CASE STUDY

ON

ADMINISTRATION OF INDUSTRIAL CANTEENS

VARSHA BALARAM NIKAM

ROLL NO. HPGD/JA21G2/3651

WELINGKAR INSTITUTE OF MANAGEMENT

DEVELOPMENT AND RESEARCH

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 INDEX

PAGE

S.NO. PARTICULARS NO.

1. Industry Overview 5.

2. Introduction 6.

3. The Industry Structure 12.

4. Major Players of the Industry 14.

5 Policies 16.

6. SWOT Analysis 20.

7. Manufacture 25.

8. Research Methodology 28.

9. Cost of Capital 30.

10. Cost of Debts 35.

11. Cost of Equity 37.

12. Weighted Average Cost of Capital 40.

13. Conclusion and Recommendation 56

14. Bibliography 63

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Introduction
Organized work in the society started much before the industrial revolution and establishment of
industrial organization. The Egyptian, Greeks, Mughals had had created monuments like Pyramids
of Egypt cathedral of Milan. ST.pauls in London St.Peter’s in Rome, Taj Mahal in India. The
monuments like were built using management techniques and tool. The creator of these, had,
managerial insights like, planning organizing, directing executing and controlling. Earliest
organized work canbe found in Army whose job was to protect the kingdoms and territories. These
are examples of organized work. However the factory which is productive system were organized
work activates take place started in middle of 17th century. In the factory system a large scale
employment takes place, employing manpower and capital. Factory is an example an organization
engaged in the activity useful to mankind. Similarly, other organization where organized work with
help of Human resources takes ` place were developed to fulfill the needs of human beings In this
competitive scenario where the is immense demand for people and thee talent pool is shrinking,
Human resource management plays a vital role in an organization. Recruitment and Retention of
employees is becoming a challenge as well as a concern area of all HR managers. As Indian
economy is booming,. HR managers willbe experienc8ing tough times ahead in hiring and training
andretention talent
Psychology plays a vital role in the beginning itself, for instance, when it comes to selection,
recruiting and training employees, psychology is needed. Psychology will assist recruiters in
choosing the right employee. There are many psychological tools, which will check the employees’
intelligence, his or
her attitude and the way of thinking. When these factors are studied well, the organizing will end
up having only the best of best employees, and eventually it will help the organization develop
better. Presently there are Human Resource Development Psychologists who are ready to assist the
organization to choose the right person and put him at the rightplace and at the right time!
There are many reasons why Human Resource Management has turned into a Psychology linked
science. For instance, more and more organizations across the globe are highly dependent on
skilled staff resources to function at the best level, and they also look out for higher performance.
There is a huge growth in service sector in countries like India and United States. This growth of
service sector has been extraordinary and it has actually overtaken the manufacturing sector by
providing employment opportunities. Services like Information Technology or Information
Technology enabled services, Rental, Telecom, etc., depend upon the most excellent human
resources, that too the need is in large numbers. In order to make the employees grow, get
motivated to take up challenging tasks, the management needs to know the in depth study of human
mind.
When change management comes in human resource management is play a vital role. As everyone
need to understandthat change Is the basic factor in everyone’s life mite it be a company also so the
employees need to be prepared for any suchchanges in an organization
Meaning
Psychology in Human Resource with importance of Change management is a studying the minds
sets of all the employees and also the outside environment so that the HR can plan a suitable
environment for the employees so that the production of the company can be increased human
resource management is the function within an organization that focuses on recruitment of
management of and providing direction fair the people who work in the organization. Human
Resources Management can also be performed by line managers.
When it comes about reading mins of the employees then if the conditions are not suitable for them
the change factor comes andthat will lead for the change management in an organization

Definition
According to COLEMAN,” the process of determining manpower requirements and the means for
meeting those requirements in order to carry out the integrated plan of theorganization”
Sumantra ghoshal has termed human resources as human capitalconsisting of three types of capital
– intellectual capital, social capital & emotional capital
The term Human resources with reference to an organization refers to its employees, employed at
different levels of management. An organization performs a number of function to achieve its
objectives. Thus, it requires human resources of different types which may be categorized on the
basis of functional areas like production marketing finance or human resources across the
functional areas may be arranged into top management, middle management, supervisory
management andoperatives

Psychometric Tests
These include tests of cognitive ability (traits of general intelligence such as verbal, numerical and
logical ability). They also extend to self-reporting tests (questionnaire inventories) about the
candidate’s self-perceived behavior, personality, life/work orientations and value systems.
Completion of the application form and the interview are both tests. There are alsogroup exercises
which are used as tests. In addition to these devices there are hundreds of off-the-shelf tests on the
market. A test is an instrument, designed to measure something.

The “something” has to be measurable – either in a concrete sense (we can weight it!) or in a
comparative sense – we can compare the results of individuals against the results of groups who
have been measured using the same instrument and for whom “norms” exist. If we use tests there
needs to be a clear correlation between possessing the quality being tested and subsequent success
in learning and performance.
An employer may devise a test or buy one in off-the-shelf. Someone has to administer the test
properly and have the ability to interpret the results. From a test’s results, the employer may judge
that the applicant does not have the necessary qualities.

Function area for psychology in human resources management

In the basis of the various functions which the human resources management generally undertakes,
the functionalareas of humanresources management may be set forth as below in which psychology
plays an important role

Organizational planning,

Development factor & task specialization

Staffing and employment

Training and development

Compensation, wage given in advance

Motivation and incentives

Employees record in past

Labor and top management relation

Research factor

R&D
Organizational planning
It is concerned with the division of all the takes to be performedinto manageable and efficient units
and with providing for theirintegration.

a determination of the needs of an organization in terms of a company short and long term
objectives, utilization of the technology of the production, deciding about the nature to be
manufactured keeping in view the external environmentand public policy
in panning the mind set of all the employee and themanagement

The application of psychological testing to human resource selection, particularly the use of
instruments designed to assess
personality traits, has a long, colorful, and somewhat contentious history. Personnel selection in
general, and its various forms of psychological testing in particular, has its origins in the late 19th
century. Much of the developmental work in the scientific methods of selection can be traced to the
efforts of early industrial psychologists to support the military through two world wars, as well as
their contemporaneous marketing efforts to have their craft applied to organizational problems.
From the natural selection concepts that formed the foundations of Frederic Taylor's scientific
management, through the informal techniques of early character analysis and to the modern
application of selection instruments based on statistical analyses of test reliability and validity, the
use of tests and other techniques for the improvement of personnel selection and performance has
never been without controversy. Whether the tension was over the proper role of testing
professionals, the appropriate balancing of management demands for efficiency and fairness to
employees, or the usefulness of tests themselves, the unfolding history of psychological testing
represents a microcosm of American business history.

The Origins of Psychology

The roots of psychological testing lay in the origins of industrial psychology in the late 19th and
early 20th centuries. The field represented the convergence of scholarship and application fromthe
disparate fields of psychology, engineering, and business. As early as the 1880s, authors such as
Henry R. Towne and Henry Metcalf had proposed that business management, viewed as an art in
the late 19th century, should be thought of as a science and would benefit from engineering's
professionalization because it had foundations in and proclivity for science)

Although schools of management science in the engineering disciplines had been founded on the
East Coast, late 19th-century universities did not readily embrace either engineering or business
curricula.
However, the Morrill Act of 1862 ushered in an era of change inhigher education by promoting the
chartering of land-grant universities that moved away from offering a strictly liberal arts education
and toward technical education. (7) Several well- known and prestigious universities, including the
Universities of Chicago, Pennsylvania, and California at Berkeley, incorporated management and
engineering programs in their curricula by thebeginning of the 20th century. (8)
Although psychologists, as practitioners of the traditionally scholarly discipline of psychology,
resisted the application of psychological models and theories to managerial problems, individuals
such as Walter Dill Scott and Hugo Munsterberg founded the field of industrial psychology when
they began to explore the serious application of psychological principles to problems in education,
law, marketing, and management. (9,10) The following years saw rapid growth in the application
of industrial psychology in the area of market psychology by practitioners who wanted to address
complex business problems. Among the tools those researchers deployed were psychological tests
aimed at addressing the growing problem of identifying individuals who would be effective
employees.

Why is choose the topic?

Managing the human resources is the hardest job and thus understanding the mindset of the
candidates and thinking planaccording to that is a very important work for the HR.
So while understanding the behavior, mindset and how an employee thinks that completely
depends on everyone individual so understanding that and making the plans and policy according
to that is the hardest things to do and I planningto become a HR in future it is very necessary for me
to understand those situation and making plans for them and whenever there is a fight between the
employees the HR plays a vital role in solving that issue also
So at the last for managing the human resources the pscholofy factor really play vital role and that
the reason I chooosed the topic
IMPORTANCE OF THE TOPIC :-

For an HR Manager psychology place very important roll.

At the time of recruitment

Taking decession on diciplinary,i.e. at the time of cousilling

Disputes in the office between the employees.

while giving promotion

to increase the production of the company

to reduce the wastage

to given the best quality

while making plans for the employees

to set goals for the company

for understanding the behavior

for getting best employees helps HR to keep record about the employee in this we have to observe

the body language of the employee,behaviour of the employee and many more
At the time of recruitment

Recruitment is the procees of hiring the new employees in the company. When the HR hire the
employee except the skills they also check that the employee will he be working with the firm for
the longerperiod of time. It is completely a assumption that the employee will be there in compny
for 6 months or 6 years. So while recruitment the employee understanding the person is the most
crictally part of the process and this help the company to understand and plan for the employee
When the selection process of the company is been done by the HR managers they goes through
the complete mind set of the candiates which come there for the interview and they acutally
examine the each candidates the behavior of those people are beeen judged and then the final
decide the candidate will be hired or no for the company. So understanding the mindset anf the
psychology of the people is the basic and the important factor to hired employee and thus
understanding the psychology is a very important factor.

Taking decision on disciplinary ,i.e. at the time ofcounselling

Taking decision is one of the important element for the HR manger and this action also works
psychological behavior. The HR manager are the real people who take decision for the employee
like if the employee has made a mistake and is affecting the company the manager hand over the
employee to the HR with the proper case about what the employee has done and in which condition
the mistake washappened.The final decision is of the HR manager weather the employee should be
there in the company or no aand to understand that the HR requires the mind game i.e. the proper
study of the psychologically behavior of the employee and thus the while taking any important
decision the proper study of the employees mind is necessary so that if the mistake was done by
mistakely the company should loose the quality employee from the company
Disputes in the office between the employees.
Disputes is the primary factor for the reduce in production of the company and this disputes or
fights take place cause of the psychologically behavior of the human being or when the thought
process doesn’t matches. Its general that the thaught procees of each and every human being is
different from each other and thus is normal to have arguments between the employee. This
arguments when this leads to fights or disputes itis very harmful for the company so to handle such
situation they have HR and whenever there is disputes between the employee then that arguments
and fights needed to be understand and even for this purpose the psychological factors plays a
very important role to understanding that thought process of both the employee and making them
understanding about it

While giving promotion

Promotion is one of the basic factor for which each and every employee waits for and it is very
common that waiting for that is worth it as there is increase in the salary with higher position and
better work life. They are given promotion on basic of the performance but they also have a brief
study about the behavior of those employee as whenever the higher position is given to employee
those qualities should be there in that employee and thus on basis of that promotion for every
employee is given
While the promotion process is going the when an employee is getting promoted in that
psychologic plays a very important role as it help the managers to have a brief study about the
individual employee and to determine whether the employee is really the employee who can
promoted and whocan really fulfill the requirement of the higher position
To increase the production of the company

The main aim of the company is to increase the production.

The production of the company can increase only if the employee are hardworking and faithful for
the organization. Motivation is basic factor to increase the prodctuon of the company as if the
employee of the company are motivated then surely the production of the company will be
increased.

With more production of the company the profit margin of the company will increase and that will
be one of the advantage sothat company can give away bonus or more incentives to thoseemployee
so understanding the psychological factor that means the mindset of the employee will surely help
the company to increase the production of the and that will increase the profit for the company.

