Chapter I Introduction: Employee Peception - Heritage Foods

EMPLOYEE PECEPTION _ HERITAGE FOODS
CHAPTER I INTRODUCTION
INTRODUCTION
Employee perception is a process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment. Perception is not necessarily
based on reality, but is merely a perspective from a particular individual‟s view of a situation.
In dealing with the concept of organizational behavior, perception becomes important
because „people‟s behavior is based on their perception of what reality is, not on reality
itself; the world as it is perceived is the world that is behaviorally important. Human nature
can be very simple, yet very complex too. An understanding and appreciation of this is no
pre-requisite to effective employee perception in the workplace and therefore effective
management and leadership. there is a known fact that without perception , nothing can be
done in an organization and for doing any task we need a perception which is accepted by all
the employees in an organization. It is the key for the manager to make her team work and
get the better output for the organization. The perception helps each and every individual in
the organization to carry the things in different ways as the organization needs different
perceptions to make successful results
Perceptions differ with respect to individuals and cultural differences. In today’s times,
organizations are a mix of people representing diverse cultures. Therefore, at times there
could be some perceptual errors and though it may not have any immediate effects; in the
long run it can prove detrimental The research work of German Psychologist Helmholtz in
the year 1868 can be considered at the oldest work on human perception. The research work
in this area signifies the role of perception in human behavior. Perception is one of the most
important cognitive behaviors of the human beings. Perception is fundamentally a
psychogenic process. It is the primary instrument using which individuals discern about their
proximate environment. Role perception is a process by which individuals pick up, co-
ordinate and translate the sensory stimulus into significant information relating to their work
environment. Perception lies at the base of every human activity.
Role perception is another dimension and a key factor at the job front. Employees with an
optimistic perception of their role and the workplace are less likely to indulge in perverted
activities. Studies denote that personality acts as restraining factor: workplace perversion is
more likely to be condoned with regard to an individual when the workplace perception is
negative and also the conscientiousness and emotional stability is low (Colbert, Mount,
Harter, Witt, & Barrick, 2004)1 . According to Stephen Robbins, “Perception can be defined
as a process by which individuals organize and interpret their sensory impressions in order to
give meaning to their environment”
Changing an employee's perception of his place within a company is sometimes an effective

way of improving organizational behavior constructively. Employees who perceive that they
have a greater control over their work lives will likely be more motivated to excel within the
organizational structure.
Social Perception
Social perception, or the way one individual views others, affects behavior within an
organization. Management expert Joseph Champoux writes in his book "Organizational
Behavior" that an individual's social perception can be described in terms of a "target," or
what is being perceived, and a "stimulus threshold," a certain level of information that must
be received in order to make a perceptive assumption on an individual, work process or any
other target. Wrongful social perceptions, such as fundamental attribution error that arises
when one person mistakes another person's characteristics as the cause of a negative event,
can lead to problems in organizational behavior.
Perceptions Affecting Motivation
A worker's social perception of others within the organization can affect his motivation to
complete work effectively to a large degree. Motivation within an organization remains high
if a worker perceives that there are opportunities for personal development or professional
advancement, if he feels capable of completing tasks correctly and is involved with various
organizational decision-making and goal-setting processes. Motivation can be reduced if the
worker perceives a lack of opportunity for growth, a lack of involvement or a lack of
opportunities to demonstrate any creativity. This holds true in volunteer organizations as
well, as described in Miami University's student leadership material, "Why Volunteers/Group
Members Lose Interest."
Why is perception important in the workplace?
Behaviour in the workplace is based on people’s perception of the workplace. There are
many factors that influence how something is perceived. Factors pertaining to the perceiver
can involve the person’s attitudes, motives, interests, experience and expectations. Contextual
factors can involve time, work setting and social setting. Finally, factors related to the actual
target can involve novelty, motion, sounds, size, background and proximity.
But what does perception have to do with employment?
Well, there are various ways that a person can perceive a situation in the work environment
that can lead to problems. For example, the following can occur among employees in the
workplace on a daily basis:
 Fundamental attribution error: The tendency to underestimate the influence of

external factors and overestimate the influence of internal factors when making
judgments about the behaviour of others
 Self-serving bias: The tendency to attribute one’s own successes to internal
factors and blame one’s own failures on external factors
 Selective perception: The tendency to selectively interpret what is seen based on
one’s interests, background, experience and attitudes
 Projection: The tendency to attribute one’s own characteristics to other people
 Stereotyping: The tendency to judge someone on the basis of the perception of a
group to which that person belongs
 Halo effect: The tendency to draw a general impression about an individual based
on a single characteristic
PERCEPTUAL PROCESS
The process of perception is a process by which an individual selects, organizes, interprets,

retrieves, and responds to information. An individual gathers the perceptual information
through; Feeling Hearing Seeing Smelling Tasting The environmental stimuli in the form of
inputs are first received and then those are processed by the perceiver and the consequential
output turns out to be the base for behavior. The different stages of the perceptual process are
as below:
• Information attention and Selection
• Information Organization
• Interpretation of Information
• Retrieval of Information
Information attention and Selection In this stage, the information is screened and only a
portion of the entire gamut of information is given access to. This could be termed as
Selective Screening. The Selective screening is either a controlled one or one that happens
without the knowledge of the perceiver.
Information Organization The cognitive scaffolds that characterize organized information

about a concept developed through experience.
Interpretation of Information The information is interpreted by the perceiver depending on

the stimuli and also on the perceiver’s state of mind. People may interpret the same group of
stimuli differently at different situations.
Retrieval of Information The information attention and selection, organization and

interpretation are a part of the human memory. The stored information needs to be retrieved
so as to be used. The different variables of the perceptual process are as below:
Inputs: The inputs for perception could be the objects, experiences, people etc. that are the
stimuli to the perceiver
Processing: The received inputs/stimuli are put into processing through Selection,
Organization and Interpretation.
Outputs: An output is drawn from the processing mechanism. These outputs could be
emotions, actions etc.
Employee's perception can affect organizational productivity positively when they are
willing and committed to organizational goals. ... When employee's perceptions are
considered, staff absenteeism is reduced, there's greater organizational commitment,
improved performance, reduced turnover and greater job satisfaction.
In employee relations, perception is a major factor. Most of the times, it is formed by

organizational roles, styles of leadership, styles of communication at the workplace etc. and
so it is very important that the organization be able to form the correct perception in the
minds of its employees. Thus, a proper and effective supervision is required to prevent
employees from having a wrong understanding.
FACTORS INFLUENCING PERCEPTION
Factors in the perceiver
 Motives
 Attitudes
 Interests
 Experience
 expectations
Factors in the situation
 Time
Perception
 Work setting
 Social setting
Factors in the target
 Novelty
 Motion sounds size
 Background
 Proximity
 Similarity

WAYS TO IMPROVE EMPLOYEE PERCEPTION
Six Ways to Improve the Perception of HR
1. Provide Leadership. Perhaps no role of HR is more important than to serve as a leader

within an organization. ...
2. Initiate Employee Development. ...
3. Engage Employees. ...
4. Encourage Diversity. ...
5. Contribute to Organizational Profit (Performance) ...
6. Consider Outsourcing.
EMPLOYEE ENGAGEMENT STARTS WITH EMPLOYEE PERCEPTION
On the surface, it’s obvious that perception influences us at work. If you believe your boss to
be a jerk, you’re obviously not going to like your job very much. But it actually goes a lot
deeper than that. Employee engagement is shaped by their perception of managers, other
employees, and even the brand itself. An employee’s perception of management is further
influenced by their position and their involvement in decision-making.
Employees become more or less engaged depending on how much they believe in the
company’s priorities. But it’s who sets these priorities that actually determines engagement.
If employees believe that they are responsible for the priorities without employee
involvement, engagement is reduced.
Employees are more likely to fulfill job tasks that they voluntarily committed to. They are
less likely to fulfill commitments that were assigned by they.
Empowerment efforts are often in vain, as employee involvement is not always at a level that
has meaningful influence on company objectives and strategies. Oddly enough, employers
still believed they were empowering their employees, even when the employees felt that they
had little influence over decision-making.
Empowerment efforts that are more closely aligned with an employee’s workgroup or level
have a better chance of increasing engagement. This is because the employee perceives the
work as being more meaningful and their decisions as more influential, which also decreases
the perception that they make all the decisions.
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE
1. To understand the employee perception with regard to various organizational aspects
of Heritage Food Private Ltd.
SECONDARY OBJECTIVE:
1. To know the level of employee satisfaction based on their perception.
2. To learn what the employees perceive about the management.
3. To know about the interpersonal relationship among the workers.
4. To identify various other factors influencing employee perception.
RESEARCH METHODOLOGY
RESEARCH DESIGN
This study was designed to perform a descriptive analysis of the employee perception
in Heritage Foods Private Limited.
4.2 TYPES OF DATA COLLECTED
 Primary Data
The primary data was collected from the questionnaire .It had questions of both
multiple choice and closed ended type.
 Secondary Data
Secondary data was collected from the internet, books, journals, and company
records.
4.3 QUESTIONNAIRE CONSTRUCTION
A comprehensive questionnaire covering all aspects of the organizational function

was drawn and used in this study. The questionnaire comprised multiple choices and closed
ended questions.
Questionnaires were constructed based on the following types
 Closed ended questions

