A

“SUMMER TRAINING REPORT”

At

KAIRA DISTRICT CO-OPERATIVE MILK PRODUCER’S UNION LIMITED

(AMUL), ANAND
BY

PATEL MANOJ. J

GUIDE BY

MR. KAMAL CHAKRAVATI

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR MASTER OF BUSINESS ADMINISTRATION

OF

GUJARAT TECHNOLOGICAL UNIVERSITY,AHMEDABAD

COLLEGE

SWAMI GHANSHYAM JIVANDASHJI INSTITUTE OF MANAGEMENT AND IT

KODAYPOOL-MANDVI(KUTCHH)

YEAR

2009-2011

1
2
 PREFACE

The India makes high progress on industrial levels. Due to liberalization and
globalization industrial and business opportunities are increasing. So to achieve this
opportunities demand of competitive management and skilled manager are also being
increased. MBA Program is very well for this necessity. Because it is well structure and
integrated course of management studies. In MBA practical knowledge is as necessary
as theoretical knowledge.

Today in the age of globalization where cutthroat competition is prevailing in the

market, theoretical knowledge is not enough beside on this practical knowledge gives
experience and presents the true picture of theoretical knowledge.

As a part of the program of MBA syllables I choose AMUL Dairy for project
training purpose because. Its milk products are famous in India and across the country.
Its management, administration, co-operation with societies and employees and price
policy are very well and famous. Amul is a well-known name in the milk products and it
is Asia’ no 1 and world’s second number co-operative unit.

During my project training I visited different departments of Amul such as an

administration department, production department, stores, finance and account
department HR department etc..

Visiting AMUL is very interesting and one of the finest experience during my
study.

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 ACKNOWLEDGEMENT

At the first I would like to give my heartily thank to Mr. J. K. Joshi [A.m.] who
permitted me for training at AMUL. I am very thankful to Mr. Jignesh Bhoe (Training in
charge) who help me in my any problems during from beginning to end of the training.
He helps me to visit each and every department of AMUL. I am also obliged to all the
departmental officials who gave me the co-operation and showed more interest in us to
teach them.

I am very thankful to GUJARAT TECHNOLOGICAL UNIVERSITY and our

college for organizing such training program for the experience of practical work
situation.

At last I would thank all staff members and management trainees of Amul who
gave us their important time and knowledge.

4
 CONTENTS

Page No.
PRTICLARS
(1) The Introduction 8
(2) The History of Amul 9
(3) Turing point of Amul 11
(4) Amul introduction 14
(5) Symbol of Amul 15
(6) The Organization 16
- Organization Structure
18
- Level of Management
- Eye Catching features of Amul
(7) The Production Department
19
- Introduction
- Function
- Product transfer storage & disposal
20
- Storage Management
21
- Production capacity of Amul
25
- Products
26
- Manufacturing Process
29
- Milk collection cycle
30
- Amul production
(8) The Marketing Management 31
- Introduction
- Organization Structure
- Product
- Pricing Policy
- Channel of Distribution
33
- Promotion
34
- Marketing Research

5
 - Sales force Training 35
- Marketing Segmentation
43
- Current Scenario of GCMMF
44

(9) The Finance Department 45

- Introduction
47
- Organization Structure
- Function of Finance Department 49
- Capital Budgeting & Capitalization
5
- Capital structure of Amul
0
- Source of Capital
Financial Supporter of Unit The
(10) Human Resource Management
51
- Introduction
- Organization Structure 52
- Recruitment, Selection and Induction of Amul 63
- Training & Development
74
- Promotion & Transfer Policy
85
- Wage And Salary Administration
86
- Time keeping
96
- Industrial relation
97
- Service Provide by Amul
100
- SWOT Analysis
103
(11) BIBLIOGRAPHY

6
 INTRODUCTION
India is a country connected with agricultural and cattle rearing from ancient time nearly
more than 70 % on agriculture and cattle rearing. So dairy industry is the best suited for the
growth of India. And Indian people prefer more milk and milk products than any other food. Due
to liberalization, globalization inexpensive, labor, large market and democracy India has best
opportunity for dairy industry.

The full form of Amul is Anand Milk Union Limited that is the brand name of Kaira District
Co-operative milk producers union Ltd. for its product range since 1955.

Amul is Asia’s no. 1 and world’s second number co-operative dairy. It has large market
and dairy network in every state of India and across the India, like central Asian countries,
Bangladesh, Thailand, Indonesia, Malaysia Singapore, etc. It was started 250 litters milk and 2
societies and Now. It produces 9 lakes litter milk per day and has 1084 societies and more than
6 lakes farmer members. It produces more than fifteen types’ milk and milk products.

Amul was started with little machinery and now all the production of Amul are produced
by latest fashioned machineries. Which run by computer system?

Amul has completed 59 year and entered in 63rd year on 14 December 2010.

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 HISTORY OF AMUL

Amul was started from the Milk strike by farmers of Kaira District. A farmer of
Kaira District was earned from the seasonal crops and milk. The income from Milk was
very law. The main buyers were milk traders of Polson Ltd. a private owned dairy. They
give les price and exploited them. This position did not change till 1946.

When exploitation becomes intolerable the farmers were baffled and they
appealed to Shri Sardar Vallabhai Patel (A leader of freedom movement). He sent to his
trusted assistant. Shri. Morarji Desai for the help to farmers. So under the advised of
Shri Sardar Patel He arranged a meeting of farmers at Samarkha Village they decided in
meeting that to organize co-operative Milk societies in every village, to collect milk from
milk producers and to distribute directly to Bombay Milk Scheme and the Government
should asked to by Milk from the union.

When the government did not see the demand of farmers. They went on a strike
still 15 days and milk was not sold. So Bombay milk was badly affected. The Bombay
high commissioner visited Anand and agreed to the unions demand.

Thus co-operative unions were formed at village and district level on the co-
operative basis. In initial stage, only 250 litters milk was collected and two societies were
being worked in Gopalpura and Hadgud, Village under the leadership of Shri
Tribhuvandas Patel. He led farmers for joining the co-operative union at village level.
Kaira District Co-operative producers union was thus established in Anand and was
registered firmly by farmers union on 14th December 1946.

8
 In initial stage there were no chilling center and pasteurization facilities but
after made some progress. Pasteurizer and other Milk facilities were brought. Having
acquired adequate milk facilities union started organizing more societies.

As a result more milk was collected by the union, which was not accepted by the
Bombay Milk scheme. In this situation union started to distribute liquid milk in Anand to
who and some other village but it was not enough to dispose all milk procured.

