PREFACE

“True learning is born out of experience and observation”. Practical experience is the best type of learning that one can remember as the aspects of administration and management. The day comes to apply the theoretical knowledge in corporate world in context of modern industrial enterprise that has to go through its different terminal to achieve the corporate goals. The main objective of practical training is to develop practical knowledge and awareness about industrial environment and business practices in the student as a supplement to theoretical studies. It increases the skill, ability and attitude to perform specific job in industrial environment.”

Fortunately I got opportunity to visit and complete my Fortunately I got an opportunity to visit and complete my summer training program at CAMPCO CHOCOLATE FACTORY, at Kemminje, puttur. Here I got chance to see the functioning of all major departments and imbibe a lot learning of the subjects.

EXECUTIVE SUMMARY

The MBA course offered by the Bangalore University has its own unique syllabus which requires its MBA students to undertake an internship with any of the leading business houses for a period ranging from 4 weeks to 6 weeks during the second semester. The purpose of this internship is to enable the students to appreciate and understand the nuances of the practical world vis-à-vis the theoretical input administered during regular academic sessions. This helps in creating managers who are equipped with the experience of

linking the theoretical inputs with those of practical exposure and come out with creative solutions and ideas in enhancing the business. In partial fulfillment of MBA degree of Bangalore University I took up an organization study at CAMPCO chocolate Factory, puttur for a period of four weeks.

The objective is to learn about the working of a company. The practical aspects was studied and compared with the theoretical aspects learnt in the course. The study involves visiting the various departments of the organization to learn about their structure and their functions.

The incorporation, background, vision and mission of the company were briefed by the Administrative department. The work flow model was briefed before the visit to the production unit. The product profile was collected by visiting the departmental outlet.

The study was more emphasized on 7S Mc Kinsey’s Model and the SWOT analysis of the company. The study provides a good exposure to the corporate world and a good comparison of the practical and theoretical aspects as studied in the course.

DECLARATION

I, N.Pramod Shetty, do hereby declare that the internship report on “CAMPCO CHOCOLATE FACTORY, PUTTUR” has been accomplished by me under the eminent guidance of Professor Hema Harsha, Faculty, M.P. Birla Institute of Management, Bangalore.

I submit this report in partial fulfillment of the requirements for awarding “Master of Business Administration” degree of Bangalore University during the

academic year 2008-10, and not for the award of any degree of any other university.

Place: Bangalore

Date: (N.Pramod Shetty)

CERTIFICATE

This is to certify that the Internship Report on “CAMPCO CHOCOLATE FACTORY” has been prepared by Mr. N.Pramod Shetty bearing registration number 08XQCM6048, under my guidance. This has not formed a

basis for the award of any other Degree/Diploma by Bangalore University or any other University.

Place: BangaloreDate: M/s Hema Harsha (Internal guide)

PRINCIPAL’S CERTIFICATE

This is to certify that the Internship Report on “CAMPCO CHOCOLATE FACTORY” has been prepared by N.Pramod Shetty bearing registration number 08XQCM6048 under the guidance of Professor Hema Harsha, Faculty, M.P Birla Institute of Management, Bangalore.

Place: Bangalore Date: Dr. Nagesh S Malavalli

(Principal)

INTRODUCTION

The report is based on the organization study at the CAMPCO CHOCOLATE

FACTORY, puttur for a period of four weeks as per the B.U norms. An attempt was made to learn about the manner in which a company works.

The study included the visits and collection of information from the various departments of the company with the following objectives:

• Inception and background of the company.

• Ownership pattern and the nature of business carried on.

• Vision, mission and the quality policy of the organization.

• The product profile and the

competitors for the same.

• Workflow model of the company.

• The structure of the company and the various departments along with the main functions.

• The marketing strategies used.

• The chocolate industry and its contribution to the economy.

• SWOT analysis of the company.

A visit to the retail outlet was made to learn about the various product lines. An interaction was made with the visitors to

know their views towards the company’s products and their expectations from the company.

ACKNOWLEDGEMENT

The immense gratification this project work has given me and does not lead to a sense of fulfillment unless I express my boundless gratitude to all those who made

this work successful. I do recognize that mere thanks giving would not redeem me of my indebtedness for all the timely help, support and guidance I received. I script on this page my sincerest thanks to each one of them.

I profusely thank Mr.Abu Baker, AGM of CAMPCO for giving me an opportunity to do my internship in the esteemed organization and for giving the information about the company and guiding me throughout the program.

I am extremely thankful to M/s Hema Harsha Lakshmi Narayana, Professor, M.P Birla Institute of Management, Bangalore, who has guided me throughout this project by giving valuable suggestions and advice.

I equally thank all the Employees and Executives of CAMPCO who have extended their suggestions and interacted

with me and helped me learn a lot during the project.

I offer my humble salutations to the lotus feet of the Almighty for his bountiful blessing without which I would not have completed this endeavor successfully.

N.Pramod Shetty

INDUSTRY PROFILE

Chocolate was discovered in the 18th century and every child’s dream came true all over the world. The various brands of chocolate often spoken about in India are Amul, Cadbury and Campco.

In olden days, the ancient human almost led a nomadic life wandering from place to place in search of food. Food is the basic source of energy for living organisms including human beings. Hence all living being need food. But in modern period, man had started discovering new methods of producing food through Agriculture. The various activities involved in getting food crops through agriculture are known as agricultural practices like management of soil, sowing, transplantation and application of manure and fertilizers irrigation, weed-control, crop improvement techniques, crop harvesting and protection.

India is a land of villages. Nearly 65-70% of our country is agriculturists. About 75% of the land used for agriculture is cultivated for basic food grain hence it has become a basic industry in our country.

Agriculture is one of the oldest occupations of human beings. Agriculture means ploughing of the land, sowing seeds, protecting plants and obtaining crops for the use of people and domestic animals. Commercial crops not only help to earn foreign exchange but also provide raw materials for industries. Cocoa is also one of the important commercial crops in India. Cocoa is grown on the slopes of Niligiri Hills.

The discovery of cocoa was only a first step in the direction of chocolate. The Mayas were the first to cultivate the cocoa bean for the fruits is yielded. They used the beans as an ingredient in their favorite

chocolate drink xocoatl. The Mexican Indian world chocolate comes from a combination of the terms chocolate consumed in beverage force.

Before the Spanish explorer discovered the chocolate and other ‘exotic’ foods were totally unknown in Europe. In the 1600 European began to open fashionable chocolate houses to serve xocoatl as Hot Chocolate scattered with sugar. In the 1700’s the English began with adding milk to improve the flavor.

The first factory for processing and manufacturing chocolates in India was started during the world war-II at Bilimoria but due to tough competition from foreign products the company is ceased and stopped its process and it made second attempt in 1936. But it faced failure as the size of operation was economical. Finally it made

third attempt to find its success to restart its production.

Messrs Sathe Biscuit and chocolate co. ltd., Poona commenced production of cocoa powder on a small scale and chocolate manufacture was taken up in 1941. Then the production gradually increased. Later, Madhu Canning Factory Agra, East India Distilleries and Sugar Factories Limited Madras started the production of chocolates.

With the machineries manufactured by five major companies of the cocoa processing aand chocolate manufacturing namely-

M/S Carle and Montanari Spa, Italy.M/S 1-Aasted International APS, Denmark.M/S Otto Hansel Gmbh, West Germany.M/S Sollich Gmbh and Co. kg, West

Germany.M/S Sig Swiss Industrial Co, Switzerland.

Cadbury Ltd., which was so far importing

cocoa and chocolates into the country, established plant in Bombay for processing and packing of cocoa imported in bulk during the initial stage. The new firms that have engaged into this field in India are Amul, which has completed 50 years of service and the CAMPCO, which came up during the 80’s. CAMPCO is one of the largest factories in South Asia.

Cocoa is used as beverage and chocolate is mainly used as confectionary and to a small extent also used as beverage.

The market share of CAMPCO is 5-8%, the Cadbury’s market share is 70% and the Nestlé’s market share is 15-20%. The penetration of chocolate in the country was estimated at 5.5% in 1998. The penetration in urban India stood at while that in rural India as a mere 2.3%. Thus the consumption of chocolate is largely restricted to urban areas where too, the penetration is relatively low.

