SENIOR ASSITANT WORKERS

Grade ( Ato E) .

17

AMUL PLANT

INTRODUCTION MARKETING MANAGEMENT

18

Every organization that produces one or more products requires marketing of the products sell them in the market. It is only through marketing that people know about a company's products. Hence marketing is considered as a key activity of organization. The organization requires sound marketing structure to carry on its marketing activities. However the concept of marketing is not confined only to selling of goods and services to customers. Instead the company tries to create and maintain the customer base through marketing. The marketing thus focus on the customer needs and wants in the market and emphasis on producing and selling only those goods, which have higher demand in market. The company mainly markets its products through advertising. Marketing uses various sales promotional tools to boost the sales of the company. The marketing department thus should have sound distribution channel and promotional system to make the marketing activities sound.

Concept
The marketing concept holds the key to achieving its organizational goals consists of the company being more effective than competitors in creating , delivering and communicating customer value to its chosen target markets . marketing starts with the determination of consumer wants and ends with the satisfaction of those wants. The concept says that any business should be organization around the marketing function, aningticipating and stimulating and meeting customers need . The marketing concept rests on four pillars and they Are 1. Target market 2. Customer needs 3. Integrated marketing 4. Profitability AMUL has also its own marketing concept . AMUL targets all type of customers like babies , children , young customers and old age customers etc . Amul try best for satisfying needs by providing good quality products. 19

Marketing Mix
The marketing mix , which is set of four elements or four P of marketing are as follow 1. Product 2. Price 3. Place 4. Promotion Same as four P there is also four C of marketing. 1. Customer solution 2. Cost 3. Convenience 4. Communication PRODUCT : A product is anything that satisfies a needs or wants and can be offered to the market for exchange. A product can be a goods , services without product there is no marketing . This includes product variety ,product design , packaging , quality , brand name, size etc. AMUL produces and sell i.e. Milk , It has to plan Its product very carefully so that the consumer gets only good quality products. There are various products marketed by GCMMF

List of products marketed Bread spread

Amul butter Amul Lite Low bread spread Amul cooking butter

Cheese range
20

Amul Malai panner ( cottage cheese) Amul pasteurized processed cheese Amul pizza cheese Amul Emmiatial cheese

UHI Milk Range

Amul shakti 3% fat milk Amul Taaza 1.5% fat milk Amul Gold 4.5% fat milk Amul fresh Toned milk Amul snowcap soft milk.

Pure ghee
Amul pure ghee Amul cow ghee Sagar pure ghee

Infant milk Range

Amul infant milk formula (0.6 millions) Amul infant milk formular Amul spray infant milk food Milk powder Amul full cream milk powder .

Curd products
Yogi sweetened flavored dahi Amul Lassee Amul masti Dahi

21

 Price :The prices of products of Amul are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of Amul products. The price of the products of Amul are also decided by the Gcmmf .The Gcmmf conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the price of Amul products . However , the price is inclusive of several elements like: Cost of milk Labour cost Processing cost Packaging cost Advertising cost Transportation cost Sales promotion cost Taxes etc.

The GCMMF considers all this cost . aspects and set them up in pricing structure to decide the selling price of milk and milk products.

Promotion
IT includes a variety of techniques including advertisement , sale promotion, public relations and personal selling that are used to communicate with customers and potential customers . Television is the best media for advertising in the local areas . Hoardings designed on the creative basis attract the customers more .

Place

22

Place refers to marketing activities that make products available to consumers at the right time in a convenient location . place refers as distribution Channels .IT is the process of moving products from the producer the consumer. Amul has developed federation and Amul parlours located in several parts of country .Amul have managed to create more than 2300. Amul have identified certain potential locations such as Railway , Airports , universities , and shopping malls . The GCMMF handles the workers relating to Managing of stocks and distributors to in the country. Thus GCMMF looks offer the disbursement of products to the various Marketing channels.

Market segmentation : Any commodity has not a single Market. But it has a composite Market which can be divided on the basis of age, gender , preferences etc . The process of dividing a market into disticnt groups of buyers is called market segmentation . Market segmentation may be defined as a process of dividing a Market into different sub- markets on the basis of some definite criteria . At Amul, since marketing activities are handle by the GCMMF , market segmentation is also decided by Gcmmf . Generally , Milk products like Butter , cheese are also popular in the all age group. Hence they are segments at the national level. Milk products like chocolates and milk powder are segmented on the basis of age . The GCMMF conduct the market survey to know demand for the products of Amul in the Market and then accordingly determines the market segments, defines the target market .

MARKETING &GCMMF
GCMMF is Indias largest exporter of dairy products . It has been awarded as a Trading House status . GCMMF has received the APEDA award from the government of India for Excellence in dairy products Exports for the last 11 years . Gcmmf is Indias largest food products Marketing Organization . It is a state level apex body of milk co23

operatives in the Gujarat which aims to provide remunerative returns to farmers and also serve the interest of consumers by providing quality products which are good value for money

The major export products :- The products of Amul is being exported in the 40
countries of the world . Many of the products are now available in the U.S.A , Gulf countries and Singapore. Amul products are being exported to the Singapore since last three decades . undoubtedly , Amul is the preferred taste of Indians in the Gulf countries.

Consumer packs: Amul pure Ghee Amul Butter Amul Shrikhand Amul Mithaee Gulabjamun Nutramul Brown Beverages Amul cheese Amul malai panner Amul Gold Milk Amul UHT Milk ( Long Life) Amul Taaza Double Toned Milk Amul Life slim and trim Milk Amul fresh cream

BULK PACKS
Amul Skimmed Milk powder Amul Full Cream Milk powder The following Amul products are available in the Gulf Markets : Amul / Sagar pure Ghee 24

 Amul cheese Tin and Slices Amul Shrikhand Amul Butter Amul Gold milk Amul cool chocolate Milk.

SWOT ANALYSIS
STRENGTH
Goodwill of company Financially a very strong company Effective well designed and developed production and marketing network. Superior quality and service to provide maximum benefits to customers. The family environment in the company. Dedicated work force. Continuous growth. Market share of the company. Tax benefit to the company.

WEAKNESSES
No uniform of the officers and of the workers too. Storage capacity of the company is limited. Land is not properly utilized. Raw material is wasted at the time of unloading. 25

 Unit is situated far away from main plant. There is no board of AMUL at the entry gate.

26

OPPORTUNITY
There can be minimization of waste. There must be more efficient utilization of the raw material. More and more incentives should be given to workers to motivate them which help in increasing the employee moral. There can be use of the foreign technologies for efficient utilization of raw material so that the production of a biscuit can be increased. Lang can be used more efficiently.

THREATS
New entrants in the business Threats of substitute products. Availability of the other brands. Rivalry among the competitions. Taste and preference of customers.

