INTRODUCTION

: In the present business environment, the need for an Employee Relationship

Management System within the enterprise is critical today and the reason behind this the
growing size of the organizations. This system helps the organization to strategize the
overall growth of the organization which includes the growth of every individual in the
organization. ERM is not a product, or a technology rather it is an approach or a
blueprint that aims to bring conversation into newer avenues within an organization.
Today most of the organizations focus on technology for improving employee
relationships such as HR system, Salary disbursal system, HRIS, Performance
Management, electronic mail for improving communication, training and development
program etc. These technologies have enhances efficiency rather than relationships. If
the management does not adopt employee centered values, the aforesaid technologies
can result in spreading negative and low morale rather than having a positive impact on
attitude and morale of the employees. ERM tools abolishes the dependency on control
systems and hierarchical command while introducing more of a self organized culture of
employees that is inter-networked to cooperate on the points of need. Employee relations
have become the driving force of competitive organizations in the global business
environment. Maintaining good interrelationships among various stakeholders is the
critical aspect that determines organizational performance

Employees are among an organization's most important resources and coined as most
valuable assets. It involves maintaining a work environment that satisfies the needs of
individual employees and management. Improving employee morale, building company
culture, conveying expectations. An effective employee relation involves creating and
cultivating a motivated and productive workforce. This study emphasizes on
INTRODUCTION TO PROJECT TOPIC
Every individual shares a certain relationship with his colleagues at the workplace. The
relationship is either warm, so-so or bad. The relationship can be between anyone in the
organization - between co workers, between an employee and his superior, between two
members in the management and so on. It is important that the employees share a
healthy relationship with each other to deliver their best performances.
An individual spends his maximum time at the workplace and his fellow workers are the
ones with whom he spends the maximum hours in a day. No way can he afford to fight
with his colleagues. Conflicts and misunderstandings only add to tensions and in turn
decrease the productivity of the individual. One needs to discuss so many things at work
and needs the advice and suggestions of all to reach to a solution which would benefit
the individual as well as the organization.
No individual can work alone. He needs the support and guidance of his fellow workers
to come out with a brilliant idea and deliver his level best
Happy employees are productive employees. Successful businesses know how to
manage relationships to build lasting employee satisfaction.
The most important part of any business is its people. No business can run effectively
without them. they need to communicate and work with others to get their jobs done.
Employers need to manage relationships in the workplace to keep the business
functioning smoothly, avoid problems, and make sure employees are performing at their
best.
Importance of Employee Relations - Why Employee Relations at Workplace?

 There are several issues on which an individual cannot take decisions alone.

He needs the guidance and advice of others as well. Sometimes we might miss
out on important points, but our fellow workers may come out with a brilliant idea
which would help us to achieve our targets at a much faster rate. Before
implementing any plan, the pros and cons must be evaluated on an open forum
where every employee has the right to express his opinions freely. On your own,
you will never come to know where you are going wrong, you need people who
can act as critic and correct you wherever you are wrong. If you do not enjoy a
good relation with others no one will ever come to help you.

 Work becomes easy if it is shared among all.

A healthy relation with your fellow workers would ease the work load on you and
in turn increases your productivity. One cannot do everything on his own.
Responsibilities must be divided among team members to accomplish the assigned
tasks within the stipulated time frame. If you have a good rapport with your
colleagues, he will always be eager to assist you in your assignments making your
work easier.
  The organization becomes a happy place to work if the employees work
together as a family.

An individual tends to lose focus and concentration if his mind is always clouded
with unnecessary tensions and stress. It has been observed that if people talk and
discuss things with each other, tensions automatically evaporate and one feels
better. Learn to trust others, you will feel relaxed. One doesn’t feel like going to
office if he is not in talking terms with the person sitting next to him. An
individual spends around 8-9 hours in a day at his workplace and practically it is
not possible that one works non stop without a break. You should have people
with whom you can share your lunch, discuss movies or go out for a stroll once in
a while. If you fight with everyone, no one will speak to you and you will be left
all alone. It is important to respect others to expect the same from them.

 An individual feels motivated in the company of others whom he can trust

and fall back on whenever needed.

One feels secure and confident and thus delivers his best. It is okay if you share
your secrets with your colleagues but you should know where to draw the line. A
sense of trust is important.

 Healthy employee relations also discourage conflicts and fights among

individuals.

People tend to adjust more and stop finding faults in each other. Individuals don’t
waste their time in meaningless conflicts and disputes, rather concentrate on their
work and strive hard to perform better. They start treating each other as friends
and try their level best to compromise and make everyone happy.

 A healthy employee relation reduces the problem of absenteeism at the work

place.

Individuals are more serious towards their work and feel like coming to office
daily. They do not take frequent leaves and start enjoying their work. Employees
stop complaining against each other and give their best

 It is wise to share a warm relation with your fellow workers, because you
never know when you need them.

You may need them any time. They would come to your help only when you are
nice to them. You might need leaves for some personal reasons; you must have a
trusted colleague who can handle the work on your behalf. Moreover healthy
employee relations also spread positivity around.

