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Organizational Study of KSIC Limited

INTRODUCTION
1.1 General information:

Indian history is waking up to the challenges thrown in by market economy. To
survive in this highly competitive scenario, human resources plays a vital role. An
organization is nothing without its “Human resources”.

Growing global, liberalization policy, technological advancement,
increased competition, privatization are the characteristics of todays economy,
which emphasizes the crucial role of managing human resources for the
organizations growth and survival and its growing importance

The field of human resources management is in a state of rapid transition.
It is only the successful corporate edge in todays market place is their ‘people’,
and they should manage their human resources in their “transition”. Managing
human resources is an extremely important part of making an organization work
well.

 Managing human resources means acknowledging that the humans
in the organization are the most important part of getting things
done. The human resources approach assumes that no amount of
clever work with figures, or the latest technical equipment , will
deliver anything unless people agree to work in co-ordination with
each other. Thus is applies to everyone in the organization.

“Management is the method of effectively utilizing available resources for the
purpose delivering goods services to the maximum satisfaction of maximum
number of people.

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Organizational Study of KSIC Limited

1.2 Industrial background

The silk weaving factory in Mysore, presently owned by KSIC, was established
in the year 1912 by the Maharaja of Mysore province. Initially the silk fabrics
were manufactured and supplied to meet the requirements of the royal family and
ornamental fabrics to their armed forces.

The unit was started with 10 looms and gradually increased to 44 looms over a
period. The looms and preparatory machines were imported from Switzerland and
was the first of its kind in India. After India gained Independence the Mysore
state Sericulture Dept. took control of the silk weaving factory.

KSIC Ltd was established on 18th April 1980 with assistance by
Government and World Bank scheme under integrated Karnataka sericulture
project. KSIC is the only organization in the Country commanding the entire
gamut of silk production right from the reeling of cocoons to the weaving of pure
silk fabrics, under one roof.

In 1980 the silk weaving factory was handed over to Karnataka Silk
Industries Corporation Ltd., a Govt. of Karnataka enterprise and is popularly
known as KSIC. The take over was enthused by effecting modernization and
expansion assisted by the World Bank to the tune of Rs. 27.30 crores integrated
under Karnataka sericulture project.

1.3 GROWTH AND DEVELOPMENT
The Karnataka Silk Industries Corporation (KSIC) has been awarded the Certificate of
Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive
use.

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It’s now official. Mysore Silk belongs to Mysore district.

The Karnataka Silk Industries Corporation (KSIC) has been awarded the Certificate of
Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive
use. Henceforth, all Mysore Silk sarees sold by the KSIC will come with the logo IPI,
meaning Intellectual Property India.

KSIC is also the first state government enterprise to get a logo from the Geographical
Indication Registry (GIR), a Central government body based in Chennai. GIR was
formed to protect the Intellectual Property Rights for Indian goods under the
Geographical Indication of Goods (Registration and Protection) Act, 1999.

The GIR certificate is a sign used on goods that have a special geographical origin and
possess qualities or reputation of their place of origin.

The KSIC also will have the patent rights of Mysore Silk brand and no other organization
can use the same name for other silk products. The other products which have been
awarded GIR certificates include Kanjeevaram Sarees, Basmati Rice, Swiss Watches and
Dutch Tulips.

1.4 PRESENT STATUS OF THE INDUSTRY

KSIC produces 6,000 sarees every year and, armed with the GIR certificate, KSIC now
plans to have a distributor in every state.

EXCLUSIVE STATUS
Manufacturers or traders can use the words ‘Mysore Silk’ to market their silk fabric

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without KSIC’s nod product must be made in Mysore district penal action for
unauthorized use. Every Mysore silk saree will carry a logo –intellectual property India

The two pillars of Korean manufacturing sector are textile industries
(KSIC code 32) and machinery, equipment and electronics industries (KSIC code
38). The output share of textile has decreased from 21.8% in 1970 to 13.7% in
1990 while that of machinery and equipment has increased from 12.2 per ce34.1%

Brief on product:-

KSIC is the only organization in the country commending the entire gamut of silk
production right from reeling of cocoons to the weaving of pure silk fabric of
various shades and designs, all under one roof. KSIC uses only high quality pure
natural silk and 100% pure gold zari. The zari never tarnish and will look fresh
even over a long period of usage. KSIC is the only organization to give guarantee
for its zari saree in the form of embroidered code No. which is unique to each
saree.

Meaning of Trade Mark

There is no specific meaning or direct relation of trade mark with KSIC. There is
a history behind this logo. Once company’s first CEO and MD went to a temple
named as Chennakeshava in Halebidu (Karnataka). There they saw a beautiful
bird “Hamsa” which is famous for bring diamonds, pearl etc to home wherever it
was present. So the CEO kept the bird as the trade mark for KSIC.
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2.1 INDUSTRY PROFILE

It is said that silk was discovered during 2640 B.C. in China. Chinese Empress, His Ling
Shi studied the silkworm and learned the art of unwinding the silk from the cocoon and
made silk fabric from it. This was the beginning of silk industry in China.

Though India is the second largest silk producer in the World after China, it
accounts for just 5% of the global silk market, since the bulk of Indian silk thread and silk
cloth are consumed domestically. Germany is the largest consumer of Indian silk. The
sericulture industry is land – based as silk worm rearing involves over 700,000 farm
families and is concentrated in the three Southern states of Karnataka, Tamil nadu and
Andhra Pradesh. (The states of Assam and West Bengal are also involved in the industry
to a certain extent).