27

CHAPTER-2
STUDY ON HUMAN RESOURCE INFORMATION SYSTEM OF

28

HUMAN RESOURCE INFORMATION SYSTEM

Human Resource Information System (HRIS) is a systematic way of storing data and information for each individual employee to aid planning, decision making, and submitting of return and reports to the external agencies . It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field. It can be used to maintain details such as employee profiles, absence reports, salary administration and various kinds of reports.

INTRODUCTION :
An information system is an inter-related set of procedures and processes to provide information for decisions. Information is data that have been processed so that they are meaningful. It adds to the representation of an idea. It corrects and confirms previous information. It tells us something which we did not know. Many organisations have computer-assisted information systems. Thus HRIS is a system that enables storing of information of Human Resource in every aspect such as Personal, Academic, Qualification, Family, Medical, Career and Performance Evaluation, Training & Development & Wage and Salary of individuals. Unlike manual systems the HRIS enables availability of all such information in a single screen. Reports on various parameters can be generated with ease. Moreover reliability of such records is assured. An information system especially developed for human resource management is referred to as HRIS a human resource information system.

29

Human resource management, when it doesnt include the human resource planning function, requires only a basic HRIS. If this basic HRIS is computer-supported, it is likely to include transition processing system or management information system.

An information system provides for the accumulation by gathering, processing by deleting extraneous information, deciding among divergent information and putting the information in a logical arrangement that promotes its understanding.

Finally, the information is stored in a readily accessible configuration.

HR Information System Includes : This system include the employee name and contact information and all or some of the following: Department Job Title Grade Salary Salary History Position History Employee details (Personal & Professional) Employee Posting information on appointment /transfer Employee promotion/ appointment information Employee Service verification details Employee Leave Information including(Leave available , leave availed,) Employee confidential report information 30

Employee Training information

Needs Of HR Information System

Human resource manager requires considerable amount of data for planning and control of human resources and for this there is a strong need of a sound information system. Efficiently storing each employee information and data for reference- personal data management, pay roll accounting, benefits management and planning. Enabling informed decision making in day-to-day personnel issues, planning, budgeting, implementing and monitoring Human Resource function. Facilitating decision making in areas like promotion, transfer, nomination, settling employees provident funds, retirement, gratuity, LTC, and earned leave compensation Cutting costs. Improving accuracy

Advantages Of HR Information System

Reduction in the amount and cost of stored human resource data. Availability of timely and accurate information about human assets. Developing of performance standards for the human resource division. More meaningful career planning and counselling

EFFECTIVENESS OF HRIS 31

The key to the effective planning of manpower and improvement of people productivity is an effective HRIS. However, in order to be effective an information system must take into account the following : Adequacy of information: Too much or too little information, both lead to defective decision-making. Therefore, there must be some understanding regarding what information and in how much detail and covering what periods should be maintained. Specificity: Even where it is not possible to quantify the information, the information should be made as specific as possible. Relevance: Information is to be managed in the light of the requirements of the decision makers. Therefore, HRIS focus on the needs of the decision-makers and stakeholders rather than on what is interesting or easily available or palatable to the people. The system, therefore, must also have the built in capability for deletion and updating of data. Comprehensiveness: The information should be complete from the point of view of the decision-maker giving details of who, what, how, when, where and why . Reliability: Since the information is going to be the basis of critical decisions, it must satisfy the requirements of validity and reliability. Moreover, to ensure effectiveness, not only should the information provided be relevant and reliable but the delivery system should also be the most satisfying and cost effective. A wealth of information but not accessible when needed or available at an inhibiting personal cost in terms of energy and time, is of hardly any use.

IT SUPPORTED HRIS
In todays enterprises, HRIS are typically Information Technology (IT) supported systems. This is not to say that without IT HRIS cannot be introduced. But information technology allows much greater effectiveness of HRIS than a manual system. Some of the deficiencies of the Manual Systems which an IT based HRIS overcomes to a considerable extent 32

Convenience: In IT enabled systems, data entry, update and retrieval are all significantly faster. Redundant data may be easily replaced. Integration: A computerized system can greatly reduce fragmentation and duplication of data. All data can be stored in a single system to enable retrieval of complete picture of each employee or of each defined parameter in a desired number of permutation and combinations. Moreover, depending on the requirement, reports can be generated in different ways that provide an accurate picture. Verification of data and error rectification are also relatively easy in computerized systems. Multi-user benefit Different people can access the data simultaneously, which facilitates quick dissemination across geographical and structural boundaries and facilitates faster decision-making. Moreover, on-line data entry is possible that leads to automatic updating of data resulting into better informed decisions. However, to obtain these advantages, it is important that the knowledge and expertise is available to the organization, internally or from outside, to develop and tailor- make the system to suit the organizations unique needs.

33

HR PLANNING HR PLANNING AND ANALYSIS AND ANALYSIS EQUAL EQUAL EMPLOYMENT EMPLOYMENT

STAFFING STAFFING

EMPLOYEES AND EMPLOYEES AND LABOUR LABOUR RELATIONS RELATIONS

HRIS HRIS COMPENSATIONS COMPENSATIONS AND BENEFIT AND BENEFIT

HEALTH AND HEALTH AND SECURITY SECURITY

DATABASE DATABASE

A CASE STUDY OF HUMAN RESOURCE INFORMATION SYSTEM AT AMUL

34

Human resource information system , that enables the organization in collecting , storing , maintaining ,retrieving and validating data needed about its human resource . HR data are wide in their variety, and include job history (transfers, promotions, etc.),current and historical pay details, inventories of skills and competencies, education and training records, performance assessment details, absence, lateness, accident ,medical and disciplinary records, warning and suspensions, holiday entitlements, pensions data and termination records. An HRIS normally provides an electronic database for the storage and retrieval of this data which is, at least potentially, available to anyone who may want to access it. The important issue however, is- how this IT system is actually used in carrying out the HR tasks. ERP is an information system to drive the business. It enables the organization to take systematic decision in the area of planning , execution and control based on relevant and current information . HRIS - Vendors Automatic Data Processing Inc. SAP AG Restrac Web Hire ERP Oracle/PeopleSoft Human Resource Microsystems Business Computer Systems Lawson Software

This are the vendors who provides the different types of system to different organisation . From the above various systems the AMUL uses the system named ERP ORACLE Enterprise resource planning . The areas of application of HRIS as follow. 1. Training management 2. Turnover analysis 35

3. Succession planning 4. Attendance reporting 5. Accident reporting . AMUL uses the system centrally in the organisation and over all the plants of the Amul which is located in various area such as Mogar - chocolate plant Khatraj plant cheese plant Kanjari plant cattle feed plant .

