A

SUMMER TRAINING PROJECT REPORT

ON

“A STUDY OF RISK MANAGEMENT WITH

REFERENCE TO RAMA WOOD CRAFT,
SATNA”

SUBMITTED TO

AWADHESH PRATAP SINGH UNIVERSITY, REWA (M.P.)

FOR THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION
MBA (SEMESTER-III)

BY

MS. POOJA PANDEY

UNDER GUIDANCE OF
PROF. K. P. TRIPATHI

VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH,

SATNA (M.P.)
2014- 2015
 VINDHYA INSTITUTE OF MANAGEMENT &
RESEARCH
SATNA (M.P.)

GUIDE’S CERTIFICATE
This is to certify that MS.POOJA PANDEY has satisfactorily completed the

Summer Training Project work on “A Study of Risk Management with

reference to Rama Wood Craft” under my guidance for the partial fulfillment

of MBA (Semester-III) submitted to Awadhesh Pratap Singh University,

Rewa during the academic year 2014-2015.

To best of my knowledge and belief the matter presented by her is

original work and not copied from any source. Also this report has not been

submitted earlier for the award of any Degree of Awadhesh Pratap Singh

University, Rewa.

Place: Satna PROF. K. P. TRIPATHI

Date: / 12 / 2014 (Project Guide)
 VINDHYA INSTITUTE OF MANAGEMENT &
RESEARCH
SATNA (M.P.)

DECLARATION

I undersigned, hereby declare that this Summer Training Project Report

entitled “A Study Risk Management with reference to Rama Wood Craft”

prescribed by AWADHESH PRATAP SINGH UNIVERSITY, REWA during the

academic year 2014-2015 under the guidance of PROF. K. P. TRIPATHI is my

original work.

The matter presented in this report has not been copied from any source.

I understand that any such copying is liable to be punishable in any way the

university authorities deem to be fit. Also this report has not been submitted

earlier for the award of any Degree or Diploma of Awadhesh Pratap Singh

University, Rewa or any other University.

This work humbly submitted to Awadhesh Pratap Singh University for

the partial fulfillment of Master of Business Administration (Sem-III).

PLACE: SATNA MS. POOJA PANDEY

DATE: 30 / 12 / 2014

4
 VINDHYA INSTITUTE OF MANAGEMENT &
RESEARCH
SATNA (M.P.)

ACKNOWLEDGEMENT

Whenever we are standing on most difficult step of the dream of our life,
we often remind about The Great God for His blessings & kind help and he
always helps us in tracking off the problems by some means in our lifetime. I
feel great pleasure to present this project entitled “A Study of Risk
Management with reference to Rama Wood Craft”.
I am grateful to those people who help me a lot in preparation of this
project report. It is their support and blessings, which has brought me to write
this project report. I have a deep sense of gratitude in my heart for them.
I would give sincere thanks to our faculty members Prof. Sankalp
Shukla, Prof. R.P.Singh, Prof. Prashant Mishra, Prof. Neeraj Saxena, Dr. Fahim
Siddiqui, Prof. Priti Dwivedi, Prof. Neelam Bajpai, Prof. Pooja Pandey who is
been & will be source of inspiration to us.
I am very thankful to my project guide Prof. K.P.Tripathi for his whole-
hearted support and affectionate encouragement without which my successful
project would not have been possible.
Finally, I am very grateful to Mighty God and inspiring parents whose
loving & caring support contributed a major share in completion of my task.

5
 Ms. Pooja Pandey

TABLE OF CONTENTS

S.N. Contents Page No.

1 Introduction of Project 6-20

2 Company Profile 21-28

3 Review of Literature 22-32

4 Objectives 33-34

5 Research Methodology 35-39

6 Data Analysis & Interpretation 40-64

7 Findings & Suggestions 65-68

8 Limitations 69-70

9 Conclusion 71-72

10 References 73-74

Annexure
11 75-80
Questionnaire

6
 CHAPTER-I

INTRODUCTION OF PROJECT

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INTRODUCTION:

Risk management underscores the fact that the survival of an organization depends
heavily on its capabilities to anticipate and prepare for the change rather than just waiting
for the change and react to it. The objective of risk management is not to prohibit or
prevent risk taking activity, but to ensure that the risks are consciously taken with full
knowledge, purpose and clear understanding so that it can be measured and mitigated. It
also prevents an institution from suffering unacceptable loss causing an institution to
suffer or materially damage its competitive position. Functions of risk management
should actually be bank specific dictated by the size and quality of balance sheet,
complexity of functions, technical/ professional manpower and the status of MIS in place
in that bank.

