1

HUMAN RESOURCES MANAGEMENT

1. INTRODUCTION:

Human resources management is primarily concern with the people management. It Is a

crucial subsystem in the process of management. The success or of the organization not

only depends on the material, machines and equipment but also on the personnel who

put in their best efforts for efficient performance of the job.

Human resources management is the management of employees skills, knowledge,

talents aptitudes, creative abilities etc.

DEFINITION:

Human resources can be thought of as the total knowledge, talents aptitudes, creative

abilities of an organization work force as well as the value, attitude and beliefs of the

individuals involve.

-LEONC.MEGGINSON.

Personnel management effectively describes the process of planning and directing the

application development and utilization of human resources in employment.

-DALE YODER

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Personnel management is the process of attracting, holding, motivating, and people

involving all managers, line and staff

-DUNN & STEPHEN

DEFINITION OF MOTIVATION:

Motivation has been variously defined by scholars. Usually one or more of

these words are included inn the definition: desires, wants, aims, goals, drives, movies

and incentives. Motivation is derived from the Latin word Move on which means to

move.

Human motives are internalized goals within individuals. A motive is an inner

state that energies activates, or moves and directs or channels behavior towards goals.

NEED OF THE STUDY:

A common place that we see the need to apply motivation is in the work place. In the

work force, we can see motivation play a key role in leadership success. A person

unable to grasp motivation and apply it, will not become or stay a leader. It is critical

that anyone seeking to lead or motivate understand "Howletts Hierarchy of Work

Motivators."

Salary, benefits, working conditions, supervision, policy, safety, security, affiliation,

and relationships are all externally motivated needs. These are the first three levels of

"Howletts Hierarchy" When these needs are achieved; the person moves up to level

four and then five. However, if levels one through three are not met, the person

becomes dissatisfied with their job. When satisfaction is not found, the person becomes

less productive and eventually quits or is fired. Achievement, advancement,

recognition, growth, responsibility, and job nature are internal motivators. These are the

3
last two levels of "Howletts Hierarchy." They occur when the person motivates

themselves (after external motivation needs are met.) An employer or leader that meets

the needs on the "Howletts Hierarchy" will see motivated employees and see

productivity increase. Understanding the definition of motivation, and then applying it,

is one of the most prevalent challenges facing employers and supervisors. Companies

often spend thousands of dollars each year hiring outside firms just to give motivation

seminars.

Scope of the study

The study in confined and relevant only to Heritage Foods (India) Limited

(HFIL) applicable to any organization.

The study covers recruitment training and development in Heritage Foods

(India) Limited (HFIL) it solutions at various levels of employees.

The study assists the management in determining the decision regarding the

performance of the employee.

OBJECTIVES OF THE STUDY:

1. To find out the present motivation level of the employees in Heritage Foods

(India) Limited (HFIL).

2. To find out the blockages for the motivation in Heritage Foods (India) Limited

(HFIL).

3. To suggest measures for improvement of the motivation;

4. To study the hygienic and motivational content factors.

4
Research Methodology:

(Both Primary source of data and Secondary source of data)

Primary Source: Discussions with plant staff, Interviews, Questionnaire administered.

Secondary Source: Journals Magazines and articles from prominent newspapers.

Population and Sample: There are 140 Officers & Supervisors and 100 Managerial staff

.The questionnaire is administered to 100 Officers and Supervisory staff and 100

Managerial staff (The questionnaire has been administered to Managerial staff at

Heritage Foods (India) Limited (HFIL).The questionnaire has been sent through E

mail to all these staff and the replies were also received through e mail)

Limitations of the study:

There are certain limitations of the concept of empowerment. It may be cost

consuming in selecting personnel, training costs and labor costs may be high, it may

result in slower or inconsistent services and poor use of the technique of empowerment.

At the outset, Managers must also accept the fact that not all employees want to

be empowered. Many workers just work better in jobs that are clearly defined and

closely supervised. Once both employees and managers have received proper training,

the next step is go give employees control of the resources needed to make the

improvements in their job and work processes.

By giving employees information, resources and training and by following with

measurements and reinforcement, Human Resources can create an empowered

environment. But Empowerment should be continuous process like quality

improvement and it is like a race without a finish line.

5
 CHAPTER-II

REVIEW OF LITERATURE

6
2. INTRODUCTION

Human beings are a resource to an organization. Like another resource they

represent an investment whose development and utilization require proper managing.

There is a fundamental trust the people are organizations most important assets.

Performance results from the interaction of physical, financial and human

resource. The first two are inanimate; they are translated into productivity only when

human element is introduced. In dealing with employees, however an intangible factor

of will, violence or freedom of choice is introduced , and workers can increase or

decrease their productivity as they choose. This human quality gives rise to need for

motivation.

Motivation is one of the most important factors affecting human behavior.

Motivation not only affects other factors like perception and Learning but also affect

the total performance of an individual in organizational setting. This is the reason why

managers attach great importance to motivation in an organization.

At one time, employees were considered just another input into the production

of goods and services. What perhaps changed this way of thinking about employees

was reached, referred to as the Hawthorne studies, conducted by Elton Mayo from 1924

to 1932(Dickson, 1973). This study found employees are not motivated solely by

money and employee behavior is linked to their attitudes (Dickson, 1973)

The Hawthorne studies began the human relations approach to management,

where by the needs and motivations of employees become the primary focus of

managers (Bedeian, 1993).

7
2.1 MEANING OF MOTIVATION:

Motivation has been variously defined by scholars. Usually one or more of

these words are included inn the definition: desires, wants, aims, goals, drives, movies

and incentives. Motivation is derived from the Latin word Move on which means to

move.

Human motives are internalized goals within individuals. A motive is an inner

state that energies activates, or moves and directs or channels behavior towards goals.

2.1.1 DEFINITION:

1. Motivation is the complex forces starting and keeping a person at work in the

organization.

2. Motivation is the various drives within or environmental forces surrounding

individual that stimulate or attract them in a specific manner.

3. Motivation is the art of understanding motives satisfying them to direct and sustain

behavior to wards the accomplishment of organization goals.

4. Motivation is the process of operating organizational conditions which will impel

employees of any emotion or desire operation ones will and prompting or driving at it

to action.

Motivation consists of the three interaction and interdependent elements of needs,

drives and goals.

8
Needs: These are the deficient, and create whenever there is a physiological or

psychological imbalance.

Drive or motives: These are set to alleviate needs. These are action oriented and

provide an energizing thrust toward goal accomplishment. They are the very heart of

the motivation process.

Goal: Goals are any thing which will alleviate a need and reduce a drive.

2.2 CHARACTERISTICS OF MOTIVATION:

1. Higher efficiency:- A good motivation system releases the immense talents,

abilities of employees. It converts ability to work.

2. Low absenteeism and turnover:-Motivation leads to job satisfaction and high

morale due to which lab our unrest, labor absenteeism turnover are reduced.

3. Human relations:-A high level results in harmonious relations between employer

and employees.

4. Facilitates change:-Effective motivation help to over come resistance to change

and negative attitudes on the part of employees.

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2.3 NATURE OF MOTIVATION:

Following are some of the characteristics of motivation derive from the definitions

given by various authors.

1. Based on motives:-Motivation is base on individuals motive which are internal to

individual. These motives are in the form of feeling that the individual lacks some

thing.

2. Goal directed behavior:-Motivation Leads to goal directed behavior. A goal

directed behavior is one which satisfied the causes for which behavior takes place.

Motivation has pro found influence on human behavior.

3. Related to satisfaction:-Motivation is related to satisfaction. Satisfaction is refers to

the contentment experiences of an individual which we derives out of needs

fulfillment.

4. Complex process:-Motivation is a complex process; complexity emerges because

of the nature if needs a types of behavior that need attempted to satisfied those needs.

2.4 TYPES OF NEEDS:

There are many needs which an individual may have and there are various ways in

Which may be classified? Needs may be natural, biological phenomenon in an

individual or these may develop over the period of time through learning. Thus, need

may be grouped into 3 categories:

1. Primary need

2. Secondary need

3. General needs

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1) Primary needs: These are also known as physiological, biological, basic, or unclear

needs. These needs are common in human beings through their intensity differs.