During the last five years

growth in chocolate in India has covered between 10% and 20%, with average growth being at the range of 14-15%. Restricted to urban areas played in the segment have attempted to accelerate growth by adding new consumers to the chocolate market. Although the country with a culture of consuming and exchanging sweets, pre-packed branded sweets are yet not popular. The consumption pattern and purchase habits trend to favor local, freshly made products. The ability of chocolate companies to enter this market could provide unprecedented with may be tempering of income pyramid and introduction of low price packs.

COMPANY PROFILE

BACKGROUND AND INCEPTION OF

THE COMPANY

“CAMPCO” is the short name of the Central Areca nut and Cocoa Marketing and Processing co-operative limited. CAMPCO was registered on 11th july in the year 1973, under section 7 of Karnataka Co-operative societies act of 1959. The main activity of CAMPCO is procuring and marketing of Areca nut and also manufactures chocolates. CAMPCO was set up with active support of Karnataka and Kerala Government. The growers who were getting a reasonable price faced a sudden marketing crisis during the year 1970-71 when the price of the areca nut began to fall. The situation worsened during 1972 and the price of areca nut fel to such an extent that the growers could get only half of the price. But the cost of living was rising as the cost of input was steadily increased. This created factually a panic among the growers. There was no organized marketing arrangement for areca nut.

Later on the Karnataka Government constituted an expert committee, which recommended to the State Government to organize a Central agency either in the public or the co-operative sector. With the help of Government of Karnataka and Kerala, the “Central Areca nut Marketing and Processing Co-operative limited” popularly known as “CAMPCO” on 11th july 1973 under section 7 of the Karnataka Co-operative societies Act 1959.

The growers of areca nut appealed to the Government in turn requested CAMPCO to help the farmers by buying their products. CAMPCO thus went into business of cocoa beans in 1980. After that CAMPCO was able to export cocoa beans of worth Rs.4 crores to the European countries in their initial phase of operation. In the mean time CAMPCO has to face the problem of limited internal market and unremunerative export market. In order to overcome this and increase the local

consumption of cocoa based products and export value added cocoa semi-finished products. CAMPCO put up a chocolate factory at Puttur, 50km away from Mangalore.

CAMPCO has signed agreement between companies. They are:

AGREEMENT WITH M/S NESTLE INDIA LIMITED. CAMPCO chocolate factory entered into an agreement with M/S Food Specialties Ltd known as M/S Nestle India Ltd, on 7th February 1990, for manufacture and supply of bulk quantity of chocolates and cocoa products ranging from 2500MT to 3750MT p.a for an agreed manufacturing fee of Rs. 12,000/- per MT of raw materials. At first Nestle didn’t have any plant and because of experienced people availability of all type of chocolate production with sophisticated machineries nestle made an

agreement with CAMPCO. This agreement is also made good result on CAMPCO to gain demand in competitive market.

AGREEMENT WITH AMUL LIMITED

CAMPCO factory had entered into an agreement with Amul India Ltd, on January 2001 for the manufacture and supply of bulk quality of chocolates. The agreement was made only for 5 years. The Amul Ltd supplies the raw materials to the CAMPCO Ltd; the CAMPCO makes chocolate and supply to Amul Ltd. The chocolate products, which were produced to the Amul Ltd, are as follows:

• Milkair – 5.5gm – white centre chocolates.• Chocolate – 5.5gm – brown centre chocolates.

At present CAMPCO is having its own marketing team and the present set up as follows:-

CAMPCO is one of India’s most modern chocolate manufacturing co-operatives. Today CAMPCO has diverse products. It is now affording product quality with a variety to cater wider section of the market. CAMPCO manufactures and markets a different range of products under its own brand name.

The production and demand for chocolate have been rapidly increasing in India at the rate of 20% during the last 5 years. The average growth is at 20% internal chocolate market, which is now about 5500 tonnes.

CAMPCO chocolate unit sales performance in terms of value is increasing year by year. The sale includes sales of semi finished products also. The major purchases of semi finished products within India are as follows-• Britannia

• Smith Kline Beechem• Parley• Small Confectionery Manufactures• British Biological• Bambino

Sales performance during the last 7 years is as shown below:

YEARS SALES(MT)2002-03 2425.922003-04 2596.732004-05 3140.452005-06 2622.032006-07 3995.52007-08 4742.19

CAMPCO at Glance

Full Name of the organization : The Central Areca nut and cocoa Marketing and Processing Co-opeative

limited

Status: A Co-operative Society registered under the multi state co-operative societies act 1984.

Area of Operation: Karnataka and kerala state for membership. No limit for marketing

Main objective: Procurement/Processing/Marketing of arecanut and since 1980 cocoa/cocoa products

Date of Registration: 11-07-1973

Date of commencement of business : 12-11-1973

Registered office : Varanasi towers at Mangalore.

Brand name : CAMPCO

Type of ownership : Semi-Government

Date of entry into Chocolate : March/April 1987

Authorized share capital : Rs.35 crores.

Paid up share capital : Rs. 14.90 crores as on 31-03-2008.

Number of Branches and Depots : 168 (all over India)

Industries owned: 1. The CAMPCO Chocolate unit. Puttur2. The copper sulphate manufacture unit at sagar (shimoga district).

Location : Kemminje, Puttur.

Type of Organization : Co-operative Society.

Number of Employees : 237 + 130 workers appointed on contract.

Production Capacity : 8800 MT.

Number of Shifts : 6 am – 2 pm 2 pm – 10 pm. 10 pm – 6 pm.

NATURE OF THE BUSINESS CARRIED BY CAMPCO.

The Central Arecanut and Cocoa Marketing and Processing Co-operative Limited (CAMPCO) was registered on 11th july 1973 under section 7 of the Karnataka Co-

operative Societies Act 1959 read with section 4(2) of the multi unit Co-operative Societies Act 1942 and subsequently it has amended its byelaws and the same are registered under the Multi state Co-operative Societies Act 1984. Under certificate No.L/11016/42/87/L and is dated: 8-12-1988. The main activity of CAMPCO is procuring and marketing of Areca nut and also manufactures chocolates.

Features of the CAMPCO Chocolate FactoryFollowing are some features of CAMPCO Chocolate factory:The Chocolate factory is a Co-operatively owned organization and maintained by CAMPCO.• The factory is the largest in south-east

Asia.• The factory is one of the most modern in

the world.• The factory is equipped with the latest

technology and machineries, imported from five firms of 4 European countries.

• The factory is equipped with service installed by the best firms in India.

• The factory is designed by well experienced and expert architects and consultants.

• The factory is situated in an industrially backward rural area in the midst of Cocoa growers.

• It generated employment for more than 200 personnels.

VISION, MISSION AND QUALITY POLICY

Vision of the Company“CAMPCO is formed to help the

farmers, procuring more and more areca nut and cocoa, then utilizing these materials in a better way which will help the farmers to get market for their products.”

Mission of the CompanyCAMPCO’s mission statement is:

“Co-operation between peopleHarmony between faiths…

May the fragrance of peace prevail forever”

“From areca to chocolates, this policy has taken us a long way. And we are happy to share this secret with you. At CAMPCO we, symbolize the triumph of the co-operative spirit. And how co-operative can be a source of prosperity.”

This mission statement maintains that the company has a good relation between people and harmony between faiths and high set of values and purposes behind its existence.

QUALITY POLICIES ‘HACCP’ (Hazard Analysis Critical Control Point) is a quality policy which is used for

food safety. Food safety is the top concern among food processors for very good reasons. It is critical for corporate survival and success. If there is a significant safety failure, excellence in other areas of corporate management will be wiped out and the company will loose on=• Regulatory Compliance• Vendor Certification• Supply Chain Performance and Contract

Fulfillment• Corporate Value

PRODUCT PROFILE

The product of CAMPCO is chocolate. A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. The chocolate products are classified into Moulded, Enrobed, Éclairs and Drinking Chocolate.

