A REPORT ON

ORGANISATIONAL STRUCTURE TRAINING

TAKEN AT

INSTRUMENTATION LIMITED
CONTENTS
1. Introduction

2. Organisational structure of I.L.

3. Function of Human Resource Department

4. Function of Marketing Department

5. Function of Purchase Department

6. Function of Finance & Accounts Department

7. Function of Safety Department

8. Conclusion
 INTRODUCTION

Instrumentation Limited (better known as IL) is a Government Of India Enterprise set up in

1964 with the prime objective of attaining self reliance in the field of Control and
Automation for process industry. Today IL is manufacturing and supplying state of the art
control equipment on turnkey basis to various sector of Industry viz. Power, Steel, Fertilizer,
Chemical, Petrochemical, Refineries, Pharmaceutical, Cement, Paper, Textile, Space, and Oil
& Gas.

IL has its registered and corporate office at Kota in state of Rajasthan. Manufacturing
facilities are based at Kota and Palakkad in Kerala State. Flow elements, control valve and
actuators are manufactured at Palakkad plant and other items are manufactured at Kota plant.
IL’s manufacturing facilities are accredited with ISO 9001:2008 certification. The marketing
network is widely spread all over India having Branch offices in major cities of Delhi,
Kolkata, Chennai, Mumbai, Jaipur and Secunderabad and Regional offices at Vadodara,
Kolkata and Bhilai for organizing installation and commissioning and related services. Site
offices at many project sites are functioning under these regional offices.

With over Forty five years of experience and a competent and dedicated workforce, IL has
mastered all complexities of control system requirement and can lead you through your
project, from system design, detailed engineering, manufacturing, testing, system integration,
installation, final commissioning to after sales service and customer training. IL has further
diversified in the fields of Power electronics; Telecommunications, Railway Signaling
systems, Defence electronics, IT enabled Products & services, Power Distribution and
Transmission, Off-shore Instrumentation, Security & Surveillance system to have
comprehensive range of product and services.

The present product handling of the company comprises of sophisticated Digital Distributed
Control systems, High Performance Smart Electronic Pressure and Temperature Transmitters,
desk/panel mounted controllers, indicators, recorders and other hardware, liquid and gas
analyzers, with sample handling and conditioning system, annunciation system, panels,
instrument cabinet and racks, Flow elements, Control valves, actuators, power cylinders in
addition to Telecommunication systems, IT based applications, Defence electronics, Railway
signaling systems, Uninterrupted Power Supply Systems(UPS), Solar Dusk Dawn
System(SDDS) etc.

IL, after establishing itself as an undisputed leader has crossed the Indian borders to supply
equipment on turnkey basis in International markets. IL has supplied instrumentation on
turnkey basis to two thermal power stations in Malaysia, supplied instrumentation to Esfahan
steel plant in Iran, Hima cement plant in Uganda to name few. A major breakthrough was
achieved in export market when IL received large orders from Lisichansk Oil Refinery in the
erstwhile USSR for supply of DDC system and other equipment on turnkey basis.
 ORGANIZATION STRUCTURE OF I.L.

BOARD OF DIRECTORS

CHAIRMAN-CUM-MANAGING DIRECTOR

COMPANY
SECRETARY

BUSINESS ACQUISITION PROCUREMENT MANUFACTURING

GROUP FACILITIES

PROJECTS CUSTOMER CP KOTA PALAKKAD

DDC UNIT SERVICES & UNIT UNIT
IT
SUBSIDIARY
UNIT
MARKETING
UNIT REGIONAL &
SITE OFFICES
EXPORT
DIVISON REIL
BRANCH
OFFICES

CORPORATE
F&A

CORPORATE
P&A

CORPORATE
R&D
DDCHAIRMA
N-CUM-
MANAGING
DIRECTOR
D
HUMAN RESOURCE DEPARTMENT
To develop the resources of human being by any means of an organisation is the main
function of HRD. First of all HRD analyse the requirement of manpower and then make the
arrangement to deploy them. It can be generated from the internal or outside sources. For
such a special task possibilities explored to select the personnal from the existing manpower
available in the organisation and train them so that they can be utilised for overall
development in the industry. If suitable persons are not available in the existing staff then
HRD trap the outside souces to recruit the personnal. For outside recruitment HRD contact
the local employment exchange and publish the vacancies in newspapers at local as well as
national level.Another function of P&A is to frame the policies & rules to streamline the
activities of the company. Moreover P&A has to issue guidelines from time to time on the
specific matter. Before finalizing the policies P&A takes care of the welfare of employees.