INTRODUCTION

Risk: the meaning of ‘Risk’ as per Webster’s comprehensive dictionary is “a chance of

encountering harm or loss, hazard, danger” or “to expose to a chance of injury or loss”.
Thus, something that has potential to cause harm or loss to one or more planned
objectives is called Risk.
The word risk is derived from an Italian word “Risicare” which means “To Dare”. It is an
expression of danger of an adverse deviation in the actual result from any expected result.
Banks for International Settlement (BIS) has defined it as- “Risk is the threat that an
event or action will adversely affect an organization’s ability to achieve its objectives and
successfully execute its strategies.”
What Is Risk Management?

Risk Management is the process of identifying, analyzing and responding to risk factors
throughout the life of a project and in the best interests of its objectives. Proper risk
management implies control of possible future events and is proactive rather than
reactive. For example:

An activity in a network requires that a new technology be developed. The schedule

indicates six months for this activity, but the technical employees think that nine months
is closer to the truth. If the project manager is proactive, the project team will develop a

8
contingency plan right now. They will develop solutions to the problem of time before the
project due date. However, if the project manager is reactive, then the team will do
nothing until the problem actually occurs. The project will approach its six month
deadline, many tasks will still be uncompleted and the project manager will react rapidly
to the crisis, causing the team to lose valuable time.

Risk Management Systems

Risk Management Systems are designed to do more than just identify the risk. The system
must also quantify the risk and predict the impact on the project. The outcome is therefore
a risk that is either acceptable or unacceptable. The acceptance or non-acceptance of a
risk is usually dependent on the project manager's tolerance level for risk.

If risk management is set up as a continuous, disciplined process of problem identification

and resolution, then the system will easily supplement other systems. This includes;
organization, planning and budgeting, and cost control. Surprises will be diminished
because emphasis will now be on proactive rather than reactive management.

Risk Management...A Continuous Process

It begins with an idea which comes from:

Once the Project Team identifies all of the possible risks that might jeopardize the success
of the project, they must choose those which are the most likely to occur. They would
base their judgment upon past experience regarding the likelihood of occurrence, gut feel,
lessons learned, historical data, etc.

Early in the project there is more at risk then as the project moves towards its close. Risk
management should therefore be done early on in the life cycle of the project as well as
on an on-going basis.

The significance is that opportunity and risk generally remain relatively high during
project planning (beginning of the project life cycle) but because of the relatively low
level of investment to this point, the amount at stake remains low. In contrast, during
project execution, risk progressively falls to lower levels as remaining unknowns are
translated into knowns. At the same time, the amount at stake steadily rises as the
necessary resources are progressively invested to complete the project.

The critical point is that Risk Management is a continuous process and as such must not
only be done at the very beginning of the project, but continuously throughout the life of
the project. For example, if a project's total duration was estimated at 3 months, a risk
assessment should be done at least at the end of month 1 and month 2. At each stage of
the project's life, new risks will be identified, quantified and managed.

9
Risk Response

Risk Response generally includes:

 Avoidance...eliminating a specific threat, usually by eliminating the cause.

 Mitigation...reducing the expected monetary value of a risk event by reducing the
probability of occurrence.

 Acceptance...accepting the consequences of the risk. This is often accomplished

by developing a contingency plan to execute should the risk event occur.

In developing Contingency Plans, the Project Team engages in a problem solving process.
The end result will be a plan that can be put in place on a moment's notice.

What a Project Team would want to achieve is an ability to deal with blockages and
barriers to their successful completion of the project on time and/or on budget.
Contingency plans will help to ensure that they can quickly deal with most problems as
they arise. Once developed, they can just pull out the contingency plan and put it into
place.

Why do Risk Management?

The purpose of risk management is to:

 Identify possible risks.

 Reduce or allocate risks.
 Provide a rational basis for better decision making in regards to all risks.

 Plan.

Assessing and managing risks is the best weapon you have against project catastrophes.
By evaluating your plan for potential problems and developing strategies to address them,
you'll improve your chances of a successful, if not perfect, project.

