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An organization study of Shree. DKSSK.N.Chikodi CHAPTER I 1.1. INTRODUCTION Organizational study was undertaken for 30 days at DKSSKN. Chikodi (Dist-Belgaum) is a cooperative society registered under Karnataka co-operative society‟s Act in 1969. This project refers to study of functional department of an organization. It is also meant to study the activities of various departments such as General administration, Purchase, Finance, Agriculture, Marketing, Production, Human Resource and store etc. In industrial profile, under company profile, history, vision, mission and objectives is collected. The MC KINSEYS 7s frame work model company information is collected with the organizational structure. It present a SWOT analysis of the company in the next step strength and weaknesses are internal factor, opportunities and threats are external factors to the company. Organizational study is the field that investigate impact that individual, group and structure have on behavior within organization for the purpose of applying such knowledge towards improving organizations effectiveness. In the industry, There are 3 type of sugar M (higher quality), S-1 (medium), S-2 (low quality). Sugar utilizes by-products effectively by establishing facilities to produce power, alcohol, ethanol etc. 1.2.Objectives of the study  To learn & understand the working of various functional departments like General administration , Purchase, Finance, Agriculture, Marketing, Production, Human Resource and store etc.     Outline and study the growth and working of the company from its inception. To do SWOT analysis to identify the major strengths & weaknesses of the company. To study the organization structure and its working style. To study the organization from MC KINSEYS 7s frame works perspective. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 1 An organization study of Shree. DKSSK.N. Chikodi 1.3.Scope of the study The scope of the study was Shree. DKSSK. Chikodi. The study was mainly on organization structure and activities of various departments such as General administration, Purchase, Finance, Agriculture, Marketing, Production, Human Resource and store etc. The information is being collected through various sources. Data collection: The data for the study was obtained through primary source and secondary source.  Primary Data: The primary source of data was obtained by personally meeting the employees of the industry, through interactions by interviewing and also by getting various indicators pertaining to sugar production.  Secondary Data: The secondary source of data includes the Background papers prepared by the department for Meetings etc., o Departmental notes. o Reviews and Reports. o Circulars and Periodicals. o Annual reports and Internet. 1.4.Limitations of the study The various limitations of the mini project are as follows:  Most of the information with respect to General administration , Purchase, Finance, Agriculture, Marketing, Production, Human Resource and Store department was confidential, so all the information required could not be obtained to the fullest extent.  The officials of the DKSSK factory, even though co-operative, could not spare much of their time due to their busy work schedules. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 2 An organization study of Shree. DKSSK.N. Chikodi CHAPTER II INDUSTRY PROFILE 2.1. Introduction India has become largest producer of sugar cane or sugar producing 280 MnT of cane and 16.5 MnT of sugar in 1995-96, making it the largest producer of sugar in the world, representing about 20% of cane sugar production. India also produces another 10 MnT of traditional sweeteners . India also has a large consumer base, thus makes it quite vulnerable to international sugar market, in the event of surplus or deficit situation. At the same time it has good potential and prospects. Sugar production commenced in 1920's but it got industry status in late 20's/early 30's when India had 29 sugar mills producing just 100,000 tons of sugar. The industry, facing competition from imported sugar, sought tariff protection. Sugar production picked up under the Sugar Industry Protection Act passed in 1932 and country became self sufficient in 1935. Also cane pricing act was enforced to provide good cane price to farmer. This was followed by land reforms putting ceiling on land holdings to protect small farmers, formation of cane grower cooperatives and setting up of sugar mills jointly with farmers called as cooperative mills on ownership and sharing basis. Today this sector produces 60% of country's production. Under the structured Industrial Development Policy, sugar industry was part of the Five-Year Plans introduced in 1951 and has been under the direct control of the Government ever since. Sugar industry is highly politicized and so closely controlled by the Government which has no parallel in the industry. Govt. control, covers all aspects of sugar business i.e. licensing/capacity/cane area, procurement/pricing/sugar pricing/distribution and Imports and exports. Sugar scene in India has been that of protectionism. The mills, the farmers and the consumers all have been protected one way or another. Whereas the protection to farmer and consumer has been consistent, it has not been so consistent for the mill owners. Overall government policy has given impressive results. The production has gone up to 16.5 MnT. per capita consumption up from 5 to 13 kg over a period of 3 decades. There is a potential Institute of Management Studies and Research, Kuvempu University, Shankarghatta 3 An organization study of Shree. DKSSK.N. Chikodi - what is needed, is some changes in policy to make it world class player. Winds of liberalization have touched sugar also. Licensing is liberalized. The imports freely allowed. Exports deregulated. Many lessons learnt. Competition became intense. Customer more demanding on quality and service. The document gives an overview of agricultural background development in cane. Sugar production, consumption, policy/regulations. The paper ends up dealing with important issues, aspects of deregulation, decimalization of exports, the potential and the comparative advantage of Indian sugar. 2.1.1. Historical background The sugar industry is proud to be an industry, which spreads the taste of sweetness to the mankind. The history of origin of this industry is as old as the history of main himself. Sugar is generally made from sugarcane and beet. In India, sugar is produced mainly from sugarcane. India had introduced sugarcane all over the worlds and is a leading country in the making sugar from sugarcane. „Saint Vishwamitra‟ is known as the research person of the sugarcane in religious literature. We can find the example of sugarcane in Vedic literature also as well as sugarcane. We can also find the reference of sugar and the sugarcane in Patanjali‟s Mahabashya and the treaty on the grammar of „Panini‟. Greek traveler „Niyarchus‟ and Chinese traveler „Tai-Sung‟ have mentioned in their travelogue that the people of India used to know the methods of making sugar and juice from sugarcane the great Emperor Alexander also carried sugarcane with him while returning to his country. Thus from different historical references and from some „Puranas‟ we can concluded that method of making sugar from sugarcane was known to the people of Bihar. The historical evidences of sugar industry prospering in ancient India concrete and this has helped to develop and prosper the co-operative sugar movement in India. History of sugar and sugar cane in India goes back to several thousand years BC. Indian mythology vouches for this since it contains some legends depicting origin of sugar cane. It was sometimes in 4/6th century art of sugar making was discovered. Method was crude beyond imagination. Cane was cut in pieces - crushed under heavy weight - juice thus obtained was Institute of Management Studies and Research, Kuvempu University, Shankarghatta 4 An organization study of Shree. DKSSK.N. Chikodi boiled and stirred, till it turned solids. Solids of uneven shape and size were called sarkaran, a Sanskrit term of 'gravel'. Modern word 'sugar' is derived from the word Sarkara.Thus it could be rightly said that India has been the original home for sugarcane as well as sugar manufacture. However, for all practical purposes, scientific sugar processing by vaccum pan method may have started sometimes in 20s. The development process was slow. Country met its sugar requirement through imports. In mid 20s number of sugar mills sprang up in UP and Bihar. By 1930-31, there were 29 sugar factories producing just 100000 MT of sugar and they found adverse competition from Japanese sugar. 2.2. Global scenario of sugar industry Sugar is produced in 110 countries. The leading sugarcane producing countries are Brazil, India, Australia, Thailand, China and Cuba. Sugar is extracted from two different raw materials, sugarcane and best. Both produce identical refined sugar. Sugarcane is grown in semi-tropical regions, and accounts for around two-thirds of world accounts for the balance one third of world production. The Russian Federation, Ukraine and Europe account for around 80 per count of total beet sugar production. In addition to weather conditions, diseases, insects, and quality of soil, production of sugarcane and beet are affected by international trade agreements and domestic price support programmes. 2.2.1. The Crushing season for different sugarcane producing countries Country/ Area Europe Cuba, Mexico USA Mainland Hawaii Season March-September November – July October-June January- December Institute of Management Studies and Research, Kuvempu University, Shankarghatta 5 An organization study of Shree. DKSSK.N. Chikodi Brazil Africa China Pakistan Thailand Australia India 2.2.2. World sugar trade: World trade in raw sugar is typically around 22 MMT and white sugar around 16 MMT. Brazil is the largest importer, followed by EU, Thailand, Australia and Cuba. The largest importers are Russia, Indonesia, UK, South Korea, Japan, Malaysia, the Middle East, and North Africa. 2.2.3. Sugar Pricing: Government of India fixes Statutory Minimum Price (SMP) for sugarcane according to Clause 3 of the Sugarcane Order. This statutory Minimum Price is designed through the consent of Commission for Agricultural Coast and Prices (CACP) and respective state Governments. For the year 2004-05, the rate was fixed at Rs. 74.50 per quintal with basic recovery of 8.5% 2.3. Indian scenario of sugar industry 2.3.1. Towards independence It is as from 1937 with the requests of the workers and the establishment of the Labor Party that regrouped the colored people and certain intellectuals from Indian origin as well as the recognition of the workers unions that progress started to be done. There was also a new constitution after the elections of 1943 during which two forth of the population could vote. The June-July April-November January-December November-May October- April May- December October- June Institute of Management Studies and Research, Kuvempu University, Shankarghatta 6 An organization study of Shree. DKSSK.N. Chikodi elections of 1953 made democracy move ahead when the Labor party obtained more seats. It was in 1957, the year when the ministerial system started in Mauritius that Dr Ramgoolam took the leadership of the Labor party. 2.3.2. Sugar industry in India: Mostly sugar industries are located in U.P, Bihar Maharashtra, A.P. Karnataka and T.N. The sugar industry is one of the largest organized industries with total capital investment of more than 500 crores. It employees more than 2.5 lakhs of workers besides creating extensive indirect employment over 25 to 30 million cultivators of sugar cane, dealers in sugar and confectioneries. When sugar industry was granted tariff protection the history of sugar industry started again before 1932 which gave limpet us (driving force) to growth of industry. Again the government in 1951 provided incentives by fixing minimum prices of cane and maximum prices of sugar. This incentive scheme increased the production of sugar but discouraged the cane production. We will see later on how contradictory government. Policies have adversely affected the growth of sugar industry. Unfortunately, government policy has been that of control and recontrol from time to time creating an environment inimical (hostility, untrendly) to the growth of sugar industry. Up to 1957-58 both consumption and production of sugar rose to; 20 lakhs tones each. During 1969‟s production of sugar rose to 35lakshs tones and during 1970‟s it was in between 40 to 50 lakh tones. And during 2000-01 it was in-between 80 to 90 lakhs tonnes. The first sugar mill in the country was set up in 1903 in the United Provinces. There are 566 installed sugar mills, of which 453 were in operation in the year 2002-03 and utilized 194.4 million ton of sugarcane (69% of total cane production) to produce 20.14 million tons of sugar. About 5 lakhs workmen are directly employed in the sugar. About 5 lakh workmen are directly employed in the sugar industry besides many in industries, which utilize by-products of sugar industry as raw material. India is the largest consumer and second largest producer of sugar in the world. The Indian sugar industry is the second largest agro-industry located in the rural India. The Indian sugar industry has a turnover of Rs. 500 billion per annum and it contributes almost Rs. 22.5 billion to the central and state exchequer as tax, cess, and excise duty every year. It is the second largest Institute of Management Studies and Research, Kuvempu University, Shankarghatta 7 An organization study of Shree. DKSSK.N. Chikodi agro-processing industry in the country after cotton textiles. Indian sugar industry has been a focal point for socio-economic development in the rural areas. About 50 million sugarcane farmers and a large number of agricultural laborers are involved in sugarcane cultivation and ancillary activities, constituting 7.5% of the rural population. Besides, the industry provides employment to about 2 million skilled/semi skilled workers and others mostly from the rural areas. The industry not only generates power for its own requirement but surplus power for export to the grid based on by-product –Bagasse. It also produces ethyl alcohol, which is used for industrial and potable uses, and can be used to the manufacture Ethanol, an ecology friendly and renewable fuel for blending with petrol The sugar industry in the country uses only sugarcane as input; hence sugar companies have been established in large sugarcane growing states like Uttar Pradesh, Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Andhra Pradesh. In sugar year 2003-04, these six states contribute more than 85%of total sugar production in the country; Uttar Pradesh, Maharashtra, and Karnataka together contribute more than 65%of total production. 