CHAPTER 1 INTRODUCTION

1.1 BACKGROUND OF THE STUDY:

1.1.1 General Introduction: I have done my organization study program in Garuda Power Private Limited as a part of the MBA curriculum with the objective of gaining knowledge about the working of the company and systems that are followed in the practical world. It gives the details about the various departments of Garuda Power, Kolkata. 1.1.2 Need for the study: As a part of the MBA curriculum, the student executive is required to undertake an organization study program before the commencement of the 2nd year of the course. The functions of the organization are dealt with, only theoretically in the 1st year of the course. This internship provides a practical exposure and helps in adapting to the practical work situation. 1.1.3 Objectives of the study: To analyze how the various functional departments work. Have a balance between the theoretical and practical world of the organization. Perform SWOT analysis and understand the core competencies of the organization. 1.1.4 Scope of the study: This project is prepared based on the information and guidance provided by the organization and will give detailed information about each of their departments and their position in the market.
To know how the organizations are working actually To get the real professional world feel As because we are studying MBA it will be very useful to us in

future when we will work in an organization.

1.2 INDUSTRY PROFILE: The diesel generator set market in India is a well organized and highly competitive market. The diesel generator set market in India can be broadly classified as small diesel generators (15-75 kVA), medium diesel generators (75.1 375 kVA) and large diesel generators (375.1 2000 kVA).The market witnessed steady growth rates in the last decade on account of chronic power shortages and rapid growth across several segments such as industries, infrastructure, telecommunication and information technology (IT) and IT enabled services. The total market is now estimated to grow steadily at a CAGR of about 10.1 percent in revenue terms between 2009-2015. 1.2.1ResearchOverview This Frost & Sullivan research service titled Indian Diesel Generator Set Market provides a comprehensive overview of the current market environment for diesel generator sets in India as well as highlights and explains the impact of market developments on future growth. The study offers insights on industry challenges, market drivers, and market restraints and determines their impact on the future market demand for diesel generator sets. In this research, Frost & Sullivan's expert analysts thoroughly examine the following market segments: 15 75 kVA, 75.1 375 kVA, 375.1 750 kVA, and 750.1 2,000 kVA. 1.2.2MarketOverview Opportunities unfold as the Indian Diesel Generator Market Bounces back to a high growth trajectory. The Indian diesel generator set market is a well organized and highly competitive space. The market can be broadly divided into three segments namely the small diesel generators, medium diesel generators, and large diesel generators. Chronic power shortages and prolific growth in industries, infrastructure, telecommunication, information technology and Information technology enabled services triggered market growth. The total generator set market is now estimated to grow steadily. High growth in the industrial sector and peak power deficit at about 15 percent is expected to boost diesel generator set sales in India. With the successful auction of 3G spectrum in May 2010, major telecom firms such as Bharti, Reliance, and Aircel have made huge investment in acquiring frequencies across major urban regions such as Mumbai and Delhi, notes the analyst of this research service. New telecom towers are expected to be added to accommodate the needs of 3G service deployment, creating a fresh wave of demand for diesel generator sets in
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the range of 15 30 kVA. The telecom sector was the key growth driver for the small diesel generator set market in the recent past. The 15 75 kVA diesel generator set market witnessed a slight slowdown in the last years on account of saturation in certain telecom circles which necessitated several tower infrastructure firms to place their tower addition plans on hold. However, with the advent of 3G services in 2010, the small diesel generator market is expected revive and project high growth rates. Although market prospects look upbeat, there are some challenges clouding the landscape. Import of low cost diesel generators and price competition from the unorganized diesel generator suppliers are some of the key restraints that are expected to curtail growth. Low-cost imports from China have impacted the pricing trends of domestic manufacturers, causing erosion of profit margins, especially in the 15 75 kVA range. The threat is likely to continue as several new entrants in this market are expected to import diesel generators. With the hike in the global price of crude oil, diesel prices are expected to rise significantly, thereby causing huge losses to end users and necessitate shutdown of diesel based generation. This will negatively impact the demand for new diesel generators in the future. The emission norms in India are being continuously updated to match those in the European Union, says the analyst. As the new norms are likely to be established in 2013, and major suppliers of the diesel generator sets in India will have to upgrade the design of the engines to conform to the new emission standards. This will entail substantial investments and several technology transfer agreements with global engine suppliers. Going forward, the degree of competition in 15-75 kVA and 75.1-375 kVA is expected to increase significantly with several new participants, both domestic and international suppliers, venturing into these market segments. For participants in this space, product positioning and service strategies that offer additional value added services will help enhance business prospects. 1.2.3Market Sectors Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Output Range
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- 15-75 kVA - 75.1-375 kVA - 375.1-750 kVA - 750.1-2,000 kVA. By End Use Vertical - Telecom - Large- and small-scale industries - Hospitality - Real estate - Commercial and residential - Hospitals and healthcare - Retail and restaurants - Others

1.3 GARUDA POWER COMPANY PROFILE

5

Name

Garuda Power Private Limited

Logo Incorporation date Business started

: : 19.02.2009 : 01.04.2009

Business

: Limited Company

Industry

: Power generation Industry

Brief Description : Garuda Power provides solutions for all power need. They also provide on time delivery products, warranty claim support, round-the-clock service and quick repairs. Certification Core Business : ISO 9001:2000 compliant Company. : Authorized dealer of Cummins

