1

HUMAN RESOURCES MANAGEMENT

1. INTRODUCTION:

Human resources management is primarily concern with the people management. It Is a

crucial subsystem in the process of management. The success or of the organization not
only depends on the material, machines and equipment but also on the personnel who
put in their best efforts for efficient performance of the job.

Human resources management is the management of employees skills, knowledge,

talents aptitudes, creative abilities etc.

DEFINITION:

Human resources can be thought of as the total knowledge, talents aptitudes, creative
abilities of an organization work force as well as the value, attitude and beliefs of the
individuals involve.
-LEONC.MEGGINSON.

Personnel management effectively describes the process of planning and directing the
application development and utilization of human resources in employment.

-DALE YODER

Personnel management is the process of attracting, holding, motivating, and people

involving all managers, line and staff

-DUNN & STEPHEN

DEFINITION OF MOTIVATION:
Motivation has been variously defined by scholars. Usually one or more of
these words are included inn the definition: desires, wants, aims, goals, drives, movies
and incentives. Motivation is derived from the Latin word Move on which means to
move.
Human motives are internalized goals within individuals. A motive is an inner
state that energies activates, or moves and directs or channels behavior towards goals.
NEED OF THE STUDY:
A common place that we see the need to apply motivation is in the work place. In the
work force, we can see motivation play a key role in leadership success. A person
unable to grasp motivation and apply it, will not become or stay a leader. It is critical
that anyone seeking to lead or motivate understand "Howletts Hierarchy of Work
Motivators."
Salary, benefits, working conditions, supervision, policy, safety, security, affiliation,
and relationships are all externally motivated needs. These are the first three levels of
"Howletts Hierarchy" When these needs are achieved; the person moves up to level
four and then five. However, if levels one through three are not met, the person
becomes dissatisfied with their job. When satisfaction is not found, the person becomes
less productive and eventually quits or is fired. Achievement, advancement,
recognition, growth, responsibility, and job nature are internal motivators. These are the

last two levels of "Howletts Hierarchy." They occur when the person motivates
themselves (after external motivation needs are met.) An employer or leader that meets
the needs on the "Howletts Hierarchy" will see motivated employees and see
productivity increase. Understanding the definition of motivation, and then applying it,
is one of the most prevalent challenges facing employers and supervisors. Companies
often spend thousands of dollars each year hiring outside firms just to give motivation
seminars.
Scope of the study

The study in confined and relevant only to Heritage Foods (India) Limited
(HFIL) applicable to any organization.

The study covers recruitment training and development in Heritage Foods

(India) Limited (HFIL) it solutions at various levels of employees.

The study assists the management in determining the decision regarding the
performance of the employee.

OBJECTIVES OF THE STUDY:

1. To find out the present motivation level of the employees in Heritage Foods
(India) Limited (HFIL).
2. To find out the blockages for the motivation in Heritage Foods (India) Limited
(HFIL).
3. To suggest measures for improvement of the motivation;
4. To study the hygienic and motivational content factors.

Research Methodology:
(Both Primary source of data and Secondary source of data)
Primary Source: Discussions with plant staff, Interviews, Questionnaire administered.

Secondary Source: Journals Magazines and articles from prominent newspapers.

Population and Sample: There are 140 Officers & Supervisors and 100 Managerial staff
.The questionnaire is administered to 100 Officers and Supervisory staff and 100
Managerial staff (The questionnaire has been administered to Managerial staff at
Heritage Foods (India) Limited (HFIL).The questionnaire has been sent through E
mail to all these staff and the replies were also received through e mail)

Limitations of the study:

There are certain limitations of the concept of empowerment.

It may be cost

consuming in selecting personnel, training costs and labor costs may be high, it may
result in slower or inconsistent services and poor use of the technique of empowerment.

At the outset, Managers must also accept the fact that not all employees want to
be empowered. Many workers just work better in jobs that are clearly defined and
closely supervised. Once both employees and managers have received proper training,
the next step is go give employees control of the resources needed to make the
improvements in their job and work processes.

By giving employees information, resources and training and by following with

measurements and reinforcement, Human Resources can create an empowered
environment. But Empowerment should be continuous process like quality
improvement and it is like a race without a finish line.

CHAPTER-II
REVIEW OF LITERATURE

2. INTRODUCTION
Human beings are a resource to an organization. Like another resource they
represent an investment whose development and utilization require proper managing.
There is a fundamental trust the people are organizations most important assets.

Performance results from the interaction of physical, financial and human

resource. The first two are inanimate; they are translated into productivity only when
human element is introduced. In dealing with employees, however an intangible factor
of will, violence or freedom of choice is introduced , and workers can increase or
decrease their productivity as they choose. This human quality gives rise to need for
motivation.
Motivation is one of the most important factors affecting human behavior.
Motivation not only affects other factors like perception and Learning but also affect
the total performance of an individual in organizational setting. This is the reason why
managers attach great importance to motivation in an organization.
At one time, employees were considered just another input into the production
of goods and services. What perhaps changed this way of thinking about employees
was reached, referred to as the Hawthorne studies, conducted by Elton Mayo from 1924
to 1932(Dickson, 1973). This study found employees are not motivated solely by
money and employee behavior is linked to their attitudes (Dickson, 1973)
The Hawthorne studies began the human relations approach to management,
where by the needs and motivations of employees become the primary focus of
managers (Bedeian, 1993).

2.1 MEANING OF MOTIVATION:

Motivation has been variously defined by scholars. Usually one or more of
these words are included inn the definition: desires, wants, aims, goals, drives, movies
and incentives. Motivation is derived from the Latin word Move on which means to
move.
Human motives are internalized goals within individuals. A motive is an inner
state that energies activates, or moves and directs or channels behavior towards goals.

2.1.1 DEFINITION:

1. Motivation is the complex forces starting and keeping a person at work in the
organization.

2. Motivation is the various drives within or environmental forces surrounding

individual that stimulate or attract them in a specific manner.
3. Motivation is the art of understanding motives satisfying them to direct and sustain
behavior to wards the accomplishment of organization goals.

4. Motivation is the process of operating organizational conditions which will impel

employees of any emotion or desire operation ones will and prompting or driving at it
to action.

Motivation consists of the three interaction and interdependent elements of needs,

drives and goals.

Needs: These are the deficient, and create whenever there is a physiological or
psychological imbalance.

Drive or motives: These are set to alleviate needs. These are action oriented and
provide an energizing thrust toward goal accomplishment. They are the very heart of
the motivation process.

Goal: Goals are any thing which will alleviate a need and reduce a drive.

2.2 CHARACTERISTICS OF MOTIVATION:

1. Higher efficiency:- A good motivation system releases the immense talents,

abilities of employees. It converts ability to work.

2. Low absenteeism and turnover:-Motivation leads to job satisfaction and high

morale due to which lab our unrest, labor absenteeism turnover are reduced.

3. Human relations:-A high level results in harmonious relations between employer

and employees.

4. Facilitates change:-Effective motivation help to over come resistance to change

and negative attitudes on the part of employees.

2.3 NATURE OF MOTIVATION:

Following are some of the characteristics of motivation derive from the definitions
given by various authors.
1. Based on motives:-Motivation is base on individuals motive which are internal to
individual. These motives are in the form of feeling that the individual lacks some
thing.
2. Goal directed behavior:-Motivation Leads to goal directed behavior. A goal
directed behavior is one which satisfied the causes for which behavior takes place.
Motivation has pro found influence on human behavior.
3. Related to satisfaction:-Motivation is related to satisfaction. Satisfaction is refers to
the contentment experiences of an individual which we derives out of needs
fulfillment.
4. Complex process:-Motivation is a complex process; complexity emerges because
of the nature if needs a types of behavior that need attempted to satisfied those needs.
2.4 TYPES OF NEEDS:
There are many needs which an individual may have and there are various ways in
Which may be classified? Needs may be natural, biological phenomenon in an
individual or these may develop over the period of time through learning. Thus, need
may be grouped into 3 categories:

1. Primary need
2. Secondary need
3. General needs

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1) Primary needs: These are also known as physiological, biological, basic, or unclear
needs. These needs are common in human beings through their intensity differs.
2) Secondary needs: As contrast to primary needs, these are not natural but are learned
by the individual through experience and interaction. Emergency of these needs
depends in learning.
3) General needs: Through a separate classification for general needs is not always
given, such a category seems necessary because there are a number of needs which lie
in the grey area between the primary and secondary needs. In fact, there are certain
needs such as need for competence, curiosity, manipulation, affection, etc.