To meet the challenge of every increasing quantity of milk it was decider. Modern
milk dairy with facilities of manufacturing milk powder, butter, etc. be set up for this with
the help of the Government of BOMBAY, UNICEF and the Government of Newzealand.
The foundation stone of is dairy was laid by the president of India Dr. Rajendra Prasad
on 15-11-1954 and was inaugurated by the Prime Minister Shri Jawaharlal Nehru on 31st
October 1955.

All the products of the union were put into the market under the brand name of
AMUL. This became a household name in the country and outside the country. Amul is
derived the Sanskrit word “Amulya” which means “Priceless” or “Precious”.

TURNING POINT

• 1929  Shri Pestanji Edalji Dalal started polson dairy

•1945  Government of Bombay established Bombay Milk scheme.

9
• 1946  Meeting of Kaira District farmers was arranged by Shri M. Desai to
organize co-operative society for milk.

• 1946  Union gets registed (certificate no. p.330/1946)

• 1954  Foundation stone laying ceremony was perfomed by Dr. Rajendra Prasad, the
President of India.

• 1954  Opening ceremony the dairy was performed by Prime minister of India Shri
Jawaharlal Nehru.

• 1964  Cattle feed factory was started at Kanjari Village.

• 1973  Production of high protein food and chocolate started at Mogar Complex.

• 1976  Production of Nutramul started at Mogar.

• 1981  Second plant of cattle food factory started at Kanjari.

• 1992  The foundation stone of the New Dairy Plant (Amul – 3) was laid by Dr. V.
Kurien the chairman of National Dairy Development board

• 1994  The new cheese plant was established at Khatraj and chocolates plant
established at Mogor with the help of NDDB

• 2001  Amul Launch the new flavoured milk. This flavoured milk available in four
Different tests.

10
• 2003  For expanding the market Amul launch the “Snowball” pizza and flavoured
Lassie.

• 2004  Amul has started the new satellite dairy at Pune and Calcutta.

INTRODUCTION

Amul means “Priceless” in Sanskrit. The Brand name “Amul” is from

the Sanskrit word “Amulya,” was suggested by a quality control expert in Anand.

11
 Priceless

 Invaluable

 Precious

It means one cannot measure it’s value.

One finds similar sounding words with the same meaning in several
Indian languages. The value system of KDCMPL was to be in co-operative to
become “priceless” for millions of farmers.

Amul today is a leading food brand in India, had turnover of Rs.

7500 crores for the year 2008-2009

Amul today is a symbol of many things of high quality products sold at

reasonable prices; of the genesis of a vast Co-operative network; of the triumph
of indigenous technology; of the marketing savvy of a farmers’ organization and
of a proven model for dairy development

12
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.

13
  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.

MISSON & VISION OF AMUL

MISSON OF AMUL

 The main mission 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 aim of Amul is to provide quality products to the consumer at minimum
cost.
 The goal of Amul is to provide maximum profit in terms of money to the farmers.

VISION OF AMUL

 Vision of Amul was to provide and vanish the problems of farmers (milk
producers) of their livelihood.
 The Amul’s apparition was to run the organization with the co-operation of four
HANDS which are - the farmers, the representatives, the marketers and the customers.

ORGANISATION PROFILE

14
 Name : “KAIRA DISTRICT COOPERATIVE MILK
PRODUCERS’ UNION LIMITED”, ANAND
known as “AMUL” (Anand Milk Union Ltd.)

Form : Co-operative sector registered under the Co-

operative Society act.

Location: Amul Dairy,

Station Road, Amul Dairy road,
Anand, -Gujarat.
India.

Registration : 14th December 1946

Registered Office : “Kaira District Co-operative Milk Producer’s Union

Limited”, Anand-388 001

Bankers

Kaira District Central Co-operative Bank

 U.T.I. Bank
 State Bank of India

 Bank Of Baroda

 Bank Of Maharashtra

 Corporation Bank

Auditor: Special Auditors, Milk Union, Anand, Internal Auditor,

Government Auditor

Initial promoters:

15
  Shri Tribhuvandas K Patel & Shri Morarji Desai

 Shri Sardar Vallabhbhai Patel

 Shri Morarjibhai Desai

 Dr. Vargnese Kurien

Office time

10.45 am to 5.45 pm

Total no of suit

 Three shifts first 8.30 am to 4.30 pm

 Second 4.30 pm to 12.30 pm

 Third 12.30 pm to 8.30 am

Major Plants & Chilling Centers

 Dairy Plant, Anand

 Mogar Complex, Mogar
 Kheda Satellite Dairy, Khtaraj
 Cattle Feed Factory, Kanjari
 Cambay Satellite Dairy, Undel
 Chilling Centre, Balasinor
 Kapadwanj Chilling Center, Kapadwanj
 Amul Satellite Dairy, Pune
 Kolkata Unit, Kolkata

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 BOARD OF DIRECTORS

SHRI RAMSINH PRABHATSINH PARMAR CHAIRMAN

SHRI BHAIJIBHAI AMARSINGH ZALA DIRECTOR

SMT MADHUBEN DHARMSINGH PARMAR DIRECTOR

SHRI DHIRUBHAI AMARSINH CHAWDA DIRECTOR

SHRI PRAVINSINH FULSINH SOLANKI DIRECTOR

SHRI MANSINH KOHYABHAI CHAUHAN DIRECTOR

SHRI SHIVABHAI MAHIJIBHAI PARMAR DIRECTOR

SHRI RANJITBHAI KANTIBHAI PATEL DIRECTOR

SHRI CHANDUBHAI MAGHABHAI PARMAR DIRECTOR

SHRI Y. A. BLOCH SPECIAL AUDITOR

17
THE ORGANIZATION

Amul dairy is the union of co-operative societies. The co-operative societies are
generally operated for the betterment of consumer and providing qualitative products at
low and reasonable price. Amul is the successful co-operative unit in the dairy
industries. All the workers, managers, superintendents, technicians and societies
performed their job co-operatively. Today Amul is stayed at the top by their co-operative
efforts.

ORGANIZATION STRUCTURE

The systematic and well define organization structure plays a vital Role and
provide accurate information about authority and responsibility chairman & managing
director to superintendents and workers.

The organization structure of Amul is very clear and well arranged structure.