The system operates in AMUL for different manner , and with the help of this system different records are maintained with the help of ERP ORACLE . Types of record maintained through HRIS . Personnel administration - It will encompass information about each employee, such as name address, personal details etc. Salary administration - Salary review procedure are important function of HRM, a good HRIS system must be able to perform what if analysis and present the reports Of changes. Leave and absence recording Essentially be able to provide comprehensive method of controlling leave/absences. Skill inventory - It is also used to store record of acquired skills and monitor the skill database both employee and organizational level. Performance appraisal The system should record individual employee performance, appraisal data, such as due date of appraisal, scores etc.

36

Human resource planning HRIS should record details of the organizational requirements in terms of positions

Recruitment Record details of recruitment activities such as cost and method of recruitment and time to fill the position etc.

Career planning - System must be able to provide with succession plans reports to identify which employee have been earmarked for which position.

Collective bargaining A computer terminal can be positioned in the conference room linked to database. This will expedite negotiations by readily providing up to date data based on facts and figures and not feelings and fictions.

Database

In database the system records the information of the previous

applicant , who is been not selected for the job this information is useful to the organization for next recruitment procedure for inviting for job in this way the cost is saved by the organization because there is no need of giving advertisement for next recruitment. Service records In service records all the details regarding promotion of an employee , education detail of employees , personal details, in which it records the employee No , employee working in which location etc . Employee summary In employee summary the information regarding employee is available according to grade wise , designation wise , skilled wise , and the total information of manpower is available. Training The training information of an each employee is being available through this system because it records that when the employees is being given training and when will be the next training is to be given to the employees . Time keeping : time keeping in Amul is decentralized , plant wise but with the help of ERP system the record of absence and present record is can be available at Amuls head office Anand. 37

Recruitment : this system is not used in any steps of recruitment process of the Amul .

In AMUL , the HRIS is not used for the recruitment process as it is done manually in the organization the recruitment of the is carried in the following way Vacancy in department Advertisement Receiving of application Short listing of applicant There is no role of HRIS ( ERP oracle ) in the recruitment process , after the short listing of the application the application which are selected is called for an personal interview with the general manager of the AMUL . After employee such as a) Personal details b) Previous organization details c) Training details d) Service records e) Joining details f) Retirement details 38 the candidate is selected for the particular job , the role of HRIS starts by keeping different types of records of an

HRIS is also useful in the turnover analysis of the Amul , it helps the organization to know the number of time employees left the organization .

HRIS , is useful in keeping the Accident details of the employees , on the basis of this reports employees are injured due accident are been given medical facility and financial help .

The time keeping process of Amul is decentralized , in the various plants of Amul 1. Mogar plant 2. Khatraj plant 3. Anand plant 4. Kanjari plant

if any information regarding any employee absence and present of other plant is needed by the central head office at Anand , that it is available with the help of ERP ORACLE ,

39

Users perception

After interviewing the fifteen respondents from the organization I have come to know that the organization is using the software named ERP ORACLE in HRIS and by observing and interviewing the user of the system the following data is gathered . The users of the system is fully satisfied with the present system ERP ORACLE The AMUL is using this system since last thirteen years and they are trying to bring change by implementing new system named progress . With help of HRIS the organization gets the following benefits such as
1. Time saving 2. Cost saving 3. Effective work

SAP which is under the

HRIS helps to supports the following HR task of the Amul 40

1. HR development and workplace training 2. Communication 3. Career management(for employees) 4. Decision making The HRIS system of Amul is fully secured , so their no threat of linking of any kind of data .

CHAPTER-3

41

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Marketing research plays an important role in the process of marketing. Starting with market component of the total marketing talks. It helps the firm to acquire a better understanding of the consumers, the competition and the marketing environment.

DEFINITION
Marketing research is a systematic gathering, recording and analysis marketing problem to facilitate decision making. - Coundiff & Still. Marketing research is a systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. - Phillip Kotler .

MAIN STEPS INVOLVED IN MARKETING RESEARCH

42

Defining the Marketing Problem to be tackled and identifying the market research problem involved in the task (1) Define the problem and its objectives. (2) Identify the problem. (3) Determine the information needed. (4) Determine the sources of information. (5) Decide research methods. (6) Tabulate, Analyze and interpret the data. (7) Prepare research report. (8) Follow-up the study.

Define the problem and its objectives :This includes an effective job in planning and designing a research project that will provide the needed information. It also includes the establishment of a general framework of major marketing elements such as the industry elements, competitive elements, marketing elements and company elements. (2) Identify the problem :- Identifying the problem involves getting acquainted with the company, its business, its products and market environment, advertising by means of library consultation and extensive interviewing of companys officials. (3) Determining the specific Information needed :- In general the producer, the manufacturer, the wholesaler and the retailer try to find out four things namely :(1) What to sell (2) When to sell (3) Where to sell (4) How to sell (4) Determine the sources of information :-

43

(a) Primary Data :- Primary datas are those which are gathered specially for the project at hand, directly e.g. through questionnaires & interviews. Primary data sources include company salesman, middleman, consumers, buyers, trade associations executives & other businessman & even competitors. (b) Secondary Data :- These are generally published sources, which have been collected originally for some other purpose. Source are internal company records, government publication, reports & publication, reports & journals, trade, professional and business associations publications & reports.

(4) Decide Research methods for collecting data :- If it is found that the secondary data cannot be of much use, collection of primary data become necessary. Three widely used methods of gathering primary data are A) Survey B) Observation C) Experimentation A) Survey Method :- In this method, information gathered directly from individual respondents, either through personal interviews or through mail questionnaires or telephone interviews. B) Observation Method :- The research data are gathered through observing and recording their actions in a marketing situation. This technique is highly accurate. It is rather an expensive technique. C) Experimental Method :- This method involves carrying out a small scale trial solution to a problem, while at the same time, attempting to control all factors relevant to the problem. The main assumption here is that the test conditions are essentially the same 44

as those that will be encountered later when conclusions derived from the experiment are applied to a broader marketing area. D) The Panel Research :- In this technique the same group of respondents is contacted for more then one occasion; and the information obtained to find out if there has been any in their taste demand or they want any special quality, color, size, packing in the product. a) Preparation of questionnaire b) Presetting of questionnaire c) Planning of the sample

(5) Tabulate, Analysis and Interpret the Data :- The report must give/contain the following information:a) The title of research b) The name of the organization for which it has been Conducted c) The objectives of research d) The methodology used e) Organization and the planning of the report f) A table of contents along with charts and diagrams used in the reports g) The main report containing the findings h) Conclusion arrived at end recommendations suggested i) Appendices (containing questionnaire / forms used sample design, instructions.) (6) Follow-up the study :- The researchers, in the last stage, should follow up this study to find if his recommendation are being implemented and if not, why

45

Marketing Research
Marketing Research is the systematic design collection , analysis and reporting of
data and findings relevant to a specific marketing situation of the company . Amul performs the marketing research mainly to launch a new products in the market. The purpose is of checking the validity of the new products in the market for the local new . Amul conducts the market survey by appointing business administration students for conducting the market survey . Extending policy of the new producted launched , Amul has recently launched the energy drink named STAMINA specially targeted to the people who are playing sports daily .

