CHAPTER – 1

INTRODUCTION
&
THEORETICAL FRAME
WORK

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 INTRODUCTION
HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM) is a management function that helps mangers
recruit, select, train and develops members for an organization. Obviously, HRM is concern
with the people’s dimension in organizations. Human Resource Management refers to a set of
programs, functions and activities designed and carried out in order to maximize both
employees as well as organizational effectiveness.
It is the process of binding people and organizations together so that the objectives of each
are achieved. Human Resource Management involves the application of management
function and principles. The functions and principles are applied to acquisitioning,
developing, maintaining, and remunerating employees in organizations. Human Resource
Management can be defined as the art of procuring, developing and maintaining competent
workforce to achieve the goals of an organization in an efficient manner.
Human Resource Management forms a crucial function in organization of all sizes.
Traditionally, HRM departments had a relatively small role to play in the organizations
overall mission and plans. They developed staffing plans, handled complaints, determined
benefits and compensation and conducted performance appraisal programs.
Human Resource Management is playing a more strategic role in charting the course
of their firms. Changing demographics, rapid technological changes and the need for new
skills have created a strategic need for HRM expertise. These changes have led to the
acknowledgement that human resource need careful attention and are vital to the success of
any business.
The today’s highly competitive scenarios managers are being pressurized to improve
quality, increase productivity ,cut down waste and eliminate inefficiency in this context and
this is where HRM can play a crucial Human resource management means employing people,
developing their resources, utilizing, maintaining and compensating their services in tune
with job and organizational requirements.
HR is the most significant factor of production every human being is born with
tremendous potential. HR refers to the knowledge, skills, and beliefs of an organizations
workplace. Enhance their skills, abilities, knowledge in accordance with the changing
requirements of groups, organization and society is the essence of HRD.
Human Resource Development (HRD) is a continuous process to ensure the
development of employee dynamism, effectiveness, competencies and motivation in a
systematic and planned manner. HRD includes potential development, fast achievement, skill

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development, ability to reach out, systems development, understanding of subordinates goals,
greater commitment existing and creating climate, developing integration etc. One of the
important mechanisms of HRD is training and development.
DEFINITIONS OF HUMAN RESOURCE MANAGEMENT

“Human resource management is the process of planning, organizing, directing and

controlling of the procurement, development, compensation, integration and maintenance of
people for purpose of contributing to the organizational goals.”
──Edwin B. Flippo
“Human Resource Management is concerned with the most effective use of people to
achieve organizational and individual goals.”
──Invancevich&Glueck
NATURE OF HUMAN RESOURCE MANAGEMENT
The emergence of human resource management can be attributed to the writings of
the human relation who attached great significance to the human factor. Lawrence Apply
remarked, Management is personnel administration. This view is partially true as
management is concerned with the efficient and effective use of both human as well as non-
human resources.
Thus human resource management is only a part of the management process. At the
same time, it must be recognized that human resource management is inherent in the process
of management. This function is performed by all the managers. A manager to get the best of
his people must undertake the basic responsibility of selecting people who will work under
him and to help develop, motivate and guide them.
However, he can take the help of the specialized services of the personnel department in
discharging this responsibility. The nature of the human resource management has been
highlighted in its following features:

 Inherent Part of Management:

Human resource management is inherent in the process of management. This

function is performed by all the managers throughout the organization rather that by

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 the personnel department only.If a manager is to get the best of his people, he must
undertake the basic responsibility of selecting people who will work under him.

 Basic to all Functional Areas:

Human Resource Management permeates all the functional area of

management such as production management, financial management, and marketing
management.That is every manager from top to bottom, working in any department
has to perform the personnel functions.

 Personnel Activities:

Human Resource Management involves several functions concerned with the

management of people at work. It includes manpower planning, employment,
placement, training, appraisal and compensation of employees.

 People Centered:

Human Resource Management is people centered and is relevant in all types

of organizations. It is concerned with all categories of personnel from top to the
bottom of the organization. The broad classification of personnel in an industrial
enterprise may be as follows: (i) Blue-collar workers and white-collar workers (ii)
Managerial and non-managerial personnel, (iii) Professionals and non-professional
personnel.

 Based on Human Relations:

Human Resource Management is concerned with the motivation of human

resources in the organization. The human beings can‘t be dealt with like physical
factors of production. Every person has different needs, perceptions and expectations.
The managers should give due attention to these factors. They require human relations
skills to deal with the people at work. Human relations skills are also required in
training performance appraisal, transfer and promotion of subordinates.

SCOPE OF THE HUMAN RESOURCE MENAGEMENT

The scope of HRM is indeed vast. All major activities in the working life of a worker
from the time of his or her entry into an organization until he or she leaves – come under the
preview of HRM. Specifically the activities included are – HR planning, job analysis and

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design, recruitment and selection, orientation and placement, training and development,
performance appraisal and job evaluation, employee and executive remuneration, motivation
and communication, welfare, safety and health, industrial relations (IR) and the like. The
scope of Human Resources Management extends to:
 All the decisions, strategies, factors, principles, operations, practices, functions,
activities and methods related to the management of people as employees in any type
of organization.
 All the dimensions related to people in their employment relationships, and all the
dynamics that flow from it.
American Society for Training and Development (ASTD) conducted fairly an
exhaustive study in this field and identified nine broad areas of activities of HRM. These are
given below:
 Human Resource Planning
 Design of the Organization and Job
 Selection and Staffing
 Training and Development
 Organizational Development
 Compensation and Benefits
 Employee Assistance
 Union-Labor Relations
 Personnel Research and Information System
 Human Resource Planning:

The objective of HR Planning is to ensure that the organization has the right
types of persons at the right time at the right place. There upon, HR Planning forecast
demand and supplies and identify sources of selection.HR Planning develops
strategies both long-term and short-term, to meet the man-power requirement.

 Design of Organization and Job:

This is the task of laying down organization structure, authority, relationship

and responsibilities. This will also mean definition of work contents for each position

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 in the organization.This is done by “job description”. Another important step is “Job
specification”. Job specification identifies the attributes of persons who will be most
suitable for each job which is defined by job description.

 Selection and Staffing:

This is the process of recruitment& selection of staff. This involves the

matching people and their expectations with which the job specifications and path
available within the organization.

 Training and Development:

This involves an organized attempt to find out training needs of the individuals
to meet the knowledge and skill which is needed not only to perform current job but
also to fulfill the future needs of the organization.

 Organizational Development:

This is an important aspect whereby “Synergetic effect” is generated in an

organization i.e. healthy interpersonal and inter-group relationship within the
organization.

 Compensation and Benefits:

This is the area of wages and salaries administration where wages and
compensations are fixed scientifically to meet fairness and equity criteria. In addition
labour welfare measures are involved which include benefits and services.

 Employee Assistance:

Each employee is unique in character, personality, expectation and

temperament. By and large each one of them faces problems every day. Some are
personal some are official. In their case he or she remains worried.Such worries must
be removed to make him or her more productive and happy.

 Union-Labor Relations:

Healthy Industrial and Labor relations are very important for enhancing peace
and productivity in an organization. This is one of the areas of HRM.

