pavizham organisation study

CHAPTER 1 INTRODUCTION

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Introduction The study was conducted at Nambiyattukudy Modern Rice Mill Koovappady, who are well known with their brand name Pavizham. They are the major marketer of rice and rice products inside Kerala. The products are sold in other parts of India and the products are being exported to other countries including Europe, US, and Gulf countries like Dubai. The manufacturing unit has been the most modern technology in rice milling and has imported the machinery from China, and Japan. The company is being treated as the provider of the rice of the traditional taste of Kerala. The company provides superior quality products at affordable price. The purpose of the study is partial fulfillment of the degree of Bachelor of Business Management and to understand the practical functions of the organization.

OBJECTIVE OF THE STUDY For the effectiveness of the study, the objects are classified under two heads . They are:  

Primary Objectives Secondary Objectives Primary objectives

1.

To understand the working of various department of the organization.

2.

To understand the structure of the organization Secondary objectives

1.

To find out the dealers attitude towards ‘PAVIZHAM RICE’

2.

To find the duties and responsibilities of different department heads.

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3.

To find out the market position of the PAVIZHAM RICE

4.

To know Pavizham products.

5.

To find out the strengths, weakness, opportunities and threats of the organization

6.

To know the future plans of the organization. SCOPE OF THE STUDY The study entitled “An organization study of PAVIZHAM RICE has the following scope.

•

The study attempts to understand the performance of different department

•

The working condition in the organization

•

Qualify the assurance of the products

•

Financial position of the company

•

Market position of the company LIMITATIONS OF THE STUDY   

As the main source of data is secondary reliability is limited. The study depends mainly on the information provided by the top management. The employees of various departments were not able to spend enough time for the



researcher since it affects their work schedule. The interpretation and analysis may not be accurate because of the limited experience of the researcher.

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CHAPTER 2 PROFILES

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INDUSTRY PROFILE Rice, common name for about 19 species of annual herbs, of the grass family. Common rice is the only species of importance to human beings. It is native to south-east Asia and has been cultivated for more than 7,000 years. It thrives in areas of considerable warmth and moisture and reaches a height of about 1m (3 ft), with flowers bearing six stamens and a solitary pistil. The fruit, a grain, is produced on a nodding of the stalk. When the grain is ripe, Rice resembles the oat plant. The white endosperm is enclosed by a layer of bran surrounded by a brown husk. Rice grains are extensively used as human food; rice constitutes the principal food of half the human race. It is primarily consumed after processing as polished rice. The bran or germ which comprises 10% of whole rice is removed during the polishing process.. White rice, which is rice from which the nutritious bran has been removed, is an inferior food. A diet of white rice causes such deficiency diseases as Beriberi. Recognition of the nutritional value of the rice bran has led to some increase in the consumption of brown rice, which is the rice grain from which the bran has not been removed. Brown rice is a very good source of manganese and also a good source of other minerals like magnesium and selenium. Almost 11 nutrients are lost during the processing of white rice. Process to get polished white rice from brown rice destroys 80% thiamin, 67% niacin, 90% vitamin B6, 60% iron, half of phosphorous and manganese and all of essential fatty acids and dietary fiber. According to law in United States fully processed polished white rice should be enriched with thiamin, niacin and iron, however this enrichment cannot replace the loss of around 11 nutrients and are not the same as found in the original version. Brown rice is unpolished rice; i.e., the bran layer of the grain is not removed through polishing as is done with white rice. Thus, it is more nutritious than polished rice and is becoming popular among health conscious people. Modern researches have confirmed the beliefs of ancient oriental folk physicians that eating brown rice is a source of serenity and tranquility. It has been shown to contain all the elements need for the maintenance of good health Rice contains mostly “Starch” as high as 72% on w/w basis. Due to the high starch content, it is the most favored “raw material” for alcoholic beverages since centuries in different parts of the world.

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Different varieties of Rice has different aromatic component in it, which becomes the main source of wine making & produces wine with specific aroma & name. It is “Sake” in Japan & “Tanimura” in Philippines. “Vodka” the famous drink of “Russia” is made from rice as well. Apart from wine, rice can be good source for other alcoholic beverages, now with depleting “Crude Petroleum” reserves world over, “Ethanol” is seen as alternative fuel & rice can be best source. The changed dietary habits of the new generation have appeared to increase the risk of coronary heart disease and heart attacks especially in over – weight people. Common features of a metabolic syndrome include visceral obesity (the “apple shaped” body), low levels of protective HDL cholesterol, high triglycerides, and high blood pressure. Lately realizing this Govt. of India has put this industry under “Ministry of Food Processing” to specially focus on to increase its consumption as food.

International scenario Rice is the second largest produced cereal in the world. At the beginning of the 1990s, annual production was around 350 million tons and by the end of the century it had reached 410 million tons. Production is geographically concentrated in Western and Eastern Asia. Asia is the biggest rice produce, accounting for 90% of the world’s production and consumption of rice. China and India, which account for more than one-third of global population supply over half of the world’s rice. Brazil is the most important non-Asian producer followed by the United States. Italy ranks first in Europe Rice is by far the most economically important food crop in many developing countries, providing two third of the calorie intake of more than 3 billion people in Asia, and one third of the calorie intake of nearly 1.5 billion people in North America and European Union (EU), rice consumption has increased due to food diversification and immigration. In the last two decades (1970-90), the per capita rice consumption increased at various rates, ranging from 2.4 percent/year in the Italy and 8.2 percent/year in UK (Faure and Mazaud, 1996).

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The world’s major rice-producing countries including the two most populous nations, ChinaIndia – have emphasized the important of continuing to develop new rice varieties to guarantee Asia’s food security and support the region’s economic development. Today, rice is grown and harvested on every continent except Antarctica, where conditions make its growth impossible. The majority of all rice produced comes from India, China, Japan, Indonesia, Thailand, Burma, and Bangladesh. Asian farmers still account for 92-percent of the world’s total rice production. More than 550 million tons of rice is produced annually around the globe. In the United States, farmers have been successfully harvested rice for more the 300 years. There are thousands of strains of rice today, including those grown in the wild and those which are cultivated as a crop. History of domestication & cultivation Europe The Muslims brought Asiatic rice to the Iberian Peninsula in the tenth century. Records indicate it was grown in Valencia & Majorca, rice cultivation seems to have stopped after Christian conquest, although historians are not certain. Muslims also brought rice to Sicily, where was an important crop. Australia Although attempts to grow rice in the well-watered north of Australia have been made for many years, thy have consistently failed because of inherent iron and manganese toxicities in the soil and was very cheap, the growing of rice was taken up by agricultural groups over the following decades. Californian varieties of rice were found suitable for the climate in the Rivernia, &the first mill opened at Leeton in 1951. Africa African rice has been cultivated for 3500 years. In parts of Africa under Islam, rice was chiefly grown in southern morocco. During the 10th century rice was also brought to east Africa remains uncertain, Muslims brought it to the region stretching from Lake Chad to the White Nile.

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World Top 10 Rice Producing Countries          

China India Indonesia Bangladesh Vietnam Thailand Myanmar Japan Philippines Brazil Some Other Rice Producing Countries

           

Afghanistan, Argentina, Australia Bhutan, Bolivia, Burkina Faso Cambodia, Cameroon, Chad, Colombia, Cuba Ecuador, Egypt France Gambia, Republic of Ghana, Greece Iran, Italy Korea DPR, Republic of Korea Lao PDR, Liberia Madagascar, Malaysia, Mali, Mauritania, Mexico, Mozambique Nepal, Nicaragua, Niger, Nigeria Pakistan, Paraguay, Peru, Portugal

Some important facts about rice in Global Scenario are as:  Global rice production in the recent years has fluctuated between 375-400 million tons. Consumption at around 410 million tons has been above production in the recent years.  Global ending stocks, which had average above 120 million tons in the 1990’s is currently getting reduced to 80 million tons.  Asia is the biggest rice producer, accounting for 90% of the world’s production and consumption of rice.

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 Per capita rice consumption has declined in recent years in many of the wealthier rice consuming countries, such as Japan, Republic of Korea and Thailand, because rising incomes have enabled people to eat more varied diet.  Although rice is widely grown and consumed, less than 6% of world production (20-24 million tons) is traded annually.  Major importing nations of rice are West Asian countries and African countries. Apart from it countries like Japan, Malaysia, and Brazil also figures in top 10 importing country. In West Asia and Middle East Basmati rice is favorite and India is the major supplier in this category.  Through rice is cultivated largely in Asia its export mostly originates from other continents. Major Rice exporters are Thailand, United States, Pakistan, Vietnam, India, Italy, Uruguay, Australia, China and Argentina.  The Western countries are not major producers, but at the same time their consumption is negligible. Thus, a significant portion of their produce is exported.

