A STUDY ON JOB SATISFACTION OF EMPLOYEES OF ARJUNA

NATURALS PRIVATE LIMITED

ORGANISATIONAL INTERNSHIP REPORT

Submitted to

RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)

(Affiliated to Mahatma Gandhi University, Kottayam)

In partial fulfillment of the requirement for the award

Of

MASTER OF HUMAN RESOURCE MANAGEMENT (MHRM)

(2018 – 20)

By

HUSNA ABDUL KARIEM

Register No: 1822014

RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)

RAJAGIRI P.O.,
KALAMASSERY

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 ACKNOWLEDGEMENT

First and foremost, I note my deepest gratitude to the God Almighty for his blessings in this
endeavor.

I would like to take this opportunity to express my sincere gratitude to all those who have
helped me throughout this project work. It gives me immense pleasure to acknowledge all those
who have rendered encouragement and support for the successful completion of this work.

I am highly obligated to Dr. Binoy Joseph, Respected Principal, Rajagiri College of Social
Sciences (Autonomous) for giving me an opportunity for conducting the project I express my
sincere gratitude to my faculty members and my internship guide Dr. Jayasri Indiran for her
valuable guidance and extensive support and encouragement to execute the project as per the
requirements.

I extend my heartfelt gratitude to my company guide , Mr. M.S Rajesh (Asst. General
Manager- HR & Admin), all the staffs of ARJUNA NATURALS EXTRACT Ltd, for their
constant encouragement and support during the entire project work.

Name: Husna Abdul Kariem

Register No: 1822014

Place: Alwaye

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 DECLARATION

I, HUSNA ABDUL KARIEM, hereby declare that the project titled, “A study

on Job Satisfaction of employees at Arjuna Naturals Private Ltd”, submitted

to Rajagiri College of Social Sciences, is bona fide work done by me. I also

declare that this work has not been submitted elsewhere for the award of any

degree, diploma or any other title or recognition.

Place: Kakkanad
Date: 1-7-19 Husna Abdul Kariem

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 TABLE OF CONTENT
CHAPTER 1: ORGANISATIONAL STUDY

1 INDUSTRY ANALYSIS 6

2 COMPANY PROFILE 16

3 HISTORY AND INCORPORATION 17

4 MISSION AND VISION 20

5 PRODUCT PROFILE 21

6 PRODUCTION PROCESS 25
7 FUNCTIONAL DEPARTMENTS 28

8 HUMAN RESOURCE DEPARTMENT 41

9 FUTURE PLANS 51

10 SWOT ANALYSIS 52

CHAPTER 2: PROBLEM FORMULATION

11 LITERATURE REVIEW 56

12 TITLE OF STUDY 64
13 STATEMENT OF PROBLEM 64

14 RELEVANCE OF STUDY 64

CHAPTER 3: RESEARCH PROCESS

15 OBJECTIVES OF THE STUDY 66

16 SCOPE OF THE STUDT 66

17 RESEARCH DESIGN 66

18 METHODS OF DATA COLLECTION 67

29 TOOLS FOR DATA COLLECTION 67

20 SAMPLING AND SAMPLE SIZE 68

21 69
CHAPTER 3: PRESENTATION, ANALYSIS AND INTERPRETATION OF
DATA

22 FINDINGS 85

23 CONCLUSION 86

24 BIBLIOGRAPHY 87
25 ANNEXURE 88

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CHAPTER 1: ORGANISATION STUDY

5
INDUSTRY ANALYSIS

6
1.1 HERBAL EXTRACTION INDUSTRY- GLOBAL SCENARIO

Herbal medicine also called botanical medicine or phyto refers to the use of any plant seeds,
roots, leaves, bark or flower for medicine purposes. Long practiced outside of conventional
medicine is becoming more main stream as up-to-date analysis and research show their value
in treatment and prevention of disease. Plants had been used for medicine purpose from ancient
period itself.

The industrial processing of medicine and aromatic plant starts with the extraction of the
active components using one other technology. In case of essential oil which represents a
heterogeneous mixture of widely processes for the production of essential oils from the
aromatic plants and extracts from medicinal plant differ widely and the best results are obtained
by modifying and adapting the general extraction process to particular medicinal and aromatic
plants.

There are many process patented throughout the world for commercial extraction of plants
ingredients. Herbal extract is a liquid solution of herbs and alcohol. The dried or fresh herbs
are combined with alcohol, and then the solid matter is removed leaving only the oils of herbs
mixed with the alcohol. This process is called extraction, hence the name herbal extract. From
earliest time, medicines were the product of part of plants stepped in or boiled with water.
Experience shows that other liquid such as alcohol and vinegar made extraction of ingredients
more efficient and had a preservative action.

Nowadays there are four methods of extracting aromatic compounds from the plants
materials

 Distillation
 Solvent extraction
 Expression
 Effleurage

All four methods indented the final product to be used in perfumery or scenting. However
none of the extraction method produces an extra replica of scent of fresh plants. The reason for
this inability to exactly replicate the scent of a fresh plant is denature the automatic compounds
by either exposure to heat, oxygen or chemical solvent.

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1.1.1 MAJOR HERBAL EXTRACTORS

 “INDIANA” (ITALY) is the leading extractor and pioneer in the field of pharmaceutical.
Their product range included turmeric and ginger.

 “FLACHSMAN-FLAVOURS AND EXTRACTS”(part of Frutarom Industries Ltd ,

Switzerland.

 “MARTIN BAUER”(GERMANY) is the largest and leading importer and packer of

herbal teas. Their raw materials include aloveverea, quassi, turmeric, ginger, hibiscus,
allspice, lemongrass, sarsaparilla, henna and tamarind.

1.2 STRUCTURE OF HERBAL EXTRACTION INDUSTRY

HERBAL EXTRACTION INDUSTRY


NUTRACEUTICAL COSMECEUTICALS HERBAL DRUG

Fig 1.1 Structure of herbal extraction industry

1.2.1 NEUTRACEUTICALS

Nutraceuticals are food product supplement with herbal ingredients, vitamins, minerals,
nutrients or ingredient isolated / purified from conventional foods. These are the largest product
in succession of the health food evolution constituting the dietary supplement, fortified foods,
food and beverage with added bioactive ingredients. The “baby boomer generation” which is
largest baying consumer group in coming year is strongest market driver for the Nutraceuticals.
The U.S.A leads the market followed by the countries of western, European and Japan, will
remain largest global producers and consumers. Asia, Pacific, Latin America and Middle East
are set to provide the faster growth for this country.

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 The word "nutraceutical" is a portmanteau of the words "nutrition" and "pharmaceutical",
coined in 1989 by Stephen L. DeFelice, founder and chairman of the Foundation of Innovation
Medicine. Indians, Egyptians, Chinese, and Sumerians are just a few civilizations that have
used food as medicine.

The modern nutraceutical market began to develop in Japan during the 1980s. In contrast to
the natural herbs and spices used as folk medicine for centuries throughout Asia, the
nutraceutical industry has grown alongside the expansion and exploration of modern
technology.

This range of products cannot be truly classified as “food” or “pharmaceutical”. No official

definition exists for “nutraceuticals”. It is often used to describe a broad list of products sold
under the premise of food components with expressed intent of treatment or prevention of
disease and for enhancing the health and wellbeing of an individual. Nutraceuticals are diverse
product category with various synonyms used internationally.

Since the early 1990s, the world has witnessed the explosive growth of a multi-million
dollar nutraceutical industry. Nutraceutical represents unique intersection of pharmaceutical
and food industries. There is no clear demarcation as such separating food from drugs, but the
law mandates such distinction be made.

Nutraceuticals are products derived from food sources that are purported to provide extra
health benefits, in addition to the basic nutritional value found in foods. Depending on the
jurisdiction, products may claim to prevent chronic diseases, improve health, delay the aging
process, increase life expectancy, or support the structure or function of the body.

Global nutraceuticals market is expected to reach 302,306 million dollars by 2022. By

geography, the market is segmented into North America, Europe, Asia -Pacific and LAMEA.
LAMEA region comprises of Latin America, Middle East and Africa. High demand for
electricity in the developing economies such as Brazil and Middle-Eastern countries (Iran and
Saudi Arabia) is the key growth factor for nutraceuticals market. The nutraceuticals market in
LAMEA is expected to grow a CAGR of 7.39% between 2016 and 2022.

1.2.1.1 Classification of Nutraceuticals

Nutraceuticals

Dietary Supplements Functional Foods

Fig 1.2 Classification of Nutraceuticals

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1.2.1.1. A Dietary supplements

In the United States, the Dietary Supplement Health and Education Act (DSHEA) of 1994
defined the term: “A dietary supplement is a product taken by mouth that contains a "dietary
ingredient" intended to supplement the diet. The "dietary ingredients" in these products may
include: vitamins, minerals, herbs or other botanicals, amino acids, and substances such as
enzymes, organ tissues, glandular, and metabolites. Dietary supplements can also be extracts
or concentrates, and may be found in many forms such as tablets, capsules, soft gels, gel caps,
liquids, or powders.”

1.2.1.1. B Functional foods

Functional foods are fortified or enriched during processing and then marketed as providing
some benefit to consumers. Sometimes, additional complementary nutrients are added, such as
vitamin D to milk.

Functional foods can be defined as “ordinary food that has components or ingredients added
to give it a specific medical or physiological benefit, other than a purely nutritional effect.”

All functional foods must meet three established requirements:

 Present in their naturally occurring form, rather than a capsule, tablet, or powder;
 Consumed in the diet as often as daily; and
 Should regulate a biological process in hopes of preventing or controlling disease.

1.2.1.2 Factors driving the nutraceuticals market

 Growing affluent middle class populations with their increasing disposable incomes in
developing countries.
 Women and senior citizens preferring a good digestive health
 Physiological benefits of functional foods, which reduce the risk of chronic diseases related
to cardiovascular problems and diabetes.
 Lower R&D and regulatory burdens for pharmaceuticals in their neutraceutical segment,
when compared to their prescription and OTC drugs.

1.2.2 COSMECEUTICALS

Cosmeceuticals are cosmetic products with bioactive ingredients purported to have medical
benefits. There are no legal requirements to prove that these products live up to their claims.
The name is a combination of "cosmetics" and "pharmaceuticals". "Nutricosmetics" are related
dietary supplement or food or beverage products with additives that are marketed as having
medical benefits that affect appearance.[1]Cosmeceuticals are the cosmetics that are made from
herbal product like botanical extract, essential oil, aloe extract etc. Its global market is around
US $2 billion. The fastest growing sector in cosmeceuticals in the anti-ageing products.

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Manufactures are frequently replacing vitamins with herbal ingredients such as serenoa repens,
panax, spp, ginkgobiloba. Aloe Vera is the most demanded in cosmetic industry.

1.2.3 HERBAL DRUG

Traditional medicine is “the knowledge, skills and practices based on the theories, beliefs
and experiences indigenous to different cultures, used in the maintenance of health and in the
prevention, diagnosis, improvement or treatment of physical and mental illness”. There are
many different systems of traditional medicine, and the philosophy and practices of each are
influenced by the prevailing conditions, environment, and geographic area within which it first
evolved , however, a common philosophy is a holistic approach to life, equilibrium of the mind,
body, and the environment, and an emphasis on health rather than on disease. Generally, the
focus is on the overall condition of the individual, rather than on the particular ailment or
disease from which the patient is suffering, and the use of herbs is a core part of all systems of
traditional medicine.

Over the past 100 years, the development and mass production of chemically synthesized
drugs have revolutionized health care in most parts of the word. However, large sections of the
population in developing countries still rely on traditional practitioners and herbal medicines
for their primary care. In Africa up to 90% and in India 70% of the population depend on
traditional medicine to help meet their health care needs. In China, traditional medicine
accounts for around 40% of all health care delivered and more than 90% of general hospitals
in China have units for traditional medicine. However, use of traditional medicine is not limited
to developing countries, and during the past two decades public interest in natural therapies has
increased greatly in industrialized countries, with expanding use of ethnobotanicals.

