A STUDY ON INCENTIVES AND WELFARE MEASURES

WITH REFERENCE TO THE KRISHNA DISTRICT MILK

PRODUCERS’ MUTUALLY AIDED CO-OPERATIVE UNION
LIMITED, VIJAYAWADA

A project report submitted to Jawaharlal Nehru Technological University Kakinada,

In partial fulfillment of the requirements for the award of the degree

of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
K.MADHURI
(ROLL NO 17HP1E0013)
Under the Esteemed Guidance of

Mrs. LAVANYA P.B,

M.B.A, MHRM, (Ph. D)

ASSISTANT PROFESSOR

DEPARTMENT OF BUSINESS ADMINISTRATION

ANDHRA LOYOLA INSTITUTE OF ENGINEERING AND TECHNOLOGY
(Approved by AICTE New Delhi, Affiliated to JNTUK, Kakinada)
VIJAYAWADA – 520008
2017-19
 CERTIFICATE
This is to certify that this project work entitled “ A STUDY ON
INCENTIVES AND WELFARE MEASURES WITH
REFERENCE TO THE KRISHNA DISTRICT MILK
PRODUCERS’ MUTUALLY AIDED CO-OPERATIVE UNION
LIMITED, VIJAYAWADA” is the bonafide Work done by K.MADHURI
in Partial fulfillment of the requirements for the award of the degree of Master of
Business Administration by JAWAHARLAL NEHRU TECHNOLOGICAL
UNIVERSITYKAKINADA, KAKINADA.

Project Guide Head of the Department

(P.B.LAVANYA) (Rev.Fr.K.Anil kumar)

EXTERNAL EXAMINER
 DECLARATION

I hereby declare that the project entitled “A STUDY ON

INCENTIVES AND WELFARE MEASURES”, With reference to The
Krishna District Milk Producers’ Mutually Aided Co-operative Union
Limited, Vijayawada submitted to “ANDHRA LOYOLA INSTITUTE OF
ENGINEERING & TECHNOLOGY”, Vijayawada in partial fulfillment of
the requirements for the award of the de gree “MASTER OF BUSINESS
ADMINISTRATION”.

The project is an original work done by me and to the best of my

knowledge this work is not submitted to any other college or university for
the award of any other degree, diploma or fellowship.

Date: K.MADHURI
Place:Vijayawada (17HP1E0013)
 ACKNOWLEDGEMENT
I take this opportunity to express my deepest and heart full
gratitude to Rev. Fr. FRANCIS XAVIER, SJ; Director Andhra Loyola
Institute of Engineering and Technology, Rev. Fr. K. Anil Kumar, SJ; HOD
& Assistant Director Rev. Fr. J. CHIRANJEEVI, SJ; Assistant Director
Andhra Loyola Institute of Engineering and Technology, Dr. O. MAHESH;
Principal Andhra Loyola Institute of Engineering and Technology for
providing me an opportunity to take up this project.
I also wish to thank internal guide Mrs. LAVANYA P B, Asst
Professor, Department of Business Administration, Andhra Loyola Institute
of Engineering and Technology, for her guidance, timely suggestions and for
her cooperation extended to me for the completion of this project work.
I express my deepest sense of gratitude to Rev. Fr. K. Anil Kumar;
Head of the department of Business Administration Andhra Loyola Institute
of Engineering and Technology, for his valuable encouragement and
cooperation throughout the completion of the project.
I do take this opportunity to thank all of my faculty members who gave
full cooperation and support for the successful completion of my project.
I have also made an extensive use of the Library of Andhra Loyola
Institute of Engineering and Technology, for which I am greatly indebted to
Mrs.k.SwathiKiran, Mrs.K.Mallika, Librarian and other staff members who are
very courteous to me and providing maximum assistance.
I express my deepest sense of gratitude to MRS.Nirmala,-Hr, The
Krishna District Milk Producers’ Mutually Aided Co-operative Union Limited,
and Vijayawada for according permission to do project in their organization and
continuous guidance.
K.MADHURI
Regd.No:17HP1E0013
 INDEX

CHAPTER PARTICULARS OF TABLE PAGE.NO

INTRODUCTION 1-8
1.1 Introduction 1-2
1.2 Need and importance of the study 3
Chapter – I 1.3 Scope of the study 4
1.4 Objectives of the study 5
1.5 Research Methodology 6-7
1.6 Limitations of the study 8
Chapter - II Theoretical Framework 9-22
Chapter - III Industry Profile 23-28
Chapter – IV Company Profile 29-46
Chapter - V Data Analysis and Interpretation 47-71
Chapter - VI Finding, Suggestions and Conclusion 72-75
Bibliography
Annexure
Questionnaire
 List of tables

Table no. Table Description Page no.

5.1 Geniuses in providing incentives 47
5.2 Appreciated By Incentives 48
5.3 Knowing the introducing of new incentives 49
5.4 Support and guidance of superiors 50
5.5 Satisfaction about incentives and welfare measures 51
5.6 Incentives received by employees 52
5.7 Incentives preferred by employees 53
5.8 Motivation level of employees 54
5.9 Satisfaction levels of employees about restrooms 55
5.10 Drinking water facilities 56
5.11 Medical facilities 57
5.12 Sick leaves to the employees 58
5.13 New technological training 59
5.14 Working conditions 60
5.15 Housing loans 61
5.16 Working conditions 62
5.17 Washroom facilities 63
5.18 Employees satisfaction on price list in canteen services 64
5.19 Company takes care of nightshifts 65
5.20 Transportation facilities 66
5.21 Cleanliness in the organization 67
5.22 Employees satisfaction on the incentives and welfare measures 68
5.23 Function hall facilities 69
5.24 Incentives based on working hours 70
5.25 Providing sufficient lights 71
 CHAPTER I
INTRODUCTION
 INTRODUCTION
1.1 Introduction
Human resource is an important corporate asset and the overall performance of
company depends on the way it is put to use. In order to realize company objectives, it is
essential to recruit people with requisite skills, qualification and experience. While doing so
we need to keep present and future requirements of company in mind. Successful recruitment
and selection methods include a thorough analysis of the job and the labor market conditions.
An incentive is the major aspect that motivates an individual to perform a job.

The study of incentive system is centralized to the study of all economic activities
(both in terms of individual decision-making, in terms of co-operation and competition).
Therefore, economic analysis of the difference among the societies (and between
organizations within a society) amounts to characterizing the differences in incentive
structures faced by individuals involved in these collective efforts. Incentives are given
mainly to drive productivity and contribute to organizational success. As such the design of
incentive system is a key to the management activity.
Employee incentives can be determined in many forms, but, ultimately, they are tools
managers usually use to encourage good work and employee retention. Find out about
incentives, and take a challenge to test yourself of your capabilities.
When a company wants to encourage productivity among its employees, one option available
is an employee incentive program. Giving a good amount of incentives describe a system of
appreciating success and effort in the workplace by initiating employees to earn prizes or
recognition.

Incentives are often used by firms to encourage their employees to work hard. The bonus
plans used vary widely, from complicated stock option offerings to simple employee of-the-
month awards. But how does incentive plans work? Within the theoretical framework of the
principle-agent problem, we can gauge the success of incentives by answering three
questions: Do incentives matter? How significant are they? What are the welfare gains to the
worker and the firm from using incentives? This last question is particularly important as it
captures both the benefits and costs to using incentives. While a particular bonus scheme may
increase worker productivity by a large amount, this gain is costly as it is the result of

1
workers exerting a higher level of effort. Only by measuring workers’ disutility from effort
and comparing it to the gains in productivity, will we have an accurate account of how well
incentives work.
DEFINITION:
“Human resource management is the planning, organizing, directing and
controlling of the procurement, development , compensation , integration , maintenance , and
reproduction of human resources to the end that individual, organizational and societal
objectives are accomplished.”
OBJECTIVES OF HUMAN RESOURCES MANAGEMENT
1. Understand nature of Human Resource Management
2. Know the differences Between Personnel Management and Human Resource Management
3. Understand Objectives of Human Resource Management
4. Know the Functions of Human Resource Management
5. Understand Importance of Human Resource Management
6. Understand Legacy of HRM
7. Highlight the future Challenges before the Managers
8. Understand New Role of Human Resource Management

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1.2 Need for the study:

1. The study aims at estimating satisfaction levels of employees in the organization

regarding incentive and welfare measures.

2. This study helps the management to understand the extent to which employees are
satisfied with the incentive and welfare measures.

3. This will also provide necessary steps to be taken for the improvement of the
incentive and welfare measures.

4. To find out whether welfare helps in providing good industrial relations.

5. To know the employees satisfaction towards welfare measures

3
1.3 Scope of the study
The present study attempts to find out the incentives and welfare measures of
employees work life at K.D.M.P.M.A.C.U Ltd by taking into consideration of various related
factors like:

A.)Subject scope:
The scope of incentive system and employee cannot be limited, since it differs
according to social customs and degree of industrialization in different countries and at
different times. In order to suit to the conditions of employees the incentives should be elastic
& flexible and also include all the essential perquisites and basic minimum amenities. The
scope of incentives includes sales commission, bonuses, increments etc. On the other hand,
scope of welfare measures includes medical facilities, drinking water facilities, canteens,
restrooms etc.
In this study, I studied about incentives and welfare system followed at
K.D.M.P.M.A.C.U Ltd, Vijayawada and I collected the feedback from different employees
by interacting with them. This study helps to know the internal feelings of employees
regarding the incentives and welfare system of the company.

B.) Geographical scope :-

The study findings are restricted to the Krishna district milk producers mutually
aided Co-operative union limited located in Vijayawada, Andhra Pradesh

4
1.4 Objectives of the study
The objectives of the study are:

 To study the incentives and welfare measures followed by the Krishna district milk
produces mutually aided co-operative union limited.


 To know the opinion of the employees regarding incentives and welfare system
within the firm.

 To analyze the impact of exiting incentives and welfare systems on the employees of
the company.

 To suggest the suitable measures of improvements of the incentives and welfare
system of the organization.

5
1.5 Research Methodology
Research methodology is a way to systematically which solve the research problem. It
may be understood as a science of studying the research is done scientifically. The selection
of research methods for the study has been defined by the objectives of the study. The time
constraint has also influenced the choice of survey techniques for data collection and
subsequent analysis.
The data proposed for the study was collected from the two
sources. Primary data
Primary data is the data that is collected to help, solve a problem or take advantage of
an opportunity on which a decision is pending. Survey research is the most important source
of primary data. The various types of surveys (personal, mail, computer and telephone)
A. Questionnaire
It is a formalized set of questions, which are logically and systematically arranged to
collect for information useful for the proposed study. The questionnaire in this study is
structured containing a limited number of questions which are easy and clear to understand.
The layout of this questionnaire is framed in such a way that confusing and recording errors
are minimized.
B. Personal interview
It is the face to face systematic conversation between the interviewer and respondent
to elicit information. Bias is less and there is increased accuracy and information can be
gathered easily.
Secondary data
Secondary data is any information that was collected by someone other than the
person, company, or party analyzing or using the data. This contrasts with primary data,
which is data that is collected by the person conducting the investigation or research.
This collection of secondary data helps to save me the time as there is a lot of
quantitative data that might fall into a dense variety of categories and this can be used by
many various companies in different industries. Because of these collection methods the
information, which would be the same or consistent among all of these parties, can be more
efficiently used to analyze and reach conclusions.
Data has been collected from the secondary sources from company records , website and
through magazines of the company.

6
Sample design
Sampling method is the process or way in which the sampling will been done. As no
project or research can be done taken into consideration the whole of population or universe,
the concept of sampling method is used. As per the concept of sampling, only some sampling
is taken from the universe in order to find out the result. Random method is taken as the
sampling method and the percentage method is used in the sampling design.
Sample size
The researcher interviewed 80 respondents, representing all cadres and collected their
opinion.
Data Analysis
This is the process which helps to eliminate the unnecessary data and to collect
relevant information which helps in problem solving and to overcome the problem of an
enterprise or an organization.
Statistical tools applied
The statistical tool in the study that I used in my study is percentage analysis.
Percentage analysis
Percentage refers to a kind of ratio. Series of data is being compared using this
percentage analysis.
Percentage of respondents = (No. of respondents/Total respondents)*100

Graphical representation
It refers to an employee’s quality of work is assessed in a graphic scale indicating
different degree of a particular trait. Factors that consider both personal as well as On the job
performance of the employees. For example a quality such as job knowledge which can be
evaluated on the basis of average, above average, outstanding or unsatisfactory.

