M.B.

A PROGRAMME
INTRODUCTION
HUMAN RESOURCE MANAGENMENT
Human resource management is rather difficult to say spontaneously what management
means

though

we have studied a course in management. But it is necessary

to recall

what management is before studying of human resource management. Management has

been the art of getting things done through people. The term human resource is quite popular
in India with the institution of ministry of human resource development in the union cabinet.
But most people may not know what exactly the term human resource means.
The term human resource management can be thought of as the knowledge, skills,
creative abilities, talents and aptitudes of an organization work force, as well as the value,
attitudes and beliefs of the individuals involved it can also

be explained in the sense

that is resource like any natural resources. It does mean that the management can get and use
the skills, tapping and utilizing them again and again. Human resource is also regarded as
human factor, human asset, human capital and the like. The term labor and manpower had
been used widely denoting mostly the physical abilities and capabilities of employees.
For any organisation to function effectively, it must have resource of men (Human
Resource), money, materials and machinery. The resources by themselves cannot fulfill the
objectives of an organisation, they need to be collected, co-ordinated and utilised through
human resources. And, the effective management of human resources is also vital. Hence,
Human

Resource

Management

(HRM)

has

emerged

as

major

function

in

organisations.Human Resource Management is the organizational function that deals with

issues related to people such as compensation, hiring, performance management, organization
development,

safety,

wellness,

benefits,

employee

motivation,

communication,

administration, and training.

Human resource management is an essential function of both private and public sector
organizations. In this lesson, you'll learn what human resource management is, as well as its
objectives and responsibilities in an organization. Human resource management means
management of people at work. HRM is the process which binds people with organizations
and helps both people and organization to achieve each others goal. Various policies,
processes and practices are designed to help both employees and organizations to achieve
their goal.
1

ECE

M.B.A PROGRAMME
Human resource management is branch of management that deals with people at work, it
is concerned with the human dimensions of management of the organization. As organization
consists of people, therefore acquiring them, developing their skills, providing them
motivation in order to attain higher goal and ensuring that the level of commitment is
maintained are the important activities.Human resource constitutes of all the management
decisions responsible for relationship between organization and employees.HRM is the field
of management which plans, organizes, controls the functions of procurement, development,
maintenance and utilization of the work force so that.
1. Organization goals can be accomplished.
2. Objectives of human resources can be accomplished
3. Objectives of society can be accomplished.

MEANING OF HUMAN RESOURCE MANAGEMENT

Difficult terms are used to denote human resource management.

They are labor

management, labor administration, and labor management relations. Employee-employer

relations, industrial relations,

personnel

administration, personnel management and the

like. Though these terms can be differentiated widely the basic nature of distinction lies in
the scope or coverage evolutionary stage.
In simple sense, human resource management means employing people, developing
their resources, utilizing, maintaining and compensating their services in tune with the job
and organizational requirements.
Human Resource Management is the process of recruitment, selection of employee,
providing proper orientation and induction, providing proper training and the developing
skills, assessment of employee (performance of appraisal), providing proper compensation
and benefits, motivating, maintaining proper relations with labour and with trade unions,
maintaining employees safety, welfare and health by complying with labour laws of concern
state or country.

ECE

M.B.A PROGRAMME
DEFINITIONS HUMAN RESOURCE MANAGEMENT
The process of hiring and developing employees so that they become more valuable
to the organization.Human Resource Management includes conducting job analyses, planning
personnel needs, recruiting the right people for the job, orienting and training, managing
wages and salaries, providing benefits and incentives, evaluating performance, resolving
disputes, and communicating with all employees at all levels. Examples of core qualities of
HR management are extensive knowledge of the industry, leadership, and effective
negotiation skills. Formerly called personnel management.
many great scholars had defined human resource management in different ways and
with different words, but the core meaning of the human resource management deals with
how to manage people or employees in the organisation.
Edwin Flippo:1)"The planning, organizing, directing and controlling of the procurement,
development, compensation, integration, maintenance and reproduction of human resources
to the end that individual, organizational and societal objectives are accomplished"
Human resource management can be concluded as a business oriented philosophy concerned
with the management of people in order to obtain added value from them and achieve
competitive advantage.
2)HRM as planning, organizing, directing, controlling of procurement, development,
compensation, integration , maintenance and separation of human resources to the end that
individual, organizational and social objectives are achieved.
The National Institute of Personal Management :(NIPM) of India has defined human resources personal management as that part of
management which is concerned with people at work and with their relationship within an
enterprise. Its aim is to bring together and develop into an effective organization of the men
and women who make up enterprise and having regard for the well being of the individuals
and of working groups, to enable them to make their best contribution to its success.

ECE

M.B.A PROGRAMME
Decenzo and Robbins:HRM is concerned with the people dimension in management. Since every
organization is made up of people, acquiring their services, developing their skills,
motivating them to higher levels of performance and ensuring that they continue to maintain
their commitment to the organization is essential to achieve organsational objectives. This is
true, regardless of the type of organization government, business, education, health or social
action.

SCOPE OF HUMAN RESOURCE MANAGEMENT

The scope of Human Resource Management refers to all the activities that come under the
banner of Human Resource Management. These activities are as follows.
HRM in Personnel Management:
This is typically direct manpower management that involves manpower planning,
hiring (recruitment and selection), training and development, induction and orientation,
transfer, promotion, compensation, layoff and retrenchment, employee productivity. The
overall objective here is to ascertain individual growth, development and effectiveness which
indirectly contribute to organizational development.
It also includes performance appraisal, developing new skills, disbursement of wages,
incentives, allowances, traveling policies and procedures and other related courses of actions.
HRM in Employee Welfare:
This particular aspect of HRM deals with working conditions and amenities at
workplace. This includes a wide array of responsibilities and services such as safety services,
health services, welfare funds, social security and medical services. It also covers
appointment of safety officers, making the environment worth working, eliminating
workplace hazards, support by top management, job safety, safeguarding machinery,
cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits,
employment injury benefits, personal injury benefits, maternity benefits, unemployment
benefits and family benefits.

ECE

M.B.A PROGRAMME
Industrial Relations:
Since it is a highly sensitive area, it needs careful interactions with labor or employee
unions, addressing their grievances and settling the disputes effectively in order to maintain
peace and harmony in the organization. It is the art and science of understanding the
employment (union-management) relations, joint consultation, disciplinary procedures,
solving problems with mutual efforts, understanding human behavior and maintaining work
relations, collective bargaining and settlement of disputes.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

Objectives are predetermined goals to which individual or group activity in an
organization is directed. Objectives of personnel management are influenced by
organizational objectives and individual and social goals. Institutions are instituted to attain
certain specific objectives.
Institutions procure and manage various resources including human to attain the specific
objectives. Thus, human resources are managed to divert and utilize their resources towards
and for the accomplishment of organizational objective.
1.To help the organization reach its goals.
2.To ensure effective utilization and maximum development of human resources.
3.To ensure respect for human beings. To identify and satisfy the needs of individuals.
4.To ensure reconciliation of individual goals with those of the organization.
5.To achieve and maintain high morale among employees.
6.To provide the organization with well-trained and well-motivated employees.
7.To increase to the fullest the employee's job satisfaction and self-actualization.
8.To develop and maintain a quality of work life.

ECE

M.B.A PROGRAMME
9.To be ethically and socially responsive to the needs of society.
10.To develop overall personality of each employee in its multidimensional aspect.
11.To enhance employee's capabilities to perform the present job.
12.To equip the employees with precision and clarity in transaction of business.
13.To inculcate the sense of team spirit, team work and inter-team collaboration.

PRINCIPLES OF HUMAN RESOUCE MANAGEMENT

1.Principle of maximum individual development.
2.Principle of scientific selection.
3.Principle of high morale.
4.Principle of dignity of labor.
5.Principle of team spirit.
6.Principle of effective communication.
7.Principle of fair remuneration.
8.Principle of effective utilization of human resources.
9.Principle of participation.
10.Principle of contribution to national prosperity.

ECE

M.B.A PROGRAMME
SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT
Human resource plays a crucial role in the development process of modern
economics. There are great differences in development between countries which seem
have

roughly

equal

resources, so it is often felt that, though

to

the exploitation of

natural resources, availability of physical and financial resources and international aid play
prominent roles in the growth of modern economics, none of these factors is more significant
that efficient and committed manpower.
Human resources play a crucial role in the development process of modern
economies. There are great differences in development between countries which seem to have
roughly equal resources, so it is necessary to enquire into the difference in human behavior. It
is often felt that, though the exploitation of natural resources, availability of physical and
financial resources and international aid play prominent roles in the growth of modern
economies, none of these factors is more significant than efficient and committed manpower.
It is in fact, said that all development comes from the human mind.
Human resources are the valuable assets of the corporate bodies. They are their
strength. To face the new challenges on the fronts of knowledge, technology and changing
trends in global economy needs effective human resource management. Significance of HRM
can be seen in three contexts: organisational, social and professional.
Organisation Significance:
It contributes to the achievement of organisational objectives in the following ways:
1. Good human resource practice can help in attracting and retaining the best people in the
organisation.
2. Developing the necessary skills and right attitudes among the employees through training,
development, performance appraisal, etc.
3. Securing willing cooperation of employees through motivation, participation, grievance
handling, etc Effective utilisation of available human resources.
4. Ensuring that enterprise will have in future a team of competent and dedicated employees.

ECE

M.B.A PROGRAMME
Social Significance:
Social significance of HRM lies in the need satisfaction of personnel in the
organisation. Since these personnel are drawn from the society, their effectiveness contributes
to the welfare of the society. Society, as a whole, is the major beneficiary of good human
resource practice.
i. Employment opportunities multiply.
ii. Eliminating waste of human resources through conservation of physical and mental health.
iii. Scare talents are put to best use. Companies that pay and treat people well always race
ahead of others and deliver excellent results.
Professional Significance:
Professional significance of HRM lies in developing people and providing healthy
environment for effective utilisation of their capabilities.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT:
In order to achieve the above objectives, Human Resource Management undertakes the
following activities:
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
4. Appraisal of performance of employees.
5. Taking corrective steps such as transfer from one job to another.
6. Remuneration of employees.
7. Social security and welfare of employees.
8. Setting general and specific management policy for organizational relationship.
9. Collective bargaining, contract negotiation and grievance handling.
10. Staffing the organization.
11. Aiding in the self-development of employees at all levels.
12. Developing and maintaining motivation for workers by providing incentives.
8

ECE

M.B.A PROGRAMME
13. Reviewing and auditing manpower management in the organization
14. Potential Appraisal. Feedback Counseling.
15. Role Analysis for job occupants.
16. Job Rotation.
17. Quality Circle, Organization development and Quality of Working Life.

FACTORS OF HUMAN RESOURCE MANAGEMENT:

In the 21st century HRM will be influenced by following factors, which will work as various
issues affecting its strategy:
Size of the workforce.
Rising employees expectations
Drastic changes in the technology as well as Life-style changes.
Composition of workforce. New skills required.
Environmental challenges.
Lean and mean organizations.
Downsizing and rightsizing of the organizations.
Culture prevailing in the organization etc.