Chairman City of Origin Asset Base Employees

: B.S.Jayant : Kolkata, West Bengal, India : Rs 20+ crore : 450

Website
Kolkata Business Unit

: www.garudapower.com

Joka Indusrial Plaza, Diamond Harbour Road, P.O. Joka, South 24th Parganas,Kol-700104 Ph No: 033-24380165 Asansol Business Unit 204/2, Ceramic Road, Ushagram, Asansol-713303 Ph. No : 0341-2274169,2274023 Fax No: 091-0341-2275193 Siliguri Business Unit Alakananda,16 K.B. Chaudhary Sarani, Milanpally, Siliguri-734405,Dist-Darjeeling Ph No: 9434041736

1.4 VISION & MISSION OF GARUDA POWER VISION To emerge as the most trusted, admired and sought-after world class institution and to be the most preferred destination for every customer and a place of pride for its employees. MISSION To provide product & services which consistently meet and exceed Customers expectations at optimal cost, in time, and be leaders in Electrical and mechanical service solutions. The organization looks forward to the future with excitement and a commitment to bring greater benefits to customers. 1.5 OBJECTIVES OF GARUDA POWER To pursue excellence in everything we do through co-creation with our Customers. Our Goals shall converge to meet the following objectives 1.Provide the best value to our Customers for all our products and Services. 2.Generate adequate Profits to ensure fair returns to all our stakeholders, and investments for sustainable growth. 3. Promote ownership and excellence amongst our associates. 4. Promote a healthy environment. 1.6 GOALS OF GARUDA POWER
1. To achieve excellence in product delivery and services to meet

customer needs.
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2. To improve the quality of life of all stakeholders.

CHAPTER-2

ORGANISATIONAL STRUCTURE
8

2.1 CORPORATE ORGANISATION STRUCTURE

Chairman

Vice Chairman

Managing Director

Director Asansol Division

Director Kolkata Division 1

Director Kolkata Division 2

Director Korba Division

Director Rouekela Division

Head Finance, legal

Head HR

Head CSE

Head Service

Head Sales

Head Parts

Finance, legal Managers

HR Managers

Service Managers

Sales Managers

Parts Managers 9

Finance, legal Executives

HR Executives

CSE Executives

Service Executives

Sales Executives

Parts Executives

2.2 DEPARTMENTAL ORGANIZATION STRUCTURE:

Service department

Sales department

Garuda Power Private Limited

Human resource department

Parts department

Finance, legal department

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2.3 AUTHORITY AND RESPONSIBILITY 2.3.1 Authority: Authority is seen as the legitimate right of a person to exercise influence or the legitimate right to make decisions, to carry out actions, and to direct others. For example, managers expect to have the authority to assign work, hire employees. As part of Garuda Power, it has a formal authority system that depicts the authority relationships between people and their work. Different types of authority are found in this structure: line, staff, and functional authority. Line authority is represented by the chain of command; an individual positioned above another in the hierarchy has the right to make decisions, issue directives, and expect compliance from lower-level employees. Staff authority is advisory authority; it takes the form of counsel, advice, and recommendation. People with staff authority derive their power from their expert knowledge and the legitimacy established in their relationships with line managers. Functional authority allows managers to direct specific processes, practices, or policies affecting people in other departments; functional authority cuts across the hierarchical structure. For example, the human resources department may create policies and procedures related to promoting and hiring employees throughout the entire organization. 2.3.2 Delegation: In order for managers to achieve goals in an efficient manner, part of their work may be assigned to others. When work is delegated, tasks and authority are transferred from one position to another within the organization. The key to effective delegation of tasks is the transference of decision-making authority and responsibility from one level of the organization to the level to which the tasks have been delegated. In order to effectively delegate work, some guidelines should be followed:
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Determine what each worker can most effectively accomplish; decide whether the worker should just identify a problem or also propose a solution; consider whether the person can handle the challenge of the task; be clear in the objectives of the task; Authority should be delegated in terms of expected results. Generally, the more specific the goal, the easier it is to determine how much authority someone needs. Delegation is an excellent professional development tool so long as it expands a worker's expertise and growth. Delegation can also compensate for a manager's weakness. A successful team is developed by building on the strengths of its members. 2.3.3 Responsibility: Responsibility is the obligation to accomplish the goals related to the position and the organization. Managers, at no matter what level of the organization, typically have the same basic responsibilities when it comes to managing the work force: Direct employees toward objectives, oversee the work effort of employees, deal with immediate problems, and report on the progress of work to their superiors. Managers' primary responsibilities are to examine tasks, problems, or opportunities in relationship to the company's short-and long-range goals. They must be quick to identify areas of potential problems, continually search for solutions, and be alert to new opportunities and ways to take advantage of the best ones. How effectively goals and objectives are accomplished depends on how well the company goals are broken down into jobs and assignments and how well these are identified and communicated throughout the organization.
The HOD delegates a part of his responsibilities to the managers,

who are responsible for the execution of orders and also performance of the same.
The Senior Executives and Junior Executives function under

Manager according to the particular job description. These junior executives have to carry out smaller tasks assigned to them by their superior and report the same to the senior executives.

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CHAPTER 3 FUNCTIONAL AREAS

13

The organization has mainly four departments.