46

47

PRODUCTION &OPERATION DEPARTMENT

INTRODUCTION Production management is refers to the process of correction of past mistakes catching up with the new techniques, taking up steps with developing techniques and taking measures for the production of goods at competitive cost. The basic philosophy of production management is to launch a frontal attack on direct costs and effective use the availability manpower weaving new techniques in to the whole to keep the production unit efficient and developing production management is the process of planning, organizing, directing and controlling. The Amul is started with only 250 liters of milk per day. But now Amul collect average 9 lakhs of liters milk per day. At the initial stage, Amul has not any problem regarding milk, but in the winter season there was excess supply of milk. So, Amul has to sell out that excess milk at the low price or Amul has to face loss. To removing these problems Amul take decision to set up a plant to process the surplus milk butter and milk powder. Today the Amul has three plants Known as Amul 1, 2 & 3 all three plant work 24 hours a day continuously. The all manufacturing process is done automatically. The production is done in the special machines. These machines and the technology are import-id from the TRFTA PEAK Company. There is also facility of chilling of milk, so that the milk remains usable. Today three plant of AMUL perform different function. 1. AMUL 1 presently it is use as a go down for storing raw materials. 2. AMUL 2 today in this unit, the production process of Ghee and packings are running. 48

3. AMUL 3 This unit is producing AMUL butter, AMUL spray powder, and flavored milk.

Organization Structure Managing Director General Manager

Dairy Plant Manager (Production) Manager (Eng.) Dy. Manager (Eng.) A.M. (Eng.) Workers Officer

Asstt. G. M. A.M. (Eng.) Officers

Technicians Eng. Workers

Officers Technicians Eng. Worker

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Milk Collection Cycle The success of each and every dairy industry is the getting the milk from the farmers and making that milk in use as soon as possible before that milk get spoiled because the milk is the perishable product. For the smooth running the business of dairy industry the industry must concentrate on the milk collection cycle. Amul dairy is very conscious about the milk collection cycle because the base of the success of the Amul is milk collection cycle.

Production capacity of Amul

Butter Powder plant Powder plant Flavour milk 50 to 60 Tones 70 tones 60 tones 40000 bottles

About Machinery In AMUL 3 production of powder, Butter and Milk are being done continuously. These productions are done by latest machineries equipped with computer system and it is handled by one technicians. The Milk pasteurizer machines belong to Alfa level company of Pune Powder plant machineries belong to L & T Larson and Turbo company of India

50

Butter production machineries belong to S.G.company of switrzland and other Butter manufacturing production machineries belong to Simon Feres com.of France

Amul 2 Raw Reception Dock

Reception dock is the very first department of any dairy where milk is unloaded and simultaneously tested . Amul-2 has a well designed RMRD , situated in the west wing of dairy . Raw milk at Amul- 2 is received mainly through cans . There are 2 reception lines for unloading milk cans in Amul 2 . About 60 % of reception is of buffalo milk and remaining 40% is cow milk .

Flow chart of Amul-2 process

Unloading of cans Chain conveyer Removal of cans lid Physically inception of milk Transfer of milk to dump tank ( 12-13cans/ min) Filter

51

Weighing Raw milk collection tank Amul -3 Pasteurization ( At 80 C for 15 seconds) Standardization Processed milk silo

Sent to different production section section

milk pouch packing

Butter section
The utterly Butterly Delicious butter of the Amul is one of the most popular product of Amul dairy along with the famous butter girl . The butter section is located in Amul -3 which manufactures Table Butter , white butter and renduced salt butter . The section is completely computer controlled and is equipped with most modern imported equipments .Butter section very important as it handles fat, which is the costliest constituent . The cream obtained from process section is fully utilized for butter making . Amul white and table Butter is exported to USA and various Middle Eastern countries .

OPERATION
The cream for manufacturing Butter is receiving from Amul-3 process section while standardization of milk . In Amul -3 the milk fat will be separated at above 60 Celsius , the centrifugal separators inline with Milk pasteurizer separate this as cream . The cream thus separated is pasteurized and then pumped to the cream buffer tanks and to cream silo .After ageing at 8 Celsius for 24 hrs , cream is pumped to cream chilling unit in the butter 52

section . there the temperature of cream is adjusted to the required churning temperature of continuous Butter Making Machine.

Flow chart of Butter processing

Raw cream Pasteurizer (90 to 95 C ) Cooling (8-9 C) Ageing(8-9 C/ 24hours) Cream Balance tank PHE ( for temperature adjustment at 6-8 C)

Churning (speed 500- 1200rpm) Butter Grains Washing with butter milk Working ( 30- 70rpm ) 2nd washing with butter milk silo working butter Milk

white butter addition 15 kg packing

salt (@2%) &color

Blending

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( 25-30 rpm &vacuum ) export ghee butter section packaging lines 9.1g blister pack (Army) 100g refill pack 100g refill pack 400tin Air pack (2gm)

Packing materials used :

Delocalize market Double laminated is used for export

Tin used for 400g Army pack Card board box- used for tertiary packing 3ply for 9.1 g weight package 5ply for normal & export

Powder plant
F-35 plant is situated in Amul -2 near to the railway siding . The plant is a single stage drying plant having a capacity of 35 TDP. The plant is not in regular use and mainly used for the manufacturing of cheese whey powder . F-35 CONDENSING PLANT DETAILS Make : SSP ,Faridabad Type : Falling film vertical tube type No of Pre heater : 5 No of calendria : 7 No of vapor separators : 5 54

Process Flow chart ( F-35)

Cheese Whey & Ingredients Balance tank

preHeater

low heat pasteurizer

high heat pasteurizer ccp hot well

calendria 1st ( 77 c) calendria 2A &2B ( 72 c) calendria 3 ( 70 c) calendria 4A & 4B calendria 5 ( 58 c)

finisher Atmospheric air Concentrate tank Air filter Atomizer ( nozzle) 55

(212 -217 c )

Exhaust air Spray drier Cyclones Bulk packing ( 25 kg ) bulk packing

OPERATION DETAIL PRODUCT USE AND CHARACTERISTICS

MILK One of the most versatile food consumed by us. All children start their with mothers milk and continue to use it in one other throughout their life. It is the secretion from the

56

mammary glands of a lactating mammal. The white fluid, know as milk, is made up of milk fat and other milk solids. AMUL ICE CREAM Amul ice cream is made up from fresh milk. Ice cream are rich in protein, calcium, dairy cream and vitamins. Ice cream are a complete food, easy to digest and full of energy. MANUFACTURING PROCESS FOR ICE CREAM Amul ice cream is made up from milk, milk products, sugar, stabilizers and emulsifiers. Composition

Milk Fat 13.5% to 14.5% Total Solids 40% to 41% Sugar 15% Approx. Acidity 0.17% to 0.19% Protein 3.9% to 4.1%

Food Energy Value Calories per 100 ml -196.7 kcal Flavors VANILA , Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-DewMelon, Tutee Fruity, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Choc chips, Rajbhog and Cashew Break.