7
1.6 Limitations of the study

1. The study under consideration may not reflect the whole population.

2. The response taken from the employee and staff may be sometimes biased, as they
fear their superiors.

3. Survey and study has been carried out in a span of only one and half months due to
time constraint.

4. The suggestions and the opinions are not universal in nature.

8
 CHAPTER II
THEORITICAL FRAMEWORK
 THEORICTICAL FRAMEWORK
Introduction to incentive system
Incentives are considered one of the most important factors that encourage workers
to put forth great efforts and work more efficiently. It is because incentive system directs
workers capabilities into more efficiency in their work in an attempt to achieve the
institution's goals. In addition, the absence of the suitable incentives may negatively affect
the hardworking employee's performance; it may also weaken their productivity at work
which decreases the chances of attaining the promising goals of the institution.
In other words, anything that can attract an employee’s attention and motivate them
to work can be called as incentive. An incentive system aims at improving the overall
performance of an organization. Incentives can be classified as direct and indirect
compensation. They can be prepared as individual plans, group plans and organizational
plans. All these plans are prepared by the HR manager of a company. Effective incentive
system brings effective performance among the employees in the organization.
Meaning of Incentives and Incentive System:-
The term incentives mean something which encourages a person to do something.
Or the “extra financial reward/motivation”. It is the performance link reward to
improve motivation & productivity of the employees. It includes all that provide extra pay
for the extra performance in addition to regular salaries for the job such as bonuses, merit
pay, commission for sales people.
An incentive system is a system in which incentive policies are prepared by the HR
manager of a company to motivate employee’s performance in order to achieve
organizational goals. These policies are prepared at individual level, group level and
organizational level. It may be in financial term or non financial term or both.

Definitions
1. According to Milton L. Rock, incentives are defined as ‘variable rewards granted
according to variations in the achievement of specific results’.

9
2.According to K. N. Subramanian, ‘incentive is system of payment emphasizing the
point of motivation, that is, the imparting of incentives to workers for higher production
and productivity’.

3.The National Commission of Labor defines incentive as follows: ‘wage incentives are
extra financial motivation. They are designed to stimulate human effort by rewarding the
person, over and above the time rated remuneration, for improvements in the present and
targeted results’.

Typology of Incentives:-
There are two types of incentives, Intrinsic and Extrinsic incentives. It is important to
understand that we are not all the same; thus effectively motivating your employees
requires that you gain an understanding of the different types of incentives. Such an
understanding will enable you to better categorize your team members and apply the
appropriate type of incentives. You will find each member different and each member's
motivational needs will be varied as well. Some people respond best to intrinsic which
means "from within" and will meet any obligation of an area of their passion. Quite the
reverse, others will respond better to extrinsic incentives which, in their world, provide that
difficult tasks can be dealt with provided there is a reward upon completion of that task.
Become an expert in determining which type will work best with which team members.
Intrinsic incentives:-
An intrinsic incentive means that the individual's motivational stimuli are coming from
within. The individual has the desire to perform a specific task, because its results are in
accordance with his belief system or fulfills a desire and therefore importance is attached
to it.

Our deep-rooted desires have the highest motivational power. Below are some examples:
Acceptance: We all need to feel that we, as well as our decisions, are accepted by our
co- workers.
Curiosity: We all have the desire to be in the know.
Honor: We all need to respect the rules and to be ethical.
Independence: We all need to feel we are unique.

10
 Order: We all need to be organized.
Power: We all have the desire to be able to have influence.
Social contact: We all need to have some social interactions.
Social Status: We all have the desire to feel important.

Extrinsic incentives:-
Extrinsic motivation means that the individual's motivational stimuli are coming from
outside. In other words, our desires to perform a task are controlled by an outside source.
Note that even though the stimuli are coming from outside, the result of performing the
task will still be rewarding for the individual performing the task.
Extrinsic motivation is external in nature. The most well-known and the most debated
motivation is money. Below are some other examples:
o Employee of the month award

o Benefit package

o Bonuses

o Organized activities

Advantages of a Incentive Plans:-

To understand why incentives can be so powerful, just look at B.F. Skinner’s research
on operant conditioning. To put it very simply, behavior that gets rewarded gets repeated.
It would be nice if everyone gave it their all every day, but it’s a fact of life that people
work harder – and smarter – when they know their increased efforts will have a direct
impact on their wallets. Other advantages include:

1.Healthy competition: Competitiveness is part of human nature. You can see that in even
the very youngest children, with their less than humble bragging. However, this drive
toward competition never stops, which is evident in the huge salaries paid to professional
athletes. Employee incentives simply take advantage of the human desire to “win.”

11
2. Clearly defined goals: Sticking with the professional sports analogy, athletes know
what their goals are. They never have to wonder what their boss really wants them to do.
Incentive programs lend a similar clarity to work objectives, and people are much more
likely to achieve a certain goal when they know exactly what’s expected.
3. Increased employee retention: Gretchen Rubin, author of The Happiness Project, once
wrote: “Happiness is affected by [employees’] sense of control over their lives.” Incentive
programs give employees a sense of control over their incomes. When they work harder
and smarter, they see better results.
4. Reduction of idle time: - Since the payment of wages is linked with efficiency, the idle
time costs are reduced to the minimum.
5. Benefit to consumers:- Reduction of cost of production per unit is passed on to the
consumers by reducing the selling price.

Limitations of a Incentive Plans:-

Poor customer service: Sales-based incentives can motivate employees to sell customers
products, and services they don’t need. For example, a mechanic who tells a customer they
need a complete engine rebuild when all they really need is a battery charge.
1. Built-in limitations: Incentives work best with repetitive tasks, and lose effectiveness
quickly when the required cognitive skills increase. Incentives might encourage
production-line workers to increase throughput, for example, but they’re more likely to
produce stress among IT developers, engineers, etc. Focusing on productivity can
negatively influence quality.

2. Resentment: Incentives that are seen as unfair can lead to resentment, and undermine
teamwork. Employees may resent coworkers who achieve goals with less effort (and fewer
hours). When it comes to team-based incentives, employees may resent coworkers who are
seen as doing less than their fair share. Incentives can also motivate employees to
undermine each other’s efforts rather than work as a group to achieve company goals.

3. Manipulation: There are many different metrics companies can use to measure
“success”: sales, revenue, profit margin, ROI, etc. The metric that has the most impact on
incentive pay will be the metric that gets the most attention – and that may or may not be

12
in the best interest of the company. If sales are rewarded, employees may cut profit
margins to drive sales.

4. Difficulty to fix standard time: - Fixation of standard time for implementation of

incentive plans poses difficulty, particularly if the workers slow down deliberately while
under observation to get set a higher standard time.

Incentive System Followed in Vijaya Dairy:-

a.)History Lesson:-
The Vijaya dairy providing history lessons about their company to their employees from
where they start and where they are today. It helps in motivating employee’s performance
in order to achieve some more standards in the work place.
b.)Name the room:-
The company providing name to their employee’ office, lounge, conference room and
other rooms in their organization. Naming the office is nothing but providing designation
to their employees.
c.)Magazine:-
The company providing magazines about their operations and excellence of their
employee’s performance with an award like employee of the year, best employee award
etc.It brings competition among employees to work well for achieving company awards in
the organization.
d.)Performance hours:-Whenever an employee consistently perform well, then the
company will give them “performance hours “tokens they can redeem to take a longer
lunch time or use for personal reasons.
e.)Seminars:-
The company conducts seminars because seminars are a great way to absorb a large
amount of information, meet people and expand skills. This is an employee reward that
offers major benefits to the organization as well as employees gain valuable skills that can
be applied on the job.
f.)Separate group and individual incentives:-
While group incentives help improve teamwork, individual incentives are more
effective, as employees like to be able to control their own destiny. However, the company

13
is offering both are beneficial, but they also offered as separate programs. In a sales
environment, for example, this program could involve a reward for the individual with the
most sales of a certain product, as well as a team outing for the group with the highest
overall results. Individuals will be encouraged to participate and win the unique prize, but
they will also want to be an active and vital part of their team.
g.)Production-based bonuses:-
The ability to earn additional money on top of salary and raises is an incentive that most
would love to have by the employees. One effective way that the company is used to set up
a bonus program is to allow employees to measure their progress on a daily, weekly or
monthly basis in order to continue improving performance. Individuals will measure their
success against the company as a whole, and amount for the bonus is based on their
percentile rank in the company. This is also a great way to encourage open discussion
about improvement and growth for those that earn the bonus and those that don’t.
h.)Profits -based Bonuses:-
Based on the company profits, the Company provides bonuses to their employees. Some
bonuses are paid in terms of cash and some are in terms of stock. They paid these bonuses
along with their salary at the end of the month.
i.)Hours worked incentives:-
In some cases the company will provide extra work to their employees in order to
increase production then employees need to work some more extra time in a day. Working
hours are calculated by the company for providing bonuses for their employee’s extra time
spent in the organization.
j.)Other incentives:-
The company also providing other incentives such as housing, first aid kits, fire
extinguishers, gift cards, personal leaves, meals and their company products like milk
beverages etc.

Welfare Measures at Vijaya Dairy

Introduction to Welfare Measures:-
Employee Welfare is an important facet of employees relations, the extra dimension,
giving satisfaction to the employees in a way which evens a good salary cannot. The
employees in the company cannot cope with the pace of modern life with minimum

14
sustenance amenities. After employees have been hired, trained and remunerated, they
need to be retained and maintained to serve the organization better. Welfare facilities are
designed to take care of the wellbeing of the employees, they do not generally result in any
monetary benefit to the employees. No rare these facilities provided by employers alone.
Governmental and non-governmental agencies and trade unions too, contribute towards
employee welfare.
Employee welfare is a comprehensive term including various services, benefits and
facilities offered to employees by the employer. Through such generous fringe benefits the
employer makes the life worth living for employees. The welfare amenities are extended in
addition to normal salaries and other economic rewards available to employees as per the
legal provisions. Welfare measures may also be provided by the government, trade unions
and non-government agencies in addition to the employer. The basic purpose of
employeewelfare is to enrich the life of the employees and keep them happy and
contended.

Meaning of Welfare System:-

The term employee welfare system is the system in which policies are prepared by the HR
manager in a company for provision of a safety net of minimal level of well-being and
social support for all the employees in the organization. In most developed countries
welfare is largely provided by the government, and to a lesser extent, charities, informal
social groups, religious groups, and inter-governmental organization. In other words,
employee welfare means “the efforts to make life worth living for workmen”.

Definition:-
According to Todd “employee welfare means anything done for the comfort and
improvement, intellectual or social, of the employees over and above the wages paid which
is not a necessity of the industry”.
Employee’s welfare refers to taking care of the well-being of employees by employers,
trade unions and governmental and non governmental agencies. Recognizing the unique
place of the employee in the society and doing good for him/her, retaining and motivating
employees, minimizing social evils, and building up the local reputation of the company
are the argument in favor of employee welfare.

15
 Typology of Welfare Measures:-
Organizations provide welfare facilities to their employees to keep their motivation
levels high. The employee welfare measures can be classified into two categories viz.
statutory and non-statutory welfare measures. The statutory measures are those measures
that are compulsory to provide by an organization as compliance to the laws governing
employee health and safety. These include provisions provided in industrial acts like
Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1 962.
The non statutory measures differ from organization to organization and from industry to
industry.

Statutory Welfare measures:-

The statutory welfare measures include the following provisions:
1.Drinking Water:-At all the working places safe hygienic drinking water should be
provided.
2.Facilities for sitting:-In every organization, especially factories, suitable seating
arrangements are to be provided.
3.First aid appliances:-First aid appliances are to be provided and should be readily
assessable so that in case of any minor accident initial medication can be provided to the
needed employee.
4.Latrines and Urinals:-A sufficient number of latrines and urinals are to be provided in
the office and factory premises and are also to be maintained in a neat and clean condition.
5.Canteen facilities:-Cafeteria or canteens are to be provided by the employer so as to
provide hygienic and nutritious food to the employees.
6.Spittoons:-In every work place, such as ware houses, store places, in the dock area and
office premises spittoons are to be provided in convenient places and same are to be
maintained in a hygienic condition.
7.Lighting:-Proper and sufficient lights are to be provided for employees so that they can
work safely during the night shifts.
8.Washing places:-Adequate washing places such as bathrooms, wash basins with tap and
tap on the stand pipe are provided in the port area in the vicinity of the work places.