The most common reasons for using herbal medicine are that it is more affordable, more
closely corresponds to the patient’s ideology, allays concerns about the adverse effects of
chemical (synthetic) medicines, satisfies a desire for more personalized health care, and allows
greater public access to health information. The major use of herbal medicines is for health
promotion and therapy for chronic, as opposed to life-threatening, conditions.

Currently, herbs are applied to the treatment of chronic and acute conditions and various
ailments and problems such as cardiovascular disease, prostate problems, depression,
inflammation, and to boost the immune system, to name but a few. In China, in 2003, traditional
herbal medicines played a prominent role in the strategy to contain and treat severe acute
respiratory syndrome (SARS), and in Africa, a traditional herbal medicine, the Africa flower,
has been used for decades to treat wasting symptoms associated with HIV. Herbal medicines
are also very common in Europe, with Germany and France leading in over-the-counter sales
among European countries, and in most developed countries, one can find essential oils, herbal
extracts, or herbal teas being sold in pharmacies with conventional drugs.

Herbs and plants can be processed and can be taken in different ways and forms, and they
include the whole herb, teas, syrup, essential oils, ointments, salves, rubs, capsules, and tablets

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that contain a ground or powdered form of a raw herb or its dried extract. Plants and herbs
extract vary in the solvent used for extraction, temperature, and extraction time, and include
alcoholic extracts (tinctures), vinegars (acetic acid extracts), hot water extract (tisanes), long-
term boiled extract, usually roots or bark (decoctions), and cold infusion of plants (macerates).
There is no standardization, and components of an herbal extract or a product are likely to vary
significantly between batches and producers.

Plants are rich in a variety of compounds. Many are secondary metabolites and include
aromatic substances, most of which are phenols or their oxygen-substituted derivatives such as
tannins. Many of these compounds have antioxidant properties. Ethnobotanicals are important
for pharmacological research and drug development, not only when plant constituents are used
directly as therapeutic agents, but also as starting materials for the synthesis of drugs or as
models for pharmacologically active compounds. About 200 years ago, the first
pharmacologically active pure compound, morphine, was produced from opium extracted from
seeds pods of the poppy Papaver somniferum. This discovery showed that drugs from plants
can be purified and administered in precise dosages regardless of the source or age of the
material. This approach was enhanced by the discovery of penicillin. With this continued trend,
products from plants and natural sources (such as fungi and marine microorganisms) or analogs
inspired by them have contributed greatly to the commercial drug preparations today. It is also
estimated that about 25% of the drugs prescribed worldwide are derived from plants, and 121
such active compounds are in use.

1.2.3.1 Distribution of herbal to different industries

The table below shows the distribution of herbal products as raw materials. Among the
herbal are supplied more for production of vitamins and micronutrients. But in the current
scenario a huge demand for herbals are from nutraceuticals and cosmeceutical industries.

HERBAL DIETARY SUPPLEMENTS 12.53%

HERBAL COSMETICS 5.37%

F&B WITH HERBAL CONTENTS 6.12%

( FOOD & BEVERAGE)

VITAMINS AND MICRONUTRIENTS 75.98%

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1.2.3.2 Constraints faced by herbal product industry

As herbal product industry is one of the fast growing sectors in the world, but it also suffers
many problems to sustain in the industry. Some constrains faced by herbal products companies
are as follows.

 Lack of awareness of economic benefit of E.O industry.

 Technology and skilled manpower.
 Inadequate infrastructure.
 Market intelligence.
 Credit facility for business development.
 Unsupportive government policies.

1.2.3.3 Distribution of global herbal market

The bulk of the raw materials for the Nutraceutical, Cosmoceutical and for the herbal drug
industries come from the developing countries like China and India. Medicinal plant and
herbal product are used in the functional food and dietary supplements. This market is large
and more in European and American countries. China and India are the leading exporter of
herbal raw material in the world.

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1.3 INDIAN SCENARIO

In India herbal and spices sector has traditionally occupied an important position in the
socio-culture, spiritual and medicinal arena of rural and tribal lives. Recognizing its
importance, of Indian system of medicine and homeopathy, and mare recently the medicinal
plants bard to develop, promote medicinal and regulate the sector for maximizing the benefit
to the people as well as to ensure sustainable growth. Medicinal Plants have been identified as
one of the thrust areas by the ministry and different programs have been initiative for
conservation of medicinal plants in the forest areas. Kerala has been at the forefront of
Ayurvedic revolution in the country, endowed with rich biodiversity because of its natural
topography comprising of all three biome shills, plateaus and casts.

The country blessed with 16 agro climatic zone, 45000 plant, spices and 1500 medicinal plants,
has a good potential to export herbal product non-acceptance by the medicinal profession in
developing countries owing to lack of technical documentation is however, hindering its
exports.

The Indian extract industry has grown over the years and is today estimated at about Rs.600
crores. The biggest concern is to establish the efficiency of Indian medicinal plants on modern
scientific terms and produce extract in hygienically maintained good manufacturing facilities.
The global market is estimated at $6 billion and India’s share is only $1 billion. Global demand
for herbal product has been growing steadily at 15%p.a. It also affirms that over 80 %of the
world population relies on traditional system of medicine, largely plant based to meet their
primary health care needs. There is an imperative need to consolidate, mobilize and organize
the sector. With the global market growing at a much faster rate than the domestic market, the
Ayurvedic and siddha manufactures need to orient themselves to export needs.

1.3.1 ADVANTAGES OF INDIAN HERBAL INDUSTRY

 Professional services are easily available.

 Availability of herbs for variety if indications like sugar/weight.
 Rich Indian Biodiversity.
 Positive government policies towards herbal sector.
 Strong traditional support mainly from Ayurveda.
 Already established international industry and business community.
 Good network of world class educational institution.
 Globalization.
 Consolidation.

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1.3.2 FUTURE OF HERBAL PRODUCTS INDUSTRY IN INDIA

 Global opportunities for Indian herbals are on rise.

 Generation of scientific information can help in increasing global opportunities.
 Indian government to play active part to get Indian medicinal plants approve in
various countries.

1.3.2 INTERNATIONAL MARKET OF INDIAN HERBAL PRODUCTS

 As drug /raw herbs.

 As standardizes herbs.
 As finished formulation.
 As photochemical/pure isolates.

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COMPANY PROFILE

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2.1 HISTORY AND INCORPORATION OF ARJUNA NATURAL
PRIVATE LIMITED

Arjuna Natural Extracts Ltd is one of the pioneer organization to produce herbal and spice
extracts, established in 1989 with head office at Aluva and manufacturing facilities at
Coimbatore and Edayar. Mr. P.J. Kunjachan and Dr. Benny Antony started their first venture
in the name “Arjuna Aromatics”, a brand that produced and marketed essential oil of mustard
across the world. Arjuna aromatics in Aluva. The researcher cooks were carried out under the
supervision of Dr Benny Antony and sales & marketing by Mr. P.J Kunjachan. Arjuna is a
global manufacturer of standardized plant extract, essential oil and omega 3 fatty acid. Their
product ranges consists of more than 50 products and are being used in over 43 countries. The
production facilities are spread in 6 locations in south India including a world class research
and development facility approved by Ministry of Science and Technology. Arjuna is a front
runner in the industry adhering to the strict ethical codes and continuously striving to promote
intellectually protected scientific approach in the field of extracts supported with clinical,
toxicological and stability studies.

Arjuna’s production processes and products meet market specific regulations worldwide with
total manufacturing area of 4, 00,000 sq. ft. Its four manufacturing facilities for herbal extracts
meet all international standards. Arjuna is an ISO 22000, GMP certified, SAP driven company.
Arjuna Natural Extracts Ltd is authentically the first in India to engage in commercial
manufacturer of omega 3 fish lipid oil. Currently Arjuna is the sole producer of concentrated
Omega-3 fatty acids from fish oil in India.

The epic journey of the company and its phenomenal rise to fame bear witness to the dedicated
team work of the employees. Arjuna Naturals Pvt Ltd started manufacturing value added herbal
extracts. The company made essential oil of mustard for a small but significant niche market
which gained worldwide acceptance. They later focused on nutraceutical sector which was a
segment still in its infancy, and introduced a series of innovative herbal extracts along with
technological innovation which is imperative for its competitive success in a dynamic global
business environment. Arjuna recognized the potential of an invention and started pioneering
new products, enhancing current products. Or creating a unique operational system. To be in
success path, the company patented many innovative products. The company made an indelible
impression on the nutraceutical segment, manufactured Omega 3 fatty acids with indigenous
technology and won national award for successful commercialization of an indigenous
technology. The state of the art laboratory was approved by the Ministry of Science &
Technology in 2001 for in-house research. The manufacturing facility at Karumathampatti,
Coimbatore was set up in 2002 to support the growing demands of its global clientele. The
company today has 300 employees, including 40 scientists who work full time in research and
development.

Arjuna discovered bio-available cur cumin and successfully commercialized it and gained
functional and cost-quality differentiation advantage over rivals. BCM-95’s launch into the

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market was its crowning glory. BCM-95, the patented turmeric extract formulation from
Arjuna Natural Extracts Ltd has received a US patent (US Patent No. 8859020) for a
composition for the treatment of Alzheimer disease comprising curcuminoid mixture and added
essential oil of turmeric. The patent also covers method of making the composition. Meanwhile
the display of products of ‘Arjuna’ has been made in the ‘world spices congress’ sponsored by
the spices board. The action plan for maximum trade has been chalked out by the company and
this paved the way to open door to enter into the international market. The company received
export orders from the leading company of USA.

Even though an amount of Rs 135 lakhs has been spend as initial capital investment, only one
third of the project could be complete. The company started manufacturing of herbal and spices
extracts and oleoresins. But the company had to face stiff competition from the institution in
the field and could not withstand the situation.

As the company faced a lot of obstacles to go ahead further, the company diversified its
production to herbal extracts and reduced the manufacture of spices oil. The company with its
diversification of the manufacture of herbal extracts in the year 1995 become a number one
unit treating the other majority of the opponents. The company has not get listed its shares in
the market.

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COMPANY NAME ARJUNA NATURAL EXTRACTS LTD

BANK ROAD , ALWAYE

ADDRESS KERALA, INDIA

PIN:683101

CMD MR.P.J.KUNJACHAN

YEAR OF ESTABLISHMENT 1992

HEAD OFFICE ALWAYE

PRODUCTION PLANTS EDAYAR AND COIMBATORE

PRODUCTION MANUFACTURED HERBAL AND SPICE EXTRACTS

MARINE EXTRACTS

FY 2014: RS 115.14 CRORES

TURNOVER FY 2015: RS 158.42 CRORES

FY 2016: RS 177.11 CRORES

FY 2017: RS 199.79 CRORES

FY 2018: RS 225.3893 CRORES

CONFORMITY TO STANDARD INDIAN STANDARD

COMPLIANCE TO ISO ISO 2005 : 22000

FOREIGN COLLABORATION NIL

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2.1.1 COMPANY BOARD

1. MR. P J KUNJACHAN-Chairman and Managing Director

2. DR. BENNY ANTONY-Joint Managing Director

3. MR.JOMY JOSE- Director – Marketing

4. DR. MERINA BENNY ANTONY-General Manager - Quality Assurance and R&D

2.2 MISSION AND VISION OF ARJUNA NATURALS PVT LTD

2.2.1 MISSION

To dedicate our talent and knowledge in creativity and manufacturing innovative herbal
products beneficial for the people and just to make healthier tomorrow.

2.2.2 VISION

To be a pioneer in the nutraceuticals industry adhering to the food quality standards.