Packaging
50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice candies, Cones and Kulfies . 57

MANUFACTURING PROCESS FOR MILK

MILK PROCUREMENT Total milk procurement by our Member Unions during the year 2006-07 averaged 67.25 lakh kilograms (6.7 million kg) per day, representing a growth of 4.5 per cent over 64.38 lakh kilograms (6.4 million kg) per day achieved during 2005-06. The highest procurement as usual was recorded during January 2007 at 84.09 lakh kilograms (8.4 million kg) per day. This increase in milk procurement is very impressive, keeping in mind the massive loss suffered by our farmers due to floods during the monsoon season, specially in Surat district.

MILK PROCESSING
1 Homogenization: - Milk must then be homogenized. Without homogenization, the milk fat would separate from the milk and rise to the top. Milk fat is what gives milk its rich and creamy taste. In this process Milk is transferred to a piece of equipment called a homogenizer. In this machine the milk fat is forced, under high pressure through tiny holes.

2 . Pasteurization:- Pasteurization is the process that purifies milk and helps it stay fresher, longer. Milk is pasteurized by heating it to 72C for 16 seconds then quickly cooling it to 4C. Pasteurization is named after Louis Pasteur, the famous scientist.

58

.Adding Vitamins; - Before homogenization, vitamin D is added to all milk.

Vitamin D combined with the calcium that naturally exists in milk help gives us strong bones and teeth. Dairies also add Vitamin A to skim, 1% and 2% milk. Vitamin A is good for our eyesight.

4.Packaging Milk: - Milk is now ready to be packaged. Milk is pumped through automatic filling machines direct into bags, cartons and jugs. The machines are carefully sanitized and packages are filled and sealed without human hands. During the entire time that milk is at the dairy, it is kept at 1 - 2C. This prevents the development of extra bacteria and keeps the milk its freshest.

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5.Storing:- Milk is delivered to grocery stores, convenience stores and restaurants in refrigerated trucks that keep milk cooled to 1 - 4C. The stores take their milk and immediately place it in their refrigerated storage area. Because fresh milk is so important to our diets, dairies, and our health.

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Supply chain management of AMUL

SUPPLIERS

GCMMFS SUPPLY CHAIN

Processing : After the union received the milk, it was tested and if it was found to be of good quality, it was sent for processing. If the milk was found to have high acidity, it was used to make buttermilk. Raw milk was sent through a filter and clarifier and was pasteurized. For pasteurization, milk was treated at high temperatures for a specified. This helped in destroying the pathogens and in maintaining the quality. After pasteurization, the milk was sent through a separation machine. Here the cream was separated and skimmed milk was obtained. According to the demand, the unions packed the milk after it was pasteurized and sent for distribution. The cream was marketed as Amul Fresh cream .

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Distribution GCMMF coordinated with various unions to get a regular supply of milk and dairy products. The processed milk and dairy products were procured from district dairy unions and distributed through third party distributors. To ensure quality and timely deliveries, GCMMF and the district unions had several mechanisms in place. The VCS constantly monitored the deliveries of the milk collected and ensured that the milk was picked up on time. The unions monitored the supplies of milk and the distribution of finished products. WARE HOUSING: Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operation .

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MILK PROCESSING BLOCK

63

SUPPLY CHAIN EXPLANATION WITH DIAGRAME

DEFINITION OF VALUE CHAIN

As per the above diagram there are the first components is raw material: In our company the raw materials are milk, powder for ice creams manufacturing, different types of flavors for ice creams, packaging material, sugar etc. required by the company for manufacturing. In this step GCMMF play a very important role it procures milk from villages and for this it develops three types of system and that is societies at villge level, district level and state level.

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Second component is suppliers are the farmers and other raw material for manufacturing the ice creams are provided by MAHAN PROTEINS LTD., IDEAL ICE CREAMS and BHARAT ESSENCE. This component is manufacturing process which is describe above. In milk process there are mainly five steps are required and i.e. homogenization, pasteurization, adding vitamins, packaging, storing. In this process there are also requirement of warehouse for storing the product which already made and also for the raw material. The next step is the distribution channel in which GCMMF plays very important role in that. It handle all the marketing for AMUL products. GCMMF's products were marketed through 50 sales offices located across India to 4,000 stockists. These stockists supplied the products to more than 500,000 retail outlets.

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The next step is the customers in this category there are restaurants includes. Also the retail shops and whole sellers are included. The last step is the consumer in which the actual hose hold are included in this category.

HUMAN RESOURCE DEPARTMENT

Introduction : According to SCOOT CLOTHIER AND SPRIGGEL Human resource management as the branch of management which is responsible on a staff basis for concentrating on those aspects of relationship of management to employees and employees to employees and with the development of the individual and the group. The objective is to attain maximum individual between employer and employees and effective moulding of human resources as contrasted with physical resources.

Personal (Human resource) management plays a very important role for any organization. The firm having all types of resources like machines, materials, money, information etc. will not be success in business without effective manpower. Human capital is the greatest assets of business enterprise and manpower management is the most important and crucial job because the managing group is the heart of the company.

Human resource department plays most important role in establishing good relation and harmony among all. TOTAL EMPLOYEES IN AMUL

66

AUTHORITY

NO. OF EMPLOYEES/WORKERS

Manager Assistant Officers Workers Total

48 101 180 846 1175

NO.OF SHIFT:

1st shift time: 08:30 A.M to 04:30 P.M 2nd shift time: 04:30 P.M to 12:30 A.M 3rd shift time: 12:30 A.M to 08:30 A.M

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MAJOR FUNCTION OF HUMAN RESOURCE DEPATMENT 1. RECRUITMENT AND SELECTION

2. TRAINING AND DEVLOPMEN 3. PERFORMANCE APPRAISAL 4. SALARY AND WAGE ADMINISTION 5. EMPLOYEE TURNOVER 6. COMPENSATION 7. INDUSTRIAL RELATION 8. FACTORE ACT 9. INDUSTRIAL DISPUTE ACT 10. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Organization structure Managing Director

68

General Manager

Assistant General Manager

Officers

Clerk Peons RECRUITMENT AND SELECTION RECRUITMENT:

There are two types of Recruitment sources followed by Amul: EXTERNAL SOURCE INTERNAL SOURCES

INTERNAL SOURCES: Internal sources include personnel already on the payroll of the organization. Present Permanent Employees. Employee Referrals Former Employee

EXTERNAL SOURCES : These sources lie outside the organization In Amul they consider following sources for recruitment: 69

Campus Interview Unsolicited Application Application Blank Placement Agencies

RECRUTMENT POLICY OF AMUL

Entry level qualification :Below officers cadres :-

1. S.S.C / H,S.C Attendant Operator Dairy (AOD) G Gr.Worker

Taken as apprentice under trade apprentice Act 1961 2/3 yrs Apprenticeship, then based on their appraisal report, selected as tempory worker. After total 5 yrs of work ,may be selected as G-Grade Worker.]