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 ORGANISATION STRUCTIRE

Chairman

Vice Chairman

Managing Director

General Manager (Dairy Plant & Technology)

Manager

Deputy Manager

Assistant Manager

Superintendent

Deputy Superintendent


19
 Senior Officer

Assistant

Junior Assistant

Workers

20
 LEVEL OF MANAGEMENT

Each Organization is made up of several levels. This could be classified

broadly in three categories. There are Top, Middle, and Junior Levels. Amul has also
three levels of Management.

Top – Strategic Planning

Middle – Management Control

Top Management:-

Top level develops strategy for deciding the objectives of organization

planning resource to be sassed in order to attain those objectives formulating policies to
govern, use and disposition of resources.

In Amul conceptual and human skill persons handle top management

activity. There are 19 persons at the top level.

Middle Management:-

It is required by managers of various departments to measure the

performance, decide on control actions, formulate new decision rules and also allocate
resources.

21
 In Amul there are 210 employees at middle level generally human skilled person
management level.

Junior Management:-

It is the process of ensuring that operational activities are carried out to achieve
optimum use of resources.

There are 1049 employees at this levels perform operational control. Generally
technicians, superintendents, workers Perform their functions at this level.

Eye Catching features of Amul

Milk Procurement

Milk procurement have reached to 2974 lakh kegs. I.e. 9 % rise in milk
procurement.

Production & sales

Union have received 7.6 % more milk than last year cheese production and sales
has grown the growth 23 %. Over the previous year powder production has increased 21
% the union produced over 1100 MT of chocolate and over 2800 MT nutramul. Cattle
feeds have produced is 4000 tons.

The union has achieved highest turnover of Rs. 709 crors during the year. Union has
achieved growth of 18 % this year.

Export

22
 Export market has grown by more than so nutramul, butter, ghee; Milk powder
and processed cheese have been exported. Amul products have also entered new
market at China, Hong Kong, Maldives and Mauritius.

Amul Research and Development Centers (ARDA)

ARDA was created for research and development activity. It provides Artificial
insemination facility and it also engage in improving animal health and production of live
stock.

Performance of Primacy Co-operative societies

1063 societies have equipped with electronic Milk tester, electronic weighting scales,
Automatic milk collection centers and working in fully computerized environment.

Dairy Demonstration Farm (DDF)

Union implemented dairy demonstration farm project in the year 2004. The
project has been encouraging the farmers to establish medium sized cattle holding
which consist of high yielding and animals and modern aids for higher production of milk.

Suvarna Jayanti gram SW arojgar yojna (SGSY)

This program raises the socio economic status of Rural farmers under this
scheme employment opportunities are created for unemployed rural people.

There are 850 village co-operative societies certified with ISO 9001 further 200
societies are acquitted by international agency recommend for certification.

Services offered by Amul

 Medical facilities for the cattle of farmer .

 Cattle feeding.
 Artificial insemination cattle breeding
 Free animal vaccination
 Farmer education program.

23
 In this matter of progress Amul has acquired a closed dairy in Puna and it is
activated. Amul has also started this type dairy in Calcutta. Both are producing and
selling liquid milks and their sales have crossed 2 lakh litters per day.

Amul is also being organized for starting new dairy in SIKKIM.

PRODUCTION DEPARTMENT

Introduction
Production Management is the process of planning, organizing, directing and
controlling. The functions of the production are transform input (Raw-materials) in to
finished good and services.

AMUL has three plant know as AMUL 1,2 and 3 all three plant work 24 hours a day
continuously all the manufacturing process is done automatically the production is done
in the special machines, this machines and technology are imported from.

Today three plant of AMUL perform different function.

AMUL – 1 presently it is use as a go down for storing raw materials.

24
 AMUL – 2 Today in this unit, the production process of Ghee and packings are running.

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

Production capacity of Amul

 Butter 50 to 60 Tones

 Powder plant 70 tones

 Powder plant 60 tones

 Flavour milk 40000 bottles

About Machinery

In AMUL – 3 production of powder, Butter and Milk are being done continuously.
These productions are done by latest machineries equipped with computer system and it
is handled by one technicians.

- The Milk pasteurizer machines belong to Alfa level company of Pune

- Powder plant machineries belong to L & T Larson and Turbo company of India

- Butter production machineries belong to S.G.company of switrzland and other

- Butter manufacturing production machineries belong to Simon Feres com.of

France

Repairs and Maintenance of Machine

In Amul maintenance of machines is done regularly at specific time gap.

Maintenance is as :-

 6 month to 1 year oil change

 Filter changing is days to 1 month
 Grieving according to part of machines like daily, weekly and monthly basis

25
  Belt replacement one and half year

Packing to Malted Milk products

 Powder products pouch packaging

 Milk in pouch packing, flavoured milk in pouch and tin

 Butter 200gm,500gm in box packing

 Ghee in plastic pouch and tin packing

Product Transfer, Storage and Disposal

The finished product is counted and transferred to designed store in consultation

with the charge. Dispatch instruction is issued by GCMMF for products sold to GCMMF.

Wasteful Disposal

In Amul wasteful disposal is very well managed. The west that comes out from the
production such as raw materials and finished west products etc. are reprocessed.

All the waste are gained mad a raw material again for reuse of them as a production
to become a final product.

Store Management

In Amul raw material and finished goods are properly stored in a separate store
room. There is a cold storage facilities perishables products. Every incoming or out
going. Of finished products are recorded in the register and buffer stock is also stored in
the store room

Amul has a specified laboratory in which all testing of each and every products are
made and its quality is also checked.

 AMUL products

26
  Amul has large variety of products in the market.

 Today Amul produces more than 15 types of products. The product manufacture by
AMUL are

PRODUCTS PRODUCT RANGES

(1) Milk (7)

(2) In fat Milk

(3) Milk drink & health beverage

(4) Brown Beverage

(5) Milk Powder (5)

(6) Babu food

(7) Cheese (8)

(9) Butter

(10) Ghee (3)

(11) Mithaee Range (6)

(12) Bread Spreads (3)

(13) Chocolate (2)

(14) Ice Cream (6)

(15) Shrikhand (3)

(16) Dan (Cattle feed)

Industrial Product

(1) Coco powder

(2) Coco butter
(3) Coco mass
(4) Cream

27
 Manufacturing Process

For the manufacturing of process milk, Milk is brought from 1084 village societies
through tankers and trucks. Since several no. of chilling centers are allotted to the main
pointed villages for to procure milk. The trucks or tankers have the capsules and milk is
collected in its for.

