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  • 1. ORGANISATION STRUCTURE STUDY 1 PART-A 1. EXECUTIVE SUMMARY In the year 1918 the company came into existence under the name Government Soap Factory. Shri.S.G. Shastry a Science student went to UK for higher studies in Oil Technology. After returning to India, he conducted several experiments. He evolved with a soap perfume blend using sandalwood oil as the main base to manufacture the toilet soap & thus the famous ‘Mysore Sandal Soap’ took birth in the year 1918. The factory started functioning in its new premises from 1st July 1957. From this year onwards till date the factory has never looked back and it has achieved growth and development in production, sales and profits. The initially named Government Soap Factory was renamed as Karnataka Soaps and Detergents Ltd on 1st October 1980& its trademark is “SHARABHA”, The Company is a leading sandalwood soap manufacturer in the country, and they have demand for their products in both domestic as well as international market. The main objective of the study was to analyze the factors that influence the changeover of the soaps, to study the organizational function, to study the interdependence of these departments, to analyze the mode of awareness of Mysore sandal soap. The company’s phrase is “From the house of Mysore Sandal Soap”. Mysore Sandal Soap enjoys the highest share in the sandal soap segment. The training has exposed me to many facts of an organization and also helps me to gain practical knowledge and know about cooperation & relationship of each department in KS&DL. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 2. ORGANISATION STRUCTURE STUDY 2 PART-B 2. INDUSTRY PROFILE: Soap is one of the commodities which have become an indispensable part of the life of modern world. Since it is non durable consumer goods, there is a large market for it. The whole soap industry is experiencing changes due to innumerable reasons such as government relations environment and energy problems increase in cost of raw material etc. The changing technology and ever existing desire by the individual and the organization to produce a better product at a more economical rate has also acted as catalyst for the dynamic process of change. More and more soap manufactures are trying to capture a commanding market share by introducing new products. The soap industry in India faces a cut throat competition with multinational companies dominate the market. They are also facing severe threat from dynamic and enterprising new entrance especially during 1991-92. If we look back into the history of soaps & detergents, mankind knew about soaps nearly 2000 years back i.e. in 70 A.D. when Mr. Elder accidentally discovered the soap, when roasted meat over flowed on the glow in ashes. This lump like product was soap & had foaming & cleansing character. In 1192 A.D. the first commercial batch of soaps was made & marketed by M/s Bristol soap market in London, from there in 1662A.D. the first patent for making soap was taken in London. The world consumption of soap in 1884A.D. was said to be 2lakh tonnes p.a. 2.1 HISTORY OF THE SOAP: Soap manufacturing was started in North America. Some American companies with well known names were started 200 years ago. During middle age soap was made at various places in Italy, France, England & other countries. France became famous & many small factories were established there. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 3. ORGANISATION STRUCTURE STUDY 3 In India the first soap industry was established by North West soap company in1897 at Meerat following the swadeshi movement. From 1905 on wards few more factories were setup. They are, • Mysore soap factory at Bangalore • Godrej soap at Bombay • Bengal chemicals • Tata oil mills • 1930 lever brothers company 2.2 THE INDIAN SOAP INDUSTRY SCENARIO: The Indian soap industry has long been dominated by hand full of companies such as: 1. Hindustan levers limited. 2. Tata oil mills (taken over by HLL) 3. Godrej soaps private limited. The Indian soap industry continued to flourish very well until 1967-68, but began to stagnate & soon it started to recover & experienced a short upswing in 1974. This increase in demand can be attributed due to; 1. Growth of population. 2. Income & consumption increase. 3. Increase in urbanization. 4. Growth in degree of personal hygiene. Soap manufacture has 2 classifications, organized and unorganized sectors. KSDL comes under organized sector. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 4. ORGANISATION STRUCTURE STUDY 4 2.3 PRESENT STATUS: Market scenario: India is the ideal market for cleaning products. Hindustan liver, which towers over the cleaning business, sells in all over the cleaning business but the tiniest of Indian settlements. The 7.4lakhs tons per annum soap market in India in crawling along at 4% The hope lies in raising Rupee worth, the potential for which is high because the Indian soap market is pseudo in nature & it is amazingly complex being segmented not only on the basis of price benefits, but even a range of emotions within that outlining framework. 2.4 PROBLEMS OF SOAP INDUSTRY: Soap industry faces some problems incase of raw materials. The major ingredients are soap ash, linear alkyl, benzene& sodium. Tripoli phosphate poses number of serious problems in terms of availability. The demand supply gap for vegetable oil is 1.5 to 2 lakh tons & is met through imports. In recent times, caustic soda and soap ashes in the cheaper varieties of soaps are quite high. SLOGAN: “Natural products with exotic fragrance”. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 5. ORGANISATION STRUCTURE STUDY 5 3. COMPANY PROFILE: 3.1. BACKGROUND & INCEPTION OF THE COMPANY HISTORY OF KS&DL (INCEPTION): Karnataka soaps & Detergents Limited, a successor to the government soap factory, which is one of the premier factories among the Indian soap industries. After World War 1, there was a slump in the sandal wood export to the west. It dropped a blanket of gloom over business & trading in India. The Maharaja of Mysore turned this threat in to an opportunity, by sowing the budding seeds of KS & DL on the out skirts of Koti forest, near Bangalore in 1918. The project took shape with the engineering skill and expertise of a top-level team with the inspection of the Diwan of Mysore Late Sir. M. Visvesvaraya & with the service of scientists late Sir S.G. Shastry, Professor Watson & Dr. Sub rough. The entire credit goes to Sir. S.G.Shastry, who improved & made the process perfect of manufacturing of sandalwood oil & world famous Mysore Sandal Soap. The factory was started a very small unit near K.R.Circle, Bangalore with the capacity of 100 tons p.a in 1918. Then, the factory shifted its operations to Rajajinagar industrial area, Bangalore in July 1957. The plant occupies an area of 42 acres (covering soap, detergent & fatty acid divisions) on the Bangalore-Pune Highway easily accessible by transport services and communication. In November 1918, the Mysore Sandal Soap was put in to the market after sincere effort & experiments were undertaken to evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet soap. RENAMING OF COMPANY: On Oct 1st 1980, the Government Soap Factory was renamed as “KARNATAKA SOAPS AND DETERGENTS LIMITED”. The company was registered as a Public Limited company. Today the company produces varieties of products in toilet Soaps, Detergents, Agarbathis and Talcum powder. KS&DL has been built up with rich tradition for the quality of its products. Mysore Sandal Soap is the No: 1 anywhere in the world. The Karnataka state is the original home of the Sandal oil, which uses Original perfume sandalwood in the manufacturing of Mysore Sandal Soaps. It is also known as the “FRAGRANT AMBASSADOR OF INDIA”. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 6. ORGANISATION STRUCTURE STUDY 6 TRADEMARK OF MYSORE SANDAL SOAP The “SHARABHA” The carving on the cover is the ‘Sharabha’, the trademark of KS&DL. The Sharabha is a mythological creation from the puranas and embodies the combined virtues of wisdom, courage & strength, while it is illustrated in its unusual from the body of a lion with head of an elephant. It was adopted as an official emblem of KS&DL to symbolize the philosophy of the company. The Sharabha the symbolized power that removed imperfections & impurities. The Maharaja of Mysore has his official emblem adopted it. And soon took its pride of place as the symbol of the government Soap factory, of quality that reflects a standard of excellence of Karnataka Soaps & Detergents Limited. BIRDS EYE VIEW OF KS&DL: 1918 - Govt. Soap factory started by Maharaja of Mysore & the Mysore Sandal Soap was Introduced into the market for the first time. 1950 - The factory output rose to find terms. 1. Renovating the whole premises. 2. Installing a new boiler soap building plant & drying chamber. 1954 - Received License from government to manufacture 1500 tons of soap & 75 tons of glycerin per year. 1957-Factory shifted its operations to Rajajinagar industrial area. 1975- Rs3crore synthetic Detergent plant was installed based on Ballestra SPA (Italy) technology. 1981- a. Production capacity was increased to 6000 tons. b. Rs.5 crore Fatty acid plant was installed with technical collaboration from Europe. 1992- The Board for Industrial & Financial Reconstruction (BIFR), New Delhi in December For rehabilitation. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 7. ORGANISATION STRUCTURE STUDY 7 1996- The BIFR approved the Rehabilitation scheme in September. 1999- ISO 14001 Certificate pertaining to Environmental Management System. 2000- In May, the BIFR, New Delhi Declared the Company to be out of the purview. 2004- The company launched Herbal Care Soap. 3.2. VISION, MISSION AND QUALITY POLICY: VISSION: • Keeping pace with globalization, global trends & the State’s policy for using technology in every aspect of governance. • Ensuring global presence of Mysore Sandal products while leveraging its unique strengths to take advantage of the current Tech scenario by intelligent & selective diversification. • Secure all assistance & prime status from Government India all Tech alliances. Further, ensure Karnataka’s pre-eminent status as a proponent & provider of Tech services to the world, nation, & private sectors. MISSION: • To serve the National economy. • To attain self-reliance. • To promote purity & quality products • To maintain the Brand loyalty of its customers. • To build upon the reputation of Mysore sandal soap based on pure sandal oil. OBJECTIVES OF KSDL: • To serve the National economy. • To attain self-reliance. • To promote purity & quality products • To maintain the Brand loyalty of its customers. • To build upon the reputation of Mysore sandal soap based on pure sandal oil. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 8. ORGANISATION STRUCTURE STUDY 8 ISO 9002 QUALITY POLICY: KS&DL commits to “customer delight” through Total Quality Management & continues improvement by involvement of all its employees. ISO 14001 ENVIRONMENTAL POLICIES OF KS&DL: 1. Is committed to preserve the natural environment in the production of its quality products to the satisfaction of its customer. 2. Will comply with all statutory & regulatory requirements pertaining to environment stipulated by both state & central authorities. 3. Would invite & implement action to reduce all impacts that are likely to be a source of concern to the environment. 4. Would strive & set an example in protection & promotion of an eco-friendly environment. 5. Is committed to prevent & minimize risks to the environment & conserve natural resources by waging a war against wastes. 