The present market context for silk in India is one of vigorously growing internal
demand for silk fabrics, with growth rates of above 10% per year. It is mostly for
traditional (sari type) design and does not impose sophisticated quality requirements upon
the industry. This situation is likely to continue, unless Indian sericulture is able to
provide sufficient quantities of raw silk at affordable prices. The present trends represent
a limitation to price increases for silk produced in India by import from other silk
producing countries like China, Brazil, Korea etc., as well as by substitution with other
fibers including by artificial silk. It also appears unlikely that the present demands can be
met merely by expanding mulberry area in order to increase cocoon and raw silk
production. Future additional output is raw silk will therefore mostly have to come from
substantial productivity increases, mainly area and labor productivity.

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Concurrently there is a growing demand for silk fabric among the growing Indian
middle class and young urban consumers. These modern silk fabrics typically are
produced by the expanding power loom weaving industry. The quality requirements
imposed by this trend can only be met by bivoltine raw silk for conventional power
looms. The bulk of today’s world export demand is almost exclusively based on high
graded quality bivoltine raw silk. If Indian sericulture is unable to generate a substantial
production of bivoltine raw silk, these important market segments will continue to be lost
outside competitors.

Hence, three main market segments offer great opportunity to India’s silk industry:

(i) The broadening domestic traditional demand multi bivoltine based

(ii) The domestic demand for non – traditional silk fabrics, based at least partly on
non – graded bivoltine raw silk

(iii) The vast and expanding international market for raw silk, silk fabrics and
ready – mades, based on graded bivoltine silk, an export potential as yet
relatively little exploited by India.

In one of the efforts of the Indian Government to promote the sericulture Industry, the
National Sericulture Project (NSP) was initiated as a national project operational in 17
States in India. The projected funded by the Central and State Governments together with
an input of foreign funds, has a credit portion from the world bank and a grant
contribution from Swiss Development Corporation. The project was started in 1989 for a
period of six years with the objectives oriented toward increased production, improved
productivity, quality and equity. One of the critical elements taken into consideration by
the project was the dominant involvement of the Central and State Government
organizations in the promotion of sericulture.
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2.2 COMPANY PROFILE
Mysore is rich for its Royal heritage and Grandeur and it is no surprise that the silk
produced there reflect the traditional splendor through its rich yet delicate motifs. The
name Mysore silk is a befitting tribute to its ancestry. KSIC the proud inheritor of this
royal legacy, has treasured it for over seven decades, has been producing 100% pure silk
with pure gold zari.

We are in the business of manufacturing quality silk products of varied
designs for end user consumption. The products include finest of
designer silk sarees, salwar kameez, shirts kurta’s, silk dhoti and men’s tie. The
silk products are manufactured in our factories located in Mysore district of
Karnataka state, INDIA.

VISION
“To provide employment directly and indirectly by producing goods, products and
marketing effectively in the market”.

MISSION
“Manufacturing and marketing of Mysore silk sarees”.

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2.2 PRODUCT PROFILE

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SAREES

Sl.No. Article Design Type of Pallu Body Border Image
No. No. saree

1/2" Zari
1 550/1(E) 2 Crepe Zari Stripes Plain (Both
sides)

1" Zari
2 550/2(E) 117 Crepe Zari Stripes Plain (Both
sides)

1" Zari
3 550/2(E) 28 Crepe Zari Stripes Plain (Both
sides)

1" Zari
4 550/2(E) 22 Crepe Zari Stripes Plain (Both
sides)

1" Zari
5 550/2(E) 24 Crepe Zari Stripes Plain (Both
sides)

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2" Zari
7 550/4(E) 122 Crepe Zari Stripes Plain (Both
sides)

2" Zari
8 550/4(E) 45 Crepe Zari Stripes Plain (Both
sides)

2" Zari
9 550/4(E) 123 Crepe Zari Stripes Plain (Both
sides)

2" Zari
10 550/4 CD(E) 121 Crepe Zari Stripes Plain (Both
sides)

3" Zari
11 550/6 M&J(E) 48 Crepe Zari Stripes Plain (Both
sides)

3" Zari
12 550/6(E) 139 Crepe Zari Stripes Plain (Both
sides)

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3" Zari
13 550/6 CD(E) 130 Crepe Zari Stripes Plain (Both
sides)

3" Zari
(One
side) 1"
14 550/2/8 CD(E) 51 Crepe Zari Stripes Plain
Zari
(Other
side)

2" Zari
15 550/4 (B)(E) 153 Crepe Zari Butta Plain (Both
sides)

2" Zari
16 550/4 (B) CD(E) 74 Crepe Zari Butta Plain (Both
sides)

1" Zari
550/2G1018 (S) Small
17 60 Crepe Zari Checks (Both
(E) Checks
sides)

1" Zari
550/2G1018 (A) Medium
18 58 Crepe Zari Checks (Both
(E) Checks
sides)

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1" Zari
19 550/3G1018(E) 68 Crepe Zari Checks Checks (Both
sides)

2" Zari
20 550/4G1018(E) 70 Crepe Zari Checks Checks (Both
sides)

1" Zari
21 2550/2G1018(E) 69 Georgette Zari Checks Checks (Both
sides)

1" Zari
22 560/2(E) 132 Crepe Zari Stripes Plain (Single
side)

3" Zari
23 560/6 CD(E) 100 Crepe Zari Stripes Plain (Single
side)

1" Zari
24 550/2 GS CD(E) 165 Crepe Zari Stripes Lines (Both
sides)

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1/2" Zari
Pich Pallu
25 550/1 SPC(E) 135 Crepe Lines (Both
Stripes
sides)

3" Zari
Rich Pallu
26 550/6W2(E) 80 Crepe Plain (Both
Zari
sides)

3" Zari
Rich Pallu
27 550/6WG1(E) 83 Crepe Checks (Both
Zari
sides)

3" Zari
Rich Pallu
28 550/6K2(E) 82 Crepe Checks (Both
Zari
sides)

1/2" Zari
Print
29 550/1 Printed(E) 102 (G) Crepe Zari Print (Both
Allover
sides)

1/2" Zari
Print
30 550/1 Printed(E) 102 (P) Crepe Zari Print (Both
Allover
sides)

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1" Zari
Print
31 550/2 Printed(E) 103 (B) Crepe Zari Print (Both
Allover
sides)

1" Zari
103 Print
32 550/2 Printed(E) Crepe Zari Print (Both
(PG) Allover
sides)

1" Zari
103 ( R Print
33 550/2 Printed(E) Crepe Zari Print (Both
) Allover
sides)

1" Zari
Print
34 550/2 Printed(E) 103 (B) Crepe Zari Print (Both
Allover
sides)

Printed*(*do
not choose Print Plain
35 955 Printed(E) Printed Crepe
Kasuthi Allover Printed
Design)

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Crepe pallu zari stripes body plain:

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”.