2.5 TYPES OF MOTIVATION:

There are 2 types of motivation. They are
1. Positive motivation
2. Negative motivation
Positive motivation is a process of attempting to influence others to do your will
through the possibility of gain or reward. Incentive motivation is the pull
mechanism.
Negative motivation or fear motivation is based force or fear. Fear causes person to
act in a certain way because they are afraid of the consequences if they dont Fear
motivation is the push mechanism.
The objective of motivation is to create condition in which people are willingly to
work with zeal, initiative, interest and enthusiasm, with a high personal and group.
Moral satisfaction with a sense of responsibility, loyalty and discipline and with
pride and confidence in a most cohesive manner so that the goal of an organization
are achieved effectively.

11

2.6 EMPLOYEE MOTIVATION IN THE WORK PLACE:

The job of a manager in the workplace is to get things done through employees. To
do this the manager should be able to motive employees. To understand motivation
one must understand human nature itself.
Human nature can be very simple, yet very complex too. An understanding and
appreciation of this is a prerequisite of effective employee motivation in the
workplace and therefore effective management and leadership
Motivation is the key to performance improvement:
Performance is considered to be a functional improvement:
Job performance =f(ability) (motivation)
Ability in turn depends on education, experience and training and its improvement
is a slow and long process. On the other hand it can be improved quickly. As a
guidelines, there are broadly 7 strategies for motivation.

Positive reinforcement

Effective discipline and punishment

Treating people fairly

Satisfying employee needs

Setting work related goals

Restructuring job

Based rewards on job performance

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2.7 BASIC PRINCIPLES TO REMEMBER BY MANAGER FOR MOTIVATING

EMPLOYEES:
1. Motivating employees starts with motivating yourself
2. always work to align goals of the organization with goals of employees
3. Key to support the motivation of your employees is understanding what
motivates each of them.
4. Recognize that supporting employees motivation is a process, not a task
5. Support employees policies by using motivation by organization systems.

Worker motivation must also be viewed from 2 perspectives:

1. Inner drives
2. Outer (external) motivators.

A persons inner drives push and propel him/her towards an employer, a particular job,
career, line of study, or other activity. The outer(external)motivators are the mirror
image the employer or outside world offers in response to the inner drives. In order to
attract the cream of the crop of available workers, same as in his/her dealings with
customers, the employer not only tries to satisfy these basic needs individual workers
have.

13

MOST WORKERS NEED TO:

1. Earn wages that will enable them to pay for basic necessities and additional
luxuries such as the purchase of a home, or travel

2. save for and enjoy old age security benefits

3. Have medical and other insurance coverage

4. acquire friends at work

5. win recognition

6. Be acknowledge and rewarded for special efforts and contributions

7. Be able to advance in life and career-wise

8. Have opportunities for self-development

9. Improve their skills, knowledge, and know-how

10. Realize their ideal(s)

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THE EMPLOYER RESPONDS TO THOSE NEEDS BY OFFERING AND

PROVIDING:
1. Employment
2. Adequate pay
3. Assistance to workers for their special needs(such as child care arrangements,
transportation, flexible work schedule).
4. Job security
5. Clear company policies
6. Clear and organized work procedures
7. A safe work environment
8. Medical coverage and other benefits
9. An atmosphere of team work and cooperation
10. Social activities
11. Reward and recognition programs
12. Open lines of communication programs
13. Systematic feedback
14. Motivation programs
15. Opportunities for promotion
16. Company/business information
17. Information on customer feedback
18. Sharing of company goals and objectives
19. Information on the market situation and industry
20. Future expectations

."
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CHAPTER-III
INDUSTRIAL PROFILE
&
COMPANY PROFILE

16

Retail Industry in 2013 at a Glance

The retail sector is enormous within the United States it includes one million stores
and accounts for four trillion dollars in revenue in 2013. Within retail are numerous
categories, covering everything from internet catalog sales, to auto dealers, to
convenience stores, to vending machines, to clothing. Fragmentation in the industry
depends strongly on the specific sub-field some, such as grocery stores are highly
concentrated, while others, like convenience stores, are highly fragmented.
Retail Industry Background
Retail is rife with different categories amongst them, motor vehicle dealers are
responsible for 20 percent of total sales, food and beverage stores for 14 percent and
drug and cosmetic stores for 10 percent. The retail sector is the largest employer in the
United States, consisting of over fifteen million jobs. Retail sales tend to be driven by
personal income, consumer confidence and interest rates, as retail sales trends tend to
resemble that of the economy at large. Large chains and stores have advantages of
superior merchandising, marketing, and supply chain management three things a
franchise owner can take advantage of. Margins generally average between 30 and 40
percent, though it depends on the industry some, like grocery stores, have far lower
margins, but rely on volume to make up the difference, while others sell far lower
volumes, but rely on higher profit margins.
Location is a particularly important factor when operating a brick and mortar retail
store the success or failure of the store may well depend on it. The business owner
must choose whether to locate the store by itself, in a shopping mall, or in a strip mall,
and important factors to choose where to place the store include the local
17

demographics, traffic in the area, whether foot or vehicular, proximity to competitive

and complimentary retailers, and lifestyle.
Seasonality is a general issue retailers must contend with most retailers experience a
large bump in revenue during the winter holiday season, with smaller bumps coming at,
depending on the sector, the back-to-school period, Easter, and Mothers Day. Another
potential issue is inventory turnover in some areas, like grocery stores, inventory lasts
a very limited amount of time. Crime related losses are a continuing problem in retail,
both from shoplifters and from employees sectors with above average losses include
gifts, books and magazines and food items. Keeping up with trends is essential in this
business in many sectors whats popular one day can be out of vogue the next, and
poor forecasting can result in unsellable merchandise.
Retail Industry Issues in the Future
Because retail depends so vitally on the streghth of the economy, and factors like job
growth and interest rates, the economy in general will have to become healthy again
before the retail sector can rebound fully. Particularly, retail sales related to homes,
home improvement services and furniture need a rebound in the real estate market in
order to turn around. As demographics change, retailers will have to keep up with the
changing needs of the populations in their locations. Ethnic minorities, such as
hispanics, are estimated to account for 30 percent of the United States population by
the middle of the century and this may affect the success of some stores and the
desirability of different products in these stores.
Identity theft and credit card fraud are concerns that retailers must deal with. Updating
security technology can be costly, and particularly slow for older companies with
18

outdated systems. Internet sales are rapidly growing worth 5 billion in 1999, they
were worth 140 billion in 2008 and will likely continue to grow in the future, so it is
important for brick and mortar retailers to have online presences.
Growth of Indian Retail

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney,
India retail industry is the most promising emerging market for investment. In 2007, the
retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the
country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.
According to a report by Northbride Capita, the India retail industry is expected to
grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20%
of the total market share. It can be mentioned here that, the share of organized sector in
2007 was 7.5% of the total retail market.
Major Retailers in India
Pantaloon:
Pantaloon is one of the biggest retailers in India with more than 450 stores across the
country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located
across the country. It's growing at an enviable pace and is expected to reach 30 million
sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket Big
Bazaar. It has the following retail segments:

19

Food & Grocery: Big Bazaar, Food Bazaar

Home Solutions: Hometown, Furniture Bazaar, Collection-i

Consumer Electronics: e-zone

Shoes: Shoe Factory

Books, Music & Gifts: Depot

Health & Beauty Care: Star, Sitara

E-tailing: Futurebazaar.com

Entertainment: Bowling Co.