2.3 CORPORATE OFFICE AND OTHER UNITS OF ARJUNA NATURALS PVT LTD

Arjuna Naturals Pvt ltd was established in the year 1992 with head office at Aluva and
manufacturing facilities at Coimbatore and Edayar. Arjuna have 11000 sq. mtrs ,state of art
manufacturing facility makes use of the most technologically advanced equipment to assure
consistent product quality and efficient streamlined service. It guarantees standardized extract
quality, purity and potency. The facility can handle volumes ranging from a few 100 kilograms
to several 100 metric tons.

Head Office: ARJUNA NATURAL PVT LTD

Bank Road, Alwaye -683 101,

Kerala, India

Landmark: Near Federal Bank Head Quarters

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Arjuna Naturals Ltd Plant address in Edayar

Industrial Development Area

Binanipuram, Cochin - 683502

Landmark: Near Binanipuram Bus Stop

Arjuna Naturals Ltd Plant address in Coimbatore

No 15/4 B, Sirambarayampalayam Road

Karumathampatti, Coimbatore - 641659

Landmark: Near Gayathri Mills

MARKET SHARE OF ANEL

ARJUNA NATURAL EXTRACTS LTD 42%

OTHERS

 SEMI LABS
 SEAR PHYTOCHEM LTD
58%
 SYNTHITE CHEMICAL LTD
 PLANT LIPID LTD

3.1 PRODUCT PROFILE

HERBAL EXTRACTS

Herbal extract is a liquid solution of herbs and alcohol. The dried or fresh herbs are combined
with alcohol and then the solid matter is removed leaving only the oils of the herbs with the
alcohol. This process is called extraction; hence the name would be called “peppermint

21
extract”. Herbal extracts are sold as dietary supplements and alternative medicine and
commodity used for favoring in banking and other cooking much like vanilla extract.

1. HERBAL EXTRACT OF ANEL

 Amla Extract
 Ashwagadha Extract
 Boswellia
 Centrella Serrata Extract
 Curcumic Powder
 Ginger Root Powdered Extract
 Organic Green Tea Extract
 Momordica Charantia Extract
 Tribuls Terrestrist Extract
 Tulsi Extract

2. ESSENTIAL OIL

Essential oil is a concentrated, hydrophobic liquid containing volatile aroma compounds

from plants. They are also known as volatile or ethereal oils. Oil is essential in the sense
that it carries a distinctive scent, or essence of plant. Essential oil does not as group need to
have any specific chemical properties in common, beyond conveying characteristics
fragrances.

A. ESSENTIAL OIL OF MUSTARD AITC

Essential oil of mustard is the volatile oil obtained by steam distribution of mustard seed
after hydrolysis. The active ingredients in mustard oil are allyl isothiocynate(AITC) and
butenyl isothiocynate (BITC).

B. ESSENTIAL OIL OF ASAFOETIDA

Asafoetida ( Feaula asafetida) is a small plant grows wild in India. The aromatic gum
obtained by incision from the root of the plant is in popular use in India for many
centuries as a flavoring agent, as an ingredient in condiments and in many spice
mixtures.

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 3. OMEGA 3 FATTY ACIDS

Omega 3 fatty acid are considered essential fatty acid. They are essential to human
health but can’t be manufactured by the body. For this reason, Omega 3 fatty acids can
be found in fish such as salon, tuna, halibut, other marine life as alga and krill, certain
plants and nuts oil. Also know n as poly unsaturated Fatty Acids.

3.2 MANUFACTURING PROCESS

1. Raw Material inspection

The raw materials are checked to ensure that it can give specified final product. This
happens at the initial stage and then material check-up and lab analysis is done. With
this, purchasing department takes the final decision on material quality.

2. Pre – cleaning
This is done for the initial oil extraction in spices like pepper

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 3. Pre – treatment / sizing
This process involves flaking, grinding or pulverization before putting into the
extractors.

4. Extraction
This is where the actual process takes place. That is the material charged is mixed
with the solvent, a mixture of acetone and hexane in proportion depending on the
spice, and is done using heat by steam. The time for each extraction, blow off will be
done in extractors and the spice waste is removed from the vessel.

5. Evaporation
This is the stage where the solvents are taken out from the extracts of spices. This
process is done through the evaporation system where the solvent is evaporated by
using a method of raising film evaporation and is fed into the decanter.

6. De – solventization
For the final concentration, it is fed into the stripper where the oleoresin is almost
without the solvent content in it. De – solventization will be done using steam and to
quarantine tank for final check before final blending.

7. Blending
This is the process where the actual specification of the customer is met.
Materials will be blend in blending tank to get the required specification. Chemists
will take samples at different stages of production and analyse the sample.

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3.3 PRODUCTION PROCESS OF HERBAL EXTRACTS

1. HERBAL AND SPICE EXTRACTS

Herbal is liquid solution of herbs and alcohol. The dried or fresh herbs are combined
with alcohol .and the solid matters are removed leaving only the oils of the herbs
mixed with water. The extraction process is a multi-stage phenomenon which
involves pulverizing, extraction and evaporation. The same process is used for the
extraction of other kinds of herbs.

After the production process it is being packed .Its standard packing comes in 25 kgs.
Multi-layer bags and HMHDPE drums .Custom packing is available on request.
Arjuna also provide UN approved packing LB specific cases.

Cleaning Raw Powder From

Pulverization
Materials Raw Material

Solution Of
Solvention Extraction Herbs And
Spices

Concentrated
Evaporation Sterilization
Extracts

Drying Blending Filtration

Packing Dispach

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 2. OMEGA 3 FATTY ACIDS

Omega 3 process involves both physical and chemical steps, for the enrichment of
long chain polyunsaturated omega-3 acid from fish oils. Omega 3 fatty acid have
essential functions in the body they need to be derived from the diet

Fish Oil Winterisation

Triglyceride
Filteration
(Anti oxidant)

Ultra Filtration Final Packing

PACKING OF OMEGA-3 PRODUCTS

 Zepufa Fish Oil: It is available in 25 kgs packs and 190 kgs. Drums and it is packed
under Nitrogen.

 Zepufa power is packed under nitrogen atmosphere for longer self-life. And it is
available in 5 kgs and 10 kgs pack

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 3. ESSENTIAL OILS

An essential oil is a concentrated, hydrophic liquid containing volatile aroma

compounds from plants. They are also known as volatile ethereal oils, or simply as
the oil of the plant. Essential oil does not as a group needs to have any specific
chemical properties in common, beyond conveying characteristics fragrance. They
need to be confused with fatty acids.

Essential oil is generally extracted by distillation other process include expression or

solvent extraction .they are used in perfumes, cosmetics and both products for
flavoring food and drinks and for scenting intense and cleaning products.

Steam
Raw Materials Oil Vapours
Distillation

Condenser Water,Oil Oil Seperation

Distilled
Drying Blending
Fraction

Filtration Packing Dispatch

27
4.1 FUNCTIONAL DEPARTMENTS OF ARJUNA NATURAL
PRIVATE LTD

 FINANCE DEPARTMENT
 PURCHASE DEPARTMENT
 PRODUCTION DEPARTMENT
 HUMAN RESOURCE DEPARTMENT
 MARKETING DEPARTMENT
 QUALITY CONTROL DEPARTMENT
 RESEARCH AND DEVELOPMENT DEPARTMENT
 SHIPPING DEPARTMENT

28
FINANCE DEPARTMENT

Figure: Structure of Finance Department

Finance is considered as the life blood of business organization. It is the master key,
which provides access to all resources employed in manufacturing and merchandising
activity. It is a fact that financial management is that managerial activity which is
concerned with the planning and the controlling of the firm’s financial resources
requirements. All the financial operations of the company are performed in the central
office.

29
The financial function in the department is divided into internal audit and finance
administration. Internal audit deals with the collection of data regarding the cost
factors in the organization, including manufacturing, analyzing the data and making
suitable suggestions to decrease the cost, which increases the efficiency of the
organization.

OBJECTIVES
The main objectives of financial department are:

 To manage and account for the financial resources

 To forecast its requirements in the future plan accordingly and to check for
deviation.
 Report the financial performance of the company to the management,
stakeholders and to company with the government’s rules and regulations.

ACCOUNTING PRACTICES
The financial statements are prepared in accordance with Indian Generally Accepted
Accounting Principles (GAAP) under the historical cost convention on the accrual
basis. GAAP comprises mandatory accounting standard issued by the Institute of
Chartered Accountants of India (ICAI), the provisions of Companies act 1956.
The following are the accounting practices followed with respect to the items;

1. Fixed assets - fixed assets are stated at cost less depreciation

2. Depreciation – depreciation is provided on straight line basis.
3. Inventories – raw materials, packing materials and consumables are valued at
cost.
4. Scrap – scrap is valued at market price
5. Work – in – progress – WIP is valued at work cost.
6. Stores and spares- stores and spares are valued at cost
7. Research and development – expenditure of revenue nature are charged to
revenue in the year which they are incurred and expenditure of capital nature is
treated as fixed asset. R&D stocks are valued at cost and shown as inventories.
Statutory audit is done annually and internal audits are frequently. The average debt
collection period is 30 days from the local customers and 60 days from the exporters.

CAPITAL STRUCTURE
Capital structure of ANL is mainly constituted with
 Owned capital, 16,00,000 equity shares of Rs. 10 each
 Short term funds from banks

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DUTIES AND RESPONSIBILITIES
 Cash and bank transaction
 Customer payment follow up
 Fund planning
 Finalization of accounts
 Material accounting
 Comply with government regulations
 Tax returns and assessments
 Meet audit requirements

FUNCTIONS
 Budget preparation
Budget preparation means preparation of consolidated financial budget after
considering the entire departments. Mainly two types of budgets are prepared namely
revenue budget and capital budget. Revenue budget is based after considering
production target and norms of consumption of materials. Capital budget is for
meeting the capital expenditure needs of the company that is acquisition of new assets
like machinery, furniture and modification and improvements to the plant.

 Fund flow management

One of the main functions of finance department is to manage the funds of the
organization, i.e. inflow and outflow of funds. Main sources are in inflow and are
from sales and outflows are from purchase of raw materials.

 Maintaining statutory requirements

Finance department have the responsibility for maintaining the statutory requirements
like sales tax, VAT, service tax, excise and income tax etc.

 Performance analysis
Finance department analyses the overall performance of the organization analyzed.
Some of them are:
a) Profitability analysis
b) Variance analysis

 Working capital management

The working capital is essential for any organization to meet its day to day
requirements. Working capital may be specified as the firm’s current assets over
current liabilities. The main sources of working capital are maintained by using:
a) Over draft
b) Bills discounting

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c) Internal fund generation

 Employee remuneration
Finance department calculates salary payable to the employees based on all the
earnings and deductions. Payment and accounting of loans, advances,
reimbursements to the employees and computation of income tax on salary income
after all earnings and deductions.

BANKERS SUPPORTING ANL

1. SBT
2. HDFC
3. AXIS BANK

PURCHASE DEPARTMENT

MD

JMD

MANAGER
PURCHASE

PURCHASE
ASST.MANAGER

Figure: Structure of Purchase Department

The purchase is done from the approved suppliers in order to ensure quality. The
purchased material is inspected using. All the raw materials are purchased on personal
availability. The packing materials and consumable are purchased based on re-order
level. The purchase is only done from selected and approved suppliers. The approved
suppliers list is available with the purchase department.

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The purchase process is as follows:

i. The head of the purchase department collects offers from suppliers on regular
basis.

ii. Purchase officer short lists certain offers and carry out the negotiation for
favorable terms based on the market condition.

iii. The purchase order is reviewed and approved by the head of purchase department.

iv. Before release to the vendor to ensure that the terms are clearly specific, supplier
rating is done as per the vendor acceptability criteria.

v. Quality records of acceptable suppliers are maintained by the purchase

department.

vi. The purchase product is verified to know the conformity as per the inspection
plan. The extent and control applied to the supplier is based on the result of the
purchase on the final product.

