A STUDY ON

“OPERATION MANAGEMENT”
With reference to

HERITAGE FOOD PRODUCTS OF INDIA LTD,

VISAKHAPATNAM
A Project Report submitted to Jawaharlal Nehru Technology University Kakinada
In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By

B. KULA SEKHAR
PIN No: 22NRIE0047
Under the guidance of

K. NARESH KUMAR

DEPARTMENT OF MANAGEMENT STUDIES

BABA INSTITUTE OF TECHNOLOGY & SCIENCES

(Approved by AICTE, New Delhi, Affiliated to JNTUK, Kakinada and Accredited by ‘NAAC’)
P.M PALEM, VISAKHAPATNAM – 530 048.
2022 - 2024

1
 BABA INSTITUTE OF TECHNOLOGY & SCIENCES

(Approved by AICTE, New Delhi, Affiliated to JNTUK, Kakinada and Accredited by ‘NAAC’)

Mr. K.Sirisha, MBA., Tel: Office-891-2793322

Head of the Department FaxPh: 7799885357
Department of Management Studies
V Visakhapatnam-530 041.

Date:

CERTIFICATE

This is to certify that the Project report entitled “A Study on Operation Management” with
reference to “Heritage Food Products of India Ltd, Visakhapatnam” submitted in partial
fulfillment for the award of “MASTER OF BUSINESS ADMINISTRATION” by B.
KULASEKHAR, PIN No: 22NR1E0047under my guidance and supervision. This report has not
been submitted previously for the award of any Degree, Diploma, Associate ship, Fellowship or
similar title in this University or in any other University.

Mr. K. SIRISHA K. NARESHKUMAR

Head of the Department Project Guide

EXTERNAL EXAMINER

2
 DECLARATION

I hereby declare that the project report entitled “A study on Operation

Management” with reference to “Heritage Food Products of India Ltd,

Visakhapatnam” submitted by me to Jawaharlal Nehru Technology University

Kakinada in partial fulfillment for the award of the degree of Master of Business

Administration is an original work carried out by me.

I have completed this work under the guidance of K. NARESH KUMAR

Assistant Professor in the Department of Management Studies, Baba Institute of

Technology and Sciences, PM Palem, Visakhapatnam.

I also declare that this dissertation has not been previously formed the basis for the award

to the candidate of any Degree, Diploma Associate ship, Fellowship or similar title in this

university or in any other university.

Place: Visakhapatnam STUDENT NAME: B. Kulasekhar

Date: PIN No:22NRIE0047

3
 ACKNOWLEDGEMENT

I would take this opportunity to express my sincere thanks Smt. K. Sri Lakshmi
madam, Secretary and Correspondent, Baba Institute of Technology and Sciences, who gave me
opportunity in their college.

I expressed thanks toDr. C.V. GOPINATH, Principal, Baba Institute of Technology

and Sciences, for grant me permission for doing the project.

I would like to thank Mr. K. SIRISHA, Head of the Department, Department of

Management Studies, for gave me suggestions in completion of the project.

I especially thankful to K. NARESH KUMAR, Assistant Professor and project guide,

for gave suggestions and encouraging me in entire period of my course, completion of my
project.

My sincere thanks to HR manager, “Heritage Food Products of India Ltd,

Visakhapatnam” who have taken time and effort in helping me in getting information and
guiding me throughout the project.

I also thankful to all my family members and friends who have shared enthusiasm and
zeal and given me the support in completion of project work.

B. KULASEKHAR
PIN NO:22NRIE0047

4
 CONTENTS

CHAPTER – I Page No.

 Introduction

 Need for the study

 Objective of the study

 Methodology

 Limitations

CHAPTER-II

 Industry Profile

 Company Profile

CHAPTER – III

 Theoretical Framework of Training and Development

CHAPTER – IV

 Data Analysis & interpretation

CHAPTER –V

 Summary

 Findings

 Suggestions

Bibliography

Questionnaire

5
CHAPTER – I

 INTRODUCTION

 NEED FOR THE STUDY

 OBJECTIVE OF THE STUDY

 METHODOLOGY

 LIMITATIONS

6
 INTRODUCTION

Human Resource Management

Human resource management is a function in organizations designed to maximize employee

performance in service of their employer’s strategic objectives.HR is primarily concerned with

how people are managed within organizations, focusing on policies and systems. HR

departments and units in organizations are typically responsible for a number of activities,

including employee recruitment, training and development, performance appraisal, rewarding

(e.g., managing pay and benefit systems). HR is also concerned with industrial relations, the

balancing of organizational practices with regulations arising from collective bargaining and

governmental laws.

Operation Management is one of the important factors that have drawn attention of

managers in the organization as well as academicians. Various studies have been conducted to

find out the factors which determine operation management and the way it influences

productivity in the organization. Though there is no conclusive evidence that operation

management affects productivity directly because productivity depends on so many variables, it

is still a prime concern for managers.

NEED FOR THE STUDY

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 The study conducted to identify the factors that motivates the employees in Heritage

Foods India Limited.The employee satisfaction is the orientation of the industry towards his

work role, which he is presently playing. The organization will only thrive and survive when its

employees are satisfied. This study conducted so that the employees give their full, honest and

frank opinion by remaining anonymous about how they feel about their jobs.