Milk is received first at milk receiving dock while milk is brought to Amul. Its
temperature is generally 8 to 9 degree Celsius. So milk is pasteurized it is heated at 70
to 90 degree killing germs and bacteria from milk. This is the pasteurization process.
Then the milk is chilled at 3 to 4 degree Celsius to protect the milk from getting spoiled.
Then Milk is stored in containers. Amul has 8 containers having the capacity of
maintaining 1.5 lakh litters of milk each.

The process milk is used for producing milk products like butter, powder, creams
etc. and surplus milk is sent to village and cities in 500 gram packing for sale. There is
pouch machine for fulfilling this purpose milk is supplied to all the metro politation cities it
is also sent to Mumbai, Delhi, Pune and Kolkata by trains.

The manufacturing process for several products.

Butter: -

The raw milk is weighted and poured into cream separator. Pure fat or cream
gets separated from milk. Then the color is added in them and make butter. The
processing of butter takes 7 minutes. Almost 30 tons of is packed each day. This is
continuous process. Butter is then move a on the conveyer belt to pack it in 100 to 500
grams packing then butter packet are automatically moved into a box. All this process is
runner by only one technician.

Ghee: -

Sour milk is used for the production of ghee cream machines and butter is
heated to make ghee. It is packed in this or plastic bags of 1,2,3,4 and is k.g..

Milk powder:-

Standardized milk is first of heats under vacuum and extra water of milk
removed from condensed milk. This process is done in three angles shaped machine
when milk is heated the milk takes the form of drops. Then these drops are sprayed. So

28
that they become solid in powder form this powder is then packed through the automatic
packing machines.

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.

Butter Packing Section Anand

29
Cheese Plant Khatraj

Chocolate Plant Mogar

30
 Organization Structure

Managing Director

General Manager

Dairy Plant Asset. G. M.

Manager Manager Officer A.M.

(Production) (Eng.) (Eng.)

Dy. Manager Workers Officers

(Eng.)

A.M. Technicians

(Eng.)

Eng. Workers

Officers

31
 Technicians

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. Here I am presenting the stages of milk collection cycle of Amul
dairy as under.

Amul Products

32
Amul Products

33
34
Amul Products

35
Amul Products

36
 MARKETING DEPARTMENTS

Introduction

Marketing is the vast term. It includes most of departments like H.R.M., Finance, and
Production, Purchase departments.

Marketing is second no of main part of Amul. According to Amul, marketing is

activity that concerned with direct flow of goods and services from the process of
exchange and distribution.

Gujarat Co-operative milk marketing federation (GCMMF) is performing all the

marketing activity foamed. Most of all product of Amul are being marketed by GCMMF
except for liquid milk.

GCMMF was established in 1972 by Dr. Vergase Kurien who was a chairman of
Amul.

Till 1965 all products were marketed by Amul but due to progress and increasing
demand a many problem emerged. It was necessary to create separate department.

Organization of Marketing Department

Director

Type of Organization

1. Functional organization

2. Geographic organization

37
 (1) Functional organization
Functional organization is most common form of Marketing Organization, which
refer to the Marketing activities of function.

Head of Marketing Department

Marketing Advertising Sales Marketing New Product

Administrative Sale Manager Research Manager

Manager Production Manager

Manager

(2) Geographic Organization

A company who sell their products all across the country offer uses these types of
organization. This allows all the people to settle in to territory and get to know their
customers and work minimum of traveling time and cost.

Head of Marketing Department

Marketing Advertising Sales Marketing New Product

Administrative Sales Manager Research Manager

38
Manager Production Manager

Manager Regional

Sale manager

Zone sale Manager

District sales Manager

Sale person

Product

At AMUL, GUJARAT CO OPERATIVE MILK MARKETING FEDERATION LIMITED

(GCMMF)“ does the product planning at national level. It is the duty of GCMMF to plan the new
product by conducting the market survey at the state and national level. However, issue of
product lunch at the local level is taken care of by Amul itself the new product decisions are
taken by the GCMMF.

 Price Policy
Price decision is important element of the marketing.

Since the marketing of Amul products are handled by GCMMF. Most of the price
of the products is decided by GCMMF. But the price of liquid milk and flavoured milk
are decided by Amul them sieves.

The G.C.M.M.F. considers all cost element like cost of milk, labour cost,
processing cost, packing cost, advertising cost, transportation cost, sales promotion cost
and taxes and set them in pricing structure to decide selling price of milk and milk
products.

39
 The price of Milk products are fixed by a programmed committee and members
of this committee are as follows

(1) Two members of federation

(2) Two members of Amul
(3) Two members of N.D.D.B.

 Supply to Army

Amul supplies butter and Nutramul to Army for this, Army officers came to the
factory and take samples of the supply products. If the product fit for the supply
consumption of goods are dispatched penalty is charged in the case of late delivery
95% of Nutramul going to sale to army and fund is also given to Amul before this
purchasing.

 Channel of Distribution

Federation markets Amul’s products but for milk selling it has adopted both kind
of distribution channel.

Selling of Amul products are also done by retailer’s stores as a distribution

channel. Amul has recently entered into direct retailing through “Amul utterly delicious”
parlours created in major cities in Ahmadabad, Delhi, Bombay, Haidrabad, and Surat.

 Sales Promotion

Sales Promotion is another way of promoting or increasing sales it include all thus
activities. Which is useful for increasing sales, it is special type of promotion activity
carried on in such a way to attract consumers for buying.

Sales promotion is carried out by

(1) Keeping better quality of products then the other products available in the market.
(2) Keeping less reasonable price
Sales promotion for the product other then milk is looked after by G.C.M.M.F.

40
 Advertising

There are five major decision in developing an advertising programmed knows as five
mission.

(1) Mission  What is the advertising objective?

(2) Money  How much can be spend?
(3) Message  What message should be send?
(4) Media  What media should be used?
(5) Measurement  How should result be evaluation?

“Amul” advertises its products in newspapers, radio, Television, Magazines,

Posters, Boards, Pamphlets, and T.V. etc. So that even ordinary people can get
information about the product and they can purchase it. Then have also contract with
advertising agency like mudra and succhna Bombay.

 Marketing research

‘Amul’ also come out marketing research activities in order to develop and
modernize its products Amul has its own large laboratory in which qualified people is
appointment and who carry out research activities. Latest machine and technology are
adopted. So that maximum consumer satisfaction can be activated later years Amul
launched Amul’s Lassie. Amul “carry” were launched was a result of marketing research.

 Sales force Training

In Amul newly joint person has to be sent in market for training in this training
the person trains about the sales system, distribution of the products and new market
system.