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2.3 DEPARTMENT PROFILE

1. PERSONNEL DEPARTMENT

Personnel management is concerned with people at work and its aim is to
develop good relationship between management and employee. Personnel
management is that part of total management of an organization, which
specially deals with human resources in respect of

a) Their procurement
b) Their development
c) Their motivation, towards the attainment of organizational
objectives

DEFINITION

Edwin.B. flippo “ The personnel function is concerned with the
procurement, development, compensation, integration and maintenance of the personnel
of an organization for the purpose of contributing towards accomplishment of the
organization’s major goals”.

PERSONNEL DEPARTMENT IN KSIC LTD.

Personnel department in KSIC Ltd. is a very important and clearly defined
department. The department performs the personnel and administrative functions. It has a
direct link with the employees and understands their needs and wants. The personnel

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officer is in charge of this department and under him junior Superintendent, junior
Assistant, Steno Receptionist, Driver, Peon etc.

FUNCTIONS OF PERSONNEL DEPARTMENT

1. Recruitment and selection
2. Training
3. Provide sound program of salary and wage administration
4. Allowance for the employees
5. Provide and maintain safety measures
6. Keep employment records
7. Handle labor problems and employee disputes

DUTIES OF PERSONNEL OFFICER

1. To arrange for appointment of personnel
2. To arrange recruitment as identified
3. To comply with all statutory rules relating to personnel and
administrative matter
4. To provide job security, job enrichment and job enlargements
5. To provide sound promotion policy providing simple scope for self
advancement
6. To ensure statutory compliance of E.S.I., P.F. etc
7. To collect analyze and present the required data for such discussion or
negotiation between the board of director and the trade union
8. To provide guidelines of the security officer for the implementation of
security measures
9. To attend labor courts and conciliations by the labor and other
departments
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10. To prepare and maintain ( update) gradation/ seniority list of all the
employees of the company

Manpower in KSIC Ltd.

The total strength of the employees in KSIC Ltd in 31/03/2005 was 845
according to the records it was 895 in 31/03/2004

MANPOWER OF KSIC

Category of employees No. of employees

Executive level 9

Middle level Executives 17

Other office staff 212

Workers 607

Total 845

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RECRUITMENT

The method by which the company recruits Labor is

1. Direct recruitment
2. Public service commission
3. Employment exchange

All employees of the individual corporation and companies excluding workers are
defined in the factories Act and Excluding persons employed in the supervisory or
managerial capacity whose basic wages ( Starting ) excluding DA and other
allowances exceeds Rs. 700 are to be recruited through P.S.C
Clerical post such as Steno – Typist, Junior Assistants, Driver,
Receptionist-Cum – Telephone Operator, Maintenance Assistants etc. are filled
up by under P.S.C recruitments. Managerial Supervisory and workers vacancies
are filled up by direct recruitment. The advertisement is published in the
newspapers to fill up the vacancies. The board of director will nominate a
selection council to interview and select the direct recruitment employees.

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TRAINING

Training means to give information or skill through instructions or
practical. It is a method for increasing the knowledge and skill of the people for a
specific job.

“Training is the art of increasing the knowledge and skills of
employees for doing a particular job”.

The training methods are:-

1. On the job training
2. Off the job training
3. Apprenticeship training

ON THE JOB TRANING

This is a common used method for training the operative personnel. The
workers are trained under the same type of conditions they have to work in future. On
the job he can experience the conditions and requirements of actual work situations.

OFF THE JOB TRAINING Off the job training generally consists of conferences,
seminars, lectures, group discussions, case studies, programmers, instructions etc.

APPRENTICESHIP TRAINING In apprenticeship training a worker is appointed as an
apprentice. The company gives apprenticeship training in the following trades.
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a) Electrical
b) Plumber
c) Fitting
For selection or incumbent in cash trade, company seeks the list from the regional
training centre, as per the rules.

REMUNERATION TO EMPLOYEES

The minority reward paid by the management to worker or an employee for
the performance of the assigned task is called “wages” or “salary”. Salary is the
remuneration paid to non-operative staff: salaries are paid on a monthly basis to office
staff, managers and Technical advisors etc. Wages is the remuneration paid to the
workers involved in production. Work and who’s output can be directly measured.
Some employees are working on daily wages.

LEAVE RULES

STAFF WORKERS

Casual Leave 12 Days -

Earned Leave 30 Days 14 Days
National holy days 15 Days 15 Days

Stick Leave 10 Days 13 Days
Encashment of earned leave is permitted only in a year

WELFARE MEASURES

Employees will get PF, ESI, Minimum Bonus and Gratuity benefits.

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BONUS FOR EMPLOYEES

The word bonus denotes an incentive payment to the workers aimed at
enhancing their efficiency and loyalty to their organization.

Promotion takes place when an employee moves to a higher than once formerly
occupied. His responsibility, status and pay also increase; the promotions method
adopted here is “seniority Basis”

RELATIONS BETWEEN MANAGEMENT AND UNION

Most of the employee’s opinion is that there is a healthy relationship
between the management and union. So the management must take necessary steps to
maintain this good relationship. So there is no problem from the part of the union.