 Multiple choice questions
DEFINING THE POPULATION
The population can be finite or infinite. The population is said to be finite if the
elements can be counted and infinite if the population size cannot be calculated.
SAMPLING PLAN
A sampling plan is a definite design for obtaining a sample from the sampling frame.
It refers to the technique or the procedure the researcher would adopt in selecting some
sampling units from which inferences about the population is drawn. Sampling design is
determined before any data are collected.
Simple random sampling technique was adopted. In this method the researcher selects
those units of the population in the sample, which appear convenient to him or to the
management of the organization where he is conducting the research.
SAMPLE SIZE
50 samples were taken from Heritage Foods Private Limited, Hyderabad.
LIMITATIONS OF THE STUDY.
The different limitation of the study is given below-
 Often, sources are not interested to provide the actual data which is Very important
for correct estimation.
 Many of the employees have to work in the rigs so it was not possible To know their
view.
 Due to work load and survey done by the lots of trainees from Different institutes
scope of interaction with the employees was less.
 The survey was done for a period of one month. Hence limited time was spent for
doing the survey.
 Some of the employees were not able to express their ideas freely. Some answers
given by the employees might not be correct.
CHAPTER II
REVIEW OF LITERATURE
In today's extremely complex business environment where change continues to be the norm
rather than the exception, organizational change has become a core organizational value able
to provide organizations with a sustainable competitive advantage. However, though many
change programs have originally perceived as being successful; it is claimed that ultimately
nearly 70 percent of all change initiatives fail (Kotter, 2008) and thus, long-term success is
elusive (Nadine & Persaud, 2003). That is, changes involve making painful modifications to
one’s behaviour; as well as they require placing oneself in jeopardy (e.g. take risks that put
the common good above self-preservation; Quinn, Spreitzer & Brown, 2000). Within this
context, management scholars acknowledge that this rate of change may affect negatively
employee attitudes, perceptions, morale, emotions, and/or feelings (Eby, Adams, Russell &
Gaby, 2000; Osterman, 2000). Organizational change has an important personal dimension
(Moran & Brightman, 2000); and it is actually an emotional experience, which notes the
crucial role of employees’ perceptual and attitudinal characteristics (Nicolaidis & Katsaros,
2010). Equally, it is suggested that positive employee workplace attitudes are often critical in
achieving organizational goals and in succeeding in change programmes (Eby et al., 2000;
Martin, 1998; Kotter, 1996). Research proposes that employee perceptions of organizational
readiness to change may either facilitate or inhibit an organizational change initiative (Eby, et
al., 2000). That is, they reflect the degree to which the organization has the flexibility to
achieve change, and the extent to which an employee can actively and genuinely participate
in the change process (Smith, 2005). On the whole, an organizational environment that
engulfs innovation and change influences positively employees’ preconceived notions about
the extent to which the organization is ready for change. Other studies suggest that
organizational change may be more successful if employees perceive the management
support during the change initiative (Holt et al., 2007). That is, employees consider that their
supervisors are responsible for providing information and support because they are perceived
to be the principal agents of the organization (Cole et al., 2006). Nevertheless, support
provided by supervisors, yields positive emotions and emotional/cognitive openness towards
the proposed change. Research also proposes that trust in management can reduce negative
feelings provoked by change uncertainty and ambiguity (Weber & Weber, 2001). Thus,
honest and fair business practices, trustful communication and teamwork may craft a
significant basis for accomplishing organizational change goals (Beer & Nohria, 2000).
Overall, trust in management is one mechanism that enables organizational members to cope
with operational flexibility and constant change (Morgan & Zeffane, 2003). The change
management literature also proposes that perceptions about the appropriateness of change are
extremely significant during organizational change (Holt, Armenakis, Feild, & Harris 2007).
Within this context, Armenakis (2002) suggests that not only does there have to be agreement
that the proposed change is suitable, applicable and profitable, but also there must be
agreement that the initiative is congruent with. Thus, the perceived change’s fit with the
organization is as vital as whether the initiative is the proper one. Nevertheless, several gaps
remain in scholars’ understanding regarding how perceptions change during new
organizational efforts, as well as how job-related attitudes and characteristics influence these
changes. While employee perceptions regarding organizational readiness to change,
supervisory support, trust in management and appropriateness of change are considered to be
vital to successful organizational change, there are few empirical studies that examine how
these attitudes may vary before and after a change has been initiated. In more detail, there are
few empirical studies that collect longitudinal data before and after a planned change event
and consequently, draw out some insights into how change takes place. Based on Weber and
Weber's research model (2001), the main aim of the current research is to investigate how
these critical attitudes may differ prior and five months after the initiation of a planned
organizational change. Further, it examines certain job-related attitudes (i.e. job satisfaction,
organizational commitment and job involvement) and specific job-related characteristics (i.e.
skill variety, task identity, task significance feedback, autonomy, goal clarity) that may
moderate employee aforementioned perceptions. These job-related attitudes and
characteristics may be vital in establishing an organizational culture and climate able to
promote innovation and change (Liu & Perrewé, 2005; Wanberg & Banas, 2000) and their
deeper understanding can be useful at both practical and theoretical level.
The Reality of Perception in Employee Relations
Charles R. McConnell
The author has found from his research that, whenever there is a contradiction
between what employees are told or led to expect and what they actually see occurring, the
result is usually a negative perception. In the employee-manager relationship, a greater
presence of negative perceptions lowers the credibility of the management and increases the
difficulty in securing employee cooperation and commitment. The task of minimizing
employees' negative perceptions falls largely on the first-line supervisor, although the “door
is always open” higher managers can make this more difficult.
Employees' perception towards the dimension of culture in enhancing organizational
learning
Author(s): Carroll M. Graham, Fredrick Muyia Nafukho
Journal: The Learning Organization
The purpose of this study was to determine employees' perception of the dimension of
culture toward organizational learning readiness. The study also seeks to compare employees'
work experience (longevity), work shifts and their perception towards the dimension of
culture in enhancing organizational learning readiness. ANOVA was used to investigate the
relationship between longevity, work shift, and perception towards the dimension of culture
in enhancing organizational learning.
The independent variables longevity and work shift were statistically significant,
while the interaction effect was nonsignificant. Omega-squared test statistic revealed
longevity and work shift each accounted for 9 percent and 7 percent, respectively, of the
variance in the dependent variable employee perception toward the dimension of culture in
enhancing organizational learning. Moderate effect sizes for independent variables longevity
and work shift were also established.
Compensation or Right: An Analysis of Employee “Fringe” Benefit Perception

Barton L. Weathington and Lois E. Tetrick

The authors have found that employee perceptions of the benefits provided to them
by their organization can influence employee attitudes. Three factors that appear to influence
the perception of benefits by employees are benefit satisfaction, benefit importance, and the
perceived motive of the organization in providing the benefit to employees. However, it was
inferred that some benefits are perceived as rights that are owed to employees by the
organization. The study proposed and tested a model of benefit perception that incorporates
all of these factors. Results suggested that benefit satisfaction and the perceived motive of the
organization in providing a benefit both have a direct relationship with employee attitudes.
The perceived right status of a benefit appeared to moderate this relationship.
Exploring Employee Perception of Organizational Image: An Integrative Perspective of