So in the marketing department this type of training is given to newly joint

persons.

 Marketing segmentation

41
 • At Amul, since the marketing activities are handled by the GCMMF, market
segmentation is also decided by GCMMF.

• The GCMMF determines the market size and market its product accordingly in
the market so that the product can be easily sold in the market.

• Generally milk and milk products like butter and cheese are popular in the all age
groups. Hence they are segmented at the national level.

• Milk products like chocolate and milk powder are segmented on the basis of age,
that is for children but they are also marketed at national level.

• The GCMMF conduct the market survey to know the demand for the products of
Amul in the market and emphasis on the demand of population in that particular
segment.

• The GCMMF has developed the marketing system, which takes care of such
issues.

The current scenario of GCMMF (Gujarat Cooperative Milk Marketing Federation) is as

below:

42
Member: 12 district cooperative milk
producers union

No. Of the producer members: 2.41 million

No. Of village societies: 11,615

Total Milk handling capacity: 7.4 million litters per day

Milk collection (Total – 2004-05): 2.08 billion litters

Milk collection (Daily Average 5.71 million litters

2004-05):

Milk Drying capacity: 511 metric Tons per day

Cattle feed manufacturing 2340 metric Tons per day

Capacity:

43
44
45
 FINANCE DEPARTMENT

Introduction

Financial management is that managerial activity which concern to planning and

controlling financial sources. Finance is common denominator the vast range of
corporate objective. The major part of any corporate plants must be expressed in
financial term.

Financial is regard as lifeblood of business organization. Effective management of

every business enterprise is largely depends on the effective management of finance.
Finance management is concerned with raising funds in the economic and suitable
manner and using these funds as profitable as possible.

Function of Finance

 Investment of long-term asset mix decision

 Financial or capital mix decision

 Divided or capital allocation decision

 Liquidity or short term asset mix decision

Objective of Finance

1. Profit maximization

2. Wealth maximization

46
 Organization Structure


Managing Director

General Manager

Assistant General Manager

Manager (A/C) Manager Finance

 

Officers Officers

 

Clerks Clerks

 

Peon Peon

47
 In Amul to handle the finance related matter there are several division.

• Payroll Division: - It handles employee related like leave assessment, employee

provided fund, super annuation, retirement, benefit.
• Milk bill division
• Esta A/c. Division
• Commercial Division  bill process, excise service
• Cattle feed purchase division
• Internal Audit
• Purchase division

Function of finance department

All the department of the organization strongly depends upon finance department to
carry on their department function efficiently. So it is the responsibility of the finance
department to manage finance function carefully with efficient finance management the
organization would success and it will failure if to manage finance inefficiently

In the financial department of Amul Accounting, financial data analyses, bills,

payroll of employees check for the payment, making vouchers are the main and routine
works. Budget is also being prepared on February every year by A.G.M, A.M.,
Accountants and other management staff. All the payment of societies is done on at list
monthly or weekly basis with UTI bank; financial data are collected from Amul plants like.
Khartaj, Mogar, Kanjri and also from Pune and Colcutta for financial data analyses and
its management. Annual reports of Amul are declared on 15 days before the Annual
conference. Since 1972 all the selling and distributing.

Capital Budgeting

Investment decisions of the firm are generally known as a capital budgeting decision.
Capital budgeting decision may be defined as units decision to invest its current funds
most efficiently in the long term assets in anticipation of on expected flow of Benefits
over a series of years.

48
 Purpose or Object of budget.

 To state firms goal in clear formal term to avoid confusion and to facilitate their
attainability.

 To communicate expectation to all concerned with the management of firm so

that they are understood, supported and implemented.

 To provide detail plan action for reducing uncertainty and for the proper direction
of individual and group effort to achieve goals.

 To coordinate the activities an efforts in such way that the use of resources is
maximized.

• To provide a means of measuring and controlling the performance of individuals and

units and to supply information on the basis of which the necessary corrective action can
be taken.

• In Amul capital budget is declared on February every years. Administration general

manager, chief accountants, or other financial staff members prepare it.

Financial Budget of 2009-10

Review of Budget

Particulars Milk Purchases Raw material

Particulars Revenue Revenue Difference

budget expenditure

Milk purchases 45000.00 46502.01 1502.01

Raw material 12100.00 10872.93 -1227.07

consumption

Processing 810.00 570.19 -239.81

expenses

Packing expenses 5850.00 5267.93 -582.07

49
Power &fuel 2500.00 2564.09 64.09

Sub total 21260.00 19275.14 -1984

Research 720.00 727.41 7.41

&development
expenses

Salary &wages & 1950.00 1860.45 -89.55

pf, staff benefits

Repairs 600.00 736.24 136.24

&maintenance
expenses

Freight 385.00 465.77 80.77

&forwarding
expenses

Marketing 150.00 97.62 -52.38

expenses

Post, printing 60.00 58.10 -1.90

&stationary

Insurance premium 70.00 76.10 6.10

Rent rates 30.00 47.10 17.01

Audit fees 100.00 82.96 -17.04

Administration 170.00 127.83 -42.17

expenses

Bank commission 1005.00 789.23 -215.77

&interest expenses

Depreciation 1500.00 1160.69 -339.31

50
 Sub-Total 6740.00 6229.41 -510.59

Total 73000.00 72006.56 -993.44

Particulars Capital Budget Capital Difference

Expenditure

lant & 1532.00 529.11 - 1022.89

Machinery

Building 138.00 64.84 - 73.16

Dead Stock 269.00 98.78 - 170.22

Vehicles 10.00 25.95 15.95

Computers 50.00 17.96 - 32.04

Cans 50.00 101.45 51.45

Live stock 5.00 1.16 - 3.84

Total 2054.00 839.25 - 1214.75

• The Milk purchase expenditures of Amul higher over the expected expenditure in almost
every year due to higher purchase price and milk difference.
• Power and fuel expenses are higher on account of higher furnace oil price.

51
• Freight and forward, Insurance, Rent rates and Taxes are higher due to developing other
branches and storage charges.
• Repair and maintenance expenses are higher for amount spent on increasing the
productivity, putting idle plant and machinery in operations and improving the condition
of exiting machines.

 Capitalization

In general sense the team ‘capitalization’ means the amount of capital employed
or invested in the business. It is the sum total of all long-term security issued company. It
include not only share capital but also reserve & surplus and long-term borrowing.

In Amul the components of capitalization are

(1) Share capital

Amul issues only ordinary shares and. It is not listed on stock exchange because it
is not for public but only for the members of societies.