P&A maintain the personal record of its employees. Preparation of salary of

employees,implementation of various acts in the organisation and run the welfare activities
for its employees and their family members is also a function of P&A.

One more important function of P&A is to appreciate the employees for their working by
way of promotion on a higher post or issue appreciation letter so that they work with their full
zeal and also take harsh step against the employees to maintain the discipline.It is also a duty
of P&A to control the movement of personnel,so that their skill and time could be utilised for
growth of organisation.

To run the welfare activities for its employees and their family members is also a function of
P&A which includes canteen facilitity,creche for female employees.

One most important function of P&A is to maintain the harmonious industrial relations in the
organisation.It is the sole responsibility of P&A.For this purpose P&A discuss the issues with
the trade union leaders for redressal of grievances of employees and also keep a close liaison
with local authorities.

DEPARTMENTS UNDER P&A

1. Recruitment section-This section initially recruits the manpower as per requirement

of that organisation. This department also maintains the roaster for reserved category.

2. Establishment section-Following works is to be done by this section-

 Maintenance of Personal files of employees
 Proper postings and transfer of employees
 Verification of character and antecedents
 Updation of personal data
 Fixation of pay on selection/promotion/pay revision
 Preparation of seniority/eligibility list
  Initiation of Annual Performance Appraisal reports
 To verify the different claims i.e., LTC, Scholarship, Service Allowance,
Long service reward etc.
 To Maintain service books of employees and provide Annual increments to
employees.

3. Policy & Rules section- This section is engaged in formulating the rules and policies
of an organisation. This department mainly do the following works:
 Updates the various P&A matters.
 Examines the matters as per company rules/guidelines
 Issues of circulars after approval from competent authorities.
This department maintains the company rules,standing orders,conduct rules,Pay &
Allowances,Advances,Benefits/Facilities/Incentives/Rewards & social security Measures etc.

4. Administration Department-In every Organisation one Administration Department

established which mainly do the following jobs:-
 Redressal of the complaints of employees
 Allotment/vacation of Quarters in township
 Correspondence with various local authorities related to administrative
matters

5. Welfare Department- Every organisation has to provide suitable facilities and sitting
arrangements for the employees at work. The main areas of Responsibility of Welfare
Department is as under:-
 Industrial canteen-As per factory act where 250 or more workers are
employed one industrial canteen should be there which provide the meal
to the employees.
 Dispensary-For the proper Medical facilities a Dispensary be there.
 Ambulance room and First Aid treatments in shops.
 Creches for lady employees
 Welfare Officer-Every organisation is required to appoint a welfare
officer to see the welfare activities for the employees
 Community Centre for employees welfare
 In case of death of employees welfare department provide help in
several problems like funeral arrangements,financial assistance of Rs
5000 through voluntary deposit relief fund scheme contributed by all
employees @ Rs 20 balance amount may be deposited in the name
dependent family members or wifw as decided by the committee headed
the H.O.D. of deceased employee (chairman),welfare officer(sect.) and
two worker’s union representatives.Rs 500 for transportation corpse
from his residence to funeral place. Providing help to the family of
deceased employees for payment due with PF deptt.,family pension,life
insurance,company dues etc., also providing concession in tution fee in
their works in IL school.
 Medical Advance- During hospitalization 6 & 12 thousand as local &
referred outside cases respectively.
 Family Planning measures- Rs 300 is provided to employees with two
children
  Welfare department also organganise the following activities for
movivation and entertainment of the employees
a) Sports week
b) Cultural Programmes
c) Get together
d) National Holiday/Festivals on community basis
e) Summer coaching classes
f) Display of films for family members of employees
g) Celebration of national/social functions
h) Community center facility/club,library,marriage hall etc

6. Time & wage control section-This section is to control the movement of employees.
The main functions of this department is as under:-
 Movement control at the entrance gate of buildings/Plant
 Marking attendance, maintain master register for attendance/Leave
record of employees.
 Maintain the leave ledger.
 Maintain the attendence as per absentee reports received from various
departments.
 To prepare salary/Wage bills of employees.
 Preparation of inputs of various heads and maintain proper records in
computer/hard copies/files.

