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HRM - Cooperative Milk Society-Final - Version 2
HRM - Cooperative Milk Society-Final - Version 2
HRM - Cooperative Milk Society-Final - Version 2
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Contents
CONTENTS.........................................................................................................................2 INDUSTRY PROFILE................................................................................................................3 INDIA'S MILK PRODUCT MIX ....................................................................................................3 TYPES AND NATURE OF CO-OPERATIVE SOCIETY:................................................................................3 ORGANIZATION PROFILE...........................................................................................................6 FOCUS OF THE HR DEPARTMENT:............................................................................................11 RECRUITMENT PRACTICES:.....................................................................................................12 SELECTION PROCEDURES:......................................................................................................14 COMPENSATION STRUCTURES AND POLICIES:.................................................................................14 INCENTIVE SCHEMES & BENEFIT PLANS:.....................................................................................17 APPRAISAL METHODS:..........................................................................................................17 REWARD & RECOGNITION SCHEMES:.........................................................................................18 PROMOTIONS AND SCHEMES OF ADVANCEMENT IN PRACTICE:..............................................................18 TRAINING.........................................................................................................................19 ROLE OF TRADE UNIONS:......................................................................................................20 PARTICIPATION AND EMPOWERMENT SCHEMES:..............................................................................20 EMPLOYEE PARTICIPATION INVOLVES EMPLOYEES IN DECISION MAKING AND EMPOWERMENT HELPS IN DELEGATION OF AUTHORITY. THE PRIMARY OBJECTIVES OF EMPLOYEE PARTICIPATION AND EMPOWERMENT ARE AS FOLLOWS:...........20 IN THE CASE OF AKATHETHARA COOPERATIVE MILK SOCIETY, THERE ARE NO SUCH PARTICIPATION AND EMPOWERMENT SCHEMES FOR THE EMPLOYEES..................................................................................................21 WORKFORCE RATIONALIZATION STRATEGIES..................................................................................21 EMPLOYEE RETENTION AND ENGAGEMENT METHODS.........................................................................21 LABOR LAW GOVERNING THE COOPERATIVE MILK SOCIETY:.................................................................21 SUMMARY AND LEARNING:.........................................................................................22 REFERENCES.....................................................................................................................23
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Industry Profile
India is the largest producer of milk in the world and is one of the largest and fastest growing milk and milk products in the world. The milk industry in India has been witnessing rapid growth. The main aim of the Milk industry is only to better manage the national resources to enhance production and upgrade milk processing using innovative technologies. The dairy development programmes in Kerala have been implemented through a wide network of co-operatives, which follow the Anand Model of the state of Gujarat. The model follows three-tier structure where primary milk producers cooperative societies remain at the base level. In the district level, there is a union of producers co-operative societies, whereas, Federation of District Co-operative Milk Producers Union remain at the top level of the structure. India's Milk Product Mix Fluid Milk Ghee Butter
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Curd Khoa (Partially Dehydrated Condensed Milk) Milk Powders, including IMF Paneer & Chhana (Cottage Cheese) Others, including Cream, Ice Cream
Types and nature of co-operative society: All types of cooperative societies work on the same principle, but they differ with regard to the nature of activities they perform. The following are the types of Co-operative Societies: A ) Producers Co-operative Society: this society has main work to protect small producers by making available items of their need for production like raw materials, tools and
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equipments, machinery, etc. like- Handloom societies ( APPCO, Bayanika, Haryana Handloom) etc, are examples of producers co-operative society. B) Co-operative credit society: These societies are formed and mainly known to provide financial support to the members. The society accepts deposits from members and grants them loans at reasonable rates of interest in times of need. Like - Village Service Co-operative Society and Urban Cooperative Banks are examples of co-operative credit society. C) Consumers Co-operative Society: these societies have main motive to protect the general consumer (who is interested) by making consumer goods available at a reasonable price. They buy goods directly from the producers or manufacturers hence there is no middlemen in the process of distribution. Apna Bazar and Sahkari Bhandar are examples of consumers co-operative society. D) Housing Co-operative Society: This type of societies is formed to provide residential houses to members. They purchase land, develop it and construct houses or flats and allot the same to members. Some societies also provide loans at low rate of interest to members to construct their own houses.