Challenges Faced By the Industry Major issues on rice production over the world commonly reported, as follows: 1. Low temperature Low temperature is the greatest concern of rice growers in the temperate regions. Although farmers have tried to deploy varieties with tolerance to low temperature and recommended cultural practices, such as planting date and water depth during panicle development, rice crops still suffer from poor establishment and high grain sterility, due to variable climate every year. 2. Water problems

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Water is the primary factor determining the success of the rice crop. Wetlands have been widely exploited for rice production in many parts of the world. Many problems relating to this matter are well known: water efficiency, water quality. 3. Land constraints Fast urbanization, industrialization and the demographic pressure have encouraged farmers to exploit marginal lands for increased rice production to meet their family’s demand. Therefore, acid soils, tidal land, forest lands etc., have been reclaimed and brought under cultivation, thereby limiting crop yield potential. In intensive irrigated rice farming systems, the major soil problems include change in soil characteristics, soil mining affects and soil pollution. 4. Biotic stresses In the humid topics, the introduction of semi-dwarf-stature varieties and the large use of nitrogen fertilizers and insecticides have changed the status of pests from low to high related to the economic importance in rice production. It was reported the serious incidence of insects such as brown plant hoppers, stem borers, leaf folders, etc. And diseases such as blast, bacterial blight, sheath rot. The short growth duration of modern rice varieties has modified existing cropping patterns and increased farming intensity from single crop to double or triple crops, thereby inducing a favorable environment for insect pests and pathogen multiplication. 1. Improvement of rice Yield Productivity of rice does not only vary between one country and another, but also within the same country based on the different agro-ecological zones and production systems used. The gap between the farmer’s yield and those obtained by research stations is still large, even though some reduction has been reported recently. This indicates the various limiting factors affecting rice productivity and production, ranging from land development, production and marketing. 2. Rice quality Rice consumption has increased in Europe, America and Africa as a result of food diversification and immigration (North America and European Union). Recently, the demand for long grain and aromatic rice has been increasing in North America and EU, resulting in a significant change in rice-planted areas. Many long grain varieties have been developed for temperate conditions, particularly under frequent low night temperature, where grain quality still needs to be improved

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Milling yield and cooking quality and processing characteristics need further studies. Harmonization of analytical method for grain quality at national and international laboratories should be encouraged. 3. Decline in investments for increased rice production Water control was the main factor necessary to increase the rice production and productivity in Asia during the Green Revolution, but in investment for the development of irrigation infrastructure in many developing countries have taken place, thereby affecting the growth of rice production as well as productivity. 4. High costs of rice production High labor cost, mechanization, the use of chemical inputs and slow increase in grain yield contributed to high cost of rice production in irrigated rice, especially in developed countries. The cost of rice production was around US$ 400/ ton in France (Cambon, 1995) and US$ 166ton in the USA (Saint and Zeigler, 1990). Subsidy has become the national policy in many countries. The world’s price of rice declined import of rice from China, Indonesia, Philippines, etc. and the occurrence of flooding and drought in these countries. 5. Rice information One of the most effective means to promote the flow of agricultural information over the world is the modern computerized communication facilities, which allow gathering, disseminating, and facilitating interaction and exchange of such information among a large number of people and institutions working in the same field. Obviously, it still needs to have initiative, coordination and leadership in this regard.

National scenario India is an important center of rice cultivation. The rice harvesting area in India is the world’s largest. Rice is grown in many regions across India. For about 65% of the people living in India, rice is a staple food for them. Rice is essential to life in India. It is a part of nearly every meal, and it is grown on a majority of the rural farms. Worldwide, India stands first in rice area and second in rice production, after China. It contributes 21.5 percent of global rice production. Within the country, rice occupies one-quarter of the total cropped area, contributes about 40 to 43

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percent of total food grain production and continues to play a vital role in the national food and livelihood security system. However, India did not become a major rice exporting country for a long time. Its share in world rice trade, mainly in the form of small-volume exports of highly prized basmati rice, was insignificant (5 percent). It was not until the mid-1980s that the quantum of export started to grow, from 110000 tons in 1978/79 to 890613 tons in 1994/95 and to a record 5.5 million tons in 1995/96, second only to Thailand (at 5.9 million tons). The regions cultivating this crop in India is distinguished as the western coastal strip, the eastern coastal strip, covering all the primary deltas, Assam plains and surrounding low hills, foothills and Terai region- along the Himalayas and states like West Bengal, Bihar, eastern Uttar Pradesh, eastern Madhya Pradesh, northern Andhra Pradesh and Orissa. India, being a land of eternal growing season, and the deltas of Kaveri River, Krishna River, Godavari River and Mahanadi River with a thick set-up of canal irrigation, permits farmers to raise two, and in some pockets, even three crops a year. Irrigation has made even three crops a year possible. Irrigation has made it feasible even for Punjab and Haryana, known for their baked climate, to grow rice. They even export their excess to other states. Punjab and Haryana grow prized rice for export purposes. The hilly terraced fields from Kashmir to Assam are idyllically suited for rice farming, with age-old hill irrigational conveniences. High yielding kinds, enhanced planting methods, promised irrigation water supply and mounting use of fertilizers have together led to beneficial and quick results. It is the rain fed area that cuts down average yields per hectare. Diversity of food crops of India should be ascertained according to the factors of temperature, rainfall and soil. Paddy. Wheat, millets and pulses are the major food crops in India. India is the major producer of agro commodities in the world. Since independence the food grain portion in India has increased almost four-time. India rank first in the production of tea and sugarcane, and second in rice, milk, and vegetable production. Rice is the staple food of India and more than 90% of the people in southern part to India consume rice as their main food. Rice is the main food of Kerala.

At least in every house of Kerala rice is being consumed twice a day. The

average production of paddy in Kerala is established by the govt. at 20 MT , out of which 30% is being produced in kuttanad and Palakkad. Paddy

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Paddy is the most important food crops of India. India stands in the second production of paddy. Geographical requirements Temperature 16c to-20c of temperature in the early stages of growth. 18c to 32c of temperature is essential during the harvesting period. Rainfall Paddy is the cultivated places where rainfall is between 150cm to 300cm. if irrigation facilities are available, paddy can be cultivated in places where the rainfall is low.

Soil Even though paddy can be cultivated in the variety of soils, alluvial soil is the most suited for its cultivation. Some important fact about rice in Indian Scenario:  Agriculture is the main source of income for families in India. Farms cover over half the land and almost three-quarters of that land is used to grow the two major grains: rice and wheat.  India is the second leading producer of rice in the entire world, preceding only by China  India’s annual rice production is around 85-90 million tons. Annual

consumption is

around 85 million tons.  In India Rice is cultivated in both seasons – winter and summer.  West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil Nadu, Bihar, Orissa, Assam, Karnataka and Haryana are the major producing states. More than 50%of total production comes from the first four states.  Food Corporation of India purchases around 20 to 25% of the total rice production in the country both under levy from the rice mills and directly in the form of paddy from the farmers at Minimum Support Price announced by the Govt.  More than 4000 varieties of rice are grown in India.

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 India is the world’s largest exporter of basmati rice to Saudi Arabia and other Middle East Countries, Europe and the United States.  India has the potential to export one million tons of basmati rice.  Major destinations of Indian non-basmati, white/parboiled rice are Bangladesh, Indonesia, Philippines, Nigeria, South Africa, Ivory Coast and other African countries.

State scenario Paddy is cultivated in almost all districts in Kerala. Rice production has experienced continuous decline in area over 2 decades, rice production touched it’s of around 14lakhtons in the midseventies. Even at its peak level internal production was hardly sufficient to meet 50 per cent of state’s requirement. Consequent to the enormous pressure which high value crops like Coconut, Banana, Pineapple and rubber have exerted area under paddy has declined from its peak coverage of 8.81 lack hectares in md-seventies to 3050 lack hectares in 2003-2004. The production of rice is declining every year. This is an indication of the problems faced by the cultivators of Kerala. If proper measures are not being taken to overcome this situation, then this sector will be abolished from the state within no time. The main problems concerning these cultivators are high cost of cultivation and less return for their products, the products from other states is also affecting them adversely. Season-wise data shows that the reduction in area under rice was entirely during the Mundakan season whereas during Viruppu and Puncha season 2003-2004 the negative trends has been reversed, the data also reveal that out all around 1.70lack hectares of double cropped area, nearly 50000 hectare, are remaining fallow during the Virippu season. The single cropped lands of Kuttanad and Kole, where only one crop is raised during puncha season, also offer scope for additional cropping. Among the three seasons, Puncha season records the highest productivity and the trend is continuing. In Kerala paddy production is highly concentrated in the districts of Palakkad and Alappuzha. They are also known as rice bowls of Kerala. These 2 districts contribute 40% of total production of rice in Kerala. At present rice cultivators are facing so many problems. The main problem is increase in cost of production and less profit from the product sale. So many farmers are changing their cultivation crop into other agricultural products where they get high profit and some people are utilizing the land for constructing building and tile factories. All these practices are affecting the industry very adversely.

