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ON
In Partial Fulfillment of
Requirements for the Award of Degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
Of Dr. Babasaheb Ambedkar Marathwada University, Aurangabad
Submitted by
DEEPALI DESHMUKH
MBA [IIISEM]
Roll No.: FS2215202
Under the Guidance of
MGM
Institute of Management (IOM)
N-6, CIDCO, Aurangabad-431003
2016-2017
This is to certify that the Summer Training Project report on Communication and
Coordination between various Departments in Varroc polymers Pvt. Ltd submitted by
Deepali Dilip Deshmukh is the result of his original research work completed under our
supervision. To the best of our knowledge & belief the work embodied in this Summer Training
Project Report has not formed earlier the basis for the award of any degree or similar title of this
for any other examining body.
I, undersigned, hereby declare that the Summer Training Report on Communication and
Coordination between various departments in Varroc Polymers Pvt. Ltd. submitted by
Deepali Dilip Deshmukh to the MGM Institute of Management, CIDCO, Aurangabad is my
original work & the conclusions drawn there in are based on the data & material collected by
myself.
Firstly I would like to express our immense gratitude towards our institution MGM Institute of
Management, Aurangabad, which created a great platform to attain profound technical skills in
the field of MBA, thereby fulfilling our most cherished goal.
I would like to thank our director, Dr. Col Pardeep Kumar for enlightening me the importance of
summer project. I also thank our Co-ordinate Academics, Prof. Anil Palve and my internal guide,
Prof. Tnuja dube for guiding me in every stage of my project.
I would also like to thank Varroc Polymers Pvt. Ltd. for guiding me and helping me in successful
completion of the project.
Finally I convey my thanks to my beloved parents, friends and my faculties who helped me
directly or indirectly in bringing this project successfully.
Deepali Deshmukh
(MBA FS2215202)
1 PART-I Introduction 7
2 PART-II Profile 12
Industry profile 13
History 14-15
Growth 16-18
Company profile 19
Organizational Structure 33
Data collection 38
5 PART-V
Findings 55
Suggestions 56
SWOT Analysis 58
Bibliography 59
Founded in 1990, Varroc group is an emerging global automotive component manufacturer and
supplier of exterior lighting systems, powertrains, electricals-electonics, body and chassis parts
to leading passenger car and motorcycle segments worldwide. With 35 world-class
manufacturing facilities, 11 engineering centres, 13500 employees and 760 engineering experts
in 10 countries, Varroc group is on an exponential growth trajectory clocking a sales of 1.3
billion USD in 2015-16. The company is a leading global passenger car lighting supplier and the
number one 2-wheeler automotive component supplier in India. Varroc offers best design
solutions that give customers a competitive edge in their markets.
Communication plays a part in almost every aspect of your business, so being able to
communicate well can boost your overall performance. Good communication is essential to
building a cohesive and effective team. Good communication skills are essential to managing the
performance of your team members, and if you know how to communicate well to large groups
you can minimize the risk of industrial problems developing in your workplace. Communication
skills can be particularly important during times of higher workplace stress, for example during
downsizing, where good communication is an essential part of change management. You also
need to communicate well to build and maintain effective relationships with your suppliers and
clients. Communication skills are crucial to dealing with customer complaints effectively and
limiting any negative word-of-mouth about your business. You can draw on communication
skills when you assess the effectiveness of your marketing campaigns. The first step in good
communication is to listen effectively. Todays trend is away from top-down management, where
decisions and policies are proclaimed from above. Good managers now consult a lot with their
teams, using them as a resource for information and suggestions. Consultation is not only a good
way to get ideas on business strategy, it is also a way of making sure that when you do decide on
policies and everyone feels like they have been involved. Your team will be able to implement
policies more effectively if they have been involved in their formulation. They will be more
familiar with the issues you will have dealt first-hand with any misgivings they may have.
Effective listening is based on having the trust of the people you are speaking to. People may not
offer their true opinions when they are wary about how they will be received. So being a good
communicator means winning the trust of those around you. It also means being able to foster a
work environment where people treat each other fairly, where they respect each others opinions
and where there is a minimum of anti-social behavior such as backbiting or rumour mongering.
