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Aarti
Aarti
(ISO 9001-2000 and HACCP Certified) (Jaipur Zila Dugdh Utpadak Sahakari Sangh Ltd., Jaipur)
Gopal Pura Mod, Jaipur
Submitted in Partial Fulfillment for the Award of degree of Master of Business Administration Submitted By
ARTI SHARMA
Submitted To:
PREFACE
H/R is one of the most important functions in business. It is the discipline required to understand employees needs and the requirements they seek. No study can be termed complete if there is no official experience. Hence need for training has become a real necessity. The training aims to prepare students through a process of official experience. Official exposure no doubt has contributed a significant amount of knowledge to me along with real life experience and was an ideal combination of academic knowledge and official experience. H/R activities can be regarded as lifeblood of all business concerns. In order to enhance the performance of Human Resource department and overall success of a business concern, study of employees behavior and their satisfaction, leadership, and competitive advantages is necessary. The performance of a company is very much important for an organization. Saras Dairy, Jaipur is in fact a very ideal location to gain experience. I am sure the experience gained in short duration, will go a long way in all my future endeavors.
ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Mr. K.C. Kabra, H/R Manager, Deptt. H/R for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge him for extending his valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I would also like to thank the supporting staff Mr. Pankaj Saini Marketing Department, for his help and cooperation throughout our project.
(ARTI SHARMA)
CONTENTS
S.NO 1. DETAILS INDUSTRY PROFILE:INTRODUCTION TO SARAS DAIRY 2. 3. INTRODUCTION TO THE ORGANISATION:RESEARCH METHEDOLOGY:3.1) Title of the study 3.2) Duration Of the Project 3.3) Objective of the Study 3.4) Type of Research 3.5) Sample Size and method of selecting sample 3.6) Scope of Study 3.7) Limitation of Study 4. 5. 6. 7. 8. 9. 10. FACTS AND FINDINGS ANALYSIS AND INTERPRETATION SWOT ANALYSIS CONCLUSION RECOMMENDATION AND SUGESSIONS APPENDIX BIBLIOGRAPHY 8-17 18-105 106-112 107 107 107 107 108 109 110 111-112 113-114 115-117 118-119 120-121 122-125 126-127 PAGE NO
The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the State. During 1997-98, the State had 60 milk processing plants with an aggregate processing capacity of 5.8 million litres per day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling centres operate in the State. With the increase in milk production. Maharashtra now regularly exports milk to neighbouring states. It has also intiated a free school feeding scheme, benefiting more than three million school children from over 19,000 schools all over the State.
COMPANY PROFILE
Jaipur Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar (JZDUSS Ltd., Jaipur) is a cooperative organization registered under Cooperative Act with Registrar of Cooperative, Government of Rajasthan. JZDUSS Ltd., Jaipur was established in the year 1972 keeping in mind the interests of the cattle rearers to implement dairy development activities in the Jaipur district, under Operation Flood Program. The task of milk collection started from 22 nd August 1973. The main objective of the organization is to eliminate the role of intermediaries and give cattle rearers good value for the milk and prevent them from exploitation. The other objectives of the organization are: 1) To help in financial development of the villages and cattle rearers. 2) To help in the social and financial development of the rural milk producers. 3) To increase the milk producing capacity of the cattle. 4) To make available pure, healthy and high quality milk and milk products to the customers. JZDUSS receives direction and assistance from Central Government, State Government, RCDF Ltd. Jaipur and National Dairy Development Board, Anand from time to time. Presently the dairy plant has a capacity to process 1.50 lakh liter milk, prepare 10 M.T. milk powder and 9.0 M.T. ghee per day. Besides these the plant also prepares chhach, lassi, dahi, shrikhand, paneer and other milk products. The plant also has a capacity to pack 5.00 lakh liter milk per day. The Jaipur plant of Saras (JZDUSS Ltd., Jaipur) has been certified under internationally accepted quality and food safety management systems in accordance with ISO 9001-2000 with HACCP. The organization also helps in improvement of animal breed, providing animal health services, insurance of animals, women dairy project and providing vermicompost manure to the cattle rearers. The organization also provides cattle feed which is purchased from market and marketed in Jaipur.