To reduce the wastage

When the wastage of raw material is reduced there is increase inthe output of the company. When
there is proper utilization of resources the company is more towards the path of success. The main
factor is employee and when the employee works taking that in mind that its is threr comoany so the
raw material of the company will used at best and this will give the company a increase the in
production which will help the company.
Employee motivation, giving them payed holiday will surely help the company to reduse the
wastage of the company

To give best quality product

The quality of the products is one of the important things to be noted while manufacturing the
products so while making such goods the employee performance is the most important thing inthis
aspect. When the employer understand what exactly the employee want for him like proper
working condition, facilities a proper meal then the employee will happy and they will be working
whole hearty and this will defiantly result in the best quality of the products which they will be
producing

While making plans for the employees

The company makes certain plans for the employee so that they can keep their employee happy and
with the company for longer period of time. This process is done by the HR manager for the
company when the employee of the company are happy and when they are motivated to perform
well in the organization there is increase in the production of the company. So how to increase the
production? How to produce the best quality of products ? how to satisfy the customers? The
planning is the process which give guidelines to the company about how to do the

to set goals for the company

Every company have some set goals so that they can go with the flow and can earn huge profit the
psychological factor affect this process as it help the company to make plans according to the
market condition as the market is ever changing and that needs to understand by the company and
thus with the change In the market there should be change in the company therfore the psyclogoical
factor plays a very important role in the company. The mindset of the employer till the mindset of
the consumer is being needed to study so that they can understand the market.

For understanding the behavior

behavioral psychology is a “scientific approach that limits thestudy of psychology to measurable or

observable behavior."
In fact, if you've ever attended a Psych 101 class, you can probably recall the names of famous
behaviorists like Skinner,Watson and Pavlov.
While this concept may not sound all that relevant to business owners, there’s actually a lot to be
learned from behaviorism. Why? Perhaps no one explains it better than Darren Kaplan, co- founder
and CEO of the analytics firm HiQ, who notes, "When you understand human behavior, you
improve your chances of making your business succeed."

For getting best employees

Personnel recruitment is the process of identifying qualified candidates and getting them to apply
for jobs with an organization. Personnel-recruitment processes include developing job
announcements, placing ads, defining key qualifications for applicants, and screening out
unqualified applicants.
Personnel selection is the systematic process of hiringand promoting personnel. Personnel-selection
systems employ evidence-based practices to determine the most qualified candidates: interviews,
personality inventories, psychomotor and physical ability tests, and work samples.
I–O psychologists must evaluate the validity of measures in order to determine the extent to which
selection tools predict job performance. In order to do this, they look at content validity, construct
validity, and/or criterion validity.
CHAPTER THREE: INDUSTRIAL CANTEENS
Need and Justification of Industrial Canteens

In the industrial belt of Bhiwandi and Kalyan-Chinchwad there are many industrial units that run round the clock -
Kirloskar units, Bajaj units, Tata units, Kinetic units and other units like Ruston Greaves, SKF, Thermax, Forbes
Marshall and others run their production units to the full capacity. The workforce has to report at least an hour before
the commencement of the shift. They start from the place of their residence at least an hour or more before the
reporting time. The same procedure is followed when they finish their work. Their working schedule lasts for about
nine and half hours. Add to this time required before reporting and after the end of the work-shift. The total time
required for transport and work in the shift is of about eleven to twelve hours. It is but natural that these workers need
to be fed properly and sumptuously. This requires the establishment of the catering unit on the premises of the
industrial unit. It is obligatory for industrial units having more than 250 employers to provide the canteen facility.
Though it is optional for them, many units having less than 250 employees in their workforce, provide the canteen
facility on their premises for the convenience of their workforce. The provision of wholesome food needs to be made
for the workforce that is required to put in their hard physical labour in the industrial unit. It is essential to
maintain a balanced diet of sufficient nutritional values to be served in such industrial canteens. The need for the
provision of canteen facility for workers is thus universally acknowledged in respect of the industrial units for more or
less than 250 employees in the workforce.
The need to establish such catering units is the main ground of its justification. The physical necessity of the
establishment of an industrial canteen justifies its existence. It is a welfare facility to be provided to the workers in an
establishment. It is a humanitarian gesture on the part of the employers. The welfare facilities that are given to the
employees in a unit are considered to be the part and parcel of the expenditure an employer is required
compulsorily to incur. It is now a privilege of the workforce to demand this facility. The provision of an industrial
canteen is thus an obligation for the
management of the industrial establishments. The need and justification of running an industrial canteen in an
industrial unit that is run satisfactorily need not be exaggerated as the facility is acceptable to both the parties
concerned that is the employers and the employees working in those units.

Industrial Canteens as a Welfare Facility

The aim of every industrial organisation is to gain maximum at minimum costs through a loyal and co-operative
workforce. In order to achieve this aim, it is necessary to provide a work environment that is comfortable, convenient
and pleasant to its workforce. The establishment is obliged to fulfil the needs of the employees if they are to give their
best to achieve organisational goals. The employers ought to provide certain facilities and benefits to their employees
to gain maximum at minimum costs. These facilities and benefits are often, referred to as “Staff Welfare provisions”.
These provisions are classified under the heads of physical needs and socio-psychological needs.
The physical needs are those which are required for comfort at work. The welfare activities of this category are the
provision of proper lighting, temperature and humidity control, fresh air free from fumes and gases, low noise levels, a
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clean environment, clean uniforms for staff, toilet and hand washing facilities, waste disposal equipment, proper
drainage and sanitation facilities, safety procedures and devices and appropriately designed equipment and furniture.
Sound proof ceilings, fitting exhaust fans, provision of sinks and sitting and resting facilities are required in the
industrial establishments and particularly in the canteens.
The socio-psychological needs cover the needs for security through adequate wage payments, provision for housing,
infant creches for working mothers, transport, social working hours, leisure and holidays, leave for sickness, maternity
and counselling services for stress at work-in-addition to the wages, subsidies on meals, housing and others help to
enhance wages indirectly.
The physiological needs are the needs of all the people. The provision of safe drinking water, canteen facilities, rest
periods and room, clean toilet facilities and medical facilities are included in the physiological needs. Canteen
facilities are a statutory requirement. Irrespective of this, it is moral obligation on employers of catering staff to
provide them with fully or partly subsidised meals. Health facilities generally include regular medical check-up,
treatment for ailments or injuries, preventive medical care, health education and health insurance. Money is an
important motivator of people’s behaviour as far as it can help to satisfy basic physiological needs. After that it is the
non-financial incentives that take care of psychological and social needs. The employee welfare measures include (a)
work environment facilities related to the maintenance of temperature, humidity, clean air, noise level and safety, (b)
hygiene and sanitation such as toilets, change rooms, rest rooms, waste disposal, drainage protective clothing, and
footware (c) welfare amenities such as canteen services, safe drinking water, health facilities and medical checks, (d)
housing facilities such as HRA free accommodation and loans for housing (e) recreation as sports, games, reading
room, library and films and (f) training such as job development, individual development, language training
communications, craft training and lectures etc. The provision of canteen facilities thus satisfies the physiological
needs of the worker and thus running a canteen in an industrial unit is a labour welfare facility.
Composition of Industrial Canteens

What is an industrial canteen composed of? An, industrial canteen exists in its utilitarian functioning, which is plainly
to feed the employees in an industrial unit. Its functioning is a service-oriented facility. The core activity in the
industrial canteen is the cooking of the items of food in the kitchen and serving them fresh and not to the consumers in
the dining hall or its service area. The preparation of food production, the actual food production and the food service
to the consumers are the central activities to be performed in an industrial canteen. In addition to these core activities,
what goes before the pre-production and production stages and what follows after the food is served are also part and
parcel of the schedule of the functioning of an industrial canteen. What an industrial canteen is composed of is the
continuous and complex network of activities during the pre-production, production and post production phases of
preparing food and serving to the consumers in order to enhance their efficiency through the provision of wholesome
meals and by creating a comfortable work- environment. The orderly sequence of these activities needs to be
maintained and each of the activities needs to be executed most efficiently and a delicate balance between competent
work culture and consumer satisfaction needs to be maintained in the functioning of an industrial canteen. The
composition of an industrial canteen lies on the co-ordineted joint efforts of a group of workers involved in the
canteen management from the person at the top who is supposed to manage and supervise the functioning of the
industrial canteen to the person who is supposed to be a helper in the dishwashing operations. The hierarchy of
functions, roles and activities needs to be cautiously put to the work on hand from day one to the next and from the

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next to the next to that and so on and on throughout the year. It is a constantly moving cycle that has no stops and
keeping the cycle which is made of many many inner cycles, is what is involved in the composition of the industrial
canteen. It is a joint task of all the concerned and any slip or error at any level is bound to have, its negative results on
the entire job, involved in the functioning of the industrial canteen. There are no material components but a consistent
chain of physical actions that need
physical labour, mental alertness and psychological strength to carry on the activities in the industrial canteen. The
administration, the management and the execution of these core and related activities constitutes the composition of
the industrial canteen. What an industrial canteen composed of is the conscious combination of the head, the hand and
the heart domains to plan, to work out and to feel the various jobs involved in feeding the people. In India, this task
has been carried out in ceremonies and festivals from the times immemorial and the one who cooks food does it as if
he is worshipping God-as if doing the pooja (worship) of Annadevta (the god that is food) and the one who eats the
food gives heart-felt compliments with satisfaction, in the words like Annadata sukhi bhava (let the giver of food be
perennially happy). Their sincere commitment to the duty on hand in the production and service of food is at the
heart of the matter in the functioning of an industrial canteen.
Administrative Setup: Canteen committee

The administrative set-up of the industrial canteens is three-tier in pattern because the higher decision-making body is
generally the canteen committee, and the middle level administration is carried out by the canteen manager and the
lower level administration which is operative management is to be executed by the canteen personnel. The provision
of the canteen committee is made in the rules and regulations for the industrial canteens. It is suggested that the
canteen committee is to be constituted on the tripartite basis. The representatives of the management, the
representatives of the employees of the industrial unit and the members of the canteen staff are required to form the
canteen committee. The canteen manager or the contractor is required to work on the committee. The members
represent the different cadres of employees such as clerical staff, workers and others, if it is so required. The
composition of the canteen committee is determined by the industrial unit as a whole or its management or its policy
framework. The canteen committee thus constituted either through the representation or the nomination of members is
required to carry out the functions of managing the said industrial canteen. The representation in some cases is given
to the members elected through elections conducted for the specific purpose whatever is the nature of the composition
of the canteen committee it has to function as the governing body for conducting the affairs of the canteen.
The administration of the canteen is to be carried out by the canteen committee by making the major decisions. It is
observed that in some units, a non-interference policy is observed and so the task of decision-making is entrusted to
those who are personally involved in running the industrial canteen and in such cases either thecanteen manager or the
canteen contractor becomes the sole administrator of the canteen. In some cases, the canteen committee decides what
and when to purchase provisions for the canteen, the quantity of provisions, of the mode of procuring the provisions.
The decision about menu planning is made by the canteen committeewhenever it is found necessary.
The maintenance of the accounts and the provision of money matters are sometimes entrusted to the canteen
committee. In some units the entire administration from the higher level to the lower level and all the tasks involved
from buying the provisions, preparing the food, serving the food to the consumers and the different, post-production
tasks are to be shouldered by the canteen committee. The total administrative set-up and procedure depends on the
canteen committee and its efficient functioning in many industrial canteens. The canteen committee is the top

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administrative body that varies in its nature from the most non-interfering functionary to the most interfering
authority and these differences are noticed from one unit to another depending on the policy framework,
administrative set-up and the style of functioning of each of the industrial canteens in the units in the industrial belt
and the same is observed in the case of the industrial canteens surveyed in and around the Bhiwandi region.
Administrative Setup: Canteen Manager