Tata Group
Tata group is another major player in Indian retail industry with its subsidiary Trent,
which operates Westside and Star India Bazaar. Established in 1998, it also acquired the
largest book and music retailer in India Landmark in 2005. Trent owns over 4 lakh sq.
ft retail space across the country.
Reliance
Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's
expecting its sales to reach Rs. 90,000 crores by 2010.

20

AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis
Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in
other segments of retail. It will invest Rs. 8000-9000 crores by 2010.

Retail formats in India

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety
of categories.

Mom-and-pop stores: they are family owned business catering to small sections;
they are individually handled retail outlets and have a personal touch.

Departmental stores: are general retail merchandisers offering quality products

and services.

Convenience stores: are located in residential areas with slightly higher prices
goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers a mix
of all types of products and services including entertainment and food under a
single roof.

E-trailers: are retailers providing online buying and selling of products and
services.

Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks
and other small items can be bought via vending machine.
21

Category killers: small specialty stores that offer a variety of categories. They
are known as category killers as they focus on specific categories, such as
electronics and sporting goods. This is also known as Multi Brand Outlets or
MBO's.

Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World are a
couple of examples.

Challenges facing Indian retail industry

The tax structure in India favors small retail business

Lack of adequate infrastructure facilities

High cost of real estate

Dissimilarity in consumer groups

Restrictions in Foreign Direct Investment

Shortage of retail study options

Shortage of trained manpower

Low retail management skill

The Future

The retail industry in India is currently growing at a great pace and is expected to go up
22

to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by
the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the
consumer spending has also gone up and is also expected to go up further in the future.
In the last four year, the consumer spending in India climbed up to 75%. As a result, the
India retail industry is expected to grow further in the future days. By the year 2013,
the organized sector is also expected to grow at a CAGR of 40%.
Retail consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, in small or individual lots for direct
consumption by the purchaser. Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys
goods or products in large quantities from manufacturers or importers, either directly or
through a wholesaler, and then sells smaller quantities to the end-user. Retail
establishments are often called shops or stores. Retailers are at the end of the supply
chain. Manufacturing marketers see the process of retailing as a necessary part of their
overall distribution strategy. The term "retailer" is also applied where a service provider
services the needs of a large number of individuals, such as a public utility, like electric
power.
Shops may be on residential streets, shopping streets with few or no houses or in a
shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping
street has a partial or full roof to protect customers from precipitation. Online retailing,
a type of electronic commerce used for business-to-consumer (B2C) transactions and
mail order, are forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to
obtain necessities such as food and clothing; sometimes it is done as a recreational
23

activity. Recreational shopping often involves window shopping (just looking, not
buying) and browsing and does not always result in a purchase.

Etymology
Retail comes from the French word retailler, which refers to "cutting off my hands, clip
and divide" in terms of tailoring (1365). It first was recorded as a noun with the
meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail
was to "cut off, shred, off my toes paring". Like the French, the word retail in both
Dutch and German (detailhandel and Einzelhandel respectively), also refers to the sale
of small quantities of items.

Types of retail outlets

A marketplace is a location where goods and services are exchanged. The traditional
market square is a city square where traders set up stalls and buyers browse the
merchandise. This kind of market is very old, and countless such markets are still in
operation around the whole world.
In some parts of the world, the retail business is still dominated by small family-run
stores, but this market is increasingly being taken over by large retail chains.
Retail is usually classified by type of products as follows:

Food products

24

Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting

goods, etc.

Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:

Department stores - very large stores offering a huge assortment of "soft" and
"hard goods; often bear a resemblance to a collection of specialty stores. A
retailer of such store carries variety of categories and has broad assortment at
average price. They offer considerable customer service.

Discount stores - tend to offer a wide array of products and services, but they
compete mainly on price offers extensive assortment of merchandise at
affordable and cut-rate prices. Normally retailers sell less fashion-oriented
brands. However the service is inadequate.;

General merchandise store - a hybrid between a department store and discount

store;

Supermarkets - sell mostly food products;

Warehouse stores - warehouses that offer low-cost, often high-quantity goods

piled on pallets or steel shelves; warehouse clubs charge a membership fee;

Variety stores or "dollar stores" - these offer extremely low-cost goods, with
limited selection;

Demographic - retailers that aim at one particular segment (e.g., high-end

retailers focusing on wealthy individuals).
25

Mom-And-Pop or Kirana Stores: is a retail outlet that is owned and operated by

individuals. The range of products are very selective and few in numbers. These
stores are seen in local community often are family-run businesses. The square
feet area of the store depends on the store holder.

Specialty Stores: A typical specialty store gives attention to a particular category

and provides high level of service to the customers. A pet store that specializes
in selling dog food would be regarded as a specialty store. However, branded
stores also come under this format. For example if a customer visits a Reebok or
Gap store then they find just Reebok and Gap products in the respective stores.

Convenience Stores: is essentially found in residential areas. They provide

limited amount of merchandise at more than average prices with a speedy
checkout. This store is ideal for emergency and immediate purchases.

Hypermarkets: provides variety and huge volumes of exclusive merchandise at

low margins. The operating cost is comparatively less than other retail formats.
A classic example is the Metro in Bangalore.

Supermarkets: is a self service store consisting mainly of grocery and limited

products on non food items. They may adopt a Hi-Lo or an EDLP strategy for
pricing. The supermarkets can be anywhere between 20,000-40,000 square feet.
Example: SPAR supermarket.

Malls: has a range of retail shops at a single outlet. They endow with products,
food and entertainment under a roof. Example: Sigma mall and Garuda mall in
Bangalore, Express Avenue in Chennai.

26

Category Killers or Category Specialist: By supplying wide assortment in a

single category for lower prices a retailer can "kill" that category for other
retailers. For few categories, such as electronics, the products are displayed at
the centre of the store and sales person will be available to address customer
queries and give suggestions when required. Other retail format stores are
forced to reduce the prices if a category specialist retail store is present in the
vicinity. For example: Pai Electronics store in Bangalore, Tata Croma.

E-tailers: The customer can shop and order through internet and the
merchandise are dropped at the customer's doorstep. Here the retailers use drop
shipping technique. They accept the payment for the product but the customer
receives the product directly from the manufacturer or a wholesaler. This format
is ideal for customers who do not want to travel to retail stores and are
interested in home shopping. However it is important for the customer to be
wary about defective products and non secure credit card transaction. Example:
Amazon and Ebay.

Vending Machines: This is an automated piece of equipment wherein customers

can drop in the money in machine and acquire the products. For example: Soft
drinks vending at Bangalore Airport.

Other types of retail store include:

Automated Retail stores are self service, robotic kiosks located in airports, malls
and grocery stores. The stores accept credit cards and are usually open 24/7.
Examples include ZoomShops and Redbox.
27

Big-box stores encompass larger department, discount, general merchandise,

and warehouse stores.

Convenience store - a small store often with extended hours, stocking everyday
or roadside items;

General store - a store which sells most goods needed, typically in a rural area;

Retailers can opt for a format as each provides different retail mix to its customers
based on their customer demographics, lifestyle and purchase behaviour. A good format
will lend a hand to display products well and entice the target customers to spawn sales.

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COMPANY PROFILE

Heritage at a Glance:
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)

29

Limited (HFIL). The annual turnover of Heritage Foods crossed Rs.1274 crores in
2011-12.