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E) Co-operative Farming Society: This type of societies is formed by small farmers to work jointly and enjoy the benefits of large-scale farming. Some example of this society is Liftirrigation cooperative societies and pani-panchayats. F) Co-operative Marketing Society: These societies are formed by small producers and manufacturers who find it difficult to sell their products individually. The society collects the products from the individual members and takes the responsibility of selling those products in the market. Gujarat Co-operative Milk Marketing Federation that sells AMUL milk products is an example of marketing co-operative society
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SWOT Analysis of the milk industry. Strength Largest milk producer in the world A huge base of around 11 million farmers Traditional emphasis on consumption Opportunity Elastic demand; economic growth will spur demand Increasing preference for branded dairy products Growing focus on health and nutrients in urban market Weakness Poor feeding practices Poor access to institutional credit Lack of cold storage facilities
Threat Nearly 80 per cent of the Indian dairy industry is unorganized Removal of import duty has led to the threat of dumping
Growth and current status After India independence, the Milk Control Board was set up which controlled the supply and distribution chains. In this time milk production was stagnant during 1950 to 1960. After that the government set up the National Dairy Development Board (NDDB) in 1965 which prepared a
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blueprint for a milk revolution across the country. Known as Operation Flood, this programme began in 1970 and was implemented across the country. In 1973,first time the Kaira Cooperative Union set up a marketing agency named Gujarat Cooperative Milk Marketing Federation (GCMMF), which follows a three-tier structure at village, district and state level for procuring, processing and marketing milk and milk products. Now GCMMF is also the largest exporter of dairy products from India and its brand name Amul is known all over the world. Dairy sector witnessed a spectacular growth between1971-1996, like Operation Flood era. Tremendous Growth through Operation Flood. Stagnant milk production during 1950s and 60s Major changes in the dairy policy (Operation Flood) Linking-up rural producers with the urban consumers
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Large public investment in milk processing sector through cooperatives Growth rate of agriculture is stagnant, below 2%, livestock sector growth rate is more than 4.5% In this phase The National Dairy Development Board was designated by the Government of India as the implementing agency. The major objective was to provide an assured market round the year to the rural milk producers and to establish linkage between rural milk production and urban market through modern technology and professional management. As a result milk production grew w from 21 million tonnes in 1970 to nearly 69 million tonnes in 1996. The compounded growth rate was 4.5%.around ten million farmers were enrolled as members in about 73000 milk cooperative societies. By 1996, milk cooperatives attained a dominating share of the Indian dairy market - butter 96%, pasteurized liquid milk over 90%, milk powder 59% and processed cheese 85%.it was reintroduced in 1991 after liberalization its production has increased to 100 billion in 2001. The dairy cooperative movement has continued to grow in the post Operation Flood-era. Dairy market in India is quite huge and according to an estimate the unorganized milk and milk product market is about Rs 470 billion while the market for processed organized dairy segment is an impressive level of processing i.e. 22% in organized sector. The dairy exports in 200708 rose to US$ 210.5 million against US$ 113.57 last fiscal, whereas the domestic dairy sector is slated to cross US$ 108 billion in revenues by 2011.