2. Professional Qualification E/F Grade Worker (Boiler Attendant)

3. BA / B.COM / M.COM / M.A (general) MSW / MRM /MRS M.E_Biz of

Gujarat Vidyapeeth and C Grade Worker similar non University Institutions.

4. B.Sc / M.Sc / Diploma Engineers B Grade Workers. Apprenticesship

Labassistant for 1yr 3 months for B.SC & M.SC ;1yr for Diploma Engg.

70

Then 2/3 yrs as trainee technician,than based on appraisal Appointed as Technician B Grade.

5. BBA Management Trainee for 1yrs .Jr. Assistant (a) M.SC ( Agriculture ) /MRS /MRM /MSW /MLW/MBA/ B.Tech (DT ) / MCA

/ M.E Biz. ( From recognized University ) trainee then appointed as senior officer.

1 yr as a

(b) Inter CA /Inter ICWA / BE 1 yr as training period, then appointed as Dy. Sup. Deputy Superintendent
(c) CA/ICWA

Superintendent NO training period,direct appointment. However, in case of fresh recruitment of candidates with exceptional qulificational form reputed Institutions such as IIM/IIT/IRMA o Central Institution, considerstion for appointment to Higher Grade be given due weightage, not withstanding the above minimal requirements.

SELECTION:

Selection procedure is concerned with securing relevant information about the applicant. The main objective of selection process is to determine whether an applicant meets the qualification for a specific job and choose the application that

71

is most likely to perform well in the job. The Selection process in AMUL is as under Vacancy in any department Approval from M.D Advertisement Collection of application Securitize the application Interview Medical checkups Selection After selection, the employees generally have probation period. In AMUL probation period is different for different type of employees. Probation period for officers is 12 months, 6 months for clerical employees and 3 month for workers.

TRAINING AND DEVLOPMENT

Definition: is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format. 72

Training is the process where the work related knowledge, skills and attitude are given to new employees. By which they aware the policies rules and increase technical and manual efficiency and create of responsibility.

AMUL has accepted three methods for the training . TRAINING PROCEDURE IN AMUL

Identification of need of Training Module Preparation Selection of Employee for the Training Training Feedback

AMUL HAS ACCEPTED THE 3 METODS OF TRAINING, 1. On the job method 2. Off the job method 3. In house training

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4 out house training

PERFORMANCE APPRAISAL
Performance appraisal is the process of evaluating the performance and qualification of employees in terms of the requirement of the jobs for which they are employed. It is highly useful in making decision regarding the promotion, transfer, wage and salary administration etc. The

AMUL adopts the following appraisal system

Promotion Period
1 year

Appraisal For
Managers

3 year
1 year 1.5 year

Officers
Workers Temporary workers

Final confirmation with the recommendation by the divisional heads comes from the MD on annual basis. His work is evaluated by Check list Method of Performance Appraisal. These are a various method used to appraise the performance of an employee. In Amul the following methods are used

Self appraisal
If individuals understand the objectives they are expected to achieve the standards by which they are to be evaluated they are to a great extent in the best position to appraise their own performance .in this method employee himself.

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Managers Appraisal

The general practice is superiors appraise the performance of their subordinate. Other supervisors ,who have close contact with employee s work may also appraise with a view to provide additional information. A higher level manager appraise the employees for their performance. In Amul various attributes consider for the appraisal of employee.

Job knowledge Work output Quality of work Interest in work Initiatives Past records Seniority

This appraisal is also the rating scale. Method appraiser also appraised employee by following .

Outstanding Good Satisfactory

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 Poor

The overall assessment is done through above rating and also the comment of reviewing officer is included. Apart form this the performance in liked allowance is provided in relation with performance that is ,
25% 50% 100% Not allowed

This is provided by and under knowledge of under Managing Director Generally in Amul on base of performance appraisal employee of managerial level gets specials allowance. While for workers they get promotions

FUNCTIONS
Identification the areas of training & development. Helps in reward allocation. Provide the opportunity to review the strange & weakness of the employees. It helps in career planning & personnel development. Helps in establishing credibility of the selection procedure. Act as a motivation factor.

OBJECTIVES OF PERFORMANCE APPRAISAL

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1) SALARY INCREASE: Performance appraisal play a role in making decision about salary increase. Normally salary increase depends on how employee is performing his job. There is continuous evaluation of this performance either formally or informally in small organization. There is direct contact between employees & Performance appraisal has to be a undertaken. 2) PROMOTION: Performance appraisal plays a significance role where promotion is based on merits most of organization use a combination of merit & seniority for promotion. Performance appraisal discloses how an employee is working in his present job & what his strong & weak points are. It can be decided whether he can be promoted or not. It is also used for transfer, promotion, demotion & discharge of employees. 3) TRAINNING & DEVELOPMENT: Performance appraisal tries to identify the strengths & weaknesses of an employee on his present job. This information can be used for devising training & development programmes appropriate for overcoming weakness of the employees. 4) FEEDBACK: Performance appraisal provides feedback to employees about their performance. It tells them where they stand. A person works better when he knows how he is working first, the1person gets feedback about his performance & try to overcome his deficiencies second, when the person gets feedback about his performance, he can relate his work to the organizational objectives. 5) PRESSURE ON EMPLOYEES: Performance appraisal put a post of pressure

Establishment of Performance Standards

Establishment of on employees for better performance. If the employees are conscious that they are

Performance being appraisal in respect of certain factors & their future largely depends on Performance Standards 6 2 Standards such appraisal, Appraisal can work automatically as control device.

Establishment of

PROCESS OF PERFORMANE APPRAISAL

Establishment of Performance 5 Standards
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Establishment of Performance 3 Standards

Establishment of Performance Standards 4

1) ESTABLISMENT

OF

PERFORMANCE:

We

need

some

kind

of measures again which we are going to compare the performance of employees. some of these standards are based on job description should be clear enough to be measured & understood by everyone standers are the expectations.

