Organizational Study at

MRK INDUSTRIES

Submitted in Partial Fulfillment of the Requirements of BangaloreUniversity for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

by Nandan M S REG. No: 10SKCMA033

Under the Guidance of Prof.Ramesh

EMPOWERING MINDS

Acharya Institute of Management & Sciences

1st Cross, 1st Stage, Peenya Industrial Area Bangalore 560 058

2010 - 2011
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DECLARATION

I, Nandan M S, hereby declare that this organisation study reportis based on the original study conducted by me under the guidance of prof. Ramesh.

This report has not been submitted earlier for the award of any degree / diploma by BangaloreUniversity or any other university.

Place: Bangalore Date:

(NANDAN M S) 10SKCMA033

CERTIFICATE FROM THE GUIDE

Certified that this organisation study report is based on the original study conducted by NANDAN M S of lll semester MBA under my guidance. This report has not formed the basis for the award of any other degree / diploma by BangaloreUniversity.

Place: Bangalore Date: (Prof. RAMESH)

Acharya Institute of Management & Sciences

1st Cross, Peenya I stage, Bangalore - 560058

CERTIFICATE

Certified that this organisation study report is based on the study conducted by NANDAN M S of ll semester MBA under the guidance of Prof.Ramesh.

This report is based on the original study undergone and has not formed the basis for the award of any other degree / diploma by BangaloreUniversity or any other university.

Prof. Ramesh Faculty, Dept of MBA Place: Bangalore Date:

Dr. Kerron. G. Reddy Principal, AIMS Place: Bangalore Date:

AKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals. I would extend my sincere thanks to all of them. I am highly indebted to Mr.YOGANAND, MANAGER OF MRK INDUSTRIES, Bangalore for his guidance and constant supervision as well as for providing necessary information regarding the project and also for his support in completing the project. I am extremely thankful to Prof.Ramesh-internal faculty guide under whose able guidance this project work was carried out. I thank him for his continuous support and mentoring during the tenure of the project. I would like to express my special gratitude and thanks to industry persons and others who helped me for giving me such attention and time.

1.1INTRODUCTION
Industry is the segment of economy concerned with production of goods. Industry is a term which applies to entrepreneurs who are engaged in manufacturing and production on a large scale. The development of industries is very important for a country like India which has mainly rural economy. The industrial sector continues to remain an integral part of Indian economy with significant contribution to GDP, industrial production and employment generation in India. The traditional industries are more labor intensive than capital intensive whereas the modern industries are more capital intensive. The traditional industries use old machinery and their output is also very low. But the modern industries uses modern machinery and the quality of their output is also very good. This sector generally takes the output of the primary sector and manufactures finished goods. These products are then either exported or sold to domestic consumers and to places where they are suitable to use by other businesses. This sector is often divided into light industryand heavy industry. Many of these industries consume large quantities of energy and require factories and machinery to convert the raw materials into goods and products. They also produce waste materials and waste heat that may pose environmental problems or cause pollution. Some economists contrast wealth-producing sectors in an economy such as manufacturing with the service sectorwhich tends to be wealth-consuming. Examples of service may include retail, insurance, and government. These economists contend that an economy begins to decline as its wealth-producing sector shrinks. Manufacturing is an important activity to promote economic growth and development. Nations that exportmanufactured products tend to generate higher marginal GDP growth which supports higher incomes and marginal tax revenue needed to fund the quality of life initiatives such as health care and infrastructure in the economy. The field is an important source for engineering job opportunities. Among developed countries, it is an important source of well-paying jobs for the middle classto facilitate greater social mobilityfor successive generations on the economy.

1.2INDUSTRY PROFILE INTRODUCTION OF DC MOTORS

DC MOTORS
Michael faraday is inventor of DC motors. Fabled experimenter Michael Faraday decided to confirm or refute a number of speculations surrounding Oversets and Ampere's results. Faraday set to work devising an experiment to demonstrate whether or not a current-carrying wire produced a circular magnetic field around it, and in October of 1821 succeeded in demonstrating this. Faraday took a dish of mercury and placed a fixed magnet in the middle; above this, he dangled a freely moving wire (the free end of the wire was long enough to dip into the mercury). When he connected a battery to form acircuit, the current-carrying wire circled around the magnet. Faraday then reversed the setup, this time with a fixed wire and a dangling magnet again the free part circled around the fixed part. This was the first demonstration of the conversion of electrical energy into motion, and as a result, Faraday is often credited with the invention of the electric motor. The Industrial Laminated Yoke range starting from frame 80 to 1250 with outputs of 0.75 to 3750 kW caters to the industry requirement of torques up to 1500K-Nm. The rugged and reliable higher range of motors are specifically designed for exacting duties in a hot and cold metal rolling mill drive, the sticky rubber mixer drive and continues duty cement kiln drive. These products come from an in house developed technology based on the best of world class international design and manufacturing concepts.

INTRODUCTION TO AC MOTORS
A Serbian inventor named Nikola Tesla was the one who identified the rotating magnetic field principal used in alternators and thus used the rotating and inducting electromagnetic field force to generate torque in rotating applications and machines. He used this principal in the design of poly-phase induction motor in year 1883.

Later on in the year 1885 Galileo Ferraris applied his great mind and roll back the concept and in turn in year 1888 he published his research paper to the Royal Academy of Sciences in Turin. And then started the what called Second Industrial Revolution in year 1888 when Teslas launched his motor and it made possible the efficient generation and long distance distribution of electrical energy by the use of alternating current transmission system. Before this all concept were based on non-efficient homo-polar motor. A man by the name of MichailOsipovichDolivo-Dobrovolsky invented three-phase cage-rotor in year 1890 and this type of motor is now used for the majority of commercial applications.

The wide industrial range is from 0.12 to 20000 kW in frames 63 to 1250. Motors are offered in open type, closed type and heat exchanger type enclosures. Voltages range from 340 to 13800 V. Class F insulation being standard for all motors, class H insulation is also offered for low voltage motors. The rugged and highly reliable higher range motors are specifically designed duties. The modular design totally enclosed air to air heat exchanger is the first choice of industry for the more arduous applications. Compact rib cooled motors with unique internal cooling are used for duty atmospheres. for exacting

1.3COMPANY PROFILE
M R K industries is a partnership concern, Started in The Year 1994 BySri R. Krishnamurthy,SmtRajeswari Krishnamurthy andSmtMangalaGowramma Mr. R. Krishnamurthy is the Managing partner ofMRKindustries.

ABOUT MRK INDUSTRIES

M R K industries started in '1994, in(398)b, 7th cross, Peenya 1st stage Bangalore -58 as ancillary unit toKirloskar Electric Company. Initially started with five lakhsinvestment and turnover as 25 lakhs per annum.This unit is started withassembly of small motor parts like rotor and stator.The above unit is of 3/4 acre of land as per KARNATAKA SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION and adjacent land of KARNATAKA INDUSTRIALAREAS DEVELOPMENT BOARD. In addition to manufacturing in

1998.Kirloskar Electric Company issued authorizationfor servicing of motors.

The unit is manufacturing AC and DC motors from 1 HP to75 HP and servicing from 1 HP to 1500 H P. The turnover of the company is 2 crores with a profits of 45 lakhs per annum. At present in the existing unit there is no further land or building for further expansion.

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VISION :
M.R.K Industries will provide competitive, high quality electronic manufacturing services and individualized customer service, while encouraging employee creativity, motivation, and team work in a continuously improving environment.

Mission:
1. Develop customer relationships which provide services tailored to specific customer needs. 2. Provide employees with on-going training to enhance knowledge and skills, develop problem solving and decision making abilities, and offer opportunities for advancement. 3. Apply cost effective production systems and sound fiscal planning. 4. Utilize Continuous Process Improvement strategies to ensure the highest quality products and services.