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In Kerala paddy processing industry is one of the traditional industries. Earlier paddy processing was considered as household business. As time passed,, with increase in production and productivity of paddy , rice mills and modern lines began to flourish. With the introduction of high yield variety crops, which in turn resulted in a massive increase in productivity led to the emergence of middlemen in paddy business. They made bulk purchase behalf of the readers and product were flown from production centers to trading centers. This necessitated the establishment of rice mills on modern lines. Exporting of rice Among the exporting countries, Thailand, Vietnam, India and Pakistan are the major countries exporting rice in sizeable quantity. Rice is one of the important cereal food crop of India. Rice contributes about 43% of total food grain production and 46 % of the total cereal production in the country. It continues to play vital role in the national exports. The percentage share of rice in total national export was 4.5% during 1998-99. The percentage share of agriculture export in total national export was 18.25, whereas the percentage share of rice export in total agriculture export was 24.62 during 1998-99. Thus, rice export contributes nearly 25% of total agriculture export from the country.

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COMPANY PROFILE 4.1 Company Profile Chairman

– Mr.N.P.George

Managing director

- Mr.N.P.Antony

HR manager

– Mr. Roy

Marketing manager

– Mr. Laji Varghese

Finance manager

- Mr. Vinod

Operations manager

– Mr. Shaju Francis

Production manager

– Mr. Manoj

Pavizham is the generic name of rice & rice products produced by 14 individual industries located in about 50 acres at Aimury in koovappady village. Various varieties of rice & rice products come out of these factories day in and out. The marketing arm of these companies is Pavizham Healthier (Pvt) Ltd., Apart from rice & rice products the company also markets Tamarind, salt, coconut oil ,rice bran oil etc.. These units are owned by various members of the Nambiyattukudy family and the current patriarch Mr. NP George is referred as chairman and his brother NP Antony as MD. Their father late Mr. Pappachan entered into conventional rice milling in early eighties, and before he could witness the modern rice mill he had established operational he departed to heaven. The brothers thereafter jointly along with their mother and other members of family built up the rice milling empire as the people see now. Innovating ideas, uncompromising stand on quality, a humanistic approach based on Christian values has over the years seen the various units flourishing and prospering. Modern milling machinery imported

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from china, a co-gen power plant, a waste water treatment plant based on CSIR technology make the mills unique. Company is a pioneer in various value addition option for rice &its by – products. They are being treated as the provider of the traditional taste of Kerala due to its superior quality and affordable price. High Nutritional value sortex rice and rice products are being manufacturing using high end technology to meet our customers’ needs. The rice & rice products of the company reaches the Malaya lees not only in their home state, but wherever they are be it in US, Europe or Africa. The marketing network of the company is elaborate as it service over 3000 retails spread all over the state through its own vehicle fleet and a dealer network for metros like Bombay & Delhi. Nambiyattukudy group is one among the several industrials groups came up in the last decade of the twentieth century and is now considered to be the premier manufactures of rice and rice products in the State of Kerala with six independent units for the manufacture for rice. There are no other industrial groups in the state with the production capacity as that of Nambiyattukudy groups. In addition to that there are five more units under the same group manufacturing various other products. The following are the industrial units under the same management.

Table 2 Industrial units

Nambiyattukudy rice mill

Rice

1995

Koovappady

Nambiyattukudy Ago mills

Rice

1998

Koovappady

Ago Rice

1998

Koovappady

& Rice

2001

Koovappady

2001

Koovappady

Nambiyattukudy Industries Nambiyattukudy

food

spices Star food industries

Beaten rice

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Godwin food products

rice powers

Pavizham Healthier Diet pvt. Marketing

2002

Koovappady

2004

Koovappady

Ltd Vision statement- pavizham group 

To make the pavizhamgroupthe largest supplier of grain, pulses, culinary and instant



foods in the country To ensure the availability of all the pavizham products all over the world to the best of



customer delight To have the best professional work force in pavizham group with positive

Pavizham group- mission statement  

To achieve supply to 3500 retail outlets in Kerala To ensure presence of pavizham products

Corporate Objectives of the Company  

To build lasting relationships with customers based on trust and mutual benefit. To uphold highest ethical standards in conduct of our business. To create and nurture a



culture that supports flexibility, learning and is proactive to change. To chart a challenging career for employees with opportunities for advancement and



rewards. To value the opportunity and responsibility to make a meaningful difference in people's



lives. To maintain the Quality of the product.

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PRODUCT PROFILE Products marketing Nambiyattukudy Group is marketing their products under the brand name `PAVIZHAM' which is well accepted by the consumers in the market. Now this venture has a very strong, result oriented, dynamic and target achieving marketing wing under the direct supervision of Mr. N.P. George and Mr. N.P. Antony. Today, the Pavizham products has become the numerous units in this segment. This position has been achieved through the hard work of our Production as well as the enthusiastic marketing strategies of their Marketing Team. In Kerala, their products have been top sellers in the Districts of Trivandrum, Quilon, Pathanamthitta, Alleppey, Kottayam, Idukki, Ernakulum and Kozhikode. While there has been significant increase in the sakes, turnover in other Districts of Kerala and even in the neighboring States of Tamil Nadu and Karnataka, the turnover in the nine Districts mentioned has been at an all time high. They wish to not only become the top sellers in the other districts too but at the same time affect further increase in sales in the nine districts also. They are aware that all major rice dealers in the above Districts are getting rice from the Nambiyattukudy Group because of the superior quality maintained for the products throughout the year to meet the required standard of the consumers. The management plans to still increase the quality of the products in order to attract the best client who deals in rice and rice products. Simultaneously, the Group also intends to bring in new technology and new Machines for the processing of paddy and hulling of boiled paddy, thereby keeping the Vitamin contents in rice. They are aware that in these days when the consumers tend to look for more quality even if it be at a little higher price, the scope to excel in providing to the consumer the best quality of products impels us to continue our onward march to realize our true potential. In this quest they seek the camaraderie and comradeship of discerning and result oriented Dealers in all areas. They are looking for such Dealers who, imbibed with the best professional values, also putting shoulder to shoulder with them, take the Pavizham Brand the most sought after brand in this segment. Product profile

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Product profile They are manufacturing mainly four type of rice, which is having a better demand from the consumers both in Kerala and international market. They are known as Long Grain Matta Rice, small Grain Matta Rice, Long grain white rice and small grain white rice. The detailed specifications of the various products manufactured by us are as follows.

Table 3 List of products Sl. No 1 2. 3. 4.

Products Long Grain Matta Rice(Vadi) Small Grain Matta Rice (Unda) Long Grain White Rice (Jaya) Small Grain White Rice (Kranti)

5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Beaten Rice Or Rice Flakes Rice Powder Puttupodi Champaputtupodi Appam, Pathiri, Idiyappampodi Palappampodi Idlipodi Roast Aval Palada Rice Bran Oil

1. Long grain matta rice (vadi) This product is known as “Vadiyari” in Malayalam. As the name indicates, the product is long and thin with rose color and is very much liked by the Malaya lees. This rice contains more vitamins and more starch. The cooking of this variety of rice will take more time and is very tasty. The cooking time can be reduced by suitably processing the paddy during boiling. This rice is manufactured out of paddy cultivated mainly in Palakkad district. The product is prepared

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according to the specification of each customer. This rice also used for marketing PAYASAM and also used for marketing PRASADOM in temples.

