A REPORT ON

SUMMER INTERNSHIP/ PROJECT WORK

for
Laxmi Diamonds Surat
Submitted to
INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM) CHAROTAR
UNIVERSITY OF SCIENCE AND TECHNOLOGY
(CHARUSAT)
CHANGA

Prepared by
SHIVAM B PATEL
ID NO.:17MBA086
M. B. A. First Year
Under the Guidance of
Dr.Govind Dave

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)

CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY
(CHARUSAT)
AT & PO. CHANGA-388 421 TA: PETLAD DIST. ANAND, GUJARAT

July 2018

1
 DECLARATION
I, Shivam Patel student of the two year MBA programme at Indukaka Ipcowala Institute of Management
(I2IM) hereby declare that the report on summer training and project work entitled “A study on the
organization Culture of Laxmi. Pvt.ltd Surat.” is the result of my own work. I also acknowledge the other
works publication cited in the report.

Place: Changa Signature:

Date: (Shivam Patel)

2
 ACKNOWLEGEMENT
With immense pleasure, I would like to present this project report on Overview of Human Resource
Management,“A study on the organization Culture of Laxmi. Pvt.ltd Surat.” located Gujarat. It has been
an enriching experience for me to undergo my summer training at Laxmi Diamonds, which would not have
possible without the goodwill and support of the people around.

As a student of Indukaka Ipcowala Institute of Management, I am highly thankful to Dr. Govind Dave
(Dean of M.B.A Department I2IM, Charusat University, Changa.) who allowed me for this project at Laxmi
Diamonds. I would like to give my heartily thanks to my industry guide who guided me and support
throughout the project. Without them I would not be able to complete this project successfully. I am very
thankful to whole staff who helped me at every step whenever needed.

I sincerely thanks to my faculty guide Dr. Govind Dave sir, for providing understanding on the ways of
preparing a project report and for the guidance and support for Summer Training.

Lastly, I convey my regards to the whole staff, which made my stay at Laxmi Diamonds, a memorandum
part of life.

3
Contents
1. Introduction ................................................................................................................................................... 6
1.1 History of diamond: ................................................................................................................................. 6
1.2 Diamond................................................................................................................................................... 7
1.3 The Company: Evolution and History ..................................................................................................... 7
1.4 Detail of owners laxmi diamond .............................................................................................................. 7
1.5 The Company: Mission and Vision ......................................................................................................... 7
1.6 The Company: Governance / Management Structure .............................................................................. 8
1.7 The Company: Products ........................................................................................................................... 8
1.8 The Company: Geographical spread of Facilities .................................................................................... 8
2. Functional Areas: ........................................................................................................................................... 9
2.1 Markets and Marketing ............................................................................................................................ 9
2.1.1 COMPARISON OF 4 P’S - ............................................................................................................ 10
2.2 Production / Operations ......................................................................................................................... 12
2.2.1 STRUCTER OF PRODUCTION DEPARTMENT ....................................................................... 12
2.2.2 PROCESS OF PRODUCTION: ..................................................................................................... 13
2.2.3 SWOT ANALYSIS ........................................................................................................................ 16
2.3 Human Resource Management .............................................................................................................. 16
2.3.1 STRUCTURE ................................................................................................................................. 17
2.3.2 PERFORMANCE APPRAISAL: ................................................................................................... 18
2.3.3 RECRUITMENT: ........................................................................................................................... 20
2.3.4 SELECTION: .................................................................................................................................. 20
2.3.5 WELFARE ACTIVITY .................................................................................................................. 23
2.3.6 INCENTIVE & MOTIVATION SYSTEM INCENTIVE: ............................................................ 24
2.4 Finance and Accounts ............................................................................................................................ 24
2.4.1 CAPITAL BUDGETING ............................................................................................................... 25
2.4.2 COST STRUCTURE ...................................................................................................................... 25
2.4.3 FINANCIAL ANALYSIS: ............................................................................................................. 25
PART II – PROJECT STUDY ........................................................................................................................ 28
INTRODUCTION ....................................................................................................................................... 28
REVIEW OF RELATED LITERATURE ................................................................................................... 28
OBJECTIVES .............................................................................................................................................. 29
HYPOTHESIS ............................................................................................................................................. 29
DATA ANALYSIS AND INTERPRETATION ......................................................................................... 30
LEARNING ................................................................................................................................................. 32
REFERENCES ............................................................................................................................................ 33

4
5
1. Introduction

1.1 History of diamond:

As long as about three thousand year ago, man bent down to pick up a glistering pebble and by some chance
found it to be different from other stones form that times, diamond began to acquire magical power and
avarice. More recently it has become an object of extreme scientific Curiosity.
Diamond is formed when carbon atoms deep in the earth are exposed to enormous heat and pressure over
millions of years. In fact, the first known diamond deposits were brought to. The surface of the earth two and
a half billion years ago and the most recent deposits are 50 million years, meaning that all diamonds are a
genuine piece of pre-history!
Man began to collect diamond treasure them, built legends around them trade in them as, use them as tools,
them as gems, raise loan with them fight over them, and eventually to give them as symbol of love and trust
his early instinct to treat diamond as unique was true, because today probably more effect goes into research
on any other material.

The desire for diamond because of its beauty of its scientific and industrial uses has not diamond over the
years but has become much more widespread. A century ago, the possession of a diamond was the
prerogative of the rich alone since the discovery of huge deposit in Africa, and more recently Diamond pipes
in Russia, mining and marketing of diamond has brought them within reach of large section of the
population of industrial countries, both as gems and as parts of working tools.
Diamond can be broken with the blow of hammer yet will penetrate steel by pressure. It is extremely
durable, being able to withstand and attacks the strongest acids and alkalis, yet is an unstable forms of
carbon and will burn or oxidizes on the surface it dropped in a fire for short times.
Diamonds are one of the most precious stones available on earth, they are the centre of attraction since many
centuries. Diamond have been associated with romance, strength, power over the centuries. However,
diamond has now acquired its unique status as the ultimate gift of love also associated with invulnerability,
lighting, magic, healing, protection, and poisoning.
The word ‘Diamond’ comes from the Greek word ‘Adamas’ (hardest know substance) means unconquerable,
suggesting the eternity of love. The Greeks also believed that the fire in the Diamond reflects the constant
flame of love.