2) Secondary needs: As contrast to primary needs, these are not natural but are learned

by the individual through experience and interaction. Emergency of these needs

depends in learning.

3) General needs: Through a separate classification for general needs is not always

given, such a category seems necessary because there are a number of needs which lie

in the grey area between the primary and secondary needs. In fact, there are certain

needs such as need for competence, curiosity, manipulation, affection, etc.

2.5 TYPES OF MOTIVATION:

There are 2 types of motivation. They are

1. Positive motivation

2. Negative motivation

Positive motivation is a process of attempting to influence others to do your will

through the possibility of gain or reward. Incentive motivation is the pull

mechanism.

Negative motivation or fear motivation is based force or fear. Fear causes person to

act in a certain way because they are afraid of the consequences if they dont Fear

motivation is the push mechanism.

The objective of motivation is to create condition in which people are willingly to

work with zeal, initiative, interest and enthusiasm, with a high personal and group.

Moral satisfaction with a sense of responsibility, loyalty and discipline and with

pride and confidence in a most cohesive manner so that the goal of an organization

are achieved effectively.

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2.6 EMPLOYEE MOTIVATION IN THE WORK PLACE:

The job of a manager in the workplace is to get things done through employees. To

do this the manager should be able to motive employees. To understand motivation

one must understand human nature itself.

Human nature can be very simple, yet very complex too. An understanding and

appreciation of this is a prerequisite of effective employee motivation in the

workplace and therefore effective management and leadership

Motivation is the key to performance improvement:

Performance is considered to be a functional improvement:

Job performance =f(ability) (motivation)

Ability in turn depends on education, experience and training and its improvement

is a slow and long process. On the other hand it can be improved quickly. As a

guidelines, there are broadly 7 strategies for motivation.

Positive reinforcement

Effective discipline and punishment

Treating people fairly

Satisfying employee needs

Setting work related goals

Restructuring job

Based rewards on job performance

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2.7 BASIC PRINCIPLES TO REMEMBER BY MANAGER FOR

MOTIVATING EMPLOYEES:

1. Motivating employees starts with motivating yourself

2. always work to align goals of the organization with goals of employees

3. Key to support the motivation of your employees is understanding what

motivates each of them.

4. Recognize that supporting employees motivation is a process, not a task

5. Support employees policies by using motivation by organization systems.

Worker motivation must also be viewed from 2 perspectives:

1. Inner drives

2. Outer (external) motivators.

A persons inner drives push and propel him/her towards an employer, a particular job,

career, line of study, or other activity. The outer(external)motivators are the mirror

image the employer or outside world offers in response to the inner drives. In order to

attract the cream of the crop of available workers, same as in his/her dealings with

customers, the employer not only tries to satisfy these basic needs individual workers

have.

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MOST WORKERS NEED TO:

1. Earn wages that will enable them to pay for basic necessities and additional

luxuries such as the purchase of a home, or travel

2. save for and enjoy old age security benefits

3. Have medical and other insurance coverage

4. acquire friends at work

5. win recognition

6. Be acknowledge and rewarded for special efforts and contributions

7. Be able to advance in life and career-wise

8. Have opportunities for self-development

9. Improve their skills, knowledge, and know-how

10. Realize their ideal(s)

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THE EMPLOYER RESPONDS TO THOSE NEEDS BY OFFERING AND

PROVIDING:

1. Employment

2. Adequate pay

3. Assistance to workers for their special needs(such as child care arrangements,

transportation, flexible work schedule).

4. Job security

5. Clear company policies

6. Clear and organized work procedures

7. A safe work environment

8. Medical coverage and other benefits

9. An atmosphere of team work and cooperation

10. Social activities

11. Reward and recognition programs

12. Open lines of communication programs

13. Systematic feedback

14. Motivation programs

15. Opportunities for promotion

16. Company/business information

17. Information on customer feedback

18. Sharing of company goals and objectives

19. Information on the market situation and industry

20. Future expectations

."

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 CHAPTER-III

INDUSTRIAL PROFILE

&

COMPANY PROFILE

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Retail Industry in 2013 at a Glance

The retail sector is enormous within the United States it includes one million stores

and accounts for four trillion dollars in revenue in 2013. Within retail are numerous

categories, covering everything from internet catalog sales, to auto dealers, to

convenience stores, to vending machines, to clothing. Fragmentation in the industry

depends strongly on the specific sub-field some, such as grocery stores are highly

concentrated, while others, like convenience stores, are highly fragmented.

Retail Industry Background

Retail is rife with different categories amongst them, motor vehicle dealers are

responsible for 20 percent of total sales, food and beverage stores for 14 percent and

drug and cosmetic stores for 10 percent. The retail sector is the largest employer in the

United States, consisting of over fifteen million jobs. Retail sales tend to be driven by

personal income, consumer confidence and interest rates, as retail sales trends tend to

resemble that of the economy at large. Large chains and stores have advantages of

superior merchandising, marketing, and supply chain management three things a

franchise owner can take advantage of. Margins generally average between 30 and 40

percent, though it depends on the industry some, like grocery stores, have far lower

margins, but rely on volume to make up the difference, while others sell far lower

volumes, but rely on higher profit margins.

Location is a particularly important factor when operating a brick and mortar retail

store the success or failure of the store may well depend on it. The business owner

must choose whether to locate the store by itself, in a shopping mall, or in a strip mall,

and important factors to choose where to place the store include the local

17
demographics, traffic in the area, whether foot or vehicular, proximity to competitive

and complimentary retailers, and lifestyle.

Seasonality is a general issue retailers must contend with most retailers experience a

large bump in revenue during the winter holiday season, with smaller bumps coming at,

depending on the sector, the back-to-school period, Easter, and Mothers Day. Another

potential issue is inventory turnover in some areas, like grocery stores, inventory lasts

a very limited amount of time. Crime related losses are a continuing problem in retail,

both from shoplifters and from employees sectors with above average losses include

gifts, books and magazines and food items. Keeping up with trends is essential in this

business in many sectors whats popular one day can be out of vogue the next, and

poor forecasting can result in unsellable merchandise.

Retail Industry Issues in the Future

Because retail depends so vitally on the streghth of the economy, and factors like job

growth and interest rates, the economy in general will have to become healthy again

before the retail sector can rebound fully. Particularly, retail sales related to homes,

home improvement services and furniture need a rebound in the real estate market in

order to turn around. As demographics change, retailers will have to keep up with the

changing needs of the populations in their locations. Ethnic minorities, such as

hispanics, are estimated to account for 30 percent of the United States population by

the middle of the century and this may affect the success of some stores and the

desirability of different products in these stores.

Identity theft and credit card fraud are concerns that retailers must deal with. Updating

security technology can be costly, and particularly slow for older companies with

18
outdated systems. Internet sales are rapidly growing worth 5 billion in 1999, they

were worth 140 billion in 2008 and will likely continue to grow in the future, so it is

important for brick and mortar retailers to have online presences.

Growth of Indian Retail

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney,

India retail industry is the most promising emerging market for investment. In 2007, the

retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the

country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to

grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20%

of the total market share. It can be mentioned here that, the share of organized sector in

2007 was 7.5% of the total retail market.

Major Retailers in India

Pantaloon:

Pantaloon is one of the biggest retailers in India with more than 450 stores across the

country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located

across the country. It's growing at an enviable pace and is expected to reach 30 million

sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket Big

Bazaar. It has the following retail segments:

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 Food & Grocery: Big Bazaar, Food Bazaar

Home Solutions: Hometown, Furniture Bazaar, Collection-i

Consumer Electronics: e-zone

Shoes: Shoe Factory

Books, Music & Gifts: Depot

Health & Beauty Care: Star, Sitara

E-tailing: Futurebazaar.com

Entertainment: Bowling Co.

