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“True learning is born out of experience and observation”. Practical experience is the best type of learning that one can remember as the aspects of administration and management. The day comes to apply the theoretical knowledge in corporate world in context of modern industrial enterprise that has to go through its different terminal to achieve the corporate goals. The main objective of practical training is to develop practical knowledge and awareness about industrial environment and business practices in the student as a supplement to theoretical studies. It increases the skill, ability and attitude to perform specific job in industrial environment.”
Fortunately I got opportunity to visit and complete my Fortunately I got an opportunity to visit and complete my summer training program at CAMPCO CHOCOLATE FACTORY, at Kemminje, puttur. Here I got chance to see the functioning of all major departments and imbibe a lot learning of the subjects.
The MBA course offered by the Bangalore University has its own unique syllabus which requires its MBA students to undertake an internship with any of the leading business houses for a period ranging from 4 weeks to 6 weeks during the second semester. The purpose of this internship is to enable the students to appreciate and understand the nuances of the practical world vis-à-vis the theoretical input administered during regular academic sessions. This helps in creating managers who are equipped with the experience of
linking the theoretical inputs with those of practical exposure and come out with creative solutions and ideas in enhancing the business. In partial fulfillment of MBA degree of Bangalore University I took up an organization study at CAMPCO chocolate Factory, puttur for a period of four weeks. The objective is to learn about the working of a company. The practical aspects was studied and compared with the theoretical aspects learnt in the course. The study involves visiting the various departments of the organization to learn about their structure and their functions. The incorporation, background, vision and mission of the company were briefed by the Administrative department. The work flow model was briefed before the visit to the production unit. The product profile was collected by visiting the departmental outlet.
The study was more emphasized on 7S Mc Kinsey’s Model and the SWOT analysis of the company. The study provides a good exposure to the corporate world and a good comparison of the practical and theoretical aspects as studied in the course.
I, N.Pramod Shetty, do hereby declare that the internship report on “CAMPCO CHOCOLATE FACTORY, PUTTUR” has been accomplished by me under the eminent guidance of Professor Hema Harsha, Faculty, M.P. Birla Institute of Management, Bangalore. I submit this report in partial fulfillment of the requirements for awarding “Master of Business Administration” degree of Bangalore University during the
academic year 2008-10, and not for the award of any degree of any other university. Place: Bangalore Date: Shetty) (N.Pramod
This is to certify that the Internship Report on “CAMPCO CHOCOLATE FACTORY” has been prepared by Mr. N.Pramod Shetty bearing registration number 08XQCM6048, under my guidance. This has not formed a
basis for the award of any other Degree/Diploma by Bangalore University or any other University. Place: Bangalore Date: Harsha (Internal guide)
This is to certify that the Internship Report on “CAMPCO CHOCOLATE FACTORY” has been prepared by N.Pramod Shetty bearing registration number 08XQCM6048 under the guidance of Professor Hema Harsha, Faculty, M.P Birla Institute of Management, Bangalore. Place: Bangalore Date: Malavalli Dr. Nagesh S (Principal)
The report is based on the organization study at the CAMPCO CHOCOLATE
FACTORY, puttur for a period of four weeks as per the B.U norms. An attempt was made to learn about the manner in which a company works. The study included the visits and collection of information from the various departments of the company with the following objectives: • Inception and background of the company. • Ownership pattern and the nature of business carried on. • Vision, mission and the quality policy of the organization. • The product profile and the
competitors for the same. • Workflow model of the company. • The structure of the company and the various departments along with the main functions. • The marketing strategies used. • The chocolate industry and its contribution to the economy. • SWOT analysis of the company. A visit to the retail outlet was made to learn about the various product lines. An interaction was made with the visitors to
know their views towards the company’s products and their expectations from the company.
The immense gratification this project work has given me and does not lead to a sense of fulfillment unless I express my boundless gratitude to all those who made
this work successful. I do recognize that mere thanks giving would not redeem me of my indebtedness for all the timely help, support and guidance I received. I script on this page my sincerest thanks to each one of them. I profusely thank Mr.Abu Baker, AGM of CAMPCO for giving me an opportunity to do my internship in the esteemed organization and for giving the information about the company and guiding me throughout the program. I am extremely thankful to M/s Hema Harsha Lakshmi Narayana, Professor, M.P Birla Institute of Management, Bangalore, who has guided me throughout this project by giving valuable suggestions and advice. I equally thank all the Employees and Executives of CAMPCO who have extended their suggestions and interacted
with me and helped me learn a lot during the project. I offer my humble salutations to the lotus feet of the Almighty for his bountiful blessing without which I would not have completed this endeavor successfully.
Chocolate was discovered in the 18th century and every child’s dream came true all over the world. The various brands of chocolate often spoken about in India are Amul, Cadbury and Campco. In olden days, the ancient human almost led a nomadic life wandering from place to place in search of food. Food is the basic source of energy for living organisms including human beings. Hence all living being need food. But in modern period, man had started discovering new methods of producing food through Agriculture. The various activities involved in getting food crops through agriculture are known as agricultural practices like management of soil, sowing, transplantation and application of manure and fertilizers irrigation, weedcontrol, crop improvement techniques, crop harvesting and protection.
India is a land of villages. Nearly 65-70% of our country is agriculturists. About 75% of the land used for agriculture is cultivated for basic food grain hence it has become a basic industry in our country. Agriculture is one of the oldest occupations of human beings. Agriculture means ploughing of the land, sowing seeds, protecting plants and obtaining crops for the use of people and domestic animals. Commercial crops not only help to earn foreign exchange but also provide raw materials for industries. Cocoa is also one of the important commercial crops in India. Cocoa is grown on the slopes of Niligiri Hills. The discovery of cocoa was only a first step in the direction of chocolate. The Mayas were the first to cultivate the cocoa bean for the fruits is yielded. They used the beans as an ingredient in their favorite
chocolate drink xocoatl. The Mexican Indian world chocolate comes from a combination of the terms chocolate consumed in beverage force.
Before the Spanish explorer discovered the chocolate and other ‘exotic’ foods were totally unknown in Europe. In the 1600 European began to open fashionable chocolate houses to serve xocoatl as Hot Chocolate scattered with sugar. In the 1700’s the English began with adding milk to improve the flavor. The first factory for processing and manufacturing chocolates in India was started during the world war-II at Bilimoria but due to tough competition from foreign products the company is ceased and stopped its process and it made second attempt in 1936. But it faced failure as the size of operation was economical. Finally it made
third attempt to find its success to restart its production. Messrs Sathe Biscuit and chocolate co. ltd., Poona commenced production of cocoa powder on a small scale and chocolate manufacture was taken up in 1941. Then the production gradually increased. Later, Madhu Canning Factory Agra, East India Distilleries and Sugar Factories Limited Madras started the production of chocolates. With the machineries manufactured by five major companies of the cocoa processing aand chocolate manufacturing namelyM/S Carle and Montanari Spa, Italy. M/S 1-Aasted International APS, Denmark. M/S Otto Hansel Gmbh, West Germany. M/S Sollich Gmbh and Co. kg, West Germany. M/S Sig Swiss Industrial Co, Switzerland. Cadbury Ltd., which was so far importing
cocoa and chocolates into the country, established plant in Bombay for processing and packing of cocoa imported in bulk during the initial stage. The new firms that have engaged into this field in India are Amul, which has completed 50 years of service and the CAMPCO, which came up during the 80’s. CAMPCO is one of the largest factories in South Asia. Cocoa is used as beverage and chocolate is mainly used as confectionary and to a small extent also used as beverage. The market share of CAMPCO is 5-8%, the Cadbury’s market share is 70% and the Nestlé’s market share is 15-20%. The penetration of chocolate in the country was estimated at 5.5% in 1998. The penetration in urban India stood at while that in rural India as a mere 2.3%. Thus the consumption of chocolate is largely restricted to urban areas where too, the penetration is relatively low. During the last five years
growth in chocolate in India has covered between 10% and 20%, with average growth being at the range of 14-15%. Restricted to urban areas played in the segment have attempted to accelerate growth by adding new consumers to the chocolate market. Although the country with a culture of consuming and exchanging sweets, prepacked branded sweets are yet not popular. The consumption pattern and purchase habits trend to favor local, freshly made products. The ability of chocolate companies to enter this market could provide unprecedented with may be tempering of income pyramid and introduction of low price packs.
