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ORGANIZATION STRUCTURE TRAINING

AT
ELGI ULTRA INDUSTRIES LTD, COIMBATORE

A Report submitted in partial fulfillment of the requirements for the degree of


Master of Business Administration

By

PRAGADEESH V S

REGISTRATION NUMBER
1728117

Under the Guidance of


PROF. ARTI ARUN KUMAR

Institute of Management
Christ University, Bangalore
JUNE 2017
ORGANIZATION STRUCTURE TRAINING
AT
ELGI ULTRA INDUSTRIES LTD, COIMBATORE

A Report submitted in partial fulfillment of the requirements for the degree of


Masters in Business Administration

By

PRAGADEESH V S

REGISTER NUMBER
1728117

Under the Guidance of

PROF. ARTI ARUN KUMAR

Institute of Management
Christ University, Bangalore

JUNE 2017
Declaration

I hereby declare that the Organization Structure Training report on ELGI ULTRA INDUSTRIES
LTD, Coimbatore has been undertaken by me for the award of Master of Business Administration
degree. I have completed this study under the guidance of Prof. Arti Arun Kumar.

I also declare that this Organization Structure Training Report has not been submitted for the award
of any Degree, Diploma, Associate ship, Fellowship or any other title, in Christ University or in
any other university.

Place: Bengaluru
Date: Pragadeesh V S
1728117
Certificate

This is to certify that the Organization Structure Training report submitted by Pragadeesh V S
is a record of work done by her during the academic year 2017-18 under my guidance and
supervision in partial fulfillment of the requirements of Master of Business Administration degree.

Place: Bengaluru
Date: Prof. Arti Arun Kumar
Institute of Management
Christ University
Bengaluru
Certificate by Corporate in Letterhead
Acknowledgement

I am indebted to all the people who have helped me in completing the Organization Structure
Training successfully.

Firstly, I would like to thank the Vice Chancellor Dr. Fr Thomas C Mathew, Christ
University for giving me the opportunity to do my project.

Secondly, I would like to thank Dr. Suniti Phadke, Dean, Prof. Sudhindra S, Associate
Dean, Prof. Shrikanth Rao, Head of the Department, Institute of Management, Christ University
for their kind support.

I would also like to take this opportunity to thank Prof. Arthi Arun Kumar for her support
and guidance during my training.

I would like to express my sincere thanks to my corporate mentor, Mr Senthil, Assistant


General Manager, ELGI ULTRA INDUSTRIES Ltd., for giving me an opportunity to work under
his guidance and successfully complete my training.

Lastly, I thank my parents for their blessings and constant support, without which this
training would not have seen the light of day.

Pragadeesh V S
1728117
Chapter Page
TABLE OF CONTENTS
No. No.
1 INTRODUCTION TO ORGANIZATION 8

2 ORGANIZATION STRUCTURE 12

3 FUNCTIONAL DEPARMENTS 14

4 SWOT ANALYSIS 22
FUNCTIONAL HIGHLIGHTS AND PRODUCT
5
DEVELOPMENT 25
FINDINGS, RECOMMENDATIONS AND
6
CONCLUSIONS 30
CHAPTER 1

INTRODUCTION TO
ORGANIZATION
History of the Organization
ELGI is a leading manufacturing company of various products starting from Wet grinders
to air compressors. They are mainly divided into different sectors as Elgi equipments, Elgi ultra
industries ltd, Elgi polytex, Elgi rubbers etc… The company’s total turnover is more than 5000
crores (approx.) together.

ELGI Equipment Limited is a leading air compressor manufacturer with a broad line of
innovative and technologically superior compressed air systems. ELGI has earned worldwide
distinction for designing sustainable solutions that help companies achieve their productivity goals
and keep the cost of ownership low.

ELGI offers a complete range of compressed air solutions from oil-lubricated and oil-free
rotary screw compressors, oil-lubricated and oil-free reciprocating compressors and centrifugal
compressors, to dryers, filters and downstream accessories.

The company’s portfolio of over 400 products has found wide application across industries.
Whether it is the paint on your wall, the car you drive, the medicines you take or the leather bag
you carry, ELGI products have been used either in their production, maintenance or usage.