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  Personnel Research and Information System:

Knowledge on behavioral science and industrial psychology throws better

insight into the workers expectations, aspirations and behavior. Advancement of
technology of product and production methods have created working environment
which are much different from the past.Globalization of economy has increased
competition many fold.
OBJECTIVES OF HUMAN RESOURCE MANAGEMENT
 To help the organization to attain its goals by providing well-trained and well-
motivated employees.
 To utilize the human resources effectively in the achievement of organizational
goals.
 To enhance job satisfaction and self-actualization of employees by encouraging and
assisting every employee to realize his or her full potential.
 To establish and maintain productive, self-respecting and internally satisfying
working relationships among all the members of the organization.
 To bring about maximum individual development of members of the organization
by providing opportunities for training and advancement.
 To provide fair, acceptable& efficient leadership.
 To secure the integration of all the individuals and groups with the organization by
reconciling individual and group goals with those of the organization.
 To develop and maintain a quality of work-life which makes employment in the
organization a desirable personal and social situation.
 To maintain high employee morale and sound human relations by sustaining and
improving the various conditions and facilities.
 To provide facilities and conditions of work and creation of favorable atmosphere
for maintaining stability of employment.
 To manage change to the mutual advantage of individuals, groups, the organization
and the society.
IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
Human Resources play a crucial role in the development process of modern
economics. Arthur Lewis observed, “There are great differences in development between
countries which seem to have roughly equal resources, so it is necessary to enquire into the
difference in human behavior.” It is often felt though the exploitation of natural resources,
availability of physical and financial resources and international aid play prominent roles in

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growth of modern economies, none of these factors is more importance than efficient and
committed manpower. Some of the importance’s are,
 It helps management in the preparation, adoption and continuing evolution of
personnel programmed and policies.
 It ensures maximum benefits out of the expenditure on training and development and
appreciates the human assets.
 It prepares workers according to the changing needs of industry and environment.
 It motivates workers and upgrades them. So as to enable them to accomplish the
organizational goals.
 Though innovations and experimentation in the field of personnel, it helps in reducing
costs and helps in increasing productivity.
 It establishes mechanism for the administration of personnel services that are
delegated to the personnel department

PRINCIPLES OF HUMAN RESOURCE MANAGEMENT

 Principal of maximum individual development:

This principle stresses on the development of every person working in an

organization. Works are able to fulfill the objectives of an organization with the
minimum cost. Hence, the employees in the organization should be properly
developed.

 Principle of scientific selection:

The proper co-ordination between work & works it is necessary to select

right job. Workers should be selected after a careful weighing of requirements of the
jobs.

 Principle of high morale:

It is necessary to have a high morale among the worker in an organization.

For this purpose, ideal wage policy should be offered in the organization. Workers
should be motivated by incentives.

 Principle of dignity of labor:

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 Human resource management specially acts, so that the workers feel proud of
their work. Sometime, like works is worship notion should be developed in workers.
It requires treating every job & every job holder with dignity and respect.

 Principle of team spirit:

Team spirit must be developed in the workers. They should work collectively
and they should feel collective responsibility for the attainment of the objectives of
the organization. For this purpose, workers must have the sense of cooperation, unity.

 Principle of effective communication:

There must be effective channel of communication between the management

& the workers. The orders of higher authorities should reach the workers.

 Principle of fair remuneration:

Labor should be given fair and proper compensation for the work they
rendered. They should also be given fair incentives on reward to recognize good
performance.

 Principal of effective utilization of human resources:

The skills & abilities of human resources should be effectively utilized. Proper
training facilities should be provided to workers. Human resource management is an
art of get work done by the people, to get the desired result.

 Principal of participation:

This principle emphasizes the idea of labor participation in the management of

the enterprise. Workers participation in management aims at increasing productivity
of labor by improving co-operation between employer & employees.
SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT

 Organizational Significance:

HRM is of vital importance to the individual organizations as a means of

achieving their objectives. It contributes to the achievement of organizational
objectives more efficiently & effectively. Developing the necessary skills & right

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 attitudes among the employees through training, development &performance
appraisal.

 Professional Significance:

Effective management of human of human resources helps to improve the

quality of work life. It permits team work among employees by providing a healthy
working environment. Developing people on continues basis to meet the challenges
of their jobs.

 Social Significance:

It has to maintaining balance between jobs & job seekers in terms of Job
requirement & job seekers abilities & attitudes utilizing human capabilities effectively
& matching records for the contributions made by people.

 National Significance:

It is the effective utilization of physical & financial resources require an

efficient & committed manpower. The level of development of country depends on
the skills, abilities & laves of its human resources.

 Challenging Task:

Human resource manager plays a crucial role in understanding the changing

needs of the organization & society. Manager faces challenging tasks in attending the
employees, organizational and societal objectives with available resources.
FUNCITONS OF HUMAN RESOURCE MANAGEMENT

I) MANAGERIAL FUNCTIONS:

Managerial functions of personnel management involve planning, organizing,

directing and controlling these functions influence the operative functions.

 Planning:

It is a determination of future course of action. It also includes determination

of objectives, projects & programme, setting policies & strategies, plans and be
prepared for long & short periods. It involves of human resources, requirements,

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 recruitment, selection, training etc. It is also include forecasting personnel needs,
changes, values, attitudes, behaviors of employees and their impact on the
organization.

 Organizing:

In order to implement the plans, organization structure is required. It is the

process of allocating tasks among the members of the group, identifies the
relationships, establishing authority & integrating their activities towards common
goals.

 Directing:

The next logical function after completing planning, organizing is the

execution of the plan. The basic function of personnel management at any level is
motivating, activating, leading & supervising people. It includes all those activities by
which a manager influences the actions of subordinates. It also helps in building
individual & human relations in the organization.

 Controlling:

After planning, organizing, directing various activities of HRM, the

performance is to be verified in order to know that the personnel functions are
performed in conformity with the plans and directions of organization. It implies
checking, verifying & comparing of the actual with the plans, identification of
deviations if any and correcting the identified deviations. It involves training
programmes, surveys , conducting interviews & others.
II) OPERATIVE FUNCTIONS:

The operative functions of human resources management are related to specific

activities of personnel management they are,

 Procurement Function:

It is concerned with securing & employing the right kind & proper number
of people required to accomplish the organizational objective.

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 a) Job analysis: It is the process of study & collection of information. Relating to
the operations & responsibilities of a specific job.
b) Recruitment: It is process of searching for prospective employees &stimulating
them to apply for jobs in an organization.
c) Selection: It is the process of ascertaining the qualification, skills, knowledge etc
of an applicant.
d) Placement: It is the process of assigning the selected candidate with the most
suitable jobs in terms of job requirements.
 HR Development:

It is the process of improving, moldings& changing the skills, knowledge,

values, commitment etc. based on present & future jobs more effectively.

a) Performance appraisal: It is the systematic evaluation of employees with respect

to their performance on the job & their potential for development.
b) Training: It is the process by which employees learn knowledge skills & attitudes
to further organizational & personal goals.
c) Management development: It is the process of developing managerial talent
through appropriate programmes.
d) Career Planning & Development: It involves planning the career of employees
& implementing career plans so as to fulfill the career aspirations of people.
 Compensation:

It provides equitable & fair remuneration to employees per their contribution

to the attainment of goals.

 Human Relations:

Participating various human resources policies & program like employment,

development & compensation & interaction among the employees create a sense of
relationship between the individual worker & management, among workers and trade
unions and management.

 Industrial Relations:

It refers to the study of relations among employees, employers, Government,

workers participation in management. It is intended to reduce stifles, promote
industrial peace, provide fair deal to workers and establish industrial democracy.

