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c c An organization is made up of four resources, namely, men, material, money and


machinery. Of these, the first one is living one, i.e., human and the other three are non-living
i.e., non-human. It is the human/people that make use of non-human resources. Hence, people
are the most significant resources in an organization. It is man who makes all the difference in
organizations. L.F. Urwick had remarked that Ơ business houses are made or broken in the long-
run not by markets or capital, patents, or equipments, but by menơ. According to Peter F.
Drucker , Ơ man, of all the resources available to man, can grow and develop.ơ

Besides being living being, human resources differ from non-human resources in other
respects also. Human resources are heterogeneous in the sense that they differ in personality,
perception, emotions, values, attitudes, motives and modes of thoughts. Their behaviour to
stimuli is often inconsistent and unpredictable. While other resources depreciate, human
resources appreciate with the passage of time. Better educated, more skilled, better aware of
their interest and rights are also some distinguishing features of modern human resources.
These make it difficult for managers to use human resources always in an effective and efficient
and efficient manner. Given the highly competitive and complex business environment,
attracting and retaining qualified and competent employees have become a real challenge of the
day for the managers. The Ɲrule of thumbƞ has become obsolete and redundant. The need of the
new perspective is to have right people for right jobs. This mantra offers organizations an edge,
which management experts term as Ɲcompetitive advantageƞ or Ɲcore competencyƞ to survive and
thrive in the competitive business environment. The same gives genesis to the concept of HRM
in business organizations.

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The main objective of this chapter is to present a perspective for human resource
management in the Indian context. Accordingly, the meaning, objectives, scope and functions
become the subject matter of this chapter. The chapter sets tone for discussion in the
subsequent chapters of the book.

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ccccc In common parlance, Human Resources mean the people. Human Resource
Management [  is a management function that helps managerƞs recruit, select, train and
develops members for an organization. Obviously, HRM is concerned with the peopleƞs
dimension in organization. Human resource management as, it is process of stresses mutually
between employers and employees.

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c   a whole consisting of inter-related, inter-dependent and
interacting physiological, psychological, sociological and ethical components.ơ

cc Personal management is the planning, organizing, directing, and controlling of the
procurement, development, compensation, integration, maintenance, and separation of human
resources to the end that individual, organizational and societal objectives are accomplishedc

cccccccccccƦa series of integrated decisions that form the employment relationship; their quality
contributes to the ability of the organizations and the employees to achieve their objective.c

ccccccccƦ.is concerned with the people dimension in management. Since every organization is
made up of people, acquiring their services, developing their skills, motivating them to higher
levels of performance and ensuring that they continue to maintain their commitment to the

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organization are essential to achieving organizational objectives. This is true, regardless of the
type of organizationƜgovernment, business, education, health, recreation, or social action.c

cccccccƦ.management is the planning, organizing, directing and controlling of the procurement,


development, compensation, integration, maintenance and separation of human resources to
the end that individual, organizational, and social objectives are accomplished.

Thus, HRM refers to a set of programmes, functions and activities designed and carried
out in order to maximize both employee as well as organizational effectiveness.


   
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The scope of HRM is indeed vast. All major activities in the Working life of a workerƜ
from the time of his or her entry into an organization until he or she leaves-come under the
purview of HRM. Specifically, the activities included are ƛ HR planning, job analysis and
design, recruitment and selection, orientation and placement, training and development,
performance appraisal and job evaluation, employee and executive remuneration, motivation
and communication, welfare, safety and health, industrial relations (IR) and the like. For the
sake of convenience, we can categorize all these functions into seven sectionsƜ

×c Introduction to HRM.
×c *mployee hiring.
×c *mployee and executive remuneration.
×c *mployee motivation.
×c *mployee maintenance.
×c Industrial Relations
×c Prospects of HRM

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The primary objective of HRM is to ensure the availability of a competent and willing
workforce to an organization. Beyond this, there are other objectives, too. Specifically, HRM
objectives are four foldƜsocietal, organizational, functional and personal.

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To be ethically and socially responsible to the needs and challenges of the society
while minimizing the negative impact of such demands upon the organization.