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 SCOPE OF THE STUDY

The study considers only the perceptual elements of employees and does not focus on

ground realities. The scope of study cover: work conditions, compensation, extra benefits, and

conveyance treatment of superiors, colleagues, duty timings, grievance redressal mechanism and

promotion policy.

9
 OBJECTIVES OF THE STUDY

1. To study the attitude of the employe’s towards their work in Heritage Foods India

Limited.

2. To identify the factors that motivates the employees in Heritage Foods India Limited.

10
 METHODOLOGY OF THE STUDY

The methodology that is adopted for the study is such that it facilities the data

accumulation. The information is gathered through survey method. The survey method has been

adopted for collecting the data from employees.

DATA SOURCES:

Data means a collection of facts in real life statistical data is a collection of facts in numerical

figures.

1. Primary data

2. Secondary data

PRIMARY DATA:

It is the information collected by the investigator by means of observation face to face

questioning, telephone interview and mailing questionnaire is called primary data.

Primary data consists of original information gathered for a specific purpose.

For the purpose of present study, the primary data collected from respondents by contacting them

personally and through distribution of questionnaire.

SECONDARY DATA:

Secondary data consists of information that already exists somewhere, having been collected for

another purpose.

For the purpose of present study, the secondary data was collected from published data of the

company.

11
 LIMITATIONS OF THE STUDY

The study is limited to the policies and practices being followed in Heritage Foods Limited.

1. The study was conducted on the basis of random samples.

2. Since the procedure and polices of the company will not allow to disclose some

confidential information, the project has to be completed with the available data given to

us.

12
CHAPTER-II

 Industry Profile

 Company Profile

13
 INDUSTRY PROFILE
India is the second highly populated country and is about to occupy the first position in

producing milk. In India the major source of income is Agriculture. Dairy is one of the best

instruments for bringing up the socio-economic development of the country. Developing

countries like India rural people depend on agricultural income like farming, dairying etc. The

Indian dairy industry is expected to retain for its indigenous character for a long time because of

consumer tastes for articles of food so far delicacies are concerned.

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

contributing factor to this achievement is the Anand pattern of dairy cooperatives. No less

creditable has been a concerned effort of the national dairy development and the Indian dairy

development. These two institutions have been responsible for the dairy development in India

since 1970. Dairy is considered as a whole when it contains elements like production,

procurement and marketing “Kaira District Co-operative Milk Producers Union Limited”

adopted this integrated approach. This integrated approach in dairying is proved to be successful

with AMUL and later this integrated approach is come to be known as “Anand Milk Union

Limited”.

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

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

our life.

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

where there is a bewildering array of milk products, there is a milk product for almost every one.

Once consuming cow’s milk, infants under one year should stock to whole milk for the growth

and energy needs.

14
S.no Milk beverage Fat Total calories

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

1 Whole milk 9 157

2 2% 6 120

3 1% 3 108

4 Skim Trace 91

5 B’milk 2 105

6 Chocolate partly 5 189

skimmed ( 2 % )

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

MAJOR TYPES OF MILK AVAILABLE INTERNATIONALLY:

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

(kcalories)

1 Whole milk 487 6.0

2 Toned milk 387 3.0

3 Low fat milk 270 1.0

4 Skimmed milk 194 0.1

5 Homogenized milk All fat is spread

evenly

15
INDIAN SCENARIO OF DAIRY INDUSTRY

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

especially cattle have been an integral part of rural India for thousands of years. During the year

1920 military farms were established to supply adequate raw milk to the stations. These were

walls maintained and improved.

In 1946 the first farmer’s integrated dairy co-operative was established in Kaira district as Anand

which later came to be known as “Amul”. Amul and Greater milk scheme set together a faster

pace of dairy developed with emphasis on developed techniques of processing and marketing

under Indian conditions.

INSTITUTIONAL SUPPORT TO CO-OPERATIVE DAIRY:

Indian Dairy Corporation:

The Indian dairy corporation (IDC) was set up under companies act on 13th February 1970. It is

a Government of India undertaking. The immediate need to setup IDC was to handle the

popularly known “operation flood”.

India has emerged as the world’s top dairy nation with milk production crossing 75

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

The Indian dairy industry production is estimated to have risen from a low of 20 million tons to

75 million tons

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

milk is only 6.5% of the world programe India is the second largest populated country and the

consumption of milk is also high. In order to meet the requirements of the people the operation
16
flood programmed was developed. In every 5 year plan emphasis is even given to agriculture

also which includes farming, dairying etc. In India the state in which the production milk is high

in Gujarat.

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

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

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

farming in India.

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 COMPANY PROFILE

History of Heritage Group:

The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of the fastest

growing Private Sector Enterprises in India, with four-business division’s viz., Dairy, Retail,

Agri, and Bakery under its flagship Company Heritage Foods (India) Limited (HFIL). The

annual turnover of Heritage Foods crossed Rs.2380 crores in 2015-16.

About the founder:

Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic, Progressive and Visionary

Leaders of the 21st Century. With an objective of bringing prosperity in to the rural families

through co-operative efforts, he along with his relatives, friends and associates promoted

Heritage Foods in the year 1992 taking opportunity from the Industrial Policy, 1991 of the

Government of India and he has been successful in his endeavor.