FUNCTIONS
Some of the major functions of purchase departments are:

 Purchase activities
 Ensuring the availability of materials
 Procurement of right material at right quantity
 Maintain record of all purchase transactions
 Issue of materials to production department
 Making contacts with right source of supply
 Vendor evaluation and rating
 Rate the vendor based on their performance
 Procurement and follow up

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RAW MATERIAL PROCUREMENT PROCESS

Production
Purchase requisition Raw material storing
department

Collection of offers Raw material

Production plan
from vendors transportation

Entering into Raw material

Selection of vendor
contract requirement

PURCHASE INFORMATION
Release of purchase order are made only after confirming correctness and
completeness of purchasing data regarding the item to be purchased , the supplier
details , the replacement terms and specification details . The purchase contains the
price, payment terms, delivery schedule, quality, quantity and mode of dispatch as
purchasing data.

The adequacy of the specified purchase requirement is ensured before communicating

to the supplier .Any amendment to the purchase order once released is communicated
to the vendor through an amendment letter. Emergency purchase May be done
through verbal order over telephone or through fax. A formal purchase order is
released afterwards.

VERFICATION OF PURCHASE PRODUCT

Before purchase the samples are tested and purchases are made only from evaluated
and approved supplier. After purchase of the raw materials are inspected and
approved as per the raw materials evaluation plan.

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PRODUCTION DEPARTMENT

Arjuna’s 140000sq ft. manufacturing facility make use of the most technologically
advanced equipment to assure consistent product quality and efficient streamlined
services.it follows strict GMPs to guarantee standardized extract quality, purity and
potency. The facility can handle volumes ranging from a few 100 kilograms to several
100 metric tons. ANEL has two manufacturing facilities for its operation. One plant
at Kochi, for herbal extracts and the other plant at Coimbatore for fish oil

The production process is planned and carried out under controlled conditions. These
controlled conditions are as follows:

 The production plan is prepared for each order based on the work order issued by
marketing department.

 The workers are given specific instruction regarding production and maintenance
of the plant.

 The suitable equipment and tools are purchased and maintenance is done
effectively for the smooth running of the plant.

 The characteristics should be maintained during each stage of the product

realization are described as per the procedure and control of non-conforming
products.

 The monitoring and measurement of product conformity are carried out and
records are maintained.
 The implementation of release, delivery and post-delivery activities and records
are maintained.

ABOUT THE PLANT AND ITS CAPABILITIES

A. Water extraction facility for herbs
B. Essential oil facilities
C. Lab facility
D. Isolation Units
E. Received material
F. Traceability

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PRODUCT REALIZATION

Planning of product realization:

The product realization process in ANEL are purchase of raw materials , incoming
material inspection , storage of materials , manufacturing of extracts machinery
maintenance , inspection during process , final inspection , marketing product export
and human resource development .
The product realization process is planned considering the following points:

 The quality objectives and product requirements like total extract of the product
color and granulation, packing materials to be use.

 The main process steps are extraction, evaporation, filtering, drying and
packing. These processes are documented in the form of work instruction.

 The resources specific those processes based on the quality objectives number
of employees, machinery, fuels, raw materials and resources to ensure food
safety.

 The receiving inspection, in – process inspection, final inspection methods are

monitoring parameters.

 The records needed to ensure that the materials purchased meet the specification
and the product is satisfying the customer requirements.

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QUALITY ASSURANCE AND QUALITY CONTROL DEPARTMENT

Fig: Structure of QA and QC Department

Arjuna’s efficient sourcing mechanism from approved vendors makes sure that raw
materials confirmed to certified standard analysis. Random samples are taken from
each lot and physical properties and sent to its two testing laboratories to ensure
quality assurance and sampling is conducted before production cycles are undertaken.

High- end specialized instruments like thin layer chromatograph, spectrometers are
used to measure specific substances that are responsible for the herbs activity and
effectiveness. These are analyzed to ensure the active constituents of each herb and
are maintained at described levels of consistency and potency.

37
 Gas chromatograph with capillary column is employed to ascertain the pesticide
residue and purity of volatile oils. Written standards operating procedures for each
aspect of production are there. Arjuna aims at meeting customer expectation for
service and quality. All the function of this department is according to the ISO
standard system. Everyone in the company is particular about quality assurance and
quality control. Department’s activities include day to day quality control, which is
very vital for the success of the company. This department works in association with
the purchase department.

FUNCTIONS
The main functions of this department are as follows:
 Handling customer complaints
 Guarantees for product parameters with certification of analysis.
 Maintaining quality control related records
 Heavy metals certificates on request.
 Micro biological or toxicological data on request.
 Micro biological testing
 Sensory profiting and application test as per request.
 Pesticide residue and toxin cleaning for spices.

QUALITY CHECKS

Raw materials
Cleanliness: At this stage, the raw materials are checked to see whether it contains
any dirt, visual method of checking is mainly adopted.
Moisture: 8-12% moisture is specified.
Active components: checking the production of oil, pungent fractions, colour etc.

SOLVENT (checking before stocking)

 Purity of the solvent checked
 For essential oil, checks are done to ascertain

38
 Physical properties include specific gravity, refractive index and optical rotation.
 Composition: gas liquid chromatography has mainly trepan components.
 Organic lipid properties or tastes and smell checked by smelling.

RESEARCH AND DEVELOPMENT DEPARTMENT

Fig: The Organization chart of R&D department

As industry moves ahead on the virtue of in depth and on-going research and
development, at Arjuna, their R&D wing never sits idle. Here R&D is inspired by
reason controlled by caution, sound in theory, and practical in application, reflects
confidence, raises morale, inspires all involved and thus sets international standards

39
when it comes to customer specific herbal spices and essential oil extracts. This helps
us maintain consistent quality in all our products.

The most modern state of art laboratory approved by the ministry of science and
technology, government of india, with the latest facilities like HPTLC, HPLC, UV,
RI, densitometer, spectrometer, gas chromatogragh etc form part of the R&D for
efficient and effective quality control, product improvisation and innovations. Full-
fledged pilot plant, reengineered with ATFD’s homogeniser, spray direr etc. operated
by competent staff under direct control and direct supervision of the R&D wing is yet
another powerful tool of Arjuna.

The R&D going on the products waiting launch and the formulations and ingredients
in the pipeline are unique. Arjuna is an institution of incomparable ethical values ever
striving to promote scientific approach in the field of extracts and to improve the
quality of business and life. Arjuna‘s R&D recently developed two new products.
They are:
A. 100% water soluble pomegranate extract:

Pomegranate extract is very ideal for cosmetic purposes water soluble health
drinks and tablets due to its low level of free ellagic acid.
B. sustained release green tea extract:

Green tea is considered as an effective anti-oxidant for human body. Normal

green tea disappears from human body very fast and hence Arjuna‘s R&D specially
developed new product called sustained release green tea which remain in human
body for 8 hours.
Developing stages of a new product
 Efficacy
 Bio-availability
 Clinical trial
 Toxicology
These are stages through which each new product of Arjuna is passed before they are
commercially sold. All possible effectiveness, accessibility of each product is
analysed. Experimental studies are also conducted to find out the effectiveness of the
product.

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 HUMAN RESOURCE DEPARTMENT

Arjuna is giving great importance to the human resources which are considered as
their asset. The achievements they acquire throughout their operations are impossible
without the whole-hearted support of their employees. Arjuna is following an open
door policy where one approaches the management at any time with their problems.

Arjuna has a good administrative wing and great R&D unit with botanists,
microbiologist, phytochemists and pharmacists whose contribution is a key factor to
the company’s growth. To empower its people, Arjuna regularly sends them to over
sears to attend orientation seminar and international trade fairs, on specific purpose
of fine tuning their marketing management and technical skills.

OBJECTIVES
The main objective of HR department is to impart effective training to its
employees. Training has to be given in every six months and it is the responsibility
of general manager and respective department heads to look after the training needs
of their employees.

DUTIES AND RESPONSIBILITIES

 Maintains records of employment
 Administration of payroll
 Compliance of statutory requirements regarding PF, ESI, gratuity
 Recruitment and training

41
 Follow up and implementation of confirmations, promotions
 Attending employee’s grievances
 Employee health insurance and medical check up

FUNCTIONS

A. MANPOWER PLANNING

Manpower budgeting is based on the projected production of the company. According

to this manpower requirement of each department be determined.

B. RECRUITMENT

Recruitment is done with the help of data bank and advertisement. Data bank
will include personal relations, recommendations and reference. If vacancies come
they consider the details of data bank. If it will not match with the requirement, they
will go for advertisement. The requirement policy is done as per prescribed
recruitment specifications.

The following are the sources of recruitment:

1. Using data bank of the organization
2. Advertisements in print media
3. Employment exchange
4. Conformed employees within department or company
5. Private and government agencies

C. SELECTION

“It is the process of selecting the right person with the right skill to fit in the right
position in the organization
The steps in the selection procedure include:

1. Call letter
2. Written test
3. Interview
After sending the call letter, theywill call for a written test. If the candidate passes the
written test, they will call for personal interview. The interview board includes GM
and concerned department head. After that they will short list the suitable candidate
and these candidates will be called for a personal interview MD and board of
directors. They will conduct interview for managerial post.

D. TRAINING AND DEVELOPMENT

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 Training is one of the main objectives of the HR department. Training functions
includes identifying the training needs of the employees and to impart required
training programmers’ for the development of each employee of the organization.

Training process

1. Identification of training needs, trainees, programmers.

2. Department wise identification of people to be trained.
3. Preparation of training chart on the basis of priority.
4. Fixation of the training scheduler.
5. Final selection of training programme.
6. Imparting training.

In ANL, there are two methods of training employees; they are on –the job training
and off- the job training.

 On the job training

This is specific to the job and concentrates on imparting knowledge and skills to the
concerned employees. Induction training include introduction of an employee to the
organization by giving him all possible information about the organizational culture,
objectives, policies, practices and products

 Off the job training

This method is employed to impart knowledge and skills to the employee in general
areas which enable them to perform the job better. The main objective of this program
is personality development such as leadership quality, communication change,
attitude change etc.

E. PERFORMANCE APPRAISAL

“Performance appraisal is the systematic evaluation of the individual with respect

to his or her performance on the job and potential for development”
The respective employees evaluate the performance of the employees in once in
every year. The performance is evaluated by immediate supervision through Point
Rating Method as per the guidelines laid down by HR Department. If low
performance, the employees are trained in the respective area. The action to be taken
other than training is evaluated during the meeting. The achievement of quality
improvement is considered as one of the important tool for the performance
evaluation.

The following process is very helpful in increasing the performance of employees:

 Define authority and responsibility
 Performance evaluation
 Setting quality objectives

43
 Internal audit
 Awareness training
 Achievement of quality objectives.

F. PROMOTION
It is given on the basis of three parameters:
1. Experience
2. Performance
3. Qualification
Major priority is given to the performance of the employees.

G. DEMOTION

Usually demotion is given in rare cases. It is given after repeated warnings. Only
problem makers are given demotion.

H. SEPARATION

Employees get separated from the organization at the age of 58. Voluntary retirement
scheme is provided in the company.

I. GRIEVANCE REDRESSAL SYSTEM

The grievance of the employees is handled as per the procedures given in the standing
orders of the company. If the problem is not settled, this will pass on to the general
manager, and the problem is settled through direct vocal discussion. No suggestion
and complaint boxes are there.

J. WELFARE MEASURES
“Labour welfare means anything done for the comfort and improvement intellectual
or social, of the employees over and above the wages paid which not the necessary of
the industry”.
Voluntary measures
1. Canteen
2. Drinking water

44
 3. Sitting facilities
4. Good lighting
Security systems like PF, ESI, medical claim, gratuity, group insurance scheme,
accident policy. The insurance policies are handled by new media insurance.