Values:
1. Work closely with our customers to understand their needs and provide high quality products services. 2. Recognize the strengths of those we work with and focus our efforts on helping them to overcome their weaknesses. 3. Treat all individuals with courtesy, dignity, and respect. 4. Work together as a team to provide quality services. 5. Recognize the value of all employees in attaining our goals. 6. Work cooperatively to solve problems and develop solutions. Provide a work environment which motivates our employees and encourages independence, cooperation, respect, and humor.

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DISTRIBUTION CHANNELS
A path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the finalbuyer. Also called channel of distribution or marketing channel.

A channel of distribution consists of three types of flows: Downward flow of goods from producers to consumers. Upward flow of cash payments for goods from consumers to producers. Flow of marketing information in both downward and upward direction i.e. Flow of information on new products, new uses of existing products,etc. from producers to consumers.And flow of information in the form of feedback on the

wants,suggestions,complaints,etc. from consumers/users to producers.

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Distribution channels of MRK industries.

Producer - Customer:This is the simplest and shortest channel in which no middlemen

is involved and producers directly sell their products to the consumers. It is fast and economical channel of distribution. Under it, the producer or entrepreneur performs all the marketing activities himself and has full control over distribution. A producer may sell directly to consumers through door-to-door salesmen, direct mail or through his own retail stores. Big firms adopt this channel to cut distribution costs and to sell industrial products of high value. Small producers and producers of perishable commodities also sell directly to local consumers.

Producer-Retailer-Customer:-This channel of distribution involves only one

middlemen called 'retailer'. Under it, the producer sells his product to big retailers (or retailers who buy goods in large quantities) who in turn sell to the ultimate consumers. This channel relieves the manufacturer from burden of selling the goods himself and at the same time gives him control over the process of distribution. This is often suited for distribution of consumer durables and products of high value.

Factors taken into account while choosing distribution channel are: If the market for the product is meant for industrial users, the channel of distribution will not need any middlemen because they buy the product in large quantities. short one and may as they buy in a large quantity. While in the case of the goods meant for domestic consumers, middlemen may have to be involved. If the customers place order for the product in big lots, direct selling is preferred. But, if the product is sold in small quantities, middlemen are used to distribute such products. Products of low unit value and of common use are generally sold through middlemen. Whereas, expensive consumer goods and industrial products are sold directly by the producer himself.

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PROFILE OF Sri R. KRISHNA MURTHY

MANAGING PARTNER OF M R K INDUSTRIES

R Krishnamurthy is a mechanicalengineering graduate from VISHVESHWARAYA College of engineering Bangalore. Initially he joined state owned N G E F and served for 3 years. In1983,he joined Kirloskar Electric Company and served for 13 years in variouscapacities like senior engineer to Deputy General Manager. He voluntarilyresigned and started his own industry in 1994, He is a good entrepreneur,a social worker, He is also executive member of PEENYA INDUSTRIES ASSOCIATION and 'KARNATAKA SMALL SCALE INDUSTRIAL

ASSOCIATION.

DETAILS OF EXISTING UNIT

LAND

- 25,000 Sq. feet, 2/3 acres - 5lakhs.

BUILDING

-12,000 Sq. feet.

YARD AND MATERIAL HANDLING

- 3,000 Sq. feet.

LATHE

- 3 NOS 3.5 LAKHS

DRILLING MACHINE

- 2 NOS 2 LAKHS

ELECTRICAL OVEN COIL WINDING

-2 NOS 4.5 LAKHS

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MACHINES

- 3 NOS 2.5 LAKHS

BENCH GRINDER

- 2 NOS 25 LAKHS

HYDRAULIC PRESS

- 2 NOS 2.75 LAKHS

MILLING MACHINES

- 1 NOS

2LAKHS

TESTING EQUIPMENTS

-2 LAKHS

TOOLS AND ACCESSORIES

-6 LAKHS

OVER HEAD CRANE

- 8 LAKHS

FIXED CRANE

- 1 NOS 3LAKHS

EXPANSION OF AC, DC MOTOR MANUFACTURE

Now M R K industries having experience in the manufacture of AC and DC motors of all types. M R K industries wanted to its own make AC and DC motor and also export. There is lot of scope for this motors as they are required in, cement, steel ,paper, sugar industries and also in irrigation.

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MACHINERY REQUIRED FOR EXPANSION

LATHE - 4NOS 10 LAKHS

DRILLING MACHINE

- 2 NOS

4 LAKHS

HYDRAULIC PRESS

- 2 NOS

5 LAKHS

OVEN

- 2 NOS

10 LAKHS

TESTING EQUIPMENT

5 LAKHS

COIL WINDING MACHINE

- 3 NOS

20 LAKHS

COPPER STRIP DRAWING MACHINE

-1 NOS

3 LAKHS

ROLLING MILL

- 1 NOS

5 LAKHS

ELECTRICAL TURNANCE

- 1 NOS

5 LAKHS

BAND SAW

-1 NOS3 LAKHS

MILLING M/C

- 1 NOS

3 LAKHS

TOTAL

73 LAKHS

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Total cost of the project including working capital margin is 5.2 crores.

EMPLOYMENT
SKILLED - 180

UN SKILLED

- 60

SUPERVISORS

- 16

MANAGERS

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TOTAL

- 268

initial turnover of the for first two years will be 35 crores and gradually it will increased 85 crores. The company is interested in exporting its 50% of production since there Good demandfor AC and DC motors, throughout the world.

The existing unit is financed by KARNATAKA BANK.The KARNATAKA BANK assured to finance the expansion of the unit.

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MRK SUPPLIERS
LOTUS ENGINEERING BELAGUM

CMC COMMUTATOR

BELAGUM

VIVEGHA INDUSTRIES

BANGALORE

JAYA ENGINEERING

BANGALORE

AAREL CONTROL SYSTEM

BANGALORE

GUPTA ELECTRICALS

BANGALORE

VARHA ELECOMPS

BANGALORE

UNNATHI INDUSTRIES

BANGALORE

JALAN WIRES

DAMAN

S K METAL

BANGALORE

CABLE & CONDUCTORS

BANGALORE

HATIM ENGINEERS

BANGALORE

KAMAL ELECTRIALS

BANGALORE

KIRAN MECHANICALS

BANGALORE

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PRECISION WIRES INDIA PVT LDBANGALORE

PREMIER MACHINE COMPONENTS

BANGALORE

OBJECTIVES OF MRK INDUSTRIES To create job opportunities. Contribution towards HRD. Development of skilled personnel/workers. To have a proper work environment. To care about employee welfare. Maintain high standard of discipline. To give rewards and incentives for the best performance and work done. To give on- time delivery of products.

COMPANYS BANKER
The company banks with 2 banks namely Karnataka Bank in Yeshwanthapuram,Bangalore. ICICI Bank in Malleswaram,Bangalore.

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POINTS TO SUCCESS OF THE COMPANY

Skilled labor/force of the employees. Availability of raw materials in time. Availability of proper suppliers,transporters in region.

EXPORTS

EUROPE USA CHINA CHILE SOUTH AFRICA

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1.4PRODUCT PROFILE AC MACHINES

a) YOKE or BODY. b)STATOR STACK. c)CAGE ROTOR. d)ND COVERS. e)BEARING & BEARING CAP.

PROCESS OF AC MACHINES
STATOR STACK WILL BE PRESS TO ITS REQUIRED SIZE ANDWIND THE STATOR WITH THE PRE FORMED COILS AFTER WINDINGDO THE END CONNECTION TO ITS REQUIRED SPECIFICATION CHECK THESTATOR FOR ITS CONFORMATTON TESTS (ELECTRICALCHECK) AFTERELECTRICAL CHECK STATOR WILL GO FOR

IMPREGNATIONPROCESS

CAGE ROTOR ASSEMBLY

PRESS THE CAGE ROTOR STACK TO ITS SHAFT AND TURN THEOD OF THE CAGE ROTOR TO ITS REQUIRED DIMENSION ANDBALANCE THE ROTOR.