16
9.Changing rooms:-Adequate changing rooms are to be provided for workers to change
their cloth in the factory area and office premises. Adequate lockers are also provided to
the workers to keep their clothes and belongings.
10.Rest rooms:-Adequate numbers of restrooms are provided to the workers with
provisions of water supply, wash basins, toilets, bathrooms, etc.

Non Statutory Schemes:-

Many non statutory welfare schemes may include the following schemes:
I. Personal Health Care (Regular medical check-ups):-Some of the companies provide
the facility for extensive health check-up
2.Flexi-time:-The main objective of the flextime policy lS to provide opportunity to
employees to work with flexible working schedules. Flexible work schedules are initiated
by employees and approved by management to meet business commitments while
supporting employee personal life needs
3.Employee Assistance Programs:-Various assistant programs are arranged like external
counseling service so that employees or members of their immediate family can get
counseling on various matters.
4.Harassment Policy:-To protect an employee from harassments of any kind, guidelines
are provided for proper action and also for protecting the aggrieved employee.
5.Maternity & Adoption leave:-Employees can avail maternity or adoption leaves.
Paternity leave policies have also been introduced by various companies..
6.Medi-claim Insurance Scheme:-This insurance scheme provides adequate insurance
coverage of employees for expenses related to hospitalization due to illness, disease or
injury or pregnancy.
7.Employee Referral Scheme:-In several companies employee referral scheme is
implemented to encourage employees to refer friends and relatives for employment in the
organization.
8.Transportation:-The Committee on Labor Welfare, 1969, recommended the provision
of transport facilities to workers so that they can reach the workplace punctually and
comfortably. Most employers have, however, recognized the workers' need for transport

17
services and therefore responded. MAHAGENCO also had provided the facility to its
employee at Parli TPS (New) for the hassle free to & fro transport.
9. Canteen, restrooms and lunchroom:-Canteens established inside factories generally
offer food at subsidized rates. In modem organizations, food courts offering a variety of
continental and inter continental cuisine have become quite popular in recent times.
Washing facilities, medical aid, leave travel concessions: Most factories have first-aid
facilities to take care of minor injuries. Reimbursement of medical expenses actually
incurred is also increasingly favored nowadays. As we can see from the results of survey,
most of the employees are not happy with the kind of canteens provided at the power
stations.
10. Consumer cooperative stores:-The Indian Labor Conference in 1963 recommended
the setting up of consumer cooperative stores in all industrial establishments including
plantations and mines employing 300 or more workers. The employer is expected to
extend help in the form of share capital, working capital, loans at concessive rates etc. The
Industrial Truce Resolution, 1962 aimed at keeping prices of essential items low by
opening a sufficient number of fair price shops for workers.

Advantages of Welfare Measures:-

1.High efficiency:-The employee welfare schemes act as a morale booster. When the
employees get an appreciation for what they do, it helps in increasing the work efficiency
of the employees. When the work is done lauded by the organization, it proves lucrative to
both the company as well as the employees. If the work done by the employees is not
appreciated, the output might not come as expected. So, it is essential to have employee
welfare schemes.

2.Boost the morale of employees:-The employees work only when they are motivated to
work. If the company wishes to get 100% output, then it is the company which has to put
in little efforts to encourage the employees. No one else would deliver the expected results.
So, in order to boost the morale of the employees, it is essential to offer employee welfare
measures.
3.To build a competitive edge:-Competition is must if the company wants employees to
work well. In order to form a competitive environment in the office, it must provide

18
 employees with opportunities. The competitive edge in the work environment can only
help in getting the required work from the employees. So, if the healthy work environment
or the healthy competition is required within the organization, it is vital to provide
employees with welfare schemes.

4.To get timely result:-If the companies want the employees to give the result on time or
deliver the work in time, there needs to be some extra effort by the company so as to
encourage the employees to give timely work. This can be done only when the employees
are encouraged apart from praising their work and given some welfare schemes. If the
extra work is expected from the employees, they should also be given extra benefits by the
company. Only then the timely results could be expected by the company.

5.Improved industrial relations:-The employees when benefited, results in good

industrial relations too. Not just the work output is good, but also the amiable relations are
built by the employees when encouraged through various schemes. So, various employee
schemes are essential to make employees work in a better manner in the company.

6.Mental and moral health is also improved:-The employees when given different
facilities at work; it improves mental health as well as helping in becoming a good citizen.
So, it helps in overall development of the employee. Employee development is equivalent
to the development of the company. So, if the companies want themselves to grow, they
need to help employees in their growth.

7.Social benefits:-The employees also get various social benefits which are advantageous to
the company also. The social benefits increase the productivity, production as well as the
work efficiency of the employees. The good work by the employees also helps in increasing
of the remuneration. Finally, this helps in increasing the standard of the employees which is
appreciated and accepted by everyone, indeed

19
.
8.Invites more employees:-The employee welfare schemes invite more employees
within an organization. This is one of the good ways of recruiting employees. If your
company has less staff then these schemes are enough to invite more employees within
the company. More the employees more will be the vacancies filled and the work will
be done in proper order. Ultimately, it will benefit the company only. The work will be
executed in the proper order so, for this reason it is essential to initiate various
employee welfare activities schemes in the company.

Limitations of Welfare Measures:-

As every coin has two sides, similarly the employee welfare too has its advantages
and disadvantages. Some of the disadvantages of employee welfare are as follows:

1.The welfare schemes become the driving force to work:-Neither the money nor the
schemes should be the driving force to work for the employees. The employees must be
motivated through the work done by others. A competitive environment should be the
driving force for the employees to work. Only then, the expected work can be delivered
by the employees.
2.The Financial burden for the company:-The Company gets burdened financially as
more the employees, more the budget will be required by the company to equally
distribute the schemes among the employees working within an organization. So, in
order to equally distribute the schemes among the employees, it is essential for the
company to have proper a financial budget in order to provide employees with the
required schemes.
3.To maintain a competitive edge in the market:-In order to remain in the market
and to keep oneself in the edge, it is essential to keep good employee welfare policy so
as to attract maximum skilled employees within the organization. Every company
needs skill1ed workers to work so that they get better output. In order to do the same,
the company will have to have an edge over the welfare schemes too.

20
4.Outshines all the old schemes of the company:-All the other schemes of the
companies get outdated. Other here means the older schemes, does not exist anywhere.
When the other competitive companies give the employees great and newly developed
schemes, the present schemes seems a big failure due to which the other companies has
to get the similar beneficial schemes. So, this kind of burden also kills the companies at
large.
5.Fear of employees leaving the organization:-If the company fails to provide the
employees with great schemes, the employees may choose to leave the organization.
So, to prevent the employees running out, the company needs to bring novel schemes
and services for the employees.
6.Increases the budget of the company:-The employee welfare schemes increase the
budget of the company which affects the company financially. The inclusion of the new
schemes can upset the whole budget of the company which ultimately affects the whole
working of the company. This is because, it is not necessary that the company will
always having extra finances to cope up emergencies. So, the employee welfare
facilities are a great disadvantage for the employees themselves.
7.Employees may even leave the organization:-When the competitive organizations
give better welfare schemes, the employees may choose to reach the organization
giving better opportunities. This way the employees may even leave the company and
move to the next. This also forms one of the disadvantages of the company as well as
the employees on the whole. So, for this purpose, the company will have to keep great
welfare schemes for the employees.
These are some of the disadvantages of having employee welfare objectives. The schemes,
however, helps the employees more than the companies. This is because whatever

is the scheme bought by the company, has to be funded by the company itself. So, this is the
reason why the employee welfare schemes are a great disadvantage too.

21
 Welfare Measures Followed In Vijaya Dairy:-
The following are the welfare measures provided by the company to their
employees: a.)Drinking Water:-in vijaya dairy, the company is providing safe
hygienic drinking water at all the working places in the organization.
b.)Facilities for sitting:-In the organization, especially factories, suitable seating
arrangements are to be provided by the company
c.)First aid appliances: - First aid appliances are to be provided by the company and it
can be readily assessable so that in case of any minor accident initial medication can be
provided to the needed employee.
d.)Latrines and Urinals:-A sufficient number of latrines and urinals are to be
provided in the office and milk factory premises and are also to be maintained in a neat
and clean condition.
e.)Canteen facilities:-Cafeteria or canteens are to be provided by the employer of the
vijaya dairy so as to provide hygienic and nutritious food to their employees.
f.)Spittoons:-In every work place, such as ware houses, store places, in the dock area
and office premises spittoons are to be provided by the company in convenient places
and same are to be maintained in a hygienic condition.
g.)Lighting:-Proper and sufficient lights are to be provided for their employees so that
they can work safely during the night shifts in the factory.
h.)Washing places:-Adequate washing places such as bathrooms, wash basins with tap
and tap on the stand pipe are provided in the port area in the vicinity of the work places.
Especially in the milk factory.
i.)Changing rooms:-Adequate changing rooms are to be provided for workers to
change their cloth in the factory area and office premises. Adequate lockers are also
provided to the workers to keep their clothes and belongings.
j.)Rest rooms:-The Company is providing Adequate numbers of restrooms to their
workers with provisions of water supply, wash basins, toilets, etc.
k.)Maternity & Adoption Leave: - Employees can avail maternity or adoption leaves.
Paternity leave policies have also been introduced by the company
l.)Medi-claim Insurance Scheme:-The Company is providing insurance scheme for
adequate insurance coverage of employees for expenses related to hospitalization due
to illness, disease or injury or pregnancy.

22
 CHAPTER III
INDUSTRY PROFILE
 INDUSTRY PROFILE

DAIRY INDUSTRY IN INDIA:

India has the world’s largest cattle and Buffalo populations adopted to tropical climate and
poor nutrition and environment. According to Livestock census 1982, India’s bovine
population was 191 million cattle and 69 million buffaloes. Milk production gives
employment to 70 million dairy farmers. In terms of total production India ranks 2 nd to USA
with a production of 71 million tons in 1997-1998. The production of various products in
2002, 428 (000 metric tons)
APDDCF was formed in Oct 1981 to implement operation flood-II program through
involvement of producers in organizing milk production procurement processing and it will
low due to rapid population growth. It was 178 gram/day in 1990. There was only an increase
of 50 grams per day from 1980-90. It is expected that milk availability will reach 213
gram/capita/day by 200 A.D as against 300 scientists. Today India ranks first in Milk
production in the world.
DAIRY DEVELOPMENT IN INDIA:
India has the world’s largest cattle buffalo population adapted to tropical
climate and poor nutrition and environment. ACC to livestock census 1982, India’s bovine
population was 191 million and 69 million buffaloes. The forecast for 2000 A.D is 204
million cattle and 78 buffaloes.
Dairy development in India received a fillip after independence when industrialization
and awakening warranted the establishment of organized milk collection , processing
distribution of milk to cats the needs of the expanded urban population. Planned development
of during was 1st taken up in the 1st 5 year plan (1951-56). The main deterrent factors far
milk production was in adequate of suitable marketing structure in the rural areas . Milk was
being marketed in the form of ghee which did not provide sufficient income to the farmers to
take up the daring. In most of the state’s largest dairy areas produces and Urban milk
treatment units. Some of the dairy units also established a chain of trill collection and chilling
centre’s in the rural areas to aboard necessary facilities for handling milk in large volume and
for long distance transport without spoilage. These processing centers have had a stimulating
effect on the dairy industry in the country.