Non voluntary measures

1. Loans
2. Company tour
3. Accommodation

K. SAFETY MEASURES

1. Fire safety helmets

2. Prevention of accidents
3. Fire management
4. Gloves, shoes
5. Working dress

L. SHIFT SYSTEM

Three shifts are there for production and one general shift.
General shift : 9.00 am - 5.00 pm
Production shift: 8.00 am - 4.00 pm
4.00 pm - 12.00am
12.00 am – 8.00 am
M. ATTENDANCE

For maintaining the attendance, they are following punching card system and
registers. For the managerial staff, they are using punching card system and for
workers both the methods are using.

N. LEAVE SYSTEM
Casual leave – 12
Earned leave – 15
Sick leave – 12 (only for managerial staff).

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MARKETING DEPARTMENT

Figure: Structure of Marketing Department

The marketing department operates as a cell equipped with dedicated technical

resources in quality assurance and product development. Sales team includes
experienced professionals who ensure prompt and efficient response to customer’s
requirements through constant contact. Marketing helps in converting the customer’s
needs with their specifications into their desired product. They have the benefit of the
unbroken tradition in the spices industry for over a decade. The company’s experience
in the field earned customer from almost all over the world like US, Japan, Western
Europe, Spain, Germany and Geneva etc.

46
 The marketing department receives enquiries from their customers with their
specifications. They work with all customers on per shipment quality inspections and
in products where there might exist wide ranges of quality partners. Marketing
departments keep constant touch with the customers to ensure that their needs are
satisfied and also to know what their requirements are so that will be of help to them
in their product development. Since Arjuna is in this industry for long period they
have a specific set of customers who are trading with the company for many years.
The department is trying hard to explore and get into new markets.

FUNCTIONS
A. Identifying and locating the buyer
a. Through trade fairs and exhibitions
b. By reading trade journals, magazines etc.
c. Through internet
d. Through Agents
B. Qualifying the buyer
C. Send sample requisition to sampling section
D. Order taking and negotiations with buyer
E. Ensure the correct shipment of product
F. New product introduction
G. Gives information regarding exports market to the management
H. Collect information about the competitors
I. Promotional activities
J. Deals with customer queries

OBJECTIVES

 To increase customer satisfaction

 Product delivery must be within committed time
 100% sales forecast must be achieved
 Customer list has to be increased every year

DUTIES AND RESPONSIBILITIES

 Plan marketing and achieve sales as per target

 Collection of payments
 Arrangements of foreign travels
 Arrangements for exhibitions
 Arrangements for publicity and sales promotion
 Meeting customer demand
 Inter department coordination to achieve customer satisfaction

47
NICHE MARKET

Niche marketing is the process of finding and serving profitable market segment and
designing custom made products or services .ANEL is following niche marketing
where segment are often too small in order to serve them profitably as these are often
lack economies of scale. Arjuna is reliant on the royalty business model to maintain
a profitable volume of sales.

MARKETING STRATEGY

 Sharp and constant eye upon market

 Long term supply arrangements with industrial buyers
 Eliminate detrimental practices
 Greater responsiveness to market needs
 Best quality products ensuring world standards
 Ensuring timely supply of raw materials
 High quality CRM techniques

DISTRIBUTION STRATERGY
The company is following direct selling strategy for marketing their products. They
approach customers and will take orders directly from them. But in case of global
market, Arjuna depends mainly on distributors to market their products.

PRICING POLICY

 Competition will also decide pricing

 In some cases, small layers will go for cheap pricing but in such case company
will not go for price cuts
 The buyers are very much aware about the cost of raw materials and it’s value
addition will be made

PROMOTION STRATERGY

The promotional strategy of ANEL is to participate in trade affairs. Trade shows

represent a significant opportunity to enhance brand and product visibility, promote
new and existing products, generate leads and drive sales. In addition, show
participation enables you to learn about industry trends, gain competitor insights,
make key contacts, and further solidify relationships with current customers.

Arjuna’s main aim in participating trade fairs and exhibitions are to emerge as the
most powerful leader in marketing their natural products in national and global

48
markets. It will provide the perfect environment for end users to see the whole herbal
industry at one place and make a long term international business impact.

 To bring, new domestic and globally acclaimed buyers and sellers under one roof.
 To show product range on desk rather than a catalogue.
 Let global buyers use all five senses to gain a full appreciation of your product
 Get immediate feedback on your product range
 Overcome objections and accelerate the buying processor
 Educating global customer market
 Sell product in the show
 Raise profile in the industry and add value to the product brands
 Locate new agents and distributors for products
 Building prospect databases
 Conducting and gathering competitive intelligence
 Meeting and exchanging ideas
 Launch new products and generate media interest

REVIEW OF REQUIREMENTS RELATED TO THE PRODUCT

1. Enquiry is reviewed to ensure the terms are understood and achievable. The terms
of the enquiry are negotiated when the terms are beyond the company’s capability.
An enquiry review check list is maintained for every enquiry.
2. After enquiring the requirements the details are entered in the order file.
3. Once the terms are confirmed, marketing department sends the work order for the
production to the respective plant.
4. Any deviations to the agreed terms from the ends are reviewed and necessary
amendments are communicated to the buyer and carried as required.
5. Such amendments are communicated to the plant for the required correction in
the work order.

WORLD WIDE DISTRIBUTORS OF ANEL

1. FRUTAROM
2. INABAATAKORYO LTD JAPAN
3. QUIMIDS-FRANCE
4. WARREN CHEM SPECIALITIES LTD-SOUTH AFRICA DOLCAS BIOTEC

49
SHIPPING DEPARTMENT

Figure: Structure of Shipping Department

As company’s major business is export, the company gives high privilege to shipping
department. Moreover the documents maintained by this department are much
sensational. Its verification and forwardings are clearly verified and sanctioned

FUNCTIONS
A. Check clauses in letter of credit
B. Prepare pre-shipment like invoice, packing list etc.
C. Make arrangements for quality inspection from buyer’s inspector
D. Ensure the customs clearance and excise clearance
E. Manage the shipping scheduling.
F. Manages the insurance related activities of the product
G. Coordinate with C&F agents, shipping lines etc.
H. Collect the post shipment documents like bill of lading.
I. Prepare the documents that are required for payment collection from the bank

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5.1 FUTURE PLANS

A. NEW FACTORY

A new extraction unit is coming at Cochin right next to Arjuna’s R&D laboratory. Spread across
4500 sq mtrs area, with clean circulation and per day production and raw materials handling
facility of 6-8 tones, this plant will be one of the best extraction units in India.

B. EXPANSION WORK AT COIMBATORE FACTORY

The production capacity at Arjuna’s Coimbatore factory is being enhanced to cop-up with the
increased demand for Arjuna’s key product. This facility is being upgraded as hub for
standardized herbal extracts.

C. DEVELOPMENT OF NEW PRODUCTS

 New Omega- 3 products (Molecular Distillation)

 New herbal and spice extract products

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6.1 SWOT ANALYSIS
It is the analysis of strength, weakness, opportunities and threats that affect
organizational performance. Executives either hire special scanning organization of
executives or acquire information about internal strengths and weaknesses from a
variety of reports, including budgets, financial ratios, profit and loss statement and
surveys of employee attitude and satisfaction.

Strengths
 Well qualified and technically skilled manpower.
 Located in ‘land of spices’ Kerala. This is a strength because there is
availability of raw materials. Hence the costs incurred with respect to
procurement, transportation, etc. will be comparatively low.
 Patent right for absorption and processing of curcuminoid. BCM-95, the
patented turmeric extract formulation from Arjuna Natural Extracts Ltd has
received a US patent (US Patent No. 8859020) for a composition for the
treatment of Alzheimer disease. It comprises of curcuminoid mixture and
added essential oil of turmeric. The patent also covers method of making
the composition.
 World class R &D unit with new technologies. The state of the art laboratory
was approved by the Ministry of Science & Technology in 2001 for in-house
research.
 Company introduces new products according to customer’s needs. The full
time working R&D department comes up with innovations.
 The welfare measures and other benefits which the company provide
ensures happy employees. The open door policy also contributes to this.
 Worldwide marketing network with global distributors like Doclas Biotic in
USA, Quimdis in France.

Weaknesses
 High labor cost. Most of the workers are contract workers and even though
they will be with the company for 2 to 3 months, all the benefits like ESI
has to be availed to them as per law. This results in higher costs to the
company.
 Cannot tap the potential of the foreign market.
 No active advertisements. Arjuna has little focus on marketing their
products in the local market. It’s recently only that they have started selling
their products in local stores as well as through E-commerce sites like
Amazon. But they have yet to concentrate on building awareness of the
brand among the customers.
 Less focus on consumer products. They concentrate on the providing their
clients with necessary ingredients which is required by them to make a
finished product.

52
 Increase in the R&D expenditure. The full time working research
department adds on to the cost part. Also, many experiments are to be
conducted before approval of a required product or process.
 The company’s cost of production is very high. This affect the prospect of
the company in the price sensitive local market.
 Seasonal availability of raw material is having an adverse effect on the
company. In the off season, the raw material becomes so scarce that the
company has to import it from abroad paying higher prices.

Opportunities

 Export potential: globally there is a big demand for Indian herbal products.
The market for herbal and nutraceutical products are way higher in the
western countries than in India. With the help of free trade agreements,
the company enters into an agreement with other countries, it will be of
great advantage to the company as it can import raw materials and export
products without much restriction as way before. The global as well as the
local market is expanding. Industry has shown a steady growth in the past
few years. Demand has increased drastically. Favorable export prices from
government.
 Increased use of herbal and spice extracts in food and beverages industry.
 Development of innovative products for entering into new markets. Since
Arjuna’s R&D strives to make innovations they have the opportunity to
bring about new products to the market.
 To improve domestic sales

Threats
 Strict norms of exporting products like tariffs etc can hinder smooth flow
of exporting process
 The ever changing customer’s taste and preference with the introduction of
new products in the market can pose a threat.
 Large number of competitors in global and national market like Synthite,
Plant Lipids etc
 Restriction in export of certain herbal products to some countries can pose
a potential threat.
 Global financial crises is a potential threat to Arjuna’s business operations
 Changing policies of government can directly affect not only the
manufacturing process but also the export procedure
 Alternative raw materials
 Competition: inspite of wide opportunities in the industry, there is also
heavy competition from global and domestic players.

53
7.1 OBSERVATION

1. The company had good structure as well as management system

2. The company is utilizing full amount of men money material and
machine
3. The company provide good working condition for all workers including
lower levels to higher levels of employees
4. It provide canteen facilities for all workers at subsidized rate
5. There is mutual support in between management and employees
6. A great consideration for quality of the product is given

54
CHAPTER 2: PROBLEM FORMULATION

55
INTRODUCTION

Job satisfaction is a very important attribute which is frequently measured by organizations.

Organizational scholars have long been interested in why some people reports being very
satisfied with their jobs, while others express much lower levels of satisfaction. (Locke, 1976).
The drive to understand and explain job satisfaction has been motivated by useful and practical
reasons, as it could increase productivity, enhance organizational commitment, lower
absenteeism and turnover, and ultimately, increase organizational effectiveness. Essentially,
this facet is critically important among Air Defence operators as their roles and tasks involved
maintaining national security that demands highly skilled manpower with correct attitude,
knowledge and skill. In this respect, it requires time, effort and high cost to train and retrain an
airman to the level required to perform a specific task. Job satisfaction also affects humanitarian
interests as employees deserve to be treated with respect and have their psychological and
physical well-being maximized. Schnake (1991) stated that a satisfied worker usually meets or
exceeds the fulfilment of their formal job requirements. While a dissatisfied workers displays
a tendency for counterproductive behaviours such as withdrawal, burnout, and workplace
aggression (Spector, 1997) that is undesirable in well discipline establishment.