2.3.3. Sugar production in Indian states: The following table shows level of sugar production (In Lakh Tonnes) in Indian States: State Uttar Pradesh Maharashtra Karnataka Tamil Nadu Andhra Pradesh Gujarat 2002-03 58.74 61.64 17.98 17.04 11.88 12.38 2003-04 46.08 31.99 11.57 11.9 8.81 10.77 2004-05 Estimated 50.32 22.29 13 9.84 9.75 8.32 Institute of Management Studies and Research, Kuvempu University, Shankarghatta 8 An organization study of Shree. DKSSK.N. Chikodi Haryana Uttaranchal Punjab Bihar Madhya Pradesh Other 5.99 4.59 5.11 4.21 0.85 0.91 5.86 3.93 3.88 2.77 0.94 1.09 4.03 3.82 3.37 2.77 0.85 1.58 The government of India licensed new units with an initial capacity of 1250 TCD up to the 1980s and with the revision in minimum economic size to 2500 TCD, the Government issued licenses for setting up of 2500 TCD plants thereafter. The government de-licensed sugar sector w.e.f. 11.9.1988. The entrepreneurs have been allowed to set up sugar factories of expand the existing sugar factories as per the techno-economic feasibility of the project. However, they are required to maintain a radial distance of 15 kms from the existing sugar factory. After de-licensing, a number of new sugar plants of varying capacities have been set up and the existing plants have substantially increased their capacity. The average per capita consumption of sugar is estimated at 18.3 kg/year in the year 2002-03. Based on the existing trend, this is estimated to increase to 23-24 kg/year by year 2010. At an annual population growth rate of 1.6% annum, the population of India is expected to be Crores by the year 2010 and therefore the corresponding estimated requirement of sugar will be 24.3 million tons. To achieve this, the sugar cane needs to be cultivated on an area of about 5.5 million ha with an average yield of 65 T/ha. As the increase in area of the sugarcane from the present 4.36 million hectare to 5.5 million hectare, may not be possible due to other competing crops, it becomes necessary to improve the productivity and yield of sugarcane and sugar recovery. The State wise scenario in respect of sugarcane production, cane consumption by sugar industry, sugar produced, season duration, number of units etc. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 9 An organization study of Shree. DKSSK.N. Chikodi There are 566 installed sugar mills in the country as on March 31st 2005, with a production capacity of 180 lack MTs of sugar, of which only 453 are working. These mills are located in 18 states of the country. 2.3.4. The sector wise break up’s as follows: Sector Private Public Co-operative Total No of Factories 189 62 315 566 2.3.5. Contribution of sugar industry to Indian economy: Sugar industry contributes about Rs.1650 crores to the Central Exchequer as excise duty and other taxes annually. In addition, about Rs.600 crores is realized by the State Governments annually through purchase tax and cess on cane. At the prevailing sugarcane price, the total sugar cane produced in the country value at about Rs.24000 crores per year. 2.3.6. Sugar Pricing: Government of India fixes Statutory Minimum Price (SMP) for sugarcane according to Clause 3 of the Sugarcane Order. This statutory Minimum Price is designed through the consent of Commission for Agricultural Coast and Prices (CACP) and respective state Governments. For the year 2004-05, the rate was fixed at Rs. 74.50 per quintal with basic recovery of 8.5% 2.3.7. Government Policy The present policy of partial decontrol 10% of production by each unit is supplied for public distribution system i.e. as levy sugar at Govt. notified prices admittedly below 20% of the actual cost of production. The levy sugar is I to the public irrespective of their economic status. The Institute of Management Studies and Research, Kuvempu University, Shankarghatta 10 An organization study of Shree. DKSSK.N. Chikodi balance 90% is sold in the free market against monthly\issued by the Government. This policy has been continuing since 1967-68 except for brief periods of de-control me during the years of surplus production and accumulated sugar stocks. Government announces the Statutory Minimum Price (SMP) for sugarcane every year based on recommendations of the Commission for Agricultural Costs and Prices (CACP). 2.3.8. Main problems of sugar industry:      Sugar industries in India suffering from inadequate supply of sugar cane. Sugar industry was initially unevenly distributed in the country. If has the high cost of production. The crushing season is very short .If runs for nearly 100 to 110 days in a year. By product of sugar industry like bagassese, molasses, filter cake etc are not properly utilized. 2.3.9. Indian Govt. on Sugar Industry: .The following policy initiatives are taken to boost the Sugar industry:  Government declared the new policy on August 20, 1998 with regards to licenses for new factories, which shows that there will be no sugar factory in a radius of 15 km.  Setting up of Indian Institute of Sugar Technology at Kanpur is meant for improving efficiency in the industry.  In the year 1982, the sugar development fund was set up with a view to avail loans for modernization of the industry. 2.4. SWOT analysis of the industry 2.4.1. Strengths    Indian sugar industry is the second largest producer of sugar in the world after Brazil. It has the potential to make the country self reliant in this highly sensitive essential Commodity of mass consumption. Provides direct employment including ancillary activities to near about 50 million 11 Institute of Management Studies and Research, Kuvempu University, Shankarghatta An organization study of Shree. DKSSK.N. Chikodi Workers, thus becoming a focal point of socioeconomic development of the rural India.   Supports the downstream industries by providing the raw material for forward Integration. Strong government policies as it come under essential commodity of mass consumption. 2.4.2. Weakness     Lower installed capacities leading to higher production cost. Outdated technologies. Less professionalism. Preponderance on vagaries of the weather. 2.4.3. Opportunities     High value of by-products for downstream industries. Huge potential to increase the productivity of cane and sugar recovery rate. Technology up gradation available for the byproduct utilization thus de risking the business. Increasing focus of Government towards ethanol utilization, beneficial for ethanol producing sugar companies. 2.4.4. Threats     The sector is highly vulnerable to political interest and interferences. Deterioration in the quality of soil due to overuse of fertilizer and pesticides to increase sugarcane yield. Any adverse government policy. High sugarcane price. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 12 An organization study of Shree. DKSSK.N. Chikodi CHAPTER III COMPANY PROFILE 3.1. Name and nature of the company 3.1. a. Name of the society The name of the Society shall be SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI-591247. The Society originally registered as a co-operative Society under Karnataka Co-operative Societies Act 1959, vide registration number RCS / 1427 / 68-69 Dated 05/03/1969 and subsequently converted as a Multi-State Co-operative Society‟s Act 2002 and rules made there under. 3.1. b . Nature of Business Sugar sector is one of the large scale industries in manufacturing sector. Now a day the competition in sugar sector is very high. SHREE DOODHAGANGA KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, CHIKODI is a co-operative society registered under Karnataka co-operative society‟s Act in 1969. The object of business is to encourage proper development of agricultural industrial amongst members on co-operative lives by promotions of co-operative and joint forming methods so as to secure best merits of modern large scale agriculture production to the owners of the lands. The nature of business is to encourage self help, thrift and co-operate amongst member 3.2. Founders & present management profile The founder Shree Chidanand B. Kore and chief promoter Shree Shantappa Y. Mirji felt it necessary to start the factory in this area and the factory was registered by the support of shareholders on 5th March 1969. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 13 An organization study of Shree. DKSSK.N. Chikodi 3.2.1. PRESENT PROFILE SHREE D.K.S.S.K.N.-CHIKODI, Taluka – chikodi, dist.- Belgaum Name of the Organization Location : : Shree D.K.S.S.K.N.-Chikodi. Nanadi Village. Tal.-Chikodi, Dist. - Belgaum Karnataka Resi .office Ph. No. Fax E-Mail Construction : : : : : Chikodi. 08338-276931 To 35 08338 – 276105 [email protected] Building Layout, Garden & Light Facilities. Capacity : 5500 tones sugar cane crashing / day. 20.7 M. W. Power Generation. 30 K.L.P.D. Rectified Spirit. Turnover Employees Work Shifts Major Customers : : : : 450 to 500 Crores / Annuam. 775. 3 Shifts / 8 hours per shift (no Holiday) All registered sugar traders. K.P.T.C.L. All registered exise contractors. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 14 An organization study of Shree. DKSSK.N. Chikodi Competitors : Shree Datta S.S.K.N. (Pvt Ltd.) Ugar Sugar Workers. Shree Guru Datta, Takali (Kolhapur). Products : Sugar is the main product. There are 3 type of sugar    By product : M (higher quality) S-1 (medium) S-2 (low quality) there are 3 types of byproducts    power molasses baggases 3.2.2. Board of directors The following composition of directors on the board of Shree Doodhaganga Krishna Sahakari Sakkare Karkhane Niyamit, Chikodi Name 1. Sri Mahantesh M Kavatagimath 2. Sri Ajit S Desai 3. Sri S B Umarane 4. Sri Annasaheb S Jolle 5. Sri Ashok A Patil 6. Sri Prakash J Patil 7. Sri Tatyasaheb D Kate 8. Sri Mallikarjun G Kore 9. sSri Amit P Kore 10. Sri Satappa N Saptasagar 11. Sri Parasagouda I Patil Designation Chairman Vice Chairman The Managing Director Director Director Director Director Director Director Director Director 15 Institute of Management Studies and Research, Kuvempu University, Shankarghatta An organization study of Shree. DKSSK.N. Chikodi 3.3. Historical background Considering the call of administration of independent India to go for Industrialisation and to develop agro based Industry in Rural India particularly, to sugar Industry has emerged as a source of livelihood for the Rural farming community. Observing the greater changes with Industrial policy and to provide financial support to the farmers of this backward and border area, our veteran Co-operator and Agriculturist late Shri Chidanand B. Kore and his contemparies had resorted to go for a Sugar Industry in this area after putting a enormous efforts in getting Licences, clearances, collection of equities and technical support, Shree Doodhaganga Krishna S.S.K. Niyamit, Chikodi had come into existence with a crushing capacity at 1250 TCD from 1974-75. With the assistance of Cane Grower members and higher term lending Institutions the factory was crushing at the rated capacity by fulfilling its objects till 1984-85. The then management had taken a pertinent decision to enhance the crushing capacity from 1250 TCD to 2000 TCD from 1984-85 onwards. Meanwhile a lot of changes were taking place in the field of sugar technology and financial management, and it was proved that the stand alone sugar industry would not be viable and to achieve the financial stability of Sugar Factory should go with expansion of crushing capacity and install the by-products units. A time had come to crush more cane in a shorter period and to run the byproducts units for a longer time. Then came a great change in the Management. Under the ablest leadership of the then M.P. Shri Prabhakar B. Kore, MLC, Chairman K.L.E. Society, Belgaum, the Management had taken major decisions to go for expanded capacity in crushing to install Co-generation Power Project & Distillery Units. The Annual General Body Meeting had supported wholehearted and contributed more shares for taking up sum useful units. The State had rarely seen such a Cooperator, Educationalist, Social reformer and visionary like Shri Prabhakar B. Kore who had dedicated his life totally for all-round development of farming community. Under the stewardship since 1991-92 the factory had started its changes and had taken a shape to fit itself to go a sound finance support directly to farmers and workers and indirectly to the people involved I such activities. Looking to the then circumstances and technical changes in the Sugar scenario the following projects have been implemented through years upto 1990-2004. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 16 An organization study of Shree. DKSSK.N. Chikodi 1) Crushing capacity enhancement from 2000 TCD to 5500 TCD. With modernization of Plant & Machinery at project cost of Rs.12.24 crores. 2) 20.7 MW Cogen Power Project: Most aviated & ambitious project of 20.7 M.W. Power Project was commissioned from March 2004. With the project cost of Rs. 55.60 crores. Veteran Members and HUDCO Delhi have extended their financial support. This factory as under ambit of government of India as well as government of Karnataka in availing the benefit of subsidies being given for establishment of Co-gen power project. 