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only Rs 10000 crores. The market is currently growing at round 5% pa in volume terms. There is
Organization profile
The Co-operative Milk Society located at Akathethara, Palakkad, Kerala channelizes marketable surplus milk from rural areas to urban deficit areas. It assures maximum returns to the producer and quality milk products to the consumers. And thus provides constant market and stable price to the dairy farmers for their produce. It is associated with Dairy development Board, Milma, Government of Kerala and the KLD Board. The Akathethara cooperative milk society is formed by the joining together of three Panchayats. The milk societies of Kerala are classified into eight based on the annual turnover, profit and milk production. The society with an annual production of more than 9 lakh litres of milk, sales of Rs
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26,761,387, profit of Rs 3,430,764 [1] and a member ship of more than 200 comes under the 3rd class of cooperative milk societies. Nature of work The major work of milk society is the collection and distribution of milk. The society has milk vendors who go out for collection of milk from the members. The 18 vendors cover the 2200 members of the society. The day starts at 5.00 AM for a vendor. The milk is collected and distributed simultaneously. If excess milk is available, it is brought back to the society and stored in the chilling plant. The major customers of the society include hotels, college and school hostels in the panchayat. These major customers consume around 2000 litres of the total production of 2800 litres of milk per day. The society buys milk at the rate of Rs 23.30 per litre and sells it at the rate of Rs. 28 per litre. The objectives of the organization [1] is as follows
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To promote self reliance, co-operation, business mentality among the members of the organization
To help members procure and take care of good breed of cattle To sell the milk and milk products produced by its members. To buy or rent machinery and equipment required to store and handle milk and milk products which are helpful to its members.
To buy building, land and other requirements for the society. To work with milk unions, Kerala Livelistock Development and Milk marketing department for the betterment of the society.
To assist members of the society to get loans from banks and subsidies from government.
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To construct cattle shed and help members construct it in proper manner. To do things necessary to increase health, quality of the breed of the cattle and to adopt methods to produce pure milk.
Size
To increase the milk producing capability of each and every cattle. To implement ways to achieve the above objectives.
The Akathethara milk society has 2200 members and around 35 employees contributing to its smooth functioning. The employees include the 9 member director board, office staff and milk vendors. The members are the ones who supply milk to the society. Organization Structure [1] The society is run by the director board and is assisted by the staff headed by the Secretary The members of the director board are selected from those members of the society who are able to supply more than 500 litres of milk in a period of six months. Once the director board is selected,
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the President and Vice President of the society are selected from them. The hierarchy of the organization is as below. Director Board
Secretary
Senior Clerk
Junior Clerk
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Lab Assistant
Procurement Asst
Cleaner
Employee Profile [1] The responsibilities of the important posts in the organizations above hierarchy like President and Secretary is as below. President
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To ensure that the decisions of the society are executed through the secretary To monitor day-to-day activities of the societys secretary To verify day-to-day financial transactions of the society To make a statement of the assets of the organization once in three months. To handle the responsibilities of the Secretary in his/her absence. To make a review report of the performance of the society once in three months. To co-ordinate with various government departments and enact their suggestions and recommendations.
To take punishment against employees if there is an malpractices from their side. To review complaints about the society and take the necessary corrective action.
Secretary All transaction of the society will be in the name of the secretary.
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To keep a minutes of every General body meeting of the society. To make the profit and loss statement of the society towards the end of one month and get the approval of the director board.
Will be responsible for all financial transactions of the society. To keep bills, receipts, vouchers for the transactions done. To safely manage the asset information, unused bills and receipts of the society.
Growth over the years The society was started in 1965 with 30 members with milk being sold at 90 ps per litre. By 1987 the society was able to achieve daily milk production rate of 800 litres. The society has seen a moderate growth in the past few years in terms of milk production (2800 litres per day), membership and profit [2]. The milk collected from the panchayats like Malampuzha, Akathethara is sold in other panchayats like Puthuparaiyaram and municipality areas like Kalpathy, Chathapuram, Ambikapuram, supplied with milk from this society [2]. The growth of the society in terms of members and profit [4] is summarized for last three years as below. Growth Profit (Rs.) Members 2008 29,79,584 2105 2009 35,23,806 2131 2010 34,30,764 2169
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Olavakkode, Puthur. In addition to this stalls at railways stations, hotels and hostels are also
Current Strategic focus The focus is to increase the sales. The Lab assistant who takes care of the marketing efforts of the society visits newly constructed flats, hotels, hostels etc and promotes the milk of the society. The
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aim is to increase the sales and at the same time the production. The targeted milk production rate is 3000 litre per day. To achieve this target, society focuses on increasing the number of cows by assisting the securing loans, subsidies and grants. Issues 1. The demand supply gap- There is an increase in demand for the milk from the society. But because of the lower production rate of milk, the society is not able to meet the need.