Bullying or harassment of any kind will build walls in a workplace. It will stunt communication,
shut down co-operation and hurt efficiency. Good communication skills are a key part of
managing individual employee performance. If you have good communication skills, you will
know how to give clear feedback on performance while not denting peoples self-esteem. Good
communication skills will enable you to work more closely with your team members, determine
personal goals that will suit them and help them to work towards those goals. As a good
communicator, you will know the difference between being assertive and aggressive (aggression
merely gets peoples backs up). You will be able to keep a professional and impersonal tone in
the face of provocation and this will help you deal with conflict situations. It will also help you
set clear boundaries for acceptable behavior, counsel those who overstep them and, if necessary,
fire people while.
PROFILE
India is currently the sixth largest passenger car and commercial vehicle producer in the world
and the automotive industry is one of the key drivers of the Indian economy. The component
industry holds a significant place in the growing Indian economy.
The component sector clocked a turnover of US$ 39.7 billion, recording a CAGR of 8 per cent
during the period of 2008-2013. The industry is expected to grow up to USD 115 billion by
2020, with increase in vehicle production. Of this, the domestic turnover expected to touch USD
85 billion and exports USD 30 billion. The component industry is expected to become a
significant contributor - 3.6%, to Indias GDP, up from the current level of 2.2%. To achieve this
potential, the industry requires additional skilled manpower of over 1 million and
cumulative Investment of over USD 35 billion.
According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected
to increase to 4 million by 2015, no longer 5 million as previously projected.
The majority of India's car manufacturing industry is based around three clusters in the south,
west and north. The southern cluster consisting of Chennai is the biggest with 35% of the
revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and the
northern cluster around the National Capital Region contributes 32%.
InChennai,housesof Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW,HindustanMotors, Daiml
er, Caparo, Mini, and Datsun. Chennai accounts for 60% of the country's automotive exports.
Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car
manufacturer, Maruti Suzuki, is based.
The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General
Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land
Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area.
Nasik has a major base of Mahindra and Mahindra with a SUV assembly unit and
an Engine assembly unit.
Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster.
Another emerging cluster is in the state of Gujarat with manufacturing facility of General
Motors in Haloland further planned for Tata Nanoat their plant in Sanand Ford, Maruti Suzuki
and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkata with Hindustan
Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive
manufacturing regions around the country.
The Beginning
Enhance Product Portfolio- added Products- Auto Electricals & Engine Valves.
Technology Tie-ups with product domain global leader.
State of art Design & Development Center- Concurrent Design Partner for OEMs.
Extended OEM customer base.
Expanded manufacturing footprint on geographical spread.
TPM Launch.
Journey Continues
The Beginning..
1992-1998
1999-2003
2003-2006
2007-2010
2011-2012
Journey Continues..
One billion dollar enterprise, Varroc Group is a Full Service Supplier of Plastic Moulded
Modules, Engine Valves, Machined Forgings, Exterior Lighting and Electrical Systems
to Auto Industry with unparalleled manufacturing reach and ability. We strongly believe that our
growth is directly linked to the growth of our esteemed clients, so our growth philosophy is-
being where customer wants us to be. We currently operate from 35 Manufacturing Plants & 8
Technical and Development Centers across 3 continents, 10 countries globally.
Vision:
Mission:
Be an affordable and flexible global technology supplier and deliver value to customer
by being the supplier of choice from manufacturing footprints:
By achieving operational excellence.
Quality Policy
We at Varroc Group are committed to manufacture and Delivery
Quality product
On time
That complies with customer and regulatory requirement and provide
Excellent service
By continues improving effectiveness
Of all processes files, striving to become a world class organization
Capability to design & develop electro mechanical switches for auto mobiles.
Lighting expert & market leader in automotive lighting technology.Pioneering in 2 Wheeler LED
technologies.
Wiper Motors
Providing the highest quality standards while constantly maintaining the sustainability of our
products.
Magneto
CDI
Design and manufacture wide range of Microcomputer based Capacitive (Digital DC & AC CDI
unit) and Inductive (TCI unit) Ignition Controllers to suit customer needs.
Regulator Rectifier
Designs and manufacture wide range of Single and Three Phase Regulators of various
configurations (Shunt / Series) and current ratings.