The canteen manager is the key functionary in the administrative set-up of an industrial canteen. He occupies a central
position between the higher level administrators and policy-makers who decide the policy framework of the
functioning of the canteen and the canteen staff that actually brings into practice what has been
planned to be executed in respect of food to be fed to the consumers in the industrial unit concerned. The canteen
manager thus holds a very crucial post in the administrative functioning and the managerial execution of the
industrial canteen to which he belongs. In some cases, the canteen manager is the sole administrator of the canteen in
the industrial unit. The canteen manager or the canteen contractor holds this key position in many industrial canteens.
The canteen manager is required to play different roles in carrying out his duties. He is required to look after the
purchases to be made. It is his duty to fix the quality and quantity of the items to be purchased. It is he who decides
when and where to make these purchases. He is responsible for making decisions about the rates to be approved while
finalizing the procedure of making purchases of grains, cereals, spices, vegetables, fruits and other items required in
the production of food. The physical features are determined by the canteen manager such as the items of furniture,
different fixtures and the seating arrangement and the space management for the store, the kitchen and the service
area. The canteen manager has to carry out the important task of deciding the menu and planning the menu per shift,
per day, per week and even per month. The material provision, the physical arrangement and the menu planning are
for the canteen manager the basic functions of his administrative responsibility. The purchase manager, the
supervising authority for the physical infrastructure and the decision-making administrator for menu-planning are
some of the roles the canteen manager is required to play in the pre-production phase of the preparation and
production of food in the industrial canteen. In the phase of the production of food items, the canteen manager is
required to oversee the job done by the cooks, in particular those involved in the making of vegetables, chapatti-roti-
paratha-puri, the sweets and salad and other supplements. Then he is required to supervise the work carried out by the
waiters and helpers. He is more or less a personnel-in-charge in this phase. His role as a supervisor begins with the
post production phases and cleaning, washing and sanitation routine. He is required to work as a cashier in most of the
units and as such he has to occupy the seat at the reception counter. From this place he has to control, manage, direct
and supervise all the tasks being carried out on the premises of the canteen. Many times he is required to maintain the
accounts and prepare the records and registers. He has to carry out the correspondence. He is the linking bond among
all the workers involved in the functioning of the canteen and he is the person who is involved in a responsible
capacity and who has to act as a bridge between the world of the canteen and the world of experience outside the
canteen. His is a very delicate task of maintaining balance between management and
workers, decision making and implementation and the worlds inside and outside the industrial canteen. He is a single
individual who has to work in multiple responsible positions to make catering a comfortable and satisfying experience
to those who gather at the canteen to get refreshed physically and mentally.
Administrative Set-up : Canteen Personnel

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The canteen personnel or the canteen staff works at the bottom of the pyramid- like structure of the administrative set-
up of an industrial canteen. These are called line management or lower management workers. The different cadres
make the canteen personnel. Apart from the canteen manager, most of the other employees as the staff of the canteen
are included in the category of the canteen personnel. In the kitchen there are cooks, assistant cooks, a maker of tea-
coffee, dishwashing workers, the cleaning workers, those are required to cut, slice, peel, and clean the materials of the
food items to be used for production of the items. In the service area there are the steward, the captain, the waiters, the
utility workers, the helpers and the cleaners. There are the cashier, clerk, the accountant and the servants in the
reception section. The maid servants have to perform certain specific duties. The catering, the purchasing, the service,
the general administration, the financial management and the personnel management are the major heads of activities
that are involved in the running of an industrial canteen. The staff that is employed to carry out these various activities
forms the category of the canteen personnel. This is the group of those individuals who actually perform the different
operations and complete the different procedures and processes necessary in the running of an industrial canteen. This
is the actual work- force of the canteen activities to be performed in a routine schedule day in and day out almost
without interruption on all the working days of the year, which in majority of cases, happen to be all the 365 days of
the year. The management is of administrators and the middle management of managers and supervisors and the line
management is that of the actual performers of the tasks in the running of an industrial canteen.
The canteen personnel are required to work together with a sense of commitment and a high degree of efficiency to
maintain the quality of food at the industrial canteen establishment. It is the co-ordination of the different activities
and the simultaneous operative functions which enables the canteen establishment to bring out a satisfactory feeding
experience for the employees of the industrial unit. The administrative set-up of canteens has to pay attention to
this level of administration as it is necessary to maintain a close watch and a supervisory attention on the working of
the employees in the canteen personnel. It is observed that a half-cooked roti or a burnt chapatti, the supply of onions
and a slice of lemon, the fresh, clean glass of cold water or even the uncleaned plate or table cause complaints from
the consumers. That is the reason why the working of the canteen personnel becomes most significant in the context of
the running of an industrial canteen. This is the staff of the canteen that maintains the quality and taste of the eatables
prepared and served in the canteen. The administration, the management and the actual performance thus make the
three-tier pattern of the administrative set-up of the catering units in the industrial canteens which are in general
practice represented by the all-rounder personality of the canteen manager and the practical performance of the
canteen personnel from cooks to cleaners who are busy in the store, in the kitchen and in the service area of the
canteen.
Records and Registers in Industrial Canteens

There are three main aspects of the functioning of the industrial canteens that need to be appropriately recorded in
specific books and registers. These are (a) the administrative records (b) the records of financial transactions and (c)
the records of thestaff working in the canteen.
The records which need to be maintained for administrative purposes are records like the stock register, the
attendance register, the record of leave of workers, the record of menu-sheets, the record of meetings such as the
minute-book, and other such necessary records. The stock register may be a single book for all materials or separate
for consumables and non-consumables. The property register will keep a record of the immovable assets. The store
records will prepare the day to day actual position of the material provisions to be used, being used and have been

1
used in the canteen. The cutlery register, the crockery register, the furniture register, the equipment register and other
registers will have to be prepared, provided the stock of these articles is considerably large otherwise, the same single
register may contain sections recording the stock of these articles. To maintain the stock register as a single book with
separate sections or as separate books for different types of articles will depend on the size of the catering
establishment. For most of the canteens that are surveyed in this study will need the main stock register.
The daily attendance register and the leave record register are meant for the employees working in the canteen. The
Wages and Salary Register, the PF account
register and the Overtime Allowance register are related to the canteen staff. The presence and absence in the daily
attendance register and leave record register mark theemployees on duty or otherwise as the case may be.
The record of menu sheets is essential for the preparation of the cyclic menu for a week or a month. Menu planning,
menu preparation and menu scheduling will enhance on account of these records and registers if maintained with
accuracy and efficiency in the establishment like the industrial canteen.
Like the stock register and registers related to the employees, the registers and minute-book concerned with the
meetings of the canteen committee are essential in the administrative set-up of the industrial canteens. The canteen
committee being the responsible decision-making body makes decisions about the working, the daily business and the
general policy and these decisions are recorded in the minute book which is an important document to run the canteen
as per the resolutions passed in the committee meetings.
The maintenance of the records is vital in the running of the industrial canteen. The administrative aspects are duly
recorded due to the up to date keeping of these records and registers. The management of the canteen personnel is
effectively made on account of the different registers maintained to record the service profile of the employees in the
canteen. The registers and records keep the account of what should happen and what actually happens in the
administration, financial and personnel management and the organisational working of the industrial canteens and
therefore those are of vital importance in the industrial canteen management.

Purchase, Cost and Sale Register

The financial transactions of an industrial canteen are mainly the purchase of materials for the production of food and
the sale of the items of food. What is significant is the determination of the cost of food items and the cost pricing of
the items.
The purchase register may be a single register or a set of separate registers for the perishable and non-perishable items
or for the bulk purchases and the daily purchases. There is the possibility of category-wise or item-wise keeping of the
records of purchases in the purchase register. The item-wise registers of purchases can be useful if the details of the
items, their quality, quantity, weight or measurement and price are recorded in the relevant sections under
different headings. The food and beverage section may be kept separate from the sections of furniture, equipment
and utensil for cooking and for serving. The purchases of perishable items such as milk, eggs, vegetables and fruits
may be recorded with specific details. Purchases of the materials determine the volume of expenditure. The purchase
register gives information about the materials and the other essentials in running the industrial canteen and the
planning, the preparation and the production of the items of food is decided on the basis of what the store contains.
The market, the store and the kitchen are the locational points which are necessary in making an eatable item out
of the provisions purchased from the market and stored in the store of the industrial canteen.

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The sale register keeps the record of what is sold, in what quantity and for what price. In some cases, the cash
transactions do not take place on the counter. In place of the cash in return of the items sold, the coupons are used. The
issue of coupons and its utilization pattern is pre-determined as per the procedure fixed by the authorities of the
canteen. It becomes obligatory to keep a record of the coupons collected and to tally it with the sales of the items
served in the canteen. Whatever is used for the sale transactions, the cash amount or the coupon collection, the sales
determine the receipts in the canteen. The expenditure from the purchase register and the receipt from the sale register
are the two sides that are necessary to present the financial position of the transactions in the industrial canteen.
The purchase register and the sale register both together enable the canteen management to determine the price of the
item. The cost register and the cost pricing procedure are to be essentially maintained in order to find out the inputs
required in the production of the food items and the determination of the level of the price of the item concerned. The
cost of materials, the labour charges, the establishment expenses and the overhead charges need to be calculated to
determine the price and on account of this price of an item like potato-wada may vary from canteen to canteen. The
range of price may be Rs.5 to Rs.10 for such an item as the bare price of the product, but the way it is served, where
and when served and what other comforts are offered with it may determine the actual price in the range of Rs.10 to
Rs.25 depending on the cushion, the furniture, the dishes and the environment in which the item is served. It is
observed these days that the price of the ambience today is much more that the actual price of the item. It is for this
reason that the industrial canteen management tries to maintain the price level by keeping the ambience to the
minimum and the quality and wholesomeness of the food items as the matter of significance. It is for this reason that
he subsidy is offered on the prices of the items, or discounts given, or free meals or free coupons or subsidized item
are given by the industrial units that ultimately control the industrial canteen finances.

Financial Working in the Industrial Canteens

Financial statements in the industrial canteens are of different types. It has been observed that the purchases denote the
expenditure side and the sales present the income side and the both need to be stated in the manner which is desirable.
The expenditure and the income sides both are presented through the information sheets to be supplied in the
statements of expenditure, that is, the report of the two factors shows the actual financial position and other factors.
The income and expenditure statements provide just one aspect and those are dependent on the purchases and sales
recorded in the registers maintained specifically to keep track of the two. These statements prepare the ground for the
profit and loss account. The profit and loss statements are required to prepare the trial balance and the balance-sheet.
In addition to the purchases of provisions, the other items such as wages and salaries, the establishment expenses by
way of expenses on furniture, linen, equipment, bills for water, gas, power and telephone connections, the overhead
expenses and others need to be put in the appropriate format so that the financial status becomes clear. These total
expenses present one side that is of the outgoing flow of cash transactions and therefore the other side of the sales, the
coupons, the subsidy, the monetary receipts need to be taken into account. The running of an industrial canteen is a
labour welfare activity and therefore an entirely commercial approach need not be adopted in the consideration of the
profit and loss statements of the establishment like the industrial canteen.
Though it is not exactly a commercial enterprise, the running of an industrial canteen requires the necessary monetary
discipline and taking this into account, the financial working of the industrial canteen must be carried out in the
manner that is required to be followed in the other establishments. In many cases, the industrial canteen is run by the
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contractor and in all the industrial canteens, that are run by the contractor the same financial working is found to be in
actual practice which is followed in the running of an eatery in the private sector by an individual or an establishment
that is constantly seeking to increase the margin of profit-making. It becomes necessary in such circumstance to
curb the profit-making tendency and to maintain the balance in keeping the quality of food intact and keeping the
welfare of the employees uppermost and for this purpose the check and control procedures need to put into operation
by the controlling authority. It is essential to preserve the nature of an industrial canteen as a welfare facility to feed the
workforce sumptuously with a balanced and highly nutritious diet at the low cost. In this respect, the financial working
of an industrial canteen is much more difficult and much more complex in nature than that of the other catering
establishments run for more and more margin of profit.
Accounts - Daily, Weekly, Monthly and Annual Accounts.