ECE

M.B.A PROGRAMME
RECRUITEMENT AND SELECTION
Once the required number and kind of human resources are determined, the
management has to find the places where required human resources are or will be available
also find

the means of

attracting them

towards the

organizations before selecting

suitable candidates for jobs. All this process is generally known as recruitment. Some people
use the term recruitment or employment. These two are not one and the same either.
Technically speaking the function of recruitment precedes the selection function and it
includes only finding, developing, the sources of prospective employees and attracting them
to apply for jobs in an organization, where as the selection in the process of finding out the
most suitable candidate to the job out of the candidate attracted.A process of discover the
source of manpower to meet the recruitments of the staffing

and to employ effective

measures for attracting that manpower in adequate numbers to facilitate effective selection of
an efficient work force.

MEANING OF THE RECRUITEMENT

The main aim of an effective recruitment program is to attract the best people for, the
job and aid the recruiter by making a wide choice available. A good job description helps in
attracting the right kind of candidates for the job. The recruitment efforts and the costs
involved are generally in proportion to the criticality of the vacant position and the
urgency of the need.

OBJECTIVES OF RECRUITEMENT

To attracted the people with multi-dimensional skills and experiences that suit
the present and future organizational strategies.

To induct outsiders with a new perspective to lead the company.

To infuse fresh blood at levels of organization.

To develop an organizational culture that attracts competent people top the

company.

To search or head hunt/ head pouch people whose skills fit the companys
values.

10

ECE

M.B.A PROGRAMME

To devise methodologies for assessing psychological traits.

To seek out non-conventional development grounds of talent.

PROCESS OF RECRUITMENT
Human Resource Planning

Identify the Human Resource

Requirements
Retrench
Determine the number, levels and
critically of vacancies
Organizational
Recruitment

policy

Choose the resources &methods

of Recruitment

No efficient

Analyze the cost & time involved

Job Analysis
Start implementing the
recruitment programs

Select and hire the candidates

Evaluate the program

11

ECE

M.B.A PROGRAMME
FACTORS AFFECTING RECRUITEMENT
Both internal and external factors affect recruitment. The external factors include
supply

of

and

demand

for

human

resources employment opportunities and/or

unemployment rate, labour market conditions, political, legal

requirement

and

governmental policies. Sec is factors, information Systems etc.

The internal factors include the companys pay package including
Salary, fringe benefits and incentives, quality of work life, organization culture,career
planning and growth opportunities, size of the company,

companys product, services,

geographical spread of the companys operations via local, national or global companys
growth rate, role of trade unions and cost of recruitment.

RECRUITMENT POLICY
Recruitment policy of any organizations is derived from the personnel policy of the
same organizations. In other words the former is a part of the latter. However, recruitment
policy by It self should take into consideration the governments reservation policy,
policy regarding sons of soil etc. personnel policies of

other organizations regarding

merit, internal sources, social responsibility in absorbing minority sections, women

etc.
The following factors should be taken into consideration in formulating recruitment policy.
They are:

Government polices

Personnel policies of other competing organizations

Recruitment sources

Recruitment needs

Recruitment costs

Selection criteria and performance etc.

12

ECE

M.B.A PROGRAMME
IMPACT OF PERSONNEL POLICIES ON RECRUITMENT POLICIES
Recruitment policies are mostly drawn from personnel policies of the organization.
General personnel policies provide a variety of guidelines to be spelt out in recruitment
policy. After formulation of the recruitment policies, the management has to decide whether
the centralize or decentralize the recruitment function.

CENTRALIZED VS DECENTRALIZED RECRUITMENT

Recruitment process vary from one organization to another some organizations
like commercial banks resort to centralized recruitment while some organizations like the
Indian railway resort to decentralized recruitment practices.

SOURCES OF RECRUITMENT
The Sources are those where prospective employees are available Management has
to find out and develop sources of recruitment as early as possible because of high rate of
time- lapse. The sources of recruitment are broadly divided into internal and external sources.
Internal sources are the sources with in organizational pursuits. External sources are sources
outside organizational pursuits.

INTERNAL SOURCES
1. Present Permanent employees.
2. Present temporary employees.
3. Retired employees.
4. Dependents of deceased / disabled / retired / present employees.
1. Present Permanent Employees:
Organizations consider the candidates from this source for higher-level jobs
due to availability of most suitable candidate for relatively or equal to external source. To
motivate the present employees, that the organization can satisfy the employees also.
2. Present Temporary Employees:
Organizations find this source to fill the vacancies relatively at lower level owing
to the availability of suitable candidates or trade and pressure or in order to motivate them
on present job.
13

ECE

M.B.A PROGRAMME
3. Retired employees:
Generally a particular organization retrenches the employees due to lay-off. The
organization takes the candidates for employment from the retrenched employees due to
obligation, trade union pressure and the like. Some times the organizations prefer to reemployee their retired employees as a token of their loyalty to organization or postpone
some inter-personal conflicts for promotion etc.
4. Dependents of Deceased / Disabled / Retired / Present Employees:
Some organizations with a view to develop the commitment and loyally of not
only the employees but also his family member and to build up the image, provide
employment to the dependent(s) of deceased, disabled and present employees. Such
organizations find this source as an effective source of recruitment.
HRM is indeed vast. All major activities in the working life of a worker from the time
of his or her entry into an organization until he or she leaves come under the purview of
HRM. Specifically the activities included are HR planning, job analysis and design,
recruitment and selection, orientation and placement, training and development, performance
appraisal and job evaluation, employee and executive remuneration, motivation and
communication, welfare, safety and health, industrial relations (IR) and the like. For the sake
of convenience, we can categories, we can categorise all these functions into seven sections,

14

ECE

M.B.A PROGRAMME
EXTERNAL SOURCES

Campus Recruitment
Private Employment agencies

Public employment exchanges

Professional associations

Data Banks

External Sources

includes
Casual applications

Similar organization

Trade Unions

15

ECE

M.B.A PROGRAMME
Campus recruitment:
Under this method many companies send their representatives to interview candidates in
colleges and universities. Companies realize that campus recruitment is one of the best
sources for recruiting the cream of the new blood. This source enables the company to point
an attractive picture of its employee's opportunities and to be advanced screening of
candidates. The better candidates.

Private Employment Agencies:

Line managers are relieved from recruitment functions so that they can concentrate
on their operational activities and recruitment function is entrusted to private agency or
consultants. These agencies are increasingly being used as a source of personnel. This
method is important for specialized candidates. Some of these agencies are now
specializing in only one type of personnel operations clerical, managerial and so forth.

Public Employment Agencies:

Employment exchanges are regarded as good source of recruitment for skilled,
semiskilled and unskilled operative jobs. The job seekers get their names registered with
qualifications in employment agencies, which were managed and operated by the central and
state governments. The employers notify the vacancies to be filled in by them to such
agencies, effective use of this agency requires that the employers give definite job
specification to the agency and that agency do more preliminary screening and refer the
names of prospective candidate to them.

Professional associations:
In this, the consultants who specialize in the recruitment of managers and other senior
officials are now being called upon to assist the management in filling of those posts.
Companies hire the services of these consultants at the time of recruitment of the senior
officials. These consultants agencies on receiving requisitions from the client companies,
advertise job description in leading newspapers and periodicals without disclosing the names
of the employers. The applicants received are posted on to the concerned employers.
Sometimes; these firms screen, interview and select the candidates, if asked for by the company.

16

ECE

M.B.A PROGRAMME
Databanks:
The management can collect the bio-data of the candidates from different sources
like Employment Exchanges, Educational Training Institutes, candidates, etc and feed them
in the computer. It will become another source and the company can get the particulars as
and when it needs to recruit. By this source lower level, middle level and top level
positions are recruited by the organization.

Casual applications:
Depending upon the image of the organization, its prompt response, participations of the
organization in the local activities, level of unemployment, candidates apply casually for jobs
through mail or temporary and lower in personnel department. This would be a suitable
source for tempotrary and lower level jobs.

Similar organizations:
Generally, experienced candidates are available in organizations producing similar
products or are engaged in similar business. The management can get most suitable
candidates from this source. This would be most effective source for executive positions and
newly established organization or diversified or expanded organizations.

Trade unions:
Generally, unemployed or under employed persons or employees seeing change in
employment put a word to the trade union leaders with a view to getting suitable employment
due to latters intimacy with management. As such the trade union leaders are aware of the
availability or candidates.

17

ECE

M.B.A PROGRAMME
RECRUITMENT TECHNIQUES
Recruitment Techniques are the means or media by which management contracts
prospective employees or provides necessary information or exchanges ideas or stimulates
them to apply for jobs. Management uses different types of techniques to stimulate internal
and external candidates.
Techniques useful to stimulate internal & external candidates are:
1. Promotions
2. Transfers
3. Recommendation of Present employees
4. Scouting
5. Advertising
6. Walk-In
7. Consult-In
8. Head-hunting
9. Tele-Recruitment
10. Body Shopping

1.Promotions:
Most of the internal candidates would be stimulated to take up higher
responsibilities and express their willingness to be engaged in the higher level jobs if
management gives them the assurance that they will be promoted to the next higher level.

2.Transfers:
Employees will be stimulated to work in the new sections or places if management
wishes to transfer them to the places of their choice.

3. Recommendation of Present employees:

Management can contact, persuade the outsiders to apply for job in the organization
through the recommendations to the candidates by the present employees, trade unions leaders,
etc.

18

ECE

M.B.A PROGRAMME
4.Scouting:
It means sending the representation of the organizations to various sources of recruitment
with a view to persuading or stimulating the candidates to apply for jobs. The representatives
provide information about the company and exchange information and ideas and clarify the
doubts of the candidate.

5.Advertising:
It is widely accepted technique of recruitment, though it mostly provides one way
communication. It provides the candidates in different sources, the information about the job
and company and stimulates them to apply for jobs. It includes advertising through different
media like newspapers, magazines of all kinds, radio, television etc.

6.Walk-In:
The busy organizations and the rapid changing companies do not find time to perform
various forms of recruitment. Therefore, they advise the potential candidates to attend for an
interview directly and without a prior application on a specified date, time and at a special place.
The suitable candidates from among the interviewees will be selected for appointment after
screening the candidates through tests and interview.

7.Consult-In:
The busy and dynamic companies encourage the potential job seekers to approach them
personally and consult them regarding the jobs. The companies select the suitable candidates
from among such candidates through the selection process.

8.Head-hunting:
The companies request the professional organizations to search for the best
candidates particularly for their senior executive positions. The professional organizations
search for the most suitable candidates and advise the company regarding the filling up of
the positions. They are also called as search consultants.

19

ECE

M.B.A PROGRAMME
9.Tele-Recruitment:
The technologies revolution in telecommunication helped the organizations to use
Internet as a source of recruitment. Organizations advertise the job vacancies through the
World Wide Web Internet. The job seekers send their applications through e-mail.
Alternatively, job seekers place their CVs in the World Wide Web/internet, which can be
drawn by the prospective employers depending upon their requirements.

10.Body Shopping:
Professional organizations and the hi-tech training institutes develop the pool of
human resources for the possible employment. The prospective employers contact these
organizations to recruit the candidates. Otherwise, the organizations approach the prospective
employees to place their human resources. These are mostly used for computer professionals.

20

ECE

M.B.A PROGRAMME
SELECTION
Selection is the process of finding out the most suitable candidate to the job out of
the candidates recruited. The obvious guiding policy in selection is the intention to choose
the best qualified and suitable job candidate for each unfilled job. The objective of the
selection is to choose the individual who can most successfully perform the job from the pool
of qualified candidates. The selection procedure is the system of function s and devices adopted
in a given company to ascertain whether the candidates' specification is matched with the job
specifications and requirements or not.

