1. 1. PREFACE “True learning is born out of experience and observation”.

Practical experience is
the best type of learning that one can remember as the aspects of administration and
management. The day comes to apply the theoretical knowledge in corporate world in context
of modern industrial enterprise that has to go through its different terminal to achieve the
corporate goals. The main objective of practical training is to develop practical knowledge and
awareness about industrial environment and business practices in the student as a
supplement to theoretical studies. It increases the skill, ability and attitude to perform specific
job in industrial environment.”
2. 2. Fortunately I got opportunity to visit and complete my Fortunately I got an opportunity to
visit and complete my summer training program at CAMPCO CHOCOLATE FACTORY, at
Kemminje, puttur. Here I got chance to see the functioning of all major departments and
imbibe a lot learning of the subjects.
3. 3. EXECUTIVE SUMMARY The MBA course offered by the Bangalore University has its own
unique syllabus which requires its MBA students to undertake an internship with any of the
leading business houses for a period ranging from 4 weeks to 6 weeks during the second
semester. The purpose of this internship is to enable the students to appreciate and
understand the nuances of the practical world vis-à-vis the theoretical input administered
during regular academic sessions. This helps in creating managers who are equipped with the
experience of
4. 4. linking the theoretical inputs with those of practical exposure and come out with creative
solutions and ideas in enhancing the business. In partial fulfillment of MBA degree of Bangalore
University I took up an organization study at CAMPCO chocolate Factory, puttur for a period of
four weeks. The objective is to learn about the working of a company. The practical aspects
was studied and compared with the theoretical aspects learnt in the course. The study involves
visiting the various departments of the organization to learn about their structure and their
functions. The incorporation, background, vision and mission of the company were briefed by
the Administrative department. The work flow model was briefed before the visit to the
production unit. The product profile was collected by visiting the departmental outlet.
5. 5. The study was more emphasized on 7S Mc Kinsey’s Model and the SWOT analysis of the
company. The study provides a good exposure to the corporate world and a good comparison
of the practical and theoretical aspects as studied in the course. DECLARATION I, N.Pramod
Shetty, do hereby declare that the internship report on “CAMPCO CHOCOLATE FACTORY,
PUTTUR” has been accomplished by me under the eminent guidance of Professor Hema
Harsha, Faculty, M.P. Birla Institute of Management, Bangalore. I submit this report in partial
fulfillment of the requirements for awarding “Master of Business Administration” degree of
Bangalore University during the
6. 6. academic year 2008-10, and not for the award of any degree of any other university. Place:
Bangalore Date: (N.Pramod Shetty) CERTIFICATE This is to certify that the Internship Report on
“CAMPCO CHOCOLATE FACTORY” has been prepared by Mr. N.Pramod Shetty bearing
registration number 08XQCM6048, under my guidance. This has not formed a
7. 7. basis for the award of any other Degree/Diploma by Bangalore University or any other
University. Place: Bangalore Date: M/s Hema Harsha (Internal guide) PRINCIPAL’S CERTIFICATE
8. 8. This is to certify that the Internship Report on “CAMPCO CHOCOLATE FACTORY” has been
prepared by N.Pramod Shetty bearing registration number 08XQCM6048 under the guidance of
Professor Hema Harsha, Faculty, M.P Birla Institute of Management, Bangalore. Place:
Bangalore Date: Dr. Nagesh S Malavalli (Principal) INTRODUCTION The report is based on the
organization study at the CAMPCO CHOCOLATE
9. 9. FACTORY, puttur for a period of four weeks as per the B.U norms. An attempt was made to
learn about the manner in which a company works. The study included the visits and
collection of information from the various departments of the company with the following
objectives: • Inception and background of the company. • Ownership pattern and the nature of
 business carried on. • Vision, mission and the quality policy of the organization. • The product
profile and the
10. 10. competitors for the same. • Workflow model of the company. • The structure of the
company and the various departments along with the main functions. • The marketing
strategies used. • The chocolate industry and its contribution to the economy. • SWOT analysis
of the company. A visit to the retail outlet was made to learn about the various product lines.
An interaction was made with the visitors to
11. 11. know their views towards the company’s products and their expectations from the
company. ACKNOWLEDGEMENT The immense gratification this project work has given me and
does not lead to a sense of fulfillment unless I express my boundless gratitude to all those who
made
12. 12. this work successful. I do recognize that mere thanks giving would not redeem me of my
indebtedness for all the timely help, support and guidance I received. I script on this page my
sincerest thanks to each one of them. I profusely thank Mr.Abu Baker, AGM of CAMPCO for
giving me an opportunity to do my internship in the esteemed organization and for giving the
information about the company and guiding me throughout the program. I am extremely
thankful to M/s Hema Harsha Lakshmi Narayana, Professor, M.P Birla Institute of Management,
Bangalore, who has guided me throughout this project by giving valuable suggestions and
advice. I equally thank all the Employees and Executives of CAMPCO who have extended their
suggestions and interacted
13. 13. with me and helped me learn a lot during the project. I offer my humble salutations to the
lotus feet of the Almighty for his bountiful blessing without which I would not have completed
this endeavor successfully. N.Pramod Shetty
14. 14. INDUSTRY PROFILE Chocolate was discovered in the 18th century and every child’s dream
came true all over the world. The various brands of chocolate often spoken about in India are
Amul, Cadbury and Campco. In olden days, the ancient human almost led a nomadic life
wandering from place to place in search of food. Food is the basic source of energy for living
organisms including human beings. Hence all living being need food. But in modern period,
man had started discovering new methods of producing food through Agriculture. The various
activities involved in getting food crops through agriculture are known as agricultural practices
like management of soil, sowing, transplantation and application of manure and fertilizers
irrigation, weed- control, crop improvement techniques, crop harvesting and protection.
15. 15. India is a land of villages. Nearly 65-70% of our country is agriculturists. About 75% of the
land used for agriculture is cultivated for basic food grain hence it has become a basic industry
in our country. Agriculture is one of the oldest occupations of human beings. Agriculture
means ploughing of the land, sowing seeds, protecting plants and obtaining crops for the use
of people and domestic animals. Commercial crops not only help to earn foreign exchange but
also provide raw materials for industries. Cocoa is also one of the important commercial crops
in India. Cocoa is grown on the slopes of Niligiri Hills. The discovery of cocoa was only a first
step in the direction of chocolate. The Mayas were the first to cultivate the cocoa bean for the
fruits is yielded. They used the beans as an ingredient in their favorite
16. 16. chocolate drink xocoatl. The Mexican Indian world chocolate comes from a combination of
the terms chocolate consumed in beverage force. Before the Spanish explorer discovered the
chocolate and other ‘exotic’ foods were totally unknown in Europe. In the 1600 European
began to open fashionable chocolate houses to serve xocoatl as Hot Chocolate scattered with
sugar. In the 1700’s the English began with adding milk to improve the flavor. The first factory
for processing and manufacturing chocolates in India was started during the world war-II at
Bilimoria but due to tough competition from foreign products the company is ceased and
stopped its process and it made second attempt in 1936. But it faced failure as the size of
operation was economical. Finally it made
17. 17. third attempt to find its success to restart its production. Messrs Sathe Biscuit and
chocolate co. ltd., Poona commenced production of cocoa powder on a small scale and
 chocolate manufacture was taken up in 1941. Then the production gradually increased. Later,
Madhu Canning Factory Agra, East India Distilleries and Sugar Factories Limited Madras started
the production of chocolates. With the machineries manufactured by five major companies of
the cocoa processing aand chocolate manufacturing namely- M/S Carle and Montanari Spa,
Italy. M/S 1-Aasted International APS, Denmark. M/S Otto Hansel Gmbh, West Germany.
M/S Sollich Gmbh and Co. kg, West Germany. M/S Sig Swiss Industrial Co, Switzerland.