Additionally, continuous risk management will:

 Ensure that high priority risks are aggressively managed and that all risks are cost-
effectively managed throughout the project.

 Provide management at all levels with the information required to make informed
decisions on issues critical to project success.
If you don't actively attack risks, they will actively attack you!!

How to do Risk Management

First we need to look at the various sources of risks. There are many sources and this list

10
is not meant to be inclusive, but rather, a guide for the initial brainstorming of all risks.
By referencing this list, it helps the team determine all possible sources of risk.

Various sources of risk include:

 Project Management
 Top management not recognizing this activity as a project
 Too many projects going on at one time
 Impossible schedule commitments
 No functional input into the planning phase
 No one person responsible for the total project
 Poor control of design changes
 Problems with team members.
 Poor control of customer changes
 Poor understanding of the project manager's job
 Wrong person assigned as project manager
 No integrated planning and control
 Organization's resources are overcommitted
 Unrealistic planning and scheduling
 No project cost accounting ability
 Conflicting project priorities
 Poorly organized project office

 External
 Unpredictable
 Unforeseen regulatory requirements
 Natural disasters
 Vandalism, sabotage or unpredicted side effects
 Predictable
 Market or operational risk
 Social
 Environmental
 Inflation
 Currency rate fluctuations
 Media
 Technical
 Technology changes
 Risks stemming from design process
 Legal
 Violating trade marks and licenses
 Sued for breach of contract
 Labour or workplace problem
 Litigation due to tort law

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  Legislation

Analysis The Risk Process

The Risk Analysis Process is essentially a quality problem solving process. Quality and
assessment tools are used to determine and prioritize risks for assessment and resolution.

The risk analysis process is as follows:

1. Identify the Risk

 This step is brainstorming. Reviewing the lists of possible risk sources as
well as the project team's experiences and knowledge, all potential risks
are identified.
 Using an assessment instrument, risks are then categorized and prioritized.
The number of risks identified usually exceeds the time capacity of the
project team to analyze and develop contingencies. The process of
prioritization helps them to manage those risks that have both a high
impact and a high probability of occurrence.

2. Assess the Risk

 Traditional problem solving often moves from problem identification to
problem solution. However, before trying to determine how best to
manage risks, the project team must identify the root causes of the
identified risks.
 The project team asks questions including:
 What would cause this risk?
 How will this risk impact the project?

3. Develop Responses to the Risk

 Now the project team is ready to begin the process of assessing possible
remedies to manage the risk or possibly, prevent the risk from occurring.
Questions the team will ask include:
 What can be done to reduce the likelihood of this risk?
 What can be done to manage the risk, should it occur?

4. Develop a Contingency Plan or Preventative Measures for the Risk

 The project team will convert into tasks, those ideas that were identified to
reduce or eliminate risk likelihood.

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 Those tasks identified to manage the risk, should it occur, are developed
into short contingency plans that can be put aside. Should the risk occur,
they can be brought forward and quickly put into action, thereby reducing
the need to manage the risk by crisis.

CHAPTER-II

COMPANY PROFILE

13
 RAMA WOOD CRAFT

COMPANY PROFILE: THE GROUP (SINCE 1996)

The Rama Group of companies is a leading member of the Indian domestic panel
industry. Since the Group's inception, we have always planned for the future with a
highly dedicated team and achieved our ambitious goals with the help of a hi-tech
infrastructure and result oriented after sales service. We have marketing offices all
over India.

Rama Wood Craft

Rama Wood Craft is an ISO 9001:2000 certified company that has stood by its
mission of serving society through industry. We are based in Satna, Madhya
Pradesh and produce different products, having a wide range consisting of different
grades of plywood, block boards, flush doors and particle board.

Ever since we started our business, we have always aimed to deliver matchless products
at market leading prices. Following this, we emphasized on recruiting a capable team of
procuring agents who are well versed with the changing market scenario as well as the
needs of our customers. Leveraging on their profound knowledge and experience, our
procuring agents help us to struck business deals with vendors that provide high grade
raw material, which are unparalleled in terms of quality and durability. With the proven

14
 track record of offering high quality products and long term commitment to prompt
customer service, we have captured a huge share in the market.

