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1 VISAKHA DAIRY

“A STUDY ON EMLOYEE WELFARE AND MEASURES AT


SRI VIJAYA VISAKHA DAIRY ”
VISAKHAPATNAM

A project report Submitted in Partial Fulfillment of


The Requirement for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by
SOBHA RANI. DUMPA
(H.T.No.2085410007)
HRM & MARKETING

Under the Guidance of

Mrs G.SUBHA., M.B.A..


Faculty in management studies

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION


ADITYA INSTITUTE OF P.G STUDIES 41
(Approved by AICTE, Affiliated to AU, & Accredited by NBA)
Aditya Nagar, ADB Road, SURAMPALEM-533437
2008-10
VISAKHA DIARY

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ADITYA INSTITUTE OF P.G.STUDIES


DEPARTMENT OF BUSINESS MANAGEMENT
(Approved By Aicte, Affiliated To AU, &Accredited By MBA)
Aditya Nagar, ADB Road, SURAMPALEM-533437

CERTIFICATE

This is to certify that the project entitled “EMPLOYEE WELFARE AND


MEASURES” is the bonafide work done by Miss.SOBHA RANI.DUMPA, during the
period 2008-10 in partial fulfillment of the requirement for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION IN ADITYA INSTITUTE OF P.G.
STUDIES affiliated to AU.

PROJECT GUIDE: HEAD OF THE DEPARTMENT


Mrs. G.SUBHA Mr. J.NAGENDRA KUMAR
Faculty in Management Studies, Department of MBA
Department of MBA

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DECLARATION OF THE STUDENT

I hereby declare that the project report entitled “EMPLOYEE WELFARE AND

MEASURES” submitted for the degree of Master of Business Administration is my

original work and has not formed the basis for the award of any degree, diploma,

associate ship, fellowship (or) similar other titles. It has not been submitted to any other

University or Institution for the award of M.B.A.

Place : KAKINADA (SOBHA RANI.DUMPA)


Date: Regd. No. 20854100007

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ACKNOWLEDGEMENTS

I should take the responsibility to acknowledge the following


distinguished personalities who graciously allowed me to carry out this project work
successively.

I am very much thankful to Mr. J.NAGENDRA KUMAR, M.B.A, and

Head of the department of management studies. I am also thankful to all other members

of the staff for their kind cooperation in this behalf.

I am highly thankful to my guide Mrs. G.SUBHA madam, M.B.A, Assistant

Professor for her valuable advices and encouragement throughout the course.

I express my deep sense of gratitude to Ch. Vijaya Rao (sr.general

manager) for his kind help and valuable suggestions in preparing this project and also to

office staff members.

I also express my sincere thanks to my friends and classmates for their

advice and suggestions in giving a proper shape to study.

(SOBHA RANI.DUMPA)

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CONTENT

CHAPTER 1

 INTRODUCTION
 NEED OF STUDY
 OBJECTIVES
 SCOPE
 METHODOLOGY

CHAPTER 2

 INDUSTRIAL PROFILE

CHAPTER 3

 COMPANY PROFILE

CHAPTER 4
 THEORETICAL FRAME WORK
 EMPLOYEE WELFARE AND MEASURES

CHAPTER 5

 GRAPH ANALYSIS AND INTERPRETATION

CHAPTER 6

 FINDINGS
 SUGGESTIONS
CHAPTER 7
 ANNEXURE
 BIBILOGRAPHY 43

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CHAPTER -I

INTRODUTION

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INTRODUCTION

EMPLOYEE WELFARE

Welfare is the broad concept referring to a state of living of an individual or group in a

desirable relationship with the total environment like ecological economic and social

labor welfare includes both social and economic contents of the welfare. Social welfare is

primarily concerned with the solutions of various problems of the workers sections of the

society. The objective of economic welfare is to promote economic development by

increasing production and productivity through equitable distribution. Labor welfare is

the part of social welfare conceptually and operationally, it covers concentration and

development of human resource.

CONCEPT

The concept of labour welfare implies the setting up of minimum desirable standards

and the provision for of the facilities like health, road, clothing, housing, medical,

assistance, education, insurance, job security, recreation such facilities enable the worker

and his family to lead a good work life, family life and the social life. Labour welfare

also operates to neutralize life and social life from the harmful effects of the large scale

industrialization and the urbanization.

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DEFINITIONS

Royal commission on labour qualities defines the labour welfare as “ one must

necessarily elastic being a some what different interpretation in one country from another

country according to the different social customs, the degree of industrialization and the

educational development of the workers.”

ILO says “ labour welfare is such services, facilities and the amenities established either

outside or in the vicinity of undertaking to enable the worker to perform their work in

healthy land, congenial surrounding and to provide them with amenities conductive to

good health and high morale ”

NEED FOR THE STUDY

Welfare is a very wide one and is more or less synonymous with the conditions of

work as a whole. It may include not only the minimum standard of hygiene and safety

laid down in general labour legislation, but such aspects of working life as social

insurance schemes, measures for the protection of women and young workers, limitation

of work and paid vacations. In other cases, the definition is much more limited, and

welfare, in addition to the general physical working conditions. It is mainly concerned

with the day to day problems of the workers and the social relationships at the place of
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the work.

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As the subject of welfare facilities is a very broad one covering a wide field of

amenities, limits cannot be rigidly laid down regarding its scope for all times. In the final

analysis, labour welfare services should include all extra-mural and intra-mural welfare

work, statutory and non statutory welfare facilities undertaken by the employers,

Government, Trade unions or voluntary organizations and also social security measures

which contribute to workers welfare such as industrial health, insurance, provident fund,

gratuity, maternity benefits, workmen’s compensation, retirement benefits and so on.

More specifically, we may examine the ways in which labour welfare is classified in

order to obtain a clear understanding of its scope. Labour welfare work can be broadly

divided into two categories, statutory and non statutory or voluntary.

Statutory welfare consists of those provisions of welfare work, which depend for

their implementation on the coercive power of the Government. The Government enacts

certain rules of labour welfare to enforce minimum standards of health and safety of

workers. The employers are required by law to fulfill statutory obligation on welfare.

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THE OBJECTIVES OF THE STUDY

 To understand the extent to which the welfare measures provided by visakha dairy

towards their employees.

 To know the level of awareness of the employee about the various welfare

measures provided to them.

 To study how the welfare facilities provided helps in increasing the productivity

and the job satisfaction.

 To learn how welfare services provided to employees help organization to built up

a stable work force by reducing absenteeism and the labour turnover

 To offer useful suggestions for improving the effectives of welfare measures.

 To know about the promotional facilities in the company

 To know how much the management supporting the employees, and to know the

treatment of superiors towards subordinates.

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METHODOLOGY

The data collected through two sources i.e., primary and secondary sources

of information. Primary data and information is obtained from the officers of the human

resources department through interaction with them.

Information pertaining to programs organized over a period will be

obtained by way of referring to record of the statistical departments, personnel

departments and training and development departments. In house magazines,

journals, news papers, any other published materials will be referring to in collection

of necessary data.

PRIMARY SOURCE

The primary source of data is applied for getting the required and relevant

information directly from the department heads and in the course of discussion with

the executives. The following are the data collected through primary sources.

 Types of welfare measures provided under visakha dairy.

 Refreshment courses conducted in the technical institute.

 About the course covered through discussion with the employees and through

questionnaires.

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SECONDARY SOURCE

The secondary source of data is collected through records and files from the

administrative building of the visakha dairy and from the institutional guide and the

staff belonging to administration provided necessary information.

LIMITATIONS

 Time was the major constraint as the mentioned period was not enough to

collect the data in detail

 Survey was done with the employee size of 40 as the employees of the

company work in shift

 The collected information is mainly depending on the interviews, survey

findings and from reports only.

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CHAPTER - II

INDUSTRY PROFILE

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INDUSTRY PROFILE

Introduction

Milk is the food, which contains vitamins, proteins, fats and carbohydrates. Every

human being consumes milk atone time or more. World Health Organization suggests

that the infants should be fed compulsorily with mother milk, because it provides all the

necessary fats, proteins, etc., which is essential for the growth of the baby. If mother feed

is not available they suggest animal milk, this shows what major role milk is laying in our

daily life.

India is the second highly populated country and is about to occupy the first

position in producing milk. In India the major source of income is Agriculture. Dairying

is one of the best instruments for bringing up the socio-economic development of the

country. Developing countries like India rural people depend on agricultural income like

farming, dairying etc, and The Indian dairy industry is expected to retain for its

indigenous character for a long time because of consumer tastes for articles of food so far

delicacies are concerned.

Dairy development in India has been most spectacular in recent years, while

chief contributing factor to this achievement is the Anand pattern of dairy cooperatives.

No less creditable has been a concerned effort of the national dairy development and the 43
Indian dairy development. These two institutions have been responsible for the dairy

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development in India since 1970. Dairying is considered as a whole when it contains

elements like production, procurement and marketing “Kaira District Co-operative Milk

Producers Union Limited” adopted this integrated approach. This integrated approach in

dairying is proved to be successful with AMUL and later this integrated approach is come

to be known as “ANAND PATTERN OF DAIRY CO-OPERATIVES”.