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HUMAN RESOURCE MANAGEMENT PROCESS
 Human resource planning:

It is the process of determining future human resource needs relative to an

organization’s strategic plan and devising the steps necessary to meet those needs.

 Staffing:

It involves a set of activities aimed at attracting and selecting individual for

position in a way that will facilitate the achievement of organizational goals.

 Training:

It is formally defined as a planned effort to improve the performance of the employee

in his area of work. It effort to increase employee skills in their jobs.

 Performance appraisal:

It compares an individual’s job performance against standards or objectives

developed for the individual’s position.

 Compensation:

It consists of the wages paid directly to the employee’s for the amount of time
worked or the number of units produced. It also includes the monetary and non-
monetary benefits that an employee as part of his employment relationship with the
organization.
HUMAN RESOURCE POLICIES
HR Policies are systems of codified decisions established by an organization, to
support administrative personnel functions, performance management, employee relations
and resource planning.
According to Richbell and Brewster, It is a set of proposals and actions that act as a
reference point for managers in their dealings with employees.
 The Policy of hiring with due respect to factors like reservation, experience, marital
status.
 Policy of terms and conditions of the employment compensation policy and methods
of work, over time, promotion, transfers.
 Policy regarding housing, transportation, uniform and other allowances.

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  Policy regarding Training& Development needs methods and frequency of Training
and Development programme in the organization.
 Policy regarding industrial relations, Trade unions reorganization, collective
bargaining, participative management and communicate with workers.
 Policy with regard to medical assistance, sickness benefits, ESI (employee state
insurance) a company medical benefits.
HUMAN RESOURCE PRACTICES
Human Resource practices are given below,
 To attract and retain Talent
 To Train people for challenging roles.
 To develop skills and competence
 To promote Team sprit among different levels of management
 To develop loyality towards organization
 To increase commitment towards organization
 To increase productivity and profits of the company.
 To increase the job satisfaction of employee
 To enhance the standard of living of employee
 To generate more employment opportunities.

BASIC TRENDS IN HUMAN RESOURCE MANAGEMENT

 HRM has a significant role to plan in establishing and maintaining a healthy

productive work culture.

 Good industrial relation, effective systems of participation and a good collective

bargaining framework is key to success of all other HRM activities.

 HRM should cover in its activities the workman and unless workmen receive
attention through systematic HRM activities organizational effectiveness would not
improve significantly.

 In the organizational context. HRM is a means for improving effectiveness and not an
end in itself.

 Further HRM should be a philosophy running thorough all policies and actions of the
organization and not an assemblage of individual programmer’s .HRM policies plans
and actions should flow from the business strategy of the organization.

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  Organization may use HRM both as a means of carrying out transactional activities
like recruitment, Training Appraisal, manpower planning etc. and also as an
instrument of changing the culture and motivating employees.

 In runaround situations organizations have found HRM as an effective means to

reorient culture to improve communication, to change work practices to improve
participation involvement and commitment.

AIMS OF HUMAN RESOURCE MANAGEMENT

 To integrate goal of individual with the goal of the organization.

 To optimize the available human resource in an organization.

 To encourage creativity.

 To provide opportunities and facilities to individual for full expression of their latent
potential.

 To improve interpersonal relationship and work culture.

 To bring industrial harmony.

RESPONSIBILITIS OF HR MANAGER

 Leadership Practices:
a) Practices leadership in a manner that is viewed positively and has the support
of those with whom he/she works most directly in carrying out his/her
responsibilities.
b) Actively demonstrates and subscribes to the practice of leadership.
c) Promotes a productive culture in the organization that values diversity, trust
and respect for individuals and their contributions.
 Human Resource Leadership:

Provides support and guidance to Management in the area of human resources

activities:

a) Reviews existing and forthcoming legislation to determine human resource

impact on the organization and provide recommendations to ensure all relevant
policies, procedures, practices and processes are in compliance.
b) Review and development of personnel administrative procedures.

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 c) Coordinate and provide recommendations related to labour and employee
relations including formulating bargaining strategies consistent with the short and
long-term needs of the organization.
 Fiscal Responsibility:

Provides detailed and accurate information for the preparation of the annual
staffing budget.

 Policy:

Provides leadership in the development of Board policies and administrative

procedures and processes to result in improvements and organizational efficiencies.

 Selected Responsibilities:

Inform the Director of Education on matters related to teacher welfare and

teacher conduct and discipline. The Director will, in turn, inform the Superintendent
of Business as necessary.
ROLE&RESPONSIBILITIES OF HR DEPARTMENT
HR department varies widely depending upon the nature & size of enterprise, its
management philosophy & external environment in a small firm, there is no separate
department to co-ordinate the activities relating to personnel. There may be employment
section within the production department.
In medium sized firm, HRM department may be created. This department consists of
HR manager, HR officers & clerks. But a large company, HR department may consist of
several functions. There may be employment manager, compensation manager, HR
department manager etc.

HR Director

Recruitment Department Employee Compensation Industrial

Manager Manager Maintenance Manager Relations manager
Manager

Specifically, HR department is responsible for:

 Providing guidance on required advertising;

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  Providing guidance in screening and selection processes;
 Advising faculty and staff of the requirements of the Americans With Disabilities Act
(ADA) as it relates to recruitment and selection processes;
 Reviewing job postings and external advertisements prior to posting;
 Publishing and maintaining job postings
 Administering typing and other required employment tests;
 Approving selected candidates for hire after reviewing their credentials and ensuring
that they meet the advertised required qualifications;
 Approving substitutions of comparable education, training, and/or experience for
specialized minimum qualifications;
 Additionally, upon request, HR will perform all or a portion of full recruiting services.
Full recruiting activities include:
STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategy:

“Strategy is a way of doing something. It includes the formulation of goals and set of
action plans for accomplishment of that goal.”

Strategic Management:

“A Process of formulating, implementing and evaluating business strategies to

achieve organizational objectives is called Strategic Management.”

Definition of Strategic Management:

“Strategic Management is that set of managerial decisions and actions that determine
the long-term performance of a corporation. It includes environmental scanning, strategy
formulation, strategy implementation and evaluation and control.”
The study of strategic management therefore emphasizes monitoring and evaluating
environmental opportunities and threats in the light of a corporation’s strengths and
weaknesses.
ROLE OF HRM IN STRATEGIC MANAGEMENT
Role in Strategy Formulation:

HRM is in a unique position to supply competitive intelligence that may be useful in

strategy formulation. Details regarding advanced incentive plans used by competitors,
opinion survey data from employees, elicit information about customer complaints,
information about pending legislation can be provided by HRM. Unique HR capabilities

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serve as a driving force in strategy formulation.

Role in Strategy Implementation:

HRM supplies the company with a competent and willing workforce for executing strategies.
It is important to remember that linking strategy and HRM effectively requires more than
selection from a series of practice choices. The challenge is to develop a configuration of HR
practice choices that help implement the organization’s strategy and enhance its
competitiveness.

