Here we analyze the Amul orgnaization and find out how decision making help in Amul and level of differentiation at Amul

1. OB II PROJECT: ANALYZING THE ORGANIZATION
PRESENTED BY GROUP 5
MAULIK CHAUDHARY (PGP03032)
MOHIT YADAV (PGP03033)
NEHA DHAVALIKAR (PGP03034)
NIHAR MEHTA (PGP03035)
NIKITA BORANA (PGP03036)
NITESH A KAMBLE (PGP03037)
NITIN SANKAR (PGP03038)
NIVEDITA DAS (PGP03039)

2. AMUL – The taste of India
Formed in 1946, inspired by India’s freedom struggle Amul
is a dairy cooperative movement in India.
Products in which Amul deals – Milk, Bread spread, Butter,
Cheese, Ice- cream, Paneer, Ghee, Chocolate etc.
Based in Anand, Gujarat, Amul was founded as a
cooperative.
They bought there first chilling facility in Anand in 1948.
Their distribution network spans the entire country.

3. More about Amul
Amul employees 750 employees of Marketing Arm & 3.6 million milk producer members.
The main stakeholders of the company includes owners, partner and suppliers, buyers,
customers, government and public, political, social environment.
The goal of the various stakeholders are complementary and do not conflict.
Along with giving utmost importance to stakeholders like customers and farmers, they provide
input services to the producers like veterinarian services, training farmers on anima husbandry
and establishing chilling centre.
Amul produces a wide range of products for every segment of the customers like – women,
children, health conscious people etc.

4. Organizational Structure
Organization
alStructure
External
Structure
Internal
Structure

5. External Structure
State Marketing Federation
(All Dairies in a State
GCMMF)
District Milk Processing
Union (Every District in the
State)
Village Cooperative Society
(All Villages in a District)
Milk Producers
(All Milk Producers in a
Village)

6. Chairman
Managing
Director
General Manager
Deputy GM
Assistant GM
Finance
Department
Sr. Manager
Manager
Deputy Manager
Asst. Manager
Marketing
Department
Sr. Manager
Manager
Deputy Manager
Asst. Manager
Sales & Purchase
Department
Sr. Manager
Manager
Deputy Manager
Asst. Manager
Production
Department
Sr. Manager
Manager
Deputy Manager
Asst. Manager
Quality & Product
Department
Sr. Manager
Manager
Deputy Manager
Asst. Manager
Store & Dispatch
Department
Sr. Manager
Manager
Deputy Manager
Asst. Manager
HR Department
Sr. Manager
Manager
Deputy Manager
Asst. Manager
Internal Structure

7. Asst. GM
Finance
Department
Senior Executive
Executive
Senior Officer
Officer
Senior Assistant
Assistant
Sr. Technician
Technician
Trainee
Marketing
Department
Senior Executive
Executive
Senior Officer
Officer
Senior Assistant
Assistant
Sr. Technician
Technician
Trainee
Sales & Purchase
Department
Senior Executive
Executive
Senior Officer
Officer
Senior Assistant
Assistant
Sr. Technician
Technician
Trainee
Production
Department
Senior Executive
Executive
Senior Officer
Officer
Senior Assistant
Assistant
Sr. Technician
Technician
Trainee
Quality &
Product
Department
Senior Executive
Executive
Senior Officer
Officer
Senior Assistant
Assistant
Sr. Technician
Technician
Trainee
Store & Dispatch
Senior Executive
Executive
Senior Officer
Officer
Senior Assistant
Assistant
Sr. Technician
Technician
Trainee
Personnel
Department
Senior Executive
Executive
Senior Officer
Officer
Senior Assistant
Assistant
Sr. Technician
Technician
Trainee

8. Key Persons
S.No. Top Managers Name
1 Chairman of GCMMF Mr. Jethabhai Patel
2 Chairman of AMUL Mr. Ramsinh Parmar
3 Managing Director Dr. K Rathnam
4 General Manager (Engineering
Department)
Mr. H.K. Desai
5 General Manager (Production
Department)
Mr. Amit Vyas

9. Span of Control
AMUL has fewer subordinates per manager.
It has tall and narrow span of control.

10. What is Bureaucratic Organization?
An organization structure which is designed and managed on impersonal and rational basis
through clearly defined authority and responsibility, formalization, centralization, specialization,
rules and regulations.
Bureaucracy by Socialist Max Weber: Most efficient system of organizing.
Weber says as organizations progress through the life cycle they become more bureaucratic as
they grow larger and complex.
Advantages of bureaucracy: Stable, efficient, effective and successful organization.
For example, Government organizations (ONGC &NTPC) and large multinationals (L&T and GE).
Weber’s Dimensions of Bureaucracy: Rules and procedures, specialization and division of
labour,hierarchy of authority, technically qualified personnel and written communication and
records.