Importance of Milk

Milk as we all know is a mixture of a variety of nutrients. Milk is a

polysaccharide constitute of our food. Milk on digestion gives glucose and lactose

Milk ------------- glucose + lactose

We all know that our body does eventually stop growing outwardly, but our

bones and tissues don’t. They are constantly being renewed. In fact bones are alive and

they need constant supply of calcium and other nutrients in order to be strong.

Milk provides at least 14 other important nutrients, all performing different and

important functions. As part of a well balanced diet milk and other milk products are

important through out our life.

As we grow into adulthood, we tend to consume less and less of milk. In today’s

market place, where there is a bewildering array of milk products, there is a milk product

for almost every one. Once consuming cow’s milk, infants under one year should stock to

whole milk for the growth and energy needs.

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S.no Milk beverage Fat Total calories

(1cup=80z=250 ml) (grams)

1 Whole milk 9 157

2 2% 6 120

3 1% 3 108

4 Skim Trace 91

5 B’milk 2 105

6 Chocolate partly skimmed ( 2 % ) 5 189

7 Dry,skim,instant(25g) trace 91

--

RAJASTHAN DAIRY TURNOVER UP

The Rajasthan Co-operative Dairy Federation Limited (RCDFL) has recorded a

turnover of Rs.159 crores during 1996-97, a 49% increase over previous fiscal Rs.109

crores. Profitability too increased. Nine unions posted cash profit, size of that earned a

net profit for 1996-97 where as in 1993-94 only four unions earned cash profit with a

single union producing a net profit.


MILK IN VARIOUS PARTS OF INDIA
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MILK TESTING CAMPAIGN IN JAIPUR

Consumers of loose milk in Jaipur are cheated to tune of Rs.26 crores every year

by way of adulteration of water in the milk.

Milk testing campaign popularly known as “Doodh ka Doodh pani ka pani”

was organized from 15th June, 1996 to 30th June 1996 covering prime localities of Jaipur

city.

More than 600 milk samples were tested in the presence of consumers and they

were simultaneously briefed about the importance of SNF in milk. Detailed analysis that

only 19% of the samples were unadulterated and remaining 81% samples were containing

water percentage ranging from 10% to 40%. It was also observed that almost 66,000

liters of water was being sold in disguised of milk valuing to 7.2 lakhs per day. Gujarat

milk co-operative sets export house status.

The Gujarat Co-operative Milk Marketing Federation Limited (GCMMF)

known from its Amul brand milk products reported an 11% increase in its export turnover

during the financial year ended march 1997 (from Rs.18.7 crores to Rs.20.5 crores) and it

has been accorded the export house status.

It reported a 24% growth and sales figure reached Rs.1382 crores to Rs.1107

crores. Amul dairy with a yearly turnover of Rs.380 crores and daily payment of Rs.70
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lakh to 5.51 lakh members’ in 962 villages celebrates amulutsav in its 50th year.

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GOA TO PROMOTE DAIRY INDUSTRY

Goa Government is now focusing its efforts on the promoting dairy farming in the

state. A subsidy of 25% up to Rs.25 lakh on the investment is provided, giving this sector

the status of industry. Enhanced production will reduce Goa’s dependence on imports of

milk from neighboring states. Over 45000 liters milk comes into the state daily from

dairies in the other states as local unions produce barely 50000 liters of milk per day.

ANDHRA PRADESH FEDERATIONS STRIVING TO STAY


AFLOAT

Andhra Pradesh, which set an enviable record in the growth of the dairy products

and in the launching of operation flood in the three decades prior to 1991, appears to be

heading for the decline in its position.

Experts have analyzed the causes of the regressing but corrective measures, which

should have been initiated, are still a long way off. The Andhra Pradesh Dairy

Development Co-operative Federation (APDDCF), which has major stake in the dairy

industry, is gripping with the situation to find a durable solution.

Poor utilization of infrastructure facilities and inability to take time measures to

tackle competition from private dairies had proved costly for the APDDCF whose debt
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equity ratio stands at 1:1.36. The APDDCF has an installed capacity of 23.87 lakh liters

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per day with 66 milk chilling centers, 7 factories, 2 major Dairies and 10 district unions.

It has 5683 milk co-operative societies with an enrollment financial assistance up to

Rs.35.48 crores of which Rs.26.1 crores came from plan fund, of the total share capital of

Rs.28.58 crores, the Government share is Rs.18.18 crores.

In Andhra Pradesh procurement is mostly of buffalo milk, is subject to seasonal

flections. Despite the uncertainties, things went off weal for the federation but

liberalization policy of the central Government has boosted the entire of private

enterprises in the dairy sector which has resulted in deep cuts in the procurement of milk

by APDDCF.

Low productivity of the milk cattle in the state and inadequate measure to upgrade

the cattle has also resulted in milk procurement. This situation had cascading effect on

the manufacture of the milk products and the capacity had come down from 50% in

1993-94 to 43% in 1995-96. Production of milk products fell by 29% in 1995 compared

to the previous year. Of the 10 district unions, the finances of the Godavari district co-

operative milk producers union and that the Cudapah have become so poor that it has

been decided to liquidate the two unions. However, the unions of the east and west

Godavari districts for better viability and management. The Poddutur milk union because

of its heavy losses amounting to 13 crores, including 80 lakh which was to go as arrears

to the farmers, has been divided to be liquidate. In spite of the steep reduction in the

procurement of milk, the federation was able to maintain its sales turnover at Rs.6.5 lakh

per day.

The federation has not been able to raise the selling price of milk in proportions to
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raise in procurement costs. The cost of man power per liter of milk increased from

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Rs.1.33 in 1994-95 to Rs.1.72 in 1995-96 and to Rs.2.12 in 1996-97. The total liability of

the federation to NDDB stood at Rs.154.26crores. The federation has availed a loan of

Rs.8.03crores from the National Co-operative Development Corporation to take up

integrated dairy development in the non-operation flood areas of Telengana region

through the objective of the federation has shifted from social responsibility to the

commercial viability, it has to maintain a balance between the two, despite the high

operational costs and low capacity utilization. In the organized sector in A.P 11 private

units have been registered with an installed capacity of 8.67lakh liters per day. In addition

about 35 private units with a capacity less than 10000 liters per day have sprung up.

Frequent reports on contaminations of milk and milk products have promoted

officials of the health department and U.P to launch surprise inspection of dairies across

towards complaints of adulteration in packed milk based products. A special team of

health officers was sent from Allahabad and Lucknow to raid dairies at various places

follow in reports of harmful chemical urea being mixed in milk and milk based products.

PRIVATE DAIRIES SEEK IN TO KARNATAKA

The Karnataka state Government has received private organization heritage,

vintage and Niligiries to manufacture milk products and pasteurize milk. While the state

Government does not have nor issued dormer to any of the 4 organizations, their

complaints against private dairies had violated norms in milk pasteurization. Minister of

animal husbandry Mr.Ningaiah said necessary action would be taken and also stated that

the Karnataka milk federation would be protected from the danger posts by and private
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dairies.

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MILK TO REPLACE LIQUOR IN HARYANA

In order to cover up losses arising out of Government policy liquor prohibition,

the Haryana tourism corporation plans to convert liquor hares at various resorts into milk

bars. While final plans are yet to be formulated, sale of various products like lassi, ice

creams would be undertaken.

STRESS ON REITALIZATION OF CO-OPERATIVES

There is an urgent need to revitalize the milk co-operatives in the wake of past

liberalization era which has the mushrooms of the large number of private sector dealers

all over India. The state have been instructed by the Government and Co-operative owner

dairies tightened their quality testing mechanism that stern action would be taken against

those indulging in adultering of milk and sale of such milk which is a punishable offence

under the provisions of “prevention of food adulteration rules 1995 ”

FINANCE FOR HI-TECH STERILIZATION

Government of India and France had finalized a protocol under which a loan of

47.7million Frances is being extended to dairy sector in the country this year. Of this,

27.7 million France had gave to NDDB and the ret 20 million francs i.e., 14crores

roughly to APDDCF for purchase and installation of high temperature short time
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sterilization machine. The new machine in contract to the ultra treatment plant under

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operation and APDDCF unit will process milk for keeping it in plastic containers for at

least 6 months to 1 year. At present such milk is made available in tetra packs lasting

only 3 months. The purchase of the machine followed a visit of an official team of A.P to

the France in 1995 when an understanding was arrived at for technology transfer. The

machine would have capacity to give out 50000 liters per day and the new milk packets

will be made available by the next march.

INTERNATIONAL SCENARIO OF DAIRY INDUSTRY

LIQUID MILK MARKET

Average 14 billion of milk was produced every year in UK, 73 million tons in USA

and India’s production is around 75 million tons. Half of the total production of milk is

used for manufacturing other products. In UK the liquid milk sales has seen a decline

since the previous 10 years.

Since 1980 more then 90% of milk was purchased from the milkman. By 1980 this

declined to 89%, in 1985 to 81.9%, in 1990 to 68.3% and by 1995 delivery accounted for

44.5% of all milk purchased. Sales in supermarkets and small shops increased in relation

to the decline in doorstep share. The information collected on international; scenario was

achieved from the internet and it was updated to the current year.
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CONTAINERS

36% of all the house hold milk sold in England, Scotland and Wales is sold in

glass bottles, with plastic containers claming 50% of the market and cartons the

remaining 14%. Virtually all milk sold in glass bottles is sold in doorstep delivery while

disposable packaging accounts for almost all shop sales.