It is essential that employees are comfortable with each other for better focus and
concentration, lesser conflicts and increased productivity.
Employees are among an organization's most important resources and coined as most
valuable assets. The nature and amount of work performed by them have a direct impact
on the productivity of an organization. So maintaining healthy employee relations in an
organization is a pre-requisite for any organization in order to achieve growth and
success. According to CIPD (Chartered Institute of Personnel & Development)
Employee relations is a broad term that incorporates many issues from collective
bargaining, negotiations, employment legislation to more recent considerations such as
work-life balance, equal opportunities and managing diversity. It comprises of the
practices or initiatives for ensuring that Employees are happy and are productive.
Employee Relations offers assistance in a variety of ways including employee
recognition, policy development and interpretation, and all types of problem solving and
dispute resolution. It involves handling the pay–work bargain, dealing with employment
practices, terms and conditions of employment, issues arising from employment,
providing employees with a voice and communicating with employees. Employee
relations is concerned with maintaining employee-employer relation, which contributes
to satisfactory productivity, increase in employee morale and motivation Once there was
a time when "Employee Relations" meant labor relations that fragmented into Negotiate.
Orchestrate. Dictate. HR professionals helped negotiate collective bargaining agreements.
The provisions of the contract defined the relationship between management, unions,
and workers. Today, Employee Relations is a much broader concept. It involves
maintaining a work environment that satisfies the needs of individual employees and
management. Improving employee morale, building company culture, conveying
expectations. An effective employee relation involves creating and cultivating a
motivated and productive workforce. It’s necessary to keep the dynamics of employer-
employee relationship in mind. It covers all the relations between employers and
employees in industry. Employee relations also includes giving scope for employee
participation in management decisions, communications, policies for improving
cooperation and control of grievances and minimization of conflicts. People are
generally motivated from within, but HR and organization focus should be on what they
can do to help foster the type of environment where employees thrive to give their best
performance. Motivated employees have higher level of work engagement, reduced
turnover and better performance as compared to disengaged employees. Since the
organization success is directly linked with the performance of its employees the
companies maintaining strong employee relations initiatives will benefit because their
workforce is highly motivated to put their best efforts. Hence managing these
relationships becomes important for business success, as strong and healthy relationships
can lead to greater employee happiness and even increased productivity.

Management

Management is a mental process. Management as the process of coordinating total

resources of an organization towards the accomplishment of desired goals of that
organization through the execution of a group of inter-related functions such as planning,
organization, staffing, directing and controlling. Management is nothing but a technique
which brings people together on common platform and guides them so that they achieve
their desired targets without fighting with each other. In a Layman’s language,
management is nothing but managing things effectively so that tasks are accomplished
without any hassles and confusions. Management is required everywhere. 3. Employee
Relationship Management (ERM) ERM refers to managing the relation between the
various employees in an organization. The relationship can be between employee and the
employer as well as between employees at the same level; ERM is an art which
effectively monitors and manages the relation between individuals either of the same
team or from different teams. ERM activity helps in strengthening the union among the
employees and ensures that each one is contented and enjoys a healthy relation with each
other. ERM includes various activities undertaken by the superiors or the management to
develop a healthy relation among the employees and extract the best out of each team
member
 SPINNING INDUSTRY - AN OVERVIEW

2.1 INTRODUCTION

The present chapter discusses the origin of spinning mills, growth of textile mills, growth of
spinning mills composite mills in India, textile industries in India, production of yarn by
spinning industries, spinning industry in India in general and spinning mills in Tamilnadu in
particular. The growth of spinning mills, installed capacity, production of yarn by spinning
mills, workers on rolls, closure of mills, consequences of closure of mills in India and the
like are also discussed.

India is one of the biggest producer and consumer of cotton in the world. With the
introduction of cotton and better crop management practices, the average cotton yield has
increased from 300 kg/hectare to 550 kg/hectare 81. About 90% of cotton growing area is
now occupied with cotton. Cottons show higher micro naire and lower level of trash than
their non-counterparts82.

Cotton farmers grow more of long staple variety and hence there is shortage in availability
of short staple and extra long staple cottons83. Most of the imports are Extra Long Staple
(ELS) and cotton from the U.S., Egypt, and West Africa84. The quality of fibre produced is
also of major concern. Indian cotton lacks the tenacity and colour of imported cotton
varieties. The short fibre content is also high.

The minimum support price set by the government was often found inadequate by the
farmers as their cost of cultivation has gone high due to increase in input costs. Adding to
this are the problems of irregular rainfall,

volatility in market and poor supply chain. Cotton farmers expect cotton to be exported as
much as possible, whereas the spinning mills expect sufficient availability of cotton in the
domestic market to meet cotton yarn demands and to keep yarn prices stable. About 60 per
cent of domestic cotton is consumed by the Indian spinning industry85. The new spinning
systems like air-vortex system has stringent fibre requirements for trouble free processing
and higher yarn quality.

2.2 TEXTILE INDUSTRY IN INDIA

India is the largest exporter of yarn in the international market and has a share of 25 per cent
in world cotton yarn export market. India contributes for 12 per cent of the world’s
production of textile fibers and yarn. Indian textile industry is second largest after China, in
terms of spindleage, and has share of 23 per cent of the world’s spindle capacity. India has
around 6 per cent of global rotor capacity. The country has the highest loom capacity,
including handlooms, and has a share of 61 per cent in world loomage. The Apparel Industry
is one of largest foreign revenue contributor and holds 12 per cent of the country’s total
export.

The textile industry in India has a complex and varied structure. At one end of the spectrum
in the traditional hand spun, hand woven sector located mostly in rural areas and on the other
is the largely urban based sophisticated capital – intensive, high speed machine sector. There
is also a sprawled fast growing intermediate segment consisting of decentralized small scale
power loom units dispersed mostly in rural and semi urban areas all over the country.
Besides the garment industry has made phenomenal growth and has blazed a new in exports.
Hosiery industry, which was earlier, confined to a few urban or semi urban centres are also
making rapid progress and are spreadity in almost

all the states. The textile industry consists of composite mills, spinning mills, power loom, and
hosiery industry.