2) COMMUNICATE EXPECTATION TO EMPLOYEES: Standards need to be communicated is employees so that they know what is expected of them & how will they about it.

78

It has to be received by employees & manager should receive the feedback so that he comes to know whether employees have understood the intention of communication. 3) MEASURES ACTULY PERFORMANCE: After setting standard you will some critical to measure the performance of employees.

4) COMPARE ACTUAL PERFORMANCE WITH STANDARD: This is done to see if any discrepancy exist & if so then how will it be rectified. 5) DISCUSS APPRAISAL WITH EMPLOYEE: Performance of employee is reviewed & then manager has to convince the employees about his judgment. He conduct meeting with employees for this purpose. 6) INITIAL CORRECTIVE ACTION: If there is any deviation in performance then suggestive corrective action can be provided to the employees.

WAGES AND SALARY A common method is followed for the wage and salary administration according to Muster roll . Timekeeper sends that muster roll to the account department for attendance of each and every employee. This will analyze and entered in the computer. After this salary is calculated for each employee through computer according to that they prepare salary sleep of employees. WAGE STRUCTURE (Approx) 79

POST Managing Director General Manager Assistant General Manager

GRADE Manager Manager Manager

PAYSCALE 21000-28000 15000 -21000 7000-15000

Assistant Senior clerk

Clerical Worker

2500-7500 2000-5000

INTRODUCTION: Finance Management

Sound working capital management has become a necessity in era of information technology for a company to succeed. The best example to support this argument is the performance of Dell computers as reported in one of the recent Fortune article. A perusal of the article will give us an insight into how Dell could use technology for improving the performance of components of working capital. Use of internet as a tool for reducing costs of linking manufacture with their supplier and dealers.

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Outsourcing operations if the firms core competence does not permit the performance of the operation effectively. Train the employees to accept change. Introduction of internet business. Releasing Capital by reduction in investment in inventory for improving the profitability of operating capital.

A financial manager spends a large part of his time in managing working capital. There are two important elements of working capital management. Decision on the amount of current assets to be held by a firm for efficient operations of its business. Decision on financing working capital requirement. Inadequacy or mismanagement of WORKING CAPITAL is the leading cause of many business failures. Working capital is that portion of asset of a business which are used in current operations. They are used in the operating cycle of the firm. It is defined as the excess of Current Assets over Current Liabilities and provisions.

Objective of Working Capital Management: The basic objective of financial management is maximizing the Net wealth of shareholders. A firm must earn sufficient return from its operations to ensure the realization of this objective. There exists a positive correlation between sales and firms return on its investment. The amount of earnings that a firms earns depends upon the volume of sales achieved. There is the need to ensure adequate investment in current 81

assets, keeping pace with accelerating sales volume. Firms makes sales on credit. There is always a time gap between sale of goods on credit and the realization of proceeds of sales from the firms customers. Finance manager of a firm is required to finance the operation during the time gap. Therefore, objective of Working Capital Management is to ensure smooth functioning of the normal business operations of a firm. The firm has to decide on the amount of Working Capital to be employed. The firm may have a conservative policy of holding large quantum of current assets to ensure large market share and to prevent the competitors from snatching any markets for their products. But such a policy will affect the firms return on its investment. The firm will have higher than the required amount of investment on current assets. This excess funds locked in current assets will reduce the firms profitability on operating capital. NEED FOR WORKING CAPITAL: The need for working capital arises on account of two reasons: To finance operations during the time gap between sale of goods on credit and realization of money from customer of the firm. To finance investments in current assets for achieving the growth targets in sales. Therefore finance the operations in operating cycle of a firm working capital is required.

COMPONENTS OF WORKING MANAGEMENT

There are two main components are given below: 1. Current Assets and 2. Current Liabilities. Current Assets are: 82

 Inventories Sundry Debtors Bills Receivables Cash and Bank Balances Short term investment Advances such as advances for purchase of raw materials, components and consumable stores, prepaid expenses etc. Current Liabilities are: Sundry Creditors Bills Payable Creditors for outstanding expenses Provision for tax Other provisions against the liabilities payable within a period of 12 months.

CALCULATION OF GROSS WORKING CAPITAL OF AMUL. PARTICULARS 83 200 2008-09

2006-07 Current assets: Stock: Trading stock Stores (A)Total stock Current Assets: Deposits Due from societies Advances Trade Debtors Sundry Debtors Income Tax Deposits Society Loans- BMC (B) Total Current Assets 6952.79 2125.11 9077.90

7-08 13476.86 2261.02 15737.87 16334.50 3106.47 19440.97

project

169.25 0.06 417.25 6015.61 372.62 93.41 7068.19 224.31 0.00 3503.19 0.62 3728.11 19874.2

214.05 0.11 777.80 8458.69 404.62 91.53 9946.80 159.84 501.63 2649.03 0.71 3311.22 28995.89

277.29 5.06 960.91 4435.10 534.52 131.68 1036.45 7380.01 583.65 128.00 1340.76 1.00 2053.41 28674.39

Cash & Bank: Bank Current Account NDDC BMC Project A/c F. D in Bank Cash on hand (C) Total Cash & Bank GROSS WORKING CAPITAL (A+B+C)

In AMUL, Current Assets are made up of stock (both trading and stores), Advances and Debtors (deposits, due from societies, advances, trade debtors, sundry debtors etc.) and cash and bank balances. Percentage change in investment in Current Assets

FINANCIAL YEAR 2005-06 2006-07

G. W. C. 18990.94 19874.20 84

% INCREASE 4.42 %

2007-08 2008-09 Net Working Capital:

28995.89 28674.39

45.90 % -1.11 %

Net Working Capital is the excess of current assets over current liabilities and provisions. Net Working Capital is positive when Current Assets exceed current liabilities, and negative when current liabilities exceed current assets. This concept has been following practical relevance. 1. 2. It indicates the ability of the firm to effectively use the spontaneous finance in managing the firms Working Capital requirements. A firms short term solvency is measured through the Net Working Capital position it commands.

CALCULATION OF NET WORKING CAPITAL OF AMUL:

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PARTICULARS 2006-07
(A) Total Current Assets 19774.20 Less: Total Current Liabilities Deposits 380.71 Due to Societies 6264.11 Outstanding against Expenses 1076.90 Outstanding against purchase 3373.85 Sundry Creditors 337.14 Total (B) 11432.71 Net Working Capital (A-B) 8441.49
Source: Balance sheets of last 3 years)

20 2007-08
28995.89

08-09
28674.39

168.24 7223.31 1423.59 4298.31 459.06 13572.51 15423.38

232.99 12017.60 1828.48 3058.15 336.56 17473.79 11200.60

Efficient Working Capital Management requires that the firms should operate with the amount of Net Working Capital. The data of last three years shows the margins by which Current assets over the short term obligations and such margins were more in 2007-08 as compared to past years. The portion of current which can be financed through long-term assets has decreased in 2008-09 as the portion of current liabilities has proportionately increased and hence the Net Working Capital is low in 2008-09.