MOULDED CHOCOLATE

Moulding is the casting of liquid chocolate into moulds (metal or plastic) followed by cooling and demoulding. It includes products such as CAMPCO Melto 37gms and 10gms, CAMPCO Cream 37gms and 10gms.

ENROBED CHOCOLATE

It is a process of coating a center with chocolate is other confectionery based material so as t allow the coating to flow over the shape in a controlled manner. It includes products such as CAMPCO Turbo, CAMPCO Treat, CAMPCO Megabite, CAMPCO Bar, 4ever(32gm), krust 20gm and 12 gm.

ECLAIRS

Éclair is a modified toffee containing an

outer shell of caramel with a centre filling usually chocolate, chocolate creams etc. it consists of products such as CAMPCO Eclairs, Melto Eclairs, Brown Center Eclairs and Playtime.

DRINKING CHOCOLATE

Drinking chocolate can be prepared by following ingredients sugar, cocoa powder, glucose, vitamin C, lecithin, salt. It includes product such as CAMPCO Winner (500gms and 100gms).

THE VARIOUS CHOCOLATES FROM CAMPCO CHOCOLATE FACTORY

Net wt/unit M.R.P (in Rupees)Moulded Chocolate

Melto 37 gms 10Melto Cream 37 gms 10Campco Bar 45 gms 10Enrobed ChocolatesKrust/Kraze 15 gms 5Mega Bite 17 gms 5

Turbo 25 gms 5Treat 25 gms 5Drinking ChocolateWinner 500 gms & 100 gms 65 & 18EclairsPlaytime(small) 4.5 gms 3Campco Eclairs 4.5 gms 0.50Campco Toffee 4.5 gms 0.50Eclairs 2000 5.5 gms 1Supply to Nestle LtdMilkybar Eclairs 5.5 gms 1Classic (Brown) 37 gms 10Milkybar (White) 40 gms 14Supply to Amul LtdMilklair 5.5 gms 1Choclair 5.5 gms 1Semi finished goodsCocoa Mars 25 gmsCocoa Butter 25 gmsCocoa Powder 25 gmsChocolate Mars 500 gms* 20=10kgsChoco Paste 20kgsButter Chocolates 500 gms* 20=10kgs

AREAS OF OPERATION-GLOBAL/NATIONAL/REGIONAL

The area of operation of this co-operative for procurement and processing of

areca nut and cocoa extends to the states of Karnataka and Kerala, but for the marketing activities the area has been extended to the whole country. Areca nut purchase operations were extended to Assam, Andaman and Goa but in recent year’s purchase operations in Assam had to be closed due to disturbances.

GLOBAL

CAMPCO produces wide range of cocoa based products of consistent quality, colour and flavor to satisfy the wide spectrum of customers all around the globe. The company has built a strong system base for the confectionery of chocolate industries in U.S, Australia and Malaysia. Export on the other hand generated a total of about U.S $14 million over a 5 year period. Among the leading buyers were Malaysia, Korea and USA.

NATIONAL

The company has various nationalized branch offices through out India under them are the distributors followed b the dealers who sell the goods to the ultimate consumers.

National Office throughout IndiaNorth: New DelhiEast: KolkataWest: Navy MumbaiSouth: Bangalore

REGIONAL

The company has regional offices through out Karnataka. It has both dealers and distributors and the distributors are followed by dealers and ultimately to the customers. Regional offices are as follows – Mangalore, Hyderabad and Delhi.

OWNERSHIP PATTERN

The type of ownership of CAMPCO is semi Government. So the workers get retired at the age of 58years. After the retirement the CAMPCO gives gratuity to their employees but no pension.

COMPETITORS INFORMATION

CAMPCO has competitors such as Cadbury, Nestle, Parrys, Nutrine and Amul. The CAMPCO has been unable to achieve the volume growth targets because it has losing market share. Cadbury continues to dominate the chocolate market with about 70% market share and Nestle has emerged as a significant competitor with about 24% share.

INFRASCTUCTURAL FACILITIES

The CAMPCO chocolate factory is

located at Kemminje village of Puttur Taluk. And it was inaugurated on 1st September 1986. There are 247 numbers of employees working in the factory. CAMPCO is a two storied building. The first floor includes the office of the CAMPCO and chocolate packing division. The second floor includes the deputy general manager chambers, quality control department, personal department and different employee cabins. The company also includes security office at the entrance, separate A/C units, and separate vehicle parking place and quarters for employees including sitting facility, washing facility, toilet facility, dressing rooms, medical benefits etc. CAMPCO has two wheelers, four wheelers and lorry as transportation facilities. The surroundings of chocolate factory is filled with gardens and planted trees like areca nut, coconut, cocoa, cashew etc.

ACHIEVEMENTS/AWARDS

Best Export Award 2004-05 for processing of CAMPCO Chocolate and for processing Areca nut. And it has also achieved success towards adopting fully automated machines for the production process.

FUTURE GROWTH AND PROSPECTS

CAMPCO has a better scope for expansion of its activities in relation to different units like areca nut, cocoa in order to safeguard and strengthening of CAMPCO function more effectively.

• It has a target open at least one sales depot in each state.

• It proposes to enter the retail market for areca nut and products like “supari”, “panmasala” etc by established units.

• CAMPCO is thinking of starting its own bank called CAMPCO bank, to provide banking services to the company.

• The future plan about production is to

maximize output without sacrificing quality, maximum quantity control, reducing the cost, improving the efficiency etc.

• They also now introduced a new product like a small products to Amul Ltd, winner, bar, coated bars with different flavors, chocolates.

• CAMPCO also planned to increase its sales by advertisements.

• Capture international market by latest technologies.

• Conducting marketing research for knowing consumer tastes.

• Enlargement of transportation and ware housing facilities with safety precautious.

• Improved qualify of wrappers of CAMPCO chocolate which are not up to the mark.

WORK FLOW MODEL (END TO END)

The production process of CAMPCO Chocolate factory is a continuous process

which is divided into1.Cocoa Processing2.Chocolate Processing

COCOA PROCESSINGThe CAMPCO chocolate factory

collects only the dry cocoa beans. The wet beans are fermented and dried in the sales depots. There after processing begins:

1.Cleaning2.Roasting3.Winnowing 4.Alkalization5.Nib ginning(milling)6.Liquor Processing/Hydraulic Processing

CHOCOLATE PRODUCTION PROCESSING

1.Preparation of ingredients2.Mixing3.Refining the mixture4.Conching5.Tempering

6.Molding7.Cooling

CLASSIFICATION OF CAMPCO CHOCOLATESCAMPCO produces larger amount of chocolate based on 3 classifications:

1.Molded Chocolate2.Enrobed Chocolate3.Éclairs

COMPANY PROFILE WITH REFERENCE TO THE 7-S McKINSEY’S MODEL.

According to Tom Peter and Robert Waterman, organization change is not simply a matter of structure, although structure is a significant variable in the management of change. The successful

execution of a strategy required the right alignment of seven vital inter-connected activities and processes within an organization, namely-

1.Structure2.Strategy3.System4.Style5.Staff6.Skills7.Shared Values

STRUCTURE

The structure is the skeleton of the whole organization. It describes the formal relationship among various positions and activities. It provides information about who reports to whom and how tasks are both divided and integrated. And also CAMPCO follows functional organizational structure.

ORGANIZATION AND MANAGEMENT

The management of CAMPCO vests in the boards of directors consisting of 17 directors. These directors are elected or nominated as per the provisions of Bye laws. The managing director is appointed by the Government of Kerala. The day today activities are conducted by the managing directors. The Executive committee and Business committee will devote more time to scrutinize and decide about the financial and business transaction of the factory.

There is one or two legal advisors as well as one of the directors is the nominee of IDBI to facilitate and make the management more effective. Two committees have been constituted. They are as follows;

The Executive Committee

a)President.b)Vice Presidentc)Managing directorsd)Two directors from each state.

Business Committee

a)Presidentb)Vice Presidentc)Managing directorsd)Two directors from each state (Karnataka

and Kerala)e)Two senior most officer for ARECA

marketing.

f)The Head of CAMPCO Chocolate factory, Puttur.