The accounts should be maintained meticulously. Funding, investing in assets and controlling operations are the three
major aspects of financial decision making in any enterprise-private or organizational and irrespective of the fact
whether it is profit making or the non- profit making unit. The importance of financial information is emphasized but
more statements or figures have little significance. The information needs to be related to the technical, staff and
materials controls. This is a continuous process because there is a side range of products and services offered for sale
in the catering establishment. In the west most catering establishments follow a uniform system of financial
accounting. In a developing country like India, there is a large disparity in the methods of maintaining accounts.
The stipulated procedure of maintaining accounts is to be followed in the financial canteen management. The daily
accounts are to be maintained through vouchers, bills, coupons and the recording of the incoming and outgoing
cashflow should be completed at the earliest. The daily accounts should prepare the ground for the weekly accounts.
The weekly accounts should lead to the monthly accounts. It will be a good practice if the financial discipline the
preparing quarterly, half yearly and annual accounts is followed scrupulously. The general guidelines for preparing
such accounts are uniformly applicable to both the industrial canteens and the departmental canteens. The inputs of
capital, grants and subsidies from the departmental source are available for the departmental canteens but for the other
industrial canteens, the capital inflow is procured from the norms prevailing in the market conditions and the
proprietor of the canteen will be responsible for such procurement. That apart, maintaining the accounts procedurally
and the time frame for the same and the method of the preparation of accounts and the schedule of the submission of
accounts are other related matters remain almost the same in both the categories of the industrial canteens and the
departmental industrial canteen.
Annual accounts comprising of Income and Expenditure, Trading and Profit and Loss Account, Balance Sheet etc.
must be prepared immediately on the close of the year. After internal audit they should be submitted to the
Integrated Financial Adviser of the Department/ Office within three months of the close of the financial year. It will be
the responsibility of the Manager to complete and submit all accounts progressively prepared as on the last day of
every month, within seven working days of the following month, after internal audit, to the Honorary Secretary for
putting up to the Managing Committee.
The following books of accounts are to be maintained by the Departmental and other Industrial Canteens :
Cash Book 2. Ledger 3. Stock Register (for expendable items, coupon books, crockery, empty containers
etc.) 4. Dead Stock Register 5. Preparation Register (to show the details of eatables produced) 6. Sales
Register (Work Sheet) 7. Coupon Sales Register 8. Salary Register 9. Attendance Register 10.Bill Register
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(for sale on credit) 11. Kitchen Register (if a number of canteens is grouped together for Kitchen functions)
12. Journal (if number of daily transactions of credit sales and purchase exceed five) 13.Annual Accounts
The responsibility for proper maintenance of account books, submission of monthly and annual accounts rests with
the Manager of the Canteen.
The audit of accounts will be carried out by the internal Audit and after that it will be carried out by the Statutory
Audit Squad appointed for the same specific function.The periods for retention of the records of the canteens are to be
prescribed in consultation with the competent authorities for a period form One year to Ten years depending on the
nature of the records and register. The annual rates of depreciation will not be allowed to exceed the under mentioned
limits for Furniture – 10 percent, Equipment -20 percent and Crockery of 33 percent.
After applying reasonable rate of depreciation within prescribed limits the unserviceable non- expendable equipment
furniture, crockery etc. will be categorized as “Beyond Economical Repairs” (BER), these articles will be disposed of
through local auction. The money received will be credited to the canteen funds. Book balances be adjusted
accordingly. Each member of the Managing committee shall assume full responsibility for efficient running of the
canteen and to endeavour and strive for avoidance of losses as far as possible, as per the duties allocated to him by the
committee. The net value of general working losses/ liabilities as reflected in the annual accounts will be placed before
the Managing Committee, which will go into the reasons for losses and decide the remedial measures to arrest the
losses for the future.
3- 4-2 Daily, Monthly, Annual Budgets.

Financial management is that area of business which deals with the effective management of all the resources of an
establishment in monetary terms. It involves keeping account for all the transactions made, also recording any
information to enable the decision making on equipment, employees, purchasing sales and other areas of the canteen
management. The term accountancy is used to describe the process of measuring in the financial terms the past,
present, and future operations of a business. It helps to assess the financial status of on organization at any
particular point in time. The term management accounting covers more than just the preparation of financial
statements or accounting reports. It is concerned with the interpretation of reports and their presentation in a form that
will enable canteen management to make profitable decisions about utilization of resources.
Though based on knowledge of basic accounting techniques, it is chiefly a matter of nature of attitude and approach
towards the complex business problems. It includes the preparation of cost statements and cost estimates. The direct
and indirect costs involved in the process of production need to be identified. This prepares the ground for standard
costing. Standard costing includes comparison of actual with standards and determines variations. The importance of
standard costing needs to be properly understood in respect of the standard costing for dishes, meals, and other
eatables and beverages. The cost accountancy and standard costing are very useful to prepare the cost estimates. These
become part of the cost budgeting. Planning and control of sales determines the extent of the use of materials. The
materials estimates or the materials budgeting help in the appropriate utilization of the materials. There is the
significant contribution of budgets in the management accounting. For this purpose the fixed and flexible budgets need
to be prepared. Similarly capital, and operating budgetsare used as standards for measuring actual performance. As the
Daily, Weekly, Monthly and Annual account are to be maintained to record the financial status, it is necessary to plan
and prepare in order to make the decision making process easier and

2
to prepare daily, weekly, monthly, and annual budgets in the financial organization likethe industrial canteen.
Catering is essentially a service industry. Some of its special features make it different from other industries and
complex in terms of financial viability. There is a wide variety in the types of products and services. There is a large
variety of costs incurred. The proportion of fixed costs is very large. A variety of prices needs to be determined for the
same items depending on the nature of services offered. Catering establishments are always affected by the mood and
the goodwill of the consumer and the seasonal demand. All these diverse features make financial management of
cateringand food services rather tricky, difficult job. Therefore, decisions are required to be made at
every stage and for the decisions to be made effectively, budgeting men, manner, materials and processes is required.

An illustration will serve the purpose

Date 01-04-2004 Estimate % Actual %

s
Variable costs 5000 50% 3000 30%
Fixed costs 4000 40% 6000 60%
Net Profit 1000 10% 1000 10%
Total 10,000 100% 10,000 100%
This daily budget is in the simplest format. It can be detailed out including the different products and services. The
extension and addition to the same will possibly generate by putting together the daily budgets, the weekly and
monthly, budgets. The seasonal budgets may to some extent correspond with the quarterly budgets such as the summer
budgets of the months of April, May and June, the rainy season budget of July, August, September, The autumn season
budget of October to December and the Winter budget from January to March. This will finally lead to the
preparation of the annual budgets. The budgets exercise check and control mechanism on the financial transactions of
the industrial canteens. They provide a blue print for the “What” and “How” of the operations to be performed
with the cost estimates maintained from asingle day to even the span of the entire year in catering services.
Income and Expenditure Ratios.

Cost pricing in canteen Management is a process by which managers attempt to direct, regulate and restrain the
actions of the canteen personnel in order to achieve goals. This is essential in the area of food and other costs because
loss is possible at every stage in a catering operation. The food costs in any catering establishment, whatever its size,
vary between 40 per cent of total sales. These costs being variable need to be controlled because on them will depend
the amount of profit that the establishment makes. In the sequence of the production cycle and service, the losses are
possible because of lack of supervision at the point of receiving supplies, insufficient menu planning, lack of care in
the Kitchen production and lack of training in the service of prepared food.
The exact cost of a dish should preferably be known before it can be served to the consumer at a profitable price. It is
important to cost dishes and meals accurately to ensure that they are cost-effective and cover all costs incurred in their
preparation and service. It is the usual practice in catering to determine the total cost of materials used in producing a
dish of a standard quality and then adding to it a certain percentage to cover labour and overhead costs to calculate the
selling price.

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A sample of a standard costing sheet is given below.
Standard Costing Sheet
Dish – Chapati Date 12-7-2002
Portions 4(8 Chapatis)

Ingredients Quantity Price RS/Kg Cost (Rs.)

Whole Wheat 75 gm 6.00 0.449
flour (atta)
Soya flour 25 gm 8.00 0.200
Rice flour 05 gm 8.00 0.040
Salt 02 gm 2.50 0.050
Fat 10 gm 40.00 0.480
Total Food Cost Portions) 1.219
(4
Selling price Portion 0.304 profit %Gross
+ 66%
Sample costing Sheet for Chapati

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Costing sheets for each dish on the menu may be prepared to calculate the meal or menu costing. Since catering is a
service industry, labour, staff costs form the largest expense next to food. Labour costs include salaries of staff, the
value of all allowances, facilities and benefits to them such as meals, medical facilities, housing, insurance, bonus,
pension, and uniforms. Overheads include all other costs like rent, depreciation, fuel, cleaning materials, linen,
security, administrative and costing cost. From costing we have to move on to the process of determining what to
charge for fooditems which is termed “pricing” in commercial catering. The pricing takes the profit making goal but in
the industrial canteens it has to take the cost effective goal. The method of pricing used often is the cost plus method.
The rate of return on the capital method is also used for the determination of pricing of items. In general 150 per cent
of food cost is added to determine the pricing. It is evident that irrespective of the size and nature of the food service
establishment, price fixation must aim at covering all costs involved in the preparation and service of food. The
determination of prices varies withthe fixed cost and overhead expenses of every establishment.
A full part subsidy is provided to many factory or office canteens, Generally, a supervisor runs a canteen who is
accountable to the personnel manager or to the works manager. Normally, the canteen provides main meals, snacks
and tea. Although employees generally like plain well cooked and attractively served food, the canteen supervisor tries
to introduce a weekly cycle for the sake of convenience and to provide variety. It is however difficult to offer a choice
of dishes everyday. The canteen supervisor is responsible for controlling costs and therefore he collects cost in a
mannerthat facilities cost control.
When the principle of costing is applied to this field, the objective is to keep the costs to the minimum consistent
with quality. A monthly operating statement is prepared to show the various expenses under appropriate heading. The
total cost is compared with the amount realized from the sale to find out the next operating profit orloss.
Under the following main account headings, The costs are collected periodically.

Provisions like - Meat, eggs, fish, vegetables, fruits, flour, rice, milk vegetable oil, tea, coffee, sugar, soft
drinks, etc.
Wages and salaries of Labour Supervisor, cooks, waiter, kitchen assistants, porters.
Services as Gas, power, electricity, steam, water, light.
Consumable Stores such as Table linen, cutlery, glassware, crockery, cleaning materials, brushes, dustbins,
etc.
Miscellaneous Overheads like - Rent and rates, depreciation insurance premium, etc. The sale of meals and
subsidy is the source of revenue for the canteen. Usually coupons of different colours are issued to
workers, accordingto the type of meal provided.

The receipts from running a canteen include company subsidy and sale from provisions. A proper budget should be
prepared starting from the volume of the services to be rendered. Since the production of the canteen is mostly
perishable, care should be taken to avoid excess waste or supply as much as possible.