6. Will motivate every employee of the company in preserving the environment by providing appropriate training. 7. Will make available a copy of environment policy, under environment Management system on a written request to its manager (Environment & Policy) CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 9. ORGANISATION STRUCTURE STUDY 9 3.3. PRODUCT PROFILE: KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. The products produced at KS&DL are the Soaps, Detergents, Agarbathies and Sandalwood oil. PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP a. Mysore Sandal Soap (75gm,125gm & 150gm) b. Mysore Sandal Special Soap (75gm) c. Mysore Sandal Baby Soap (75gm) CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 10. ORGANISATION STRUCTURE STUDY 10 d. Three-In-One Gift Pack –(SJR) 3Tabs (150gm Each) e. Mysore Sandal Gold Soap (125gm) f. Mysore Rose Soap (100gm) g. Six-In-One Gift Pack- 6Tabs (150gm Each) CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 11. ORGANISATION STRUCTURE STUDY 11 h. Mysore Sandal Gold sixer 6 Tabs (125gm Each) i. Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each) j. Mysore Sandal Classic Soap (75gm) k. Mysore Sandal Herbal Care (75gm) l. Mysore Jasmine Soap (100gm) CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 12. ORGANISATION STRUCTURE STUDY 12 DETERGENTS: KS&DL also manufactures high quality detergents applying the latest spray drying technology with well balanced formulation of active matters & other builders; they provide the ultimate washing powder. 1. Sansor Detergent Powder (1kg/2kg) 2. Mysore Detergent Powder (1kg/500gms) 3. Mysore Detergent bar (250gms) 4. Mysore Detergent Cake (125gms/250gms) AGARBATHIS: 1. Mysore Sandal premium 8. Mysore sandal 2. Mysore Rose 9. Nagachampa 3. Suprabath 10.Mysore Jasmine 4. Parijata 11.Bodhisattva 5. Venkateshwar 12.Durga 6. Ayyappa 13.Alif Laila 7. Chandhana SANDALWOOD OIL: In 5ml, 10ml,20ml, 100ml,500ml,2kg,5kg,20kg,and 25kg packing. POWDERS: 1. Mysore Sandal Talk: Cooling & Healing, Fragrant freshness, Net. Wt 20gm, 60gm, 300gm and 1kg. 2. Mysore Sandal Baby Powder: Tender loving care for baby…& Mummy. Net wt 100- 400gms. NEW PRODUCTS LAUNCHED: 1. Wave Turmeric Soap. 2. Wave Hand Wash Liquid Soap. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 13. ORGANISATION STRUCTURE STUDY 13 3. Herbal Care Liquid Soap. 4. Agarbathies – Mysore Sandal 3 – in – 1. 3.4. AREA OF OPERATION: GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS KS&DL has a long tradition of maintaining the highest quality standards, right from the selection of raw materials to processing and packaging of the end product. The reason why its products are much in demand globally & are exported regularly to UAE, Bahrain, /Saudi Arabia, Kuwait, Qatar, South East Asian countries as well as North America & South America. The sandalwood oil, of course, is much sought after by the leading perfume houses of the world. All the toilet soaps of KS&DL are made from oils & fats of vegetable origin & totally free from animal fat. 3.5. OWNERSHIP PATTERN: “Wholly owned by Government of Karnataka”. 3.6. COMPETITORS INFORMATION AND THEIR MARKET SHARE: HLL 70% Godrej 4% Procter & gamble 10% KSDL 11% Others 5% PRESENT STATUS: 1. The company has entered into shampoo, dish wash, detergent bar & room refresher. 2. The company is striving to develop new perfumes for soaps detergents, agarbathies & shampoo. 3. The company wants to improve the existing products in terms of quality. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 14. ORGANISATION STRUCTURE STUDY 14 3.7. INFRASTRUCTURAL FACILITIES: 1. Canteen facility 2. Library 3. Car stand 4. Waiting room 3.8. WORK FLOW MODEL: SILOS (Silos are closed chambers) Soaps Noodles Container Mixer Simplex Plodder It becomes NOODLES Milling It becomes soap ribbons Duplex plodder Cutting Machine Cakes are led to Stamping Machine Wrapping machine Led through the conveyor belt CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 15. ORGANISATION STRUCTURE STUDY 15 3.9. ACHIEVEMENTS / AWARD: 1. Government of Karnataka Dept of Industries and commerce State Export Promotion Advisory Board. “EXPORT AWARD” 1974-75 2. Detergent Plant M/s Chemical Bombay have given 1st price for the year 1980-81 3. Geographical Indication GI-2005 4. ISO 9001-2000 in the year 1999 5. ISO 14001-2004 in the year 2000 3.10. FUTURE GROWTH AND PROSPECTUS: 1. Introduction of anti-bacteria, herbal transparent soap, made out of 33 essential oil based perfume, Aloe Vera, Vitamin-E etc as additive and suitable for all types of skin and all seasons. 2. Improvement in existing products Mysore Sandal classic improved moisturizers & skin conditions. 3. Introduction of sandalwood powder in 50gms, 100gms to meet the growing demand for religious purpose. 4. Introduction of new higher powered detergent powder for institutional sales in bulk packaging. 5. To attain market leadership. 6. Introduction of new trade schemes to increase sales. 7. Aggressive advertisement and publicity as part of sales promotion. 8. Reduction in distribution expenses. 9. Cost-reduction in all areas. 10. Instant decision making in certain procurement activities. 11. Timely introduction and implementation of market driven decisions. 12. Ensuring effective internal control. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 16. ORGANISATION STRUCTURE STUDY 16 PART – C 4.McKinsey’s 7S Framework: According to Waterman, organization change is not simply a matter of structure, although structure is significant variable in the management of change. Again it is also not a simple relationship between strategy and structure, although strategy is also a critical aspect. In their view effective organizational change may be understood to be a complex relationship between strategy, structure, system, style, skills & shared values. The first three elements- strategy, structure &system are considered the “hardware” of success. The next four – style skills, staff, and shared values are called the “software”. The complex relationship is diagrammatically presented below; CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 17. ORGANISATION STRUCTURE STUDY 17 4.1. STRUCTURE OF ORGANISATION: I. BASIS OF DEPARTMENTATION KS&DL is a manufacturing concern of moderately large size. We can see here functions wise departmentation. It facilitates effective utilization of manpower and resources and it is a simple, economical and reasonable organization pattern. II. LEVELS OF ORGANISATION The organization of KS&DL consists of 4 levels, they are  TOP LEVEL consisting of BOD’s and M.D  SECOND LEVEL consisting of Directors of Finance and Special officers  THIRD LEVEL consisting of senior managers, deputy managers and officers.  FOURTH LEVEL consisting of clerks, Assistants and Attendees. III.ORGANIZATION CHART OF KS&DL KS&DL is Functional type of organization. Under this type of organization men with special abilities in a specialized function are employed. The hierarchy is represented as follows. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 18. ORGANISATION STRUCTURE STUDY 18 ORGANISATION CHART: MANAGING DIRECTOR EXECUTIVE DIRECTOR GEN. MANAGER GEN. MANAGER (MARKETING) (R&D/P&M) (FINANCE) DY. GEN MGR DY. GEN MGR (FTD) (MTLS & Strs) AGM CS AGM (R & D) (HRD) MGR MGR (MD’s Office) (MIS) 1 M.D Managing Director 2 E.D Executive Director 3 GEN. MGR (R&D/P&M) General Manager (R & D / Prodn.,& Maintenance) 4 GEN. MGR (F) General Manager (Finance) 5 DY. GEN MGR (FTD) Deputy General Manager (Foreign Trade) 6 DY. GEN MGR (MTLS & Strs) Deputy General Manager (Materials & Stores) 7 AGM (R & D) Assistant General Manager (R & D) 8 AGM (HRD) Assistant General Manager (HRD) 9 MGR (MD's Office) Manager (MD's Office) 10 MGR (MIS) Manager (Management Information System) CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 19. ORGANISATION STRUCTURE STUDY 19 FUNCTIONAL DEPARTMENTS OF KS&DL 1. Human Recourse Department. (HRD). 2. Production & Maintenance Department.( P & M ) 3. Marketing Department. ( MKTG ) 4. Finance A/c & Audit Department.(Finance) 5. Material & Stores Department (MTLS & Strs). 6. Research & Development (R & D). 7. Foreign Trade (FTD). 8. Quality Control Department. 9. Welfare Department. 1. HUMAN RESOURSE DEPARTMENT: Assistant General Manager (HRD) Manager (HRD) Assistant Manager (HRD) Officer Labor Welfare (HRD) Officer H R Dept Staff Junior Officers First Aid Time Office Canteen CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 20. ORGANISATION STRUCTURE STUDY 20 Luther Gulick highlighted “POSDCORB” which stands for planning organizing, staffing, Directing, Coordinating, Reporting & Budgeting is the part of personnel management. H R D performs lot of function in KSDL. 1. Recruitment 2. Implementing. 3. Training 4. Cordial relationship of Industry 5. Disciplinary matters 6. Performance appraisal 7. Employee safety etc Cordial relation with Trade unions: KSDL is trying its level best to ensure healthy & cordial relation with trade unions in all matters regarding industrial disputes & employee satisfaction. HRD is act as a mother as it ensures people are treated perfectly well & widening the scope of the employees. 2. PRODUCTION DEPARTMENT: KSDL has 3 main production plants: i. Fatty Acid Plant ii. Soap Plant iii. Detergent Plant Fatty Acid Plant: The basic raw materials, Oil & fats undergo the splitting & refining process including hydrogenation at the fatty acid plant. It is also obtained & used for soap making. The plant has a capacity to process 10,000mt of oils 1 fat. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 21. ORGANISATION STRUCTURE STUDY 21 Soap Plant: The soap plant is one of the largest production plants in the country with an installed capacity of 26,000 tones per annum. KSDL’s soap plant has its uniqueness that it has the capacity to process as many as ten different varieties of soap simultaneously. The sophisticated plant from Italy has a wholly integrated straight line facility that links up process sequence for higher productivity. It is a stream line flow through right from raw material preparation to wrapping stage the line collation with the built in facility for continuous fat bleaching & saponification. The finishing touches are given by high tech universal wrapping machine. This high speed auto wrapper has the capability to handle soaps of virtually all size & shape. Detergent Plant: It has installed capacity of 10,000 tones per annum. To produce spray dried, powder & a syntax plant for detergent cakes & bars. It produces industrial detergent which is used in the formulation of wettable pesticide powders for crop protection. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 22. ORGANISATION STRUCTURE STUDY 22 Production Department Chart: General Manager (R&D / P & M) DGM (Production) AGM AGM (Production) (Production) MGR MGR MGR CSVO (PR) (P&M) (E&S) Works Assistants Manager Chemist Workers CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 23. ORGANISATION STRUCTURE STUDY 23 3. MARKETING DEPARTMENT: The company main products are soaps & detergents which are sold in different parts of India. There are depots at various places of the country which are controlled by seven branches. The role of each branch is to ensure that sales activities coming under their control. ORG: Operational Research Group report main source of marketing research private agency which study the competitors consumer demand, market etc that generates the report. Branch Depots 1. Bangalore Hubli, Raichur 2. Chennai Chennai, Salem, Madurai, Cochin 3. Hydrabad Hyderabad, Vijayawade, Ananchapur 4. Mumbai Bhiwandi, Ahmedabad, Pune 5. Calcutta Cuttack, Patna, Gauhati 6. Delhi Delhi, Jaipur, Jullundur Marketing