Membership of CAMPCO

There are five different types of shares; class A, B, C, D and E issued to different class of people.

‘A’ class is open to agricultural produce market.

‘B’ class is open to agriculture produce market committee of Areca and Cocoa growing areas, co-operative marketing and consumer federation, any other multi-state co-operative society or any corporation owned or controlled by the Government.

‘C’ class is open for individual growers of Areca nut and Cocoa in both the states.

‘D’ class is open for state Government and

Central government and NDC.

‘E’ class is merchants and agents who have business in connection with CAMPCO.

Functional Departments

There are several functional departments in CAMPCO chocolate factory, which are handling various operations.They area)Production Departmentb)Administrative Departmentc)Quality control Departmentd)Stores Departmente)Marketing Departmentf) Maintenance Departmentg)Accounts Departmenth)Security Department

Production Department

The production department is headed

by production manager. Under him/her there are supervisors to look after the production activities. The production activities are in three shifts by rotation. The packing supervisors also come under the production department. The supervisors supervise the work of packing department and personnel work under piece rate system.

The main function of this department is to achieve targeted production objectives.They are:

• To follow up daily production schedules as per the plan.

• To upgrade the technical efficiency of production.

• To maintain relationship with other department.

In production department, the Chief Manager plans the different production as per the market requirements. The future plans of this department are to maximize the

output without sacrificing quality, reducing cost and improving quality.

Administrative and Personnel Department

Administrative Department .

The administrative department looks after the day-to-day administration activities of the factory. at the top level there is an administrative manager. Normally the General Manager carries over day-to-day administrative activities in the factory.

He is also assisted by the various departments in the factory. The General Manager is accountable to the head office that is in Mangalore.

Personnel Department

Personnel management deals with the human aspects in an organization

undoubtedly; people are most complete factor in an enterprise or organization. Main objective of this department is to maintain the quality standards, work level and satisfactory level of production and also to develop the procedure to help to select the right person for right job. Personnel department of CAMPCO looks after the day to day administrative activities of the factory. At the top level there is an administrative manager normally the general manager carries out day to day activities of the factory.

In Personnel department, recruitment forms the first stage in the process, which continues with the selection and ceases with the placement of candidate. Management should recruit right kind of people at tight time for right place. The vacancy posts are advertised in 3 leading newspapers of Kannada, Malayalam and English as per the service rules of CAMPCO. The selection of employee is

done through competitive examination and interview. Written test is conducted by the outside agencies. The interview and selection of candidate is done by management.

The candidate recruited to the particular post may be placed under training for a prescribed period or such extended period. If it is found necessary the pay shall be fixed by the M.D from time to time. If the trainee discontinues the training, he/she shall be liable to reimburse the entire cost of training as assessed by the M.D.

Quality Control Department

The quality control department is headed y the quality control manager. Under him/her there are three supervisors. In this department there is 1 microbiologist. There are few technical assistants to help the microbiologist in his work. They check the quality of raw materials and also the quality

of the products after production. If the firm ahs made any dilution on its quality, then it will definitely affect its sales and profitability. That is why this department serves as one of the important department. In this firm this department has to maintain the quality of the cocoa beans used for production upon which quality of chocolates depends.Different types of quality control techniques used in the chocolate plant;

• Micro-biological quality control• Raw and packing material analysis• Process control• Finished product analysis• Bacteriology testing products for harmful

pathogens• Shelf-life studying• Pest control

Stores Department

The stores department is headed by store manager. Under him/her there are supervisors. The main function of the stores department is divided into 3 units. These three functions are; receiving the raw materials for manufacture of chocolates and also packing materials and sending it into go down. The stores managers are responsible to provide the raw materials to required department and store the finished goods in the store. The store’s activities are carried out in shifts by rotation. There are four documents maintained by the stores department. They are;Material inward registersDaily stocks reportMaterial register noteReturn note book

Marketing Department

The marketing department is mainly classified into an areca nut division and

chocolate division. Each division is headed by Assistant General Manager. Under him there are Chief Manager, senior manager and regional officers. Assistant General Manager controls all the activities relating to the marketing department. He plans and prepares new marketing policies and it can be properly implemented. The main objective of marketing department is to fulfill the customer satisfaction and increase company’s sales and to contribute quality products in the market.

The main functions of this department are:To plan marketing programTo analyze the marketing opportunityTo develop marketing strategyTo connect the consumer with the product

Sales

In CAMPCO sales are being conducted in two ways. That is through

depots and sales representatives. It has different depots though out India. The depots are being opened to cater to the needs of whole sellers and retailers. A collection charges being collected in the concerned depots. CAMPCO has introduced the services of sales representatives throughout India. The rates and quality offered for sales are being decided by the CAMPCO and on getting information from its customers, their representatives place written orders.The sales of Cocoa products are being made at CCF/Area sales office level through the distributors/ super stockiest on cash or credit basis. The Executive Director of marketing/Regional managers required to supervise and excersise control over CCF, Area sales office.

Channel of Distribution

Of the four elements of marketing mix that is product, price, promotion and distribution.

The channel of distribution plays a vital role especially in the distribution of consumer goods.

CAMPCO generally follows and uses indirect channels of distribution. CAMPCO supplies goods to super stockiest and in turn supplies to whole salers and whole sellers to retailers. CAMPCO offers 21 days credit facilities to whole seller and for delayed payment they charge 21% of interest.

Services

The product manufactured in CAMPCO (CCF) are marketed and sold through out the country and it is exported to some countries. The proper service that is the company provides service to its customer in the form of prompt delivery of goods should be given by paying attention to the customer complaints and services. The improving quality of customer education

and training and services is the main criteria of CAMPCO that include ability to provide replacement parts and repairs services.

Maintenance Department

The maintenance department is headed by maintenance manager. Under him/her there are maintenance assistants and engineers. They check the machines and are responsible for their working and maintenance.

There are two types of maintenance.1. Breakdown maintenance.2. Preventive maintenance.

Breakdown Maintenance

This refers to the supervision of machineries only after it breaks down and makes it fit for future use.

Preventive Maintenance

Preventive maintenance refers to take care of machinery before breakdown. Under this system the machines are frequently checked and repaired.

Account Department/Financial Department

The CAMPCO chocolate factory has maintained an accounts department. The chief accountant is in charge of this department. Under him are the senior office assistants and junior office assistants working in the department. A report has to be sent to the head office about the day-to-day work and expenses incurred.

The functions of account department are:• Handling day-to-day accounts of the factory• Providing salaries to the staff• Maintaining accurate financial records• Giving information to the head office

• Payment of bills and keeping account

Security Department Security department is also important for each and every organization. Security departments has 10 acres of land and Rs.125 crores worth of assets including buildings, land and machines and others. It provides 3 acres of land as quarters to the employees. This factory covered with fencing barbered wire leaving one main exit called gate. The main gate is controlled by security person called senior security officer. He should be a graduate and he should have at east 15 years of service in defense. The duties and responsibilities of security department are:

• Checking of incoming and outgoing personnel, vehicles, items etc

• Maintenance of discipline inside the factory• Prevention and detection of theft etc.• Security• Other duties are empowered by managing

director of CAMPCO.

SKILLS

The Mckinsey’s 7-S framework considers skill as one of the important attributes or capabilities of an organization. The term skill includes those characteristics which most people use to describe a company

CAMPCO chocolate factory includes skilled staff and workers in its operations and productions who are expert in their own field. Administrative officer have code knowledge and skill in their particular field, it is preferable to have master degree in their work. Machine operators of different department have wide knowledge and skill about operations and handling of machines, chocolate manufacturing process etc. if the selection of skilled worker is done properly then it will result on effective operation of the manufacturing process, administration

etc. CAMPCO also follows technical skills, innovative skills, communication skills.

In CAMPCO all new recruits (both technical and managerial) are provided “on the job-training method”. Under this training method, the individual is placed on a regular job. It has the advantage of giving first hand knowledge and experience under the working condition.

STYLE

Organizations differ from each other in their styles of working. The styles of an organization is evident through the pattern of action taken by the top management over a period of time. But, the Mckinsey’s framework considers styles as something more than the style of top management.