Essentials of Selection Procedure:

Someone should have the authority to select. The authority comes from the
employment requisition, as developed by an analysis of the work-load and workforce.

There must be some standard of personnel with which a prospective employee may be
compared.

There must be sufficient number of applicants from whom the required number of
employees may be selected.

Significance of Selection Process:

Selection of personnel to man the organization is a crucial, complex and
continuing function. The ability of an organization to attain its goals effectively and to develop
in a dynamic environment largely depends upon the effectiveness of its selection
programme. If right personnel is selected the remaining functions of personnel
management becomes easier, the employee contribution and commitment will be at an optimum
level and employee-employer relations will be congenial. In an opposite situation where the
right person is not selected, the remaining functions of personnel management, employeeemployer relations will not be effective. It the right person is selected, he becomes a
valuable asset to the organization. In case of faulty selection, the employee will become a
liability to the organization.

21

ECE

M.B.A PROGRAMME
ORGANIZATIONAL RELATIONSHIPS
Before designing a selection procedure, the manner in which tasks and responsibility for
accepting or rejecting candidates should be shared by line and staff executives, must be laid
down. The personnel department should eliminate all unsuccessful candidates, so that the
time of the line executives need not be spent on such people. Secondly, candidates who can
meet job requirement should be made availability promptly.

FACTORS AFFECTING SELECTION DECISIONS

The goal of selection is to select the right person at right time for a right place.
Therefore a number of factors affect the selection decision of candidates. The important
among them are:
1. Profile Matching:
2. Successive hurdles:
3. Organizational & Social environment:
4. Multiple correlations

Profile Matching:
Tentative decisions regarding selection of candidate (who is known) is taken in
advance. The scores secured by these known candidates in various tests are taken as
standard to decide the success or failure of the other candidates at each stage. Normally a
decision about known candidates is taken at interview stage. Possible care is taken to match
the candidates' bio data with job specification.

Successive hurdles:
In this method hurdles are created at every stage of selection process. Therefore,
applicants must successfully pass each and every screening device in case of hurdles.

Organizational & Social environment:

Some candidates who are eminently suitable for job may fail as successful
employees due to varying organizational and social environment. Hence candidates'
specification must match with not only job specification but also with organizational and
social environment requirements.
22

ECE

M.B.A PROGRAMME
Multiple correlations:
It is based on the assumption that a deficiency is one factor that can be counter
balanced by an excess amount of another .A candidate is routed through all the selection
steps before a decision is made. The composite test score index is taken into accounting the
selection tests. Hence, for broader line cases multiple correlation method is useful and for
other successive hurdles method is useful.

PROFILE MATCHING
Tentative decision regarding the selection of candidates is taken in advance. The
scores secured by these known candidates in various tests are taken as a standard to decide
the success or failure of other candidates at interview stage.
1. Employment
2. Line manager
3. Reference
4. Medical examination
5. Final interview
6. Tests
7. Group discussions
8. Preliminary interview
9. Written examination
10. Application form

1. Employment:
Thus, after taking the final decision the organization has to intimate this decision to
the successful as well as to the unsuccessful candidates. The organization sends the
appointment order to the successful candidate either immediately or after sometime
depending upon its time schedule. At the same time, certain organizations also dispatch the
rejection letters to the unsuccessful candidates accordingly.
23

ECE

M.B.A PROGRAMME
2. Line Managers:
This is the last and the final stage of the selection procedure. The concerned line manager
has to make the final decision whether to select or reject a candidate after soliciting the required
information through different selection techniques.

3. Reference Checks:
After completions of the final interview and medical examination, the personnel
department will engage in checking references. Candidates are required to give the name and
address of reference in their application form. These references may be from the individuals
who are familiar with the candidate's academic achievements or from the applicant's previous
employer who is well versed with the applicant's job performance and sometimes even from
the co-workers. The information extracted from the concerned people through these references
are :job title, job specification and description, period of employment, pay and allowances, gross
emoluments, benefits provided, rate of absence, willingness of the previous employer to
employ the candidate again, candidate's regularity at work, character progress, etc. Checks on
references are made by mail or telephone and occasionally in person.

4. Medical Examinations:
Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual
stamina, tolerance of hard working conditions, clear tone, etc. Medical examination reveals
whether or not a candidate possesses these qualities. The basic aim of this examination is to
judge whether the applicant is medically suited for the specific job.

5. Final Interview:
This is the most essential step in the process of selection. The interview is a selection
technique where the interviewer matches the information obtained by the candidate through
various means to the job requirements and to the information obtained through his own
observation during interview.

24

ECE

M.B.A PROGRAMME
Commonly, interview falls into six main categories:
I.

Patterned or Highly or Structured Interview.

II.

Non-Directive or Free or Quite Unorganized Interview.

III. Depth or Action Interview.

IV. Situational or Problem-Type Interview or Leaderless Group discussion Interview.
V.

Panel or Board Interview.

VI. Stress interview.

I.

Patterned or Highly or Structured Interview:

It is based on the assumption that, to be most effective, every pertinent detail bearing

on what is to be accomplished, what kind of information is to be sought or given how the

interview is to be conducted and how much time is to be allotted to it, must be worked out
in advance. Questions would be asked in a particular order with very little deviation. Such
interviews are called Standardized Interviews, for they are pre-planned to a high degree of
accuracy and precision.

II. Non-Directive or Free or Quite Unorganized Interview:

It is unstructured and is relatively non-planned as to format. In such an interview,
the applicant is asked some very general question and he may reply to these in any way for a
considerable length of time. Generally, the candidate is encouraged to express himself on a
variety of subjects, on his expectations and motivations, background and upbringing,
interests, even political predications, etc. The interviewers look for traits of character and
nature of his aspirations had his strengths and weaknesses, manifest or potential. The
purpose of such interview is to determine what kind of person a candidate really is.

III.

Depth or Action Interview:

It is semi-structured in nature and utilizes questions in key areas which been studied

in advance by the interviewer. The typical subject discussed in such interviews includes the
candidate's home life, education, previous experience, aptitude, recreational interests and
hobbies. The interviewer provides instructional information about his organization, the
nature of work, pay, opportunities for advancement and demands likely to be made on the
employee. The idea of such an interview is to get a true picture of the interviewee by
25

ECE

M.B.A PROGRAMME
intensively examining his background and thinking so that a correct evaluation and
decision may be made.

IV. Group or Discussion Interview:

In this type of interview, groups rather than individuals are interviewed. The
interviewees are given certain problems and are asked to reach a specific decision within a
particular time limit. The applicants enter into group discussions. A few observers watch
the activity of the interviewees - those who take a lead in the discussion, those who try
influencing others, those who summarize and clarify issues, and those who speak
effectively. The main aim is to see how well individuals perform on a particular task or in a
particular situation.

V. Panel or Board Interview:

In this type of interview, a candidate is interviewed by a number of interviewers.
Question may be asked in turn or in random order as they arise on any topic.

VI. Stress Interview:

In this type of interview, the interviewer assumes a hostile role towards an
applicant. He deliberately puts the candidates on the defensive mode by trying to annoy,
embarrass or frustrate him. Usually, the interviewer in such circumstances asks questions
rapidly, criticizes the interviewees answers, interrupts him frequently and keeps the
candidate waiting indefinitely and then subjects him to a barrage of interrogation,
questioning whatever he might state or too many question are asked at a time by many
interviewers, make derogatory remarks about the candidate or puts him in an awkward
situation by dropping something on the floor and asking him to pick it up, accusing him
that he is lying and so on.

6. Tests:
It would be difficult for the organizations to evaluate the candidate's performance
only on the basis of application blank and/or interviews. Hence, in order to solicit
information about the candidate i.e.., their resume, job description and the critical
competencies required in the job, certain tests called psychological tests are conducted.

26

ECE

M.B.A PROGRAMME
These tests are referred to as Psychological Tests because psychologists have contributed a
lot in developing these tests.

7. Group Discussion:
It is a method where groups of successful applicants are brought around a
conference table and are asked to discuss either a case-study or a subject matter. They are
required to analyze, discuss, find alternative solutions and finally select the sound
solution. A selection panel observes the candidates in the areas of initiating a discussion,
explaining the problem, soliciting

8. Preliminary Interview:
These interviews are short and conducted to solicit necessary information from the
prospective applicants and to assess their suitability for the job. The information thus
provided by the candidate may be related to the job or personal specifications regarding
education, experience, salary expected, aptitude towards the job, age, physical
appearance and other requirements. Thus, it is a process of eliminating the undesirable and
unsuitable candidates. If a candidate satisfies job requirements, he may be selected for
further process. This interview is also useful to provide the basic information about the
company to the candidate.

9. Written Examination:
The organizations have to conduct written examinations for the qualified candidates
after they are screened on the basis of the application blanks so as to measure the
candidate's ability in arithmetic calculations, to know the candidate's attitudes towards the
job, to measure their aptitude, reasoning, knowledge in various disciplines and general
knowledge.

10. Application Form or Application Blank:

An application blank provides preliminary information as well as an aid in the
interview by indicating areas of interest and discussion. It is a good means of quickly
collecting verifiable (and therefore fairly accurate) basic historical data (employee's
background) from the candidate.

27

ECE

M.B.A PROGRAMME
SELECTION PROCESS

Job Analysis

Development base for

search

Application /resume

Human
Resource

cv/bio-data

plan
Written Examination
Recruitement

Preliminary Interview

Business games

Asses the fit between the

job and the candidate

Test

Final interview

Medical Examination

Line managers decision

Employement

28

ECE

M.B.A PROGRAMME
JOB ANALYSIS
Job analysis is basis for the selecting the right candidate. Every organization should
finalize the job, job specification, job description, and employee specifications before proceeding
to the next step of selection.

RECRUITMENT
Recruitment refers to the process of searching for prospective employees and stimulating
them t applies for jobs in an organizations. It is the basis of the remaining techniques of the
selection and the latter varies depending upon the former.
Many companies formulate their own style of application forms depending upon the
requirements of information based. On the size of the company, nature of business activities, type
and level of the job etc. This is particularly for the clerical positions. Information is generally
required on the following it
Personnel background information
Educational attainments
Work experiences

Personnel background information:

It includes name, present and permanent address, sex, date of birth, martial status, health,
height and weight, nationality number of dependents, annual income of applicants parents etc.
this information can be used by the management to know the suitability of the candidate
regarding his social-economic background, neighbor hood, family status and background, family
status and background sociological out look, impact of these factors on employee behavior etc.

Educational attainment:
These includes list of schools, college, institutions, attended period of study, major
subjects, class, percentage of marks, rank secured, extra curricular activities, positions and
membership held during educational career, hobbies, and interest, study either through
regular course, or correspondence course or through private study etc. this is the major area
of information gathered by the organization through application forms.

29

ECE

M.B.A PROGRAMME
Work experience:
It covers experience in all previous jobs with greater particulars about the nature and
quantum of work handled, period of experience in each of job, reasons for Leaving the past
employers, duties and responsibilities involved name of the immediate supervisor, salary
drawn etc. this information enables the organization to know the stability of the employee
aptitude for the nature of work, nature of relationship he maintained with the past employers
etc.

BIOGRAPHICAL INVENTORIES
In some cases, management may wish to select the existing employees for the higher
positions. In such a case the employee is asked to submit for up-to-date bio-data which include
name, address, educational qualifications, martial status habits and attitudes, present home,
spouse and children self impression, recreation hobbies, interests, values, openings and
preferences etc.