23
 India has world’s largest cattle population however, per capital cattle population in
very less compared to developed nations. Dairy farming is regarding nations. Dairy farming
is regarding as a subsidiary Now it has become an important agro business.
First dairy farm is established by military at Allahabad in 1989, British troops got
milk supplies from that farm. It also organized cross breeding with European cattle breeds.
India is a country of village where farmers have small land holdings. Money lenders
borrow money at very high interest rates. The exploited the farmers who were poor.
As a result as large no of farmers in Pune and Ahmednagar open hostilities against
moneylenders in 1879. Subsequently land improvement act 1883, and agriculture act 1884
were passed to advanced loans at reasonable rates of interest to farmers. The Government
realized that the cooperative credit society act was essential. But enacted had following short
comings.
1) Only credit societies are registered
2) Classification of the societies into urban and rural was scientific.
3) It was selected regarding distribution of profit thus another act named the cooperative
societies Act1912 was enacted. The act tool care of credit under the supervision of
central bank.
The cooperative unions remained control subjects. In the year 1919 cooperative
societies become a state subject and fell within the scope of provision legislative. Each
provinces stated formulations of their requirements. After intendance the cooperative
movement made rapid studies and government adopted the policy of promoting of
cooperative movement far establishing economic welfare in the country. The cooperative
sectors was given an implement place in the new economy and acted as a balance between
private sector and public sector. It becomes pace with the progress of movement and there
should be uniformity of cooperative society Act 1956 was amended 19 times to suit the
changing circumstances. Hence the government of India appointed a committee in 1956 to
review cooperative acts in different states and prepared a model bill.
AP DAIRY DEVELOPMENT COOPERATIVE FEDERATION (APDDCF)
APDDCF was formed in act 1981 to implement operation flood-II program through
active involvement of produces in organizing milk production, procurement processing and
marketing on ‘three tier’ cooperative structure as per the national policy of India.
The three tire system consists of primary dairy is operative societies at village level
cooperative union at district level and federation at the state level. Planning investment in
operation flood-II

24
 Plan – 34.43Crores
Plan – 247.53Crores
Plan – 187.00Crores
Plan – 349.17Crores
Plan – 1166.00Crores
Plan – 600.00Crores
Plan – 1700.00Crores

MAJOR DAIRY PRODUCTS MANUFACTURES IN INDIA AND THEIR BRANDS

Company Brands Major products

Nestle Milk-maid ceralac Milo, Sweetened condensed milk

Lactogen, and Everyday. power, Malted food, Milk
powder, and dairy whitener,
Ghee and Ice cream.
Mild foods Ltd Milk food Malted milk food Ghee
Butter and Other Body milk
foods
Smitukline Beeches ltd Horlicks, Maltova,Viva Butter Ghee and other milk
products.
Gujarat cooperative market Amul Infant milk food malted
milk food
Cadbury Bourn vita Flavored milk, Milk
powder, Biscuits and
chocolates.
Britannia Milk man Infant milk food, malted
milk food.
Heinz Ltd Farex, complain Infant milk food, malted
milk food, Ghee, cheese.

25
ORGANIZATION OF A DAIRY FARM:
There are many activities involved in successful running of a dairy farm. Many one
of these activities is as important as any other for profitable dairy farming coordination of all
these activities in a dairy farm is known as organization of the dairy farm.
MANAGEMENT OF ANIMALS:
These successes of dairy depend upon the good health and well being of the cow and
buffaloes maintained in the dairy and their production. The various aspects to be considered
are: Housing. Feeding, Breeding and Disease control.
MANAGEMENT OF LABOR:
Labor is becoming costly and scarce and hence organization is becoming more
difficult. The farm should be so planned that it shall be possible to completely manage with
family labor. Hired labor should be minimum and used only for such operations as sowing,
harvesting etc., permanent labor if employed should be minimum but provided with all
facilities like housing and should well paid and looked after so that they will work
wholeheartedly.
Management of Equipment Small dairies may have less equipment and machinery
like chilling plant pasteurizing plant, tractor trailer harvester, and such other agricultural
equipments. These have to be kept in good working condition so that all dairy and
agricultural operation will go on normally so that all dairy and agricultural operations will go
on normally and milk may be transported in good condition for marketing.
MANAGEMENT OF MILK AND MILK PRODUCTS:
The profitability of a dairy depends upon the farm in which the milk is disposed of
Fluid milk money than milk products. Selling in cities fetches more money than in smaller
towns. Milk transported to longer distances may cost more on transport. There is a chance of
spoilage if more time is allowed between milking and sale unless milk is pasteurized and
preserved properly.

RECORD KEEPING:
Record keeping is important in a dairy which will enable us to know that actual position of
the dairy in all aspects to enable us to plan properly record may pertain to all aspects of
dairying viz, feeding breeding and management. It will enable the farmer to breed the cows
inn time to give balanced rations according to mild yield to know the actual production of
milk of individual cows , to know profit and loss in the farm etc.,

26
OPPORTUNITIES IN DAIRY FARMING:
Dairy is one of the important side businesses of ninety percent of the agriculturists of
our villages. A cattle rearing are an age old practice and almost all the land holding people
keep one agriculture operations.
Dairy enterprise is an efficient and labor intensive business, so that the shale family of
the farmer is pressed into service and they are able to produce some productive response from
the limited holding, utilizing agricultural by productive and wastes that will go to waste
otherwise. Both males and females and old and young can be usefully Employed for different
types of work in a dairy farm.
The products of dairy industry like skim milk, when etc., can be fed to their livestock.
The skim milk is of high value and can be used for poultry and swim with more profits.
Farmers who sell milk fat in the form of batten and ghee produce skim milk. This can be
effectively used in feeding pigs and poultry since skim milk is an excellent source of protein,
minerals and vitamins. The dairy industry can also provide various job opportunities to the
millions of the rural and urban population apart from providing the various opportunities.
LEGAL STANDARDS:
In India the various standards for dairy industry are formulated by four agencies.
 
 The Indian standards institution (ISI)
 
 Central committee for food standards (CCFS)
 
 Directorate of marketing and inspection (AGMARK)
 
Defenses services

These four agencies have their different spears of activities, although all try to work
in closest collaboration. The standards by ISI are to be adopted on voluntary basis. The CCFS
is statutory body which not only lays down standards for food products including dairy
products but also enforces the same. In consultation of CCFS the Government of India.,
Ministry of Health frames prevention of food adulteration rule under the prevention of food
adulteration Act. The current set of rules are known as prevention of food adulteration rules
1976 under AGMARK scheme provision exists for grading ghee only amongst the dairy
products.
Standardized milk is milk who’s fat and SNF have been adjusted to a certain
predetermined level under PFA rules (1976).The standardized milk for liquid consumption
should contains a minimum of 4.5 and 8.5 SNF through the country. The standardization can
be done by partly skimming the fat in the milk with cream separator or by admixture with
fresh reconstituted skim mill in proper proportions.

27
DAIRYING IN ANDHRA PRADESH
The program of dairy was initially started with the commendable help of the United
Nations international children’s emergency fund (UNICEF), food and agriculture Org (FAO),
Freedom from Hunger campaign org of UK. These organizations assisted a lot of
establishment of dairy units at Hyderabad and Vijayawada a in 1967 and 1969, respectively
which led to pioneer dairy development program in Andhra Pradesh to a set of cooling and
chilling centers have been step to feed these gigantic units.
The milk producers have been facing either a lot of problems in the process of
production and marketing of milk improper transport facility poor technology ad absence of
price part facility, poor technology and absence of price particularly during flush period etc.
It was at this context the Government of AP has viewed to constitute a dairy development
corporation. More than 3.5 Lakh milk producers get 20cr Rs per Annual for supplying of
milk of which 69% of total benefits belongs to small and marginal farmers, agricultural lab
our and other weaker section of the rural community.
With all these efforts by APPDC and NEED today Andhra Pradesh has an excellent
potential for production with progressive farmers who are more receptacle to the new
technology and scientific parties. The estimated milk production is 40 Lakh liters per day.
Today a strong wave of white revolution is sweeping creating a new hope of eliminating
socio economic in balances. A.P is posed to be the dairy land of India playing an important
role on the National Milk grid. With the implementation of operation flood II program in AP
the tamps of dairy development has gained a momentum proved a thrust to eradicate poverty
and unemployment in rural areas brought graters awakening and confidence among the
producers to manage their own affairs through dairy cooperative of AP. The dairy federation
is marching a head with dairy cooperatives to herald a new era of prosperity.
FINANCIAL ASSISTANCE:
The national cooperative development corporation (NCDC) has been providing
finical Assistance to dairy cooperatives for organization medium and small sized dairy
processing plants and milk chilling centers. The corporation has sanctioned a total loan
assistance of Rs.6.33 Lakh for establishment of 29 cooperative dairy units comprising 17
chilling centers and 12 cooling centers.

28
 CHAPTER IV
COMPANY PROFILE
 COMPANY PROFILE
DAIRY INDUSTRY IN KRISHNA DISTRICT:
Krishna district is on river on track of Krishna abutting Bay of Bengal. It has a total
area of 8727 sq kms. The major activity is agriculture. It has over 17.39 lakh acres of land
which is under crop cultivation of which 66% is irrigated. The human population is 39.54
lakh. It has 972 inhabited villages. The literacy in the district is 41.71%. The district was
named as the quality cattle. And it has rank second position in milk cattle population. Buffalo
is predominant milk animal.
Organization of dairy in Krishna district has commenced during 1965 with
collaborative milk project assigned by the UNICEF. A milk conservation plant is 1.25LLPD
(lakh liters per day) was commenced in April, 1969 at Vijayawada.
Dairy industry earlier was under state government as a part as activity of animal
husbandry. Integration of dairy industry and the department of animal husbandry took place
periodically in the name of different projects:
 
 Integrated MILK project(1960)
 
 Dairy development department(1971)
 
 Andhra Pradesh Dairy Development Corporation(1974)
 
A.P Dairy Development Co-operative Federation(1981)

Identifying potentialities in the milk production of the inversion track, the

government of state as well as central government with “UNICEF” assistance has established
“Integrated Milk project- Hyderabad-Vijayawada”, linking the production and consumption
centers. Thus Krishna district has the distinction of starting organized dairy activities by
commissioning milk chilling at “PAMARRU” in February, 1965 the first of the type in
Andhra Pradesh. Organization of co-operative structure on ANAND PATTERN was initiated
in 1981. Krishna district milk producer’s co-operative union limited got registered in 1983. It
took completely management of activities related to dairy of the Krishna district since
February 1985.
Presently, the district has organized 534 dairy co-operative societies of over 92600
member producers. There are 300 milk producers’ association centers too functioning besides
co-operative societies. The union has collaborative with 2,13,896 milk producers covering
815 villages organized through 35 milk routes. District union has 6 milk chilling centers one
each operating at Pamarru, Hanuman junction, Chilikalu and Thiruvuru with a total

29
processing capacity of 1.70 lakh liters per day. It has various milk producing manufacturers
which produces various milk products .
As we all know that milk products factory located at Vijayawada handles surplus
milk from coastal districts. And about 2.10 Lakh kgs/day with peak touching 3.18 lakh
kgs/day. The factory conserving the fat in the shape of white butter usually to the extent of
1000 M.Ts per year.
Union markets about 2,00,000 liters/day market milk to 1 lakh families in the
district. It manufactures various products such as ghee, butter malai laddu, dates khova, butter
burfi, chocolate burfi, and doodh peda, ghee products, skim milk powder etc;. These products
are manufactured in this dairy under the brand name of “VIJAYA” which is popular for its
quality throughout the nation. UHT milk has market in various places such as Bombay, Goa,
Pune, Calcutta and Hyderabad. New UHT products such as sterilized cream, skim milk,
Traders from countries like Singapore and Brunei paling orders with the dairy for milk
powder.
Union manufactures and market about 35 tons/day of cattle feed besides 400MTS mineral
mixture per annum. Dairy co-operatives in villages have gradually development trading
surplus and this aspect coupled with government schemes resulting in establishing their own
buildings in 345 villages valued at Rs/- 2.2 crores.
An Aspetic packing station was set up in the milk products factory to pack 50,000
liters of long the milk (UHT MILK) per day. Union has 2 cattle feed of mixing plants with a
total capacity of about 50M.T /day. Plant has to increase procurement to two lakh liters per
day. Vijaya dairy is the only unit which is exporting products to countries like Malaysia.
Krishna milk union is a district milk producer co-operative came into exiting in July
1983, registered “KRISHNA DISTRICT MILK PRODUCERS CO-OPERATIVE
UNION LIMITED”. It took over the management doing dairy activities Krishna district of
Andhra Pradesh since February 1985. Krishna milk union currently 815 functional dairy co-
operations in villages and introduced from various chilling centers and district routes.

RANKING OF THE DISTRICT IN ANDHRA PRADESH

1) Milk production …………. 2nd
2) Processing……………… 3rd
3) Marketing ……………….. 2nd
Krishna district has milk procurement ranging from 45,000 kgs to 2,00,000kgs Per day from
1969 to 2014. As of district being buffalos concentrated has wide procurement fluctuations.

30
It was considered as the imminent to reduce the seasonal imbalance in milk production. New
programmers were drawn up. Induction of “X” bred cows has been taken up earlier in 1990
to increase milk production potentially. District has very close contact with animal health
coverage by the animal husbandry department.
The district as a co-operatives milk union provides the various following inputs to farmers
for increased milk production.
 
 Veterinary first aid facilities
 
 Animal vaccines and medicines at subsidized prices
 
 A. I. Facilities.
 
 Breading bulls
 
 Fodder seeds at subsidized rates
 
 Premixed cattle feed
 
 Cattle insurance at 2/3 subsidy.
 