Major types of milk available internationally are

S.no Type of milk Energy value Fat content (%)

(calories)

1 Whole milk 487 6.0

2 Toned milk 387 3.0

3 Low fat milk 270 1.0

4 Skimmed milk 194 0.1

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All fat is spread

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5 Homogenized milk evenly

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INDIAN SCENARIO OF DAIRY INDUSTRY

The main stay in Indian farmers has been agriculture and allied occupations, farm

animals especially cattle have been an integral part of rural India for thousands of years.

During the year 1920 military farms were established to supply adequate raw milk to the

stations. These were walls maintained and improved.

In 1946 the first farmer’s integrated dairy co-operative was established in kaira

district as Anand which later came to be known as “Amul”. Amul and Greater milk

scheme set together a faster pace of dairy developed with emphasis on developed

techniques of processing and marketing under Indian conditions.

INSTITUTIONAL SUPPORT TO CO-OPERATIVE DAIRYING

Indian Dairy Corporation:

The Indian dairy corporation (IDC) was set up under companies act on 13th

February 1970. It is a Government of India undertaking. The immediate need to setup

IDC was to handle the popularly known “operation flood”.

India has emerged as the world’s top dairy nation with milk production crossing

75 million tons in 1997-98. It is placed second in the milk production when compared to

the USA. The Indian dairy industry production is estimated to have risen from a low of

20 million tons to 75 million tons

Though our country has 25% of the total world agriculture animals, yet the production

of milk is only 6.5% of the world programme. India is the second largest populated
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country and the consumption of milk is also high. In order to meet the requirements of

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the people the operation flood programmed was developed. In every 5 year plan emphasis

is even given to agriculture also which includes farming, dairying etc. In India the state in

which the production milk is high in Gujarat.

It is estimated that the per capita consumption of every Indian is 118 grams but

the minimum requirement for good health is 210 grams per day. It is also estimated that

the consumption would be 64.40 million tons in this year. Therefore, it is necessary to

develop dairy farming in India.

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CHAPTER- III

COMPANY PROFILE

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COMPANY PROFILE

MISSION STATEMENT OF VISAKHA DIARY

“Visakha Dairy is committed to enhance the milk procurement through technical

inputs by providing quality services to our member producers by ensuring economic

viability to improve socio economic conditions of our members. Visakha Dairy is also

committed to supply quality milk and milk products to consumers. The dairy shall

become top dairy in the country with its inspired team of employees.”

QUALITY POLICY

“Visakha dairy endeavors to be one of the best processors of milk and the

manufacturers of milk products in India. We are committed to provide hygienic, safe and

nutritious products to achieve customer satisfaction and in turn improve the economy of

our member produces. To this effect the management is committed to implement,

maintain and continually improve the quality and food safety (HACCP) system in dairy

ORIGIN AND HISTORY OF VISAKHA DAIRY

Visakha dairy is located on NH5 opposite to BHPV at Visakhapatnam on the

road from Visakhapatnam to Gajuwaka. The dairy complex includes dairy plant, aseptic

packaging station, markets, procurement and input, effluent treatment plant, electrical sub

station, administration office, staff canteen and the residential quarters. 43

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The milk shed of srivijayavisakha dairy, Visakhapatnam comprises of

Srikakulam, Vizianagaram and Visakhapatnam districts in the north coastal Andhra

Pradesh. These three districts are considered to be backward for agricultural development

as assured irrigation facilities are very limited. Therefore the rural farmers, mostly

belonging to small and marginal categories and depend on dairying to supplement their

income from other sources for livelihood.

The Government after considering dairying as one of the instruments for bringing

socio economic development in the rural areas has started a dairy with handling capacity

of 10000 liters per day in Visakhapatnam in 1996. The dairy was registered under

cooperative act in 1973. After observing the success of the small dairy, the present new

dairy was constructed with handling capacity of 50000 liters with an estimated cost of

Rs.1.37crores wit the assistance from NCDC, New Delhi and was commissioned in the

year 1977. Since then milk production and the procurement started increasing year by

year by leaps and bounds. Thanks to the vision and foresight of the founders, the

visakhadairy, which had milk procurement operations in 50 villages in Visakhapatnam

district in 1977, is now covering 2744 villages in three districts serving 207925 milk

producers. This dairy is converted to mutually aid cooperative act, 1995 with effect from

08.07.1999 and its name is changed as ‘SriVijayaVisakha District Milk Producers

Mutually Aided Cooperative Union’. This dairy is converted to company act, 1956 with

effect from 06.01.2006 and its name is changed as ‘SriVijayaVisakha Milk Producers

Company Limited’. The production and procurement started increasing year by year with

more participation of rural farmers. The handling capacity of visakha dairy has been
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enhanced time to time as stated below.

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1986-87 50000 – 100000 liters per day

1989-90 100000 – 150000 liters per day

1991-92 150000 – 200000 liters per day

2000-01 200000 – 300000 liters per day

2002-03 300000 – 500000 liters per day

OBJECTIVE OF VISAKHA DAIRY

The main objective of the visakha dairy is to serve farmers and to give help to

their economic development, and to provide quality milk and milk products to the

consumers.

UNIQUE ACHIEVEMENTS

Visakha Dairy produces many Milk Products to cater to the consumer needs. It

supplies quality milk of different variants round the clock through its 1500 exclusive

outlets and became dearer to the consumers because of the quality and purity. Visakha

Dairy's name has become synonymous with quality

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1966 - Started Dairy with as handling capacity of 10000 LPD (Lts. Per Day) operations

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in Visakhapatnam.

1973 - Union registered under cooperatives Act.

Inauguration of 50000 LPD Visakha Cooperative Modern Dairy. By Sri.Jalagam


1977 -
Vengala Rao Chief Minister of AP.

1980 - Inauguration of 25000 LPD MCC (Milk Chilling Center) at Narasipatnam.

Joined as member of the AP Dairy Development Coop Federation Ltd. At AP


1981 -
level.

Operation area of the Union extended to Srikakulam and Vizainagaram districts

1982 - and the name changed to Sri Vijaya Visakha District Cooperative Milk

producers Limited.

MCC Srikakulam merged with Visakha Coop Dairy & capacity expanded from
1985 -
12000 to 20000 LPD.

1986 - Expansion 50000 to 100000 LPD.

1987 - NMG (National Milk Grid) milk sales started.

Expansion plant 100000 to 150000 liters per day. Establishment of milk


1989 -
producers & employee’s education, health and medical welfare trust.

1991 - Expansion of 150000 to 200000 LPD.

1996 - Inauguration of 30000 LPD chilling center at Vizianagaram.

1998 - Inauguration of 13 MT powder plant at Visakhapatnam.

Converted to Mutually Aided Cooperative Act’95. Name also changed as “Sri

1999 - Vijaya Visakha District Milk Producers Mutually Aided Cooperative Union
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Limited”

2000 - Dairy expansion 200000 to 300000 LPD Commenced milk procurement in East

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Godavari District Commissioning of milk packing station at MCC Kakinada

Inauguration of Aseptic packing station (APS) Commissioning of milk packing


2001 -
station at Hyderabad & sales started at Rajahmundary & Hyderabad.

Dairy expansion 300000 to 500000 LPD Inauguration of milk pouch packaging


2002 -
station.

2003 - ISO 9001:2000 & HACCP certification.

Up gradation of HACCP to revised standard.


2004 -

Converted to Company Act’56. Name also changed as “Sri Vijaya Visakha Milk
2006 -
Producers Company Limited”

2008 - Inauguration of Aseptic packing station (APS) with New Tetra pack A1 Machine

 Visakha dairy stands second in milk procurement and sales after Anand dairy

 Visakha dairy is the market leader in coastal Andhra Pradesh. Visakha dairy is the

leader in milk industry and got a very high market share of about 75%.

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FUNCTIONAL PROFILE

PLANT AND PROCESSING FACILITIES

Visakha dairy, Visakhapatnam

s.no Name of the facility Capacity

1 Plant capacity 5lakh lt/day

2 Milk storage space 7.19lakh lt/day

3 Reconstitution 1.25 MT/hr

4 Milk packing 5.5lakh lt/day

5 Milk cold storage 1.5lakh lt

6 APS 1.0lakh lt/day

7 Cream pasteurization 0.9lakh lt/day

8 Butter manufacturing 60 MT/day

9 Ghee manufacturing 12 MT/day

10 Butter deepfreeze 850 MT

11 Milk drying 13 MT/ day

12 SMP packing (1kg / ½ kg / 200 gr) 600 kg/hr(not packing)

13 Sterilized flavored milk 1000 bottles/ batch(14

batches/day)

14 Butter milk 0.36lakh lt/day

15 Curd milk pasteurizer 0.36lakh lt/day

16 Curd cups filling and sealing 1.3lakh cups/day 43

17 Products cold storage 1lakh lt

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VISAKHA DIARY

18 Refrigeration plant 330 TR

19 Boilers 1.coal fired 4tones*2 no.

3tones*2 no.

2. oil fired 2tones*1no.

20 Electricity maximum demand generators 1600 KV A

500KV *3 no.

250KV*1 no.