3) 30 KLPD Distillery: As per State Government policy the factory Management realize their dream of installing 30 K.L.P.D. Distillery Unit with continuation fermentation technology at project cost of Rs. 748.00 lakhs which was commissioned from August 2002. A good quality of spirit is produced and marketed through Government Agencies. 4) KLPD Ethanol: Considering Government of India Policy, 30 K.L.P.D. Ethopal Plant at Project cost of Rs. 181.00 lakhs was installed & presently the plant is at the verge of completion. 5) Arrack Sachetting unit: At the same time with the State Government License Arrack Sachetting unit is commissioned. Thus cane processing with its varied complex has achieved with commissioning of all bye products units. 6) Research & Development in the field of Sugarcane & other Agriculture crops. Hon‟ble Minister for Agriculture Government of Karnataka has inaugurated factory Research & Development Unit at our Ankali farm where in our Agricultural Scientists have developed 16 varieties of High Yielding & rich in sugarcane crops. Besides there is a provision for testing of soil, water, fertilizer & other Agriculture inputs in Micro/Macro Lab in the Center. 3.3.1. Cost of the Project    The factory spent Rs. 337.00 lakhs as its original project. For the first phase of expansion the factory incurred cost of Rs. 349.00 lakhs. For the second phase of expansion the factory spent of Rs. 2700.00 lakhs. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 17 An organization study of Shree. DKSSK.N. Chikodi 3.3.2. Infrastructural facilities  Nearer to raw materials.  Good transportation facilities.  Nearer to rivers place. (Krishna River)  Good networking.  Proper accommodation for its employees. 3.3.3 Vision, mission and quality policy Vision “Total customer satisfaction” Mission    Encourage agro-based co-operative industry. To develop co-operative movement in rural sector. To encourage the farmers to grow sugar cane for production of sugar and its by-products. Quality policy The Quality policy of the company is producing the sugar in better quality which helps to compete with private sector. 3.3.4. Aims & objective of the company The object of the society is to encourage proper development of Agricultural Industrial amongst members on Co-operative lives by promotions of principal and methods of Co-operative and joint forming methods so as to secure best merits of modern large scale agriculture production to the owners of lands and for this purpose.   To encourage self-help, thrift and co-operate amongst members. To acquire lands either by way of purchase or otherwise for cultivation of sugar cane and other cost and for erection of building. Godawns staff quarters etc and for installations of machineries. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 18 An organization study of Shree. DKSSK.N. Chikodi    To manufacture sugar jogger and their by products out of sugar-cane grown and supplied by members of the society and other and to sell the same to the best advantage. To under take such other activities as are identical and conductive to the development of the society etc. To acquire and install machinery for the utilization of the product and buy raw material and sell finished product is the course of utilizing and marketing the by products. 3.3.5. Achievements and awards  The STAI, SISSTA & DSTA in their 8th annual convention held at Hydarabad on 13-082005 have honoured us with the most prestigious award as the “THE BEST EFFICIENCY & PEFORMANCE SUGAR FACTORY” in the Country for the year 2004-2005. The award was given by Hon‟ble Union Minister for Agricultural, Food & Civil Supplies, in presence of Hon‟ble Chief Minister of Andra Pradesh.  The Karnataka State Co.op. Federation Ltd., had adjudged us as “The Best Co-Operative Sugar Factory In The State” and AWARD has been given to us on 14/11/2004 by Deputy Chief Minister of Karnataka.  The Energy Department of Government of Karnataka & KREDL awarded “Excellance Award” for having developed 20.7 MW Cogen Power Project on the occasion of Rajiv Gandhi Akshaya Urja Diwas on 20.8.2004, by Hon‟ble Chief Minister of Karnataka.    The Karnataka State Co-Operative Sugar Factories Federation Ltd, Bangalore had honored us for the highest recovery of Sugar in South India during the year 2001-2002. The Karkhane has obtained ISO 9001-2000 Certificate from AQSR India Pvt. Ltd., New Delhi (India) for manufacture of White crystal sugar. The Karnataka State Co-Operative Sugar Factories Federation Ltd., New Delhi have Awarded “The Cane Development Award” for higher recovery in the Country during the year 1994-95.  The Karnataka State Pollution Control Board has declared Shree Doodhaganga Krishna Sahakari Sakkare Karkhane Niyamit, Chikodi (Dist:Belgaum) as complied industry, as per the “Air & Water Acts” for the year 2005-06. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 19 An organization study of Shree. DKSSK.N. Chikodi 3.3.6. Awards The Karnataka State Cooperative Sugar Factories Federation Ltd., Bangalore had honored the company with the following awards for the:     Highest sugar recovery in South India during 2001-02. The “Best Administration Award” to the Managing Director with a cash prize of Rs .10.000/- and a certificate. The Best chief Chemist Award” with Rs.5000/- Cash prize and a Certificate. Best chief engineer with award worth of Rs.5,000/- cash prize and certificate. Best Boiler award for the year 2009-10 by Karnataka State Governmant. 3.3.7. Area of operation The area of operation of the society shall be confined to the following villages of chikodi, Athani, Raibag Talukas of Belgaum District and Jamakhandi Taluka of Bagalkot District of Karnataka State and villages of shirol, kagal Talukas of Kolhapur District Maharastra State only. 3.4. PRODUCT PROFILE  Procurement The factory obtains the sugarcane, which is required from more than 1000 farmers and by the company farms and others raw materials which are required for the operation is taken from the vendor there vendors will be evaluated on the basis of price and quality and then the required raw materials will be taken for the efficient vendors. The transport of sugar cane from farmers to the factory will be engaged throng Lorries which will be taken through bidding at the time of harvesting and also farmers themselves supply by their own bullock carts or by tractors.  Cane weightment There are 12 outlaying weigh bridges situated round about Chikodi for delivering the sugarcane from the farmers. Double check has been provided over the weightment of cane transported from out stations. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 20 An organization study of Shree. DKSSK.N. Chikodi  Operations The sugarcane, which is carried by Lorries or other, will be directly fed to the machine where the initial process starts. At the starting point these are knives which cuts sugar cane bunches into individual sugar care. After this in the next step there are sharp cutter which cuts the sugarcane bunches into very small pieces. Then it will go to trade marbs (a series of rollers used for crushing purpose) for crushing. Then the juice produced will go for further processing and the Bagasse will be lift out their itself. Then they add flocculent [used for mud setting] milk sanitation etc and then after it will go through pans and Masscuite for this Masscuite they will add sodium Hydro Sulphite (to bleach the masscuite) and it will be separated out and the molasses will be send to distillery and they white sugar will be bagged. 3.4.1. Byproducts of sugar cane The chief by products of sugar manufacturing are  Bagasse Bagasse is the by product of sugar left behind after crushing of sugar cane. It is used as a fuel in the sugar factory boiler. Excess Bagasse finds use as raw materials in paper manufacturing industry.  Molasses Molasses is a by product of Sugar refining chiefly used for alcohol production. The entire molasses output is routed to the distillers unit which is maintained by the organization.  Pressmud Pressmud is the by product generated by cane juice filtration during sugar manufacture, currently Pressmud is used as a fertilizer in sugarcane cultivation.  Power generation plant Power plant uses the fiber of the processed sugar cane (Bagasse) as fuel to generate electricity in an environmentally responsible manner. An integrated 20.7 M.W. power generates and supplies Institute of Management Studies and Research, Kuvempu University, Shankarghatta 21 An organization study of Shree. DKSSK.N. Chikodi electricity to the state grid produced from sugar cane waste used to rotate turbines 7 M.W. power is utilized in the plant remaining power is supplied to KPTCL.  Distillery Distillery plant uses by-product of sugar mill viz; Molasses as raw material for production of spirits and alcohol namely rectified spirit, ethanol and extra neutral alcohol. 3.4.2. WORK EXPERIENCE OF MANAGERS AND STAFF S. No. 1 Name Shri. D. S. Girigoudar Departments Suger Post M.D. Experience 24 2 3 4 5 6 7 8 9 10 11 12 13 14 Shri. Murughesh Hattikal Shri. A. K. Memane Shri. I. A. Golabhavi Shri. R. D. Nigave Shri. V. S. Dhamal Shri. R. C. Pattanashetti Shri. A. B. Devareddi Shri. S. L. Hakare Shri. S. B. Chinnannavar Shri. V. B. Patil Shri. B. A. Patil Shri. B. S. Rendale Shri. D. S. Hunachyale Electricity Chemical Account Distillery Cane Devt. Environment Sale Labor Welfare Time Keeping Store Dept. Purchase Cane Yard Security M.D. M.D. M.D. M.D.(In charge) Officer Officer Officer Officer Officer M.D.(In charge) Officer 22 26 24 16 19 20 21 23 22 26 18 Supervisor 16 Officer 15 Institute of Management Studies and Research, Kuvempu University, Shankarghatta 22 An organization study of Shree. DKSSK.N. Chikodi CHAPTER IV FUNCTIONAL AREAS 4.1. Administration department The most of the work of the department is future planning as a standardization of time and work and dealing with other companies. The work of administration department is conceptual decision taking with the permission of Chairman, Director, M.D, and Senior Manager. 4.2. Finance and accounts department Finance plays a vital role in the functioning of all industrial units. Finance is the life blood of the organization. In sugar Industry Finance and accounts Department has very vital roles. The financial plan basically deals with raising and proper utilization of funds. The funds can be raised by issue of shares as well as by raising loans various sources. The finance manager supported with accountant manager and an accountant assistant looks finance department Functions:      They look after the overall financial requirements of the company. They see that a proper inflow and outflow of income and expenditure is maintained. Costing and accounting is framed and maintained. Yearly budget is framed so that each department can meet their cash requirements. Budget prepared is based on sales forecasting, expenses forecasting, cost forecasting, purchase forecasting etc. which submitted by respective departments. Finance Department consists of following sub branches:     General Accounts Section Cane Accounts Section Sales Section Cash Section Accounts offices are the head of this department. Accountant sales manager, and head cashier assist him. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 23 An organization study of Shree. DKSSK.N. Chikodi Finance controlling repayment of term loans. Taking loans excepting and payment call deposits maintains all Accounts. Payment of all bills statutory and normal bills. As functioning of each section is summarized follows –  General accounts section: General Accounts are looking after the passing of bills and payments. Management is also done by General account section and preparation of financial statements i.e., Balance sheet, profit and loss account is attended by general accounts section.  Cane accounts section: The Bills and payment concerned to procurement of sugar cane, is attended by cane accounts section. Payments like cane bills, transport and harvesting bills etc., are prepared and passed in cane accounts section.  Sales section: It is looking after sales of sugar and by products molasses, Rectified spirit and other scrap materials. It is keeping records of the concerned to all sales section.  Cash section: It is looking after the payments of all general bills and salary bills apart from cane payment and it is also looking after receipt of cash and check payment. All accounts are maintained in usual manner,Various records and books kept are:  General ledger  Sub ledger  Subsidiary  Cash book  Bank book  Vouchers. Each branch prepares trading profits and loss account and Balance as on 31st March every year. And the government Auditors audits the accounts. 4.3. Purchase department Institute of Management Studies and Research, Kuvempu University, Shankarghatta 24 An organization study of Shree. DKSSK.N. Chikodi Purchase Department is headed by purchase officer is responsible for purchasing the spare parts required for the industry. The storekeeper is responsible for stacking quality maintaining and issuing to the concerned section. The important functions of the department are: Purchasing materials  Calling quotations  Preparing C.S.Q (comparative statement quotation)  Placing before meeting for decision  Placing orders for supply of materials.  Passing bills to Accounts section for payment. Purchase department hierarchy Procedure of purchasing PURCHASE MANAGER GODOWN SUPERVISORS STORE KEEPERS ASSISTANTS  Determination of purchase budget: In the beginning of the year the purchase manager, with the help of production planning department, prepare a purchase budget. This budget quads him in knowing what when he has to buy and also quality, Size and quantity of purchase.  Determination of quantity: Institute of Management Studies and Research, Kuvempu University, Shankarghatta 25 An organization study of Shree. DKSSK.N. Chikodi The stock availability in each location is determined and compared with the actual requirements. After receiving the sales order raw materials needed are scheduled according to these order level. The stock availability in each location is determined and compared with actual requirements these quantities to be purchased are determined.  