Diamond’s essence lives longer. It results of everlasting bound between life giving oxygen atom and strength
of rare earth metal atom, a heavenly dance above 5000o F (double the melting point of steel). Diamond is
crystallized mineral essentially composed of carbon. The smallest practical of diamond of crystal are always
in cubic shape. It is found in many shapes like Cubic or Hexagon, Octagon and Dodecahedron. It is the
hardest substance ever found by human being on the earth. The first Diamond site was in Golconda.
Arunachal Pradesh, India around 1000 AD. Now diamond are mined in Africa, Anglo, Australia, Botswana,
Brazil, Canada, China, India, Ivory coast, Ghana, Guinea, Liberia, Namibia, Russia, South Africa, Sierra
Leone, Tanzania, Venezuela and Zimbabwe.

6
1.2 Diamond
Early description of faceting diamond refer to polishing and it is presumed that octahedral crystals were left
their natural shape or the angled of the face were altered by cutting, since they were altered by cutting since
they were called points-cut stones. An octahedral face is in fact impossible to polish. Moreover, the process
of cleaving produces points stones without the necessity for polishing Grinding to remove the top point of
the Octahedral crystal to produce what was called the table stones presumably come later. The history of
cutting and polishing is purely documented and the art remained a trade secret for many centuries. It is
uncertain where cutting Originated, whether in Europe or India, as well as which Europe was probably in the
fourteenth century and in India possibly about the sometimes because there was on earlier bon for
superstitious reason on shaping diamond superstious. Probably delayed the development in the alternation of
a diamond was supposed to destroy its magical properties. Tavernier noted in the seventeenth century that
there were considerable differences in the techniques of European and Indian cutters. He also surmised that
the Indian used facets to hide flaws.

1.3 The Company: Evolution and History

Set up in 1972, Laxmi diamond is one of the biggest as well as reputed names in the field of diamond. Mr.
VasantbhaiGajera established it with an initial work force of only 7 persons. At that time it was a “family
business”. But in the year of 2004 the condition is totally different, now Laxmi diamond is a 100%. (Export
oriented unit). There are more than 7000 employees working at the different places in India as well as
abroad. The annual turnover of the company is above 1000 crores. Internationally, it has an enviable
presence – New York, Antwerp, Hong Kong, USA, Bangkok, etc. In domestic market it has a strongest chain
in retail market over 150 outlets spread across traditional jewelers and lifestyle store in Mumbai, Pune,
Nagpur, Ahmedabad, Vadodara, Surat, Jamshedpur, Kolkata, Bangalore, Chennai, Cuttack, Bhubaneshwar,
to name a few.

1.4 Detail of owners laxmi diamond

Today the Laxmi Diamond group has 12 Manufacturing units across the globe:

• Six diamond cutting & polishing factories in Gujarat, India.

• Three Jewellery Manufacturing units in India
• Laxmi Jewel Pvt. Ltd. – 43,000 sq. ft. in SEEPZ at Andheri, Mumbai
• Shree Laxmi Info solutions & Jewellery Ltd., SEEPZ, Andheri, Mumbai
• Laxmi Diamond Jewel Pvt. Ltd. – 20,000 sq. ft. in Kandivili, Mumbai •Three Jewellery
Manufacturing units overseas:
• Laxmi Diamond Jewels (Thailand) Co. Ltd. in Bangkok, Thailand •IJM in Chiang Mai, Thailand.
• Siberia Brothers, New York, USA.
• Apart from this the group also has a global presence with several offices & group.

1.5 The Company: Mission and Vision

VISION:
We will become one of the leading polished Diamond manufacturers of the world through
 Efficient Production
 Efficient Utilization
 Efficient Diversification
 Efficient Expansion MISSION:

7
  To be the biggest name of the country in the export of Diamond and Diamond Jewellery by 2020
VALUES:
 We believe customer satisfaction.
 Human resources are our greatest assets.
 We believe in “for the people, by the people and from the people” so we create platform for less
fortunate people of the society.

1.6 The Company: Governance / Management Structure

1 The company has flat and simple management structure of following members:
1. Top Management – Factory Head
2. Senior Management – Managers
3. Middle Management – Head of the Department
4. Junior Management – Assistants
The working category is future divided so that work efficiency increase as highly skilled, skilled,
semiskilled, unskilled, and trainee.
2 Structure according to Designation:
General Manager > Manager > Assistant Manager > Senior Executive > Executive > Senior Officer >
Officer > Staff

1.7 The Company: Products

Laxmi Diamond has become 100% EOU (Export Oriented Unit). It totally deals with manufacturing and
polishing the diamond and it also gives variety of shapes as well.
Laxmi Diamond is specialist in giving following type of shapes:

• Round
• Princess
• Taper

1.8 The Company: Geographical spread of Facilities

Laxmi Diamond is one of the most leading Diamond Manufacturing Company in India as well as in world. It
has it manufacturing, branch and unit India & abroad too.
Laxmi Diamond’s Corporate Head Office is in Bandra (East), Mumbai, India & its Manufacturing Head
Office at Katargam, Surat, and Gujarat, India.
Facilities spread in India:
Manufacturing: 1. Katargam, Surat.
2. Opera House, Mumbai.
3. Andheri (East), Mumbai.
4. Kandivali (West), Mumbai.
Branch Office in India: 1. Opera House, Mumbai.
2. Varachha, Surat.

8
Facilities spread in Abroad:
Manufacturing: 1. Bangkok, Thailand.
2. Chiang Mai, Thailand.
3. New York, United States of America.
Branch Office: 1. Antwerp, Belgium, Europe.
2. Deira, Dubai, United Arab Emirates.
3. Kowloon, Hong Kong, China.
4. Phasricharoen, Bangkok, Thailand.
5. Bang Rak District, Bangkok, Thailand.