At present, Heritage has market presence in all the states of South India. More than three

thousand villages and five lakh farmers are being benefited in these states. On the other side,

Heritage is serving more than 6 lakh customers needs, employing more than 700 employees and

generating indirectly employment opportunity to more than 5000 people. Sri Naidu held various

coveted and honorable positions including Chief Minister of Andhra Pradesh, Minister for

Finance & Revenue, Minister for Archives & Cinematography, Member of the A.P. Legislative

Assembly, Director of A.P. Small Industries Development Corporation, and Chairman of

Karshaka Parishad.

Sri Naidu has won numerous awards including " Member of the World Economic Forum's

Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time Asia ), " Business Person of the

Year " (Economic Times), and " IT Indian of the Millennium " ( India Today).Sri Naidu was

18
chosen as one of 50 leaders at the forefront of change in the year 2000 by the Business Week

magazine for being an unflinching proponent of technology and for his drive to transform the

State of Andhra Pradesh .

Qualities of management principles:

1. Customer focus to understand and meet the changing needs and expectations of

customers.

2. People involvement to promote team work and tap the potential of people.

3. Leadership to set constancy of purpose and promote quality culture trough out the

organization.

4. Process approach to assess the efficiency and effectiveness of each process.

5. Systems approach to understand the sequence and interaction of process.

6. Factual approach to decision making to ensure its accuracy.

7. Continual improvement processes for improved business results.

8. Development of suppliers to get right product and services in right time at right place.

Product/Market wise performance:

The total turnover is Rs 2380 Crores during the financial year 2015-16 against the turnover of

292.02 Crores in 2014-15. Today Heritage distributes quality milk & milk products in the states

of A.P, Karnataka, and Kerala & Tamil nadu.

During the year 2015-16 liquid milk sales was Rs.2380.58 crores against Rs.24525.23 lakhs in

the previous year. The sales of milk products including bulk sales of cream, ghee and butter were

recorded Rs 689 crores against Rs 553 crores.

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Milk sales:

23% growth was recorded in AP 2.38 lakhs liters per day (LLPD) in 2015-16 against 1.93 LLPD

in 2014-15. 13% growth was recorded in Tamilnadu-1.53 LLPD in 2015-16 against 1.35 LLPD

in 2014-15. Overall growth of 6% was recorded- 5.49 LLPD in 2015-16 against 5.16 LLPD.

Flavored milk sales recorded a growth rate of 77% over 2015-16. Butter milk sales have gone up

by 45% over 2015-16.

Outlook:

Considering the growth potential in the liquid milk market, the company has drawn plans to

increase its market share in the existing markets and to enter into new markets there by doubling

revenues in dairy business in the next 3 years. To achieve this object, company is undertaking

major expansion in dairy business by inverting over Rs20 crores during 2015-16 and over Rs12

crores during 2014-15 to strengthen the milk procurement.

CODE OF CONDUCT AND ETHICS FOR DIRECTORS & SENIOR MANAGEMENT

PREFACE This Code of Conduct and Ethics (herein after referred to as the "Code") has been

adopted by the Board of Directors of Heritage Foods (India) Limited (herein after referred to as

"the Company") , to be applicable to all Directors and all members of senior management i.e.,

personnel who are a part of the core management team and including all functional heads of the

company (herein after referred to as the 'Members') with effect from December 23, 2012.

This Code helps the Members maintain good standards of business conduct, foster ethical and

moral conduct and promote a culture of honesty and accountability, so as to set an example to

others in the company. The Code is not an all-inclusive comprehensive policy and cannot

anticipate every situation that may arise in the course of the company's business. The Members

20
are expected to bear in mind the essence and substance of the Code in all their dealings /

transactions with the Company.

STRICT COMPLIANCE All Members shall act within the bounds of the authority conferred

upon them and undertake the duty to make and enact informed, judicious and harmonious

decisions and policies in the best interests of the Company and its shareholders / stakeholders.

With a view to maintain the high standards the Company requires, the following rules/ code of

conduct to be observed in all activities. For the purpose of the code, the Company appoints the

Company Secretary as compliance officer, who will be available to Members to answer

questions and help them in complying with the code. CONFLICT OF INTEREST The term

"Conflict of interest" pertains to situations in which financial or personal considerations may

compromise, or have the appearance of compromising judgment of professional activities. A

conflict of interests exists where the interests or benefits of one person or entity conflicts with the

interests or benefits of the other person/entity/company.

All Members should not engage in any business, relationship or activity, which may be in

conflict with the interest of the Company. Conflict may arise in many situations. It is not possible

to cover every possible conflict situation and at times, it will not be easy to distinguish between

the proper and improper activities. Set forth below, are some of the common circumstances that

may lead to conflict of interest, actual or potential.

i. Members should not engage in any activity / employment that interfere with your

performance or responsibility to the Company or otherwise in conflict with or prejudicial to

the interests of the Company.

ii. As a general policy, Members should avoid conducting business with a relative or with a

21
 firm / Company in which a relative / related party is associated in a significant role / position.

iii. Whenever/ wherever the related party transaction is unavoidable Members will fully disclose

their interest in the transaction to the Board or to the CEO of the Company and due records

for such transactions will be maintained as per the statutory requirements.