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CANTEEN COST STATEMENT
NO. OF MAIN MEALS SERVEDNO. OF SNACKS SERVEDNO. OF TEA SERVED
PARTICULARS ACTUAL BUDGET
FOR THE CUMMULATIVE FOR THE CUMMULATIVE
MONTH MONTH
A) Wages and
salaries
Supervision
Cooks

Canteen Manager
Kitchen Assistant
SUB TOTAL

PARTICULARS ACTUAL BUDGET

FOR THE CUMMULATIVE FOR THE CUMMULATIVE
MONTH MONTH
B) Provision
Meat
Fish
Eggs
Vegetables
Rice
Butter
Vegetable oil
Bread and cakes
Fruits
Biscuits
Milk
Tea and Coffee
Sugar
Soft Drinks
Grocery
SUB TOTAL
C) Consumable
Table line

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Cutlery
Glassware
Crockery
Cleaning material
Dustbins
D) Services
Gas
Power
Electricity
Water
E) Miscellaneous
O/H
Rent and rates
Depreciation
Insurance
Maintenance
SUB TOTAL
F) Total cost
G) Deduct income
from sales
Subsidy by company
H) Surplus / Deficit

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Mostly the canteens are subsidized i.e all costs are not borne by the workers. For this reason from the total cost,
subsidy and sale of coupon is deducted to arrive at the profit or loss of the canteen. It is difficult to give format of the
Canteen cost sheet which will hold good in all circumstances. The required format should be developed based on the
specimen format given above.

Some times it is required to calculate the increment in subsidy per head to be provided by the company this month
over that in the same month last year. For this purpose, monthly statement of canteen cost may be prepared in the
following forms:

MONTHLY STATEMENT OF CANTEEN COST

Particulars This Month This month

last year
Materials consumed
Labour and Supervision Overheads
Total Rs.Less : sales by Coupon
Subsidy for the period(a)

Number of employees served (b)

Cost per employee (a+ b)

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Cost accounting with the objects of fixing prices for main meal, snacks, tea etc. is difficult to organize because it
requires equating one type of food with another so that a common denominator can be obtained to determine the
average cost per meal. However, if such a common denominator cannot be ascertained, costs may be expressed in
terms of per employee to facilitate control. Though, it is difficult to calculate the cost per meal the canteen supervisor
with his experience can estimate the cost involved for each type of meal provided. The canteen supervisor should have
the knowledge and judgment about the number of meals that can be served with various combinations of meat, fish
and vegetables and how many cups of tea can be provided with certain quantity
of tea leaves and certain litres of milk. Thus the entire decision making is mostly left upto the canteen supervisor who
mostly handles situation single handedly.
It is necessary for the canteen supervisor to estimate correctly the number of meals required each day. Wastage must
be avoided to control the costs. The personnel manager and the canteen supervisor should examine the waste food bins
fromtime to time. This is to ensure that food is not wasted.
Moving average charts for the main heading of expenses and income received from various type of meals helps to
keep a watch on trends. A moving averagecharts can be prepared as below.

THREE – MONTHLY MOVING AVERAGE CHARTS FORCONSUMPTION OF VEGETABLE OIL

Month Date 3 Months Moving Total 3 Months Moving average
January 150 - -
February 135 425 141.67
March 140 413 137.67
April 138 420 140.00
May 142 420 140.00
June 140 423 141.00
July 141 418 139.33
August 137 416 138.67

September 138 420 140.00

October 145 426 142.00
November 143 427 142.33
December 139 - -

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Note : The first figure against February in the 3rd column is the total of data for January, February and March. The
three months moving total for March is obtained by discarding data for January and adding data for April. Each time
while calculating a moving total, the data is discarded for the 1 st of the previous 3 months and data for the month
which is next to the last of the previous 3 months.
The moving total and the moving average are placed at the center of the time span from which they are computed. The
total data of January, February and March is placedagainst February.
EXAMPLE

The industrial canteen in an industrial unit is run for the benefits of its workmen and provides necessary subsidy to the
canteen.
During the month of August 2000 the following purchases were made.

Commodity Quantity Rs. Rate (Rs.) Per. Kg.

1. Tea 4 160
2. Sugar 50 30
3.Milk 60 25
4.Atta 210 20
5.Flour 20 30
6.Vegetable Ghee 3 110
7. Besan 12 40
8. Dal 30 38
9. Potato 90 20
10. Green vegetable 20 15
11.Spices 2 150

The other expenses for the month were : Rickshaw fare Rs. 200, Salary to cook
Rs. 2500 per month, Wages to waiters,
Rs. 1500 per month each, Supervisors Salary Rs. 3000 per month.

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Fuel, Gas, Coal etc. Rs. 4000, Miscellaneous expenses-crockery and glassware Rs. 1000. Depreciation of Utensils and
Furniture Rs. 500, Sale of coupons @ Re. 0.15 per coupon.

Prepare Trading and Profit and Loss Account of the Canteen for the month of August 2000 and find out the amount of
subsidy paid by the company.
Tea Sugar Atta
Opening Balance 2 kg 10kg 30kg
Closing Balance 1kg 5kg 20kg

Solution :

Canteen subsidy during the month of August 00.

Rs. Rs.
Net Loss 5290 Subsidiary given by 15290
company
Establishment Expenses 5500
(Salary, wages )
Overheads 1500
Staff Overheads 3000
Total 15290 15290
TRADING AND PROFIT AND LOSS A/C FOR THE MONTH OF AUGUST2000

Rs. Rs.
To Opening Stock By Sales 7,800 @ Rs.2.15 16770
Tea 2 kg x 160per kg 320 Closing Stock
Sugar 10 kg x 30 per kg 300 Tea 1x 160 = 160
Atta 30 kg x 20 per kg 600 Sugar 5x30 = 150
To Purchases : Atta 20 x 24 = 480 790
Tea 4 x 160 640
Sugar 50 x 30 1500

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 Milk 60 x 20 1200
Atta 210 x 20 4200
Flour 20 x 30 600
Vegetable 3 x 20 60
Besan 21 x 40 840
Dal 30 x 38 1140
Potato 90 x 16 1440
Green Veg. 17 x 20 340
Spices 2 x240 480
Fuel, Gas, Coal etc. 4000 By Net Profit / Loss -
Rickshaw fare 200
17560 17560

Management Procedures : Supervision, Monitoring, Controlling

Major policies are conceived and planned at the higher management and then each policy decision passes through
different channels and processes to the person
that is at the level of executing the decisions. In a catering establishment, decisions as well as guidelines for
performance of process activities and operations need to be passed from level to level downwards to carry out the
scheduled operations and the programme of production. It is therefore essential to see that the management procedures
in the establishment have a suitable network for efficient supervision, effective-monitoring and competent controlling
mechanism well established for these purposes.
The traditional concept of supervision has undergone many charges. The method of supervision was mainly the spot
visit. It was generally a fault – finding mission in majority of the cases. At present supervision through the spot visit is
not just an occasion for fault finding but an opportunity to take stock of the situation on the whole and to advise and
guide those concerned with the operation.
In the industrial canteens the supervisory authorities have to carry on the tasks of supervision. At the higher level of
management the decision making procedure is carried out by the management. On account of this, the top level
management is the supervisory authority. There is no direct supervision but the powers of supervision are delegated to
the canteen committee. The canteen committee on its part delegates this

3
supervisory authority to the canteen manager or the canteen contractor or the proprietor as the case may be. The
canteen manager visits the spot concerned either in the store or in the kitchen or the service area as often as it is
convenient for him, considering the nature and the size of the catering establishment under his charge. The supervision
of service is entrusted by the managers to the steward or the captain and then to the waiters. The supervision over the
maid servants, cleaners and waiters is carried out by the steward or the canteen manager depending on the size of the
industrial canteen. The store – keeper is under the charge of the canteen manager and the store – keeper concerned will
supervise the functioning of the helpers, the cleaners and the maid servants, if such a need arises. The canteen
manager has to supervise the operations carried out by the cooks.
The supervision task is closely related with the monitoring of the operations in the functioning of the industrial
canteens. A periodic monthly or quarterly stock taking is necessary to monitor the store of the industrial canteens. To
ensure proper execution of the processes in food production and catering operations it is essential to monitor the
operations in the field. This monitoring process initiates the necessary corrective measures at appropriate time and at
appropriate level. Monitoring helps to keep a watch on achievement of targets and appraise the execution of the plans
set in the light of actual experience. Field visits, meetings, and mutual discussions are the methods used for monitoring
and those who have the supervisory authority will carry out the task of monitoring in the managerial procedures of the
canteen management.
Controlling is the process that measures current performance and guides them towards some predetermined objectives.
The controlling is essential for the effective implementation of plan. Controlling is linked with planning. It is the
process of comparison of actual with the standard set. Controlling has to maintain a balance between activities and
operations and the set of goals set for the various operations of the canteen management. Controlling is a means to
plan policies, programmes, and schedules of planning. Planning should precede controlling. Planning without control
is meaningless and controlling without planning is blind. Thus good planning can bring concrete results through
controlling.
The significance of supervision, monitoring, and controlling in the catering operations needs to be emphasized as
these management procedures help executing the catering operations.

3
Management procedures – Directing, Communicating, Reporting

The management procedures include directing which is that function that initiates actual performance of tasks and

requires greater interactions between people through communicating and reporting. Directing includes instructing,

guiding, teaching, and reviewing. Instruction must ensure that each member understands how his work fits into the

total scheme of work to be achieved. Direction is the guidance, the inspiration, the leadership of these men and women

that constitute the real core of the responsibilities of management. The task of directing people involves guiding them

in their jobs. Clearly, standing too close to be an employee or interfering with jobs is to be avoided. Instead of

watching people, by viewing their work positively, the performance can be supervised to see how the work is being

done. Teaching people to organize work will make the work less stressful and better in performance and using quicker

methods will create a more relaxed atmosphere. Co-ordinating and evaluating the operations is a part of directing the

organization. To get the work done by the subordinates to achieve desired results in a stipulated span of time is an

important task. Getting the work done by a person depends on whether he is motivated to do that work or not.

Motive makes a person active in a particular way. Motive is an inner impulse causing a person to act Motivation refers

to the way in which urges, drives, desires, aspirations, striving, or needs direct control or explain the behaviour of

human beings. The fine balance of both the types of positive motivation and negative motivation is the core of

management. Directing involves leadership traits in the supervisory authority. The process of leading depends on the

elements such as possessing separate identity, being rooted in feeling and attitudes in everevolving dynamic process

and involving influence, direction and guidance. Co- ordination is the combination of all efforts used in an enterprise

for obtaining objectives that are common in nature. Constant co- ordination helps to tackle problems when they arise,

gather ideas from various experiences, anticipate problems and take timely action to prevent them from recurring, Co-

ordination, leadership and motivation enhance the efficiency of directing the effective implementation of the sequence

of operations to be carried out in the canteen.

All plans chalked out for the establishment to run smoothly will come to nothing, if they cannot be interpreted and

understood by the people who have to carry them out.The ability to carry information or messages to others is known

as communication. It is an important tool of management when dealing with people. Yet it is the most difficult to

achieve effectively. In the catering establishment, communicating is central to unifying all the different activities

which interplay in the achievement of goals. Communication is a two way process and is completed when there is the

same response from the receiver of the information which the sender desires to communicate. The types of

communication on the basis of expression are verbal, non- verbal, written, formal and informal communication. Oral

3
directions, instructions and commands, written letters, memos, notices, body gestures, facial expressions and even

silence are used to communicate messages from one end to another. The types of communication on the basis of

direction are upward communication, downword communication and horizontal communication. The barriers of

communication are uncertainty, fear complex, cultural background, education and certain other causes and these need

to be removed and break – down in communication needs to be avoided. The establishment of an effective

communication system is essential for every organization.

The Reporting system is aimed at providing necessary feed – back about the status of activities and operations to the

supervisory authorities. Such feed back enables the authorities to keep a watch over the execution of plans and ensures

necessary

remedial measures to be taken to achieve the targets allotted. The lower level staff will report orally to the middle

level management. The waiters will report to the steward or the head waiter. The utility staff will report to the head

amongst them. The manager will seek reports from the store, the kitchen and the service area. The upward reporting

will enable the manager to instruct as required. The manager in his turn will have to report to the upper level

management. The submission of written reports to the canteen committee or management will have to be carried out in

the periodic sequence. The submission of accounts is reporting on the financial front and is to be carried out as

stipulated in the policy framework of the catering establishment. Reporting is the task crucial in management but

equally crucial is the fact of ‘who’ reports to ‘whom’.