21 Water

1. UGR 1460 KL

2. Softeners 800 KL

3. UV treatment 40500 LPH

22 Air

1.Compressor 1120 CFN

2. Drier 190 CF

23 ETP (anaerobic forward to aeration) 1000 M3

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VISAKHA DIARY

Statement showing the details of different activities of Visakha dairy


as on march 2009

1 No. of societies 886

2 No. of women societies 67

3 No. of MPACs 1791

4 No. milk chilling centers 3

5 No. of feed mixing plants 2

6 dairy training centers 1

7 No. of bulk cooling routes 84

8 No. of milk collection routes 50

9 No. of veterinary first aid centers 661

10 No. of emergency veterinary routes 19

11 No. of producers in societies 179146

12 No. of women members 33245

13 No. of animals vaccinated 45000

14 No. of cattle insured 27124


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VISAKHA DIARY

MILK PROCUREMENT

This dairy is procuring milk through a network of 886 primary milk producers’

cooperatives and 1794 unregistered centers. The average daily procurement of this dairy

during 2007-08 is 384620 liters per day and during 2008-09 up to February 2009 is

450353 liters per day and as on the date the present procurement is 444017 liters per day.

The peak quantity touched during the year 2007-08 is 428746 liters. This is another vital

technical input activity implemented with long vision to improve the milk procurement

apart from procuring the day to day available surplus.

MILK CHILLING CENTERS

S.no Name of the center district capacity

1 MCC Narsipatnam Visakhapatnam 50000

2 MCC Vizainagaram Vizainagaram 30000

3 MCCRambadrapuram Vizainagaram 30000

4 MCC Srikakulam Srikakulam 50000

5 MCC Tuni East Godavari 30000

6 MCC Kakinada East Godavari 50000

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VISAKHA DIARY

BULK COOLING CENTERS

With a view to stand stiff in the global competition, Visakha dairy on the quality

front, installed 81 bulk cooling centers. Extension services are provided to educate and

help the milk producers in clean milk production, animal health and productivity

s.no District No. of bulk cooling centers

1 Visakhapatnam 41

2 Vizainagaram 9

3 Srikakulam 10

4 East Godavari 20

5 Hyderabad 1

OBJECTIVES

 The quantity of milk will be maintained by restricting the transits time.

 There is time saving for the farmers in supply of milk to their respective village

milk collection centers both AM and PM.

 The weighting and testing of milk will be done in the presence of the

representative who brings milk to the bulk cooling points.

 The expenditure involved in transport of milk both times will be reduced by


43
50% by collecting milk once in a day through milk tankers.

LAST TEN YEARS STATISTICAL INFORMATION OF PROCUREMENT &

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VISAKHA DIARY

LIQUID MILK SALES

Financial Year Procurement (Lts in Lakh) Milk Sales (Lts in Lakh)

1995-96 472.78 439.78

1996-97 536.52 459.47

1997-98 689.52 508.56

1998-99 715.40 506.34

1999-00 708.32 558.17

2000-01 769.71 579.87

2001-02 995.71 611.63

2002-03 1112.29 739.17

2003-04 1165.54 851.99

2004-05 1,231.50 1025.53

2005-06 1,440.59 1168.20

2006-07 1401.76 1376.70

2007-08 1407.71 1426.84

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VISAKHA DIARY

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VISAKHA DIARY

FINANCE AND ACCOUNT

The financial operations of the Issaquah cooperative dairy, Visakhapatnam has been

increasing with a remarkable growth rate year by year since 1995-96. The turnover had

increased from Rs.63.00crores to Rs.277.00crores in 2005-06. For glance the year wise

financial performance is stated below.

Year Turnover (crores)

1995-96 63.34

1996-97 78.70

1997-98 95.02

1998-99 114.31

1999-2000 121.01

2000-01 123.40

2001-02 151.45

2002-03 181.14

2003-04 211.11

2004-05 234.13

2005-08 277.86

2006-07 296.21

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41
42 VISAKHA DAIRY

PERSONAL

MAN POWER CHART

Visakha dairy consists of four kinds of employees

 Company employees

 Agreement based employee

 64 scale

 Contract labour

Company employees are recruited and selected by the company without the involvement

of the government.

Agreement based employees are taken into the organization based on the agreement when

ever required.

64 scale employees are the employees selected by the Government. These are the

permanent employees in the organization.

41
Contract labours are the workers taken into the organization whenever there is a

requirement in the plant. Contract labour work along with the company workers in the

plant.
VISAKHA DIARY

ORGANISATIONAL STRUCTURE

Board Of Management

Managing Director

Field Plant & Market Finance Persona Purchase Civil Board


Operations Projects ing & l& & Stores &
MIS
Account Admin Project
ss

Production Engineering APS Quality Despatch


Engineers & &
Maintenance Control

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VISAKHA DIARY

Departments no. of employees

Production 159

Dispatch 110

Quality control 47

Engineering and maintenance 162

Security 7

Purchase 12

Stores 17

Personnel and administration 38

Finance 29

Civil 15

Aseptic packing section 67

Sales 41

Field operations wing 31

MIS 16

Board 2

Contract labour 300

↓Piece rate workers 80(approx.)

Luggage labour 50 (approx.)

Security 50(approx.)

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VISAKHA DIARY

MARKETING

Visakha dairy is marketing milk under “visakha dairy” brand in

Visakhapatnam, Vizainagaram, Srikakulam, East Godavari, West Godavari and

Khammam districts and in the twin cities of Hyderabad and Secunderabad,

Bherampuram, Rayagada and Jaipur through a wide network of 100 milk distribution

routes, about 3000 retail points and 60 round the clock milk parlours.

During the year 2007-08, average milk sale per day is 390914.04 liters of

this 98% is in sachets and the rest 2% in cans. 5 variants of milk namely homogenized

milk, homogenized double toned milk, toned milk and full cream milk is supplied

through retail points either on advance payment by issuing monthly milk cards or on

day to day cash and carry system or on credit depending on the customers need, credit

worthiness, price and feasibility duly taking into account competition from other

players in the market. Statement of the sale proceeds dues to be received as on

31.03.2007 is enclosed for reference.

To ensure extensiveness availability of milk with in the reach of the

consumers and intensive coverage of market, visakha dairy has established wide milk

distribution and sales network by appointing about 3000 retailers. Visakha dairy milk

retailers have to deposit two days sale value of milk as security deposit at the time of

appointment and have to remit the sale proceeds on day to day basis for the quality of

milk supplied each day.

The average daily sales of this dairy during 2007-08 is 390914.04 liters per43

day, and during 2008-09 up to February 2009 is 411530.0 liters per day.

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VISAKHA DIARY

PRODUCTS MARKETING

Visakha dairy markets wide variety of milk products through its own network of

super markets and retailers in Visakhapatnam, Vizainagaram, Srikakulam, Eat

Godavari, West Godavari and Krishna district and twin cities of Hyderabad and

Secunderabad and through m/s Matha federation in the rest of Andhra Pradesh and

outside Andhra Pradesh. Products are supplied to market strictly on cash and carry

business.

DISTRIBUTION NETWORK

Total number of routes 36

Total number of booths 1650

Number of booths having refrigerators 650

Total number of booths with ice boxes 350

Roadside booths 650

Parlours 425

Milk products retail outlets 1800

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CHANNELS OF DISTRIBUTION

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VISAKHA DIARY

MILK

VCD → retailer / agent → consumer

MILK PRODUCTS

VCD → stockiest → retailer → consumer.

BOOTH MANAGEMENT PROGRAMME

 At present around 30 to 35 milk booth comprises a single route and about 4 to

6 routes comprises a none/ city office area.

 Each city office is monitored by a city office incharge and under him the route

supervisor and the business development supervisors work.

 A route / business development supervisor monitors all the booth agents.

 The division of marketing field activities into the city officers in proved to

strengthen their marketing activities on the whole and it helped in

development of sales.

 Further meeting with the commission agents are organized route wise zone

wise regularly to develop them in terms of working capital management and

inter personal communications.


43

 Visakha dairy is encouraging the booth agents with monetary and non

monetary benefits.

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VISAKHA DIARY

 Incentives are being passed onto the supervision on achievement of targets.

Targets will be fixed at the rate of 10% increase of the previous year particular

month sales.

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VISAKHA DIARY

CHAPTER –IV

THEORETICAL
FRAME WORK

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CONCEPT OF EMPLOYEE WELFARE

The directive principles of state policy in our constitution refer generally to

the promotion of the welfare of the people. In its specific application to the working

class, securing just and humane conditions of work has been highlighted, but what

these actually imply cannot be specified in rigid terms for times. The Indian Labour

Organization defined labour welfare as “such services, facilities and amenities such as

adequate canteens, rest rooms, recreational facilities, arrangements for travel to work

and for the accommodation of workers employed at a distance from their houses and

such other services, amenities and facilities contribute to improvements in the

conditions under which workers are employed.

The committee of exerts on welfare facilities for industrial workers conveyed

by the Indian labour court in 1963 divided welfare services into two groups

A. with in the precincts of the establishment

B. outside the establishment

WELFARE AND AMENITIES WITH IN THE ESTABLISHMENT

It is the employer’s responsibility to provide facilities within the precincts

of the establishment. This has also been the underlying principle of the policy adopted

by the Government. For many components of such welfare, legislation in the country43

has set certain minimum standards. Improvements upon them been left to the

employers.