I. II.

III. IV. V.

Service department Sales department Human resource department Parts department Finance, legal department 3.1 SERVICE DEPARTMENT

3.1.1 Recon & job work repairs Recon engines, components & generator sets on exchange & sale. Estimate based repairs & overhauling of engines & components. Fuel pump & injector calibration. Repairs of alternators & electrical accessories. Swing/float engines support. 3.1.2 Repower & Replacement Customized engine power packs for various applications. Equipment support alliances. Information & technical support.

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3.1.3 Quick service

24 hour Field services : Minor Repair (24 hour) & Major Repair(72 hour). Free Service : A/B/C/D schedule checks - For new & Recon engines. Warranty Support: Max time to restore breakdown within 22 hours. Max time to restore minor problem within 15 hours. 3.1.4 After sale services

Garuda power mainly provides three types of after sale services. 1. Warrenty service 2. Contract service 3. Courtesy or free service Warranty service In warranty service there are four mandatory services. These services are called A check B check C check and D check. A check has to be done within 50 hours of commissioning. B check has to be done within 300 hours of working life or 6 months of commissioning. C check has to be done within 1500 hours of working life or 1 year of commissioning.
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D check has to be done within 1500 hours of working life or 2 years of commissioning. Warranty services also include
1.

2 3

30 months from date of dispatch 24 months from date in service 5000 hrs of operation

If any problem occur after the mandatory warranty services then these services are being provided. Contract based services Garuda Power Private Limited provides after sale contract based services. The customer can contract with the company annually or monthly. The company will provide service according to the contract the customer enters. These services are paid services. Annual maintenance contract AMC is performed through Garuda power in three different packages to allow the customer to choose the right on depending on the customers service need. These requirements of various customers are have been perfected over years of experience in the field. The customer may choose any package from the following option. Silver AMC Gold AMC Platinum AMC Silver AMC The silver AMC is the base Annual Maintenance Contract designed provide value to those customers who are looking to outsource their preventive maintenance to professionals. The customer will enjoy the benefit like 24*7 supports. Service preference; break down calls on cost free basis, training of ground stuff, technical updates. Besides these benefits comprehensive service checks will be carried out at specified intervals. Gold AMC The gold AMC additionally offers visits by experts for the engines under contract repairs of selected critical systems and minor health checks over the silver AMC benefits. Platinum AMC
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The Platinum AMC offers real one stop solution to all Generator Service needs which include special repairs ,comprehensive health checks, special audits apart from special assistance in case of break down. These services are in addition to the Gold AMC. Courtesy or free service The company sometimes gives courtesy or free service to the major clients. It works as marketing of the company.

3.1.5 Benefits of AMC One stop solution Unique option to avail maintenance for generator set , panels. Break down calls Free break down calls to cover all emergency needs. Expert visit Trained and experienced engineers visit for sincere consultation or support. Emergency back up Assistance in rental power to meet temporary power needs. Emergency service On call 24*7 supports. Free health check Complete check at specified intervals. Professional maintenance Maintained and serviced by Cummins trained and certified engineers.

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3.1.6 Roles and responsibilities

SPC

- Non-Technical / Technical Call receive Call registration Service Event Updation Taking customer Feedback Service event Closing

Service Advisor

Technical Person Act like floor Manager Service event planning after discussion with Customer and Service engineer Service engineer allocation to the service event Service event monitoring

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Service Manage r

-Technical Person Responsible for dealer total service support Meeting customers Service gap analysis & action planning NPS improvement activity Coach for Service engineer, service advisor & SPC.

3.1.7 Service Delivery Strategy Commitment to Customers within one Hour of Service Call about Service Engineer Assignment. Engineer deputation & on-Service job within 24 Hrs MAX. Closure of SRN within 48 Hrs of call. Visibility to every Service Event. Proactive updates on Service events to Customers.

Trigger escalations within the system before Customer escalates.

3.1.8 Service Marketing Garuda Power does not do marketing for Cummins products. So it does not have any marketing department. But by its good service delivery system and customer relationships, it created market for Cumminss products in West Bengal. There are mainly three types of customer. 1. Promotes
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2. Passives 3. Detractors The Net Promoter Score (NPS) is a measure of customer loyalty. NPS is a simple way to create a clear measure of a company's performance in its customers' eyes. Loyal customer are classified as promoters, while non-loyal customers are classified as detractors. NPS also creates a link between the quality of a company's customer relationships and its profitable growth. NPS suggests one question to assess loyalty: Question: How likely are you to recommend Cummins to a friend or colleague?

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Promoters

Passives

Detractors

Promoters Passives Promoters may pay price premiums, devote greater share of wallet, and create advocacy. Passives may switch for convenience or a more competitive offer. Detractors May create negative word-of-mouth and switch to competition.

Example of customer rating of Garuda Power over a year.