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To recognize the role of HRM in bringing about organizational effectiveness HRM is not
an end in itself. It is only a means to assist the organization with its primary objectives. Simply
stated, the department exists to serve the rest of the organization.

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To maintain the departmentƞs contribution at a level appropriate to the organizationƞs


needs resource are wasted when HRM is either more or less sophisticated to suit the
organization demands. The departmentƞs level of service must be tailored to fit the
organization it services.


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To assist employees in achieving their personal goals, at least insofar as these goals
enhance the individual contribution to the organization. Personal objectives of employees must
be met if workers are to be maintained retained and motivated. Otherwise, employee
performance and satisfaction may decline and employee may leave the organization.

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±c HRM is concerned with development of human resources.
±c It is central subsystem permitting all functions of management.
±c It covers all levels and categories.
±c It is concerned with behavioral, emotional and social aspects of personnel.
±c It applies to all organizations in the universe.
±c It is a strategic management function aimed at achieving common goals.
±c It is a continuous and never ending process.

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HRM functions can be broadly classified into two categories

1)c Managerial functions


2)c Operative functions

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cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc‘ Planningc

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ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccü cDirecting

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 † Co-ordination

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cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc Controllingc c c c

c ‘ *mploymentc . Human
Resource Planningccccccc

c ccccccccccccccccccccccccccccccccccccC. Recruitment

D. Selection

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cc F. Induction & Orientation

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c c A. Performance

2. Human Appraisal

Resource B. Training

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Developmentc

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D. Career

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3. Compensation Developmentc

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*valuation Mobility

(b) Wages & (b) Transfer

Salary (c) Promotion

(c) Incentives (d) Demotion

(d) Bonus

(e) Fringe *. Organization

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Managerial functions of the human resource department are planning, organizing,


staffing, directing and controlling. All these functions have an impact on the operative functions.

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cccccccccccPlanning involves formulating the future course of action. Planning includes determining
in advance the personnel programs and changes required that would contribute to the
achievement of organizational goals. It also includes identifying human resource requirements
and forecasting personnel needs, foreseeing the changes in the employee attitude and evolving
effective ways of handling these changes.

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Organizing involves establishing an intentional structure of roles for people in an


organization. Structural considerations such as the chain of command, division of labour and
assignment of responsibility are part of the organizing function. Careful organizing ensures
effective use of human resources. According to J.L.Massie, an organization is a Ơstructure and a
process by which a corporate group of human beings allocate its task among its members,
identifies relationships and integrates its activities towards a common ƛobjective.ơ The
organizing function establishes relationships among employees so that can contribute
collectively towards of the attainment of the organizationƞs goals.

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cccccccccccccThe next logical function after completing planning and organizing is the execution of
the plan the basic function of personnel management at any levels motivating, commanding,
leading and activating people is possible through proper direction tapping the maximum
potentialities of the people is possible through motivation and command. Thus, direction is an
important managerial function in building sound industrial and human relations besides securing
employee contributions. Co-ordination deals with the task of blending efforts in order to ensure
successfully attainment of an objective. The personnel manager has to co-ordinate various
management at different levels as for as personnel functions are concern. Personnel

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management function should also be co-ordinate with other functions of management like
management of material, machines, and money.

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After planning, organizing and directing the various activates of the personnel
management, the performance is to be verified in order to know that the personnel functions
are performed in conformity with the plans and directions. Controlling also involves
checking, verifying and comparing of the actual with the plans, identifications of deviations if
any and correcting of identified deviations. Thus, action and operation are adjusted to
predetermine plans and standard through control. Auditing training programmers, analyzing
labor turnover records, directing moral surveys, conducting separations interviews are some of
the means for controlling the personnel management function.

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The operative functions of personnel management are related to specific activates of


personnel management viz., procurement, development, compensation and relations. All these
functions, further these functions are to be performed in conjunction with management
functions.

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It is the first operative function of Human Resource Management (HRM). *mployment


is concerned with securing and employing the people possessing required kind and level of
human resources necessary to achieve the organizational objectives. It covers the functions
such as job analysis, human resource planning, recruitment, selection, placement, induction and
internal mobility.