Extension services.

PROCESSING:
Milk processing of milks is done by pasturing and chilling of the milk at certain
temperature. The fat percentage and chilling the milk at certain temperatures, the fat
percentage and SNF percentage is standardized accordingly for various types of milk is sent
to by products section to produce various products.
PRODUCTION:
In the production section in the process of milk and milk products and the excess milk
is converted into skim milk powder (SMP), Butter to meet the demand to learn seasons.
SALES:
Indents received from various boots and parlors. Depending on the indents the
consolidated reports are raised. These reports are sent to various sections. Reconciliation
statements are prepaid according to the indents and the details of stock delivery are
maintained for various parlors, boots and institution. Andhra Pradesh has prominent place in
the dairy of India. Dairy and milk supply has given an important place in the five year plans
of the state. Not only with a view to help the farmer to improve their income.

HISTORY AND ESTABLISHMENT:

Andhra Pradesh is one of the prominent place in dairying India. The wealth of cattle,
Andhra Pradesh was established at Rs. 220 crores and 70% of total of milk products factory,
31
Vijayawada was commissioned an 11.4.1994.Milk products factory vijayawada is having the
site of 27.3 acres. At present the cost of UNICEF equipment and erection is about 19.4 crores
(1983-1984).
The Krishna district milk product factory’s date of registration as on 6.7.1983.
Authorized share capital of Rs.10crores , paid up share capital Rs.48,12,00,000 members of
societies registered ,518 number of societies affiliated.
In 1979-1980 machinery was established in processing sections chiller capacity
80,000 liters capacity tanks. Now the above capacity is increased chiller capacity.
Milk products factory, vijayawada was commissioned on 11.04.1969. This factory has
the installing capacity of 1.25 Lakh liters per day in the first stage with provision for
expansion of 3.50lakh liters per day in the second stage. Milk products factory, vijayawada
has the distinction of handling milk to its capacity in the second year operation Apart from
handling milk to its capacity in the second year operation. A part from handling milk Krishna
district, it also handled surplus milk received from district of visakhapatnam, east and west
godavari, prakasam and nellore. The factory had pack holding since 1982-1983, with a view
of handling the improved surplus milk got from nellore, prakasam and east and west godavari
districts, a second spray drying plant with a latest design to produce about 124MT of milk
powder has been established and commissioned during 1982.
In order to increase the demand from public the factory has set up a provision
to make 8MT which will be converted into products. In the year 1977 in vijayawada test was
successfully conducted on manufacture of infant milk food, based on the formulae provided
by central food technological research institute, Mysore. Subsequently milk food with the
brand name of “vijaya sprary” was introduced in consumer pack of 1Kg and 1/2kg
throughout the country. This milk products factory, vijayawada had the distinction of being
first public sector organization in the consumer packs. In addition to the above milk powder
is also being manufacture in the factory.
GROWTH OF THE FACTORY:
As an integral part of the above project the milk product factory, vijayawada was
commissioned on 11.04.1969. This factory has an initial handling capacity of 11,25,000 liters
in which the state with provision to handle 2,50,000 liters of liquid milk in the second stage.
It has crossed the mark of 1,00,000 liters in the very first year of its operation getting
admiration from the UNICEF officials.

32
INTEGRATED MILK PROJECTS:
A scheme viz., the integrated milk project, Hyderabad and Vijayawada at a cost of
Rs.4.35 crores has been setup to make full utilization of the surplus milk of the area. Milk
products plant at capacity of 1,25,000 liters per day in the first phase and 2,50,000 liters per
day in the second phase at Vijayawada respectively.
Milk product factory, Vijayawada area of site 27.3 acres, the value of factory building
Rs.120 lakh money given by UNICEF for machinery Rs. 57lakh cost of investment on
number of worker 265. At present yearly earnings are Rs.56 crores and annual turnover Rs.
60crores . In year 1983-1984 the annual turnover is about 19.4 crores and total staff was
2,064.
CHILLING CENTERS:
The vijayawada milk products factory has set up six chilling centers, which are given
under center, have been producing chilled milk for the composition of the various segments
of the consumers. Chilling centers are very successfully used by milk products factory.
 
 Pamarru
 
 Hanuman Junction
 
 Veeranki lock
 
 Gudlavalleru
 
 Chillakallu
 
Tiruvuru

MILK DISTRIBUTION CENTERS:

Town sales (in Liters) No.of selling boots Daily

Vijayawada 1321 1,89,921

Godavari 90 4,383

Chillakallu 86 6,894

Tiruvuru 110 5,535

Pamarru 320 27,610

33
SALES CENTERS:
VIJAYAWADA: RTC Bus stand super bazaar, Railway station milk products factory,
vastralatha, Vijaya dairy parlour (near Alankar theatre) Benz circle, Sathyanarayanapuram,
machavaram, patamata etc.

CAPACITIES:
Milk 2,00,000 liters per day
Ghee 5 tons per day
Butter 7 tons per day
Milk powder 5 tons per day
Refrigeration capacity 1.5 tone capacity
Stream generation 15 tones
Milk packing 1,25,000 packets per day
Chilling 1,50,000 liters per day
Processing 1,50,000 liters per day

TRANSPORT:
There are about 25 vehicles in transport organization, milk products factory,
Vijayawada.
Road tankers
 
 4 tones of 15,000 liters capacity
 
 4 tanks of 10,000 liters capacity
 
 3 distribution vehicles for sales
 
6 inspection vehicles

In addition to these 25 vehicles are taken hire from private transporters for distribution of
milk. The milk feed to chilling centers and far off places like Visakhapatnam, Nellore and
chittor is being transported by the road tankers. It is also transported to all metropolitan cities
of Delhi Mumbai, Calcutta and Chennai through the insulated tankers.

RESEARCH AND DEVELOPMENT:

The India council of agricultural research has started a research scheme during the
period 1970-71 to undertake research on milk products. Under this scheme soft cheese, butter
milk powder curd, Doodh peda, ice cream mix, butter etc. are, manufactured.

34
NEED FOR EXPANSION:
With the initiation of the baby food, the milk handling capacity has been reduced to
about 80-85 thousand liters of milk in view of the sugar content added in manufacture of the
baby good. Thus thereby it is proposed to expand the present plant by adding additional
buildings in the existing vacant area adjacent to transport section. This will authorise the
factory to handle 1.5 lakh liters per day.
MANAGEMENT:
1) Management of the company shall will be considering board of directors,
chairman and managing director.
2) The chairman of the affiliated union enrolled as number.
3) Nominee of the government of Andhra Pradesh if the government of Andhra
Pradesh is a member.
4) Chairman of the board of directions shall over general meeting. In case of this
absence the meeting shall be conducted by a chairman form amongst the members
present.
5) The general body shall be called once a financial year with in grater ending on 31 st
December. This shall be “Annual general meeting”
6) A special general body meeting may be called at any time by a majority vote of
board of directors and shall be called with one month at least 1/5 of the members
of derivation or by the registrar of cooperative societies.

PROVISION UNDER ACT:

1) Subject to such resolution as the general body may from time to time pass. The execution
management of the union shall consist of only 17 members as detailed below.
a) 2 elected representative of affiliated 30 societies;
b) 3 government nominees;
c) Registrar of cooperative societies of this nominee.
2) Director of animal husbandry or his nominee.
3) Managing director of A.P dairy development corporation or his nominee.
a) One of the member adopted by the board from the experts in milk business.
b) Nominee of financing agency.
c) After the election of the members of the board over they shall be conducting a
meeting and elect a chairmen and vice-chairman who will hold office for one year.
The election and vice-chairman is to be held, in the same manner every year
35
 immediately after the general body meeting in which the vacancies of directors are
filled up.

THE GENEARAL POWER DUTIES AND RESPONSIBILITES OF THE

MANAGING DIRECTORS ARE AS FOLLOWS:
 
 He shall general control loan the administrations and business of the federation.


He shall power for and on behalf of the federation to enclose sign negotiates checks
other negotiates on behalf of the federation. He will
 sign all deposits, receipts and
 operate as accounts of the federation with any bank.
 
 He shall allow credit to buyer within limits fixed by the board from time to time.

He shall 
make necessary arrangements for transport and storage of dairy and allied
 produce.

 
He shall arrange to support training to the staff members of the federation union and
societies.
 
He shall appoint consultant or exports and fix their remuneration.

BOARD OF DIRECTORS:
The board consist of the following:
 
 Chairman of the affiliated union enrolled as members
 
 Registrars of the cooperative societies
 
 One nominee of the financing agency.
 
 Managing director of the federation.


3 nominees of
the state Government representing interest dairy
development.

Any member nominated to the board may at any time resign from his office by sending a
letter to Government and such registration shall come with the effect from the date on which
it is accepted by the Government.

The Government shall nominate the chairman of that board time to time. The secretary of the
Government dealing with dairy development shall be the vice-chairman of the board. All the
board members expect managing director and chairman of the federation shall be honorary.

36
MANAGING DIRECTOR:

The managing director shall be appointed by the Government from time to time upon such
terms and conditions and the Government extends such items as it may due necessary and
expedite.
STAFF POSITION OF THE COMPANY:
Department No of Persons
Managing Director 1
Dairy Directors 2
Dairy Managers 8
Asst Dairy Engineers 8
Quality control officers 1
Asst Dairy Managers 22
Fodder Development officers 2
Junior Engineers 8
Technical staff 111
Transport 31
Finance 39
Administration 117
Field staff 88
Others (Non Technical ) 375
Total 813

KDMPMACUL OBJECTIVES:
Evolving long term policies to encourage and develop milk production and
productivity in the district. Achieving co-ordination among various programmers in the
district to optimize resource utilization. Providing remunerative and assured market for the
milk produced by the farmers throughtout the year.
Improving efficiency in milk collection, transport processing and marketing with the
emphasis on reducing the cost of operations at very stage from emphasis on reducing the cost
of operations at very stage from rural farmer to urban consumer. Increasing in availability of
milk and development the market of milk products.

37
 Development the manpower of the organization to reach excellence in their working
life and create a pro-active organizational culture for achieving competitive edge.
Consolidation and expansion of co-operative structure with special attention to small farmers
and weaker section of milk producing community. Dealers from countries like Singapore and
Brunei placing order with the dairy from milk powder.

KDMPMACUL STRATEGY:
Milk procurement activities will be strengthen for securing increased share in existing
marketable surplus. Concentration of milk production enhancement programmes with special
emphasis on animal breeding, fodder development and animal health.
Marketing in the district will be intensified for better remuneration, privatization
beyond departmental level. Major strength of union with the help of aseptic technology
emphasis on value added aseptic milk products. To survive and grow in the emerging
competitive environment there would be more delegation of work across the organization
calling for accountability through well defined parameters.
Productivity improvement with change in managerial system by corporate
restructuring to make people more system dependent rather than individual dependent.
Intensive training for all levels of staff, which can really help to improve the functioning of
organization.
 Introduction of “reward and punishment” system.

 Introduction of quality system under ISO: 9001-2000, L.S.O: 4001-2004 and
HACCP certification.