STATOR ASSEMBLY
CLEAN THE OD OF THE STATOR STACK AND PRESS TO REQUIREDYOKE (BODY) LOCKED THE STATOR W|TH THE HELP OF DOWEL PIN.

FINAL ASSEMBLY

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INSERT THE ROTOR TO ITS STATOR, ASSEMBLY THE END COVERSWITH REQUIRED HARD WARE.CHECK FOR IT S FREE ROTATION.

FINAL TESTING AND PAINTING

TEST

THE

MACHINE

AS

PER

ELECTRICAL

SPECIFICATION

FIXTHE

NAMEPLATE PAINTTHE MACHINE.

DC MACHINES
a)STATOR b)ROTOR c)ND COVERS d)BEARING & BEARING CAP e)BRUSH GEAR ASSEMBLY

PROCESS OF DC MACHINE STATOR ASSEMBLY

STATOR ASSEMBLY CONSIST OF MAIN POLE, INTER POLE& COMPENSATION WINDING MAIN POLE & INTER POLE WILL HAVEEPOXY BOBBIN. MAIN POLE AND INTER POLE WINDING WILL BE DONE ONTHE BOBBIN ASSEMBLE THE WIND BOBBIN TO ITS POLES WITH THE HELPOF HAMLDATE FIX THE MAIN POLE AND INTER POLE TO STATOREND CONNECTION WILL BE DONE FOR STATOR INSPECT THE STATORSEND THE ASSEMBLE STATOR FOR IMPREGNATION PROCESS.

ROTOR ASSEMBLY

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ON ROTOR SHAFT PRESS THE LAMINATION TO ITS REQUIRED SIZEAS PER ELECTRICAL SPECIFICATION PRESS THE COMMUTATORWITH THE HELP OF KEY CHECK FOR ITS CONCENTRICITY.

WIND THE ARMATURE CO|L (AS PER SPEC) WITH THE HELP OF WINDING MACHINE CLEAN THE RISER PORTIN, TAPING WILL BE DONE AT THE OVER HANG PORTION.

ROTORASSEMBLY

INSERT THE INSULATION TO ROTOR SLOTS MARK;THE SLOT PITCHAND COMMUTATOR PITCH WIND THE ROTOR WITH PRE FORMED COILSINSPECT THE ROTOR .SEND THE ASSEMBLE ROTOR FORIMPREGNATION PROCESS.

AFTER IMPREGNATION TURN THE COMMUTATOR TO ITS REQUIRED, CARRYOUT THE UNDER CUTTING BEVELING OPERATION

BRUSH GEAR ASSEMBLY

PREPARE THE BRUSH ROCKER ASSEMBLY FIX IT TO THE CE COVER.

BEARING AND BEARING CAP

CLEAN THE ROTOR SHAFT ASSEMBLE BOTH THE BEARING WITHITS BEARING CAPS(APPLIED THE LUBRICATION FOR BEARING )

FINAL ASSEMBLY

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INSERT THE ROTOR TO ITS STATOR , ASSEMBLY THE END COVERS WITH REQUIRED HARD WARE.CHECK FOR ITS FREE ROTATION .

FINAL TESTING AND PAINTING

TEST THE MACHINE AS PER ELECTRICAL SPECIFICATION FIX THE NAMEPLATE

PAINT THE MACHINE

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1.5COMPETITORS ANALYSIS
Competitor analysis is an important Part of the strategic planning process. Competitor has several important roles in strategic planning: 1. To help management understand their competitive advantages/disadvantages relating to competitors. 2. To generate the understanding of competitors past, present (and most importantly) future strategies. 3. To provide an informed basis to develop strategies to achieve competitive advantage in the future. 4. To help forecast the returns that may be made from future investments(e.g. how will competitors respond to a new product or pricing strategy?)

COMPETITORS OF MRK INDUSTRIES ARE:a) ASTEK electric co private ltd (peenya 2nd stage),Bangalore. b) Integrated electric co. private. ltd.(peenya 4th phase),Bangalore. c) Trans tech engineers(lavehelle road),Bangalore. d) Deepak electrical co.private.ltd(j.pnagar),Bangalore.
e) Advith industries (peenya 2nd stage),Bangalore.

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PROFILE OF OUR COMPETITORS

1. Astek electric co private ltd

It was started by G.R.Krishnamurthy in the year 1996.Astek electric co acts as a manufacturer and supplier of AC and DC motors and has a annual turnover of 2 crores.It is located in peenya 2nd stage, Bangalore.

2. Integrated electric co.private.ltd

Established in 1982,Integrated electric co.private.ltd,is a multi-product enterprise,manufacturing high quality electric rotating machines and drives for various industrial applications.There are three units in Bangalore manufacturing DC motors,AC motors,AC generators and AC variable speed drives in an impressive range and variety.

The products have been developed through in house efforts andconform to national and international standards like IEC,NEMA,AISE,DINetc. Integrated electric co has exported to Taiwan,Germany,UK, UAE, Australia and other countries.

3. Advith Industries

It was started by srinivasasranna in the year 1998,they into machining and fabrications and has an annual turnover of 2 crores.

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Objectives of our competitors Higher product quality than rivals Lower cost relative to key competitors Broader or more attractive product line than
rivals

Higher level of customer satisfaction than rivals Expand sales to existing customers.

Strategies of our competitors Supply management. Performance measures. Streamlining Determining a competitive strategy.

Strengths of our competitors a highly talented and motivated team. Better promotion strategies. Customer service. Location. Pricing.

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Weakness of our competitors

Time/cost Employee training Limited expansion High competition.

Threats to our company

If the competitors starts servicing Most of the competitors belong to the same authorized centre

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2.1 Organization Structure Definition

Formal and informal framework of policies and rules, within which an organization arranges its lines of authority and communications, and allocatesrights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how informationflows between levels of management. This structure depends entirely on the organization'sobjectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. An organization chart illustrates the organizational structure.

Importance of Organizational Structure

Organisation structure involves how a business organizes, categorizes and delegates tasks to achieve a specific goal. A company's organizational structure determines how business decisions are made and implemented at all levels of the business.

Types of organizational structure

Different types of Organization structure can be created on the basis of arrangement of activities. Accordingly, three broad types of structural forms are: 1) Functional Structure. 2) Divisional Structure. 3) Adaptive Structure.

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1) Functional Structure
When units and sub-units of activities are created in organization on the basis of functions, it is known as functional structure. Thus, in any industrial organization, specialized functions like manufacturing marketing, finance and personnel constitute as separate units of the organization. All activities connected with each such function are placed in the same unit. As the volume of activity increases, sub-units are created at lower levels in each unitand the number of persons under each manager at various levels gets added. This results in the interrelated positions taking the shape of a pyramid.

2) Divisional Structure
The divisional organization structure is more suited to every large enterprise particularly those which deal in multiple products to serve more than one distinctive markets. The organization is then divided into smaller business units which are entrusted with the business related to different products or different market territories. In other words, independent divisions (product divisions or market division), are created underthe overall control of the head office. Each divisional manager is given autonomy to run all functions relating to the product or market segment or regional market. Thus, each division may have a number of supporting functions to undertake. The divisional structure is characterized by decentralization of authority. Thus, it enables managers to takeDecisions promptly and resolve problems appropriate to the respective divisions. It also provides opportunity to the divisional managers to take initiative in matters within their jurisdiction. But such a structure involves heavy financial costs due to the duplication of supporting functional units for the divisions. Moreover, it requires adequate number of capable managers to take charge of the respective divisions and their functional units.