Cadbury Ltd., which was so far importing
18. 18. cocoa and chocolates into the country, established plant in Bombay for processing and
packing of cocoa imported in bulk during the initial stage. The new firms that have engaged
into this field in India are Amul, which has completed 50 years of service and the CAMPCO,
which came up during the 80’s. CAMPCO is one of the largest factories in South Asia. Cocoa is
used as beverage and chocolate is mainly used as confectionary and to a small extent also
used as beverage. The market share of CAMPCO is 5-8%, the Cadbury’s market share is 70%
and the Nestlé’s market share is 15-20%. The penetration of chocolate in the country was
estimated at 5.5% in 1998. The penetration in urban India stood at while that in rural India as a
mere 2.3%. Thus the consumption of chocolate is largely restricted to urban areas where too,
the penetration is relatively low. During the last five years
19. 19. growth in chocolate in India has covered between 10% and 20%, with average growth being
at the range of 14-15%. Restricted to urban areas played in the segment have attempted to
accelerate growth by adding new consumers to the chocolate market. Although the country
with a culture of consuming and exchanging sweets, pre- packed branded sweets are yet not
popular. The consumption pattern and purchase habits trend to favor local, freshly made
products. The ability of chocolate companies to enter this market could provide
unprecedented with may be tempering of income pyramid and introduction of low price packs.
COMPANY PROFILE BACKGROUND AND INCEPTION OF
20. 20. THE COMPANY “CAMPCO” is the short name of the Central Areca nut and Cocoa Marketing
and Processing co-operative limited. CAMPCO was registered on 11th july in the year 1973,
under section 7 of Karnataka Co-operative societies act of 1959. The main activity of CAMPCO is
procuring and marketing of Areca nut and also manufactures chocolates. CAMPCO was set up
with active support of Karnataka and Kerala Government. The growers who were getting a
reasonable price faced a sudden marketing crisis during the year 1970-71 when the price of the
areca nut began to fall. The situation worsened during 1972 and the price of areca nut fel to
such an extent that the growers could get only half of the price. But the cost of living was rising
as the cost of input was steadily increased. This created factually a panic among the growers.
There was no organized marketing arrangement for areca nut.
21. 21. Later on the Karnataka Government constituted an expert committee, which
recommended to the State Government to organize a Central agency either in the public or the
co-operative sector. With the help of Government of Karnataka and Kerala, the “Central Areca
nut Marketing and Processing Co-operative limited” popularly known as “CAMPCO” on 11th
july 1973 under section 7 of the Karnataka Co-operative societies Act 1959. The growers of
areca nut appealed to the Government in turn requested CAMPCO to help the farmers by
buying their products. CAMPCO thus went into business of cocoa beans in 1980. After that
CAMPCO was able to export cocoa beans of worth Rs.4 crores to the European countries in
their initial phase of operation. In the mean time CAMPCO has to face the problem of limited
internal market and unremunerative export market. In order to overcome this and increase the
local
22. 22. consumption of cocoa based products and export value added cocoa semi-finished
products. CAMPCO put up a chocolate factory at Puttur, 50km away from Mangalore. CAMPCO
has signed agreement between companies. They are: AGREEMENT WITH M/S NESTLE INDIA
LIMITED. CAMPCO chocolate factory entered into an agreement with M/S Food Specialties Ltd
known as M/S Nestle India Ltd, on 7th February 1990, for manufacture and supply of bulk
quantity of chocolates and cocoa products ranging from 2500MT to 3750MT p.a for an agreed
 manufacturing fee of Rs. 12,000/- per MT of raw materials. At first Nestle didn’t have any plant
and because of experienced people availability of all type of chocolate production with
sophisticated machineries nestle made an
23. 23. agreement with CAMPCO. This agreement is also made good result on CAMPCO to gain
demand in competitive market. AGREEMENT WITH AMUL LIMITED CAMPCO factory had entered
into an agreement with Amul India Ltd, on January 2001 for the manufacture and supply of
bulk quality of chocolates. The agreement was made only for 5 years. The Amul Ltd supplies
the raw materials to the CAMPCO Ltd; the CAMPCO makes chocolate and supply to Amul Ltd.
The chocolate products, which were produced to the Amul Ltd, are as follows: • Milkair – 5.5gm
– white centre chocolates. • Chocolate – 5.5gm – brown centre chocolates. At present CAMPCO
is having its own marketing team and the present set up as follows:-
24. 24. CAMPCO is one of India’s most modern chocolate manufacturing co- operatives. Today
CAMPCO has diverse products. It is now affording product quality with a variety to cater wider
section of the market. CAMPCO manufactures and markets a different range of products under
its own brand name. The production and demand for chocolate have been rapidly increasing in
India at the rate of 20% during the last 5 years. The average growth is at 20% internal chocolate
market, which is now about 5500 tonnes. CAMPCO chocolate unit sales performance in terms
of value is increasing year by year. The sale includes sales of semi finished products also. The
major purchases of semi finished products within India are as follows- • Britannia
25. 25. • Smith Kline Beechem • Parley • Small Confectionery Manufactures • British Biological •
Bambino Sales performance during the last 7 years is as shown below: YEARS SALES(MT) 2002-
03 2425.92 2003-04 2596.73 2004-05 3140.45 2005-06 2622.03 2006-07 3995.5 2007-08 4742.19
CAMPCO at Glance Full Name of the organization : The Central Areca nut and cocoa Marketing
and Processing Co-opeative limited
26. 26. Status: A Co-operative Society registered under the multi state co-operative societies act
1984. Area of Operation: Karnataka and kerala state for membership. No limit for marketing
Main objective: Procurement/Processing/Marketing of arecanut and since 1980 cocoa/cocoa
products Date of Registration: 11-07-1973 Date of commencement of business : 12-11-1973
Registered office : Varanasi towers at Mangalore. Brand name : CAMPCO Type of ownership :
Semi-Government Date of entry into Chocolate : March/April 1987 Authorized share capital :
Rs.35 crores. Paid up share capital : Rs. 14.90 crores as on 31-03- 2008. Number of Branches
and Depots : 168 (all over India)
27. 27. Industries owned: 1. The CAMPCO Chocolate unit. Puttur 2. The copper sulphate
manufacture unit at sagar (shimoga district). Location : Kemminje, Puttur. Type of
Organization : Co-operative Society. Number of Employees : 237 + 130 workers appointed on
contract. Production Capacity : 8800 MT. Number of Shifts : 6 am – 2 pm 2 pm – 10 pm. 10 pm –
6 pm. NATURE OF THE BUSINESS CARRIED BY CAMPCO. The Central Arecanut and Cocoa
Marketing and Processing Co-operative Limited (CAMPCO) was registered on 11th july 1973
under section 7 of the Karnataka Co-
28. 28. operative Societies Act 1959 read with section 4(2) of the multi unit Co-operative Societies
Act 1942 and subsequently it has amended its byelaws and the same are registered under the
Multi state Co-operative Societies Act 1984. Under certificate No.L/11016/42/87/L and is dated:
8-12- 1988. The main activity of CAMPCO is procuring and marketing of Areca nut and also
manufactures chocolates. Features of the CAMPCO Chocolate Factory Following are some
features of CAMPCO Chocolate factory: The Chocolate factory is a Co-operatively owned
organization and maintained by CAMPCO. • The factory is the largest in south-east Asia. • The
factory is one of the most modern in the world. • The factory is equipped with the latest
29. 29. technology and machineries, imported from five firms of 4 European countries. • The
factory is equipped with service installed by the best firms in India. • The factory is designed by
well experienced and expert architects and consultants. • The factory is situated in an
industrially backward rural area in the midst of Cocoa growers. • It generated employment for
more than 200 personnels. VISION, MISSION AND QUALITY POLICY Vision of the Company
 “CAMPCO is formed to help the farmers, procuring more and more areca nut and cocoa, then
utilizing these materials in a better way which will help the farmers to get market for their
products.”
30. 30. Mission of the Company CAMPCO’s mission statement is: “Co-operation between people
Harmony between faiths… May the fragrance of peace prevail forever” “From areca to
chocolates, this policy has taken us a long way. And we are happy to share this secret with you.
At CAMPCO we, symbolize the triumph of the co-operative spirit. And how co-operative can be
a source of prosperity.” This mission statement maintains that the company has a good
relation between people and harmony between faiths and high set of values and purposes
behind its existence. QUALITY POLICIES ‘HACCP’ (Hazard Analysis Critical Control Point) is a
quality policy which is used for
31. 31. food safety. Food safety is the top concern among food processors for very good reasons. It
is critical for corporate survival and success. If there is a significant safety failure, excellence in
other areas of corporate management will be wiped out and the company will loose on= •
Regulatory Compliance • Vendor Certification • Supply Chain Performance and Contract
Fulfillment • Corporate Value PRODUCT PROFILE The product of CAMPCO is chocolate. A
product is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a need or want. The chocolate products are classified into
Moulded, Enrobed, Éclairs and Drinking Chocolate.