ORGANISATIONAL SETUP OF PERSONNEL MANAGEMENT

1. Security
2. Time office
3. Telephone
4. Vehicle

SECURITY OFFICE

Security officer is the head of the security office and under him other
security guards.

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DUTIES OF SECURITY GUARDS

1. To issue gate pass
2. Safe guarding factory premises

TIME OFFICE

Under this section, there is a timekeeper and a clerk. Their duty is to see
that the employee reports in time.

WORKING TIME

Office staff - 10.00 – 5.30
Factory Workers - 8.30 – 5.00

VEHICLES

The security guards are in charge of incoming and outgoing vehicles. A
separate sheet us set – up for keeping the vehicles.

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TELEPHONE The telephone operator is in charge of all the incoming and outgoing
call during office time. Security officer in the gate operates the calls, which are coming
after office hour.
DEPARTMENTAL CHART

Personnel officer

Junior superintend

Junior assistant

Steno
Receptionist
Driver
Peon

SPAN OF CONTROL
The personnel officer is in charge of this department and under him junior Superintend.
Junior Assistant, Steno, Receptionist, Driver, Peon

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ORGANIZATION CHART

(HEAD OFFICE, BANGLORE)

CHAIRMAN Personal
Secretary

DY. Manager DY. Manager Manager F&A - General General
Personnel internal audit CS Manager - Manager –
MYSORE T.Narsipura

Asst. audit
Asst. Manager officer Asst. Accounts
Operation officer Asst. Accounts Asst. Manager
officer Sales
showroom,
accounts
secretary
Assistants

Internal Account Asst.
auditors Account Asst.
Assistants

Manager - Sales

Junior OA
Sales Officer

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ORGANIZATION CHART (MYSORE PLANT)

General Manager Personal
Secretary

Personnel Dy. Manager Dy. Manager Purchase and Maintenance Security
officer Production Accounts stores officer engineer Doctor First
mech/electrical aid

Assistant Asst. Manager Dying Printing Master
CASTING Master

Labour welfare Weaving
officer Master

Assistant

Asst. Assistants
Throwing
Master

ORGANIZATION CHART
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(T.NARASIPURA PLANT)

General Manager Personal
Secretary

Asst. Stores cum
Purchase Officer

Personnel Asst. Accounts Special Officer Cocoon Store Silk Store Asst. Manager
officer Officer Keeper Keeper -Maintenance
Mech/Electrical

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4.1 HUMAN RESOURCES DEPARTMENT

HUMAN RESOURCE MANAGEMENT:-
“Human is a management function that helps, manages recruit, select, train and develops
members for an organization. It is obviously concerned with the peoples dimensions in
organizations.”

OBJECTIVES OF HRM:
 Societal objectives-to be ethically and socially responsible to the
needs and challenges of society while minimizing the negative
impact.
 Organizational objectives-to serve the organization with its
primary objectives and bring about overall organizational
effectiveness.
 Functional objectives-to maintain the departments contribution at a
level where it serves the organizations needs tailoring the
department according to the requirement of the organization.
 Personal objectives-to assist employees in achieving their personal
goals, if these goals of employees are met it helps the organization
to maintain retain and motivate the employees.

INTEGRATION AMONG FUNCTIONS:-
Each business unit consists of several departments such as
manufacturing, sales, finance, HRD, MIS, marketing, finance R7D and
so on. All these departments should identify their basic course of
action in order to help the business unit attain its goals and objectives,
managers should be aware that all these functions are inter related and
must mesh its activities with the activities of other departments.
Because a change in one department will definitely affect the way in
which other departments operate.

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MOTIVATION:-
“Motivation is the process that account for an individuals intensity,
direction, and persistence of effort toward attaining a goal”.
“Motivation is a process of stimulating people to action to accomplish
desired goals”.

MOTIVATION HAS THREE DISTINCT FEATURES:-
 It results from a felt need. Motivation triggers behaving
impelling a person to action.
 It is goal-directed. Motivation is a driving state that channels
behaviour into a specific course that is fulfillment of felt need.
 It sustains behaviour in progress. It persists until the
satisfaction or reduction of need state occurs.

MOTIVATION IS NECESSARY:-
• To stimulate employees to accomplish
desired goals.
• To boost the employees morale.
• To develop sound human relations.
• To increase efficiency and output.
• To develop team spirit.
• To inspire employees for responsible
and challenging jobs.
• To promote healthy competition among
employees.

PROBLEM BASED ON HRM DEPARTMENT

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1) Everyone has motivational energy. Although many problem employees
display a marked lack of drive and commitment in their jobs, these qualities
are usually alive and well in other areas of their lives.
2) The energy which the problem employees possess is often blocked in the work
place. The blockage may occur because of new and sudden stress at home or
frustrated dreams or broken promises at work.
3) Removing blockage of energy requires peoples participation. To motivate an
employee to work towards organizational goals, it is necessary to find his or
her locus of energy and leverage it. Instead of pushing solutions on people
with the force of argument, the manager should pull solutions out of them.
4) Beyond a certain point, there is no need to show mercy to problem people.

THE FOLLOWING ARE SOME TIPS TO DEAL WITH PROBLEM
EMPLOYEES :
I. Try to reach out the employee even if it appears to be climb down on the
boss part. This is necessary in the interest of the organization. Failing
this, think of the next.
II. Change the place of work. Probably a new peers and a new environment
may change the employee. Failing this, think of the next.
III. Issue verbal threats-threats of severe actions. Severity of actions
contemplated to vary from workers to managers. Higher the hierarchy,
graver the severity. Failing this, think of the next.
IV. Translate threats into actions. If problem employees are workers,
suspension may work. If the problem employees are managers, sack
them.

4.2 PRODUCTION DEPARTMENT
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Definition:
Alee cairn cross: “production is the making of goods for sale or the
rendering of paid services. The making of goods, however, must not be interrupted too
literally to mean the creation of some material object; we do not so much make things as
make them more serviceable. We create, not material object, but utility.”