2. Functional Areas:
2.1 Markets and Marketing

Marketing is a societal process by which individual and groups obtain what they need and want through
correcting, offering and freely exchanging products and service of value with others for managerial
definition marketing has been described as “the art of selling products”. But people are surprised when they
hear that the most important part of marketing is not selling. Selling is only the tip of the marketing iceberg.
Marketing is a philosophy concerned with the mobilization, utilization and control of total corporate effort
for the purpose of helping consumer in solving selected problems.
“There will always, one can assume, be need for some selling but the aim of marketing is to make selling
superfluous. The aim of marketing is to know and understand the customer so well that the products or
services fit him and sell it. Ideally, marketing should result in a customer who is ready to buy. All that should
be needed then is to make the product or service available.”
Laxmi Diamonds sell its finish product in foreign market. It is a big importer and exporter of polished
diamond. So there is no need to effective marketing department. In Laxmi Diamonds there is no marketing
department, but they have selling department. The head office at Mumbai handles the selling activity.
1.Customer Segmentation and Target Market –
Customer segmentation can be identified by examining demographic, psychographics, and behavioural
differences & geographic. The marketers then decide which segment presents the greatest opportunities that
are its target market. For each chosen target market the firm develops a market offering. Laxmi diamond has
geographic segmentation, which call for dividing market unit such as nation, state, countries, and cities
region etc. Laxmi Diamond has greatest opportunity in geographic segment, so its target market geographic
segment.
Laxmi diamond segments two type of customer. These two types of customer are as follows:
1)Indian market
2)Foreign market
2. Promotion and Advertising -
There are five tools in promotion. These are as follows:

1) Advertising
2) Sales promotion
3) Personnel selling
4) Public relation
5) Direct marketing
9
Laxmi diamond industry in manufacture unit advertising is not possible. The sale promotion is doing. In
sales promotion they are given best grinding, best shape & doing best-cut best color etc. In an all Laxmi
Diamond spends around Rs. 20 lacs in Advertisements and Promotions.
Some diamond is sale in direct to the market. There are no intermediaries available.

3. Customer Satisfaction -
To elaborate on the process of acquiring customer feedback, his perceptions etc. in LAXMI DIAMOND.

• In LAXMI DIAMOND, customer feedback about performance of the collected in written from
customer.
• Feedback so received is tabulated for review.
• Negative feedback/ remarks are immediately brought to the notice of Managing Director/
Concerned Director.
• Customer feedback format (QRF/8.2.1/01) is provided to customer if required.
• Marketing manager is responsible to issue and receive filled up forms and for compiling the
information.
• Marketing Manager is to put up negative feedback and summary to Managing Director & sales
seeking guidance / advice for necessary corrective actions.

2.1.1 COMPARISON OF 4 P’S -

We are comparison 4ps with Laxmi diamond to his competitors. These 4ps are as follows:
 Product
 Price
 Place
 Promotion

Product:
Laxmi diamond produce diamonds with give different shape. Laxmi Diamond Company is specialist in
following shapes.

 Round
 Princess
 Taper
 Marquise
 Pan
 Chakri
 Oval
In another company also produce diamond, but that company is not specialist in above shape. Another
company give diamond shape but not same as Laxmi diamond company. Laxmi Diamond Company import
good rough diamond. So its product quality is the best. They give best design and development to the
diamond to comparison with his competitors.

10
Price:
In diamond industry according to price there is not possible to comparison with competitors. Because of
different diamond are different price. Diamond price calculate on carat. All diamond carats are different. It
comes in dollars& after converted in rupees.

Promotion:
There are five tools for promotion. These are as follows:
1) Advertising
2) Sales promotion
3) Public relation
4) Personnel
5) Direct marketing
In Laxmi diamond company, they are do best cut, best colour, and give best grinding, best polished& best
shape for diamond sales.
Another company is also trying to give best grinding, best polish and do best cut, best shape but it is not
same as to Laxmi Diamond Company.
Place:
The distribution channel is same for all diamond company in India. But Laxmi diamond company
distribution channel is best comparison with his competitors.
Laxmi Diamond Company has covered many countries in world. For e.g. HONKONG, U.S.A.,
MALAYSIA, BRITON, AND THAILAND etc. His competitors are not so cover area as Laxmi Diamond
Company.

11
2.2 Production / Operations

2.2.1 STRUCTER OF PRODUCTION DEPARTMENT

MANAGER

JIGNESHBHAI

ASST. MANAGER
RAJIVBHAI,
BHAVESHBHAI,
HASMUKBHAI

SENIOR EXECUTIVE
ARVINDBHAI

EXECUTIVE
RASIKBHAI

SENIOR OFFICER
DHIRUBHAI,
MADHAVBHAI,
NITINBHAI

OFFICER- 12

WORKER -2000

12
 PRODUCTION PLAN:

PROCESS FLOW CHART

ROUGH ALLOTMENT TO
DIAMONDS CLEAVING I,II,III
FROM DTC BY CEO
NO
T
RE
FOTU
R RN
FUED
RT
CLEAVING DONE TO
HECE
BY CLEAVING
CUT DIAMONDS R
BACK TO CLEAVING I,II,III O
PR
OC
M
ES
AK
S
AB
LE

RESIDUE/
LASER POLISHING
WASTAGE

POLISHED
ASSRT / QC /
DISPATCH

EXPORT

2.2.2 PROCESS OF PRODUCTION:

LAXMI DIAMOND Company import rough diamonds by D.T.C. (Diamond trading company) in Belgium.
Diamond manufacturing is a very skilful process. At Dharmanandan Diamonds entire force of artisans is
highly skilled. Each artisan is always trying to achieve the best of a given diamond as per the specifications
given by the assorted and the planner. The entire process of manufacturing starts with the rough assortment
and ends with the stone being polished, from where it goes for assortment & grading.

1)Rough Assortment:
This is a very important department, as a diamond begins its journey of being transformed from a rough to a
polished stone from here onwards. The work of this department is to check the rough stone and to determine
its properties such as purity, colour, & size etc. i.e. 4'C's namely colour, clarity, carat, cut. Keeping all these
4Cs in mind they give the rough stone a grade.

13
2)Marking
This is also one of the most important phases of the entire manufacturing process. It can also be known as
the brain department of the entire process. Marking is done after examining each rough diamond to decide
how it should be cut to yield the greatest value. The shape of the rough diamond and the number and location
of inclusions, or blemishes, are first considered. Since the crystalline structure of diamond causes it to have a
grain (called cleavage), it is critical to plan for the facets of the diamond to be made in the correct direction.
Taking these factors into account, the planner decides how the diamond should be cut and marks it to
indicate where the stone should be cleaved or sawed.