SUGGESTIONS

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After making a Study on the topic of Performance Appraisal system in AMUL AGRO LTD., I Would Suggest that the following Points should be implemented: Give the employee a few days notice of the discussion and its purpose. Be . Prepare notes and use the completed performance appraisal form as a discussion guide so that each important topic will be covered. ready to suggest specific developmental activities suitable to each

employees needs

They would suggest changes in job analysis & standards, if necessary. There should be no negative ratings because it affects interpersonal relations and industrial relations systems. The feedback must be positive, corrective on observed behavior and facts and not on inferences, assumptions or what one has heard from others. The final performance rating must be done in a fair manner. Appraisal tools must be relate to the employees satisfaction.

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MY FINDINGS
During the survey it was found that still there are 10% people who have not tasted Amul . Lake of Awareness in consumers. Many people are not know about Amul specially children and teenagers. As I found that the main product of Amul is Milk and company firstly wants to capture maximum market share in milk market which is approx. 66%, after it Amul is concentrating upon butter & cheese which has market share of approx. 88%, so it is not concentrating upon chocolates. When I interviewed people then many of the people can not recall Amul advertisement. It shows Lake of Advertisement or advertisement is not timely given or advertisement is not given on right time. In its advertisement is not using any brand ambassador which attracts all age group people like Cadbury. There is lake of Sales Promotional Activities i.e. free tattoo, extra weight, toys, quiz contest etc. Cadbury is main competitor and strategically better performer then Amul. I find the main thing is that Amul brand name has very good image in consumers mind and they consider it as Pure & Good Product. People who have tasted Amul are ready to purchase the same again.

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ANALYSIS
In AMUL , I Came to Know about the appraisal method of an employee. During my visit at AMUL, I found that it works under the guidance of its head office. The Appraisal method of an employee was totally based up on the proper test and interview of an employee. I also found that their appraisal Method was very good. The time period for appraisal is based on quarterly basis. Besides all the above findings I also found that the AMUL is the well reputed, well managed and the well built company. The Management of company is very Hardworking in nature and takes care about the well being of their staff and workers. They are provided with all the required facilities. They are goal oriented and work as a team in a whole and the main emphasis of the company is on the quality products manufacturing. I also found that in the last month of the financial year highest production and the highest dispatch was made.

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LIMITATIONS

Limited time available for interviewing the respondents. As a result of this it was not possible to gather full information about the respondents. When I interviewed children and teenagers, sometimes they use to give answers under the influence of their parents or elders. As summer training is going under summer season so sometimes people are less interested in filling up questionnaire. Sometimes the problem which I face is language problem for which I have to make them understand. Non-cooperative approach and rude behavior of the respondents. While going through the research I had faced a bit problem like frequent visits were required. Workers and supervisors were not immediately responding. 90

 Due to the tight schedule of managers, there are some difficulties for me to get cooperation and attention. Extra large unit to cover. Large no. of employees in the company, more than 2000, not possible to cover entire lot

If the respondents answer does not falls between amongst the options given then it will turn up to be a biased answer

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CONCLUSION
At last it is concluded that the company as a whole is a well branded company. The goodwill of the company is very high.

After having a study of the present system of Performance Appraisal system in AMULIndustries Limited , I have come up with a conclusion that AMUL industries Limited employees are aware of the system of HUMAN RESOURCE INFORMATION SYSTEM being followed in their organisation . Most of the employees hold the view that the system of HRIS is effective to evaluate and truly reflects their roles and activity. About the company it is derived that the company is very well managed and its management is highly devoted towards the quality of their products and the well being of their staff members and workers. Staff members and workers are also work very enthusiastically and complete every assignment on time. Every one is very supportive in nature and cooperate each other. They work effectively and efficiently to achieve the company goals and the individual goals. This is the reason that the company is achieving commanding heights and the last month of the financial year 2009-2010 made the records of highest production and highest dispatch and AMUL as a whole has achieved the Second position in the FMCG sector in India.

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Annexure
JANAKPURI- DISTRICT CO-OPERATIVE MILK PROCEDURES UNUION LTD EMPLOYEE WISE TRAINNING DETAIL

Employee Id : Employee Name : Designation : Qualification

Joining Date : Department :

Training Details

Name of Training / conducted by Start Date/ End Date

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No of Days

I/ Employee information
1. Employee name: 2. Position: 3. Department: 4. Start working from:

II/ Rating scales

Yes / No / NA

III/ HRIS questions

1. Are u satisfied with the methods of HRIS? 2. Quality of personal objective setting is poor. 3. Which method of HRIS is mostly used in your company? 4. Ratings are sometimes seen as based on subjective judgments?

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5-IS HRIS method of an employee totally based up on the proper test and interview of an employee?

1.Are u satisfied with the methods of HRIS? (a) Yes (b)No Ans:

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Interpretation:65% of employees are satisfied with the methods used by company for HRIS ,but 35% of employees are not satisfied with the methods used in HRIS.

2. Quality of personnel objective setting is poor ? (a) Yes (b)No Ans:

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Interpretation:55% of employees think that quality for setting personnel objective is poor where as 45%of employees think its not so.

3.Which method of HRIS is mostly used in your company? (a) Individual Method
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(b) multiple-person evaluation method (c) others Ans:

Interpretation:Multipe person evaluation method is mostly used according to 5o% of employees,40% says individual method is used and 10% says other methods are used.

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4. Ratings are sometimes seen as based on subjective judgments. (a) Yes (b) No Ans:

Interpretation:99

40% employees says,yes that ratings are sometimes seen to be based on subjective judgment,where as 60% of employees says no. 5-IS HRIS method of an employee totally based up on the proper test and interview of an employee? (a) Yes (b) No Ans:

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Interpretation:70% of employees says that HRIS method is totally based up no proper test and interview but 30%of employees does not agree with this
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THANK YOU _________________ ______________ ____________

BIBLIOGRAPHY
WEBSITE REFERRED
1. www.amul.com 2. www.amuldairy.com 3. www.google.com 4. www.marketresearch.com 5. www.dairy.com 6. WWW.amul.co.in

BOOKS REFERRED
1. K. Aswathappa, Human Resource & Personnel Management text & cases, 3rd Edition, Tata McGraw-Hill Publishing Company Limited. 2.C. B. Mamoria & S. V. Ganekar, Personnel Management, 25th Edition 2005, Himalaya Publishing House. 3.Rosemary Harrison (1996), Employee Development

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4.Sally Sparhawk, Identifying Targeted Training Needs, published in 1995 by Kogan Page Ltd.

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