32. 32. MOULDED CHOCOLATE Moulding is the casting of liquid chocolate into moulds (metal or
plastic) followed by cooling and demoulding. It includes products such as CAMPCO Melto
37gms and 10gms, CAMPCO Cream 37gms and 10gms. ENROBED CHOCOLATE It is a process of
coating a center with chocolate is other confectionery based material so as t allow the coating
to flow over the shape in a controlled manner. It includes products such as CAMPCO Turbo,
CAMPCO Treat, CAMPCO Megabite, CAMPCO Bar, 4ever(32gm), krust 20gm and 12 gm. ECLAIRS
Éclair is a modified toffee containing an
33. 33. outer shell of caramel with a centre filling usually chocolate, chocolate creams etc. it
consists of products such as CAMPCO Eclairs, Melto Eclairs, Brown Center Eclairs and Playtime.
DRINKING CHOCOLATE Drinking chocolate can be prepared by following ingredients sugar,
cocoa powder, glucose, vitamin C, lecithin, salt. It includes product such as CAMPCO Winner
(500gms and 100gms). THE VARIOUS CHOCOLATES FROM CAMPCO CHOCOLATE FACTORY Net
wt/unit M.R.P (in Rupees) Moulded Chocolate Melto 37 gms 10 Melto Cream 37 gms 10 Campco
Bar 45 gms 10 Enrobed Chocolates Krust/Kraze 15 gms 5 Mega Bite 17 gms 5
34. 34. Turbo 25 gms 5 Treat 25 gms 5 Drinking Chocolate Winner 500 gms & 100 gms 65 & 18
Eclairs Playtime(small) 4.5 gms 3 Campco Eclairs 4.5 gms 0.50 Campco Toffee 4.5 gms 0.50
Eclairs 2000 5.5 gms 1 Supply to Nestle Ltd Milkybar Eclairs 5.5 gms 1 Classic (Brown) 37 gms 10
Milkybar (White) 40 gms 14 Supply to Amul Ltd Milklair 5.5 gms 1 Choclair 5.5 gms 1 Semi
finished goods Cocoa Mars 25 gms Cocoa Butter 25 gms Cocoa Powder 25 gms Chocolate Mars
500 gms* 20=10kgs Choco Paste 20kgs Butter Chocolates 500 gms* 20=10kgs AREAS OF
OPERATION- GLOBAL/NATIONAL/REGIONAL The area of operation of this co- operative for
procurement and processing of
35. 35. areca nut and cocoa extends to the states of Karnataka and Kerala, but for the marketing
activities the area has been extended to the whole country. Areca nut purchase operations
were extended to Assam, Andaman and Goa but in recent year’s purchase operations in Assam
had to be closed due to disturbances. GLOBAL CAMPCO produces wide range of cocoa based
products of consistent quality, colour and flavor to satisfy the wide spectrum of customers all
around the globe. The company has built a strong system base for the confectionery of
chocolate industries in U.S, Australia and Malaysia. Export on the other hand generated a total
of about U.S $14 million over a 5 year period. Among the leading buyers were Malaysia, Korea
and USA.
36. 36. NATIONAL The company has various nationalized branch offices through out India under
them are the distributors followed b the dealers who sell the goods to the ultimate consumers.
 National Office throughout India North: New Delhi East: Kolkata West: Navy Mumbai South:
Bangalore REGIONAL The company has regional offices through out Karnataka. It has both
dealers and distributors and the distributors are followed by dealers and ultimately to the
customers. Regional offices are as follows – Mangalore, Hyderabad and Delhi.
37. 37. OWNERSHIP PATTERN The type of ownership of CAMPCO is semi Government. So the
workers get retired at the age of 58years. After the retirement the CAMPCO gives gratuity to
their employees but no pension. COMPETITORS INFORMATION CAMPCO has competitors such
as Cadbury, Nestle, Parrys, Nutrine and Amul. The CAMPCO has been unable to achieve the
volume growth targets because it has losing market share. Cadbury continues to dominate the
chocolate market with about 70% market share and Nestle has emerged as a significant
competitor with about 24% share. INFRASCTUCTURAL FACILITIES The CAMPCO chocolate
factory is
38. 38. located at Kemminje village of Puttur Taluk. And it was inaugurated on 1st September 1986.
There are 247 numbers of employees working in the factory. CAMPCO is a two storied building.
The first floor includes the office of the CAMPCO and chocolate packing division. The second
floor includes the deputy general manager chambers, quality control department, personal
department and different employee cabins. The company also includes security office at the
entrance, separate A/C units, and separate vehicle parking place and quarters for employees
including sitting facility, washing facility, toilet facility, dressing rooms, medical benefits etc.
CAMPCO has two wheelers, four wheelers and lorry as transportation facilities. The
surroundings of chocolate factory is filled with gardens and planted trees like areca nut,
coconut, cocoa, cashew etc. ACHIEVEMENTS/AWARDS
39. 39. Best Export Award 2004-05 for processing of CAMPCO Chocolate and for processing Areca
nut. And it has also achieved success towards adopting fully automated machines for the
production process. FUTURE GROWTH AND PROSPECTS CAMPCO has a better scope for
expansion of its activities in relation to different units like areca nut, cocoa in order to
safeguard and strengthening of CAMPCO function more effectively. • It has a target open at
least one sales depot in each state. • It proposes to enter the retail market for areca nut and
products like “supari”, “panmasala” etc by established units. • CAMPCO is thinking of starting
its own bank called CAMPCO bank, to provide banking services to the company. • The future
plan about production is to
40. 40. maximize output without sacrificing quality, maximum quantity control, reducing the cost,
improving the efficiency etc. • They also now introduced a new product like a small products to
Amul Ltd, winner, bar, coated bars with different flavors, chocolates. • CAMPCO also planned to
increase its sales by advertisements. • Capture international market by latest technologies. •
Conducting marketing research for knowing consumer tastes. • Enlargement of transportation
and ware housing facilities with safety precautious. • Improved qualify of wrappers of CAMPCO
chocolate which are not up to the mark. WORK FLOW MODEL (END TO END) The production
process of CAMPCO Chocolate factory is a continuous process
41. 41. which is divided into 1.Cocoa Processing 2.Chocolate Processing COCOA PROCESSING The
CAMPCO chocolate factory collects only the dry cocoa beans. The wet beans are fermented
and dried in the sales depots. There after processing begins: 1.Cleaning 2.Roasting
3.Winnowing 4.Alkalization 5.Nib ginning(milling) 6.Liquor Processing/Hydraulic Processing
CHOCOLATE PRODUCTION PROCESSING 1.Preparation of ingredients 2.Mixing 3.Refining the
mixture 4.Conching 5.Tempering
42. 42. 6.Molding 7.Cooling CLASSIFICATION OF CAMPCO CHOCOLATES CAMPCO produces larger
amount of chocolate based on 3 classifications: 1.Molded Chocolate 2.Enrobed Chocolate
3.Éclairs COMPANY PROFILE WITH REFERENCE TO THE 7-S McKINSEY’S MODEL. According to
Tom Peter and Robert Waterman, organization change is not simply a matter of structure,
although structure is a significant variable in the management of change. The successful
43. 43. execution of a strategy required the right alignment of seven vital inter-connected activities
and processes within an organization, namely- 1.Structure 2.Strategy 3.System 4.Style 5.Staff
6.Skills 7.Shared Values
44. 44. STRUCTURE The structure is the skeleton of the whole organization. It describes the formal
relationship among various positions and activities. It provides information about who reports
to whom and how tasks are both divided and integrated. And also CAMPCO follows functional
organizational structure. ORGANIZATION AND MANAGEMENT The management of CAMPCO
vests in the boards of directors consisting of 17 directors. These directors are elected or
nominated as per the provisions of Bye laws. The managing director is appointed by the
Government of Kerala. The day today activities are conducted by the managing directors. The
Executive committee and Business committee will devote more time to scrutinize and decide
about the financial and business transaction of the factory.
45. 45. There is one or two legal advisors as well as one of the directors is the nominee of IDBI to
facilitate and make the management more effective. Two committees have been constituted.
They are as follows; The Executive Committee a)President. b)Vice President c)Managing
directors d)Two directors from each state. Business Committee a)President b)Vice President
c)Managing directors d)Two directors from each state (Karnataka and Kerala) e)Two senior
most officer for ARECA marketing.