Fact Sheet

Legal Status of Firm

Year of Establishment
Sole Proprietorship
1997
(Individual)
Nature of Business Number of Employees
Manufacturer 501 to 1000 People
Turnover
Rs. 100 - 500 Crore ( or US$ 20 Mn - 100 Mn
Approx.)

Quality

We have ISO:9000 & Bis Certified, ARIA & CIRT Certified CIDCO & MHADA
approved product range. We are able to attain total satisfaction of valued customers by
supply them quality range of products that match to their requirements, perfectly. We
manufacture our entire range by using superior quality raw material sourced from reliable
vendors.

VISION & MISSION

Believing in integrity and hard work, Rama Ply sets its Vision as:

• To be a global player in Interior infrastructure Industry.

• To bring out products that worthy of world class.

• To create an organization where innovation takes the lead.

• To create a pool of talented individuals who take pride of being the leader.

• To continuously fuelling the spirit of bringing adorable products at affordable

prices.

• To take customers trust as a integral part of our growth.

15
Under the leadership of Naresh Goyal, this dynamic organization has the following
mission:

INFRASTRUCTURE

Important Machineries

• Auto loading and unloading system for press

• Imported wide belt sanding machine

• Domino Printing machine

• Imported auto controlled hydraulic rip saw machine

• Imported heavy duty surface planner machine

• Imported auto block block composer machine

- Pneumatic controlled choppers

• Veneers jointer machine

• Auto controlled motivated chain DD saw

• Vacuum impregnated treatment chamber

• 25 lac K. cal. Capacity VTB-25 boiler with electro thermal control system

• ETP plant for eco friendly nature of plant

• TMT machines of 5-tonne capacity

Rama Panels plant is spread in a huge area and it is equipped with modern
machineries like jumbo dryers, auto loading unloading press, ply treatment plant
and sufficient raw materials.

Company has in-house production of core veneer, having several peeling machines.
Logs are treated with anti termite borer chemical before peeling. Company is very
strict in choosing logs, they do not compromise in selection of logs because it is
base of a quality plywood.

16
Company has several fort lifters which help to deliver work faster and also
minimizes the labour.

Company manufactures its products by two way press system. They first press the
plywood in cold press and after that it goes for hot pressing.

Company has a unique system for the treatment of its product. After the final
production of plywood it passes through this treatment machine which empowered
the product against termite and borer.

Utmost care is taken during assembly of plywood and after pressing and trimming
it is calibrated with wide belt sanding machine. Product have a nice finishing and
stamping is done by computerized stamping machine.

CORPORATE CLIENTS

 Unitech
 Mahindra lifespace
 Reliance
 Jaypee
 Omaxe
 DLF

TEAM

Our team consists of extremely driven individuals who believe in

innovation and efficiency through a system. The Group is lead by our
M.D. Mr. Naresh Goyal, a highly spirited leader with a modern outlook.
The Rudrapur unit is headed by Mr. S. C. Maheshwari who is the
Executive Director of Rama Panels Private Limited. The successful
handling of the Group is reflected by its list of clients that includes
industry luminaries such as DLF, Shapooji Pallonji, L&T, Jaypee Group,
Sahara City Homes, DG Map, RIL and Gammon.

17
 CHAPTER-III

REVIEW OF LITERATURE

18
REVIEW OF LITERATURE:

Risk Management and Risk based Supervision in Banks has been the subject of study of
many Agencies and Researchers and Academicians. There is a treasure of literature
available on the subject.
A careful selection of relevant material was a formidable task before the Researcher.
Efforts have been made to scan the literature highly relevant to the Context.
The main sources of literature have been the Website of the Reserve Bank of India, the
website of the Basle Committee on Banking Supervision and the websites of several
major Banks both in India and abroad. The publications of Academicians engaged in the
Risk Management and Central Banking Supervision sphere also throws valuable insights
in to the area. The occasional Research papers published by Reserve Bank, the speeches
of the Governor and the Deputy Governors of the Reserve Bank of India, the Publications
of the Reserve Bank of India, the Indian Banks Association have proved quite relevant to
the study.