The managerial procedures involve Supervision, Monitoring, Controlling, Directing, Communicating and Reporting.

These procedures need binding together which is provided by the co- ordination of these management procedures. The

same can be presented through a figure as shown below

3
 SUPERVISION

Management

Middle Level ManagemMenOtNITORING DIRECTING

CO- ORDINATION

Lower Level ManaC

gement
OM M UNICATING CONTROLLING

REPORTING

MANGEMENT PROCEDURES IN AN INDUSTRIAL

CANTEEN
Management Structure of Industrial Canteens

The management structure is the out come of putting people and jobs together and therefore represents the
entire team involved in the running of the establishment both at the operational and management levels. Any
organization needs a well set detailed structure, having functions logically arranged to achieve maximum
efficiency. The two types of authority relationships that most often exist in food services are line and line
staff relationships. In the line structure each individual is responsible to the person ranking above him on the
structural pattern. Thus authority and responsibility are passed downward. In the line and staff pattern,
specialists are positioned at various levels to advise those along the line structure as the activities of the
establishment get diversified. The expertise of staff is utilized to maximize the efficiency of line personnel
to the utmost.
Organizational management structures can grow in two directions vertically and horizontally. In vertical
structural pattern the person above assigns the work to his immediate subordinates down the line. In small
catering establishments and industrial canteens run for a limited number of employees, the vertical
management structural pattern is noticed. As the length of the vertical structural pattern increases, the
functional units begin to operate separately. The activities of the establishment grow in size and
volume. The structural pattern then spreads out to become a horizontally spread structure. The structural
patterns also indicate the functional units and the interlinked relationships amongst them. The structural
patterns indicate whether authority is centralized or decentralized. The structural patterns can also be termed
as tall or flat patterns of management structure.
The management structural patterns are line or vertical or tall structures and line and staff or horizontal
or flat structures. These structural patterns of the management organizations can also be termed as
ladder and pyramid structural patterns in which the ladder vertical, – tall, and line patterns present one
group and the pyramid
– horizontal, flat, and line and staff structural patterns of management organization present the other group.
The small industrial canteens which serve up to 150 employees are ladder type while those canteens that
serve more than 150 employees are of the pyramid structural pattern of management organization. The same
cam be graphically presented.
Management

Manager Manager
PYRAMID

ORGANISATION
Personnel

SERVICEAccounts

PRODUCTION
Service

Kitchen

MATERIALS

Store

LADDER AND PYRAMID PATTERN

IMPORTANCE OF HR IN 10 AREAS IN ORGANIZATION

Human resources is important to organizations in 10 specific areas, ranging from strategic planning
to companyimage. HR practitioners in a small business who have well- rounded expertise provide a
number of services to employees.The areas in which HR maintains control can enhance employees’
perception of HR throughout the workforce when they believe HR considers employees to be its
internal customers and renders services with that in mind.

Strategy

HR improves the company's bottom line with its knowledge of how human capital affects
organizational success. Leaders withexpertise in HR strategic management participate in corporate
decision-making that underlies current staffing assessments and projections for future workforce
needs based on business demand.

Compensation

HR compensation specialists develop realistic compensation structures that set company wages
competitive with other businesses in the area, in the same industry or companies competing for
employees with similar skills. They conduct extensive wage and salary surveys to maintain
compensation costs in line with the organization's current financial status andprojected revenue.

Benefits

Benefits specialists can reduce the company’s costs associated with turnover, attrition and hiring
replacement workers. They are important to the organization because they have the skills and
expertise necessary to negotiate group benefit packages for employees, within the organization's
budget and consistent with economic conditions. They also are familiar with employee benefits
most likely to attract and retain workers. This can reduce the company’s costs associated with
turnover, attrition and hiring replacement workers.
Safety

Employers have an obligation to provide safe working conditions. Workplace safety and risk
management specialists from the HR area manage compliance with U.S. Occupational Safety and
Health Administration regulations through maintaining accurate work logs and records, and
developing programs that reduce the number of workplace injuries and fatalities. Workplace safety
specialists also engage employees in promoting awareness and safe handling of dangerous
equipmentand hazardous chemicals.

Liability

HR employee relations specialists minimize the organization's exposure and liability related to
allegations of unfair employment practices. They identify, investigate and resolve workplace issues
that, left unattended, could spiral out of control and embroil the organization in legal matters
pertaining to federal and state anti-discrimination and harassment laws.

Training and Development

HR training and development specialists coordinate new employee orientation, an essential step in
forging a strong employer-employee relationship. The training and development area of HR also
provides training that supports the company's fair employment practices and employee
development to prepareaspiring leaders for supervisory and management roles.

Employee Satisfaction

Employee relations specialists in HR help the organization achieve high performance, morale and
satisfaction levels throughout the workforce, by creating ways to strengthen the employer-
employee relationship. They administer employee opinion surveys, conduct focus groups and seek
employee input regarding job satisfaction and ways the employer can sustain good working
relationships.

Recruitment

HR recruiters manage the employment process from screening resumes to scheduling interviews to
processing new employees. Typically, they determine the most effective methods for recruiting
applicants, including assessing which applicant tracking systems are best suited for the
organization's needs.

Selection

HR professionals work closely with hiring managers to effect good hiring decisions, according to
the organization's workforce needs. They provide guidance to managers who aren't familiar with
HR or standard hiring processes to ensure that the companyextends offers to suitable candidates.

Compliance

HR workers ensure that the organization complies with federal state employment laws. They
complete paperwork necessary fordocumenting that the company's employees are eligible to work
in the U.S. They also monitor compliance with applicable laws for organizations that receive
federal or state government contracts, through maintaining applicant flow logs, written affirmative
action plans and disparate impact analyses.
LATEST TRENDS IN HRM

The world of work is rapidly changing. As a part of organization, Human Resource Management
(HRM) must be prepared to deal with effects of changing world of work. For the HR people it
means understanding the implications of globalization, work-force diversity, changing skill
requirements, corporate downsizing, continuous improvement initiatives, re- engineering, the
contingent work force, decentralized work sites and employee involvement for which all and more
have the financial implication to organization. Let alone on the employees side where engagement,
satisfaction, motivation, retention, absenteeism, turnover have to be checked. As a rule human
resource management has to venture into new trends in order to remain relevant corporate
development partner. Look atthe new trends bellow;

Globalization and its implications

Business today doesn’t have national boundaries – it reaches around the world. The rise of
multinational corporations places new requirements on human resource managers. The HR
department needs to ensure that theappropriate mix of employees in terms of knowledge, skills and
cultural adaptability is available to handle global assignments.
In order to meet this goal, the organizations must train individuals to meet the challenges of
globalization. The employees must have working knowledge of the language and culture (in terms
of values, morals, customs and laws) of the host country.
Human Resource Management (HRM) must also develop mechanisms that will help multicultural
individuals work together. As background, language, custom or age differences become more
prevalent, there are indications that employee conflict will increase. HRM would be required to
train management to be more flexible in its practices. Because tomorrow’s workers will come in
different colors, `nationalities and so on, managers will be required to change their ways. This will
necessitate managers being trained to recognize differences in workers and to appreciate and even
celebrate these differences.
Work-force Diversity

In the past HRM was considerably simpler because our work force was strikingly homogeneous.
Today’s work force comprises of people of different gender, age, social class sexual orientation,
values, personality characteristics, ethnicity, religion, education, language, physical appearance,
marital status, lifestyle, beliefs, ideologies and background characteristics such as geographic
origin, tenure with the organization, and economic status and the list could go on. Diversity is
critically linked to the organization’s strategic direction. Where diversity flourishes, the potential
benefits from better creativity and decision making and greater innovation can be accrued to help
increase organization’s competitiveness. One means of achieving that is through the organization’s
benefits package. This includes HRM offerings that fall under the heading of the family friendly
organization. A family friendly organization is one that has flexible work schedules and provides
such employee benefits such as child care. In addition to the diversity brought by gender and
nationality, HRM must beaware of the age differences that exist in today’s work force.
HRM must train people of different age groups to effectively manage and to deal with each other
and to respect the diversityof views that each offers. In situations like these a participativeapproach
seems to work better.

Changing skill requirements

Recruiting and developing skilled labor is important for any company concerned about
competitiveness, productivity, quality and managing a diverse work force effectively. Skill
deficiencies translate into significant losses for the organization in terms of poor-quality work and
lower productivity, increase in employee accidents and customer complaints. Since a growing
number of jobs will require more education and higher levels of language than current ones, HRM
practitioners and specialists will have to communicate this to educators and community leaders etc.
Strategic human resource planning will have to carefully weigh the skill deficiencies and shortages.
HRM department will have to devise suitable training and short term programs to bridge the skill
gaps & deficiencies.
Corporate downsizing.

Whenever an organization attempts to delayer, it is attempting to create greater efficiency. The

premise of downsizing is to reduce the number of workers employed by the organization. HRM
department has a very important role to play in downsizing. HRM people must ensure that proper
communication must take place during this time. They must minimize the negative effects of
rumors and ensure that individuals are kept informed with factual data. HRM must also deal with
actual layoff. HRM dept is key to the downsizing discussions that have to take place.

Continuous improvement programs

Continuous improvement programs focus on the long term well-being of the organization. It is a
process whereby an organization focuses on quality and builds a better foundation to serve its
customers. This often involves a companywide initiative to improve quality and productivity. The
company changes its operations to focus on the customer and toinvolve workers in matters affecting
them. Companies strive to improve everything that they do, from hiring quality people, to
administrative paper processing, to meeting customer needs.
Unfortunately, such initiatives are not something that can be easily implemented, nor dictated down
through the many levelsin an organization. Rather, they are like an organization wide development
process and the process must be accepted and supported by top management and driven by
collaborative efforts, throughout each segment in the organization. HRM plays an important role in
the implementation of continuous improvement programs. Whenever an organization embarks on
any improvement effort, it is introducing change into the organization. At this point organization
development initiativesdominate. Specifically, HRM must prepare individuals for the change. This
requires clear and extensive communications of why the change will occur, what is to be expected
and what effect it will have on employees.
Re-engineering work processes for improved productivity

Although continuous improvement initiatives are positive starts in many of our organizations, they
typically focus on ongoing incremental change. Such action is intuitively appealing – the constant
and permanent search to make things better. Yet many companies function in an environment that
is dynamic- facing rapid and constant change. As a result continuous improvement programs may
not be in the best interest of the organization. The problem with them is that they may provide a
false sense of security. Ongoing incremental change avoids facing up to the possibility that what
the organization may really need is radical or quantum change. Suchdrastic change results in the re-
engineering of the organization.
Re-engineering occurs when more than 70% of the work processes in an organization are evaluated
and altered. It requires organizational members to rethink what work should bedone, how it is to be
done and how to best implement these decisions. Re-engineering changes how organizations do
their business and directly affects the employees. Re-engineering may leave certain employees
frustrated and angry and unsure of what to expect. Accordingly HRM must have mechanisms in
place for employees to get appropriate direction of what to do and what to expect as well as
assistance in dealing with the conflict that may permeate the organization. For re-engineering to
generate its benefits HRM needs to offer skill training to its employees.
Whether it’s a new process, a technology enhancement, working in teams, having more decision
making authority, or the like, employees would need new skills as a result of the re- engineering
process.

Contingent workforce

A very substantial part of the modern day workforce are the contingent workers. Contingent
workers are individuals who are typically hired for shorter periods of time. They perform specific
tasks that often require special job skills and are employed when an organization is experiencing
significant deviations in its workflow. When an organization makes its strategic decision to employ
a sizable portion of its workforce from the contingency ranks, several HRM issues come to the
forefront. These include being able to have these virtual employees available when needed,
providing scheduling options that meet their needs and making decisions about whether or not
benefits will be offered to the contingent work force.
No organization can make the transition to a contingent workforce without sufficient planning. As
such, when these strategic decisions are being made, HRM must be an active partner in these
discussions. After its entire HRM department’s responsibility to locate and bring into the
organization these temporary workers. As temporary workers are brought in, HRM will also have
the responsibility of quickly adapting them to the organization. HRM will also have to give some
thought to how it will attract quality temporaries. This is sometimes done on consultancy basis.
Consultancy work is often a short time basis and to re-invent the organization’s operation such a
workforce ofconsultancy is vital.