BACKGROUND AND INCEPTION OF
THE COMPANY “CAMPCO” is the short name of the Central Areca nut and Cocoa Marketing and Processing co-operative limited. CAMPCO was registered on 11th july in the year 1973, under section 7 of Karnataka Co-operative societies act of 1959. The main activity of CAMPCO is procuring and marketing of Areca nut and also manufactures chocolates. CAMPCO was set up with active support of Karnataka and Kerala Government. The growers who were getting a reasonable price faced a sudden marketing crisis during the year 1970-71 when the price of the areca nut began to fall. The situation worsened during 1972 and the price of areca nut fel to such an extent that the growers could get only half of the price. But the cost of living was rising as the cost of input was steadily increased. This created factually a panic among the growers. There was no organized marketing arrangement for areca nut.
Later on the Karnataka Government constituted an expert committee, which recommended to the State Government to organize a Central agency either in the public or the co-operative sector. With the help of Government of Karnataka and Kerala, the “Central Areca nut Marketing and Processing Co-operative limited” popularly known as “CAMPCO” on 11th july 1973 under section 7 of the Karnataka Co-operative societies Act 1959. The growers of areca nut appealed to the Government in turn requested CAMPCO to help the farmers by buying their products. CAMPCO thus went into business of cocoa beans in 1980. After that CAMPCO was able to export cocoa beans of worth Rs.4 crores to the European countries in their initial phase of operation. In the mean time CAMPCO has to face the problem of limited internal market and unremunerative export market. In order to overcome this and increase the local
consumption of cocoa based products and export value added cocoa semi-finished products. CAMPCO put up a chocolate factory at Puttur, 50km away from Mangalore. CAMPCO has signed agreement between companies. They are: AGREEMENT WITH M/S NESTLE INDIA LIMITED. CAMPCO chocolate factory entered into an agreement with M/S Food Specialties Ltd known as M/S Nestle India Ltd, on 7th February 1990, for manufacture and supply of bulk quantity of chocolates and cocoa products ranging from 2500MT to 3750MT p.a for an agreed manufacturing fee of Rs. 12,000/- per MT of raw materials. At first Nestle didn’t have any plant and because of experienced people availability of all type of chocolate production with sophisticated machineries nestle made an
agreement with CAMPCO. This agreement is also made good result on CAMPCO to gain demand in competitive market. AGREEMENT WITH AMUL LIMITED CAMPCO factory had entered into an agreement with Amul India Ltd, on January 2001 for the manufacture and supply of bulk quality of chocolates. The agreement was made only for 5 years. The Amul Ltd supplies the raw materials to the CAMPCO Ltd; the CAMPCO makes chocolate and supply to Amul Ltd. The chocolate products, which were produced to the Amul Ltd, are as follows: • Milkair – 5.5gm – white centre chocolates. • Chocolate – 5.5gm – brown centre chocolates. At present CAMPCO is having its own marketing team and the present set up as follows:-
CAMPCO is one of India’s most modern chocolate manufacturing cooperatives. Today CAMPCO has diverse products. It is now affording product quality with a variety to cater wider section of the market. CAMPCO manufactures and markets a different range of products under its own brand name. The production and demand for chocolate have been rapidly increasing in India at the rate of 20% during the last 5 years. The average growth is at 20% internal chocolate market, which is now about 5500 tonnes. CAMPCO chocolate unit sales performance in terms of value is increasing year by year. The sale includes sales of semi finished products also. The major purchases of semi finished products within India are as follows• Britannia
• Smith Kline Beechem • Parley • Small Confectionery Manufactures • British Biological • Bambino Sales performance during the last 7 years is as shown below: YEARS 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 CAMPCO at Glance
Full Name of the organization : The Central Areca nut and cocoa Marketing and Processing Co-opeative limited
SALES(MT) 2425.92 2596.73 3140.45 2622.03 3995.5 4742.19
Status: A Co-operative Society registered under the multi state co-operative societies act 1984. Area of Operation: Karnataka and kerala state for membership. No limit for marketing Main objective: Procurement/Processing/Marketing of arecanut and since 1980 cocoa/cocoa products Date of Registration: 11-07-1973 Date of commencement of business : 12-11-1973 Registered office : Varanasi towers at Mangalore. Brand name : CAMPCO Type of ownership : Semi-Government Date of entry into Chocolate : March/April 1987 Authorized share capital : Rs.35 crores. Paid up share capital : Rs. 14.90 crores as on 31-032008. Number of Branches and Depots : 168 (all over India)
Industries owned: 1. The CAMPCO Chocolate unit. Puttur 2. The copper sulphate manufacture unit at sagar (shimoga district). Location : Kemminje, Puttur. Type of Organization : Co-operative Society. Number of Employees : 237 + 130 workers appointed on contract. Production Capacity : 8800 MT. Number of Shifts : 6 am – 2 pm 2 pm – 10 pm. 10 pm – 6 pm.
NATURE OF THE BUSINESS CARRIED BY CAMPCO. The Central Arecanut and Cocoa Marketing and Processing Co-operative Limited (CAMPCO) was registered on 11th july 1973 under section 7 of the Karnataka Co-
operative Societies Act 1959 read with section 4(2) of the multi unit Co-operative Societies Act 1942 and subsequently it has amended its byelaws and the same are registered under the Multi state Co-operative Societies Act 1984. Under certificate No.L/11016/42/87/L and is dated: 8-121988. The main activity of CAMPCO is procuring and marketing of Areca nut and also manufactures chocolates. Features of the CAMPCO Chocolate Factory Following are some features of CAMPCO Chocolate factory: The Chocolate factory is a Co-operatively owned organization and maintained by CAMPCO. • The factory is the largest in south-east Asia. • The factory is one of the most modern in the world. • The factory is equipped with the latest
technology and machineries, imported from five firms of 4 European countries. • The factory is equipped with service installed by the best firms in India. • The factory is designed by well experienced and expert architects and consultants. • The factory is situated in an industrially backward rural area in the midst of Cocoa growers. • It generated employment for more than 200 personnels. VISION, MISSION POLICY AND QUALITY
Vision of the Company “CAMPCO is formed to help the farmers, procuring more and more areca nut and cocoa, then utilizing these materials in a better way which will help the farmers to get market for their products.”
Mission of the Company CAMPCO’s mission statement is: “Co-operation between people Harmony between faiths… May the fragrance of peace prevail forever” “From areca to chocolates, this policy has taken us a long way. And we are happy to share this secret with you. At CAMPCO we, symbolize the triumph of the co-operative spirit. And how co-operative can be a source of prosperity.” This mission statement maintains that the company has a good relation between people and harmony between faiths and high set of values and purposes behind its existence. QUALITY POLICIES ‘HACCP’ (Hazard Analysis Critical Control Point) is a quality policy which is used for
food safety. Food safety is the top concern among food processors for very good reasons. It is critical for corporate survival and success. If there is a significant safety failure, excellence in other areas of corporate management will be wiped out and the company will loose on= • Regulatory Compliance • Vendor Certification • Supply Chain Performance and Contract Fulfillment • Corporate Value PRODUCT PROFILE The product of CAMPCO is chocolate. A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. The chocolate products are classified into Moulded, Enrobed, Éclairs and Drinking Chocolate.