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It is the process of study and collection of information relating to the operations and
responsibilities of a specific job. It is the first operative function of human resources necessary
to achieve the organizational objectives. It covers the functions such as job analysis, human
resources planning, recruitment, selection, placement, induction and internal mobility.

It includes:

a)c Collection of data, information, facts and ideas relating to various aspects of jobs
including men, machines and materials.

b)c Preparation of job description job specification job requirement and employees
specifications which will help in identifying the nature, levels and quantum of human
resources.

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c)c Providing the guides, plans and basis for job design and for all operative functions of
HRM.
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It is a process for determination and assuring that the organization will have an
adequate number of qualified persons available at proper times, performing jobs which would
meet the needs of the organization and which would provide satisfaction for the individuals
involved. It involves

Ñc *stimation of present and future requirement and supply of human resources


basing on objectives and long range plans of organization.

Ñc Calculation of net human resources requirement based on present inventory of


human resources.

Ñc Taking steps to mould change and develop the strength of existing employees in
the organization so as to meet the future human resources requirements.

Ñc Predation of action programmes to get the rest of human resources from outside
the organization and to development the human resources of existing
employees.
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It is the process of searching for prospective employees and stimulating them to apply for
jobs in an organization. It deals with

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±c Identification of existing sources of applicants and developing them.
±c Creation or identification of new sources of applicants.
±c Stimulating the candidates to apply for jobs in the organization.
±c Striking a balance between internal and external sources.
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It is the process of ascertaining the qualifications, experience, skill, knowledge etc; of an


applicant with a view to appraising his or her suitability to a job appraising. This function
includes:

±c Framing and developing application blanks


±c Creating and developing valid and reliable testing techniques
±c Formulating interviewing techniques
±c Checking of references
±c Setting up medical examination policy and procedure
±c Line managerƞs decision.
±c Sending letters of appointment and rejection.
±c *mploying the selected candidates who report for duty.

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It is the process of assigning the selected candidate with the most suitable job in terms
of job requirements. It is the matching of employee specifications with job requirements. This
function includes:

×c Counseling the functional managers regarding the placements.


×c Conducting follow-up study, appraising employee performance in order to order
to determine employee adjustment with the job.
×c Correcting misplacements, if any.

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Induction are the techniques by which a new employee is rehabilitated in the changed
surrounding and introduced to the practiced, purpose and people etc; of the organization.

ëc Acquaint the employee with the company philosophy, objectives, policies,


career planning and development, opportunities, product, market share,
social and community standing, company history, culture etc
ëc Introduce the employee to the people with whom he has to work such as
peers, supervisors and subordinates.
ëc Mould the employee attitude by orienting him to the new working and social
environment.

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It is the process of improving, moulding and changing the skills, knowledge, creative
ability, aptitude, attitude, values, commitment etc., based on present and future job and
organizational requirements.

The function includes:

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It is the systematic evaluation of individuals with respect to their performance on the job
and their potential for development. It includes:

ëc Developing policies, procedure and techniques.


ëc Helping the functional managers.
ëc Reviewing of reports and consolidation of reports.
ëc *valuating the effectiveness of various programmer.
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It is the process of imparting the employees the technical and operating skills and
knowledge. It includes:

ëc Identification of training needs of the individuals and the company.


ëc Developing suitable training programmes.
ëc Helping and advising line management in the conduct of training programmes.
ëc Imparting of requisite job skills and knowledge to employees.
ëc *valuating the effectiveness of training programmes

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It is the process of designing and conducting suitable executive development


programmes so as to develop the managerial and human relation skill of employees. It
includes:

ëc Identification of the areas in which management development is needed.


ëc Conducting development programmes.
ëc Motivating the executives.

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ëc Designing special development programme for promotions.
ëc Using the services of specialists, and/or utilizing of the institutional executive
development programmes.
ëc *valuating the effectiveness of executive development programmes.

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It is the planning of oneƞs career and implementation of career plans by means of


education, training, job search and acquisition of work experiences. It includes internal and
external mobility.