2.3 COMPOSITE MILLS IN INDIA

The composite mill sector has been stagnating almost since independence. The total number
of composite mills which 276 in 1950-51. Rise marginally to 291 by the year 1970-71. After
which it started declining to 266 in 1993-94 since then it has again marginally to 276 in
2002-03. After which it started again declining to 198 in 2012-13. The weaving capacity of
the organized mills sector stagnated for a number of years, largely because the government
policy permitted only a marginal expansion in the weaving capacity of the organized mill
sector. Even with the removal of the restrictions on the creation of capacities, as mentioned
in the textile policy of June 1985, the weaving capacity has been consistently declining since
1987-88. Thus between 1980-81 and 1999-2000, the weaving capacity has declined nearly
by 41 per cent. But after 1999-2000, the weaving capacity has been inconsistently declining
to 184 in 2009-10 from the year 1999-00 it started slowly growing up to 209 in 2002-03. But
after that year that weaving capacity was going up and down position to the year 2009-10
(184). 86

2.4 SPINNING MILLS IN INDIA

Indian spinning industry is one of the biggest in the world with around 50 million spindles.
Installed capacity of rotors in the country is around 8 lakh. India has the second highest
spindleage after China and contributes to about 25 per cent share in world trade of cotton
yarn. Cotton continues to be the predominant fibre consumed by the textile industry. Cotton
textiles contribute to over 60 per cent of Indian textile exports. India is biggest yarn exporter
in world and mainly exports to China, Korea Republic, Bangladesh, Egypt, Taiwan, Hong
Kong, Turkey, Japan, Israel, European Union and Mauritius. India produces yarn of wide
range of counts, which varies from two to 120s Ne and mainly dominated by cotton yarn.
Other than 100 per cent cotton yarn, cotton is spun with other fibres to produce blended
yarns. Some of the major blended yarns exported from this country are polyester/cotton,
cotton/viscose and acrylic/cotton87.

The spinning mills were set up primarily in the state of Tamil Nadu, Maharashtra, A.P,
Haryana, Punjab- U.P, and Gujarat. In Tamil Nadu itself, the management pattern of the
spinning mills in 2000-01 to 2012-13 was much better growth than 1990s. a majority of the
spinning mills, about 87 per cent to the total, are still in the private sector while 9 per cent of
the mills are in the co. operative sector and 4 percent in the public sector(central and state).
Capacity wise, the private sector mills account for over about 83 per cent of the spindle
capacity, 97 per cent of rotors, and 66 per cent of Looms, while the remaining 17 per cent of
the spindle capacity, 3 percent of the rotor capacity and 34 per cent of the Loom capacity are
shared by the public and the co-operative sectors together.88

2.4.1 Small Scale Spinning Mills

In addition to the spinning and composite mills in the organized sector, of late, large number
of small scale spinning mills (the spinning mills having 6000 or less spindles are termed as
small scale spinning mills) have come up, Particularly in Tamil Nadu in and around
Coimbatore. There were 1035 SSI with an installed capacity of 4286451 spindles and
130480 rotors in 2012-13. It has provided employment to 41122 persons.

2.4.2 Cotton Textile Mills in India

The textile industry has an important role to play both in the economic prosperity of the
country and both in the supply of an essential commodity for the entire population. The
textile industry in India includes both cotton and non cotton textiles (synthetic).

The number of Cotton textile industries in India during 2000-01 to 2012-13 is shown in Table
2.1
 TABLE 2.1

GROWTH OF COTTON TEXTILE MILLS IN INDIA

Type Spinning Spinning

Composite Total
Year SSI Non SSI

2000-01 996 1565 281 2842

2001-02 1046 1579 281 2906
2002-03 1146 1599 276 3021
2003-04 1135 1564 223 2922
2004-05 1161 1566 223 2950
2005-06 1173 1570 210 2953
2006-07 1236 1608 200 3044
2007-08 1219 1597 176 2992
2008-09 1247 1653 177 3077
2009-10 1260 1673 180 3113
2010-11 1333 1757 183 3273
2011-12 1336 1761 196 3293
2012-13 1340 1771 198 3309

Source: Official Indian Textiles Statistics.

Table 2.1 shows that the number of textile cotton mills had increased
from 2842 in 2000-01 to 3309 in 2012-13 the spinning mills (Non SSI) in India
have in from 1565 to in 2000-01 to 1771 in 2012-13. While, there was stagnation
in the growth of composite textile mills. The growth of cotton textile mills in
India was caused by the growth of the spinning mills alone. The rate of increase
in spinning mills from 2000-01 was 34.54 per cent in SSI and 13.16 per cent in
Non SSI. It indicates that there was a decrease in composite mills in India.43

FIGURE 2.1

GROWTH OF COTTON TEXTILE MILLS IN INDIA

2.4.3 Spinning Mills in Various States of India

The spinning mills are spread out in 16 states in India. They vary from
state to state. The maximum of spinning mills is situated in Tamil Nadu where as
the minimum is in Assam. The state wise distribution of spinning mills (Non SSI)
in India is shown in table 2.2

TABLE 2.2

STATE-WISE DISTRIBUTION OF SPINNING MILLS (NON SSI)

02- 03- 04- 05- 06- 07- 08- 09- 10- 11- 12-
State
03 04 05 06 07 08 09 10 11 12 13

Andra Pradesh 96 96 99 101 104 108 119 123 150 162 166

Assam 6 6 6 6 6 6. 6 5 5 5 5

Bihar 7 7 7 7 7 5 5 5 5 5 5

Chattisgarh 0 0 0 0 0 1 1 1 1 1 1

Gujarat 61 58 58 58 59 37 40 40 43 42 42

Haryana 78 77 76 76 66 66 66 66 69 69 69

Himasala Pradesh 16 48 47 47 47 18 18 18 16 16 16

Karnataka 49 - - - - 47 47 47 47 46 46

Kerala 34 - - - - 30 30 30 31 31 31

Mathya Pradesh 40 40 40 40 41 42 43 46 44 43 44

Maharashtra 131 130 130 130 136 126 128 133 153 153 154

Orissa 16 - - - - 16 15 15 15 15 15

Punjab 76 75 77 78 80 79 86 86 91 92 98

Rajasthan 45 43 44 45 46 47 48 48 51 50 49

Tamil Nadu 838 814 812 815 853 868 898 908 923 919 921

Uttara Pradesh 38 58 58 55 52 53 53 52 56 57 57

West Bengal 34 - - - - 21 21 21 23 23 23

Source: Official Indian Textiles Statistics

The number of spinning mills in Tamil Nadu (non SSI) increased from 838 in 2002-03 to
921 in 2012-13 where as in Maharashtra it increased from in 131 in 2002-03 to 154 in 2012-
13. The most dominating states in concentration of spinning mills in India (Non SSI) are
Tamilnadu, Maharashtra and A P where as the minimum is in Bihar and Assam, with 7 and 6
mills respectively during 2002-03. The higher rate of increase of spinning mills is seemed in
T.N. at 9.90 per cent during the period from 2002-03 to 2012-13.