MOULDED CHOCOLATE Moulding is the casting of liquid chocolate into moulds (metal or plastic) followed by cooling and demoulding. It includes products such as CAMPCO Melto 37gms and 10gms, CAMPCO Cream 37gms and 10gms. ENROBED CHOCOLATE It is a process of coating a center with chocolate is other confectionery based material so as t allow the coating to flow over the shape in a controlled manner. It includes products such as CAMPCO Turbo, CAMPCO Treat, CAMPCO Megabite, CAMPCO Bar, 4ever(32gm), krust 20gm and 12 gm. ECLAIRS Éclair is a modified toffee containing an
outer shell of caramel with a centre filling usually chocolate, chocolate creams etc. it consists of products such as CAMPCO Eclairs, Melto Eclairs, Brown Center Eclairs and Playtime. DRINKING CHOCOLATE Drinking chocolate can be prepared by following ingredients sugar, cocoa powder, glucose, vitamin C, lecithin, salt. It includes product such as CAMPCO Winner (500gms and 100gms). THE VARIOUS CHOCOLATES FROM CAMPCO CHOCOLATE FACTORY
Net wt/unit Moulded Chocolate Melto Melto Cream Campco Bar Enrobed Chocolates Krust/Kraze Mega Bite 37 gms 37 gms 45 gms 15 gms 17 gms 10 10 10 5 5 M.R.P (in Rupees)
Turbo Treat Drinking Chocolate Winner Eclairs Playtime(small) Campco Eclairs Campco Toffee Eclairs 2000 Supply to Nestle Ltd Milkybar Eclairs Classic (Brown) Milkybar (White) Supply to Amul Ltd Milklair Choclair Semi finished goods Cocoa Mars Cocoa Butter Cocoa Powder Chocolate Mars Choco Paste Butter Chocolates
25 gms 25 gms 500 gms & 100 gms 4.5 gms 4.5 gms 4.5 gms 5.5 gms 5.5 gms 37 gms 40 gms 5.5 gms 5.5 gms 25 gms 25 gms 25 gms 500 gms* 20=10kgs 20kgs 500 gms* 20=10kgs
5 5 65 & 18 3 0.50 0.50 1 1 10 14 1 1
AREAS OF OPERATIONGLOBAL/NATIONAL/REGIONAL The area of operation of this cooperative for procurement and processing of
areca nut and cocoa extends to the states of Karnataka and Kerala, but for the marketing activities the area has been extended to the whole country. Areca nut purchase operations were extended to Assam, Andaman and Goa but in recent year’s purchase operations in Assam had to be closed due to disturbances. GLOBAL CAMPCO produces wide range of cocoa based products of consistent quality, colour and flavor to satisfy the wide spectrum of customers all around the globe. The company has built a strong system base for the confectionery of chocolate industries in U.S, Australia and Malaysia. Export on the other hand generated a total of about U.S $14 million over a 5 year period. Among the leading buyers were Malaysia, Korea and USA.
NATIONAL The company has various nationalized branch offices through out India under them are the distributors followed b the dealers who sell the goods to the ultimate consumers. National Office throughout India North: New Delhi East: Kolkata West: Navy Mumbai South: Bangalore REGIONAL The company has regional offices through out Karnataka. It has both dealers and distributors and the distributors are followed by dealers and ultimately to the customers. Regional offices are as follows – Mangalore, Hyderabad and Delhi.
OWNERSHIP PATTERN The type of ownership of CAMPCO is semi Government. So the workers get retired at the age of 58years. After the retirement the CAMPCO gives gratuity to their employees but no pension. COMPETITORS INFORMATION CAMPCO has competitors such as Cadbury, Nestle, Parrys, Nutrine and Amul. The CAMPCO has been unable to achieve the volume growth targets because it has losing market share. Cadbury continues to dominate the chocolate market with about 70% market share and Nestle has emerged as a significant competitor with about 24% share. INFRASCTUCTURAL FACILITIES The CAMPCO chocolate factory is
located at Kemminje village of Puttur Taluk. And it was inaugurated on 1st September 1986. There are 247 numbers of employees working in the factory. CAMPCO is a two storied building. The first floor includes the office of the CAMPCO and chocolate packing division. The second floor includes the deputy general manager chambers, quality control department, personal department and different employee cabins. The company also includes security office at the entrance, separate A/C units, and separate vehicle parking place and quarters for employees including sitting facility, washing facility, toilet facility, dressing rooms, medical benefits etc. CAMPCO has two wheelers, four wheelers and lorry as transportation facilities. The surroundings of chocolate factory is filled with gardens and planted trees like areca nut, coconut, cocoa, cashew etc. ACHIEVEMENTS/AWARDS
Best Export Award 2004-05 for processing of CAMPCO Chocolate and for processing Areca nut. And it has also achieved success towards adopting fully automated machines for the production process. FUTURE GROWTH AND PROSPECTS CAMPCO has a better scope for expansion of its activities in relation to different units like areca nut, cocoa in order to safeguard and strengthening of CAMPCO function more effectively. • It has a target open at least one sales depot in each state. • It proposes to enter the retail market for areca nut and products like “supari”, “panmasala” etc by established units. • CAMPCO is thinking of starting its own bank called CAMPCO bank, to provide banking services to the company. • The future plan about production is to
maximize output without sacrificing quality, maximum quantity control, reducing the cost, improving the efficiency etc. • They also now introduced a new product like a small products to Amul Ltd, winner, bar, coated bars with different flavors, chocolates. • CAMPCO also planned to increase its sales by advertisements. • Capture international market by latest technologies. • Conducting marketing research for knowing consumer tastes. • Enlargement of transportation and ware housing facilities with safety precautious. • Improved qualify of wrappers of CAMPCO chocolate which are not up to the mark. WORK FLOW MODEL (END TO END) The production process of CAMPCO Chocolate factory is a continuous process
which is divided into 1.Cocoa Processing 2.Chocolate Processing COCOA PROCESSING The CAMPCO chocolate factory collects only the dry cocoa beans. The wet beans are fermented and dried in the sales depots. There after processing begins: 1.Cleaning 2.Roasting 3.Winnowing 4.Alkalization 5.Nib ginning(milling) 6.Liquor Processing/Hydraulic Processing CHOCOLATE PRODUCTION PROCESSING 1.Preparation of ingredients 2.Mixing 3.Refining the mixture 4.Conching 5.Tempering
6.Molding 7.Cooling CLASSIFICATION OF CAMPCO CHOCOLATES CAMPCO produces larger amount chocolate based on 3 classifications: 1.Molded Chocolate 2.Enrobed Chocolate 3.Éclairs
COMPANY PROFILE WITH REFERENCE TO THE 7-S McKINSEY’S MODEL. According to Tom Peter and Robert Waterman, organization change is not simply a matter of structure, although structure is a significant variable in the management of change. The successful
execution of a strategy required the right alignment of seven vital inter-connected activities and processes within an organization, namely1.Structure 2.Strategy 3.System 4.Style 5.Staff 6.Skills 7.Shared Values
The structure is the skeleton of the whole organization. It describes the formal relationship among various positions and activities. It provides information about who reports to whom and how tasks are both divided and integrated. And also CAMPCO follows functional organizational structure. ORGANIZATION AND MANAGEMENT The management of CAMPCO vests in the boards of directors consisting of 17 directors. These directors are elected or nominated as per the provisions of Bye laws. The managing director is appointed by the Government of Kerala. The day today activities are conducted by the managing directors. The Executive committee and Business committee will devote more time to scrutinize and decide about the financial and business transaction of the factory.