Polymer product
Interior Trims
Varroc, today, puts together all of the major interior components for a seamless interior
experience.
Door Trims
Our design experience, diverse material knowledge and manufacturing capabilities allow us to
offer the highest value door at the economic cost.
Varroc melds innovation with safety when
Seat Assemblies
Varroc expertise in producing seat assemblies for two, three, four wheeler segments.
Mirror Assemblies
Instrument Panel
One of the most difficult interior components to engineer and produce. Regardless of the
complexity, Varroc is fully integrated to engineer; manufacture Instrument Panel assemblies for
customers.
The Group manufactures extruded rubber components and has in-house rubber mixing facilities.
Metallic
Crankshaft
Camshaft
Varroc has the capability to manufacture range of Camshafts for 3-Wheeler, 4-Wheeler and
Commercial Vehicle applications in forged condition.
Connecting Rod
Varroc supplies steering spindle assembly for 3-Wheeler applications in fully finished condition.
Varroc supplies wheel hub assembly for 3-Wheeler in fully finished condition.
Engine Valve
Links
We have a manufacturing capability of a range of track links and rollers for off road vehicle
applications.
Transmission Assembly
Varroc has developed special expertise in supplying 4 speed/5 speed transmission assemblies for
both 2-Wheeler and 3-Wheeler.
Crankpin
Catalytic Converter
A catalytic converter (colloquially, cat or catcon) is a vehicle emissions control device which
converts toxic byproducts of combustion
Idler Shaft
Varroc supplies idler shafts for various hydraulic gear pump applications in fully finished
condition.
Spool
We supply valve spools in fully finished condition for off road steering applications.
Area of operation
National: - They have a huge setup of 20 plants in India which are located at Pantnagar, Greater
Noida, Pritampur, Pune (Chankan&Takve) and Aurangabad.
Regional: - There are 9 Plant located in Aurangabad itself and head office of Varroc is also
Situated in Aurangabad.
Organizational Structure
Managing
MGM IOM/MBA STP-III SEM 2016 Page 32
Director
President Sr. vice Corporat
Varroc President e
SBU Finance
SBU SBU Head SBU SBU Head
Head Metallic Head Head
Metalli (Engine Electrical integrated
c valves) (Pantnaga
Human
Plant Resource
Plant Plant Plant Plant Head
Head Head Head Head
Legal
Business
Business Business Business
Developme Sourcing
Developm Developm Developm
nt & Supply
ent ent ent
IT & SAP
Tech Tech Tech Tech Center
Center Center Center
M& A,
Corp.
INFRASTRUCTURAL FACILITIES
After every year they try to increase there salary because they well known the Indian market
condition. Also the company provide employee the Diwali Bonus at every Diwali apart from
cash bonus they give new dress for the employee and also to there family like wife and children.
And also they give the leave of every big festival to the employees. This leave is called as paid
leave. Apart from these the company arrange tour in every year different areas in India. The
purpose of the tour the employees are feeling well and different and they are stable in there work.
Also they arrange ground games in under of company area.
EXTERNAL FACILITIES
Apart from internal facilities the company is also well known of there external facilities. That is
they provide there order goods in time to time to there customers and transfer goods without any
damages to the customer.
Nov.
2009 LG India acknowledge Varroc efforts and awarded Supplier Quality Improvement Award
Dec.
2009 Tata Johnsons Controls given Supplier Quality Improvement Award to Varroc
Polymers Plant I
Dec.
2009 23rd National Convention in Quality Circles Varroc Polymers distinguished for Outstanding
Performance
Jan 2010
Behr India awarded Varroc Polymer for Outstanding Performance during the year 2009-10
Jan 2010
Honda Motorcycle & Scooter India acknowledge Varroc Polymer notable contribution &
revere as Special Achievement Award for year 2009-10
Feb 2010
Bajaj Auto Vendor Association 3rd Kaizen Competition Varroc Polymer stood 2nd in the
competition.
April
2010 Tata Toyo Radiator awarded Varroc Polymer for Outstanding Quality Performance during
the year 2009-10
Bajaj Auto Limited recognized Varroc Engineering Plant III TPM initiatives
May
2010 Bajaj Auto Limited recognized Varroc Polymers Plant III TPM initiatives
March
2011 Yamaha India appreciate Varroc efforts in flawless launches support
2011
Varroc manufacturing plants received Manufacturing Excellence Certification by
Economic times in collaboration with Frost & Sullivan.