Purchase order: After satisfy with the quantity of materials and reputation of the supplier, purchase order is send to the supplier. Purchase order contain includes the date of order, description of materials to be supplied made of supply. The companies of this send to the Head office, another to accounts departments and one copy send to the storekeeper.  Receiving and issuing raw materials: The department heads and the storekeeper check the quality and quantity of raw materials received respectively. The storekeeper enters the details of purchased materials in the store receipt book store receipt after the details are entered in the stared receipt book, the materials from the part of inventory. Then the general manager passes the amount for payment. 4.4. Production department Production management refers to the application of management principles to the production function in a factory. In other words production management involves application of planning, organizing, directing and controlling the production process.A well-organized production function can offer competitive advantage to a firm in the following areas.        Higher quality More inventory turns Shorter new product lead time Greater flexibility Shorter manufacturing lead time Better customer satisfaction Reduced wastage Institute of Management Studies and Research, Kuvempu University, Shankarghatta 26 An organization study of Shree. DKSSK.N. Chikodi FLOW CHART OF SUGAR MANAFACTURING Weighed cane-hauled to crushing yard Cane unloaded on to the carrier Cane cut into pieces Crushed in successive mills Juice treated with line and surplus & Heated Dry chaff fed into boilers as fuel Subsider Sucm Clear juice Filter cake used As manure Clear juice Evaporates Concentrated syrup Surplus syrup to vacuum pans Boiler to mane cite Centrifugal Institute of Management Studies and Research, Kuvempu University, Shankarghatta 27 An organization study of Shree. DKSSK.N. Chikodi Centrifugal Sugar Molasses Bagging Dispatching Power alcohol Portable alcohol Production process The main raw material in the production of sugar is.  Sugar cane. The raw materials has to go through following stages before it become finished product. The process in each stage is as under: Stage:1 sugar cane supply. The harvested and transported sugar can received is weighed on the weigh Bridge. It is unloaded and kept on the feeder tables. It is fed to the cane carrier as per the requirement. Stage:-2 milling of cane/ extraction of juice. This cane is passed through leveler and furzier by making the fine making the fine chips. It is crushed through series of mills. Imbibitions hot water is added prior to the last mill to extract more possible sugar. The bagasse from the last will is carried through bagasse conveyor and required quantity of bagasse is fed to the boilers and excess quality is sent for storage. Stage:-3 clarification and evaporations. The juice from all the mills is pumped to juice weighting scale. It is heated to about 70-77‟o c in the juice heaters. It is taken to continuous juice sulphitor in which milk of lime and sulphur dioxide gas are adjusted to maintain ph 7.0. it is again heated in juice heaters to about 100 to 105‟oc and sent to continuous clarifier. Clear juice is taken to multiple effect evaporators to concentrate up to 60oc Brix. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 28 An organization study of Shree. DKSSK.N. Chikodi The settled mud from the bottom of the clarifier is taken to mud mixer to mix with beguile and taken to continuous vacuum filer. The filtrate is transferred to raw juice receiving tank for treatment. The adhered mud on the screens is scraped and sent out as filter cake, which will be used for composting the manure. Stage:-4 crystallization purging and sugar Manufacture The concentrated syrup from evaporator is taken to syrup sulpthitor to adjust Ph 4.8 to 5.2. This is stored in the supply tanks and fed to “A” masscult boiling by taking B-seed as a footing. It is concentrated to 92o Brix and dropped to the crystallizes. This masscult is purged in the centrifugal machines. The adhered crystals are scraped to hopper and treated with hot air and cold air blower. It is sent to grader the size for gradation. This graded sugar is stared in SILOS. Weighed and bagged sugar bags are transferred to respective go down‟s for stacking. Stage 5:further process While purging A- massecuite the A-light molasses received is sent to supply tanks and fed to „A‟- molasses is sent to supply tanks and fed to „B‟- masscult boiling with b-grain as footing. This is purged in the centrifugals. This sugar is used as B- seed and excess is melted and fed to „A‟- masscult‟s. White purging low purity B- Heavy molasses obtained is used for boiling Cmasscult with C- grain as footing. This C- massecruite is taken for purging in C.F.W. centrifugal machines. The final molasses is separated, weighed and sent to storage tanks. C.F.Magma is sent to melt supply tanks and fed to „A‟ massecuite boiling . C-light molasses obtained is tired in supply tanks and used for Cmassecuite boiling and C- graining also. Production of electricity Generation of electricity is the ultimate production of VPP Ltd. Bagasse is used as the raw material for the production of energy. Bagasse helps in heating the boiler through which steam is produced. Here steam is used for rotating the turbines. As the turbines rotate faster electricity takes birth. The total production of electricity in is 15MW out of which 6MW electricity is used for home industry and the remaining is sold to KPTCL of sadalaga. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 29 An organization study of Shree. DKSSK.N. Chikodi Process of Power Generation: Bagasse Cogeneration Boiler Steam Generation Turbine Power Generation 4.5. Marketing and sales department “Marketing” is a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. American marketing association defines, “Marketing Management” as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Role of marketing manager:      To collect information for sale forecasting. Pricing the products as per the demand. To appoint new dealers and distributors. To have full and perfect knowledge of marketing conditions and policies. Marketing department also looks after dispatching goods to the their vendors. Functions of sales department :      Sales officer is responsible for selling the products. To look after dispatch of the ordered products. Secondary sales are taken properly. Suggestion, ideas, complaints, feedback from the market to the company. Stocking planning in advance, godown maintenance in advance S & R. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 30 An organization study of Shree. DKSSK.N. Chikodi Sales procedure: Procedure followed in sale of sugar, molasses, bagasse, rectified spirit and arrack  Sugar: Domestic sale of sugar: The sugar is sold in the domestic market through tender system sugar tenders will be called periodically from the various sugar traders. The leaders are intimated will in advance about the grade and quality being offered in tender. The sugar tender will be conducted at Karnataka Sugar Institute, Belgaum. The representative of KSI will be present at the time of tenders. The rates will be collected from the various parties along with grade and quantity of sugar required by them. The parties who have offered higher price will be allotted the sugar and they will be interacted to take the sugar delivery within the stipulated period. The sugar will be sold against 100% payment. The rate of domestic price of sugar in the state and the rate of neighboring sugar factories will be selling the sugar tenders.  Export of sugar: When the international price of sugar is encourage compared to domestic price of sugar, we export some of the stock of sugar. The sugar export is mainly undertaken through the mercantile exports or through EXIM Corporation New Delhi. The price and the price being offered by various sugar factories for export of sugar once the rates are finalized, we will enter into agreement with the party. Then the party will obtain a release orders from chief Director of sugar, New Delhi and necessary excise bond from the concerned authority. After completing all the necessary formalities sugar will be delivered to the party for export against full payment of the consignment. After the export shipment is completed necessary documents in programme of export of consignment will be collected from the parties the same will be submitted to the excise department.  Sale of rectified spirit: The Rectified spirit is sold to various parties through the Karnataka State Braveries Corporation Limited Bangalore. The price of the rectified spirit will be declared to the KSBCL every fortnight. The prices of Rectified spirit of various Distilleries in the state will Institute of Management Studies and Research, Kuvempu University, Shankarghatta 31 An organization study of Shree. DKSSK.N. Chikodi be compared while finalizing the rates of spirit. Once the rate and quantity is finalized party has to obtain necessary allotment order from commissioner of state excise for issue of Rectified spirit and we will enter into forward agreement with the party as per the procedure laid down by the KSBCL. Before taking delivery of Rectified spirit, the party has to make payment to the KSBCL, in turn KSBCL will advice us to give delivery of Rectified spirit by issuing “orders for suppliers‟ then the spirit will be delivered to the party KSBCL will transfer us the entire payment once in a week for the transactions occurred during the previous week.  Sale of arrack: Company is also producing arrack by using Rectified spirit from its distilleries units. The arrack as being sold to the arrack contractors sold to excise. Contracts all over the state. Thus arrack contracts interim will sell the same arrack to the ultimate consumers through sub dealers. ARRACK Molasses Distillery Treated with yeast Rectified spirit Treated with water Arrack  Export of power to the kptcl grid : Pressmud Treated with nature Compost In addition to the above company is also receiving its revenue from its power plant. Company is having a power plant of 20.7 MW capacity. It is using about 7.7MW for its own/captive consumption, the excess power of about 13MW is being exported to the KPTCL Institute of Management Studies and Research, Kuvempu University, Shankarghatta 32 An organization study of Shree. DKSSK.N. Chikodi  Molasses Bagasses: For sale of Molasses and Bagasses we use to make a vide publicity in the various news papers in Karnataka and Maharashtra and also floating the enquiries to the prospective purchasers in order to get competitive offers and better price realization. 4.6. Mechanical department This department is headed by General Manager and Chief Engineer. Maintenance of the sugar machinery and plant over having of the some in off season and to run all the sugar machinery and their devices properly and smoothly in the season and to extract cane juice for the cane in respect of less losses of sugar content in fazes that is more extraction. Function     Maintenances of the machineries in the plants. Taking care of machineries while working. Undertaking expansion & modification in the off season. Preparing plant ready for the seasonal operation. 4.7. Manufacture department This department is headed by Chief Chemist. To manufacture the maximum quality the sugar from the cane juice of superior ISI. grade minimize the sugar losses in bye-products to maintain the register and calculations of sugar entering in the house and production submit day to day report of production and recoverable sugar and excise matters in the season. In the off season maintenance of the boiling house plant. 4.8. Watch and ward This department is headed by security officer. Security of factory and control on gates and supervision day and night all over the factory area from security point of view. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 33 An organization study of Shree. DKSSK.N. Chikodi 4.9. Stores department This department is headed by store keeper. To keep the sores and required materials for the factory section wise in a proper way and to maintain their registers and big cards of indents (order goods) Functions:       Receiving the materials Unfolding the packing. Takes entry in store receipt Book (SRB) Preparing bills after receiving quality memo back. Stacking the materials. Issue of materials to concerned sections as per their indents. 4.10. Time office department This department is headed by head time keeper. To maintain the register of attendance of the factory staff to prepare the pay sheets and leave records and personal services register of the staff. The office time is from 10.30 to 5.30pm The lunch break is from 1.30 to 2.00 pm Factory Premises Inside: from 8:30am to 5:30pm The lunch break is from 12:30 to 1:30 pm 4.11. Agricultural department This department is headed by Cane development officer. Cane procurement, harvesting (to reap) and development of cane. To make the provision of proper seed of cane to the cultivators, soil testing and proper guideline for measuring etc. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 34 An organization study of Shree. DKSSK.N. Chikodi Agriculture department hierarchy Agriculture Department Cane Development Officer Chief Cane Inspector Field Assistance Slip boy Staff FunctionCane procurement activities:      Cane surveying. Cane maturity survey. Harvesting & transport arrangement for cane supply to the factory. Issue of cane cutting orders. Cane quality control. 4.12. Civil department Institute of Management Studies and Research, Kuvempu University, Shankarghatta 35 An organization study of Shree. DKSSK.N. Chikodi This department is headed by civil engineer. Construction of the roads for proper transport of cane in the area, civil works of the factory, maintenance of the factory building etc. Functions    Pipeline Maintenance – Factory requires 06 lakhs ltrs water per day. Building Maintenance. Plant expansion. Civil Foundation & Buildings – The main work of this section is constructing the buildings & roads. Here they build the quarters for factory workers & officers & also construct the Internal & External roads. 