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It includes vertical and horizontal movement of an employee within an organization. It


consists of transfer, promotion and demotion.

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It is the process of placing employees in the same level jobs where they can be utilized
more effectively in consistence with their potentialities and needs of the employees and the
organization, it also deals with:

±c Developing transfer policies and procedures.


±c Guiding employees and line management on transfer.
±c *valuating the execution of transfer policies and procedures.

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It deals with upward reassignment given to an employee in the organization to occupy


higher position which commands better status and/or pay keeping in view the human
resources of the employees and the job requirements.

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±c This function covers the formulating of equitable, fair and consistent


promotion policies and procedures.

±c Advising line management and employees on matters relating to


promotion.

±c *valuating the execution of promotion policies and procedures.

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It deals with reassignment to an employee in the organization: Develop

equitable, fair and consistent demotion policies and procedures. Advising line
managers on matters relating to demotions. Oversee the implementation of demotion policies
and procedures.


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It is a planned process designed to improve organization effectiveness and health


through modifications in individual and group bejavior, culture and systems of the
organization using knowledge and technology of applied behavioral science.

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It is process of providing adequate, equitable and fair remuneration to the employees. It


includes job evaluation, wage and salary administration, incentive, bonus, fringe benefits,
social security measures etc.

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it is the process of determining relative worth of jobs.

±c Select suitable job evaluation techniques.


±c Classify jobs into various categories.
±c Determining relative value of jobs in various categories.

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This is the process of developing and operating a suitable wage and salary programme.
It covers:

±c Conducting wage and salary survey.


±c Determining wage and salary rates based on various factors.
±c Administering wage and salary programmes.

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it is process of formulating, administering and reviewing the schemes of financial


incentives in addition to regular payment of wages and salary. It includes:

±c Formulating incentive payment schemes.


±c Helping functional managers on the operation.
±c Review them periodically to evaluate effectiveness.

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it includes payment of statutory bonus according to the Payment of Bonus Act, 1965,
and its latest amendments.

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these are the various benefits at the fringe of the wage management provides these
benefits to motivate the employees and to meet their lifeƞs contingencies. These benefits
include:

±c Disablement benefit.
±c Housing facilities.
±c *ducational facilities to employees and children.
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Managements provide social security to their employees in addition to the fringe
benefits. These measures include:

±c Workmenƞs compensation to those workers (or the dependents) who involve in


accidents.
±c Maternity benefits to women employees.
±c Sickness benefits and medical benefits.

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It is the process of interaction among human being. Human relations is an area of


management in integrating people into work situation in a way that motivates them to work

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together productively, co-operatively and with economic, psychological and social satisfaction.
It includes:

±c Motivating the employees.


±c Boosting employee morale.
±c Developing the communication skills.

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*ffectiveness of various personnel programmes and practices can be measured or


evaluated by means of organizational health and human resources accounting etc.

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organizational health may be studied through the result of employeeƞs contribution to


the organization and the employee job satisfaction.

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*ffectiveness of human resource management can also be found out through human
resource accounting, audit and research.

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It is a measurement of the cost and value of human resources to the organization.

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Human resource audit refers to an examination and evaluation of policies, procedure


and practices to determine the effectiveness of HRM. Personnel audit:

(a) Measures the effectiveness of personnel programmes and practices, and

(b) Determines what should or should not be done in future.

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It is the process of evaluating the effectiveness of human resources policies and


practices and developing more appropriate ones. It includes:

±c Report writing and submission to the lie managers.


±c Finding out of defects and shortcoming in the existing policies, practices etc.
±c Developing of more appropriate policies, procedures, programmes of personnel.

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We follow the model for discussing the subject HRM in this book. The model contains all
HR activities. When these activities are discharged effectively, they will result in a competent
and willing workforce who will help realize organizational goals. There is another variable in
the modelƜenvironment. It may be stated that the HR function does not operate in vacuum.

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Human resource management is a relative title for all aspects of managing people in an
organization. It represents a broad based understanding of the problems of people and their
management in view of the development of behavioral science knowledge.