Jan 2012
Suzuki appreciates Varroc efforts for superior performance in customer satisfaction
April
2012 2nd time in a row, India Yamaha Motors given Reward to Varroc for outstanding
performance in New Product Development Category
2012
Suzuki Motorcycle India rated Varroc Groups Electrical division Best Supplier in
components develop category
2012
Varroc Polymers Recognized by Honda Motorcycle & Scooters India as 2012
2014
Award for Outstanding Contribution in New Product Development by VECV
March
2014 Supplier Recognition Award from Harley Davidson (HD)
2014
Best Excellence in Cost award from MAHLE Behr India Limited.
2014
Varroc Polymers awarded Best Technical Support in Plastic by Tata Toyo Radiator
Limited
2014
Varroc Engineering receives Best Development Award from Suzuki Motorcycles
India Ltd.
2015
Excellence for Delivery Award Award by Yamaha Motor India
2015
Varroc was awarded the New Product Development Award by HMSI.
2015
Varroc Polymers receives award for outstanding performance in Quality
2016
Best Development & Contributions Award at Design Stage from Ashok Leyland
Research methodology may be understood as all those methods that are used for
conducting research method techniques, thus refers to the methods the researcher used
in performing research operation.
I use Primary data as well as Secondary data. The source of Primary data and Secondary
data are as follows.
The primary data are those while are collected a fresh and for first time and thus
happen to be original in character.
Observation method..
SECONDARY DATA:
Secondary data means data that are already i.e. they refer to data which have already
been collected and analyzed else. These data may either published or unpublished
data.
Secondary data was based on second hand information. Once the primary data has been put
to use, the original character disappears and data becomes secondary. In this study facts were
collected from the following
1) The company database.
2) Past projects.
3) Internet links.
A proper division of work is dividing a job into manageable tasks and taking into account the
skills and abilities of the people who will be performing the job.
Coordination requires:
A manager who performs the five managerial functions well will certainly achieve coordination.
In other words coordination is derived from the execution of planning, organizing, staffing,
influencing and controlling.
One of the most challenging tasks for manager is when they are coordinating activities to ensure
cooperation. Cooperation means people working together willingly for a common purpose. The
cooperation of others is helpful when coordinating activities. Neither less, a manager cannot
depend solely on cooperation to achieve the desired outcome.
It is important to note that all levels of management coordinate activities. However, the Plant
head is responsible for all activities within a health care organization. Coordination occurs
vertically, horizontally and diagonally.
Vertical coordination relies on authority and it occurs between different levels of an organization.
Meanwhile, one can say that vertical coordination can be better accomplished if management
uses wisdom and insights when performing the functions of planning, organizing, staffing,
influencing, and controlling.
Horizontal coordination involves personnel and departmental on the same level, working
together to achieve a particular goal. Problems may arise when horizontal coordination is carried
out because one department does not ordinarily have the direct authority to another department.
Horizontal coordination is usually mandated by policies and procedures. Issues regarding
horizontal coordination should be referred to higher management.
During my summer internship I have learn more about working and coordinating
All above department are interlink between each other. They work together for development
of the company.
Human Resource:-
Manpower Planning
It involves the planning for the future and finding out how many employees will be needed in the
future by the business and what types of skills should they possess.
HR Department is also involved in designing the Job analysis and Job description for the
prospective vacancies.
A job analysis is the process used to collect information about the duties, responsibilities,
necessary skills, outcomes, and work environment of a particular job.
duties,
responsibilities,
most important contributions and outcomes needed from a position,
required qualifications of candidates, and
reporting relationship and co-workers of a particular job.
HR Department is also involved in conducting market surveys and determining the wages and
salaries for different position in an organization. These decision may be taken in consultation
with top management and the Finance department.
One of the most important jobs HR department is to recruit the best people for the organization.
This is of crucial importance as the success of any organization depend on the quality of its
workforce. Details regarding the recruitment and selection procedure can be found here.
Performance Apprasial
Once the employees are recruited , the HR Department has to review their performance on a
regular basis through proper performance appraisals.