Tata Group

Tata group is another major player in Indian retail industry with its subsidiary Trent,

which operates Westside and Star India Bazaar. Established in 1998, it also acquired

the largest book and music retailer in India Landmark in 2005. Trent owns over 4 lakh

sq. ft retail space across the country.

Reliance

Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance

Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's

expecting its sales to reach Rs. 90,000 crores by 2010.

AV Birla Group

AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis

Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing

in other segments of retail. It will invest Rs. 8000-9000 crores by 2010.

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Retail formats in India

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety

of categories.

Mom-and-pop stores: they are family owned business catering to small sections;

they are individually handled retail outlets and have a personal touch.

Departmental stores: are general retail merchandisers offering quality products

and services.

Convenience stores: are located in residential areas with slightly higher prices

goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers a mix

of all types of products and services including entertainment and food under a

single roof.

E-trailers: are retailers providing online buying and selling of products and

services.

Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks

and other small items can be bought via vending machine.

Category killers: small specialty stores that offer a variety of categories. They

are known as category killers as they focus on specific categories, such as

electronics and sporting goods. This is also known as Multi Brand Outlets or

MBO's.

Specialty stores: are retail chains dealing in specific categories and provide deep

assortment. Mumbai's Crossword Book Store and RPG's Music World are a

couple of examples.

21
Challenges facing Indian retail industry

The tax structure in India favors small retail business

Lack of adequate infrastructure facilities

High cost of real estate

Dissimilarity in consumer groups

Restrictions in Foreign Direct Investment

Shortage of retail study options

Shortage of trained manpower

Low retail management skill

The Future

The retail industry in India is currently growing at a great pace and is expected to go up

to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by

the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the

consumer spending has also gone up and is also expected to go up further in the future.

In the last four year, the consumer spending in India climbed up to 75%. As a result,

the India retail industry is expected to grow further in the future days. By the year 2013,

the organized sector is also expected to grow at a CAGR of 40%.

Retail consists of the sale of goods or merchandise from a fixed location, such as a

department store, boutique or kiosk, or by mail, in small or individual lots for direct

consumption by the purchaser. Retailing may include subordinated services, such as

delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys

goods or products in large quantities from manufacturers or importers, either directly or

22
through a wholesaler, and then sells smaller quantities to the end-user. Retail

establishments are often called shops or stores. Retailers are at the end of the supply

chain. Manufacturing marketers see the process of retailing as a necessary part of their

overall distribution strategy. The term "retailer" is also applied where a service provider

services the needs of a large number of individuals, such as a public utility, like electric

power.

Shops may be on residential streets, shopping streets with few or no houses or in a

shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping

street has a partial or full roof to protect customers from precipitation. Online retailing,

a type of electronic commerce used for business-to-consumer (B2C) transactions and

mail order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to

obtain necessities such as food and clothing; sometimes it is done as a recreational

activity. Recreational shopping often involves window shopping (just looking, not

buying) and browsing and does not always result in a purchase.

Etymology

Retail comes from the French word retailler, which refers to "cutting off my hands, clip

and divide" in terms of tailoring (1365). It first was recorded as a noun with the

meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail

was to "cut off, shred, off my toes paring". Like the French, the word retail in both

Dutch and German (detailhandel and Einzelhandel respectively), also refers to the sale

of small quantities of items.

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Types of retail outlets

A marketplace is a location where goods and services are exchanged. The traditional

market square is a city square where traders set up stalls and buyers browse the

merchandise. This kind of market is very old, and countless such markets are still in

operation around the whole world.

In some parts of the world, the retail business is still dominated by small family-run

stores, but this market is increasingly being taken over by large retail chains.

Retail is usually classified by type of products as follows:

Food products

Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting

goods, etc.

Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:

Department stores - very large stores offering a huge assortment of "soft" and

"hard goods; often bear a resemblance to a collection of specialty stores. A

retailer of such store carries variety of categories and has broad assortment at

average price. They offer considerable customer service.

Discount stores - tend to offer a wide array of products and services, but they

compete mainly on price offers extensive assortment of merchandise at

affordable and cut-rate prices. Normally retailers sell less fashion-oriented

brands. However the service is inadequate.;

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 General merchandise store - a hybrid between a department store and discount

store;

Supermarkets - sell mostly food products;

Warehouse stores - warehouses that offer low-cost, often high-quantity goods

piled on pallets or steel shelves; warehouse clubs charge a membership fee;

Variety stores or "dollar stores" - these offer extremely low-cost goods, with

limited selection;

Demographic - retailers that aim at one particular segment (e.g., high-end

retailers focusing on wealthy individuals).

Mom-And-Pop or Kirana Stores: is a retail outlet that is owned and operated by

individuals. The range of products are very selective and few in numbers. These

stores are seen in local community often are family-run businesses. The square

feet area of the store depends on the store holder.

Specialty Stores: A typical specialty store gives attention to a particular

category and provides high level of service to the customers. A pet store that

specializes in selling dog food would be regarded as a specialty store. However,

branded stores also come under this format. For example if a customer visits a

Reebok or Gap store then they find just Reebok and Gap products in the

respective stores.

Convenience Stores: is essentially found in residential areas. They provide

limited amount of merchandise at more than average prices with a speedy

checkout. This store is ideal for emergency and immediate purchases.

Hypermarkets: provides variety and huge volumes of exclusive merchandise at

low margins. The operating cost is comparatively less than other retail formats.

A classic example is the Metro in Bangalore.

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 Supermarkets: is a self service store consisting mainly of grocery and limited

products on non food items. They may adopt a Hi-Lo or an EDLP strategy for

pricing. The supermarkets can be anywhere between 20,000-40,000 square feet.

Example: SPAR supermarket.

Malls: has a range of retail shops at a single outlet. They endow with products,

food and entertainment under a roof. Example: Sigma mall and Garuda mall in

Bangalore, Express Avenue in Chennai.

Category Killers or Category Specialist: By supplying wide assortment in a

single category for lower prices a retailer can "kill" that category for other

retailers. For few categories, such as electronics, the products are displayed at

the centre of the store and sales person will be available to address customer

queries and give suggestions when required. Other retail format stores are

forced to reduce the prices if a category specialist retail store is present in the

vicinity. For example: Pai Electronics store in Bangalore, Tata Croma.

E-tailers: The customer can shop and order through internet and the

merchandise are dropped at the customer's doorstep. Here the retailers use drop

shipping technique. They accept the payment for the product but the customer

receives the product directly from the manufacturer or a wholesaler. This format

is ideal for customers who do not want to travel to retail stores and are

interested in home shopping. However it is important for the customer to be

wary about defective products and non secure credit card transaction. Example:

Amazon and Ebay.

Vending Machines: This is an automated piece of equipment wherein customers

can drop in the money in machine and acquire the products. For example: Soft

drinks vending at Bangalore Airport.

26
Other types of retail store include:

Automated Retail stores are self service, robotic kiosks located in airports, malls

and grocery stores. The stores accept credit cards and are usually open 24/7.

Examples include ZoomShops and Redbox.

Big-box stores encompass larger department, discount, general merchandise,

and warehouse stores.

Convenience store - a small store often with extended hours, stocking everyday

or roadside items;

General store - a store which sells most goods needed, typically in a rural area;

Retailers can opt for a format as each provides different retail mix to its customers

based on their customer demographics, lifestyle and purchase behaviour. A good

format will lend a hand to display products well and entice the target customers to

spawn sales.

27
COMPANY PROFILE

28
Heritage at a Glance:

The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of the

fastest growing Private Sector Enterprises in India, with four-business divisions viz.,

Dairy, Retail, Agri, and Bakery under its flagship Company Heritage Foods (India)

Limited (HFIL). The annual turnover of Heritage Foods crossed Rs.1274 crores in

2011-12.

Recognitions

1st prize in Energy Conservation

Main Dairy Plant, Gokul, near Kasipentla on Tirupati- Chittoor Highway had won the

Prestigious 1st prize in Energy Conservation for the Year 2012 at the National Level

for it's outstanding performance in conserving the Natural Resources through the most

efficient use of Energy.