7. Social security department- The main functions of this department are as under:-
 To maintain Proper record of provident fund.
 Processing of PF loan to the members.
 Punching of monthly PF data.
 Gratuity work.
 Group insurance work.
 Processing of PF ledger & finalisation of Annual Accounts.

8. Legal & Industrial relations department-

Industrial relations Department- Every employee is required to work as per
rules. In case of any indicipline or misconduct committed by the employees, Industrial
relations Department is assigned the job responsibility to take action against such
employees as per Discipline & Appeal & Conduct rules. The main functions
pertaining to IR department are-
 Preparation and issue of charge sheets, Enquiry orders, show cause notice
and final punishment order for the misconduct committed by the
employee.
 Conduct Departmental/ Preliminary Enquiries.
 Compliance of various labour laws in the company.
 Work pertaining to Factory licence/Contract labour licences etc.
 Work pertaining to Factory Inspection.
 Liaison with ALC/JLC

Legal Section- Legal section deals with all types of court cases. The main job
responsibilities of this section are as under:-
  To appoint Company advocate to plead our case in the Court of Law.
 Preparation of Complaint, Written statement,Writ Petition, Reply of
Writ Petition/Appeal, Rejoinder etc. and filing the same before the
various courts. Liaisoning with Company’s Advocate to follow up
routine court cases ana allied work relared to legal section.

ALLOWANCES AND OTHER BENEFITS

ALLOWANCES
Various allowances and other facilities are available in this organisation are as under:-
 House rent allowance
 Dearness allowance
 Washing allowance
 City Compensatory allowance
 Transport allowance
 Conveyance Reimbursement allowances
 Shift Allowances for employees who come in shifts
 Field duty allowances
 Special site allowances
 Children education allowance
 Tution fee for school going children of employees
 Subsidized transport allowance
 Cash handling allowance
 Service allowance

ADVANCES
The employees working in this organisation are being given following advances for their
financial help:-
 Yearly advance
 Medical advance
 Son/Daughter Marriage advances
 Furnishing advance
 Vehicle advances

OTHER BENEFITS/FACILITIES
 Medical Facility
 LTC Facility- Once in two years block upto 3000 Kms
 Leave Facility- Each employees are given 12 casual leaves, 2 Restricted
Holidays in a year
 Earned Leave- One and a half days per month in first year and thereafter two
and a half days per month. Encashment of Earned Leave is also given to the
employees.
 Half Pay Leave- 20 half pay leaves is allowed to all regular employees.
 Maternity Leave
 Uniform
 Canteen subsidy
 INCENTIVES/REWARDS- For the employees the organisation also gives the following
rewards/incentives :-
 Medical Rewards
 Good Attendance Rewards
 Annual Gift
 Long Service Reward
 Punctuality Rewards

SOCIAL SECURITY MEASURES-Following social security measures are also allowed

to the employees:-
 Group Insurance Scheme
 Gratuity- All employees who join company are eligible for gratuity after
completion of 5 years of qualifying service
 Provident Fund- All employees who join company are eligible to become
member of the PF. Employees contribution is 12% of Basic+DA and
Company also contributes 12% of basic & DA.
 Pension scheme is also implemented under social measures

MARKETING DEPARTMENT

Marketing is everywhere. Formally or informally, people and organizations engage in

a vast number of activities that could be called marketing. Good marketing has become an
increasingly vital ingredient for business success. And marketing profoundly affects our day-
to-day lives. Financial success often depends on marketing ability. Marketing deals with
identifying and meeting human and social needs.

Marketing is an organizational function and a set of processes for creating,

communicating and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stake holders. The aim of
marketing is to make selling superflows. The aim of marketing is to know and understand
the customer so well that the product or services fits him and sells itself. Ideally,
marketing should result in a customer who is ready to buy. All that should be needed then
is to make the product or service available. In business markets companies selling
business goods and services often face well-trained and will informed professional buyers
who are skilled in evaluating competitive offerings. Business buyers buy goods in order
to make or resell a product to others at a profit. Business marketers must demonstrate how
their products will help these buyers achieve higher revenue or lower costs. Advertising
can play a role, but a stronger role may be played by the sales force, price and the
company’s reputation for reliability and quality.
The Company is divided into 4 units.

