CHAPTER I

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1.1.INTRODUCTION

1.1.1.OBJECTIVES OF THE STUDY:

Primary Objective:
To transform the theoretical learning into conceptual understanding, by observing the functioning of the organization.

Secondary Objective:
o To understand the Organizational behavior- which includes the behavior as individuals and as groups. o To analyze,identify the strategies and structure of the Organization. o Observe the functioning of various departments of the Organization. o To understand the functioning of organization in the real business world.

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INDUSTRY PROFILE

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1.2.INDUSTRY PROFILE
The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 20% of the total exports. Being the largest foreign exchange earner, accounting for more than 5 per cent of GDP and providing direct employment to 38 million people, primarily the weaker sections, it is the second most important sector only after agriculture. The No.1 exporter of textiles, China, has a share of more than 10 per cent followed by Korea with 8.1 per cent; India's hovers at 3.5-4 per cent. In clothing exports, China holds a share of 18.5 per cent followed by Italy (6.7 per cent) and India (3 per cent). India's share may look small but in monetary terms it is large. It has a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing; it is a major contribution to the country's economy. The industry is composed of handlooms, powerlooms and mills. While the mill sector is well-organised and modern, the same cannot be said of the powerloom and handloom segments. The mill sector has managed to grab a reasonable share of the world export market. 1.2.1Textile world scenario Although the development of textile sector was earlier taking place in terms of general policies, in recognition of the importance of this sector, for the first time a separate Policy Statement was made in 1985 in regard to development of textile sector. The textile policy of 2000 aims at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion. The main markets for Indian textiles and apparels are USA, UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan. The mood in the Indian textile industry given the phase-out of the quota regime of the MultiFibre Arrangement (MFA) is upbeat with new investment flowing in and increased orders for the industry as a result of which capacities are fully booked up to April 2005. As a result of various initiatives taken by the government, there has been new investment of Rs.500 billion in the textile industry in the last five years. Nine textile majors invested Rs.26 billion and plan to invest

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another Rs.64 billion. Further, India's cotton production increased by 57% over the last five years; and 3 million additional spindles and 30,000 shuttle-less looms were installed. The textile industry is undergoing a major reorientation towards non-clothing applications of textiles, known as technical textiles, which are growing roughly at twice rate of textiles for clothing applications and now account for more than half of total textile production. The processes involved in producing technical textiles require expensive equip ments and skilled workers and are, for the moment, concentrated in developed countries. Technical textiles have many applications including bed sheets; filtration and abrasive materials; furniture and healthcare upholstery; thermal protection and blood-absorbing materials; seatbelts; adhesive tape, and multiple other specialized products and applications. 1.2.2.Indian Textile Industries Indias textile industry comprises mostly small-scale, non-integrated spinning, weaving, finishing, and apparel-making enterprises. The figure below depicts the overall value chain and the number and type of units within the industry. No. of small scale units : 1,161 Hand looms - 3.9 million Processing Units: 2,100 small scale units :77,000 large scale units : 1,566 Powerlooms - 1.8 million Organized sector - 0 1 million

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1.2.3 GOVERNMENT REGULATIONS AND SUPPORT

1.2.3.1 Government Initiatives The Technology Upgradation Fund Scheme (TUFS) Integrated Textile Parks Scheme Scheme for Handlooms Health Insurance Scheme

1.2.3.2 Quality Improvement The Textile Commission, under the Ministry of Textiles, facilitates firms in the industry to improve their quality levels and also get recognised quality certifications. Out of 250 textile companies that have been taken up by the Commission, 136 are certified ISO 9001. The other two certifications that have been targeted by the Textile Commission are ISO 14000 Environmental Management Standards and SA 8000 Code of Conduct Management Standards. 1.2.3.3 Foreign Direct Investment (FDI) Policy 100% FDI is allowed in the textile sector under the automatic route. FDI in sectors to the extent permitted under automatic route does not require any prior approval either by the Government of India or Reserve Bank of India (RBI). The investors are only required to notify the Regional Office concerned of RBI within 30 days of receipt of in word remittance. Ministry of Textiles has set up FDI Cell to attract FDI in the textile sector in the country. The FDI cell will operate with the following objectives: To provide assistance and advisory support (including liaison with other organisations and State Governments) Assist foreign companies in finding out joint venture partners To sort out operational problems

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Maintenance and monitoring of data pertaining to domestic textile production and foreign investment

1.2.4 OPPORTUNITIES AND CHALLENGES

1.2.4.1 Opportunities Indias strong performance and growth in the textiles sector is aided by several key advantages that the country enjoys, in terms of easy availability of labour and material, buoyant and large market demand, presence of supporting industries and supporting policy initiatives from the government. These advantages can be exhibited within the framework given in the figure below, and are further discussed in the subsequent sections. 1.2.4.2 Textile machinery The Indian textile engineering industry, which began as an offshoot of the textile industry, is today reckoned as the largest segment in the country. Indian textile machinery manufacturers are able to produce at competitive prices sophisticated machines of higher speed and production capability. The textile industry also gets significant support from the well developed IT capabilities of Indian firms. 1.2.4.3 Industry competition promotes innovation

Despite a large and growing market, the presence of a large number of small scale players makes the Indian textile Industry highly competitive. A number of MNCs have also entered India in different areas. The high level of competition in the industry impels the firms to work to increase in productivity and innovation. India today is one of the lowest cost manufacturers of quality textiles, not only due to its inherent strengths, but also because industry rivalry has prompted firms to focus on quality improvement, cost reduction and productivity increase.