There is one or two legal advisors as well as one of the directors is the nominee of IDBI to facilitate and make the management more effective. Two committees have been constituted. They are as follows; The Executive Committee a)President. b)Vice President c)Managing directors d)Two directors from each state. Business Committee a)President b)Vice President c)Managing directors d)Two directors from each state (Karnataka and Kerala) e)Two senior most officer for ARECA marketing.
f)The Head of CAMPCO Chocolate factory, Puttur. Membership of CAMPCO There are five different types of shares; class A, B, C, D and E issued to different class of people. ‘A’ class is open to agricultural produce market. ‘B’ class is open to agriculture produce market committee of Areca and Cocoa growing areas, co-operative marketing and consumer federation, any other multi-state co-operative society or any corporation owned or controlled by the Government. ‘C’ class is open for individual growers of Areca nut and Cocoa in both the states. ‘D’ class is open for state Government and
Central government and NDC. ‘E’ class is merchants and agents who have business in connection with CAMPCO. Functional Departments There are several functional departments in CAMPCO chocolate factory, which are handling various operations. They are a)Production Department b)Administrative Department c)Quality control Department d)Stores Department e)Marketing Department f) Maintenance Department g)Accounts Department h)Security Department Production Department The production department is headed
by production manager. Under him/her there are supervisors to look after the production activities. The production activities are in three shifts by rotation. The packing supervisors also come under the production department. The supervisors supervise the work of packing department and personnel work under piece rate system. The main function of this department is to achieve targeted production objectives. They are: • To follow up daily production schedules as per the plan. • To upgrade the technical efficiency of production. • To maintain relationship with other department. In production department, the Chief Manager plans the different production as per the market requirements. The future plans of this department are to maximize the
output without sacrificing quality, reducing cost and improving quality. Administrative and Personnel Department Administrative Department. The administrative department looks after the day-to-day administration activities of the factory. at the top level there is an administrative manager. Normally the General Manager carries over day-to-day administrative activities in the factory. He is also assisted by the various departments in the factory. The General Manager is accountable to the head office that is in Mangalore. Personnel Department Personnel management deals with the human aspects in an organization
undoubtedly; people are most complete factor in an enterprise or organization. Main objective of this department is to maintain the quality standards, work level and satisfactory level of production and also to develop the procedure to help to select the right person for right job. Personnel department of CAMPCO looks after the day to day administrative activities of the factory. At the top level there is an administrative manager normally the general manager carries out day to day activities of the factory. In Personnel department, recruitment forms the first stage in the process, which continues with the selection and ceases with the placement of candidate. Management should recruit right kind of people at tight time for right place. The vacancy posts are advertised in 3 leading newspapers of Kannada, Malayalam and English as per the service rules of CAMPCO. The selection of employee is
done through competitive examination and interview. Written test is conducted by the outside agencies. The interview and selection of candidate is done by management. The candidate recruited to the particular post may be placed under training for a prescribed period or such extended period. If it is found necessary the pay shall be fixed by the M.D from time to time. If the trainee discontinues the training, he/she shall be liable to reimburse the entire cost of training as assessed by the M.D. Quality Control Department The quality control department is headed y the quality control manager. Under him/her there are three supervisors. In this department there is 1 microbiologist. There are few technical assistants to help the microbiologist in his work. They check the quality of raw materials and also the quality
of the products after production. If the firm ahs made any dilution on its quality, then it will definitely affect its sales and profitability. That is why this department serves as one of the important department. In this firm this department has to maintain the quality of the cocoa beans used for production upon which quality of chocolates depends. Different types of quality control techniques used in the chocolate plant; • Micro-biological quality control • Raw and packing material analysis • Process control • Finished product analysis • Bacteriology testing products for harmful pathogens • Shelf-life studying • Pest control Stores Department
The stores department is headed by store manager. Under him/her there are supervisors. The main function of the stores department is divided into 3 units. These three functions are; receiving the raw materials for manufacture of chocolates and also packing materials and sending it into go down. The stores managers are responsible to provide the raw materials to required department and store the finished goods in the store. The store’s activities are carried out in shifts by rotation. There are four documents maintained by the stores department. They are; Material inward registers Daily stocks report Material register note Return note book Marketing Department The marketing department is mainly classified into an areca nut division and
chocolate division. Each division is headed by Assistant General Manager. Under him there are Chief Manager, senior manager and regional officers. Assistant General Manager controls all the activities relating to the marketing department. He plans and prepares new marketing policies and it can be properly implemented. The main objective of marketing department is to fulfill the customer satisfaction and increase company’s sales and to contribute quality products in the market. The main functions of this department are: To plan marketing program To analyze the marketing opportunity To develop marketing strategy To connect the consumer with the product Sales In CAMPCO sales are being conducted in two ways. That is through
depots and sales representatives. It has different depots though out India. The depots are being opened to cater to the needs of whole sellers and retailers. A collection charges being collected in the concerned depots. CAMPCO has introduced the services of sales representatives throughout India. The rates and quality offered for sales are being decided by the CAMPCO and on getting information from its customers, their representatives place written orders. The sales of Cocoa products are being made at CCF/Area sales office level through the distributors/ super stockiest on cash or credit basis. The Executive Director of marketing/Regional managers required to supervise and excersise control over CCF, Area sales office. Channel of Distribution Of the four elements of marketing mix that is product, price, promotion and distribution.
The channel of distribution plays a vital role especially in the distribution of consumer goods. CAMPCO generally follows and uses indirect channels of distribution. CAMPCO supplies goods to super stockiest and in turn supplies to whole salers and whole sellers to retailers. CAMPCO offers 21 days credit facilities to whole seller and for delayed payment they charge 21% of interest. Services The product manufactured in CAMPCO (CCF) are marketed and sold through out the country and it is exported to some countries. The proper service that is the company provides service to its customer in the form of prompt delivery of goods should be given by paying attention to the customer complaints and services. The improving quality of customer education
and training and services is the main criteria of CAMPCO that include ability to provide replacement parts and repairs services. Maintenance Department The maintenance department is headed by maintenance manager. Under him/her there are maintenance assistants and engineers. They check the machines and are responsible for their working and maintenance. There are two types of maintenance. 1. Breakdown maintenance. 2. Preventive maintenance. Breakdown Maintenance This refers to the supervision of machineries only after it breaks down and makes it fit for future use.