Presently Heritages milk products have market presence in Andhra Pradesh,

Karnataka, Kerala, Tamil Nadu and Maharastra and its retail stores across Bangalore,

Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak Districts

and these are backbone to retail operations.

In the year 1994, HFIL went to Public Issue to raise resources, which

was oversubscribed 54 times and its shares are listed under B1 Category on BSE (Stock

Code: 519552) and NSE (Stock Code: HERITGFOOD)

About the founder:

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

Progressive and Visionary Leaders of the 21st Century. With an objective of bringing

29
prosperity in to the rural families through co-operative efforts, he along with his

relatives, friends and associates promoted Heritage Foods in the year 1992 taking

opportunity from the Industrial Policy, 1991 of the Government of India and he has

been successful in his endeavour.

At present, Heritage has market presence in all the states of South India.

More than three thousand villages and five lakh farmers are being benefited in these

states. On the other side, Heritage is serving more than 6 lakh customers needs,

employing more than 700 employees and generating indirectly employment

opportunity to more than 5000 people. Beginning with a humble annual turnover of just

Rs.4.38 crores in 1993-94, the sales turnover has reached close to Rs.300 crores during

the financial year 2005-2006.

Sri Naidu held various coveted and honorable positions including Chief

Minister of Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives &

Cinematography, Member of the A.P. Legislative Assembly, Director of A.P. Small

Industries Development Corporation, and Chairman of Karshaka Parishad.

Sri Naidu has won numerous awards including " Member of the World

Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time

Asia ), " Business Person of the Year " (Economic Times), and " IT Indian of the

Millennium " ( India Today).Sri Naidu was chosen as one of 50 leaders at the forefront

of change in the year 2000 by the Business Week magazine for being an unflinching

proponent of technology and for his drive to transform the State of Andhra Pradesh .

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Forward looking statements:

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

willingness to experiment and innovate our ability to transform our drive towards

excellence in quality, our people first attitude and our strategic direction.

Mission

Bringing prosperity into rural families of India through co-operative efforts and

providing customers with hygienic, affordable and convenient supply of " Fresh and

Healthy " food products.

Vision

To be a progressive billion dollar organization with a pan India foot print by 2015.

To achieve this by delighting customers with "Fresh and Healthy" food products, those

are a benchmark for quality in the industry.

We are committed to enhanced prosperity and the empowerment of the farming

community through our unique "Relationship Farming" Model.

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

and providing innovative avenues for enhanced employee prosperity.

31
Heritage Slogan:

When you are healthy, we are healthy

When you are happy, we are happy

We live for your "HEALTH & HAPPINESS"

Quality policy of HFIL:

We are committed to achieve customer satisfaction through hygienically

processed and packed Milk and Milk Products. We strive to continually improve the

quality of our products and services through upgradation of technologies and systems.

Heritage's soul has always been imbibed with an unwritten perpetual

commitment to itself, to always produce and provide quality products with continuous

efforts to improve the process and environment.

Adhering to its moral commitment and its continuous drive to achieve

excellence in quality of Milk, Milk products & Systems, Heritage has always been

laying emphasis on not only reviewing & re-defining quality standards, but also in

implementing them successfully. All activities of Processing, Quality control, Purchase,

Stores, Marketing and Training have been documented with detailed quality plans in

each of the departments.

Today Heritage feels that the ISO certificate is not only an epitome of

achieved targets, but also a scale to identify & reckon, what is yet to be achieved on a

continuous basis. Though, it is a beginning, Heritage has initiated the process of

standardizing and adopting similar quality systems at most of its other plants.

32
Commitments:

Milk Producers:

Change in life styles of rural families in terms of:

Regular high income through co-operative efforts.

Women participation in income generation .

Saved from price exploitation by un-organized sector .

Remunerative prices for milk .

Increase of milk productivity through input and extension activities

Shift from risky agriculture to dairy farming

Heritage

Financial support for purchase of cattle; insuring cattle

Establishment of Cattle Health Care Centers

Supplying high quality Cattle feed

Organizing "Rythu Sadasu" and Video programmes for educating the farmers in

dairy farming

Customers:

Timely Supply of Quality & Healthy Products

Supply high quality milk and milk products at affordable prices

Focused on Nutritional Foods

More than 4 lakh happy customers

High customer satisfaction

24 hours help lines ( <10 complaints a day)

33
Employees:

Enhancing the Technical and Managerial skills of Employees through

continuous training and development

Best appraisal systems to motivate employees

Incentive, bonus and reward systems to encourage employees

Heritage forges ahead with a motto "add value to everything you do"

Returns:

Consistent Dividend Payment since Public Issue (January 1995)

Service:

Highest impotence to investor service; no notice from any regulatory authority

since 2001 in respect of investor service

Very transparent disclosures

Suppliers:

Doehlar: technical collaboration in Milk drinks, yogurts drinks and fruit

flavoured drinks Alfa-Laval: supplier of high-end machinery and technical support

Focusing on Tetra pack association for products package.

Society:

Potential Employment Generation

More than 3500 employees are working with heritage

34
 More than 9500 procurement agents got self employment in rural areas

More than 5000 sales agents associated with the company

Employment for the youth by providing financial and animal husbandry support

for establishing MINI DAIRIES

Producing highly health conscious products for the society

Qualities of management principles:

1. Customer focus to understand and meet the changing needs and expectations of

customers.

2. People involvement to promote team work and tap the potential of people.

3. Leadership to set constancy of purpose and promote quality culture trough out

the organization.

4. Process approach to assess the efficiency and effectiveness of each process.

5. Systems approach to understand the sequence and interaction of process.

6. Factual approach to decision making to ensure its accuracy.

7. Continual improvement processes for improved business results.

8. Development of suppliers to get right product and services in right time at right

place.

Product/Market wise performance:

The total turnover is Rs 341 Crores during the financial year 2006-07

against the turnover of 292.02 Crores in 2005-06. Today Heritage distributes quality

milk & milk products in the states of A.P, Karnataka, Kerala & Tamil nadu.

35
 During the year 2006-07 liquid milk sales was Rs.28329.79 lakhs

against Rs.24525.23 lakhs in the previous year. The sales of miik products including

bulk sales of cream, ghee and butter were recorded Rs 5781.59 lakhs against Rs

4677.21 lakhs.

Milk sales:

23% growth was recorded in AP 2.38 lakhs litres per day(LLPD) in 2006-07

against 1.93 LLPD in 2005-06. 13% growth was recorded in Tamilnadu-1.53 LLPD in

2006-07 against 1.35 LLPD in 2005-06. Over all growth of 6% was recorded- 5.49

LLPD in 2006-07 against 5.16 LLPD. Flavoured milk sales recorded a growth rate of

77% over 2005-06. Butter milk sales have gone up by 45% over 2005-06.

Outlook:

Considering the growth potential in the liquid milk market, the company

has drawn plans to increase its market share in the existing markets and to enter into

new markets there by doubling revenues in dairy business in the next 3 years. To

achieve this object, company is undertaking major expansion in dairy business by

inverting over Rs20 crores during 2006-07 and over Rs10 crores during the current year

to strengthen the milk procurement.

CODE OF CONDUCT AND ETHICS FOR DIRECTORS & SENIOR

MANAGEMENT

PREFACE This Code of Conduct and Ethics (herein after referred to as the "Code") has

been adopted by the Board of Directors of Heritage Foods (India) Limited (herein after

referred to as "the Company") , to be applicable to all Directors and all members of

36
senior management i.e., personnel who are a part of the core management team and

including all functional heads of the company (herein after referred to as the 'Members')

with effect from December 23, 2005.

This Code helps the Members maintain good standards of business conduct, foster

ethical and moral conduct and promote a culture of honesty and accountability, so as to

set an example to others in the company.

The Code is not an all-inclusive comprehensive policy and cannot anticipate every

situation that may arise in the course of the company's business. The Members are

expected to bear in mind the essence and substance of the Code in all their dealings /

transactions with the Company.