CAMPCO follows participative style of management. Participative style of CAMPCO helps in the processing and marketing of chocolates also. Each and

every departments take decisions together which help the company to take the steps in their daily transaction or operations.

STRATEGYStrategy is the set of decision and

action plans aimed at gaining a sustainable competitive advantage. Today most of the enterprises are engaged in strategic planning. The degree of the sophistication and the formative vary considerably from organization to organization.

In the case of CAMPCO chocolate factory, the strategy is to produce and sell standard and good quality chocolates with well guided procedure and good quality of raw materials from different supplying company with a quality check to delivery the products to the customer.

Strategy includes objectives, goals, purpose and policies, action plans and tactics. The objectives are:

• To procure areca nut and cocoa of the

members and if necessary from other growers.

• To undertake processing of areca nut and cocoa and to establish industries for the manufacturing of finished and semi finished products from areca nut and cocoa.

• To open branches and depots, godowns and factories.

• To arrange for procurement, manufacture and distribution of pesticides, fertilizers etc.

• To undertake pooling, packing and standardization of Areca nut and cocoa.

Pricing Policy

CAMPCO adopted the policy of full cost pricing. But sometimes they marketed the products at price lower than that of cost price and its prices are normally lower than competitors. CAMPCO has adopted on pricing policy where by the company specifies the prices to be charged to each dealer in the price list published by the

company. There is no geographical change in prices.

Discount Policy

It has varying discount share, which includes trade discounts, cash discounts, special discounts etc. In some cases discount rate varies from dealer to dealer depending on sales turnover and in some cases the discount varies depending upon size of purchase.

Collection Procedure

The dealer provides security such as bank guarantee. The payment must be made within 15-40 days depending upon sales turnovers.

Systems

Systems in the 7-s framework refer to all the

rules, regulations, methods and procedures (both formal and informal) that complement the organizational structure.

CAMPCO is fully mechanized plant. The function of production control in products of the productions parts, products of required quality and quantity at the required time and also provides feedback to the production department and allocates or uses the resources available to achieve the objectives. The production planning is valued on the factors of designing of products that determines the equipment, capacity etc.

In Campco chocolate factory various systems have been installed in each functional areas so as to enhance the level of interaction and coordination thereby, in order to improve the overall organizational effectiveness. Some of these systems include:-

Computer System

In Campco, each and every department is linked with intercom facility, which helps to share each other opinion about company’s daily transactions. Office and each department is equipped with computer system.

Quality Control System

In Campco, production is carried quickly according to quality standards. The quality of product manufactured is of international standards. The function is to check the quality of raw materials and also the quality of products after production.

Performance Appraisal System

In Campco the performance appraisal work is done in a special way. At the end of the year a report known as ‘Confidential report’ is prepared by each and every

departmental head. This report contains each and every information relating to a particular worker working in a particular department. This report is then submitted to the higher authority for evaluation.

STAFF

Staffing is referred as human resource of an organization where they contribute to the fullest extent to achieve the organizational goal within a stipulated period. Staffing represents the development of employees in terms of selections, placement, training, promotion and performance etc. it include processes to develop in them the abilities and skills that they need to be effective and efficient.

In CAMPCO strength of the staff is 237 permanent and 130 contract based employees who are headed by Deputy General Manager and under him there are 6 assistant managers for each department.

Each and every staff is well educated and trained in their particular area of work assigned to them.Staff is classified in to 4 levels. they are strategic level, Management level, Operating level and Technical level. The duties and responsibilities of staff in CAMPCO chocolate factory are shown in the table.

Labour Welfare Measures

CAMPCO provides good facilities to its employees such as bonus, dearness allowance, provident fund, gratuity, yearly increment, edical allowance and welfare measures etc

BonusIn CAMPCO 8.33% per annum

bonus is paid to the employee every year. The maximum limit was Rs. 2500. If the basic salary plus dearness allowance is more than Rs. 3500, they do not come under

bonus act.

Dearness Allowance

CAMPCO gives 43% dearness allowance twice in a year, 1st January every year and again 1st July every year. It comes under Karnataka Government, schedules.

Provident Fund

In CAMPCO chocolate factory provident fund is contributed as follows: 12% of (Basic salary + dearness allowance) is employee’s contribution and equivalent amount is contributed by management also.

Duties and Responsibilities of staff.

VARIOUS LEVELS

STAFF

DUTIES & RESPONSIBILITIES

Strategic level 2 To pass the orders and oversee and review the functioning of

all the departments.Management level 20 To control the activities of the

Organization.Operating level 155 To carry out day to day operating

activities of the companyTechnical level 60 To engage in production and other

technical maintenance activities

TOTAL 237

Yearly Increment

CAMPCO provides yearly increment to their employee depending on the pay scale. Minimum amount of increment is Rs. 10 and the maximum is Rs. 150.

Promotions

There is no hard and fast rule in promotions. Employee promotions are given once in 8 years. The promotion was made according to the seniority cum merit basis.

Medical allowances

CAMPCO also gives Rs. 2000 per annum as medical allowance. These medical allowances are given in 2 installments once in march and other in September.

Retirement

Type of ownership of CAMPCO is semi-Government. So the workers get retired at the age of 58 years. After the retirement the CAMPCO gives gratuity to their employees but no pension. In order to have eligibility for gratuity benefit the employees of CAMPCO has to complete 5 years of service. In each year he/she should have perfect attendance. The person who retires or resigns is eligible to get gratuity at the rate of 15 days salary multiplied by number of years of service.

Insurance Coverage

All the vehicles belonging to

CAMPCO in all the branches, all the buildings and go downs have been brought under suitable insurance coverage, as could be seen from the records of CAMPCO. And the fixed assets registered are maintained up to date.

Welfare Measures in CAMPCO

The following are some of the welfare measures providing to the workers of CAMPCO. These measures are classified as statutory measures and non-statutory measures.

Statutory Measures

• Canteen facilities.• Cold water facilities.• Rent free accommodations.• Medical benefits.

Non-Statutory Measures

• Uniforms.• Safety shoes, rain coats are provided.• The employees state insurance facilities.

Leave to the Employees

In CAMPCO temporary worker gets 3 days casual leave per year and permanent employees get 15 days per years. The company provides 20 days half leave to their employee and 20days privilege to its workers. The CAMPCO chocolate factory provides 10 days of holiday including the Government holiday and also it provides every Sunday as the weekly holiday to its permanent employees.

Duration of Work

In the CAMPCO chocolate factory, there are four shifts including the general shifts. The normal hours of work are 8 hours. The

timings of 4 shifts are as follows.

Shift Timings

1. Shift - 6 am to 2 pm.2. Shift - 2 pm to 10 pm3. Shift - 10 pm to 6 am

General shift – 9 am to 5.30 pm

Shared Values

Shared values refer to set of beliefs, views, opinions value and aspiration of the employees that goes beyond the formal statement of corporate objectives.

In CAMPCO all employees share the same guiding values and responsibilities for particular task, provided to them. Chief Executive gives responsibility for each department about the task. It also maintains quality consciousness.

SWOT ANALYSIS

SWOT ANALYSIS

The diagnosis of the firm’s strength and weakness can be fruitful only if the environmental factors and market conditions are considered keeping in mind the internal capabilities of the company. This approach essentially involves matching the internal capabilities with the environmental opportunities and threats.

STRENGTH

1. Large Product Mix.One of the strength of the CAMPCO

limited is large product mix. The CAMPCO produces the different type of chocolates that is Melto, Cream, Turbo, Treat, Megabite, Campco bar, 4 ever, Krust, Éclair 2000 etc.

2. Largest chocolate Factory in South East Asia.

CAMPCO is the largest factory in south Asia. This statement can be used to attract more clients.

3. Highly Committed Employees.

WEAKNESS

1. Lack of Promotional Activities.The CAMPCO chocolate factory is

not promoting its products in an effective way through media advertising. Poor marketing effort to push the product in the market.

2. Suffering from huge loss.The CAMPCO chocolate factory has

made huge loss for the past several years.

3. Inefficient Utilization of the Capacity.The actual capacity of the CAMPCO

chocolate factory is 8800 metric tonnes. But the factory has not been able to make use of the full capacity.