11. Why AMUL is a Bureaucratic Organization?
Established by politician Tribhuvandas Patel under the guidance of Sardar Vallabhbhai Patel and later led by Dr.
Verghese Kurien.
So, organizational structure is highly influenced by the bureaucracy in government organizations.
Different departments: Finance, Production, Marketing, Purchase and sales and Personnel department.
High degree of standardization and formalization
Rules and procedures
Written communication, records and documentation
Systematic flow of instructions from top to bottom
Only top authorities have power to take decisions about important issues
Specified appraisal system and promotion policy
Sometimes, centralization causes delay in decision making

12. Why AMUL is a Bureaucratic Organization?
Comparing above reasons with Weber’s definition and dimensions of bureaucracy and from the
AMUL’s organization chart it can be concluded that AMUL is a medium to highly bureaucratic
organization.

13. Response to design challenges
The response can be analysed based on 5 elements
1. Simplicity
2. Flexibility
3. Reliability
4. Economy
5. Acceptability

14. Decision making in the organization
The decision making is decentralized
There is representation of small scale farmers at different
levels of hierarchy
All decisions taken and implemented are verified and
approved at each level of hierarchy

15. Level of differentiation
The level of differentiation is very high in Amul
Differentiation is high due to the presence of various facets such
as :
◦ Production
◦ Procurement
◦ Processing
◦ Pricing
◦ Marketing
◦ Training
◦ Management

16. Level of differentiation
The farmers are important stakeholders
Skilled operations are performed by hiring professionals
The producers decide on policies while the professionals
implement the policies

17. Measures of Evaluating Effectiveness
Reach of the dairy
Growth in Milk production and availability
Market dominance of the dairy cooperatives
Innovation
Social empowerment
Economic empowerment

18. Performance Evaluation
12 million farmers associated with the dairy
1,08,574 village-level dairy co-operative societies
170 district-level unions spanning 338 districts 22 state-level
marketing federations
Production and per capita availability of milk
Growth of polypack milk 16% since 2008

19. Control, Innovation and Efficiency
Innovative organisational model
Introduce GIS facility
Awarded CNN-IBN “Innovating for a Better Tomorrow”
Award 2014
Inter-locking control mechanism to ensure interest of
farmers
Three-tier model helped in improving efficiency

20. Behaviour in the organization
Behaviour in Amul is standardized
A similar model is applicable over all the Amul collection,
distribution and processing units
The standardization is brought by computer applications and
3000 automatic milk collection centres
The rules set ensure that there is no compromise on quality
The rules ensure compliance to the established standards and
adherence to the chronological culture and structure of Amul

21. Informal organization
Informal organization does play an important role in the
way members behave
At grassroot level informal organization exists in village
societies

22. Amul Organisational Model
The decision making process is more vertical but decentralized.
Communication within the organisation is more informal.
It follows standardized policies and procedures for its governance and for making its products.
The structure is task based. i.e., typically each person corresponds to one task.

23. Organizational Culture of Amul.
• Amul’s culture can be defined as producers oriented, consumer centered and holistic development.
• The organization is also focused on achieving goals such as sales growth and market penetration as
it is world’s 13th largest dairy company.
• Amul company can be said to be following more of a mission culture, with a blend of all.
• Amul is also concerned for the customers development in the external environment but without
the need for a rapid change.
• Corporate social responsibility (CSR) is a part of Amul’s internal culture.
• Amul company has planted more than 619.7 lakhs trees in past 10 years contributing to sustainable
ecological development.
• ‘Amul relief trust’ (art) donated rs.50 million for the reconstruction of the school buildings
damaged in the 2001 earthquake in the kutch area.

24. Values of Amul
Terminal Values :
1. World’s leading dairy products company.
2. Maximum Revenue.
3. Healthy Consumers.
4. Serving the society.
Instrumental Values :
1. Not harming nature and animals.
2. Farmers and employees well being.
3. Healthy and fresh products.
4. Corporate social responsibility (CSR).

25. Organizational change
First co-operative company to adopt e-revolution.
Eliminated middleman
Introduced “GIS facility”.
First organisation to have its own website.
First company to open cyber store across the nation.