Profile of the Products


ELGI is a leading manufacturing company of various products starting from Wet grinders
to air compressors. They are mainly divided into different sectors as Elgi equipment, Elgi ultra
industries ltd, Elgi polytex, Elgi rubbers, Elgi horns etc..

They lead the market in all scenarios. ELGI Ultra manufactures products only which are
of premium quality intended to reach premium sector of the society. It offers a very well equalized
mixture of Quality and innovation with perfect design.
The main products manufactured by ELGI group are

 Wet grinders
 Mixer grinders
 Pressure cookers
 Air compressors
 Rotary Screw compressors
 Spindle tapes
 Flat belts
 Wipers – Electronic & Pneumatic
 Horns – Elgi Horns

Vision and Objectives of the Organization


The company’s Vision is the purpose that penetrates the length, width and depth of the
organization. This gives forth the seven core values, each having its own hue and meaning, but
together creating the powerful and vibrant spectrum. These values are nothing but the beliefs which
is lived day in and day out to create a beautiful world within and outside of ELGi. A transparent
and stable organization allows the vision to penetrate at all levels with the same intensity and
clarity, ensuring that every value is followed and lived by everyone, with awareness and pride.

ELGI’s Vision
“Always be the choice everywhere.”
Values
 COLLABORATION: Collaborating with each other will lead to greater synergy and
higher efficiency
 COST PRUDENCE: Being judicious in the way we manage our costs will give us a
competitive edge and make us resilient
 INNOVATION: A culture of innovation will energize the organization and enable us to
stay ahead of competition
 INTEGRITY: Integrity in everything we do will earn the trust of all stakeholders
 QUALITY: Delivering consistent quality will earn stakeholder trust. The opportunities
could be in terms of employment, investment, partnership or societal empathy.
 SENSITIVITY: Giving stakeholders what they need even before they ask will build
lasting relationships

Whether it’s in the partnerships that the company forges or the products that the company
designs, the company takes pride in building long-term relationships with its stakeholders and
making long-lasting impact in its businesses. ELGi is today known for the reliability of its
products, superior technology, manufacturing capabilities and values that stem from our core
belief of making long-term investments and commitments.

The company is an ISO 9001:2008 company that has employed best-in-class practices and
set up advanced capabilities to manufacture products to meet international standards. The company
strongly believes in adopting good business processes and practices, and strives for continuous
improvement to provide best returns to its stakeholders. The company’s customers and partners
choose them because of the company’s strong reputation for quality, service, tradition
of reliability.
CHAPTER 2

ORGANIZATIONAL STRUCTURE
ORGANIZATIONAL CHART

CHIEF EXECUTIVE

EXECUTIVE ASST

MANAGER MANAGER -HR MANAGER - MANAGER MANAGER


PR&ADMIN FINANCE OPERATIONS HSE

MANAGER
HR
ACCOUNTS ENGINEER- HSE
EXECUTIVE
PR & ADMIN HR
ASSISTANT COORDINATOR
S
HSE OFFICERS
ACCOUNTANT
ADMIN ADMIN HR
MANDOURS ASSISTANT ASSISTANT

PROPOSAL
TEAM
AGENCY
CORDINATOR
IT HEAD
DOCUMENT
CONTROLLER
CHAPTER 3

FUNCTIONAL DEPARMENTS
FUNCTIONAL DEPARMENTS
FUNCTIONS OF VARIOUS DEPARTMENTS

1. PURCHASE DEPARTMENT

The head of Purchase Department of ELGI unit is purchase. Purchase Department is


responsible for all the purchase related to the factory Supervisors which is included raw materials,
machine parts and new machines.

Purchase system starts from the intent in the prescribed format given by respective
department according to their requirement. As per ISO supplier of raw materials is authorized
clients. Purchase department is responsible for timely supply of items required in a factory. It will
find new clients, raw materials, and new market, comparative study of price and quality and present
marketing scenario.

Raw materials are purchases at right time at right quantity from the right suppliers. It is
also responsible for inventory control system..