Performance appraisal is the process of obtaining, analyzing and recording information about the
relative worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the employee.
Its aim is to measure what an employee does.
On the basis of performance appraisal the HR Department will set up an action plan for each
employee. If the employees need any training then he provided that.
HR department is the link between the workers and the management. Employees grievances
related work environment are usually entertained and resolved by the HR Department.
HR Department has to coordinate with line manager and see that the organizational policies are
being implemented in a proper manner. Disciplinary action can be initiated against employees
who are not following organizational rules and regulations. All these actions are conceived and
implemented by the HR department.
HR Department has to take firm actions against employees who are not following the
organizational code of conduct, rules and regulations. This can result in the dismissal of the
employee.
Sometimes, an organization may no more require the services of an employee. The employee
may be made redundant. HR Department has to see that organizational and government
regulations are being followed in this process.
Marketing:-
The marketing department has overall responsibility for growing revenue, increasing market
share and contributing to company growth and profitability. In a small business, the marketing
department may just be one person, or it may include a marketing director or manager plus
marketing executives responsible for functions such as advertising, publications or events.
The senior member of the marketing department takes responsibility for setting marketing
strategy in line with overall company strategy and objectives. The strategy may be to increase
share in a specific market sector, for example, to enter a new sector, or to open a new channel of
distribution, such as the Internet, to reach a wider geographical market. The marketing
department reaches agreement on strategy with the board or senior management team before
planning campaigns in detail.
The marketing department works with Internal or external product development teams to develop
new products or improve existing ones. The department analyzes sales of existing products and
Finance:-
The finance department is the backbone of a company's operations and processes. It records
operating transactions, analyzes them and prepares financial statements that inform top
management, regulators and investors about a company's economic health. Finance employees
also ensure that internal mechanisms and policies comply with regulatory standards, industry
practices and human resources policies.
A financial analyst compares historical and current data to detect changes within periods and
recommends appropriate actions to management. For instance, a financial analyst may compare
revenues over a five-year period and note that sales have been increases by 10 percent every
year.
Financial risk management is a function within the finance department that helps a firm identify,
price and monitor risks inherent in corporate activities. Financial risk typically is more common
in financial services firms such as banks, hedge funds or insurance companies.
A finance specialist (working in the treasury, corporate finance or investments department) helps
a company evaluate operating information, detect business trends and industry indicators. An
analyst also may analyze "working capital" ratios to assess funding needs in operations
("working capital" indicates short-term cash availability and equals current assets minus current
liabilities).
Purchase:-
One role of the purchasing department is to procure all necessary materials needed for
production or daily operation of the company or government organization. For a manufacturing
company, this might include raw materials such as iron, steel, aluminum or plastics, but it also
might include tools, machinery, delivery trucks or even the office supplies needed for the
secretaries and sales team. In a retail environment, the purchasing department makes sure there is
always sufficient product on the shelves or in the warehouses to keep the customers happy and
keep the store well-stocked. With a small business, it is especially important to keep inventory
ordering at a reasonable level; investing large amounts of capital in excess stock could result in
storage problems and in a shortage of capital for other expenditures such as advertising or
research and development. Purchasing also oversees all of the vendors that supply a company
with the items it needs to operate properly.
Most major companies and even some government organizations have a purchasing or
procurement department as part of everyday operations. These departments provide a service that
is the backbone of many manufacturing organizations. Many individuals, even some who work
for these companies, are unaware of what the purchasing department does, why it exists or what
purposes it serves. To understand better what the role of the purchasing department is, consider
some functions it performs.
Production:-
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
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
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.
5. 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.
Production planning and Control department is one of the important department for the apparel
manufacturing company. Whatever plan is made is executed by PPC department. PPC
department keeps close look whether everything is progressing according the plan. Chasing other
department heads on daily basis to keep plan on track. They update order wise completed tasks
on the Time & action Calendar. When they found something is going to be late they expedite
and create an alarm about the delay. In the context of the apparel manufacturing primary roles of
the Production Planning and Control (PPC) department has been listed below.
1. Job or Task Scheduling: Preparation of time and action calendar for each order from
order receiving to shipment. The job schedule contains list of tasks to be processed for
the styles. Against each tasks planner mentions when to start a task and what is dead line
for that task.