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The facilities with in the precincts of the establishment are regulated by the

factories act, 1948, the plantation act 1951, and the mines act, 1952. The factories act

also requires the factories employing five hundred of more workers to be appointed a

labour welfare officer to look after the welfare of the workers. State Governments

have been empowered to frame rules to prescribed standard and to grant exemptions,

where considered necessary. They laid down elaborate standards for all welfare

amenities, keeping in view mainly the requirements of all workers.

FUNCTIONS OF EMPLOYEE WELFARE

CONDITIONS OF WORK ENVIRONMENT

1. Working conditions:

(a) Temperature (b) ventilation (c) lighting (d) dust, smoke, fumes and gases (e) noise (f)

humidity (g) posture – simple (h) hazard and safe water disposal (drainage) (i) provision

for proper bathing and washing facilities.

2. Factory sanitation and cleanliness:

(a) Provision of urinals in factory (b) provision of spittoons (c) provision for the disposal

of waste and rubbish (d) provision for water disposal (drainage) (e) provision for proper

bathing and washing facilities (f) cleanliness, white washing and repair of buildings and

workshops (g) care and maintenance of open spaces, gardens, roads etc.
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EMPLOYEE HEALH SERVICES

1. Factories health services:

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(a) Medical examination of employees (b) Factory dispensary and clinic treatment (c) First

aid facility (d) Treatment of accidents (e) Health, education and research.

2. Workers education:

(a) Education to improve skills and earning capacity (b) Literacy (c) Library, audio visual

education, lecture programmers (d) Workers educational scheme.

3. Economic services:

(a) Employees co-operative societies (b) grain shops and fair price scheme and its working.

4. Housing for employees and community services.

5. Study of the working of welfare acts:

(a) Factories act (b) Employees state insurance act; (c) minimum wages act.

6. Social work in industrial setting

(a) Family planning (b) Employee counseling

SAFETY MEASURES

EMPLOYEE SAFETY

Since the beginning of the present century, employee safety and health problems at

work have been engaging attention of the psychologists, sociologists and industrial

engineers. Psychologists are concerned with the theoretical considerations of accident

causation and the research into accident control, through proper selection, training and43

education of the employee; and the social and psychological factors that influenced the

individual’s behaviour in general. Engineers and safety officers usually render necessary

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VISAKHA DIARY

practical advice on creation aspect of safety in industry. They look upon prevention of

accidents basically as an engineered problem to be tackled through proper designing of

mechanical safety devices. In fact, accident prevention and safety are interrelated and

therefore, required a multi dimensional approach. Its importance has increased because of

large scale industrialization in which human being are subject to mechanical, chemical,

electrical and radiation hazards, besides modern industry is characterized by complicated

mechanisms, intricate job requirements and fat moving production lines. One of the

important consequences of all this is increased dangers to human life through accidents.

SAFETY WHO’S RESPONSIBLITY

Safety is primarily the responsibility of the management. This responsibility should

rest on the shoulders of all cadres of management, such as plant manager, production

manager, chief engineer, personal manager, maintenance engineer, individual foremen

safety officer or director.

Every organization should formulate and implement a safety policy. The procedure

to be adopted naturally depends upon the size of a company, the number of plant operators,

the nature of the industry in which it is engaged, the production technology uses, and the

attitude of the top management. After it has spelt out its safety policy, a company should

establish a safety programme, the primary goals of which should be reduce the number of

hazardous factors which are likely to cause accidents, and develop safe working habits

among its employees. 43

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SAFETY ORGANISATION

A safety organization and safety committee is setup by an organization. The following

facts should be given due consideration in any safety organization programme:

(a) Safety programs must have top management approval. Sanction and support.

(b) Responsibility for safety must rest with the supervisory personnel.

(c) Provision must be made for prompt action in the elimination of mechanical and

personnel hazards.

(d) Safety must be given equally important consideration with that of other factors of

production.

(e) A define safety programme must be developed to educate all employees in safety and to

secure their active cooperation in the effort to eliminate accidents.

(f) Safety must be included in all phases of planning, purchasing, supervision and

operation

APPRAISAL OF EMPLOYEE ATTITUDE TO SAFETY

PROGRAMMES

Knowledge of attitude of the employees to the safety programmes developed for

them and the specific measures adopted for that purpose such as the setting up of bulletin43

boards, displays of safety measures, pamphlets, booklets, posters, magazines and

information to employee of an organization. The safety committee may discuss the

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problem of safety with the employees, get and act on their suggestions, and undertake

attitude surveys.

A SAFETY EDUCATION AND TRAINING

Safety education for all levels of management personnel and for employees is vital

for any successful safety programmes. The goal of safety education is two fold to develop

safety consciousness among employees and build up a favourable attitude as their part

towards safety measures and precautions; and secondly to ensure safe work performance

on the part of each employee by developing his skill in the use operation of safety

equipment. Training is concerned with providing immediate job knowledge, skills and

methods of work, besides bringing home to the employee an awareness of the hazards he is

likely to encounter in the course of the work in particular department or a particular job,

and impressing upon him the need for a prompt report of any personal injury, for

importance of good house keeping an avoiding machine hazards, for talking precautions to

prevent the outbreak of a fire, for using hand tools properly and for protecting eyes. Safety

publicity should be undertaken by displaying posters and screening films, and by arranging

safety suggestion schemes.

SAFETY PROGRAM AND POLICY

The first step involving a safety program is to have a safety policy. Policy

specifies the goals of the company and designates the responsibilities and authority for

their achievement. Specifically, safety policy must contain a declaration of organizations43

intent and the means by which the intent is to be realized. As a part of the intent the

statement should emphasize four fundamental points: (a) the safety of employees and

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VISAKHA DIARY

public is of paramount importance (b) safety will take precedence over expediency (c)

every effort will be made to involve all manages, supervisors and employees in the

development and implementation of the safety programmes; and (d) safety legislation will

be compiled with, in the as well as the latter of the law.

NEED FOR WELFARE MEASURES

The real need for welfare arises from the two basic conditions generally known as

the long arm of the job and the social invasion of the factory. The working environment of

any job in a factory or mine or a work shop imposes some adverse effect on the workers

because of the heat, noise and ouder, fumes etc. involved in the manufacturing process.

There are also occupational hazards and environmental problems inherent and inevitable in

the manufacturing process itself, which cannot be removed or reduced. As a result

productive devices and compensatory benefits have to be provided for the welfare of the

workers. This can be referred to as the “long arm of the job” which stretches out its

adverse effect its adverse effect on to the worker, long after his normal working hours,

affecting his physical and mental well being. Hence, the need for welfare services within

the factory or workplace is felt.

The aspect of ‘social invasion of the factory’ when a worker comes to his working

place, he is not an isolated individual but a member of the society having family members.

A worker need to be satisfied regards his culture and living environment. Hence, the

imperative needs to provide a welfare services to satisfy his personal and family needs is

felt. 43

Welfare unit is provided to the social security to industrial workers, the common as

an actor and number of status. The permanent among them are:

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1. Factories Act, 1948

2. Workmen’s compensation Act, 1923

3. Maternity benefit Act, 1961

4. Employees state insurance Act, 1948

5. Control Labour (R & A) Act, 1970

6. The Equal Remuneration Act, 1976

7. Child Labour (prohibition & regulation) Act, 1986

8. A.P Labour Welfare Fund Act, 1987

9. Employees Provident Fund and Miscellaneous Provision Act, 1952

10. Payment of Gratuity Act, 1976

11. Industrial Disputes Act, 1947.

FACTORIES ACT, 1948

The main focus of the Act is on employee’s health, welfare and safety. The Act

provides for provision of facilities for washing, storing and drying, clothing, first aid,

canteens, shelters, rest rooms, lunch rooms and crèche etc. it is the responsibility of the

employer to provide the above statuary welfare facilities under this Act.

THE WORKMEN COMPENSATION ACT, 1923

This Act provides for the payment to the workmen compensation for injury by

accident, arising out of and in the course of employment. In case of death or disablement,

compensation is payable to the employees. 43

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MATERNITY BENEFIT ACT, 1961

The object of this Act is to provide for the maternity benefit and certain other

benefits to women employees to working in factories and other establishments. Leave with

pay of twelve weeks for the purpose of maternity related confinement and six weeks for

abortion is required to be given by the employer to women employees, under this Act.

EMPLOYEES STATE INSURANCE ACT, 1948

The main objective of this Act is to provide the certain benefits to the employees in

case of sickness, maternity and employment injury. The Act provides for sickness benefit,

disablement benefit, and dependent benefit subject to periodical payment by the injured

employee. This Act is applicable to the employees working in the covered establishment of

the notified area.

CONTRACT LABOUR (R&A) ACT, 1970

The maintain object of this Act is to regulate the employment of the contract labour

in certain establishment and to provide for its abolition under certain circumstances on the

advice of advisory committee. This Act provides for welfare and health of contract labour

including provisions related to canteen, rest rooms and first aid facilities. This Act enjoys

the principal employer, the responsibility of payment of wages and compensation in case

of accidents and in case of non payment of the same by the contractor. 43

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THE EQUAL REMUNERATION ACT, 1976

The Equal Remuneration Act provides for payment of equal remuneration to men

and women workers for their work or work of similar nature and for the prevention of

discrimination on grounds of sex, against women in the matter of employment.