Department Chart: Executive Director (Marketing) Dy Gen Manager (Marketing – HO) AGM AGM Heads of (MKTG) (CFGS) Branches MGR MGR (LEGAL) (MRIS) CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 24. ORGANISATION STRUCTURE STUDY 24 Channel of Distribution: KSDL manufactures their products i.e. soaps & detergents. After this sent to various distribution points through agents. The stockiest sells to various retailers hence it reaches to the consumers. Manufacture (KSDL) Agents Stockiest (Wholesalers) Retailer Consumers As the company markets their products, it ensures that there is proper description of their product & its distinct features. So that the consumer can be position to understand its components. Exports: KSDL export their products to different parts of world they are: Australia Italy Srilanka Berlin Kenya USA Canada Malaysia Japan Czechoslovakia Saudi Arabia UK France Singapore Taiwan Germany Africa Holland Functions of Marketing Department: CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 25. ORGANISATION STRUCTURE STUDY 25 1. Marketing Mix : it is the policy adopted by the manufactures to get success in the field of marketing 2. Product Policy: It includes both the turns of development & improvement produced or existing products. This all totally done by KSDL both marketing & R & D department. 3. Distribution Policy: The manufactured product of KSDL is supplier to the factory depots. There are various depots in various states & stored there. 4. Sales & Promotion: the drawback is poor advertising & sales promotion. 5. Packing: Uses different materials for different products, card board boxes synthetic covers. 6. Market Share: The KSDL production strategy is more expensive when compared to other product. At present co, holding market share of 18% in south India & 8% throughout India basis for premium soaps. 4. FINANCE, ACCOUNTS, AUDITING DEPARTMENTS CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 26. ORGANISATION STRUCTURE STUDY 26 FINANCE: It is the life blood of every organization. It is concerned with managerial decision making. This department is concerned with proper utilization of cash. It identifies the source of finance where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc. It has abundant of function which can be enumerated as follows: • Effective funds management which is inverted in beneficial projects. • Decision making regarding fixing of cash account. • Obtaining trade credit. • Profit Maximization. • Wealth Maximization. • Preparation of cash budgets. • Systematic approach to working capital management. • Pricing of raw materials & valuation of stores. • To protect financial interest of the company. AUDIT DEPARTMENT: KSDL audit wing is headed by interval auditor. Auditing is vital for the company as it facilitates verifying of all the books of a/c by trial balance, it also comply with requirements for central excise & income tax purposes. After the Auditor’s monitor everything they give report which is helpful to the company. COSTING: When a company does costing it ensures proper fixation of selling price of the product, cost control it also help in taking decision. KSDL use process costing as the production mechanism is systematic it involves addition of a lot of ingredient in the manufacturing. Finance Department Chart: CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 27. ORGANISATION STRUCTURE STUDY 27 GENERAL MANAGER (Finance) AGM AGM (Costing) / (Finance) AGM (Bills) MGR MGR MGR MGR A/C’s (PR&PF) (LS) Supervisor Supervisor Junior Officer Junior Officer Junior Officer Senior Assistant / Senior Assistant / Senior Assistant / Stenographer Stenographer Stenographer Junior Assistant Junior Assistant Junior Assistant 5. MATERIAL DEPARTMENT: CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 28. ORGANISATION STRUCTURE STUDY 28 Materials are obtained at right time, right quality at right place from right source &at right cost which leads smooth flow of production. It has been divided into 5 sections: • Oil & fats section • Perfumery & aromatically section • Packing materials section • Chemical section • Miscellaneous & Engineering stores section Objectives: • Maintaining continuity of flow of materials • Effective control of inventories • Coordination • Growth of the organization • Maintaining ethical organization Material Department Chart: Dy Gen Manager (MTLS & Strs) AGM AGM (MTLS) (Strs) MGR MGR (MTLS) (Strs) Assistant Assistant CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 29. ORGANISATION STRUCTURE STUDY 29 6. RESEARCH DEVELOPMENT & QUALITY CONTROL: KSDL its full fledged quality control & R&D single mindedly pursue quality enhancement. Both departments are headed by highly qualified professionals, committed to developing products that keep place with customers changing needs & perceptive. When doing Research they have a target which they get benefits & it enables the company to forecast the future. Aim: 1. Product process development. 2. Product process improvement. 3. Cost reduction 4. Alternative raw materials 5. Slow moving & non moving inventory reduction 6. Technical advice to the management. Quality plays a very important role in KSDL majority of the products are consumer goods. So it must satisfy the consumer expectation. i. KSDL as 2QC division ii. Raw material QC division iii. Production QC division Objective: 1. To maintain customer satisfaction at optimum level. 2. To retain perfumery content throughout it uses. 3. To maintain standard weight, size &finishing. 