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 THEORETICAL FRAMEWORK
There is no single method to engaging employees in their work and in the
organization. Instead, there are a number of critical components that contribute to
engagement. These critical components include: workplace relationships, the workload, the
amount of control within the workplace, the reward/ recognition structure, support, perceived
fairness in the workplace, and ability to have meaningful and valued work. One approach to
creating engagement is that there is a level of reciprocal interdependence necessary for the
individual to engage and for the organization to success.
Engagement, represented here as a two-way relationship between employee and
employer where engaged employees are expected to also have an under0standing of the unit
and work to be done, has to do with how individuals employ themselves in the performance
in their job and involves the active use of emotions and behaviors in addition to what they
know about their jobs. Engagement is realized through a series of interactions between the
employee and the manager or supervisor (representing the organization). The goal would be
to create interaction that would evolve into trusting, loyal, and mutual commitments leading
to full engagement in the workplace. It was best state by Saks (2006), “when employee
believes that their organization is concerned about them and cares about their well-bring, they
are likely to respond by attempting to fulfill their obligation to their organization by
becoming more engaged.”
Management behavior plays a key role in developing engagement through the
relationship they build with employees, and behaving in a way that they are supported and
play a critical role in the success of the unit. The application of these principles to developing
a process for employees to be involved in decisions related to the workplace, and to the unit,
provide a significant opportunity to that end. It is imported to note that employee engagement
is a long-term and ongoing process that requires continued interaction over time in order to
generate obligation and a state of reciprocal interdependence.

Define “Engagement” and why the “Old Definition” Need to be changed

The original definition of employee engagement focused on the tools used to make
employee feel engaged and encourage employee engagement.
One tool used to determine a company’s level of employee engagement is surveys.
Surveys are a great way to measure employee engagement level. They provide an idea of how
satisfied employees are, and how to increase their job satisfaction. However, surveys have
their flaws. Take for example a case where a survey is used to evaluate factors in employee
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engagement. An employee who might be very comfortable in the current job and not want to
be promote might give a low rating for satisfaction within opportunity for advancement since
the employee has no interest in advancing. The overall impact on the employee’s engagement
may not be affected yet the survey might misattribute a result that a low satisfaction score in
this case leads to less employee engagement. Because of these ambiguities surveys can often
be misleading.
Some example include interviews, confrontation meeting and reward system. These
are all great tools, but they too can have their flaws. For this reason a definition for employee
engagement should encompass more than just the tool it takes to make employee feel
engaged. Definition should also include condition which lead to employee engagement as
well as what it takes to create an environment where employee feel engaged.
The “New Definition” for Engagement
Redefining engagement as a heightened emotional connection that an employee feels
for his or her organization, that influences him or her to exert greater discretionary effort to
his or her work” provides the framework In which engagement activity operates.
CORPORATIONS
Caterpillar
Engagement is the extent of employees’ commitment, work effort, and desire to stay in an
organization.

Dell Inc.
Engagement: To compete today, companies need to win over the MINDS (rational
commitment) and the HEARTS (emotional commitment) of employees in ways that lead to
extraordinary effort.
Intuit, Inc.
Engagement describes how an employee thinks and feels about, and acts toward his or her
job, the work experience and the company.
CONSULTANTS and RESEARCHERS
Corporate Leadership Council
Engagement: The extent to which employees commit to something or someone in their
organization, how hard they work and how long they stay as a result of that commitment.
Development Dimensions International
Engagement is the extent to which people enjoy and believe in what they do, and feel valued
for doing it.
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The Gallup Organization
Employee engagement is the involvement with and enthusiasm for work
Hewitt Associates
Engagement is the state of emotional and intellectual commitment to an organization or
group producing behavior that will help fulfill an organization’s promises to customers – and,
in so doing, improve business results.
Engaged employees:
 Stay – They have an intense desire to be a part of the organization and they stay with
that organization;
 Say – They advocate for the organization by referring potential employees and
customers, are positive with co-workers and are constructive in their criticism;
 Strive – They exert extra effort and engage in behaviors that contribute to business
success.
Institute for Employment Studies
Engagement: A positive attitude held by the employee toward the organization and its
values. An engaged employee is aware of business context, and works with colleagues to
improve performance within the job for the benefit of the organization. The organization
must work to develop and nurture engagement, which requires a two-way relationship
between employer and employee.
Kenexa
Engagement is the extent to which employees are motivated to contribute to
organizational success, and are willing to apply discretionary effort (extra time, brainpower
and effort) to accomplishing tasks that are important to the achievement of organizational
goals.
Towers Perrin
Engagement is the extent to which employees put discretionary effort into their work,
beyond the required minimum to get the job done, in the form of extra time, brainpower or
energy.

Why is Employee Engagement so Important?

In a world that is changing both in terms of the global nature of work and the diversity
of the workforce, engaged employees may be a key to competitive advantage. Companies
that understand the conditions that enhance employee engagement will have accomplished

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something that competitors will find very difficult to imitate.

In fast-changing environments, it becomes all the more difficult to precisely specify

roles and responsibilities. To the extent that employees are likely to be faced more frequently
with unanticipated and ambiguous decision-making situations, organizations must
increasingly count on employees to act in ways that are consistent with organizational
objectives.

In addition, many employees are looking for environments where they can be engaged
and feel that they are contributing in a positive way to something larger than themselves.

Current State of Employee Engagement

If one does not know what one is measuring, the action implications will be, at best,
vague and, at worst, a leap of faith. Many consultants avoid defining the term “engagement,”
instead referring only to its presumed positive antecedents oconsequences.

In 2006, The Conference Board published “Employee Engagement, A Review of

Current Research and Its Implications.” According to this report, twelve major studies on
employee engagement had been published over the prior four years by top research firms.
Each of the studies used different definitions and collectively came up with 26 key drivers of
engagement. For example, Gallup’s model, an employee engagement measure used by many
organizations, measures important actionable aspects of the work environment that lead to
employee engagement. Although surveys that ask employees to describe their work
conditions may be relevant for assessing the conditions that provide for engagement, they do
not directly tap engagement itself.
The question remains as to whether engagement is a unique concept or merely a
repackaging of other constructs. Different researchers have defined engagement both
attitudinally and behaviorally.

If one does not know how to define and measure engagement, then an analysis of its
drivers and outcomes will be suspect. For example, two attitudinal measures of employee
engagement found in many consulting firms’ surveys include employee job satisfaction and
continuance commitment, which focus on employees’ intentions to remain with the company.
Yet, the research correlating job satisfaction and job performance has mixed results and a
number of studies have found a negative relationship between continuance commitment and

22
job performance, making it quite possible to have very content employees who perform
poorly.

Research has shown that the type of commitment is critical; employees who want to
belong to the organization (affective commitment) are more likely to perform well than those
who need to belong (continuance commitment).
Erickson argued that “engagement is above and beyond simple satisfaction with the
employment arrangement or basic loyalty to the employer.” Engagement is about passion,
commitment, and the willingness to invest oneself and expend one’s discretionary effort to
help the employer succeed. Organizational effectiveness depends on more than simply
maintaining a stable workforce; employees must perform assigned duties dependably and be
willing to engage in activities that go beyond role requirements. Harter and Schmidt propose
that employee engagement reflects a deeper level of involvement and enthusiasm from the
employee than the terms “job satisfaction” or “organizational commitment” might imply.
The newer emphasis on absorption, passion, and affect better reflects the reason work
attitudes matter to organizations. Review of the academic research on employee engagement
shows the term is used at different times to refer to psychological states, traits, and behaviors.
Macy and Schnedier show that engagement as a disposition (i.e. trait engagement) can be
regarded as an inclination or orientation to experience the world from a particular vantage
point (e.g., positive affectivity characterized by feelings of enthusiasm) and this trait gets
reflected in psychological state engagement.
Psychological state engagement is conceptualized as an antecedent of behavioral
engagement, defined in terms of discretionary effort. Thus, they see engagement as a
multidimensional construct.