1.2.4.4 Challenges The Indian textile industry faces a host of constraints:

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 Fragmented structure with the dominance of the small scale sector High power costs Rising interest rates and transaction costs Unfriendly labour laws Logistical disadvantages in terms of shipping costs and time pose serious threats to its growth Foreign investments are not coming in as the overall factors influencing the industry are not investment friendly

1.2.5. Lakshmi Machine Works(LMW)

Lakshmi Machine Works Ltd.,has been consistently at the forefront of technological advancements in textile machinery. Over a period of time, the company has gained a worldwide reputation for its state-of-the-art technology and high quality standards. LMW has a major role as a totally integrated spinning system manufacturer. One can be assured of the unique LMW brand excellence on every product. Spinning machines from LMW contributes to a large extent in keeping production costs down and quality standards up. When it comes to replacement of parts it makes all the more sense to source original spare parts from LMW to optimize machine reliability, ensure quality and performance more importantly to ensure accurate interaction with other machinery parts. In short what you get is real value for money. LMW diversified into CNC Machine Tools and is a brand leader in manufacturing customized products. LMW Foundry makes Precision Castings for industries the world over. The only company in Asia outside Europe to manufacture OE products for Mikron of Switzerland.LMW's Global presence has grown over the years, with a market presence not only in developing countries, but also in Europe. LMW has won the Top Export Award in textile machine exports for the past seven years.

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All divisions of LMW are ISO 9000 certified. 1.2.5.1 Quality Policy

To establish global presence in spinning systems by providing Quality services and state of the art machinery that enhance value and customer satisfaction through company-wide efforts in continual improvement of People, Systems, Processes, Technology and Practices. 1.2.5.2 Environmental Policy

LMW is committed to the protection of environment and conservation on of natural resources, as a Service to the Future Generations.

LMW shall strive to achieve Environmental Excellence through:

Compliance with applicable legislative and other requirements and go beyond compliance to good practices on environmental management

Periodic reviews of its environmental performance and minimizing the environmental impacts, while achieving its business objectives

Protection of air, water, land and biodiversity and engaging with the community and business associates on environmental issues of mutual interest

Waste minimization, energy conservation and recycle and reuse of resources like water and sand

Provision of management tools, awareness and training to employees for continual improvement in its overall environmental performance.

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COMPANY PROFILE

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1.3. COMPANY PROFILE

LECS is a part of 700 crore,LMW group of companies in public Ltd company with sales turnover of Rs.30 crore.It has a work forece of 251,located at Arasur,23 Km from

Coimbatore,Tamil Nadu. LECS was established in 1981.The company had technical collaboration with Sprecher +schuh AG,Switzerland(now a company of Allen-Bradely,USA)One of the leading manufacturer of low tension switchgear items in the world for manufacture of contactors and Over-load Relays and continued to make products to the design and standards of Sprecher+schuh.The products are manufactured to be latest European design and standards in their most sophisticated plant,unique in style,located in Coimbatore. During the year 1991,The company diversified to manufacture CNC system in collaboration with Allen-Bradely ,S.R.I Haly,LECS is equipped with latest state of the Art Equipments to make highly precise in Engineering plastic and metal components,control panels etc. 1.3.1 COMPANY HISTORY:Year,Events 1981-The company was incorporated on 3rd Dec.It has been promoted by Dr.G.K.Devarajulu and D.Jayavarthanavelu along with LMW Ltd.It manufactures and deals in Electrical control systems ,contractors,Thermal over-load,Relays etc. 1984-350 no.of equity shares subscribed by the signatories to the Memorandum and Article of Association.20,000-131/2 % ,preferencial shares and 479650 no of equity shares were reserved and allotted to promoters etc.7,20,000 no.of equity shares were offered at pair for public subscription during Jan 1984. 1992-12,00000 Right shares issued in Apr-May (prop 1:1,prem Rs.40).Another 60,000 shares issued at a premium of Rs.40 per share. 1996-The company entered into an alliance with Allen-Bradely India Ltd.Part of Rock Well Automation for the supply of contactors over-load Relays and control Relays. 2002-Nethra Kumar appointed as whole time director of LECS.The group operates in four segments Electricals,Plastics,Textiles and WindPower generation.

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Buisness Group: Lakshmi Group Coimbatore. Industry Type : Electric Equipment-SwitchGear/Circuit Breater. 1.3.2 Key Officials Mr.Nethra JS Kumar Mr.R.Venkatarangappan. Mr.G.Rangasamy. Dr.D.Jayavardhananvelu. Mr.V.J.Jayaraman. Mr.N.Surya Kumar. Mr.D.Senthil Kumar. Mr.Sanjay Jayavardhanavelu Sales Office:Office are in Chennai, Madurai, Rajapalayum, Erode, Chadisgarh, Kolkatta, Bangalore, Guntur, Ahemadhabed. Whole time Director Director Director Chairman/chairperson Director Director Director Director

1.3.3Major Products:-

Control panel assembly. Switchgear Assembly. Plastic and Metal components.