Preventive Maintenance Preventive maintenance refers to take care of machinery before breakdown. Under this system the machines are frequently checked and repaired. Account Department/Financial Department The CAMPCO chocolate factory has maintained an accounts department. The chief accountant is in charge of this department. Under him are the senior office assistants and junior office assistants working in the department. A report has to be sent to the head office about the day-today work and expenses incurred. The functions of account department are: • Handling day-to-day accounts of the factory • Providing salaries to the staff • Maintaining accurate financial records • Giving information to the head office
• Payment of bills and keeping account Security Department Security department is also important for each and every organization. Security departments has 10 acres of land and Rs.125 crores worth of assets including buildings, land and machines and others. It provides 3 acres of land as quarters to the employees. This factory covered with fencing barbered wire leaving one main exit called gate. The main gate is controlled by security person called senior security officer. He should be a graduate and he should have at east 15 years of service in defense. The duties and responsibilities of security department are: • Checking of incoming and outgoing personnel, vehicles, items etc • Maintenance of discipline inside the factory • Prevention and detection of theft etc. • Security • Other duties are empowered by managing
director of CAMPCO. SKILLS The Mckinsey’s 7-S framework considers skill as one of the important attributes or capabilities of an organization. The term skill includes those characteristics which most people use to describe a company CAMPCO chocolate factory includes skilled staff and workers in its operations and productions who are expert in their own field. Administrative officer have code knowledge and skill in their particular field, it is preferable to have master degree in their work. Machine operators of different department have wide knowledge and skill about operations and handling of machines, chocolate manufacturing process etc. if the selection of skilled worker is done properly then it will result on effective operation of the manufacturing process, administration
etc. CAMPCO also follows technical skills, innovative skills, communication skills. In CAMPCO all new recruits (both technical and managerial) are provided “on the job-training method”. Under this training method, the individual is placed on a regular job. It has the advantage of giving first hand knowledge and experience under the working condition. STYLE Organizations differ from each other in their styles of working. The styles of an organization is evident through the pattern of action taken by the top management over a period of time. But, the Mckinsey’s framework considers styles as something more than the style of top management. CAMPCO follows participative style of management. Participative style of CAMPCO helps in the processing and marketing of chocolates also. Each and
every departments take decisions together which help the company to take the steps in their daily transaction or operations. STRATEGY Strategy is the set of decision and action plans aimed at gaining a sustainable competitive advantage. Today most of the enterprises are engaged in strategic planning. The degree of the sophistication and the formative vary considerably from organization to organization. In the case of CAMPCO chocolate factory, the strategy is to produce and sell standard and good quality chocolates with well guided procedure and good quality of raw materials from different supplying company with a quality check to delivery the products to the customer. Strategy includes objectives, goals, purpose and policies, action plans and tactics. The objectives are: • To procure areca nut and cocoa of the
members and if necessary from other growers. • To undertake processing of areca nut and cocoa and to establish industries for the manufacturing of finished and semi finished products from areca nut and cocoa. • To open branches and depots, godowns and factories. • To arrange for procurement, manufacture and distribution of pesticides, fertilizers etc. • To undertake pooling, packing and standardization of Areca nut and cocoa. Pricing Policy CAMPCO adopted the policy of full cost pricing. But sometimes they marketed the products at price lower than that of cost price and its prices are normally lower than competitors. CAMPCO has adopted on pricing policy where by the company specifies the prices to be charged to each dealer in the price list published by the
company. There is no geographical change in prices. Discount Policy It has varying discount share, which includes trade discounts, cash discounts, special discounts etc. In some cases discount rate varies from dealer to dealer depending on sales turnover and in some cases the discount varies depending upon size of purchase. Collection Procedure The dealer provides security such as bank guarantee. The payment must be made within 15-40 days depending upon sales turnovers. Systems Systems in the 7-s framework refer to all the
rules, regulations, methods and procedures (both formal and informal) that complement the organizational structure. CAMPCO is fully mechanized plant. The function of production control in products of the productions parts, products of required quality and quantity at the required time and also provides feedback to the production department and allocates or uses the resources available to achieve the objectives. The production planning is valued on the factors of designing of products that determines the equipment, capacity etc. In Campco chocolate factory various systems have been installed in each functional areas so as to enhance the level of interaction and coordination thereby, in order to improve the overall organizational effectiveness. Some of these systems include:Computer System
In Campco, each and every department is linked with intercom facility, which helps to share each other opinion about company’s daily transactions. Office and each department is equipped with computer system. Quality Control System In Campco, production is carried quickly according to quality standards. The quality of product manufactured is of international standards. The function is to check the quality of raw materials and also the quality of products after production. Performance Appraisal System In Campco the performance appraisal work is done in a special way. At the end of the year a report known as ‘Confidential report’ is prepared by each and every
departmental head. This report contains each and every information relating to a particular worker working in a particular department. This report is then submitted to the higher authority for evaluation. STAFF Staffing is referred as human resource of an organization where they contribute to the fullest extent to achieve the organizational goal within a stipulated period. Staffing represents the development of employees in terms of selections, placement, training, promotion and performance etc. it include processes to develop in them the abilities and skills that they need to be effective and efficient. In CAMPCO strength of the staff is 237 permanent and 130 contract based employees who are headed by Deputy General Manager and under him there are 6 assistant managers for each department.
Each and every staff is well educated and trained in their particular area of work assigned to them. Staff is classified in to 4 levels. they are strategic level, Management level, Operating level and Technical level. The duties and responsibilities of staff in CAMPCO chocolate factory are shown in the table. Labour Welfare Measures CAMPCO provides good facilities to its employees such as bonus, dearness allowance, provident fund, gratuity, yearly increment, edical allowance and welfare measures etc Bonus In CAMPCO 8.33% per annum bonus is paid to the employee every year. The maximum limit was Rs. 2500. If the basic salary plus dearness allowance is more than Rs. 3500, they do not come under
bonus act. Dearness Allowance CAMPCO gives 43% dearness allowance twice in a year, 1st January every year and again 1st July every year. It comes under Karnataka Government, schedules. Provident Fund In CAMPCO chocolate factory provident fund is contributed as follows: 12% of (Basic salary + dearness allowance) is employee’s contribution and equivalent amount is contributed by management also. Duties and Responsibilities of staff.
DUTIES & RESPONSIBILITIES
To pass the orders and oversee and review the functioning of
Management level Operating level Technical level
20 155 60
all the departments. To control the activities of the Organization. To carry out day to day operating activities of the company To engage in production and other technical maintenance activities
Yearly Increment CAMPCO provides yearly increment to their employee depending on the pay scale. Minimum amount of increment is Rs. 10 and the maximum is Rs. 150. Promotions There is no hard and fast rule in promotions. Employee promotions are given once in 8 years. The promotion was made according to the seniority cum merit basis. Medical allowances
CAMPCO also gives Rs. 2000 per annum as medical allowance. These medical allowances are given in 2 installments once in march and other in September. Retirement Type of ownership of CAMPCO is semiGovernment. So the workers get retired at the age of 58 years. After the retirement the CAMPCO gives gratuity to their employees but no pension. In order to have eligibility for gratuity benefit the employees of CAMPCO has to complete 5 years of service. In each year he/she should have perfect attendance. The person who retires or resigns is eligible to get gratuity at the rate of 15 days salary multiplied by number of years of service. Insurance Coverage All the vehicles belonging to
CAMPCO in all the branches, all the buildings and go downs have been brought under suitable insurance coverage, as could be seen from the records of CAMPCO. And the fixed assets registered are maintained up to date. Welfare Measures in CAMPCO The following are some of the welfare measures providing to the workers of CAMPCO. These measures are classified as statutory measures and non-statutory measures. Statutory Measures • Canteen facilities. • Cold water facilities. • Rent free accommodations. • Medical benefits. Non-Statutory Measures
• Uniforms. • Safety shoes, rain coats are provided. • The employees state insurance facilities. Leave to the Employees In CAMPCO temporary worker gets 3 days casual leave per year and permanent employees get 15 days per years. The company provides 20 days half leave to their employee and 20days privilege to its workers. The CAMPCO chocolate factory provides 10 days of holiday including the Government holiday and also it provides every Sunday as the weekly holiday to its permanent employees. Duration of Work In the CAMPCO chocolate factory, there are four shifts including the general shifts. The normal hours of work are 8 hours. The
timings of 4 shifts are as follows. Shift Timings 1. Shift - 6 am to 2 pm. 2. Shift - 2 pm to 10 pm 3. Shift - 10 pm to 6 am General shift – 9 am to 5.30 pm Shared Values Shared values refer to set of beliefs, views, opinions value and aspiration of the employees that goes beyond the formal statement of corporate objectives. In CAMPCO all employees share the same guiding values and responsibilities for particular task, provided to them. Chief Executive gives responsibility for each department about the task. It also maintains quality consciousness.
SWOT ANALYSIS The diagnosis of the firm’s strength and weakness can be fruitful only if the environmental factors and market conditions are considered keeping in mind the internal capabilities of the company. This approach essentially involves matching the internal capabilities with the environmental opportunities and threats. STRENGTH 1. Large Product Mix. One of the strength of the CAMPCO
limited is large product mix. The CAMPCO produces the different type of chocolates that is Melto, Cream, Turbo, Treat, Megabite, Campco bar, 4 ever, Krust, Éclair 2000 etc. 2. Largest chocolate Factory in South East Asia. CAMPCO is the largest factory in south Asia. This statement can be used to attract more clients. 3. Highly Committed Employees. WEAKNESS 1. Lack of Promotional Activities. The CAMPCO chocolate factory is not promoting its products in an effective way through media advertising. Poor marketing effort to push the product in the market.