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Adaptive Structure
Organization structures are often designed to cope with the unique nature of undertaking and the situation. This type of structure is known as adaptive structure. There are two types in structures. i) Project Organization, and ii) Matrix Organization

i.

Project Organization:
When an enterprise undertakes any specialized, time-bound work involving one-time operations for a fairly long period, the project organization is found most suitable. In this situation the existing organization creates a special unit so as to engage in a project work without disturbing its regular business. This becomes necessary where it is not possible to cope with the special task or project. Within the existing system, the project may consist of developing a new project, installing a plant, building an office complex, etc.. A project organization is headed by a project manager in charge, who holds a middle management rank and reports directly to the chief executive. Other managers and personnel in the project organization are drawn from the functional departments of the parent organization. On completion of the project they return to their parent departments.

ii.

Matrix Organization:

This is another type of adaptive structure which aims at combining the advantages of autonomous project organization and functional specialization. In the matrix organization structure, there are functional departments with specialized personnel who are deputed to work full time in different projects sometimes in more than one project under the overall guidance and direction of project managers. When a project work is completed, the individuals attached to it go back to the irrespective functional department to be assigned again to some other project.
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Thisarrangement is found suitable where the organization is engaged in contractual project activities and there are many project managers, as in a large construction company or engineering firm.

Organizational Chart
An organizational chart shows how departments, divisions and various levels of an organization interact with one another. Organizational charts are expressed as a visual illustration or outline.

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FLOW CHART OF M.R.K INDUSTRIES

RESEARCH

DEVELOPMENT SOURCING & PROCUREMENT

DESIGN

CUSTOMER RELATIONS,SA LES AND MARKETING

PRODUCTION PLANNING

PRODUCTION CONTROL

QUALITY CONTROL

HANDLING AND DISTRIBUTION

STORAGE

CUSTOMERS

33

ORGANISATION STRUCTURE OF THE MRK INDUSTRIES

BOARD OF DIRECTORS

MANAGING DIRECTOR/GENERAL MANAGER(HR,SALES &PURCHASE MGR) MARKETING MANAGER PRODUCTION FINANCE MANAGER

WORKS MANAGER

FOREMAN

SUPERVISOR

WORKSMEN

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Work Specialization
The degree to which tasks in an organization are divided into separate jobs with each step completed by a different person. Overspecialization can result in human diseconomies from fatigue, stress and higher turnover.

Chain of Command
An important purpose of organizational structure is to identify who's involved in the decisionmaking process and how those decisions are actualized.

Distribution of Authority
Organizational structure plays a role in determining how a structure distributes authority throughout an organization. Important factors must be addressed for an organization to effectively pursue a goal, such as whether subordinates are involved in the decision-making or if that is reserved for a few main authority figures within the departments.

Departmentalization
Organizational structure defines how specific tasks and activities are assigned to their functional departments. For example, sale representatives may be grouped within a sales department or division.

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Span of control
The number of employees who can be effectively and efficiently supervised by a manager. Width of span is affected by: Skills and abilities of the manager Employee characteristics Characteristics of the work being done Similarity of tasks Complexity of tasks

Centralization

The degree to which decision-making is concentrated at a single point in the organizations. Organizations in which top managers make all the decisions and lower-level employees simply carry out those orders.

Decentralization

Organizations in which decision-making is pushed down to the managers whoare closest to the action.

Employee Empowerment

Increasing the decision-making.

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Factors that influence the amount of centralization

Environment is stable. Lower-level managers are not as capable or experienced at making decisions as upper-level managers. Lower-level managers do not want to have a say in decisions. Decisions are significant. Organization is facing a crisis or the risk of company failure. Company is large. Effective implementation of company strategies depends on Managers retaining say over what happens.

Factors that influence the amount of decentralization

Environment is complex, uncertain. Lower-level managers are capable and experienced at making decisions. Lower-level managers want a voice in decisions. Decisions are relatively minor. Corporate culture is open to allowing managers to have a say in what happens. Company is geographically dispersed. Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions.

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Formalization

The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures. Highly formalized jobs offer little discretion over what is to be done.

Low formalization means fewer constraints on how employees do their work.

Structural contingency factors

1) Structural decisions are influenced by:

Overall strategy of the organization

Organizational structure follows strategy. Size of the organization

Firms change from organic to mechanistic organizations as they grow in size. Technology use by the organization

Firms adapt their structure to the technology they use. Degree of environmental uncertainty

Dynamic environments require organic structures; mechanistic structures need stable environment

2) Strategy and structure

Achievement of strategic goals is facilitated by changes in organizational structure that accommodate and support change.

3) Size and structure

As an organization grows larger, its structure tends to change from organic to mechanistic with increased specialization, departmentalization, centralization, and rules and regulations.
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Functioning of different Departments

The main departments in a business might be:

Department
Accounts

Role
Provides a detailed record of the money coming in and going out of the business and prepares accounts as a basis for financial decisions

HRP

Deals with all the recruitment, training, health and safety and pay negotiations with unions/workers

Production

Makes sure that the production plans are met on time and products of the right quality are produced

Purchasing

Buys all the raw materials and goods required for production

Sales and marketing Sales function deals with all aspects of selling to customers; the marketing function carries out marketing research, organizes advertising and product promotion .

3.1STRUCTURE OF PRODUCTION DEPARTMENT

PRODUCTION DEPARTMENT MANAGER

FOREMAN SUPERVISOR

WORKERS

39

Production department of M.R.K Industries

Production is the functional area responsible for turning inputs into finished outputs through a series of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable.

In a manufacturing company the production function may be split into five sub-functions:
1. The production and planning department will set standards and targets for each section of the production process. The quantity and quality of products coming off a production line will be closely monitored. In businesses focusing on lean production, quality will be monitored by all employees at every stage of production, rather than at the end as is the case for businesses using a quality control approach.

2. The purchasing department will be responsible for providing the materials, components and equipment required to keep the production process running smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right quality.

3. The stores department will be responsible for stocking all the necessary tools, spares, raw materials and equipment required to service the manufacturing process. Where sourcing is unreliable, buffer stocks will need to be kept and the use of computerized stock control systems helps keep stocks at a minimal but necessary level for production to continue unhindered.

4. The design and technical support department will be responsible for researching new products or modifications to existing ones, estimating costs for producing in different

40

5. quantities and by using different methods. It will also be responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final product. The technical support department may also be responsible for work study and suggestions as to how working practices can be improved.

6. The works department will be concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs. The works department may also have responsibility for quality control and inspection.

7. A key aspect of modern production is ensuring quality. The term quality means fitness for purpose i.e. a product; process or service should do exactly what is expected of it.

3.2Human Resource Management of M.R.K Industries

HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE MANAGER FOREMAN

TEAM LEADER

EMPLOYEE

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Definition
Human Resources is exactly it says: resources for humans within the workplace! Its main objective is to meet the organizational needs of the company it represents and the needs of the people hired by that company. In short, it is the hub of the organization serving as a liaison between all concerned. Depending on the size of the company, the HR Department might be called Personnel with a manageable workforce that can be handled by a personnel manager and a small staff. For larger, more complex organizations with hundreds of departments and divisions, the task is much more demanding, taking on a life of its own.

Some companies have more than one HR Department - Corporate and Union. For example, a food service industry might have a Corporate HR Department that oversees white collared" employees and an HR Department that oversees the blue collar" workforce with an emphasis on labor relations. The organization will, thus, institute these two HR Departments to manage the unique needs of both union and non-union employees.

Organizational Development:
To ensure its success, a company must establish a hierarchal reporting system. The funnel of responsibility is critical to the efficiency of a smoothly operating business entity in which there is a clearly defined understanding of who is responsible for what. They provide consultation to a company's management team to identify what the company's core business and culture is about, and proceeds to plan and map the company's organizational infrastructure to support those needs.