4. Inefficient Product Quality.The chocolate products are to be

placed in a required minimum temperature. If it is not preserved in a required temperature the quality of the product will be effected.

OPPORTUNITIES

1. There is a large market for chocolate which is untapped in India.

2. Expanding the existing product mix can lead to increase in market share

3. Greater product awareness can be brought about within all age group showing chocolates as the best gift to friends and relatives.

4. Popularity can be gained through the social service in the backward areas of south India.

THREATS

1. There is a severe competition from multinational companies such as Cadbury and Nestle.

2. Frequent changes in Government rules and regulations and tax policies.

3. Competition from local players such as

Amul.

EFFECTIVENESS OF TRAINING

INTRODUCTION

Every organization needs to have well trained and experienced people to perform the activities that have to be done. If the current or potential job occupant can meet this requirement, training is not important, but when this is not the case, it is necessary to raise the skill levels and increase the versatility and adaptability of employees. Inadequate job performance or a decline in productivity or changes resulting out of job redesign or a technological break through require some type of training and development efforts. As the jobs become more complex, the importance of employee development also increases. In a rapidly

changing society, employee training and development are not only an activity that is desirable but also an activity that an organization must commit resources to if it is to maintain a viable and knowledgeable work force.

“Training”, “education” and “development” are three terms frequently used. On the face of it, there might not appear any differences between them, but when a deep thought is given, there appear some differences between them. In all “training” there is some “education” and in all “education” there is some “training”. Moreover, the two processes cannot be separated from development. Precise definitions are not possible and can be misleading, but different persons have used these activities in different ways.

DEFINITION

After the selection of the employee, the next step is his training. Even old employees require some training at various points in their career. The general objectives of training and development are to assist the employee to expand and use more effectively his skill, talents and knowledge and to assist him in finding his true potential and in preparing him for greater and higher responsibilities.

“Organized procedure by which people learns knowledge and skill for definite purpose”- Dale S Beach – 1985.

“The act of increasing the skills of an employee for doing a particular job” – Edwin B. Fillip, 1984.

In the words of Planty and Efferson, training is “The continuous, systematic development among all levels of employee of that knowledge and those skills and attitudes

which contribute to their welfare and that of the company.”

Training is defined by Lawrence L Steinmetz as a short term process utilizing a systematic and organized procedure by which non managerial personnel learn technical knowledge and skills for a definite purpose.

From an analytical study of the above definitions we may conclude that:

Training is a purposeful process. It is concerned with imparting and developing specific skills for a particular purpose. Thus, training is any process by which the aptitudes, skills and abilities of employee to perform specific jobs are increased.

Features of Training

It is clear from the above definitions that

training is a part of the process of staffing and has the following features.

• The basic purpose of training is to guide and direct the learning of employees so that theymay perform their jobs more efficiently.

• Training helps the employe to increase his/her knowledge of facts, policies, procedures and rules and regulations pertaining to his/her job.

• Training is to assist the employee in finding his true potential and in preparing him for greater and higher responsibilities.

• Training attempts to increase the skills of an employee for doing a specific job more efficiently. It involves the development of one or a few specific technical skills.

• Training attempts to mould the attitude of an employee towards other co-workers, supervisors and organization and create in him a sense of responsibility and interest in his job.

• Train is given to operative (that is non-managerial personnel) for performing specific jobs. Hence, training is job-oriented.

• Training is a short-term process. Training courses are designed for short term.

• Training must be a continuous process.• To be effective and accomplish the desired

results efficiently, training must be planned systematically.

• Training must be aimed at all employees of the firm. It is necessary for the newly appointed employees to learn the job. It is equally necessary for the existing employees whenever new method, technique, or machines etc are introduced.

Objectives of Training

• To prepare employee for meeting current job requirement including anticipated changes.

• To prepare employees to shoulder higher

levels of responsibilities.• To ensure smooth and efficient working

with the organization.• To ensure smooth and efficient working

with the organization.• To improve productivity with quality.• To promote sense of ownership positive

attitude and commitment amongst the employees.

Types of Training

There are many ways to train people. But mainly training methods are of two types:

1.On the job training.2.Off the job training.

On the job training methods.

This is the most common method of training. On the job training relies on current employees to train new recruits, results

depending on the trainer’s skill in training. The trainee is placed on the job and the manager or the mentor shows how to do the job. To be successful the training should be done according to structured program that uses task list, job breakdown and performance standards as a lesson plan. It is highly practical and reality based. It also helps the employee establish important relationship with his/her supervisors/mentors.

a) On specific job1) Experience: This is one of the oldest

methods of on-the-job training. This method which involves learning by experience has proved to be very efficient. To make this approach effective, it should be supplemented with other methods of training.

2) Coaching: This involves coaching by a superior by personal instruction and guidance to a manager trainee. This method

increases motivation in the trainee. But this method is effective only if the superior is properly trained and oriented. Further the superior may not have enough time to coach the trainee and he may also neglect his job.

3) Understudy Program: In this method, an individual works as an “assistant to” to the senior manager so that, eventually the deputy can assume full responsibilities and duties of the job held b the senior manager. In this method, the trainee learns be experience and observation. The main advantage of this method is that training is conducted in practical and realistic situations.

b) Apprenticeship Training:This method of training is meant to give

the trainee sufficient knowledge and skill in those trades and crafts in which a long period of training is required for gaining complete proficiency. Generally the trainees work as apprentices under the direct

supervision of experts for a long periods, say 2-7 years. This program consists of providing actual work experience in the actual job as well as imparting theoretical knowledge through classroom lectures.

c) Job Rotation:This method involves transferring a trainee from one job to another on a systematic basis. If a trainee is rotated systematically from one job to another, the general background of the trainee is broadened. This method provides training in actual situation and exposes them to other worker’s problems and view points. One main disadvantage of this method is that production may suffer.

d) Special Projects:In this method, the trainee may be asked to perform a special assignment so that he would be in a position to acquire knowledge and also to learn the work procedure.

Sometimes, the management may create a task force consisting of trainees representing different functions in the organization which helps the trainees in acquiring knowledge about the special assignment. e) Committees and Junior BoardsCommittees and junior boards which are also called “multiple management” are important methods of training. The trainee by becoming a member of the committee gets an opportunity to interact with the experienced managers and to know the problems of the organization and the view points of different managers to solve the problems. All the decisions and suggestions made by the junior boards are placed before the meetings of the board of directors of the company before taking final decisions.

f) Vestibule Training:The training in vestibule school is

preliminary to actual shop experience. Vestibule training is an attempt to duplicate as nearly as possible the actual working conditions of the work place. The trainees can concentrate on training only, because they are not under any pressure of the work situation. Further, regular

Off the job training methods

Off the job training is most commonly called classroom training. It is a traditional way of education. Off the job training takes place either inside the organization or at some external selected sites, may be institutes, universities or professional associations which have no connection with the company. Off the job training includes the lecturers, the conferences, group discussions, seminars etc.

a) Special courses and lectures:Some organizations like Tatas and

Hindustan Lever, State Bank of India, LIC etc have their own development departments which provide special courses and lectures for their employees. These organizations also arrange some courses or lectures by the staff of some universities and institutes. Sometimes, the business concerns may send their employees to attend course of 1-2 week duration conducted by the institutes of management.

b) Conferences:In this method, managers and potential managers attend the conference programmes in which they pool their ideas and experiences with certain problems which are a common subject of discussion. For example, the conference may discuss specific problems such as planning, delegation etc.

c) Case Studies:The case study method which was

popularized by the Harvard Business School, USA, is one of the common forms of training to the emoplyees. In this method, instruction describes the actual situation or problems of a specific concern and the participants are encouraged to take part in the objective discussion of the problem. This method increases the trainee’s power of observation and also his analytical ability.

d) Simulation:In simulation, the real situation of work environment in an organization is presented in the training session. In other words, in simulation, instead of taking participants into the field, the field is simulated in the training session itself.Role Playing is one of the common simulation methods of training. In role playing the participants play his role or those of others under specific conditions of simulation. Role playing enables the participants to increase his skills in dealing

with other people. In role playing, the participants play different roles for different situations and by this, they are enabled to deal with several problems from various angles.

e) Sensitivity Training:This method aims to influence an individual’s behavior through group discussion. In group discussion, the trainees freely express their ideas, beliefs and attitudes. In sensitivity training, the trainees are enabled to see themselves as others see them and develop and understand other’s views and behavior. Further the participants are trained to become patient listeners and resolve conflicts, if any. In addition, the trainees by interaction in a group become sensitive to one another’s feelings and also develop increased tolerance for individual differences.

f) Incident method:

In the usual case method, the entire problem is presented to the students, whereas in the incident method, only a brief incident is presented to provoke discussions in the class. The group then puts questions to the instructor to draw out of him the salient facts and additional information needed to arrive at a reasonable solution of the case. This method draws the participants into discussion with greater emotional involvement.