WRITTEN EXAMINATION
Written examination is conducted if there is large number of applicants, as it will be
difficult to interview large number of applicants. So to filter the applicants a written
examination is conducted. The exam pattern varies according to the job requirements.

PRELIMINARY INTERVIEW
It is conducted to check the applicants' suitability of the job. The HR department
my be conducts this interview, to gather the information about the candidates' education,
experience, salary expected, aptitude towards the job, age, physical appearance etc. By
this the management can eliminate undesired and unsuitable candidates. If the candidate
satisfies the management then he will be selected for further process.

BUSINESS GAMES
Business games are widely used as selection techniques for selected management
trainees, executives trainee, and managerial personnel at junior, middle and top management
positions.

30

ECE

M.B.A PROGRAMME
Business games help to evaluate the applicants in the areas of decision making,
identifying the potentialities, handling the situation problem solving skills human relation skills
etc. participants are placed in a hypothetical work situation are required to play the role situation
in the game will be the successful one on the job.

GROUP DISCUSSION
It is a method where groups of successful applicants are brought around a
conference table and are asked to discuss either a case-study or a subject matter. They are
required to analyze, discuss, find alternative solutions and finally select the sound
solution. A selection panel observes the candidates in the areas of initiating a discussion,
explaining the problem, soliciting unrevealing information based on the given information
and using common sense, keenly observing the discussion of others, clarifying controversial
issues, influencing other, speaking effectively, concealing and mediating arguments among
the participants, summarizing and finally concluding aptly. Based on this observation, the
selection panel judges the candidate's skill and ability and ranks them according to their
merit.

TESTS
It would be difficult for the organizations to evaluate the candidate's performance
only on the basis of application blank and/or interviews. Hence, in order to solicit
information about the candidate i.e.., their resume, job description and the critical
competencies required in the job, certain tests called psychological tests are conducted.
These tests are referred to as Psychological Tests because psychologists have contributed a
lot in developing these tests.

FINAL INTERVIEW
This is the most essential step in the process of selection. The interview is a selection
technique where the interviewer matches the information obtained by the candidate through
various means to the job requirements and to the information obtained through his own
observation during interview.

31

ECE

M.B.A PROGRAMME
TYPES OF INTERVIEWS:
Informal interview
Formal interview
Planned interview
Patterned interview
Non-direct interview
Depth interview
Stress interview
Group interview
Panel interview
Preliminary interview

Informal interview:
This is the interview which can be conducted at any place by any person to secure
the basic and non job related information. The interaction between the candidate and the
personnel manager when the former meets the latter to enquirer about the vacancies or
additional particulars in connection with he employment advertisement is an example of
informal interview.

Formal interview:
In this interview the candidate is given the freedom to tell about himself by revealing
his knowledge on various items or areas, his background, expectations, interests etc. similarly,
the interviewer also provides information also provides information

Panel or Board Interview:

In this type of interview, a candidate is interviewed by a number of interviewers.
Question may be asked in turn or in random order as they arise on any topic.

32

ECE

M.B.A PROGRAMME

Patterned Interview:
It is based on the assumption that, to be most effective, every pertinent detail bearing on
what is to be accomplished, what kind of information is to be sought or given how the
interview is to be conducted and how much time is to be allotted to it, must be worked out
in advance. Questions would be asked in a particular order with very little deviation. Such
interviews are called Standardized Interviews, for they are pre-planned to a high degree of
accuracy and precision.

Non-Directive Interview:
It is unstructured and is relatively non-planned as to format. In such an interview, the
applicant is asked some very general question and he may reply to these in any way for a
considerable length of time. Generally, the candidate is encouraged to express himself on a
variety of subjects, on his expectations and motivations, background and upbringing,
interests, even political predications, etc. The interviewers look for traits of character and
nature of his aspirations had his strengths and weaknesses, manifest or potential. The
purpose of such interview is to determine what kind of person a candidate really is.

Depth or Action Interview:

It is semi-structured in nature and utilizes questions in key areas which been studied
in advance by the interviewer. The typical subject discussed in such interviews includes the
candidate's home life, education, previous experience, aptitude, recreational interests and
hobbies. The interviewer provides instructional information about his organization, the
nature of work, pay, opportunities for advancement and demands likely to be made on the
employee. The idea of such an interview is to get a true picture of the interviewee by
intensively examining his background and thinking so that a correct evaluation and
decision may be made.

Stress Interview:
In this type of interview, the interviewer assumes a hostile role towards an
applicant. He deliberately puts the candidates on the defensive mode by trying to annoy,
embarrass or frustrate him. Usually, the interviewer in such circumstances asks questions
33

ECE

M.B.A PROGRAMME
rapidly, criticizes the interviewees answers, interrupts him frequently and keeps the
candidate waiting indefinitely and then subjects him to a barrage of interrogation,
questioning whatever he might state or too many question are asked at a time by many
interviewers, make derogatory remarks about the candidate or puts him in an awkward
situation by dropping something on the floor and asking him to pick it up, accusing him
that he is lying and so on. The purpose is to find out how a candidate behaves in a stress
situation- whether he losses his temper, gets confused or frightened.

Group or Discussion Interview:

In this type of interview, groups rather than individuals are interviewed. The
interviewees are given certain problems and are asked to reach a specific decision within a
particular time limit. The applicants enter into group discussions. A few observers watch
the activity of the interviewees - those who take a lead in the discussion, those who try
influencing others, those who summarize and clarify issues, and those who speak
effectively. The main aim is to see how well individuals perform on a particular task or in a
particular situation.

Panel or Board Interview:

In this type of interview, a candidate is interviewed by a number of interviewers.
Question may be asked in turn or in random order as they arise on any topic.

MEDICAL EXAMINATION
Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual
stamina, tolerance of hard working conditions, clear tone, etc. Medical examination reveals
whether or not a candidate possesses these qualities. The basic aim of this examination is to
judge whether the applicant is medically suited for the specific job.

REFERENCE CHECKS
After completions of the final interview and medical examination, the
personnel department will engage in checking references. Candidates are required to give the
name and address of reference in their application form. These references may be from the
individuals who are familiar with the candidate's academic achievements or from the

34

ECE

M.B.A PROGRAMME
applicant's previous employer who is well versed with the applicant's job performance and
sometimes even from the co-workers
In case the reference check is form the previous employer, information for the following
areas may be obtained:
1. Job title
2. Job description
3. Period of employment
4. Gross emoluments
5. Benefits provided
6. Rate of absence

FINAL DECISION BY THE LINE MANAGER CONCERNED

This is the last and the final stage of the selection procedure. The concerned line manager
has to make the final decision whether to select or reject a candidate after soliciting the required
information through different selection techniques.

EMPLOYMENT
Thus, after taking the final decision the organization has to intimate this decision to the
successful as well as to the unsuccessful candidates. The organization sends the
appointment order to the successful candidate either immediately or after sometime
depending upon its time schedule. At the same time, certain organizations also dispatch the
rejection letters to the unsuccessful candidates accordingly.

EFFECTIVENESS OF SELECTION PROGRAMME

The purpose of selection programmed and techniques is to choose the most suitable
candidate for a given job from among the prospective employees. The selection programmed
would be effective, if the candidates selected or hired perform their jobs efficiently and
sincerely with commitment.

35

ECE

M.B.A PROGRAMME

RECENT TRENDS IN SELECTION

New trends have been emerging in selection techniques along with other areas of
human resources management. The recent trends in selection include:
Selection by innovation
Leasing
360 degree selection programmed

Selection by innovation:
Management by observes the performance of key executives of competitors. If the
performance of key executives is excellent or the key executives are change agents, the
management invites such executives to join the organization by offering attractive salary and
benefits.

Leasing:
Presently, the organization needs to employee specialists to take up the highly skilled
jobs. N fact, the changes in technology demand highly skilled employees. It would be very
difficult to small organizations to employ the skilled employees as they demand high pay.
This type of arrangement is beneficial to the consultants, employees on lease and the
industrial organizations. The business organizations can utilize the services of the experts
with less cost. The employees get high pay and benefits.

360 degree selection programme:

Normally superiors administer the selection tests and interviews. They judge the fit
between the job and the candidates. But the employees skills, knowledge and performance
affect not only superiors but also subordinates and the employees of the same level. Hence,
the organizations started involving the subordinates and the employees of the same level in

36

ECE

M.B.A PROGRAMME
administrating the employment tests and interviews. This type of selection programmer is
called 360 degree selection programme.

OBJECTIVES OF THE STUDY

To study the Recruitment & Selection Process followed by SANGAM DAIRY LTD

To identify processing problems if any with the existing Recruitment & Selection
process and make suggestions.

To know the drawbacks existing in the recruitment policy of the

SANGAM DAIRY LTD.

To offer the findings, suggestions and conclusion for this study.

To examine the selection procedure of the organization.

To evaluate and analyze the effectiveness of recruitment and selection policies.
To elicit the employees opinion regarding the present recruitment and selection
process.

37

ECE

M.B.A PROGRAMME

NEED OF THE STUDY

Recruitment and Selection process is one of the important functions of HRM. In this
present globalization era, human resources are very important for every organization.

So effective process of recruitment and selection are needed for the effective
organization.

Sangam dairy should follow the best methods of recruitment and selection procedures.

For every organization, search for the suitable applicants is the first step and selection
of right person for the right job in right time is basic foundation.

If this foundation is strong, then there is a lot of chance for the organization to
increase their effectiveness at the key points.

So finally selection of the candidate becomes the heart of the particular organization.

So, studying is done to understand the recruitment & selection activities in the
organization and to know what extent these activities have been successfully in the
organization development.

38

ECE

M.B.A PROGRAMME
SCOPE OF THE STUDY
The study is conducted in the Vadlamudi. The employees covered in this study
are who own SANGAM DAIRY.Ltd and this study tries to get feedback from them. The
concept of the study is related to RECRUITMENT AND SELECTION with the Employees
of SANGAM DAIRY.Ltd.

SIGNIFICANCE OF THE STUDY

Student of this types very much useful to academicians, researchers, scholars from
making in depth analysis in the topic.
Studies of this type are useful to similar organization in general and Sangam dairy Ltd.
particular for making policy decisions or the betterment of the organization.
Studies of these types are more useful to access Sangam Ltd i.e. the attitude of the
employee and can make necessary steps to motivate them towards the improvement of the
performance of the organization.

PRESENTATION OF THE STUDY

The first chapter deals with theoretical aspects relating to recruitment and selection
The second chapter is related to the objectives and methodology of the study.
The third chapter presents the profile of dairy industry with special reference to sangam
dairy limited.
The fourth chapter is discussing about the recruitment and selection process in sangam
dairy limited.
The fifth chapter attempts to find out the findings and suggestions of the study.

39

ECE

M.B.A PROGRAMME
RESEARCH METHODOLOGY
Methodology is scientific and systematic search for pertinent information on specific
topic. The reliability of management decision depends upon the quality of data. Basically we
have two types.
Primary data
Secondary data

Primary data:
Primary data is obtained through the interaction with various department heads and
personnel.
1. Observation
2. personal interview
3. Questionnaires
4. Schedules
Of these methods Questionnaire is used for data collection.
QUESTIONAAIRE:
The researcher and the respondent do come in contact with each other if this method of
survey is adopted. Questionnaires are mailed to the respondents with a request to return after
complaining the same. It is the most extensively used method in various economic and
business surveys. Before applying this method, usually a pilot study for testing the
questionnaire is conducted this reveals the weaknesses, if any, of the questionnaire.
Questionnaire to be used must be prepared very carefully so that it may prove to be effective
in collecting the relevant information.

