Professional Documents
Culture Documents
2 ACKNOWLEGEMENT 3
3 PART – A 6
INTRODUCTION
4 COMPANY PROFILE 9
5 MARKETING MANAGEMENT 20
9 FINANCE MANAGEMENT 52
PART – B
11 BIBILOGRAPHY 71
1
Executive summary
AMUL is a co-operative sector. It is the institution of the farmers, for the farmers and
from the farmers. The AMUL gives pleasure to the farmer to charge the own price, which
was not possible in earlier years. This union was born on 14th December 1946. The union
provides facilities to its members like more return, satisfactory price, insemination, first
aid, group Insurance, cattle food at confessional price etc.
I have done case analysis on HRIS of AMUL and from that I have come to know how
organization operates and how the functions have been carried in the organization . From
this is case I have come to know how a wide organization like AMUL manages its
Human resource .
AMUL dairy has five main departments like finance, personnel, commercial, milk
procurement and production. The finance department does the clerical work and takes
care of inflow and outflows of the cash. The other work of finance Department is to audit
of annual work.
The personnel department handles the work regarding personnel like appointment,
recruitment, promotion, transfer, dismissal, demotion, performance appraisal etc.
2
PART - A
ORGANSATION PROFILE
3
4
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.
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 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.
5
ORGANIZATION PROFILE
6
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
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.
7
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 1940’s 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.
8
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
became difficult to preserve milk for a longer period. Besides when the milk was to be
9
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 India’s 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 Union’s 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.
10
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
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.
11
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.
12
ORGANISATION STRUCTURE OF AMUL
Board of Director
CHAIRMAN
MANAGING CHAIRMAN
GENERAL MANAGER
MANAGER
DEPUTY MANAGER
ASSISTANT MANAGER
SENIOR EXECUTIVE
SENIOR OFFICER
SENIOR ASSITANT
WORKERS
Grade ( Ato E)
.
13
14
INTRODUCTION – MARKETING MANAGEMENT
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
15
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.
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
16
Cheese range
Amul Malai panner ( cottage cheese)
Amul pasteurized processed cheese
Amul pizza cheese
Amul Emmiatial cheese
Pure ghee
Amul pure ghee
Amul cow ghee
Sagar pure ghee
Curd products
Yogi sweetened flavored dahi
Amul Lassee
Amul masti Dahi
Price :-
17
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
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
18
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 India’s 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 India’s
largest food products Marketing Organization . It is a state level apex body of milk co-
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
19
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
20
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 .
21
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 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.
22
Organization Structure
Managing Director
General Manager
A.M. Technicians
(Eng.)
Eng. Workers
Officers
Technicians
Eng. Worker
23
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.
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.
24
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 .
Chain conveyer
Filter
Weighing
Standardization
25
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 section . there the temperature of cream is adjusted to the required churning
temperature of continuous Butter Making Machine.
Pasteurizer (90 to 95 C )
Cooling (8-9 C)
Ageing(8-9 C/ 24hours)
26
PHE ( for temperature adjustment at 6-8 C)
15 kg packing
Blending
( 25-30 rpm
&vacuum )
export
ghee butter section
packaging lines
9.1g blister pack 100g refill pack 100g refill pack 400tin
(Army)
27
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
Process Flow chart ( F-35)
Balance tank
preHeater
calendria 1st ( 77 c)
calendria 2A &2B ( 72 c)
calendria 3 ( 70 c)
calendria 4A & 4B
28
calendria 5 ( 58 c)
finisher
Atmospheric air
Concentrate tank
Air filter
Atomizer ( nozzle)
29
OPERATION DETAIL
PRODUCT USE AND CHARACTERISTICS
MILK
One of the most versatile food consumed by us. All children start their with mother’s
milk and continue to use it in one other throughout their life. It is the secretion from the
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 is made up from milk, milk products, sugar, stabilizers and emulsifiers.
Composition
Flavors
30
Packaging
50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice candies,
Cones and Kulfies .
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.
31
2 . Pasteurization:- Pasteurization is the process that purifies milk and helps it stay
fresher, longer. Milk is pasteurized by heating it to 72°C for 16 seconds then
quickly cooling it to 4°C. Pasteurization is named after Louis Pasteur, the famous
scientist.
32
5.Storing:- Milk is delivered to grocery stores, convenience stores and restaurants in
refrigerated trucks that keep milk cooled to 1° - 4°C. 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.
33
Supply chain management of AMUL
SUPPLIERS
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 .
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,
34
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 .
35
MILK PROCESSING BLOCK
36
SUPPLY CHAIN EXPLANATION WITH DIAGRAME
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.
37
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.
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.
38
HUMAN RESOURCE DEPARTMENT
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
Manager 48
Assistant 101
Officers 180
Workers 846
Total 1175
39
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
40
Organization structure
Managing Director
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:
41
Campus Interview
Unsolicited Application
Application Blank
Placement Agencies
42
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
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
43
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.
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
1 year Managers
3 year Officers
1 year Workers
Manager’s 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
45
Satisfactory
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
46
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.
Outsourcing operations if the firm’s 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.
47
Objective of Working Capital Management:
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 firm’s 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 firm’s profitability on operating capital.
48
COMPONENTS OF WORKING MANAGEMENT
49
PART – 2
STUDY ON HUMAN RESOURCE INFORMATION SYSTEM
OF
50
STUDY OBJECTIVES :
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 .
HRIS
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.
51
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.
52
Employee Leave Information including(Leave available , leave availed,)
Employee confidential report information
Employee Training information
EFFECTIVENESS OF HRIS
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.
53
Specificity: Even where it is not possible to quantify the information, the information
should be made as specific as possible.
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 today’s 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
Convenience: In IT enabled systems, data entry, update and retrieval are all
significantly faster. Redundant data may be easily replaced.
54
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 up-
dating 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
organization’s unique needs.
55
HR PLANNING
HR PLANNING
AND ANALYSIS
AND ANALYSIS
EQUAL
EQUAL
EMPLOYMENT
EMPLOYMENT STAFFING
STAFFING
HRIS
HRIS
EMPLOYEES
EMPLOYEESAND
AND COMPENSATIONS
COMPENSATIONS
LABOUR
LABOUR AND BENEFIT
AND BENEFIT
RELATIONS
RELATIONS
HEALTH
HEALTHAND
AND
SECURITY
SECURITY DATABASE
DATABASE
56
A CASE STUDY OF HUMAN RESOURCE INFORMATION
SYSTEM AT AMUL
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
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
3. Succession planning
4. Attendance reporting
5. Accident reporting .
57
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 .
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.
Career planning - System must be able to provide with succession plans reports to
identify which employee have been earmarked for which position.
58
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.
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
59
Advertisement
Receiving of application
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 the candidate is selected for the
particular job , the role of HRIS starts by keeping different types of records of an
employee such as
a) Personal details
b) Previous organization details
c) Training details
d) Service records
e) Joining details
f) Retirement details
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
60
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 ,
BIBILOGRAPHY
WWW.amul.co.in
WWW.GOOGLE.COM
61
HUMAN RESOURCE MANAGEMENT – ASHWATHAPPA
62