4.13. Labor welfare department This department is headed by labor welfare officer. To look into the welfare activities of the worker and solve the labor problems. The factory provides all the necessary facilities. The purpose of providing welfare amenities is to facilitate the development of total personality of working class for physical, mental, psychological, cultural, social, moral and intellectual development the factory provides well planned residential accommodation, medical facilities, educational facilities, drinking and washing water, canteen, cycle stand, library etc. In addition, the factory has following non-statutory schemes for workers welfare. Consumers society, uniforms to watchman production and engineering workers etc. Objectives     To secure for the worker fair wage. To improve the working condition and express share in the increased profitability. To ensure the workers security of employment and protect larger interest of the society. To establish relationship between management and employees. Function:  To promote harmonious relation between the factory management and workers. 36 Institute of Management Studies and Research, Kuvempu University, Shankarghatta An organization study of Shree. DKSSK.N. Chikodi  To bring to the notice of board of directors grievances of workers and to act as a liaison officer between management and labor.  To study and understand the point of view of labor in order to help the management to shape and formulate labor welfare policies.   To advice and assist the management in fulfillment of statutory and other obligations. To encourage the formation of work joint production councils, co operative societies and welfare committee and supervise their work.  To secure the provision of amentias such as canteen, washing, first aid, shelter, rest rooms, launch rooms etc.  To suggest the measure which will serve to rise the standard of living of workers and in general to promote their well being. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 37 An organization study of Shree. DKSSK.N. Chikodi CHAPTER V APPLICATION OF MC KINSEY 7 S MODEL The first three element are strategy, structure and system are considered as hardware of success, the meet four elements are style, staff, skills and shared values / super ordinate goals are the software of any company. 5.1. Structure The general admission of the company is carried out by the following departments and there is only downward communication in the DKSSK company i.e The information flows from the top level of management to the lower levels. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 38 An organization study of Shree. DKSSK.N. Chikodi ORGANISATION CHART BOARD OF MANAGEMENT MANAGING DIRECTOR SECRETARY GENERAL CIVIL STORE MEDICAL HEAD TIME KEEPER CHIEF C.D.O. CHIEF A\C OFFICER OFFICE L.W.O. WATCH & SPDT WARD MANAGER ENG. KEEPER OFFICER TOOLROOM&DIESEL PUMP CHIEF CHIEF ENG. CHEMIST DIST. CHEMIST CO-GEN CANE YARD AGRIL DEVPT. GODOWN SECTION GENERAL CANE A\C. A\C. SALES CASH COMPUTER GAD SECTION EST SECTION MEETING SECTION INWARD & OUTWARD SHARE SECTION TYPING SECTION GUEST HOUSE LEGAL PURC. SECTION SECTION 5.2. System Institute of Management Studies and Research, Kuvempu University, Shankarghatta 39 An organization study of Shree. DKSSK.N. Chikodi System refers to how the production system, distribution, information system and security system is maintained in its company. a. Production System The process of production consisting of input of sugar come and output of the sugar in DKSSK. b. Distribution System The distribution system of the precuts produced is in the following way:    Direct sales are made with in the state and outside the state. Indirect sales are made outside the country and the depot sales are also made. The producers are also sold directly to the consumers or sold to the wholesales. c. Information System Structure of information system Chairman Managing Director Senior General Head of the Department Section Institute of Management Studies and Research, Kuvempu University, Shankarghatta 40 An organization study of Shree. DKSSK.N. Chikodi d. Security System The DKSSK has strict security system. In the maintenance of accounts after the record have been closed, the records are kept in the room and closed the room is opened only with permission of higher authority. If the visitors went to inter they have to take prior permission with the authority and after entering they are not suppose to go any dept other then the department from whom they took the permission. 5.3. Strategy The way in which a business aims to improve its position in relation to its competition is embodies in its strategy or the way of doing something in an organization. In DKSSK, introduce new technologies and products strategies importance in time with national objective to improve quality reliability of products there by attaining the international standards. 5.4. Skills Skills here refer to how the training will be given to the employees and employees. The training will be given in 2 months they are  On the job This is one of the oldest method, under this method, the individual place is on the regular job and taught the skill necessary to perform that job on the job training has the advantage of giving first hand knowledge and experience under the actual working conditions. This training is given to employees.  Off the job In this methods trainee is separated from the job situations and his attention is focused upon learning the material related to his future job performance. There is an opportunity for freedom of expression for the trainees. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 41 An organization study of Shree. DKSSK.N. Chikodi 5.5. Style The style which is portrayed to outside world is derived from the style and behaviors exhibits inside organization. The internal style of the organization effects new staff feels thinks and does their jobs. Therefore an organization is reflection of its structure.  Top down / Bottom up At the time of policy framing, the style flows from top to bottom. If the policy has to be framed then the policy has to be taken by upper level & it flows towards lower level. But when the opinion of the policy is to known, at that time the style flows from bottom to up. This is to know the attitudes of the employees about the policy which is framed by the upper level.  Authoritarian / Participative Only the upper level is having the authority to make the decisions in the factory.  Regarding policy matter Board of management will take the decision in case of policy making.  Financial matter If the financial matter is within the amount of Rs 20,000/-, Managing Director will take the decision. And if financial matter is more than Rs 20,000/-, then the board will take the decision. 5.6. Staff Good hard working citizen play essential role in the development of nation. The employees are responsible for the success or failure of company. The company has totally 775 workers are working in the company. They are divided as follows Institute of Management Studies and Research, Kuvempu University, Shankarghatta 42 An organization study of Shree. DKSSK.N. Chikodi No. of Workers 1) Permanent worker 361 2) Seasonal workers 240 3) Consolidated worker 74 4) Daily wage worker 100 775 Company is paying salary of Rs. 55, 00, 000 per month to its workers. 5.7. Shared values Shared values are refers to company policies. In DKSSK the following policies are maintained.     Quality policies Environment policies T.P.M. policies (Total productivity management) Quality policy Total customer satisfaction is our company goal. To achieve this we at S.D.K.S.S.K.N. committed to produce quality white crystal sugar as per the Indian sugar standard through continual Improvement in company process, people & stake holders. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 43 An organization study of Shree. DKSSK.N. Chikodi  Environment policy The DKSSK is committed to comply with the requirement of relevant environment regulation and standers by implementing environment management system and the continually improve its effectiveness.  Total productive management The DKSSK is committed in maximizing limited is committed in maximizing overall plants effectiveness to make Mysore sugar company a world class company through total productive manufactured by    Promoting automates maintenance culture. Involving all employees and building culture. Minimizing the losses and reduced the cost. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 44 An organization study of Shree. DKSSK.N. Chikodi CHAPTER VI SWOT ANALYSIS 6.1.Strengths:         Strong network -location, transport, and infrastructure synergized and producing better results in an integrated atmosphere. Good financial support provided by both State and Central Government. Concept of Multi joint-product. It is producing own electricity which has reduced the cost of electric bills. It also sells electricity to the KPTCL. They have foreign customers too. Factory has a very good, properly working organization structure. Superior product quality 6.2. Weakness:     High cost of production Lack of incentives. Training required for employees. Lack of skills, ability and knowledge in employees 6.3. Opportunities:       Proper frame work of policies and procedures. Non-establishment of the programs to motivate and develop effective manpower. Restricted market opportunities shirked a better price for finished products. To provide comfort and convince to employees for doing the work. To facilitate the smooth running of the manufacturing process. It is located in the best area. Here all the resources are available in less cost. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 45 An organization study of Shree. DKSSK.N. Chikodi 6.4. Threats:     High competition in procurement of raw material. Due to uncertain rainfall procurement of raw material is being affected Decrease in Sugarcane growth. Diversified resources such as raw materials due to many sub unit initialization. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 46 An organization study of Shree. DKSSK.N. Chikodi CHAPTER VII FINDINGS, SUGGESTIONS AND CONCLUSION 7.1. Findings         The prime aim of the company is to produce its quality products, which meets the industry standards. One of the important things is that after each stages of the production process quality check is done which increase the quality of final product. Good quality product. More promotional efforts. Better welfare facility to the workers. The relation between Management and Workers is good. Better facilities provide to the share members. Better Education facilities provide to the childrens of the share holders & workers. 7.2. Suggestions   It is observed that canteen facility unsatisfied, utensils used to serve tea, snakes are not clean ( especially tea, snakes). So management should look into this problem. drinking water facility with acquagard water filters are not in working condition therefore immedeatly company has to take the initiative to provide acquagard filters for each department.     There is no separate lunch room for workers, so management should try to provide comfortable & relaxed room for lunch. Company should provide meditation class for each workers for 15 minutes daily. Which helps to there case the concentration level among the employee during working hours. Factory should conduct entertainment program based competitions like annual gathering can get there families monthly refreshment etc. to improve employees morale. Suggestion Scheme : Workers participate in decision making process is very less, it is essential to motivate workers participation in management. So management should invite Institute of Management Studies and Research, Kuvempu University, Shankarghatta 47 An organization study of Shree. DKSSK.N. Chikodi suggestions from worker to improve production & Suggestion Box system should be implement.   Safety measures, latest technologies education, training should provide to each worker to develop safety consciousness. In certain jobs workers necessitate personal preventive equipments like goggles, masks, helmets which is not yet provided to worker in some area. But workers in some area require these equipments, which protect worker during work time.  To improve the productivity: To meet global challenges Indian sugar industry should adopt & install improve plant & machinaries to reduce cost of production. Similarly it has to invest in R & D activities to produce good quality & high yielding cane.   Greater emphasis has to be laid on productivity techical guidance & services to cane growers. The company should take expansion project to enhance its crashing capacity as early as possible to take advantage of large – scale production . 7.3. Conclusion Doodhaganga sugar is one of the co-operative companies in the field of sugar cane production. I got the opportunity to visit D.K.S.S.K.N. Factory. I got very good co-operate from all the employees at DKSSK company during my organization study. Every organization makes sure that its employees are satisfied and are happy working in the organization. Shree D.K.S.S.K.N. is a company were more than 775 employees are working. The company is taking much of the care about the employees. Most of the employees feel themselves proud of working in such a big organization. Inplant training helped to know how different employees/ workers have different skills, talents, abilities, attitudes etc., and how they are being co-ordinated and upto maximum extent in achieving the organizational goals. All together it was good learning experience. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 48 An organization study of Shree. DKSSK.N. Chikodi LEARNING EXPERIENCE The inplant training has created a sence of practical exposure and enlightenment in my mind as to what actually an organization is and how theoretical concepts are practiced in with only theoretical knowledge, several management concepts were slightly difficult to analyse. However, after in-plant training, I have felt empowered with confidence to understand different management concepts in a pragmatic manner. The inplant training helped me a lot in recalling the theoretical concepts, which I learn in my 1st year MBA. I have gone through in plant training of for 30 days from 10th Aug 2011 to 10th Sep 2011 helped me in gaining more knowledge about the actual working of the organization. I got great support from employees of all levels. The in plant training at DKSSK was a value-based experience. It is largest sugar production company. In this factory the administration department give more important to safety. It is well equipped and advanced technology is used in production process. They used advanced technology in preventing the accident inside the factory, and in production unit. The executive director who is appointed by the administrator of the company. All the major decisions effecting the growth and profitability of the company are taken by him in line with the approval of the board of directors every department is headed by it is respective managers. As my 1st day experience met to the general manager of the organization and got permission to do the project work than they set me to external guide and HR manager also Mr S. L. Hakare and I introduced myself them. My 2nd day experience was studying about the company history, origin, type of authority I studied in general administration office. My 3rd day experience I strate to study about the department wise manager gave me a introduction about all department, firstly I done the information about the HR Department. The HR department play an important role in any of the organization. The HRD at DKSSK acts as one of the pillars of the organization. It is visited with the responsibility of activities such as determining the man power requirements, recruitment, selection, training and development, promotion wages and compensation of all the employees of DKSSK. The auditing of the entire Institute of Management Studies and Research, Kuvempu University, Shankarghatta 49 An organization study of Shree. DKSSK.N. Chikodi department is carried on by the HR on a continual basis for the smooth running of the organization. This dept has took four day time. Than 7th day experience was production department in this department I got clear information that how they converting row material to finished goods with practical experience. My 8th day experience was purchase department in this department I learned that they are purchasing sugarcane recovery, purchasing the spare parts required for the industry. Than 9th day I visited to finance department as we, all know that finance is lifeblood of every organization, I personally had a look at the finance department, I came to know the importance of finance department, and I came to know the different tools they use to have a control over the liquidity position of the company. Then 10th day experience Agriculture department I came to know this department where they have their operation areas, and their work in this department. Then 11th day experience cane department In this department to know the types of sugarcane. I came to know in all information about cane. My 12th day civil and engineering department in this department having main role for smooth running production because all most all workers are belongs to Engineering, ITI, Diploma qualification. Then 13th experience, I came to know the marketing department in this department manager very experience person to marketing their production some time hold their selling while price is decrease. Then 14th day I came to know the security department in this department is giving protection to organization it has divisional work furs like security officers, security inspectors, head guards and watchmen for this purpose company having safe. Then 15th day I came to know the Time office department, work time of the factory workers and officers. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 50 An organization study of Shree. DKSSK.N. Chikodi Then 16th day I came to know the store department how to store sugar, and their storekeeper work. Then 17th day I came to know the importance of Managerial Knowledge such as planning, organizing, staffing, directing, controlling, and decision making. I came to know about the rules, regulations, policies, and procedures of the company, and to what extent employees are following the rules and regulation laid down by the management. I came to know the punitive actions taken by the management against the individuals who breaks the rules and regulation of the company. It takes time taken 8 days. Then 25th day I came to know how communication acts as an important tool for the smooth functioning of the organization and how we should communicate on different channels and with different grades of peoples. Then 26th day Infrastructure facilities canteen, Hospital, education, library facility, transportation facilities, it takes time 2 days. Apart from these I came to know about the leadership traits such as ability to motivate, counsel and train sub-ordinate in a humane approach to their problem, develop personnel support and team spirit. In plant training also helped to me in knowing the importance of group effort when compared to individual effort in organization. Importance of human relations was known, which helps the this management getting the things done through its employees. Personally. I gained many valuable insights in DKSSK which help in my career. It is about the working environment, about deal with the employees, about the attitude required to sustain in an organization and so on. In total, I am very much benefited with this in plant training. Once again, I thank the authority of DKSSK of giving me this opportunity to carry out the in plant training and expose myself to corporate field and I thank DKSSK all employers and as well as who are helping and for giving me continuous guidance to make this project work successful. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 51 An organization study of Shree. DKSSK.N. Chikodi MINI RESEARCH I CHAPTER 1.1. Introduction: A labour problem has arisen with the beginning of the small scale to the large scale industrial production. In many country of the world capitalism may be considered to be a very important sours of labor problems in this economic system out at all the factors at production land labor capital organization and enter prenew capital is regarded as the most important factor at production the capitalist collects all those factors at production puts them into the process at production the total production is undertaking by all factors and distributed among them by the capitalist and he test the output and the shares held by himself as the profit under this system labor which plays a key role in modern production is replaced by a worker doing job on wages. In the primitive society when the agriculture was the primary employment the people as a means of livelihood there was no conflict between employer and employee production was undertaken on a very small scale by the member of the family for their fulfillment of their own stat stance needs, bread, cloth and shelter or house the labor problem started with the change at the scale of the production the requirement of the society increased with the expansion of education and setting up new modern society consequently the scale of production gradually changed and it has began to be undertaken on the large scale . In this new economic system. The labor stared selling its labor power to the capitalist for wages new worker was the double edged weapon certain pushing factors in the rural areas or villages, forced them to find out some jobs in the cities or new industrial estates with the result that millions of worker there this tendency of worker overcrowded the cities. The labor was compelled to work on very low wages under the unfavorable condition of work terms and condition of their services were very poor, in the first phase of industrialization labor was unorganized and there fore was forced to be the victim of the employee who was very powerful controlling the entire means of productions. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 52 An organization study of Shree. DKSSK.N. Chikodi 1.2. Meaning of labour The term labor has different meaning in economics by labor we mean any work whether manual or mental which undertaken for a monetary consideration the terms like worker work man labor and employee are practically the synonyms of labor which are generally used in the discussion on the labor problem do by labor we mean wage labor that may be different as workers who do not have any other proper source of their livelihood except the sale of their labor in return for wages or salary thus labor today includes worker both physical or mental who work for other for given payment is cash or kind. 1.3. Main features of labours It is here very important to not that labor is absolutely different from other means of production since labor is a living thing that causes all the difference main features of labors are discussed below which distinguish it from other means of production     labor is inseparable from the labor him self to Marshall “the worker sells his work but the himself remains his own property” A labor has to go himself to sell his labor therefore the environment in which labor has to work carries at most importance in the supply of the labor. Labor is a perishable commodity it a worker does not work for a particular period he will never recover has lot hours labor cannot be stored up like other goods. Labor has a very weak bargaining power worker are almost poor and have no reserve funds they cannot easily with hold their labor from the market Fritch roll rightly remarks “The worker has no remark price”    The supply of labor is limited in the short period it cannot be increased in its demand on the other hand its supply cannot be curtailed immediately even its wages falls. Labor is no so mobile as capital it is because of the different language, customs etc that the worker face difficulties in their movement from one place to another. While taking labor any other policy into consideration we have to keep in mind that labor is not any factor of production but it is also an end of the production. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 53 An organization study of Shree. DKSSK.N. Chikodi  Labor is only the factor of production which is active and a human and social consideration should also be taken into account in the discussion of problem connected with labor. 1.4. Significance of labour As a factor of production labor is the most significant factor the utilization of other factors largely depends on the time and efficiency of labor as a matter of fact workers are human being capable of holding the entire responsibilities of production and achieving higher objectives workers have their own aspiration of life and hence it handled properly they may lead to the success of industrial out put or industrial growth of economy since Labor is now organized and comprises conscious worker they cannot be ready to obey the arbitrary and discretionary dictates of their employers or managements today they deal with the management not only as individual persons but also as the members of trade unions which have infect increased their strength and professional consciousness. 1.5. Rise of labor problem in India: Labor problem in India has also arisen very recently with induction of industrialization and its progress in the country before the beginning of large scale production in the industrial sector the cottage industries were managed by the head of the family in cooperation with other family members there was no conflict between workers, carrying their job such are unit because the belonged ultimately to a Family but the beginning of industrialization helped develop a modern society in the country which was divided into two section. Capitalist or employers and workers on various issues whether is capitalist society or socialist pattern of society every agent attempts to get the largest share in the profit and that gives rise to labor problems in any country of the world, thus the growth of labor problems in India can be seen or studies in the context of industrial development and decline at cottage industries in the country 1.6. Factors Responsible For The Growth Of Labor Problems In India : Modern industrialization in most of the developing nations which has led to increase in the conflict between Industrialist and the labor all economic powers are centralized in the hands of a Institute of Management Studies and Research, Kuvempu University, Shankarghatta 54 An organization study of Shree. DKSSK.N. Chikodi few capitalist while masses of have to depend for subsistence upon their low wages in such condition labor problems begin to appear these problems have different dimensions following are game of the factors responsible for the growth of labor problems in an economy in India. 1.7. India’s industrial policy in the post: The British govt never thought at laying down a heal the industrial policy of laisser faire and material Darwinism destroyed our cottage industries. The Indian industries set up in the second phase of industrialization having sound economic position could services. 1.8. Disintegration and Decline of rural industries: During the 17th and 18th centuries India used to export its various commodities silk, goods etc to other countries such as Japan, Indonesia and several countries of Europe, west Africa, middle east and central Asia towards the end of 18th century cottage industry started to be replaced by modern industries the heavy industries , rural industries could not stand in competition and hence they gradually decline million of jobless persons who used to work in rural industries had find out employment in the cities. In the modern industrial sector more over the surplus labor class had to emigrate from India to other British countries. 