CHILD LABOUR (PROHIBITION & REGULATION) ACT, 1986

This Act provides for the constitution of a fund for financing of activities to

promote welfare of labour in the state of Andhra Pradesh and for the establishment of a

board for conducting welfare related activities.

EMPLOYEE PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT,

1952

The main objective of this Act is to provide provident fund, employee pension and

deposit linked insurance for employees working in factories and other establishments. The

Act contemplates a contribution by the employer towards provident fund. It also provides

for an employee pension, out of contributions made by employer as prescribed in the Act

and scheme. Employees are allowed withdrawals for certain specific purposes like house

building, children marriage, children education etc.

PAYMENT OF GRATUITY ACT, 1972 43

The Act provides for payment of gratuity to employees working in factories, mines.

The Act enjoys the employees to pay gratuity at the rate of fifteen days wages for every

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completed year of services with a ceiling of twenty months wages (overall ceiling Rs.

3.5lakh) to employees who have put in minimum period of service, in case of death of an

employee the minimum period condition is relaxed.

INDUSTRIAL DISPUTE ACT, 1947

This Act provides the employees and workers for the investigation and settlement

of industrial disputes.

WELFARE MEASURES AND ACTIVITIES IN VISAKHA DAIRY

Visakha dairy considers the human resources as the most important of all the

resources in the company. Therefore, in its pursuit of enriching the quality of life of its

employees and to satisfy their needs, the company has taken several initiatives for

providing statutory welfare measures as per the provisions of factories act, 1948. As

regards non statutory welfare measures, it has been providing facilities for education,

hospital, co-operative societies etc. with the view to impact and propagate the feeling that

the company care for its employees.

The details of important welfare measures that are implemented in the Visakha dairy are as

follows:

STATUTORY WELFARE MEASURES

 Canteen facilities

 water coolers 43

 first acid facilities

 leave facilities

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 maternity leave

 other provisions

 contributory provident fund

 bonus

 gratuity

 workmen compensation

CANTEEN FACILITY

Canteen at visakha dairy is running satisfactory. The members of recognized union

run canteen. Management renders an aid of Rs.10000 per month and 85 liters of milk to the

canteen. The management provides cooking gas, water facilities and electricity. For

breakfast nearly 100 to 150 employees and around 300 employees have their lunch in the

canteen

Canteen is provided with all facilities, fully furnished with dining tables and chairs

and also equipped with fans and lights. Night meals for night shift employees are also

provided in the canteen.

WATER COOLERS

Adequate numbers of water coolers for drinking water and facilities for washing

have been provided in each department through out the Visakha dairy.

FIRST AID FACILITIES

In the first aid boxes with the required contents like plasters, small basin, scissors,

cotton roll, tincture iodine, bandage rolls, eye and ear drops, local antiseptic cream,43

paracetomal tablets etc. are provided in the visakha dairy. This is under the supervision of

personnel trained to give first aid they are regularly replenished with required materials.

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LEAVE FACILITIES

Casual leaves: 15 days for the office staff

Casual leaves: 30 days for the plant / field site

Employees

Sick leaves: 20 days

Earned leaves: 30 days credited twice per year

Maternity holidays: 12 weeks

Optional holidays: 5 days

Public holidays: 5 days

OTHER PROVISIONS

Other provisions of the factories act, provision of rest room, sitting arrangement,

latrines, safety provisions, appointment of welfare officers etc are strictly followed.

GRATUITY

Employees are paid gratuity terms of the payment of gratuity act, 1972 and as

amended from time to time over and above the gratuity act, in the case of death of an

employee before the qualifying service of five years gratuity is paid as follows.

First year service – 2 months emoluments

Before 5 years of service – 6 months emoluments

On completion of 5 years of service – 12 months

Emoluments 43

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For all other cases at the time of separation from the company, maximum of Rs3.5lakh or

the amount calculated applicable to the service rendered by the respective individual,

which ever is less, is being released towards gratuity.

WORKMENS COMPENSATION

Visakha dairy follows the workmen compensation act 1923. This act provides for

the payment to the workmen compensation for the injury by accident. In case of death or

disablement, compensation is payable to the employees, visakha dairy provides death relief

to the legal heir and instant funeral charges of Rs2000 are provided.

CONTRIBUTORY PROVIDENT FUND

Contributory provident fund is at the rate of 12% of the wages per month of the

employees and fund is managed by a trust as per the section 17 of the employee’s

provident fund and miscellaneous provisions act, 1952.

MATERNITY LEAVE

Maternity leave for 12 weeks with full pay without restriction if at least eighty days

of working is extended to the women employees.

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NON STATUTORY WELFARE MEASURES

FACILITIES GIVEN TO EMPLOYEES

 Facilities for education

 Scholarship

 Uniform

 Housing facilities

 Safety education and training

 Employee health programme.

 Insurance

 ESI

 Accident

 Preventive measures

 LTC

FACILITIES FOR EDUCATION

The union has constructed a trust by name “Milk producers and employee

educational health and medical welfare trust” in the year 1989 with an objective to provide

education, heath and medical facilities to the milk producers, dairy employees and their

children. It is not out of place to mention that this a unique enterprise embarked upon by

this union in the entire state for this initially an English medium school was started in a

private accommodation room from LKG to second standard with a strength of 90 students43

during the year 1986. By the year 1996 strength was increased to about 800 with a teaching

staff strength of 55, the school now running up to tenth standard upgrading to junior

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college from 1997-98, permanent school building complex was constructed for the school

with a total outlay of 1crore for ground and first floor for providing accommodation for

class rooms in the ground floor and hostel facility in the first floor for the children of rural

farmers. The building was inaugurated on 14 th June, 1993 and the school shifted to the

building.

The organization is showing interest to provide good quality education for the

children of the employees. It is providing an annual education allowance of Rs2400 for the

employees in the organization. If the total education expenses spent by the employee for

educating his or her child are less than 2400 then the annual expenses made will only be

given. That means 2400 are the actual expenses which ever is less will be given by the

organization. This allowance is paid as per the statutory name that is only for two children.

SCHOLORSHIP

To increase the employee’s loyalty towards Visakha dairy, it is providing the

scholarship facility to the employees children every year on the basis of their merit. Every

year the organization gives three merit scholarships for the seventh and tenth class students

respectively.

UNIFORM

Visakha dairy provides uniform twice in a year to all the employees except for the

officers and the office staff comprising of a blue colored shirt and a navy blue colored pant

along with a pair of shoes.

HOUSING FACILITIES

Housing facilities are provided to some of the employees. Nearly 30 quarters were43

provided with in the visakha dairy premises. Those who are not provided housing facility

are provided 20% HRM.

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Individual houses at nathayya palem housing colony for those who are interested to

go for own house.

SAFETY EDUCATION AND TRAINING

Since most of the employees or workers are illiterate or less educated, so it is very

essential or important to educate and train them regarding safety measures to avoid

accident.

In visakha dairy there is no regular programme as such, but time to time

Visakhapatnam safety council organization training program for the employees safety

equipment are provided by the organization but since there is no strict inspection, workers

tend to work without using them.

EMPLOYEE HEALTH PROGRAM

Nearly 80% of the employees are covered by ESI scheme and those employees who

are not covered are paid Rs45 per month for medical benefit. Recently with the help of the

funds donated by trust of milk KIMS or KRISHI hospital was inaugurated by honorable

major chief minister Sri Nara Chandrababu Naidu, in Sheela Nagar, Visakhapatnam.

In visakha dairy, Visakhapatnam there is a facility of medical reimbursement also.

ESI (Employee State Insurance)

Visakha dairy follows this ESI Act and under this 80% of the employees are

recovered and statutory deduction of 12% from employee’s salary and 12% from employer

contribute for the same. Even employees basic salary is Rs10000, they provide ESI

facility. Above Rs10000 they provide allowance of only Rs45.


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ACCIDENTS

The nature of activity involved in production and processing is not so hazardous,

hence the accidents are very rare in visakha dairy. Till now no major accident has been

recorded.

The main reason behind the accident is the lack of proper understanding about the

nature of work and the improper inspection by the supervisors.

PREVENTIVE MEASURES

Firstly work spot and floor should be maintained dry to avoid skipping, mainly in

the ghee section where the surface was found oily. Those employees engaged in

engineering and maintenance section, where some time have to do welding should use

gloves, employees who are working in processing section work in a shift.

L.T.C

LTC facilities are also given to the employees for the first two years. LTC has

given for home town and for the next 2 years in Andhra Pradesh for all employees

including executives.

INSURANCE

The company was providing health and wealth medical insurance policy to all the

employees excluding contract labour. The insurance is of two types

Family insurance premium

Single insurance premium

Family insurance covers employee, wife, 2 to 3 children with the total coverage of the

insurance of amount Rs500 per annum. 43

Single insurance premium includes employees who are un married with premium coverage

of Rs.300 per annum.

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VISAKHA DIARY

FACILITES GIVEN TO THE MILK SUPPLIERS

The technical input provided for milk production enhancement:

The visakha union is not only procuring, processing and marketing the milk but also

provides facilities to the milk producers to improve their cattle wealth and socio economic

living standards through increase in the milk production.