Employee Recruitment and Selection Process:

There are many steps to recruiting and selecting qualified employees. First, a department head must inform the HR manager of an opening in their department. Then the HR manager must obtain the job description to formulate a Job Description Sheet for publication either internally, publicly, or both. Then HR must field the (many) responses to that job announcement to weed out the qualified from the unqualified applicants. Once that is completed, the interview process must be coordinated. They prepare the job description, contact the newspaper, run the ad, field the calls, compile a list of potential candidates, submit that list to the department's hiring

42

manager for approval and selection, contact the chosen candidates to set up preliminary interviews, and interview the candidates! Although most interviews are with the hiring manager or their associates, not all applicants get to meet with the department's hiring manager right away. It is not uncommon for a company to filter out those who fail to impress the HR manager first. For those select few who make it through, the HR manager schedules interviews between the department's hiring manager and potential candidates, and follows up with the hiring process to establishthe new hire with the company.

Employee Training & Development: As a company and the requirements of a position evolve, a company needs to take certain measures to ensure a highly skilled workforce is in place. The Human Resources Department oversees the skills development of company's workforce, acting as an in-house training center to coordinate training programs either on-site, off-site, or in the field. This might include on-going company training, outside training seminars, or even college, in which case an employee will receive tuition reimbursement upon earning a passing grade.

Employee Compensation Benefits:

This covers salaries, bonuses, vacation pay, sick leave pay, Workers' Compensation, and insurance policies such as medical, dental, life, and 401k. The Human Resources Department is responsible for developing and administering a benefits compensation system that serves as an incentive to ensure the recruitment and retain of top talent that will stay on with the company. When an employee is hired, the company's Benefits Coordinator is required to meet with employees one-on-one or in small group settings to explain their benefits package. This often requires an employee to make an informed decision and to provide their signature for processing purposes.

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Employee Relations:
With the increased rise in unethical practices and misbehaviors taking place in today's workplace such as age, gender, race, and religion discrimination and sexual harassment, there needs to be mandatory compliance with governing rules and regulations to ensure fair treatment of employees. In short, employees need to know they have a place to turn when a supervisor abuses his or her authority in anyway. Whether corporate or union, the HR Department will get involved to act as arbitrator and liaison between legal entities, regulatory agencies such as Human Rights, supervisors (who might be falsely accused), and employees to properly address and resolve the issue at hand.

Policy Formulation:
Regardless of the organization's size, company policies and procedures must be established to ensure order in the workplace. These policies and procedures are put in place to provide each employee with an understanding of what is expected of them. Similarly, these policies and procedural guidelines will assist hiring managers in evaluating their employee's performance. These policies can be established company-wide or used to define each department's function. It is Human Resource's responsibility to collaborate with department managers on the formulation of these policies and regulations to ensure a cohesive organization. A common practice is the development and implementation of an Employee Procedure Manual or Employee Handbook that is either distributed to each employee at the time of hire or a master copy allocated one to a department. The Human Resources Information Systems keeps track of the vast amount of data, a human resources department must have a good HRIS in place to automate many functions such as planning and tracking costs, monitoring and evaluating productivity levels, and the storing and processing of employee records such as payroll, benefits, and personnel files. It is very important that you, the job seeker, understand how the HR function works specifically in the area of

44

candidate recruitment. If you are considering a career in human resources, you can choose to become a Generalist or a Specialist. Whether a job seeker or a HR professional, research a company well before applying for a position.

3.3 Purchasing Department of M.R.K Industries

TOP LEVEL MANAGEMENT

PRODUCTION MANAGER

SUPERVISOR

Definition:
The purchasing department is responsible for acquiring the inventory that a company sells. To get more value for the companys dollar, the purchasing department determines the most desirable vendor source and does its best to acquire them at the lowest prices while maintaining mutually beneficial relationships with suppliers. An efficient purchasing department is vital in achieving a significant profit margin. Its goal is to procure inventory at the lowest acquisition costs. Basically, the equation is as follows : decrease in acquisition costs = substantial product margins.

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Roles of Purchasing Department 1) Prevent Shortages

The purchasing department is responsible for acquiring materials necessary for manufacturing and running your business. To guarantee that material shortages do not impact productivity, purchasing departments use techniques such as multiple sourcing. Multiple sourcing means that several suppliers are used to provide the same goods. This way, if there is a problem with one supplier, orders to another can be increased to compensate.

2) Minimize Expenses
The purchasing department plays an important role in maximizing your business's profits. It compares prices and negotiates with suppliers to get your business the best price possible on necessary goods.

Pre-approve Vendors
Pre-approving vendors can expedite the acquisition process for things your business frequently needs. The purchasing department evaluates vendors in terms of price, quality, customer reviews and time to fill orders, and produces a list of approved vendors.

Track Orders
Orders are documented through purchase order forms, which specify important identifying information about materials ordered as well as the quantity ordered. These forms are used to ensure that the goods ordered are received and to track the time taken for orders to be filled.

Check Invoices
The purchasing department checks invoices when they arrive for accuracy, before passing them on to accounting. It compares the invoice to the purchase order form and goods actually

46

received. Additionally, any extra charges are examined. This ensures that the business pays only for the goods actually received.

3.4Sales Department of M.R.K Industries Functions of sales management

Recruiting and employing salesmen and fixing their compensation and respective territories. Training the salesmen in knowledge of the goods and in methods of selling them. Cooperating with the production department in the matter of qualities, quantities, containers, packages, sizes and seasonal goods, and reporting their reaction on dealers and consumers. Making investigations of the products or offering to discover new uses and new appeals to dealer or consumer. Conducting, or arranging for, special market surveys and analyses of territories with a view to discovering new markets for the goods or new methods of developing old markets.

Sales channels:The routes and factors through which goods pass from producers to consumers were formerly pretty well standardized as shown by the following elementary chart: 1. Manufacturer 2. Wholesaler or jobber 3. Retailer 4. Consumer It was formerly considered to be bad business ethics for the manufacturer to deal directly with either the retailer or the consumer. However, the growth of large retail organizations such as department stores, chain stores and cooperative associations of retailers and consumers which bought in wholesale quantities induced the manufacturers to sell direct to them.

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The development of selling direct to the retailer trade also induced direct dealings with individual consumers and the growth of "house-to-house" selling by the manufacturer and the jobber.. At the present time the old standard method of distribution is no longer exclusive. The entire market is an open one although the standard method is still a common one and possesses advantages which will prevent it from being abandoned.

Retail distribution:Where the manufacturer distributes through the retail trade, the customer (retailer) gains an advantage in prices; the salesman can specialize on his proposition in a way that a jobber's salesman cannot or will not do ; he is nearer to the ultimate consumer and can gain a better knowledge of consumer needs and demands and of the retailer's problems in handling his line. He can effectively meet competition by performing special services in helping to move the goods.

Standard prices and price maintenance:When a company standardizes its prices and maintains a fair measure of price control, the customer is protected to a considerable extent from cut-price competition. The salesman also gains the same advantage. He will occasionally lose orders by reason of not being able to meet lower prices, but the gains are greater than the losses. Standardized prices compel the salesman to sell on the merits of the product or service instead of price. This promotes a higher grade of salesmanship.

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3.5Marketing Department of M.R.K industries

MARKETING DEPARTMENT

MARKETING MANAGER

WORKSMAN

MIDDLEMEN

DEALERS

The marketing department acts as a guide and lead the company's other departments in developing, producing, fulfilling, and servicing products or services for their customers. Communication is vital. The marketing department typically has a better understanding of the market and customer needs, but should not act independently of product development or customer service. Marketing should be involved, and there should be a meeting of the minds, whenever discussions are held regarding new product development or any customer-related function of the company.