JOB SATISFACTION - MEANING AND DEFINITION

Job satisfaction is defined as the extent to which an employee feels self-motivated, content &
satisfied with his/her job. Job satisfaction happens when an employee feels he or she is having
job stability, career growth and a comfortable work life balance. This implies that the employee
is having satisfaction at job as the work meets the expectations of the individual.
Job satisfaction refers to a person’s feeling of satisfaction on the job which act as a motivation
to work. It is not the self-satisfaction, happiness or self-contentment but the satisfaction on the
job. Satisfaction does mean the simple feeling state accompanying the attainment by an impulse
of its objective. Research workers differently described the factors contributing the job
satisfaction and the job dissatisfaction.

“Job satisfaction is commonly defined as the extent to which employees like their work”- Agho,
Mueller and Price, 1993

It is generally conceptualized as general attitude toward an object and the job (Lofquist and
Dawis, 1969). Locke (1976) gives a comprehensive definition of job satisfaction as pleasurable
or positive emotional state resulting from the appraisal of one’s job experience

“Job satisfaction is a pleasurable or positive emotional state resulting from the appraisal or
one’s job or job experience” - E.A.Locke

“Job satisfaction is the amount of pleasure or contentment associated with a job. If you like
job intensely, you will experience high job satisfaction. If you dislike your job intensely, you
will experience job-dissatisfaction” - Andrew.J.DuBrins

56
“Job satisfaction will be defined as the amount of overall positive effect or feelings
that individuals have towards their jobs” - Fieldman and Arnold

“Job satisfaction is the set of favourable or unfavourable feelings with which employees
view their work” - Keith Davis and Newstrom

Job satisfaction is a result of employees’ perception of how well their job provides those things
that are viewed as important. It is generally recognized in the organisational behaviour field
that job satisfaction is the most important and frequently studied attitude.

IMPORTANCE OF JOB SATIFACTION

A satisfied employee is always important for an organization as he/she aims to deliver the best
of their capability. Every employee wants a strong career growth and work life balance at
workplace. If an employee feels happy with their company & work, they look to give back to
the company with all their efforts. Importance of job satisfaction can be seen from two
perspectives i.e. from employee and employer perspective:

For Employees: Job satisfaction from an employee perspective is to earn a good gross salary,
have job stability, have a steady career growth, get rewards & recognition and constantly have
new opportunities.

For Employers: For an employer, job satisfaction for an employee is an important aspect to get
the best out of them. A satisfied employee always contributes more to the company, helps
control attrition & helps the company grow. Employers needs to ensure a good job description
to attract employees and constantly give opportunities to individuals to learn and grow.
The positive effects of job satisfaction include:

i. More efficiency of employees of workplace if they are satisfied with their job.
ii. Higher employee loyalty leading to more commitment.
iii. Job satisfaction of employees eventually results in higher profits for companies.
iv. High employee retention is possible if employees are happy.

JOB SATISFACTION FACTORS

Job satisfaction is related to the psychology of an employee. A happy & content employee at a
job is always motivated to contribute more. On the other hand, a dissatisfied employee is
lethargic, makes mistakes & becomes a burden to the company. The elements & factors which
contribute to job satisfaction are:

1. Compensation & Working conditions:

57
One of the biggest factors of job satisfaction are the compensation and benefits given to an
employee. An employee with a good salary, incentives, bonuses, healthcare options etc is
happier with their job as compared to someone who doesn’t have the same. A healthy
workplace environment also adds value to an employee.

2. Work life balance:

Every individual wants to have a good workplace which allow them time to spend with their
family & friends. Job satisfaction for employees is often due a good work life balance policy,
which ensures that an employee spends quality time with their family along with doing their
work. This improves the employee's quality of work life.

3. Respect & Recognition:

Any individual appreciates and feels motivated if they are respected at their workplace. Also,
if they are awarded for their hard work, it further motivates employees. Hence recognition is
one of the job satisfaction factors.

4. Job security:
If an employee is assured that the company would retain them even if the market is turbulent,
it gives them immense confidence. Job security is one of the main reasons for job satisfaction
for employees.

5. Challenges:
Monotonous work activities can lead to dissatisfied employees. Hence, things like job rotation,
job enrichment etc. can help in job satisfaction of employees as well.

6. Career Growth:
Employees always keep their career growth part as a high priority in their life. Hence, if a
company helps groom employees and gives them newer job roles, it enhances the job
satisfaction as they know they would get a boost in their career.

There are several theories given which help in evaluating & measuring job satisfaction of
employees at workplace. Some of them are:

HIERARCHY OF NEEDS BY MASLOW

Hierarchy of Needs by Maslow is the theory of psychology which categorizes the need of
human into five types. It was developed by Abraham Maslow in 1943. Maslow proposed that
all human beings have a certain number of needs, some being more basic than others. These
needs are arranged in 5 levels in a hierarchy in a pyramid with basic or primitive needs at the
bottom and complex needs like self-esteem and self-actualization towards the upper level of
the pyramid. The five levels of Hierarchy of needs are- from top to bottom-

1. Physiological needs- food, air, sleep

2. Security needs- financial security, shelter
3. Social needs- friends, relatives, family

58
4. Esteem needs- Dignity, achievements, independence, status, prestige
5. Self-Actualization- seeking personal growth, self- fulfilment

The important point to note is that all human beings start fulfilling their bottom level needs
first before moving towards upper-level needs. For a person, self-esteem and social status are
irrelevant when he barely able to satisfy his hunger. The levels of hierarchy of needs are
elaborated as follows:

Physiological Need:
It is considered as the most basic need of the human and is placed at the bottom of Maslow
need Hierarchy pyramid. It should be meet first before meeting the other needs. It means the
need associated to human for their existence and survival. Food, shelter and clothing can be
considered the example of physiological need.

Safety Need:
These are placed above Physiological need in the pyramid and are required only when those
are met. These means the need of protection from the threats. These can be of any form i.e.
health, financial, physical etc.

Psychological Need:
These are the need for love and affection and are required when safety needs are met. In this
part a person looks for belongingness with his friends and family.

Esteem Needs:
People look for respect and the sense of acceptance in the society. Fame and glory fulfils the
esteem needs of the person.

Self- Actualization Need:

It is the top most need of the human being and in this person want to achieve success and want
to utilize his potential to his best. That means a person want to achieve the highest level he can.

HYGIENE THEORY BY HERZBERG

Herzberg proposed a dual factor theory to study the satisfaction levels of the employees in an
organization. The theory is also referred to as motivation-hygiene theory. The theory proposes
that there are two different sets of factors which cause job satisfaction and job dissatisfaction.
The first set of factors is called motivation factors. Only the presence of these factors can make
a person satisfied with his job. Factors like the quality of work, job profile come under this
category. The second set of factors is the hygiene factors. While the presence of these factors
can not cause satisfaction, their absence causes job dissatisfaction. Factors like work culture,
comfort, environment come under this category.

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ADAMS' EQUITY THEORY

Adam theory is concerned on social comparison in which, people will gauge the fairness of
their work outcomes as compare to others. Perceived inequity occurs when one compares their
rewards received for their work contribution which may appear less than the rewards that other
people are getting for their work. The theory states when inequity exists, people will be
motivated to function less at their work place to balance up the sense of reward that they
received.

VROOM'S EXPECTANCY THEORY

This theory examines motives through the perception of what a person believes will happen
based on anticipated rewards and costs. The theory uses three factors which are expectancy,
instrumentality and valence that influence motivation. He argues that work motivation is
determined by individual beliefs regarding effort / performance relationships and work
outcomes. In short, the expectancy theory is the perceived value of a reward for accomplishing
a goal. If the person expects the reward to be good / high, then maximum effort would be given.
Likewise if the expected reward is poor / low, then minimal effort would be shown. Therefore,
when the reward seemed undesirable, it may lead to job dissatisfaction.

REVIEW OF LITERATURE

Tahir (2000) examined the overall job satisfaction among RMAF air traffic controller. The aim
of the research was to gauge the level of job satisfaction among military air traffic controller
with major objectives of analysing the main factors that affect their job satisfaction and to
determine the overall ranking of the factor, in term of importance and contribution to the level
of job satisfaction. This exploratory study was based on analytical framework and model of
Barnowe, Mangione and Quinn (1972). The study used a non-experimental and quantitative
design using survey questionnaire of 93 military air traffic controller as well as interviews with
policy makers in the RMAF. The independent variables based on work environment were
relationship with the job, superior-subordinate relationship, relationship with peer, economic
rewards, organization climate and off-the-job rewards. The demographic characteristics were
also used as independent variable. The dependent variable was overall job satisfaction.
Tahir found that majority (92.4%) of the air traffic controllers were satisfied with their job.
Economic rewards and relationship with peer were significantly related to job satisfaction. In
demographic expects, those controllers who are relatively younger, lower rank, holding junior
appointments, less qualified and newer in service have low satisfaction level in their
relationship with peers. Similarly, older controllers with higher rank, holding senior
appointment with better qualification and longer job tenure have low satisfaction on economic
rewards. He also found poor promotion prospect has contributed significantly to lower
satisfaction among the air traffic controllers. Based on the results of the study, he suggested
60
that more sports and social activities could be conducted to improve the peer relationship
among the junior controller. As for the senior controllers, he suggested that RMAF should
review the promotion system to enhance job satisfaction among them.

Another study by Ellickson (2002) examined the determinants of job satisfaction of municipal
government of employees in USA. The aim of the research was to enhance the knowledge of
the determinants of job satisfaction among municipal government employees as this
organization has long been neglected in the job satisfaction literature. This exploratory study
was based on environmental factors and personal characteristics associated with job
satisfaction. In the environment factors they included 11 variables: equipment and resources,
physical work space, safe work environment, training, workload, departmental esprit de corps,
pay, benefits, promotional opportunities, performance appraisal, and supervision. Whereby, in
the personality’s characteristics the demographic information regarding employee gender, age,
and job level to reflect whether respondent is supervisory or nonsupervisory position. The study
used a non-experimental and quantitative design survey questionnaire. The questionnaire was
designed to assess employee perceptions about 11 different aspects of the workplace and 3
personal attributes on overall job satisfaction.
The departmental pride clearly emerged as the most powerful determinant of variation in
overall job satisfaction among municipal employees. Aside from departmental pride,
promotional opportunities, pay benefit were among the model's most important predictors of
job satisfaction. The strength of these three factors lends strong support to the importance of
extrinsic rewards in the development of municipal employee job satisfaction. In contrast, only
one of three personal attributes tested emerged as a significant predictor of job satisfaction,
although gender's impact was successfully stated in the null.

Price (2002) also looked at the job satisfaction of registered nurses and the factors that led to
satisfaction or dissatisfaction in the acute adult hospital in USA. Price’s study had a
quantitative, descriptive design and was based on the theoretical framework of Maslow’s need
hierarchy theory. He used a systematic sampling design to select 175 of the 351 nurses in the
same field across the country. The questionnaire used in Price’s (2002) study to measure nurse
satisfaction was the Mueller McCloskey Nurses Satisfaction Scale (MMSS). It is a Likert scale
ranging from 1 (very dissatisfied) to 5 (very satisfied) and it has been found to be both valid
and reliable with a correlation coefficient of 0.89. The MMSS had eight subscales that included
satisfaction with extrinsic rewards, scheduling, balance of family and work, co-workers,
interaction opportunities, professional opportunities, praise and recognition, and controls and
responsibility.
According to the mean scores of the eight subscales on the MMSS, co-workers and extrinsic
rewards were rated the highest in relation to satisfaction and professional opportunities and
control and responsibility were rated the lowest. It was also found that the most satisfied nurses
were working part-time, between 51 and 60 years old, and had been working in post for 7-10
years. The most dissatisfied nurses were working full-time, between 31 and 40 years old, and
had been working in post for 3-4 years. The results of this study emphasized the relationships
between co-workers and employment benefits as dissatisfiers along with low levels of

61
perceived autonomy and professional opportunities as satisfiers. Most other factors of
dissatisfaction were related to the amount of encouragement, feedback, and recognition that is
received from administration and the nurse’s opportunities to participate in decision-making.
All of these aspects of dissatisfaction could be changed at the administrative and managerial
levels to increase the nurses’ satisfaction.