2. Suffering from huge loss. The CAMPCO chocolate factory has made huge loss for the past several years. 3. Inefficient Utilization of the Capacity. The actual capacity of the CAMPCO chocolate factory is 8800 metric tonnes. But the factory has not been able to make use of the full capacity. 4. Inefficient Product Quality. The chocolate products are to be placed in a required minimum temperature. If it is not preserved in a required temperature the quality of the product will be effected. OPPORTUNITIES 1. There is a large market for chocolate which is untapped in India.
2. Expanding the existing product mix can lead to increase in market share 3. Greater product awareness can be brought about within all age group showing chocolates as the best gift to friends and relatives. 4. Popularity can be gained through the social service in the backward areas of south India. THREATS 1. There is a severe competition from multinational companies such as Cadbury and Nestle. 2. Frequent changes in Government rules and regulations and tax policies. 3. Competition from local players such as
EFFECTIVENESS OF TRAINING INTRODUCTION Every organization needs to have well trained and experienced people to perform the activities that have to be done. If the current or potential job occupant can meet this requirement, training is not important, but when this is not the case, it is necessary to raise the skill levels and increase the versatility and adaptability of employees. Inadequate job performance or a decline in productivity or changes resulting out of job redesign or a technological break through require some type of training and development efforts. As the jobs become more complex, the importance of employee development also increases. In a rapidly
changing society, employee training and development are not only an activity that is desirable but also an activity that an organization must commit resources to if it is to maintain a viable and knowledgeable work force. “Training”, “education” and “development” are three terms frequently used. On the face of it, there might not appear any differences between them, but when a deep thought is given, there appear some differences between them. In all “training” there is some “education” and in all “education” there is some “training”. Moreover, the two processes cannot be separated from development. Precise definitions are not possible and can be misleading, but different persons have used these activities in different ways. DEFINITION
After the selection of the employee, the next step is his training. Even old employees require some training at various points in their career. The general objectives of training and development are to assist the employee to expand and use more effectively his skill, talents and knowledge and to assist him in finding his true potential and in preparing him for greater and higher responsibilities. “Organized procedure by which people learns knowledge and skill for definite purpose”- Dale S Beach – 1985. “The act of increasing the skills of an employee for doing a particular job” – Edwin B. Fillip, 1984. In the words of Planty and Efferson, training is “The continuous, systematic development among all levels of employee of that knowledge and those skills and attitudes
which contribute to their welfare and that of the company.” Training is defined by Lawrence L Steinmetz as a short term process utilizing a systematic and organized procedure by which non managerial personnel learn technical knowledge and skills for a definite purpose. From an analytical study of the above definitions we may conclude that: Training is a purposeful process. It is concerned with imparting and developing specific skills for a particular purpose. Thus, training is any process by which the aptitudes, skills and abilities of employee to perform specific jobs are increased. Features of Training It is clear from the above definitions that
training is a part of the process of staffing and has the following features. • The basic purpose of training is to guide and direct the learning of employees so that theymay perform their jobs more efficiently. • Training helps the employe to increase his/her knowledge of facts, policies, procedures and rules and regulations pertaining to his/her job. • Training is to assist the employee in finding his true potential and in preparing him for greater and higher responsibilities. • Training attempts to increase the skills of an employee for doing a specific job more efficiently. It involves the development of one or a few specific technical skills. • Training attempts to mould the attitude of an employee towards other co-workers, supervisors and organization and create in him a sense of responsibility and interest in his job.
• Train is given to operative (that is nonmanagerial personnel) for performing specific jobs. Hence, training is job-oriented. • Training is a short-term process. Training courses are designed for short term. • Training must be a continuous process. • To be effective and accomplish the desired results efficiently, training must be planned systematically. • Training must be aimed at all employees of the firm. It is necessary for the newly appointed employees to learn the job. It is equally necessary for the existing employees whenever new method, technique, or machines etc are introduced. Objectives of Training • To prepare employee for meeting current job requirement including anticipated changes. • To prepare employees to shoulder higher
levels of responsibilities. • To ensure smooth and efficient working with the organization. • To ensure smooth and efficient working with the organization. • To improve productivity with quality. • To promote sense of ownership positive attitude and commitment amongst the employees. Types of Training There are many ways to train people. But mainly training methods are of two types: 1.On the job training. 2.Off the job training. On the job training methods. This is the most common method of training. On the job training relies on current employees to train new recruits, results
depending on the trainer’s skill in training. The trainee is placed on the job and the manager or the mentor shows how to do the job. To be successful the training should be done according to structured program that uses task list, job breakdown and performance standards as a lesson plan. It is highly practical and reality based. It also helps the employee establish important relationship with his/her supervisors/mentors. a) On specific job 1) Experience: This is one of the oldest methods of on-the-job training. This method which involves learning by experience has proved to be very efficient. To make this approach effective, it should be supplemented with other methods of training. 2) Coaching: This involves coaching by a superior by personal instruction and guidance to a manager trainee. This method
increases motivation in the trainee. But this method is effective only if the superior is properly trained and oriented. Further the superior may not have enough time to coach the trainee and he may also neglect his job. 3) Understudy Program: In this method, an individual works as an “assistant to” to the senior manager so that, eventually the deputy can assume full responsibilities and duties of the job held b the senior manager. In this method, the trainee learns be experience and observation. The main advantage of this method is that training is conducted in practical and realistic situations. b) Apprenticeship Training: This method of training is meant to give the trainee sufficient knowledge and skill in those trades and crafts in which a long period of training is required for gaining complete proficiency. Generally the trainees work as apprentices under the direct
supervision of experts for a long periods, say 2-7 years. This program consists of providing actual work experience in the actual job as well as imparting theoretical knowledge through classroom lectures. c) Job Rotation: This method involves transferring a trainee from one job to another on a systematic basis. If a trainee is rotated systematically from one job to another, the general background of the trainee is broadened. This method provides training in actual situation and exposes them to other worker’s problems and view points. One main disadvantage of this method is that production may suffer. d) Special Projects: In this method, the trainee may be asked to perform a special assignment so that he would be in a position to acquire knowledge and also to learn the work procedure.