2. Material Resource Planning (Inventory): Preparation of Material requirement sheet
according to sample product and buyer specification sheet. Consumption of material
(fabric, thread, button, and twill tape) is calculated and estimated cost of each material.
3. Process selection & planning: Processes needed to complete an order vary style to style.
According to the order (customer) requirement PPC department select processes for the
orders. Sometime extra processes are eliminated to reduce cost of production.
Information technology:-
The Information Technology (IT) Department develops and maintains an internal network of all
desktop workstations, digital office equipment and the networking equipment, operating systems
and servers to tie them together.
Network Services
Network Services maintains the connectivity of all municipal technical devices, supplies servers
to centrally store and maintain all data and applications, ensures the protection of all data and
technology through security software and data backups, and is working towards a new means of
transferring information through radio and wireless technology. In addition this branch is
responsible for the communications infrastructure allowing employees to communicate with each
other, the public, businesses, and other government agencies.
Stores:-
A storehouse is a building provided for preserving materials, stores and finished goods. The in-
charge of store is called storekeeper or stores manager. The organization of the stores department
depends upon the size and layout of the factory, nature of the materials stored and frequency of
purchases and issue of materials.
Quality:-
Provides leadership and is responsible for overseeing day-to-day test preparation and execution
activities, including resource scheduling, team communications and status reporting as well as
promoting and overseeing use of established best practices, policies, and procedures.
Quality assurance managers supervise teams of inspectors who carry out the detailed assessment
of products and their components at different stages of production. Managers recruit and train
supervisors, and provide them with documented quality standards as guidelines for their day-to-
day work. Managers also select quality inspection tools and software to support the inspection
team.
Quality assurance managers review statistical data from the production lines to identify quality
problems. They analyze the data and recommend changes to production processes or quality
controls to eliminate the problem. They also analyze records of product returns to identify
specific problems or trends over time. Quality assurance managers develop and monitor
continuous improvement programs, aiming to reduce the number of defects and improve levels
of quality. Continuous quality improvement reduces manufacturing costs and improves overall
product quality.
Successful companies need efficient sales and finance departments. A sales department focuses
primarily on expanding the organizations customer base, and a finance department focuses on
achieving profitability. An organization depends on a healthy relationship between its sales and
finance departments. In some companies, the departments fail to effectively communicate and
collaborate, which can adversely affect operations. Managers and leaders must develop and
cultivate close coordination between the two departments. Failing to build a strong relationship
can hinder the growth and profitability of a company.
Conflicts between sales and finance departments are typically based on how money is spent. A
sales department may complain about the expectations of the organization to increase revenue
and bring in new accounts on a limited budget. The finance department may complain that
although the organizations sales are increasing, the sales department spends too much money to
achieve the increase. Issues between sales and finance departments may arise if the departments
establish performance targets that fail to consider the other department.
Organizational leaders must focus on improving the relationship between the sales and finance
departments. Effective leaders can facilitate communication that department heads cannot
because of conflicts of interest. According to an article on American Express Open Forums
website, some companies find success by allowing lower-level sales and finance employees to
team up, because they are more open to ideas of improving communication. Companies should
focus on developing sales strategies that yield the highest profitability. Sales and finance
The relationship is integral. The production department is involved and concerned with the
making of the product or the development of the service. It is the heart of businesses as they need
to provide something that the consumer wants, and in product firms, the production department
deals with the making and development of a product to make the consumer want it, or feel that
they need it in their life.
The finance department deals with all kinds of monetary transfer that the business is involved
with, and of course the production department is one of the biggest areas of loss. The production
department needs to go about creating the product and in near enough every business, there is a
cost to creating the product or service. Hence, the finance department will deal with how much
of the firm's funds or assets are being lost to this and will decide whether the efficiency of the
business is sufficient.
Sales in business refer to the products, merchandise or services sold by the business to paying
customers. Production refers to the process of making or manufacturing the products that the
customers of a business buy. The main difference between sales and production is that you must
produce a product before you can sell it. Sales in a business are closely correlated to the
marketing or sales effort of a business, whereas production is closely related to the
manufacturing process. All business processes ultimately rely on each other in order to
effectively bring a product or service to market.