2. Small grain matta rice (unda) This product is known as “undayari” in Malayalam. As indicate by the name, the product is short with rose color but thick when compared to the former variety and is also very much liked by the Malaya lees. This rice also contain more Vitamins and more starch similar to the previous variety. The cooking of this rice will take lesser time compared to the former one. The cooking time can be still reduced by suitably processing the paddy during boiling. This rice is manufactured out of paddy cultivated mainly in Kuttanad areas. The product is prepared according to the specification of each customer. This rice has got a white belly and is preferred by households. 3. Long grain white rice(jaya) This product is known as “jayayari” in Malayalam. This product is long and thin similar to the first variety of rice but is having a white color. Unlike the first two varieties, this products contains jess Vitamins and less starch when compared to the previous varieties. The cooking of this will take less time and very soft. For this reason, it is easy for human consumption and easily digested. The cooking time can be either increased or reduced by suitably processing the paddy during boiling. The product is prepared according to the specification of each customer. This rice is manufactured out of paddy cultivated manly in the state Karnataka and Tamilnadu. 4. Small grain white rice (kranti) This product is known as “Krantiyari” in Malayalam. This product is similar to the small matta rice (undayari) with the only differentiation in color. This is white in color similar to the Jaya rice. This variety of rice is available throughout the entire country. The paddy required for the production of this rice is cultivated in almost all the state.

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This can be cooked very fast and is very late and soft for the stomach. For this reason, it is easy for human consumption and easily digested. The cooking time can be either increased or reduced by suitably processing the paddy during boiling. The product is prepared according to the specifications of each customer. 5. Beaten rice or rice flakes This product is known as “Avil” in Malayalam. The patty soaked in hot water and is roasted using steam and when it is sufficiently roasted, the roasted paddy is taken to the rice flakes machine to make the product. The product is roasted once again to increase the life and also to make better in taste. This are packed in plastic bags and are sealed to maintain the quality of the product until it is consumed. The product has become vary dearer within a short span of time. The product is prepared to according to the specification of each customer. 6. Rice powder This product is known as “Arippodi” in Malayalam. The rice is soaked in water and is powdered using the pulverize machine. The powdered product is graded according to the fineness and used for making different dishes like Appam, idly, Dosai, Puttu etc. the rice powder is roasted to preserve it for longer period. When it is sufficiently roasted, it is allowed to cool. These are packed in plastic bags and are sealed to maintain the quality of product unit it is consumed. The product has become very dearer within a short span of time. The recipes of each products are printed on the plastic bags in order to help the users to cook the different dishes very fast. 7. PuttuPodi Makes soft, easy Puttu, one of the best breakfast in the world. It is a great healthy food rich in natural nutrients, steam cooked and oil free. The appetizing aroma of the delicious, natural taste of

the rice that wafts through the hot steaming puttu is sheer delight. Tastes heavenly when complemented with curry, pappads or bananas. 8. ChampaPuttuPodi 22 MARIAN ACADEMY OF MANAGEMENT STUDIES

Powdered brown rice to make soft and tasty “ChampaPuttu” with a temptingly delicious aroma, flavor and color. Rice in natural nutrients, vitamins and fiber, this steam cooked, oil free delicacy is the sheer goodness of natural taste complemented with healthy nourishment. Savor it with curry ,pappads or bannans..it’s definitely something to feast on. 9. Appam, Pathiri, IdiyappamPodi Made with the finest quality rice, it is the delicious natural goodness and taste makes it perfect for tasty pathiris that melt in your mouth, delicious Appams that are temptingly appetizing and yummy Idiyappams that are simply irresistible to devour. Simple to prepare, rich in nourishments and oil free, it is absolutely healthy too. 10. PalappamPodi Makes mouth-watering Palappam .prepared with coconut milk to complete the succulence of soft centredPalappam, laced with crispy edges. Relish the delicacy with curry or sweetened coconut milk. Rich in taste and natural nourishment, it’s simply a treat for your taste buds. 11. IdliPodi Makes soft, delicious Idlis. A traditional favourite that divinely delicious, the enticing aroma and the melt- in-mouth succulence of hot steaming Idlis are pure delight. Relish the heavenly nature taste by complementing with chutneys and hot spicy sambar. 12. Roast Aval The paddy soaked in hot water and is roasted using steam and when it is sufficiently roasted, the roasted paddy is taken to the rice flakes machine to make the product. The product is roasted once again to increase the life and also to make it better in taste. The product has become very dearer within a short span of time.

13 .Palada This product is processed adopting traditional formula, through automatic equipments. They are dried as a complete protein rich fat free food. Ingredients: fine quality rice only. This is sufficient to make 25 cups tasty payasam.

23 MARIAN ACADEMY OF MANAGEMENT STUDIES

14. Rice Bran Oil Pavizham rice bran is a rice grain derivative, popularly acclaimed as the ‘Heart oil’. It is a total healthy, nutritive oil as it comprise a unique and optimum combination of mono saturated, poly saturated fatty acids that are potent cholesterol reducers, which prevents heart diseases and the powerful antioxidants regulates the body metabolism, turning down the ageing process. The company has an estimated capital of rs.35 crores and the capital structure consists of the promoters contribution, friends and families contribution and also the accumulated profit will be contributed to the capital. The company has an ISO certification of 22000-2005. Competitors OfPavizham  

Nirapara Double horse

Nirapara The K.K.R group was set up in 1976 by Mr. K.K. Karnan, a man who set out with the vision to bring quality rice into the traditional homes of Kerala in South India. A venture which started out with traditional method of boiling, sun drying and milling, grew into one of the most modern rice processing houses in India with the latest world-Class technology today. KKR Mills boasts of a state-of the-art plant with the highest levels of technology in the world, ensuring products that meet the most stringent quality and hygienic standards. . The factory of K.K.R Mills is located in green, pollution-free Okkal Township, near Kochi in Kerala in South India. Double horse

Good food, for all. The thought inspired our Founder, respected Late M. O. John – a visionary, a humanitarian and a businessman whose ideas were way of ahead of times. The Founder General Secretary of Kerala VyaparaVyavasayiEkopnanaSamithi, the largest organization of business owners in Kerala and the President of Chamber of Commerce, Thrissur, his entrepreneurial skills made him a leader of his times, and his brand –the leader for more than 50 years.

24 MARIAN ACADEMY OF MANAGEMENT STUDIES

Manjilas, the mother brand of Double Horse, was founded in the year 1959, as a rice milling company selling high-quality rice grains. The brand, on the strength of its commitment to deliver only the best to its customers has witnessed a phenomenal growth over the years. It revolutionized the food sector in Kerala becoming the first ISO 9001:2000 certified Rice Mill in the state and the first food brand to introduce sortex rice, stoneless rice and colour grading. Inspired by the support of its customers and foreseeing the potential for traditional food that’s made easy to suit today’s busy, modern lifestyle, Manjilas Double Horse started introducing products- from rice powders- breakfast mixes to instant mixes, wheat products, curry powders and condiments made using ‘Perfect Blend technology’, naturally preserved pickles, health foods, ready-to-cook & ready-to-eat products, traditional preserves, coconut products and more; and is dedicatedly developing new and innovative product ranges, to keep up with its promise to deliver good food and in turn, inculcate a healthy eating habit. Today, Manjilas Double Horse offers its customers the widest variety of good food with more than 20 superior types of rice and 100 premium quality food products in different ranges.

Future plans The company has strong future vision statement “always flying ahead”. Management of company is very efficient by realizing the importance of development they have planned or a great future. The following are some of the future plans of the co. a. Pavizham ICE village ICE- information, communication and entertainment This is one of the big projects that the co. is planning to do next. It consist of built up area of 200,000 sqfts for its services, BPOs, & KPOs 100,000 sqfts for communication technologies , both electronic and print media. 100,000 sqfts multiplexes, built-up residential flats for the park user and beneficiaries in 150,,000 sqfts, parking areas, gardens etc. in 50,000 sq ft. It also consist of the following.  

Swimming pools Auditoriums

25 MARIAN ACADEMY OF MANAGEMENT STUDIES

 

Games park Mini casinos

B.Pavizham star mart This is the concept of supermarket. The co. is planningtostart a supermarket by name pavizhamstarmart. Company will provide both financial assistance & product to those who are interested in this venture.