Castillo and Cano (2004) examined the factors explaining job satisfaction among faculty at the
College of Food, Agricultural, and Environmental Sciences at The Ohio State University, USA.
The purpose of the study was to describe the amount of variance in faculty member’s overall
level of job satisfaction explained by Herzberg, Mausner, Snyderman (1959) job motivator and
hygiene factors. Additionally, the study sought to investigate the suitability of a one-item
versus a multi-item measure of overall job satisfaction. The independent variables were salary,
supervision, policy and administration, peer relationship, work conditions of hygiene factor
and work itself, advancement, achievement, recognition and responsibility of motivation
factor. The dependent variable was overall job satisfaction. The study used a quantitative
survey of 172 members of faculty. The questionnaire consisted of three parts: the Job
Satisfaction Index, Wood (1973) Faculty Satisfaction / Dissatisfaction Scale, and demographic
characteristics.

A different study was done by Scott, Swortzel and Taylor (2005) to determine how
demographic factors were related to the level of job satisfaction of Extension agents in
Mississippi. They believed that demographic variables should be considered to thoroughly
understand the possible factors that lead to job satisfaction and dissatisfaction. Their study
follow a descriptive correlational design based on Hackman and Oldham (1980) theory that
describes a job characteristic which is an attribute of a job that creates conditions for high work
motivation, satisfaction and performance.
The study used questionnaire survey of a modified version of the Job Diagnostic Survey (JDI)
developed by Hackman and Oldham (1980), consists of two sections of job satisfaction
construct, namely personal satisfaction and context satisfaction. The questions asked in the
personal satisfaction construct relates to internal work motivation, growth satisfaction, and
general satisfaction. Whereby, job security, pay, co-worker relations and supervision were used
to measure context satisfaction. The sub scales of demographic characteristics used in the study
were gender, age, race, marital status, education level, previous position and current position
held by Extension agents.
Khodabakhsh and Kolivand (2007) believed that stress induces impairment of performance of
which this is a relatively common issue in pilots of military aviation. Their study was aimed at
gathering preliminary data on the relationship between stress and job satisfaction among
military pilots. The primary goal of this study is to explore the stressors that affect pilots in
their field of practice and to determine the extent military pilots are suffering from job
satisfaction. Their study was cross-sectional in design and used survey methodology. The
survey was offered to 89 military pilots. The independent variables were life stress,
organizational stress, flight environmental stress and task-based stress. The pilots’ flight hours
used to indicate pilot’s experience were also used as independent variable. The dependent

62
variable was overall job satisfaction. All respondents completed a questionnaire with 32-item
on Aviation Stress and short form of Minnesota Job Satisfaction Questionnaire (MSQ).
The results indicated that 33.7 percent of pilots had mild stress, 48.3 percent of pilots exhibited
moderate stress and only 13.5 percent of pilots indicated high stress. Of the four groups of
stressors, the life stress had maximum rate of incidence with the mean of 6.45 and Standard
Deviation (SD) of ± 2.3, the organizational stress with the mean of 5.05 and SD of ±2.1, the
flight environmental stress with the mean of 4.03 ± and SD of 1.9 and finally, the task-based
stress had minimum rate of incidence with the mean of 3.91 and SD of ± 2.1.
The correlation (r) between job satisfactions and life stress was -.53, with organizational stress-
.38, with flight environmental stress -.25, with task based stressors -.23 and finally correlation
between job satisfactions with flying hours was -.22. The finding also reviewed that when
military pilots have the least flights, with no schedule and lots of idle time, these factors can
also increase their stress level. The results of the study suggest that it is essential to provide
military pilots with some training, evaluating and other psychological services, especially life
skills and organizational skills. In addition, filling their schedules with useful programs such
as flight with civilian airplanes, educational and research activities, favourite executive
activities, sports and entertainment can decrease their stress, increase their job satisfaction and
decrease their occupational weariness.

63
 I. TITLE OF THE STUDY

The title of the study is “To study the Job satisfaction among the employees working in Arjuna
Naturals Pvt Ltd”

II. STATEMENT OF THE PROBLEM

Employees are the central forces of an industry and only with their efficiency, an
organisation can move into success. Only with a group of satisfied employees the company
can lead into success. For employees’ satisfaction, the company must provide adequate
welfare measures. By conducting a job satisfaction survey we can analyse whether the
employees are satisfied or not and also whether they are motivated by the general, welfare,
financial and other related factors.

III. RELEVANCE OF THE STUDY

Job satisfaction is one of the important factors which have drawn attention of managers in the
organization as well as academicians. Various studies have been conducted to find out the
factors which determine job satisfaction and the way it influences productivity in the
organization. Though there is no conclusive evidence that job satisfaction affects productivity
directly since productivity depends on so many variables, it is still a prime concern for
managers. Job satisfaction is the mental feeling of favourableness which an individual has
about his job. It is often said that “A happy employee is a productive employee.” Job
satisfaction is very important because most of the people spend a major portion of their life at
their working place. Moreover, job satisfaction has its impact on the general life of the
employees also, because a satisfied employee is a contented and happy human being. A highly
satisfied worker has better physical and mental well-being. The study tries to evaluate how
human resource factors affect the satisfaction level of employees in Arjuna Naturals Pvt Ltd.
It assesses how far welfare and financial factors motivate the employees in the company. The
study also attempts to analyse the opinion of employees towards the working life in the
company.

64
CHAPTER 3: RESEARCH PROCESS

65
IV. OBJECTIVES OF THE STUDY

The study aims to achieve the following objectives:-

i. To assess the overall satisfaction level of employees at Arjuna Naturals Pvt Ltd.
ii. To identify the satisfaction level of employees with regard to the different factors
related to their work in Arjuna Naturals Pvt Ltd.
iii. To identify the satisfaction of employees with the top management.
iv. To assess what factors motivate the employees in Arjuna Naturals Pvt Ltd.

V. SCOPE OF THE STUDY

The study can be helpful for the organisation in analysing the level of job satisfaction of their
employees and it could help them to take corrective measures or implement new facilities that
could improve job satisfaction level.

VI. RESEARCH DESIGN

The study will be conducted in Arjuna Naturals Private Limited at their head office in Bank
Road, Aluva. This will be conducted during the two month period of the summer internship as
part of the second semester program of MHRM known as “Organisational Internship”. The
duration of study will be from April 1st 2019 to May 27th 2019. The total number of employees
in Arjuna Naturals Private Limited is 150. The sample size which is intended to be used for
this study purpose is 40 employees, mainly from three departments namely Finance
Department, Purchase Department and the Marketing Department. Simple Random Sampling
can be used for sampling.
In this study, both qualitative and quantitative research methods are used. Options could
include interviews, surveys and observations. Both primary and secondary data are used for
the study. The primary data are collected by using questionnaire method. Secondary data are
collected from books, journals, company manuals, company website, company magazines and
informal talk with the officers and the employees. The data collected is exhibited with the help
of tables and graphs as it helps in presenting quantitative facts in simple, clear and effective
pictures and are also attractive and create lasting impression. Percentage analysis is being used
for data interpretation.

66
VII. METHODS OF DATA COLLECTION

Primary data was collected from the employees of Arjuna Natural Pvt Ltd by the researcher
with the help of structural questionnaire from 40 employees.
The secondary data mainly consists of data and information collected from records, company
websites and also discussion with the management of the organization. Secondary data were
also collected from books, journal and magazine, etc.
There are three main tools that are used for collecting data namely survey using questionnaires,
observation as well as interview. There are various other techniques too. For this research
study, the tool which is mainly used is the survey method. A structured questionnaire of 15
questions on employee job satisfaction, after getting approved from the management of the
company, was handed over to the HR manager to be distributed among the 40 employees.

VIII. TOOLS FOR DATA COLLECTION

Percentage Analysis Method

The percentage is used making comparison between two or more series of data. The
percentages are just that percent of people who gave a particular answer. That is, the
percentages represent the number of people who gave each answer as a proportion of the
number of people who answered the question.
Given below is the formula that is used to calculate the percentage of respondents having the
same opinion with regard to the questions asked to them in the questionnaire.

Percentage of respondents = Number of respondents X 100

Total number of respondents

Pie diagram

A pie chart (or a circle chart) is a circular statistical graphic, which is divided into slices to
illustrate numerical proportion. In a pie chart, the arc length of each slice (and consequently its
central angle and area), is proportional to the quantity it represents.
Pie diagrams are used to show the percentage rate in the diagram format. This helps to
understand the percent rate in a cleaner manner.

67
IX. SAMPLING AND SAMPLE SIZE

POPULATION

Population is the total collection of elements or units that comprise the defined domain of a
research study. It’s that total of events, incidents, individuals or situations about which the
researcher wants to make inferences or to which the conclusions may be extended. A single
unit or member of the population is referred to as a population element
The survey was conducted in three departments of Arjuna Naturals Pvt Ltd, namely, Purchase
Department, Finance Department and Marketing Department. The total number of employees
is 150.

SAMPLING

Studying some of the elements that have been appropriately and judiciously chosen from a
population will equip the researcher to draw conclusions about the entire population. This
process of choosing the appropriate sample from the population is called Sampling.
Convenience sampling is a non-probability sampling technique where subjects are selected
because of their convenient accessibility and proximity to the researcher.in this study, the
samples were selected using convenience sampling.

SAMPLE

Convenience Sampling was used for this particular research study. Out of the total 150
employees of Arjuna Natural Pvt Ltd, 40 employees were selected as sample. The
questionnaires were distributed to the respondents in the selected sample.

68
CHAPTER 3: PRESENTATION, ANALYSIS
AND INTERPRETATION OF DATA

69
 i. MALE/FEMALE

GENDER EMPLOYEES PERCENTAGE

FEMALE 12 30
MALE 28 70
TOTAL 40 100

GENDER
FEMALE MALE

30%

70%

Table 1

Interpretation

Among the 40 employees in the sample, there are 30 % of them are females and 70% of them
are males. It is clear that the number of male employees is more than that of females.

70
 ii. AGE-GROUP

AGE GROUP EMPLOYEES PERCENTAGE

20-30 2 5
30-40 20 50
40-60 18 45
ABOVE 60 -
TOTAL 40 100

AGE GROUP
20-30 YEARS 30-40 YEARS 40-60 YEARS ABOVE 60 YEARS

5%

45%

50%

Table 2

Interpretation

Among the employees, 50% of them are between 30-40 years of age. 45% of the employees lie
between the age of 40-60 years and only 5% of them belong to the age group of 20-30. There
are no respondents who is above 60 years of age.

71
 iii. NUMBER OF YEARS WORKING WITH THIS COMPANY

NO. OF YEARS EMPLOYEES PERCENTAGE

0-3 YEARS - -
3-5 YEARS 2 5
5-7 YEARS 8 20
MORE THAN 7 YEARS 30 75
TOTAL 40 100

NUMBER OF YEARS IN THE COMPANY

0-3 YEARS 3-5 YEARS 5-7 YEARS MORE THAN 7 YEARS

5%

20%

75%

Table 3

Interpretation

75% of the respondents have been working in Arjuna Natural Pvt Ltd for more than 7 years,
20% of the employees have been working between 5 to 7 years. Only 5% of the respondents
have 3-5 years of experience in the company.

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 iv. WORK IS ACCORDING TO QUALIFICATION AND SKILLS.

EMPLOYEES PERCENTAGE
STRONGLY AGREE 30 75
AGREE 10 25
NEUTRAL - -
DISAGREE - -
STRONGLY DISAGREE - -
TOTAL 40 100

WORK IS ACCORDING TO QUALIFICATION AND

SKILLS
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

25%

75%

Table 4

Interpretation

Among the respondents, 75% of them strongly agree that their wok is according to qualification
and skills. 25 % agree to this as well. From this it is pretty clear that majority of the employees
feel that the work given to them is according to their skills and qualification.