2.4.4 Management-Wise Spinning Mills

In general cotton textile Mills are classified into public co-operative and private sector. The
public sector textile mills may be owned by central or state Government. Management-wise
distribution of Spinning Mills in different state as on 31-03-2013 was shown in Table 2.3
 45

TABLE 2.3

MANAGEMENT-WISE DISTRIBUTION OF SPINNING MILLS

Nature of Mgt Public sector

Co-op Private
Total
States Central State sector sector

AP 1 0 5 160 166
Assam 0 3 1 1 5
Bihar 0 0 3 1 4
Chhattisgarh 0 0 0 1 1
Delhi 0 0 0 0 0
Goa 0 0 0 1 1
Gujarat 0 0 0 41 41
Haryana 0 0 0 66 69
HP 0 0 0 16 16
J& K 0 0 0 2 2
Jharkhand 0 0 0 1 1
Karnataka 0 1 12 32 45
Kerala 4 8 5 14 31
MP 1 0 3 40 44
Maharashtra 7 1 87 59 154
Manipur 0 1 0 0 1
Orissa 1 1 6 7 15
Punjab 1 0 2 95 98
Rajasthan 3 0 3 43 49
 Tamilnadu 7 1 18 895 921
UP 2 1 11 33 57
Uttaranchal 0 2 0 6 8
WB 3 3 2 15 23
Union Territories 1 2 2 14 19

Source: Official Indian Textiles Statistics

Out of a total 1771 Spinning Mills as on 2012-13, 87.13 per cent was owned by the Private
sector and per cent 9.03 per cent belonged to the Co-operative, the remaining 3.84 per cent
of mills were owned by central and state Governments. In Tamil Nadu and in Gujarat the
private textile mills were 895, 61 respectively during 2012-13. The Co-operative mills were
87 in Maharashtra followed by 18 mills in T.N. the textile mills owned by the State
Government were more in U.P with 11 mills. In short, the spinning mills in India are
concentrated in three states namely Tamil Nadu (921) Maharashtra (154) A.P (166).

2.4.5 Installed Capacity

The spinning industry in India has been making steady and impressive progress during the
last few decades. This progress was considerable facilitated by the rapid strides made in
cotton production on the one hand and raising demand for yarn and textile both from
domestic and overseas markets on the other India has been able to make impressive headway
in recent years in the export of textile goods. The installed capacity of cotton textile mills
refers to the installation of spindle, rotor and looms. The installed capacity of cotton textile
mills in India during 2000-01 to 2012-13 is shown in 2.4.
 TABLE 2.4

INSTALLED CAPACITY OF COTTON TEXTILE MILLS IN INDIA

(NON-SSI)

Spindle Rotors Looms

Year
( in millions) (in lakhs) (in lakhs)

00-01 35.53 3.94 1.23

01-02 35.75 4.09 1.23
02-03 36.10 3.79 1.19
03-04 34.02 3.83 0.88
04-05 34.24 3.85 0.86
05-06 34.14 3.95 0.73
06-07 35.61 4.48 0.69
07-08 35.01 4.61 0.56
08-09 37.03 4.85 0.57
09-10 37.68 4.94 0.57
10-11 42.69 5.18 0.57
11-12 43.31 5.23 0.52
12-13 44.17 5.46 0.52

Source: Official Indian Textiles Statistics

The number of spindle in the textile mills increased from 35.53 million in 2000-01 to 44.17
millions in 2012-13. There is a gradual increase in the number of installed spindles during
the above period. The number of rotors increased from 3.94 lakhs in 2000-01 to 5.46 lakhs
in 2012-13. The looms decreased from 1.23 lakhs in 2000-01 to 0.52 lakhs in 2012-13.

FIGURE 2.2

INSTALLED CAPACITY OF COTTON TEXTILE MILLS IN INDIA

(NON-SSI)

2.4.6 Yarn Production by Spinning Mills

The production of the Spinning Mills is measured in terms of Million Kg of yarn produced
the spinning mills are classified into private, public, and Co-operative sectors. The
production of yarn includes the production of cotton and blended yarn also. Table 2.5 shows
the yarn production by various types of spinning mills during 2000-01 to 2012-13.
 TABLE 2.5

YARN PRODUCTION BY VARIOUS TYPE OF SPINNING MILLS

(In million kilograms)

Type of units
Co-
Private Public Total
operative
Year

00-01 2875.92 115.10 169.20 3160.22

01-02 2858.62 94.01 148.43 3101.06
02-03 2848.81 87.24 145.32 3081.37
03-04 2842.03 73.46 136.31 3051.80
04-05 3008.77 78.28 136.46 3223.51
05-06 3226.14 75.81 156.34 3458.29
06-07 3567.81 79.41 166.16 3813.38
07-08 3768.37 73.35 161.50 4003.22
08-09 3704.11 60.53 147.39 3912.03
09-10 3983.14 60.40 150.31 4193.85
10-11 4495.46 66.09 151.07 4712.62
11-12 4200.44 49.82 122.44 4372.70
 12-13 4673.26 49.12 145.23 4867.61

Source: Official Indian Textiles Statistics

The production of yarn increased from 3160.22 million kgs in 2000-01 to 4867.61 million
kgs in 2012-13. During the year 2000-01 to 2012-13, the private sector spinning mills
produced more yarn than the public and Co-operative spinning mills because of the higher
number of private spinning mills established in India. The yarn production in private
spinning mills increased from 2875.92 million kgs in 2000-01 to 4673.26 million kgs in
2012-13.