PRODUCTION DEPARTMENT IN KSIC LTD
The production department is largely connected with manufacturing and its allied areas,
such as, determination of quality and quantity to be produced, production planning, work
analysis, quality control etc. production department also deals with clerical work relating
to various activities of a production of finished products, material Requisition, Stock
Records etc. production department is headed by Production Manager, Plant Engineer,
Charge Man, Maintenance Assistant and various Supervisors.

PRODUCTION

Production is concentrated in the existing two plants namely
1. Silk weaving & printing plant (MYSORE)
2. Silk filature plant

1. Mysore - Silk weaving & Printing silk products

The Factory is located in the heart of the Mysore city and is spread over
acres. The raw silk yarn Filatures obtained from T . Narasipura factory and open
Market are put thro. various process and Quality silk products are produced for end user
consumption. The factory has an installed capacity of 8,00,000 Mtrs per annum.

The factory is provided with various high end equipments so as to produce best of
silk. The factory started with 10 looms in 1930 under the rulers of erstwhile Mysore
Kingdom today boasts of more than 159 looms, two Warping machines & Pirn

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Machines and any no. of Preparatory Machines. Most of the machines are imported
from Switzerland and Japan.

KSIC silk product are well appreciated in the market due to its 100% pure silk blended
with 100% pure gold Zari ( 65% of silver & 0.65% of Gold ).

The sarees manufactured are of unmatched quality come in varieties to suit the customer
tastes viz: Crepe-de-chine, Georgette, Zari printed crepe silk sarees, semi crepe sarees.
The sarees are printed or dyed. The sareess come in a splash of over 100 different colors
and any no. of design combinations. Some of the design combinations are:

• Embroidery Design saree
• Big Butta Pallu Zari
• Rich Pallu Sari Saree
• Jawar Border Saree
• Small Mango Saree
• Zari Printed Saree
• Saree Tissue Saree
• Traditional Zari Saree
• Checked Zari Saree
• Mango Border Saree
• Sunrise Design saree
• Butta Pallu Saree
• Double Line Checks Saree.

Based on the taste of the end consumers the sarees are printed and dyed with suitable eye
catching colors. Various approved quantity of approved chemicals are added at various
stages as per silk manufacturing standards to retain the luster and quality of the silk
fabric. The sheen and the visual luxury of the crepes are only to be experienced. At 75
gms per metre, the KSIC silk sarees have an unmatched drape. These crepes have delicate
strands of zari interwoven in spectacular designs, in the borders and the pallu. The printed

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crepes are tributes to designing and come with a double advantage of possessing the
crepe's softness and a vibrant range of designs from floral to geometric.

To protect esteemed customers from imitation of KSIC silks, KSIC have given a special
embroidered number for each one of the sarees with a unique number and hologram.

Other products of silk include soft silks, hankeys, Neck Ties, Stoles, Cravats, dupion
fabrics etc.

2. T. Narasipura - Silk Filature

Silk Filature refers to raw silk manufacturing unit. The unit manufactures raw silk yarn
and transfer to meet the raw material requirement of silk weaving factory in Mysore.

The factory is located in T. Narasipura, Mysore District in an area of approx.
15 acres. The factory is headed by a General Manager. The factory supplies raw silk yarn
to their own silk weaving Factory located in Mysore. Approximately 1000 Kgs. of
cocoons are purchased daily from Govt. Controlled Market depending on needs
and raw silk yarn known as filatures are produced. The purchase is done on almost
daily basis as the purchased cocoon cannot be stored for more than 2 to 3 days.

Capacity

Installed Capacity : 225kgs /day
Actual production : 120 Kgs/day

The factory uses the best Technology per say in raw silk manufacturing. It follows the
international silk association standards and has the following stringent parameters for
testing using standard Machineries.

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a) Renditta -
This refers to amount of Kgs of cocoons required to produce 1Kg of raw
Silk yarn

b) Type of Cocoon -
Multivoltaine Cocoon : 8 to 8.5 Renditta
Bi-Voltaine Cocoon : 6.5 to 7 Renditta

Grade of Raw Silk Yarn
Grade A, Grade 2A, Grade 3A, Grade 4A, Grade 5A

International Silk association Standards to test the following
• Denier - weight in grams/Mtr
• Tenacity
• Elongation
• Cleanness
• Neatness

The silk filature plant uses modern Japanese & Korean Machineries having denier control
to produce quality silk yarn.

The Unit uses two types of reeling
I) Automatic – Japanese Machinery
ii) Semi-Automatic – Korean Machinery

The Cocoon purchased form Govt. controlled Market undergoes various stages
of production viz; Sorting, boiling, brushing & reeling. Silk yarn is passed thro. buttons
and pulley (Croiser) to maintain tenacity and elongation and wound on a reel. Re-reeling
is done to make the silk yarn into a continuous length and convert it into hanks. Reeled
yarn is passed thro. yarn guide and made into big reel. The approximate weight of yank is
100 to 120 grams. To maintain quality the silk yarn undergoes various process like silk
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skinning to remove gum spots manually. The unit is in the process of implementing ISO
9002 standards

DEPARTMENTAL CHART

Production Manager

Store officer Plant Reeling Plant
Engineer Engineer

Charge Man Senior Dye Master
Supervisor

Maintenance Supervisor
Supervisor
Assistant

General Workers Sticking
Worker Helpers,
Sharers,
Stenciling,
Power loom plants Workers Etc.
Supervisor/
Maintenance Assistant
Manager
Product
Development
Weavers, Packing
Workers, Cops, Winders
Dyeing, bleaching, workers

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SPAN OF CONTROL

Production department is headed by production manager. Under him
Stores officer, Plant Manager, Plant Engineer, Dye Master, various supervisors and
workers etc.