1.9. Decline of Rural economy: Before British rule majority of Indian population lived in the village were independent having self sustaining economy, the agriculture output was sufficient to fulfill the needs were fulfilled by local artisans who were fed by peasants the increased population and action of cities and later on British economic policy impaired the agro based rural economy in India. The British rulers introduced zamindar system in India zamindars were the mediators between the state and farmers, they helped the Government, in collecting land revenue and gave a permanent land support to British. British rulers at the grass roots level. In the absence of tax payment in time zamindar used to deprive the farmers of the right of cultivation of land one the land at peasant was confiscated He was forces to work for his zamindar as a bonded labor the mallrats of zamindar against the marginal formers led to an Institute of Management Studies and Research, Kuvempu University, Shankarghatta 55 An organization study of Shree. DKSSK.N. Chikodi increase in the number at landless worker decided this the poverty of masses and problem at indebtedness of mass of formers forced them to become landless labor. Similarly the pressure of population and sub division and frequentation of holding also force the surplus labor force to work as a labor either upon the land at big land owners or in the industries being established in the urban areas or big cities. Land Reforms: Land reforms such as abolition of zamindar system redistribution of land mechanism of agriculture have aggravated the problem rural labors Dr.R.K.Mukharji rightly comets “Every circumstance which has wreaked the economic position of the small holders has increased the supply at agricultural labors. The labors loss at common rights in the rural economy. The subdivision of holdings the misuses at collective enterprise multiplication at rent receivers free mortgaging and transfers at land the decline of the cottage industries. Socio economic structure: Indian society has a special socio economic structure in the country side it is based on caste and joint family system and several other traditional social costumes these specialties of Indian society restrict occupation mobility and force people not to leave their own hereditary occupation or village where they work or live. Myers here states despite the which average villages faced the socio economic structure frequently held him and even today attract him back from the cities the typical Indian villages family is a joint family each thus presents a social system particularly for incompetent and employed youth. But in recent year a large member of worker has been concentrated in the industrial areas situated mostly in big cities and they have been ultimately forced to be settled their lands. 1.10. Meaning of industrial labor: Literally the term industrial labor to all those workers are employed in large, small and cottage industries but in India this terms is used in a restricted sense it refers to only those workers who Institute of Management Studies and Research, Kuvempu University, Shankarghatta 56 An organization study of Shree. DKSSK.N. Chikodi are employed in organized industries, industries converted by the factories act it does not include the worker employed in cottage are house hold industries. 1.11. Characteristics or Features of industrial labor: Industrial labor in India has several distinct features the main features are,  Illiteracy: A good proportion of our industrial worker are illiterate and uneducated so they are not able to understand the problem effecting their interest and the interest at the industry in which they are employed and how is their work heavy and what to get payment for their work they took low payment for heavy work due to illiteracy.  Disunity: The industrial worker at our country are not united on the basis of trade or occupation they are divided and subdivided on the basis of caste, language, religion etc. In short there is lack of unity among our industrial worker.  Lack of discipline: There is no discipline among the industrial workers absenteeism without any reason, indiscipline, moving from one job to another job etc are very common with our factory worker.  Lack of organization: The industrial workers are unable to organization themselves that is the reason why most of the trade unions in the country are controlled not by worker at the factories but by out sider especially politicians and the industrial labors have the problem of lack of organization.  Low efficiency: The efficiency of industrial labor is relatively low for instance an American worker can attend to 1,120spindless in a cotton mill a British worker 600 spindles, a Japanese worker 240 spindles but an Indian worker can manage only 180 spindles. 1.12. Problem of Industrial labor Institute of Management Studies and Research, Kuvempu University, Shankarghatta 57 An organization study of Shree. DKSSK.N. Chikodi It is regrettable fact that their have not been sufficient and improvement in the condition of Indian labor. The Indian labor is not properly organized and does not have its own leadership but depends upon out side guidance the non labor leader are politically motivates and are not really not interested in the labor welfare as a matter of fact they more often then not use the labor unrest as a means to grind their own instead of helping the labors genially the government no paid enough attention to the real problem and needs of labor and though there is labor legislation intended to help the labor but in actual practice there is little improvement in the condition of labor following are chief problem of Indian labor.  Problem of migration: One of the main problem of Indian labor is the problem of migration the increasing pressure on land due to population explosion the ever growing army of landless tillers the social stigma on Harijan increase in indebtedness break down of joint families fast means of communication ravaging of cottage industries and city oriented communication are some of the causes responsible for the exodus of villager and their influx into industrial labor two while by joining the army of industrial labor there is same improvement in the economic condition and relating of pressure on land the family and social life of these new recruits gets upset this creates problem of social adjustment decrease efficiency and comes in the way of the development of healthy employer employee relationship.  Problem of recruitment: The second main problem of the industrial labor is that of recruitment as yet there is little direct recruitment most of is done through intermediaries, the services of the employment exchange are available to very few as most of the worker are depended upon intermediaries and as intermediaries have special type of relationship with the employers they can afford to be have arbitral with the worker they receive cut back and have also to be propitiated by other gift.  Problem of absenteeism: The labor force habiting from villages is usually unable to cope with the alien environment of light is not available in cities besides slums in which the worker live are extremely unhygienic Institute of Management Studies and Research, Kuvempu University, Shankarghatta 58 An organization study of Shree. DKSSK.N. Chikodi and great breeders of diseases accordingly the worker are usually unwell they consume liger and visit prostitute all these factors combined result in large absenteeism from factories. The chief causes to absenteeism in India are illness, night shift alcoholism, migrating instruct industrials accidents, prostitution, laziness frequency of festivals and litigation the absenteeism produces adverse economic effects industrial production and the earring of labor besides it causes rift and tension between employer and employee the various measures presently taken to meet this problem are grossly inadequate a committee set by the Bombay textile mills to investigate the causes of absenteeism. And make suitable recommendation for Remedying the problem come the following conclusion proper conclusion for work in the factory adequate wage protection from accident sickness and facilities for obtaining leave rest and recreation constitute the moat effective means of reducing absenteeism.  Problem of trade union: In India the trade union movement is not as yet well organized and developed the lack of education, susceptibility to religion influence generally fatalistic out look deep indebtedness and opposition by employers and intermediaries are same at the factors responsible for slow and uneven growth of trade union movement the labor does not have its own leadership and has to depend upon politician who have furtherance at their own interest rather than labor welfare at heart.  Problem of industrial disputes: The capitalist economic and social structure the policy of creating dissention among workers by intermediaries of worker labor legislation and paying of compensation are the problems which lead to frequent strikes lock outs at times these disputes then violent and labors suffers heavily.  Problem of wages: The chief problem of worker is that they are poorly paid in same cases these are below subsistence level due to lack of adequate wages the labor is unable to give proper education to his children he cannot maintain his health this leads to decline in his efficiency and in the ultimate analyses the productively falls. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 59 An organization study of Shree. DKSSK.N. Chikodi  Problem of indebtedness: On account of low wages bribes to intermediaries regent drinking and prostitution most of the worker are permanently and deeply under dept it has been estimated that more than 2/3 worker of big industrial towns are under dept exceeds their 3 months salary due to heavy indebtedness the worker cannot think progressively and Consider whole of his life unrelieved drudged the causes of indebtedness are many usually the worker is born in dept and due to drudgery becomes desensitized this farther complicates his problems and desires him to die a pauper in dept.  Problem of low living standard: Due to low wages and rising spiral of prices the living of standard of an Indian worker has been drooping constantly a comparison of wages in India with other countries will bring into relief the pathetic plight at the Indian, Indian labor the labor worker in India are underrated and more than 39% suffer from serious malnutrition in U.S.A75 year cloth is used per head where as in India it is only 16yard there are many causes of caw living standard the main among them.        low wages illiteracy population exploitation intoxication lack of fatalism Problem of health: Due to low wages and low standard the worker are unable to eat whole same balance diet addicted to smoking, tobacco chewing, drinking and visiting cinemas and bawdy house all these reason coupled with unhygienic living condition in adequate clothing inclement weather heavily Institute of Management Studies and Research, Kuvempu University, Shankarghatta 60 An organization study of Shree. DKSSK.N. Chikodi dispose workers to disease and infection according to Prof.B.P.Adarker a worker loses 14.6 days a year due to ill health.  Problem of efficiency: According to the report of tariff board a worker in India can handle 180 spindle where as his counterpart in Japan, England and America can handle 240,250 to 600,1220 spindles respectively as a rule the efficiency of Indian worker is 1/2 or even 1/3 of the worker in progressive countries ill health lack of education, lack of will to learn and progress eradication to bad habits are some of the factors responsible for the low efficiency of the Indian worker.  Problem of working condition: The condition of the work of the majority of labor are extremely bad and deplorable and leave much to be desired most of the factories are ill ventilated and illumination is improper the living and working condition are making worker toilet etc, do not exists in extreme a weather there is no provision to minimize its effect due to lack of amenities and hazardous working condition the efficiency of worker drops and they are expensed to accident and infection. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 61 An organization study of Shree. DKSSK.N. Chikodi II CHAPTER Research Design of the Study 2.1. Title of the study: The title of the study is “Empirical Study On Labor Problems In Sugar Factory” 2.2. Statement of the problem: The researcher selected the topic problems faced by the labors in sugar factory, because labor face lot of problems by their employers and due to other reason here the researcher wants to find out this problem through research at a factory. 2.3. Objectives of the research:      To study about the labor problem in sugar factory. To know socio economic problems of labor. To study the problems faced by the labors due to lack of facilities. To know the problems faced by the labors from their officers. To understand the problem of the worker while working in sugar factory. 2.4. Scope of the study:   The study is based labor problems in sugar factory only. The research is covered labor problem in sugar factory rural area. 2.5. Research Methodology Institute of Management Studies and Research, Kuvempu University, Shankarghatta 62 An organization study of Shree. DKSSK.N. Chikodi Methodology refers to the method used to collect the required data for research work. The respondents were selected on randomly. The survey was conducted for a period of one month. The data was collected with the help of the structured questionnaire. Sample size The sample size was 25 employees. And all of them responded well. Sources of the Data collection For the purpose of the study data has been collected from two different sources. Primary data : The primary data are those which are collected a fresh and for the first time and these happen to be original is character. Information which we have been gathered for the first time, called primary data, I have selected the Survey method or Questionnaire method for collecting the primary data from the laborers. Secondary data : The secondary data are those which have already been use by someone else and which have already been passed through the real process. Secondary data is the information that already exists. Secondary data was collected through various sources such as, Internet, books. 