The production of Co-operative spinning mills in India declined from 169.20 million kgs in
2000-01 to 145.63 million kgs in 2012-13. The production of yarn in public sector spinning
mills was also declined from 115.10 million kgs in 2000-01 to 49.12 million kgs in 2012-13.
The rate of decline in the production of yarn was very high in public sector spinning mills
which suffered a decline of 57.32 per cent during the research period.

FIGURE 2.3

YARN PRODUCTION BY VARIOUS TYPE OF SPINNING MILLS

2.4.7 Year- Wise Production of Spun Yarn

The pattern of year wise production of spun yarn during 2000-01 to

2012-13 were as follows.

 50

TABLE 2.6
YEAR-WISE PRODUCTION OF SPUN YARN (millions kgs)

Year Cotton Blended/Mixed 100 % Non Cotton Total

2000-01 2264 646 247 3160

2001-02 2212 609 280 3101

2002-03 2177 585 319 3081

2003-04 2121 589 342 3052

2004-05 2272 585 366 3223

2005-06 2521 588 349 3458

2006-07 2824 635 354 3813

2007-08 2948 677 378 4003

2008-09 2896 655 361 3912

2009-10 3079 707 407 4193

2010-11 3490 797 426 4713

2011-12 3126 789 457 4372

2012-13 3583 828 457 4868

Source: Official Indian Textiles Statistics

It is clear from table 2.6 that the total spun yarn production in the research period.(2000-01 to
2012-13) the total yarn production was increased from 2264 million kgs in 2000-01 to 3583
million kgs in 2012-13.

Over the period of spun yarn production, the cotton has major contribution during the research
period. The above table also indicates that the spun yarn of blended and non cotton were ups and
downs during the period. The production of spun yarn of blended cotton increased from 646
million kgs in 2000-01 to 828 million kgs in 2012-2013. But during the research period blended
cotton yarn has uneven position.
COMPANY PROFILE:

Sambandam Spinning Mill Limited was incorporated as a private limited Company on 7th
Nov. 1973 under The Companies Act, 1956. The word Private was deleted under the provisions of
Section 43A (2) of the Act with effect from 1st July, 1989 when it became a deemed public limited
company. The Company became full fledged Public Company with effect from 17th June, 1994.

The Company has two units situated at Salem and Ayeepalayam. The Unit at Salem (Unit I) is
started in 1974 and is now having a spindle age of 45,000 spindles. The Unit commenced its
commercial production in May, 1974 with an installed capacity of 3,300 spindles. The spindle age was
gradually expanded in stages to 15000 between the years 1974 and 1980.

The expansion was financed by the way of Term Loans from Financial Institutions
to the tune of Rs.39 lakhs, Deferred Payment Guarantees of Rs.257.24 Lakhs from Tamilnadu
Industrial Investment Corporation (TIIC) and State Bank of India (SBI). Further expansion programs
were undertaken between 1980 and 1988 to increase the spindle age from 15,000 to 25,220. The
capacity increase was financed by way of term loans from SIPCOT, and also internal accruals.

SSML started with an initial installed capacity of 2,940 spindles. As on March 31,
2009, the group capacity was 1,00,000 spindles spread between three units located in Salem
district. The company also has 17 wind energy converters for a total capacity of 12.80 MW in
Tirunelveli and Coimbatore districts. The Group of SSM includes,

 Sambandam Siva Textile Pvt. Ltd

 Sambandam Investment and Leasing Ltd.

 S. Palaniandi Mudaliar Charitable Trust and

 SPMM Healthcare Services Pvt. Ltd.

 Sengunthar matriculation school(Trust)

 The second unit at Ayeepalayam, Athanur in Salem District (Unit II) is started in
1990 with an installed capacity of 5,760 spindles at a cost of Rs.335 Lakhs. The capacity was expanded
to 12480 spindles in 1993 at a cost of Rs.565 Lakhs. Both the above projects were financed by way of
term loans from IFCI and also internal accruals.At present the Company has a combined aggregate
installed Capacity of 28,000 Spindles.

MISSION STATEMENT OF THE COMPANY

The company mission is “ to strive for excellent in every sphere of company activity to
give best quality product which save the cost and time for the customer and best service, customer
friendly in fulfilling their requirements, aiming at steady development through up graduation of
technology and diversification for value addition”.

OBJECTIVES

 To provide quality products to meet out the customer needs.

 To provide employment potentiality to the local technocrats and laborers.

 To maintain discipline of their public.

 To conduct training classes for the labours on ISO 9000:2000 accident prevention and Labour
welfare in a phase manner.

 Ensuring the total customer satisfaction

 Increasing the value of the stake holders.

 Development of processes and product

 Compliance with relevant legal and other requirements

 Prevention of pollution and health hazards.

 Continual improvements of organizational performance.

 Involvement of employees / management at all levels.

ABOUT THE COMPANY:

Board of director

S.Devarajan- Chairman cum Managing Director

S.Jegarajan - joint managing director

S.Dinakaran - joint managing director

A.G.venkatesan

D.Sudharshan – whole time director

V.Mahadevan

P.S.Anthanarayanan

V.Gopalan
Company secretary and chief financial officer

R.S.Shanmugam

Statutory auditors

M.S.Krishnaswami & Rajan

Cost auditors

S.Mahadevan & co

Bankers

State bank of India

Karnataka bank limited

Indian overseas bank

IDBI bank limited

Axis bank limited
Canara bank
Central bank of India

Registered office

Mill premises

Post bag no.1

Kama raj nagar colony,

Salem 14, Tamilnadu.

Spinning plants

Unit I: Kamaraj Nagar Colony,

Salem 636014
Unit II: Ayeepalayam
 Athanur 636301 – Namakkal district

Unit III: Kavarakalpatty, Seshanchavadi post

Salem 636 111

Wind energy converters

i) Uthumalai village V.K.pudur taluk

Tirunelveli district, Tamilnadu

ii) Panagudi pazhavoor and Parameshwarapuram villages

Radhapuram taluk, Tirunelveli district, Tamilnadu

iii) Gudimangalam village

Udumalpet Taluk, Coimbatore district, Tamilnadu.