Product Portfolio
Saras Dairy, Jaipur (JZDUSS Ltd., Jaipur) prepares and markets the following products: 1) Milk (Available in and 1 liter packs) a. Full cream Milk b. Toned Milk c. d. Skim Milk (Red) (Blue) (Purple) Gold It contains FAT- 6% and SNF- 9% It contains FAT-1.5% and SNF-9% Taaza It contains FAT-3% and SNF- 8.5% Smart Lite It contains FAT-0.5% and SNF-8.5%
2) Chhach a. Plain b. Namkeen 3) Lassi 4) Ghee 5) Paneer 6) Shrikhand 7) Dahi 8) Butter 9) Flavored milk 500ml 250ml 250ml liter , 1 liter and 15 liter tin 200 gm and 1 k.g. 100 gm Cup 200 gm Cup 100 gm and 500 gm 200 ml Bottle
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Objectives of theStudy
I joined Saras Dairy, Jaipur (JZDUSS Ltd., Jaipur) as an intern for the training of 45 days. I worked in the HR Department of Saras. The objectives of the Executive Training at Saras Dairy (JZDUSS Ltd., Jaipur) are: 1) To identify the working of the organization. 2) To conduct an exhaustive analysis of the HR Department. 3) To analyze the various methods of performance appraisal. 4) To conduct an extensive study of performance appraisal procedure of the dairy. 5) To understand the core business of the company, organization chart, key personnel in the company. 6) To do a comprehensive analysis of the performance appraisal procedure of the company. 7) To build a good rapport with the companys staff.
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Sampling:Sample Size- 6 Managers of different functional level and 6 Deputy Managers of functional departments and 6 Assistant Managers Sampling Method- Convenience Sampling
Questionnaire Design
A questionnaire is a set of questions to be asked from respondents in an interview, with appropriate instructions indicating which questions are to be asked, and in what order. Questionnaires are used in various fields of research like survey research and experimental design. Questionnaire design is a vital issue in interviewing. A properly designed questionnaire can tap the necessary information from the respondent. Therefore, researchers always design a tactful set of questions to probe and prompt the interviewee to give useful answers. Questionnaires fall under various categories, such as structured, unstructured, disguised and undisguised. In the questionnaire I have used two types of questions: Open Ended Questions In open ended question design each question has a series of lines (or a blank space) in which the respondents are encouraged to write, in their own words, how they feel about the topic in question. Close Ended Question 15
Closed question provide a set of answers that the designer of the survey (based on prior experience and responses in the pilot survey) considers will accommodate the majority of potential responses.
Targets
Target is defined as goal which has to be fulfilled and sounds compulsiveness. Without setting target it is difficult for anybody to achieve his/her objectives.
The targets that were set for me during the training are:
1) To implement human resource management techniques to increase the satisfaction level of the employees of JZDUSS Ltd., Jaipur. 2) To interview the Managers and Deputy Managers to understand the performance appraisal procedure . 3) To analyze the problems faced by the Managers during the performance appraisalof new and old staff members.
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I started my SIP training in HR Department at Saras dairy JZDUSS Ltd., Jaipur. HR manager gave me responsibility to take the structured interview of the six functional managers and six deputy managers of concerned department. I prepared a questionnaire for both the level of managers. The questionnaire consists of open and as well as closed questions. I took the interview of all the Managers and Deputy Managers for collecting the data. Basically the scope of my study is the head office of the Jaipur Dairy because my study is totally based on Managerial level.
Termination of service of confirmed employee Superannuating and retirement Option to retire in certain cases Requirement of medical examination Retirement on medical grounds Date of retirement Privilege leave on retirement and encashment Postponement of retirement pending disciplinary action Voluntary retirement Abandoning duty after period of leave or otherwise Appointment of experts Scale of pay Calculation of joining time Overstay after joining time Deputation of employees Special appointments Entry, exits and search Identification, attendance and entry Provident fund Gratuity Leave Tours and traveling allowances Transfers Tours abroad Conveyance facilities Service record Address for communication Recall from leave Shift working
Marketing Department
According to Peter Drucker, The aim of marketing is to make selling superfluous. Marketing department is one the most important department in every organization. The marketing activities of the organization include providing support to the milk unions within and outside the state. The marketing department conducts various surveys to know the needs and expectations of the customers. Marketing department is responsible for the sale of liquid milk. It decides the routes by which the milk is supplied as well as decides the number of booths in district and up country. It also appoints distributors for supply of milk from dairy plant to different areas of district and up country market. Presently in Alwar city there are 315 working booths and 10 parlors. JZDUSS Ltd., Jaipur is also marketing various fresh milk products in Saras brand 18