HONESTY AND INTEGRITY All Members shall conduct their activities, on behalf of the

Company and on their personal behalf, with honesty, integrity and fairness. They will act in good

faith, with responsibility, due care, competence and diligence, allowing independent judgment to

their subordinates. Members shall act in the best interests of the Company and fulfil their

fiduciary obligations. POLICY OF BUSINESS RELATIONSHIP

The Company will conduct business legally and ethically. The quality of company's products and

the efficiency of its services at the most competitive price is the greatest tool in conducting the

business of the company. Profits do not justify unfair/ unethical practices. All Members should

uphold the highest standards of integrity in all the business relationships.

INTELLECTUAL PROPERTY POLICY

All Members have utmost obligation to identify and protect the intellectual properties, trade

secrets and confidential information owned by the Company and its clients or associates as it is

critical to the success of the company. "Intellectual Property Rights" (IPR) means generally

patented or potentially patentable inventions, trademarks, copyrightable subject matters and trade

secrets.

CORPORTE OPPORTUNITIES Members owe a duty to the Company to advance its legitimate

interests when the opportunity to do so arises and are expressly prohibited from improper use of

information / property or taking improper advantage of their position. PREVENTION OF

INSIDER TRADING Insider trading is prohibited both by the Law as well as by the company

22
policy. Insider trading generally involves the act of subscribing to or buying or selling of the

Company's securities, when in possession of any Unpublished Price Sensitive Information about

the company.

"Price sensitive information” is such information, which relates directly or indirectly to the

company and which if published is likely to materially affect the price of securities of the

Company. It is important to note that both positive and negative information could be price

sensitive.

Members shall not derive benefit or assist others to derive benefit or assist them to derive benefit

on their behalf by giving investment advice from the available access to and possession of

information about the Company, which is not in public domain and thus constituting insider

information. Members shall comply with the prevention of insider trading guidelines as issued by

Securities Exchange Board of India (SEBI).

The Company is committed to comply with securities laws in all the markets in which the

Company's securities are listed. The company prohibits fraudulent and unfair trade practices with

regard to the securities of the Company by all Members.

CONFIDENTIALITY OF INFORMATION POLICYThe Company's confidential information is

a valuable asset. Members shall understand that protection of all confidential information is

essential. Members should undertake and be committed to protecting business and personal

information of confidential nature obtained from clients, associates and employees.

Any information concerning the Company's business, its customers, suppliers etc which is not in

the public domain and to which the Members have access or possesses such information, shall be

considered confidential and held in confidence, unless authorized to disclose or such disclosure

23
is required as a matter of law. Members shall not provide any information either formally or

informally, to the press or any other publicity media, unless specially authorized to do so.

COMPLIANCE WITH LAWS, RULES AND REGULATIONS

Members should comply with all applicable laws, rules, and regulations, both in letter and spirit.

In order to assist the Company in promoting the lawful and ethical behavior, Members have to

report any possible violation of law, rules, regulations or the code of conduct to the Company

Secretary.

PROTECTION AND PROPER USE OF COMPANY’S ASSETS

All Members have the responsibility to protect the assets of the company, ensure optimal

utilization of assets and to report and record all transactions. Members shall protect the

Company's assets from loss, damages, misuse or theft and assets may only be used for business

purposes and other purposes specifically approved by management and must never be used for

any personal or illegal purposes.

COMPETITION POLICY

The Company shall compete only in an ethical and legitimate manner. It prohibits all actions that

are anti- competitive or otherwise contrary to laws that govern competitive practices in the

market place. Members shall uphold the same.

SELECTING SUPPLIERS

The Company's suppliers make significant contribution to its success. The Company's policy is

to purchase / avail supplies based on need, quality, service, price and other commercial terms and

conditions. Suppliers should be selected based on merit, price, quality and performances. The

Company's policy is to select significant suppliers through a competitive bid process wherever
24
possible. Under no circumstance should the Company or its employee, agent or contractor

attempt to coerce suppliers in any way.

ENVIRONMENT, HEALTH AND SAFETY POLICY

Members shall take environmental consciousness a step further as a company and contribute to

preserving nature as well as safety measures in own respective work areas. All Members are

responsible for conducting safe and environmentally sound operations; this is in the interest of

our own well-being and the quality of life of others. Members shall abide by this policy.

ELIMINATION OF CHILD LABOUR

It is the Company's policy not to support child labor. The Company is committed to implement

the provisions of the Child Labour (Prohibition and Regulation) Act, 1986. To, promote this the

Company encourages its suppliers also to work towards a no child labour policy in their

industries. Members shall strictly observe that no child labour is employed in the company.

ABOLITION OF FORCED LABOUR

The Company strictly prohibits forced or compulsory labour. The Company is committed to

ensuring that employees enter into employment and stay on in the Company of their own free

will. Members shall uphold this policy.

GIFTS & DONATIONS

No Member shall receive or offer, directly or indirectly, any gifts, donations, remuneration,

hospitality, illegal payments and comparable benefits which are intended or perceived to be

intended to obtain business (or uncompetitive) favors or decision for the conduct of the business.

Normal gifts of commemorative nature for special events may be accepted and reported to the

Board.

25
OTHER DIRECTORSHIPS

The Company feels that serving on the Board of directors of other companies may raise

substantial concerns about potential conflict of interest. Therefore all Directors shall report /

disclose such relationships to the Board on an annual basis. It is felt that service on the Board of

a direct competitor is not in the interest of the Company. Hence all the Directors are barred in

accepting such position without the concurrence of the Board.