2. PRODUCTION DEPARTMENT

It is the function which plans directs and controls the materials supply and processing
activities of a business. So that required products are produced by specified methods to meet and
approved sales program using the available resource to the best advantages. It co-ordinates supply
and movement of material and labor.

3. MARKETING DEPARTMENT

As ELGI is a manufacturing company who works for their industrial clients, they only aim
at satisfying their clients and they are not responsible for marketing their product.

4. HUMAN RESOURCE DEPARTMENT

This department is mainly responsible for personnel functions of the company for resulting
in timely action for maintaining smooth industrial relations leading to employee’s morale and
productivity.
HRD MEASURES

ELGI strongly believe in having fun at work. At frequent intervals, they organize events aimed at
helping employees engage with one another beyond the scope of their daily work. Along with this,
they also use multiple channels such as internal social network and company newsletter to keep
the employees updated and also to get their views.

Production Line followed in manufacturing of Wet grinders


The company follows strict rules according to 5S methodology. The manufacturing of wet grinders
are divided into two divisions

 Motor Division
 Grinder Manufacturing & Assembling

Motor & Stator Division:

First of all, the stator winding process starts from slot installation and ends at stator finishing cell.
The process takes place perfectly with a time limit of 90 seconds. The quality of both
manufacturing products and the machine are maintained perfectly. Workers use safety measures
and this unit follows 5s audit program. And most of the process is automated.
In stator division, the rotor and shaft are first pressed and then machined and bearing press
is followed and then the outer cover for the rotor-stator is provided. After that Cir-clip assembling
is done. After full assembly, there is a full body inspection done for each and every manufactured
product. Then the quality control team checks for the final time and it is dispatched to the grinder
assembly line. This production line also follows 5S process.

Grinder Manufacturing & Assembling:

The grinder division is again into two different assembly lines for manufacturing more
number of products in a limited amount of time. The total time cycle taken for a finished product
to reach the dispatch section is 88 seconds for grinder division.

In assembly line, the ball bearing and the driven pulley is pressed under machined process.
Then the base frame for the grinder is tightened to the ball bearing and pulley tightening is done.
Then the base frame is fitted to the motor with the belt and it is tightened. The shell switch is fixed
to the frame of the grinder. The wiring and the power connection is given and then comes the arm
channel and the shell assembly for the grinder. It is all assembled into the base frame for forming
a semi-finished product. Then the drum roller holder assembly is fitted to the shell assembly
holding the arm channel, then drum runout checking is completed and final inspection is done for
any damage in manufacturing.

Once the first check is completed , then it is sent to the quality control team for final QA
clearance. After clearing the QA, the packed grinder is sent to dispatch.
Functions of HRD
The company has a separate wing for Human resources. This wing operates in its own way
directly reporting to the General Manager of that division. The major functions of HR department
are

 Recruitment process
 Training
 Payroll
 Welfare activities
 Safety measures
 Attendance maintenance

Employee Policy
A new employee to the company is added through the recruitment process done by the HR
department. The joining kit for a new employee of ELGI is Educational certificates verification,
Job offer letter, Experience letter. After the proper verification the HR department will introduce
the new employee to the concerned department about his/her joining.

Payroll
The HR team also plays major role in payroll area. The payroll consist of Salary packages of
different employees starting from worker level to managerial level, then attendance maintenance
of each and every employee using biometric attendance system. And also ensuring the employee’s
in and out details and their discipline maintained inside the company.

Welfare Activities
The HR department also arranges the welfare activities for the company’s employees. The various
welfare activities held by the HR department are
 Transport activity for the employee to reach the office
 Canteen ( Subsidized amount )
 Uniform and safety shoes for the workers
 Tour ( Yearly once )
 First Aid Training
 Fire Fighting Training
 Communication skills training

Safety Measures
 Industry shoes
 Fire Extinguishers
 First aid Kit

Employee’s Performance Appraisal


The head of the concerned department will refer to the HR team about the performance of
the employee. There is an appraisal form with which each and every employee of the company is
marked. It will be given to the head of the department and the head will fill the form by considering
the performance of the employee.