Most businesses have separate departments for sales and production. Each department depends
on the other. For example, the sales department might be planning an aggressive sales campaign
based on seasonal merchandise. However, before it can aggressively advertise the campaign, it
needs to be sure the production department has the capability to produce enough products to
adequately meet the anticipated demand.
Business management must always be aware of the relationship between sales and production,
because one cant survive without the other. Management often will use business ratios that
incorporate both the sales department totals and production departments totals. For example, the
ratio of cost per sales unit is an important tool that measures the individual cost of an item as it
relates to a corresponding single unit of sale.
Human resources departments interact with department managers in numerous ways. The
particular function an HR manager or specialist plays is sometimes contingent upon the
department manager's title. A department manager in accounting, for example, may need more
numerical statistics from HR than a customer service manager. Whatever the case, the
relationship between HR and various department managers is ongoing. Many of the functions
performed by HR pertain to employees of department managers.
Department managers in small companies usually ask HR to assist them with selecting and
screening job applicants. For example, a marketing manager may need to hire a marketing
analyst. Hence, she may ask the human resources manager to find people with specific skills to
interview. In turn, the HR manager may help screen candidates who don't meet the qualifications
or fail to demonstrate their skills. HR typically screens employees for substance abuse, too,
subjecting new hires to drug tests, for example. HR also works with department managers in
determining whether to hire permanent employees or independent contractors for certain jobs.
Small company department managers may ask HR to help them determine salaries or wages for
various jobs in their department. The department manager may want to determine a low, mid-
range and cap on salaries she offers employees. The HR manager may, in turn, research salaries
of competitors or comparably sized companies to derive suggested salary ranges. Similarly, HR
may work with department managers in deciding which benefits their employees receive,
including health, life insurance, paid holidays and vacations, and retirement plans.
The relationship between the Purchase and finance departments can be compared to the
relationship between the examinee with an examiner. The finance department is concerned with
providing finance for the materials purchased and it may find fault with the materials purchased.
If finances are not quickly made available the relationship with the suppliers would be adversely
affected, it is the duty of the Purchase department to create a relationship of mutual trust and
understanding with the finance department for proper allocation of funds for purchasing the
materials.
It must be assured that the cash outflow in materials is properly planned by preparing a materials
budget fixing economic order quantity, maximum, minimum and danger levels, so that, there is
neither overstocking nor under stocking.
Accounting and Information technology are two terms which are the used in every business.
Because both are needed for effective working of a corporate or company. It is the need of time
that we should understand the relationship between Accounting and Information Technology.
Accounting is related recording and utilization of recorded data. Information technology is
scientific, technological, engineering disciplines and management technique used in information
handling and processing, their application, computers and their interaction with men and
machines and associated, economical and cultural matters. In Simple wording IT is that
technique which and get and utilize the information with effective and efficient way. Both are
related to get information and utilization of that information. So both are interconnected with
each other. If our specialize of both area merge both system with scientific and technical way,
then they easily overcome the different problems due to lack of correct and adequate information
related to business.
Because of Our Educationist now aware that it is very long run benefit, if we try to relate each
other in the education system. So they include MSC-IT syllabus the fundamental of accounting
and in the syllabus OF MBA- Finance, they have include the fundamental of Information
technology. This is the clear sign of the good relationship between Accounting and Information
technology.
Customer Schedule
Marketing Department
PPC Department
Production Department
Accurate and efficient communication between departments builds trust within the
organization.
Because of good communication and Coordination the Varroc has increase the sale.
The accurate exchange of information between departments improves the ability to meet
sales projections, to get product to distribution points and to have contracts and documents
reviewed by the proper people.
One of the most challenging tasks for manager is when they are coordinating activities to
ensure cooperation.
Written Documentation should be more then the oral communication to avoid flause.
There should be the communication between the whole team rather than one to one
communication so as to avoid the lack of information.
Also experienced the environment in a company which is very healthy and it will surely be very
useful in my future when I will join a company where I can work with such a fantastic past
experience which I got from Varroc..
SWOT Analysis
MGM IOM/MBA STP-III SEM 2016 Page 58
Bibliography
www.varrocgroup.com