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Major Vendors out of the 500 Approved vendors are: Companies Schneider Electrical Finolex Cables Elmex controls O/E/N connectors Connect well Item MCB Cables and wires Connectors terminal Relays,connectors Connectors,connectors terminals

Major Customers: LMW units-I,II,III,IV etc VISION To enhance customer satisfaction and our image globally and achieve exponential growth to leadership through world class products and service.

MISSION To deliver greater value to our customers by providing complete competitive solutions through technological leadership and manufacturing excellence that are responsive to dynamic market needs

VALUES o Excellence o Integrity o Learning and sharing o Contribution to industry and society

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1.3.4.Quality

To constantly endeavour to bring out outstanding quality products by continual improvement in maintaining standards and systems. To monitor and achieve the quality to satisfy the customer needs through statistical analysis To ensure that all employees uphold the principles of this commitment

1.3.5.Certificate

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CHAPTER II

ORGANISATIONAL PROFILE

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2.Organisation Structure

Fig 2.1Organizational flow chart.

Organisation Profile Production Department Marketing Department Financial Department Human Resource

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CHAPTER III

PRODUCTION DEPARTMENT

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3.Production Department
In production Department they produce Electrical components which are used in Textile machines,most of the components were sent to LMW units I,II,III,IV.the switch gear,control panels,and plastic components are produced. there are seven divisions,they are as follows.

Swithgear division Control panel division Metal division Plastic division Tools division Storage division Maintenance division

In LECS,they produce the following products. Types of Products: 1.LV SWITCHGEAR 2.CONTROL PANELS 3.ENGINEERING PLASTIC COMPONENTS 4. METAL COMPONENTS 5. ROBOTICS & SPM 6. MOTOR PROTECTION & CONTROL DEVICES

3.1.LV SWITCHGEAR

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CONTACTORS CONTROL RELAYS THERMAL OVERLOAD RELAYS CAPACITOR DUTY CONTACTORS LIMIT SWITCHES ACCESSORIES

3.1.1.CONTACTORS:

Features:

Covers up to 41Kw industrial application Compact, space saving and modular Easy and simple direct mounting with Thermal overload relay Snap-on accessories available in many configurations Easy coil change Designed for easy, safe installation and maintenance

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3.1.2 CONTROL RELAYS

Features:

Contactors are suitable for three phase AC-6b duty. High permissible switching frequencies. Mounting on DIN rails / dual mounting optical. Finger and back of hand proof according to VDE-016. Ideal for switching a number of Banks without de rating. High electrical and mechanical life.

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3.1.3. THERMAL OVERLOAD RELAYS

Features: Consistent & reliable protection Selectable manual / Automatic mode Phase failure protection Individual mounting with socket/ Direct mounting with contactor Outstanding reliability as a result of simple, ingenious design Trip class 10

3.1.4.LIMIT SWITCHES

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Features:

The design and constructions are rugged, compact, versatile and also modular for interchangeability

With a stout heat (contact system) in Aluminium pressure die-cast body for enduring performance.

With plunger or Rotary or Multi-directed actuation Contact systems - Snap action or slow action available in all executions Products Confirm to IEC-947 Degree of protection IP 67

3.1.5.ACCESSORIES

3.2.CONTROL PANELS LECS are one of the leading manufacturers of control panels for many applications. Our control panel division includes designing, manufacturing and installation. We also undertake the assignment of power study and provide solutions to control the power factor and harmonics.

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We are specialized in building the following panels:

APFC Panels Energy Saver - Lighting Textile Machinery Panels CNC Machining Centre Panels Motor Control Panels Star-Delta Starters Direct On Line Starters Speed Control Panels

3.3.ENGINEERING PLASTIC COMPONENTS Thermo plastic injuction molding,GF-RM materials for Switchgears. 3.4. METAL COMPONENTS

LECS manufactures high precision press components and critical sub assemblies for Low voltage switchgear Products. Power presses ranging from 16 T - 100 T.LECS specialized in handling non-ferrous materials like Brass, Copper, Beryllium copper, Aluminium and ferrous materials like Stainless steel, Low and medium carbon steels to produce precision press components.

3.5.ROBOTICS & SPM

Consistent and superior quality of production Reduced cycle time - increase in production Savings in energy consumption

3.6. MOTOR PROTECTION & CONTROL DEVICES

AUTO SWITCH PHASE PROTECTION RELAY KARUNYA SCHOOL OF MANAGEMENT

ELECTRONIC TIMER THERMISTOR PROTECTION RELAY VOLTAGE MONITORING RELAY

3.7.AUTO SWITCH Features

Single Phasing Prevention Reverse Sequence Protection Unbalance Protection Power ON Delay Auto / Manual Mode LED trip indication

Applications

Star Delta starter panels Air compressors All rotating machines AMF panels LT power distribution panels

3.PHASE PROTECTION RELAY Features

Single phasing prevention Reverse sequence protection Unbalance protection

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Microcontroller based Power on delay

Applications

Air compressors AMF panels LT power distribution panels All rotating machines

ELECTRONIC TIMER Features

ON Delay Operation Cyclic Operation Universal Supply voltage AC or DC, 24 V to 230 V Micro controller based Sleek Design

Applications

Factory automation Process control AMF panels Printing, Processing and moulding machines Special purpose machines Electrical panels

THERMISTOR PROTECTION RELAY

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Features

Open sensor circuit protection. Short sensor circuit protection. Manual Reset. Test switch to simulate the fault condition. Protects up to 4 motors.