Internal and External Communication
Choi, J.
This paper proposed to provide a conceptual model about how internal and external
communications influence employees’ perception of organizational images, in turn
influencing employees’ organizational identification and behaviors. In particular, it was
argued that when there is discrepancy between perceived external images and internally
perceived images that are held by employees, it can result in significant consequences in
terms of employees’ behaviors. Furthermore, it was discussed how perceptions about
organizational images were related to internal and external communication and the need for
an integrative perspective of communication management in the organization.
Employees’ Organizational Commitment and Their Perception of Supervisors’

Relations-Oriented and Task-Oriented Leadership Behaviors
Barbara B. Brown
The author says that relations-oriented leadership behaviors explained more of the
variance in affective commitment than the variance in normative commitment. The variance
that task oriented leadership behaviors explained in the two types of organizational
commitment was the same, only weaker. Neither relations-oriented nor task-oriented
leadership behaviors explained any variance in continuance commitment.
The relations-oriented leadership behaviors were positively related with affective and
Normative commitment, although not very strongly. This means that leadership behaviors
which involve engendering trust, inspiring a shared vision, generating enthusiasm,
encouraging creativity, providing coaching, and recognizing accomplishments do explain
some of the variation in how employees feel about wanting to or feeling obligated to stay
with the city of Charlottesville.
The more they display these behaviors, the more employees may want to or feel
obliged to stay. Task-oriented leadership behaviors had a negative relationship with
normative commitment and explained even less of the variance than relations-oriented
leadership behaviors. This means that leadership behaviors which involve ignoring problems
or waiting for problems to become chronic before taking action explain very little of the
variation in how employees feel about wanting to or feeling obligated to stay with the city of
Charlottesville. Supervisors may be able to improve their task-oriented leadership behaviors
by giving negative feedback in a timely manner and using language that is both clarifying and
encouraging.
Social Interaction and the Perception of Job Characteristics in an Organization
James W. Dean, Jr. Daniel J. Brass
This research investigates the relationship between the extent of employees' social
interaction and their perceptions of job characteristics. Employees' perceptions were
compared with the perceptions of task characteristics made by an outside observer, whose
perceptions were not subject to the same social influence processes. The results indicated that
the perceptions of employees who were more central to communication networks, boundary-
spanning employees, and employees close to the organization's boundaries were more similar
to the perceptions of the outside observer. These results were interpreted as support for the
hypothesis that increased social interaction leads to a convergence of perceptions, such that
the perceptions are more similar to observable reality. The hypotheses and results are
discussed in terms of social information-processing models and previous laboratory findings.
A Study of Supervisor and Employee Perceptions of Work Attitudes in Information Age
Manufacturing Industries
Md. Shafiqul Azam, Pro-Tech Search, Inc.

Illinois State University
Supervisors perceive and rate Information employee work attitudes differently than the
Information employees perceive and rate their work attitudes by themselves. Non-
information employees perceive their work attitudes differently than their supervisors do.
Information and Non-information employees do not perceive their work attitudes similarly.
Information employees had higher means for Dependability and Ambition and Non-
information employees had higher means for Teamwork and Self-Control.
There were differences in the strength of disagreement of responses across the groups.
The strongest disagreement between employees (both Information and Non-information) and
supervisors on the perceptions of employee (both Information and Non-information) work
attitudes was obtained for the work attitudes dimension Dependability. The second
disagreement between employees (both Information and Non-information) and supervisors
on the perceptions of employee (both Information and Non-information) work attitudes was
obtained for the work attitudes dimension Ambition. The third disagreement between
employees (both information and non-information) and supervisors on the perceptions of
employee (both Information and Non-information) work attitudes was obtained for the work
attitudes dimension Teamwork.
Comparative Analysis of Management and Employee Job Satisfaction and Policy

Perceptions
Charles G. Andrews, B. A., M. S.
According to the author, there is no statistically significant differences between the
perception of nonmanagement employee job satisfaction and management job satisfaction as