2.6. Limitations of research:  This research have limited time.  This research conducted study purpose only.  The researcher may not get respondent on time.  The researcher may find difficulty to build rapport and collect data. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 63 An organization study of Shree. DKSSK.N. Chikodi III CHAPTER ANALYSIS AND INTERPRETATION OF THE DATA Table 1 Age of the respondents Sl No 1 2 3 4 5 Particulars 18-25 26-35 36-45 46-55 Above 55 Total Respondents 4 3 7 7 4 25 Percentage 16 12 28 28 16 100 Interpretation : It is clear from the above table that about out of the 25 respondents 16% of the respondents are in the age group of 18-25 years, and 12% are in the age group of 26-35, 28% of the respondents are in the age group of 36-45, 28% respondents are in the age group of 46-55, and 16% respondents are in the age above 55. Table 2: Education qualification of the respondents Sl No Particulars Respondents Percentage 64 Institute of Management Studies and Research, Kuvempu University, Shankarghatta An organization study of Shree. DKSSK.N. Chikodi 1 2 3 4 5 6 Primary SSLC PUC Illetarate Degree Others Total 4 9 5 0 4 3 25 16 36 20 0 16 12 100 Interpretation : out of the 25 respondents 16% are complited primary education, 36% are SSLC, 20% are PUC, none of the respondents are illetarate, 16% are complited degree, and 12% are complited other. Table 3: Marital status of the respondents Sl No 1 2 Particulars Married Unmarried Total Respondents 22 3 25 Percentage 88 12 100 Interpretation : Out of the 25 respondents 88% respondents are married, and 12% are unmarried. Table 4: Literacy rate of the family members Sl No 1 2 3 Particulars Below primary Below higher primary Below matriculation Respondents 4 3 5 Percentage 16 12 20 Institute of Management Studies and Research, Kuvempu University, Shankarghatta 65 An organization study of Shree. DKSSK.N. Chikodi 4 Above matriculation Total 13 25 52 100 Interpretation : Out of 25 respondents 16% are having literacy rate of the family member below primary, 12% are below higher primary, 20% are having below matriculation, and 52% are above matriculation. Table 5: Number of family members Sl No 1 2 3 4 5 Particulars One Two Three Four Five Total Respondents 0 1 3 8 13 25 Percentage 0 4 12 32 52 100 Interpretation : out of the 25 respondents none of the respondents don‟t have family members in below one, 4% are having two number of family members, 12% are having three, 32% are having four, and 52 % are having five family members. Table 6: Annual income of the respondents Sl No 1 2 3 4 Particulars Below 10000 10000 to 20000 20000 to 30000 30000 above Respondents 11 6 5 3 Percentage 44 24 20 12 Institute of Management Studies and Research, Kuvempu University, Shankarghatta 66 An organization study of Shree. DKSSK.N. Chikodi Total 25 100 Interpretation : Out of 25% respondents 44% of the respondents are having below 10000 annual income, 24% are 10000 to 20000, 20% are having 20000 to 30000, and 12 % are having 30000 above. Table 7: Housing facility to respondents from factory Sl No 1 2 Particulars Yes No Total Respondents 15 10 25 Percentage 60 40 100 Interpretation : Out of 25 respondents 60% are having housing facility from factory, 40% are not having. Table 8: Facilities providend to the respondent by the factory Sl No 1 2 3 4 5 6 Particulars Housing Safety Recreational Drinking water All above No any Total Respondents 7 4 0 4 7 3 25 Percentage 28 16 0 16 28 12 100 Institute of Management Studies and Research, Kuvempu University, Shankarghatta 67 An organization study of Shree. DKSSK.N. Chikodi Interpretation : Out of the 25 respondents 28% are housing facility provided to the respondent by the factory, 16% are having safety, none of the respondents in recreational facility, 16% are having drinking water facility, 28% are having all above, and 12% are not having any facility. Table 9: Respondents satisfied from safety measures Sl No 1 2 Particulars Yes No Total Respondents 10 15 25 Percentage 40 60 100 Interpretation : Out of the 25 respondents 40% are satisfied from safety measures, and 60% are not satisfied. Table 10: Classification on the basis os Respondents have a opportunity to rest Sl No 1 2 Particulars Yes No Total Respondents 20 5 25 Percentage 80 20 100 Interpretation : Out of the 25 respondents 80% are having opportunity to rest, and 20% are having not having opportunity to rest. Table 11: Respondents face problem during work on old machine Sl No 1 Particulars Yes Respondents 2 Percentage 8 68 Institute of Management Studies and Research, Kuvempu University, Shankarghatta An organization study of Shree. DKSSK.N. Chikodi 2 No Total 23 25 92 100 Interpretation : Out of the 25 respondents 8% are facing problem during work on old machine, and 92% are not facing this problem. Table 12: Respondents have a extra payment for overtime work Sl No 1 2 Particulars Yes No Total Respondents 21 4 25 Percentage 84 16 100 Interpretation : Out of the 25 respondents 84% are having extra payment for overtime work, and 16% are the not having extra payment for overtime work. Table 13: Classification on the Respondents have a insurance Sl No 1 2 Particulars Yes No Total Respondents 23 2 25 Percentage 92 8 100 Interpretation : Out of 25 respondents 92% are have a insurance, and 8% are not have the insurance. Table 14: Classification on the basis of colleagues co-operate you in work Sl No Particulars Respondents Percentage 69 Institute of Management Studies and Research, Kuvempu University, Shankarghatta An organization study of Shree. DKSSK.N. Chikodi 1 2 Yes No Total 25 0 25 100 0 100 Interpretation : Out of the 25 respondents 100% respondents co-operate with colleagues in work. Table 15 : Addicted any habits of respondents Sl No 1 2 Particulars Yes No Total Respondents 15 10 25 Percentage 60 40 100 Interpretation : Out of the 25 respondents 60% are addicted habits, and 40% are not having. Table 16: Problem from officer during the work Sl No 1 2 Particulars Yes No Total Respondents 1 24 25 Percentage 4 96 100 Interpretation : Out of the 25 respondents 4% are having problem from officer during the work, and 96% are not having problem from officer during the work. Table 17: Institute of Management Studies and Research, Kuvempu University, Shankarghatta 70 An organization study of Shree. DKSSK.N. Chikodi Factory rules is established properly for respondents development Sl No 1 2 Particulars Yes No Total Respondents 21 4 25 Percentage 84 16 100 Interpretation : Out of the 25 respondents 84% are said the factory rules is established properly for respondents development, and 16% are said no. Table 18: Quality of LIFE issues at this or organization. Rate the effectiveness of the following benefits on the given scale Facilities‟ offered Medical Benefits Recreation facilities Leave facilities and Regulations mentally pressure Assistance in Local area development Training facility Employee participation Restroom facilities canteen facility Strongly satisfied 60% 00 00 00 00 Satisfied 40% 00 76% 4% 44% Undecided 00 56% 24% 12% 56% dissatisfied 00 40% 00 40% 00 Strongly dissatisfied 00 4% 00 44% 00 44% 00 24% 24% 56% 68% 68% 64% 00 32% 8% 12% 00 00 00 00 00 00 00 00 Institute of Management Studies and Research, Kuvempu University, Shankarghatta 71 An organization study of Shree. DKSSK.N. Chikodi Educational Institutions and sponsorships 80% 20% 00 00 00 Interpretation : out of 25 respondents 60% are strongly satisfied to have a medical facility, and 40% are satisfied. Out of 25 respondents 56% respondents are undecided about recreation facility, 40% are dissatisfied, 45 are strongly dissatisfied. In the leave facility and regulations 76% are satisfied, 24% are undecided. In that 4% respondents satisfied are having mentally pressure, 12% are undecided, 40% are dissatisfied, 44% are strongly dissatisfied. Out of 25 respondents 44% are satisfied to have assistance in local development, 56% are undecided. 44% respondents are strongly satisfied to have a training facility, 56% are satisfied. Out of 25 respondents 24% are strongly satisfied to have rest room, 68% are satisfied, 8% are undecided to have rest room. 24% respondents are strongly satisfied to have canteen facility, 64% are satisfied, 12% are undecided to have canteen facility. Out of 25 respondents 80% are strongly satisfied to have education facility, 20% are satisfied. Institute of Management Studies and Research, Kuvempu University, Shankarghatta 72 An organization study of Shree. DKSSK.N. Chikodi IV CHAPTER Findings, suggestions and conclusion 4.1. Findings           Most of the respondents and there family members are educated. Most of the respondents have medical facility. Out of the respondents 60% are having housing facility from factory. out of respondents 40% of the respondents satisfied from safety measures. 96% respondents are not facing the problem during work from office. Most of the respondents are having extra payment for overtime work. 92% respondents are have insurance facility. 60% of respondents addicted to bad habits. All respondents are co-operative with collegues in work. 80% respondents have gained education facility from factory. 4.2. Suggestions    The factory should provide the authority to labor welfare officer for solving the labor problem and providing facilities. It is good to celebrate all cultural activities in order to provide recreation to labor. Select the eligible and low age person to work at the time of night shift. 73 Institute of Management Studies and Research, Kuvempu University, Shankarghatta An organization study of Shree. DKSSK.N. Chikodi  The labor welfare officer must take special care about the night shift workers. 4.3. Conclusion From my in plant training in DKSSK, It gave me practical exposure to understand the problem facing the employees. The employees were facing lot of problems which was found through well structured questionnaires by taking the 25 respondents. The employees facing the problems such as wages, problems relating to health, industrial dispute.etc., QUESTIONNAIRE 1. Name of the respondent 2. Age of the respondent 1) 18-25 ( 3) 36-45 ( ) ) 2) 26-35 ( 4) 46-55 ( ) ) 5) 55above ( ) : 3. Education qualification of the respondent 1) Primary ( 4) Illiterate ( 4. Marital status 1) Married ( ) 2) Unmarried ( ) ) ) 2) SSLC ( 5) Degree ( ) ) 3) PUC ( 6) Other ( ) ) 5. Literacy rate of family members 1) Below Primary ( ) 2) Below higher primary ( ) Institute of Management Studies and Research, Kuvempu University, Shankarghatta 74 An organization study of Shree. DKSSK.N. Chikodi 3) Below matriculation ( ) 4) Above matriculation __________if yes please do specify 6. Number of family members 1) One ( 4) Four ( ) 2) Two ( ) 3) Three ( ) ) ) 5) Above ( 7. Annual income of the respondent 1) below 10,000 ( ) 2) 10,000 to 20,000 ( ) 4) 30,000 Above ( ) ) 3) 20,000 to 30,000 ( 8. Housing facility to respondent from factory 1) yes ( ) 2) No ( ) 9. What are the facilities provided to the respondent by the factory? 1) Housing ( ) 2) Safety ( ) 3) Recreational ( ) 6) No any ( ) ) 4) Drinking water ( ) 5) All above ( 10. Have you satisfied from safety measures? 1) Yes ( ) 2) No ( ) 11. Do you have any problem during work? 1) Yes ( ) 2) No ( ) 12. If yes which problem? 1) Low time to lunch ( 3) Uncleanness ( ) 2) Work without rest ( ) ) ) 4) Worker conflicts ( ) 5) All above ( 13. Do you have opportunity to rest? 1) Yes ( ) 2) No ( ) 14. Do you face problem during work on old machine? 1) Yes ( ) 2) No ( ) 75 Institute of Management Studies and Research, Kuvempu University, Shankarghatta An organization study of Shree. DKSSK.N. Chikodi 15. If yes which problem? 1) Communication distance ( 3) Other ( 16. ) ) 2) Crowd ( ) Do you get extra payment for overtime work? 1) Yes ( ) 2) No ( ) 17. Do you have opportunity to do over time work? 1) Yes ( 18. Do you have insurance? 1) Yes ( ) 2) No ( ) ) 2) No ( ) 19. Do other colleagues co-operate you in work? 1) Yes ( 20. ) 2) No ( ) Is there any discrimination in the factory? 1) Yes ( ) 2) No ( ) if yes discrimination is done based on (multiple tick) 1. Caste ( ) 2. Colour of skin ( ) 3. Designation/Position held in the organization ( ) 4. Gender ( ) 21. Have you addicted any habits? 1) Yes ( 22. If yes which problem? 1) Smoking ( ) 2) Drinking alcohol ( ) 3) Other ( ) ) 2) No ( ) 23. Do you have problem from officer during work? 1) Yes ( 24. If yes which problem ) 2) No ( ) Institute of Management Studies and Research, Kuvempu University, Shankarghatta 76 An organization study of Shree. DKSSK.N. Chikodi 1) work on other machine ( 3) Other ( ) ) 2) More time work ( ) 25. Do you have crowd in working place? 1) Yes ( ) 2) No ( ) 26. Are factory rules is established properly for your development? 1) Yes ( ) 2) No ( ) 27. Quality of LIFE issues at your organization. Rate the effectiveness of the fallowing benefits on the given scale Facilities‟ offered Medical Benefits Recreation facilities Leave facilities and Regulations mentally pressure Assistance in Local area development Training facility Employee participation Restroom facilities canteen facility Educational Institutions and sponsorships Strongly satisfied satisfied undecided dissatisfied Strongly dissatisfied Institute of Management Studies and Research, Kuvempu University, Shankarghatta 77 An organization study of Shree. DKSSK.N. Chikodi 29. Suggestions to factory adminstration..? …………………………………………………………………………………… ……………………………………………………………………………………… …………………………………………………………… Date: Thank you Institute of Management Studies and Research, Kuvempu University, Shankarghatta 78 An organization study of Shree. DKSSK.N. Chikodi Bibliographys Books: Financial Management Human Resource Management Modern Marketing Management Organizational Behavior Research Methodology Websites: www.dksugar.com www.sugarindia.com www.economywatch.com/busineess-and .../ sugar-industry Company annual reports - M.Y. Khan and P.K. Jain - K. Aswathappa - Philip Kotler - K. Aswathappa - C. R. Kothari Institute of Management Studies and Research, Kuvempu University, Shankarghatta 79