Generally people posseƞs skills, abilities and aptitudes that offer competitive advantage to firm.
HRM is study about people in organizations- how they are hired, trained, compensated,
motivated and maintained. HRM function can be seen as the amalgam of organizational
behavior, personal management, industrial relations and labour legislation as seen in the figure.

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It is a field of study that tries to examine why people behave the way they do. It focuses
on the behavior of the employees at the levels of an individual, group and total organization.
Such topics as motivation, job satisfaction, communication, supervision, inter and intra group
behavior, organizational development etc are examined to develop sensitivity to human factors
in organization.cccc

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It studies policy formulation and implementation no such issues as human resource


planning, recruitment, and selection, training and development performance and potential
appraisal, promotions, quality of work life, compensation management.

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*ssentially, IR is concerned with the relationship between management and worker


and the role of regulatory mechanism in resoling any industrial dispute. A formal definition is
Ơconcerned with the systems, rules and procedures used by union and employers to determine
the rewards for efforts and other conditions of employment, to protect the interest of the
employed and their employers and regulate the ways in which employers treat the
employersơ. Specifically, IR covers the following areas Collective bargaining.

ëc Role of management, union and government

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ëc Machinery for resolution of industrial disputes
ëc Individual grievance and diplomacy and practice.
ëc Labour legislations
ëc Industrial relations training.

Another related tern is Ɲemployee relationsƞ or,ƞ human relationsƞ. The term is more
comprehensive and includes all the aspects of harms where employees are death with
collectively

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The Krishna District Milk Producerƞs Mutually Aided Co-operative Union Limited Ltd
believes in a result oriented performance culture through effective goal setting and ongoing
feed back on performance. Appraisal systems have been an integrated management tool for
appraising human resources. The appraisal systems have been an integrated management
tool for appraising human resources. The appraisal system is being accountable for the results
that are achieved, exercising responsibility in the use of resources entrusted and recognizing
the importance of every role in achieving organizational success.

The Krishna District Milk Producerƞs Mutually Aided Co-operative Union Limited Ltd
also believes organizational development through human resource department on continuous
also believes organizational development through human resource department on continuous
basis. Recognizing the talent and tuning the same to perform at optimum is primary objective
as it not only help the organization but also the individual as well recruiting training and
development have been given the highest priority. *mployee welfare has always been the

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upper most concern of the organization in all. The trust is on practicing the best HR practices
in the organization.

The HR polices are to ensure uniformity, discipline and orderliness in the


organization. *mployees shall abide by their polices and produces in order to maintain the
same. Polices are general instructions whereas procedures are called action guidelines. These
procedures are generally derived from the polices, Vijai *lectricals Ltd is also doing the same.

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In The Krishna District Milk Producerƞs Mutually Aided Co-operative Union Limited
human resource management philosophy is productivity linked welfare of the employees. The
Krishna District Milk Producerƞs Mutually Aided Co-operative Union Limited would like to
become a leader in the market in terms of profit making and welfare of employees.

The organization regards human resource as important asset and believes in


harnessing human potential to the optimum in lasting with the group. HRD consists of
certain objectives along with its policy and philosophy.


 
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The study conducted to study the recruitment and selection procedure and policies
followed in The Krishna District Milk Producerƞs Mutually Aided Co-operative Union Limited
Vijayawada. The main focus was to know the various aspects influencing the policies and
procedures of recruitment and selection process followed by the company. A detailed study
has made of the proceedings and policy formulation of the recruitment and selection program.
A questionnaire has been administrated to 50 employees working in the company.

 
,

In order to meet the global competitions. It is every bodyƞs concern to think and act in
order to maintain a quality. It is the need of the hours in a high quality conscious world. Only
people quality can produce a product of quality. To have a Ơqualityơ people at hand there must
be quality training through it, any person can develop to a great extent his skill in work his
general out look, his attitude, a sense of commitment and so on. To accomplish that the
training and development is of at most important and has to be a continues effort for
achieving the targeted production and productivity.