(2) Reserve & surplus: -

Capital reserve as well as revenue reserves and surplus.

(3) Long term borrowing

Redeemable debenture, UTI bank long-term loan, UTI bank cash credit facilities,
short-term loan, and fixed deposits are included.

52
  So symbolically

 Capitalization= Share capital + Debentures + Reserve + Surplus + Long term

capital

 Share Capital = Equity Share Capital

And

 The type of Debenture is Redeemable debenture.

Source of Capital

Source of Capital of AMUL are following

 All the products are solved and distributed by Gujarat Co-operative milk
marketing federation (GCMMF).

 So federation gives them daily amount decided by union if selling of Amul

products will be happened or not.

Fix deposit of society is the major source of finance.

 Interest of fix deposit of bank like UTI, BOB, GEB Bond and Sardar Sarovar
Bond etc. are one of the sources of finance.

 Share capital of Amul, which is not listed in market because it is not for public. It
is only for the members of societies.

 Capital Structure of AMUL

The capital structure of a firm would generally denote the own capital and
borrowed capital. The capital structure indicates how the capital has been raised.

The figures of capital structure of 2009-2010 are given bellow.

53
 Authorized Share capital 2000

(2000000 Shares, each of Rs. 100)

Subscribed/Paid up capital 1599.81

Reserve funds and other funds 2154.60

Redeemable debentures 1162.93

The loans 5290.00

Net profit for the year 323.74

By looking above figures it seems that the ratio of the borrowed capital is higher
then the own capital. The net profit of the year is also very less. This is because Amul
distributes all his profit amongst its members.

Financial Supporters of the Unit

GCMMF: It provides daily amount or funds to Amul.

NDDB: National dairy development board provides 30 % grant under SGSY scheme
and 70 % loan at interest rate of 10 %. They also provide most of plant and machinery.

For to achieve capital expenses Amul gets short term and long-term loan with 8.30 % or
5.08 % from UTI

HUMAN RESOURCE DEPARTMENT

Introduction

54
 According to SCOOT CLOTHIER AND SPRIGGEL
Human resource management as the branch of management which
is responsible on a staff basis for concentrating on those aspects of
relationship of management to employees and employees to
employees and with the development of the individual and the group.
The objective is to attain maximum individual between employer and
employees and effective moulding of human resources as contrasted
with physical resources.

Personal (Human resource) management plays a very

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

Human resource department plays most important role in establishing

good relation and harmony among all.

55
Organization structure

Managing Director

General Manager

Assistant General Manager

Officers

Clerks

Peons

56
 TOTAL EMPLOYEES IN AMUL

AUTHORITY NO. OF EMPLOYEES/WORKERS

Manager 48

Assistant 101

Officers 180

Workers 846

Total 1175

57
  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

MAJOR FUNCTION OF HUMAN RESOURCE DEPATMENT

1. RECRUITMENT AND SELECTION

2. TRAINING AND DEVLOPMEN

3. PERFORMANCE APPRAISAL

4. SALARY AND WAGE ADMINISTION

5. EMPLOYEE TURNOVER

6. COMPENSATION

7. INDUSTRIAL RELATION

8. FACTORY ACT

9. INDUSTRIAL DISPUTE ACT

10. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

58
 RECRUITMENT AND SELECTION

“Recruitment forms the first stage in the process which continues with
selection and placement of the candidate.” In the word recruitment in the
generating of application for the specific position. The selection process starts
with the indent for recruitment by the department heads. Theas indents specify
the reason why recruitment is to be made theas Indent are sent to the personnel
department. Te personnel department Check the financial implication of the
recruitment to find out whether the Additional expanses would be within the
budgetary provisions if other Allowances were determined. It is positive action as
it involves inviting people to apply.

Recruitment has been regarded as the most important function because

the right of People are hired even the best plans and system would not do much
good.

1. Internal sources :-

Among the internal sources, the following may be Included

• Promotion

• Transfers

• Response of employees to notified vacancy.

2. External sources: -

Following are the some sources are Included

 Advertisement

59
  Employment exchang

 Campus recruitment

 Unsolicited Applications

 Labour contractor

 Employee referrals

 File

There are two types of recruitment sources followed by Amul ;

1. Internal Sources

2. External sources

1. Internal Sources:-

Internal sources include personnel already on the Payroll of san

organization filling vacancy from internal sources by promoting People has the
advantages of increasing the general level of moral of existing Employees to providing to
company more reliable information about the Candidate.

Following are included in this source:

1. Present Permanent Employees.

2. Employee Referrals.

3. Former Employees.

2. EXTERNAL SOURCES:-

60
 These sources lie outside the organization in Amul They
consider following sources for recruitment:-

A. Advertisement

B. Campus Interview

C. Employees Exchange

D. Employees Referrals

E. Unsolicited Application

F. Job Fairs

A. ADVERTISEMENT: -

For the recruitment, Amul consider this particular Source. They give
advertisement in newspaper and other newspaper for the Suitable post.

B. CAMPUS INTERVIEW :-

This is the second option that Amul consider. Recruitment are sent to educational
institution where they find suitable candidate. Go through this option. They have various
famous Institutions like IIM, IRMA and DAIRY SCIENCE COLLEGE FOR DAIRY
TECHNOCRATS.

61
 C. EMPLOYMENT EXCHANGE: -

An employment exchange is an officer set Up for bringing together as quickly as

possible candidates searching for. Employment and employees looking for prospective
employees.

D. EMPLOYEE REFERRALS :-

AMUL also considers this option for Recruitment. Friend and relatives of present
employees are also a good source From which employee may be drawn.

E. UNSOLICTION APPLICATION :-

Some candidates sent in their application Without any invitation from the organization.
A recruiter can use these unsolicited Applications for appointment as and when
vacancies arise. AMUL consider this Option also for recruitment.

F. JOB FAIRS :-

Job fairs are organized by District employment exchange Which can provide ITI and
Technical level candidates.

• REQUIREMENT OF RECRUITMENT:-

There are so many reasons for recruitment process. Some of them AMUL are

• New Expansion

• New Planning

• Retirement

Union Adopted Following Scheme for Recruitment :

1. Graded Scale

2. Union Scheme / Temporary W

3. Under Apprenticeship ACT.

62
1. GRADED SCALE :-

In AMUL they consider two ways under grade scale.Under this

scheme they select well-experienced and qualified person for suitableCandidate. For
that they consider student of well-known institute like IIM,IRMA And others.Candidates
who have successfully completed their training under union scheme are grade scale.