Instrumentation Ltd.

Kota Unit PDDC Marketing Palghat Unit

Factory Unit Unit Factory

Kota and Palghat units are production units, PDDC and Marketing units are
Business Acquisition Units.

Marketing Units :

Since incorporation of the company all selling activities was done by commercial
unit. In 1988-89 commercial units was bifurcated into two units.

(i) PDDC Unit

(ii) Marketing Unit

(i) PDDC Unit : This unit handle all turnkey project of control & instrumentation in
segments like steel, plants and Thermal Power Station. In this method production is
done accordingly to requirement of customer.

(ii) Marketing Unit : The company has product range that include retail industrial
products like Transmitters, UPS, SDDS, C-DOT (MAX/XL), Mobile Tower etc.
solenoid valves, control panels & desks, Defence products.
This unit of the company looks after the sales of retail products.

PURCHASE DEPARTMENT

All material is purchased by purchase department in I.L. When company receives

order from customer Kota Marketing co-ordination makes production programme and sent to
Production Planning and Control (PPC). PPC makes Material Purchase Requirement and
sends to Purchase Department for purchasing the required material.

In this way procurement action is taken by the purchase department of the

company.

Purchase department is divided into two parts –

Purchase Department

Indigenous Purchase Import Purchase

1. Indigenous Purchase : When purchase made from within the country for fulfilling
the order it is known as indigenous purchase.

2. Import Purchase : When purchase made from outside the country for fulfilling the
order which the company receives it is known as import purchase.

Procurement

1. Material purchase request comes from indenter.

2. A public notification in media like newspapers is given inviting tenders from
suppliers as per mentioned specification. The Tenders can be of three types:
 Open tender : Any supplier fulfilling specified conditions may apply.
 Limited tender : When only limited suppliers are there. This is the most
common type with IL.
 Single source : When there is only one supplier who is in accordance with our
need. Sometimes we receive quotations from only one supplier then in such a
case it comes a single source tender.

3. Tenders received are opened

4. A comparative statement is prepared. The various quotations are compared with each
other in terms of price, quality, period of delivery, basic rate, loading rate, transport
cost, compatibility, etc. and the best are marked as L1, L2, and L3 and so on.

5. The most reasonable party is negotiated with for deciding payment mode, transport
medium and other related areas.
6. Order is then placed.

PAYMENT METHODS

This involves a multi stage process. First of all a material purchase request come from
the purchase dept. to foreign purchase deptt. The deptt. invites various quotations from
foreign suppliers and the best one is selected. A purchase order is placed accordingly.

The mode of payment is decided with the supplier. It can be done in the following
ways:

# Advance Payment
# Letter of Credit

# Sight Draft

FINANCE AND ACCOUNTS DEPARTMENT

The accounting department is responsible for the following:

ACCOUNTS ESTABLISHMENT SECTION-This function is performed by Accounts
Establishment section under F&A.The total wages and salaries earned by every employee
every pay period, which are called gross wages or gross earnings, are calculated. Based on
detailed private information in personnel files and earnings-to-date information, the correct
amounts of income tax, social security tax, and other deductions from gross wages have to be
determined.
Stubs, which report various information to employees each pay period, have to be attached to
payroll checks. The total amounts of withheld income tax and social security taxes, plus the
employment taxes imposed on the employer, have to be paid to federal and state government
agencies on time. Retirement, vacation, sick pay, and other benefits earned by the employees
have to be updated every pay period.

STORES ACCOUNTS SECTION:-

The stores accounts section is divided into two parts:-
One is Responsible for domestic transactions called Stores A/C (India) ane the other is
responsible for import transactions called Stores A/C (Import).

 The most common yet major responsibilities that are carried by Stores are:
Receipt of incoming goods
 Inspection of all receipts
 Storage and preservation
  Identification of all materials stored
 Materials handling
 Packaging
 Issue and despatch
 Maintenance of stock records
 Stores accounting
 Inventory control
 Stock-taking

COST ACCOUNTS SECTION-

1)Collect operational data and make analyses reports to forecast expenses and
budgets.
2) Collect production data, maintenance and inventory control data.
3)Manage and coordinate annual physical counts and cycle counts in a plant.
4)Evaluate production costs, gains & losses and month-end closing data.
5)Forecast, prepare and implement a plant's budget.
6)Collect and analyze past years data to forecast budget for the ensuing year.
7)Study, review and reconcile variances in reports and data.
8)Identify solutions and create resources to control gaps.
9)Design, create and implement strategies, best practices and process
improvements.
10)Identify operational opportunities and implement best processes and
practices.
11)Design and implement advanced solutions based on collected data.