4. To improve the existing production 5. To adopt new methods of product development 6. To provide technical support for marketing department 7. To make improvement in the process of production 8. To administer & maintain technical library CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 30. ORGANISATION STRUCTURE STUDY 30 Chart: AGM (R&D) MGR (R&D) Assistant Manager Junior Officer S R Assistant 7. STORES DEPARTMENT: KS&DL has well- managed stores department for each of the three divisions viz, soaps, detergent & fatty acid division in the factory, there are separate miscellaneous stores department for raw material, finished goods and tools. Objectives; • Assuring the availability of raw material at right quantity. • Maintenance of adequate, but not excessive storage of materials at all time. • Maintenance of economical and uninterrupted flow of production activities and finally to ensure minimum blockage. • Achieving maximum efficiency in production and sales with least investment in inventory. Types of stores: • Perfumery stores • Chemical stores. • Packing material stores. • Oil & Fats Stores. • Finished goods stores. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 31. ORGANISATION STRUCTURE STUDY 31 8. STORAGE DEPARTMENT: In KSDL there are about 8 stores namely: 1. Packing Materials 2. Engineering Goods 3. Perfumery Stores 4. Oil & Fatrs Stores 5. Detergent finished goods stores 6. Fuel & Serviceable stores These stores play a great role in maintaining of required stock. It also facilitates maintenance of suitable store organization structure. It monitors the procedures of the receipt. Materials are issued on the basis of FIFO. 9. WELFARE DEPARTMENT: KSDL welfare department can be classified into 3 sections namely, 1. Statutory 2. voluntary 3. Non statutory a) Statutory : KSDL welfare association is based on employees contributions, interest carved. • Canteen facility • First aid • Provident Fund b) Voluntary benefit : • workers education class conducted by the central board • Inspection of fittings • Dust nuisance • Toxic gas nuisance c) Mutual : • Employees get 2 pair of uniform & a pair of shoes for every year. • Cultural Recreations, Leave facilities. • Employees Co-operative society which give loan on credit • Employees house building society CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 32. ORGANISATION STRUCTURE STUDY 32 10. MAINTENANCE DEPARTMENT: Effective maintenance is the goal of the company. The areas of maintenance are: • Mechanical Maintenance • Electrical Maintenance • Civil Maintenance Proper maintenance results to: • Reduction of overload • Cost Reduction • Greater Safety of equipment & workers • Delivery schedule is maintained. This department contributes also working progress of the company. DIVISION OF KSDL: 3 manufacturing units all over India 1. KS & DL Bangalore Division 2. Mysore Division 3. D.P.G Shimoga. 4.2 SKILLS: The term “skills” includes those characteristics, which people use to describe a company. Organization have strengths in a number of area but their key strengths are dominant skills are few. These are developed over a period of time of the result of the interaction of a number of factors performing certain tasks successfully over a period of time, the kind of people in the organization, the top management style, structure, the management systems, the external environmental influence etc. Hence when organization makes a strategic shift it becomes necessary to consciously build new skills. Employee’s skills in an organization will be unique, this may be due to their experience in the place of work, and the similarity may also due to influence of the similar culture. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 33. ORGANISATION STRUCTURE STUDY 33 However every person according to his traits possesses his own talents and special characters. This cannot be generalized skill among them. The employees of KS&DL have different skill, which are relevant for their work. As it is common in big organizations, he also controversies between departments which can be solved by discussions and by conducting some interactive programs. 4.2. STYLE OF MANAGEMENT: Decision-making is centralized with the head office. Authority is given to unit in- charge to take decision in day-to-day minor matters & other urgent matters. Decision-making depends on the authority & responsibility conferred on each individual & thus it’s distributed based on designation & position held. In important matters, meetings are held to seek opinions of top management & various department manager & the decisions are taken & implemented. Decision-making is co-ordinate & done with wide consultations of top management of department manager’s consultation which gives best possible gains. 4.3. STRATEGY: Strategic planning is about asking questions, more than attempting to answer them. Strategy formulation entails a search for a different frame of reference. It is the quest for a new business paradigm. There are two types of paradigms that apply to management, namely the business and the organizational or managerial paradigms. The business paradigms define a company’s position in the market place with respect to customers, technology and products. Strategy is a choice of direction and action; the company adopts to achieve its objectives in a competitive situation. Any statements on overall of functional strategy that the company may wish to share are: Improvement in the existing products. • Their future plans include launching of new products. • The cost control exercise is in consolidation. • Introduction of cost effective substitutes without compromising on quality • Development of new perfumes, soaps detergents, agarbathis, creams and shampoos. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 34. ORGANISATION STRUCTURE STUDY 34 4.5. SYSTEMS: A. Accounting System: Financial statements are prepared under the historical cost convention on an accrual basis and comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956. B. Costing System: Process costing. C. Inventory Control System ABC analysis for stock control. FIFO method for issuing materials. Computerized accounting system for stores. D. Remuneration System: 1. Time rate system is followed to employees. 