 ISO 9001:2000 certified company

ISO 9001:2000 VERSION

 It is stands for International Organization for Standardization.

 It is given for a systematic process of an company.

 Also given for continuous development and it s power of giving satisfaction to their
employees demand as well as unsafe able demands.

 SSM product is known for 0% defects.

Benefits:

 Products can set international giving

 Can face the competitors

 Standardized production

26
  Giving importance in communication

 Welfare of employee

Why it is need?

To decrease wastage and increase production and to give products with quality

QUALITY POLICY

 Best, this saves the cost and time for the customer.

 Customer friendly in fulfilling their requirements.

 Up-gradation in technology and diversification for value addition.

MAJOR COMPETITORS

 KKP textiles

 SP spinning Mill

 Premier group of Mills

 Super group of Mills

 Ram Co group of Mills

 Jaya Jyothi Mills

 Management

 Management puts a priority on people, communicates well, works hard, participates and is
constructive.

 Management method makes employees feel that they are an essential part of the company
and helps them look to the future with optimism.

 Employees are rewarding for their performance according to company policy.

 Equal opportunities are offered in order to promote the skill and performances of the
employees.

 Material and moral support and opportunities are provided to managers to motivate them to
reach their full potential.

 Managers have the authority to hire or terminate employees.

KEY RESULT AREA SYSTEM:

27
 As the key result key area SSM company follows,

 100% production:

Company has more demands in domestic and as well as in the foreign markets. To satisfy
this needs company works for 24 hours and it leads to 100% production.

 Quality

SSM exports 60 % of its production. It is a good example of its quality.

 Customer satisfaction

SSM has runs from 1974. Without customer’s satisfaction it is hard to run the company
successfully.

 Keeping all in standards:

From the department of Mixing to Packing everything after checking only moves to next
department.
Objectives of the study

1. To understand the importance of employee relations.

2. 2. Study the factors related to employee relations.

3. 3. Analyze the impact of employee relations on employee performance.

To find out the employer – employee strategies.

To find out for what purpose problems creating between employer-employee.

32
Scope and significance of study

The study also aims at analyzing the good records of the business on employee
performance, evaluations, firings, discipline and other employee and employer
matter. Moreover, this study as a feed back to the management, enabling to take
appropriate action to stand a good relationship among its employees the study also
aims at satisfaction among st its employees. The study has a scope for further
research.

The scope of the research of Employee Relations and management will be limited
to sambandam spinning mill limited at the Bhagyashree Apts, 1692, Sadashiv Peth,
Near Grahak Peth, Tilak Road, .. The research will rely on the organization for
vital information as well as information from secondary source. The Study will
based on various employee relation practices.

33
LIMITATION OF THE STUDY
The researcher encountered a limitation in regards to availability of information.
Thus due to the organizations working ethics, the researcher could not get access to
vital information since it was treated as confidential and the targeted respondent’s
number was not attained since some employees were on leave and availability of
time also became a limitation.

34
 Chapter 4

RESEARCH METHODOLOGY

In order to do research successfully and fulfill the objectives of research I studied

the Employee Relations at sambandam spinning mill limited. I have done the
research by interacting with the executive, managers of the HR Department and
understood how the process is executed in the organization.

After that, I designed a questionnaire which had various questions related to

Employee Relations. The questionnaire was distributed to the employees and filled
up by them.

DETERMINING SAMPLE SIZE

POPULATION:

All the items under consideration in any field of enquiry constitute a population.

In my study, the population of the employees is 30.

SAMPLE SIZE

The sample size is 20 employees of sambandam spinning mill limited.

35
SAMPLING METHOD

The purposive sampling is also known as Judgmental sampling or selective

sampling or subjective sampling was chosen as most appropriate research design
for study. In this sampling method the researcher chooses the sample based on who
they think would be appropriate for the study. This is used primarily when there is
a limited number of people that have expertise in the area being researched.

TOOLS OF DATA COLLECTION

Primary and Secondary data were used.

In Primary Data

Standardized Questionnaire is used for data collection. A Questionnaire consists of

a number of questions printed or typed in a definite order on a form or set of forms.
The respondent has to answer the question on their own. Apart from this
observations and interview has also been used as a source for primary data
collection.

 Interviews
 Questionnaires
 Observations

In Secondary Data

36
Secondary data means data that are already available i.e. they refer to the data
which have already been collected and analyzed by someone else. Secondary data
may either be published data or unpublished. It is collected from:

 Journals
 Magazines
 Websites

Chapter 5
DATA ANALYSIS

37
 Chapter 5
DATA ANALYSIS
1. Rate your level of satisfaction with the working culture of the organization?
a.Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly Dissatisfied

TableNo: 5.1
TableTitle: Working Culture.
Sr. No Attributes No. of Percentage
Respondents
1. Highly Satisfied 01 05%
2. Satisfied 18 90%
3. Average 01 05%
4. Dissatisfied 00 00%
5. Highly Dissatisfied 00 00%
TOTAL - 20 100%

Interpretation:
As graph shows almost all the employees are satisfied with the working culture of
the Organization.This says that the work culture of organization is good and
satisfying according to employees opinion.

38
2. Are you satisfied with your relations with your coworkers?

a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied

e. Highly Dissatisfied

TableNo: 5.2
Table title: Relations with coworkers
Sr. No Attributes No. of Percentage
Respondents
1. Highly Satisfied 01 05%
2. Satisfied 18 90%
3. Average 00 00%
4. Dissatisfied 01 05%
5. Highly Dissatisfied 00 00%
TOTAL - 20 100%

Interpretation:
According to graph almost all the employees are satisfied with their relations with
their coworkers.
But there are very few employees who is not satisfied with the relations with their
coworkers.