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4.1 SWOT Analysis Definition:

The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis measures a business unit, a proposition or idea; a PEST analysis measures a market. A SWOT analysis is a subjective assessment of data which is organized by the SWOT format into a logical order that helps understanding, presentation, discussion and decision-making The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection.

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STRENGTHS
Good reputation among customers. Customized sales Right products, quality and reliability. Superior product performance vs competitors.

WEAKNESSES
Need more sales people. Lack of patent protection. A weak brand name.

OPPORTUNITIES

Arrival of new technologies. Could develop new product of other commodities Profit margins will be good. .

THREATS
Shifts in consumer tastes away from the firm's products. Emergence of substitute products. New regulations.

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Findings, Suggestions and Conclusion of M.R.K Industries 5.1 Findings of the company
The company has a better distribution channel and a good organizational structure. The company has to improve its marketing strategies. The company has a good reputation among customers and has direct delivery capabilities. The company could develop new products and seek better suppliers deals.

5.2Suggestions
1. The company can improve its brand name through advertisements and sales promotions. 2. Introduce a better way to protect its patents through a set of protocols. 3. The company can improve its purchasing department by having a set of practices such as having our own known suppliers,improving inventory and delivery,ensure that all staff are properly trained to achieve business goals. 4. The company can improve its marketing by a. Providing leadership on serving the customer by Developing pricing, Conducting customer satisfaction surveys,contributing to product development, Monitoring competitors. b. Support sales team & distribution partners by building brand recognition, Nurturing leads until they are sales-ready, Creating collateral that helps persuade prospects such as websites, brochures, multimedia presentations, product sheets, making it easy to differentiate from competitorsetc. c. Manage advertising & promotions by creative development, testing and media buying.

d. Manage

client

relationships Setting

by up

Conducting loyalty a cards,

customer Loyalty

satisfaction building

surveys, programs, to

Events&sponsorships, Monitoringcompetitors,

Implementing

referral

program,Re-marketing

customers,Ensuring each client-contact point builds a favorable impression.

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CONCLUSION
Changes in the world market and in technological conditions in the world economy in the recent past, in particular in the last decade, pose new challenges to industrialization and the development of a competitive manufacturing sector in India. Three main categories of changes are most relevant: changes in market conditions, in technology hardware and software and in the organization of production. These market and technological changes are likely to have considerable implications for the shift in the direction of knowledge-intensive production and for the kinds of capabilities that must be developed to cope with the changing situation. First, greater effort will be needed to monitor these changes with a view to adapting to the new situation. This will often imply selective adoption of new technologies in production and marketing at the right time and in the right applications according to the dictates of quality, precision, speed and productivity requirements. Due to the rapid changes in business and technological changes the company should be ready to face the challenges that affect them and should ensure to have better marketing strategies to improve its promotion and have a better/higher competitiveness.

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Bibliography.

Text book. 1) Production and Operations management B.Mahadevan. 2) Organisational Behaviour Uday Parik Journals 1) Indian Management studies Volume 15 Number 1 April 2011 2) Human captial Volume 15 Number 3 August 2011 Websites 1) www.mrk industries.com 2) search engine

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Special Task at

MRK INDUSTRIES

Submitted in Partial Fulfillment of the Requirements of Bangalore University for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

by Nandan M S REG. No: 10SKCMA033

Under the Guidance of Prof.Ramesh

EMPOWERING MINDS

Acharya Institute of Management & Sciences

1st Cross, 1st Stage, Peenya Industrial Area Bangalore 560 058

2010 - 2011

55

DECLARATION

I, Nandan M S, hereby declare that this special task reportis based on the original study conducted by me under the guidance of prof. Ramesh.

This report has not been submitted earlier for the award of any degree / diploma by Bangalore University or any other university.

Place: Bangalore Date:

(NANDAN M S) 10SKCMA033

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CERTIFICATE FROM THE GUIDE

Certified that this special task report is based on the original study conducted by NANDAN M S of ll semester MBA under my guidance. This report has not formed the basis for the award of any other degree / diploma by BangaloreUniversity.

Place: Bangalore Date: (Prof. RAMESH)

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Acharya Institute of Management & Sciences

1st Cross, Peenya I stage, Bangalore - 560058

CERTIFICATE

Certified that this special task report is based on the study conducted by NANDAN M S of ll semester MBA under the guidance of Prof.Ramesh.

This report is based on the original study undergone and has not formed the basis for the award of any other degree / diploma by BangaloreUniversity or any other university.

Prof. Ramesh Faculty, Dept. of MBA Place: Bangalore Date:

Dr. Kerron. G. Reddy Principal, AIMS Place: Bangalore Date:

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AKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals. I would extend my sincere thanks to all of them. I am highly indebted to Mr.YOGANAND, MANAGER OF MRK INDUSTRIES, Bangalore for his guidance and constant supervision as well as for providing necessary information regarding the project and also for his support in completing the project. I am extremely thankful to Prof.Ramesh-internal faculty guide under whose able guidance this project work was carried out. I thank him for his continuous support and mentoring during the tenure of the project. I would like to express my special gratitude and thanks to industry persons and others who helped me for giving me such attention and time.

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CHAPTER 1 INTRODUCTION

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Introduction to Performance Appraisal:

A performance appraisal, employee appraisal, performance review, or career development discussion is a method by which the job performance of an employee is evaluated generally in terms of quality, quantity, cost, and time typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in a job based on considerations other than productivity alone. A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager, peers, subordinates, and customers, while also performing a self assessment. This is known as a 360-degree appraisal and forms good communication patterns. The most popular methods used in the performance appraisal process include the following:

Management by objectives 360-degree appraisal Behavioral observation scale Behaviorally anchored rating scales

Trait-based systems, which rely on factors such as integrity and conscientiousness, are also used by businesses but have been replaced primarily by more objective and results-oriented methods. The scientific literature on the subject provides evidence that assessing employees on factors such as these should be avoided. The reasons for this are twofold: 1) Trait-based systems are by definition based on personality traits and as such may not be related directly to successful job performance. In addition, personality dimensions tend to be
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static, and while an employee can change a behavior they cannot change their personality. For example, a person who lacks integrity may stop lying to a manager because they have been caught, but they still have low integrity and are likely to lie again when the threat of being caught is gone. 2) Trait-based systems, because they are vague, are more easily influenced by office politics, causing them to be less reliable as a source of information on an employee's true performance. The vagueness of these instruments allows managers to assess the employee based upon subjective feelings instead of objective observations about how the employee has performed his or her specific duties. These systems are also more likely to leave a company open to discrimination claims because a manager can make biased decisions without having to back them up with specific behavioral information.

1.1 RESEARCH METHODLOGY

Research Methodology in common parlance refers to a search for knowledge. One can also define also research as a scientific and systematic research for pertinent information a specific topic. Research is an art of systematic investigation. Some people consider research as a movement, a movement to the known to the unknown. According to Clifford Woody: - Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions mil reaching conclusion, and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. According to Clover and Basley, it is the process of systematically obtaining accurate answers to significant pertinent questions by the use of scientific method gathering and interpreting information. Marketing research is defined as a systematic gathering and analysis of the data concern with an objective. The whole activity is divided into various parts and after compilation of that we reach

62

at certain findings, which enable us to marketing decision. It involves the diagnosis of information needed and the selection of the relevant and inter-related variables. 1.2 STATEMENT OF THE PROBLEM This study investigates the methods of performance appraisal and its impact on employee motivation. Thus a research titled Impact of performance appraisal on employee motivation was carried on. 1.3 OBJECTIVE OF THE STUDY i.. To examine the method of performance appraisal used in the organization ii.. To analyze the significance and benefits of having a strong performance management iii. To understand the concept in detail of how a good performance appraisal leads to employee motivation iv. To analyze the impact of motivation on employee productivity 1.4 SCOPE OF THE STUDY It will help the company in understanding its employees. It will help in understanding that which method of performance appraisal is effective It will help in understanding to know as to how to motivate its employees through Performance appraisal. 1.5 LIMITATIONS OF THE STUDY Sample size is small because of the time constraint Respondent may provide data from their memory recall, there may only be through rough estimates. Survey will be limited in particular area
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The sample size is small hence arriving at an overall opinion is difficult

1.6 RESEARCH DESIGN Research design is a detailed blue print used to guide the research study towards its objectives. Descriptive research is used for this study. The major purpose of descriptive research is description of the state of affairs, as it exists as present. Which means asking questions to people who are believed to possess the desired information.