Sometimes, the management may create a task force consisting of trainees representing different functions in the organization which helps the trainees in acquiring knowledge about the special assignment. e) Committees and Junior Boards Committees and junior boards which are also called “multiple management” are important methods of training. The trainee by becoming a member of the committee gets an opportunity to interact with the experienced managers and to know the problems of the organization and the view points of different managers to solve the problems. All the decisions and suggestions made by the junior boards are placed before the meetings of the board of directors of the company before taking final decisions. f) Vestibule Training: The training in vestibule
preliminary to actual shop experience. Vestibule training is an attempt to duplicate as nearly as possible the actual working conditions of the work place. The trainees can concentrate on training only, because they are not under any pressure of the work situation. Further, regular Off the job training methods Off the job training is most commonly called classroom training. It is a traditional way of education. Off the job training takes place either inside the organization or at some external selected sites, may be institutes, universities or professional associations which have no connection with the company. Off the job training includes the lecturers, the conferences, group discussions, seminars etc. a) Special courses and lectures: Some organizations like Tatas and
Hindustan Lever, State Bank of India, LIC etc have their own development departments which provide special courses and lectures for their employees. These organizations also arrange some courses or lectures by the staff of some universities and institutes. Sometimes, the business concerns may send their employees to attend course of 1-2 week duration conducted by the institutes of management. b) Conferences: In this method, managers and potential managers attend the conference programmes in which they pool their ideas and experiences with certain problems which are a common subject of discussion. For example, the conference may discuss specific problems such as planning, delegation etc. c) Case Studies: The case study method which was
popularized by the Harvard Business School, USA, is one of the common forms of training to the emoplyees. In this method, instruction describes the actual situation or problems of a specific concern and the participants are encouraged to take part in the objective discussion of the problem. This method increases the trainee’s power of observation and also his analytical ability. d) Simulation: In simulation, the real situation of work environment in an organization is presented in the training session. In other words, in simulation, instead of taking participants into the field, the field is simulated in the training session itself. Role Playing is one of the common simulation methods of training. In role playing the participants play his role or those of others under specific conditions of simulation. Role playing enables the participants to increase his skills in dealing
with other people. In role playing, the participants play different roles for different situations and by this, they are enabled to deal with several problems from various angles. e) Sensitivity Training: This method aims to influence an individual’s behavior through group discussion. In group discussion, the trainees freely express their ideas, beliefs and attitudes. In sensitivity training, the trainees are enabled to see themselves as others see them and develop and understand other’s views and behavior. Further the participants are trained to become patient listeners and resolve conflicts, if any. In addition, the trainees by interaction in a group become sensitive to one another’s feelings and also develop increased tolerance for individual differences. f) Incident method:
In the usual case method, the entire problem is presented to the students, whereas in the incident method, only a brief incident is presented to provoke discussions in the class. The group then puts questions to the instructor to draw out of him the salient facts and additional information needed to arrive at a reasonable solution of the case. This method draws the participants into discussion with greater emotional involvement. Need and Importance of Training Training imparts skills and knowledge to employees in order to make them able to cope up with the pressure of changing environment. Training is no longer a matter of choice to an organization. The choice is only in the methods of training. The needs, importance and benefits of training are as follows:
Increase Efficiency Training enables the individual to develop skills and methods of doing a job in a better way. This is more important in the case of changing technology. Uses Untapped Potentials Training enables the individual to translate his untapped potential into actual performance. Increases Morale Training increases the morale of employees by relating their skills with their job requirements. It builds employee’s confidence in the company, develops loyalty, raises morale and increases teamwork. Broadens Knowledge
It broadens the knowledge of the employees in all phases of the company’s operations. Improves Human Relations Training increases the quality of human relations in an organization. It helps to solve many problems of social and psychological nature. Saves Supervision Cost Trained employees require les supervision. With reduced supervision, a manager can increase the number of his subordinates. This can save cost of supervision. Prepares for Greater Responsibility It prepares the employees for lateral transfer, upgrading and promotion within the organization.
Organizational Asset Trained people are necessary for the survival of the organization and to maintain effectiveness and to make short term adjustment with the existing personnel. There is no greater organizational asset than trained and motivated personnel. • Reduces labour turnover. • Training results in higher productivity. • More pay, recognition and other benefits to the employees. • Trained personnel get job satisfaction. • Therefore, the chances of leaving the job are less. Thus, training reduces labour turnover. • Training increases the quality of work. • Quantity of output by improving skills and productivity of the employees. Short Learning Time
Effective training helps the employees to acquire the skills and knowledge to do a job within a short span of time. Encourages Standardization Training encourages standardization by teaching the best methods of performing the work to all employees. This will improve the levels of performance. Cuts Costs and Wages Training creates cost consciousness. It teaches the methods of economical use of materials and equipments, minimization of cost and wastages. Creates Confidence Training creates a comfortable feeling of confidence in the minds of workers. It develops adaptability among workers. It
encourages them to accept challenges and risks. Growth of the Individual Training develops skills, knowledge and attitudes of the employee in all respects. Provides Scope for Promotion Training provides qualities essential for promotion and upgrading of the employee. Better Rewards Training increases efficiency and productivity. It facilitates higher rewards and benefits to the workers. Role of Training No organization has a choice of whether to train its employees or not, the only choice is
that of methods. The primary concern of an organization is its validity and hence its efficiency. There is continuous environmental pressure for efficiency and if the organization does not respond to the pressure, it may find itself rapidly loosing whatever share of market it has. Training imparts skills and knowledge to employees in order that they contribute to pressures of changing environment. The viability of an organization depends to considerable extent on the skill of different employees; especially that of managerial cadre, to relate the organization with its environment. There are three factors which necessitate continuous training in an organization. These factors are technological advances, organizational complexity and human relations. Training can play the following role in the organization. Increase in Efficiency
Training plays an active role in increasing efficiency of employees in an organization. Training increases skills for doing a job in a better way. Though an employee can learn many things while he is put on a job, he can do much better if he learns how to do the job. This becomes more important especially in the context of changing technology because the old method of working may not be relevant. In such a case, training is required even to maintain minimum level of output. For example, working on automatic machine requires skills different from that required to handle manually operated machines. Similar changes are taking place in managerial jobs too. Increase in Morale of Employees Training increases morale of employees. Morale is a mental condition of an individual or group, which determines the willingness to cooperate. High morale is
evidenced by employee enthusiasm, voluntary conformation with regulations and willingness to co-operate with others to achieve organizational objectives. Training increases employee morale by relating their skills with their job requirements. Possession of necessary skills to perform a job well often tends to meet such human needs as security and ego satisfaction. Trained employees can see the jobs in ways that are more meaningful because they are able to relate their skills with jobs. Better Human Relations Training attempts to increase the quality of human relations in an organization. Growing complexity of organizations had led to various human problems like alienation, inter-personal and inter-group problems. Suitable human relations training can overcome many of these problems. Many techniques have been developed through
which people can be trained and developed to tackle many problems of social and psychological nature. Reduced Supervision Trained employees require less supervision. They require more autonomy and freedom. Such autonomy and freedom can be given if the employees are trained properly to handle their jobs without the help of supervision. With reduced supervision, a manager can increase his span of management. This may result into lesser number of intermediate levels in the organization, which can save much cost to the organization. Increased Organization Viability and Flexibility Trained people are necessary to maintain organizational viability and flexibility. Viability relates to survival of the
organization during bad days, and flexibility relates to sustain its effectiveness despite the loss of its key personnel and making shortterm adjustment with the existing personnel. Such adjustment is possible if the organization has trained people who can occupy the positions vacated by key personnel. The organization, which does not prepare a second line of personnel who can ultimately take the charge of key personnel, may not be quite successful in the absence of such key personnel for whatever the reason. In fact, there is no greater organizational asset than trained and motivated personnel, because these people can turn the other asset into productive whole. Limitations of Training Effectiveness of training program depends upon the interest of the trainees, the qualifications of the trainers, the
environment in which employees operate etc. Irrespective of this, training has the following limitations. • It cannot solve problems of faulty organization. A poor organization structure will create blocks to learning and tend to prevent the translation of acquired knowledge on skills into improved performance. • It cannot be a substitute for sound initial selection and careful placement of employees. • It cannot increase learning potential. Training may stimulate further use of inborn capacities but it cannot create potentials. • It cannot unerringly ensured increased performance or greater efficiency. They are not automatic and are controlled by factors outside the scope of the training function. • It cannot overcome the fact that forgetting is easier and quicker than learning. It cannot ensure continued use of newly acquired
knowledge, skills or attitudes to overcome forgetting. • It cannot guarantee anyone learning anything. Training can only provide the means for learning to take place. If the trainee does not want to learn, the chances are that he will not learn. Training Process Each training program is a costly affair and a time consuming process. Therefore, training effectiveness is of paramount importance and therefore should proceed through a sequential process of step as shown below. Step 1: Organization Objective. Training program should support the continuous development of employee with the organization objective in order to address key competencies requirements of
the business. Step 2: Training Needs Identification It is important to determine what training is needed and to make certain that the training is based on reliable and identified training requirements. It is an inquiry about the tasks and skills need to accomplish a function or job and to identify who are the learners. Step 3: Determination of the training strategy. To determine the strategy to be used in a accomplishing the training, gathering data on which to base training objectives, the deriving force behind the design approach to training objectives etc. Step 4: Preparing the Learners and Work Environment.