3)Cleaving
Here the expert has to decide whether the marked diamond should be cleaved or sawn as per the mark and
planes of each individual diamond. When the stone is very large and valuable, cleaving it is a critical
process, because a mistake by the planner or the cleaver can shatter the diamond. The cleaver's job is to cut
the diamond into two pieces to bring out the best angles and establish what the final cut will be. Cleaving is
done by hi tech laser machine marking and then by chisel and hammer. However, some stones have too
many stress points and might fragment if cleaved, so they must go to the sawyer. This process is extremely
meticulous and time-consuming.

4)Sawing
If the diamond needs to be sawn, blades or laser machines do it, which is the latest technology in sawing.
The saw used in diamond processing is a paper-thin disk of phosphor bronze that rotates on a horizontal
spindle at about 4,000 rpm. The diamond is clamped so it rests against the blade and is sawed for several
hours, depending on the size of the diamond. Since diamond is the hardest substance on earth, it can only be
cut by another diamond. Therefore, diamond dust is used on the saw, as well as the actual diamond dust
generated by the crystal being cut. After the process of cleaving / sawing the diamond is sent back to the
assortment department for checking and is then passed to the next process, bruiting.

5)Bruiting:

In this department, bruters give different shapes to the diamonds as earlier planned, in such a way that the
polisher can achieve maximum yield. Normal bruters, Maxi bruters, advanced bruters as well as laser bruting
machines are used in this process. The bruters has to take its utmost care of the diamond at this process so
that it does not break. Also in this process the bruter has to leave as much of natural skin on the piece of
diamond as possible. This is because one can check out that the weight loss of the diamond in this process is
not more than required. In the whole process of bruting the main aim of the bruter is to give a shape to the
rough diamond in such a way that its optimum effect can be achieved by the polisher, without any extra
weight loss than required.

6)Polishing
After being bruted a diamond passes to the polishing department where the final work of faceting is done.
Polishing means the process of giving the diamond its final look. The diamond is clamped onto a revolving
cast-iron lap (a horizontal, circular disk) that has been charged with diamond dust. The fine diamond dust
acts as an abrasive to polish away small imperfections and make the surface of the stone perfectly smooth.
Here the artisan has to be very careful at all stages as even a small mistake done by him can make the
diamond look poorer than what it might have looked had it been cut properly. This is the last step in the
manufacturing process of the diamond.

14
Production Process

15
2.2.3 SWOT ANALYSIS
Strength:
• One million craftsman associated with it. Their skills can be harnessed for designing and making
modern jewellery.
• Abundance of cheap and skilled labour in India.
• Excellent marketing network spread across the world.
• Supportive government industrial/ Exim policy.

Weakness
• High domestic interest rates compared to elsewhere
• Small firms lacking technological/ export information expertise.
• Low productivity compared to labor in china, Thailand and Shrilanka.
• As the major raw material requirements need to be imported, companies normally stock huge
quantities of inventory resulting high inventory carrying costs.

Opportunities
• New markets in Europe & Latin America
• Growing demand in south Asian &far east countries.
• Removal gold control act.

Threats
• New markets in Europe & Latin America
• Growing demand in south Asian &far east countries.
• Removal gold control act.

2.3 Human Resource Management

Human resource management may be defined as a set of policies, practices and programmes designed to
maximize both personal and organizational goals. It is the process of binding people and organizations
together so that the objectives of each are achieved.

According to Flippo, personnel management or Human resource management is “touctionthe the planning,
organizing, directing, and controlling of the procurement, development, compensation, integration,
maintenance and reproduction of Human resource to the end that individual, organizational, and societal
objectives are accomplished.”
In any organization, human resource management is very useful to improve and maintain relation between
management and employee, trade union and management. It works as a watch dog on each and every activity
of employees, management, labour union, etc.
Laxmi Diamonds has a very well developed human resource management. Mr.DahyabhaiSonara is very
helpful person. He is MBA in HRD (from UK & USA both) so he has very good knowledge in the field of
human resource. His assistants also very well related with HRD. Mr.Dahyabhai believes that any
organization get success if there is proper co-ordination between its employees and management.
In this topic we discuss about how human resource department doing its activity to develop good relation
between employee and management to get success.

16
2.3.1 STRUCTURE
Chairman

Rough
Diamond
MD checking

CEO

Leaser $ Cleaving
Factory A/C Polish $ General HRD sawing Manager
pro, dispatch Manager Manager Manager
Manager Manager manager
EDP
Manager
Execs SR Purchase
Manager Executive Executive
Maintenanc

DY.MR DY.MR General Sales $

Officer Officer Manager Mktg
HR HR DY.MR Manager

17
2.3.2 PERFORMANCE APPRAISAL:
Meaning:
Performance appraisal is the systematic evaluations of individual with respect his or her performance on the
job & his or her potential for development. Performance appraisal is formal structured system of majoring &
evaluating & employees job relating behaviour & outcomes to discover how & why the employee is
presently performance on the job& how the employee can performance more effectively in the future, so that
the employee, organization & society all profit.

Performance appraisal system:

Effective performance appraisal contributes to improved performance at the individual as well as
organization level. Therefore it is essential to conduct this exercise meaningfully. As powerful tool pa help
us in identifying individual and organization need, strength and weakness, motivating the people and gearing
up the organization towards change and growth.
Salient feature of performance appraisal:
Personnel department after completing personnel data sheet will forward the performance appraisal record
forms to reviewing authority for their respective areas who in turn will distribute them to the assessor of their
area structure for appraisal and review shall be as per following:
ASSESSES ASSESSOR REVIEWING AUTHORITY

Worker Supervisor Manager/HOD

Supervisor Manager HOD/G.M

Manger HOD G.M/ Factory head

G.M. Factory head Factory head

18
 Set the parameter

Taking action Communicate

parameter

Check the results Measurement of

performance

Set the parameters

The parameter is set by proper discuss between experts and production manager. The parameter is decide
with undertaking of average employee not so excellent, not so week. For different post, there are different
parameters which we can take as performance measurement parameter. By checking and evaluating this
parameter we can take decision about performance of employee. For example:
Polishing staff: speed, polishing, clarity
Computer operator: speed of typing and data entry, level ofa correction.