2. Low growth rate of membership- The NREGA program which is very popular in the
panchayat has made some of the members to quit the society. Compared to the feeding cows and selling milk, they find the jobs from NREGA more attractive. The challenge in front of the society is to bring these members back to the fold.
improvement and advancement of employees is a vital part of an organizations long-term success, but not every company does so. The problem, like most, involves time and resources. Even large, busy human resources departments can be overwhelmed with just the hiring piece of this puzzle, and smaller departments simply don't have the personnel to dedicate to full-time employee development. The Akathethara Milk Society in Kerala doesnt have specific HR department but the roles of the HR are performed by either the Director of the Board or the Secretary.
The Director of the Governing Board is in charge of the recruitment and so he outlines the
goals for the current year. The plan outline will include the goals to be accomplished in the next year and also the employee succession plan. Succession planning outlines the employees current role in the organization, and how that role is tied to organization goals and where the employee might advance from there.
The Director also decides on the budget for employee development and training. The role of the Secretary is to run the day to day activities of the Cooperative Milk Society.
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Recruitment Practices:
The village milk co-operative is a society of primary producers formed under the guidance of a supervisor or milk supply officer of the Co-operative Dairy Union. A milk producer becomes a member by buying shares from the co-operative society and agreeing to sell milk only to the society. Co-op members elect a managing committee and a chairperson responsible for the recruitment of staff to manage the day-to-day operations of the society. The Co-operative societies are classified into eight based on their turnover, annual profit and milk produced. The staff pattern in each society varies depending on the class to which they belong. The following positions were there in Akathethara milk Society as it belonged to class 3 1. Secretary 2. Junior Clerk 3. Lab Assistant 4. Procurement Asst 5. Cleaner The recruitment practices for above positions are as below. 1. Secretary: Minimum Qualification: SSLC Should have undergone training from a recognized Co-operative Training Institute authorized by the Government. Preference will be given to people who have completed Dairy Training. Should be a resident of the respective Panchayat/Ward to which the Co-operative Society belongs. Maximum Age Limit 35 years.
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2. Junior Clerk:
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Minimum Qualification: SSLC Should have undergone training from a recognized Co-operative Training Institute authorized by the Government. Should have undergone training in Book Keeping/Co-operative Auditing. Should be a resident of the respective Panchayat/Ward to which the Co-operative Society belongs. Maximum Age Limit 35 years.
3. Lab Assistant: Minimum Qualification: SSLC Should have undergone training from a recognized Co-operative Training Institute authorized by the Government.
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Should be a resident of the respective Panchayat/Ward to which the Co-operative Society belongs.
4. Procurement Assistant: Minimum Qualification: SSLC Should have undergone training from a recognized Co-operative Training Institute authorized by the Government. Should be a resident of the respective Panchayat/Ward to which the Co-operative Society belongs. Maximum Age Limit 35 years.
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Should be a resident of the respective Panchayat/Ward to which the Co-operative Society belongs.
Selection Procedures:
Attention should be given to selection of the right candidate at the right place. Recruitment and selection systems should be open focusing on better match between the requirements of the organization and the individual needs of the employees. The following are the selection procedures followed at Akathethara Milk Society: The candidates are initially shortlisted based on the above mentioned eligibility requirements and then these candidates are interviewed by the Director of the Governing Board of the Milk Society. In the case of Milk Distributors, there will be a background check done to evaluate their integrity and honesty.
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Sl. No.