Manpower Planning
HR department handles the most valuable yet vulnerable resource of the company i.e. the
employees. It is concerned totally with maintaining the harmony within employees, friction free
employees and employer relation, keep the morale high, reduce all causes of employee fatigue or
failure, take care of accidents and safety, keep a striking balance between satisfying the employee
Land profit sharing etc..
Recruitment and Selection

For workers
 Application
 Paper advertisement
 Campus Interview
 Manpower agencies
 Walk in interview in various towns

For staff members and executives


Manpower requisition form is given from department head to HR. The following details are given
in the manpower requisition form
 Post
 Expected qualifications
 Field of work
 Languages known
 Special skills
 Salary expected

Department head must justify the requirement of man power, whether it is for replacement (or)
Creation of new post. Then the recruitment can be done through
 Campus interview
 Paper advertisement
 Manpower agency
 Online advertisement
Then the interview process can be done as follows

Call for interview

Written test

Psychometric test

Group discussion

Direct interview with HR (or)


HOD based on the position

call letter

After negotiation joining


process will be done

Appointment order

After joining in company, the person have detailed session on under which person he will work
and roles and responsibilities of the post. Then the person must attend induction training program
me for 1 week. In that meeting the person must meet overall responsible persons in each and every
department of the company. Then he must submit induction training report based on his
observation.
CHAPTER 4

SWOT ANALYSIS
SWOT ANALYSIS OF ELGI ULTRA INSUDTRIES
LTD

SWOT ANALYSIS

SWOT Analysis is a study undertaken by an organization to identify its internal strengths


and weaknesses, as well as its external opportunities and threats.

HELPFUL HARMFUL

INTERNAL STRENGTH WEAKNESS

EXTERNAL OPPORTUNITY THREAT

SWOT analysis is to know the area at which the company excels its competitors, the
environmental elements that could cause trouble or pose threat for company, how the company
tackles its weakness and utilize its favorable factors to tap the potential market in order to meet
balance in demand and supply.

STRENGTHS

 ELGI has made a global presence in around seven countries and has a huge employee
base of around 20000 personnel.
 Quality Products following Six Sigma TQM
 Premium Brand Image
 Substantial investments in R&D have enabled it to deliver high quality customized
products to its customers.
 Holds a huge number of copyrights.
 The inspection and assembly team consist of top notch personnel.
 ELGI consist of highly skilled and proficient workforce.
WEAKNESS

Weakness refers to the drawback which the company faces during its day to day operations.

 The cost of the product is very expensive than their competitors


 ELGI focuses into Premium ultra-class people in the society.
 The company fails in capturing the low key consumers.
 Typical bureaucratic hurdles exist in the smooth conduct and working of the company.

OPPORTUNITIES

 Innovative designs
 ELGI products are up-to-date with the current technology.
 New products approvals.
 Establishment of green (eco-friendly) motor factories.
 Global acquisition and buyouts to fortify existing businesses.
 Significant investment in emerging economies.

THREATS

 Stiff competition from the local competitors of emerging market.


 Rapid technological changes.
 Strict government policies and stringent regulations.
 Fluctuating currencies and economic recessions can affect global businesses severely
CHAPTER 5

FUNCTIONAL HIGHLIGHTS &


PRODUCTS DEVELOPMENT
System followed for Purchase of Materials
The company’s main division will give an annual production plan of different models and
the respective numbers to be manufactured for the following year. According to the demand
obtained from both the marketing and the production line, the purchase department will procure
the required products.

There is a MARKETING BUSINESS PLAN PER ANNUM created by the marketing team.
Depending on that business plan, Production planning control is brought in with the help of Cross
functional team. The system will evaluate itself according to the marketing plan and come up with
PPC. From PPC, we can easily get the Requirement List for various models to be manufactured.
Then the suppliers are chosen according to the standard ISO rules.

The purchase order is placed. The PO is sent to all the vendors with a deadline fixed. The
supplier with least quote will be offered the deal. The materials are supplied to the stores within
the mentioned dates. Rejection of damaged and QC non approved materials are again sent back to
the vendor.