measured by job satisfaction topic means. It could be concluded from this study that group
means of importance for job satisfaction topics shows no significantly relationship by
management or management status. Nonmanagement rated Employee Development
Opportunities and Work-life Balance higher than management employees.
However, none of the differences were statistically significant. Rust, Stewart, Miller,
and Pielack (1996) examined job satisfaction of frontline workers. Topics addressed included
work design, work conditions, benefits, and supervision. They found that a person’s overall
satisfaction is driven by their satisfaction with the organization’s managerial process.
Wright and McMahan (1992), in their study “Theoretical Perspective for Strategic Human
Resource Management,” point out the matching of human resource management with
strategy, human resource skills, attitudes, behaviours and performances. Strategies can be
used to acquire, develop, motivate and maintain human resources. Bailey Thomas (1993)
presented an argument for the application of promoting HRM practices on the grounds that
human resources are frequently underutilized. Employees often perform below their potential.
He points out that HRM practices may have an influence on employee skills and motivation.
HRM practices influence employee skills through the acquisition and development of a firm’s
human capital. Recruiting procedures and selection regimes will have an influence over the
quality and type of skills new employees possess. Agarwal and Sudeepa Bose (2004) in their
article on “Organizational Climate for Perceptions of Procedural Fairness” suggest that the
perception of procedural fairness might be instrumental in developing members’ role
efficiency. An organizational climate that is conducive for such perceptions of procedural
fairness may create a desire on the part of members to identify more strongly with the
organizations and result in effective role enactment. Daniel F. Ofori, Victoria Sekyere-
Abankwa and Davida B. Borquaye (2012) have conducted a study to determine the
perceptions of the HR function among professionals in Ghanaian organizations. The primary
data were collected from 300 respondents. Out of these 250 questionnaires were returned. A
perception index was developed to measure the respondents’ perceived relevance of the HR
function in their organizations. The results of the study revealed that respondents ranked the
recruitment of qualified personnel; training and development; and the retention of qualified
staff as the most important functions of HRM. The study showed that the perceived relevance
of the HR function is influenced by age, job position, being denied assistance, and being
sidelined for recognition.
Pawan S. Buhdwar and George Boyne (2004) conducted a study on, “Human Resource
Management in the Indian Public and Private Sectors: An Empirical comparison”. The
Investigations is based on a questionnaire survey of 137 large manufacturing firms(public
sector=81;private sector=56). In functional areas like compensation and training and
development, Indian private sector firms have adopted a more rational approach than their
public sector counterparts. Andre Luiz Fisher and Lindolfo Go De Albuquerque (2005)
undertook a study on “Trends of HRM Model in British Companies – A Forecast according
to Opinion Leaders from the Area”. Having consulted more than 160 people, it was observed
that themes such as the management of competences, corporate education and encouragement
for organizational learning will be gradually assimilated by companies. Cherrie Juhna Zhu et
al (2005) attempted a research study on “A Problematic Transition to a Strategic Role: HRM
in Industrial Enterprises in China”. The study revealed the changing business environment in
China and participation by the HR function in strategic decision making were the strongest
predicators of HRM practices. Fiona Edar and Alan J Geare (2005) conducted a study on
“Employee Voice on HRM”. This exploratory study examined the current views of 626 New
Zealand employees about HRM in their organizations. The study revealed that from an
employee’s perspective training and development is becoming an increasingly important
issue. Sandra King and Kauanui et al (2006) took a study on “Impact of HRM : SME
Performance in Vietnam”. A sample of 200 Hanoi manufacturing SMEs was surveyed
regarding their training, performance appraisal and incentive compensation have positive
effects on Vietnamese SME performance, with incentive compensation having the greatest
impact. W. Cathirne Anitha (2007) conducted a research study on Human Resource
Management in Neyveli Lignite Corporation Limited. The conclusion was that the challenge
before human resource management department was to actively coordinate, synergize and
monitor the various areas of human resources and achieve the objectives of the corporation.
Satheeshkumar L. (2008) in his article entitled “Payment System” has stated that
concentration on quality is increasingly a characteristic of strategic planning. It is an
important element in HRM as employee’s effort is directed towards organization survival and
development. Saxena and Tiwari (2009) examined the HRM Practices implemented by
leading IT Companies such as TATA, Infosys and Wipro in India. They developed the
3cTER Framework of HRM practices and identified Training and Development, Employer-
Employee Relations, Recognition through Rewards, Culture building, Career Development,
Compensation and Benefits as important HRM Practices. Osman et al (2011) in their study
on the Relationship between human resource practices and firm performance: An empirical
assessment of firms in Malaysia, found that the effectiveness of implementing HR practices
in a company does indeed have a major impact of 50 per cent towards a firm’s performance.
CHAPTER III
INDUSTRY PROFILE
HISTORY OF INDIAN FOODS INDUSTRY
Retailing is one of the pillars of the economy in India and accounts for 35% of GDP.
The retail industry is divided into organised and unorganised sectors. Over 12 million outlets
operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size.
Organised retailing refers to trading activities undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large retail businesses.
Unorganised retailing, on the other hand, refers to the traditional formats of low-cost
retailing, for example, the local kirana shops, owner manned general stores, paan/beedi
shops, convenience stores, hand cart and pavement vendors, etc.
Most Indian shopping takes place in open markets and millions of independent grocery shops
called kirana. Organized retail such supermarkets accounts for just 4% of the market as of
2008. Regulations prevent most foreign investment in retailing. Moreover, over thirty
regulations such as "signboard licences" and "anti-hoarding measures" may have to be
complied before a store can open doors. There are taxes for moving goods to states, from
states, and even within states.
Growth
An increasing number of people in India are turning to the services sector for employment
due to the relative low compensation offered by the traditional agriculture and manufacturing
sectors. The organized retail market is growing at 35 percent annually while growth of
unorganized retail sector is pegged at 6 percent.
The Retail Business in India is currently at the point of inflection. Rapid change with
investments to the tune of US $ 25 billion is being planned by several Indian and
multinational companies in the next 5 years. It is a huge industry in terms of size and
according to management consulting firm Technopak Advisors Pvt. Ltd., it is valued at about
US $ 350 billion. Organised retail is expected to garner about 16-18 percent of the total retail
market (US $ 65-75 billion) in the next 5 years.
India has topped the A.T. Kearney’s annual Global Retail Development Index (GRDI) for the
third consecutive year, maintaining its position as the most attractive market for retail
investment. The Indian economy has registered a growth of 8% for 2007. The predictions for
2008 is 7.9%. The enormous growth of the retail industry has created a huge demand for real
estate. Property developers are creating retail real estate at an aggressive pace and by 2010,
300 malls are estimated to be operational in the country.
With over 1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011, India
will need additional retail space of 700,000,000 sq ft (65,000,000 m2) as compared to today.
Current projections on construction point to a supply of just 200,000,000 sq ft
(19,000,000 m2), leaving a gap of 500,000,000 sq ft (46,000,000 m2) that needs to be filled, at
a cost of US$15–18 billion.
According to the Icrier report, the retail business in India is estimated to grow at 13% from
$322 billion in 2006-07 to $590 billion in 2011-12. The unorganized retail sector is expected
to grow at about 10% per annum with sales expected to rise from $ 309 billion in 2006-07 to
$ 496 billion in 2011-12.
The Indian Retail Market
Indian market has high complexities in terms of a wide geographic spread and distinct
consumer preferences varying by each region necessitating a need for localization even
within the geographic zones. India has highest number of outlets per person (7 per thousand)
Indian retail space per capita at 2 sq ft (0.19 m2)/ person is lowest in the world Indian retail
density of 6 percent is highest in the world. 1.8 million households in India have an annual
income of over 45 lakh
Delving further into consumer buying habits, purchase decisions can be separated into two
categories: status-oriented and indulgence-oriented. CTVs/LCDs, refrigerators, washing
machines, dishwashers, microwave ovens and DVD players fall in the status category.
Indulgence-oriented products include plasma TVs, state-of-the-art home theatre systems,
iPods, high-end digital cameras, camcorders, and gaming consoles. Consumers in the status
category buy because they need to maintain a position in their social group. Indulgence-
oriented buying happens with those who want to enjoy life better with products that meet
their requirements. When it comes to the festival shopping season, it is primarily the status-
oriented segment that contributes largely to the retailer’s cash register.
While India presents a large market opportunity given the number and increasing purchasing
power of consumers, there are significant challenges as well given that over 90% of trade is
conducted through independent local stores. Challenges include: Geographically dispersed
population, small ticket sizes, complex distribution network, little use of IT systems,
limitations of mass media and existence of counterfeit goods.
Major Indian Retailers
Indian apparel retailers are increasing their brand presence overseas, particularly in developed
markets. While most have identified a gap in countries in West Asia and Africa, some majors
are also looking at the US and Europe. Arvind Brands, Madura Garments, Spykar Lifestyle
and Royal Classic Polo are busy chalking out foreign expansion plans through the
distribution route and standalone stores as well. Another denim wear brand, Spykar, which is
now moving towards becoming a casualwear lifestyle brand, has launched its store in
Melbourne recently. It plans to open three stores in London by 2008-end.
The low-intensity entry of the diversified Mahindra Group into retail is unique because it
plans to focus on lifestyle products. The Mahindra Group is the fourth large Indian business
group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and
Bharti Enterprises Ltd. The other three groups are focusing either on perishables and
groceries, or a range of products, or both.
 Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks Safe
Deposit Lockers
 PGC Retail -T-Mart IndiaSwitcher , Respect India , Grand India Bazaar ,etc.,
 REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Super
 RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s
Super, Daily & Fresh
 Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion
Station, Brand Factory, Depot, aLL, E-Zone etc.
 The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark,
Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma.
 K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit
 Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International
Franchise brand stores.
 Pyramid Retail-Formats: Pyramid Megastore, TruMart
 Nilgiri’s-Formats: Nilgiris’ supermarket chain
 Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.
 Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain
 Vishal Retail Group-Formats: Vishal Mega Mart
 BPCL-Formats: In & Out
 Reliance Retail-Formats: Reliance Fresh
 Reliance ADAG Retail-Format: Reliance World
 German Metro Cash & Carry
 Shoprite Holdings-Formats: Shoprite Hyper
 Paritala stores bazar: honey shine stores
 Aditya Birla Group - more Outlets
 Kapas- Cotton garment outlets
CHAPTER IV
COMAPANY PROFILE
Heritage at a Glance:
The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of the fastest
growing Private Sector Enterprises in India, with four-business divisions viz., Dairy, Retail,
Agri, and Bakery under its flagship Company Heritage Foods (India) Limited (HFIL). The
annual turnover of Heritage Foods crossed Rs.1096 crores in 2010-11.
Presently Heritage’s milk products have market presence in Andhra Pradesh, Karnataka,
Kerala, Tamil Nadu and Maharastra and its retail stores across Bangalore, Chennai and
Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and these are
backbone to retail operations.
In the year 1994, HFIL went to Public Issue to raise resources, which was
oversubscribed 54 times and its shares are listed under B1 Category on BSE (Stock Code:
519552) and NSE (Stock Code: HERITGFOOD)
About the founder:
Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic,

Progressive and Visionary Leaders of the 21st Century. With an objective of bringing
prosperity in to the rural families through co-operative efforts, he along with his relatives,
friends and associates promoted Heritage Foods in the year 1992 taking opportunity from the
Industrial Policy, 1991 of the Government of India and he has been successful in his
endeavour.
At present, Heritage has market presence in all the states of South India. More
than three thousand villages and five lakh farmers are being benefited in these states. On the
other side, Heritage is serving more than 6 lakh customers needs, employing more than 700
employees and generating indirectly employment opportunity to more than 5000 people.
Beginning with a humble annual turnover of just Rs.4.38 crores in 1993-94, the sales
turnover has reached close to Rs.300 crores during the financial year 2005-2006.
Sri Naidu held various coveted and honorable positions including Chief
Minister of Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives &
Cinematography, Member of the A.P. Legislative Assembly, Director of A.P. Small
Industries Development Corporation, and Chairman of Karshaka Parishad.
Sri Naidu has won numerous awards including " Member of the World
Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time Asia ), "
Business Person of the Year " (Economic Times), and " IT Indian of the Millennium " ( India
Today).
Sri Naidu was chosen as one of 50 leaders at the forefront of change in the
year 2000 by the Business Week magazine for being an unflinching proponent of technology
and for his drive to transform the State of Andhra Pradesh .
Forward looking statements:
“We have grown, and intended to grow, focusing on harnessing our

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

providing innovative avenues for enhanced employee prosperity.
Heritage Slogan:
When you are healthy, we are healthy
When you are happy, we are happy
We live for your "HEALTH & HAPPINESS"
Quality policy of HFIL:
We are committed to achieve customer satisfaction through hygienically processed

and packed Milk and Milk Products. We strive to continually improve the quality of our
products and services through upgradation of technologies and systems.
Heritage's soul has always been imbibed with an unwritten perpetual commitment to
itself, to always produce and provide quality products with continuous efforts to improve the
process and environment.
Adhering to its moral commitment and its continuous drive to achieve

excellence in quality of Milk, Milk products & Systems, Heritage has always been laying
emphasis on not only reviewing & re-defining quality standards, but also in implementing
them successfully. All activities of Processing, Quality control, Purchase, Stores, Marketing
and Training have been documented with detailed quality plans in each of the departments.
Today Heritage feels that the ISO certificate is not only an epitome of
achieved targets, but also a scale to identify & reckon, what is yet to be achieved on a
continuous basis. Though, it is a beginning, Heritage has initiated the process of
standardizing and adopting similar quality systems at most of its other plants.
Commitments:
Milk Producers:
Change in life styles of rural families in terms of:
 Regular high income through co-operative efforts.