2. UNION SCHEME :-

Under this scheme, students with different education

Qualification like M.S.W, B.B.A, M.B.A , DAIRY TECHNOLOGIST, M.COM , M.E
(BUSINESS) it per their educational qualification and stipend given according to The
qualification.

3. TEMPORARY WORKERS :-

Under this scheme workers are recruitment for 3 or 6 or 9 months.

They will be reacted in union as a trainee. Their training period their training period is 3-5
years. If their worker or attendance found satisfactory the record will be absorbed in
graded scale. If they irregular then this training period may be extended / terminated.

4. RECRUITMENT UNDER APPRENTICE ACT :-

There are two types of apprentice Act.

1. Apprentice Act. 1961

2. Apprentice Act 1973

1. APPERNTICE ACT- 1961 :-

As it is mandatory for the union recruitment under this act, it is

and no ITI candidates are recruited for specific time period.

ITI Trade:

MDM / RFM / ELECTRICIAN / WIREMAN / WELDER / IMCP /

AOCP / BOIL ATTDT / PLUMBER / MMV /

NON ITI Trades :

STOCKMAN (DAIRY) / AOD

B.sc candidates are appointed as Apr. Lab Asst.

63
 2. APPERNTICE ACT – 1973 :-

Under this Act seats are allotted for Diploma and Degree Engineers.

SELECTION
Selection either internal or external is a deliberate effort of the

organization to select a fixed number of personnel from a large number of

applicants. The primary aim of employee selection is to choose those persons

who are most likely to perform their jobs with maximum effectiveness and to

remain with the company. Thus, in selection, an attempt is find a suitable

candidate for the job. In doing so naturally many applicants are rejected. This

makes selection a negative function.

Following are the steps followed are as under :-

 Application bank

 Initial interview of the candidate

 Employment tests

 Interviews

 Checking references

 Physical or medical examination

 Final Interview and Induction

64
 During this steps in cover Biographic data, Education, experience personal item,

Aptitude test, interest test, intelligence test, performance test, personality test.

In the interview different type of interview different conducted like:

 Preliminary interview

 Extensive interview

 Stress interview

 Discussion interview

 Structured interview

 Non – structural interview

 Group interview

 Final interview

The selection process in AMUL is as under

Requirement from department


Approval from MD to conduct interview

65
 
Unsolicited application / Advertisement

Securitization of application


Interview


Medical checkup


Selection

1. Requirement from Department :-

When there is any requirement in Department of the union the divisional head
will state the requirement for particular category staff to Manager (Administration)

2 .Approval from M.D :-

Considering the needs administration dept will take approval from MD to
conduct the interviews of required staff.

66
3. Unsolicited Application / Advertisement :-

If the required qualification application are rejected and other kept for

further process. During this process, suitable Applications are consider on base

of criteria decided by Amul.

4. Collection / Securitization of Application:-

After collection of application they scrutinize them in detail and not suitable
application are rejected and other kept for further process. During this process ,suitable
Application are consider on base of criteria decided by Amul.

5. Interview:-

Interview is carried out by 3 or 4 members consist of head of related department,

M.D., Manager of Administration., one will be expert of that particular field.

This panel will be rating in different aspects such as personsnality,knowledge of

that particular field, general knowledge, written test etc. they will be having rating sheet
consists of all such headings mentions and each panel member giving marks and then
after ranking will be done.

6. Medical check up:-

Selected candidates are sent for primary medical check up including x-ray.

7. selection:-

67
 The two major factor affect the selection:1.merit 2.Medical fitness,

Selection procedure

Selected candidates proposal sent to M.d for approval

As per approval offer letter / appointment letters are issued.

Candidates agree to terms and condition he/she accept the said offer.

Joining formalities

Induction[internal & external]

Induction:-
Induction is a introducing the employee to the job and organisationthe primary
purpose of the induction is to give information about the organization so that he/she can
work comfortably.

Generally induction conveys three kind of information:

1.General information about the daily work routine.

68
2. A review of the organization history,objectives,operation,product,visiting different

Department.

3. Detail information of the organization policies,work rules and benefits given to

employee.

At, amul there is total 20 days induction programme where they include,

1.Internal induction:-

The period of this is 5 to 6 days.during this employees have to familiar within

department of organisation,where he/she should work during this 5 days he/she getting
information of department,its people and work.

2.External induction:-

During external induction programme of 6 to7 days employee are taken at all the
plants.the chilling center as amul is a co-operative sector and empoyee should get the
feel of village and for that he/she should visit at less 2 or 3 villages.

Finally in 10 days of inductin employees get familiar with various department that Is
just to get acquiatance of department like milk,milk procurement department.purchase
department,account department.

69
 • Personal record:_

Amul being a co-opertaive works in a joint manner where joint efforts are involved and
due to thejoint effort today amul is where it should.All the members in co-operative are
join to each other like a one family.

The personal department maintain record of all employees in personal file.The

organisation maintain personal record of every employee in working organisation.

In this record they include

1. Appointment letter

2. Application form

3. Education details and proof [mark sheet]

4. Past and experience and detail

5. Employees history

6. Reason of living previous employments if any

7. Placement transfer or promotions record

8. Training and development record

9. Attendance and leaves record

10. Disciplinary action taken record if any.

RECRUTMENT POLICY OF AMUL

Entry level qualification :-

70
 1. Below officers cadres :-

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

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

2. Professional Qualification E/F Grade

Worker

(Boiler Attendant)

3. BA / B.COM / M.COM / M.A (general)

MSW / MRM /MRS M.E_Biz of Gujarat Vidyapeeth and C Grade Worker

similar non – University Institutions.

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

Workes

Apprenticesship Lab assistant for 1yr 3 months for B.SC & M.SC ;

1yr for Diploma Engg. Then 2/3 yrs as trainee technician,than based on appraisal
Appointed as Technician B Grade.

5.BBA Management Trainee for 1yrs . Jr. Assistan

2. OFFICER CADRES

(a) M.SC ( Agriculture ) /MRS /MRM /MSW /MLW/

71
 MBA/ B.Tech (DT ) / MCA / M.E –Biz. ( From recognized University )
1 yr as a trainee then appointed as senior officer.

(b) Inter CA /Inter ICWA / BE

1 yr as training period, then appointed as Dy. Supdt. Deputy Superintenden

(c) CA /ICWA Superintendent

NO training period ,direct appointment.