46. 46. f)The Head of CAMPCO Chocolate factory, Puttur. Membership of CAMPCO There are five
different types of shares; class A, B, C, D and E issued to different class of people. ‘A’ class is
open to agricultural produce market. ‘B’ class is open to agriculture produce market
committee of Areca and Cocoa growing areas, co-operative marketing and consumer
federation, any other multi-state co-operative society or any corporation owned or controlled
by the Government. ‘C’ class is open for individual growers of Areca nut and Cocoa in both the
states. ‘D’ class is open for state Government and
47. 47. Central government and NDC. ‘E’ class is merchants and agents who have business in
connection with CAMPCO. Functional Departments There are several functional departments
in CAMPCO chocolate factory, which are handling various operations. They are a)Production
Department b)Administrative Department c)Quality control Department d)Stores Department
e)Marketing Department f) Maintenance Department g)Accounts Department h)Security
Department Production Department The production department is headed
48. 48. by production manager. Under him/her there are supervisors to look after the production
activities. The production activities are in three shifts by rotation. The packing supervisors also
come under the production department. The supervisors supervise the work of packing
department and personnel work under piece rate system. The main function of this
department is to achieve targeted production objectives. They are: • To follow up daily
production schedules as per the plan. • To upgrade the technical efficiency of production. • To
maintain relationship with other department. In production department, the Chief Manager
plans the different production as per the market requirements. The future plans of this
department are to maximize the
49. 49. output without sacrificing quality, reducing cost and improving quality. Administrative and
Personnel Department Administrative Department. The administrative department looks after
the day-to-day administration activities of the factory. at the top level there is an
administrative manager. Normally the General Manager carries over day-to-day administrative
activities in the factory. He is also assisted by the various departments in the factory. The
General Manager is accountable to the head office that is in Mangalore. Personnel Department
Personnel management deals with the human aspects in an organization
50. 50. undoubtedly; people are most complete factor in an enterprise or organization. Main
objective of this department is to maintain the quality standards, work level and satisfactory
level of production and also to develop the procedure to help to select the right person for
right job. Personnel department of CAMPCO looks after the day to day administrative activities
of the factory. At the top level there is an administrative manager normally the general
 manager carries out day to day activities of the factory. In Personnel department, recruitment
forms the first stage in the process, which continues with the selection and ceases with the
placement of candidate. Management should recruit right kind of people at tight time for right
place. The vacancy posts are advertised in 3 leading newspapers of Kannada, Malayalam and
English as per the service rules of CAMPCO. The selection of employee is
51. 51. done through competitive examination and interview. Written test is conducted by the
outside agencies. The interview and selection of candidate is done by management. The
candidate recruited to the particular post may be placed under training for a prescribed period
or such extended period. If it is found necessary the pay shall be fixed by the M.D from time to
time. If the trainee discontinues the training, he/she shall be liable to reimburse the entire cost
of training as assessed by the M.D. Quality Control Department The quality control department
is headed y the quality control manager. Under him/her there are three supervisors. In this
department there is 1 microbiologist. There are few technical assistants to help the
microbiologist in his work. They check the quality of raw materials and also the quality
52. 52. of the products after production. If the firm ahs made any dilution on its quality, then it will
definitely affect its sales and profitability. That is why this department serves as one of the
important department. In this firm this department has to maintain the quality of the cocoa
beans used for production upon which quality of chocolates depends. Different types of quality
control techniques used in the chocolate plant; • Micro-biological quality control • Raw and
packing material analysis • Process control • Finished product analysis • Bacteriology testing
products for harmful pathogens • Shelf-life studying • Pest control Stores Department
53. 53. The stores department is headed by store manager. Under him/her there are supervisors.
The main function of the stores department is divided into 3 units. These three functions are;
receiving the raw materials for manufacture of chocolates and also packing materials and
sending it into go down. The stores managers are responsible to provide the raw materials to
required department and store the finished goods in the store. The store’s activities are carried
out in shifts by rotation. There are four documents maintained by the stores department. They
are; Material inward registers Daily stocks report Material register note Return note
book Marketing Department The marketing department is mainly classified into an areca nut
division and
54. 54. chocolate division. Each division is headed by Assistant General Manager. Under him there
are Chief Manager, senior manager and regional officers. Assistant General Manager controls
all the activities relating to the marketing department. He plans and prepares new marketing
policies and it can be properly implemented. The main objective of marketing department is to
fulfill the customer satisfaction and increase company’s sales and to contribute quality
products in the market. The main functions of this department are: To plan marketing
program To analyze the marketing opportunity To develop marketing strategy To
connect the consumer with the product Sales In CAMPCO sales are being conducted in two
ways. That is through
55. 55. depots and sales representatives. It has different depots though out India. The depots are
being opened to cater to the needs of whole sellers and retailers. A collection charges being
collected in the concerned depots. CAMPCO has introduced the services of sales
representatives throughout India. The rates and quality offered for sales are being decided by
the CAMPCO and on getting information from its customers, their representatives place written
orders. The sales of Cocoa products are being made at CCF/Area sales office level through the
distributors/ super stockiest on cash or credit basis. The Executive Director of
marketing/Regional managers required to supervise and excersise control over CCF, Area sales
office. Channel of Distribution Of the four elements of marketing mix that is product, price,
promotion and distribution.
56. 56. The channel of distribution plays a vital role especially in the distribution of consumer
goods. CAMPCO generally follows and uses indirect channels of distribution. CAMPCO supplies
goods to super stockiest and in turn supplies to whole salers and whole sellers to retailers.
 CAMPCO offers 21 days credit facilities to whole seller and for delayed payment they charge
21% of interest. Services The product manufactured in CAMPCO (CCF) are marketed and sold
through out the country and it is exported to some countries. The proper service that is the
company provides service to its customer in the form of prompt delivery of goods should be
given by paying attention to the customer complaints and services. The improving quality of
customer education
57. 57. and training and services is the main criteria of CAMPCO that include ability to provide
replacement parts and repairs services. Maintenance Department The maintenance
department is headed by maintenance manager. Under him/her there are maintenance
assistants and engineers. They check the machines and are responsible for their working and
maintenance. There are two types of maintenance. 1. Breakdown maintenance. 2. Preventive
maintenance. Breakdown Maintenance This refers to the supervision of machineries only after
it breaks down and makes it fit for future use.