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L i k e ly t o r e c o m m e n d R a tin g 0 In %
1% 1 2 3 4 5 6 7 8 9 10 T o ta l

C u s to m e rs 2 3
1%

2
1%

4
2%

3
1%

21
8%

20
8%

35

68

27
10%

81
30%

266

13% 26%

2 2 % D e tr acto rs

3 9 % P a s4s0iv e sP r o m o t e r s %

Promoters can be created by balancing relationship and operational R excellence. E L A T I O N S H I P Passive Customers purchase based on trust despite offering Purchase on personal relationships Sensitive to competition Promoter Loyal customers who repurchase and are willing to pay more Collaborate for win Overcome inconveniences Recognize value

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Detractor Customers view products and services as commodity Price sensitive Deal dependent

Passive Customers purchase based on offering despite trust Purchase on function Sensitive to competition

OPERATIONAL EXCELLENCE Relationship + Operational Excellence = Promoter 3.1.9 Approach to Service Delivery Process

Customer Calls to SPC

Issue SRN on Call by SPC Customer communication by Phone/SMS /Email Customer Communication by Phone/SMS /Email

Transfer SRN to MTTR system for Warranty Engine 1. PM Calls 2. Breakdown Calls 3. Update of status Call

Transfer SRN to FSEM system for NON Warranty Engine 1. Engine 2. Breakdown Calls 3. Update of status Call

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Service Escalation Process

Issue resolution & Closing of SRN.

Closing the loop Closing the Loop is the process that drives internal improvement beginning with customer feedback and ending with communication back to the customer. Survey Follow-up call Improvements Communication back to customer

The Closed Loop process applies to all three categories of customers. Detractor Customers are the only alerts that must receive a follow-up call:

For ALL detractor customers who score 0 to 6 For Passive customers who score 7 or 8 For Promoter customers who score 9 or 10 (recommended) 3.1.10 Customer Service Experience

Everything speaks.........communicates

Appearance

Behaviour

Communication

All these aspects i.e. Appearance, Behavior and Communication

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ensure Customers Loyalty ( 9-10). Communication: (Pre event/ During event/ Post event) All these aspects i.e. Appearance, Behavior and Communication ensures Customers Loyalty ( 9-10). Garuda Power supports customers through Parts & Consumables for all Cummins engines. Genuine parts & Consumables. Filters & exhaust products. Turbocharger spares. Lube oil & lubricants. Alternator spares.

Escalation process

Service delivery process

Common service delivery system

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Parts ordering system linked with service event

3.1.11 Customer service (Dos and Donts) Dos If customer is calling other than SPC, take details and educate customer to call SPC next time.

Service Engineers should carry required tools as per the problem stated by the customer.

Always visit with prior appointment with the customer.

If getting late in reaching customer site, inform SA for the same. Always discuss with the customer before leaving the site SA should put the discussion detail with customer in the system. SA should promise the realistic time for SE visit. Keep a track of service event pending for parts availability

Donts

Never over commit to customers. Never miss guide the customer. Never go to customer site without preparation.
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Never argue with customer. Never visit customer site without discussing with SA. Never miss to inform SPC for Customer calls. Never leave the customer site without discussion with the customer. Never attend any personal phone call while doing the job.

3.2 SALES DEPARTMENT Sales are under the control of the general manager, to whom the sales manager reports. The sales manager is, of course, in direct charge of all activities of the sales department. It is not unusual for one of the chief executives of a company to be in general charge of sale 3.2.1 Personnel of sales department The personnel of the sales department in Garuda Power consist of a general sales manager, an assistant sales manager, branch sales manager, and sales correspondents. The various titles are explanatory of the positions. An efficient sales manager should possess, among other characteristics : the art of personal , contacts, the ability to make quick and easy adjustments to other personalities ; executive ability, especially in handling men and in office management ; a reasonable amount of selling experience; a knowledge of human nature and ability to size up men; and the ability to organize, instruct and direct others in various sales activities. It is seldom that a sales manager possesses all these qualities in a marked degree, but a reasonable combination of them is often found.

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3.2.2 Functions of sales management The chief functions of sales management are:

Determining sales quotas, providing bonuses and prizes, conducting sales contests and special sales campaigns. Preparing, or directing the preparation of, sales manuals, or salesmen's handbooks, giving detailed information about the company, the products, and the sales principles and methods involved in selling. Cooperating with the Service department in the matter of service and reporting their reaction on dealers and consumers. Conducting, or arranging for, special market surveys and analyses of territories with a view to discovering new markets for the goods or new methods of developing old markets.

3.2.3 The sales promotion department Sales taken over and carried on in greater detail by a separate division of sales, called the sales-promotion department. Supervision is in the hands of an executive or department head usually designated as the salespromotion manager. Sometimes he reports to the sales manager, probably more often to the advertising manager, and frequently he is coordinate with them, reporting directly to the president, general manager or vice-president in charge of sales. There is such a strong tendency in this direction that we discuss here in some detail sales promotion as a separate activity, despite the fact that to do so involves some repetition. 3.2.4 Functions of sales promotion The functions of sales promotion considered as a separate department of a business are:

Prospecting territories by investigating and preparing reports upon selected cities, counties, states, or regions, giving the physical layout, transportation facilities, financial resources, population and general market possibilities. Prospecting individual buyers or logical customers by investigating and classifying them according to needs, occupations, fitness, financial standing, purchasing power, buying habits and locations. Making specific market surveys and analyses, securing detailed and authoritative information regarding the quantities of products
27

sold in given area, the satisfaction given and sales problems involved, selling methods, and the probable capacity of that market to absorb more products. Statistical reports, charts and graphs of these surveys are prepared and used as a basis for organizing or reorganizing sales forces, adjusting territories, fixing sales quotas, and finding and developing new markets for the products.