Secondary data:
Secondary data is collected from the annual reports and holders of sangam dairy and also
from the journals and books relating to milk industry.

40

ECE

M.B.A PROGRAMME
RESEARCH INSTRUMENT
To achieve the objectives of the survey detailed annexure was designed to gather the
information from the employer of the organization.

SAMPLING DESIGN
The sampling plans are the procedure or way in the sampling has been down to carry out
the present research. The details of the sampling plan include.
Sample method
Sample size
Sample unit

Sample method:
Sample has been selected by using convenient sampling method. Out of the universe of
200 employees. Equal chance of known opportunity of being selected

Sample size:
The researcher considers a sample size of 60of 200 universes. The sample represents the
skill employees of the same level of Sangam dairy LTD.

41

ECE

M.B.A PROGRAMME
LIMITATIONS OF THE STUDY
Since the researcher is done by using sampling technique.
The data collected may not be accurate and complete.
The data given by the employee are based on the individual perception and it may
not represent he whole organization.
The data collected from the questionnaire is limited and is confined to the
questionnaire newly recruited employees could not reveal the information accurately.
Accuracy of study is based on the information given by the respondents so the
information may be biased.
The study has been constrained by limitations of time and cost factors.

42

ECE

M.B.A PROGRAMME
INDUSTRY PROFILE
INTRODUCTION
The popular adage nothing succeeds like success is applicable to the dairy
development in India. If the country witnessed the green revolution leading to self-reliance in
food grains in the sixties and seventies, the decades of the eighties and nineteens witnessed the
white revolution. India total milk production is ranked first in the world followed by the United
States.
Initially dairying was largely an unorganized activity. By and large land
holding farmers kept cattle mainly for bullock production. Milk was essentially by product. The
surplus after domestic consumption was either converted into conventional products mainly Ghee
and sold to middlemen who cater to the needs of the market.
As India enters an era of economic reforms, agriculture, particularly the live stock
sector is poisoned to be a major growth area. The fact that dairying could play a more
constructive role in promoting rural welfare and reducing poverty is increasingly being
recognized.
For example, milk production alone involves more than producers, each raising one or
two/buffaloes, cow dung is an important input as organic fertilizer for crop production and is also
rudely used as fuel in rural areas. Cattle also serve as an insurance cover for the poor households,
being sold during times of distress.
The Board of agricultural carried out the live stock censes in 1919 as a preparatory action
for planned dairy development. In 1920, the imperial expert recommended to the government for
the establishment of a training center to meet the manpower requirements for managing the
Defiance dairy farms. By this time there were three dairy farms and until 1923. The British
government approach towards dairying was confined to milk requirements of the military only.
After 1923, diploma course in dairy were started to Bangalore.

43

ECE

M.B.A PROGRAMME
EVOLUATION
The origin of dairy farms under public management dates back to 1886. When the
department of defense established a few dairy farms in that year to supply milk and milk products
to the British troops. The next step was initialized during the First World War. In 1914, the
department of defense on the advice of the board of agriculture advised the government in 1961,
to appoint imperial dairy expert. The next important step was the decision to conduct a census of
livestock. The Board of agricultural carried out the live stock censes in 1919 as a preparatory
action for planned dairy development.
In 1920, the imperial expert recommended to the government for the establishment of a
training center to meet the manpower requirements for managing the Defiance dairy farms. By
this time there were three dairy farms and until 1923. The British government approach towards
dairying was confined to milk requirements of the military only. After 1923, diploma course in
dairy were started to Bangalore.
Dr. N.C. Wright, director, dairy research institute, Scotland who was invited to India an in 1936
for reviewing the progress of dairying in the country has made two recommendations:
1.

Industry needs have to be solved by developing own technology and technologists in the
country.

2. India is country of villages, of which most inhabitants are mall, marginal farmers and
landless laborers. Development should be promoted only on co-operative lines.
In 1937, the Luck now milk producers cooperation union limited was established paving the
way for the organization of such union in districts and state. In 1945, the famine enquiry
commission in its report emphasized. The need for developing fodder supply for increasing milk
product and recommended the adoption of mixed farming with a place for fodder and
corporation.
As a sequel to this, under the greater Bombay milk scheme, milk was procured from kauri
district, Gujarat by the private dairy. That gave way to the idea of creating an institutional
structure for dairying on co-operative lines.

44

ECE

M.B.A PROGRAMME
DEVELOPMENT OF DAIRY IN NINTIES
The momentum gained in the dairy through co-operative during the last 20 years will
now take India into nineties as major dairying country of the world. The countrys milk
production in the early sixties which was about 20 million tons has touched a record of 56
millions tons. It is likely to reach about 80 million tons by 2000A.D India which one time was
dependent on other countries for products such as milk powder, butter and cheese has now
become self sufficient. It has even started exporting some of them in small quantities
simultaneously efforts are made to expand milk procurement. Processing and marketing to meet
the growing demand for milk produ

cts.

DAIRY CO-OPERATION
In our country, the co-operative moment owes its development of the initiative of the
government. It is only during 1950s that Tamilnadu, Gujarat and Uttar Pradesh took some
important steps in organizing dairy cooperative sector, provided a model for the milk producers.
Cooperatives in Gujarat and other states provided guidance and policy direction. State level
federations of dairy cooperatives have been formed in different states.
The entire institutional network of the cooperatives comprises of 22 federations unions,
75 thousand dairy co-operation societies and over 7 million farmers. Members during 198990
collected an average 10 million it of milk in a day an paid about 1200crores of rupees in a year.

MAIN AIM OF AIRY INDUUSTRY IN COOPERATIVE SECTOR

Formation of co-operative units of milk producers in every village.
To improve cattle wealth of goods breed which are improved for milk
production.
To avoid contaminated diseases buy using proper medicines and injections.
Providing the availability of good breed seeds so as to improve the cattle
feed.
Industry mobile hospitals to provide free medical facilities to cattle of the
dairy and avoid diseases.

45

ECE

M.B.A PROGRAMME
So from the above crystal clear that the cooperative sector would be instrumental in
increasing the milk production.
To put above programmers to action in our district with the cooperation of National Dairy
Development Board, a Three-Tier programmed was started in 1980. In relation to it 198 milk
producers co-operative unions have been set up at village level.

THE THREE-TIRE SYSTEM

The three tire system consists of:
1. Primary dairy cooperative societies at village level.
2. Co-operative unions district level.
3. Federation at state level

MILK SHEDS/UNIONS
Operation flood program has been identified into milk sheds/unions.
No
1
2
3
4

Milk sheds/unions
Visaka dairy
Godavari dairy
Krishna dairy(vijaya)
sangam dairy

Districts
Srikakulam, Vizianagaram, Vizag.
East and West Godavari
Krishna
Guntur

5
6

Chitoor
Kurnool

Chitoor
Kurnool

7
8

Cuddapa
Nalgonda -Rangareddy

Cuddapa
Nalgonda -Rangareddy

Medak-Nizamabad

Medak-Nizamabad

CO-OPERATING MARKETING

46

ECE

M.B.A PROGRAMME
Co-operating dairy society has played a major role in the marketing of ilk in India.
Major Quantity of milk is produced in the rural area while the profitable market of the milk and
milk products is large in urban area. How ever the quantity of the milk available for sale for an
individual farmer is quantity to urban markets on his or her own. They face a number of problems
such as inadequate transport facilities and absence of proper marketing therefore the role played
by the dairy co-operative in building.
The economic welfare of the farmer is not over emphasized. In addition to the
arrangement of sale of milk, the dairy cooperative are also expected to provide veterharey aids,
supply cattle needs and arrange for the supply of credit for related purpose.

LOANS TO MEMBERS
The milk co-operatives cannot extend loans to the farmers directly. Instead they can
offer guarantee to the amount borrowed by the farmer. It was observed that from small site
societies about 7 members received loans amounting to Rs.42, 000 the loans was mainly offered
for the purpose o purchase of cross-bread cows in medium purpose of purchase of a cross breed
cows. In medium, purpose of purchase of cross-bread cows and 29 members got the loan
worth Rs.7, 50,000 for purchase of buffaloes.

NATIONAL MILK DAIRY

In the seventies the national milk grid was a distinct dream. But the next decade saw it
taking shape. The benefits from such as arrangement are for both consumers and producers.The
development of national milk grid mainly took place for solving the problems of the producers.
The producers from highly milk producing districts not only suffered loss because there were no
tankers for the extra quantity of milk available during the flush season were lower than those paid
during the fewer seasons.
The grid solves the problem of the producers.From the consumers side also grid is useful
in 1951 there were 20,900 towns and number has to risen to 62360. During the period the urban
population has increased from 62.4 millions to 109.1 million, a growth consumer and these also
had the necessary purchasing power.

SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY

47

ECE

M.B.A PROGRAMME
STRENGTHS:
Demand profile: Absolutely optimistic.
Margins: Quite reasonable, even packed liquid milk.
Flexibility of product mix: tremendous with balancing equipments you can keep
on according to your product line.
Availability of raw material: abundant, presently, more than 80% of

milk

produced is flowing into the unorganized sector, which requires proper canalization.
Technical manpower: professionally-trained technical human resource pool, built
over last 30 years.

WEAKNESS:
Perish ability: pasteurization has over come this weakness partially. UHT gives milk
long life. Surely, mainly new processes will follow to improve milk Quality and
extended its Shelf Life
Lack of control over yield: Theoretically, there is little control over
How ever,

milk yield.

increased awareness of developments like embryo transplant, artificial

insemination and properly managed animal husbandry practices, coupled with higher
income to rural milk producers should automatically lead to improvement in milk
yield.
Logistics of procurement:
facility

make milk

Woes

of bad

roads and

adequate transportation

procurement problematic But with over all economic

improvement in India, these problems would also get solved.

Problematic distribution:

yes, all is not well distribution. But then if ice-creams

can be solved virtually at every hook and corner. Why cant we sell other dairy
products too? More over it is only a matter of time before we see the emergence of
cold chain linking the producer to the refrigerator at the consumers home.
Competition: with so many new comers

entering

this industry competition, is

becoming tougher day by day. But then competition has to be faced as a ground
reality. The market is large enough for many to curve out their niche.
48

ECE

M.B.A PROGRAMME
OPPORTUNITIES:
Failure is never find success never ending Dr. Kurten bears out this statement
perfectly. He entered the industry when there were only threats. He met failure head on, and
how he clearly is an example of never ending success! If dairy entrepreneur are looking for
opportunities
In India, the following areas must be tapped:

Value addition:
There is a phenomenal scope for innovations or products like shorthand, ice creams,
papers khan, flavored milk, dairies sweets etc. this will lead to grates presently and flexible
in the market place along with opportunities in the field of brand building.
Addition of cultured products like yogurt and cheese land

further strength

both in terms of utilization o resources in the market place.

A lateral view opens up

opportunities in mile

proteins through case in

castigate and other dietary proteins, future opening up export opportunities.

Yet another aspect can be the addition of infant foods generate foods and
nutritional

Export potential:
Effort to exploit export potential are already on Amul is exporting to Bangladesh,
Srilanka, Nigeria and the Middle East .Following to new GATT tread, opportunities will
increase

tremendously for expertly of agric-products in generic and dairy products in

particular.