like Chhach, Lassi, Paneer, Shrikhand, Dahi and long life products such as ghee, skim milk powder and whole milk powder. Various sales promotion techniques are used by marketing department to increase the sale of Saras products like Incentive schemes to dealers Consultancy and hiring of marketing agency Hoardings Glow sign board Gift hampers Banners Advertisement through local cable Wall paintings
Operations Department
The operations department defines the working of the organization. Processes: The steps for preparation of various products are as follows: Process of making Ghee
Cream Tank
(To collect the cream)
Butter Churn
(Where the cream is churned to make butter)
Melting Vat
(The butter is melted in Melting Vat)
Ghee Kettle
(The melted butter boils in ghee kettle)
Packing Department
(Where the ghee is packed in 1 liter and liter packs) Plain Chhach: This is pasteurized milk which contains 3.1% fat and 8.6% SNF and acidity 1.08%. This milk is boiled at 40 degree Celsius and 3% curd is added. It is diluted by 40% DTM. This is packed in 500 ml packets and supplied to the market for sale. Namkeen Chhach: In plain chhach various ingredients like 0.6% salt, 0.3% jeera, 0.15% rock salt and 0.1% pepper is added to make namkeen chhach and packed in 200 ml packets and supplied to the market for sale. Lassi: In plain chhach 12% sugar is added to make lassi and packed in 200 ml packets and supplied to the market for sale. Paneer Segment:
Paneer Vat
(In this Vat the milk contains FAT 5.0% and SNF 9.0 %.) The milk boils in paneer vat at 80 degree Celsius and 2% citric acid is added in this milk to separate FAT, SNF and water
Paneer Hook
(Then curded milk is pressed in paneer hooks for 45 minutes and then this paneer is put into chilled water at 5 degree Celsius)
Packaging Department
(Here the paneer is packed in 1 KG and 200 gm for sale)
Facilities: 20
Saras Dairy, Jaipur (JZDUSS Ltd., Jaipur) provided the following facilities during operations:1) 2) 3) 4) 5) 6) Safety for workers Medical facility First aid facility State of the art technology is used Insurance cover for workers Fire extinguishers are installed in the plant
Finance Department
Financial Management is defined as making available the required funds at an acceptable cost and making sure that the funds are suitably invested according to the plan. This task is performed by the Finance Manager of the organization. Capital Structure Theories The two sources of long term finance for a firm are 1) Equity Capital: - Equity capital is the owners own capital invested in the business. 2) Debt Capital: - Debt capital is the capital raised from other sources which is invested in business. Arrange finances through loans from ICICI and HDFC. Earlier loans were taken from Alwar Gramin Bank. Final accounts are maintained yearly. Daily transactions are maintained in one day business. Budget is prepared by the Accounts Department.
Financial Ratio Analysis Ratio analysis is a widely used tool of financial analysis. It can be used to compare the risk and return relationship of a firm of different sizes. It is defined as the systematic use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two items/variables. Ratio analysis is a systematic use of ratios to interpret the performance and status of the firm. Current ratio: This ratio reveals the relationship between current assets and current liabilities. Current ratio = current assets / current liabilities 21
Quick ratio/ acid test ratio : The acid test ratio is the ratio between quick current assets and current liabilities and is calculated by dividing the quick assets by the current liabilities. Quick ratio = Quick assets / current liabilities
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60% Has Full Knowledge Of Performance Appraisal Procedure ,30% Has Partial Knowledge And 20% Has No Knowledge Regarding This Procedure. 8)What type of method you are using for the Performance Appraisal Procedure?
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35% Used Traditional Method 40% Used Modern Method And 25% Take On The Spot Decision. 3)Which is the best traditional method of performance appraisal.
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25% Used Confidential Report, 20% Used Free From Or Essay ,15% Used Straight Ranking And 40% Used Checklist Method 4)Which is the best modern method of performance appraisal .
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40% Used Assessment Centre, 20% Used H/R Accounting ,15% Used Behaviourally Anchored Rating Scale And 25% Used Appraisal Through MBO. 5)Do You Considered Negative Factors For Performance Appraisal.
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85% Do Not Use Negative Factors But 15% Uses Negative Factors. 6)Which type of benefits you prefer for the performance appraisal of the candidate?
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30% Distribute Bonus, 25% Uses Incentive ,20% Uses Medals And 25% Uses All Of The Above. 7)Are you satisfied with the PERFORMANCE APPRAISAL procedure of Jaipur Dairy?
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90% Are Satisfied With Performance Appraisal Procedure But 10% Are Not Satisfied. 8)Do you think that procedure of Performance Appraisal can be improved further?
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85% Says That The Procedure Of Performance Appraisal Can Be Inproved But 15% Says No. 9)Do you have any suggestions for further improvement of Performance Appraisal procedure?