Category
Classification according to Staff Pattern Annual milk Purchase, (Schedule II) Annual turnover And trade profit. Designation (Schedule 1)
A.M.P A.T A.T.P
Pay scale
No. of post
(Schedule III)
1 1 3 2 4 1 1 13 1 1 2 2 3 1 1 11 1 1 1 3
Above 36,50,00 0
Above 40 lakhs
Total Secretary
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Above
Above
Senior clerk
8675-17075 6825-11575
Junior clerk 20lakhs and up Lab assistant to Procurement 40 assistant lakhs Attender/peon Cleaner Total
5475-8675
4375-7075 3700-6025 3175-4950 3000-4350
Above
Secretary
15 lakh Junior clerk and Lab assistant upto 20 lakh. Procurement assistant
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Cleaner 1 Total 4 Primary Class 4 dairy cooperative milk societies. Above 547501 lts and upto 912500 Above 100 lakh and upto 150 lakh Above Secretary 7 1 1 1 2
4950 3000-4350
10 lakh Junior clerk and Lab assistant upto 15 lakh. Procurement assistant Cleaner Total
1 6 1 1 2
3000-4350
Above
Secretary
8 lakh Lab assistant and Procurement upto 10 assistant lakh. Cleaner Total
1 5 1 1 1
3000-4350
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Above
Secretary
3 1 1 3075-4800 3000-4350
Above
Secretary
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1 1
Total
Employee Provident Fund: 12% of the salary goes to EPF. LIC Insurance benefits Welfare Fund for sudden death and other emergencies upto Rs. 1 lakh. Pension Rs.300 Rs.400 per month Cremation Fund Employee State Insurance (ESI) members will be referred to hospitals and all the payments will be reimbursed.
Appraisal Methods:
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Performance Appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the weaknesses and strengths as well as opportunities for improvement and skills development. There are different types of Appraisal methods widely practiced in the industry. But in the case of the Akathethara Milk Society, there are no proper appraisal methods to evaluate and measure the performance of the members.
Best Milk Supplier: This award is usually given to the household which supplies the maximum quantity of milk during a year. This award is given by the milk society.
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Districts Best Cooperative Milk Society: This award is given by the Dairy Development Board to the Best Cooperative Milk Society in the District.
Blocks Best Cooperative Milk Society: This award is given by the Dairy Development Board to the Best Cooperative Milk Society in the Block.
In addition to all these awards, the following benefits are also provided for all the members: Each member of the Cooperative Milk Society is given a gift during the festival season. Scholarships and rewards are also given to the members children for securing top mark in the SSLC exam.
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Secretary
Clerk
Lab Assistant
Procurement assistant
Cleaner Whenever a vacancy comes in the higher order, a promotion happens. The promotion can happen in the particular society and not between societies.
Training
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Methods used to assess training needs Training is provided to employees as per their request. Employees come up with that request when new machinery is added or new systems are implemented in their area of work. The need is conveyed to Dairy Development Board and the training is provided at the Dairy Technology Centre in Alathur, a nearby place. Other than these requested training, DTC offers one week training for each class of employees of milk societies. The training topic is selected by the DDB. Training Methodologies The training offered at DTC, an institution giving courses on co-operative societies, is based on lectures by professors. There are discussions in the class involving the participants. The machinery available in the institute is also utilized for training
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Training Evaluation Systems As of now milk societies have not implemented such systems. But plans to have such systems is in the process.
HRIS in Use: The Akathethara milk society doesnt maintain any information systems.
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In the case of Akathethara Cooperative Milk Society, there are no such Participation and Empowerment schemes for the employees.
This scenario has not made the society think about any retention methods. The society organizes study tours for its members and employees once in every year. Marriages, festivals and other social gatherings are seen as ways to improve employee engagement.
Payment of remuneration at equal rates to men and women workers and other matters Duty of employer to pay equal remuneration to men and women workers for same work or work of similar nature. No discrimination to be made while recruiting men and women workers.
The minimum wages act, 1948 An Act to provide for fixing minimum rates of wages in certain employments.
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The trade unions act, 1926 An Act to provide for the registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions.
lagging in these aspects of business as it has not adopted proper training systems for its employees.
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References
1. Rule Book of the Milk Producers Co-operative Society, Kerala. 2. Annual report of the Akatherthara Milk Society. 3. Guidelines for the revision of Salary of employees of Kerala State Co-operative Societies. 4. Profit and Loss statement of the Akathethara Milk Society. 5. Train-srv.manipalu.com/wpress/?p=140801 6. http://business.mapsofindia.com/milk-co-operatives/
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