3.3HUMAN RESOURCE DEPARTMENT 3.3.1Talent acquisition It is a process of getting the right person for the right job at the right time, which is done through the following steps: a)Man power planning Man power planning or personal planning in an organization is evaluating the current man power in the organization and then determining the number of employees further required for the different positions, and then plans as to how the organization should go about acquiring the required number of employees for the various positions. At Garuda Power the manpower planning is done based on the future plans and prospective growth of the organization. b)Recruitment It is the process of discovering and selecting the sources of manpower, and then attracting them to the organization. Recruitment can be done in house or outsourced. The organization classifies its employees as off rolls and on rolls. The process of attracting people to apply is called recruitment.
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The need for recruitment arises out of the following situation. 1. Vacancies due to transfer, promotion, termination, permanent disability, or death. growth or job reclassification. Recruitment methods of Garuda Power Employment Agencies The organization mainly recruit from private employment agencies. The Garuda power private limited recruit from ABC Consultants which provides a list of suitable candidates whenever they need. The organization mainly take help from private employment agencies when they need a bunch of candidates. In final selection process the representatives also sit on the interview panel .But final decision are taken by the representatives of Garuda Power. News paper advertisements The organization mainly recruits from news paper advertisements. In news paper advertisements the organization specify their requirements about the candidate. The date and time and place of walk in interview are also be specified in the ads. The interested candidates come in the organization with their cv at date specified date and time. Then the candidates face group interview. Then if all the interview board members think that the candidate is suitable for the organization then the candidate is being selected .The candidates certificates , mark sheets ,address proof are being verified. Casual applications Garuda Power receives self solicited applications seeking suitable opportunities. Garuda power maintain a file of such applications and whenever a position opens they may call from the applicants. But this happens in rare case. Mainly Garuda Power rely on ABC Consultants. Word of Mouth This can be done by individual existing employee of Garuda Power Private Limited. This is economical. So Garuda Power sometimes recruit by this process. c)Selection
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retirement,

2. Creation of vacancies due to expansion, diversification,

It is the process of selecting the right person for the right job. At Garuda Power, the process followed is as follows. Selection Process Receiving of Application Forms Screening the Applications Calling the short listed candidates for interviews Functional interview with the manager Short listed candidates go through an HR interview Candidates who pass through the HR round are selected for the respective post d)Placement Once the candidate is selected he/she is placed for the respective position and the offer letter is sent to him/her through mail. 3.3.2 Induction , Orientation and training Once the employee is placed for the respective post and he/she has receive the offer letter the joining date has to be confirmed based on which the induction is planned. Induction As per the date scheduled, employees called for the induction. On Rolls: For the On Rolls, induction happens in office. If the employees executive or senior executive induction would consists of welcoming the new employee on board, then the HR manager would give the employee a presentation on the company, background and history, a brief insight into the various departments of the company, the work culture and the policies at the work place after which the feedback would be taken for the HR induction. After the completion of the HR induction the employee would be inducted on the various departments in detain by the respective people
30

from the various departments. This will also contain an in depth insight into the department with which the employee would be working. The induction would be scheduled across a period of one week in the department for which the employee would be working across 3-5 days based on requirement. The employee is then asked to fill a feedback form. This brings the employee to the end of the induction program. After the induction is completed he/she takes on the duty and starts working as a full fledged employee of Garuda Power. During the course of induction the joining formalities are completed which includes, Giving the joining kit consisting of the joining forms, employee hand book CD, a scribbling pad and a pencil. Filling of the joining forms by the employee which includes the following forms. 1. Employee application form 2. Joining report 3. Application for medical claim, ID card, Nomination and declaration form, 4. Bank account opening form. Orientation Once the induction is completed orientation happens which is nothing but on the job training. Training Objective of training The basic objective of training is to establish a match between employee and his job. This training is designed to improve knowledge, skill and attitude and thus, equip the individual to be more effective in his present job or prepare him for a future assignment. Training can not entirely substitute experience, but it has certain definite advantage over it. Training unlike experience can shorten the training the time required to reach maximum efficiency. Cost of training is much less than the cost of gaining experience, particularly if one is dealing with expensive equipment.

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 The results of experience can sometimes be accidental, particularly when experience depends solely on trial and error. The element of predictability is far less when compared to the outcome of a well convinced and conducted training program. Training thus provides certain advantages which are not available by learning through experience. As far as identifying training needs by the company Garuda Power Private Limited considers the following factors. 1. Level and rapidity of technological and administrative changes. 2. Level of individual and group performance. 3. Changing organizational structure. Selected candidates of the Garuda Power Pvt Limited are compulsorily trained by Cummins in Pune for one month. In the service period also the employee can be asked to go to Pune and get training. As because Garuda power is a service based company the employees are required to be thoroughly upgraded about the new technological changes the Cummins made.

3.3.3 Performance appraisal Performance appraisal is the method of judging the relative ability of an individual employee in performing his task. The appraisal can help identify a better worker from a poor one. Performance appraisal is one of the most important roles of a manager or a supervisor to motivate, encourage, build, train, reinforce and modify behavior of his subordinates. Objective of performance appraisal from management point of view 1. To determine salary increments. 2. To identify training and development efforts. 3.To facilitate organizational planning in the areas of planning placement according to suitability, promotion, transfer, demotion or termination etc. 4. Evaluate subordinates correctly.
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5. To maintain discipline and help in creating a desirable culture and tradition in the organization. Objective of performance appraisal from employees point of view
1. Help the employees to overcome he is weakness and improve his

strengths and thus enable him to improve his performance.