MILK PROCURMENT IN MPF-VIJAYAWADA:

Milk produced twice a day from 600 villages in among these 600 centers about 195
registered societies under ANAND PATTERN. A good milk procurement infrastructure has
been developed for the last several years in the district. It is envisaged to open certain centers
to boost up milk production with more and more active participation of milk producers under
operation flood II program and substantial improvement in milk production is predicted in
near future.
MILK SUPPLY:
Milk products factory Vijayawada supplies milk in Vijayawada and to near towns in
½ liter and 1 liter sachets. Bulk supplies to hospitals, hostels and other institutions besides

38
regular market milk supplies. Milk products factory, Vijayawada dispatches milk supplies
Milk products factory, Vijayawada dispatches milk to madras, Hyderabad and Calcutta.
ORGANIZATIONAL STRUCTURE:
Organization structure is the basic frame of which the manager’s decision making
behavior takes important place. It basically deals with relationships. It is the pattern in which
various components are interrelated or interconnected. This prescribes the relationships
among various positions since the positions are held by various people with the organization.
Organizational structure is the totally of both formal and informal relationships. The
organization structure involves the following steps:
1) Identification of activates
2) Group activities
3) Delegating of authority.
In the KDMPMACUL organizational structure, chairman is the head of board of directors.
General Manager has various lands created under him like plant manage, production
manager, accounts officer, personal officer, sales manager, medical officer, quality control
officer etc.,
DETAILS AT A GLANCE:THE KDM PRODUCERS CO-OPERATIVE UNION
LIMITED
1. number of villages covered 815
2. number of cooperative societies 549
3. number of milk routers 35
4.number of chilling centers 6
5.number of feed mixing plants 2
6.milk products factory area 27.3 acres
7.value of factory buildings Rs.120 lakh
9. value of other buildings and investment Rs.270 lakh
10. date of commissioning of milk product factory 11.04.1969
11. Total staff 250
12. date of formation of union 6.7.1983
13. date of transfer of management of union 8.2.1985

39
PACKING:
Milk is collected from gathering point and is pasteurized and converted into milk
powder. As per the demand of the requirement the powder is mixed with water and converted
back to milk , churned and the quality controllers check quality, and then approve the milk
for packing quality controllers check the quality , and then approve the milk for packing.
MILK AND MILK PRODCUTS:
Today KDMPMACU offers the large-scale spectrum of milk products in India, under
the brand name VIJAYA. These include Ghee, Butter processed cheddar cheese and cheese
spread, UHT milk ( std milk toned milk low fat, Flavored Milk (Merry Milk), Slim Milk in
Tetra packs, Sterilized cream , skim Milk powder , dairy Whitener, Cooking Butter and
icecream. Among this carry the AGMARK, an attestation of quality by government of India
and the ISI mark of Bureau of India standards.
The brand VIJAYA connotes quality ad quality, which makes it a trusted Name in
millions of households across the country. In addition, KDMPMACU also manufactures
products such as sterilized Flavored milk Paneer (indigenous unripended cheese) Doodh Peda
(desiccated milk sweet) and Buttermilk which is marketed through a system of Vijaya Dairy
parlous and a chain of retailers spread across Andhra Pradesh.
The Dairy is qualified with the ISO 9001:2000 certification and recently ISO 14001:2004
certification.
DIFFERENT PRODUCTS OF VIJAYA DAIRY:
GHEE:
 
 Complete Milk Fat (99.7%)
 
 Granular and White in color
 
 Agmark Special Grade product (Government of India Certification)
 
 Used as a cooking medium.
 
 Shelf – life of 6 months at ambient temperature
 
 Hygienically manufactured and packed.
 
 Pleasant flavor.
 
Rice source of energy.

GHEE PACKET
 
 Complete Milk Fat (99.7%)
 
 Granular and White in Colour.
 
Agmark Special Grade product (Government of India Certification.)

40
  
 Used as a cooking medium
 
 Shelf – life of 6 months at ambient temperature
 
 Hygienically manufactured and packed
 
 Pleasant flavour
 
Rice source of energy.

COOKING BUTTER:
 
 Has 76% Milk Fat, White in colour.
 
 Can be made into Ghee a per your choice.
 
 Needs refrigeration.
 
 Pleasant taste.
 
Used also as a cooking medium.

U.H.T MILK:
 
 Treated at Ultra High Temperature and aseptically packed.
 
 Sterile, Bacteria free and can be consumed directly.
 
 Needs no refrigeration.
 
 Contains 4.5% fat and 8.5% SNF.
 
 Stays fresh for 120 days.
 
 Gives excellent and firm curds.
 
 Hygienically packed.
 
 Natural taste with high nutritive value.
 
 Packaging material absolutely impermeable and non-returnable
 
 Available as a grocery item.
 
Homogenized.

SLIM MILK
 
 Milk free from fat
 
 Sterilized with U.H.T process and packed aseptically.
 
 Needs no refrigeration.
 
 Has 8.7% Milk SNF.
 
 Shelf life of 4 months at ambient temperature
 
 Low calorie diet milk.
 
Becteria free and can be consumed directly

41
  
Gives firm fat free curds.

SKIM MILK POWDER:

 
 Manufactured by drying skim milk spray drying technology after Preconcentration.
 
 Rich in Protein and Carbohydrates.
 
 Constitute 3% Moisture, 35% protein, 52% Milk sugar and 1% Fat.
 
 Shield –life of 12 months at ambient temperature.
 
 Product is hydroscopic and should be stored in air-tight containers.
 
 Solubility of 99.5%
 
BIS marked.

MERRI MILK
 
 Sweetened flavored milk with 1.5% Fat and 9.0% SNF.
 
 Available in Strawberry, Rasberry, Vanilla, Pineapple and Badam flavors.
 
 Sterile, Bacteria free
 
 Needs no refrigeration.
 
 Safe-life of 3 months.
 
 Excellent health drink.
 
U.H.T Processed and aseptically packed Homogenized.

STERLIZED CREAM
 
 Has 30% Milk Fat with added stabilized and emulsifiers.
 
 U.H.T processed and aseptically packed.
 
 Need no refrigeration.
 
 Shelf-life of 3 months.
 
 Can be used coffee whitening whipping to be used desserts etc.
 
 Nutritive and Fresh
 
 Sterile, Bacteria free and no chemical changes.
 
Homogenized.

DOODH PEDA
 
 Made from fresh milk
 
 Desiccated sweetened milk product
 
Contains 20% Milk Fat.

42
  
 Smooth, granular texture.
 
Shelf life of one week at ambient temperature.

CURD
 
 Made from standardized and pasteurized milk using bacterial culture.
 
 Shelf life of 1 week under refrigeration.
 
 Packed in food grade polypropylene cups.
 
Pleasant flavour.

PANEER
 
 Coagulated milk product made from pasteurized milk.
 
 Rich in protein.
 
 Shelf – life of 1 week.
 
 Needs no refrigeration.
 
Used as an additive in various vegetarian and non-vegetarian dishes.

1.10 SERVICES OFFERED TO THE CONSUMERS:

1) Offering wide range and milk products suiting to changing
needs. a) Varieties of pasteurized milk offered for supply:
 
 Vijaya gold (fat 7% SNF 9% full cream milk.
 
 Vijaya Special (fat 6% SNF 9% full cream milk)
 
Vijaya Premium (fat 4.5% SNF 8.5% standard milk fortified with Vitamin ‘A’.

b) Range of UHT processed milk products with shelf – life of 4 months:

 
 UHT processed standardized milk in 200ml and 1000ml Tetra Brick pack.
 
 Sterilized cream In 200ml Tetra Brick Pack.
 
 Flavored milk (LASSI) in 200ml Tetra Brick Pack.

c) Range of fresh milk products:

 
 Curd (100ml, 200ml and 500ml cups)
 
 Lassie 200ml Poly packs.
 
 Buttermilk 200ml Poly packs
 
 Paneer 100gm, 200mg, 500mg, and 1Kg packages.
 
 Doodh peda 25gm, 250gm, 500gm and 1Kg Packages.
 
 Milk cake 250gm, 500gm and 1Kg packs.
 
Kharjura Kova 250gm, 500gm and 1Kg packs

43
  
 Kharbhuja 200ml pack.
 
 Kulfi Badam 200ml pack
 
 Badammix power 200grs packet
 
 Gift pack 450gms and 900gms packet
 
 Milkey Mango magic 200ml and 1000ml packages.

d) Range of other products:

Vijaya Ghee consumer tin packs of ½ Kg, 1Kg, 2Kg, 5Kg, 15Kg, and in poly pack of
200ml and 500ml.
 
 Skimmed milk powder in ½ Kg, 1Kg and 25Kg packs.
 
 Cooking butter in 500gms and 20 Packs.

2) Special discount to intuitional buyers on purchase of milk in bulk quantities in loose

condition in cans. Supply of milk to consumers on purchase of monthly milk cards. Round
the clock availability of milk products through 250 cold chain point in the district.
Conduction consumer education camps to create awareness about quality of milk and milk
products. Free supply of chilled drinking water to parties buying more than 200 liters of milk
on special order.
“SWOT ANALYSIS OF KDMPMACU”
STRENGTHS:
 
 Milk production potential in Krishna district is substantial
 
 Ability to handle perishable product milk
 
 Adequate infrastructural facilities available
 
 Availability of well experienced professionals.
 
 Excellent brand value for “VIJAYA”
 
 Ability to meet any consumer demand for milk and milk products.
 
 Ability to offer best quality long life products.
 
 Established bondages with farmers.
 
 Access to development funds and grants.
 
 Access to other co-operatives.
 
Vijaya Dairy is the only unit exporting milk products to countries like Malaysia.

WEAKNESS:
 
 High fixed cost occupying 15% of business turn over.
 
 Milk and milk products are high priced loosing competitive edge.
 
Process/product manufacturing facilities and outdated. Lakhk of modern facilities.

44
  
 Work culture and compatible with growing demand for customer service.
 
 Employee skills at various levels require up gradation

  High ratio of class 4th staff.

 
 Business systems and modern management culture is yet to be adopted.
 
 Managers lakhk business experience.


System moves very slowly; due to lakhk of proper delegation all things seem to wait
for the chief executive.

OPPORTUNITIES:
 
 Responsive milk producer base
 
 Good public image
 
 Emerging trends of increased spending on foods
 
 Rapid utilization.
 
 Growing food service sector.
 
 Responsive state government
 
 Pattern of increased spending on foods
 
 Increased purchasing capacity of middle class.
 
 Export opportunities for long life aseptic milk.
 
Voluntary retirement scheme to prune man power strength.

THREATS:
 
 Intense competition in liquid milk market
 
 Entry of organized private sectors in dairy business.
 
 Increasing competition for the marketable surplus milk in rural areas.
 
Employees Resistance to change.

45
ORGANISATION CHART:

General Body

Board of Mgt

Managing Directors

Procurement and Input controller Personnel officer

Marketing Manager Quality

Production Manager Stores

Plant Maintenance MIS

Director (Finance) APS

46
 CHAPTER V
DATA INTERPRETATION AND ANALYSIS
 DATA INTERPRETATION AND ANALYSIS
1. Is the incentive system of your organization being followed genuinely?
a) greater extent b) moderate extent c)some extent d)no extent
Options No. of respondents Percentage
Greater extent 50 62.5
Moderate Extent 13 16.25
Some Extent 10 12.5
No Extent 7 8.75
Total 80 100

Genuinessin providing incentives

70
62.5
60

50

40

percentages
30

20 16.25
12.5
8.75
10

0
greater extent moderate extent some extent no extent

INTERPRETATION:
From the above graph, it is observed that 62.5 percent of employees responded at
greater extent about genuineness of the company in providing incentives to them.16.25
percent of employees responded at moderate extent, 12.5 percent of employees responded
at some extent and 8.75 percent of employees responded at no extent.
From the above, it is interpreted that around 88% of respondents felt that the
incentives are genuinely given to the employees.

47
 2.Are you feeling that your work is valued and is appreciated by incentives?
a.)strongly agree b.) agree c)neither agree nor disagree d.)disagree e.)strongly disagree

Options No.of respondents Percentage

Strongly agree 42 52.5
Agree 28 35
Neither agree nor disagree 5 6.25
Disagree 4 5
Strongly disagree 1 1.25
Total 80 100

Appreciated by incentives
60
52.5
50
Percentage

40 35

30

20 percentage

10 6.25 5
1.25
0
strongly agree agree neither agree Disagree Strongly
nor disagree disagree
Response options

INTERPRETATION:
From the above graph, we can understand that 52.5 percent of employees strongly
agreed that their work is valued and appreciated by incentives. 35 percent of employees are
agreed, 6.25 percent of employees neither agree nor disagree, 5 percent of employees
disagree 1.25 percent of employees strongly disagree that their work is appreciated by
incentives.
From the above it is said that 88% of the employees said that their work is
recognized by the superiors.

48
 3.How did you come to know about any new incentives being introduced in your
organization?
a.)Through superiors b.)Co-workers c.)Through company websites d.)When incentives are
received
Options No. of respondents Percentage
Through superiors 41 51.25
Co-workers 25 31.25
Through company website 9 11.25
When incentives received 5 6.25
Total 80 100

knowing the introducing of new incentives

60
51.25
50

40
Percentages

31.25
30

20 percentages
11.25
10 6.25

0
Through superiors co-workers Through company when incentives
websites are received
Respondents opinions

INTERPRETATION:
From the above table we can understand that 51.25 percent of employees said that
they knew about introduction of new incentives through superior.31.25 percent of
employees said that they knew through co-workers, 11.25 percent of employees said that
they knew through company website and 6.25 percent of employees said that they knew
when received incentives.
From the above it is interpreted that 94.75% come to know about incentives.