Crouhy, Gala, Marick(26) have summarised the core principles of Enterprise wide Risk
Management. As per the authors Risk Management culture should percolate from the
Board Level to the lowest level employee. Firms will be required to make significant
investment necessary to comply with the latest best practices in the new generation of
Risk Regulation and Management. Corporate Governance regulation with the advent of
Sarbanes-Oxley Act in US and several other legislations in various countries also provide
the framework for sound Risk Management structures. Hitherto, Enterprise wide Risk
Management existed only for name sake. Generally firms did not institute a truly
integrated set of Risk measures, methodologies or Risk Management Architecture. The
ensuing decades will usher in a new set of Risk Management tools encompassing all the
activities of a Corporation. The integrated Risk Management infrastructure would cover
areas like Corporate Compliance, Corporate Governance, Capital Management etc. Areas
like business risk, reputation risk and strategic risk also will be incorporated in the
overall Risk Architecture more formally. As always it will be the Banks and the Financial
Services firms which will lead the way in this evolutionary process. The compliance
requirements of Basel II and III accords will also oblige Banks and Financial institutions
to put in place robust Risk Management methodologies.
The authors felt that it is generally felt that Risk Management concerns largely with
activities within the firm. However, during the next decade Governments in different
countries would desire to have innovatively drawn Risk Management system for the
whole country. The authors draw reference to the suggestions of Nobel Laureate Robert
Merton who suggested that a country with exposure to a few concentrated industries
should be obliged to diversify its excessive exposures by arranging appropriate swaps

19
with other countries with similar problems. Risk Management offers many other
potential macro applications to improve the management of their social security measures
etc. They draw references to the spread of Risk Management Education worldwide.
Carl Felsenfeld (27) outlined the patterns of international Banking regulation and the
sources of governing law. He reviewed the present practices and evolving changes in the
field of control systems and regulatory environment. The book dealt a wide area of
regulatory aspects of Banking in the United States, regulation of international Banking,
international Bank services and international monetary exchange. The work attempted in
depth analysis of all aspects of Bank Regulation and Supervision.
Money Laundering has been of serious concern worldwide. Its risk has wide
ramifications. Money Laundering has lead to the fall of Banks like BCCI in the past. In
this context the book on Anti-Money Laundering: International Practice and Policies by
John Broome
Published by Sweet and Maxwell (August 2005) reviews the developments in the area of
Money Laundering. The author explains with reference to case studies the possible
effects of Money Laundering. The book gives a comprehensive account of the existing
rules and practices and suggests several improvements to make the control systems and
oversight more failsafe.
Hannan and Hanweck (28) felt that the insolvency for Banks become true when current
losses exhaust capital completely. It also occurs when the return on assets (ROA) is less
than the negative capital-asset ratio. The probability of insolvency is explained in terms
of an equation p, 1/(2(Z2 ). The help of Z-statistics is commonly employed by
Academicians in computing probabilities.
Daniele Nouy (29) elaborates the Basel Core Principles for effective Banking
Supervision, its innovativeness, content and the challenges of quality implementation.
Core Principles are a set of supervisory guidelines aimed at providing a general
framework for effective Banking supervision in all countries. They are innovative in the
way that they were developed by a mixed drafting group and they were comprehensive in
coverage, providing a checklist of the principal features of a well designed supervisory
system.
The core Principles specify preconditions for effective banking supervision characteristics
of an effective supervisory body, need for credit risk management and elaborates on
Principle 22 dealing with supervisory powers. Dearth of skilled human resources, poor
financial strength of supervisor and consequent inability to retain talented staff,
inadequate autonomy and the need for greater understanding of modern risk management
techniques are identified as the main difficulties in quality implementation. The critical
elements of infrastructure, legal framework that supports sound banking supervision and a
credit culture that supports lending practices are the essence of a strong banking system.
Widespread failures have occurred during a period of increased vulnerability that can be
traced back to some regime change induced by policy or by external conditions.
Patrick Honohan (30) explains the use of budgetary funds to help restructure a large
failed Bank/Banking system and the various consequences associated with it. The article
discusses how instruments can best be designed to restore Bank capital, liquidity and
incentives. It considers how recapitalisation can be modelled to ensure right incentives