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90% Says I Have Suggestion For Improvement Of Performance Apprasial Procedure But 10% Has No Suggestion. Do you think that company should search new sources of Performance Appraisal
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JAIPUR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., JAIPUR MILK PRODUCT MANUFACTURE
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JAIPUR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., JAIPUR MILK PROCUREMENT
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JAIPUR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., JAIPUR LIQUID MILK SALE
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JAIPUR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., JAIPUR TURN OVER
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CONCLUSIONS OF SURVEY
The following pie charts show the opinion about various Saras products.
Figure 1 Figure 2
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13%
10%
5%
5%
15%
36%
Like very much like somew hat neutral dislike somew hat dislike very much
29% 51%
Like very much like somew hat neutral dislike somew hat dislike very much
18% 18%
Figure 3
People's opinion about Ghee
Figure 4
People's opinion about Lassi
10%
3%
10%
12%
Like very much like somew hat neutral dislike somew hat
14% 44% 8%
Like very much like somew hat neutral dislike somew hat dislike very much
13%
62%
24%
Note: The graph only shows the opinion of the people I surveyed and not of the general public.
During the training my major work was to conduct booth/parlor surveys and customer
surveys. My efforts have benefited the company (JZDUSS Ltd., Jaipur) in the following ways:
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1) I surveyed Saras parlors and booths and tried to find out the problems faced by the booth/parlor owners. 2) The problems faced by the booth/parlor owners were: a. They did not get timely supply of products from Saras dairy. b. They did not receive cover stands and straws to serve the customers better. 3) I conveyed these problems to the Managing Director of JZDUSS Ltd., Jaipur. 4) He immediately took action after receiving my feedback. 5) This has resulted in timely supply of material to the booth and parlors and cover stands and straws were also provided to them. 6) After these actions were taken, customers started getting better facilities and this enhanced the goodwill of the company (JZDUSS Ltd., Jaipur). 7) I also interviewed the staff of the marketing department to judge their satisfaction level. It proved very beneficial to the head of the organization, the Managing Director, as he came to know the satisfaction level of the employees of his organization and the action he needs to take to keep his staff completely satisfied so that they can work well for the betterment of the organization and remain loyal towards the organization.
Survey Results
During the course of SIP training I conducted survey of 9 Saras parlors, 205 booths. The results of the survey are presented graphically as follows:
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102 48%
63 29%
Figure 5
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I organized plant visit for 250 people during the four months of my SIP training. I explained them the working of Saras plant. I also told them how Saras products are better than the products supplied by local vendors and the advantages of using Saras products. Each and every person gave his/her response and I graphically present their responses using pie chart as follows:
29 12%
119 48%
Fairly convinced
Unconvinced Highly unconvinced Cant say
61 24%
Figure 6
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I surveyed 500 people. The people I interviewed were randomly selected from various colonies of Alwar. Every person has a different opinion, some say Saras products are excellent, some say they are good, some feel they are poor and some find them average. I present the result of the survey graphically using pie chart as follows: Survey result of 500 people 12 14 21 2% 3% 4% 66 13%
98 20%
289 58%
Figure 7
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S.No. 1 2 3 4 5 6 7 8 9 10 11
Factor Absence of home delivery Unknown about Saras products Products are expensive Priority to buffalos milk Possess bad smell Non availability of booth in the vicinity Use Saras milk in case of emergency only Faith in long association with the milkman Not able to pay in cash Consumers own cows and buffalos No price consistency TOTAL Table
100
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STRENGTHS The products are very pure The products are extremely hygienic The plant is ISO 90012000 and HACCP certified
WEAKNESSES Low availability of raw milk Dependence on farmers Reduced milk supply in summers
OPPORTUNITY Milk is an essential commodity which every body uses. There is no competitor of packed milk in Alwar.
THREATS Milk can be produced not manufactured. There is always a possibility of a competitor entering the market.
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As my project title is A study of performance and growth of Saras dairy , therefore I did a comparative analysis of many factors related to performance and growth of the organization like number of registered societies, milk procurement, liquid milk sale and turnover from 2002-03 to 2007-08. I represent the statistical figures in a tabular form below: JAIPUR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., JAIPUR REGISTERED DCS
Table 1
No. of registered cooperative societies 497 532 609 681 742 795
JAIPUR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., JAIPUR MILK PROCUREMENT
Table 2
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JAIPUR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., JAIPUR LIQUID MILK SALE
Table 3
Liquid milk sale 000 lit per day 18.6 29.56 35.81 67.03 132.69
JAIPUR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., JAIPUR TURN OVER
Table 4
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Excellent
Very Good
Good
Poor
Very Poor
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9 6 0 10 8 9 10 8 7 8 9 4 5 7 93
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RECOMMENDATIONS
On careful observation of the Saras dairy during the training period, I have the following suggestions for Saras dairy, which on proper implementation may provide a big boost to it. 1) The policy that an organization must follow in order to run successfully is..