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4.3 FINANCE DEPARTMENT

DEPARTMENTAL CHART

Finance
Department

Account Grade

Account Grade - 2

Cashier Junior Assistant

Financial management is responsible for estimation of financial resources. Financial is
lifeblood of every business. Therefore it is most important and complicated for business.

Finance department in KSIC LTD is needed by finance manager and
under him accountant, junior superintend and cashier.

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FUNCTIONS OF FINANCE DEPARTMENT IN KSIC LTD

1. Finalization of accounts
2. Preparation of wage sheets
3. Maintain cost records
4. Budget making and set target to be achieved
5. Setout the financial requirements, loans, income expenditure etc.

DUTIES OF FINANCE MANAGER:

1. Keep the books of accounts of the company up-to-date.
2. To inspect the accounts of the company.
3. To monitor all the financial transactions of the company.
4. To arrange the reconciliation of the book of accounts of the company with the
book of accounts of the company

REGISTERS AND BOOKS OF ACCOUNTS

The managers should keep proper books of accounts, registers and other
documents. He should maintain proper and accurate records of accounts of working of
the company. Copies of the balance sheet shall supply free on demand of any members.

The books generally kept in finance department are

1. Cash book
2. General Ledger
3. Bank Book
4. Sales Journal
5. Purchase Journal
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Comparative Statement showing the fabrics sales from April 2003 to
March 2004

April 2003 to March 2004 ( Rs. in Lakhs )

Sl.No. Months Dress Total Gross Discount Net Sales
Zari Printed
Materials Meters Sales Rs. Rs.

1. April 2835 110 663.40 16860.90 123.49 10.85 112.64

2. May 3667 165 1154.40 22230.40 161.03 16.57 144.46

3. June 2818 115 838.70 16970.20 124.88 11.30 113.58

4. July 3653 247 873.70 22323.70 163.96 22.06 141.90

5. August 5412 336 1250.00 32864.00 243.22 34.83 208.39

6. September 2449 130 649.00 14833.50 106.59 8.45 98.14

7. October 6789 481 3929.00 43914.00 316.19 48.30 267.89

8. November 3811 945 2990.00 29148.00 189.80 26.32 163.48

9. December 15623 2867 8451.50 110146.50 716.77 227.07 489.70

10. January 4168 201 21001.20 45030.70 201.69 32.75 168.94

11. February 4106 194 7503.95 31153.95 211.88 52.09 159.79

12. March 12253 645 9996.05 80935.05 562.10 140.61 421.49

Total 67584 6436 59300.90 466410.90 3121.60 631.20 2490.40

Comparative Statement showing the fabrics sales from April 2004 to March
2005
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April 2004 to March 2005 ( Rs. in Lakhs )

Sl.No. Months Dress Total Gross Discount Net Sales
Zari Printed
Materials Meters Sales Rs. Rs.

1. April 5189 218 3443.20 33181.70 238.43 65.79 172.64

2. May 3214 247 1355.70 20391.20 149.62 25.18 124.44

3. June 2148 159 2291.40 14979.90 97.71 5.26 92.45

4. July 2686 468 1910.50 19257.50 118.3 19.06 99.24

5. August 5068 493 2024.00 32609.50 227.35 25.67 201.68

6. September 4367 199 1265.15 26378.15 191.48 22.17 169.31

7. October 3669 182 1413.00 22593.50 168.51 19.39 149.12

8. November 5023 239 1300.50 30241.50 230.71 26.24 204.47

9. December 3697 113 1026.75 21981.75 163.24 19.02 144.22

10. January 5671 115 180.70 32003.70 259.10 48.79 210.31

11. February 4491 124 1989.75 27372.25 196.46 37.77 158.69

12. March 7896 147 769.65 45006.15 361.53 65.20 296.33

Total 53119 2704 18970.30 325996.80 2402.44 379.54 2022.90

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Comparative Statement showing the fabrics sales from April 2005 to March 2006

Statement showing the fabrics sales against the target during the month

April 2005 to March 2006 ( Rs. in Lakhs )
Sl.No. Months
Dress Total Gross Discount Net Sales
Zari Printed
Materials Meters Sales Rs. Rs.

1. April 8087 141 403.70 45658.00 378.20 81.27 297.13

2. May 4574 120 419.05 26236.00 206.22 29.62 176.79

3. June 3992 123 300.90 22933.40 182.62 26.22 156.53

4. July 3946 82 152.75 22306.75 192.41 28.62 163.79

5. August 5220 201 109.75 29925.25 261.08 36.89 224.48

6. September 4241 145 230.45 24353.45 208.40 29.26 179.15

7. October 6836 179 431.50 39014.00 341.04 47.23 294.11

8. November 5262 165 5053.50 34902.00 264.38 51.38 213.15

9. December 4492 294 5316.30 31391.80 243.85 40.42 203.62

10. January 4386 241 419.75 25868.25 229.96 30.59 199.56

11. February 3202 149 345.35 18775.85 173.45 23.90 149.96

12. March 12259 369 645.35 70099.35 701.16 148.73 552.42
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of June 2007

Target - Rs. in SALES ARCHIVED Cumulative
Lakhs Correspon Sales
Cumulative
Sl. Jun-07 ding Sales Correspond
Sales Point up to Jun '07
No. Annual Jun-07 during ing year
Rs. Rs.
Rs. Rs. June 2006 up to June
06
Exhibitions/
1 Institutional 400 33.00 2,358,043 3,969,851 2,777,338 6,394,883
Sales
Bulk
2 Buyers/Distributor 100 8.00 11,630 5492245 - -
s

3 KSIC Showrooms 3,860 258.00 31,771,104 82,857,978 29,849,646 66,027,141

4 Consignment Sales 50 4.00 129,465 592,975 198,462 595,874

Total 4,410 303.00 34,270,242 92,913,049 32,825,446 73,017,898

Comparative Statement showing the fabrics sales from April 2006 to till date 2007

Sl.No. Months April 2006 to March 2007 ( Rs. in Lakhs )

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Dress Total Gross Discount Net Sales
Zari Printed
Materials Meters Sales Rs. Rs.