26 MARIAN ACADEMY OF MANAGEMENT STUDIES

CHAPTER 3

GENERAL MANAGEMENT PRINCIPLES

27 MARIAN ACADEMY OF MANAGEMENT STUDIES

Organization and Departmentation Organizing is the act of rearranging elements following one or more rules. Anything is commonly considered organized when it looks like everything has a correct order or placement. But it's only ultimately organized if any element has no difference on time taken to find it. In that sense, organizing can also be defined as to place different objects in logical arrangement for better searching. Concepts of Organizing The working relationships — vertical and horizontal associations between individuals and groups — that exist within an organization affect how its activities are accomplished and coordinated. Effective organizing depends on the mastery of several important concepts: work specialization, chain of command, authority, delegation, span of control, and centralization versus decentralization. Many of these concepts are based on the principles developed by Henri Fayol. Work specialization One popular organizational concept is based on the fundamental principle that employees can work more efficiently if they're allowed to specialize. Work specialization, sometimes called division of labor, is the degree to which organizational tasks are divided into separate jobs. Employees within each department perform only the tasks related to their specialized function. When specialization is extensive, employees specialize in a single task, such as running a particular machine in a factory assembly line. Jobs tend to be small, but workers can perform them efficiently. By contrast, if a single factory employee built an entire automobile or performed a large number of unrelated jobs in a bottling plant, the results would be inefficient. Despite the apparent advantages of specialization, many organizations are moving away from this principle. With too much specialization, employees are isolated and perform only small, narrow, boring tasks. In addition, if that person leaves the company, his specialized knowledge

28 MARIAN ACADEMY OF MANAGEMENT STUDIES

may disappear as well. Many companies are enlarging jobs to provide greater challenges and creating teams so that employees can rotate among several jobs. Chain of command The chain of command is an unbroken line of authority that links all persons in an organization and defines who reports to whom. This chain has two underlying principles: unity of command and scalar principle. Unity of command: This principle states that an employee should have one and only one supervisor to whom he or she is directly responsible. No employee should report to two or more people. Otherwise, the employee may receive conflicting demands or priorities from several supervisors at once, placing this employee in a no‐win situation. Sometimes, however, an organization deliberately breaks the chain of command, such as when a project team is created to work on a special project. In such cases, team members report to their immediate supervisor and also to a team project leader. Another example is when a sales representative reports to both an immediate district supervisor and a marketing specialist, who is coordinating the introduction of a new product, in the home office. Nevertheless, these examples are exceptions to the rule. They happen under special circumstances and usually only within a special type of employee group. For the most part, however, when allocating tasks to individuals or grouping assignments, management should ensure that each has one boss, and only one boss, to whom he or she directly reports. Scalar principle: The scalar principle refers to a clearly defined line of authority that includes all employees in the organization. The classical school of management suggests that there should be a clear and unbroken chain of command linking every person in the organization with successively higher levels of authority up to and including the top manager. When organizations grow in size, they tend to get taller, as more and more levels of management are added. This increases overhead costs, adds more communication layers, and impacts understanding and

29 MARIAN ACADEMY OF MANAGEMENT STUDIES

access between top and bottom levels. It can greatly slow decision making and can lead to a loss of contact with the client or customer. Span of control Span of control (sometimes called span of management) refers to the number of workers who report to one manager. For hundreds of years, theorists have searched for an ideal span of control. When no perfect number of subordinates for a manager to supervise became apparent, they turned their attention to the more general issue of whether the span should be wide or narrow. A wide span of management exists when a manager has a large number of subordinates. Generally, the span of control may be wide when 

The manager and the subordinates are very competent.



The organization has a well‐established set of standard operating procedures.



Few new problems are anticipated. A narrow span of management exists when the manager has only a few subordinates. The span should be narrow when



Workers are located far from one another physically.



The manager has a lot of work to do in addition to supervising workers.



A great deal of interaction is required between supervisor and workers.



New problems arise frequently. Keep in mind that the span of management may change from one department to another within the same organization.

30 MARIAN ACADEMY OF MANAGEMENT STUDIES

The general pattern of authority throughout an organization determines the extent to which that organization is centralized or decentralized. A centralized organization systematically works to concentrate authority at the upper levels. In a decentralized organization, management consciously attempts to spread authority to the lower organization levels. A variety of factors can influence the extent to which a firm is centralized or decentralized. The following is a list of possible determinants: 

The external environment in which the firm operates. The more complex and unpredictable this environment, the more likely it is that top management will let low‐level managers make important decisions. After all, low‐level managers are closer to the problems because they are more likely to have direct contact with customers and workers. Therefore, they are in a better position to determine problems and concerns.



The nature of the decision itself. The riskier or the more important the decision, the greater the tendency to centralize decision making.



The abilities of low‐level managers. If these managers do not have strong decision‐making skills, top managers will be reluctant to decentralize. Strong low‐level decision‐making skills encourage decentralization.



The organization's tradition of management. An organization that has traditionally practiced centralization or decentralization is likely to maintain that posture in the future.

In principle, neither philosophy is right or wrong. What works for one organization may or may not work for another. Kmart Corporation and McDonald's have both been very successful — both practice centralization. By the same token, decentralization has worked very well for General Electric and Sears. Every organization must assess its own situation and then choose the level of centralization or decentralization that works best.

31 MARIAN ACADEMY OF MANAGEMENT STUDIES

Nature of organization The following are the important characteristics of organization.  Specialization and division of work The entire philosophy of organization is centered on the concepts of specialization and division of work. The division of work is assigning responsibility for each organizational component to a specific individual or group thereof. It becomes specialization when the responsibility for a specific task lies with a designated expert in that field. The efforts of the operatives are coordinated to allow the process at hand to function correctly. Certain operatives occupy positions of management at various points in the process to ensure coordination.  Orientation towards goals Every organization has its own purposes and objectives. Organizing is the function employed to achieve the overall goals of the organization. Organization harmonizes the individual goals of the employees with overall objectives of the firm.  Composition of individuals and groups Individuals form a group and the groups form an organization. Thus, organization is the composition of individual and groups. Individuals are grouped into departments and their work is coordinated and directed towards organizational goals.  Differentiated functions The organization divides the entire work and assigns the tasks to individuals in order to achieve the organizational objectives; each one has to perform a different task and tasks of one individual must be coordinated with the tasks of others. Collecting these tasks at the final stage is called integration. 

Continuity

An organization is a group of people with a defined relationship in which they work together to achieve the goals of that organization. This relationship does not come to end after completing each task. Organization is a never ending process.

32 MARIAN ACADEMY OF MANAGEMENT STUDIES

Concepts Of Organizations There are certain concepts which are frequently used in studying, analyzing and evaluating the functioning of organizations. Concepts like rationality, effectiveness and efficiency are used in relation to the activities of organizations. In this section, the meaning of these frequently used concepts and their implication for organizations and their administration will be discussed. Rationality Rationality is one of the most frequently-used key concepts in the study, evaluation and analysis of organizations and their administration. In general, rationality is related to decision-making and choice. According to Pfeiffer, “rationality is one of the vital theoretical aspects of decision making”. Rationality is defined as “the capacity of man to make choices based upon conscious deliberation about the means selected to achieve specified ends” (Pfeiffer and Presthus, 1967). The above definition clearly

indicates that rationality and being rational are taken as a human ability and

generally, it is related to decision making. Decisions and actions of the individuals will be considered as rational to the extent they have the following characteristics:1) Decision or action should be taken deliberately and consciously, that is, the individual should be aware of what he/she is doing and intending to accomplish. (2) Since there are usually various alternatives and means to accomplish the very same objective, there should be an effort to identify the set of alternatives and various means to achieve them. (3) The decision should be directed to the search of finding the best available means, and this search must be based on logical reasoning and scientific knowledge. (4) There should be a deliberate attempt to recognize or find out to what extent emotions, habits, beliefs and interest enter into the process of choice.

Effectiveness

33 MARIAN ACADEMY OF MANAGEMENT STUDIES

Effectiveness is not a simple issue, because organizations in general do not have a single goal. The basic difficulty in analyzing effectiveness is the fact of multiple and often conflicting goals in many organizations. Effectiveness in one set of goals may lead to ineffectiveness in another. Efficiency The concept of efficiency is generally used as a synonym for rationality and it is used in the meaning of economy, reducing the expenditures. Efficiency is defined as “the

amount of

resources used to produce a unit of output”. In this sense, efficiency is directly related to how an organization uses its resources in the production of goods or services. If we can measure an organization’s inputs and outputs, such a concept of efficiency is both very useful and relevant in the operation and evaluation of organizations. Departmentalization. Dividing an organization at the most general level into large and then into smaller units is usually called departmentalization. Departmentalization is the process through which departments, divisions, units and sub-units are established in the organization. As has been indicated above, goal accomplishment with the contribution of hundreds of individuals requires a division of labour among the individuals. When the overall work is divided into small components and each component is assigned to individuals and groups, then there arises the need to establish meaningful relations among the components. That is, the components that are related to each other have to be brought together and placed under a common authority for facilitating goal accomplishment. Departmentalization refers to the process of grouping the components and relating them to each other. According to one of the prominent scholars (Gullick, 1947) there are several criteria to be employed in departmentalization, such as:

 The major purpose to be served.  The processes to be used.  The persons or things served or dealt with.