A “3 day plan” will be confirmed by the start of a week and each and every day of that 3
day plan, meetings are held to check whether the target is achieved properly without any delay.

SYSTEM OF ACCOUNTING FOLLOWED:

Basis of Accounting
The financial statements of the Company have been prepared under the historical cost
convention, unless otherwise indicated

Revenue Recognition
Revenue is recognized on invoiced sale of goods
Property, Plant and Equipment
Property, Plant and equipment are stated at cost less accumulated depreciation and
less any impairment losses. Depreciation is provided on the straight line method to write off
each asset over its estimated useful life. The principal rates used are as follows:
 Furniture and Fittings - 10%
 Loose tools - 10%
 Motor Vehicles - 20%
 Office Equipment - 10%
 Plant and Machinery - 10%
 Renovation - 10%

Inventories
Inventories comprising raw materials, work- in- progress and finished goods are
stated at the lower of cost and net realizable value.
Cost is determined on a First- in- First- Out basis. Cost of finished goods and work-
in- progress includes the cost of raw materials, direct labour and an appropriate proportion of
production and other overheads.

Product Promotional Measures


ELGI ULTRA is a premium brand focusing only to the premium class of society. Elgi Ultra
is not into number games because they aim only on new innovation with increased quality with
latest technology serving the premium set of customers. So the product promotional measures of
these are very much limited to certain level.
The major promotional measures followed by the marketing team of this organization are

 Newspaper Advertisement
 Commercial Tv Advertisement
 Exhibitions
 Dealer meets
 Brochures
 Pamphlets
 Magazines

The other product promotional measures taken with the help of digitalized marketing are

 Social media promotions via Facebook, Twitter, Youtube & Whatsapp


 On call marketing with the customer via Internet.
 In house presentations with customers.

Significant Factors for Success


 Innovative and spends more time and investments on research and development
 The company keeps upgrading the product everyday with new useful features to the
consumers.
 Being a quality product and not in the number game, it looks at all the aspects of quality
with no compromise.
 Long lasting product with good service support and after market strategies
 Giving doorstep service to the customers.
 Producing and manufacturing quality rich products results in more longevity of the finished
goods with no complaints after sales.
 It focusses only the customers who look for quality blended with innovation and
technology thereby achieving more number of sales.

Advantages of Organization Structure


 A good organizational structure facilitates attainment of objectives through proper
coordination of all activities.
 It eliminates overlapping and duplication of work.
 It decreases likelihood of “runarounds”
 It facilitates promotions of personnel.
 It aids in wage and salary administration.
 Communication is easier at all levels of organizational hierarchy.
 A well-structured organization provides a sound basis for effective planning.

Disadvantages of Organization Structure


 Hinders freedom
 Ignorance of Organizational Objectives
 Restricts most of the individuals performance
 Difficulty in Interdepartmental Coordination
 Conflict of Interest
CHAPTER 6

FINDINGS, RECOMMENDATIONS
AND CONCLUSIONS
6.1 FINDINGS
ELGI ULTRA INDUSTRIES LTD was mainly established to engage efficiently,
responsibly and profitably in the manufacturing sectors specifically in make of innovative,
quality, techno-advanced products. It is successful in making profits continuously for long years
and keeps its employees highly motivated. The infrastructure is one of the best in class in the
country. The HR policies and skill development initiatives in the company needs to be
commended.

Employee orientation of the organization is very much visible across the company. The
Corporate Social Responsibilities programs in terms of adopting villages, consideration towards
environment, protection are well run. Its commitment towards all stakeholders like share-holders,
customers, employees and society is explicitly expressed in all activities.

6.2 CONCLUSION
My internship of 4 weeks in ELGI ULTRA INDUSTRIES LTD has given me an
oversight of organizational structure, functioning of various departments, interaction between
them, policies and processes of a manufacturing and engineering industry. It also gave me an
insight of employee and management relations, customer focus, importance of quality, safety and
environmental friendly atmosphere.

This internship has instilled confidence in me of understanding of an organization at an


overall level.