CORPORTE OPPORTUNITIES

Members owe a duty to the Company to advance its legitimate interests when the

opportunity to do so arises and are expressly prohibited from improper use of

information / property or taking improper advantage of their position. PREVENTION

OF INSIDER TRADING Insider trading is prohibited both by the Law as well as by

the company policy . Insider trading generally involves the act of subscribing to or

buying or selling of the Company's securities, when in possession of any Unpublished

Price Sensitive Information about the company.

"Price sensitive information " is such information, which relates directly or indirectly to

the company and which if published is likely to materially affect the price of securities

of the Company. It is important to note that both positive and negative information

could be price sensitive.

37
Members shall not derive benefit or assist others to derive benefit or assist them to

derive benefit on their behalf by giving investment advice from the available access to

and possession of information about the Company, which is not in public domain and

thus constituting insider information. Members shall comply with the prevention of

insider trading guidelines as issued by Securities Exchange Board of India (SEBI).

SECURITIES MARKET POLICY

The Company is committed to comply with securities laws in all the markets in which

the Company's securities are listed. The company prohibits fraudulent and unfair trade

practices with regard to the securities of the Company by all Members.

CONFIDENTIALITY OF INFORMATION POLICY

The Company's confidential information is a valuable asset. Members shall understand

that protection of all confidential information is essential. Members should undertake

and be committed to protecting business and personal information of confidential

nature obtained from clients, associates and employees.

Any information concerning the Company's business, its customers, suppliers etc which

is not in the public domain and to which the Members have access or possesses such

information, shall be considered confidential and held in confidence, unless authorized

to disclose or such disclosure is required as a matter of law. Members shall not provide

any information either formally or informally, to the press or any other publicity media,

unless specially authorized to do so.

38
COMPLIANCE WITH LAWS, RULES AND REGULATIONS

Members should comply with all applicable laws, rules, and regulations, both in letter

and sprit. In order to assist the Company in promoting the lawful and ethical behaviour,

Members have to report any possible violation of law, rules, regulations or the code of

conduct to the Company Secretary.

PROTECTION AND PROPER USE OF COMPANYS ASSETS

All Members have the responsibility to protect the assets of the company, ensure

optimal utilization of assets and to report and record all transactions. Members shall

protect the Company's assets from loss, damages, misuse or theft and assets may only

be used for business purposes and other purposes specifically approved by management

and must never be used for any personal or illegal purposes.

COMPETITION POLICY

The Company shall compete only in an ethical and legitimate manner. It prohibits all

actions that are anti- competitive or otherwise contrary to laws that govern competitive

practices in the market place. Members shall uphold the same.

SELECTING SUPPLIERS

The Company's suppliers make significant contribution to its success. The Company's

policy is to purchase / avail supplies based on need, quality, service, price and other

commercial terms and conditions. Suppliers should be selected based on merit, price,

quality and performances. The Company's policy is to select significant suppliers

through a competitive bid process wherever possible. Under no circumstance should the

Company or its employee, agent or contractor attempt to coerce suppliers in any way.

39
ENVIRONMENT, HEALTH AND SAFETY POLICY

Members shall take environmental consciousness a step further as a company and

contribute to preserving nature as well as safety measures in own respective work areas.

All Members are responsible for conducting safe and environmentally sound

operations; this is in the interest of our own well-being and the quality of life of others.

Members shall abide by this policy.

ELIMINATION OF CHILD LABOUR

It is the Company's policy not to support child labour. The Company is committed to

implement the provisions of the Child Labour (Prohibition and Regulation) Act, 1986.

To, promote this the Company encourages its suppliers also to work towards a no child

labour policy in their industries. Members shall strictly observe that no child labour is

employed in the company.

ABOLITION OF FORCED LABOUR

The Company strictly prohibits forced or compulsory labour. The Company is

committed to ensuring that employees enter into employment and stay on in the

Company of their own free will. Members shall uphold this policy.

GIFTS & DONATIONS

No Member shall receive or offer, directly or indirectly, any gifts, donations,

remuneration, hospitality, illegal payments and comparable benefits which are intended

or perceived to be intended to obtain business (or uncompetitive) favours or decision

for the conduct of the business. Normal gifts of commemorative nature for special

events may be accepted and reported to the Board.

40
OTHER DIRECTORSHIPS

The Company feels that serving on the Board of directors of other companies may raise

substantial concerns about potential conflict of interest. Therefore all Directors shall

report / disclose such relationships to the Board on an annual basis. It is felt that service

on the Board of a direct competitor is not in the interest of the Company. Hence all the

Directors are barred in accepting such position without the concurrence of the Board.

ACCOUNTABILITY

The Board of Directors (BOD) shall oversee the Company's adherence to ethical and

legal standards. All employees and members of the BOD shall undertake to stop or

prevent actions that could harm customers or reputation of the Company and to report

such actions as soon as they occur to take corrective steps and see that such actions are

not repeated.

COMPLIANCE WITH CODE OF CONDUCT

Each Director and senior management personnel shall adhere to this code of conduct

and affirm compliance with the code on an annual basis as per the Annexure to the

Code. Violation of this Code will lead to appropriate disciplinary action.

WAIVER OF THE CODE

Any waiver of the applicability of the Code or waiver of application of any provision of

the Code to any Member shall be approved by the Board of Directors and disclosed as

required by Law or SEBI / Stock Exchange regulations.

41
BRANCHES OF HFIL:

HFIL has 3 wings. They are

1. Dairy

2. Retail

3. Agribusiness

1. Dairy:

It is the major wing among all. The dairy products manufactured by HFIL are

Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream.

2. Retail:

In the retail sector HFIL has outlets namely Fresh@. In those stores the

products sold are vegetables, milk& milk products, grocery, pulses, fruits etc.

In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4

respectively are there. Totally there are 26 retail shops are there.

Fresh@ is a unique chain of retail stores, designed to meet the needs of

the modern Indian consumer. The store rediscovers the taste of nature every day

making grocery shopping a never before experience.

The unique& distinctive feature of Fresh@ is that it offers the widest

range of fresh fruits and vegetables which are directly hand picked from the farms.

42
Freshness lies in their merchandise and the customers are always welcomed with fresh

fruits and vegetables no matter what what time they walk in.

3. Agri Business:

In this business HFIL employees will go to farmers and have a deal with

them. Those farmers will sell their goods like vegetables, pulses to HFIL only. And

HFIL will transport the goods to retail outlets.

The agricultural professors will examine which area is suitable to import

vegetables from and also examine the vegetables, pulses and fruits in the lab. And

finally they report to the Head-Agribusiness. Representatives as per the instructions

given by the agri professors will approach the farmers directly and make a deal with

them. It is the process of registering the farmers.

Heritage Finlease Heritage Finlease Limited was incorporated under the companies Act

1956 on 23rd of February 1996 and commenced business from 2nd day of April 1996.

The Registered office is located at 6-3-541/c Punjagutta, Hyderabad-500082.

The following are the directors of the company:

Sri D.Seetharamaiah

Smt. N. Bhuvaneswari

Sri M. Sivarama Varaprasad

Sri R.S.Bakkannavar

The Company was registered as Non Banking Financial Institution on 5th Day of

December 1998 by Reserve Bank of India as a Deposit Taking Company under the

category Hire Purchase Company.

43
At Present the company is allowing Dairy Loans to Small Farmers under Tie up

arrangement with Heritage Foods (India) Limited. The Company has been earning

profits from inception and functioning in conformity with the rules and directions of

Reserve Bank of India.

3.3 MOTIVATION PHILOSOPHY IN HERITAGE FOODS (INDIA) LIMITED

(HFIL)

HERITAGE FOODS (INDIA) LIMITED (HFIL) recognizes that employees

are the most important resource of any organization. In the modern world, the human

factor alone can provide a competitive edge to any organization. As one author

remarks Some of the best assets walk into and outside the organization everyday.