Need and Importance of Training

Training imparts skills and knowledge to employees in order to make them able to cope up with the pressure of changing environment. Training is no longer a matter of choice to an organization. The choice is only in the methods of training. The needs, importance and benefits of training are as follows:

Increase Efficiency

Training enables the individual to develop skills and methods of doing a job in a better way. This is more important in the case of changing technology.

Uses Untapped Potentials

Training enables the individual to translate his untapped potential into actual performance.

Increases Morale

Training increases the morale of employees by relating their skills with their job requirements. It builds employee’s confidence in the company, develops loyalty, raises morale and increases teamwork.

Broadens Knowledge

It broadens the knowledge of the employees in all phases of the company’s operations.

Improves Human Relations

Training increases the quality of human relations in an organization. It helps to solve many problems of social and psychological nature.

Saves Supervision Cost

Trained employees require les supervision. With reduced supervision, a manager can increase the number of his subordinates. This can save cost of supervision.

Prepares for Greater Responsibility

It prepares the employees for lateral transfer, upgrading and promotion within the organization.

Organizational Asset

Trained people are necessary for the survival of the organization and to maintain effectiveness and to make short term adjustment with the existing personnel. There is no greater organizational asset than trained and motivated personnel.

• Reduces labour turnover.• Training results in higher productivity.• More pay, recognition and other benefits to

the employees.• Trained personnel get job satisfaction.• Therefore, the chances of leaving the job are

less. Thus, training reduces labour turnover.• Training increases the quality of work.• Quantity of output by improving skills and

productivity of the employees.

Short Learning Time

Effective training helps the employees to acquire the skills and knowledge to do a job within a short span of time.

Encourages Standardization

Training encourages standardization by teaching the best methods of performing the work to all employees. This will improve the levels of performance.

Cuts Costs and WagesTraining creates cost consciousness. It teaches the methods of economical use of materials and equipments, minimization of cost and wastages.

Creates Confidence

Training creates a comfortable feeling of confidence in the minds of workers. It develops adaptability among workers. It

encourages them to accept challenges and risks.

Growth of the Individual

Training develops skills, knowledge and attitudes of the employee in all respects.

Provides Scope for Promotion

Training provides qualities essential for promotion and upgrading of the employee.

Better Rewards

Training increases efficiency and productivity. It facilitates higher rewards and benefits to the workers.

Role of Training

No organization has a choice of whether to train its employees or not, the only choice is

that of methods. The primary concern of an organization is its validity and hence its efficiency. There is continuous environmental pressure for efficiency and if the organization does not respond to the pressure, it may find itself rapidly loosing whatever share of market it has. Training imparts skills and knowledge to employees in order that they contribute to pressures of changing environment. The viability of an organization depends to considerable extent on the skill of different employees; especially that of managerial cadre, to relate the organization with its environment.

There are three factors which necessitate continuous training in an organization. These factors are technological advances, organizational complexity and human relations. Training can play the following role in the organization.

Increase in Efficiency

Training plays an active role in increasing efficiency of employees in an organization. Training increases skills for doing a job in a better way. Though an employee can learn many things while he is put on a job, he can do much better if he learns how to do the job. This becomes more important especially in the context of changing technology because the old method of working may not be relevant. In such a case, training is required even to maintain minimum level of output. For example, working on automatic machine requires skills different from that required to handle manually operated machines. Similar changes are taking place in managerial jobs too.

Increase in Morale of Employees

Training increases morale of employees. Morale is a mental condition of an individual or group, which determines the willingness to cooperate. High morale is

evidenced by employee enthusiasm, voluntary conformation with regulations and willingness to co-operate with others to achieve organizational objectives. Training increases employee morale by relating their skills with their job requirements. Possession of necessary skills to perform a job well often tends to meet such human needs as security and ego satisfaction. Trained employees can see the jobs in ways that are more meaningful because they are able to relate their skills with jobs.

Better Human Relations

Training attempts to increase the quality of human relations in an organization. Growing complexity of organizations had led to various human problems like alienation, inter-personal and inter-group problems. Suitable human relations training can overcome many of these problems. Many techniques have been developed through

which people can be trained and developed to tackle many problems of social and psychological nature.

Reduced Supervision

Trained employees require less supervision. They require more autonomy and freedom. Such autonomy and freedom can be given if the employees are trained properly to handle their jobs without the help of supervision. With reduced supervision, a manager can increase his span of management. This may result into lesser number of intermediate levels in the organization, which can save much cost to the organization.

Increased Organization Viability and Flexibility

Trained people are necessary to maintain organizational viability and flexibility. Viability relates to survival of the

organization during bad days, and flexibility relates to sustain its effectiveness despite the loss of its key personnel and making short-term adjustment with the existing personnel. Such adjustment is possible if the organization has trained people who can occupy the positions vacated by key personnel. The organization, which does not prepare a second line of personnel who can ultimately take the charge of key personnel, may not be quite successful in the absence of such key personnel for whatever the reason. In fact, there is no greater organizational asset than trained and motivated personnel, because these people can turn the other asset into productive whole.

Limitations of Training

Effectiveness of training program depends upon the interest of the trainees, the qualifications of the trainers, the

environment in which employees operate etc. Irrespective of this, training has the following limitations.

• It cannot solve problems of faulty organization. A poor organization structure will create blocks to learning and tend to prevent the translation of acquired knowledge on skills into improved performance.

• It cannot be a substitute for sound initial selection and careful placement of employees.

• It cannot increase learning potential. Training may stimulate further use of inborn capacities but it cannot create potentials.

• It cannot unerringly ensured increased performance or greater efficiency. They are not automatic and are controlled by factors outside the scope of the training function.

• It cannot overcome the fact that forgetting is easier and quicker than learning. It cannot ensure continued use of newly acquired

knowledge, skills or attitudes to overcome forgetting.

• It cannot guarantee anyone learning anything. Training can only provide the means for learning to take place. If the trainee does not want to learn, the chances are that he will not learn.

Training Process

Each training program is a costly affair and a time consuming process. Therefore, training effectiveness is of paramount importance and therefore should proceed through a sequential process of step as shown below.

Step 1: Organization Objective.

Training program should support the continuous development of employee with the organization objective in order to address key competencies requirements of

the business.

Step 2: Training Needs Identification

It is important to determine what training is needed and to make certain that the training is based on reliable and identified training requirements. It is an inquiry about the tasks and skills need to accomplish a function or job and to identify who are the learners.

Step 3: Determination of the training strategy.

To determine the strategy to be used in a accomplishing the training, gathering data on which to base training objectives, the deriving force behind the design approach to training objectives etc.

Step 4: Preparing the Learners and Work Environment.

It is necessary that work environment is enabling, receptive and supportive so that the learners is able to apply the knowledge and skills learnt from training to actual work place.

Step 5: Determination of training methods and materials.

To determine training methods, tools and timing appropriate for skills to be learned and participating learners. While preparing training manuals, the principles of learning cycle must be kept in mind that is planning, doing, reviewing and reflecting.

Step 6: Conducting training program

To conduct the actual training and monitor the progress.

Step 7: Evaluation and Feed back

To gather feedback for updating or revising the training program is crucial to the effectiveness of the training program. This is typically the most neglected phase of the training program as the trainee and the trainers breathe a sign of relief as the training ends. However if this step is correctly attended then better training programs can be designed.