1. April 3,517 144 1,908.70 22,044.20 19,479,773 3,082,802 16,413,988

2. May 3,555 172 256.05 20,754.55 20,712,679 2,843,725 17,880,862

3. June 5,210 251 328.55 30,364.05 32,825,446 5,793,904 27,054,445

4. July 4417 99 203.25 25041.25 27229934 4136772 23093162

5. August 6679 164 268.70 37905.20 40716879 7763246 32953633

6. September 3510 119 399.30 20358.80 21405750 3375383 18030367

7. October 7496 259 376.35 43028.85 46074549 6324269 39750280

8. November 4400 90 564.65 25259.65 26916396 4755502 22160894

9. December 6913 270 646.00 40152.50 41848919 9792244 32056675

10. January 5098 179 360.65 29384.15 31069217 5632113 25437104

11. February 3553 108 498.85 20634.35 21544738 3841628 17703110

12. March 12353 659 1812.39 73378.39 77264568 16549915 60714653

Total 66701 2541 7623.44 388305.94 407088848 73891503 333197345

Comparative Statement showing the fabrics sales from April 2007 to till date 2008

Sl.No. Months April 2007 to March 2008 ( Rs. in Lakhs )

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Dress Total Gross Discount Net Sales
Zari Printed
Materials Meters Sales Rs. Rs.

1. April 7,119 183 484.80 40,645.80 30,699,659 4,624,029 26,101,258

2. May 3,942 490 332.70 24,708.70 27,943,148 5,006,581 22,962,225

3. June 4,832 173 482.35 28,009.85 34,270,242 6,670,576 27,629,874

4. July - - - - - - -

5. August - - - - - - -

6. September - - - - - - -

7. October - - - - - - -

8. November - - - - - - -

9. December - - - - - - -

10. January - - - - - - -

11. February - - - - - - -

12. March - - - - - - -

Total 15,893 846 1,299.85 93,364.35 92,913,049 16,301,186 76,693,357

4.4 MARKETING DEPARTMENT

SALES AND EXPORT DEPARTMENT

The term selling may be defined as the performance of those activities that
direct the flow of goods and services from producer or seller to consumer or user.

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This department is headed by commercial officer, under him sales executives and
other staffs

DEPARTMENTAL CHART

Commercial Department

Senior Assistant (Sales) Sales Executive

Steno, Typist Sales Staff

MARKETING STRATEGIES:-
The present market context for silk in India is one of the vigorously growing
internal demand for silk fabrics, with growth rates of above 10% per year. It is mostly for
traditional (sari type) design and does not impose sophisticated quality requirements upon
the industry. This situation is likely to continue, unless Indian sericulture is able to
provide sufficient quantities of raw silk at affordable prices. The present trends
represents a limitation to price increases for silk produced in India by import from other
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silk producing countries like China, Brazil, Korea etc., as well as by substitution with
other fibers including by artificial silk. It also appears unlikely that the present demands
can be met merely by expanding mulberry area in order to increase cocoon and raw silk
production. Future additional output is raw silk will therefore mostly have to come from
substantial productivity increases, mainly area and labor productivity.
Concurrently there is a growing demand for silk fabric among the growing Indian
middle class and young urban consumers. These modern silk fabrics typically are
produced by the expanding power loom weaving industry. The quality requirements
imposed by this trend can only be met by bivoltine raw silk for conventional power
looms. The bulk of todays world export demand is almost exclusively based on high
graded quality bivoltine raw silk. If Indian sericulture is unable to generate a substantial
production of bivolitne raw silk, these important market segments will continue to be lost
outside competitors.

HENCE THREE MAIN MARKET SEGMENTS OFFER GREAT
OPPURTUNITY TO INDIAS SILK INDUSTRY:-
o The broadening domestic traditional demand multi bivoltine based
o The domestic demand for non-traditional silk fabrics, based at least partly
on non-graded bivoltine raw silk
o The vast and expanding international market for raw silk, silk fabrics and
ready –mades, based on graded bivoltine silk, an export potential as yet
relatively little exploited by India.

FUNCTIONS RELATING TO EXPORT

 Receipts of intend
 Receipts of enquiry
 Dispatch of acknowledgement of intend
 Preparation of goods for export

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 Arranging insurance coverage
 Obtaining shipping order
 Dispatching goods
 Checking of customers formality
 Sending documents to the importer
 Receiving payment
 Claiming benefits
Price
Price is a basic and critical factor; in generally the return on capital investment
of business enterprise. Pricing methods and policies contribute directly to the success or
failures of a business irrespective of any other single profit activity. KSIC is following a
good pricing policy which is providing the ultimate consumer their privilege of getting
goods at reasonable price.

Sales
The company sales are made through its on units it has around 15 showrooms in
India in different locations, in that 4 of them are in Bangalore, and there is a good
network system of consignment agents which will take care of internal and international
markets. KSIC now introduced online marketing facilities, which will cater to the
customers inside and out side India.

ISO 9001 – 2000 programs

KSIC Ltd got ISO 9001 – 2000 Certificate in the year of 2004, company
is now working under the guidance of ISO
Advertising Strategy for Selling

It is a blend of pure Mysore Silk….Naturally Splendid # emotionally yours

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PURCHASE AND SALES DEPARTMENT

In ordinary sense the term purchasing is the procurement of
materialism, machinery and tools on payment. But today purchasing has acquired
new dimensions and such as it may be defined as “the functions of procurement with
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a view to reduce the investment, variety and value of materials so as to facilitate the
standardization and competitive marketability of the product”.