23
 NEED OF THE STUDY

The study is being conducted to know about the Employee Engagement of the
Viswateja Spinning Mills Pvt Ltd and the factors affecting the total employee commitment
towards their work.

It is also done to know the total percentage of the employees who all are totally
committed to their work and are actually supporting in the completion of work more
effectively and achieving the organizational goals.

The most important need of this study is to know about the problem areas in
Employee Engagement in Viswateja Spinning Mills Pvt Ltd Division and refer it to the
company with suitable suggestions to avoid the problem and improve the Employee
Engagement conditions.

24
 SCOPE OF THE STUDY

Employee Engagement has variety of effects on the Employees performance and an

individual’s physical and mental health, productivity, absenteeism and turnover. Employee
delight has to be managed in more than one way. This helps in retaining and nurturing the
true believers “who can deliver value to the organization. Proliferating and nurturing the
number of “true believers” is the challenge for future and present HR managers.

This means innovation and creativity. It also means a change in the gear for HR
polices and practices. The faster the organizations nurture their employees, the more
successful they will be. The challenge before HR managers today is to delight their
employees and nurture their creativity to keep them a bloom.

This study helps the researcher to realize the importance of effective employee
engagement. This research study examines types and levels of employee engagement and
also discusses management ideas that can be utilized to innovate employee job commitment.
It helps to provide insights to support future research regarding strategic guidance for
organizations that are both providing and using different programs in employee engagement.

25
 OBJECTIVES OF THE STUDY

Primary Objective:

To study the Employee Engagement in Viswateja Spinning Mills Pvt Ltd and the factors
governing the Employee commitment towards their job.

Secondary Objective:

 To study the cotton industry in general and Viswateja Spinning Mills Pvt Ltd in
particular.

 To study conceptual framework of Employee Engagement.

 To study the effect of different factors and benefits provided by the organization on
the employee’s performance.

 To learn the employee’s satisfaction on the interpersonal relationship exists in the

organization and the completion of job.

 To find the problem areas related to Employees’ commitment towards their job.

 To provide the practical suggestion for the improvement of employees’ performance.

26
 CHAPTER – 2

INDUSTRY PROFILE
&
COMPANY PROFILE

27
 INDUSTRY PROFILE

This section provides background information on the history, size, geographic

distribution, employment, production, sales, and economic condition of the textile industry.
The facilities described within the document are described in terms of their Standard
Industrial Classification (SIC) codes.
The textile industry is one of the oldest in the world. The oldest known textiles, which
date back to about 5000 B.C., are scraps of linen cloth found in Egyptian caves. The industry
was primarily a family and domestic one until the early part of the 1500s when the first
factory system was established. It wasn’t until the Industrial Revolution in England, in the
18th century, that power machines for spinning and weaving were invented. In 1769 when
Richard Arkwright’s spinning frame with variable speed rollers was patented, water power
replaced manual power (Negus, 1982).
In the early 17th century of colonial America, textiles were primarily manufactured in
New England homes. Flax and wool were the major fibers used, however, cotton, grown
primarily on southern plantations, became increasingly important (Wilson, 1979). In 1782
Samuel Slater, who had worked as an apprentice to Arkwright’s partner, immigrated to
America. In black stone River, Rhode Island, he started building Arkwright machines and
opened the first English-type cotton mill in America (ATMI, 1997a). In the early nineteenth
century, in Lowell, Massachusetts, the first mill in America to use power looms began
operations. It was the first time that all textile manufacturing operations had been done under
the same roof (Wilson, 1979 and ATMI, 1997a).
The twentieth century has seen the development of the first manmade fibers (rayon
was first produced in 1910). Although natural fibers (wool, cotton, silk, and linen) are still
used extensively today, they are more expensive and are often mixed with manmade fibers
such as polyester, the most widely used Synthetic fiber. In addition, segments of the textile
industry have become highly automated and computerized (ATMI, 1997a).
The textile industry is characterized by product specialization. Most mills only engage
in one process or raw material. For example, a mill may be engaged in either broadloom
weaving of cotton or broadloom weaving of wool. Similarly, many mills specialize in either
spinning or weaving operations, although larger integrated mills may combine the two
operations. These large mills normally do not conduct their own dyeing and fishing
operations. Weaving, spinning, and knitting mills .usually send out their fabrics to one of the
approximately 500 dyeing and fishing plants in the United States.
28
 Broadly defined, the textile industry consists of establishments engaged in spinning
natural and manmade fibers into yarns and threads. These are then converted (by weaving
and knitting) into fabrics. Finally, the fabrics and in some cases the yarns and threads used to
make them, are dyed and fished. The manufacturing of textiles is categorized by the Office of
Management and Budget (OMB) under Standard Industrial Classification (SIC) code 22. The
Standard Industrial Classification system was established by OMB to track the flow of goods
and services in the economy, by assigning a numeric code to these good and services. SIC 22
is categorized .into nine three-digit SIC codes. Due to the large number of processes used in
the textile industry and the limited scope of this notebook, the production of nonwoven
synthetic materials and carpets is not discussed in detail. The primary focus of this notebook
is on weaving and knitting operations, with a brief mention of processes used to make
carpets. OMB is in the process of changing the SIC code system to a system based on similar
production. Processes called the North American Industrial Classification System (NAICS).
In the NAIC system, textile mills (including fiber, yarn and thread mills, fabric mills, and
textile and fabric finishing and coating mills) be classified as NAIC 313. Textile product
mills (including furnishings, carpets, rugs, curtains, linens, bags, canvas, rope, twine, and tire
cord and tire fabric) will be classified as NAIC 314. This notebook covers the textiles
industry as defined by SIC 22. Less focus is given to SIC 229, Miscellaneous Textile Goods
in the Industrial Process.
Descriptions Section because the processes used and products manufactured vary
substantially within SIC 229. Products categorized under SIC 229 include coated fabrics, not
rubberized, tire cord-and fabrics, cordage and twine, and textile goods not elsewhere.
Classified it is important to note, however, that the Miscellaneous Textile Goods category is
covered in Section 11, Introduction to the Textile Industry; Section IV, Chemical Release and
Transfer Profile; Section VIII, Compliance Activities and Initiatives; and other sections of
this document. Industry sectors related to the textiles industry, but not categorized under SIC
22 (and thus, not in the scope of this notebook) include the manufacturing of clothing and
apparel (SIC 23) and the manufacturing of rubber coated textile goods (SIC 3069).
Product Characterization
Within the nine broad categories in the textile industry are 22 four-digit SIC codes
which more narrowly define the different types of products made Manufacturing
establishments within the textile industry are primarily involved In

 Fiber preparation and manufacture of yam, thread, braids, twine, and cords;

29
  Manufacture of knit fabrics, broad and narrow woven fabrics, as well as carpets and
rugs foam yarn (Broad woven fabrics are generally greater than 12 inches in width,
whereas narrow woven fabrics are less than 12 inches in width.);

 Dyeing and fishing if beers, yarns, fabrics, and knitted goods;

 Coating, water proof and treating fabrics;

 Integrated manufacture of knit apparel and other products foam yarn; and

 Manufacture of felt, lace, nonwoven, and other miscellaneous textile products. More
detailed information on the industrial processes used to produce the various textile
products.