34 MARIAN ACADEMY OF MANAGEMENT STUDIES

 The place where the activities will take place The basic idea is to combine homogenous activities and units and separate heterogeneous ones. Each one of the above criteria has its advantages and disadvantages, and it is not possible to single out one of them and then say this is the single principle of effective departmentalization. Each one of the above mentioned system of organization is intimately related with the others, because in any organization, all four elements are present in the work of an individual or unit. Each member and unit of the organization is working for some major purpose, uses some process, deals with some persons, and serves or works at some place. If an organization is structured on the basis of the one of the above, it becomes immediately necessary to recognize the others in constructing the secondary and other divisions of the work Importance Specification: Departmentation helps to grow specification in various activities which leads to improving the efficiency of operation. Feeling of autonomy: Departmentation gives independent charges to managers. The feeling of independence provides satisfaction and in turn increases their responsibilities and efficiency. Fixation of responsibility: Through departmentation, responsibilities of the work can be precisely and accurately fixed. The authority and responsibility of each department is defined precisely. Development of Management: The managers of each department perform specialized functions. They take independent decision and develop themselves for higher positions. Departmentationfacilitates the development of managerial personnel by providing them opportunities for exercising initiatives.

35 MARIAN ACADEMY OF MANAGEMENT STUDIES

Facility in Appraisal: Since the managers perform specified jobs, their performance appraisals become easier. Departmentation facilitates administrative control as standards of performance are laid down separately for each department. Budget Preparation: It makes the preparation of budget for departments easier as well as for the organization as a whole easier. Proper Supervision: As the authority for making decisions is diffused to the managers of the departments and works are assigned to each individual department wise, supervision and control become easier. Process and structure of organization. Functional Structure The organization is divided into segments based on the functions when managing. This allows the organization to enhance the efficiencies of these functional groups. As an example, take a software company. Software engineers will only staff the entire software development department. This way, management of this functional group becomes easy and effective. Functional structures appear to be successful in large organization that produces high volumes of products at low costs. The low cost can be achieved by such companies due to the efficiencies within functional groups. In addition to such advantages, there can be disadvantage from an organizational perspective if the communication between the functional groups is not effective. In this case, organization may find it difficult to achieve some organizational objectives at the end. Chart 1

36 MARIAN ACADEMY OF MANAGEMENT STUDIES

Divisional Structure These types of organizations divide the functional areas of the organization to divisions. Each division is equipped with its own resources in order to function independently. There can be many bases to define divisions. Divisions can be defined based on the geographical basis, products / services basis, or any other measurement. As an example, take a company such as General Electrics. It can have microwave division, turbine division, etc., and these divisions have their own marketing teams, finance teams etc. In that sense, each division can be considered as a micro-company with the main organization.

Chart 2

37 MARIAN ACADEMY OF MANAGEMENT STUDIES

Matrix Structure When it comes to matrix structure, the organization places the employees based on the function and the product. The matrix structure gives the best of the both worlds of functional and divisional structures. In this type of an organization, the company uses teams to complete tasks. The teams are formed based on the functions they belong to (ex: software engineers) and product they involved in (ex: Project A). This way, there are many teams in this organization such as software engineers of project A, software engineers of project B, QA engineers of project A, etc.

Chart 3

38 MARIAN ACADEMY OF MANAGEMENT STUDIES

Line and staff In organizations there may be a single individual at the top of the organization who is responsible for the organization as a whole. But, usually, the man at the top is not alone, because there is a group of individuals to assist him in his administrative functions. This group is usually called, the “staff”. Originally the concept of staff comes from military organizations; commanding officers of large units are provided with a group of specialized officers to assist them in planning and appraising important decisions. The same idea has been transferred to civilian organizations, and in complex, large scale organizations chief executives are aided by staff. In this sense, the staff is identified as a group of individuals giving advice to the executive. The staff generally is concerned with two types of work:(1) Overall long-range

developmental problems of the

organization; developing new products, or more efficient methods of production; improving the services rendered; making projections and forecasts for the future. (2) Assisting the manager in complex, non-routine, or emergency situations which require specialized knowledge and careful analysis for decisions.

39 MARIAN ACADEMY OF MANAGEMENT STUDIES

2.7 Types of organization 1. sole traders 2. partnerships 3. companies The sole trader The sole trader is the most common form of business ownership and is found in a wide range of activities (e.g. window cleaning, plumbing, electrical work, busking). In the UK about 20 percent of sole traders operate in the construction industry, a further 20 percent in retailing, and about 10 percent

in

finance,

and

10

percent

in

catering.

No complicated paperwork is required to set up a sole trader business. Decisions can be made quickly and close contact can be kept with customers and employees. All profits go to the sole trader, who also has the satisfaction of building up his or her own business. But there are disadvantages. As a sole trader you have to make all the decisions yourself, and you may have to work long hours (what do you do if you are ill or want a holiday?) You do not have limited liability, and you have to provide all the finance yourself. As a sole trader you need to be a jack-of-all-trades, and just because you are a good hairdresser does not necessarily mean you have a head for business strategy. The partnership An ordinary partnership can have between two and twenty partners. However, the Partnership Act of 2002 has made it legal for some forms of partnership e.g. big accountancy firms to have more partners who also enjoy limited liability. People in business partnerships can share skills and the workload, and it may be easier to raise the capital needed. For example, a group of doctors are able to pool knowledge about different diseases, and two or three doctors working together may be able to operate a 24 hour service. When one of the doctors is ill or goes on holiday, the business can cope.

40 MARIAN ACADEMY OF MANAGEMENT STUDIES

Partnerships are usually set up by writing out a deed of partnership which is witnessed by a solicitor and sets out the important details such as how the profits and losses will be shared. Partnerships are particularly common in professional services e.g. accountants, solicitors, vets. Companies A company is owned by shareholders who appoint Directors to give direction to the business. The Chief Executive is the senior official within the company with responsibility for making major decisions. Specialist managers will be appointed to run the company on behalf of the Board. A company is a legal body in its own right with an existence that is separate in law from its owners. The company will thus be sued and can sue in its own name. Shareholders put funds into the company by buying shares. New shares are often sold in face values of £1 per share but this does not have to be the case. Limited liability is a form of business protection for company shareholders (and some limited partners). For these individuals the maximums sum they can lose from a business venture which they have contributed going bust is the sum of money that they have invested in the company this is the limit of their liability. Every company must register with the Registrar of Companies, and must have an official address. Private companies have Ltd after their name. They are typically smaller than public companies although some like Portakabin and Mars are very large. Shares in a private company can only be bought and sold with permission of the Board of Directors. Shareholders have limited liability. A public company like Cadbury-Schweppes or BT can sell shares to the public and to financial institutions and have their shares traded on the Stock Exchange. The main advantage is that large amounts of capital can be raised very quickly. One disadvantage is that control of a business can be lost by the original shareholders if large quantities of shares are purchased as part of a takeover bid. In order to create a public company the directors must apply to the Stock Exchange Council, which will carefully check the accounts.

41 MARIAN ACADEMY OF MANAGEMENT STUDIES

Private Limited Company A private limited company is a voluntary association of not less than two and not more than fifty members, whose liability is limited, the transfer of whose shares is limited to its members and who is not allowed to invite the general public to subscribe to its shares or debentures. Its main features are:It has an independent legal existence. The Indian Companies Act, 1956contains the provisions regarding the legal formalities for setting up of a private limited company. Registrars of Companies (ROC) appointed under the Companies Act covering the various States and Union Territories are vested with the primary duty of registering Companies floated in the respective states and the Union Territories. It is relatively less cumbersome to organize and operate it as it has been exempted from many regulations and restrictions to which a public limited company is subjected to. Some of them are:o It need not file a prospectus with the Registrar o It need not obtain the Certificate for Commencement of business. o It need not hold the statutory general meeting nor need it file the statutory report. o restrictions placed on the directors of the public limited company do not apply to its directors 

The liability of its members is limited.



The shares allotted to its members are also not freely transferable between them. These companies are not allowed to invite public to subscribe to its shares and debentures.



It enjoys continuity of existence i.e. it continues to exist even if all its members die or desert it.

42 MARIAN ACADEMY OF MANAGEMENT STUDIES

Hence, a private company is preferred by those who wish to take the advantage of limited liability but at the same time desire to keep control over the business within a limited circle and maintain the privacy of their business. Public Limited Company A public limited company is a voluntary association of members which is incorporated and, therefore has a separate legal existence and the liability of whose members is limited. Its main features are:

The company has a separate legal existence apart from its members who compose it.



Its formation, working and its winding up, in fact, all its activities are strictly governed by laws, rules and regulations. The Indian Companies Act, 1956 contains the provisions regarding the legal formalities for setting up of a public limited company. Registrars of Companies (ROC) appointed under the Companies Act covering the various States and Union Territories are vested with the primary duty of registering companies floated in the respective states and the Union Territories.