THREATS:

49

ECE

M.B.A PROGRAMME
Milk vendors, the un-organized sector. Today milk vendors are occupying
the provide of place in the industry organized dissemination of

information

about

the harm that they are doing to producers and consumers should see a steady decline
in their importance.
The study of this swot, analysis shows that the strengths and opportunities for
weight weakness and threats strength and transitory. Any investment idea weakness
and threats are transitory. Any investment idea can do only when have three essential
ingredients entrepreneurship (the ability to take risks);

innovate approach (in

product lines a
Marketing) and values (of quality lathes) the Indian dairy industry, flowing deli
censing.

Their

success in dairying hygienic

and cost-efficient yet economical

procurement network. Hygienic and cost-efficient processing facilities and

innovativeness I the market place. All that needs to be done is to innovate, convert
products yourself: Benjamin Franklin discovered electricity, but it was the man who
invented the meter that really made the money.

NEED FOR DAIRY DEVELOPMENT

In India, the land mass is 304.8 million lactates (1987-88) while the gross
irrigated areas as a percentage of cropped area is 32.8%.
In 1950, the cow and buffalo population were 196 million and had increased to
247 million by 1985. It has reached above 300 millions in 1994. The country has the
largest cattle and buffalo populations in the world accounting for more then sixth of
the worlds cow and more than one. Half of the worlds buffalo population.
In 1988, the human population was about 800 million and has been growing at
2.2% per annum such a large human and cattle populations has to be sustained on a
limited land miss, which has led to intensive forming. The serious constraint that the
Indian agricultural faces is the problem of disguised unemployment.
And the problem of disguised unemployment and the resultant problem of
poverty and inequality of income distribution. Hence development plans have to
prepare for efficient utilization of human cattle
productivity

of

land

resources

for

maximum

for creating employment opportunities channeling the

50

ECE

M.B.A PROGRAMME
unemployed and under- employed in to productive works, dairy farming is much
important in serving of agriculture laborers and the people who migrated from rural to
urban areas in search of employment opportunities throughout the year. He dairy is
that gestation period is very short and the benefits of development activities can be
reaped soon.

ADVANTAGE OF DAIRY INDUSTRY

Strong procurement.
Infrastructure.
Presence of highly skilled man power and cheap labor.
Large number of processing and allied facilities.
Milk production pattern.

INDIA: WORLDS LARGEST MILK PRODUCER

India has become the worlds no.1 milk producing countries, with output in 19992000 (marketing year ending March 2000) forecasted at 78 million tones. United States,
where the milk production is anticipated to grow on pas with U.S at & 71 million tones. The
world milk products in 1988 at 557 million tones would continue the steady progress in
recent years. Further more, the annual rate of growth in milk production India is between 5-6
percent, against the worlds at 1% the steep rise in the growth pattern has been attributed to a
sustained expansion domestic demand, although per capital in modest-at 70 kg of milk
equivalent.

MAJOR COMPETITORS
51

ECE

M.B.A PROGRAMME

In the year of 1974, Mr. Jagjivandas Patel, founder of Vijay Dairy and Sweets, has
started selling milk in a small pot in small town of Surat. After that his four sons have
developed the business from one pot to three big outlets in Surat city. In 1981, the group has
opened its first such outlet on busy road of Adajan Patiya of Surat City. Local people
appreciated quality of all products sold by the outlet and asked for establishment of more
outlets in other areas.
After that word-of-mouth was the only advertisement tool for gaining popularity in
across the city. In the year 1990, the group opened its second outlet for taste lover citizens of
Surat at Palanpur Patiya area of the city. Revenue from this outlet has soon crossed revenue
earned by the first outlet. In the year 1997, the group stated its third selling point at Vishal
Nagar, New Sardar Bridge. With time, the company has changed its strategy, and started
innovations in preparing sweets and dairy products. Today at Vijay Dairy and Sweets, you
will find traditional sweets of all regions of India. NRI customer base is also increasing dayby-day. For them we serve our milk and milk products in the best packaging material so that
the product maintains its original taste and quality for longer period. The promoters are used
to travel across India and bring product of that region under the roof of Vijay Dairy and
Sweets.

Sri Vijaya Visakha Milk Producers Company Limited., [Visakha Dairy],

Visakhapatnam in Andhra Pradesh, is having thier procurement operations in Costal Andhra
districts, viz, Srikakulam, Vizianagaram, and Visakhapatnam & in East Godavari and Sales
operations across india.
The Government after considering dairying as one of the instruments for bringing
socio economic development in the rural areas, To overcome this object, the Dairy was
52

ECE

M.B.A PROGRAMME
started in the year 1973 with handling capacity of 10000 liters per day in Visakhapatnam
under cooperative act with milk procurement operations in 50 villages. Now the Dairy is
procuring the milk from 2744 villages in Costal Andhra areas by serving 2,07,925 milk
producers.
The Dairy was converted to Mutually Aided Cooperative Act-1995 in the year 1999 as
Srivijayavisakha District Milk Producers Mutually Aided Cooperative Union' and the Dairy
was converted to Company Act-1956 with effect from 06.01.2006 as SriVijayaVisakha Milk
Producers Company Limited. The Procurement and Production graph growth is increasing
year after year with more participation of the rural farmers. Now the Visakha Dairy is one of
the fastest growing Milk & Milk Products Manufacturing organizations.

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 divisions viz.,
Dairy, Retail, Agri, and Bakery under its flagship Company Heritage Foods (India) Limited
(HFIL). The annual turnover of Heritage Foods crossed Rs.1096 crores in 2010-11.
Presently Heritages milk products have market presence in Andhra Pradesh,
Karnataka, Kerala, Tamil Nadu, Maharastra and Orissa and its retail stores across Bangalore,
Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and
these are backbone to retail operations and the state of art Bakery division at Uppal,
Hyderabad, and AndhraPradesh.
In the year 1994, HFIL went to Public Issue to raise resources, which was
oversubscribed 54 times and its shares are listed under B1 Category on BSE (Stock Code:
519552) and NSE (Stock Code: HERITGFOOD)

COMPANY PROFILE
SANGAM DIARY LIMITED

53

ECE

M.B.A PROGRAMME
Under the operation flood1 program, Guntur district was selected to develop
dairy activities on Amul pattern. Keeping in view the 3 tier system of village dairy cooperation society at village level managed by the elected representatives of producers, a cooperative societies and co- operative federation at state level which is apex body. The Guntur
district milk producers co-operative Union Ltd., was registered under Andhra Pradesh cooperative societies act 1964 with Registration No. 836 DD, dated 23-02-1977 with 81
affiliated milk producers co-operative societies.
Presently 840 milk producers co-operatives and following in the area of Guntur
District milk producers co-operative Union limited. They are supplying a maximum quality
of 2.2 lakhs liters milk per day during flush season. The Board of management of the union
companies of 12 elected Board of directors from the village dairy cooperative societies and 5
exoffico board directors comprising of and representative each from Andhra Husbandry.
Register of cooperation of the union. The management of the dairy was handed over to the
Guntur district milk producers cooperative union by the A.P dairy development co-operation
on 30-08-1978.

FARMER CONTRIBUTION

54

ECE

M.B.A PROGRAMME
Milk producers of Krishna, Guntur and west Godavari District have generously
donated for the purchase of 34.46 acres of land at a cost Rs.1.5 lakh before initiated this
project during 1973-74. Further 53 acres of land was purchased for location of technical
inputs and staff quarters.

ANAND PATTEREN
The Anand pattern advocates an integrated approach to the dairy development
under co-operation sector by providing remunerative price and creating assured market to the
farmers produce and also sage guards the interests of milk produce by preceding necessary
technical inputs for the rapid progress of dairy industry. In this pattern, the real involvement
of produces are seen, where the village dairy cooperative societies as well as District union
are managed by producers themselves.
The producers have got a say in determining the price of commodity they
produce. This is really a fantastic approach and boon on the farmers.
The new outlook in Anand pattern is to produce incentive (input) to the farmer to
reduce the production cost and educating the rural milk producers in cleam milk production,
maintain good cattle by improved practices of breeding, feeding and management through
farmers induction program is also part and parcel of Anand pattern.
Viability of the village dairy cooperative will also be taken care in this pattern.

SHARE CAPTIAL
Authorized share capital of SANGAM DAIRY 10,00,00,000-PAID UP SHARE
CAPTIAL2,00,34,100.00 No. of shareholders in Sangam Dairy 591. These are only milk
producers co-operative unions.

MANAGEMENT
Board of Directors is all in the matters of the company. The managing Director is
authorized by best and makes him responsible for decision-making on immediate as well as
long-range policies.

BOARD OF DIRECTORS:
55

ECE

M.B.A PROGRAMME
Board of Directors
Founder

Sri. Y. Venkatarao

Sri. D. Narendra Kumar Chairman,

M.L.A.,

Sri. K. Gopinath Managing Director

Sri Katuri Koteswar Rao

Attota

Director

Sri Maridu Venkateswara Rao

Nandiraju Thota

Director

Sri Vattikuti Srikrishna Prasad

Mandru

Director

Sri Kamchati Lakshmaiah

Mulakaluru

Director

Sri Narra Venkateskrishnaprasad

Dhulipudi

Director

Sri Gadipudi Rama Rao

Thumrukota

Director

Sri Gadipudi Rama Rao

Potluru

Director

Sri Valiveti Dharmarao

Yamdrayi

Director

Sri Ramineni Ramarao

Salapadu

Director

10

Sri Parvathanani Brahmanandam

Yedugumpallem

Director

11

Sri Gogineni Dhanunjaya Rao

Esukapalli

Director

12

Sri Sakamuri Venkateswara Rao

Pedarvuru

Director

56

ECE

M.B.A PROGRAMME
13

Sri Borru Ramarao

Mulukuduru

Director

BANKERS
Guntur District central Co-operation Bank Limited., Tenali, to provide working capital to
Sangam Dairy. SBI (ADB) Canara Bank, Andhra Bank, has provided loans and advances,
over draft and other type of credit.

OPERATION FLOOD PROFRAM

OPERATION FLOOD-1:
Dairy plant handling capacity 1.5 lakh liters of milk per day besides facilities to
manufacture 12 M.Ts of milk powder, 8 tones of butter, 2 tones of ghee and case in from sour
skin milk was established with a cost of Rs 2.88 crores.

OPERATION FLOOD-2:
Under of-2, the diary processing capacity had been increased from 1.5 to 2.5 lakh liters per
day with an expenditure of Rs 3.5 crores.

ASEPTIC PACKING STATION

Popularly

known as Terra pack milk was established at his dairy with a cost of 2.5

crores. With this, Milk can be packed in a special type of laminated paper bags. Which
preserve milk for months at room temperature?

OPERATION FLOOD-3:
Rs. 2.5 crores were allotted to this milk shed for expansion improvement in dairy
plant, chilling centre and technical inputs activities.
All the above finance is 70% loan and 30%grant. In addition to this shed for
expansion/improvements in dairy plant chilling centers and technical inputs activities.
All the above finance is 70% loan and 30%grant. In addition to this, our Government
gave an amount of Rs 81 lakh towards the construction of quarters, technical inputs building

57

ECE

M.B.A PROGRAMME
which is treated as share capital from over Government. The total assets of this dairy as on
today are Rs 12.6 crores.

PRODUCTS OF SANGAM DAIRY:

Essentially the union procures milk from various collection centers located in Guntur
and Prakasam districts. The procured milk will be processed in the dairy and then converted
into different products apart from fluid milk.