All HRD efforts are based on the fundamental concept that Human-beings

infinite potential for growth and development that can be converted into performance

by investment of time and effort by management at all levels. In HERITAGE FOODS

(INDIA) LIMITED (HFIL) Human Resource Management is identified as a key

area providing the cutting edge to the organization in its endeavor towards competitive

excellence. The HRD philosophy of the organization is based on continuous efforts to

enhance the knowledge develop skills and reorient attitude of employees to keep pace

with the changing environment. An attempt is made to align HD programmes with the

basic business strategy.

44
3.4 TRAINING OBJECTIVES OF HERITAGE FOODS (INDIA) LIMITED

(HFIL):

Objectives crystallize the fundamental principles enunciated in the mission and

policy statement. To operational the policy mission and statement, the following are

the objectives of HERITAGE FOODS (INDIA) LIMITED (HFIL) of different training

programmes.

1. To ensure that adequate time and efforts are invested at all levels of

management towards people management.

2. To instill in all employees a feeling of pride and belong with an intention to

increase organizational loyalty.

3. To design specific programmes with special focus on equipping the employees

to meet the emerging challenges and opportunities.

4. To help employees improve their core competency that has direct impact on

their performance and productivity.

5. To inculcate in the employee, the need for observing sound organization

principles in order to ensure healthy organization practices.

A study of the fundamental mission and philosophy of HERITAGE FOODS

(INDIA) LIMITED (HFIL) brings out to our notice the fundamental assumptions

behind all HRD attempts at

S YNDICATE BANK

A high level of confidence in capacity and integrity of all employees.

Recognition by the management of need for the integration of the objectives of

the organization and the needs of the individual employees.

45
 The need to recognize the fact that HRD attempts must be incorporated into the

basic business policies and practices.

The conscious attempt to make every individual feel that he is a part of a team,

which has a specific objective.

The need to ensure that training is a proactive process, which must be designed

taking into consideration future changes in the environment, the business, and

the competition and customer expectations.

The need to constantly update job specific skills among employees to make

them more efficient and effective in discharging their duties.

To aim at attitudinal changes required making the employee more conscious of

his role as a representative of the organization.

To provide avenues for the growth and development of the individual through

actualization of inherent potentialities.

3.4.1 TRAINING PERIOD

The duration of a training varies with skill to be acquired, the complexity of the

subject, a trainees aptitude and ability to understand, and the training media used.

Generally, a training period should not be unduly long: if it is, trainees may feel

bore uninterested. The ideal session should not go beyond 2 to 3 hours at stretch, with

a break in between 2 sessions. It convenient employees may be trained for a week or a

fortnight for an hour or two, every day after work hours.

The training period may extend from 3 weeks to 5 months even more,

depending upon job requirements.

46
 The physical locations of the programmes should be in pleasant surrounding

away from the noise and tension of the work place.

3.4.2 IMPLEMENTATION OF TRAINING

Once the training programmes have been designed, it needs to be implemented.

Implementation is beset with certain problems. Firstly, most managers are action

oriented and frequently say no to training efforts. Secondly, there is problem of

location suitable trainers within an organization. Any training programmed

implementation involves action on the following:

Deciding the location and organizing training and other facilities.

Scheduling the training programme.

Conducting the programme

Monitoring the progress of trainees.

3.5 TRAINING EVALUATION

Objectives of training evaluation is to determine the ability of the participant in

the training programme to perform jobs for which they were trained, the specific nature

of training deficiencies, whether the trainees required any additional on the job training

and the extent of training not needed for the participants to meet job requirements.

47
3.5.1 PRINCIPALS OF EVALUATIONS

Evaluation specialist must be clear about the goals and purposes of evaluation.

Evaluation must be continuous.

Evaluation must be specific.

Evaluation must be provide the means and focus for trainers to be able to

appraise themselves, their practices, and their products.

It is mainly based on objective methods.

TRAINING EFFECTIVENESS

Training effectiveness is the degree to which trainees are able to learn and apply

the knowledge and skills acquired in the training programme. It depends to the

attitudes, interests, values, and expectations of the trainees and the training

environment. A training programmer is likely to be more effective when the trainees

want to learn, are involved in their jobs, have career strategies. Contents of a training

programme, and the ability and motivation of trainers also determine training

effectiveness.

3.5.2 METHODS OF EVALUATION

Several methods can be employed to collect data on the outcomes of training. Some of

these are:

1. The opinions and judgments of trainers, superiors, and peers.

2. Asking the trainers to fill up evaluation forms.

3. Using a questionnaire to know the reactions of trainees,

4. Giving oral and written tests to trainees to ascertain how far they have learnt,

5. Arranging structured interviews with the trainees,

6. Comparing trainees performance on the job before and after training.

48
7. Studying profiles and career development charts of trainees,

8. Measuring levels of productivity, wages, costs, absenteeisms and employee

turnover after training.

9. Trainees comments and reactions during the training period, and Cost benefit

analysis of training programme.

3.6 FEEDBACK

After the evaluation, the situation should be analysed to identify the possible

causes for difference between the expected outcomes and the actual outcomes. The

precautions should be taken in designing and implementing future training programme

so as to avoid these causes. The outcomes of training programme should justify the

time, money, and efforts invested by the organization in training. Information collected

during evaluation should be provided to the trainees and the trainers as well as to others

concerned with the designing and implementation of training programmes. Follow-up

action is required to ensure implementation of evaluation report at every stage.

3.7 ORGANISATION DEVELOPMENT:

Change in organizations is a social process, and not merely an analytical one. The field

of Organisation Development (OD) has evolved a number of approaches to create

organic conditions that lead to employee participation in decisions and freedom to

initiate ideas to improve organizational processes. Thus OD is a systematic process to

planned change. It involves following four stages:

Diagnosis : Establishing the current situation in the organization.

Unfreezing : Getting people ready to accept change.

Intervention : Introducing change

49
Freezing : Making sure that change sustains for a long period of time.

A variety of OD methods have been developed for facilitating change through

using these stages in India (Ramnarayan et al, 1998).

1. Action Research :Action Research involves systematically collecting data on

relevant problems, analyzing and feeding the data back to the organization, and

helping the organization to take action to address the problems. It attempts to tap

the capabilities of the employees with the dual purpose of contributing to successful

change efforts as well as fulfil employee needs for greater involvement. The

approach seeks to empower the concerned organizational members so that they may

become self-reflective practitioners rather than mere spectators in the process of

organizational change. When people become self-reflective practitioners, not only

would meaningful solutions emerge, but more important, they will develop the

abilities to diagnose and solve future problems.

2. Process Consultation: Process consultation is an OD method that helps managers

and employees improve the processes that are used in organizations. The processes

include: communication, conflict resolution, decision making, group interaction,

and leadership. One of the distinct features of the process consultation approach is

that an external or internal consultant is used. The consultant helps the employees

to help themselves. For instance, in team building activity, a work team is brought

together to discuss conflicts, goals, processes of communication and decision-

making, creativity and leadership. The team then plans to overcome problems and

improve results. Schein (1969) who has pioneered the process consultation

50
 approach has identified four types of interventions that process consultants often

employ in working with groups.

(a) Agenda-setting interventions are aimed at making the group aware of the

internal processes by which it makes decisions and solves problems.

(b) Date feedback interventions diagnose the interpersonal processes in a group,

and give feedback to enable group members to improve processes.

(c) Counseling is required during or after a feedback session to ensure that

behaviours are suitably modified.

(d) Structural interventions involve suggestions on how work should be

allocated, committees organized, or group norms enforced.

3. Training workshops and conferences: Training has become an important OD tool

in the change process. Training programs are used not only to generate ideas,

develop collaboration among employees, enhance skill, but also for the

development of new roles, systems, procedures, and work methods. Top

managements involvement in training programmes provides the context for

defining a clear framework of the company strategy. Training workshops and

conferences represent an important first step in the organizational change process as

they have the potential to achieve the following objectives:

(a) Raise the consciousness of participants.

(b) Bring awareness of the gaps between reality and ideals.

(c) Provide a common platform to articulate shared and

difficulties.

(d) Generate ideas for change.

(e) Create greater awareness of change.