2. Provide inputs to system of rewards (comprising salary increments,

appreciation, additional responsibility, promotion etc.)and salary administration. Methods of performance appraisal in Garuda Power Score card This method of appraising performance is easy to construct, understand and use. In score card method quantity of work, quality of work, job knowledge, dependability, attitude of an employee are being measured. In this method the element of subjectivity is very high. Though numbers are involved they may generate an illusion of accuracy. This method facilitate supervisor to evaluate employees as well as employees to improve their performance in better way. Garuda Power gives promotion to their employees on basis of this score card. This performance is reviewed once in a year. Review process has the following ratings. DESCRIPTION Exceeds expectation- has exceeded more than the required objectives and target sets. Above expectation- has exceeded some of the required objectives and target sets. Meets expectation- has met the required objectives and target sets. Does not meet expectation- has met some of the required objectives and target sets. Below expectation- has not met many of the required objectives and target sets. 3.3.4 Promotion
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RATING 5 4 3 2 1

Promotion is the upward reassignment of an individual in an organizations hierarchy, accompanied by increased responsibilities, enhanced status and with increased income. One of the major reasons leading to promotion is the growth of business. Reason for promotion 1. One of the major reasons leading to promotion is a growth of business. Under these circumstances, it becomes necessary for an organization to create new jobs and promote some of the existing employees to position of greater responsibility. 2. A promotion also constitutes recognition of a job well done. The effective performance of a job is a reflection of the employees commitment to work, and the promotion becomes a reward for his service to the organization. It serves to enhance job satisfaction, loyalty to the organization and to create a sense of belonging of an employee. 3. Most employees are not interested in working in a dead end job. Not getting an opportunity to move upward in the hierarchy can prove to be a major demotivating force to employees, leading to a decision to dissociate from the organization. Under these circumstances, promotion becomes a strategic move to retain an employee, particularly if he/she is a good performer. Analysis for promotion

Performing present duties well enough to justify a promotion.

Experienced and qualified to do at least a part of the new job.

Willing to hand over current responsibilities to a new person. Enthusiastic about taking on a new role. Familiar with the new positions responsibilities and priorities. Proficient in the interpersonal skills necessary to work with others in a new role. Adequately trained or willing to accept the new role. Prepare to bow out gracefully if the promotion does not work out as planned.

3.3.5 Compensation
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Compensation package consist of two kinds of payments during employment and after employment During Employment package It basically consists of four components 1. The basic salary 2. Cash allowances 3. Bonus 4. Perquisites The basic salary Basic salary is worked out on the basis of job evaluation and is adjusted either because of reclassification or changes in the cost of living. Basic salary is a range with top and base clearly. An increment is simply a constant addition in the basic salary as a reward for work done according to expectation. Allowance Some allowances Garuda Power is providing are Dearness allowance House rent Travel allowance Daily allowance (in case of outstation travel) Bonus This payment is gesture of goodwill over and above the regular wages. It amounts 8.33 percent of basic salary of one month. Perquisites Perquisites are those benefits that do not usually come in the form of cash but are provided to maintain certain needs and status of the employee and the image of the organization. The perquisites of Garuda Power includes Car loan House loan Paid holidays Reimbursement of the cost of childrens education Some other compensations for Garuda Power employees are
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 Accidental Insurance Health benefit(Medical claim) Compensation after employment Once the employee has left the organization either voluntarily or on superannuation, he can continue to draw certain kinds of benefits from it. These are in the form of Pension Gratuity Limited medical facilities These compensation packages are agreed upon the time of employment. 3.3.6 Facilities Garuda powers employees are facilitates with Transport facilities Canteen Telephone bills Garuda Power and Airtel India are connected with yearly contract. The Airtel sim cards are provided to the employees of Garuda power. But the free phone calls are restricted with hours limit. 3.3.7 Employee Relation This is nothing but grievances of the employees are related to the work rules and regulation, policy and procedure, health and safety regulations, past practices, changing the cultural norms unilaterally, individual victimization, salary bonus etc .Here the attitude on the part of management in their effort to understand the problems of the employees and resolve the issues amicably have better probability to maintain a culture of high performance. Effective grievance handling is an essential part of cultivating good employee relations and running a fair, successful and productive work place. Positive employee relations are two-way street. Both sides must give a little and try to work together. At,Garuda Power the HR department handles the employee grievances through an open door policy. If there are any complaints, they should report it to the HR Department, who will further look into the matter and try solving it to the best of their ability. If the complaint is beyond the control of HR department, the matter will move up to the respective higher authorities for review.
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3.4 PARTS DEPARTMENT It is a department which looks after need and supply of parts(spare). It keeps an account of list of requirements for example diesel generators, engine parts, spare parts and other supporting equipments. The spare parts department is a key segment and profit centre of the dealership operation. There are certain prime reasons which attributes to such identification: The dealership has 100% equity in paid for spare parts. Investment in parts inventory represents about one third of the dealership's working capital. 25 to 30% of the dealership's gross profit comes from parts and accessories sales. Spare parts segment plays a very important part in the customer's acceptance of the dealership as a place to buy not only spare parts but the product itself.