Odering code

Single Channel - TPR-1C Four channel - TPR-4C Four channel DC - TPR-L-4C

VOLTAGE MONITORING RELAY Features

Over Voltage Protection Under Voltage Protection Phase Failure Protection Reverse Sequence Protection Selectable Trip Time Selectable AUTO / MANUAL activation of load Reset Switch for Manual activation of load Separate Indications for POWER, AUTO, MANUAL, OV, UV, PF, and RS. AMF panels Compressors control panels Induction heater control panels LT power distribution panels Motor protection.

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3.7.SIX SIGMA 3.7.1WHAT IS THIS SIX SIGMA ? A Philosophy > make fewer mistake in all that we do helps gage adequacy of product, process and services good quality reduces cost A measuring system

A Statistical Measurement > A Business Strategy A Metric > >

TO UNDERSTAND SIX SIGMA IT IS IMPERATIVE TO UNDERSTAND A FEW STATISITICAL TERMS

THE PARADIGM SHIFT Speed + Cost q speed+ Quality cost

Changing paradigm

quality

3.7.2.WHY SIX SIGMA? 2 unsafe landings at major airports Heart fails to beat 32000 times a year 12 babies given to wrong parents each day

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1600 lost pieces of mail per hour 500 incorrect surgeries performed each week (99.9%(4 SIGMA) IS NOT GOOD ENOUGH)

3.7.3.SIGMA AND PPM ARE CORRELATED

Sigma

DEFECTS PER MILLION

2 3 4 5 6

308537 66807 6210 233 3.4

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Sweet fruits design Bulk of fruits process characterisation low hanging fruits 7basic tools Logic and intuition Quick hits

process limitation 4

Fig 3.7.3 3.7.4.THE GOALS OF SIX SIGMA TO REDUCE VARIATION TO REDUCE DEFECTS TO IMPROVE YIELD TO ENHANCE CUSTOMER SATISFACTION TO IMPROVE THE BOTTOMLINE

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3.7.5.UNDERSTANDING IMPACT OF SIX SIGMA QUALITY

ERROR

FOR A 3 SIGMA PROCESS

FOR A 6 SIGMA PROCESS

Wrong drug prescription Newborn babies dropped by doctors unsafe drinking water No TV transmission Short or long landing at an Average airport Incorrect surgical operations Articles of mail lost

5400 every year 40500 per year

1 in every 25 years 3 per 100 years

2 hours each month 27 minutes each week 5 per day

1 second every 16 years 1 in 10 years

1 in 20 years 1350 per week 54000 per hour 35 per year

THE FOCUS OF SIX SIGMA Y = f(X)

Y Dependent variable Output of the process Effect Symptom > X1,X2,..,Xn > Independent variable > Input to the process > Cause > Problem

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3.8 5s is the fist step of any improvement

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3.8.1Eight type of wastes Over production Waiting Unnecessary transport Over processing/ incorrect processing Excess inventory Unnecessary movement Defects Unused employee creativity

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3.9.Quality management Two type of quality quality control quality assurance

Quality control: Part of the quality management focused on fulfilling quality requirements the quality control. Quality assurance: Part of the quality management focused on providing confidence that quality assurance. 3.9.1Quality improvement project. 3.9.1.1Completed project. Reduce rework on numerical relays during final inspection, improved from 3.21 to 4.55 sigma. To reduce the functional error during customer inspection, improved from 1.73 to 4.55 sigma. Improve customer feedback regarding test ceritcate folder improved from 2.07 to 3.28 sigma. Wire savings for TF3 PCC harness savings of around 3 lakhs per annum. Terminal re-arrangement in thunder PCC, saving of 1.8 lakhs.

3.9.1.2.Ongoing project. Reduction of land time for switchboard manufacturing. Improve rework index for in house switchboard. Improve rework index for switchboard manufacturing index simser(vendor) Implementation of incoming inspection in all vendor place.

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LECS QUALITY POLICY: Products and services offered by us shall be amongst the best in class. Responsible corporate behavior in the conduct of business. Measures to all fair Expectation of stake holders in the company.

LECS QUALITY OBJECTIVE: We shall endeavor to earn customer satisfaction rating scores excelling 90% on our Products and services -RCH Reddy

3.9.2.MAINTENANCE FLOW CHART OF LECS: Tools development(LECS):

Receipt of Mail

Receipt of Drawing

Design and Drawing work

Tool manufacrturing

Trails

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Inspection

Ok/not OK

Tool handover

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3.9.3.Tool maintenance(LECS):

Receipt of notification

Receipt of tool with

Report/sample

Analysis

Corrective Action

Tool/mould hand over to production

Trial

Inspection

OK/NOT OK

Notification

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3.9.4PLANT MAINTENANCE OF LECS:

Plant maintenance

Predictive maintenance

Preventive maintenance

Periodic.M

Routine.M

Periodic repair

Periodic examination

Periodic inspection

cleaning

Lubrication

tightening

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HUMAN RESOURCE DEPARTMENT

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Mr.A.Murugesan is the HR Manager for LECS,and the process handeled by him in regaurding HR process were as follows, Handling Grievance & Discipline Employee Relationship Requirement & selection Employee training & development Non statutory welfare schemes