Functions of purchase department in KSIC

 To maintain regular flow of materials
 To purchase at a competitive price, the right quality from a right
source
 To ensure higher productivity of men, machine and materials
 To ensure production of better quality of products at competitive
costs

Method of purchasing

KSIC adopt centralized purchasing. It includes purchase of raw materials,
stores, land and equipment. Fund, stationary, supplies, chemicals etc. all bulk purchases
are petty purchases are made though this department except maintenance purchase.
Maintenance purchases are made by administration section.
Procedure in the purchase department:

 Receiving purchase requisition:

This stores office as and when purchase requisition or intends are received
from the concerned department. It should before two or three weeks.

 Exploring the source of supply:

The selection of right source of supply is very important from the point of view of
getting the materials in the time and desired quality at a price. The different categories of
suppliers are found out through advertisement, tender, etc. the quotations are compared

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with others and from this the best is selected. The chemicals are purchased by yearly
quotations. In KSIC, two types of suppliers are found.

 Manufacturing

 Distributors or commission agents

QUALITY CONTROL

The company has been set up a quality control section for the purpose of quality
control and research and development. The company has a continuous research and
development programmes a result of which, they can identify new product lines. The
quantity control ensures the consistent quality products.

OBJECTIVES OF QUALIY CONTROL

1. Continue improvement in operations
2. Improvement in export turnover
3. Consumer satisfaction

FUNCTIONS OF QUALITY CONTROL

Quality inspection

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Quality of silk and fabrics are checked during various stages of production
such as dyeing, weaving, stenciling etc if the quality of the product is beyond the
standards prescribed then it is rejected.

Product Development
This function includes the development of original products, modifications
etc. these functions are done in accordance with the taste and preference of customers.

Designing
Designing of silk products are done by both designers of international
reputes and national reputes. They creates new concepts and trends in the area of
weaving colour combinations.

FINDINGS;-
1) Lack of direct feed back
2) Improper client relationship
3) Lack new learning
4) Less unique experience
5) Control over resources
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6) Lack scheduling own work
7) The person selected as a supervisor may not be qualified
and this may lead to poor supervision
8) Changes in technology
9) Misunderstanding between the workers and managers
10) Lack of raw material supply
11) Direct feedback
12) Client relationship
13) Lack of communication skills
14) Slow growth of the organization
15) Large number of workers

5.1 SWOT ANALYSIS:

STRENGTHS:-
1) KSIC is a limited company.
2) KSIC awarded the certificated of geographical indication for Mysore silk,
elevating it to a brand name for a exclusive use.
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3) KSIC is the only organization to give guarantee for its zari saree in the form of
embroider code number which is unique to each saree.
4) KSIC uses only high quality pure silk and 100% pure gold zari.
5) KSIC have a patent rights of Mysore silk brand

.
WEAKNESS:-
1) Lack of technology
2) Lack of skilled labours
3) Highly competitive companies
4) More than 45 dealers in Bangalore were misusing the name of Mysore silk
5) Other silk product are saled by the products in the name of Mysore silk

OPPORTUNITIES:-
1) Providing employment opportunity for rural people
2) Employees will get PF, ESI, minimum bonus and gratutity benefits
3) Giving apprenticeship training for workers

THREATS:-
KSIC Managing Director P Vijayan told Deccan Herald that the certificate
would help control misuse of the brand name.”During an investigation in
2004, KSIC found than more than 45 dealers in Bangalore were misusing the
name of Mysore silk. They continued to market other silk products in the
name of Mysore silk, after which their dealership was cancelled,” he added.
The KSIC will also be coding every saree borders. The code will contain the
name of weaver and the date of weaving. In case of complaints, the weaver
can be traced immediately.
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KSIC produces 6,000 sarees every year and, armed with the GIR certificate, KSIC now
plans to have a distributor in every state

5.2 OBJECTIVES OF THE STUDY
1. Societal objectives
2. organizational objectives

 functional objectives
 personal objectives

3. functional objectives

CONCLUSIONS AND RECOMMENDATIONS

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1. DIRECT FEEDBACK: Employees should be able to get immediate knowledge
of the results they are achieving. The evaluation of performance can be built in to
the job (as in an electronic spell-checker indicating the presence or absence of
errors) or provided by a supervisor.
2. CLIENT RELATIONSHIP: An employee who serves a client or customer
directly as an enriched job. The client can be outside the firm (such as a mechanic
dealing with a car owner) or inside (such as computer operator executing a job for
another department).
3. NEW LEARNING : An enriched job allows its incumbent to feel that he is
growing intellectually. An assistant who clips relevant newspaper articles for his
or her boss is , therefore, doing an enriched job.
4. UNIQUE EXPERIENCE: An enriched job has some unique qualities or futures,
such as quality controller visiting a supplier.
5. CONTROL OVER RESOURCES: For each employee to have control over his
or her resources and expenses. For ex., He or she must have the authority to order
supplies necessary for completing his job.
6. COMMUNICATION SKILLS: Communication skills refer to clarity of
thought correct word usage, grammatical accuracy proper delivery of messages,
correct spelling or pronunciation, and proper organization of sentences or

7. speeches. Absences of these makes it difficult for the receiver to understand the
message clearly.
8. SCHEDULING OWN WORK: Freedom of ones own work contributes to
enrichment. Deciding when to tackle which assignment is an example of self
scheduling. Employees who perform creative work have more opportunity to
schedule their assignments than those who perform routine jobs.
9. A qualified person must be selected by an interview.
10. Giving a proper apprenticeship training about the new technical machines to the
workers.
11. Well co-operation between the supervisors to the workers.
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12. Quality raw material should be supply at a time.
13. Good relationship between the producers to the clients/consumers.
14. Proper communication skills must be applied to the organization.
15. Improving the growth of the organization like, development of technology,
communication skills, qualited raw materials and time management etc.
16. Unnecessary workers should be reduced

.

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