20
for new operators/managers to operate in a prudent manner ensuring good subsequent
performance It discusses how Government’s budget and the interest of the tax payer can
be protected and suggest that monetary policy should respond to the recapitalisation
rather determine its design.
The author proposes the following four distinct policy tools to achieve four distinct goals-
injecting assets, adjusting capital claims on the Banks, rebalancing the govt’s own debt
management and managing monetary policy instruments to maintain stability. The author
also
assessed the effect of bank recapitalisation for budget and debt management and
implications for monetary policy and macro-economic environment in his article.
Jacques de Larosiere, former Managing Director of the International Monetary Fund(31)
discusses the implications of the new Prudential Framework. He explains at length how
the new Regulatory code could have some dangerous side effects. The increased capital
requirements as decided by the Basel Committee on Banking Supervision in September
2010 will affect the amount of own funds would affect the profitability of the Banks. The
consequences of such increased capital requirements would incentivise the Banks to
transfer certain operations that are heavily taxed in terms of capital requirements to
shadow Banking to avoid the scope of regulation. The risks of such a practice might
affect the financial stability. While the Central Banking authorities might contemplate
registration and supervision of such shadow banking entities like the hedge funds and
other pools, such a course might be more cumbersome than expected. The new regulation
would result in the Banks to reduce activities with rather poor margins. For example they
may reduce exposure to small and medium enterprises or increase credit costs or
concentrate on more profitable but higher risk activities. He is also critical of the
proposal of Basel to introduce an absolute leverage ratio that might push Banks to
concentrate their assets in riskier operations. The author feels that the banking model
which favours financial stability and
economic growth might become the victim of the new prudential framework, and force
Banks to search for assets with maximum returns despite the attendant risks.
William Allen of Cass Business School, City University London(32) strongly criticises
the Basel Committee on Banking Supervision announcement increasing the capital
requirements as part of Basel III. The aims of increasing the capital are two-fold. Firstly
the objective is to increase the amount of liquid assets held by Banks and reduce their
reliance on short term funding. It also aims at limiting the extent to which Banks can
achieve maturity transformation. This focus on liability management, as per him will
prove counter-productive, as has been proved historically by the recent financial crisis.
As a strategy to meet the new Capital Accord Banks will be forced to amass large
amounts of liquid assets, in addition to the amounts they will need to repay special
facilities provided by the Governments and Central Banks. The liquidity coverage ratio
envisaged in the Accord also will require Banks to hold 100% liquid asset coverage
against liquidity commitments, and this will seriously impair the profitability of the
Banks. The eligible liquid assets for this purpose will be predominantly Govt. Securities.
This might motivate Governments to rely on this cheaper credit and some Governments
may resort to abuse of this credit, thus creating a moral hazard. If a Government loses its

21
creditworthiness, this will become 0% for Basel II purposes thus putting the Banks to a
sudden jerk as the Securities
would become ineligible as liquid assets. The author goes on to explain the conflict of
interest of the members of the Basel Committee as some times these members are
influenced by the Governments and their recommendations might not be taken as
independent judgment.
Thus the author thinks that this regulation is seriously defective. He opines that this
serious lacuna could be removed by enlarging the opportunities for liquid assets to be
created out of the Bank’s claims on the private sector as well. As per him, Commercial
Bills could be considered to be eligible for this purpose as they are self liquidating
transactions. As commercial Bills are accepted by Banks, it is less likely that they will be
in default. The cardinal point in liquidity management to be remembered is that
Commercial Banks cannot aim at zero risk. In that case they would need to their assets in
currency and would have to charge their customers for accepting deposits. The solution is
not to aim thoughtlessly at excessive liquidity, but in putting in place Robust Risk
Management practices.

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 CHAPTER-IV

OBJECTIVES OF THE STUDY

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OBJECTIVES:

The objectives of the study are:-

 Covering different aspects of risk assessment

 Identifying keys for effective risk management

24
 CHAPTER-V

RESEARCH METHODOLOGY

25
 RESEARCH METHODOLOGY

RESEARCH
Research is a process in which the researcher wishes to find out the end result for
a given problem and thus the solution helps in future course of action. The research has
been defined as “A careful investigation or enquiry especially through search for new fact
in any branch of knowledge”.