The union is meeting the fluid milk

requirements in Guntur town and other towns in Guntur district on an average they sell
40,000 liter per day with in Guntur district.
Under the national milk grid, the milk has been supplied to Mother dairy in Calcutta
through rail milk tankers since 1980.
The milk products of dairy are as follows

Milk butter.

White butter.

Ghee

Skimmed milk powder.

Doodh peda.

Shakthi milk

Table butter.

Whole milk.

Basundhi.

Khala Khanda.

Milk cake.

58

ECE

M.B.A PROGRAMME

59

ECE

M.B.A PROGRAMME

TECHNICAL INPUT AND MILK ENHANCEMENT PROGRAM

Various technical inputs were offered to milk producers in phased manner for milk
production enhancement and they are classified as follows

1. ARTIFICIAL INSEMINATION SERVICES:

We are having sperm production in our dairy. We are maintaining 20 Murrah Bulls for
semen production purpose. We are producing 50,000 does of murrah semen every year. We
are running 120 artificial insemination centers at societies with our society workers after
giving them training in veterinary first Aid and artificial insemination.
We have initiated action to strength them our semen bank to produce 1, 00, 00 does of
murrah semen every year from 1993 on wards. Murrah breeding Bulls are also distributed to
some of the societies where there is no possibility of opening unions A.I center. Our union is
providing revises, first Aid equipment to the milk producers Co-operative society on free of
cost.

60

ECE

M.B.A PROGRAMME
In additional to the above facilities, to create interest in artificial insemination work
among workers, this Union is paying incentive to the artificial insemination workers for each
A.I. Does Rs3/ for each confirmed pregnancy where veterinary institution are not there.

2. ANIMAL HEALTH:
We are arranging veterinary Health care facility by the two ways.
(a) Veterinary first Aid and artificial insemination at village level through society
workers by giving them 90 days training in veterinary first Aid and artificial
insemination work at village level union is providing all medicines and semen
cost.
(b) We are giving Veterinary Aid to the Milk producers through regular veterinary
routes. We are covering each society where there is no Isu/VII, ONCE IN 20
YEARS. We are operating 7 regular veterinary routs with different Head Quarters
namely Sangam Dairy Repalle, Bapatla, Sattenapalli, Narasaraopet, Vinukonda
and Gurazala.

3. FODDER DEVELOPMENT PROGRAM:

Under fodder development program union program union raised in its campus
nearly 15 acres of perennial like parts HY.NAPIRS Co-I & Co-II for distribution to
the milk producers at free of cost. Every year we are supplying para grass slip for
about 100-0. We are supplying different varieties of fodder seeds like M.P. Chari, pc23, pc-9, cow pea to our milk producers at 30% subsidy. Every year about 50M.Ts of
seed were being distributed to societies.

4. FODDER SEED MULTIPLICATION PROGRAM:

We have taken up seed multiplication program for the past seven years by supplying
good variety of seeds to our milk producers and raising in farmers fields and encouraging
seed multiplications for our mild producers and the excess stock are being supplied to the
other. Milk unions of the state and outside the state also. Now we are in a position to supply
the fodder seeds at heavy rates to our milk producers by avoiding purchase of seed from
outside agencies.
61

ECE

M.B.A PROGRAMME
Different varieties like M.P. Chari, SSG-593, Pc-23, Pc-9, and Haryana Chari 139 are
taken under seed multiplication program.

5. SILVIPASTURE SCHEME:
We have also taken up schemes like silivpasture. Under this scheme, so far we
distributed an amount of Rs. 196180/- Under kissan van, this union has taken up tree growing
in farmers fields from 1986-87 onwards divining 1000/- as full subsidy pee acre who are
growing trees like subabul, casuarinas, Babul, fruit trees and raising fodder crops also in
between the trees under the central government scheme.

6. DISTRIBUTION OF CHAFF CUTTERS:

We have purchased 140 chaff cutters from Ludhiana and supplied to the milk
producers with 50% subsidy for better utilization of green fodder. The chaff cutters are of
dual purpose, which can be operated by manual or power.

7. ENRICHMENT OF PADDY STRAW WITH UREA:

We have also taken up the scheme for enrichment of paddy straw with urea. For
this purpose, where the farmers come forward for enrichment of paddy straw, we providing
necessary infrastructure and

urea required for the program on free of cost to the milk

producers.

8. CATTLE FEED:
The cattle feed plant with installed capacity of 100 M.Ts/day collected feed was
constructed by N.D.D.B Anand on turn key basis under the action No. 7 of operation flood
program where the feed is produced by semi-automatic reweighing with a provision of
mechanical devices to separate and take out the uneven and unwanted Harmful Particles from
the raw materials and feed, during the process itself with on automatic begging section.
And the material in being conveyed mostly by mechanical convening system. The
plant has been producing the collected cattle feed, since 1982. Along with pellet cattle feed,

62

ECE

M.B.A PROGRAMME
the plant has produced rabbit and fish feed. There are about 40 workers including supervisory
staff working in the plant.

9. BY-PASS PROTEIN FEED:

Now, we are producing a special feed called by-pass protein feed and ours is one
of the by-pass feed producing cattle feed plants in India and only one plant in Andhra Pradesh
as the bypass protein feed has got the superior quality to conventional type of concentrated
feed.
a) It directly meets the protein requirements of high lactating animals.
b) It prevents body protein break down during peak location and this maintains body
weight.
c) When absorbed as amino acids it stimulates more dry matter in take especially from
rough ages which might contributes in attribute in enhance milk production by
supplying additional energy.
d) The feed efficiency is increased with the protein conversions efficiency increased
83% in milk animals.
e) It reduces feeding cost and production cost of milk is reduced considerably.
f) And it helps in utilized the feed most judicious and reduced total protein requirement.
g) The bulk of feed requirement is reduced 30-40% as compared to conventional type of
concentrates.

10. DISTRIBUION OF MINERAL MIXTURE OF SUBSIDY BASIS:

We are manufacturing Mineral Mixture in our cattle feed plant and supplying the
same to the Milk producers of Guntur District with 50% subsidy. At present we are
supplying Mineral Mixture at Rs.5.25% per Kg. for this purpose, we have allotted Rs.1.0 laks
in the 1992-93 Union Budget.

11. CATTLE INSURANCE:

As a discretionary input, union has undertaken Milch Cattle insurance in cattle
insurance in cattle of our milk producers with a concessional premium 3.4% rate. Out of
63

ECE

M.B.A PROGRAMME
premium amount 1/3 is born by union, 1/3 is born by society and the milk producer has to
bear only. 1/3 of premium. We are insuring 5000 to 6000 milch animals every year.
Our union is also providing a matching contribution to the newly constructed Society
building as follows:
a) It the total value of the building will be above Rs.60, 000/- Union subsidy in
Rs.15,000/b) If the total value of the building will be above Rs. 30,000/- below Rs.60, 000/Union subsidy in Rs. 10,000/-.
c) If the total value of the building will be below Rs.30, 000/- Union subsidy is Rs.5,
000/- Union is also extending the facility of grant Rs.5, 000/- to the society.
Building towards repair work, where ever the society building is in need or repair and
their financial position is not sound to meet the repair expenditure.

12.

CROSSBRED HEIFERS SUBSIDY SCHEME:

To encourage cow Milk production in our milk shed, it decided to distribution 900

crossbred heifers to the Milk producers to subsidize rated in the year 1992-93. For this
purpose, Rs. 7.2 lakh are allocated as subsidy for these 900 crossbred heifers
For each crossbred heifer Rs. 600/- will be given as subsidy from the union and the
rest of the cost has to be born by the concerned Milk producers to whom we will be given the
crossbred heifer.
Further, it is also decided to provide cattle feed for these 900 crossbred heifers rates
for a span of 5 months. Every month one begs of cattle feed will be given to each heifer was
shown in the budget for this purpose. Already crossbred heifers were distributed in
Vetapalem, Yadlalpally, Krapaand, Veluru villages. Still the process is going on to purchase
the rest of crossbred heifers.

13. DISTRIBUTION OF CROSSED COWS:

64

ECE

M.B.A PROGRAMME
We have planned to distribute ones thousand crossbred cows to our Milk producers
under direct loaning programmed with the help of bankers in 1993-94.

14. TRAINING PROGRAMME:

We have get full pledged training center for importing, 90 days duration in veterinary
First Aid Artificial Insemination to our society workers, 30 days training programmed to our
societies paid secretaries and 5 days training to testers in clean Milk production, Milk testing,
society record maintenance. We are also giving three training to the managing committee
members of village dairy Co-operative Societies and Milk producers at our Dairy on clean
Milk production and importance of other technical inputs activities like breeding feeding
management aspects. We have also given training to women extension supervisors for 90
days in milk producers to dairy to show the Dairy the explain about its various activities
under farmers induction programmed.

15 .OTHER INCENTIVES:
In addition to the above, our union is supplying all testing equipment and stationary
required by our societies and collection centers on no profit loss basis to facilitate Milk
producers to get standard equipment and for maintenance of uniform records. A monthly
news bulletin namely sangam samacharam is being circulated to all the societies on free of
cost. We are publishing information on statutory aspects of co-operative act and technical
inputs like fodder development animal health care and cattle feed etc.

ASEPTIC PACKING STATION:

Aseptic Milk or sterilized long shelf life milk is a unique way of milk reservation,
where the milk is packed in disposable laminated paper cartoons with 3 months shelf life. The
essential feature or this pack is to provide milk packing station was established initially
during the year 1986 with an estimated cost of Rs.2.5 crores the station equipped to pack milk
in packs with 15 days shelf earlier have been replaced with machinery to pack milk with 3
months shelf life. The existing capacity is 50,000/Lts/day. After over coming the initial set
65

ECE

M.B.A PROGRAMME
backs with regards to market identification etc., now the product in making a smooth sailing
in the cities of Hyderabad, Visakhapatnam and Calcutta. Besides, the tetra pack milk has been
popularized in the milk deficit coal belt area of Bhadrachalam, Kothagudem Etc., There are
plans for further market expansion in Calcutta and Bangalore cities.
Aseptic station not only suitable to pack milk, but also pack novelty products like
sterilized stream, double milk with high fat and high solids not fat depending upon the need
of the consumers. Trails are under process for the introduction of these new products. In
addition to the existing VI Liter tetra pack system, Sangam Dairy is going to introduce very
shortly 1 liter Brick shape. The capacity of the machine is 2,500 liters per hour. The packs
goes tray packers goes tray packer where 6x2 packs are packed in a carton. This carton goes
to shrink wrapping machine where it is covered with polyethylene film.
When compared to the existing tetra pack system, tetra brick is easy to handle in
shortage, transportation and exporting to far of countries. In a combination of tetra pack and
tetra bricks, the production volume will increase and facilities for profitable operation of the
activity. Contacts to export to Bangladesh and Dubai are in process and enquire are coming
from some more countries for purchasing tetra brick milk.

MILK MARKETING:
This union is meeting the fluid milk requirement in Guntur town and other towns
Guntur District. On an average, we are selling 40,000 liters per day with in Guntur district.
Was also marketing tetra pack milk in Guntur district, Vizag, Calcutta, Madras and Goa Belt?

NATIONAL MILK GRID:

We are supplying whole milk to mother dairy, Calcutta through rail milk tankers
since 1980 through rail milk tankers.