Rule #1
The customer is always right!
Rule #2
Figure
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2) All information regarding Saras dairy and its products should be available on internet. 3) Home delivery facility should be provided. 4) Increase in advertisement and publicity. 5) Motivation program for booth and parlor owners. 6) Marketing department should be well furnished and attractive. 7) There should be consistency in price. 8) Alwar dairy should give milk producers competitive prices and facilities. 9) Glow sign boards should be provided to booth and parlor owners. 10)New products should be launched like ice-cream. 11)An organization like Saras should have a reception and a receptionist. 12)To popularize Shrikhand free samples may be distributed at some public places. 13)Inspection and frequent check of booths and parlors. 14)Good coordination between marketing department and booths & parlor owners. 15)Departments should be interconnected through computer network. 16)Employee identification card should be provided to employees of Saras. 17)New technology should be adopted from national and international companys experts in the field.
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APPENDIX
I prepared many questionnaires to perform the survey task assigned to me. These questionnaires were first shown to the officials of the Saras dairy and after their acceptance and consent they were implemented to do the assigned task. The various questionnaires prepared by me to conduct surveys and interviews are enclosed in this section.
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b)Participative style
____________
c) Free-rein style ____________ 9)Which type of autocratic leaders you adopt? a)Pure autocract b) Benevolent autocrat
10)Which type of leadership theories does your organization adopt? a)Personality theory theory b) Behavioural theory c) situational
11)Out of these skills, which skill is highly possess by supervisor. a)Guiding the work staff d) Managing performance b) Organizing the work c) Developing your
12) According to you what is the strength of leadership in your organization. a) Hard working player b) Self motivate c) Success oriented d) Team
13) According to you what is the weakness of leadership in your organisation. a)Getting nervous b) Being a debater c) Lack of some skills
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d) Sensitive person
a) Abilities
b) Personality traits
c)Motivational traits
16)Are you satisfied with the leadership procedure of Jaipur Dairy? Yes No
17)Do you think that procedure of leadership can be improved further? Yes No
18) Do you have any suggestions for further improvement of leadership procedure? Yes No
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19)Do you think that company should search new sources for the improvement of leadership procedure.
Yes
No
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CONCLUSIONS
During the four months of my training at Saras Dairy (JZDUSS Ltd., Jaipur) and the surveys I conducted till date, I reached the following conclusions: 1) Saras (JZDUSS Ltd., Jaipur) is a very large and reputed organization and it gives me immense pleasure and satisfaction to be associated with such a reputed organization. 2) The organization maintains state of the art quality and hygiene standards. 3) A coin has two sides and it holds true for every organization, no matter how large or reputed it is, there are always some small shortcomings along with the plus points of the organization and Saras is no different. 4) Prices of Saras products have been hiked three times during my SIP. I observed that due to frequent price hike people are losing faith in Saras and they think that Saras is very unreliable and has no consistency in price. This factor has resulted in fall in sales. 5) Many people do not have faith in Saras products. They still believe that the products made by the local dairies are better. 6) Some people feel that Saras products possess bad smell and thats why they dont use Saras products. 7) Saras parlors/booths also face problems because sometimes there is no timely supply of products to them. They receive the products late in the day and then these products have to be sold the next day. People do not accept such products. 8) People believe that the Saras products are costly. 9) During the course of customer survey I also found the general publics opinion about different Saras products.
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Awards/Rewards Received
As Saras is a semi-government organization, therefore, it does not provide any stipend to the interns or trainees. During my SIP training I received a letter of appreciation from Saras Dairy, Jaipur (JZDUSS Ltd., Alwar) for doing my summer training with utmost dedication and sincerity. During training I received many compliments from the Managing Director of the organization and the members of the marketing department. In the training period the management of Saras was very satisfied with my performance. Copy of appraisal letter is enclosed.
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Bibliography
The definitions and data used in this report are compiled from the following sources: 1) Annual publication of Saras Dairy, Jaipur 2) Business Research Methodology by C.R. Kothari. 3) Definition of marketing by American Marketing Association 4) Definition of marketing by Peter Drucker 5) MIS department of Saras dairy (JZDUSS Ltd., Jaipur). 6) Principles of Marketing by Philip Kotler and Gary Armstrong. 7) Dairy map of Rajasthan from the website www.mapsofindia.com
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