1.7 SAMPLING DESIGN SAMPLING TECHNIQUE Stratified random sampling Under this sampling design item has an equal chance of inclusion in the sample. All choices being independent of one another. It gives each possible sample combination an equal probability of being chosen. In this technique the population is stratified in to a number of nonoverlapping sub population or strata and sample items are selected from each stratum. Items selected from each stratum are based on simple random sampling. First stratification and then simple random sampling is known as stratified random sampling.

1.8 SOURCE OF DATA COLLECTION Primary Data: Primary data was collected through questionnaire administration Secondary Data: Secondary data were collected from company resources, internet resources, books, etc...

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CHAPTER 2 DATA ANALYSIS AND INTERPRETATION

65

Introduction
Data collection is the systematic recording of information; data analysis involves working to uncover patterns and trends in data sets; data interpretation involves explaining those patterns and trends. The literature review was done to get better knowledge about the topic and minimize the mistakes. The research was of descriptive type which included questionnaire. The sampling technique used was convenience sampling with 100 respondents. The primary data collected, was from questionnaires which was tabulated and presented on graphs in the following pages. The data is then scrutinized and relevant interpretations are drawn. The software packages used for presentation and interpretation is MS- Excel and MS- Word. The data collection plan, including procedures, instruments, and forms, was designed and pretesting of questionnaire was done to maximize accuracy. All data collection activities were monitored to ensure adherence to the data collection protocol and to prompt actions to minimize and resolve missing and questionable data. Monitoring procedures were instituted at the outset and maintained throughout the study, since the faster irregularities can be detected; the greater the likelihood that they can be resolved in a satisfactory manner and the sooner preventive measures can be instituted.

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DATA ANALYSIS

Q) Age of the respondents Table1: showing respondents age Age 20-30 years 31-40 years 41-50 years Above 50 years Total No. of respondents 12 10 03 0 25 % of response 48 40 12 0 100%

Figure 1: showing respondents age

No. of respondents

20-30 years 31-40 years 41-50 years Above 50 years Total

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Interpretation: It can be inferred from the above graph that majority of the respondents are young and belong to the age group 20-30 years followed by the age group of 30-40 years. It is to be noted that 3 of the respondents belong to above 41-50 years of age group. Q) Which department do you work for? Table 2: showing department to which the employee belongs to Department Production HR R&D Accounts Marketing Others Total No. of respondents 17 0 2 5 0 1 25 % of response 68 0 8 20 0 4 100%

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No. of respondents

Production HR R&D Accounts Marketing Others Total

Interpretation It can be inferred from the above table that 68% of the respondents belongs to the production department, 8% of respondents belong to R&D department and 20% of respondents belongs to accounts department and 4% belongs to other department. Thus, majority of the respondents are working in the production department and none of the respondents are in the HR department. Q) How long you have been working for the current organization? Table 3: showing working experience of the respondents in the current organization Years Less than 2 years 2-6 years 6-10 years More than 10 years Total No. of respondents 4 12 9 0 25 % of response 16 48 36 0 100%

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Figure 3: showing working experience of the respondents in the current organization

No. of respondents

Less than 2 years 2-6 years 6-10 years More than 10 years Total

Interpretation It can be inferred from the above graph that 16% of the respondents have a working experience of less than 2 years in the current organization followed by the respondents having experience between 2-6 years is 48%, and respondents have working experience in the current organization for 6-10 years is 36%.

Q) Are you satisfied with the support from the HR department? Table 4: showing satisfaction from the support of the HR department Satisfaction level Highly satisfied Satisfied Neutral Dissatisfied No. of respondents 2 15 3 5 % of response 8 60 12 20

70

Highly dissatisfied Total

0 25

0 100%

Figure 4: showing satisfaction from the support of the HR department

No. of respondents

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total

Interpretation It can be inferred from the above graph that 8% of the respondents show highly satisfied response towards their satisfaction from the HR department followed by 60% of respondents who are satisfied from the support of the HR department and 12% of the respondents show neutral response and 20% are dissatisfied. Thus, majority of respondent gives satisfied response towards their satisfaction from the HR department and very few say that they are dissatisfied. Q) Are you satisfied with the existing performance appraisal system? Table 5: showing satisfaction with the existing performance appraisal system Satisfaction level Highly satisfied Satisfied Neutral No. of respondents 4 13 8 % of response 16 52 32

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Dissatisfied Highly dissatisfied Total

0 0 25

0 0 100%

Figure 5: showing satisfaction with the existing performance appraisal system

No. of respondents

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total

Interpretation It can be inferred from the above graph that 16% of the respondents show highly satisfied response towards their satisfaction to the existing performance appraisal system, 52% respondents say that they are satisfied with the existing performance appraisal system and 32% are neutral. None of the respondents are highly dissatisfied with existing performance appraisal system. Q) Performance appraisal helps the organization in the following ways Table 6: showing performance appraisal help the organization in the following ways Ways Reduces absentism No. of respondents 3 % of response 12

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Reduces employee turnover Improves employee efficiency

0 16

0 64 24 0 100%

Increases employee productivity 6 Others Total 0 25

Figure 6: performance appraisal helps the organization in the following ways

No. of respondents Reduces absentism Reduces employee turnover Improves employee efficiency Increases employee productivity Others Total

Interpretation It can be inferred from the above graph that 12% of the respondents say that performance appraisal helps the organization to reduce absentism, followed by 64% of respondents who say that it improves employee efficiency, 24% says that it increases employee productivity. Q) why does the company do performance appraisal? Table 7: showing performance appraisal is done by company to No. of respondent % of response

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To assess the employee

12

48 24 12 16 100%

To assess the training needs of employee 06 To decide upon pay rise For promotion Total 03 04 25

Figure 7: showing performance appraisal is done by company to

No. of respondent To assess the employee To assess the training needs of employee To decide upon pay rise For promotion Total

Interpretation It can be inferred from the above graph that 48% of the respondent agrees that performance appraisal is done by the company to asses the employee, followed by 24% who say that it is done to assess the training for the employee 12% of respondents say that that it is done to decide the pay rise of the employees and 16% say that it is done for promotion. Q) Performance appraisal activities are helpful to get motivated

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Table 8: No of respondents Strongly agree Agree Neutral Strongly disagree Disagree Total 0 21 04 0 0 25 0 84 16 0 0 100% % of respondents

Figure 8: showing performance appraisal activities are helpful to get motivated

No of respondents
25 20 15 10 5 0 No of respondents

Interpretation: It can be inferred from the above graph that 84% of the respondents agree that performance appraisal motivates them and 16% of the repondents are neutral. Q) Management is really interested in motivating the employees

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Table 9: No of respondents Strongly agree Agree Neutral Strongly disagree Disagree Total 13 07 05 0 0 25 52 28 20 0 0 100% % of respondents

Figure 9: showing Management is really interested in motivating the employees

No of respondents
25 20 15 10 5 0 No of respondents

Interpretation:

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It can be inferred from the above graph that 52% of the respondents strongly agree, 28% of the respondents agree and 20% of the employees are neutral about the interest which is shown by the management towards the employees. Q) How does Performance appraisal motivate you? Table 10: showing performance appraisal motivates the employees in the following ways Ways of motivation Builds confidence Helps to improve performance Handling more challenging tasks Others Total No. of respondents 21 04 0 0 25 % of response 84 16 0 0 100%

Figure 10: showing performance appraisal motivates the employees in the following ways
No. of respondents Builds confidence Helps to improve performance Handling more challenging tasks Others Total

Interpretation

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It can be inferred from the above graph that 84% of the respondents say that performance appraisal helps them to build confidence and followed by 16% of respondents who say that helps to improve performance.