2. Government fixes the remuneration to executives. E. Performance Appraisal System: Confidential report is prepared by heads of various departments for systematic judgment of the subordinate by authority to assess the standard of work & overall performance. F. Inventory Control System: CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 35. ORGANISATION STRUCTURE STUDY 35 4.6. STAFF: As any employer, KS&DL follow ethical employment standards wherever it operates with a goal in mind company guarantees. 1. To fulfill its entire legal obligation in terms of employment payments and benefits practices. 2. Adequate and timely training for every one for the job for which they are employed. 3. Career advancement related to performance and experience. Benefits provided by KSDL: Monetary benefits are basic wage allowances, employee’s contribution to PF. Employee state insurance, bonus, pension gravity etc. Fringe benefits like housing, food canteen, education to children, medical facility, holiday pay, recreation etc. Allowances: The gross salary includes basic pay and 1. DA 2. City compensatory allowance 5% of basic pay. 3. HRA 20% of B.P who resides in rented house. 4. Conveyance allowance, Rs.595/- per month for workers. Family Travel Allowance: Rs.1000/- per year for an employee. 5. Shift allowance: 3 shifts, 1st: 6-2p.m 2nd: 2-10p.m Rs.15/- per shift. 3rd: 10pm – Security Rs.25/- per shift. Regularly the administrative is 9.30am to 5.30pm 6. Leave allowance: 18 days privilege leave 7 days casual. Leave 15 days of sick leaves. 7. Canteen facility 8. Bonus: It is declared within 8 months after closing the accounts the management has declared 20% bonus for the current year. 9. Increments CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 36. ORGANISATION STRUCTURE STUDY 36 10. P.F Medical benefit: Workmen card: Domiciliary Rs, 400/- per month is given along with wages & group insurance policy for self & family. Office card: the co, gives actual cost over & above the entitlement for major diseases. 4.7. SHARED VALUES: Values: Values refer to the institutional standards of behavior that strengthen commitment to the vision, and guide strategy formulation and purposive action. The core values are shaped around the belief that enterprises exist to serve society. In terms of this belief, profit is a means rather than an end in itself a compensation to owners of capital linked to the effectiveness of contribution to society and the essential ingredient to sustain such enlarged societal contribution. Thus company has embraced an extended role of trusteeship that reaches beyond the assets reflected in the balance sheet to encompass societal assets. An unwavering commitment to integrity, ethical conduct, meritocracy, teamwork and abiding concern for stakeholders are at the heart of your company’s value system. • Customer satisfaction • Committed to total quality. • Cost and time-consciousness. • Innovation and creativity. • Trust and team spirit. • Respect for individuals. • Integrity health and ethics. Mission: • To serve the National economy. • To attain self-reliance. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 37. ORGANISATION STRUCTURE STUDY 37 • To promote purity & quality products • To maintain the Brand loyalty of its customers. • To build upon the reputation of Mysore sandal soap based on pure sandal oil. Vision: • Keeping pace with globalization, global trends & the State’s policy for using technology in every aspect of governance. • Ensuring global presence of Mysore Sandal products while leveraging its unique strengths to take advantage of the current Tech scenario by intelligent & selective diversification. • Secure all assistance & prime status from Government India all Tech alliances. Further, ensure Karnataka’s pre-eminent status as a proponent & provider of Tech services to the world, nation, & private sectors. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 38. ORGANISATION STRUCTURE STUDY 38 PART- D 5. SWOT ANALYSIS: 5.1 STRENGTHS • The factory is located in the heart of the city & has all infrastructure facilities. They require quick movement of raw materials & finished products. Due to its proximity, habitation movement of men and material are easy. • The company has modern manufacturing facility with maximum capacity, brand loyalty of consumers and has 90% of sandal soap market, foreign technology to suit indigenous condition due to government participation, little financial crisis with backup from government. • A very good dealership network, which ensures that the products reach every loop and corner. • A very little competition for its major products sandal soap. • An ISO 9002 certified company has its own brand image. • An ISO 14001 company, which commits to reserve the natural environment in the production of its quality products to the satisfaction of its customers. • Diversified product range keeps the company stable. • Abundant availability of raw materials. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 39. ORGANISATION STRUCTURE STUDY 39 • Two sandalwood oil factories in Shimoga and Mysore, which produce 75% of world’s sandalwood oil. 5.2 WEAKNESS: • Slow growth rate 6.2 growths over 40 years against the product of 80%. • Power intensive: dependent on power may miscarriage here results in under utilization of capacity. • High oriented cause due to excessive labour force. • Low turn over resulting in low profits. • Defective marketing strategy lacks effective advertising and publicity. • Needs updating with times in terms of plant and machinery. • R&D is not effective in as much as it has not made any brake through in new products. • The large proportion of the target area is upper middle class and upper class people, it has very few offer to lower middle class. • It has only 8% of the total detergent market share. • Due to lack of direct sales, debts with many dealers turning bad. • Unskilled labor coupled with excess labor hampers profitability. • Product lies under utilized. 