Recognitions
1st prize in Energy Conservation
Main Dairy Plant, Gokul, near Kasipentla on Tirupati- Chittoor Highway had won the
Prestigious 1st prize in Energy Conservation for the Year 2012 at the National Level for
it's outstanding performance in conserving the Natural Resources through the most
efficient use of Energy.
Presently Heritages milk products have market presence in Andhra Pradesh,
Karnataka, Kerala, Tamil Nadu and Maharastra 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.
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)
About the founder:
Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic,
Progressive and Visionary Leaders of the 21st Century. With an objective of bringing
prosperity in to the rural families through co-operative efforts, he along with his
relatives, friends and associates promoted Heritage Foods in the year 1992 taking
opportunity from the Industrial Policy, 1991 of the Government of India and he has
been successful in his endeavour.
30

At present, Heritage has market presence in all the states of South India.
More than three thousand villages and five lakh farmers are being benefited in these
states. On the other side, Heritage is serving more than 6 lakh customers needs,
employing more than 700 employees and generating indirectly employment
opportunity to more than 5000 people. Beginning with a humble annual turnover of just
Rs.4.38 crores in 1993-94, the sales turnover has reached close to Rs.300 crores during
the financial year 2005-2006.
Sri Naidu held various coveted and honorable positions including Chief
Minister of Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives &
Cinematography, Member of the A.P. Legislative Assembly, Director of A.P. Small
Industries Development Corporation, and Chairman of Karshaka Parishad.
Sri Naidu has won numerous awards including " Member of the World
Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time
Asia ), " Business Person of the Year " (Economic Times), and " IT Indian of the
Millennium " ( India Today).Sri Naidu was chosen as one of 50 leaders at the forefront
of change in the year 2000 by the Business Week magazine for being an unflinching
proponent of technology and for his drive to transform the State of Andhra Pradesh .

Forward looking statements:

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We have grown, and intended to grow, focusing on harnessing our

willingness to experiment and innovate our ability to transform our drive towards
excellence in quality, our people first attitude and our strategic direction.
Mission
Bringing prosperity into rural families of India through co-operative efforts and
providing customers with hygienic, affordable and convenient supply of " Fresh and
Healthy " food products.
Vision
To be a progressive billion dollar organization with a pan India foot print by 2015.
To achieve this by delighting customers with "Fresh and Healthy" food products, those
are a benchmark for quality in the industry.
We are committed to enhanced prosperity and the empowerment of the farming
community through our unique "Relationship Farming" Model.
To be a preferred employer by nurturing entrepreneurship, managing career aspirations
and providing innovative avenues for enhanced employee prosperity.

Heritage Slogan:

32

When you are healthy, we are healthy

When you are happy, we are happy
We live for your "HEALTH & HAPPINESS"
Quality policy of HFIL:
We are committed to achieve customer satisfaction through hygienically
processed and packed Milk and Milk Products. We strive to continually improve the
quality of our products and services through upgradation of technologies and systems.
Heritage's soul has always been imbibed with an unwritten perpetual
commitment to itself, to always produce and provide quality products with continuous
efforts to improve the process and environment.
Adhering to its moral commitment and its continuous drive to achieve
excellence in quality of Milk, Milk products & Systems, Heritage has always been
laying emphasis on not only reviewing & re-defining quality standards, but also in
implementing them successfully. All activities of Processing, Quality control, Purchase,
Stores, Marketing and Training have been documented with detailed quality plans in
each of the departments.
Today Heritage feels that the ISO certificate is not only an epitome of
achieved targets, but also a scale to identify & reckon, what is yet to be achieved on a
continuous basis. Though, it is a beginning, Heritage has initiated the process of
standardizing and adopting similar quality systems at most of its other plants.
Commitments:
33

Milk Producers:
Change in life styles of rural families in terms of:

Regular high income through co-operative efforts.

Women participation in income generation .

Saved from price exploitation by un-organized sector .

Remunerative prices for milk .

Increase of milk productivity through input and extension activities

Shift from risky agriculture to dairy farming

Heritage

Financial support for purchase of cattle; insuring cattle

Establishment of Cattle Health Care Centers

Supplying high quality Cattle feed

Organizing "Rythu Sadasu" and Video programmes for educating the farmers in
dairy farming

Customers:

Timely Supply of Quality & Healthy Products

34

Supply high quality milk and milk products at affordable prices

Focused on Nutritional Foods

More than 4 lakh happy customers

High customer satisfaction

24 hours help lines ( <10 complaints a day)

Employees:

Enhancing the Technical and Managerial skills of Employees through

continuous training and development

Best appraisal systems to motivate employees

Incentive, bonus and reward systems to encourage employees

Heritage forges ahead with a motto "add value to everything you do"

Returns:
Consistent Dividend Payment since Public Issue (January 1995)
Service:

Highest impotence to investor service; no notice from any regulatory authority

since 2001 in respect of investor service

Very transparent disclosures

35

Suppliers:
Doehlar: technical collaboration in Milk drinks, yogurts drinks and fruit
flavoured drinks Alfa-Laval: supplier of high-end machinery and technical support
Focusing on Tetra pack association for products package.
Society:

Potential Employment Generation

More than 3500 employees are working with heritage

More than 9500 procurement agents got self employment in rural areas
More than 5000 sales agents associated with the company

Employment for the youth by providing financial and animal husbandry support
for establishing MINI DAIRIES

Producing highly health conscious products for the society

Qualities of management principles:

1.

Customer focus to understand and meet the changing needs and

expectations of customers.

2.

People involvement to promote team work and tap the potential of

people.

3.

Leadership to set constancy of purpose and promote quality culture

trough out the organization.
36

4.

Process approach to assess the efficiency and effectiveness of each

process.

5.

Systems approach to understand the sequence and interaction of process.

6.

Factual approach to decision making to ensure its accuracy.

7.

Continual improvement processes for improved business results.

8.

Development of suppliers to get right product and services in right time

at right place.

Product/Market wise performance:

The total turnover is Rs 341 Crores during the financial year 2006-07
against the turnover of 292.02 Crores in 2005-06. Today Heritage distributes quality
milk & milk products in the states of A.P, Karnataka, Kerala & Tamil nadu.
During the year 2006-07 liquid milk sales was Rs.28329.79 lakhs
against Rs.24525.23 lakhs in the previous year. The sales of miik products including
bulk sales of cream, ghee and butter were recorded Rs 5781.59 lakhs against Rs
4677.21 lakhs.
Milk sales:
23% growth was recorded in AP 2.38 lakhs litres per day(LLPD) in 2006-07
against 1.93 LLPD in 2005-06. 13% growth was recorded in Tamilnadu-1.53 LLPD in
2006-07 against 1.35 LLPD in 2005-06. Over all growth of 6% was recorded- 5.49
LLPD in 2006-07 against 5.16 LLPD. Flavoured milk sales recorded a growth rate of
77% over 2005-06. Butter milk sales have gone up by 45% over 2005-06.
37

Outlook:
Considering the growth potential in the liquid milk market, the company
has drawn plans to increase its market share in the existing markets and to enter into
new markets there by doubling revenues in dairy business in the next 3 years. To
achieve this object, company is undertaking major expansion in dairy business by
inverting over Rs20 crores during 2006-07 and over Rs10 crores during the current year
to strengthen the milk procurement.
CODE OF CONDUCT AND ETHICS FOR DIRECTORS & SENIOR
MANAGEMENT
PREFACE This Code of Conduct and Ethics (herein after referred to as the "Code") has
been adopted by the Board of Directors of Heritage Foods (India) Limited (herein after
referred to as "the Company") , to be applicable to all Directors and all members of
senior management i.e., personnel who are a part of the core management team and
including all functional heads of the company (herein after referred to as the 'Members')
with

effect

from

December

23,

2005.

This Code helps the Members maintain good standards of business conduct, foster
ethical and moral conduct and promote a culture of honesty and accountability, so as to
set an example to others in the company.