Communicate the parameters

The parameter set by manager is communicated with employee and examiner. If there is any problem with
parameters and need to improve than send back to H R Manager and improve it. Well communicated
parameter is helpful to making performance appraisal process prefect. If the parameter is communicate than
employees can know that how they have to behave.

Measurement of performance
Performance is measured according to the parameters set by specialist. Production manager note down the
data received actually in the form in which the standard is already written. He put the original data in front of
the standard.
Check the result
The data received actually is compare with the standard data. If it is less than standard than the performance
is not good and vice versa.
Taking action
When the result is achieved, the result is needed to communicate with employee. There is meeting between
employee and examiner or H R Manager, he tell the result to employee. If the result is bad, than examiner
give guidelines to improve the performance in positive manner

19
2.3.3 RECRUITMENT:
MEANING:
In simple term, recruitment is understood as process of searching for and obtaining applicants for jobs, from
among whom the right people can be selected. A formal definition of recruitment is:
“It is the process of finding and attracting capable applicant for employment.”
The process begins when new recruit are sought and ends when their applications are submitted. The result is
a pool of applicant from which new employee are selected.
This recruitment policy is pertinent to and applicable to all workmen, staff member officer and managers. A
new project of LAXMI DIAMOND industries is require to meet its manpower strength in time so as to
enable to run plant on target date.
GUIDELINE FOR RECRUITMENT AND APPOINTMENT OF EMPLOYEES:
Recruitment appointment of employee in any category shall be strictly according to the number of post
sanctioned by the management. Any additional requirement over and above the sanctioned strength
(manpower budget) shall be with the specific approval of the president.
Appointment of an employee will normally be in the approved scales of pay/wages, for the post, along with
compensatory allowance and other perquisites admissible for that scale of pay in special circumstance,
president may authorize extra amount by way of “Personal pay” to any individual. Such “personal pay” will
be specific to the individual concerned and will not be taken as a precedent for other appointment. The
function of recruiting staff and workman will be responsibility of the personnel department.
2.3.4 SELECTION:
MEANING:

Selection is the process of picking individual (out of the pool of job applicants) with requisite qualification
and competence to fill jobs in the organization.
A formal definition of selection is:
“It is process of differentiating between applicants in order to identify those with a great likelihood
success in a job.”
SELECTION PROCEDURE:
Application received shall be scrutinized by the personnel department to eliminate those that do not meet the
job specification prima facie thereafter these applications shall be listing of applicants considered suitable for
interview. The list of candidate short-listed for interview will be approved by the concerned vice precedent.
Selection procedures of Laxmi diamond industries step are as follow:
1. INTERVIEW CALL:
The personnel department in consultation with the user department will be fixing the date, time, and venue
for inviting application for an interview.
In case large cluster of short listed candidate is from a location rather than calling them at Surat, the
interview committee may hold interview at such other location with the approval of concerned VP.
Call letter for interview shall be prepared and issued by the personal department clearly mentioning the post
for which the applicant is being called for the interview, the document, certificate etc. which he is required to
bring along, and the traveling expense which will be reimbursed to the applicant for attending for the
interview. The date of interview should be so fixed that candidate called from distant place get reasonable

20
time to travel after receipt of the call letter. Amongst the document asked for the candidate should also be
asked to bring the proof of their present/past employment and the salary drawn.
2. REIMBURSEMENT TO CANDIDATE:
Reimbursement of expenses for the journey under taken by outstation candidate shall be limited to 2nd class
to & for railway or bus fare by the shortest route in case of workman and staff below s-5 level; and 1st class
fare for s-5 and above level called for interview, no other expenditure or incidental charge over and above
the train or bus shall be payable. Outstation candidate who appear at the interview shall be asked to submit a
claim for to and from journey undertaken by them these claim will be scrutinized by the personnel
department and reimbursement made on same day.
3. TEST:
All candidates shall be required to fill up the standard application form before they are considered. Personnel
department will ensure that all columns in the form are duty filled up to before the committee. The
credentials of the candidate will be verified by checking the certificate the produces (only original should be
relied upon especially in regard to age, qualification, experience, salary drawn and references mentioned.
A candidate who has worked in any LAXMI DIAMOND companies shall not be considered unless he
produces a “No Objection Certificate” from that company.
The candidate for position below the level of managers shall be administered written test as per schedule
annexed. For technical post the used department will prepare a test paper to assess candidate technical
knowledge. For other department such as finance/stores/personnel/EDP respective department heads will
prepare similar test paper. The purpose of such as test paper should be to judge the candidate fundamental
concept comprehensive of complex issues and ability to analyze data.
The personnel department will arrange for administration of tests and evaluation of test paper in accordance
with standard answer provide by the person who prepared the test paper.
4. INTERVIEW:
Interview shall be always be conducted by a committee which will comprises member represented personnel
department and user department. The composition of the committee shall be as under:
Each member of the interview committee will make his own assessment of the candidate and then jointly
arrive at a consensus in regard to suitability for appointment in order of merit in the end the committee will
submit a report of candidate recommended in order of merit.
5. FIXING WAGES:
The manager personnel will set the wages/salary package individually with each selection candidate and sign
a memorandum of understanding with the candidate. This memorandum shall give detail of wages/salary
packet settled along with the pay scale, Designation and department. This will be signed by the candidate as
a taken of acceptance of the offer and on behalf of the management by G.M. and concerned VP.
6. APPOINTMENTS:
A candidate who having been selected by the selecting committee signs the memorandum of understanding
will be got medically examined by the company medical officer who will certify his fitness for the job as per
company norms. Therefore the candidate will be given a letter of intent by the personnel department. Letter
of appointment in the regular forms shall be given only when the candidate reports for joining services. The
designated authority delegated with the powers of appointment will sign this letter.
7. SERVICES APPOINTMENT:

21
All technical managerial/staff in grade s-5 and above shall be required to sign an agreement of at least
threeyear service. This agreement in case of technical staff shall be a conditions precedent for appointment.
The management may require other categories also to sign similar agreement.
8. JOINING EXPENSES:
The management may in exceptional cases use its discretion to reimburse joining expenses to a candidate
from his last place of posting to present place of posting.
9. MANAGER & ABOVE:
First class railway fare for self and family; plus actual charge incurred on transportation of household’s
goods and personal belongings subject to a calving of total journey expenses of RS. 8000/-.
10. GRADE S-5 & S-6:
First class railway fare for self and family plus charges for transportation of household good of personal
belonging. Up to a maximum limit of RS. 3000/- Joining expenses where allowed shall be claimed by the
candidate within a period of three month of his joining the company.
11. PRE JOINING ACTIVITIES:
Immediately after a letter of intent to appoint a person is issued the personnel department will take following
action:

• Inform the concerned department head of the selection made and likely date of joining.
• Advice the administration department to make available a suitable accommodation, and necessary
seating arrangement.