 Women participation in income generation .
 Saved from price exploitation by un-organized sector .
 Remunerative prices for milk .
 Increase of milk productivity through input and extension activities
 Shift from risky agriculture to dairy farming
 Heritage
 Financial support for purchase of cattle; insuring cattle
 Establishment of Cattle Health Care Centers
 Supplying high quality Cattle feed
 Organizing "Rythu Sadasu" and Video programmes for educating the farmers in dairy
farming
Customers:
 Timely Supply of Quality & Healthy Products

 Supply high quality milk and milk products at affordable prices
 Focused on Nutritional Foods
 More than 4 lakh happy customers
 High customer satisfaction
 24 hours help lines ( <10 complaints a day)
Employees:
 Enhancing the Technical and Managerial skills of Employees through continuous
training and development
 Best appraisal systems to motivate employees
 Incentive, bonus and reward systems to encourage employees
 Heritage forges ahead with a motto "add value to everything you do"
Returns:
Consistent Dividend Payment since Public Issue (January 1995)
Service:
 Highest impotence to investor service; no notice from any regulatory authority since
2001 in respect of investor service
 Very transparent disclosures
Suppliers:
Doehlar: technical collaboration in Milk drinks, yogurts drinks and fruit flavoured
drinks Alfa-Laval: supplier of high-end machinery and technical support Focusing on Tetra
pack association for products package.
Society:
 Potential Employment Generation
More than 3500 employees are working with heritage
More than 9500 procurement agents got self employment in rural areas
More than 5000 sales agents associated with the company
 Employment for the youth by providing financial and animal husbandry support for
establishing MINI DAIRIES
 Producing highly health conscious products for the society
Qualities of management principles:
1. Customer focus to understand and meet the changing needs and expectations of
customers.
2. People involvement to promote team work and tap the potential of people.
3. Leadership to set constancy of purpose and promote quality culture trough out the
organization.
4. Process approach to assess the efficiency and effectiveness of each process.
5. Systems approach to understand the sequence and interaction of process.
6. Factual approach to decision making to ensure its accuracy.
7. Continual improvement processes for improved business results.
8. Development of suppliers to get right product and services in right time at right place.
Product/Market wise performance:
The total turnover is Rs 341 Crores during the financial year 2006-07 against
the turnover of 292.02 Crores in 2005-06. Today Heritage distributes quality milk & milk
products in the states of A.P, Karnataka, Kerala & Tamil nadu.
During the year 2006-07 liquid milk sales was Rs.28329.79 lakhs against
Rs.24525.23 lakhs in the previous year. The sales of miik products including bulk sales of
cream, ghee and butter were recorded Rs 5781.59 lakhs against Rs 4677.21 lakhs.
Milk sales:
23% growth was recorded in AP 2.38 lakhs litres per day(LLPD) in 2006-07 against
1.93 LLPD in 2005-06. 13% growth was recorded in Tamilnadu-1.53 LLPD in 2006-07
against 1.35 LLPD in 2005-06. Over all growth of 6% was recorded- 5.49 LLPD in 2006-07
against 5.16 LLPD. Flavoured milk sales recorded a growth rate of 77% over 2005-06. Butter
milk sales have gone up by 45% over 2005-06.
Outlook:
Considering the growth potential in the liquid milk market, the company has
drawn plans to increase its market share in the existing markets and to enter into new markets
there by doubling revenues in dairy business in the next 3 years. To achieve this object,
company is undertaking major expansion in dairy business by inverting over Rs20 crores
during 2006-07 and over Rs10 crores during the current year to strengthen the milk
procurement.
CODE OF CONDUCT AND ETHICS
FOR DIRECTORS & SENIOR MANAGEMENT
PREFACE This Code of Conduct and Ethics (herein after referred to as the "Code") has
been adopted by the Board of Directors of Heritage Foods (India) Limited (herein after
referred to as "the Company") , to be applicable to all Directors and all members of senior
management i.e., personnel who are a part of the core management team and including all
functional heads of the company (herein after referred to as the 'Members') with effect from
December 23, 2005.
This Code helps the Members maintain good standards of business conduct, foster ethical and
moral conduct and promote a culture of honesty and accountability, so as to set an example to
others in the company.
The Code is not an all-inclusive comprehensive policy and cannot anticipate every situation
that may arise in the course of the company's business. The Members are expected to bear in
mind the essence and substance of the Code in all their dealings / transactions with the
Company.
STRICT COMPLIANCE All Members shall act within the bounds of the authority
conferred upon them and undertake the duty to make and enact informed, judicious and
harmonious decisions and policies in the best interests of the Company and its shareholders /
stakeholders.
With a view to maintain the high standards the Company requires, the following rules/ code
of conduct to be observed in all activities. For the purpose of the code, the Company appoints
the Company Secretary as compliance officer, who will be available to Members to answer
questions and help them in complying with the code. CONFLICT OF INTEREST The term
"Conflict of interest" pertains to situations in which financial or personal considerations may
compromise, or have the appearance of compromising judgment of professional activities. A
conflict of interests exists where the interests or benefits of one person or entity conflicts with
the interests or benefits of the other person/entity/company.
All Members should not engage in any business, relationship or activity, which may be in
conflict with the interest of the Company. Conflict may arise in many situations. It is not
possible to cover every possible conflict situation and at times, it will not be easy to
distinguish between the proper and improper activities. Set forth below, are some of the
common circumstances that may lead to conflict of interest, actual or potential.
i. Members should not engage in any activity / employment that interfere with your
performance or responsibility to the Company or otherwise in conflict with or prejudicial
to the interests of the Company.
ii. As a general policy, Members should avoid conducting business with a relative or with a
firm / Company in which a relative / related party is associated in a significant role /
position.
iii. Whenever/ wherever the related party transaction is unavoidable Members will fully
disclose their interest in the transaction to the Board or to the CEO of the Company and
due records for such transactions will be maintained as per the statutory requirements.
HONESTY AND INTEGRITY All Members shall conduct their activities, on behalf of the
Company and on their personal behalf, with honesty, integrity and fairness. They will act in
good faith, with responsibility, due care, competence and diligence, allowing independent
judgment to their subordinates. Members shall act in the best interests of the Company and
fulfil their fiduciary obligations. POLICY OF BUSINESS RELATIONSHIP
The Company will conduct business legally and ethically. The quality of company's products
and the efficiency of its services at the most competitive price is the greatest tool in
conducting the business of the company. Profits do not justify unfair/ unethical practices. All
Members should uphold the highest standards of integrity in all the business relationships.
INTELLECTUAL PROPERTY POLICY
All Members have utmost obligation to identify and protect the intellectual properties, trade
secrets and confidential information owned by the Company and its clients or associates as it
is critical to the success of the company. "Intellectual Property Rights" (IPR) means
generally patented or potentially patentable inventions, trademarks, copyrightable subject
matters and trade secrets.
CORPORTE OPPORTUNITIES Members owe a duty to the Company to advance its