However, in case of fresh recruitment of candidates with exceptional qulificational

form reputed Institutions such as IIM/IIT/IRMA o Central Institution, considerstion for
appointment to Higher Grade be given due weightage, not withstanding the above
minimal requirements.

PROMOTION POLICY OF AMUL

While the present promotion policy on the basis of Merit-cum seniority shall be
continued,it is proposed that for officers & above positionsd,following criteria be given
equal weightage, cnsistent with the post held, for evaluating acandidate for promotion.

1. Work Ethics / Culture

2. Vacancy in Department

3. Past Perfomance of the candidate

4. Leadership qualities

72
 5. Planning & Vision

It is also proposed that for promotion of staff in workmen cadres,work ethics be

given more weight age.

For any promotion, recommendations will be made by the Divisonal Heads aften
evaluating the candidate using above criteria.the recommendtion made by the Divisonal
Heads will be reviewed by the General Manager and placed before Managing Director
for consideration.

73
 TRAINING AND DEVLOPMENT

Definition: is a subsystem of an organization. It ensures that randomness is reduced

and learning or behavioral change takes place in structured format.

 TRAINING

It is a learning process that involves the acquisition of knowledge,

sharpening of skills, concepts, rules, or changing of attitudes and
behaviours to enhance the performance of employees.

 Training is activity leading to skilled behavior.

 It’s not what you want in life, but it’s knowing how to reach it

 It’s not where you want to go, but it’s knowing how to get there

 It’s not how high you want to rise, but it’s knowing how to take off

 It may not be quite the outcome you were aiming for, but it will be an
outcome

 It’s not what you dream of doing, but it’s having the knowledge to do it

 It's not a set of goals, but it’s more like a vision

 It’s not the goal you set, but it’s what you need to achieve it

Training is about knowing where you stand (no matter how good or bad the current
situation looks) at present, and where you will be after some point of time.

Training is about the acquisition of knowledge, skills, and abilities (KSA) through
professional development.

74
TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT

Traditional Approach –

Most of the organizations before never used to believe in training.

They were holding the traditional view that managers are born and not made. There
were also some views that training is a very costly affair and not worth. Organizations
used to believe more in executive pinching. But now the scenario seems to be
changing.

The modern approach

Most of training and development is that Indian Organizations have

realized the importance of corporate training. Training is now considered as more of
retention tool than a cost. The training system in Indian Industry has been changed to
create a smarter workforce and yield the best results

TRAINING AND DEVELOPMENT OBJECTIVES

The principal objective of training and development division is to make sure the
availability of a skilled and willing workforce to an organization. In addition to that, there
are four other objectives: Individual, Organizational, Functional, and Societal.

Individual Objectives – help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organization.

Organizational Objectives – assist the organization with its primary objective by bringing
individual effectiveness.

Functional Objectives – maintain the department’s contribution at a level suitable to the

organization’s needs.

75
Societal Objectives – ensure that an organization is ethically and socially responsible to
the needs and challenges of the society.

Importance Of Training and Developmen

 Optimum Utilization of Human Resources – Training and Development

helps in optimizing the utilization of human resource that further helps the
employee to achieve the organizational goals as well as their individual
goals.

 Development of Human Resources – Training and Development helps to

provide an opportunity and broad structure for the development of human

76
 resources’ technical and behavioral skills in an organization. It also helps
the employees in attaining personal growth.

 Development of skills of employees – Training and Development helps in

increasing the job knowledge and skills of employees at each level. It helps
to expand the horizons of human intellect and overall personalityof
employee.

 Productivity – Training and Development helps in increasing the productivity of

the employees that helps the organization further to achieve its long-term goal.

 Team spirit – Training and Development helps in inculcating the sense of team
work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to
learn within the employees.

 Organization Culture – Training and Development helps to develop and improve

the organizational health culture and effectiveness. It helps in creating the
learning culture within the organization.

 Organization Climate – Training and Development helps building the positive

perception and feeling about the organization. The employees get these feelings
from leaders, subordinates, and peers.

 Quality – Training and Development helps in improving upon the quality of work
and work-life.

 Healthy work environment – Training and Development helps in creating the

healthy working environment. It helps to build good employee, relationship so
that individual goals aligns with organizational goal.

 Health and Safety – Training and Development helps in improving the health and
safety of the organization thus preventing obsolescence.

77
 Morale – Training and Development helps in improving the morale of the work
force.

 Image – Training and Development helps in creating a better corporate image.

 Profitability – Training and Development leads to improved profitability and more

positive attitudes towards profit orientation.

 Training and Development aids in organizational development i.e. Organization

gets more effective decision making and problem solving. It helps in
understanding and carrying outorganisational policies

 Training and Development helps in developing leadership skills, motivation,

loyalty, better attitudes, and other aspects that successful workers and managers
usually disply.

TRAINING PROCEDURE IN AMUL

Identification of need of Training

Module Preparation

Selection of Employee for the Training

78
 Training

Feedback

AMUL HAS ACCEPTED THE 3 METODS OF TRAINING,

1.On the job method

2.Off the job method

3.Out house training

MANAGEMENT DEVELOPMENT:

ON THE JOB TRAINING –:

The most frequently used method in smaller organizations that is on the job training.
This method of training uses more knowledgeable, experienced and skilled
employees, such as mangers, supervisors to give training to less knowledgeable,
skilled, and experienced employees. OJT can be delivered in classrooms as well. This
type of training often takes place at the work place in informal manner.

Some of the key points of on the job training

It is done on ad-hoc manner with no formal procedure, or content

79
At the start of training, or during the training, no specific goals or objectives are
developed

Trainers usually have no formal qualification or training experience for training

Training is not carefully planned or prepared

The trainers are selected on the basis of technical expertise or area knowledge

Formal OJT programs are quite different from informal OJT. These programs are carried
out by identifying the employees who are having superior technical knowledge and can
effectively use one-to-one interaction technique.

COACHING :

Coaching is one of the training methods, which is considered as a corrective

method for inadequate performance. According to a survey conducted by
International Coach Federation (ICF), more than 4,000 companies are using
coach for their executives. These coaches are experts most of the time outside
consultants.

A coach is the best training plan for the CEO’s because

It is one to one interaction

It can be done at the convenience of CEO

 It can be done on phone, meetings, through e-mails, chat

 It provides an opportunity to receive feedback from an expert

MENTORING : Mentoring is an ongoing relationship that is developed between a senior

and junior employee. Mentoring provides guidance and clear understanding of how the
organization goes to achieve its vision and mission to the junior employee.

JOB ROTATION :

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