4.1.Handling Grievance & Discipline Problems with employees may arise from time to time in even the best run businesses, occasionally you may need to take disciplinary action against employees or deal with their grievances but its better to look at ways of preventive problems arising in the first place. If problems to arise, deal with them rather then let them fester into resignations and/or tribunal claims. Disciplinary and grievance procedures should be an aid to good management. Have clear written procedures and polices that are known and understood by all workers. Also, make sure you distinguish between discipline on conduct grounds and your procedure to improve performance though this may eventually require disciplinary action if performance does not improve. This guide is designed to show what you need to put in your procedures, how to handle disciplinary and grievance issues in practices, and the disciplinary action available to you. 4.1.1.Handling a grievance When dealing with a grievance: Ensure youre familiar with the procedure and apply it correctly Hold any grievance hearing in private without imerruptions Were a grievance relates to the persons line manager, ensure that the employee can raise the grievance someone else.

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Listen carefully to the persons explanation of the problem and consider whether there is deeper issue which might be the root cause of the grievance. Weigh up all evidence to see whether there is an issue need to address Decide what action to take, trying to balance fairness to the person without compromising the business or other workers. Inform all concerned parties of your decision and the appeal process. Ensure you resolve any problem relating to polices, procedures or conduct where the grievance procedure highlights these. Keep the process as confidential as possible.

If a workers raise a separate grievance during a disciplinary hearing, its good practice to adjourn the hearing until the grievance is dealt with. By dealing with problems in a fair and reasonable manner, youre much less likely to lose valued and skilled staff through resignation. It will also help you successfully defend a constructive dismissal claim. From October 2004 you will have to follow minimum grievance procedures. For more information on changes in the law, see discipline and grievance procedures and the employment contract. 4.2.Employee relationship The success and failure of any organization is directly proportional to the labour put by each and every employee. The employees must share a good report with each other and strive hard to realize the goal of the organization. They should complement each other and work together as a single unit. For the employee the organization must come first and all their personal interests should take a back seat. What is the employee relationship? Every individual shares a certain relationship with has colleagues at the work place. The relationship is either warm, so-so or bad. The relationship can be between any one in the organization between to workers, between any employee and his superior, between two numbers in the management and so on. It is important that the employees share a healthy relationship with each other to deliver their best performance.

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An individual spends his maximum time at the workplace and his follow workers are the ones with whom he spend the maximum hours in a day. No way can he afford to fight with his colleagues. Conflicts and misunderstandings only add to tension and turn decrease the productivity of the individual. One needs to discuss so many things at work and needs the advice and suggestions of all to reach to a solution which would benefit the individual as well as the organization. No individual can work along. He needs the support and guidance of his fellow workers to come out with a brilliant idea and deliver his level best. Employee relations refer to the relationship shared among the employee in a organization. The employees must be comfortable with each other for nealthy environment at work. It is the prime duty of the superiors and team leaders to discourage conflicts in the team and encourage a healthy relationship among employees. Life is really short it is important that one enjoys each and every moment of it. Remember in an organization you or paid for your hard work and not for cribbing or fighting with each other. Dont assume that the person sitting next to you is your enemy or will do any harm to you. Who says you cant make friends at work, infact one can make the best of friends in the office. There is so much more to life than fighting with each other. Observation says that healthy relation among the employees goes a long way in motivating the employees and increasing their confidence and morale. One starts enjoying his office and dose not take his work as a burden. He feels charged and fresh the whole day and takes each day at work as a new challenge. If you have good relation with your team members you feel going to office daily. Go out with your team members for get together once in a while or have your lunch together. These activities help in strengthening the bond among the employees and improve the relations among them.

4.3.Recruitment & Selection 4.3.1.OBJECTIVE OF PROJECT

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In basic idea behind selecting the topic of Employee Hiring is to study how employees are hired. Today organizations are coming up with the new techniques of hiring people. Hence to study how the actual process is carried in the organization. Research methodology This project aims the finding out and analyzing the hiring process in the organization. The method of approach adopted for the same, would be as follows: 1. To wok out the various steps and procedures involved. 2. To contacts various companies and collect information 3. To collect the information secondary like magazines, newspapers, internets Importance and scope 1. This projects will provide a value insight to student on the topic. 2. This project will help to get the practical knowledge in employee hiring in the organization. 3. The project will equip me for my future in H. R. M. Limitation 1. Organization did not disclose full information. 2. Data collected in this field are not sufficient. 4.3.2.EXTERNAL FACTORS Like internal factors, there are some factors external to organization, which have their influence on recruitment process. Some of these are given below:- Demographic factors As demographics factors are intimately related to human beings, i.e. employees, these have profound influence on recruitment process. Demographic factors include age, sex, Literacy, economics status etc . Labor market Labor market condition I.e. supply and demand of labor is of particular importance in affecting recruitment process. E.g. if the demand for specific skill is high relative to its supply is more than for particular skill, recruitment will be relatively easier. Unemployment situation The rate of unemployment is yet another external factor its influence on the recruitment process. When the employment rate in an area is high, the recruitment process tends to simpler. The reason is not difficult to seek. The number of application is expectedly very high which makes easier to attract the best-qualified applications. The reserve is also true. With low rate of unemployment, recruiting process tend to become difficult . Labor laws There are several labor laws and regulations passed by the central and state governments that govern different type of employment. These cover working condition, compensation, retirement benefits, safety and health of employee in industrial undertakings. 4.3.2.INTERNAL SOURCES Present employees: Promotions and transfer from among the present employees can be good sources of recruitment. Promotion implies upgrading of an employee to a higher position KARUNYA SCHOOL OF MANAGEMENT