Geographic Distribution
The geographic distribution of the textile industry in the U.S. is largely governed by
its history in this country. The industry began in New England and moved to the South as
cotton became the primary source of fibers. The five major states for employment in the
textile industry are North Carolina, Georgia, South Carolina, Alabama, and Virginia. Though
the majority of mills are located in the South, northern states such as Maine, Massachusetts,
New York, New Jersey, Rhode Island, and Pennsylvania are still important to the textile
industry. Many finishing and dyeing (SIC 226) operations are located in New Jersey. Narrow
fabrics and manmade fiber mills (SIC 224) are more concentrated in Rhode Island and
Pennsylvania. Knitting mills (SIC225) and miscellaneous textile mills (SIC 229) are scattered
through several southern and northern states.

According to the 1992 Census of Manufacturers for SIC 22 (the most recent census
data available), there were a totalof5, 584 establishments in the textile manufacturing
industry. A large proportion of these were knitting mills (SIC 225) and yam and thread mills
(SIC 228). Together these categories accounted for almost 50 percent of the total number of
establishments in the industry. 'They also accounted for the largest portion of the employment
and value of shipments in the textile industry. The knitting and yam and thread mills
categories accounted for 46 percent of the 614,000people employed in the industry, and40
percent of the $70.5 million in value of shipments, in 1992.

Economic Trends

30
 Throughout the 1990s, the textile industry indicators have shown improvements. The
year 1994 was a peak year for all indicators including exports, capital expenditures,
employment, and mill fiber consumption. In 1994, mill fiber consumption set a record with a
6 percent increase to 16.1billion pounds. In1995, fiber consumption decreased by 1.7 percent
only to increase by 1 percent in 1996 (ATMI, 1997b). Both 1994 and 1996 were record years
for fiber consumption and were a substantial improvement over the recession years in the
early part of the decade. The industry has also experienced a shift towards increasing
international trade with countries such as Canada and Mexico (ATMI, 1996).

Domestic Economy
“The textile industry spends four to six percent of sales on capital expansion and
modernization, down from eight to ten percent during the expansionary phase of the 1960s
and 1970s. Most recent capital expenditure has paid for mill modernization and factory
automation” (EPA, 1996). According to the American Textile Manufacturers Institute
(ATMI), the largest trade’ association for the industry, capital expenditures by domestic
textile companies have increased in recent years reaching $2.9 billion in 1995 (ATMI,
1997b). The increase in capital expenditures has led to an increase in productivity. Between
1975 and 1995, looms productivity, measured in Square yards of fabric per loom, increased
by 267 percent and was up 10.5 percent in 1996 (ATMI, 1997b). In the same period,
productivity of broad woven fabric. Mills, measured by an index of output per production
employee hour, increased by 105 percent, and productivity of yarn spinning mills increased
by 88 percent (ATMI, 1996). Industry also reports spending more than $25 million each year
on pollution and safety controls.
“Economies of scale in textile manufacturing are significant and limit entry into the
market. The cost of a new fiber plant, for example, is approximately $100 million. Costs of
raw materials are equity volatile and typically account for 50 to 60 percent of the cost of the
fished product. To hedge against supply shocks and to secure supply, many producers are
vertically integrated backward into chemical intermediates (and in the case of companies
such as Phillips and Amoco, all the way to crude oil). Forward integration into apparel and
product manufacture (e.g. carpeting) also is not uncommon.” (US EPA; 1996).

Industrial process description

This section describes the major industrial processes in the textile industry, including
the materials and equipment used and the processes employed. The section is designed for
31
those interested in gaining a general understanding of the industry, and for those interested in
the interrelationship between the industrial process and the topics described in subsequent
sections of this profile -- pollutant outputs, pollution prevention opportunities, and Federal
regulations. This section does not attempt to replicate published engineering information that
is available for this industry. Refer to Section IX for a list of reference documents that are
available. Note also that Section V, Pollution Prevention Opportunities, provides additional
information on trade-offs associated with the industrial processes discussed in this section.
This section describes commonly used production processes, associated raw materials, the
byproducts produced or released, and the materials either recycled or transferred off-site.

This discussion identifies where in each process wastes may be produced. This section
concludes with a description of the potential fate (via air, water, and soil pathways) of
process-specific waste products.
Natural Fibers
Yarn formation can be performed once textile fibers are uniform and have cohesive
surfaces. To achieve this, natural fibers are first cleaned to remove impurities and are then
subjected to a series of brushing and drawing steps designed to soften and align the fibers.
The following describes the main steps used for processing wool and cotton. Although
equipment used for cotton is designed somewhat differently from that used for wool, the
machinery operates in essentially the same fashion.

Opening / Blending: Opening of bales sometimes occurs in conjunction with the blending of
fibers. Suppliers deliver natural fibers to the spinning mill in compressed bales. The fibers
must be sorted based on grade, cleaned to remove particles of dirt, twigs, and leaves, and
blended with fibers from different bales to improve the consistency of the fiber mix. Sorting
and cleaning is performed in machines known as openers. The opener consists of a rotating
cylinder equipped with spiked teeth or a set of toothed bars. These teeth pull the un baled
fibers apart, fluffing them while loosening impurities. Because the feed for the opener comes
from multiple bales, the opener blends the fibers as it cleans and opens them.

Carding: Tufts of fiber is conveyed by air stream to a carding machine, which transports the
fibers over a belt equipped with wire needles. A series of rotating brushes rests on top of the
belt. The different rotation speeds of the belt and the brushes because the fibers to tease out
and align into thin, parallel sheets. Many shorter fibers, which would weaken the yam, are

32
separated out and removed. A further objective of carding is to better align the fibers to
prepare them for spinning. The sheet of carded fibers is removed through a funnel into a
loose ropelike strand called a sliver. Opening, blending, and carding are sometimes
performed in integrated carders. That accepts raw fiber and output carded sliver

Combing. Combing is similar to carding except that the brushes and needles are finer and
more closely spaced. Several card slivers are fed to the combing machine and removed as a
femur, cleaner, and more aligned comb sliver. In the wool system, combed sliver is used to
make worsted yam, whereas carded sliver is used for woolen yam. In the cotton system, the
term combed cotton applies to the yam made from combed sliver. Worsted wool and combed
cotton yarns are finer (smaller) than yam that has not been’ combed because of the higher
degree of fiber alignment and father removal of short fibers.

Drawing:-Several slivers are combined into a continuous, ropelike strand and fed to a
machine known as a drawing frame (Wingate, 1979). The drawing frame contains several
sets of rollers that rotate at successively faster speeds. As the slivers pass through, they are
further drawn out and lengthened, to the point where they may be five to six times as long as
they were originally. During drawing, slivers from different types of fibers
(e.g., cotton and. polyester) may be combined to form blends. Once a sliver has been drawn,
it is termed a roving.

Drafting:-Drafting is a process that uses a frame to stretch the yam further. This process
imparts a slight twist as it removes the yam and winds it onto a rotating spindle. The yarn,
now termed a roving in ring spinning operations, is made up of loose assemblage of fibers
drawn into a single strand and is about eight times the length and one-eighth the diameter of
the sliver, or approximately as wide as a pencil (Wingate,1979). Following drafting, the
ravings may be blended with other fibers before being processed into woven, knitted, or
nonwoven textiles.