RESEARCH METHODOLOGY

The procedure using, which researchers go about their work of describing,

explaining and predicting phenomena, is called Methodology. Methods compromise the
procedures used for generating, collecting, and evaluating data. Methods are the ways of
obtaining information useful for assessing explanation.
A. RESEARCH DESIGN

A research design is an arrangement of conditions for connections and analysis of

data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research design is a plan that specifies the sources and types
of information relevant to the research problem. It is a strategy specifying which
approach will be used for gathering and analyzing the data. In fact, it is the
conceptual structure with which research is conducted; it constitutes the blue print
for the collection, measurement and analysis of data. The plan is an outline to
research scheme on which the researcher id to work. The structure of the research is
a more specific outline or the scheme. The strategy shows how the research will be
carried out, specifying the method to be used in collecting data.
TYPES OF RESEARCH DESIGN
Research design is mainly of three types: -
1. Exploratory research
2. Descriptive research
3. Experimental research

26
Descriptive research
The type of research used in this project is descriptive in nature. Descriptive research is
essentially a fact finding related largely to the present, abstracting generations by cross
sectional study of the current situation .The descriptive methods are extensively used in
the physical and natural science, for instance when physics measures, biology classifies,
zoology dissects and geology studies the rock. But its use in social science is more
common, as in socio economic surveys and job and activity analysis

DESCRIPTIVE RESEARCH AIMS

 To portray the characteristics of a particular individual situation or group (with or
without specific initial hypothesis about the nature of this characteristics).

 To determine the frequency with which something occurs or with which it is

associated with something else ( usually , but not always ,with a specific initial
hypothesis).
The descriptive method has certain limitation; one is that the research may make
description itself an end itself. Research is essentially creative and demands the discovery
of facts on order to lead a solution of the problem. A second limitation is associated
whether the statistical techniques dominate. The desire to over emphasis central
tendencies and to fact in terms of Average, Correlation, Means and dispersion may not
always be either welcome. This limitation arises because statistics which is partly a
descriptive tool of analysis can aid but not always explain causal relation.

DESIGN OF DESCRIPTIVE STUDIES:

Descriptive studies aim at portraying accurately the characteristics of a particular
group or solution. One may undertake descriptive study about the work in the factory,
health and welfare. A descriptive study may be concerned with the right to strike, capital
punishment, prohibition etc:
A descriptive study involves the following steps:
1. Formulating the objectives of the study.
2. Defining the population and selecting the sample.

27
 3. Designing the method of data collection.
4. Analysis of the data.
5. Conclusion and recommendation for further improvement in the practices.
SAMPLING DESIGN
Sampling is used to collect primary data when the source of data is far too many to be
exhausting handled. Sampling is the integral part of data collection process. The
way of selecting a sample is known as sample design. It is the definite plan for
obtaining a sample from a given population. It may as well lay down the number of
items to be included in the sample i.e. the size of the sample.
Sample design is determined before data are collected.

Sources of data collection:

The data was collected using both primary sources and the secondary sources.

1. Primary sources: The researcher collected the primary data by means of structured
questionnaire along with personal interviews, since a few open ended questions
require clarification.

Questionnaire and Interview:

The data is collected from managers, supervisors with the help of questionnaire generated
for this purpose. The questionnaire consists of single parts.
The questionnaires have been thoroughly discussed with the respondent to clarify doubts,
if any, regarding what has been asked. It had taken the researcher nearly six weeks to
complete the survey work. The respondents have been required to give their answer by
putting tick mark across the multiple choice questions and in open ended questions the
respondents were asked to express their views in their own words. Almost all the
respondents have been contracted and interviewed personally at the time of filling up the
questionnaire. Then their replies have been received and further clarification and
supplementary information considered to be necessary have been secured.

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 2. Secondary Data:
The researcher has also collected the secondary data by means of the documentary
sources such as:
 Company records
 Registers files booklets
 Magazine
 Journals
 Booklets

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 CHAPTER-VI
DATA ANALYSIS & INTERPRETATION

DATA ANALYSIS & INTERPRETATION:

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 CHAPTER-VII
FINDINGS & SUGGESTIONS
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FINDINGS AND SUGGESTIONS

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SUGGESTIONS

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34
 CHAPTER-VIII
LIMITATIONS

LIMITATIONS

LIMITATIONS:

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36
 CHAPTER-IX

CONCLUSION

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CHAPTER-X
38
 REFERENCES

REFERENCES

BOOKS

Websites:-

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40
 CHAPTER-XI
ANNEXURE

QUESTIONNAIRE/ANNEXURE

41