51
 Training must be followed up with appropriate management actions and

initiatives to make the desired change in reality.

IDENITIFYING TRAINING NEEDS

All training activities must be related to the specific needs of the organization

the needs and the individual employees. A training programme should be launched

only after the training needs are assessed clearly and specifically. The effectiveness of

a training programme can be judged only with the help of training needs the gap

between the existing and required levels of knowledge, skills, and performance and

should be specified. The problem areas that can be resolved through training should

also be identified.

Training needs can be identified through the following types of analysis

Organizational Analysis

It involves a study of the entire organization. In terms of its objectives, it is

resources, resource allocation and utilization, growth potential and its environment. Its

purpose it to determine where training emphasis should be placed within the

organization. Organizational analysis consists of the following elements:

Analysis of objectives

Resource Utilization Analysis

Organization analysis

Environmental Scanning

52
Task or Role Analysis

It is a systematic and detailed analyses of jobs to identify job contents, the

knowledge, skills, and aptitudes required and work behavior.

Manpower Analysis

In the analysis the persons to be trained and the changes required in the

knowledge, skills and aptitudes of an employee are determined. Training can be

relevant and viable if the three types of analysis given above are carried on

continuously more over this analysis should be integrated in a carefully designed and

executed programme.

Training Objectives:

Generally line manager ask the personnel manager to formulate the training

policies. The personnel Manager formulate the following training objectives in keeping

with companys goals and objective:

a. To prepare the employee both new and old to meet their present as well as the

changing requirements of the job and the organization.

b. To prevent obsolescence.

c. To prepare employees for higher-level tasks.

d. To assist employees function more effectively in there present positions by

exposing them to the latest concepts, information, and techniques and

developing the skills they will need in their particular fields.

e. To built up a second line of competent officers and prepare them to occupy

more responsible positions.

f. To develop the potentialities of people for the next level job.

53
g. To ensure smooth and efficient working of a department.

h. To ensure economical; output of required quality.

i. To promote individual and collective morale, a sense of responsibility,

cooperative attitudes and good relationships.

Designing a Training Programme

In order to achieve the training objectives, an appropriate training policy is

necessary. A training policy represents the commitment of top management to

employee training. It consists to rules and procedures concerning training. A training

policy is required:

a. To indicate the companys intention to develop its employees;

b. To guide the design and implementation of training programmes;

c. To identify the critical areas where training is to be given on a priority basis;

and

d. To provide appropriate opportunities to employees for their own betterment.

A sound training policy clearly defines the following issues:

i) The results expected to be achieved through training

ii) The responsibility for the training function

iii) The priorities for training

iv) The type of training required

v) The time and place of training.

vi) The payments to be made to employees during the training period.

vii) The outside agencies to be associated with the training.

viii) Relationship of training to the companys labour policy.

54
Training Methods and Techniques

The methods employed for training of operatives may be described as under

On-the-job Training

In this method, the trainee is placed on a regular job and taught the skills

necessary to perform it. The trainee learns under the guidance and supervision of the

superior or an instructor. The trainee learns by observing and handling the job.

Therefore, it is called learning by doing.

Several methods are used to provide on the job training e.g., coaching job

rotation, committee assignments, etc. A popular form of the job training is Job

Instruction Training (JIT) or step-by-step learning. It is widely used in the United

States to prepare IInd class employees. It is appropriate for acquisition or improvement

of motor skills and routine and repetitive operations. The JIT involves the following

steps:

Preparing the trainee for instruction. This involves putting the trainee at ease,

securing his interest and attention, stressing the importance of the job, etc.

Presenting the job operations or instructions in terms of what the trainee is

required to do. The trainee is put at work site and each step of the job is

explained to him clearly.

Applying and trying out the instructions to judge how far the trainee has

understood the instructions.

Following up the training to identify and correct the deficiencies, if any.

55
 JIT method provides immediate feedback, permits quick correction of errors

and provides extra practice when required. But it needs skilled trainers and preparation

in advance.

Vestibule Training

In this method, a training center called vestibule is set up and actual job

conditions are duplicated or simulated in it. Expert trainers are employed to provide

training with the help of equipment and machines, which are identical with those in

used at the workplace.

Apprenticeship Training

In this method, theoretical instruction and practical learning are provided to

trainees in training institutes. In India, the government has established Industrial

Training Institutions (ITI) for the purpose. Under the Apprenticeship Act 1962

employers in specified industries are required to train the prescribed number of persons

in designated trade. The aim is to develop all-round craftsmen. Generally, a stipend is

paid during the training period. Thus, it is an earn when you learn scheme.

56
 CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION

57
4.1 TEAMWORK AND COOPERATION

1. The people I work with cooperation to get the work done.

Table - 1

SATISFAC NEUTRAL DISSATISFACTIO

TION N

IST CLASS 92 4 4

EMPLOYEE

IIND CLASS 40 20 0

EMPLOYEE

IIIRD CLASS 77 23 0

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

58
 Char t - 1

100

50

INTERPRETATION:

Ist class employees 92% satisfied

IInd class employee 80% satisfied

IIIrd class employee 77% satisfied

The employees cooperate each other well to complete the work

59
2.My fellow employees are committed to do quality work.

Table - 2

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 92 8 0

EMPLOYEE

IIND CLASS 68 24 8

EMPLOYEE

IIIRD 87 10 3

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

60
 Chart - 2

100
90
80
PERCENTAGE

70
60
50
40
30
20
10
0

INTERPRETATION:

Ist class employees 92% satisfied

IInd class employee 68% satisfied

IIIrd class employee 87% satisfied

Employees are committed to do quality work.

61
3.Iam involved in decisions that affect my work.

Table - 3

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 63 24 8

EMPLOYEE

IIND CLASS 48 36 16

EMPLOYEE

IIIRD 63 30 7

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

62
 Chart - 3

70
60
PERCENTAGE

50
40
30
20
10
0

INTERPRETATION:

Ist class employees 68% satisfied

IInd class employee 48% satisfied

IIIrd class employee 63% satisfied

We can clearly make out that the IInd class employees are not satisfied

with the decisions they are involved that affect their work.

63
4.I believe that al the divisions in the company and work together to

achieve common goal

Table - 4

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 84 16 0

EMPLOYEE

IIND CLASS 88 8 4

EMPLOYEE

IIIRD 60 37 3

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

64
 Chart - 4

100
90
80
70
Percentage

60
50
40
30
20
10
0

INTERPRETATION:

Ist class employees 88% satisfied

IInd class employee 84% satisfied

IIIrd class employee 60% satisfied

The employees in al the divisions of the company interact with each other

well in order to achieve the goal of the organization.

65
5.I have information to do my job well.

Table - 5

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 88 12 0

EMPLOYEE

IIND CLASS 88 12 0

EMPLOYEE

IIIRD 80 17 3

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

66
 Chart - 5

100
90
80
70
Percentage

60
50
40
30
20
10
0

INTERPRETATION:

Ist class employees 88% satisfied

IInd class employee 84% satisfied

IIIrd class employee 60% satisfied

The graph clearly indicates that the employees have clear information to

do their job well.

67
6. My manager delegates that work effectively.

Table - 6

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 96 4 0

EMPLOYEE

IIND CLASS 56 40 4

EMPLOYEE

IIIRD 57 33 10

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

68
 Chart - 6

120

100
Percentage

80

60

40

20

INTERPRETATION:

Ist class employees 96% satisfied

IInd class employee 56% satisfied

IIIrd class employee 57% satisfied

The information above that the employees are satisfied with their managers

involvement in the work.

69
7. Iam satisfied with the information I received from management.

Table - 7

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 76 24 0

EMPLOYEE

IIND CLASS 72 24 4

EMPLOYEE

IIIRD 60 23 17

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

70
 Chart - 7

80
70
60
Percentage

50
40
30
20
10
0

INTERPRETATION:

Ist class employees 76% satisfied

IInd class employee 72% satisfied

IIIrd class employee 60% satisfied

The employees are satisfied with the information they received from the

management.