Spinning.-The fibers are now spun together into either spun yams or filament yams. Filament
yams are made from continuous h e strands of manmade fiber (e.g. not staple length fibers).
Spun yarns are composed of overlapping staple length fibers that are bound together by twist.
Methods used to produce spun yams, rather than filament yams, are discussed in this section.
The ravings produced in the drafting step are mounted onto the spinning frame, where they

33
are set for spinning. The yarn is first fed through another set of drawing or delivery rollers,
which long then and stretches it still further. It is then fed onto a high-speed spindle by a yarn
guide that travels up and down the spindle. The difference in speed of travel between the
guide and the spindle determines the amount of twist imparted to the yarn. The yarn is
collected on a bobbin. In ring spinning, the sliver is fed from delivery rollers through a
traveler, or wire loop, located on a ring. The rotation of the spindle around the ring adds twist
to the yam. This is illustrated in Figure 4(1). Another method, shown in Figure 4(2), is open-
end spinning, which accounts for more than 50 percent of spinning equipment used (ATMI,
1997b). In this method, sliver passes through rollers into a rotating funnel-shaped rotor.
The sliver hits the inside of the rotor and rebounds to the left side of the rotor, causing
the sliver to twist. Open-end spinning does not use rotating spindles since the yarn is twisted
during passage through the rotor,

Manmade Fibers
Although not classified under SIC 22, manmade fiber production is briefly discussed
in the following paragraphs to describe the upstream processing of textiles. Manmade fibers
includes
1. Cellulosic fibers, such as rayon and acetate, which are created by reacting chemicals
with wood pulp; and
2. Synthetic fibers, such as polyester and nylon, which are synthesized from organic
chemicals.

34
 COMPANY PROFILE
Viswateja spinning mills pvt ltd is established in the year 2005. its managing director
SRI DASARI SESHAGIRI RAO is in the cotton business for the last 35 years. he have
grown-up from a retail clot merchant stage to a ginner / well known cotton merchant then to a
cotton seed oil manufacturer under the name of "srinivasa cotton and oil mills " Rs. 120 crore
turn over company and diversified into cotton yarn manufacturing in the year2005.
Under the leadership of sri seshagiri rao, viswateja spinning mills pvt.ltd., have rapidly
expanded from 12096 spindles capacity to 48912 spindles capacity (non compact 38,352
spindles and compact yarn 10560 spindles) within a span of 5 years. with the support of well
qualified promoter directors and committed employee force "viswateja" is progressing
excellently and established its label in Indian cotton yarn market.
Factory Location:
VISWATEJA SPINNING MILLS PVT LTD is located on the national highway (NH5) at
boyapalem, Guntur (dist), Andhra Pradesh, India.
Details about the construction and implementation

Schedule for implementation Start Finish

Land acquisition - June 2004
Building construction Aug 2004 Dec 2005
Machinery orders Jun 2004 Aug 2004
Machinery delivery Jan 2005 May 2005
Erection of machinery Jan 2005 July 2005
Trail runs - July 2005
Stabilization of operations - Sep 2005
Commercial production - Oct 2005

35
 BOARD OF DIRECTORS

Sri Dasri Seshagiri Rao Managing Director

Sri D.Lakshmi Sivarama Prasad Executive Director

Sri Dasari Chandra Sekhar Executive Director

Sri Kakaraparthy Ramesh Executive Director

Sri Kakaraparthy Seshagiri Rao Executive Director

Sri Narra Subbaramaiah Director

Sri Kollipara Narasimha Rao Director

Sri Dasari Satyanarayana Director

Sri Kakaraparthy Krishna Murthy Director

Sri G.Seetaiah Technical Director

PRODUCT
The Company With A Production capacity Of Around 360 Tons Per Month,
Manufactures Auto Coned Siros Cleared Cotton Spun Yarns For Weaving / Knitting
Applications Using Sophisticated Machinery From Trutzschler, rieter,
Zinsser,Suessen,LmwandSchlafhorst

NE 40/1 COMBED WEAVING : NE 40/1 COMBED COMPACT

NE 50/1 COMBED WEAVING : NE 50/1 COMBED COMPACT
NE 60/1 COMBED WEAVING : NE 60/1 COMBED COMPACT

36
 QUALITY
The company have a long reputation for quality, performance and innovation. Quality of final
product is determined with quality of raw material. In VISWATEJA SPINNING MILLS
PVT LTD., we take meticulous care in the selection of cotton. Our dedicated, committed and
involved cotton selectors at different stations headed by experienced supervisors, spares no
pain in the selection of Kapas or Raw cotton available in the market. There are quality checks
at every stage of manufacturing starting from Raw Cotton. After each lot of fabric is cut,
100% cut parts inspection is conducted to ensure that only good quality pieces move to the
stitching units. To ensure that the garments are packed as per the requirements of our valued
customers, we can even track and check, which case the garment, have been packed in.

"Viswateja" Is Equipped With The Following Testing Equipment In-House.

 UsterTeste4
 StatexCspSystem
 Statex Twist
 System Tester
Other Quality Parameters Given Here Under Are Being Checked At Regular Intervals In
The Commercial Testing Centres Available Near By.

 Neps In Uster Afis Pro

 Classimat In Uster Quantum Classimat
 Rkm In Uster Tensojet – 4
 Cotton Parameters In Uster Hvi

Training and Development:

Mills Conduct on the Job Training Programs for Workers. For Continuous Improvement.
Company Have Its Own System Of Providing Training To All Its Employees. The
Effectiveness Of Training Is Monitored And Reviewed At Regular Intervals.
A Team Consisting Of A Senior Training Officer And 3 Training Teachers Are Entrusted For
The Above.

37
 INFRASTRUCTURE
Areal View

Dormatory

38
 MACHINERY

Bale Plucker Blow Room

Carding Combers

Drawing Simplex

Ring Frames Auto Coner

39
 UNIT I UNIT II UNIT III

LMW LINE WITH LMW LINE WITH TRUMAC LINE WITH

BLOW VETAL VETAL VETAL
ROOM CONTAMINATION CONTAMINATION CONTAMINATION
SORTERS SORTER SORTERS (2 NOS.)

CARDING LMW LC 300A LMW LC 300 A TRUMAC D K 800

COMBERS LMW LK – 54 LMW LK - 54 RIETER E 65

LMW RSB 851

DRAWING LMW RSB 851 RIETER D 40
RIETER D 40

SIMPLEX LMW LF 1400 A LMW LF 1400 A ZINSER 668

SUESSEN ELITE
RING FRAME LMW LR 6/S LMW LR 6/S COMPACT AND LMW
LR 60 / A

AUTO SCHLAFHORST 338 SCHLAFHORST 338 SUHLAFHORST A/C 5

CONER WITH LOEPFE WITH GOLD WITH WITH PRPOPACK,
SPECTRA PLUS RPOPACK, ECOPACK ECOPACK AND
CLEARERS WITH AND LOEPFE LOEPFE ZENITH
FOREIGN FIBRE ZENITH CLEARERS CLEARERS WITH
CLEARING WITH FOREIGN FOREIGN FIBRE &
FIBRE CLEARING ALSO PP
FACILITY CONTAMINATION
CLEARING FACILITY

40
 MANUFACTURING PROCESS

 Cotton bales and boras are opened, mixed and sent through Blow room. In Blow
room cleaning of cotton will be done thereby major impurities and foreign particles
are removed from cotton and cleaned cotton will be fed to the carding directly
through chute feeding.

 In Carding, Cotton fiber individualization and further cleaning will be done.