Mass Customization

There is a lot going on already within HR concerning mass customization, the optimal combination
of mass production with customization. We’ve seen companies basing employment arrangements
on learning styles and personalities, allowing employees to choose between lower base pay and
higher bonuses vs. higher base pay and lower bonuses, and changing from career ladders with a
straight shot to the top to career lattices where a sideways move is considered a good career move.
Here, HR has done a great job of applying HR principles to its own traditional functional processes.
HR will need to take the tools of marketing around customization for consumers and clients and
applying them to the task of talent segmentation. The key is to optimize. At one extreme, a personal
employment deal for every individual would be chaotic. At the other extreme, defining fairness as
“same for everyone” risks missing important benefits of customization, and in fact may be
unproductive and unfair.
Thus, HR should develop principles for understanding the optimal level of customization in the
employment relationship. Moreover, because customization will often mean that differentgroups of
employees receive different employment arrangements based on their needs or the way they
contribute, HR must develop principles that equip leaders to explain these differences to
employees. Our work suggests that while many HR managers understand the need for
customization and differentiation in principle, they resist it because they simply don’t feel well-
equipped to explain them. It is far easier to say, “We do the same thing for everyone, so it’s out of
my hands.” The concept of fairness is sometimes confused with treating everyone the same.
Decentralized work sites

Work sites are getting more and more decentralized. Telecommuting capabilities that exist today
have made it possible for the employees to be located anywhere on the globe. With this potential,
the employers no longer have to consider locating a business near its work force. Telecommuting
also offers an opportunity for a business tin a high cost area to have its work done in an area where
lower wages prevail.
Decentralized work sites also offer opportunities that may meet the needs of the diversified
workforce. Those who have family responsibilities like child care, or those who have disabilities
may prefer to work in their homes rather than travel to the organization’s facility. For HRM,
decentralized work sites present a challenge. Much of that challenge revolves around training
managers in how to establish and ensure appropriate work quality and on-time completion. Work at
home may also require HRM to rethink its compensation policy. Will it pay by the hour, on a salary
basis, or by the job performed? Also, because employees in decentralized work sites are full time
employees of the organization as opposed to contingent workers, it will be organization’s
responsibility to ensure health and safety of the decentralized work force.

Employee involvement

For today’s organization’s to be successful there are a number of employee involvement concepts
that appear to be accepted. These are delegation, participative management, work teams, goal
setting, employee training and empowering of employees. HRM has a significant role to play in
employee involvement. What is needed is demonstrated leadership as well as supportive
management.
Employees need to be trained and that’s where human resourcemanagement has a significant role to
play. Employees expected to delegate, to have decisions anticipatively handled, to work in teams,
or to set goals cannot do so unless they know and understand what it is that they are to do.
Empowering employees requires extensive training in all aspects of the job. Workers may need to
understand how new job design processes. They may need training in interpersonal skills to make
participative and work teams function properly.
Technology

With the current technological advancement and its projection in the future, it has brought in new
eyes in the face of HRM. A number of computerized systems have been invented to help in the
HRM of which they are seen as simplifier of HR functions in companies. Large or multinational
organizations using some of the human resources information systems are reaping big. You do not
have to stay in a particularlocation to do your duties but you can do on a mobile basis. Forinstance
the paper work files are being replaced by HRMIS which may be tailor made or Off the Shelf.
These systems help in handling a lot of data on a chip other than having a room fullof file shelves.
What HRM is concerned with here is the safety (confidentiality)of the data/information of staff, and
therefore it is at the forefront of having to train personnel in operating such systems and developing
the integrity of such personnel to handle the sensitivity of the matter.

Health

With the emergence of the wellness clubs and fitness centers together with the need for having
healthy workforce, it has emerged that HRM has to move to another steplike having to subscribe for its
employees to such clubs, paying health insurance services for the staff. This is not only a productivity
strategy but also a strategy used to attract and retainvaluable employees.
In the current situation as it is now especially with the outbreakof HIV/AIDS epidemic, it has been
seen to be of value to have infected and affected employees have special attention so that they can
have confidence of support from the employers. With its effect leading to stigmatization, HRM has to
think of counseling and guiding such employee so that despite of the effect they (employee) remain
productive. Cancer is another kind of issue that has seen the current trend in HRM look closerto
health and wellness of employees. Cancers of all types are endemic to employees. Couple with other
communicable and none communicable diseases HRM has no option other than to advice
management to invest in health care packages that will revitalize the performance of the affected and
infected employees’
Therefore for HRM to continue showing relevance it has shiftedto providing health services to staff
through health insurance, sensitization, and free medical treatment bills. This has seen

high results in not only in performance but also in attraction and retention of highly qualified
personnel.
Family work life balance

Over a long time now in HRM history it has been a big debate about family life work balance.
Employees have been on toes of the employers to see if there could be justice done and onthe other
hand employers have been keen to minimize the effect of the same. The fact is a happy family is
equal to a happy workforce. With the current trend HRM have to work it out that every employee’s
family to some extent is a happy one.
Therefore investing in what may seem out hand for the organization is inevitable. It is time HRM to
convince management to organize family day out for the staff and their families, sacrifice sometimes
for days off to enable employees toattend to their family issues.
The employment laws unlike from the past now allow family leaves and above all you have parental
leave (paternity and maternity). In this moment the member of the family is not missed. Time off
your duty is to enrich one with family chore which help identify the employee with the organization.
From break of family affairs of course an employee is rejuvenated andrecognizes that the employer
values him so much to the extent that he/she is allowed to visit, stay and enjoy family bond.
Still it is realized that the family bond is a cost to employer in terms of time but it is a great motivator
the employee. Which leads to high productivity. Therefore the HRM has to stay tunedthe the
dynamics of family needs of employees and go a step ahead to provide development assistance like
loans to meet family needs and social development.

Confidentiality

The current trends have been seen as new challenges in the terms of costs especially in the short run
butfor organization to strive well in this competitive market to together with the labor mobility it is
imperative important torethink the HRM in terms of the current trends at all levels.
It goes without say that as longer as there is no clear defined human resource management strategies
in the given organizationthere is definitely a problem boiling in the same organization or an explosion
is bound to happen. With the current trend in managing the most valued organization resource,
organizations have to dig deeper to maintain.
Industrial Canteens -
Welfare services are not charity to the workers but are necessary for the organization to
achieve its goals. There is a distinct relationship between welfare measures and the workers
productivity. Welfare services relate to physical and social well-being of the employees both
within and outside the organisation.
One of the facilitative services in the labour welfare measures is the provision of canteens, rest
rooms and lunch rooms. Eating is naturally a very important thing for an employee to maintain his
health and efficiency. Unless proper facilities for food, tea and rest rooms are available, wealth
and consequential efficiency of the workers will go down. Hence, almost all the factories make it
a point to provide for canteens where food can be obtained either at a fair price or at subsidised
rates. Similarly, lunch rooms may be provided where workers may take their food which they bring
from their homes.
The success of every industrial unit depends on the efficiency of its work force. The
employees of the industrial unit constitute the core of its workforce. The welfare of the employees
is thus the responsibility of those who run the industrial unit. It is imperative for an industrial unit
to contribute to the morale, emotional stability, mental relaxation and health of its employees. The
share of contributing to the well being and health of the employees will be met by providing
quality food and refreshments by the industrial unit concerned. For this purpose the industrial unit
is required to maintain and manage a good canteen providing quality food and services. It is one of
the provisions of labour welfare which is a part of the social welfare.

Labour Welfare -
Labour welfare along with safety, health, social security is a part of social welfare, which is
a cherished ideal of all civilized countries like India. Welfare includes the physical, social,
psychological and general well-being. The concept of labour welfare is dynamic and varies from
country to country due to its value system and social institutions. The term labour welfare includes
all those voluntary efforts of the employers to establish living and cultural conditions for the
employees beyond that which is required by law.
The term broadly includes all measures which promote the physical, psychological, and
general well-being of the workers. The committee on labour welfare (1969) defined labour welfare
to include such services, facilities, and amenities as adequate canteens, rest and recreational
facilities, sanitary and medical facilities, arrangements for travel to and from work, and for the
accommodation of workers employed at a distance from their homes, and such other services,
amenities, and facilities including social security measures as contribute to improve the
conditionsunder which workers are employed.
 labor welfare activities then existing divided the entire range of these activities intothree groups,
such as,
(i) Welfare within the precincts of an establishment, medical aid, crèches, canteens, supply of
drinking water, etc.
(ii) Welfare outside the establishment : provision for indoor and outdoorrecreation, housing, adult
education, visual instructions, etc, and
(iii) Social Security,

Workers also need some place or shelter for taking rest during leisure homes. This isalso a
necessity for proper upkeep of health and efficiency.

Sections 42 to 49 of the Factories Act, 1948 contain specific provisions relating to labour
welfare, sections 42 to 45 apply to all factories irrespective of the number of workers employed
which relate to washing facilities (Sec.42) facilities for storing and drying clothing (Sec. 43),
facilities for sitting (Sec.44), and first aid appliances (Sec.45). The section 46 is related to canteens
and Sec. 47 is about shelters, rest rooms and lunch rooms. Section 46 states that the State
Government may make rules requiring that in any specified factory wherein more than two
hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and
maintained by the occupier for the use of the workers. Such rules may provide for : (a) the date by
which such canteen shall be opened (b) the standards in respect of construction, accommodation,
furniture and other equipments of the canteen (c) the foodstuffs to be served therein and the charges
which may be marked for these (d) the constitution of a managing committee for the canteen and
representation of the workers in the managements of canteen. (dd) the items of expenditure in
running of canteens which are not to be taken into account in fixing the cost of foodstuffs and
which shall be borne by the employer.

Key Concepts -
The administration and management of industrial canteens is the topic being investigated.
The terms ‘administration’, ‘management’, ‘financial management’, ‘personnel management’, and
‘organisational working’ are the key concepts which need to be put in their proper perspectives in
the context of the data collected for the investigation.
Role of Canteens with reference to industrial canteens -

Religion, tradition, and culture bring people together in large numbers to celebrate
festivals, and enjoy special occasions like marriages, births, which, involve eating together. The
traditional mass distribution of food in Temples and Gurudwaras, the breaking of fast together
during Ramazan, and feasting in Christmas are occasions of large scale food preparation and
service. Tradition and culture dictate that every occasion should be marked by festivity. Even in
bereavement it is traditional to feed the sympathisers. The development of catering establishments
has closely followed the changes in living, working and eating habits of people. The significant
developments in various spheres such as education, transportation, communication, healthcare,
welfare, trade and commerce, and industrilisation brought in its wake the need to feed the labour
force in factories. This led to the development of industrial canteens. Office goers too needed
lunch room facilities and so office canteens appeared on the scene. These facilities have taken
different forms, extending from soft drinks, snacks and platter lunch services, to provisions of hot
and cold complete meals in Tiffin boxes, and trays delivered to customers on order.
The various categories of food service establishments such as snack and drink bars,
speciality restaurants, take home centers, mobile and leisure eating and formal dining
establishments grew as a matter of convenience at the places of work or residence. These were
generally meant to be low or no profit making in their approach. The types of catering facilities are
varied and their number is constantly increasing. Even then, the need to focus on relatively small
establishment, in terms of providing planned operations, is great. Establishments feeding from 50
to 250 people and more per day need to be looked into, in order to ensure a fair deal to the
customers in termsof health satisfaction and enjoyment of food. It is with this view that the present
study seeks to emphasize the importance of organising, supervising, and controlling the quality of
food and service in industrial canteens and lunchrooms.
The provision of canteen facility is thus that facility which is concerned with the entire
labour force in the industrial unit. ‘Better working conditions lead to better productivity’ is the
principle that has been universally acknowledged by all those who are concerned with the setting
up and running an industrial unit. It is not just the best working conditions that are sufficient now
but the best working facilities like steaming hot food which is hygienically prepared and which is
promptly served to the heart’s satisfaction to the workers. Considering the significance of the
physical satisfaction, psychological relaxation, and mental refreshment that is given to the
employees in the industrial unit to maintain its work culture, work environment and industrial
peace through the industrial canteens, it is proposed to undertake a sample survey of the industrial
canteens in and around the city of Bhiwandi.
DATA ANALYSIS

How often do you eat in canteen?