12. JOINING FORMALITIES:

On joining the employee has to submit the following document to the human resource department.
Letter of acceptance of employment duly signed by the applicant.

A. Employment form.
B. Birth certificate.
C. Ration card copy.
D. Nationality
E. Passport size photographs.
F. Xerox copies of birth certificate & mark sheet (10th, 12th/ diploma/degree or any other equivalent
diploma or degree have to be obtained from the candidate and to be attested by an executive of H.R.
department after verifying them with the original.
G. Reliving letter from his previous employer will have to be obtained.
H. If newly joined employee is falling under the provision of provident fund and application and
nomination from as per the format must be filled in triplicate. I.Gratuity application and nomination.
J.Postcard size family photograph must be submitted.

22
2.3.5 WELFARE ACTIVITY
Welfare means anything done for intellect physical, moral and economic betterment of the workers, whether
by employers, by government or by other agencies, over and above what is laid down by law, or what is
normally expected on the part of the contracted benefits for which workers may have bargained. Internal
welfare activity
(a)Medical help Laxmi Diamonds have special health officer. This officer runs a clinic named by Laxmi
Clinic” situated in building of Laxmi Diamonds in which the employee of Laxmi Diamonds and his familiar
can get medical facility totally free. If any employee have a serious diseases and need to do operation at that
time if he request for money than MrLaljibhai Patel will help him financially. He tries that the employee will
get well soon by good medical treatment with low money.
(b)Canteen
In Laxmi Diamonds there is no any kind of system to take lunch box from home and eat during the lunch
break. There is big canteen which provides good and healthy food to 1300 employee with no any charge.
The food is prepared from good quality of material. It is pure vegetarian food. Laxmi Diamonds have very
talented and gentle peons. They provide tea and coffee twice in a day.
(c)Insurance “The Surat Diamond Association” has a very good scheme of insurance of the employee of
any diamond industry. In this scheme, the premier is of 250 Rs. per month. When the employee die or
injured in accident at that time the familiar of the employee will get financially help. The every employee of
Laxmi Diamonds is insurance policy holder of The Surat Diamond Association and the premium of the
policy is paid by Laxmi Diamonds.
(d)Financial help
Whenever employees have need of money the owner is always ready to help them. Laxmi Diamonds gives
loan at very low interest for many purposes like marriage, house, etc.

External welfare activity

•Medical clinic
Laxmi Diamonds runs clinic for outside people also. The poor people come to this clinic and get treatment at
very low charge. If the patient is very poor and not able to pay charge than Laxmi Diamonds gives him free
treatment.

•Donation
Laxmi Diamonds also gives donation to many charitable trusts, educational institute, “Anathasharm”,
temple, etc. the owner Mr. Laljibhai Patel believes that “it is our duty to serve the society”. Any trust or
organization can go to get financial help to Mr. Laljibhai Patel without any problem.

•Help to needed people

Many outside people also come to Laxmi Diamonds for get financial help. During our training we see that
there two person comes with the letter of hospital. This person is suffering from kidney disease and need to
transplant the kidney, so he needs 3 lacs. Rs. When he request for money immediately Mr. Laljibhai Patel
give him cheque of Rs. 30,000.

•Uniforms:
Peons, drivers and employees who are deployed in boiling section are provided with 2 set of uniforms and
protective equipment.

23
2.3.6 INCENTIVE & MOTIVATION SYSTEM INCENTIVE:
Incentives are monetary benefit paid to workmen in recognition of their outstanding performance. Company
tries to achieve in goal. So company paying incentive to its employee & motivate them.

2.4 Finance and Accounts

We all are aware that in Economics, the four factor of production considered are Land, Labour, Capital and
Organization. The term “Capital” can also be referred to as “Finance”. It represents the money that is
required to be brought in to finance or fund an activity.
“Finance is regarded as the life blood of a business organization.” The Financial Management study about
the process of procuring of financial resources and its judicious utilization with a view to maximizing the
‘shareholders’ wealth, Efficient management of every business enterprise largely dependent on the efficient
management of his finances.
Financial Profile of Laxmi Diamonds
Company Laxmi Diamonds
Type Partnership firm

Business Manufacturer, Importer and Exporter of diamond

PAN number AACFD 0279 Quality
Status Registered Firm
Method of accounting Mercantile system

Auditors M/S. Rajiv N. Shah & Associates. Mumbai

Total turnover 1284,91,26,858 as on 31-3-2017 *********
Total profit 511,88,00,839 as on 31-3-2017***********

ORGANIZATION STRUCTURE
Finance manager

Chartered account

Assistant manager

Computer and
Data entry operators (5)

24
2.4.1 CAPITAL BUDGETING
The term capital budgeting means planning for capital asset. The capital budgeting decision mans a decision
as to whether or not money should be invested in long term projects. Such projects may include the setting
up of a factory or installing a machinery or certain creating additional capacities to manufacturing a part
which at present may be purchased from outside. It includes a financial analysis of the various proposals
regarding capital expenditure to evaluate their impact on the financial condition of the company for the
proposal to choose the best out of the various alternatives.
2.4.2 COST STRUCTURE
In Laxmi Diamonds cost is very important thing; according to finance manager cost is the secret matter of
the company. They not agree with us to show their cost structure. So here we are unable to present cost
structure.
Here we present basic calculation of cost according to idea given by them. The actual figure will be different
than this.
Estimation of cost of polished diamond per carat is as following:

Classification of Different Cost

Here we can classify the cost of final product of Laxmi Diamonds in three categories.
Raw material consumption Rs. 10180,36,047.00
Manufacturing expenses Rs. 996,82,603.00
Selling and administration exp. Rs. 147,56,790.97

Raw material consumption

Particular Amount Amount

Material Consumed ******** ******

Opening Stock ***** ******

Rough 272144420 ******

Rejection 42555 272186975

Add: Purchase During The Year ****** ******

Local ***** ******

2.4.3 FINANCIAL ANALYSIS:

A tool used by individuals to conduct a quantitative analysis of information in company’s financial
statement. Ratios are calculated from current year numbers and are then compared to previous years, other
companies, the industry, or even the whole economy to judge the performance of the company. Ratios are
calculated so that the strength and weakness of the firm’s historical performance and current financial
condition can be determined. The relationship between two related items of financial statement is known as
ratio. It is mathematically measures the relationship between two figures.

25
Ration analysis is a process of comparing one figure to another and the interpretation of the ratio to know the
strength and weakness of company’s operations and of its financial position.

Sr. 2016 - 2015 - 2014 - 2013 - 2012 -

Ratio Formula
No. 2017 2016 2015 2014 2013
(Gross Profit / Net Sales) 16.04 12.79 13.01 13.88 14.39
1 Gross Profit
*100
(Net Profit / Net Sales) 1.79 1.75 1.73 1.80 1.76
2 Net Profit
*100
{(COGS + Operating 98.20 93.54 90.06 97.76 93.88
3 Operating Expenses) / Net sales}
*100
Stock
4 COGS / Average Stock 4.82 6.39 5.04 4.60 2.7
Turnover
{(Debtors + Bills
5 Debtors Receivables) / Credit 43.98 53.29 46.63 41.43 45.74
Sales} * 365 Days
{(Creditors + Bills
6 Creditors Payables) / Credit 41.32 47.21 48.35 41.22 38.03
Purchase} * 365 Days
Total Asset Net Sales / Net Total
7 1.53 1.56 1.59 1.86 2.39
Turnover Assets
Return on
Capital PBIT / Capital Employed *
8 57 73 68 61 93
Employed 100

Current Assets / Current

9 Current 1.47 1.39 1.65 1.89 1.50
Liabilities
Liquid Assets / Liquid
10 Liquid 8.45 8.86 8.0 5.19 6.48
Liabilities
(Shareholders Fund / Total
11 Proprietary 24.67 27.72 32.71 40.67 30.82
Assets) * 100
Qu ick Quick Assets / Liquid
12
Liabilities
Net Profit before Int. &
Interest
13 Tax / Int. on Long Term
Coverage
Debt * 100
Total Liabilities /
14 Debt-Equity
Shareholders Equity

1. Gross Profit Ratio:

Gross profit ratio is a profitability ratio that shows the relationship between gross profit and total net sales
revenue. It is popular tool to evaluate the operational performance of the business. The ratio is computed by
dividing the gross profit figure by net sales.
Significance:
It indicates the gross margin. There is no standard norm for this comparison. It also indicates available to
cover operation expenses, non-operating expenses, etc. change in gross profit ratio may result from change

26
in selling price cost of sales or a combination of both. A low ratio may indicate favourable purchase and
sales policy. It must be interrupted carefully as valuation of stock also affects its computation. Higher Gross
profit ratio is always a good sign.
Gross Profit Ratio = (Gross Profit / Net Sales) * 100
Calculation: (in Cr.)
Year Gross Profit Net Sales Gross Profit Ratio
2016-17 489.72 3053.21 16.04
2015-16 374.18 2925.13 12.79
2014-15 363.03 2789.6 13.01
2013-14 367.69 2649.07 13.88
2012-13 352.47 2448.5 14.39
Interpretation:
Gross profit is the difference between sale and cost of goods sold. Gross profit margin reflects the efficiency
with which the management produce each unit of output. Gross profit ratio of the year 2016-17 is 16.04%.
As compared to previous four years consistently increase in Gross profit ratio which reflects good overall
profitability of business.

27
 PART II – PROJECT STUDY
A study on the organisational Culture of Laxmi. Pvt.ltd Surat.

INTRODUCTION
Organizational culture includes an organization’s expectations, experiences, philosophy, as well as the
values that guide member behavior, and is expressed in member self-image, inner workings, interactions
with the outside world, and future expectations. Culture is based on shared attitudes, beliefs, customs, and
written and unwritten rules that have been developed over time and are considered valid. According to the
Webster's dictionary, culture is the ideas, customs, skills, arts, etc. of a given people in a given period. Astute
managers have realized that any organization also has its own corporate culture. Moreover, social
anthropologists are now as fascinated by corporate cultures as they once were by headhunting tribes in
Borneo. This indicates the important role of corporate culture. Many researchers have found a positive
relationship between the corporate culture and performance. Stewart (2007) mentioned that profitability is
any organizational goal. One of the best places to start improvements is with an examination of the
organization's work culture. He states that the strongest component of the work culture is the beliefs and
attitudes of the employees. It is the people who make up the culture, he stated. For example, if these cultural
norms contain beliefs such as, "Around here, nobody dares make waves" or, "Do just enough to get by and
people will leave you alone," the organization's performance will reflect those beliefs. Moreover, if the
cultural belief system contains positive approaches, such as, "Winners are rewarded here" or, "People really
care if you do a good job in this outfit," that also will be reflected in the organization's performance.

OVERVIEW OF THE PROJECT

REVIEW OF RELATED LITERATURE
(Kaplan & Norton, 2001) have argued that many organizations nowadays focus on managing intangible
assets (for example, customer relationships, innovative products and services, high-quality and responsive
operating processes), which are non-financial in nature, rather than managing tangible assets (such as fixed
assets and inventory), which are financial in nature. Therefore, the changing nature of value creation
complicates the performance measurement process when the performance measurement systems are not kept
abreast with this latest phenomenon.

(Ghalayini & Noble, 1996) highlighted that traditional performance measures are outdated and lagging
metrics that are a result of past decision, not related to corporate strategy, not relevant to practice and
difficult to understand by the factory shop-floor people, conflict with continuous improvement, inability to
meet customer requirements, and emphasis too much on cost reduction efforts.