Processed material at this stage is called Card slivers. These Card slivers are filled in
HDPE cans.

 Card slivers received from carding are fed to breaker Draw Frame and from there to
Lap former, which are comber preparatory and then to combers where depending on
the quality requirement short fibers are removed and combed slivers are filled into
cans.

 Combed slivers received from combers will be fed to Finisher Drawing, where there
will be improvement of uniformity and parallelization of fibers. The processed
material at this stage is called Drawing Sliver.

 Drawing Slivers received from drawing section will be fed to simplex, where yarn
will be formed as Roving Bobbins to feed conveniently to Ring of Cops.

 Bobbins received from Simplex will be fed to Ring Frames, where Final yarn is
received in the form

 Cops received from Ring Frames will be fed to Auto Coners/Cone winding where
Auto Cones/ Coned yarn, the finished product will be obtained.

41
 COMPANY MISSION VISION STATEMENTS
 Vision statement
 viswateja aims at establishing a world class recognition by providing the best quality
yarns consistently to its customers.
 Mission statement
 Mills motto is to achieve top class customer satisfaction with continual improvement
in quality and service.

FUNCTIONS OF FINANCE MANAGER:

He looks after day-to-day accounting and financial operations in the Accounts Departments.
He is closely associated in completion of statutory audit of The Company under Companies
Act 1956 and also in connection with the annual Tax Audit under Income-tax Act. He is
independently responsible for submitting working capital renewal application to Banks and
also furnishers required information under Quarterly Information System. Further, he
provides information to Board Meeting relating to Profit and Loss Account, Balance Sheet,
Turnover particulars and Un-audited results etc., for each quarter. Apart from the above he
looks after sales tax matters of the company and attends before Sales Tax Departments for
completion of Assessments.

FUNCTIONS OF MARKETING MANAGER:

He coordinates with production department, quality control & dispatch section for planning
of the production, supply of right product and at the right time to the customers.
He continuously explores new markets or customers. In order to promote the producers of the
organization regular customer contacts are maintained.
In view of the limited growth of the industry, maintaining the market situation in order to
retain the customers. He keeps an eye on the competitor’s strategies by analyzing the market
situation in order to retain the customers. Monitoring the overall performance of sales
organization is also one of the functions

FUNCTIONS OF PRODUCTION MANAGER:

He is in charge of the Production Department. He prepares requirements of raw materials as
per the indents given by the Marketing Department. He takes total responsibility from the
stage of processing raw material to the stage of packing of finished products.
His efforts include minimizing the labor cost, inventory, wastage in order to achieve high
42
productivity. His responsibility includes advising the Management with respect to capacity
utilization and further requirements.
Accounting Policies of Viswateja Spinning Mills Pvt Ltd:

General :
To prepare financial statements in accordance with applicable with applicable
accounting standards in India. The financial statements have also been prepared in
accordance with relevant presentational requirements of the companies act, 1956.
Revenues:
It is the corporate policy to state turnover, which represents invoiced value of goods
sold net of taxes, insurance and freights. The company is following mercantile system of
accounting i.e., revenues/expenses are recognized as and when they are earned/ incurred.
Inventories:
In our opinion and to the best of our information and according to explanations given
to us, they said accounts read with the significant accounting policies, the Inventories are
valued as follows:
Raw materials, Stores & Spares and materials in transit have been valued at the lower of cost
or net realizable value.

Fixed Assets:
Fixed Assets are stated at cost / original value according to the accounting standard-
10. Expenditure incurred for construction of new plant was capitalized. Cost of fixed assets
comprises of its purchase price and other costs directly attributable to bringing the asset to its
working condition for its intended use like site preparation, initial delivery and handling
charges, installation cost such as for special foundation and professional fees paid to
architects and engineers..
Depreciation:
Depreciation on fixed assets is provided on SLM method at rates and in the manner
prescribed by the schedule XVI of the companies act, 1956 (as amended) and according to
the accounting standard –6 issued by ICA I
Prior period items:
Insurance on plant and machinery and building was posted to building accounting i.e.
capitalized. The insurance expenditure Rs.204421/-. Wrongly capitalized during the financial
year 2004-05 was written back and claimed as revenue expenditure.
43
Speculation Business:
Loss on foreign business (Loss in euro sales) Rs.5, 34,562/- was claimed as revenue
expenditure.

Contingencies:
S.B.I. LC Loan RS. 28723860/- sanction for the purchase of machinery from
Schlafhorst Pvt. Ltd. The liabilities will arise when the machinery received.
Taxes on Income:
Current tax is determined as per the provisions of Income Tax Act, 1961 in respect of
taxable income for the year. Deferred tax liability is recognized. Subject to the consideration
of prudent on timing differences, being the difference between taxable incomes and
accounting income that originate in one period and is capable of reversal in one of more
subsequent periods.
Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation
as per Income Tax laws are recognized only when there is virtual certainty supported by
convincing evidence that such assets will be realized. Deferred tax assets arising on other
temporary differences are recognized only if there is a reasonable certainty of realization.

Dividends:
Provision is made in the Accounts for the Dividends payable by the company as
recommended by the Board of Directors, pending approval of the Shareholders at the Annual
General Meeting, Tax on distributable Profits is provided for in the year to which such
distributable Profits relate.
Information Related To Viswateja Spinning Mills Pvt Ltd
The company has maintained proper records showing full particulars, including
quantitative details & situation of fixed assets is performed by the management in accordance
with a rotational plan, which is intended. The management have conducted physical
verification of inventory at reasonable intervals during the year; the procedures of physical
verification of inventory followed by the management are reasonable & adequate. There are
adequate internal control procedures commensurate with the size of the company and the
nature of its business, for the purchase of inventory & financial accounts and for sale of
44
goods. The company have accepted 64 lakhs as deposits from the public.

The company have an internal audit system, commensurate with the size of the
company and the nature of the business. The company have no accumulated losses at the end
of financial year and it have not incurred any cash losses in the current & immediately
preceding financial year. The company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore the provisions of clause 4(xiii) of the companies (auditor’s report)
order, 2003 are not applicable to the company.

The company is not dealing in or trading in shares, securities, debentures and other
investments. Accordingly the provisions of clause 4(xiv) of the companies (auditor’s report)
order, 2003 are not applicable to the company.

The central government have not prescribed maintenance of cost records by the
company under section 209(1) (d) of the act. According to the records of the company, the
company is regular in depositing undisputed statutory dues including withholding of taxes,
provident fund, employees state insurance, income tax, vat, wealth tax, custom duty, & other
statutory dues with the appropriate authorities.

45
 BIBLIOGRAPHY

Reference Books:

 K.ASWATHAPPA- Human resource management-5TH Edition-Tata McGraw Hill

publishing Ltd.

 DR.P.SUBBARAO- Personnel and Human Resource Management- Himalaya

Publishing House

 ARUN MONAPPA-Industrial Relations- Tata McGraw Hill publishing Ltd.

 C.B.MAMORIA, S.V.GANKAR-Personnel Management-Himalaya Publishing

House-2009.

 A.M.SHARMA-Personnel and Human Resource Management- Himalaya Publishing

House-2009.

 HRM Review Magazine - Work life Balance, IUP Publications

Journals:

Economic Times
Business Standard
Business Line

Websites:
www.Google.com
www.suyacem.com
www.scribd.com
www.slideshare.com
www.citehr.com

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