legitimate interests when the opportunity to do so arises and are expressly prohibited from
improper use of information / property or taking improper advantage of their position.
PREVENTION OF INSIDER TRADING Insider trading is prohibited both by the Law as
well as by the company policy . Insider trading generally involves the act of subscribing to or
buying or selling of the Company's securities, when in possession of any Unpublished Price
Sensitive Information about the company.
"Price sensitive information " is such information, which relates directly or indirectly to the
company and which if published is likely to materially affect the price of securities of the
Company. It is important to note that both positive and negative information could be price
sensitive.
Members shall not derive benefit or assist others to derive benefit or assist them to derive
benefit on their behalf by giving investment advice from the available access to and
possession of information about the Company, which is not in public domain and thus
constituting insider information. Members shall comply with the prevention of insider trading
guidelines as issued by Securities Exchange Board of India (SEBI). SECURITIES
MARKET POLICY
The Company is committed to comply with securities laws in all the markets in which the
Company's securities are listed. The company prohibits fraudulent and unfair trade practices
with regard to the securities of the Company by all Members.
CONFIDENTIALITY OF INFORMATION POLICY The Company's confidential

information is a valuable asset. Members shall understand that protection of all confidential
information is essential. Members should undertake and be committed to protecting business
and personal information of confidential nature obtained from clients, associates and
employees.
Any information concerning the Company's business, its customers, suppliers etc which is
not in the public domain and to which the Members have access or possesses such
information, shall be considered confidential and held in confidence, unless authorized to
disclose or such disclosure is required as a matter of law. Members shall not provide any
information either formally or informally, to the press or any other publicity media, unless
specially authorized to do so. COMPLIANCE WITH LAWS, RULES AND
REGULATIONS
Members should comply with all applicable laws, rules, and regulations, both in letter and
sprit. In order to assist the Company in promoting the lawful and ethical behaviour, Members
have to report any possible violation of law, rules, regulations or the code of conduct to the
Company Secretary.
PROTECTION AND PROPER USE OF COMPANY’S ASSETS
All Members have the responsibility to protect the assets of the company, ensure optimal
utilization of assets and to report and record all transactions. Members shall protect the
Company's assets from loss, damages, misuse or theft and assets may only be used for
business purposes and other purposes specifically approved by management and must never
be used for any personal or illegal purposes.
COMPETITION POLICY
The Company shall compete only in an ethical and legitimate manner. It prohibits all actions
that are anti- competitive or otherwise contrary to laws that govern competitive practices in
the market place. Members shall uphold the same.
SELECTING SUPPLIERS
The Company's suppliers make significant contribution to its success. The Company's policy
is to purchase / avail supplies based on need, quality, service, price and other commercial
terms and conditions. Suppliers should be selected based on merit, price, quality and
performances. The Company's policy is to select significant suppliers through a competitive
bid process wherever possible. Under no circumstance should the Company or its employee,
agent or contractor attempt to coerce suppliers in any way.
ENVIRONMENT, HEALTH AND SAFETY POLICY
Members shall take environmental consciousness a step further as a company and contribute
to preserving nature as well as safety measures in own respective work areas. All Members
are responsible for conducting safe and environmentally sound operations; this is in the
interest of our own well-being and the quality of life of others. Members shall abide by this
policy.
ELIMINATION OF CHILD LABOUR
It is the Company's policy not to support child labour. The Company is committed to
implement the provisions of the Child Labour (Prohibition and Regulation) Act, 1986. To,
promote this the Company encourages its suppliers also to work towards a no child labour
policy in their industries. Members shall strictly observe that no child labour is employed in
the company.
ABOLITION OF FORCED LABOUR

The Company strictly prohibits forced or compulsory labour. The Company is committed to
ensuring that employees enter into employment and stay on in the Company of their own free
will. Members shall uphold this policy.
GIFTS & DONATIONS
No Member shall receive or offer, directly or indirectly, any gifts, donations, remuneration,
hospitality, illegal payments and comparable benefits which are intended or perceived to be
intended to obtain business (or uncompetitive) favours or decision for the conduct of the
business. Normal gifts of commemorative nature for special events may be accepted and
reported to the Board.
OTHER DIRECTORSHIPS
The Company feels that serving on the Board of directors of other companies may raise
substantial concerns about potential conflict of interest. Therefore all Directors shall report /
disclose such relationships to the Board on an annual basis. It is felt that service on the Board
of a direct competitor is not in the interest of the Company. Hence all the Directors are barred
in accepting such position without the concurrence of the Board.
ACCOUNTABILITY
The Board of Directors (BOD) shall oversee the Company's adherence to ethical and legal
standards. All employees and members of the BOD shall undertake to stop or prevent actions
that could harm customers or reputation of the Company and to report such actions as soon as
they occur to take corrective steps and see that such actions are not repeated.
COMPLIANCE WITH CODE OF CONDUCT
Each Director and senior management personnel shall adhere to this code of conduct and
affirm compliance with the code on an annual basis as per the Annexure to the Code.
Violation of this Code will lead to appropriate disciplinary action.
WAIVER OF THE CODE

Any waiver of the applicability of the Code or waiver of application of any provision of the
Code to any Member shall be approved by the Board of Directors and disclosed as required
by Law or SEBI / Stock Exchange regulations.
BRANCHES OF HFIL:
HFIL has 3 wings. They are
1. Dairy
2. Retail
3. Agribusiness
1. Dairy:
It is the major wing among all. The dairy products manufactured by HFIL are
Milk, curd, butter, ghee, flavored milk, paneer, doodhpeda, ice cream.
2. Retail:
In the retail sector HFIL has outlets namely “Fresh@”. In those stores the
products sold are vegetables, milk& milk products, grocery, pulses, fruits etc.
In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4

respectively are there. Totally there are 26 retail shops are there.
Fresh@ is a unique chain of retail stores, designed to meet the needs of the
modern Indian consumer. The store rediscovers the taste of nature every day making grocery
shopping a never before experience.
The unique& distinctive feature of Fresh@ is that it offers the widest range of
fresh fruits and vegetables which are directly hand picked from the farms. Freshness lies in
their merchandise and the customers are always welcomed with fresh fruits and vegetables no
matter what what time they walk in.
3. Agri Business:
In this business HFIL employees will go to farmers and have a deal with them.
Those farmers will sell their goods like vegetables, pulses to HFIL only. And HFIL will
transport the goods to retail outlets.
The agricultural professors will examine which area is suitable to import

vegetables from and also examine the vegetables, pulses and fruits in the lab. And finally
they report to the Head-Agribusiness. Representatives as per the instructions given by the agri
professors will approach the farmers directly and make a deal with them. It is the process of
registering the farmers.
Heritage Finlease Heritage Finlease Limited was incorporated under the companies Act
1956 on 23rd of February 1996 and commenced business from 2nd day of April 1996. The
Registered office is located at 6-3-541/c Punjagutta, Hyderabad-500082
.
CHAPTER V
DATA ANALYSIS AND

INTERPRETATION
1. AGE OF RESPONDENTS
AGE NO OF RESPONDENT PERCENTAGE (%)

25-30 10 20
30-35 8 16
35-45 21 42
>45 11 22
Total 50 100
INFERENCE
 20% of the respondents are at the age group from 25-30years,
 16% respondents are from 30-35years of age,
 42% of the respondents are from 35-45 years of age and
 22% of the respondents are above 45years of age.
25-30
30-35
35-45
>45
2. EDUCATIONAL QUALIFICATION OF RESPONDENTS
No of Respondent PERCENTAGE (%)

secondary 14 28.0
diploma 13 26.0
ug 18 36.0
pg 5 10.0
Total 50 100.0
INFERENCE
 28% of the respondents completed secondary.
 26% of the respondents completed Diploma.
 36% of the respondents completed UG and remaining
 10% of the of the respondents completed PG.
10
28
secondary
diploma
ug
36 pg
26
3. GENDER
GENDER NO.OFRESPONDENTS PERCENTAGE
(%)
male 31 62.0
female 19 38.0
Total 50 100.0
INFERENCE
 62% of the respondents are male
 38% of the respondents are female.
38
male
female
62
4. MARITAL STATUS
S.No Status No. of Respondents Percentage
1 Single 16 32
2 Married 34 68
Total 50 100
Source: Primary Data
Inference:
32% of the employees were single