(Hofstede, 1980) According to him, organizational culture refers to the collective programming of the mind
that distinguishes the members of one organization from another. This includes shared beliefs, values and
practice that distinguish one organization from another. The beginning of formal writing in an organizational
culture started with Pettigrew (1979). He introduced the anthropologist concepts like “symbolism, myths,”
and “rituals” that could be used in organizational analysis.

(Azhar, 2003) organizational culture is the combination of important assumptions that are shared in common
by each members of an organization and are often unstated. Organizational culture is basically made up by
two major common assumptions: values and beliefs. Values are the assumptions that have been forwarded
by the leaders of the organization and considered to be ideals that are desired by all the members of an
organization. Beliefs on the other hand are the assumptions about the reality and created by experience.

28
(Schein, 2004) as a pattern of shared assumptions that have been accepted by a group of individuals as they
solve their problems. Because they have used these assumptions to solve their problems and it worked
effectively they accepted these assumptions as valid and thus they teach these assumptions to the newly
joined members of the organization as standard ways of thinking, perceiving and approaching towards the
problems. Organizational culture is a phenomenon that is shared by the members of an organization and
operates unconsciously.

(Cameron & Quinn, 1999) suggest organizational culture refers to the taken-for-granted values the
underlying assumptions, expectations, collective memories, and definitions present in the organization. It
represents how things are around here. It reflects the prevailing ideology that people carry inside their heads.
It conveys a sense of identity and provides unspoken guidelines for how to get along and enhances the
stability of the social system to which they belong.

(Broadfoot&Falkus, 2000) conducted a comprehensive review of 18 survey measures of organizational

culture based on a variety of 11 methods. Each method came from a stream of specific research and
identified specific factors of culture in a manner that supported those lines of research. The Denison
organizational culture model proposed for this dissertation research used a similar process which examined
the relationship between organizational culture and organizational performance. This process developed an
approach to understanding organizational culture that helped to explain differences in performance and
effectiveness.
OBJECTIVES
• To study the organisational culture of Laxmi Diamonds.
• To study the factors affecting organisational culture of Laxmi Diamonds.
HYPOTHESIS
H0: There is no significant association between Rewards and organizational culture. H1:
There is significant association between Rewards and organizational culture

RESEARCH METHODOLOGY

Type of research: Descriptive

Sources of data:
a) Secondary data: - The secondary data on the topic was collected from the related researches, research
reports, journals, books, and internet.
b) Primary data: - The primary data was collected by the use of the structured questionnaire having both
open and close ended questions. The questionnaire was personally administered to the respondents.
Data collection method: Survey using Questionnaire
Sampling plan:
- Sampling Frame: Employees and Workers of Laxmi Diamonds Surat.
- Sampling Size: 300
- Sampling Method: Simple Random sampling
- Sampling Area: Laxmi Diamonds Surat
- Data Analysis: SPSS, excel

29
RESEARCH MODEL

- • Opportunities for Growth

- • Feedback
- • Work/Life Balance;
Stress- and Work Pace
- • Teamwork
Organisational Culture
• Conflict resolution
• Leadership
• Rewards
• Communication
• Safety

DATA ANALYSIS AND INTERPRETATION

1. Reliability Analysis

Cronbach’s Alpha value is 0.679

2. Chi-Square Test (between Education and Opportunities for Growth)

Question Df P-value Remarks

Opportunities for 6 0.000 Ho Rejected
professional growth
Training to perform job 6 0.000 Ho Rejected
Professional development 8 0.001 Ho Rejected
Learning from mistakes 6 0.000 Ho Rejected
30
Question 7

Question 8

Question 9

Question 10

31
Interpretation:
For the test performed to check weather there is any and relationship between education and opportunities
for growth the results shows that there is relationship between education and opportunities for growth.
Opportunities for professional growth, training to perform job, professional development and learning from
mistakes all this are having value less than 0.05 and hence I reject my null hypothesis.

3. Chi-square Test

Question Df P-value Remarks

Balance between work and personal life. 2 0.179 Ho Accepted
Able to satisfy job and personal responsibilities 2 0.97 Ho Accepted
Pace of work 2 0.91 Ho Accepted
Amount of work is reasonable 4 0.008 Ho Rejected

For the test performed to check weather there is any and relationship between income and work life balance
the results shows that there is no significant relation between income and work life balance. All the variables
are having value more than 0.05 except one case. Hence there is no significant relationship between work
life and income.

LEARNING
 From the above research I learn the organizational culture of Laxmi diamonds.
 There are various factors and variables which affects the orgazational culture of Laxmi diamonds.
 From the research I learn those factors and how they have the relation with orgazational culture.
 For the test performed to check weather there is any and relationship between education and
opportunities for growth the results shows that there is relationship between education and
opportunities for growth.
 For the test performed to check weather there is any and relationship between income and work life
balance the results shows that there is no significant relation between income and work life balance.

32
REFERENCES
• https://hbr.org/topic/organizational-culture
• https://www.managementstudyguide.com/organization-culture-articles.htm
• https://hbswk.hbs.edu/Pages/browse.aspx?HBSTopic=Organizational%20Culture
• https://www.fuseworkforce.com/blog/5-articles-on-corporate-culture-you-need-to-read-today
• https://www.forbes.com/sites/forbesnonprofitcouncil/2017/06/06/why-organizational-culture-is-
themostpowerful-practical-tool-for-impact-and-what-to-do-about-it/#442ee6c72907
• https://ssir.org/articles/entry/how_leaders_can_strengthen_their_organizational_culture
• https://www.sciencedirect.com/science/article/pii/S1877042813039347
• https://www.researchgate.net/publication/234838292_Organizational_Culture
• http://ijbssnet.com/journals/Vol._1_No._3_December_2010/4.pdf
• https://www.omicsonline.org/open-access/organizational-culture-and-organizational-
performance21626359-1000442.pdf
• https://www.omicsonline.org/open-access/organizational-culture-and-organizational-
performance2162-6359-1000442.pdf
• https://globaljournals.org/GJMBR_Volume14/4-The-Impact-of-Organizational-Culture.pdf

33