66

ECE

M.B.A PROGRAMME
DATA ANALYSIS & INTERPRETATION

1. How long have you been for this company?

Table: 1.1

Description

No of respondents

Percentage

One year/less than one year

15

15

One to Three years

18

18

Three years above

67

67

Total

100

100

INTERPRETATION:
From the above table most of the employees were worked from the above 3 years and
remaining employees from 1 to 3 years. On basis of this information most of the
employees were satisfied with this company working environment. The survey reveals
that it had the best working environment.

67

ECE

M.B.A PROGRAMME

Chart No: 1.2

68

ECE

M.B.A PROGRAMME

2. How do you approach this company for selection?

Table: 2.1

Description

No of respondents

Percentage

Reference

15

15

Direct submission of Bio-

18

18

Mail

67

67

Advertisement

100

100

data

Total

INTERPRETATION:
From the above table 67%of the employees were approached the company through
the reference and remaining 33% of the employees were approached by the other sources
like advertisement, mail, direct submission of bio-data.

69

ECE

M.B.A PROGRAMME

Chart No: 2.2

70

ECE

M.B.A PROGRAMME

71

ECE

M.B.A PROGRAMME

3. Do you face any test at the time of selection?

Table: 3.1

Description

No of respondents

Percentage

Yes

75

75

No

25

25

Total

100

100

INTERPRETATION:
From the above table 75% of the employees were faced the tests regarding the
selection procedure and remaining 25%of the employees are not faced any tests because
72

ECE

M.B.A PROGRAMME
of that they were be selected through reference directly. From the above information they
may gave more preference to testing of the employees talent and ability through
interviews.

Chart No: 3.2

73

ECE

M.B.A PROGRAMME

4. Do you feel that the selection procedure is suitable to asses the candidates
talent/ ability?

Table: 4.1

Description

No of respondents

Percentage

Agree

30

30

Disagree

25

25

Strongly Agree

20

20

Strongly Disagree

25

25

100

100

TOTAL

INTERPRETATION:
Most of the employees have accepted that the selection procedure is the correct
process to select potential candidates for the required job. Here the 85% of the employees
are accepted and the remaining 15% of the employees are not accepted for this .

74

ECE

M.B.A PROGRAMME

Chart No: 4.2

75

ECE

M.B.A PROGRAMME

5. Do you face any problems during selection procedure?

Table: 5.1

Description

No of respondents

Percentage

Agree

30

30

Disagree

20

20

Strongly Agree

20

20

Strongly Disagree

30

30

100

100

TOTAL

INTERPRETATION:
From the above table 98% of the employees were not faced any problems at the
time of selection but the 2% of the employees were faced the problems( most of the time
waiting for the selection process). Finally the company may had followed the good
environment for the selection process.

76

ECE

M.B.A PROGRAMME
Chart No: 5.2

6. Have you received any feed-back of your performance selection process?

77

ECE

M.B.A PROGRAMME

Table: 6.1

Description

No of respondents

Percentage

Yes

70

70

No

30

30

Total

100

100

INTERPRETATION:
From the table 70% of the employees receiving the feedback regarding of their
performance, remaining 30% of the employees are not receiving the feedback. On the
basis of this information company will help to the employees to recovering of their
strengths and weakness.

78

ECE

M.B.A PROGRAMME

Chart No:6.2

7. Are you satisfied with the selection procedure?

79

ECE

M.B.A PROGRAMME

Table: 7.1

Description

No of respondents

Percentage

Highly satisfied

25

25

satisfied

35

35

dissatisfied

15

15

Highly dissatisfied

25

25

Total

100

100

INTERPRETATION:
From the above table 85% of the employees are satisfied and the 15% of the
employees are not satisfied with following of this selection procedure. Finally the
selection procedure is the correct for to selecting the potential candidates for the required
job.

80

ECE

M.B.A PROGRAMME
Chart No: 7.2

8. Is there any recruitment cell at your Company?

81

ECE

M.B.A PROGRAMME

Table: 8.1

Description

No of respondents

Percentage

Yes

100

100

No

100

100

Total

INTERPRETATION:
From the above table the most of the employees agree with the company having
recruitment cell.

82

ECE

M.B.A PROGRAMME
Chart No: 8.2

9. Through which source did you recruited?

Table: 9.1

Description

No of respondents

Percentage

67

67

Internal

83

ECE

M.B.A PROGRAMME
External

33

33

Total

100

100

INTERPRETATION:
From the above table the 67% of the employees were approach the company
through the internal sources. And 33% of the employees approach through the external
sources.

Chart No: 9.2

84

ECE

M.B.A PROGRAMME

10. Which type of advertisement tools are followed by the company?

85

ECE

M.B.A PROGRAMME
Table: 10.1

Description

No of respondents

Percentage

News papers

90

90

Journals

Mails

10

10

Total

100

100

INTERPRETATION:
From the above table the 90% of the employees felt that the company using the
advertisement tools is using the newspaper. Remaining 10% of the employees agree with
the mails.

86

ECE

M.B.A PROGRAMME

Chart No: 10.2

11. What factor they consider while selecting the employee?

Table: 11.1

87

ECE

M.B.A PROGRAMME
Description

No of respondents

Percentage

Experience

25

25

Qualification& skills

58

58

Reference

17

17

Total

100

100

INTERPRETATION:
From the above table maximum 58% of the employees felt that the company is
mostly consider in the factors of educational qualification &communication skills.

88

ECE

M.B.A PROGRAMME
Chart No: 11.2

12. What method did you face in the selection process?

Table: 12.1
89

ECE

M.B.A PROGRAMME

Description

No of respondents

Percentage

Application screening

Written examination

Group discussion

Interview

100

100

Total

100

100

INTERPRETATION:
From the above table all of the employees are face interview method in the selection
process

Chart No:12.2

90

ECE

M.B.A PROGRAMME

13. What type of interview they are conducted?

91

ECE

M.B.A PROGRAMME
Table: 13.1

Description

No of respondents

Percentage

100

100

Informal

Stress

Total

100

100

Formal

INTERPRETATION:
From the above table all of the employees are face the formal interview.

92

ECE

M.B.A PROGRAMME
Chart No: 13.2

93

ECE

M.B.A PROGRAMME

14. Did you attended any training section after completion of the recruitment
and selection process?

Table: 14.1

Description

No of respondents

Percentage

Yes

75

75

No

25

25

Total

100

100

INTERPRETATION:
94

ECE

M.B.A PROGRAMME
From the above table shows the 75% of the employees are attended the training
section after the completion process.

Chart No: 14.2

95

ECE

M.B.A PROGRAMME

15. What type of method do you suggest on selection?

Table: 15.1

Description

No.of
respondents

Percentage

Campus interviews

25

25

Recruitment agencies

Reference

25

25

Recruiting factory

50

50

Total

100

100

INTERPRETATION:

96

ECE

M.B.A PROGRAMME
The above table shows that maximum 50% of the employees are suggest the
recruitment at factory gate remaining employee are suggest campus interviews and
reference.

Chart No: 15.2

97

ECE

M.B.A PROGRAMME

FINDINGS
1. From the study it is observed that, the company is having recruitment cell.
2. The study findings indicate that, the company is following the internal and external
sources for recruit the candidates.

3. The findings revealed that, the company is giving more preference to the
advertisement to recruit the candidates.

4. From the study it is observed that, the company is mostly considering the factors of
educational qualifications and communicational skills.

5. The study findings indicate that, the company is following interview method for
selecting the candidates.

6. The findings revealed that, the company is using the tool problem solving techniques
for to assess the candidate stability and talent for the required job.

7. From the study it is observed that, the company is providing the training session after
completion of selection procedure.

8. Majority of the employees satisfied with the selection procedure.

9. Most of the employees are satisfied with the recruitment cell.
10. The company follow the recruitment and selection.

98

ECE

M.B.A PROGRAMME

SUGGESTIONS
1. It is suggested that, the company should provide complaint and suggestions boxes
towards continuous improvement of organizational objectives and as well as quick
response for employees problem.
2. The findings of the study observed that the company did not maintain any art media
so it is better to maintain the advertising media for recruit the candidates.
3. The company is not taking any feed back about the recruitment and selection process.
4. It is better to get the feed back from the selected candidates after completion of
recruitment and selection.
5.

Conducting of the more tests than these/ interviews, group discussion, written tests
more powerfully for collect the talents of the candidates.

6. It is better to maintain the meritorious scheme at your company.

7. Improve better recruitment teams in Sangam Dairy.

99

ECE

M.B.A PROGRAMME

CONCLUSION
After the findings have been enumerated the following conclusions have been drawn.
By these findings we can say that SANGAM DIARY LTD is definitely providing better
Recruitment and Selection process. But in some areas it can not satisfy employees and then
needs. Management should concentrate and work on those areas which employees are not
satisfied.
Finally it better for any organization to treat the employees as assets of the company.
So employer should always interact with the employees.

100

ECE

M.B.A PROGRAMME

BIBLIOGRAPHY
BOOKS:
Human Resource Management

L.M.Prasad

Human Resource Management

P. Subba Rao

Human Resource Management

k. Aswathappa

WEBSITE
www.sangamdiary.com
www.recruitment&selection.com
www.edx.org.com

101

ECE

M.B.A PROGRAMME

QUESTIONNAIRE
Name

Designation

Gender

: Male ( )/ Female( )

Age

Department

1.

From how much years have you been working in the company?
A) 0-1 y

2.

[ ]

B) 1-3 y

[ ]

C) Above 3 y [ ]

How do you approach this company for selection?

A) Advertisement [ ]

B) Reference

D) Direct submission of bio-data

[ ]

C) Mail

[ ]

[ ]

3. Do you face any test at the time of selection?

A) Yes

[ ]

B) No

102

[ ]

ECE

M.B.A PROGRAMME
4. Do you feel that the selection procedure is suitable to assess the candidates
Talent / ability?
A) Agree

[ ]

C) Strongly Agree

B) Disagree

[ ]

[ ]

D) Strongly disagree [ ]

5. Do you face any problems during selection procedure?

A) Agree

[ ]

C) Strongly Agree

B) Disagree

[ ]

[ ]

D) Strongly disagree [ ]

6. Have received any feed-back of your performance during selection process ?

A) Yes

[ ]

B) No

[ ]

7. Do you satisfy with the selection procedure?

A) Satisfied

[ ]

B) Highly Satisfied

[ ]

C) Dissatisfied

[ ]

D) Highly Dissatisfied [ ]

Is there any recruitment cell at your company?

A) Yes

[ ]

B) No

[ ]

8. Which source did you follow for recruitment?

A) Internal

[ ]

B) External

[ ]

9. What is the major sources for Identification candidates for

Recruitment?
A) News paper

[ ]

B) Internet
103

[ ]
ECE

M.B.A PROGRAMME
C) Consultancies

[ ]

D) All the above

[ ]

11. What factor they consider most while selecting the employees?
A) Experience [ ]

B) Qualification [ ]

D) Reference [ ]

C) Skills [ ]

E) All the above [ ]

12. What method did you face in the selection process?

A) Application screening [ ]
C) Group discussion [ ]

B) Written examination [ ]

D) Interview [ ]

E) All the above [ ]

13. What type of methods do you suggest on selection?

A) Formal

B) Informal

C) Stress

D) Panel

14. Did you attend any training session after completion of the recruitment and selection
process?
A) Yes [ ]

B) No [ ]

15. What type of the method does suggest selection?

A) Campus interview

B) recruiting agenesis

C) references

D) recruiting at factory gate

104

ECE