5.3 OPPORTUNITIES: 1. The toilet soap and the detergents market is an over expanding industry and a major company likes KS& DL with its manufacturing expertise can call the shots if it reaches peak manufacturing capacity. 2. Good export market should tap foreign market vigorously. 3. At present it has Good raw material sources to enhance production. 5.4 THREATS: 1. Competition from other global leaders like HLL. 2. Government interference may reduce growth potential. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 40. ORGANISATION STRUCTURE STUDY 40 3. As the company depends on forests for its main raw materials makes the company to find chemical alternative to sandalwood. 4. To protect the financial interest of the company. PART- E 6. LEARNING EXPERIENCE: The learning experience gained by me during the in-plant training was very much practical oriented. Mostly all the concepts and theories, which I studied in the class, are applicable practically. The overall study of the organization reveals that the company has grown tremendously since its incorporation from 1918, now it has independent units for manufacturing sandalwood oils, toilet soaps, washing soaps, detergents, cosmetics, incense sticks and industrial products. The initially named Government Soap Factory was renamed as Karnataka Soaps and Detergents Ltd in 1st October 1980. Its trademark is “Sharabha”, the slogan stands as “Natural products with exotic fragrance”. The company is a leading sandalwood soap Manufacturer in the country. Even though they have demand for their products in both domestic as well as international market, They are not able to establish themselves as market leaders due to various reasons such as extensive work force, non-utilization of installed capacities of manufacturing, lack of proper distribution network, lack of expenditure in the areas of advertisements and publicity, competitions of various soaps and detergents and lack of timely decisions. The company has an effective human resources department where in the employees are given excellent packages, incentives and extensive care is taken by providing facilities such as canteen, medical facilities, motivation classes and extracurricular activities. I had a great time working on the project, as it gives insights into the working environment of an organization. The training has exposed me to many facts of an CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 41. ORGANISATION STRUCTURE STUDY 41 organization and also helped me to gain practical knowledge, which will go a long way in the horizon of our career. I became more aware of the soap industry and the role played by KSDL.  Structure: I got to know how decisions are communicated, the flow of decision process. The way in which departments are classifieds on the basis of their functioning. The functions of each departments and its relevance. The way in which the departments are inter-linked and coordinated.  Skills: Through skills, how the training needs are satisfied to the employees of different grades. The different on-job and off-job training given to the employees.  Style: Through style, I got to know how decisions flow from top to bottom in KSDL. How the production process is planned and worked out. How self managed teams perform to achieve the targets set by the management.  Strategy: Through strategy, I found how strategies were formulated to overcome the rigorous competition. Strategy is very much essential for the company to survive in the market. Supply Chain Management is one of the strategies adopted by KSDL, through which they are able to reduce the cost of production and increase profitability.  System: System plays an important role of supporting and facilitating various activities that are carried out within the organization. KSDL adopts latest system. Overall the learning experience was quite satisfactory which enabled me to experience a slice of the real and ruthless industry. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 42. ORGANISATION STRUCTURE STUDY 42 7. FINDINGS: ♦It is a company wholly owned by government, so it has to follow the rules made by the government. ♦The company is under utilizing its capacity. ♦Its production is based on old technology, which leads to more wastes in the production process. ♦Consumer awareness of its products is very less except for Mysore Sandal soap. ♦Its products are not available easily in district places of states other than Karnataka. ♦There is mismatch in production & sales activity. ♦Recruitment in the company has been stopped since 1988 due to some circumstances and recruitments are taking place only in some department. 8. SUGGESTION: KSDL has a wide variety of products but people are unaware of many products like Agarbathi, Detergents, Baby soaps etc., as its marketing is very weak. So it should spend both money and man power on advertising. They should also improve in building up the strong marketing strategy in order to improve the distribution channels and could be able to increase the sales other than the Mysore Sandal Soap. Thus the R&D should work effectively and achieve the break-through in new products and can make the company to earn more profits. The management should design Training and Development programmes and Career Development programmes and identify the skills or knowledge. CHRIST COLLEGE INSTITUTE OF MANAGENENT
  • 43. ORGANISATION STRUCTURE STUDY 43 9. BIBLIOGRAPHY: i) Website; www.mysoresandal.com www.msilonline.com ii) Books and Journals: KS&DL-Company Brochure Annual reports KS&DL. Marketing Management BY Philip Kotler Financial Management BY I M Pandey CHRIST COLLEGE INSTITUTE OF MANAGENENT