A company must have a minimum of seven members but there is no limit as regards the maximum number The company collects its capital by the sale of its shares and those who buy the shares are



called the members. The amount so collected is called the share capital. 

The shares of a company are freely transferable and that too without the prior consent of other shareholders or without subsequent notice to the company.



The liability of a member of a company is limited to the face value of the shares he owns. Once he has paid the whole of the face value, he has no obligation to contribute anything to pay off the creditors of the company.

43 MARIAN ACADEMY OF MANAGEMENT STUDIES

The shareholders of a company do not have the right to participate in the day-to-day management of the business of a company. This ensures separation of ownership from management. The power of decision making in a company is vested in the Board of Directors, and all policy decisions are taken at the Board level by the majority rule. This ensures a unity of direction in management. As a company is an independent legal person, its existence is not affected by the death, retirement or insolvency of any of its shareholders.

44 MARIAN ACADEMY OF MANAGEMENT STUDIES

Organization structure Chart 4

Chairman/Md

Board of Directors

Mgr.-production / Purchase Mgr.- Marketing/ Sales' Mgr. - Operations

Mgr.- Finance

Mgr.-Hr.

Regional Sales Mgr.Coordinator Sales Hr.Assts ProcurementOperation Officer Assts Supervisors- Cash/Billing Dept. Finance Mgr. Supervisor Sales Officer

Workers

Assts

Customer Care Sales Men

Accountants

45 MARIAN ACADEMY OF MANAGEMENT STUDIES

CHAPTER 4

DEPARTMENTAL DETAILS

46 MARIAN ACADEMY OF MANAGEMENT STUDIES

DEPARTMENTS IN THE ORGANISATION

1. Human Resource Department 2. Finance Department 3. Marketing Department 4. Production Department 5. Operations Department

Human resource department The manager of the HR department is Mr. Roy. There are two office staff and one plant HR is working under him. Plant hr looks after the production side and others are assisting the manager HRD. HRD at Pavizham at maintains the attendance card and each worker should sign in the card before getting into work. One of the specialties of pavizham is, the inexistence of trade unions and the absence of leaves to employees. Three month probation is fixed for each new employee and also a one day training and orientation programme is offered to them. The office hours of pavizham are from 9 am – 5.30 pm. The weigh bridge and cash office are available 24 hours. A 360 degree PA is maintained in the company on a yearly basis. As a part of disciplinary measures smoking and alcohol consumption is prohibited in the company. Direct advertisement, screening and face – to – face interviews are conducted for recruitment. Grievances are handled directly by the HRD and separate records are maintained for the same. The department structure is as follows:

47 MARIAN ACADEMY OF MANAGEMENT STUDIES

Chart 5 Human Resource Department Structure

Hr. Manager

Plant Hr.

Asst.

Asst.

Functions 

To provide sufficient numbers of employment required for the company.  To employ capable persons through recruitments.  To give necessary trainings to the selected persons.  To take necessary steps to resolve grievances of employees.  To ensure employee welfare.

48 MARIAN ACADEMY OF MANAGEMENT STUDIES

1. Human Resource Planning Human Resource Planning is the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. It helps the Pavizham for anticipating and making provision for the movement of people into, within, and out of an organization. 2

Job Analysis Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. In Pavizham job analysis defines and documents the duties, responsibilities and accountabilities of a job and the conditions under which a job is performed.

3

Job Description and Specification Job description is a written record of the duties, responsibilities and requirements of a particular job. It tells ‘what is to be done’ and ‘how it is to be done’ in the organization. Job specification describes what the job demands of employees-who do it and human factors that are required.

4

Job Design It is a conscious effort to organize tasks, duties and responsibilities into a unit of work to achieve a certain objective.

5 Recruitments The requirements of employees are done directly by the company through advertisements in newspapers and other media. The company provides chances to existing and employees to suggest the names of persons for fresh recruitments.

6 Selections

49 MARIAN ACADEMY OF MANAGEMENT STUDIES

Interviews are conducted for selecting the right people for the company. Generally the interview board consists of the MD and respective departmental heads. Tests also conducted to check the skill level of candidates. 7

Training Training is given to all employees as required. One day orientation programme is given to the newly joined employees. 8 Performance Appraisal 360 degree PA is conducted by the company every year. This means the employees of the company are evaluated by their immediate superiors, co-workers, and also by the customers. 9 Health& Safety •

Cleanliness is maintained.

•

Wastes and effluents are disposed properly.

•

Proper ventilation and temperature is maintained.

•

Masks are provided for protection against dust.

•

Cold water facilities are provided in summer and hot in winter.

•

Proper lighting is maintained.

10 Welfare MeasurestheCompany gives priority to the welfare of the employees. Some of the other benefits granted to the employees are medical, employee’s state insurance schemes, provident fund schemes, festival bonus, overtime benefits etc. special allowances on occasions such as marriage, death etc is also provided. 11 Worker’s Participation

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Workers are the strength of the organization. The employees of the company are classified into three categories •

Officers

•

Staff

•

Workers

12. Employee Grievance The HR department gives special care to solve problems of employees at its initial stages itself. The company follows an open door policy on suggestions and compliances; management takes quick remedies for resolving the problem. 13. Personnel Records & Audits Personnel records are maintained for formulating and reviewing personnel policies and procedures. Complete details about all employees are maintained in personnel records, such as, name, date of birth, marital status, academic qualifications, professional qualifications, previous employment details, etc. It helps to supply crucial information to managers regarding the employees. The company will follow external audit.

.

Finance department 51 MARIAN ACADEMY OF MANAGEMENT STUDIES

Finance is defined as the provision of money at the time when it is required. Finance is needed for production of goods and services and their distribution. It is the lifeblood of an enterprise. .The department is headed by Mr. Vinod, the manager finance department. 25 accounting staff are working under this department. Promoter’s contribution, friends and family together constitutes the capital structure of the company. The main source of capital funds are from banks and unsecured loans from individuals. Banks which give financial assistance to the company are SBT, HDFC, and Federal bank. They provide 2 crore as working capital to the company, supported by creditors and stock, in yearly basis. By the year 2008 the company had an average growth of 40%, which means around 80 crores. By the end of the year 2012 it was recorded as 210 crores. 85% of the expenditure of the company is with purchasing of paddy. Statutory audits are conducted in the company after every financial year. Four external auditors are there for the company. Balan& CO. and Georgekutty& CO. are two of them. Internal audit is performed daily by the internal auditor. Funds are allocated to different departments on the basis of purchase bill. Budgeting is done on the basis of seasonal purchase. The 3 main seasons are  February – May  June – September  October – November Benefits like ESI, EPF, and FPF are given to employees. For this the employer and the employee will contribute 12% to this account. The structure of the department is:

Chart 6 Finance Department Structure

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Manager

Finance Officer

Accounting Officer Internal Auditor Supervisor Sales A/C

Accounting Asst Supervisor CashFinance Asst. Data Entry Operator Cashier

Asst.

Assst.

Asst.

Functions  Statutory compliance  Renewal of licenses  New licenses, TDS, tax calculations  Payments to contractors, salary, and consultant’s payments per month are undertaken by    

finance department. To raise necessary funds for the smooth flow of production and other activities. Prepare budgets for every year. Take control measures in order to check the accountants Control over all matters relating to finance in the organization

Finance department is fully computerized and that enable fast recording, editing and alteration of records. Finance mangers are expert in arranging necessary working capital for the smooth flow of operation. The company is selling their products both for cash and credit.