BOOK SECTION- It basically deals in voucher controlling.

Cash collections: All cash received from sales and from all other sources are carefully
identified and recorded, not only in the cash account but also in the appropriate account for
the source of the cash received. The accounting department makes sure that the cash is
deposited in the appropriate checking accounts
Accountants balance the checkbook of the business and control who has access to
incoming cash receipts.
Cash payments (disbursements): In addition to payroll checks, a business writes many
other checks during the course of a year — to pay for a wide variety of purchases, to pay
property taxes, to pay on loans, and to distribute some of its profit to the owners of the
business.
The accounting department prepares all these checks for the signatures of the business
officers who are authorized to sign checks. The accounting department keeps all the
supporting business documents and files to know when the checks should be paid, makes
sure that the amount to be paid is correct, and forwards the checks for signature.
 Property accounting: A typical business owns many substantial long-term assets called
property, plant, and equipment — including office furniture and equipment, retail
display cabinets, computers, machinery and tools, vehicles (autos and trucks), buildings,
and land.
 Except for small-cost items, such as screwdrivers and pencil sharpeners, a business
maintains detailed records of its property, both for controlling the use of the assets and
for determining personal property and real estate taxes. The accounting department keeps
these records.

The accounting policies used in Intrumentation limited are significant accounting policies and
notes to accounts.

SAFETY DEPARTMENT
The safety department keeps control of the safety . Some of the safety rules are-

HOUSE KEEPING
 All passage,work area and surroundings shall be kept clean and clear of all
obstructions
 Grease ,oil or other slippery substanses if spilled on floor shall be clean immediately
 All tools,equipment,scrap and other left over materials completion of a job shall be
removed to proper places
 There shall be a place place for every article and each article in its place
 All materials shall be stacked tidily and upto a safe height to prevent them from
falling or causing some other pile to fall

WEARING APPAREL
 No person shall wear loose or ragged clothing around a moving machinery
 All persons engaged in oiling or cleaning of machinery shall put on tight fitting
clothes

PROTECTIVE APPLIANCE
 Protective safety appliance such as goggles,face shield,
aprons,gloves,respirators are available in departments for protection
 All employees working on elevated places where railing are not provided shall
use belts properly
 Protection to eyes by wearing face shield or goggle

GUARDING OF MACHINERY
 All exposed moving parts of machine shall be properly guarded
 Oiling,repairing and stating machinery should not be done without first
stopping the machinery properly
 No one shall attempt to operate a machine he is not assigned

DEFECTIVE TOOLS
 All defective tools shall not be used and brought to the notice of
supervisors.
 All hand tools should be maintained in good working condition and
workers shall ensure firm grip to avoid any slip or fall
 SHORTCUTS
 Walkway and regular passages shall be used for moving inside the plant
 Use of shortcuts may cut short the life of user

HANDLING OF GAS CYLINDERS

 The value and fittings on a gas cylinder shall not be lubricated and kept
away from grease and oil
 The gas cylinders shall not be allowed to drop or come into violent contact
with one another
 Cylinders should be protected from direct and continous ways of sun

PREVENTION OF FIRE
 Every department shall be equipped for fire fighting
 Water of foam type fire extinguither shall not be used for extinguishing
electrical fires
 Waste oily rays and other inflammable materials shall be kept in proper
receptacle

GENERAL
 Before starting overhead work,everybody should be warned
 Nobody shall ride on hand trolleys, running board,side ponds or any part
of vehicle except on proper seat
 Supervisor shall make necessary arrangements to ensure safety

CONCLUSION
On concluding the report I would like to say that It added experience in my Knowledge in
various aspects. I got familiar with environment of an industry which is definitely going to
help me in future.

Practical knowledge promoted my theoretical knowledge of human resource and finance &
accounts .Also I come to contact with various Technical People .

At last it was a great experience in each aspect which can help an MBA student . I would
Again like to thank “INSTRUMENTION LIMITED, KOTA “
and “TRAINING & OD DEPTT “ for this opportunity.