68% of the employees were married
MARITAL STATUS
P 80
E
R 60
C
40
E
N
20
T
A
0
G Single Married
E
ORGANIZATION’S GOALS AND OBJECTIVES ARE UNDERSTOOD BY THE
EMPLOYEES
S.No Level of Attitude No. of Respondents Percentage
1 Disagree strongly 8 16
2 Disagree somewhat 7 14
3 Neutral 4 8
4 Agree somewhat 12 24
5 Agree strongly 19 38
Total 50 100
Inference:
The above table shows that 16% of the employees did not know the organization’s goals and
objectives and 38% of the employees were clear about the goals and objectives.
ORGANIZATION’S GOALS AND OBJECTIVES ARE UNDERSTOOD BY THE

EMPLOYEES
40
35
P
30
E
25
R
20
C
E 15
N 10
T 5
A 0
G
E
LEVEL OF ATTITUDE
THERE IS A CLEAR REPORTING STRUCTURE
3 Neutral 8 16
Total 50 100
Inference:
The above table shows that 12% of the employees did not know about the reporting structure.
32% of the employees were somewhat clear about the reporting structure.
28% of the employees were clear about the reporting structure.
THERE IS A CLEAR REPORTING STRUCTURE
35
30
P
E 25
R 20
C 15
E
10
N
5
T
A 0
G
E
LEVEL OF ATTITUDE
ORGANIZATION HELPS TO DEVELOP SKILLS AND ABILITIES
3 Neutral 11 22
Total 50 100
Inference:
The above table shows that 12% of the employees felt that they could not develop their skills.
14% of the employees felt that they could develop their skills to some extent and 44% of the
employees felt strongly that they could develop their skills.
ORGANIZATION HELPS TO DEVELOP SKILLS AND ABILITIES
50
45
P 40
E 35
R 30
25
C
20
E 15
N 10
T 5
A 0
G
E
LEVEL OF ATTITUDE
I GAIN SATISFACTION FROM MY JOB
3 Neutral 9 18
Total 50 100
Inference:
The above table shows that 6% of the employees did not gain satisfaction from their job.
18% of the employees gained satisfaction from their job to an extent.
38% of the employees strongly felt that they gained satisfaction from their job
I GAIN SATISFACTION FROM MY JOB

40
35
P
30
E
25
R
20
C
E 15
N 10
T 5
A 0
G
E
LEVEL OF ATTITUDE
MY JOB IS CHALLENGING
3 Neutral 8 16
Total 50 100
Inference:
The above table shows that 10% of the employees felt that their job was not challenging.
26% of the employees felt that their job was challenging to a certain extent.
38% of the employees felt strongly that their job was challenging.
MY JOB IS CHALLENGING
40
35
P
30
E
25
R
20
C
E 15
N 10
T 5
A 0
G
E
LEVEL OF ATTITUDE
EMPLOYEES SUPPORT EACH OTHER
3 Neutral 14 28
Total 50 100
Inference:
The above table shows that 14% of the employees felt that support from each other was not
there.
28% of the employees felt that support from each other was there to a certain extent
18% of the employees felt strongly that support from each other was there.
EMPLOYEES SUPPORT EACH OTHER

30
P 25
E 20
R
15
C
E 10
N
5
T
A 0
G
E
LEVEL OF ATTITUDE
PERSONAL CONTRIBUTION IS RECOGNIZED
3 Neutral 8 16
Total 50 100
Inference:
The above table shows that 14% of the employees felt that personal contribution was not
recognized. 28% of the employees felt that personal contribution was recognized to some
extent.
28% of the employees felt strongly that personal contribution was recognized .
PERSONAL CONTRIBUTION IS RECOGNIZED
30
P 25
E 20
R
15
C
E 10
N
5
T
A 0
G
E
LEVEL OF ATTITUDE
I’M VALUED AS AN EMPLOYEE
S.no Choice No. of Respondents Percentage
1 Yes 40 80
2 No 10 20
Total 50 100
Inference:
The above table shows that 80% of the employees felt that they were valued as an employee.
20% of the employees felt that they were not valued as an employee.
I’M VALUED AS AN EMPLOYEE

P
40
E
R
30
C
E 20
N
T 10
A
G 0
E Yes No
VALUED AS AN EMPLOYEE
T
QUALITY IS GIVEN IMPORTANCE
3 Neutral 7 14
Total 50 100
Inference:
The above table shows that 32% of the employees felt that quality was given importance.
18% of the employees felt that quality was not given importance.
QUALITY IS GIVEN IMPORTANCE
35
30
P
E 25
R 20
C 15
E
10
N
T 5
A 0
G
E
LEVEL OF ATTITUDE
INDIVIDUAL INITIATIVE IS ENCOURAGED
3 Neutral 12 24
Total 50 100
Inference:
22% of the employees felt that individual initiative was not encouraged; 24% of the
employees felt that individual initiative was encouraged to a certain extent; 22% of the
employees felt that individual initiative was encouraged
INDIVIDUAL INITIATIVE IS ENCOURAGED
30
25
P
E 20
R
15
C
E 10
N
5
T
A 0
G
E
LEVEL OF ATTITUDE
MANAGEMENT SETS HIGH STANDARDS
3 Neutral 6 12
Total 50 100
Inference:
20% of the employees felt that management did not set high standards.
16% of the employees felt that management set high standards to a certain extent.
30% of the employees felt that management set high standards.
MANAGEMENT SETS HIGH STANDARDS
35
30
P
E 25
R 20
C 15
E
10
N
T 5
A 0
G
E
LEVEL OF ATTITUDE
MANAGEMENT TREATS FAIRLY
3 Neutral 13 26
Total 50 100
Inference:
14% of the employees felt that the management did not treat them fairly
10% of the employees agreed to a certain extent that the management treated them fairly
26% of the employees felt that the management treated them fairly
MANAGEMENT TREATS FAIRLY
30
25
P
E 20
R
15
C
E 10
N
5
T
A 0
G
E
LEVEL OF ATTITUDE
THE MANAGEMENT RECOGNIZES MY WORK
3 Neutral 6 12
Total 50 100
Inference:
6% of the employees felt strongly that the management did not recognize their work
28% of the employees felt that the management recognized their work to some extent.
26% of the employees felt that the management recognized their work.
THE MANAGEMENT RECOGNIZES MY WORK

30
25
P
E 20
R
15
C
E 10
N
5
T
A 0
G
E
LEVEL OF ATTITUDE
WORKING CONDITIONS ARE GOOD
3 Neutral 8 16
Total 50 100
Inference:
12% of the employees felt that working conditions were not good
24% of the employees felt that working conditions were good to some extent
40% of the employees felt that working conditions were good
WORKING CONDITIONS ARE GOOD

45
40
P 35
E 30
R 25
C 20
E 15
N 10
T 5
A 0
G
E
LEVEL OF ATTITUDE
WORKLOAD IS REASONABLE
3 Neutral 12 24
Total 50 100
Inference:
16% of the employees felt that workload was not reasonable.

26% of the employees felt that workload was reasonable to certain extent
24% of the employees felt that workload was reasonable
WORKLOAD IS REASONABLE
30
25
P
E 20
R
15
C
E 10
N
5
T
A 0
G
E
LEVEL OF ATTITUDE
DEADLINES ARE REALISTIC
3 Neutral 9 18
Total 50 100
Inference:
14% of the employees felt that dead lines were not realistic.
36% of the employees felt that dead lines were realistic to certain extent
12% of the employees felt strongly that dead lines were realistic
DEADLINES ARE REALISTIC
40
35
P 30
E
25
R
20
C
E 15
N 10
T 5
A 0
G
E
LEVEL OF ATTITUDE
BALANCE BETWEEN WORK AND PERSONAL LIFE
3 Neutral 3 6
Total 50 100
Inference:
14% of the employees felt that there was no balance between work and personal life.
34% of the employees felt that there was balance between work and personal life to certain
extent.
26% of the employees feel strongly that there was balance between work and personal life
BALANCE BETWEEN WORK AND PERSONAL LIFE
40
35
P 30
E
25
R
20
C
E 15
N 10
T 5
A 0
G
E
LEVEL OF ATTITUDE
SALARY IS ADEQUATE
3 Neutral 10 20
Total 50 100
Inference:
32% of the employees felt that salary was insufficient

22% of the employees felt that salary was sufficient to certain extent
6% of the employees feel that salary was sufficient
SALARY IS ADEQUATE
35
30
25
20
15
10
5
0
CHAPTER VI
FINDINGS, SUGGESSTIONS & CONCLUSION