ACCOUNTABILITY

The Board of Directors (BOD) shall oversee the Company's adherence to ethical and legal

standards. All employees and members of the BOD shall undertake to stop or prevent actions

that could harm customers or reputation of the Company and to report such actions as soon as

they occur to take corrective steps and see that such actions are not repeated.

COMPLIANCE WITH CODE OF CONDUCT

Each Director and senior management personnel shall adhere to this code of conduct and affirm

compliance with the code on an annual basis as per the Annexure to the Code. Violation of this

Code will lead to appropriate disciplinary action.

WAIVER OF THE CODE

Any waiver of the applicability of the Code or waiver of application of any provision of the Code

to any Member shall be approved by the Board of Directors and disclosed as required by Law or

SEBI / Stock Exchange regulations.

BRANCHES OF HFIL:

26
HFIL has 3 wings. They are

1. Dairy

2. Retail

3. Agribusiness

1. Dairy:

It is the major wing among all. The dairy products manufactured by HFIL are

Milk, curd, butter, ghee, flavored milk, paneer, doodhpeda, ice cream.

2. Retail:

In the retail sector HFIL has outlets namely “Fresh@”. In those stores the products sold are

vegetables, milk& milk products, grocery, pulses, fruits etc.

In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4 respectively are there.

Totally there are 26 retail shops are there.

Freshis a unique chain of retail stores, designed to meet the needs of the modern Indian

consumer. The store rediscovers the taste of nature every day making grocery shopping a never

before experience.

The unique& distinctive feature of Fresh@ is that it offers the widest range of fresh fruits and

vegetables which are directly hand-picked from the farms. Freshness lies in their merchandise

and the customers are always welcomed with fresh fruits and vegetables no matter what time

they walk in.

3. Agri Business:

27
In this business HFIL employees will go to farmers and have a deal with them. Those farmers

will sell their goods like vegetables, pulses to HFIL only. And HFIL will transport the goods to

retail outlets.

The agricultural professors will examine which area is suitable to import vegetables from and

also examine the vegetables, pulses and fruits in the lab. And finally they report to the Head-

Agribusiness. Representatives as per the instructions given by the agri professors will approach

the farmers directly and make a deal with them. It is the process of registering the farmers.

Heritage Fin lease Limited was incorporated under the companies Act 1956 on 23rd of February

1996 and commenced business from 2nd day of April 1996. The Registered office is located at

6-3-541/c Punjagutta, Hyderabad-500082.

The following are the Directors of the company:

Sri D.Seetharamaiah

Smt. N. Bhuvaneswari

Smt. N. Brahmani

Sri M. SivaramaVaraprasad

At Present the company is allowing Dairy Loans to Small Farmers under Tie up arrangement

with Heritage Foods (India) Limited. The Company has been earning profits from inception and

functioning in conformity with the rules and directions of Reserve Bank of India.

At present Smt.N.Brahmani is the Executive Director &Mr.Sambasiva Rao is the President of

HFIL.

28
 CHAPTER – III

Theoretical Framework of Operation

Management

29
 THEORETICAL FRAMEWORK OF OPERATION MANAGEMENT

A major part of man’s life is spent in work which is a social reality and social expectation

to which man seem to confirm. Even then only economic motive has never satisfied men. It is

always of greater interest to know why men work and at which level and how he/she satisfied

with the job. Hoppock noted that job satisfaction depends upon the extent to which the job, we

hold meets the needs that we feel it should meet. The degree of satisfaction is determined by the

ratio between what we have and what we want. By law of nature as we have more, we want

more, hence the level of satisfaction remains less. Operation management is dynamic, as it can

go as quickly as it come. It is a positive emotional state that occurs when a person’s job seems to

fulfill important values, provided this values are compatible with one’s needs. Operation

Management is a pleasurable or positive emotional state resulting from the appraisal of one’s job

experience. 55 In short job satisfaction is a synchronization of what an organization.

The performance of an organization heavily depends upon the people who work inside it.

If the organization has right people on right jobs. The work proceeds smoothly and efficiently.

Un fortunately, this is not the position in most of the industrial undertakings and, therefore, we

see today industrial indiscipline. People working in industry are not only apathetic but in many

instances they are hostile to the very objectives of their organization.

30
 Human Resource Management (HRM) is the term used to describe formal systems

devised for the management of people within an organization. The responsibilities of a human

resource manager fall into three major areas: staffing, employee compensation and benefits,

and defining/designing work.

CONCEPT OF OPERATION MANAGEMENT Operation Management is the end feeling of

a person after performing a task. To the extent that a person’s job fulfills his dominant needs and

in consistent with his expectations and values, the job will be satisfying. The feeling would be

positive or negative depending upon whether need is satisfied or not. Job satisfaction is different

from motivation and morale. Motivation refers to the willingness to work. Satisfaction on the

other hand implies a positive emotional state. Morale implies a general attitude towards work

and work environment. It is a group phenomenon whereas operation management is an

individual feeling. Operation management may be considered a dimension of morale and morale

could also be a source of satisfaction. Attitudes are predispositions that make the individual

behave in a particular way.