49
 4. Do you feel that support and guidance of your superiors is important for you to get
incentives?
a.)strongly agree b.) agree c)neither agree nor disagree d.)disagree e.)strongly disagree
Options No.of respondents percentage
Strongly agree 60 75
Agree 8 10
Neither agree nor disagree 2 2.5
Disagree 4 5
Strongly disagree 6 7.5
Total 80 100

Support and Guidance of superiors

75
80
70
60
Percentages

50
40
30
20 10
5 7.5
10 2.5
0
Strongly agree agree neither agree nor disagree strongly disagree
disagree
Response opinions

INTERPRETATION:
From the above table we can understand 75 percent of employees were strongly
agreed that they feel support and guidance of superiors is important for them to get
incentives. 10 percent of employees agreed, 2.5 percent of employees neither agree nor
disagree, 5 percent of employees disagree and 7.5 percent of employees strongly disagree.
From the above it is interpreted that 85% of the employees agree with that superiors
gives guidance and support.

50
 5. Are you satisfied about Incentives and welfare measures provided in your
organization?
a.)strongly agree b.) agree c)neither agree nor disagree d.)disagree e.)strongly disagree
Options No.of respondents percentage
Strongly agree 12 15
Agree 58 72.5
Neither agree nor disagree 5 6.25
Disagree 4 5
Strongly disagree 1 1.25
Total 80 100

Satisafction about incentives and welfare

measures
80 72.5
70
60
Percentages

50
40
30
20 15
percentage
10 6.25 5
1.25
0
Strongly agree agree neither agree disagree strongly
nor disagree disagree
Response Opinions

INTERPRETATION:
From the above table we can understand 15 percent of employees were strongly
agreed that they are satisfied about incentives and welfare measures provided by the
organization. 72.5 percent of employees agreed,
6.25 percent of employees neither agree nor disagree, 5 percent of employees disagree and
1.25 percent of employees strongly disagree.
From the above it is interpreted 67.5% agreed that they are satisfied about
incentives.

51
6.Did you get any incentives for your performance in your
Organisation? a.)yes b.)No
Opinios No.of respondents Percentages
Yes 74 92.5
No 6 7.5
Total 80 100

Incentives received by employess

100 92.5
90
80
70
P

n
e

e
g
c

s
r

60
50
percentages
40
30
20
7.5
10
0
yes no
Response Opinions

INTERPRETATION:

From the above table we can understand that 92.5 percent of employees said that they
received incentives for their performance of work in the organization and 7.5 percent of
employees said that they didn’t get any incentives for their work performance in organization
From the above it is said 92.5% agree with the receiving with the incentives.

52
7) Which Type of Incentives do your prefer more?
a)Monetary b)Non monetary c)Both
Opinions No.of respondents Percentages
Monetary 68 85
Non-Monetary 4 5
Both 8 10
Total 80 100

Incentives Prefered by employees

90 85
80
70
60
50
percenatges
40
30
20
10
10 5
0
Monetary Non monetary both

INTERPRETATION:

From the above diagram we can understand that 85 percent of employees preferred monetary
incentives. 5 percent of employees preferred non monetary incentives and 10 percent of
employees preferred both monetary as well as non monetary incentives.
From the above it is interpreted that 85% of employees prefer incentives in monetary
terms and 5% prefer in form of benefits and 5% prefer incentives in monetary and non-
monetary.

53
 8.)What is the motivation level of you through these incentives and welfare measures?
a.)Excellent b.)good c.)Average d.)Poor
Opinions No.of respondents Percentages
Excellent 15 18.75
Good 55 68.75
Average 7 8.75
Poor 3 3.75
Total 80 100

Motivation level of employees

80
68.75
70

60

50
Percentages

40

30 percentages
18.75
20
8.75
10 3.75
0
excellent good average poor
Response opinions

INTERPRETATION:

From the above graph, we can understand that 18.75 percent of employees said
that their motivation level through incentives and welfare measures are excellent,68.75
percent of employees responded at good, 8.75 percent of employees responded average
and 3.75 percent of employees responded at poor.
From the above it is interpreted that 86.5% employees feel that their motivation
level has improved through receiving of incentives.

54
 9.)Are you satisfied from the statutory welfare scheme like rest rooms which are
provided by your organization?
a.)strongly agree b.) agree c)neither agree nor disagree d.)disagree e.)strongly disagree
Opinions No.of respondents percentage
Strongly agree 6 7.5
Agree 49 61.25
Neither agree nor disagree 9 11.25
Disagree 1 1.25
Strongly disagree 15 18.75
Total 80 100

satisfaction levels of employees about restrooms

70
61.25
60

50
Percentages

40

30
18.75 percentage
20
11.25
7.5
10
1.25
0
strongly agree agree neither agree disagree Strongly
nor disagree disagree
Response opinions

INTERPRETATION:
From the above table we can understand that 7.5 percent of employees strongly
agreed that they are satisfied about restrooms provided by the organization 61.25 percent
of employees agreed, 11.25 percent of employees neither agree nor disagree, 1.25 percent
of employees disagree and 18.75 percent of employees strongly disagreed.
From the above it is interpreted that 68.75% are satisfied with conservancy
services.

55
 10.)Are you satisfied with the drinking water facility provided by your company?
a.)strongly agree b.) agree c)neither agree nor disagree d.)disagree e.)strongly disagree
Opinions No.of respondents percentage
Strongly agree 15 18.75
Agree 53 66.25
Neither agree nor disagree 1 1.25
Disagree 2 2.5
Strongly disagree 9 11.25
Total 80 100

Drinking water facility

66.25
70
60
50
Percentages

40
30
18.75
20 11.25
percentage
10 1.25 2.5
0
strongly agree agree neither agree disagree strongly disagree
nore disagree
Response opinions

INTERPRETATION:
From the above diagram, we can understand that 18.75 percent of employees
strongly agreed for drinking water facilities provided by the organization.66.25 percent of
employees agreed, 1.25 percent of employees neither agree nor disagree,2.5 percent of
employees disagree and 11.25 percent of employees strongly disagree .
From the above it is interpreted that 85% are satisfied with the drinking water
facilities.

56
 11.)Are you satisfied with first-aid and medical facility provided by your Organization?
a.)strongly agree b.) agree c)neither agree nor disagree d.)disagree e.)strongly disagree
Opinions No. of respondents percentage
Strongly agree 34 42.5
Agree 26 32.5
Neither agree nor disagree 10 12.5
Disagree 2 2.5
Strongly disagree 8 10
Total 80 100

Medical facilities
45 42.5
40
35 32.5
30
Percentages

25
20
15 12.5 percentage
10
10
5 2.5
0
Strongly agree agree Neither agree disagree strongly
nor disagree disagree
Response opinions

INTERPRETATION:
From the above diagram, we can understand that 42.5 percent of employees strongly
agreed for medical facility provided by the organization. 32.5 percent of employees agreed,
12.5 percent of employees neither agree nor disagree, 2.5 percent of employees disagree and
10 percent of employees strongly disagree.
From the above it is interpreted that 75% agree with the medical facilities are
satisfied.

57
 12.)What is the satisfaction level with regard to sick leave in the organization?
a.)Highly satisfied b.)satisfied c.)Dis-satisfied d.)Highly dissatisfied
Opinions No. of respondents percentage
Highly satisfied 4 5
Satisfied 58 72.5
Dissatisfied 10 12.5
Highly Dissatisfied 8 10
Total 80 100

Sick leaves to the employees

80
72.5
70

60

50
Percentage

40

30 percentages

20
12.5
10
10 5
0
Highly satisfied satisfied dissatisfied highly dis satisfied
Response opinions

INTERPRETATION:
From the above diagram, we can understand that 5 percent of employees highly
satisfied with regard to sick leaves provided by the organization.72.5 percent of
employees satisfied, 12.5 percent of employees dissatisfied and 10 percent of employees
highly dissatisfied.
From the above it is interpreted that 77.5% are satisfied with the sick leave benefit.

58
 13.) Are you satisfied about new technological training provided to you about your
work in organization?
a.)strongly agree b.) agree c)neither agree nor disagree d.)disagree e.)strongly disagree
Opinions No. of respondents Percentage
Strongly agree 45 56.25
Agree 23 28.75
Neither agree nor disagree 3 3.75
Disagree 2 2.5
Strongly disagree 7 8.75
Total 80 100

New technological training

60 56.25

50
Percentages

40
28.75
30

20 percentages

8.75
10
3.75 2.5
0
Strongly agree agree neither agree disagree strongly
nor disagree disagree
Responses opinions

INTERPRETATION:
From the above diagram, we can understand that 56.25 percent of employees
strongly agreed for new technological training provided by the organization. 28.75 percent
of employees agreed, 3.75 percent of employees neither agree nor disagree, 2.5 percent of
employees disagree and 8.75 percent of employees strongly disagree.
From the above it is interpreted that 85% agree that the training programmes will be
conducted.

59
 14.)How do you rate about hygiene factor like working conditions are provided to
you in organization?
a.)Excellent b.)good c.)Average d.)Poor
Opinions No.of respondents Percentages
Excellent 12 15
Good 48 60
Average 18 22.5
Poor 2 2.5
Total 80 100

Working conditions
70
60
60

50
Percentages

40

30
22.5 percentage
20 15

10
2.5
0
excellent good average poor
Response opinions

INTERPRETATION:
From the diagram, we can understand that 15 percent of employees responded at
excellent for working conditions provided by the organization.60 percent of employees
responded at good ,22.5 percent of employees responded at average,2.5 percent of
employees responded at poor.
From the graph we can interpreted that 75% of employees are satisfied with the
working conditions.

60
 15.)Does the management provides any housing loans to workers and employees in the
organization?
a.)yes b.)No
Opinions No.of respondents Percentages
Yes 72 90
No 8 10
Total 80 100

Housing loans
100
90
90
80
70
Percentages

60
50
40 percentages
30
20
10
10
0
yes no
Response opinions

INTERPRETATION:

From the above table, we can understand that 90 percent of employees said that the
company provides housing loans facilities and 10 percent of employees responded at No.

Majority of the respondents (90%) agree that the company provides house loans.

61
 16.)How do you rate about the working hours given to you in the
organization? a.)Excellent b.)good c.)Average d.)Poor
Opinions No.of respondents Percentages
Excellent 8 10
Good 32 40
Average 29 36.25
poor 11 13.75
Total 80 100

working hours
45
40
40
35.25
35
30
Percentages

25
20
13.75 percentages
15
10
10
5
0
excellent good average poor
Response opinions

INTERPRETATION:

From the diagram, we can understand that 10 percent of employees responded at

excellent for working hours provided by the organization.40 percent of employees
responded at good, 35.25 percent of employees responded at average, 13.75 percent of
employees responded at poor.

Only 50% agree that working hours are happy with regard to the working hours offered
by the company.

62
17.)Does the management provides sufficient number of was rooms in the
organizations?
a.)yes b.)No
Opinions No.of respondents Percentages
Yes 52 65
No 28 35
Total 80 100

Washrooms facilities
70 65

60

50
Perce
ntage
s

40 35

30
percentages
20

10

0
yes no
Response opinions

INTERPRETATION:

From the above table, we can understand that 65 percent of employees said that the
company provides sufficient number of washroom facilities and 35 percent of employees
responded at No.

From the above we can interpret that only 65% employees are of the opinion that
sufficient number of washrooms available.

63
 18.)How do you rate the pricelist in the canteen services provided by the organization?
a.)Excellent b.)good c.)Average d.)Poor
Opinions No.of respondents Percentages
Excellent 8 10
Good 12 15
Average 42 52.5
poor 18 22.5
Total 80 100

Employee satisfaction on the pricelist in the

canteen services
60
52.5
50

40
percentages

30
22.5 percentages
20
15
10
10

0
Excellent good average poor
Response opinions

INTERPRETATION:
From the diagram, we can understand that 10 percent of employees responded at excellent
for pricelists in the canteen services provided by the organization.15 percent of employees
responded at good, 52.5 percent of employees responded at average, 22.5 percent of employees
responded at poor
From the above we can interpret that only 25% employees felt that pricelist in canteens is
good.

64
19.)Does the company take care of the employees who are working in the night
shifts? a.)yes b.)No
Opinions No.of respondents Percentages
Yes 73 91.25
No 7 8.75
Total 80 100

Company takes care of nightshifts employees

100
91.25
90
80
70
Percentages

60
50
40 percentages
30
20
8.75
10
0
yes no
Response opinions

INTERPRETATION:

From the above table, we can understand that 91.25 percent of employees said that the
company takes care employees who work during night shifts and 8.75 percent of employees
responded at No.
It is interpreted that 91.25% of respondents opined that the company takes care of
employees at nightshifts.