The accounts

and finance departments ensure that the salaries to the employees are paid in time. The department is also concerned with the preparation of budgetary control of the concern. The departments ensure that all the entries are properly posted in the books of accounts

Marketing department

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The manager of the department is Mr. K. N. Sathyan and the sales coordinator is Mr. Lagi Varghese. Pavizham has a well-planned distribution channel for distribution. Major marketing areas are divided into 3 zones. Thiruvananthapuram – Kottayam – south zone Kottayam, Idukki, Ernakulum - central zone Thrissur- Kozhikode - North zone The central zone is highly competitive in nature and south zone result in the fast moving of goods. The whole marketing department consists of 62 employees. Among this 55 employees are concerned with sales activities. There are 8 workers in the customer care service which is available in 24 hours. Mouth publicity is the main promotional tactics of pavizham. 37% of the rice market in Kerala is vested with pavizham. They give 8% commission and 30% margin of profit to the distributors and in local markets they give 50% discount to the distributors. To increase sales incentives are given to the distributors and sales person. Since the industry is in perfect competition price and cost are calculated on the basis of competitor’s activity. They have 150 own vehicles for the purpose of transportation. The sales volume in ton is 8 and they have 26 to 27 route * 6 days. They have average sales of 7 ton from each route. The targets are fixed on quarterly basis, they aims at a hike of 5% to 10% of sales per quarter. The most selling product is pavizham short grain matta and in the northern region it is long grain matta rice. The raw materials for the production are from Kerala, TamilNadu, Andhra Pradesh, and Madhya Pradesh. Their By-products are Rice bran oil and Rice husk. They also have 2 quality brands named pavizham brand (1 st quality) and ormabrand (2nd quality). They also exports matta rice to gulf countries. The department structure is,

Chart 7 Marketing department structure

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MARKETING MANAGER

SALES CORDINATOR

SALESS OFFICER

SALES EXECUTIVES

Functions 1. Analysis of environment Environmental analysis provides an early warning system for the forces which may impact a company’s products and markets in the future. With the help of environmental analysis the company to act upon rather than react to opportunities and threats. 2. Market Intelligence & Market Research Marketing intelligence helps to analyzing and acquiring information in order to understand the market to determine the current and future needs, preference, attitudes and behavior of the market and to assess changes in the business environment that may affect the size and nature of the market in the future. It also helps to identify successful new product development early in the process to create company growth and maximize revenues by finding a balance between costs and prices of products.

3. Segmenting, Targeting & Positioning

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Company use the market segmentation, that use to company divide the large market into small markets that can be reached more efficiently and effectively with products and services that match the customers unique needs. With the help of target marketing the company can achieve higher sales and stronger position. 4. Distribution strategies The company moves its products through direct selling and distributors. In the local area, company provides direct marketing and in other areas the distributor will supply the products. The distributors collect details regarding the movement, quality opinion, expectations etc. from retailer and pass the same concerned department. The company has several schemes and plans for distributor’s retailers. 5. Pricing strategy The companies pricing is based on two things such as competition and cost. The competitive product the company can charge lesser price than its competitors. The other pricing method is cost based, the product price must cover its cost and also get the profit. 6. Promotional Activities The marketing departments organize various promotional activities to increase sales. The company gives special attention to its promotional activities. The company is spending more on promotional activities like sales promotion. The promotion activities include giving incentives to company sales people, middleman and their sales force. These activities add value to the products.

Chart 8 Operations department

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Chief Operations Manager

Asst. Manager

Manager Exports Manager Procurement

Clerical Staf

Clerical Staf

The manager of the department is Mr. Shaju Francis. The responsibility of him is to monitor the overall functions of exports, procurement and routine office administration. The sortex machines are imported from countries like Germany and China. Each year maintenance will be done under the supervision of this department. For additional maintenance purposes a contract named

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Annual maintenance Contract is there. The inventory levels are checked by the company and the concerned departments too. The three main operations (functions) of the department are  Procurement  Export  Administration Procurement 1. Usual practice- floating enquiries of their requirements based on the requisition from concerned departments. 2. Based on their enquiry they will get quotations. 3. They make a comparison statement to identify best prices and terms and conditions. 4. Thereafter company place orders to the suppliers selected out of the statements. Export 1. It is important for the company to explore the probability of finding suitable overseas market for export. 2. Export is made directly to the importer or to the merchant exporter. The merchant exporter will give the requirement then. 3. Merchant exporter will approach the company for fulfilling export requirement. 4. Since the overseas market is so competitive company has to see many parameters for dealing with them. 5. For export, the items are produced specially as export quality. Administration 1. Administration on day – today assignments is given to employees of different departments. This is from marketing, export, purchase, finance and accounts and even production department.

Production department

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Production denotes the conversion of raw material to semi-finished or finished products with the help of call-in production process. The main aim of any production system is to produce economically goods and services required by the customers. The main purpose of production department in Pavizham group is to manufacture various types of rice products, which is having a better demand from consumers both in Kerala and the international market. Manager Mr. Manoj heads the production department. There are different sections under this department like plant, maintenance department, work shop and boiler department. All manufacturing function are carried out under this department. The main objective of preventive maintenance department and corrective maintenance of Pavizham group including minimizing brake down , minimizing long run maintenance cost providing better working condition and reliable conditions for equipment to perform at specific technical condition through service, replacement, repairs etc. Daily average production of the plants is 25 ton from 1 shift and 60% of the output are finished products. In pavizham chairman decides the plan for production. Go downs are there for each plant. The high capacity Diamond plant has a capacity of 125 tons of production from 1 shift. The pollution control board certifies the company each year. There exists an effluent treatment plant to reuse the waste water and is used for gardening and watering roads. The department structure is as follows:

Chart 9 Production department structure

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Plant Administrator

Plant Hr

Production In charge

ElectricalDept. Power Plant Maintenance Dept Dept.

Welfare OfficerStore Dept.

Internal Auditor Welding

Late

Supervisors Store Head Cyclon Workers

Asst.

Workers

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Production process Chart 9 Paddy

Paddy Cleaning

Paddy Holding Tank

Par Boiler (thumba)

Dryer Water

Waste (Chaff) Dry Paddy Storage Tank Waste Out

Steam Shaker

Destoner

Rubber Sheller WASTE (HULL) OUT

Separator

Whitener WASTE (OFFAL OUT) 61 MARIAN ACADEMY OF MANAGEMENT STUDIES

Shelly Polish

Waste (Offal out)

Rice Grader

Rice Fine Cleaner

Black Rice

Rice Storage Tank White Rice Sortex

Weightening& Packing

Loading

There are mainly 5 stages for production. 1. 2. 3. 4. 5.

Paddy cleaning Par boiling Milling Sorting Packing

Paddy cleaning

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Two workers will be assigned for one shift. At first the shaker will remove the major waste like dry grass and coir. Then it will wait out the dust and chaff. Destonner will remove small stones and the paddy will be elevated through the bucket elevator to the storage tank. Boiling The tank thumba will be filled with boiling water of 90 to 100 degree Celsius. Paddy will be then drawn into it. The immature paddy will float and it will be removed. Totally 6 hours is needed to complete this task. After boiling the waste water will be outpoured. The steam will pass through a pipe and the boiled paddy will be drawn to the drier and then to the blower. Milling The shaker removes the extra waste and destonner removes the small stones. The rubber Sheller breaks the paddy to rice. From the output paddy hull will be removed. After that separator categorize the rice to 3 categories – half broken, full broken and unbroken. Then the whitener machine separates and collect bran in a separate bin. Then the rice grader moves the full length to the storing panel. Silky polisher polishes the rice with water content. Sorting Digital CCD camera removes the black rice. Packing All except 50 kg and 70 kg bags are packed manually. Then it will loaded to the destination

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CHAPTER 5

C0NCLUSION

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FINDINGS AND SUGGESTIONS

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SWOT analysis Strengths       

The company is having a good customer base The productivity is excellent and the pollution is well controlled. The company is certified with ISO 22000-2005. Availability of pure water for manufacturing High quality products Product diversification No trade union

Weakness  

No frequent advertisement Scarcity of raw material

Opportunities   

Availability of cheap labor FMCG’s are gaining demand in the markets Good scope for few products like food supplement

Threats     

Tough competition in the market Extinction of paddy cultivation in Kerala Increasing raw material prices Export of rice is banned by the government The changing interest and preferences of customers.

CONCLUSION

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Pavizham health diet private ltd is a leading manufacture for the assured branded rice pavizham marketed in Kerala state and abroad .It is not considered to be in the state of Kerala with no independent units for the manufacture of rice. There are no other industrial groups in the state with production capacity that of Nambiyattukudy group of company the present infrastructure of theNambiyattukudy group of companies consist of 15 industrial unit. The company was able to achieve the ISO certificate for the quality management ISO 9000.The main positive aspect of the company is that it could maintain a better relationship between management and employees. Hence we can conclude the pavizhamhealthies diet Ltd will be able to reach great height.

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Bibliography 1. Kothari, Research Methodology: Methods and techniques, New Age International Publishers, New Delhi, reprint edition, 2012. 2. GuptaSasi K and Rosy Joshy: Organizational Theory and Behaviour 2004, Kalyani Publishers, New Delhi. 3. GaryDessler, BijuVarkey: Human Resource Management, Pearson Publication ,12 th edition , 2012. 4. AswathappaK: Human Resource and Personal Management 2005, TATA MCGRA HILL Publication Companylimited, New Delhi. 5. RoaVSP, Human Resource Management, ExelBooks, 2005. 6. www.pavizham.com 7. Pavizham brochures 8. Pavizham reports

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