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The study is important because it is going to inform the management of The Krishna
District Milk Producerƞs Mutually Aided Co-operative Union Limited about areas causing among
the workers. Since the study is going to offer some imp suggestions for the betterment of the
well being of the workers of # c 0å "c ?å# #c &0c ?$ 1åc $#$"&&c
"??c ."#'c$  c&#?c. It is important from the point given. The study
is also significant because employees are going to be immensely benefited.

In additional to the above, the study has much significance from the employee
productivity of the entire organization # c 0å "c ?å# #c &0c ?$ 1åc
$#$"&&c"??c ."#'c$  c&#?.'-"ccFrom the above points, it can
be noted that the present study is very much important and more useful from the organization
and from the employeeƞs point of view too.


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Objectives of the study are to find out the effective ness of



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."#'c$  c&#?c.c''"")"?" besides this a few other objectives are:
The following are the objectives of study:

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c To provide with reasonable suggestions in using innovative recruiting program
techniques.
c To find the need for recruitment and selection programs at # c0å "c
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c To evaluate the methods of recruiting programs prevailing inc# c0å "c
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c To study the effectiveness of each selection process.
c To know the importance of various selection process adopted by the company.
c To suggest the appropriate measures if required.



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The first and foremost step in the research process consists of problem identification.
Once the problem is defined, the next step is the research design becomes easier. The
research design is the basic frame work, which provides guideline for the rest of the research
process. The research design specifies the methods of data collection and analysis.

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ëc Defining the objectives of the study.


ëc Collection of primary data.
ëc Collection of secondary data.
ëc Sampling procedure.
ëc Analysis of data.

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This is concern with the study of training and development inc# c0å "c?å# #c
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The universe of the investigation is the employees in # c0å "c?å# #c&0c


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Primary data is the data, which has to be collected by the concerned person with
relevant to his problem chosen. It is original in nature. Communication and observation are
the two basic means used for collecting primary data. Communication involves questioning the
respondents to secure the desired information by using data collection instrument called
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±c Method Questionnaire Method


±c Observation Method
±c Interview
±c Schedule Method

The primary data required for my project work is collection through Questionnaire method
involving the employees of The Krishna District Milk Producerƞs Mutually Aided Co-operative
Union Limited, at VIJAYAWADA.


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It is the data, which already existed and has gone through various statistical analyses
in order to establish relations among variables in the data. The secondary data for my project
work was collected from

Pc Journals
Pc Profile book lets
Pc Web sites, Academic Text books, Company vision and mission statements.
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From the company profile the data collection was about the company i.e. about TH*
KRISHNA DISTRICT MILK PRODUC*RƞS MUTUALLY AID*D CO-OP*RATIV* UNION LIMIT*D,
and its units in VIJAYAWADA.

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The data collected from web sites was about the electrical transformers industries in
India, Recruitment and Selection and about company i.e. Vijai *lectricals Ltd., the web sites
used for projects are


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(*xecutives, Sr.Managers, and Jr.Managers, supervisors, workers)

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The sample size consists ofc  employees of The Krishna District Milk Producerƞs
Mutually Aided Co-operative Union Limited, VIJAYAWADA, KRISHNA DISTRICT, ANDHRA
PRAD*SH.

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Sampling element are the employees and workers in different departments in Vijai
unrestricted, simple random sample is the purest form of probability sampling. Since all
probability samples must provide a known non zero probability of selection for each population
element the simple random sample is considered a special case in which each population
element has a known and equal chance of selection. )

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In this technique the population is divided into sub-groups and a sample random is
selected with in each sub-group. Since there is a limited period of time i.e. 60 days couldnƞt
make study on all employees hence adopted simple random sampling.

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,

ëc For the study of project the following limitations were experienced.

ëc The sample size being selected to be only 50 employees due to the time constraint.

ëc The response given by the employees at the time of information collection may be
biased.

ëc Since the sample in random the result may not be accurate.

ëc The analysis is carried out using averages, which in turn may not reflect the view
points of individual respondent.

ëc Time period is very short that is of 2 months.

ëc The accuracy of analysis is largely depends on the quality of the data collected
from the employees of The Krishna District Milk Producerƞs Mutually Aided Co-
operative Union Limited, VIJAYAWADA,

ëc Simple random sampling technique used in this study.


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