It is necessary that work environment is enabling, receptive and supportive so that the learners is able to apply the knowledge and skills learnt from training to actual work place. Step 5: Determination of training methods and materials. To determine training methods, tools and timing appropriate for skills to be learned and participating learners. While preparing training manuals, the principles of learning cycle must be kept in mind that is planning, doing, reviewing and reflecting. Step 6: Conducting training program To conduct the actual training and monitor the progress. Step 7: Evaluation and Feed back
To gather feedback for updating or revising the training program is crucial to the effectiveness of the training program. This is typically the most neglected phase of the training program as the trainee and the trainers breathe a sign of relief as the training ends. However if this step is correctly attended then better training programs can be designed.
Age Below-20 20-30 30-40 40-50 Above-50 Total
No of Respondents 05 20 15 05 05 50
Percentage 10 40 30 10 10 100
40 35 30 25 20 15 10 5 0 Below 20yrs 10
% of Respondent
Table No-2 Sex Male Female Total le No-3 No of Respondents 42 08 50 Percentage 84 16 100 Percentage 16 12
Qualification No of Respondents SSLC 08 PUC 06
Graduation Technicians Total
20 16 50
40 32 100
The majority (40%) of the respondents are graduates. Department to which the Respondents belong. Table No-4 Department No of Respondents Administration 15 Production 30 Material 05 division Total 50 Work Experience Table No-5 Percentage 30 60 10 100
No of Percentage Respondents 0-05 years 15 30 06-15 years 30 60 16-20 years 03 06 21 & above 02 04 Total 50 100 ority of the respondents (60%) had 06-15 years of service. This indicates that the employee Opinion about Training Table No-6 Opinion
a) It heightens employee morale b) It helps in reducing dissatisfaction
No of Respondents
c) Increases job knowledge d) Helps in prevention of accidents e) Helps in personal growth
20 06 04
40 12 08
Total 50 100 dents and 8% of the respondents said that the training helps in personal growth. How the Objectives of the Training Program were conveyed to the Trainee. Table No-7 Methodology No of Respondents
a) Slide Show b) Displayed on the notice board c) Instruction sheets d) Intranet 09 22 15 04
18 44 30 08
Total Table No-8 Trainer
Top 0 management HR manager 05 10 Superior 35 70 Department 10 20 head Total 50 100 ned by the department head and 10% of the respondents were trained by the HR manager. However the table shows that nobody was trained by the Top management. How the Respondents were selected for the Training program: Table No-9
No of Respondents 00
On a random basis Recommended by the HOD Selected by HRD/Personnel department Don’t know
No of Respondents
04 07 30 09
08 14 60 18
Total 50 100 the 60% of the respondents were the people who had no previous job experience before joining Campco. Scope of the Training program Table No-10 Skills Technical skills No of Respondents 35 Percentage 70
Conceptual skills Interpersonal skills HR skills Total le No-11 Frequency
Once till now Once in 6 months Once in a year Not conducted At all
2 13 00 50 No of Respondents
40 00 10 00
04 26 0 100 Percentage
80 00 20 00
Total le No-12 Opinion Regarding Duration 7 days
50 No of Respondents 15
100 Percentage 30
15days 1month 3 months and Above Depending on need Total Language
09 16 00 10 50
18 32 00 20 100
No of Percentage Respondents Kannada 37 74 English 06 12 Hindi 07 14 Total 50 100 r training in Hindi and 12% had their training in English. Expectation from the training program Table No-14 Expectations No of Respondents Percentage
Putting the learner to ease To get closer to the job position Giving the Exact knowledge
03 11 36
06 22 72
Total 50 respondents Table No-15 Qualities
Experienced trainers were called Conducive atmosphere Good training materials were provided Proper schedules were maintained
No of Respondents
02 18 21 09
04 36 42 18
Table No-16 Methods
On the Job Off the Job
No of Respondents
Safety measures included in the training program Table No-17 Safety measures
First-aid Fire Extinguisher Vehicles Handling
No of Respondents
29 15 06
58 30 12
Total le No-18
No of Respondents
Total 50 100 majority 76% of the respondents said that personality development program is necessary in the organization. While 24% of the respondents said that a personality development program is not required in the organization. Stress Relief Programs Table No-19 Stress Relief Programs
Yoga Trips Entertainment programs
No of Respondents
04 04 42
08 08 84
le No-20 Changes felt due to training
Improved Relationships Minimized resistance to change Increased the efficiency and effectiveness Improved product quality
No of Respondents
18 03 07 22
36 06 14 44
Total 50 100 imized the resistance to change in the organization. Instruments used in the training program attended by the respondents Table No-21
100 80 60 40 20 0
No of Respondents
02 00 13
4 No 35
04 % of Respondents 00 26 70
Visual aids Games Interactive sessions Yes None
Whether benefits of training justify the training cost Table No-22 Yes/No
No of Respondents
Total 50 100 s not justify the training cost. Objectives that was predominantly fulfilled in the training session
Table No-23 Objectives
Increased productivity Effective working of the employees Reduction in wastage Developing the skills of the employees
No of Respondents
28 00 12 10
56 00 24 20
Total le No-24 Yes/No
50 No of Respondents
Follow ups after the training Table No-25 Follow ups
Performance Appraisal Work sampling Superior Evaluation Personal assessment
No of Respondents
15 08 11 16
30 16 22 32
Excellent Very good Good Satisfactory
50 No of Respondents
08 09 20 13
16 18 40 26
SUGGESTIONS Based on the findings of the study, the investigator has put forth the following suggestions to the organization. The head of department need to play a key role in explaining the importance and necessity of training to his subordinates. The training faculties need to make adequate use of the training aids available in the organization. Training programs need to be more interactive. The trainer should motivate the trainee to participate in the proceedings. Selection of the training programs and selection of the participants need to be thoroughly evaluated on some predetermined basis. The involvement of visual aids, games and tale plays are to be stressed on during the time of training as it gives more insights to
the workers especially the less educated ones and helps them to acquire interpersonal skills and understand the concepts better. The skills of the employees must be developed by imparting English speaking courses and computer courses. Periodical training is very effective and so should be encouraged in the organization. Since most of the employees are satisfied with their job, the company can retain or enhance job satisfaction by giving rewards, ensuring recognition and providing opportunities for their career development. Another measure for improving the effectiveness of training programs is the introduction of pre-training evaluation, which creates awareness in the organization and among the employees about the needs of training. It can be suggested that in addition to the appraisal made by the superiors, an employee can also be appraised by his peers and subordinates.
Thus the company can consider the above suggestions to make its training programs more effective. As a result good training will lead to improved performance leading to increased productivity and thus profit. CONCLUSION A meticulously planned and well administered training and development program would be instrumental in bringing about positive changes in the employees and thereby improve the efficiency of the organization. Campco Ltd, Mangalore is maintaining a good relationship with the public. It also maintains a good relationship with other organizations. Campco Ltd is one of the organizations that have realized the importance of human resource and the need to train them. It follows a training policy designed by a highly effective HR department.
Campco Ltd conducts a number of training programs every year, with innovations. Training programs have helped in increasing the company’s productivity, reduce accidents and take additional job responsibilities and good industrial relations. However, there is still scope for improvement which the company should seek to achieve. This can be done by periodically evaluating and improving the training programs. The study has given the investigator, a practical exposure to the company. It has given the knowledge of the various functioning departments. It has also taught the investigator to carry out the research. Such a study would be useful in case any future researches need to be undertaken on this topic. The findings arrived at as a part of the study would help the company in planning or modifying their training programs in future. The investigator hopes that the suggestions offered will be considered
positively and implemented in the organization. This would help the organization to pave the way for growth at a quicker pace. The company should strive for excellence in the years to come. BIBLIOGRAPHY 1.CAMPCO at a glance-Magazine of the company. 2.Annual general meeting report of 2008 3.Other company manuals and journals 4. www.google.com 5. www.wikipedia.com 6. www.hrguru.com
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