[ ] 1-3 days a week [ ] 3-5 days a week [ ] All days [ ] Not at all

No, 0, 0%

YES , 100,
100%

Are you comfortable with the time slot of canteen?

[ ] Yes [ ] No Suggest the suitable time slot

Are you satisfied with menu provided in the canteen?

[ ] Yes [ ] No

Is the canteen maintained cleanly?

[ ] Yes [ ] No

Yes No

81.82%
75.00%
70.37%

55.81%
44.19%

29.63%
25.00%
18.18%
Do you prefer Non-Veg to be included in normal menu?

[ ] Yes [ ] No

Yes No

81.82%
75.00%
70.37%

55.81%
44.19%

29.63%
25.00%
18.18%

Q. No. 11 Are you satisfied with special meals provided on Wednesday?

[ ] Yes [ ] No

67.44%

11.63% 16.28%
4.65%
0.00%
What is your opinion about canteen ambience?

[ ] Poor [ ] Fair [ ] Good [ ] Excellent

The purpose of the study -

The purpose of the present investigatory survey project is to attempt a study of the 122

industrial canteens which have responded by giving answers to the 50-Question Questionnaire

specially designed for the investigatory survey. The study is attempted with an intention to find out

the set up of administration and the procedures of management in the industrial canteens which

have responded to the Questionnaire. The main purpose of the study can be stated as given below.

1) To attempt a study of the administrative set-up of the industrialcanteens under investigation,

2) To attempt a study of the financial management of the industrialcanteens surveyed,

3) To attempt a study of the personnel management of the industrialcanteens surveyed,

4) To attempt a study of organisational working of the industrialcanteens investigated,

5) To attempt a comparative analysis of the area-wise and category wisetypes of the industrial

canteens under study and

6) To attempt to find out the problems facing the industrial canteensunder study and to

recommend the possible solutions.

Objective of the study -

The nature of administration of the industrial canteens needs to be studied carefully
to understand the proper functioning of the industrial canteens. The executive and operative
functions of running an industrial canteen are performed by the managerial staff engaged for the
purpose. The space management, the equipment management, the food management, the financial
management, the personnel management and the disposal and safety management are the major
activities that the canteen management is required to perform appropriately. The main features of
these major activities of management of canteens are required to be investigated to understand
how to manage and maintain industrial canteens successfully to the satisfaction of all concerned.
The area-wise and category-wise types of industrial canteens are being surveyed and their broad
features need to be studied in the present investigatory survey. The detailed objectives of the
present investigatory study can be listed as given below:
1) to study the administrative set-up of the industrial canteens being surveyed withreference to the

responses given to the 50 Question Questionnaire,

2) to study the procedures of management of the industrial canteens being surveyed,

3) to study the financial management of the industrial canteens under survey,

4) to study the personnel management of the industrial canteens under study,

5) to study the food management of the industrial canteens under study,

6) to study the main heads of expenditure incurred in the industrial canteens under investigation,

7) to study the scope of career opportunities in the industrial canteens on the basis ofthe responses

from the industrial canteens under study, and

8) to study the problems faced by the industrial canteens surveyed and to makesuitable

recommendations.

The Five Hypotheses -

The study of the administration of the industrial canteens is the focus of the present
investigatory survey. The present research study has another focus to attend and that is concerned
with the industrial canteen management. The industrial canteen management is further categorised
as the financial management of the industrial canteens and the personnel management of the
industrial canteens. Another area is the system of the organisational structure of the industrial
canteens chosen for investigation. The smooth and satisfactory functioning of the industrial
canteens thus depends on the administrative set-up, efficient financial management, effective
personnel management, and systematic organisational working. The same can be stated in the
five hypotheses of the present research study based on the responses given to the 50-Question
Questionnaire, which is specially designed to attempt a sample survey of the industrial canteens in
and around the city of Bhiwandi. The validation of the five hypotheses will be attempted through
the interpretation and analysis of the data compiled. The five hypotheses are stated below.
1. The smooth and satisfactory functioning of the industrial canteens

DEPENDS/DOES NOT DEPEND

on the efficient administrative set-up of these canteens.

2. The smooth and satisfactory functioning of the industrial canteens

DEPENDS/DOES NOT DEPEND

on the effective financial management of these canteens.

3. The smooth and satisfactory functioning of the industrial canteens

DEPENDS/DOES NOT DEPEND

on the disciplined personnel management of these canteens.

4. The smooth and satisfactory functioning of the industrial canteens

DEPENDS/DOES NOT DEPEND

on the systematic organizational working of these canteens.

5. The smooth and satisfactory functioning of the industrial canteens

AFFECTS/DOES NOT AFFECT

the smooth and satisfactory and efficient functioning of the industrial units of thesecanteens.
 Research Methodology -

Research Methodology consists of a cumulative set of procedural steps in conducting

research on a topic chosen for that specific purpose. Research means finding something new,

something original, conceptually or experimentally or applying the same again to its domain. The

present research study is an attempt to apply the guiding principles of administration and

management to a group of industrial canteens. The survey of industrial canteens is attempted

through the compilation of responses. The data is compiled from the responses given as answers to

the Questionnaire specially designed for the present research on hand. The Questionnaire contains

fifty questions and these questions address areas concerned with the aspects of administration,

management and organisational structure. About one third part of the battery of these fifty

questions deals with the organisational structure of the industrial canteens. The remaining two

thirds of the Questionnaire is further sub-divided in three parts which address the areas of

administration, financial management and personnel management. The responses to the

Questionnaire were solicited from approximately 200 industrial units having industrial canteens.

All those that were approached have not given their responses but 122 industrial canteens from 58

industrial units have responded and these responses-6100 responses in all-have formed the basis of

the present study. The method of data collection, the method of data analysis and other features

such as the period, the coverage and the limitations of the study are presented in the second

chapter. The sections on the methodology are followed by a brief sketchof the past literature.

A company can contribute fairly its share towards the good health of its employees by

providing quality food and refreshments. For this purpose, it is imperative for a company to

maintain and manage a good canteen providing quality food and services.

These canteens can be of two types :

1. Company-run Departmental Canteens

2. Contractor-run canteens
1. Departmental (Company run canteens) : In this type of canteen all the cooks, waiters, maidservants

etc. are employed by the company itself. The company directly incurs all the canteen expenses.

This type of canteen is viable only in companies which have a large number of employees,

depending on them for food and refreshments.

2. Contractor-run Canteens : These canteens are run by contractors for a stipulated term of contract.

This type of canteen is mostly preferred by the companies, having an average/medium or small

strength/workforce. In this case, the company lets out the task of providing food and refreshments

to outside/private parties on contract basis.

The main purpose of a canteen is not only to provide food to the worker but also to look

after and maintain a regular nutritious diet in order to enhance his performance in increasing the

scale of production and improving the quality of work.

Method of Data Collection

The method of data collection for the present research study is that of the

compilation of data based on the responses given to the Questionnaire specially designed for the

purpose of the present study. It was intended to collect the data from 200 industrial canteens but

the responses received are from 122 industrial canteens. These 122 industrial canteens are from

four different categories. The area wise breakup is of 99 industrial canteens from the urban

industrial area in and in the vicinity of Bhiwandi city area. The remaining 23 industrial canteens

are rural. The 99 industrial canteens in the urban area have two broad categories, of which 85

industrial canteens are run by the contractors while the 14 are departmental canteens. In the 85

urban industrial canteens which are mainly contractor – run, there are two groups which are single

unit urban industrial canteens numbering 22 canteens and there are 63 multiple unit urban

industrial canteens. The questionnaires of 50 questions were circulated to those who were

responsible for the management of these canteens. It is observed from the information sheet of the

questionnaire that the respondent is generally the canteen manager or the proprietor who holds a

responsible position and who knows the most about the canteen concerned. The respondent is one

of the policy
Conclusion -
This shows that the present study covers 122 industrial canteens in number from

the area of Bhiwandi, Kalyan industrial belt as the urban base and the radius of about 50

kms as the rural region and the four significant areas of the disciplines of administration

and management and the time – scale is of five years from 1998 to 2002, the period of

transition of a millennium. Numerically, 122 industrial canteens, on the spatial axis, the

area of Bhiwandi city and Bhiwandi rural region, academically, the principles of

management applied to a commercial enterprise in the industrial units and temporally, a

period of five years of transition from the 20th to the 21st century is the span of coverage

of the present research study.

The researcher has selected the span of five years from 1998 to 2002 as the
period of the present study. During this period of five years the Government of India
introduced many revolutionary changes in the company Act and also accepted many
changes of economic sector with new economic reforms. The changes of economic
reforms like free licenses, privatization, liberalization, made an impact on the industrial
relations of the companies. After taking these factors into consideration, the period of
the study from 1998 – is of 2002, the impact of economic reforms on industrial
relations and practices of the public companies in and around Bhiwandi City. During this
period of five years from 1998 -2002 pressures continued to increase the economic
problems of industries, also the standard of living of the workers in the industrial sector.
During the period of ten years from 1991 -2000 the Government imposed many
restrictions on the recruitment in the Government sector and proposed the
disinvestment measures in the public limited sector. Such changes increased the
pressure of employment in the industrial sector in India. The period of study is five
years that marks the period of seven to twelve years after the economic reforms. The
workers in industries employed before 1991 were considered eligible for their demands
like wages, free housing etc. Trade Unions changed their approaches and strategies in
to get their demands fulfilled. The industries in private sector also attempted new
approaches and policies towards employment of labour to increase their financial
commitment in terms of wages and amenities to the workers. All these developments
are relevant to the study of impact of revision of wages and welfare schemes introduced
in the industries.
 QUESTIONNAIRE

Research on food satisfaction of Industrial canteen

This survey is for studies purpose only and information provided by you will be kept confidential.
Please feel free and tick inside the box according to your opinion.

Q. No.1.Rate the following according to your importance while consuming food:

1* 2* 3* 4* 5*
Presentation;
(Cleanliness, how it is being served)

Taste:

Availability:

Nutritious:

Price:

Quantity;

No. 2. How many courses of meal do you take in canteen in a day?

a. Breakfast. b. lunch c. dinner d. all

Q. No. 3. Rate the following according to your satisfaction. (Star out of 5)

1* 2* 3* 4* 5*

Cleanliness and Hygiene

Food Varieties Nutritious

Quantity

Price

Q. No. 4. Does the food provided at canteen served the purpose of your expectation?
Yes NO

Why or why not?

Reason:
Q. No. 6 .How often do you eat in canteen?

[ ] 1-3 days a week [ ] 3-5 days a week [ ] All days [ ] Not at all

Q. No. 7 Are you comfortable with the time slot of canteen?

[ ] Yes [ ] No Suggest the suitable time slot

___________________________________________________

Q. No. 8.Are you satisfied with menu provided in the canteen?

[ ] Yes [ ] No

Q. No. 9 Is the canteen maintained cleanly?

[ ] Yes [ ] No

Q. No. 10 Do you prefer Non-Veg to be included in normal menu?

[ ] Yes [ ] No

Q. No. 11 Are you satisfied with special meals provided on Wednesday?

[ ] Yes [ ] No

Q. No. 12 What is your opinion about canteen ambience?

[ ] Poor [ ] Fair [ ] Good [ ] Excellent