The Code is not an all-inclusive comprehensive policy and cannot anticipate every
situation that may arise in the course of the company's business. The Members are
expected to bear in mind the essence and substance of the Code in all their dealings /
transactions with the Company.
38

CORPORTE OPPORTUNITIES
Members owe a duty to the Company to advance its legitimate interests when the
opportunity to do so arises and are expressly prohibited from improper use of
information / property or taking improper advantage of their position. PREVENTION
OF INSIDER TRADING Insider trading is prohibited both by the Law as well as by
the company policy . Insider trading generally involves the act of subscribing to or
buying or selling of the Company's securities, when in possession of any Unpublished
Price Sensitive Information about the company.

"Price sensitive information " is such information, which relates directly or indirectly to
the company and which if published is likely to materially affect the price of securities
of the Company. It is important to note that both positive and negative information
could be price sensitive.

Members shall not derive benefit or assist others to derive benefit or assist them to
derive benefit on their behalf by giving investment advice from the available access to
and possession of information about the Company, which is not in public domain and
thus constituting insider information. Members shall comply with the prevention of
insider trading guidelines as issued by Securities Exchange Board of India (SEBI).
SECURITIES MARKET POLICY
The Company is committed to comply with securities laws in all the markets in which
the Company's securities are listed. The company prohibits fraudulent and unfair trade
practices with regard to the securities of the Company by all Members.
CONFIDENTIALITY OF INFORMATION POLICY

39

The Company's confidential information is a valuable asset. Members shall understand

that protection of all confidential information is essential. Members should undertake
and be committed to protecting business and personal information of confidential
nature obtained from clients, associates and employees.

Any information concerning the Company's business, its customers, suppliers etc which
is not in the public domain and to which the Members have access or possesses such
information, shall be considered confidential and held in confidence, unless authorized
to disclose or such disclosure is required as a matter of law. Members shall not provide
any information either formally or informally, to the press or any other publicity media,
unless specially authorized to do so.

COMPLIANCE WITH LAWS, RULES AND REGULATIONS

Members should comply with all applicable laws, rules, and regulations, both in letter
and sprit. In order to assist the Company in promoting the lawful and ethical behaviour,
Members have to report any possible violation of law, rules, regulations or the code of
conduct to the Company Secretary.
PROTECTION AND PROPER USE OF COMPANYS ASSETS
All Members have the responsibility to protect the assets of the company, ensure
optimal utilization of assets and to report and record all transactions. Members shall
protect the Company's assets from loss, damages, misuse or theft and assets may only
be used for business purposes and other purposes specifically approved by management
and must never be used for any personal or illegal purposes.
40

COMPETITION POLICY
The Company shall compete only in an ethical and legitimate manner. It prohibits all
actions that are anti- competitive or otherwise contrary to laws that govern competitive
practices in the market place. Members shall uphold the same.
SELECTING SUPPLIERS
The Company's suppliers make significant contribution to its success. The Company's
policy is to purchase / avail supplies based on need, quality, service, price and other
commercial terms and conditions. Suppliers should be selected based on merit, price,
quality and performances. The Company's policy is to select significant suppliers
through a competitive bid process wherever possible. Under no circumstance should
the Company or its employee, agent or contractor attempt to coerce suppliers in any
way.
ENVIRONMENT, HEALTH AND SAFETY POLICY
Members shall take environmental consciousness a step further as a company and
contribute to preserving nature as well as safety measures in own respective work areas.
All Members are responsible for conducting safe and environmentally sound
operations; this is in the interest of our own well-being and the quality of life of others.
Members shall abide by this policy.
ELIMINATION OF CHILD LABOUR
It is the Company's policy not to support child labour. The Company is committed to
implement the provisions of the Child Labour (Prohibition and Regulation) Act, 1986.
To, promote this the Company encourages its suppliers also to work towards a no child
41

labour policy in their industries. Members shall strictly observe that no child labour is
employed in the company.
ABOLITION OF FORCED LABOUR
The Company strictly prohibits forced or compulsory labour. The Company is
committed to ensuring that employees enter into employment and stay on in the
Company of their own free will. Members shall uphold this policy.
GIFTS & DONATIONS
No Member shall receive or offer, directly or indirectly, any gifts, donations,
remuneration, hospitality, illegal payments and comparable benefits which are intended
or perceived to be intended to obtain business (or uncompetitive) favours or decision
for the conduct of the business. Normal gifts of commemorative nature for special
events may be accepted and reported to the Board.
OTHER DIRECTORSHIPS
The Company feels that serving on the Board of directors of other companies may raise
substantial concerns about potential conflict of interest. Therefore all Directors shall
report / disclose such relationships to the Board on an annual basis. It is felt that service
on the Board of a direct competitor is not in the interest of the Company. Hence all the
Directors are barred in accepting such position without the concurrence of the Board.
ACCOUNTABILITY
The Board of Directors (BOD) shall oversee the Company's adherence to ethical and
legal standards. All employees and members of the BOD shall undertake to stop or
42

prevent actions that could harm customers or reputation of the Company and to report
such actions as soon as they occur to take corrective steps and see that such actions are
not repeated.
COMPLIANCE WITH CODE OF CONDUCT
Each Director and senior management personnel shall adhere to this code of conduct
and affirm compliance with the code on an annual basis as per the Annexure to the
Code. Violation of this Code will lead to appropriate disciplinary action.
WAIVER OF THE CODE
Any waiver of the applicability of the Code or waiver of application of any provision of
the Code to any Member shall be approved by the Board of Directors and disclosed as
required by Law or SEBI / Stock Exchange regulations.

BRANCHES OF HFIL:
HFIL has 3 wings. They are
1. Dairy
2. Retail
3. Agribusiness
1. Dairy:
It is the major wing among all. The dairy products manufactured by HFIL are
43

Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream.
2. Retail:
In the retail sector HFIL has outlets namely Fresh@. In those stores the
products sold are vegetables, milk& milk products, grocery, pulses, fruits etc.
In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4
respectively are there. Totally there are 26 retail shops are there.
Fresh@ is a unique chain of retail stores, designed to meet the needs of
the modern Indian consumer. The store rediscovers the taste of nature every day
making grocery shopping a never before experience.

The unique& distinctive feature of Fresh@ is that it offers the widest

range of fresh fruits and vegetables which are directly hand picked from the farms.
Freshness lies in their merchandise and the customers are always welcomed with fresh
fruits and vegetables no matter what what time they walk in.
3. Agri Business:
In this business HFIL employees will go to farmers and have a deal with
them. Those farmers will sell their goods like vegetables, pulses to HFIL only. And
HFIL will transport the goods to retail outlets.
The agricultural professors will examine which area is suitable to import
vegetables from and also examine the vegetables, pulses and fruits in the lab. And
finally they report to the Head-Agribusiness. Representatives as per the instructions
44

given by the agri professors will approach the farmers directly and make a deal with
them. It is the process of registering the farmers.
Heritage Finlease Heritage Finlease Limited was incorporated under the companies Act
1956 on 23rd of February 1996 and commenced business from 2nd day of April 1996.
The Registered office is located at 6-3-541/c Punjagutta, Hyderabad-500082.
The following are the directors of the company:
Sri D.Seetharamaiah
Smt. N. Bhuvaneswari
Sri M. Sivarama Varaprasad
Sri R.S.Bakkannavar
The Company was registered as Non Banking Financial Institution on 5th Day of
December 1998 by Reserve Bank of India as a Deposit Taking Company under the
category

Hire

Purchase

Company.

At Present the company is allowing Dairy Loans to Small Farmers under Tie up
arrangement with Heritage Foods (India) Limited. The Company has been earning
profits from inception and functioning in conformity with the rules and directions of
Reserve Bank of India.
3.3 MOTIVATION PHILOSOPHY IN HERITAGE FOODS (INDIA) LIMITED
(HFIL)
HERITAGE FOODS (INDIA) LIMITED (HFIL) recognizes that employees
are the most important resource of any organization. In the modern world, the human
factor alone can provide a competitive edge to any organization.