DEFINITIONS OF OPERATION MANAGEMENT: Despite the wide usage in scientific

research, as well as in everyday life, there is still no general agreement regarding what operation

management is? In fact there is no final definition on what job represents. Therefore, before a

definition On .Operation management can be given, the nature and importance of work as a

universal human activity must be considered. Different authors have different approaches

towards defining operation management. Some of the most commonly cited definitions on

operation management are analyzed in the text that follows.

31
According to Hoppock (1935) defined operation management as any combination of

psychological, physiological and environmental circumstances that cause a person truthfully to

say I am satisfied with my job. According to this approach although job satisfaction is under the

influence of many external factors, it remains something internal that has to do with the way how

the employee feels. That is operation management presents a set of factors that cause a feeling of

satisfaction.

Vroom (1964) in his definition operation management on focuses on the role of the employee in

the workplace. This he defines job satisfaction as effective orientations on the part of individuals

toward work roles which they are presently occupying.2 According to Davis and Nestrom (1985)

0 represents a combination of positive or negative feelings that workers have towards their work.

Mean while, when a worker employed in a business organization, brings with it the needs,

desires and experiences which determinate expectations that he has dismissed. Job satisfaction

represents the extent to which expectations are and match the real awards. Job satisfaction is

closely linked to that individual’s behavior in the work place.

DETERMINANTS OF OPERATION MANAGEMENT:

Operation management is derived from and is caused by many inter-related factors. Although

these factors can never be completely isolated from one another for analysis, they can by the use

of statistical techniques, be separated enough to give an indication of their relative importance to

Operation management.

Personal Factors:

Gender: Most investigation on the subject have found that women are more satisfied with their

jobs than men are. This is so despite the fact that women are generally discriminated against in

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job competition and pay, quite possibly the reason is that women’s ambitions and financial needs

are less.

Number of Dependents: The more dependence one has, the less satisfaction he has with his

job. Perhaps the stress of greater financial need brings about greater dissatisfaction with one’s

job. The difference in satisfaction among employees with different number of dependents is

however small.

Age: Studies have found different results in different groups on the relationship of age to

Operation management. There was higher intrinsic job satisfaction among older employees, but

lower financial and job status satisfaction among this group. However, different studies reveal

different impact of age related with Operation management.

Time on job: Several investigations have indicated that job satisfaction is relatively high at the

start drops slowly to the fifth or eighth year, then rises again with more time on job.

Education: There is a great deal of conflicting evidence on the relationship between education

and Operation management, different studies have indicated different amount of impact of

education on Operation management.

IMPORTANCE OF EMPLOYEES SATISFACTION Purpose / benefits of employes

satisfaction include as follows:

Importance of employes satisfaction for organization

• Enhance employee retention

• Increase productivity.

• Increase customer satisfaction

• Reduce turnover, recruiting, and training costs.

33
• Enhance customer satisfaction and loyalty.

• More energetic employees.

• Improve teamwork.

• Higher quality products and/or services due to more competent, energized employees.

Theories of operation management:

I.Affect Theory: Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous

operation management model. The main premise of this theory is that satisfaction is determined

by a discrepancy between what one wants in a job and what one has in a job. Further, the theory

states that how much one values a given facet of work (eg. the degree of autonomy in a position)

moderates how satisfied/dissatisfied one becomes when expectations are/aren’t met. When a

person values a particular facet of a job, his satisfaction is more greatly impacted both positively

(when expectations are met) and negatively (when expectations are not met), compared to one

who doesn’t value that facet. To illustrate, if Employee A values autonomy in the workplace and

Employee B is indifferent about autonomy, then Employee A would be more satisfied in a

position that offers a high degree of autonomy and less satisfied in a position with little or no

autonomy compared to Employee B. This theory also states that too much of a particular facet

will produce stronger feelings of dissatisfaction the more a worker values that facet.

II.Dispositional Theory: Another well-known job satisfaction theory is the Dispositional

Theory Template: Jackson April 2007. It is a very general theory that suggests that people have

innate dispositions that cause them to have tendencies toward a certain level of satisfaction,

regardless of one’s job. This approach became a notable explanation of job satisfaction in light of

34
evidence that job satisfaction tends to be stable over time and across careers and jobs. Research

also indicates that identical twins have similar levels of job satisfaction.

A significant model that narrowed the scope of the Dispositional Theory was the Core Self-

evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that there are four Core

Self-evaluations that determine one’s disposition towards job satisfaction: self-esteem, general

self-efficacy, locus of control, and neuroticism. This model states that higher levels of self-

esteem (the value one places on his/her self) and general self-efficacy (the belief in one’s own

competence) lead to higher work satisfaction. Having an internal locus of control (believing one

has control over her\his own life, as opposed to outside forces having control) leads to higher job

satisfaction. Finally, lower levels of neuroticism lead to higher job satisfaction.

III. Two-Factor Theory (Motivator-Hygiene Theory): Frederick Herzberg’s two factor theory

(also known as Motivator Hygiene Theory) attempts to explain satisfaction and motivation in the

workplace this theory states that satisfaction and dissatisfaction are driven by different factors –

motivation and hygiene factors, respectively. An employee’s motivation to work is continually

related to job satisfaction of a subordinate. Motivation can be seen as an inner force that drives

individuals to attain personal and organizational goals (Hoskinson, Porter, & Wrench, p. 133).