FACILITIES PROVIDED TO THE MILK PRODUCERS

 Animal health care

 Artificial insemination

 Feed and fodder activity

 Distribution of fodder mini kits on 50% subsidy

 Cattle insurance scheme

 Distribution of devoming drugs

 Premixed cattle feed is being supplied at the rate of Rs.4.00 per Kg

 Film shows

PRIMARY HEALTH CARE

346 Veterinary first aid centers are in function. These centers are started where

there are no AH departmental institutions. One of the employees of the dairy societies is

trained in veterinary first aid who is attending the work.

Number of constructed society building in various districts is as follows:

Visakhapatnam 264 43

Vijayanagaram 63

Srikakulam 1

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The union has its own regional training center near hanumanthawaka with boarding

and lodging facilities and imparting for the society personnel in the following fields.

40 days AI programme

20 days AI programme

10 days veterinary first aid training

30 days paid secretaries

FODDER FORM

In the training center premises a fodder form is established both for the

demonstration to the trainees and seed multiplication. The following fodder grasses are

grown in the form.

Form:

CO-1 NB-21 PARA GUNIA

During the year 1997-1998 fodder slips to cover an area of 130 centers producing and

distributed to the milk producers free of cost.

WELFARE ACTIVITIES FOR THE MILK PRODUCERS AND EMPLOYEES

The union has constructed a trust by name ‘milk producers and employees

education, health and medical welfare trust’ in the year 1989 with an objective to provide

education, health and medical facilities to the milk producers, dairy employees and their

children. An English medium school was started in a private accommodation room from

LKG to second standard with strength of 90 children during the year 1986. By the year43

1996 strength was increased to about 800 with a teaching staff strength of 55, the school

now running up to tenth standard upgrading to junior college from 1997-98, permanent

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school building complex was constructed for the school with a total outlay of 1crore for

ground and first floor for providing accommodation for class rooms in the ground floor

and hostel facility in the first floor for the children of rural farmers. The building was

inaugurated on 14th June, 1993 and the school shifted to the building. Super specialty

hospital was constructed to clear the needs of rural farmers and employees.

LIFE INSURANCE SCHEME TO THE MILK PRODUCERS

During the year 1997-98 as a welfare measure to the milk producer’s life insurance

scheme and accidental policy were covered to nearly 1lakh farmers in this union. Under

this scheme, an amount of Rs10000 is being paid to the farmers on natural death up to an

age limit of 60 years, without collecting any premium from the farmers. So far 600

members are covered under this scheme from 04/97 to 03/98.

Secondly this union has taken upon accidental policy with UTI Company covering

1.20lakh farmers and the deceased family can get 20000 under this programme. This is

only a small attempt to help farmers to support the moral coverage when they were in

desserts by losing their family earning member.

SOCIO ECONOMIC MEASURES

Various social welfare activities have been set up by the trust. Among the activities

the trust has provided the drinking water to the rural poor by digging bore wells in villages

and arranging water channels for farmers by digging old and new reservoirs and also

constructed bridges on the rivers, while crossing rivers were impossible for rural people in

rainy season.

Major task of the trust in identified training providing employment to weaker43

sections that are not having any support from the society. Providing employment to the

physically handicapped people every year by conducting interviews with co-operation of

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visakha dairy, providing employment to women who are physically abused by their family

and no other source of living, providing hearing aids to deserving deaf people after a

thorough check up by the concerned physicians providing wheel chairs to the physically

handicapped people.

HEALTH

Krishi trust hospital is one of the most well equipped and best medical trust

hospitals in the green city Visakhapatnam. The hospital is a 100 bedded modern multi

specialty cum critical care referral hospital to give the patient best care round the clock.

The hospital is fully equipped with good infrastructure with world class quality to provide

best medical care Krishi trust hospital is situated in a quiet and serene place in Sheela

nagar away from the noise pollution of the city.

43

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VISAKHA DIARY

CHAPTER – V

DATA
ANALYSIS
&
INTERPRETATION

43

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Data Tabulation and Analysis

Table no: 1

Awareness of the welfare activities by the employees

S.No. Employee Response No.of Respondents Percentage

1 Yes 94 96%

2 No 6 6%

Total 100 100%

No.of Respondents

1 Yes
2 No

Interpretation :
43
From the above table we can know that 96% of the employees know about the welfare

activities given by the company and 4% of the employees don’t know about the welfare

activities given by the company.

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Table no:2

Opinion about the cleanliness of the company

S.No. Employee Response No.of Respondents Percentage

1 High 65 65%

2 Moderate 28 28%

3 Below average 7 7%

Total 100 100%

No.of Respondents

1 High
2 Moderate
3 Below average

43
Interpretation:

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From the above table we can know that 65% of the employees felt high in

cleanliness of the company and 28% of the people felt average in cleanliness of the

company and 7% of the employee felt below average in cleanliness of the company.

Table no3

Opinion regarding lightening condition of office

S.No. Employee Response No.of Respondents Percentage

1 High 72 72%

2 Moderate 26 26%

3 Below average 2 2%

Total 100 100%

No.of Respondents

1 High
2 Moderate
3 Below average

43

Interpretation :

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From the above table we can know that 72% of the employees felt high in

lightning conditions of the company and 26% of the employees felt average in lightning

conditions of the company and 2% of the employee felt below average in lightning

conditions of the company.

Table no:4

Opinion regarding working hours of their job

S.No. Employee Response No.of Respondents Percentage

1 Yes 86 86%

2 No 14 14%

Total 100 100%

No.of Respondents

1 Yes
2 No

43

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Interpretation:

From the above table we can know that 86% of the employees satisfied with the

working hours in the company, 14% of the employees dissatisfied with the working hours

in the company.

Table no:5

Opinion regarding educational allowance provided

S.No. Employee Response No.of Respondents Percentage

1 Yes 100 100%

2 No 0 0%

Total 100 100%

No.of Respondents

1 Yes
2 No

43

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Interpretation:

From the above table we can know that most of the employees satisfied with the

educational allowance provided by the company.

Table no:6

Opinion regarding the medical benefits provided

S.No. Employee Response No.of Respondents Percentage

1 High 37 37%

2 Moderate 59 59%

3 Below average 4 4%

Total 100 100%

No.of Respondents

1 High
2 Moderate
3 Below average

43

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Interpretation:

From the above table we can know that 37% of the employees felt high in medical

benefits provided by the company and 59% of the employees felt average in medical

benefits provided by the company and 4% of the employee felt below average in medical

benefits provided by the company.

Table no:7

Opinion regarding the medical air policy covered

S.No. Employee Response No.of Respondents Percentage

1 Employee only 0 0%

2 Employee, spouse, 2 children 56 56%

3 Employee, spouse, parents 30 30%

4 Employee, spouse, parents, 2 children 14 14%

Total 100 100%

No.of Respondents

1 Employee only

2 Employee, spouse,
2 children
3 Employee, spouse,
parents 43
4 Employee, spouse,
parents, 2 children

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Interpretation:

From the above table we can know that 56% of employee, spouse. 2 children covered

under medical air policy, 30% of employee, spouse, parents covered under medical air

policy, 14% of employee, spouse, parents, 2 children covered under medical air policy.

Table no:8

Opinion regarding the recreational activities providing or not

S.No. Employee Response No.of Respondents Percentage

1 Yes 100 100%

2 No 0 0%

Total 100 100%

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No.of Respondents

1 Yes
2 No

Interpretation:

From the above table we can know that most of the employees satisfied with the

recreational facilities provided by the company.

Table no:9

Opinion regarding the frequencies of recreational activities

S.No. Employee Response No.of Respondents Percentage

1 Monthly 0 0%

2 Quarterly 37 37%

3 Annually 14 14%

4 Need based 49 49% 43

Total 100 100%

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No.of Respondents

1 Monthly
2 Quarterly
3 Annually
4 Need based

Interpretation:

From the above table we can know that recreational activities are encouraged as

per need of the occasion. 49% agreed to the same while 37% voted for Quarterly

Recreational activities. As few as 14% people voted in favour of Annual Recreational

Activities while no one considered Monthly activities as an appropriate alternative.

Table no:10

Opinion regarding the increments based on performance appraisal

S.No. Employee Response No.of Respondents Percentage

1 Yes 79 79%

2 No 21 21%

Total 100 100% 43

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No.of Respondents

Interpretation:

From the above


1 Yes
2 No table we can know

that 79% of the

employees

satisfied with the

increments based

on performance appraisal, 21% of the employees dissatisfied with the increments based on

performance appraisal.

Table no:11

Opinion regarding the canteen facilities

S.No. Employee Response No.of Respondents Percentage

1 High 25 25%

2 Moderate 67 67%

3 Below average 8 8%

Total 100 100%


43

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No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation:

From the above table we can know that 25% of the employees highly satisfied

with the canteen facilities given by the company, 67% of the employees felt average in

canteen facilities given by the company, and 8% of the employees felt below average with

the canteen facilities given by the company.

Table no:12

Opinion regarding the housing and travelling facilities provided by


company

S.No. Employee Response No.of Respondents Percentage

1 High 27 27%

2 Moderate 73 73%

3 Below average 0 0% 43

Total 100 100%

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No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation:

From the above table we can know that 27% of the employees highly

satisfied with the housing and traveling facilities given by the company, 73% of the

employees felt average in housing and traveling facilities given by the company.

Table no:13

Opinion regarding the employee state insurance policy

S.No. Employee Response No.of Respondents Percentage

1 High 63 63%

2 Moderate 32 32%

3 Below average 5 5% 43

Total 100 100%

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No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation:

From the above table we can know that 63% of the employees highly satisfied

with the ESI policy provided by the company, 32% of the employees felt average in ESI

policy provided by the company, and 5% of the employees felt below average with the

ESI policy provided by the company.