As one author

remarks Some of the best assets walk into and outside the organization everyday.
45

All HRD efforts are based on the fundamental concept that Human-beings
infinite potential for growth and development that can be converted into performance
by investment of time and effort by management at all levels. In HERITAGE FOODS
(INDIA) LIMITED (HFIL) Human Resource Management is identified as a key
area providing the cutting edge to the organization in its endeavor towards competitive
excellence. The HRD philosophy of the organization is based on continuous efforts to
enhance the knowledge develop skills and reorient attitude of employees to keep pace
with the changing environment. An attempt is made to align HD programmes with the
basic business strategy.

3.4 TRAINING OBJECTIVES OF HERITAGE FOODS (INDIA) LIMITED

(HFIL):
Objectives crystallize the fundamental principles enunciated in the mission and
policy statement. To operational the policy mission and statement, the following are
the objectives of HERITAGE FOODS (INDIA) LIMITED (HFIL) of different training
programmes.

1.

To ensure that adequate time and efforts are invested at all levels of
management towards people management.

2.

To instill in all employees a feeling of pride and belong with an intention to

increase organizational loyalty.

46

3.

To design specific programmes with special focus on equipping the employees

to meet the emerging challenges and opportunities.

4.

To help employees improve their core competency that has direct impact on
their performance and productivity.

5.

To inculcate in the employee, the need for observing sound organization

principles in order to ensure healthy organization practices.

A study of the fundamental mission and philosophy of HERITAGE FOODS

(INDIA) LIMITED (HFIL) brings out to our notice the fundamental assumptions
behind all HRD attempts at
S YNDICATE BANK
A high level of confidence in capacity and integrity of all employees.
Recognition by the management of need for the integration of the objectives of
the organization and the needs of the individual employees.
The need to recognize the fact that HRD attempts must be incorporated into the
basic business policies and practices.
The conscious attempt to make every individual feel that he is a part of a team,
which has a specific objective.
The need to ensure that training is a proactive process, which must be designed
taking into consideration future changes in the environment, the business, and
the competition and customer expectations.
The need to constantly update job specific skills among employees to make
them more efficient and effective in discharging their duties.
To aim at attitudinal changes required making the employee more conscious of
his role as a representative of the organization.
47

 To provide avenues for the growth and development of the individual through
actualization of inherent potentialities.

3.4.1 TRAINING PERIOD

The duration of a training varies with skill to be acquired, the complexity of the
subject, a trainees aptitude and ability to understand, and the training media used.

Generally, a training period should not be unduly long: if it is, trainees may feel
bore uninterested. The ideal session should not go beyond 2 to 3 hours at stretch, with
a break in between 2 sessions. It convenient employees may be trained for a week or a
fortnight for an hour or two, every day after work hours.

The training period may extend from 3 weeks to 5 months even more,
depending upon job requirements.

The physical locations of the programmes should be in pleasant surrounding

away from the noise and tension of the work place.

3.4.2 IMPLEMENTATION OF TRAINING

Once the training programmes have been designed, it needs to be implemented.
Implementation is beset with certain problems. Firstly, most managers are action
oriented and frequently say no to training efforts.

Secondly, there is problem of

location suitable trainers within an organization. Any training programmed

implementation involves action on the following:

48

Deciding the location and organizing training and other facilities.

Scheduling the training programme.

Conducting the programme

Monitoring the progress of trainees.

3.5 TRAINING EVALUATION

Objectives of training evaluation is to determine the ability of the participant in
the training programme to perform jobs for which they were trained, the specific nature
of training deficiencies, whether the trainees required any additional on the job training
and the extent of training not needed for the participants to meet job requirements.

3.5.1 PRINCIPALS OF EVALUATIONS

Evaluation specialist must be clear about the goals and purposes of evaluation.

Evaluation must be continuous.

Evaluation must be specific.

Evaluation must be provide the means and focus for trainers to be able to
appraise themselves, their practices, and their products.

It is mainly based on objective methods.

TRAINING EFFECTIVENESS
Training effectiveness is the degree to which trainees are able to learn and apply
the knowledge and skills acquired in the training programme.
49

It depends to the

attitudes, interests, values, and expectations of the trainees and the training
environment. A training programmer is likely to be more effective when the trainees
want to learn, are involved in their jobs, have career strategies. Contents of a training
programme, and the ability and motivation of trainers also determine training
effectiveness.

3.5.2 METHODS OF EVALUATION

Several methods can be employed to collect data on the outcomes of training. Some of
these are:
1.

The opinions and judgments of trainers, superiors, and peers.

2.

Asking the trainers to fill up evaluation forms.

3.

Using a questionnaire to know the reactions of trainees,

4.

Giving oral and written tests to trainees to ascertain how far they have learnt,

5.

Arranging structured interviews with the trainees,

6.

Comparing trainees performance on the job before and after training.

7.

Studying profiles and career development charts of trainees,

8.

Measuring levels of productivity, wages, costs, absenteeisms and employee

turnover after training.

9.

Trainees comments and reactions during the training period, and Cost benefit
analysis of training programme.

3.6 FEEDBACK
After the evaluation, the situation should be analysed to identify the possible
causes for difference between the expected outcomes and the actual outcomes. The
precautions should be taken in designing and implementing future training programme

50

so as to avoid these causes. The outcomes of training programme should justify the
time, money, and efforts invested by the organization in training. Information collected
during evaluation should be provided to the trainees and the trainers as well as to others
concerned with the designing and implementation of training programmes. Follow-up
action is required to ensure implementation of evaluation report at every stage.

3.7 ORGANISATION DEVELOPMENT:

Change in organizations is a social process, and not merely an analytical one. The field
of Organisation Development (OD) has evolved a number of approaches to create
organic conditions that lead to employee participation in decisions and freedom to
initiate ideas to improve organizational processes. Thus OD is a systematic process to
planned change. It involves following four stages:
Diagnosis

Establishing the current situation in the organization.

Unfreezing

Getting people ready to accept change.

Intervention :

Introducing change

Freezing

Making sure that change sustains for a long period of time.

A variety of OD methods have been developed for facilitating change through

using these stages in India (Ramnarayan et al, 1998).

1. Action Research :Action Research involves systematically collecting data on

relevant problems, analyzing and feeding the data back to the organization, and
helping the organization to take action to address the problems. It attempts to tap
the capabilities of the employees with the dual purpose of contributing to successful
change efforts as well as fulfil employee needs for greater involvement. The
approach seeks to empower the concerned organizational members so that they may
51

become self-reflective practitioners rather than mere spectators in the process of

organizational change. When people become self-reflective practitioners, not only
would meaningful solutions emerge, but more important, they will develop the
abilities to diagnose and solve future problems.

2. Process Consultation: Process consultation is an OD method that helps managers

and employees improve the processes that are used in organizations. The processes
include: communication, conflict resolution, decision making, group interaction,
and leadership. One of the distinct features of the process consultation approach is
that an external or internal consultant is used. The consultant helps the employees to
help themselves. For instance, in team building activity, a work team is brought
together to discuss conflicts, goals, processes of communication and decisionmaking, creativity and leadership. The team then plans to overcome problems and
improve results. Schein (1969) who has pioneered the process consultation
approach has identified four types of interventions that process consultants often
employ in working with groups.
(a) Agenda-setting interventions are aimed at making the group aware of the
internal processes by which it makes decisions and solves problems.
(b) Date feedback interventions diagnose the interpersonal processes in a group,
and give feedback to enable group members to improve processes.
(c) Counseling is required during or after a feedback session to ensure that
behaviours are suitably modified.
(d) Structural interventions involve suggestions on how work should be
allocated, committees organized, or group norms enforced.

52

3. Training workshops and conferences: Training has become an important OD tool

in the change process. Training programs are used not only to generate ideas,
develop collaboration among employees, enhance skill,

but also for the

development of new roles, systems, procedures, and work methods. Top

managements involvement in training programmes provides the context for
defining a clear framework of the company strategy. Training workshops and
conferences represent an important first step in the organizational change process as
they have the potential to achieve the following objectives:
(a) Raise the consciousness of participants.
(b) Bring awareness of the gaps between reality and ideals.
(c) Provide a common platform to articulate shared and
difficulties.
(d) Generate ideas for change.
(e) Create greater awareness of change.
Training must be followed up with appropriate management actions and
initiatives to make the desired change in reality.