58. 58. Preventive Maintenance Preventive maintenance refers to take care of machinery before
breakdown. Under this system the machines are frequently checked and repaired. Account
Department/Financial Department The CAMPCO chocolate factory has maintained an accounts
department. The chief accountant is in charge of this department. Under him are the senior
office assistants and junior office assistants working in the department. A report has to be sent
to the head office about the day-to- day work and expenses incurred. The functions of account
department are: • Handling day-to-day accounts of the factory • Providing salaries to the staff •
Maintaining accurate financial records • Giving information to the head office
59. 59. • Payment of bills and keeping account Security Department Security department is also
important for each and every organization. Security departments has 10 acres of land and
Rs.125 crores worth of assets including buildings, land and machines and others. It provides 3
acres of land as quarters to the employees. This factory covered with fencing barbered wire
leaving one main exit called gate. The main gate is controlled by security person called senior
security officer. He should be a graduate and he should have at east 15 years of service in
defense. The duties and responsibilities of security department are: • Checking of incoming
and outgoing personnel, vehicles, items etc • Maintenance of discipline inside the factory •
Prevention and detection of theft etc. • Security • Other duties are empowered by managing
60. 60. director of CAMPCO. SKILLS The Mckinsey’s 7-S framework considers skill as one of the
important attributes or capabilities of an organization. The term skill includes those
characteristics which most people use to describe a company CAMPCO chocolate factory
includes skilled staff and workers in its operations and productions who are expert in their own
field. Administrative officer have code knowledge and skill in their particular field, it is
preferable to have master degree in their work. Machine operators of different department
have wide knowledge and skill about operations and handling of machines, chocolate
manufacturing process etc. if the selection of skilled worker is done properly then it will result
on effective operation of the manufacturing process, administration
61. 61. etc. CAMPCO also follows technical skills, innovative skills, communication skills. In
CAMPCO all new recruits (both technical and managerial) are provided “on the job-training
method”. Under this training method, the individual is placed on a regular job. It has the
advantage of giving first hand knowledge and experience under the working condition. STYLE
Organizations differ from each other in their styles of working. The styles of an organization is
evident through the pattern of action taken by the top management over a period of time. But,
the Mckinsey’s framework considers styles as something more than the style of top
management. CAMPCO follows participative style of management. Participative style of
CAMPCO helps in the processing and marketing of chocolates also. Each and
62. 62. every departments take decisions together which help the company to take the steps in
their daily transaction or operations. STRATEGY Strategy is the set of decision and action plans
aimed at gaining a sustainable competitive advantage. Today most of the enterprises are
engaged in strategic planning. The degree of the sophistication and the formative vary
 considerably from organization to organization. In the case of CAMPCO chocolate factory, the
strategy is to produce and sell standard and good quality chocolates with well guided
procedure and good quality of raw materials from different supplying company with a quality
check to delivery the products to the customer. Strategy includes objectives, goals, purpose
and policies, action plans and tactics. The objectives are: • To procure areca nut and cocoa of
the
63. 63. members and if necessary from other growers. • To undertake processing of areca nut and
cocoa and to establish industries for the manufacturing of finished and semi finished products
from areca nut and cocoa. • To open branches and depots, godowns and factories. • To arrange
for procurement, manufacture and distribution of pesticides, fertilizers etc. • To undertake
pooling, packing and standardization of Areca nut and cocoa. Pricing Policy CAMPCO adopted
the policy of full cost pricing. But sometimes they marketed the products at price lower than
that of cost price and its prices are normally lower than competitors. CAMPCO has adopted on
pricing policy where by the company specifies the prices to be charged to each dealer in the
price list published by the
64. 64. company. There is no geographical change in prices. Discount Policy It has varying discount
share, which includes trade discounts, cash discounts, special discounts etc. In some cases
discount rate varies from dealer to dealer depending on sales turnover and in some cases the
discount varies depending upon size of purchase. Collection Procedure The dealer provides
security such as bank guarantee. The payment must be made within 15-40 days depending
upon sales turnovers. Systems Systems in the 7-s framework refer to all the
65. 65. rules, regulations, methods and procedures (both formal and informal) that complement
the organizational structure. CAMPCO is fully mechanized plant. The function of production
control in products of the productions parts, products of required quality and quantity at the
required time and also provides feedback to the production department and allocates or uses
the resources available to achieve the objectives. The production planning is valued on the
factors of designing of products that determines the equipment, capacity etc. In Campco
chocolate factory various systems have been installed in each functional areas so as to
enhance the level of interaction and coordination thereby, in order to improve the overall
organizational effectiveness. Some of these systems include:- Computer System
66. 66. In Campco, each and every department is linked with intercom facility, which helps to
share each other opinion about company’s daily transactions. Office and each department is
equipped with computer system. Quality Control System In Campco, production is carried
quickly according to quality standards. The quality of product manufactured is of international
standards. The function is to check the quality of raw materials and also the quality of products
after production. Performance Appraisal System In Campco the performance appraisal work is
done in a special way. At the end of the year a report known as ‘Confidential report’ is prepared
by each and every
67. 67. departmental head. This report contains each and every information relating to a particular
worker working in a particular department. This report is then submitted to the higher
authority for evaluation. STAFF Staffing is referred as human resource of an organization where
they contribute to the fullest extent to achieve the organizational goal within a stipulated
period. Staffing represents the development of employees in terms of selections, placement,
training, promotion and performance etc. it include processes to develop in them the abilities
and skills that they need to be effective and efficient. In CAMPCO strength of the staff is 237
permanent and 130 contract based employees who are headed by Deputy General Manager
and under him there are 6 assistant managers for each department.
68. 68. Each and every staff is well educated and trained in their particular area of work assigned
to them. Staff is classified in to 4 levels. they are strategic level, Management level, Operating
level and Technical level. The duties and responsibilities of staff in CAMPCO chocolate factory
are shown in the table. Labour Welfare Measures CAMPCO provides good facilities to its
employees such as bonus, dearness allowance, provident fund, gratuity, yearly increment,
 edical allowance and welfare measures etc Bonus In CAMPCO 8.33% per annum bonus is paid
to the employee every year. The maximum limit was Rs. 2500. If the basic salary plus dearness
allowance is more than Rs. 3500, they do not come under
69. 69. bonus act. Dearness Allowance CAMPCO gives 43% dearness allowance twice in a year, 1st
January every year and again 1st July every year. It comes under Karnataka Government,
schedules. Provident Fund In CAMPCO chocolate factory provident fund is contributed as
follows: 12% of (Basic salary + dearness allowance) is employee’s contribution and equivalent
amount is contributed by management also. Duties and Responsibilities of staff. VARIOUS STAF
DUTIES & LEVELS F RESPONSIBILITIES Strategic level 2 To pass the orders and oversee and
review the functioning of
70. 70. all the departments. Management level 20 To control the activities of the Organization.
Operating level 155 To carry out day to day operating activities of the company Technical level
60 To engage in production and other technical maintenance activities TOTAL 237 Yearly
Increment CAMPCO provides yearly increment to their employee depending on the pay scale.
Minimum amount of increment is Rs. 10 and the maximum is Rs. 150. Promotions There is no
hard and fast rule in promotions. Employee promotions are given once in 8 years. The
promotion was made according to the seniority cum merit basis. Medical allowances
71. 71. CAMPCO also gives Rs. 2000 per annum as medical allowance. These medical allowances
are given in 2 installments once in march and other in September. Retirement Type of
ownership of CAMPCO is semi- Government. So the workers get retired at the age of 58 years.
After the retirement the CAMPCO gives gratuity to their employees but no pension. In order to
have eligibility for gratuity benefit the employees of CAMPCO has to complete 5 years of
service. In each year he/she should have perfect attendance. The person who retires or resigns
is eligible to get gratuity at the rate of 15 days salary multiplied by number of years of service.
Insurance Coverage All the vehicles belonging to
72. 72. CAMPCO in all the branches, all the buildings and go downs have been brought under
suitable insurance coverage, as could be seen from the records of CAMPCO. And the fixed
assets registered are maintained up to date. Welfare Measures in CAMPCO The following are
some of the welfare measures providing to the workers of CAMPCO. These measures are
classified as statutory measures and non-statutory measures. Statutory Measures • Canteen
facilities. • Cold water facilities. • Rent free accommodations. • Medical benefits. Non-Statutory
Measures
73. 73. • Uniforms. • Safety shoes, rain coats are provided. • The employees state insurance
facilities. Leave to the Employees In CAMPCO temporary worker gets 3 days casual leave per
year and permanent employees get 15 days per years. The company provides 20 days half
leave to their employee and 20days privilege to its workers. The CAMPCO chocolate factory
provides 10 days of holiday including the Government holiday and also it provides every
Sunday as the weekly holiday to its permanent employees. Duration of Work In the CAMPCO
chocolate factory, there are four shifts including the general shifts. The normal hours of work
are 8 hours. The
74. 74. timings of 4 shifts are as follows. Shift Timings 1. Shift - 6 am to 2 pm. 2. Shift - 2 pm to 10
pm 3. Shift - 10 pm to 6 am General shift – 9 am to 5.30 pm Shared Values Shared values refer to
set of beliefs, views, opinions value and aspiration of the employees that goes beyond the
formal statement of corporate objectives. In CAMPCO all employees share the same guiding
values and responsibilities for particular task, provided to them. Chief Executive gives
responsibility for each department about the task. It also maintains quality consciousness.
75. 75. SWOT ANALYSIS SWOT ANALYSIS The diagnosis of the firm’s strength and weakness can be
fruitful only if the environmental factors and market conditions are considered keeping in
mind the internal capabilities of the company. This approach essentially involves matching the
internal capabilities with the environmental opportunities and threats. STRENGTH 1. Large
Product Mix. One of the strength of the CAMPCO
76. 76. limited is large product mix. The CAMPCO produces the different type of chocolates that is
Melto, Cream, Turbo, Treat, Megabite, Campco bar, 4 ever, Krust, Éclair 2000 etc. 2. Largest
chocolate Factory in South East Asia. CAMPCO is the largest factory in south Asia. This
statement can be used to attract more clients. 3. Highly Committed Employees. WEAKNESS 1.
Lack of Promotional Activities. The CAMPCO chocolate factory is not promoting its products in
an effective way through media advertising. Poor marketing effort to push the product in the
market.
77. 77. 2. Suffering from huge loss. The CAMPCO chocolate factory has made huge loss for the past
several years. 3. Inefficient Utilization of the Capacity. The actual capacity of the CAMPCO
chocolate factory is 8800 metric tonnes. But the factory has not been able to make use of the
full capacity. 4. Inefficient Product Quality. The chocolate products are to be placed in a
required minimum temperature. If it is not preserved in a required temperature the quality of
the product will be effected. OPPORTUNITIES 1. There is a large market for chocolate which is
untapped in India.