Motivating factors are those aspects of the job that make people want to perform, and provide

people with satisfaction, for example achievement in work, recognition, promotion opportunities.

These motivating factors are considered to be intrinsic to the job, or the work carried out.

Hygiene factors include aspects of the working environment such as pay, company policies,

supervisory practices, and other working conditions.

While Hertzberg's model has stimulated much research, researchers have been unable to reliably

empirically prove the model, with Hackman & Oldham suggesting that Hertzberg's original

35
formulation of the model may have been a methodological artifact. Furthermore, the theory does

not consider individual differences, conversely predicting all employees will react in an identical

manner to changes in motivating/hygiene factors. Finally, the model has been criticized in that it

does not specify how motivating/hygiene factors are to be measured.

IV. Opponent process theory Events that seem negative in manner will give rise to the feelings

of stress or anxiety. Events that are positive give rise to the feeling of content or relaxation. The

other process is the opponent process, which induces feelings that contradict the feelings in the

primary processes. Events that are negative give rise to feelings of relaxation while events that

are positive give rise to feelings of anxiety. A variety of explanations have been suggested to

explain the uniformity of mood or satisfaction. This theory shows that if you try to enhance the

mood of individual it will more likely fail in doing so. The opponent process theory was

formulated to explain these patterns of observations.

V.Equity theory: Under this theory, it is believed that a person’s job satisfaction depends upon

his perceived equity as determined by his input-output balance in comparison with the input-

output balance of others. Every individual compares his rewards with those of a ‘reference

group’. If he feels his rewards are equitable in comparison with others doing similar work, he

feels satisfied. Job satisfaction is thus a function of the degree to which job characteristics meet

the desires of the reference group.

Importance of employes satisfaction for employe:

• Employ will believe that the organization will be satisfying in the long run

• They will care about the quality of their work.

36
• They will create and deliver superior value to the customer.

• They are more committed to the organization.

• Their works are more productive.

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 CHAPTER – IV

Data Analysis &Interpretation

DATA ANALYSIS AND INTERPRETATION

1. Does your job provide scope to achieve your goals?

S.N
Options No. of Respondents % of Respondents
O
38
1 Strongly Agree 20 26.67

2 Agree 24 32

3 Neutral 10 13.33

4 Disagree 12 16

5 Strongly disagree 9 12

Total 75 100

Respondents
Strongly Agree Agree Neutral
Disagree Strongly disagree

12%
27%
16%

13%
32%

39
Interpretation:

The above table shows that 26% of respondents strongly agree that the job

Provides scope to achieve goals, 32% agree, 13% neutral, and 16% disagree and

12% strongly disagree. Majority of the employees agree that the job provides

Scope for achieving their goals.

2.Do you have enough freedom to take decision at your work place?

S.n No. of

o Options Respondents % of Respondents

1 Strongly Agree 5 6.67

2 Agree 10 13.33

3 Neutral 15 20

40
4 Disagree 20 26.67

5 Strongly Disagree 25 33.33

Total 75 100

Respondents
Strongly Agree Agree Neutral
Disagree Strongly Disagree
7%
13%
33%

20%

27%

41
Interpretation:

From the above table, 13 % of employees agreed that they have the freedom to take decision

with the decision taking and 33% of employee doesn’t have freedom to take decision.

3. Can you see yourself in a better position in near future?

S.no Options No. of respondents % of respondents

1 Strongly agree 21 26.67

2 Agree 32 42.33

3 Neutral 10 13.33

4 Disagree 7 9.33
42
 5 Strongly disagree 5 6.67

Total 75 100

respondents
Strongly agree Agree Neutral
Disagree Strongly disagree

9% 28%
7%

13%

43%

Interpretation:

43
The above table shows that, 42 % of employees agree that they can see themselves in a better

position in near future and 26% strongly agree that they can place themselves in a better position

very few disagrees for the above.

4.Do you often feel that you are working under in human working conditions?

S.NO No. of

Options Respondents % of Respondents

1 Strongly Agree 25 33.33

2 Agree 30 40

3 Neutral 11 14.67

4 Disagree 4 5.33

5 Strongly disagree 5 6.67

Total 75 100

44
 Respondents
Strongly Agree Agree Neutral
Disagree Strongly disagree
7%
5%
33%
15%

40%

Interpretation:-

The above table illustrates that, 40% of employees agree with the working conditions are human

and 33% of employees strongly agree, 14% neutral, 5% disagree and 6% strongly disagree.

45
5. Do you feel that you are placed in a right place?

S.no No. of

Options Respondents % of Respondents

1 Strongly Agree 18 24

2 Agree 27 36

3 Neutral 13 17.33

4 Disagree 9 12

5 Strongly disagree 8 10.67

Total 75 100

46
 Respondents
Strongly Agree Agree Neutral
Disagree Strongly

11% 24%
12%

17%

36%

Interpretation:

From the above table shows that, 24% of the employees strongly agree that they are placed in

right position, 36% of the employees agree, while 23% of the employees disagree for the above.

47
 6. Are you able to completer your work at given time?