IDENITIFYING TRAINING NEEDS

All training activities must be related to the specific needs of the organization
the needs and the individual employees. A training programme should be launched
only after the training needs are assessed clearly and specifically. The effectiveness of
a training programme can be judged only with the help of training needs the gap
between the existing and required levels of knowledge, skills, and performance and
should be specified. The problem areas that can be resolved through training should
also be identified.
53

Training needs can be identified through the following types of analysis

Organizational Analysis
It involves a study of the entire organization. In terms of its objectives, it is
resources, resource allocation and utilization, growth potential and its environment. Its
purpose it to determine where training emphasis should be placed within the
organization. Organizational analysis consists of the following elements:

Analysis of objectives

Resource Utilization Analysis

Organization analysis

Environmental Scanning

Task or Role Analysis

It is a systematic and detailed analyses of jobs to identify job contents, the
knowledge, skills, and aptitudes required and work behavior.

Manpower Analysis
In the analysis the persons to be trained and the changes required in the
knowledge, skills and aptitudes of an employee are determined. Training can be
relevant and viable if the three types of analysis given above are carried on
continuously more over this analysis should be integrated in a carefully designed and
executed programme.

54

Training Objectives:
Generally line manager ask the personnel manager to formulate the training
policies. The personnel Manager formulate the following training objectives in keeping
with companys goals and objective:
a.

To prepare the employee both new and old to meet their present as well as the
changing requirements of the job and the organization.

b.

To prevent obsolescence.

c.

To prepare employees for higher-level tasks.

d.

To assist employees function more effectively in there present positions by

exposing them to the latest concepts, information, and techniques and
developing the skills they will need in their particular fields.

e.

To built up a second line of competent officers and prepare them to occupy

more responsible positions.

f.

To develop the potentialities of people for the next level job.

g.

To ensure smooth and efficient working of a department.

h.

To ensure economical; output of required quality.

i.

To promote individual and collective morale, a sense of responsibility,

cooperative attitudes and good relationships.

Designing a Training Programme

In order to achieve the training objectives, an appropriate training policy is
necessary.

A training policy represents the commitment of top management to

employee training. It consists to rules and procedures concerning training. A training

policy is required:
a. To indicate the companys intention to develop its employees;

55

b. To guide the design and implementation of training programmes;

c. To identify the critical areas where training is to be given on a priority basis;
and
d. To provide appropriate opportunities to employees for their own betterment.

A sound training policy clearly defines the following issues:

i)

The results expected to be achieved through training

ii)

The responsibility for the training function

iii)

The priorities for training

iv)

The type of training required

v)

The time and place of training.

vi)

The payments to be made to employees during the training period.

vii)

The outside agencies to be associated with the training.

viii)

Relationship of training to the companys labour policy.

Training Methods and Techniques

The methods employed for training of operatives may be described as under
On-the-job Training
In this method, the trainee is placed on a regular job and taught the skills
necessary to perform it. The trainee learns under the guidance and supervision of the
superior or an instructor.

The trainee learns by observing and handling the job.

Therefore, it is called learning by doing.

Several methods are used to provide on the job training e.g., coaching job
rotation, committee assignments, etc. A popular form of the job training is Job
56

Instruction Training (JIT) or step-by-step learning. It is widely used in the United

States to prepare IInd class employees. It is appropriate for acquisition or improvement
of motor skills and routine and repetitive operations. The JIT involves the following
steps:

Preparing the trainee for instruction. This involves putting the trainee at ease,
securing his interest and attention, stressing the importance of the job, etc.

Presenting the job operations or instructions in terms of what the trainee is

required to do. The trainee is put at work site and each step of the job is
explained to him clearly.

Applying and trying out the instructions to judge how far the trainee has
understood the instructions.

Following up the training to identify and correct the deficiencies, if any.

JIT method provides immediate feedback, permits quick correction of errors

and provides extra practice when required. But it needs skilled trainers and preparation
in advance.
Vestibule Training
In this method, a training center called vestibule is set up and actual job
conditions are duplicated or simulated in it. Expert trainers are employed to provide
training with the help of equipment and machines, which are identical with those in
used at the workplace.

Apprenticeship Training

57

In this method, theoretical instruction and practical learning are provided to

trainees in training institutes.

In India, the government has established Industrial

Training Institutions (ITI) for the purpose.

Under the Apprenticeship Act 1962

employers in specified industries are required to train the prescribed number of persons
in designated trade. The aim is to develop all-round craftsmen. Generally, a stipend is
paid during the training period. Thus, it is an earn when you learn scheme.

CHAPTER-IV
58

DATA ANALYSIS AND INTERPRETATION

4.1 TEAMWORK AND COOPERATION

1. The people I work with cooperation to get the work done.

Table - 1
SATISFACT

NEUTRAL

DISSATISFACTIO

IST CLASS

ION
92

N
4

EMPLOYEE
IIND CLASS

40

20

EMPLOYEE
IIIRD CLASS

77

23

59

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

Char t - 1

100
50
0

INTERPRETATION:
60

Ist class employees 92% satisfied

IInd class employee 80% satisfied
IIIrd class employee 77% satisfied
The employees cooperate each other well to complete the work

2.My fellow employees are committed to do quality work.

Table - 2
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

92

EMPLOYEE
IIND

68

24

87

10

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
61

Source:- The data is obtained using a structured questionnaire.

Chart - 2

100
90
80
70
60
50
40
PERCENTAGE

30
20
10
0

62

INTERPRETATION:

Ist class employees 92% satisfied

IInd class employee 68% satisfied
IIIrd class employee 87% satisfied
Employees are committed to do quality work.

3.Iam involved in decisions that affect my work.

Table - 3
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

63

24

EMPLOYEE
IIND

48

36

16

63

30

CLASS
EMPLOYEE
IIIRD
CLASS
63

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

Chart - 3
70
60
50
40
30
PERCENTAGE 20
10
0

64

INTERPRETATION:

Ist class employees 68% satisfied

IInd class employee 48% satisfied
IIIrd class employee 63% satisfied
We can clearly make out that the IInd class employees are not satisfied
with the decisions they are involved that affect their work.

4.I believe that al the divisions in the company and work together to
achieve common goal
Table - 4
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

84

16

EMPLOYEE
IIND

88

CLASS
EMPLOYEE

65

IIIRD

60

37

CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

Chart - 4

100
90
80
70
60
50
40
Percentage

30
20
10
0

66

INTERPRETATION:

Ist class employees 88% satisfied

IInd class employee 84% satisfied
IIIrd class employee 60% satisfied
The employees in al the divisions of the company interact with each other
well in order to achieve the goal of the organization.

5.I have information to do my job well.

Table - 5
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

88

12

EMPLOYEE
IIND

88

12

CLASS
EMPLOYEE

67

IIIRD

80

17

CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

Chart - 5

68

100
90
80
70
60
50
40
Percentage

30
20
10
0

INTERPRETATION:

Ist class employees 88% satisfied

IInd class employee 84% satisfied
IIIrd class employee 60% satisfied
The graph clearly indicates that the employees have clear information to
do their job well.

6. My manager delegates that work effectively.

69

Table - 6
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

96

EMPLOYEE
IIND

56

40

57

33

10

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

Chart - 6

70

120
100
80
60
Percentage

40
20
0

INTERPRETATION:

Ist class employees 96% satisfied

IInd class employee 56% satisfied
IIIrd class employee 57% satisfied
The information above that the employees are satisfied with their managers
involvement in the work.