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Periodic review and evaluation (weekly, monthly, quarterly, year end) of spare parts department can provide significant information for the management in strengthening the spare parts department's performance. The following action suggested may be helpful in this regard, as they can provide the management with factual decision supporting information. Observe the counter salesman in action. Sample check inventory records. Review sales and profit levels vs. objectives. Review monthly turnover rate. Review ordering procedure. Review expenses. Review parts catalogue and price lists. Review annual physical inventory results. It may be worthwhile mentioning here about part inventory procedures and evaluation of spare parts manager if the total operation is being managed by him.

After all parts & accessories are counted, the quality, location and description should be compared and recorded on each inventory control sheet. 3.4.1 Serving the Service Department The service department is the parts department's best single customer. It is important that dealership management establishes a policy, which supports close coordination between these two important profit-centre departments. This coordination should include the opportunity for the parts manager to review requests for parts with the mechanic or service manager. This will help ensure greater understanding and permit suggesting additional parts to be included in the repair job. This practice will help increase sales and profits for both departments. This policy should clearly establish that close observance of the following guidelines is basic to serving the shop: 1. Provide fast service to the mechanic or the service manager. Avoid keeping them waiting. Time lost in waiting for parts costs the dealership in terms of loss of the customer and reduced shop productivity.
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2. Anticipate the mechanics' major needs for routine jobs. Whenever practical, encourage mechanics to prepare repair orders "in advance" so that they can be reviewed and the parts are identified and available for immediate pick-up when needed. 3. Work closely with the service manager in arranging for and capitalizing on parts and service promotions. 3.4.2 Serving the Sales Department The parts manager in the dealership will have numerous opportunities to provide support to the sales department. For this reason, it is important that management policy fosters close co-operation between the parts manager and sales personnel. Areas where such cooperation will payoff, include:

Providing prospects with literature on products they are interested in. Talking with prospects about parts availability. Supplying parts and accessories for sale on new and used products. Selling items when sales personnel are not available. Advising sales personnel on equipment for which parts are hard to get so that they can consider this in appraising trade-ins.

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3.4.3Housekeeping A well-kept and orderly parts department can attract a strong customer interest. Management policy should direct the parts manager to maintain the appearance of the department through daily clean-up of the parts on display and sales area. Further, the housekeeping policy should encourage suggestions from the parts manager for improvements in department appearance, fixtures, displays, and in storage of heavy, odd shaped and flexible items. Regular inspection of the Parts Department by dealership management will help ensure continued good housekeeping. 3.4.4Control Obsolescence Parts that become obsolete represent dealership rupees that are not working. Obsolescence is bound to creep into spare parts inventory to some extent. Dealership management can improve the parts turnover rate and minimize obsolescence by adopting policies like: Careful ordering. Regular use of the monthly stock ordering program Getting an advance deposit from customers against special order of
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parts. By considering the parts not sold at retail for the last two years as 100% obsolete and having a dialogue with principal to accept the non-moving parts. Special sales effort to liquidate the surplus parts by offering special discount at counter or to trade. 3.4.5 Engines Cummins power generation equipments Cummins power generators Cummins diesel units Cummins natural gas units Cummins industrial diesel units Diesel engine spare parts

3.4.6 Spare Parts Diesels Plus carry a wide range of spare parts in stock for our range of engines, equipment and generating sets supplied.

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Alternators:
Mecc Alte Stamford Leroy Somer

Control System:
Deep Sea Deif Mitsubishi

Filter Systems:
Donaldson Mann & Hummel

Electrical:
Bosch Iskra

Fuel Injection:
Bosc

3.4.7 Proposed Maintenance & Inspection Program

All employee based on requirement

Training

Licensing 42

Initial Inspection Daily Inspection

Inspection

Periodic Inspection Third party Inspection

Rigging process approval Periodic checking system

Safety programs

Rigging

System to establish end of life

Safety practices

Safe Operation

Vertical lifting Safe operating distance

Preventive & Corrective Maintenance

Maintenanc e

End of Life period Breakdown & cost analysis

Hazard, Accident reporting and investigation- Why? Prevent future incidents (leading to accidents). Identify and eliminate hazards. Expose deficiencies in process and/or equipment. Maintain worker morale.
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The rule requires to investigate serious accidents. Garuda Power will lose money when regular work stops.

At Risk

An employee is working on site at a risk.

3.5 FINANCE AND LEGAL DEPARTMENT 3.5.A Finance Activities They are responsible for payment to Cummins, verification of stock status, evaluation of financial data, auditing, tracking profit and loss of outlets, coordinating with sales tax authorities, providing finance for

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various activities of different business units, time to time analysis of the companys standing position. Finance department is headed by Finance Head who will be reporting to the Chief Financial Officer and the President pertaining to the operations under his supervision. Kolkata, Asansol and Korba has its own branch accountants who will be reporting to the Manager- Finance. Finance department performs many services. It makes payment to the Cummins and collects, analysis, recon ciliates and evaluates financial data. Getting the books of accounts audited, preparation of the balance sheet as per Companys Act and IT Act is also done by the Finance Department. Finance department is the main instrument to control and safeguard the companys as3sets. In order to build an effective workflow in the Department, there should be mark out core functions and obligations the Department does in everyday life. So, the three core functions of Finance department are Financial administration, Provision of everyday financial services and Financial reporting. 3.5.A.1 Financial administration The financial administration function is maintained to ensure that financial controls, plans, policies and operations of the company are upto-date and in compliance with legal and corporate guidelines. The Finance Director oversees all the procedures of the Department and provides the ground for all financial transitions. The Financial administration function is aimed to:

Development and maintenance of internal control policies Budget preparation and assignment Revenue auditing and forecasting Management of contractors

3.5.A.2 Provision of everyday financial services It is a vital section of the finance department workflow as it provides the company, staff and customers with accurate, consistent and timely financial services for the purpose of keeping the financial operations and transactions up-to-date and closed out in proper way. Day-to-day financial services include the following directions:

Payroll administration Financial control services

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Purchasing assistance Accounts receivable and accounts payable

3.5.A.3 Financial Reporting The Financial reporting section of the department workflow is aimed at generating and providing financial reports to company's departments and outside institutions to ensure legal compliance with state requirements. The Financial reporting section also reconciles the accounts of the company and reports current status of all operations and translations made during reporting period. The company owners and The Board of Directors use analytical reports to ensure that the deals with current contractors of the company are properly calculated and handled. 3.5.A.4 Internal Audit They conduct regular physical audit and check for any business malpractices and misuse of property. Its objectives are to examine, evaluate, and make reports on the adequacy of the internal controls for proper functioning of the departments. They are granted full and complete access to all corporate and franchisee manuals and computerized records, physical properties and personnel relevant to an audit or review without any prior notice or information. They visit outlets and check if everything is in place and the outlets are being run as per the set standards. If gaps are noticed, then the Head of the Department are intimated through mail as to what is wrong. 3.5.B Legal Activities Law department is responsible for providing legal services and advice to the company, its divisions and employees. The department office faces a great number of different legal matters. These matters include: business development, contract management, real estate transactions, customer claims against the company for product damages and defects, litigation, employment law, sales and leases matters, debt collection, bankruptcy, case prosecution, and much more. All these activities create the workflow of Legal department. If to look at the workflow in whole, the following main functions of the legal department can seen:

Providing legal advice and guidance. Prosecution of cases in courts and litigation management. Documentation preparation and drafting.

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3.5.B.1 Providing legal advice and guidance This is a core function of Legal department. During the company's everyday life, there are a lot of legal issues which require qualified advice from Lawyers and Legal Advisors. This is about giving advice for resolving such issues as sales, purchasing, customer support, partnership, licensing, and other. The implementation of the function is based on the following activities the department concerns:

Giving advice to the company, its divisions and employees on matters of law and legal protection. Keeping company activities in strict compliance with new legislation. Representing company in all meetings, conferences and public events.

3.5.B.2 Prosecution of cases in courts and litigation management Legal department represents and defends the company interests and its employees in courts and government bodies. The department initiates litigation in case of court examinations, and the legal staff members are responsible for creating and enforcing ordinances and gathering existing claims in favour of the company. This function is fulfilled by the following activities:

Preparation of protocols, claims and counter-claims to courts Representation of company in courts Protection of company's rights and interests in judicial sittings

3.5.B.3 Documentation preparation and drafting This function concerns legal part of document management. Law department is responsible for drafting documents in forms which do not contradict or infringe existing legislation, both local and international (if company conducts oversees activities). The fulfillment of this function is based upon the following activities:

Creation of legal documentation requirements.

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Drafting and approving document layouts. Complying legislation. documentation with existing agreements and

CHAPTER 4
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SWOT ANALYSIS

4.1 STRENGTH AND WEAKNESS: Strengths 1) Fast and quick service. 2) Majority of the employees are young and dynamic. 3) Garuda has a good relationship with the customers. 4) Garuda Power is the only the authorized dealers of Cumminss products in total east India. It has huge market there.
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Weakness
1) It has to depend on Cumminss products. Cummins will set the

product prize. Customer delight will be more on Cummins than Garuda Power.
2) Targets very small number of persons.

3) Prices are high for the service they provide. 4) Transporting big engines is very costly. 5) Lack of proper marketing about their service 4.2 OPPORTUNITIES AND THREATS Opportunities 1) As there are few players, Garuda Power has wide market availability. 3) Open option of venturing into other potential cities.
4) As of now there is no big competitor for Garuda Power in West

Bengal.
5) Number of factories is increasing rapidly. So the demand for the

engines also increased. Threats

1) Many players have entered in service based dealership for other

power companies.
2) Cumminss future dealership policy may act as a threat in future .

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CHAPTER 5 OBSERVATIONS, SUGGESTIONS & CONCLUSION

5.1 MAJOR FINDINGS During the internship period, different functions of the different departments to the organization were learnt. It was found that the Service, Human resource and finance departments play an important role. Through interaction with the employees, their functions at various levels of the organization were found.

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The various departments have the responsibility to ensure that their team has achieved the set targets and motivate them in excelling in their skills. 5.2 SUGGESTIONS The management of the company can perform its functions more efficiently to utilize the resources to achieve the goals of the organization. The Human Resource department can come up with innovative motivational policy to encourage employees. A lot of paper is used for documentation and other purposes. This can be reduced and compensated by electronic documentation. 5.3 CONCLUSION This internship is the first major industrial exposure wherein we got an overall view of the company. We found out about the management hierarchy, basic departments and the layout which enhanced our managerial knowledge. Garuda Power provided me with a platform to understand how exactly service units work and how to maintain customer relations. The companys excellent service delivery system have made them successful in their area. There has been a rapid growth of the organization. 5.4 BIBLIOGRAPHY www.garudapower.com

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