Age No ofRespondents

Percentage

Below-20 05 1020-30 20 4030-40 15 3040-50 05 10Above-50 05 10Total 50 100

10

40

30

10 10

0

5

10

15

20

25

30

35

40

Below 20yrs 20-30yrs 30-40yrs 40-50yrs above 50yrs

% of Respondents

Table No-2

Sex No of Respondents

Percentage

Male 42 84Female 08 16Total 50 100le No-3

Qualification No ofRespondents

Percentage

SSLC 08 16PUC 06 12

Graduation 20 40Technicians 16 32Total 50 100

The majority (40%) of the respondents are graduates.

Department to which the Respondents belong.

Table No-4

Department No ofRespondents

Percentage

Administration 15 30Production 30 60Materialdivision

05 10

Total 50 100Work Experience

Table No-5

Experience No ofRespondents

Percentage

0-05 years 15 3006-15 years 30 6016-20 years 03 0621 & above 02 04Total 50 100ority of the respondents (60%) had 06-15 years of service. This indicates that the employee

Opinion about Training

Table No-6

Opinion No ofRespondents

Percentage

a) It heightens employee morale

11 22

b) It helps in reducing dissatisfaction

09 18

c) Increases job knowledge

20 40

d) Helps in prevention of accidents

06 12

e) Helps in personal growth

04 08

Total 50 100dents and 8% of the respondents said that the training helps in personal growth.

How the Objectives of the Training Program were conveyed to the Trainee.

Table No-7

Methodology No ofRespondents

Percentage

a) Slide Show 09 18b) Displayed on the notice board

22 44

c) Instruction sheets

15 30

d) Intranet 04 08

Total 50 100

Table No-8

Trainer No ofRespondents

Percentage

Top management

00 0

HR manager 05 10Superior 35 70Department head

10 20

Total 50 100ned by the department head and 10% of the respondents were trained by the HR manager. However the table shows that nobody was trained by the Top management.

How the Respondents were selected for the Training program:

Table No-9

Selection Procedure

No ofRespondents

Percentage

On a random basis

04 08

Recommended by the HOD

07 14

Selected by HRD/Personnel department

30 60

Don’t know 09 18Total 50 100the 60% of the respondents were the people who had no previous job experience before joining Campco.

Scope of the Training program

Table No-10

Skills No ofRespondents

Percentage

Technical skills

35 70

Conceptual skills

2 04

Interpersonalskills

13 26

HR skills 00 0Total 50 100le No-11

Frequency No ofRespondents

Percentage

Once till now 40 80Once in 6 months

00 00

Once in a year 10 20Not conducted At all

00 00

Total 50 100le No-12

Opinion RegardingDuration

No of Respondents

Percentage

7 days 15 30

15days 09 181month 16 323 months andAbove

00 00

Depending onneed

10 20

Total 50 100

Language No ofRespondents

Percentage

Kannada 37 74English 06 12Hindi 07 14Total 50 100r training in Hindi and 12% had their training in English.

Expectation from the training program

Table No-14

Expectations No ofRespondents

Percentage

Putting the learner to ease

03 06

To get closer to the job position

11 22

Giving the Exact knowledge

36 72

Total 50 100respondents

Table No-15

Qualities No of Respondents

Percentage

Experiencedtrainers were called

02 04

Conducive atmosphere

18 36

Good training materials were provided

21 42

Proper schedules were maintained

09 18

Total 50 100

Table No-16

Methods No ofRespondents

Percentage

On the Job 48 96Off the Job 02 04Total 50 100

Safety measures included in the training program

Table No-17

Safety measures

No of Respondents

Percentage

First-aid 29 58Fire Extinguisher

15 30

VehiclesHandling

06 12

Total 50 100le No-18

Yes/No No of Respondents

Percentage

Yes 38 76No 12 24Total 50 100majority 76% of the respondents said that personality development program is necessary in the organization. While 24% of the respondents said that a personality development program is not required in the organization.

Stress Relief Programs

Table No-19

Stress ReliefPrograms

No ofRespondents

Percentage

Yoga 04 08Trips 04 08Entertainmentprograms

42 84

Total 50 100

le No-20

Changes felt due to training

No of Respondents

Percentage

Improved Relationships

18 36

Minimized resistance to change

03 06

Increased the efficiency and effectiveness

07 14

Improved product quality

22 44

Total 50 100imized the resistance to change in the organization.

Instruments used in the training program attended by the respondents

Table No-21

96

4

0

20

40

60

80

100

Yes No

% of Respondents

Instruments No ofRespondents

Percentage

Visual aids 02 04Games 00 00Interactivesessions

13 26

None 35 70Total 50 100ondents.

Whether benefits of training justify the training cost

Table No-22

Yes/No No ofRespondents

Percentage

Yes 48 96No 02 04Total 50 100s not justify the training cost.

Objectives that was predominantly fulfilled in the training session

Table No-23

Objectives No ofRespondents

Percentage

Increased productivity

28 56

Effective working of the employees

00 00

Reduction in wastage

12 24

Developing the skills of the employees

10 20

Total 50 100le No-24

Yes/No No ofRespondents

Percentage

Yes 26 52No 24 48Total 50 100.

Follow ups after the training

Table No-25

Follow ups No of Respondents

Percentage

PerformanceAppraisal

15 30

Work sampling 08 16SuperiorEvaluation

11 22

Personalassessment

16 32

Total 50 100

Rating No ofRespondents

Percentage

Excellent 08 16Very good 09 18Good 20 40Satisfactory 13 26Total 50 100

SUGGESTIONS

Based on the findings of the study, the investigator has put forth the following suggestions to the organization.

The head of department need to play a key role in explaining the importance and necessity of training to his subordinates.

The training faculties need to make adequate use of the training aids available in the organization.

Training programs need to be more interactive. The trainer should motivate the trainee to participate in the proceedings.

Selection of the training programs and selection of the participants need to be thoroughly evaluated on some predetermined basis.

The involvement of visual aids, games and tale plays are to be stressed on during the time of training as it gives more insights to

the workers especially the less educated ones and helps them to acquire interpersonal skills and understand the concepts better.

The skills of the employees must be developed by imparting English speaking courses and computer courses.

Periodical training is very effective and so should be encouraged in the organization.

Since most of the employees are satisfied with their job, the company can retain or enhance job satisfaction by giving rewards, ensuring recognition and providing opportunities for their career development.

Another measure for improving the effectiveness of training programs is the introduction of pre-training evaluation, which creates awareness in the organization and among the employees about the needs of training.

It can be suggested that in addition to the appraisal made by the superiors, an employee can also be appraised by his peers and subordinates.

Thus the company can consider the above suggestions to make its training programs more effective. As a result good training will lead to improved performance leading to increased productivity and thus profit.

CONCLUSION

A meticulously planned and well administered training and development program would be instrumental in bringing about positive changes in the employees and thereby improve the efficiency of the organization. Campco Ltd, Mangalore is maintaining a good relationship with the public. It also maintains a good relationship with other organizations.

Campco Ltd is one of the organizations that have realized the importance of human resource and the need to train them. It follows a training policy designed by a highly effective HR department.

Campco Ltd conducts a number of training programs every year, with innovations. Training programs have helped in increasing the company’s productivity, reduce accidents and take additional job responsibilities and good industrial relations.

However, there is still scope for improvement which the company should seek to achieve. This can be done by periodically evaluating and improving the training programs. The study has given the investigator, a practical exposure to the company. It has given the knowledge of the various functioning departments. It has also taught the investigator to carry out the research. Such a study would be useful in case any future researches need to be undertaken on this topic. The findings arrived at as a part of the study would help the company in planning or modifying their training programs in future.

The investigator hopes that the suggestions offered will be considered

positively and implemented in the organization. This would help the organization to pave the way for growth at a quicker pace. The company should strive for excellence in the years to come.

BIBLIOGRAPHY

1.CAMPCO at a glance-Magazine of the company.

2.Annual general meeting report of 20083.Other company manuals and journals4. www.google.com 5. www.wikipedia.com 6. www.hrguru.com