carrying higher status, pay and responsibilities. Promotion from among the present employees is advantageous because the employees promoted are well acquainted with the organization culture, they get motivated and it is cheaper also. Promotion from among the person employees also reduces the requirement of job training. However, the disadvantage lies in limiting the choice of the few people and denying hiring of outsiders who may be better qualified and skilled. Furthermore, promotion from among present employees also results in inbreeding, which creates frustration among those not promoted. Transfer refers to shifting an employee from one job to another without any change in the position/post, status and responsibilities. The need for transfer is felt to provide employees a broader and carried base, which is considered necessary for promotion.

4.3.3.DISADVANTAGES: The main drawback associated with the internal recruitment is as follows: Limited choice: Internal recruitment limits its choice to the talents available within the organization. Thus, it denies the tapping of talents available in the vast labor market outside the organization. Moreover, internal recruitment serves as a means for inbreeding, which is never healthy for the future organizations. Discourage competition: In this system, the internal candidates are protected from competition by not giving opportunity to otherwise competent candidates from outside the organization. This in turn, develops a tendency among the employees to take the promotion without showing extra performance. Stagnation of skills: With the feeling that internal candidates will surely get promoted, their skill in the long run may become stagnant or obsolete. If so, productivity and sufficiency of the organization, in turn, decreases. Creates conflicts: Conflicts and controversies surface among the internal candidates, whether or not they deserve promotion. RECRUIMENT PROCESS As stated earlier, recruitment is the process of location, identifying, and attracting capable applications for jobs available in an organization. Accordingly, the recruitment process comprises the following five steps: Recruitment planning; Strategy Development; Searching; Screening; Evaluation and Control. Recruitment Planning: - The first involved in the

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recruitment process is planning. Hire, planning involves to draft a comprehensive job specification for the vacant position, outline its major and minor responsibilities; the skills, experience and qualifications needed; grade and level of pay; starting date; whether temporary or permanent; and mention of special condition, if any, attached to the job to be filled. Strategy Development:- Once it is known how many with what qualification of candidates are required, the next step involved in this regard is to device a suitable strategy for recruitment the candidates in the organization. The strategic considerations to be considered may include issues like whether to prepare the required candidates themselves or hire it from outside, what type of recruitment method to be used, what geographical area be considered, for searching the candidates, which source of recruitment to be practiced.

4.4. METHODS OF RECRUITMENT Recruitment methods refer to the means by which an organization reaches to the potential job seeker. It is important to mention that the recruitment methods are different from the resources of recruitment. The major line of distinction between the two is that while the former is the means of establishing links with the prospective candidates, the latter is location where the prospective employees are available. Dunn and Stephen have broadly classified methods of recruitment into three categories. These are; Direct Method; Indirect Method; Third Party Method. Brief descriptions of these are follows: Direct Method: In this method, the representatives of the organizations are sent to the potential candidates in the educational and training institutes. They establish contacts with the candidates seeking jobs. Person pursuing management, engineering, medical, etc. programmers are mostly picked up the manner. Sometimes, some employer firm establishes with professors and solicits information about student with excellent academic records. Sending the recruiter to the conventions, seminars, setting up exhibits at fairs and using mobile office to go to the desired centers are some other methods used establish direct contact with the job seekers. 4.4.1.Indirect Method: Indirect methods include advertisements in the newspaper, on the radio and television, in professional journals, technical magazines, etc. this method is useful when Organization dose not

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find suitable candidates to be promoted to fill up the higher posts, When the organization want to reach out a vast territory, and When organization wants to fill up scientific, professional and technical posts. The experience suggests that the higher the position to be filled up in the organization, or the skill sought by the sophisticated one, the more widely dispersed advertisement is likely to be used to reach too many suitable candidates. Sometimes, many organizations go for what referred to as blind advertisement in which only Box No. is given and the identity of the organization is not disclosed. However, organizations with regional or national repute do not usually use blind advertisements for obvious reasons. While placing an advertisement to reach to the potential candidates, the following three points need to borne in mind: To visualize the type of the applicant one is trying recruit; To write out a list of the advantages the job will offer; To decide where to run the advertisement , i.e., newspaper with local, state, nation-wide and international reach or circulation. 4.4.2SELECTION Selection is the process of picking individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. A formal definition of Selection is:- It is the process of differentiating between applicants in order to identify (and here) those with a greater likelihood of success in a job. Recruitment and selection are the two crucial in the HR process and are often used interchangeably. There I, however, a fine distinction between the two steps. While recruitment refers to the process of identifying and encouraging prospective employees to apply for jobs, selection is concerned with picking the right candidates from the pool of applicants. Recruitment is said to be positive in its approach as it seeks to attract as many candidates as possible. Selection, on the other hand, is negative in its application in as it seeks to eliminate as many unqualified applicants as possible in order to identify the right candidates. 4.4.3.RECRUITMENT POLICY Recruitment policy of any organization is derived from the personal policy of the same organization. In other words the former is a part of the latter. However, recruitment policy by itself should take into considerations the government reservation policy, policy regarding sons of soil etc., personal policies of other organization regarding merit, internal sources, social responsibilities in absorbing minority sections, women etc. Recruitment policy is like enriching KARUNYA SCHOOL OF MANAGEMENT