Q) Factors which motivate you the most. Table 11: showing factor which motivates the employees Factors Salary increase Promotion Motivational walk Incentives Others Total No. of respondents 12 05 02 06 0 25 % of response 48 20 8 24 0 100%

Figure 11: showing factor which motivates the employees

No. of respondents
30 25 20 15 10 5 0 No. of respondents

Interpretation
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It can be inferred from the above graph that 48% of the respondents gets motivated by increase in their salary, 20% gets motivated by motivational walk, 8% of the respondents gets motivated by incentives and promotion and 24% gets motivated by recognition for their work. This, most of the employees gets motivated by increase in their salary. Q) Which type of incentive motivates you more? Table 12: No of Respondents Financial Non-financial Both Total 19 06 0 25 % of Respondents 76 24 0 100%

Figure 12: showing type of incentive

No of Respondents

Financial Non-financial Both Total

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Interpretation: It can be infered from the above graph that 76% of the respondents say that incentive motivates them in financial terms and 24% of the respondents say that incentive movtivates them in nonfinancial terms. Q) Did motivation help you in improving productivity? Table 13: showing motivation help in improving productivity

Response Yes No Total

No. of respondents 23 02 25

% of response 92 8 100%

Figure 13: showing motivation help in improving productivity

No. of respondents

Yes No Total

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Interpretation It can be inferred from the above graph that 92 respondents say that motivation help in improving productivity and 8 respondents say that motivation does not help them in improving productivity.

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CHAPTER 3 FINDINGS AND SUGGESTIONS

3.1 FINDINGS As per the data analysis of questionnaire following are the findings Most of the employees are between the age of 20-30 years. Majority of the employees have a working experience between 2-6 years in the current organization. Majority of employees show neutral response for the support from the HR department.

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Recalling objective 1 To examine the method of performance appraisal in the organization The company follows rating scale method for performance appraisal. For majority of the performance is assessed by the top management and for some it is assessed by the HR department and their project leaders. Majority of the employees gave neutral response towards their satisfaction for the existing performance appraisal system Majority of the employees agree that performance appraisal is done periodically. Recalling objective 2 analyze the significance and benefits of having a strong performance management Majority of the employees say that performance appraisal helps the organization to improve employee efficiency and some of them say that it increases employee productivity. Majority of the employee agrees that performance appraisal is done by the company to decide upon the pay rise. Majority of the employees show neutral response towards the transparency of the performance appraisal system. Performance appraisal is mostly discussed face to face to the employees, while for some it goes directly to the top management. Majority of the employees show neutral response to that performance appraisal activity are helpful to get motivated. Majority of the employees are dissatisfied with that management is interested in motivating the employees. Recalling objective 3 To understand the concept of how a good performance appraisal leads to employee motivation

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 Majority of the employees say that performance appraisal helps them to improve their performance. Majority of employees get motivated by increase in their salary Majority of the employees gets motivated by both financial as well as non-financial incentives. Majority of the employees disagree that the company provides training if they are rated low. The company should undertake training and development activities to improve the performance of the employees. Majority of the employees are satisfied that training help them build confidence and get motivated. Recalling objective 4to analyze the impact of motivation on employee productivity Many employees said they became aware of their talents which help them in becoming more effective employees. Many said motivation helped them overcome depression and be more attentive. It helps employees overcome personal problems and make their work life better.

3.2 SUGGESTIONS The companies should encourage more female employees to join the work force. It will help in creating a diversified workforce.. HR department should be more interactive with the employees which will make the employees feel comfortable in doing their tasks.
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 Since the employees gave neutral response towards their satisfaction with the existing performance appraisal system and none of the employees are satisfied or highly satisfied, so the company should undertake measures to improve its performance appraisal system and make the employees feel satisfied. The company should communicate the benefits of an effective performance appraisal system to the employees which will help them in participating. The company should make the performance appraisal more transparent to the employees. The company should discuss the performance appraisal face to face deeply with all the employees to make them understand where they are lacking and need to improve. The actions taken by the management after the performance appraisal should be such that it makes the employee feel motivated. Like if they are rated high then they should be given rewards and recognition and if rated low then necessary training should be provided. Performance appraisal should be improves as many of the employees are dissatisfied with the current performance appraisal system which creates dissatisfaction among them The company should provide mentoring facility to its employees where they can discuss with their problem and get solution. The company should arrange for get together, gathering etc. in order to feel the employees relaxed and to fresh up their minds from daily activities. The company should hold regular meetings with employees and find out their problems, solving which will enable them to become more committed towards organization goals.

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CHAPTER 4 CONCLUSION

CONCLUSION The performance appraisal activities really play a major role in motivating the employees of the organization. It is a major factor that makes an employee feels good in his work and results in his
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satisfaction too. The organization can still concentrate on specific areas which are evolved from this study in order to make the motivational programs more effective. Only if the employees are properly motivated- they work well and only if they work well the organization is going to benefit out of it. Steps should be taken to improve the performance appraisal system and motivational programs procedure in the future. The suggestions of this report may help in this direction. Performance appraisal system helps organizations to find out where the employees lack when it comes to motivation. A proper management of the motivation will help employees become more productive in the long run. Every organization should take measure to ensure that employees are constantly motivated for the betterment of the organization.

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ANNEXURE

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Dear Respondent, I am a student of MBA conducting a survey to collect information for my special task PERFORMANCE APPRAISAL. I request you to spare few minutes of your time to answer the following questionnaire. The responses you give form an important data for my dissertation project which will be used for academic purpose. Please be assured of the confidentiality. Nandan M S

QUESTIONNAIRE Name (Optional): ______________________________________________ Gender: Age : Female 20-30 years Male 31-40 years 41-50 years above 50 years

Q) Which department do you work for? Production Marketing HR R&D Accounts

Others (specify)___________________________________________

Q) How long you have been working for the current organization? Less than 2 years 2-6 years 6-10 years more than 10 years

Q) Are you satisfied with the support from the HR department? Highly satisfied Neutral Highly Dissatisfied Satisfied Dissatisfied

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Q) Are you satisfied with the existing performance appraisal system? Highly satisfied Neutral Highly Dissatisfied Q) The Performance appraisal is done and assessed by HR Department Top Management External consultant Others (specify) ___________________ Satisfied Dissatisfied

Q) Performance appraisal helps the organization in the following ways. Reduced absentees Improves employee efficiency Reduces employee turnover more productivity

Q) Why does the company do performance appraisal? To assess the employee To decide upon pay rise to assess the training needs of employees for promotion

Q) Performance appraisal activities are helpful to get motivated. Strongly agree Neutral Disagree Q) Management is really interested in motivating the employees. Strongly agree agree agree strongly disagree

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Neutral Disagree

strongly disagree

Q) How does Performance appraisal motivate you? Builds confidence Handling more challenging tasks Others (specify) ________________________________________ Q) Factors which motivate you the most. Salary increase Motivational walk Incentives Others (specify) ________________________________________ Q) Which type of incentive motivates you more? Financial Both Q) Did motivation help you in improving productivity? Yes Q) Suggestions if any: No Non-financial promotion recognition helps to improve performance

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