78. 78. 2. Expanding the existing product mix can lead to increase in market share 3. Greater
product awareness can be brought about within all age group showing chocolates as the best
gift to friends and relatives. 4. Popularity can be gained through the social service in the
backward areas of south India. THREATS 1. There is a severe competition from multinational
companies such as Cadbury and Nestle. 2. Frequent changes in Government rules and
regulations and tax policies. 3. Competition from local players such as
79. 79. Amul. EFFECTIVENESS OF TRAINING INTRODUCTION Every organization needs to have well
trained and experienced people to perform the activities that have to be done. If the current or
potential job occupant can meet this requirement, training is not important, but when this is
not the case, it is necessary to raise the skill levels and increase the versatility and adaptability
of employees. Inadequate job performance or a decline in productivity or changes resulting
out of job redesign or a technological break through require some type of training and
development efforts. As the jobs become more complex, the importance of employee
development also increases. In a rapidly
80. 80. changing society, employee training and development are not only an activity that is
desirable but also an activity that an organization must commit resources to if it is to maintain
a viable and knowledgeable work force. “Training”, “education” and “development” are three
terms frequently used. On the face of it, there might not appear any differences between them,
but when a deep thought is given, there appear some differences between them. In all
“training” there is some “education” and in all “education” there is some “training”. Moreover,
the two processes cannot be separated from development. Precise definitions are not possible
and can be misleading, but different persons have used these activities in different ways.
DEFINITION
81. 81. After the selection of the employee, the next step is his training. Even old employees
require some training at various points in their career. The general objectives of training and
development are to assist the employee to expand and use more effectively his skill, talents
and knowledge and to assist him in finding his true potential and in preparing him for greater
and higher responsibilities. “Organized procedure by which people learns knowledge and skill
for definite purpose”- Dale S Beach – 1985. “The act of increasing the skills of an employee for
doing a particular job” – Edwin B. Fillip, 1984. In the words of Planty and Efferson, training is
“The continuous, systematic development among all levels of employee of that knowledge and
those skills and attitudes
82. 82. which contribute to their welfare and that of the company.” Training is defined by
Lawrence L Steinmetz as a short term process utilizing a systematic and organized procedure
by which non managerial personnel learn technical knowledge and skills for a definite
purpose. From an analytical study of the above definitions we may conclude that: Training is a
purposeful process. It is concerned with imparting and developing specific skills for a
particular purpose. Thus, training is any process by which the aptitudes, skills and abilities of
 employee to perform specific jobs are increased. Features of Training It is clear from the above
definitions that
83. 83. training is a part of the process of staffing and has the following features. • The basic
purpose of training is to guide and direct the learning of employees so that theymay perform
their jobs more efficiently. • Training helps the employe to increase his/her knowledge of facts,
policies, procedures and rules and regulations pertaining to his/her job. • Training is to assist
the employee in finding his true potential and in preparing him for greater and higher
responsibilities. • Training attempts to increase the skills of an employee for doing a specific
job more efficiently. It involves the development of one or a few specific technical skills. •
Training attempts to mould the attitude of an employee towards other co-workers, supervisors
and organization and create in him a sense of responsibility and interest in his job.
84. 84. • Train is given to operative (that is non- managerial personnel) for performing specific jobs.
Hence, training is job-oriented. • Training is a short-term process. Training courses are
designed for short term. • Training must be a continuous process. • To be effective and
accomplish the desired results efficiently, training must be planned systematically. • Training
must be aimed at all employees of the firm. It is necessary for the newly appointed employees
to learn the job. It is equally necessary for the existing employees whenever new method,
technique, or machines etc are introduced. Objectives of Training • To prepare employee for
meeting current job requirement including anticipated changes. • To prepare employees to
shoulder higher
85. 85. levels of responsibilities. • To ensure smooth and efficient working with the organization. •
To ensure smooth and efficient working with the organization. • To improve productivity with
quality. • To promote sense of ownership positive attitude and commitment amongst the
employees. Types of Training There are many ways to train people. But mainly training
methods are of two types: 1.On the job training. 2.Off the job training. On the job training
methods. This is the most common method of training. On the job training relies on current
employees to train new recruits, results
86. 86. depending on the trainer’s skill in training. The trainee is placed on the job and the
manager or the mentor shows how to do the job. To be successful the training should be done
according to structured program that uses task list, job breakdown and performance
standards as a lesson plan. It is highly practical and reality based. It also helps the employee
establish important relationship with his/her supervisors/mentors. a) On specific job 1)
Experience: This is one of the oldest methods of on-the-job training. This method which
involves learning by experience has proved to be very efficient. To make this approach
effective, it should be supplemented with other methods of training. 2) Coaching: This involves
coaching by a superior by personal instruction and guidance to a manager trainee. This
method
87. 87. increases motivation in the trainee. But this method is effective only if the superior is
properly trained and oriented. Further the superior may not have enough time to coach the
trainee and he may also neglect his job. 3) Understudy Program: In this method, an individual
works as an “assistant to” to the senior manager so that, eventually the deputy can assume full
responsibilities and duties of the job held b the senior manager. In this method, the trainee
learns be experience and observation. The main advantage of this method is that training is
conducted in practical and realistic situations. b) Apprenticeship Training: This method of
training is meant to give the trainee sufficient knowledge and skill in those trades and crafts in
which a long period of training is required for gaining complete proficiency. Generally the
trainees work as apprentices under the direct
88. 88. supervision of experts for a long periods, say 2-7 years. This program consists of providing
actual work experience in the actual job as well as imparting theoretical knowledge through
classroom lectures. c) Job Rotation: This method involves transferring a trainee from one job
to another on a systematic basis. If a trainee is rotated systematically from one job to another,
the general background of the trainee is broadened. This method provides training in actual
 situation and exposes them to other worker’s problems and view points. One main
disadvantage of this method is that production may suffer. d) Special Projects: In this method,
the trainee may be asked to perform a special assignment so that he would be in a position to
acquire knowledge and also to learn the work procedure.
89. 89. Sometimes, the management may create a task force consisting of trainees representing
different functions in the organization which helps the trainees in acquiring knowledge about
the special assignment. e) Committees and Junior Boards Committees and junior boards
which are also called “multiple management” are important methods of training. The trainee
by becoming a member of the committee gets an opportunity to interact with the experienced
managers and to know the problems of the organization and the view points of different
managers to solve the problems. All the decisions and suggestions made by the junior boards
are placed before the meetings of the board of directors of the company before taking final
decisions. f) Vestibule Training: The training in vestibule school is
90. 90. preliminary to actual shop experience. Vestibule training is an attempt to duplicate as
nearly as possible the actual working conditions of the work place. The trainees can
concentrate on training only, because they are not under any pressure of the work situation.