7. Iam satisfied with the information I received from management.

Table - 7
71

SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

76

24

EMPLOYEE
IIND

72

24

60

23

17

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

Chart - 7

72

80
70
60
50
40
30
Percentage 20
10
0

INTERPRETATION:

Ist class employees 76% satisfied

IInd class employee 72% satisfied
IIIrd class employee 60% satisfied
The employees are satisfied with the information they received from the
management.

8. My manager is available to me when I have questions or need help.

73

Table - 8
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

72

24

EMPLOYEE
IIND

68

28

60

26

14

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

Chart - 8

74

80
70
60
50
40
30
PERCENTAGE 20

Ist class employee

Iind class employee

IIIrd class employee

10
0

INTERPRETATION:

Ist class employees 72% satisfied

IInd class employee 68% satisfied
IIIrd class employee 60% satisfied
The is always some kind of help for the employees during their work.

9. I can see the link between my work and company objectives.

75

Table - 9
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

64

36

EMPLOYEE
IIND

68

32

66

27

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

Chart - 9

76

80
70
60
50
40
30
Ist class employee
PERCENTAGE
20

Iind class employee

IIIrd class employee

10
0

INTERPRETATION:

Ist class employees 62% satisfied

IInd class employee 68% satisfied
IIIrd class employee 64% satisfied
The employees are able to find the link between their work company
objectives.

10.I link the kind of work I do.

77

Table - 10
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

84

16

EMPLOYEE
IIND

92

93

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

Chart - 10

78

100
90
80
70
60
50
40
PERCENTAGE

30
20
10
0

INTERPRETATION:

Ist class employees 84% satisfied

IInd class employee 92% satisfied
IIIrd class employee 93% satisfied
The information suggests that the employees get the kind of work they
like.

79

11.I am clear about what is expected of me in my position as a result of

the performance appraisal.
Table - 11
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

80

20

EMPLOYEE
IIND

80

20

73

23

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

80

Chart - 11

90
80
70
60
50
40
PERCENTAGE

30
20
10
0

INTERPRETATION:

Ist class employees 80% satisfied

IInd class employee 80% satisfied
IIIrd class employee 73% satisfied
The employees are clear about expectations on doing work.

81

12.My manager assists me to identify my Motivationneeds.

Table - 12
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

72

20

EMPLOYEE
IIND

28

56

16

50

33

17

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

82

Chart - 12

80
70
60
50
40
30
PERCENTAGE 20
10
0

INTERPRETATION:

Ist class employees 72% satisfied

IInd class employee 28% satisfied
IIIrd class employee 50% satisfied
The above graph clearly suggest that IInd class employees and IIIrd class
employee are not satisfied with the need for the identification..

83

13.The employee benefits I receive are attractive and competitive.

Table - 13
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

80

16

EMPLOYEE
IIND

68

30

60

37

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

84

Chart - 13

90
80
70
60
50
40
PERCENTAGE

30
20
10
0

INTERPRETATION:

Ist class employees 80% satisfied

IInd class employee 44% satisfied
IIIrd class employee 50% satisfied
Its clear indication that the IInd class employees and IIIrd class employee
are satisfied with benefits they receive form the management.

85

14.There is someone at work who encourages my development.

Table - 14
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

44

36

20

EMPLOYEE
IIND

48

44

20

23

27

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

86

Chart - 14

60
50
40
30
PERCENTAGE

20
10
0

INTERPRETATION:

Ist class employees 44% satisfied

IInd class employee 48% satisfied
IIIrd class employee 50% satisfied
There is a bit criticism about the encouragement gives towards the
employee development.

87

15.In this company people are rewarded according to their job

performance.
Table - 15
SATISFACTION

NEUTRAL

DISSATISFACTION

IST CLASS

56

32

12

EMPLOYEE
IIND

52

44

70

17

13

CLASS
EMPLOYEE
IIIRD
CLASS
EMPLOYEE
Source:- The data is obtained using a structured questionnaire.

88

Chart - 15

80
70
60
50
40
30
PERCENTAGE 20
10
0

INTERPRETATION:

Ist class employees 56% satisfied

IInd class employee 52% satisfied
IIIrd class employee 70% satisfied
The opinion of Ist class employees and IInd class employees shows that
rewards doesnt match their performance.

89

CHAPTER-V
FINDINGS
CONCLUSION
SUGGESTIONS
BIBLIOGRAPHY
QUESTIONNAIRE

Findings

90

The report in Motivation in HERITAGE FOODS (INDIA) LIMITED

(HFIL)has brought into light the total picture of the employees attitude towards
training and development.

Most of the respondents have expressed that they are interested in the on- the- job
method.

Most respondents expressed that feedback is collected from all the participants in
the program.

The employee in the organization are well participated in the training program.

The training is being given to the employees at regular interval.

Most of the employees are very much satisfied about the selection of the
candidates for training.

Most of the employees are expressed that the training programmed is imparting
the latest technology in the market.

Most of the employees agree with the training programmed meet pre-specified
objectives.

Most of the employees are respond positive with the training programmed
conducted in the organization.

91

CONCLUSION:

In the above perspective, the present chapter makes an attempt to draw some
conclusions in HERITAGE FOODS (INDIA) LIMITED (HFIL). It should be
confessed here that the investigator is conscious of the limitations of the study and the
conclusion drawn on the basis of the sample from a single unit cannot be generalized
about the entire manufacturing sector.

The study examines the readiness for employee motivation in six aspects, namely
effective Communication, Value of people, Clarity, Concept about power, Information
and Learning.
A perusal of data pertaining to combination makes us to conclude that the Executives
have agreed to the effective down ward communication flow, which is a prerequisite for
empowerment.
As far as information sharing with lower rungs is concerned, they are very positive.
One significant conclusion with regards to learning opportunities, which is a basic for
empowerment, is that the executives are favorable and feel that sufficient learning
opportunities should be there for the rank & file.
As far as clarity is concerned, the executives are somewhat agreed i.e., neutral. The
aspect wise percentage analysis leads to the conclusion that the organization is
somewhat ready for employee empowerment because the majority of the Executives in
almost all aspects are concentrated in somewhat ready group.

92

SUGGESTIONS

Employee motivation in HERITAGE FOODS (INDIA) LIMITED

(HFIL)is good and satisfactory

There should be improve of system approach to every employee in

HERITAGE FOODS (INDIA) LIMITED (HFIL)

In HERITAGE FOODS (INDIA) LIMITED (HFIL)every employee

should be motivated in effective manner so that every employee will be
satisfied

All three levels should be take care by HR MANEGER

93

BIBLIOGRAPHY

Prem Chadha, Performance Management, 2009, Macmillan.

P.N. Singh and Neeraj Kumar, Employee Relations Management 2010, Pearson
Education, New Delhi.
Joseph J. Mortocchi, Employee Benefits, 2010, Tata McGraw Hill, New Delhi.
R.Sivarathana Mohan, Industrial Relation and Labour Welfare, 201 PHI Learning
Pvt. Ltd.
.WEBSITE; http:/ heritage.c
http:/ wikipedia.com

www.google.com
www.cite/HRM.COM

Questionnaire

1.The people I work with cooperation to get the work done.

94

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

2.My fellow employees are committed to do quality work.

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

3.Iam involved in decisions that affect my work

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

4.I believe that al the divisions in the company and work together to achieve common
goal
A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

5.I have information to do my job well.

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

6.My manager delegates that work effectively.

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

7.Iam satisfied with the information I received from management

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

8.My manager is available to me when I have questions or need help.

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

95

9.I can see the link between my work and company objectives.
A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

10.I link the kind of work I do.

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

11.I am clear about what is expected of me in my position as a

result of the performance appraisal.
A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

12.My manager assists me to identify my Motivationneeds.

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

13.The employee benefits I receive are attractive and competitive.

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

14.There is someone at work who encourages my development.

A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

15.In this company people are rewarded according to their job performance.
A)SATISFACTION

B)NEUTRAL C) DISSATISFACTION

96