39
 3. Do you get Support from manager/supervisor for your work?
a. Yes b. No c. Not Applicable To Me

Table No: 5.3

Table Title: Suport from manager.
Sr. No. Attributes No. Of Percentage
Respondents
1. Yes 19 95%
2. No 01 05%
3. Not Applicable To Me 00 00%
TOTAL - 20 100%

Interpretation:
The interpretation from this graph is that the managers or supervisors of the
organization are supportive for employees. But there is employees who are feeling
neglected or not getting support from managers or supervisors of the organization.

40
 1. To what extent do you agree with the following statement: I would
recommend this company as a Great Place to Work?
a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied

TableNo: 5.4
Table Title: Opinion About Organization
Sr. No Attributes No. of Percentage
Respondents
1. Highly Satisfied 02 10%
2. Satisfied 15 75%
3. Average 03 15%
4. Dissatisfied 00 00%
5. Highly Dissatisfied 00 00%
TOTAL - 20 100%

Interpretation:
The interpretation from this graph is that almost all the employees are happy with
the work culture of the organization and they recommend this organization as the
great place to work.

41
 5. Are you satisfied with your relation with your immediate supervisor?
a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied

Table No: 5.5

Table Title: Relation With Supervsor
Sr. No Attributes No. of Percentage
Respondents
1. Highly Satisfied 03 15%
2. Satisfied 14 70%
3. Average 02 10%
4. Dissatisfied 01 05%
5. Highly Dissatisfied 00 00%
TOTAL - 20 100%

Interpretation:
The interpretation from the graph is that the employees relation with their
immediate supervisor is good. But there are some of employees who are not
satisfied with the relation with their immediate supervisor of the organizatin.

42
 6. Do you know how you are part of company’s vision and your role for
that?
a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied

TableNo: 5.6
Table Title: Awareness About Vision
Sr. No Attributes No. of Percentage
Respondents
1. Highly Satisfied 00 00%
2. Satisfied 14 70%
3. Average 05 25%
4. Dissatisfied 01 05%
5. Highly Dissatisfied 00 00%
TOTAL - 20 100%

Interpretation:
There are employees who know how they are part of company’s vision and their
role for that.
But it can be observed that the some of the employees don’t have any clear idea
about organization vision and their role for that.

43
 7. Is there good communication from managers to employees in The
Company?
a. Yes b. No c. To some extent.

TableNo: 5.7
Table Title: Communication.
Sr. No Attributes No. Of Percentage
Respondents
1. Yes 15 20%
2. No 01 05%
3. To some extent. 04 20%
TOTAL - 20 100%

Interpretation:
Here the some of employees think that there is not proper communication between
the managers and employees in organization.
But more than 70% employees are satified with Comminication between employee
and employer

44
 8. People in your department communicate sufficiently with one another?
a. Yes b. No c. To some extent.

TableNo: 5.8
Table Title: Communication Between Colleagues.
Sr. No Attributes No. Of Percenta
Responde ge
nts
1. a) Y 14 70%
es
2. b) N 00 00%
o
3. c) T 06 30%
o some extent.
TOTA - 20 100%
L

Interpretation:
70% employees are confident that department communicates sufficiently with one
another.
But 30% employees think that the department communicates sufficiently with one
another up to some extent only.

45
 9. Does your supervisor actively listens to your suggestions and enables
you to perform at your best?
a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied

TableNo: 5.9
Table Title: Suggetions From Supervisor.
Sr. No Attributes No. of Percentage
Respondents
1. Highly Satisfied 04 20%
2. Satisfied 13 65%
3. Average 02 10%
4. Dissatisfied 01 05%
5. Highly Dissatisfied 00 00%
TOTAL - 20 100%

Interpretation:
Here we can interpret that the supervisor is active listener as in everyone is
satisfied but some of them are averagely satisfied.

46
 10. Overall, how satisfied are you working for the Company?
a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied

TableNo: 5.10
Table Title: Satisfaction Of Employees.
Sr. No Attributes No. of Percentage
Respondents
1. Highly Satisfied 02 10%
2. Satisfied 15 75%
3. Average 03 15%
4. Dissatisfied 00 00%
5. Highly Dissatisfied 00 00%
TOTAL - 20 100%

Interpretation:
Here we can interpret that almost everyone is satisfied by overall working of the
Organization.
Which means that overall working of organization is satifing for the employees.

47
 11.Do you think that if employees have healthy relationships the
organization will be more effective and successful?
a. Yes b. No c. To some extent.

Table No: 5.11

Table Title: Opinion Of Employees.
Sr. No Attributes No. Of Percentage
Respondents
1. Yes 16 80%
2. No 00 00%
3. To some extent. 04 20%
TOTAL - 20 100%

Interpretation:
Here the 80% employees are saying yes and 20% employees are saying to some
extent it indicates that organiztion have a healthy relationship bt still some
imrovements are needed.

48
 12 Do you generally feel you are able to
balance your work and personal relationships (such as marriage,
partners, and friends)?
a. Yes b. No c. To some extent.

TableNo: 5.12
TableTitle: Balance In Personal&Proffesional Life.
Sr. No Attributes No. Of Percentage
Respondents
1. Yes 09 45%
2. No 03 15%
3. To some extent. 08 40%
TOTAL - 20 100%

Interpretation:
Here the 40% employees are saying to some extent 45% are saying yes and 15%
are saying no.
We can predict that some of the employees are not able to balance personal and
professional life.

49
 13.The people here are pleasant and co-operative to work with.
a. Yes b. No c. To some extent.

TableNo: 5.13
Table Title: Nature Of Colligues.
Sr. No Attributes No. Of Percentage
Respondents
1. Yes 16 80%
2. No 01 5%
3. To some extent. 03 15%
TOTAL - 20 100%

Interpretation:
Here the 80% employees are saying yes 15% are saying to some extent and 5% are
saying no.

50
 14.There is someone at work who encourages my development.
a. Yes b. No c. To some extent.