Further, regular Off the job training methods Off the job training is most commonly called
classroom training. It is a traditional way of education. Off the job training takes place either
inside the organization or at some external selected sites, may be institutes, universities or
professional associations which have no connection with the company. Off the job training
includes the lecturers, the conferences, group discussions, seminars etc. a) Special courses and
lectures: Some organizations like Tatas and
91. 91. Hindustan Lever, State Bank of India, LIC etc have their own development departments
which provide special courses and lectures for their employees. These organizations also
arrange some courses or lectures by the staff of some universities and institutes. Sometimes,
the business concerns may send their employees to attend course of 1-2 week duration
conducted by the institutes of management. b) Conferences: In this method, managers and
potential managers attend the conference programmes in which they pool their ideas and
experiences with certain problems which are a common subject of discussion. For example,
the conference may discuss specific problems such as planning, delegation etc. c) Case
Studies: The case study method which was
92. 92. popularized by the Harvard Business School, USA, is one of the common forms of training
to the emoplyees. In this method, instruction describes the actual situation or problems of a
specific concern and the participants are encouraged to take part in the objective discussion of
the problem. This method increases the trainee’s power of observation and also his analytical
ability. d) Simulation: In simulation, the real situation of work environment in an organization
is presented in the training session. In other words, in simulation, instead of taking participants
into the field, the field is simulated in the training session itself. Role Playing is one of the
common simulation methods of training. In role playing the participants play his role or those
of others under specific conditions of simulation. Role playing enables the participants to
increase his skills in dealing
93. 93. with other people. In role playing, the participants play different roles for different
situations and by this, they are enabled to deal with several problems from various angles. e)
Sensitivity Training: This method aims to influence an individual’s behavior through group
discussion. In group discussion, the trainees freely express their ideas, beliefs and attitudes. In
sensitivity training, the trainees are enabled to see themselves as others see them and develop
and understand other’s views and behavior. Further the participants are trained to become
patient listeners and resolve conflicts, if any. In addition, the trainees by interaction in a group
become sensitive to one another’s feelings and also develop increased tolerance for individual
differences. f) Incident method:
94. 94. In the usual case method, the entire problem is presented to the students, whereas in the
incident method, only a brief incident is presented to provoke discussions in the class. The
 group then puts questions to the instructor to draw out of him the salient facts and additional
information needed to arrive at a reasonable solution of the case. This method draws the
participants into discussion with greater emotional involvement. Need and Importance of
Training Training imparts skills and knowledge to employees in order to make them able to
cope up with the pressure of changing environment. Training is no longer a matter of choice to
an organization. The choice is only in the methods of training. The needs, importance and
benefits of training are as follows:
95. 95. Increase Efficiency Training enables the individual to develop skills and methods of doing a
job in a better way. This is more important in the case of changing technology. Uses Untapped
Potentials Training enables the individual to translate his untapped potential into actual
performance. Increases Morale Training increases the morale of employees by relating their
skills with their job requirements. It builds employee’s confidence in the company, develops
loyalty, raises morale and increases teamwork. Broadens Knowledge
96. 96. It broadens the knowledge of the employees in all phases of the company’s operations.
Improves Human Relations Training increases the quality of human relations in an
organization. It helps to solve many problems of social and psychological nature. Saves
Supervision Cost Trained employees require les supervision. With reduced supervision, a
manager can increase the number of his subordinates. This can save cost of supervision.
Prepares for Greater Responsibility It prepares the employees for lateral transfer, upgrading
and promotion within the organization.
97. 97. Organizational Asset Trained people are necessary for the survival of the organization and
to maintain effectiveness and to make short term adjustment with the existing personnel.
There is no greater organizational asset than trained and motivated personnel. • Reduces
labour turnover. • Training results in higher productivity. • More pay, recognition and other
benefits to the employees. • Trained personnel get job satisfaction. • Therefore, the chances of
leaving the job are less. Thus, training reduces labour turnover. • Training increases the quality
of work. • Quantity of output by improving skills and productivity of the employees. Short
Learning Time
98. 98. Effective training helps the employees to acquire the skills and knowledge to do a job
within a short span of time. Encourages Standardization Training encourages standardization
by teaching the best methods of performing the work to all employees. This will improve the
levels of performance. Cuts Costs and Wages Training creates cost consciousness. It teaches
the methods of economical use of materials and equipments, minimization of cost and
wastages. Creates Confidence Training creates a comfortable feeling of confidence in the
minds of workers. It develops adaptability among workers. It
99. 99. encourages them to accept challenges and risks. Growth of the Individual Training
develops skills, knowledge and attitudes of the employee in all respects. Provides Scope for
Promotion Training provides qualities essential for promotion and upgrading of the employee.
Better Rewards Training increases efficiency and productivity. It facilitates higher rewards and
benefits to the workers. Role of Training No organization has a choice of whether to train its
employees or not, the only choice is
100. 100. that of methods. The primary concern of an organization is its validity and hence
its efficiency. There is continuous environmental pressure for efficiency and if the organization
does not respond to the pressure, it may find itself rapidly loosing whatever share of market it
has. Training imparts skills and knowledge to employees in order that they contribute to
pressures of changing environment. The viability of an organization depends to considerable
extent on the skill of different employees; especially that of managerial cadre, to relate the
organization with its environment. There are three factors which necessitate continuous
training in an organization. These factors are technological advances, organizational
complexity and human relations. Training can play the following role in the organization.
Increase in Efficiency
101. 101. Training plays an active role in increasing efficiency of employees in an
organization. Training increases skills for doing a job in a better way. Though an employee can
learn many things while he is put on a job, he can do much better if he learns how to do the
job. This becomes more important especially in the context of changing technology because
the old method of working may not be relevant. In such a case, training is required even to
maintain minimum level of output. For example, working on automatic machine requires skills
different from that required to handle manually operated machines. Similar changes are taking
place in managerial jobs too. Increase in Morale of Employees Training increases morale of
employees. Morale is a mental condition of an individual or group, which determines the
willingness to cooperate. High morale is
102. 102. evidenced by employee enthusiasm, voluntary conformation with regulations and
willingness to co-operate with others to achieve organizational objectives. Training increases
employee morale by relating their skills with their job requirements. Possession of necessary
skills to perform a job well often tends to meet such human needs as security and ego
satisfaction. Trained employees can see the jobs in ways that are more meaningful because
they are able to relate their skills with jobs. Better Human Relations Training attempts to
increase the quality of human relations in an organization. Growing complexity of
organizations had led to various human problems like alienation, inter-personal and inter-
group problems. Suitable human relations training can overcome many of these problems.
Many techniques have been developed through
103. 103. which people can be trained and developed to tackle many problems of social
and psychological nature. Reduced Supervision Trained employees require less supervision.
They require more autonomy and freedom. Such autonomy and freedom can be given if the
employees are trained properly to handle their jobs without the help of supervision. With
reduced supervision, a manager can increase his span of management. This may result into
lesser number of intermediate levels in the organization, which can save much cost to the
organization. Increased Organization Viability and Flexibility Trained people are necessary to
maintain organizational viability and flexibility. Viability relates to survival of the
104. 104. organization during bad days, and flexibility relates to sustain its effectiveness
despite the loss of its key personnel and making short- term adjustment with the existing
personnel. Such adjustment is possible if the organization has trained people who can occupy
the positions vacated by key personnel. The organization, which does not prepare a second
line of personnel who can ultimately take the charge of key personnel, may not be quite
successful in the absence of such key personnel for whatever the reason. In fact, there is no
greater organizational asset than trained and motivated personnel, because these people can
turn the other asset into productive whole. Limitations of Training Effectiveness of training
program depends upon the interest of the trainees, the qualifications of the trainers, the
105. 105. environment in which employees operate etc. Irrespective of this, training has the
following limitations. • It cannot solve problems of faulty organization. A poor organization
structure will create blocks to learning and tend to prevent the translation of acquired
knowledge on skills into improved performance. • It cannot be a substitute for sound initial
selection and careful placement of employees. • It cannot increase learning potential. Training
may stimulate further use of inborn capacities but it cannot create potentials. • It cannot
unerringly ensured increased performance or greater efficiency. They are not automatic and
are controlled by factors outside the scope of the training function. • It cannot overcome the
fact that forgetting is easier and quicker than learning. It cannot ensure continued use of newly
acquired
106. 106. knowledge, skills or attitudes to overcome forgetting. • It cannot guarantee
anyone learning anything. Training can only provide the means for learning to take place. If the
trainee does not want to learn, the chances are that he will not learn. Training Process Each
training program is a costly affair and a time consuming process. Therefore, training
effectiveness is of paramount importance and therefore should proceed through a sequential
 process of step as shown below. Step 1: Organization Objective. Training program should
support the continuous development of employee with the organization objective in order to
address key competencies requirements of
107. 107. the business. Step 2: Training Needs Identification It is important to determine
what training is needed and to make certain that the training is based on reliable and
identified training requirements. It is an inquiry about the tasks and skills need to accomplish a
function or job and to identify who are the learners. Step 3: Determination of the training
strategy. To determine the strategy to be used in a accomplishing the training, gathering data
on which to base training objectives, the deriving force behind the design approach to training
objectives etc. Step 4: Preparing the Learners and Work Environment.