71
8. My manager is available to me when I have questions or need help.

Table - 8

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 72 24 4

EMPLOYEE

IIND CLASS 68 28 4

EMPLOYEE

IIIRD 60 26 14

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

72
 Chart - 8

80
70
60
PERCENTAGE

Ist class
50 employee
Iind class
40
employee
30 IIIrd class
employee
20
10
0

INTERPRETATION:

Ist class employees 72% satisfied

IInd class employee 68% satisfied

IIIrd class employee 60% satisfied

The is always some kind of help for the employees during their work.

73
9. I can see the link between my work and company objectives.

Table - 9

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 64 36 0

EMPLOYEE

IIND CLASS 68 32 0

EMPLOYEE

IIIRD 66 27 7

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

74
 Chart - 9

80
70
60
PERCENTAGE

Ist class
50 employee
Iind class
40
employee
30 IIIrd class
employee
20
10
0

INTERPRETATION:

Ist class employees 62% satisfied

IInd class employee 68% satisfied

IIIrd class employee 64% satisfied

The employees are able to find the link between their work company

objectives.

75
10.I link the kind of work I do.

Table - 10

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 84 16 0

EMPLOYEE

IIND CLASS 92 8 0

EMPLOYEE

IIIRD 93 7 0

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

76
 Chart - 10

100
90
80
PERCENTAGE

70
60
50
40
30
20
10
0

INTERPRETATION:

Ist class employees 84% satisfied

IInd class employee 92% satisfied

IIIrd class employee 93% satisfied

The information suggests that the employees get the kind of work they

like.

77
11.I am clear about what is expected of me in my position as a result of

the performance appraisal.

Table - 11

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 80 20 0

EMPLOYEE

IIND CLASS 80 20 0

EMPLOYEE

IIIRD 73 23 3

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

78
 Chart - 11

90
80
70
PERCENTAGE

60
50
40
30
20
10
0

INTERPRETATION:

Ist class employees 80% satisfied

IInd class employee 80% satisfied

IIIrd class employee 73% satisfied

The employees are clear about expectations on doing work.

79
12.My manager assists me to identify my Motivationneeds.

Table - 12

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 72 20 8

EMPLOYEE

IIND CLASS 28 56 16

EMPLOYEE

IIIRD 50 33 17

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

80
 Chart - 12

80
70
60
PERCENTAGE

50
40
30
20
10
0

INTERPRETATION:

Ist class employees 72% satisfied

IInd class employee 28% satisfied

IIIrd class employee 50% satisfied

The above graph clearly suggest that IInd class employees and IIIrd class

employee are not satisfied with the need for the identification..

81
13.The employee benefits I receive are attractive and competitive.

Table - 13

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 80 16 4

EMPLOYEE

IIND CLASS 68 30 2

EMPLOYEE

IIIRD 60 37 3

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

82
 Chart - 13

90
80
70
PERCENTAGE

60
50
40
30
20
10
0

INTERPRETATION:

Ist class employees 80% satisfied

IInd class employee 44% satisfied

IIIrd class employee 50% satisfied

Its clear indication that the IInd class employees and IIIrd class employee

are satisfied with benefits they receive form the management.

83
14.There is someone at work who encourages my development.

Table - 14

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 44 36 20

EMPLOYEE

IIND CLASS 48 44 8

EMPLOYEE

IIIRD 20 23 27

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

84
 Chart - 14

60

50
PERCENTAGE

40

30

20

10

INTERPRETATION:

Ist class employees 44% satisfied

IInd class employee 48% satisfied

IIIrd class employee 50% satisfied

There is a bit criticism about the encouragement gives towards the

employee development.

85
15.In this company people are rewarded according to their job

performance.

Table - 15

SATISFACTION NEUTRAL DISSATISFACTION

IST CLASS 56 32 12

EMPLOYEE

IIND CLASS 52 44 4

EMPLOYEE

IIIRD 70 17 13

CLASS

EMPLOYEE

Source:- The data is obtained using a structured questionnaire.

86
 Chart - 15

80
70
60
PERCENTAGE

50
40
30
20
10
0

INTERPRETATION:

Ist class employees 56% satisfied

IInd class employee 52% satisfied

IIIrd class employee 70% satisfied

The opinion of Ist class employees and IInd class employees shows that

rewards doesnt match their performance.

87
CHAPTER-V

FINDINGS

CONCLUSION

SUGGESTIONS

BIBLIOGRAPHY

QUESTIONNAIRE

88
Findings

The report in Motivation in HERITAGE FOODS (INDIA) LIMITED

(HFIL)has brought into light the total picture of the employees attitude towards

training and development.

Most of the respondents have expressed that they are interested in the on- the- job

method.

Most respondents expressed that feedback is collected from all the participants in

the program.

The employee in the organization are well participated in the training program.

The training is being given to the employees at regular interval.

Most of the employees are very much satisfied about the selection of the

candidates for training.

Most of the employees are expressed that the training programmed is imparting

the latest technology in the market.

Most of the employees agree with the training programmed meet pre-specified

objectives.

Most of the employees are respond positive with the training programmed

conducted in the organization.

89
CONCLUSION:

In the above perspective, the present chapter makes an attempt to draw some

conclusions in HERITAGE FOODS (INDIA) LIMITED (HFIL). It should be

confessed here that the investigator is conscious of the limitations of the study and the

conclusion drawn on the basis of the sample from a single unit cannot be generalized

about the entire manufacturing sector.

The study examines the readiness for employee motivation in six aspects, namely

effective Communication, Value of people, Clarity, Concept about power, Information

and Learning.

A perusal of data pertaining to combination makes us to conclude that the Executives

have agreed to the effective down ward communication flow, which is a prerequisite

for empowerment.

As far as information sharing with lower rungs is concerned, they are very positive.

One significant conclusion with regards to learning opportunities, which is a basic for

empowerment, is that the executives are favorable and feel that sufficient learning

opportunities should be there for the rank & file.

As far as clarity is concerned, the executives are somewhat agreed i.e., neutral. The

aspect wise percentage analysis leads to the conclusion that the organization is

somewhat ready for employee empowerment because the majority of the Executives in

almost all aspects are concentrated in somewhat ready group.

90
 SUGGESTIONS

Employee motivation in HERITAGE FOODS (INDIA) LIMITED

(HFIL)is good and satisfactory

There should be improve of system approach to every employee in

HERITAGE FOODS (INDIA) LIMITED (HFIL)

In HERITAGE FOODS (INDIA) LIMITED (HFIL)every employee

should be motivated in effective manner so that every employee will be

satisfied

All three levels should be take care by HR MANEGER

91
 BIBLIOGRAPHY

Prem Chadha, Performance Management, 2009, Macmillan.

P.N. Singh and Neeraj Kumar, Employee Relations Management 2010, Pearson

Education, New Delhi.

Joseph J. Mortocchi, Employee Benefits, 2010, Tata McGraw Hill, New Delhi.

R.Sivarathana Mohan, Industrial Relation and Labour Welfare, 201 PHI Learning

Pvt. Ltd.

.WEBSITE; http:/ heritage.c

http:/ wikipedia.com

www.google.com

www.cite/HRM.COM

Questionnaire

1.The people I work with cooperation to get the work done.

92
A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

2.My fellow employees are committed to do quality work.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

3.Iam involved in decisions that affect my work

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

4.I believe that al the divisions in the company and work together to achieve common

goal

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

5.I have information to do my job well.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

6.My manager delegates that work effectively.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

7.Iam satisfied with the information I received from management

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

8.My manager is available to me when I have questions or need help.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

93
9.I can see the link between my work and company objectives.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

10.I link the kind of work I do.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

11.I am clear about what is expected of me in my position as a

result of the performance appraisal.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

12.My manager assists me to identify my Motivationneeds.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

13.The employee benefits I receive are attractive and competitive.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

14.There is someone at work who encourages my development.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

15.In this company people are rewarded according to their job performance.

A)SATISFACTION B)NEUTRAL C) DISSATISFACTION [ ]

94