the organizations human resources serving the commodity by absorbing the weaker sections and disadvantaged people the society, motivation the employees through internal promotions, improving the employees loyalty to the organization by absorbing the retrenched or laid-off employee or dependents of present former employees etc. The following factors should be taken into consideration in formulating recruitment policy they are:- Government policies. Personal policies of other completion organizations. Organizations personal policies Recruitment sources Recruitment needs Recruitment cost Selection criteria and preference etc.

Steps in selection process

Preliminary screening

Application blank Intelligent test Selection test

Personality test
Knowledge test, work sample. Structured Semi structured Unstructured

Comprehensive interview

Reference check Mail Phone

Physical examination

Personal

Making the selection

Fig 4.4.3.steps in selection process.

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FINANCE DEPARTMENT

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5.Finance deparment : The topics we were going to discuss about LECS FINANCE are as follows, Accounting policy Capital structure Larsen&Toubro balance sheet Profit & loss account

5.1.LECS Accounting policy Account policy is a policy for a firm/company or an industry which is considered to have a notably high subjective element, and that has material impact on the financial statements. These polices are often mandated to be described in detail in specific sections of a companys annual or quarterly reports. Many accounting policy necessarily involve subjective valuations placed on different items in order to allow an observer to get the best possible snapshot of a company by looking at a single balance sheet or profit & loss statement. For example, a bank that has just made a lot of new loans would look good on one report, but if many of those borrowers later failed to pay then a subsequent report would look very bad. So generally accepted accounting principles (GAAP) would require the bank management (and not the accountants) to estimate how many borrowers would fail to pay and include those losses alongside the new loans. While there are many situations common to almost all companies were management must make subjective accounting entries, critical accounting policies often are those particular to an industry or company, and are judged to be even more more subjective then normal. 5.2.Capital Structure An appropriate capital structure is a critical decision for any business organization. The decision is important not only because of the need to maximize returns to various organizational constituencies, but also because of the impact such a decision has on an organizations ability to deal with its competitive environment. The prevailing argument, originally developed by Modigliani and Miller (1958), is that an optimal capital structure exists which balances the risk of KARUNYA SCHOOL OF MANAGEMENT

bankruptcy with the tax savings of debt. Once established, this capital structure should provide greater returns to stockholders than they would receive from an all-equity firm. Despite its theoretical appeal, researchers in financial management have not found the optimal capital structure. The best that academics and practitioners have been able to achieve are prescriptions that satisfies short-term goals. For example, in a recent Harvard Business Review article, readers were left with the impression that the use of leverage was one way to improve the performance of an organization. While this can be true in some circumstances, it fails to consider either the complexities of the competitive environment, or the long-term survival needs of the organization. 5.2.1.Agency Theory One of the defining characteristics of business in the 1990s was the adoption of prescriptions from agency theory to address the managerial excesses of the 1970s and 1980s. The classic agency theory concept was developed by Berle and Means (1932). They observed that ownership and control had become separated in larger corporations as a result of the dilution in equity positions. This situation provided an opportunity for professional managers, as those in control, to act in their own best interest. Today, the central issue for agency theory is how to resolve the conflict between owners and managers over the control of corporate resources through the use of contracts which seek to allocate decision rights and incentives. Managers have a number of incentives to pursue growth-oriented strategic options. The larger the organization, the greater the economic and political power of the top management teams, and the greater the ability of the organization to marshal resources necessary to deal effectively with its competitive and social environment. Also, larger organizations are seen as being able to maintain their freedom from the discipline of the capital markets. As a generalization, it can be said that growth does lead to increasing the wealth of shareholders. However, the concern is that too many of the activities associated with increasing the size of organizations are motivated not by a desire for maximizing shareholder wealth, but by opportunities for the self-aggrandizement of management.

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5.2.2.Competitive Dynamics A distinguishing characteristic of the strategic management discipline is the emphasis it places on the firms competitive environment. An organization must find a match or fit between the demands of its competitive environment and its internal management systems in order to succeed and to survive. The management system and organizational structure most appropriate for any given firm will be a product of the specific set of environmental contingencies being faced. Strategic management also recognizes that the firm has multiple constituencies and objectives, and it accepts that it may not be possible to maximize the returns to all constituencies, or to achieve all objectives. More importantly, strategy is concerned with the long term survival of the organization within its competitive environment. This requires a more complex model of the firm than that envisioned by either finance or economics. These disciplines assume away cognitive limits in their assumption of complete information and efficient markets. Strategic management, on the other hand, accepts the argument that managers are limited in their ability to gather and process information. Therefore, we can say that the choice of capital structure is less a matter of predefined alternatives and more a search for alternatives in a complex and uncertain environment.