TableNo: 5.14
Table Title: Encouragement By Colligues.
Sr. No Attributes No. Of Percentage
Respondents
1. Yes 13 65%
2. No 03 15%
3. To some extent. 04 20%
TOTAL - 20 100%

Interpretation:
Here the 65% employees are saying yes 20% are saying to some extent and 15%
are saying no.

51
 15.Even if I had the opportunity to get a similar job with
another organization, I would stay with my present company.
a. Yes b. No c. To some extent.

TableNo: 5.15
Table Title: Job Switch Opportunity.
Sr. No Attributes No. Of Percentage
Respondents
1. Yes 07 35%
2. No 01 5%
3. To some extent. 12 60%
TOTAL - 20 100%

Interpretation:

Here the 60% employees are saying to some extent 35% are saying yes and 5% are
saying no.

52
 Chapter 6

Learning Of Student Through Project

53
 Chapter 6

Learning Of Student Through Project

 Week 1: I studied about the organization structure and profile of the

sambandam spinning mill limited .. By which I studied & learned about
various organizational structures.

 Week 2: The project topic, Objectives of project and the format for the
report was discussed. I learned about formats of the project.

 Week 3: Study of what is Employee relation s and how management was

done in the 3rd week.In this week I learned about what is employee relations
and why it is important for organization.

 Week 4: Study on Employee relation practices within the sambandam

spinning mill limited . was done in this week. I learned about Employee
relation practices in this week.

 Week 5: Study of the various employee relation practices was studied in this
week to improve the employee relations at organization.In this week I
learned about different employee relation practices.

54
 Week 6: Questionnaire was prepared according to the topic that is employee
relations and management. In this week I learned about how to prepare
quetionnaires focusing on the research topic.

 Week 7: Survey was conducted in the 7th week.In this week I have learned
about how to conduct the survey for the project.

 Week 8: Data Analysis and Interpretation was done, Project report on

employee relation and management was Submitted to the organization.

55
 Chapter 7

Contribution To The Host Organization.

56
 Chapter 7

FINDINGS.

Findings

1. It is observed that the employees are happy with the work culture of the
organization. But some employees are facing problem in communication with
managers or immediate supervisors.

2. It is observed that some of employees are facing problems in balancing personal

and professional life to some extent. This was affecting their productivity.

3. There are some employees who are dissatisfied with the relationship with their
managers or immediate supervisor. So the productivity of the employees getting
affected.

4. Attrition rate is on higher side when the IT industry is performing well overall.

5. Employees are not clear about the vision of the organization and their role to
achieve it.

57
 Suggestion

 Improve Communication : Sending out a memo or email to inform

employees of important company information is inefficient and impersonal.
Your employees are among the most important resources in your
organization, so you should work to improve communication with the staff.
Have regular company meetings to introduce important information to
employees, and allow employees to ask questions as well.

 Career Development: To decrease employee turnover, the company needs to

take an active role in staff career development. Encourage your managers to
work closely with employees on improving staff skills and answering any
questions. Use annual performance appraisals to set up a development plan
for the coming year that will help employees reach their career goals. The
company also should consider a tuition reimbursement program that will
assist employees in furthering their education while working for the
company. It creates a smarter workforce and increases employee morale.

 Share the Vision:To make employees feel better about the company, it is
important to share the company's plans with the staff. Hold meetings to
explain the company's plans for growth and expansion, and get the entire
staff to understand and take pride in the company's future. Seek input from
employees on ways to improve company productivity going forward, and
reward employees who offer ideas that make company growth more efficient.
The rewards can be cash or paid time off. When management makes the

58
 effort to keep employees updated on plans and incorporates employee
suggestions to improve those plans, the staff feels more personally invested
in the company's success.

 Motivate: Employee of the Month programs are great, as are incentives and
rewards. However, they are short term behaviour changers, and you need to
get the fundamentals right. Ensure that each staff member knows what their
boundaries are, what success looks like and the expectations of both their
immediate manager and the team as a whole. The absence of any clear
guidelines or feedback can be detrimental to ensuring positive employee
relations.

59
References

60
 References

Books

Sr. Name Of The Author Publisher Edition Year of

No. Book Publication
1. Employee Elizabeth Kindle Cloud 1st 2014
Relations. Aylott Reader

2. Research C.R.Kothari NewAge 2nd 2004

methodology. Publishers

3. Employee John London : 4th 2005

Relations. Gennard, Chartered
Graham institute of
Judge personnel and
development

Websites

Sr. Website Name Date Of Visit

No.
3. www.managementstudyguide.com 26/06/2020
4. www.citehr.com 04/07/2020

61
Annexure

Annexure
QUETIONNAIRE
62
PERSONAL DETAILS (optional)
Name: DESIGNATION:
WORKING EXPIRIENCE:

1.Rate your level of satisfaction with the working culture of the

organization?
a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied

2.Are you satisfied with your relations with your coworkers?

a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied

3.Do you get Support from manager/supervisor for your work?

a. Yes b. No c. Not Applicable To Me

4.To what extent do you agree with the following statement: I would
recommend this company as a Great Place to Work?
a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied

5.Are you satisfied with your relation with your immediate supervisor?
a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied
6.Do you know how you are part of company’s vision and your role for that?
a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied

7.Is there good communication from managers to employees in The

Company?
a. Yes b. No

8.People in your department communicate sufficiently with one another?

a. Yes b. No

9.Does your supervisor actively listens to your suggestions and enables you
to perform at your best?
a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly

63
 Dissatisfied

10.Overall, how satisfied are you working for The Company?

a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly
Dissatisfied

11.Do you think that if employees have healthy relationships the

organization will be more effective and successful?
a. Yes b. No

12. Do you generally feel you are able to balance your work and personal
relationships (such as marriage, partners, and friends)?
a. Yes b. No

13.The people here are pleasant and co-operative to work with.

a. Yes b. No

14.There is someone at work who encourages my development.

a. Yes b. No

15.Even if I had the opportunity to get a similar job with

another organization, I would stay with my present company.
a. Yes b. No

64