Table no:14

Opinion regarding the provision of updated information from the


company

S.No. Employee Response No.of Respondents Percentage

1 Yes 96 96%

2 No 4 4%
43
Total 100 100%

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No.of Respondents

1 Yes
2 No

Interpretation:

From the above table we can know that the 96% of the employees felt that the

company providing proper information if any changes taken place in the company, 4% of

the employees felt that the company not providing any information regarding the changes

taken place in the company.

Table no:15

Opinion regarding the promotional facilities in the company

S.No. Employee Response No.of Respondents Percentage

1 Satisfied 30 30%

2 To some extent 59 59% 43

3 Dissatisfied 11 11%

Total 100 100%

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No.of Respondents

1 Satisfied
2 To some extent
3 Dissatisfied

Interpretation:

From the above we can know that the 30% of the employees satisfied with

the promotional facilities in the company, 59% of the employees satisfied up to some

extent with the promotional facilities in the company, 11% of the employees dissatisfied

with the promotional facilities in the company.

Table no:16

Opinion regarding the opportunity at work to grow from the last 3


years

S.No. Employee Response No.of Respondents Percentage

1 Yes 71 71%

2 No 29 29% 43

Total 100 100%

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No.of Respondents

1 Yes
2 No

Interpretation:

From the above table we can came to that 71% of the employees got an

opportunity to grow from last 3 years, 29% of the employees didn’t got any opportunity to

grow.

Table no:17

Opinion regarding the deciding of insurance amount

S.No. Employee Response No.of Respondents Percentage

1 Fixed 0 0%

2 Based on compensation 79 79% 43

3 Based on level 21 21%

Total 100 100%

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No.of Respondents

1 Fixed

2 Based on
compensation
3 Based on level

Interpretation:

From the above table we can know that 79% of the employee felt the insurance

decided on the basis of compensation, 21% of the employee felt the insurance decided on

the basis of level of the employees.

Table no:18

Opinion regarding the satisfaction with the materials and equipment


in the work place to work effectively

S.No. Employee Response No.of Respondents Percentage

1 Yes 84 84%

2 No 16 16% 43

Total 100 100%

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VISAKHA DIARY

No.of Respondents

1 Yes
2 No

Interpretation:

From the above table we can know that 84% of the employees satisfied with

the materials and equipments provided in the company to work effectively, 16% of the

employees dissatisfied with the materials and equipments provided in the company to work

effectively.

Table no:19

Opinion regarding the treatment of supervisors or superiors towards


the subordinate as a person at work place

S.No. Employee Response No.of Respondents Percentage

1 Yes 92 92%

2 No 8 8% 43

Total 100 100%

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No.of Respondents

1 Yes
2 No

Interpretation:

From the above table we can know that the 92% of the employees felt the

superiors treated them as a person, the 8% of the employees felt the superiors not treated

them as a person.

Table no:20

Opinion regarding the support given by the management

S.No. Employee Response No.of Respondents Percentage

1 High 41 41%

2 Moderate 59 59% 43

3 Below average 0 0%

Total 100 100%

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No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation:

From the above table we can know that the 41% of the employees highly

satisfied with the support given by the management,59% of the employees satisfied up to

some extent with the support given by the management.

CHAPTER – VI 43

FINDINGS,
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VISAKHA DIARY

SUGGESTIONS AND
CONCLUSION

FINDINGS

 From the survey I can came to know that all most all welfare measures providing to

the employees by the company.


43
 Most of the people know about the welfare activities.

 Most of the people felt that welfare activities increasing the job satisfaction and

productivity.

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VISAKHA DIARY

 Most of the employees satisfied with the working hours in the company.

 Most of the people expressed the the housing and traveling conveyance is good in

position.

 Most of the employees satisfied with the educational allowance provided by the

company.

 Most of the people satisfied with medical benefits provided by the company.

 Most of the people got an opportunity to grow since last 3 years.

 All most all employees satisfied with the materials and equipments in the company

to work effectively.

 All most all employees satisfied with the promotional facilities given by the

company.

 Most of the employees are satisfied with the their superiors treatment towards them

and in taking suggestion from the employees.

 Most of the employees satisfied with the support given by the management.

SUGGESTIONS

 From the survey I observed that the employees are not fully satisfied with the

canteen facilities so that the management should increase the food quality.
43
 The induction period of the employees should be increased.

 There is a need of proper labeling or notification of each department of sections in

the Visakha dairy.

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 Some safe captains should place in the various sections of dairy importing or

spreading awareness among the employees.

 To avoid confusion the storage tanks should be labeled or numbered properly.

 Advertising should be increased to upgrade the image of Visakha Dairy in the

changing environment where private dairies are coming up.

CONCLUSION

Vijaya visakha dairy was one of the biggest dairy in terms of milk products and annual

productivity among the dairy plant. Visakha dairy is the one of the best in marketing,
43
packaging, storage, distribution channel, HR wise and financially good.

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VISAKHA DIARY

Vijaya visakha dairy motivates their employees by giving good salary, wages

and providing all most all welfare measures. The greatest highlight of the vijaya visaka

dairy is ‘the employee are not gone in to any strike’ till today.

43

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VISAKHA DIARY

BIBLIOGRAPHY

BIBLIOGRAPHY

Text Books:
43

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VISAKHA DIARY

1. Aswathappa K. (1997). Human Resources and Personnel

Management. Tata McGraw-Hill Publishing Company limited, New

Delhi.

2. Bhagoliwala, T.N., (2001) Personal Management and Industrial

Relations, Sahitya Bhavan, Agra.

3. Edwin B.Flippo, (1976) Principles of Personal Management,

McGraw-Hill, New York.

4. L.M.Prasad, (2005), Principles and Practices of Management Sultan

Chand &Sons Educational Publishers, New Delhi.

5. Monappa Arun and Saiyadin S Mizra, (1979), Personnel

Management, Second Edittion,New.

43
Websites:

www.hrsolutions.inc

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VISAKHA DIARY

www.e-hresources.com

www.hrdnetwork.com

www.wikipedia.com

www.12manage.com

Journals

 Indian journal for Industrial relations

 HRD Review

\
ANNEXURE

43

Dear sir/madam,

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VISAKHA DIARY

I am SOBHA RANI. DUMPA pursing my MBA from Aditya institute of PG

studies affiliated to AU as a part of my project work. I prepared questionnaire on the

welfare activities in visakha dairy in Visakhapatnam.

Name :

Employee No :

Designation :

Department :

Age :

QUESTIONNIARE

1. Are you aware of welfare activities? 43

a) Yes b) No

2. How do you feel about the cleanliness of office?

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VISAKHA DIARY

a) High b) Moderate c) Below average

3. How do you feel about the lighting conditions of office?

a) High b) Moderate c) Below average

4.Are you satisfied with the working hours of your job?

a) Yes b) No

5.Are you satisfied by educational allowance?

a) Yes b) No

6. How do you feel about the medical benefits provided?

a) High b) Moderate c) Below average

7. Who are covered under medical air policy?

a) employee only b) employee, spouse, 2 children

c) employee, spouse, parents

b) employee, spouse, parents, 2 children

8. Is the company providing recreational activities?

a) Yes b) No

9. what are the frequencies of recreational activities?

a) Monthly b) Quarterly c) Annually

d) Need based

10. Are you satisfied with the increments based on performance appraisal?

a) Yes b) No

11. How do you feel about canteen facilities? 43

a) High b) Moderate c) Below average

12. How do you feel about housing and traveling facilities provided by company?

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VISAKHA DIARY

a) High b) Moderate c) Below average

13. How do you feel about ESI Policy?

a) High b) Moderate c) Below average

14.Is the company provided proper information if any changes takes

Place?

a) Yes b) No

15. What is your opinion regarding promotional facilities in the

company?

a) Satisfied b) To some extent c) Dissatisfied

16. Have you had any opportunity to grow at work since last 3 years?

a) Yes b0 No

17. How is the insurance amount decided?

a) Fixed b)Based on compensation C) Based on level

18. Do you satisfied with materials equipment provided to you to

work effectively?

a) Yes b) No

19.Does your superior or supervisor at work seem to care about as a

person?

a) Yes b) No 43

20. How do you feel about the support given by the management?

a) High b) Moderate c) Below average

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VISAKHA DIARY

43
BIODATA

Name: D. Sobha rani

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VISAKHA DIARY

Father’s
Name: D. Durga Rao

Date
Of Birth: 10-03-1986.

Age: 22

Sex: Female

Nationality: Indian

EDUCATIONAL QUALIFICATIONS:

Qualification College/School Board / Year Aggregate


University

Post Aditya institute of Andhra University 2008-10 pursuing


Graduation P.G studies,
surampalem

B.sc(Biology) Sri chaitanya Andhra University 2004-07 66%


Degree college,
Vijayanagaram

10+2 (Bi.P.C) Jawahar Navodaya Central Board of 2002-04 65%


(AISSCE) Vidyalaya, Secondary
Srikakulam Education

10th (AISSE) Jawahar Navodaya Central Board of 2002 57%


Vidyalaya, Secondary
Srikakulam Education

43

105

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