108. 108. It is necessary that work environment is enabling, receptive and supportive so
that the learners is able to apply the knowledge and skills learnt from training to actual work
place. Step 5: Determination of training methods and materials. To determine training
methods, tools and timing appropriate for skills to be learned and participating learners. While
preparing training manuals, the principles of learning cycle must be kept in mind that is
planning, doing, reviewing and reflecting. Step 6: Conducting training program To conduct the
actual training and monitor the progress. Step 7: Evaluation and Feed back
109. 109. To gather feedback for updating or revising the training program is crucial to the
effectiveness of the training program. This is typically the most neglected phase of the training
program as the trainee and the trainers breathe a sign of relief as the training ends. However if
this step is correctly attended then better training programs can be designed. Age No of
Percentage Respondents Below-20 05 10 20-30 20 40 30-40 15 30 40-50 05 10 Above-50 05 10
Total 50 100
110. 110. 40 40 35 30 30 25 20 % of Respondent 15 10 10 10 10 5 0 Below 20yrs 20-30yrs 30-
40yrs 40-50yrs above 50yrs Table No-2 Sex No of Percentage Respondents Male 42 84 Female
08 16 Total 50 100 le No-3 Qualification No of Percentage Respondents SSLC 08 16 PUC 06 12
111. 111. Graduation 20 40 Technicians 16 32 Total 50 100 The majority (40%) of the
respondents are graduates. Department to which the Respondents belong. Table No-4
Department No of Percentage Respondents Administration 15 30 Production 30 60 Material 05
10 division Total 50 100 Work Experience Table No-5
112. 112. Experience No of Percentage Respondents 0-05 years 15 30 06-15 years 30 60 16-
20 years 03 06 21 & above 02 04 Total 50 100 ority of the respondents (60%) had 06-15 years of
service. This indicates that the employee Opinion about Training Table No-6 Opinion No of
Percentage Respondents a) It heightens 11 22 employee morale b) It helps in 09 18 reducing
dissatisfaction
113. 113. c) Increases job 20 40 knowledge d) Helps in 06 12 prevention of accidents e)
Helps in 04 08 personal growth Total 50 100 dents and 8% of the respondents said that the
training helps in personal growth. How the Objectives of the Training Program were conveyed
to the Trainee. Table No-7 Methodology No of Percentage Respondents a) Slide Show 09 18 b)
Displayed on 22 44 the notice board c) Instruction 15 30 sheets d) Intranet 04 08
114. 114. Total 50 100 Table No-8 Trainer No of Percentage Respondents Top 00 0
management HR manager 05 10 Superior 35 70 Department 10 20 head Total 50 100 ned by the
department head and 10% of the respondents were trained by the HR manager. However the
table shows that nobody was trained by the Top management. How the Respondents were
selected for the Training program: Table No-9
115. 115. Selection No of Percentage Procedure Respondents On a random 04 08 basis
Recommended 07 14 by the HOD Selected by 30 60 HRD/Personnel department Don’t know 09
18 Total 50 100 the 60% of the respondents were the people who had no previous job
experience before joining Campco. Scope of the Training program Table No-10 Skills No of
Percentage Respondents Technical 35 70 skills
116. 116. Conceptual 2 04 skills Interpersonal 13 26 skills HR skills 00 0 Total 50 100 le No-11
Frequency No of Percentage Respondents Once till now 40 80 Once in 6 00 00 months Once in a
 year 10 20 Not conducted 00 00 At all Total 50 100 le No-12 Opinion No of Percentage
Regarding Respondents Duration 7 days 15 30
117. 117. 15days 09 18 1month 16 32 3 months and 00 00 Above Depending on 10 20 need
Total 50 100 Language No of Percentage Respondents Kannada 37 74 English 06 12 Hindi 07 14
Total 50 100 r training in Hindi and 12% had their training in English. Expectation from the
training program Table No-14 Expectations No of Percentage Respondents
118. 118. Putting the 03 06 learner to ease To get closer 11 22 to the job position Giving the
36 72 Exact knowledge Total 50 100 respondents Table No-15 Qualities No of Percentage
Respondents Experienced 02 04 trainers were called Conducive 18 36 atmosphere Good
training 21 42 materials were provided Proper schedules 09 18 were maintained Total 50 100
119. 119. Table No-16 Methods No of Percentage Respondents On the Job 48 96 Off the Job
02 04 Total 50 100 Safety measures included in the training program Table No-17 Safety No of
Percentage measures Respondents First-aid 29 58 Fire 15 30 Extinguisher Vehicles 06 12
Handling Total 50 100 le No-18
120. 120. Yes/No No of Percentage Respondents Yes 38 76 No 12 24 Total 50 100 majority
76% of the respondents said that personality development program is necessary in the
organization. While 24% of the respondents said that a personality development program is
not required in the organization. Stress Relief Programs Table No-19 Stress Relief No of
Percentage Programs Respondents Yoga 04 08 Trips 04 08 Entertainment 42 84 programs Total
50 100
121. 121. le No-20 Changes felt No of Percentage due to Respondents training Improved 18
36 Relationships Minimized 03 06 resistance to change Increased the 07 14 efficiency and
effectiveness Improved 22 44 product quality Total 50 100 imized the resistance to change in
the organization. Instruments used in the training program attended by the respondents Table
No-21
122. 122. 100 Instruments 96 No of Percentage 80 Respondents 60 Visual aids 02 04 40
Games 00 00 % of Respondents 20 Interactive 13 26 0 sessions 4 None Yes 35 No 70 Total 50 100
ondents. Whether benefits of training justify the training cost Table No-22 Yes/No No of
Percentage Respondents Yes 48 96 No 02 04 Total 50 100 s not justify the training cost.
Objectives that was predominantly fulfilled in the training session
123. 123. Table No-23 Objectives No of Percentage Respondents Increased 28 56
productivity Effective 00 00 working of the employees Reduction in 12 24 wastage Developing
the 10 20 skills of the employees Total 50 100 le No-24 Yes/No No of Percentage Respondents
Yes 26 52 No 24 48 Total 50 100 .
124. 124. Follow ups after the training Table No-25 Follow ups No of Percentage
Respondents Performance 15 30 Appraisal Work sampling 08 16 Superior 11 22 Evaluation
Personal 16 32 assessment Total 50 100 Rating No of Percentage Respondents Excellent 08 16
Very good 09 18 Good 20 40 Satisfactory 13 26 Total 50 100
125. 125. SUGGESTIONS Based on the findings of the study, the investigator has put forth
the following suggestions to the organization.  The head of department need to play a key
role in explaining the importance and necessity of training to his subordinates.  The training
faculties need to make adequate use of the training aids available in the organization. 
Training programs need to be more interactive. The trainer should motivate the trainee to
participate in the proceedings.  Selection of the training programs and selection of the
participants need to be thoroughly evaluated on some predetermined basis.  The
involvement of visual aids, games and tale plays are to be stressed on during the time of
training as it gives more insights to
126. 126. the workers especially the less educated ones and helps them to acquire
interpersonal skills and understand the concepts better.  The skills of the employees must be
developed by imparting English speaking courses and computer courses.  Periodical training
is very effective and so should be encouraged in the organization.  Since most of the
employees are satisfied with their job, the company can retain or enhance job satisfaction by
 giving rewards, ensuring recognition and providing opportunities for their career
development.  Another measure for improving the effectiveness of training programs is the
introduction of pre-training evaluation, which creates awareness in the organization and
among the employees about the needs of training.  It can be suggested that in addition to the
appraisal made by the superiors, an employee can also be appraised by his peers and
subordinates.
127. 127. Thus the company can consider the above suggestions to make its training
programs more effective. As a result good training will lead to improved performance leading
to increased productivity and thus profit. CONCLUSION A meticulously planned and well
administered training and development program would be instrumental in bringing about
positive changes in the employees and thereby improve the efficiency of the organization.
Campco Ltd, Mangalore is maintaining a good relationship with the public. It also maintains a
good relationship with other organizations. Campco Ltd is one of the organizations that have
realized the importance of human resource and the need to train them. It follows a training
policy designed by a highly effective HR department.
128. 128. Campco Ltd conducts a number of training programs every year, with
innovations. Training programs have helped in increasing the company’s productivity, reduce
accidents and take additional job responsibilities and good industrial relations. However, there
is still scope for improvement which the company should seek to achieve. This can be done by
periodically evaluating and improving the training programs. The study has given the
investigator, a practical exposure to the company. It has given the knowledge of the various
functioning departments. It has also taught the investigator to carry out the research. Such a
study would be useful in case any future researches need to be undertaken on this topic. The
findings arrived at as a part of the study would help the company in planning or modifying
their training programs in future. The investigator hopes that the suggestions offered will be
considered
129. 129. positively and implemented in the organization. This would help the organization
to pave the way for growth at a quicker pace. The company should strive for excellence in the
years to come. BIBLIOGRAPHY 1.CAMPCO at a glance-Magazine of the company. 2.Annual
general meeting report of 2008 3.Other company manuals and journals 4. www.google.com 5.
www.wikipedia.com 6. www.hrguru.com