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 v. GOT THE TRAINING THAT IS NEEDED TO DO THE JOB.

EMPLOYEES PERCENTAGE
STRONGLY AGREE 37 92.5
AGREE 3 7.5
NEUTRAL - -
DISAGREE - -
STRONGLY DISAGREE - -
TOTAL 40 100

GOT THE TRAINING THAT IS NEEDED TO DO

THE JOB
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

8%

92%

Table 5

Interpretation

92% of the employees strongly agree and 8% agree that they have got the necessary training
that is required to perform the job which they are assigned to.

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 vi. FEELING UNDERUTILIZED IN JOB

EMPLOYEES PERCENTAGE
STRONGLY AGREE - -
AGREE - -
NEUTRAL 2 5
DISAGREE 10 25
STRONGLY DISAGREE 28 70
TOTAL 40 100

FEELING UNDERUTILIZED IN JOB

STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

5%

25%

70%

Table 6

Interpretation

Among the respondents, 70% of them strongly disagree about feeling underutilised in their job,
25% of them disagreed and only 5% have a neutral stand.

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vii. EMPLOYEES ARE SATISFIED WITH THE TOP MANAGEMENT.

EMPLOYEES PERCENTAGE
STRONGLY AGREE 36 90
AGREE 4 10
NEUTRAL
DISAGREE
STRONGLY DISAGREE
TOTAL 40 100

EMPLOYEES SATISFIED WITH TOP

MANAGEMENT
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

90%

Table 7

Interpretation

90% of the respondents strongly agree and 10% agree that they are satisfied with the company’s
top management. This response indicates that the employees are pretty happy with their top
management.

76
viii. WORKING HOURS AT THE COMPANY IS SATISFACTORY.

EMPLOYEES PERCENTAGE
STRONGLY AGREE 36 90
AGREE 3 7.5
NEUTRAL 1 2.5
DISAGREE
STRONGLY DISAGREE
TOTAL 40 100

EMPLOYEES SATISFIED WITH WORKING

HOURS
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

3%
7%

90%

Table 8

Interpretation

Among the total respondents, 90% of them strongly agreed, 7% of them agreed and 3% of them
have a neutral stand when asked if they were satisfied with the working hours. The employees
under the survey have working hours between 9am to 5 pm in the evening with the necessary
breaks for lunch.

77
 ix. EMPLOYEES GET APPRECIATION AND REWARDS IF THE DESIRED
WORK / TARGETS ARE ACCOMPLISHED.

EMPLOYEES PERCENTAGE
STRONGLY AGREE 27 67.5
AGREE 13 32.5
NEUTRAL - -
DISAGREE - -
STRONGLY DISAGREE - -
TOTAL 40 100

EMPLOYEES GET APPRECIATION AND

REWARDS IF THE DESIRED WORK / TARGETS
ARE ACCOMPLISHED

STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

33%

67%

Table 9

Interpretation

67% of the respondents strongly agree and 33% of them agree that they get the appreciation
and rewards if the desired work / targets are accomplished.

78
 x. PHYSICAL WORKING CONDITION IN THE COMPANY IS
SATISFACTORY.

EMPLOYEES PERCENTAGE
STRONGLY AGREE 33 82.5
AGREE 7 17.5
NEUTRAL - -
DISAGREE - -
STRONGLY DISAGREE - -
TOTAL 40 100

SATISFACTORY PHYSICAL WORKING

CONDITION

STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

18%

82%

Table 10

Interpretation
82% of the respondents strongly agree and 18% of them agree that they have satisfactory
working condition in the office.

79
 xi. WELFARE FACILITIES PROVIDED TO THE EMPLOYEES BY THE
ORGANIZATION ARE SATISFACTORY.

EMPLOYEES PERCENTAGE
STRONGLY AGREE 33 82.5
AGREE 7 17.5
NEUTRAL - -
DISAGREE - -
STRONGLY DISAGREE - -
TOTAL 40 100

SATISFACTORY WELFARE FACILITIES

STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

18%

82%

Table 11

Interpretation
82% of the respondents strongly agree and 18% agree that the company has satisfactory welfare
facilities that is being provided to them.

80
xii. FACTORS WHICH MOTIVATE THE MOST.

EMPLOYEES PERCENTAGE
SALARY INCREASE 25 62.5
PROMOTION 5 12.5
LEAVE 3 7.5
MOTIVATIONAL TALKS - -
RECOGNITION 7 17.5
TOTAL 40 100

FACTORS WHICH MOTIVATE EMPLOYEES

SALARY INCREASE PROMOTION LEAVE MOTIVATIONAL TALKS RECOGNITION

18%

8%

12% 62%

Table 12

Interpretation

62% of the employees get motivated with salary increase, 18% of them find recognition as a
motivating factor. For 12% it is promotion and rest 8% feel motivated with leaves.

81
xiii. COMPANY RECOGNIZES AND ACKNOWLEDGES WORK.

EMPLOYEES PERCENTAGE
STRONGLY AGREE 32 80
AGREE 8 20
NEUTRAL - -
DISAGREE - -
STRONGLY DISAGREE - -
TOTAL 40 100

COMPANY RECOGNIZES AND

ACKNOWLEDGES WORK
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

20%

80%

Table 13

Interpretation

80% of the respondents strongly agree and 20% of them agree that the company acknowledges
and recognizes the work done.

82
xiv. COMPANY PROVIDES SATISFACTORY SALARY ACCORDING TO THE
WORK.

EMPLOYEES PERCENTAGE
STRONGLY AGREE 29 72.5
AGREE 7 17.5
NEUTRAL 4 10
DISAGREE - -
STRONGLY DISAGREE - -
TOTAL 40 100

COMPANY PROVIDES SATISFACTORY SALARY

ACCORDING TO THE WORK DONE

STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

10%

18%

72%

Table 14

Interpretation

72% of the respondents strongly agree that the company provides satisfactory salary, 18% of
them agree and rest 10% of them are neutral about the satisfaction they have on the salary
provided to them by the company.

83
xv. OVERALL SATISFACTION WITH THE JOB.

EMPLOYEES PERCENTAGE
HIGHLY SATISFIED 29 72.5
SATISFIED 11 27.5
AVERAGE - -
DISSATISFIED - -
HIGHLY DISSATISFIED - -
TOTAL 40 100

OVERALL SATISFACTION WITH THE JOB

HIGHLY SATISFIED SATISFIED AVERAGE DISSATISFIED HIGHLY DISSATISFIED

28%

72%

Table 15

Interpretation

Among the employees which was being surveyed, 72% is highly satisfied and 28% are satisfied
with their job. From this it is clear that the respondents aren’t dissatisfied with their job.

84
CHAPTER 4: FINDINGS

1. Among the 40 employees in the sample, there are 30 % of them are females and 70%
of them are males. It is clear that the number of male employees is more than that of
females.
2. Among the employees, 50% of them are between 30-40 years of age. 45% of the
employees lie between the age of 40-60 years and only 5% of them belong to the age
group of 20-30. There are no respondents who is above 60 years of age.
3. 75% of the respondents have been working in Arjuna Natural Pvt Ltd for more than 7
years, 20% of the employees have been working between 5 to 7 years. Only 5% of the
respondents have 3-5 years of experience in the company.
4. Among the respondents, 75% of them strongly agree that their wok is according to
qualification and skills. 25 % agree to this as well. From this it is pretty clear that
majority of the employees feel that the work given to them is according to their skills
and qualification.
5. 92% of the employees strongly agree and 8% agree that they have got the necessary
training that is required to perform the job which they are assigned to.
6. Among the respondents, 70% of them strongly disagree about feeling underutilised in
their job, 25% of them disagreed and only 5% have a neutral stand.
7. 90% of the respondents strongly agree and 10% agree that they are satisfied with the
company’s top management. This response indicates that the employees are pretty
happy with their top management.
8. Among the total respondents, 90% of them strongly agreed, 7% of them agreed and 3%
of them have a neutral stand when asked if they were satisfied with the working hours.
The employees under the survey have working hours between 9am to 5 pm in the
evening with the necessary breaks for lunch.
9. 67% of the respondents strongly agree and 33% of them agree that they get the
appreciation and rewards if the desired work / targets are accomplished.
10. 82% of the respondents strongly agree and 18% of them agree that they have
satisfactory working condition in the office.
11. 82% of the respondents strongly agree and 18% agree that the company has satisfactory
welfare facilities that is being provided to them.
12. 62% of the employees get motivated with salary increase, 18% of them find recognition
as a motivating factor. For 12% it is promotion and rest 8% feel motivated with leaves.
13. 80% of the respondents strongly agree and 20% of them agree that the company
acknowledges and recognizes the work done.
14. 72% of the respondents strongly agree that the company provides satisfactory salary,
18% of them agree and rest 10% of them are neutral about the satisfaction they have on
the salary provided to them by the company.
15. Among the employees which was being surveyed, 72% is highly satisfied and 28% are
satisfied with their job. From this it is clear that the respondents aren’t dissatisfied with
their job.

85
CONCLUSION

An employee’s assessment of how satisfied or dissatisfied he or she is with his or her

job is a complex summation of a number of discrete job elements. This job satisfaction
study was a procedure by which employees report their feelings towards their job and work
environment. It helped as a powerful diagnostic instrument for assessing employee problems.
Improved communication is another benefit of the study. Particularly beneficial to the
company is the upward communication when employees are encouraged to comment
about what they really have in their minds.
During the course of study, it was observed that the employees are quite satisfied with
working at Arjuna Naturals Pvt Ltd. They are happy about their physical working condition
as well as the welfare facilities provided to them. Most of the employees are happy with the
salary provided to them however few of them are in a neutral stand. Maybe the company can
look into improving that part so that more employees are satisfied. As it was already observed
that most of the employees find salary increase as the motivating factor. The employees are
satisfied with the top management and most of them feel that they are being considered in the
decision making process as well.

86
BIBLIOGRAPHY

BOOKS

1. Arthur P Brief, ATTITUDES IN AND AROUND ORGANISATION

2. C.R. Kothari, RESEARCH METHODS AND TECHNOLOGY
3. Stephen P. Robins, ORGANISATIONAL BEHAVIOR

WEBSITES

1. www.wikipedia.com
2. pdfs.semanticscholar.org
3. journals.lww.com

COMPANY REFERENCE

1. Company Brochure
2. Production flow chart
3. Quality management policy

87
ANNEXURE

88
QUESTIONNAIRE

PLEASE MARK YOUR CHOICES.

Gender?

a. Male

b. Female

Age group?

a. 20-30

b. 30-40

c. 40-60

d. above 60

Q1. From how many years have you been working with this Company?

a. 0-3 Years

b. 3-5 Years

c. 5 to 7 Years

d. More than 7 Years

Q2. Your work is according to your qualification and skills.

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

89
Q3. I have got the training that is needed to do my job

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

Q5. I feel underutilized in my job.

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

Q6. Employees are satisfied with the top Management.

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

90
Q7. Working hours at your Company is satisfactory.

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

Q8. “Employees get Appreciation and rewards if the desired work / targets are
accomplished”.

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

Q9. “Physical working condition in the Company is satisfactory”.

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

91
Q10. “Welfare facilities provided to the employees by the organization are satisfactory”.

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

Q11. Which of the following factors which motivates you most?

a. Salary Increase

b. Promotion

c. Leave

d. Motivational talks

e. Recognition

Q12. Your company recognize and acknowledge your work.

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

92
Q13. Company provides satisfactory Salary according to the Work.

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

Q14. Rate your Overall Satisfaction with your Job?

a. Highly Satisfied

b. Satisfied

c. Average

d. Dissatisfied

e. Highly Dissatisfied

93