No. of
S.no Particulars Percentage (%)
Respondents
1 Strongly Agree 27 24

2 Agree 18 36

3 Un decided 13 17.33

4 Disagree 17 12

Total 75 100

No. of Respondents

17
Strongly Agree
27 Agree
Un decided
Disagree

13

18

Interpretation:

From the above table shows that, 24% of the employees strongly agree that they are placed in

right position, 36% of the employees agree, while 23% of the employees disagree for the above.

48
 7. Are you able to maintain social relationship with your peer?

No. of
S.no Particulars Percentage (%)
Respondents
1 Strongly Agree 18 24

2 Agree 27 36

3 Un decided 13 17.33

4 Disagree 17 12

Total 75 100

No. of Respondents

17 18
Strongly Agree
Agree
Un decided
Disagree

13

27

Interpretation:

From the above table shows that, 24% of the employees strongly agree that they are placed in

right position, 36% of the employees agree, while 23% of the employees disagree for the above.

49
 8. Are you able to improve performance in your organization?

No. of
S.no Particulars Percentage (%)
Respondents
1 Strongly Agree 18 24

2 Agree 27 36

3 Un decided 13 17.33

4 Disagree 17 12

Total 75 100

No. of Respondents

17 18
Strongly Agree
Agree
Un decided
Disagree

13

27

Interpretation:

From the above table shows that, 24% of the employees strongly agree that they are placed in

right position, 36% of the employees agree, while 23% of the employees disagree for the above.

50
 9. Do you follow rules in your organization?

No. of
S.no Particulars Percentage (%)
Respondents
1 Strongly Agree 15 24

2 Agree 30 36

3 Un decided 13 17.33

4 Disagree 17 12

Total 75 100

No. of Respondents

17 15

Strongly Agree
Agree
Un decided
Disagree

13

30

Interpretation:

From the above table shows that, 24% of the employees strongly agree that they are placed in

right position, 36% of the employees agree, while 23% of the employees disagree for the above.

51
 10. How do you feel about your relationship with your supervisor?

No. of
S.no Particulars Percentage (%)
Respondents
1 Good 15 24

2 Satisfaction 30 36

3 Poor 10 17.33

4 No Opinion 20 12

Total 75 100

No. of Respondents

15
20
Good
Satisfaction
Poor
No Opinion

10

30

Interpretation:

From the above table shows that, 24% of the employees strongly agree that they are placed in

right position, 36% of the employees agree, while 23% of the employees disagree for the above.

52
 CHAPTER –V

 Summary
 Findings
 Suggestions

Bibliography

Questionnaire

53
 SUMMARY
India has emerged as the world’s top dairy nation with milk production crossing 75 million tons

liters per year. It is placed second in the milk producer in the world. The Indian dairy industry

production is estimated to have risen from a low of 20 million tons to 75 million tons liters.

Heritage Foods Products of India Limited has market presence in all the states of South India.

More than three thousand villages and five lakh farmers are being benefited in these states. On

the other side, Heritage is serving more than 6 lakh customers needs, employing more than 700

employees and generating indirectly employment opportunity to more than 5000 people.

Job satisfaction in regards to one’s feeling or state of mind regarding nature of their work.

Job can be influenced by variety of factors like quality of one’s relationship with their superior,

quality of physical environment in which they work, degree of fulfillment in their work, etc.,

54
 FINDINGS
The following are the findings from the study:

1. Majority of the employees agree that the job gives satisfaction in Heritage Food Products

India Limited.

2. Heritage Food Products India Limited provides hygienic working conditions to their

employees.

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 SUGGESTIONS

1. The working hours should be reduced to 8 hours per day in Heritage Foods Products

India Limited.

2. The management should be provided freedom to take primary decisions in middle level

management.

BIBLIOGRAPHY

1. Essentials of Management – TMH, 2011 - Koontz &Weihrich

2. Human Resource Management, PHI, 2011 - Biswajit Patnaik

3. Personnel Management - V S P Rao

www.heritagefoodsindialimited.com

www.heritagefoods.in

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 QUESTIONNAIRE

Name:
Age:
Department:
Designation:
Please tick the appropriate
1. Does your job provide scope to achieve your goals? ( )
A) Strongly Agree B) Agree
C) Disagree D) Strongly Disagree
2. Do you have enough freedom to take decision at your work place? ( )
A) Strongly Agree B) Agree
C) Un decided D) Disagree
E) Strongly Disagree
3. Can you see yourself in a better position in near future? ( )
A) Strongly Agree B) Agree
C) Un decided D) Disagree
E) D) Strongly Disagree
4. Do you often feel that you are working under in human working conditions? ( )
A) Strongly Agree B) Agree
C) Un decided D) Disagree
E) D) Strongly Disagree
5. Do you feel that you are placed in a right place? ( )
A) Strongly Agree B) Agree
C) Un decided D) Disagree
E) D) Strongly Disagree

6. Are you able to maintain social relationship with your peer? ( )

A) Strongly Agree B) Agree
C) Un decided D) Disagree

57
7. Are you able to maintain social relationship with your peer? ( )

A) Strongly Agree B) Agree

C) Un decided D) Disagree

8. Are you able to improve performance in your organization? ( )

A) Strongly Agree B) Agree
C) Un decided D) Disagree

9. Do you follow rules in your organization?

A) Strongly Agree B) Agree

C) Un decided D) Disagree

10. How do you feel about your relationship with your superior? ( )
A) Good B) Satisfaction
C) Poor D) No Opinion

58