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5.3 Balance sheet of LECS mar06 mar07 mar08 mar9 mar10

Sources of funds Total share capital Equity share capital Share application money Preference share capital Reserves Revaluation reserves Net worth Secured loan Unsecured loan Total debt Total liabilities Application of funds Gross block Less: Accum. depreciation Net block Capital work in progress 27.48 27.48 0.00 0.00 4,583.32 29.37 5,640.17 465.79 987.78 1,453.74 6,093.74 mar 6 2,300.68 982.22 1,318.46 286.06 56.65 56.65 0.00 0.00 5,683.85 27.93 5,768.43 245.40 1.832.35 2,077.75 7,846.18 mar 7 2,876.30 1,122.83 1,753.47 471.22 58.47 58.47 0.00 0.00 9,470.71 25.90 9,555.08 308.53 3,275.46 3,583.99 13,139.07 mar 8 4,188.91 1,242.47 2,946.44 699.00 117.14 117.14 0.00 0.00 120.44 120.44 25.09 0.00

12,317.96 18,142.82 24.59 23.29

12,459.69 18,311.64 1,102.38 5.453.46 6.556.03 19,015.72 mar9 5,575.00 1,421.39 4,153.61 1,040.99 955.73 5,845.10 6,800.83 25,112.47 mar10 7,235.78 1,727.68 5,508.10 857.99

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5.3.1.Leverage:

5.4.Remuneration: In addition to the salary and commission, the Managing Director shall also be entitled to

interchangeable perquisites, like furnished accommodation and where accommodation is not provided HRA not exceeding 50% of the salary, gas, electricity, water, furnishings, medical reimbursement, LTA for self and family, club fees, medical insurance etc., in accordance with the rules of the Company, such perquisites being restricted to Rs. 21,00,000/- (Rupees Twenty One Lakhs Only) per annum. For the purpose of calculating

the above ceiling, perquisites shall be evaluated as per Income Tax Rules wherever applicable.

Provision of a Company car with driver for use on Company's business and telephone facility at her residence will not be considered as perquisites. Personal long distance calls

on telephone and use of the car for private purposes shall be billed by the Company to Managing Director.

The

minimum remuneration and perquisites to be paid in the event of loss or

inadequacy of profit in any financial year during the tenure of office shall be as per Schedule XIII of the Companies Act, 1956.

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5.4.1.General Information Nature of the Company has three divisions viz. Electricals, Plastics and Wind Power of commencement of commercial production 1-11-1984. Financial

Generation. Date

Performance based on given indicators

5.4.2.Financial Performance Turnover - Total Income Profit / (Loss) as per P&L Dividend Paid Rate of Dividend (in %)

2010 0315.11 843.91 61.45 25

5.4.3.Business and Operations

Your Directors inform you that the Turnover including other income for the year under review is Rs.9,983.16 Lakhs as against Rs.10,315.11 Lakhs for the preceding year.

However the profit before depreciation and tax for the year under review is Rs.1,441.33 Lakhs as against Rs.1,228.50 Lakhs, due to some changes in the product mix and optimization in the operating costs. The profit before tax is Rs.1,139.36 Lakhs as against Rs.843.91 Lakhs. 5.4.4.Conservation of Energy

1.

Inspite of not being power intensive, your Company enforces strict discipline in

reducing power consumption even for its auxiliary services. 2. Idle running of machinery consuming high power is restricted to the loading and

unloading cycles of the respective machines.

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5.4.5.Industry Structure and Developments

Thanks to the government's fiscal measures and financial stimuluses, in the wake of global financial crisis, the manufacturing industry in India recovered faster than was feared. Though the recovery was not uniform across the businesses, the Textiles and its Machinery Manufacturing sector was nearly back to its usual stride, by the middle of the financial year. This gave us a boost to stage a comeback.

5.4.6.Opportunities and Threats Electricals is fundamental and vital to the entire economic activity and so in a broad sense the scope and opportunities in the field have no bounds. But, the levels of technology and scale of engagement required are mammoth in size, in each of its diverse segments. Smaller players can't think of playing beyond a supportive role. Thus options remain limited and so the margins that can be earned.

5.4.7.Internal Control System and Adequacy The Company has adequate internal control system, commensurate with its size and nature of its business. The management has the overall responsibility for the Company's internal control system to safeguard the assets and to ensure reliability of financial records. The Company has a detailed budgetary control system and periodically the actual performance is reviewed and the deviations are addressed accordingly. The audit

committee reviews all financial statements and ensures adequacy of internal control systems.

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CONCLUSION

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CONCLUSION:

Lakshmi Electrical control systems Public Ltd is still going on with excellent progress and they are declaring with foreign countries also. Their work perfection is good that is the main thing is their sellers in obtaining such a well reputed name in India. LECS finally started to take over the corporation on such and carrying on. The management structure is well designed which makes them so perfect. Hence the LECS,the LMW group is going to be establish its branches in all over the country. LECS public Ltd company has the main aim on its work Electrical components,control panels,plastic components etcLECS limited companys vission and mission excellence in work and complete customer satisfaction. It helps them to ascertain their goal in their present and future. they has grown for a long ways as compared to its previous years.

Dr.D.Jayavardhananvelu and Dr.G.K.Devarajulu were the main persons who laid a strong foundation to this company.

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BIBLIOGRAPHY
References: Company records Annual reports Documents Personal interview reports

Website: www.lecsonline.com www.wikipedia.com www.scribd.com www.lmw.com

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