FINDINGS OF THE STUDY
 From the study, it was found that the employees had a clear understanding about
whom they should report to about their targets in their daily course of work. They also
felt that their direct supervisor listened to their ideas and concern.
 Some of the employees felt that the workload was reasonable and the deadlines set to
achieve targets were reasonable.
 From the study it was found that the employees were satisfied with the working
conditions. Being employed in a manufacturing company employees felt that they
were able to carry out their work without much strain.
 Gender did not play a role in the way employees perceived their value in the
organization. Their perception about being valued as an employee was based on their
individual character and not on their gender.
 Majority of the employees felt that they were underpaid. They felt that they were paid
less when compared to the responsibility they take.
 Some employees felt that there was no balance between their work and personal lives.
 By analyzing the data it was found that there was a strong positive correlation
between individual responsibility and effective group performance. It was also
observed that the level of job satisfaction correlated with the challenging nature of the
job.
SUGGESTIONS AND RECOMMENDATIONS
Majority of the employees were not satisfied with their present salary .The company
can take this into account while revising the pay for the employees. The company could try to
provide some monetary benefits to the best performer.
Employees felt that their new ideas related to work were not encouraged. The
company could encourage the employees to give their ideas related to work. This way both
the company and the employees are benefited. The company could get some novel ideas and
the employees would be more participative.
The employees felt that the company did not respond to their grievances immediately. Hence
the company can adopted some grievance handling procedure that is best suited for the
company.
Some employees felt that there was no balance between their work and personal lives. The
company could look into this aspect and train the employees on better time management.
CONCLUSION
From this study it was found that employees at Heritage Foods (P) Ltd., Hyderabad
had a positive perception on many areas of the organizational functioning such as working
conditions of the employees, reporting structure, work process, deadlines set and gender
equality. However, there were areas about which the employees had a negative perception
like salary benefits, scope for individual initiative and balance between work and personal
life.
SCOPE FOR FURTHER STUDY
The study would act as a reference for further in-depth research on employee
perception.
The results of this survey can be submitted to the company. The management can look into
the negative aspects in the perception of employees and initiate remedial measures to address
the same. Improving the employee perception would go a long way in promoting the quality
of production.
Further focused research on the identified negative areas such as salary package can
help the management formulate better and employee friendly pay structures
BIBILIOGRAPHY
BOOKS
 Robbins Stephen r, seema sanghi -Organizational Behavior, Dorling Kindersley

(India) Pvt.Ltd
 Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New
Age international (P) Ltd., Publishers, Second Edition,2004.
 Gupta, S.P., Statistical Methods, New Delhi, Sultan Chand & Sons Publishers, Thirty
Fourth Edition, 2005.
 Chandran,jit S.-Organisational Behaviour
 Keith davis - Organisational Behaviour-Human Behaviour at work
 Jeff,harris- managing people at work; concepts and cases in interpersonal behavior.
WEBSITES
 www.citehr.com
 http://www.mangamentorg.com/
 www.perception.org/perception/about.html
 www.answers/topic/perception.com
 www.allacademic.com/meta/p91956_index
 www.springerlink.com/index
ANNEXURE-1
1: Disagree Strongly 2: Disagree somewhat 3: Neutral 4: Agree somewhat 5: Agree

Strongly
Your choice
# Category/Question
1 2 3 4 5
A. Organization Design
1 The organization’s goals and objectives are clear to me.
2 Roles and responsibilities within the group are understood
3 Clear reporting structures have been established.

B. Individual Job Characteristics
4 I gain satisfaction from my current job responsibilities.
5 I have the opportunity to further develop my skills and abilities
6 I feel my job is challenging.
7 My direct supervisor makes sure I have clear goals to achieve.

Strongly
Your choice
# Category/Question
1 2 3 4 5
8 My direct supervisor listens to my ideas and concerns

C. Interpersonal relationship Relations
Knowledge and information sharing is a group norm across the
9 organization
10 Employees consult each other when they need support

Individuals appreciate the personal contributions of their co-
11 workers.
12 Disagreements are not taken personally

D. Culture
13 Do you feel valued as an employee?

14 Quality is a top priority in the company
15 Individual initiative is encouraged in the company
16 Nothing keeps me from doing my best every day
E. Senior Management
17 Management sets high standards for us to achieve.

18 Management treats employees fairly
19 Does the management recognize the work done by you?
F. Work Processes
20 Everyone here takes responsibility for their actions

21 My work group operates effectively as a unit
22 We use efficient work processes when performing our jobs
G. Work environment
23 I believe my job is secure

24 My physical working conditions are good
25 Deadlines set in the company are realistic
26 My workload is reasonable
27 I can keep a reasonable balance between work and personal life
H. Pay and benefits
Strongly
Your choice
# Category/Question
1 2 3 4 5
28 If I do good work I can count on making more money

29 My salary is fair for my responsibilities
30 Are you satisfied with the following welfare measure?
a. Amount of vacation o Yes o No

b. Sick leave policy o Yes o No
c. Amount of health care paid for o Yes o No
d. Health check up o Yes o No
 The followings are for analytic purpose only & it will not be used to identify any individual.
Personal details
a. Age : Years
b. Sex : o Male o Female
c. Marital status : o Married o Single
d. Department :
e. Year of service in this company: o Less than 2 yrs o 2-5 yrs o More than 5 yrs

Chapter I Introduction: Employee Peception - Heritage Foods

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Chapter I Introduction: Employee Peception - Heritage Foods

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EMPLOYEE PECEPTION _ HERITAGE FOODS

Changing an employee's perception of his place within a company is sometimes an effective

Perceptions Affecting Motivation

Why is perception important in the workplace?

 Fundamental attribution error: The tendency to underestimate the influence of

The process of perception is a process by which an individual selects, organizes, interprets,

• Information attention and Selection

Information Organization The cognitive scaffolds that characterize organized information

Interpretation of Information The information is interpreted by the perceiver depending on

Retrieval of Information The information attention and selection, organization and

In employee relations, perception is a major factor. Most of the times, it is formed by

FACTORS INFLUENCING PERCEPTION

Factors in the perceiver

Factors in the situation

Factors in the target

1. Provide Leadership. Perhaps no role of HR is more important than to serve as a leader

EMPLOYEE ENGAGEMENT STARTS WITH EMPLOYEE PERCEPTION

OBJECTIVES OF THE STUDY

1. To understand the employee perception with regard to various organizational aspects

of Heritage Food Private Ltd.

1. To know the level of employee satisfaction based on their perception.

2. To learn what the employees perceive about the management.

3. To know about the interpersonal relationship among the workers.

4. To identify various other factors influencing employee perception.

4.3 QUESTIONNAIRE CONSTRUCTION

A comprehensive questionnaire covering all aspects of the organizational function

Questionnaires were constructed based on the following types

 Closed ended questions

DEFINING THE POPULATION

50 samples were taken from Heritage Foods Private Limited, Hyderabad.

LIMITATIONS OF THE STUDY.

The different limitation of the study is given below-

The Reality of Perception in Employee Relations

Journal: The Learning Organization

Compensation or Right: An Analysis of Employee “Fringe” Benefit Perception

Exploring Employee Perception of Organizational Image: An Integrative Perspective of

Employees’ Organizational Commitment and Their Perception of Supervisors’

Social Interaction and the Perception of Job Characteristics in an Organization

James W. Dean, Jr. Daniel J. Brass

Md. Shafiqul Azam, Pro-Tech Search, Inc.

Comparative Analysis of Management and Employee Job Satisfaction and Policy

Charles G. Andrews, B. A., M. S.

According to the author, there is no statistically significant differences between the

perception of nonmanagement employee job satisfaction and management job satisfaction as

The Indian Retail Market

Major Indian Retailers

About the founder:

Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic,

Forward looking statements:

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

To be a preferred employer by nurturing entrepreneurship, managing career aspirations and

When you are healthy, we are healthy

When you are happy, we are happy

We live for your "HEALTH & HAPPINESS"

Quality policy of HFIL:

We are committed to achieve customer satisfaction through hygienically processed

Adhering to its moral commitment and its continuous drive to achieve

Change in life styles of rural families in terms of:

 Regular high income through co-operative efforts.

 Timely Supply of Quality & Healthy Products

Consistent Dividend Payment since Public Issue (January 1995)

 Potential Employment Generation

More than 3500 employees are working with heritage