65
20.)Does the management provide any transportation facilities in the
organization? a.)yes b.)No
Opinions No.of respondents Percentages
Yes 42 52.5
No 38 47.5
Total 80 100

Transportation facilities
53 52.5

52

51

50
Percentages

49
percentages
48 47.5

47

46

45
yes no
Respionse opinions

INTERPRETATION:
From the above table, we can understand that 52.5 percent of employees said that the
company provides transport facilities and 47.5 percent of employees responded at No.
It is understood that only 52.5% of respondents have agree that company provides
transport facilities.

66
 21.)How do you rate the cleanliness maintained by the management in your
organizations?
a.)Excellent b.)good c.)Average d.)Poor
Opinions No.of respondents Percentages
Excellent 36 45
Good 5 6.25
Average 30 37.5
poor 9 11.25
Total 80 100

cleanliness in the organisation

50 45
45
37.5
40
35
Percentages

30
25
20 percentages
15 11.25
10 6.25
5
0
excellent good average poor
Response opinions

INTERPRETATION

From the diagram, we can understand that 45 percent of employees responded at

excellent for cleanliness maintained by the organization.6.25 percent of employees responded
at good, 37.5 percent of employees responded at average, 11.25 percent of employees
responded at poor.

It is interpreted that 51.25% are satisfied with the Cleanliness in the organization and
37.5% responded at average and 11.25% responded at poor.

67
 22.)What is the satisfaction level of you through these incentives and welfare measure
provided by your organization?
a.)Excellent b.)good c.)Average d.)Poor
Opinions No.of respondents Percentages

Excellent 28 35
Good 27 33.75
Average 19 23.75
poor 6 7.5
Total 80 100

Employee satisfaction on incentives and welfare

measures
40
35 33.75
35
30
23.75
Percentage

25
20
15 percentage

10 7.5
5
0
excellent good average poor
Response opinions

INTERPRETATION:
From the diagram, we can understand that 35 percent of employees responded at excellent for
incentives and welfare measures provided by the organization.33.75 percent of employees responded
at good, 23.75 percent of employees responded at average, 7.5 percent of employees responded at
poor.
From the above we can interpret as that 68.75% has responded at good for providing
incentives and welfare measures.

68
 23.)What is your opinion about function hall facility provided by the
organization? a.)Highly satisfied b.)satisfied c.)Dis-satisfied d.)Highly dissatisfied
Opinions No. of respondents percentage
Highly satisfactory 47 58.75
Satisfactory 12 15
Neither satisfactory nor dissatisfactory 14 17.5
Dis-Satisfactory 6 7.5
Highly Dis satisfactory 1 1.25
Total 80 100

Function hall facilities

70
58.75
60

50
Percentages

40

30
17.5 percentage
20 15
7.5
10
1.25
0
Highly satisfactory neither dis-satisfactory highly
satisfactory satisfactory nor dissatisfactory
dis-satisfactory
Response opinions

INTERPRETATION:

From the above diagram, we can understand that 58.75 percent of employees highly satisfied
with function hall facility provided by the organization.15 percent of employees satisfied , 17.5 percent
of employees neither satisfied nor dissatisfied ,7.5 percent are dis-satisfied

It is interpreted that 76.25% are satisfied with the functional hall facility offered by the
organisation.

69
 24.)How do you rate the hours worked incentives provided by your
organization? a.)Excellent b.)good c.)Average d.)Poor
Opinions No.of respondents Percentages

Excellent 24 30
Good 5 6.25
Average 44 55
Poor 7 8.75
Total 80 100

Incentives based on working hours

P

n
e

e
g
c

s
r

60 55

50

40
30
30
percentage
20

8.75
10 6.25

0
excellent good average poor
Response opinions

INTERPRETATION:

From the diagram, we can understand that 30 percent of employees responded at

excellent for incentives based on working hours provided by the organization.6.25 percent
of employees responded at good, 55 percent of employees responded at average, 8.75
percent of employees responded at poor.
From the above we can interpret that the 36.25% responded good at incentives are paid
based on working hours.

70
25.)Does the management provide proper and sufficient lights for employees during
nights shits in the organization?
a.)yes b.)No
Opinions No.of respondents Percentages
Yes 57 71.25
No 23 28.75
Total 80 100

percentages
80
71.25
70

60

50
Percentages

40
28.75 percentages
30

20

10

0
yes no
Response opinions

INTERPRETATION:

From the above table, we can understand that 71.25 percent of employees said that the
company provides proper and sufficient light facilities and 28.75 percent of employees
responded at No.

It is observed that 71.25% employees has responded that company provides sufficient
lighting.

71
 CHAPTER VI
FINDINGS, SUGGESTIONS
AND
CONCLUSION
 FINDINGS & SUGGESTIONS
Findings:
 Around 88% of respondents felt that the incentives are genuinely given to the
employees.

 Majority (88%) of the employees said that their work is recognized by the
superiors.

 Majority of respondents (94.75%) come to know about incentives before

receiving incentives.

 85% of the employees agree with that superiors gives guidance and support for
getting incentives.

 Only 67.5% agreed that they are satisfied about incentives.

 Majority (92.5%) agree that they receive incentives.

 Around 85% of employees prefer incentives in monetary terms.

 Majority (86.5%) employees feel that their motivation level has improved
through receiving of incentives.

 Only 68.75% are satisfied with the rest room facilities offered by the company.

 85% are satisfied with the drinking water facilities offered by the company.

 Only 75% of respondents are satisfied with the medical facilities.

 Around 77.5% of respondents agree that the company provides them sick leave
benefit.

 Majority of respondents (85%) agree that company provide the training programs.

72
 Around 75% of employees are satisfied with the working conditions.

 Majority (90%) of the employees agree that the company provide housing loans.

 Only 50% of respondents are satisfied with the working hours of the company.
.
 Around 65% employees say the they have sufficient number of washrooms available.

 Majority (91.25%) of the respondents feel that the company takes care of employees
at nightshifts.

 Only 52.5% of respondents have agreed that company provides transport facilities.

 Only 51.25% are satisfied with the cleanliness in the organization.

 Around 68.75% have responded positively with regard to incentives and welfare
measures.

 Around 76.25% have agreed that the company provides function hall faciltiy.

 Only 36.25% are satisfied with the incentives calculated on the basis of working
hours.

 Around 71.25% employees have responded that the company offers sufficient
lighting.

73
 SUGGESTIONS:
 It is suggested that company should improve in providing incentives and welfare measure
still the employees are fully satisfied. 

 It is suggested that the company should provide rest rooms with clean facilities to their
employees.

 It is suggested, that the company should provide a person who have proper knowledge in
giving medicines or treatment to the insured persons. 

 It is suggested, that the company should give required sick leaves to their employees
based on their health certificate.

 It is suggested; that the company should also keep on continue the present working
conditions to the future.

 It is suggested, that the company’s should provide effective working hours to their
employees in order to better performance of the employees.

 It is suggested, that the company should reduce the prices in the canteen services for their
employees in the organization. 

 It is suggested, that the company should take precautionary steps about the employees
who are going to work in the night shifts.

 It is suggested that the company’s should improve transportation facility in order to
provide transportation facility to every employee of the organisation. 

 It is suggested, that the company should also improve better maintenance about
cleanliness in every department of the organization. 

It is suggested, that the company increase the incentives and welfare measures in order to

get fully satisfaction of the employees.

 It is suggested, that the company should also keep extra lights for future need of the
employees in the night shifts of the organization. 

74
 CONCLUSION

This present study with title A STUDY ON INCNETIVES AND WELFARE

MEASURES with reference to Krishna District Milk Producers’ Mutually Aided Co-
operative Union Limited, Vijayawada is under taken with an aim of understanding
incentives and welfare measures.

The employees are satisfied with the transparency in providing incentives and
welfare measures across levels. The employees are satisfied with the welfare amenities
provided to them and their hard work is being appreciated and also being paid incentives
for nightshifts.

The employees are less satisfied as there is no flexible working hours in the
organization. They should also take care about the safety of employees during
nightshifts. Even the employees are less satisfied with the work environment, incentives
and sick leave policy.

The employees are satisfied with the organization in overall. But by adding up
some suggestions, their satisfaction levels will be improved. The organization is
suggested to boost up the employees to increase their satisfaction and also productivity to
the organization which can gain both individual and organization objectives.

75
BIBLIOGRAPHY
 BIBLIOGRAPHY

LIST OF BOOKS:-

 
Aswathappa: “Human Resource Management “,Tatamchrawhill, New Delhi.
 
Madhurima lall,Sakina Qasim Zasidi :“Human resource management”
 
SUBBA RAO P: “ Personnel and Human Resource Management”

Mathis,Jackson,Tripathy:” Human Resource Management”-A South – Asian

Perspective”.

Online sources:-

1. www.ibef.com
2. www.study.com
3. www.managementstudyguide.com
4. www.preservearticles.com
5. www.vijayadairy.com
APPENDIX
 INCENTIVES AND WELFARE MEASURES QUESTIONNAIRE
KRISHNA DISTRICT MILK PRODUCERS’ MUTUALLY AIDED CO-OPERATIVE UNION
LIMITED, VIJAYAWADA
1. Is the incentive system of your organization being followed genuinely?
a) Greater extent b) Moderate extent c) Some extent d)No extent

2. Your work is valued and appreciated by offering incentives.

a) Strongly agree b) Agree c) Neither agree nor disagree d)disagree e) Strongly
Disagree

3. How did you come to know about any new incentives being introduced in your organization?
a.)Through superior b) Through superior b) co-workers c) Through company website d) When
incentives received

4.Support and guidance of your superiors are important for you to get incentives.
a) Strongly agree b) Agree c) Neither agree nor disagree d)disagree e) Strongly Disagree

5.You are satisfied about Incentives and welfare measures provided in your organization.
a) Strongly agree b) Agree c) Neither agree nor disagree d)disagree e)
Strongly Disagree

6.Did you get any incentives for your performance in your organization so far?
a.) Yes b) No

7. Which type of incentives do you prefer more?

b) Monetary b) Non-monetary c) Both

8.What is your motivation level by the incentives and welfare measures provided by
your organization?
b) Excellent b) Good c) Average d) Poor

9.You are satisfied with the rest rooms which are provided by your organization.
a) Strongly agree b) Agree c) Neither agree nor disagree d)disagree e)
Strongly Disagree
10.You are satisfied with the drinking water facility provided by your organization.
a) Strongly agree b) Agree c) Neither agree nor disagree d)disagree
e)Strongly Disagree

11.you are satisfied with first-aid and medical facility provided by your organization.
a) Strongly agree b) Agree c) Neither agree nor disagree d)disagree e)
Strongly Disagree

12. What is the satisfaction level with regard to sick leave in the organization?
a) Highly Satisfied b) Satisfied c) Dis-satisfied d) Highly Dis -satisfied

13. You are satisfied about new technological training provided to you about your work in
the organization.
a) Strongly agree b) Agree c) Neither agree nor disagree d)disagree
e) Strongly Disagree

14. How do you rate about working conditions that are provided to you in your organization?
a) Excellent b) Good c) Average d) Poor

15. Does the management provide any housing loans to workers and employees in the
organization?
b) Yes b) No

16. How do you rate about the working hours given to you in the organization?
a) Excellent b) Good c) Average d) Poor

17. Does the management provide sufficient number of wash rooms in the
organization? b) Yes b) No

18. How do you rate the pricelist in the canteen services provided by the organization?
a) Excellent b) Good c) Average d) Poor

19. Does the company take care of the employees who are working in the night shifts?
b) Yes b) No
20. Does the management provide any transportation facilities in the
organization? b) Yes b) No

21. How do you rate the cleanliness maintained by the management in your organization?
a) Excellent b) Good c) Average d) Poor

22. What is the satisfaction level of you through these incentives and welfare measure
provided by your organization?
a) Excellent b) Good c) Average d) Poor

23. What is your opinion about function hall facility provided by the
organization? a) Highly satisfactory b) Satisfactory c) Neither satisfactory nor
dissatisfactory
d) Dis-satisfactory e) Highly Dis-satisfactory

24. How do you rate the overtime allowance provided by your organization?
a) Excellent b) Good c) Average d) Poor

25. Does the management provide proper and sufficient lights for
employees during night shifts in the organization?
b) Yes b) No