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30670477 campco


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30670477 campco

  1. 1. PREFACE“True learning is born out of experience andobservation”. Practical experience is the besttype of learning that one can remember asthe aspects of administration andmanagement. The day comes to apply thetheoretical knowledge in corporate world incontext of modern industrial enterprise thathas to go through its different terminal toachieve the corporate goals. The mainobjective of practical training is to developpractical knowledge and awareness aboutindustrial environment and businesspractices in the student as a supplement totheoretical studies. It increases the skill,ability and attitude to perform specific job inindustrial environment.”
  2. 2. Fortunately I got opportunityto visit and complete my Fortunately I gotan opportunity to visit and complete mysummer training program at CAMPCOCHOCOLATE FACTORY, at Kemminje,puttur. Here I got chance to see thefunctioning of all major departments andimbibe a lot learning of the subjects.
  3. 3. EXECUTIVESUMMARY The MBA course offered by theBangalore University has its own uniquesyllabus which requires its MBA students toundertake an internship with any of theleading business houses for a period rangingfrom 4 weeks to 6 weeks during the secondsemester. The purpose of this internship is toenable the students to appreciate andunderstand the nuances of the practicalworld vis-à-vis the theoretical inputadministered during regular academicsessions. This helps in creating managerswho are equipped with the experience of
  4. 4. linking the theoretical inputs with those ofpractical exposure and come out withcreative solutions and ideas in enhancing thebusiness. In partial fulfillment of MBAdegree of Bangalore University I took up anorganization study at CAMPCO chocolateFactory, puttur for a period of four weeks. The objective is to learn about theworking of a company. The practical aspectswas studied and compared with thetheoretical aspects learnt in the course. Thestudy involves visiting the variousdepartments of the organization to learnabout their structure and their functions. Theincorporation, background, vision andmission of the company were briefed by theAdministrative department. The work flowmodel was briefed before the visit to theproduction unit. The product profile wascollected by visiting the departmental outlet.
  5. 5. The study was more emphasizedon 7S Mc Kinsey’s Model and the SWOTanalysis of the company. The study providesa good exposure to the corporate world anda good comparison of the practical andtheoretical aspects as studied in the course. DECLARATION I, N.Pramod Shetty, do herebydeclare that the internship report on“CAMPCO CHOCOLATE FACTORY,PUTTUR” has been accomplished by meunder the eminent guidance of ProfessorHema Harsha, Faculty, M.P. Birla Instituteof Management, Bangalore. I submit this report in partialfulfillment of the requirements for awarding“Master of Business Administration” degreeof Bangalore University during the
  6. 6. academic year 2008-10, and not for theaward of any degree of any other university.Place: BangaloreDate: (N.PramodShetty) CERTIFICATEThis is to certify that the Internship Reporton “CAMPCO CHOCOLATE FACTORY”has been prepared by Mr. N.Pramod Shettybearing registration number 08XQCM6048,under my guidance. This has not formed a
  7. 7. basis for the award of any otherDegree/Diploma by Bangalore University orany other University.Place: BangaloreDate: M/s HemaHarsha(Internal guide)PRINCIPAL’SCERTIFICATE
  8. 8. This is to certify that the Internship Reporton “CAMPCO CHOCOLATE FACTORY”has been prepared by N.Pramod Shettybearing registration number 08XQCM6048under the guidance of Professor HemaHarsha, Faculty, M.P Birla Institute ofManagement, Bangalore.Place: BangaloreDate: Dr. Nagesh SMalavalli (Principal) INTRODUCTIONThe report is based on the organizationstudy at the CAMPCO CHOCOLATE
  9. 9. FACTORY, puttur for a period of fourweeks as per the B.U norms. An attempt wasmade to learn about the manner in which acompany works. The study included the visits andcollection of information from the variousdepartments of the company with thefollowing objectives: • Inception and background of the company. • Ownership pattern and the nature of business carried on. • Vision, mission and the quality policy of the organization. • The product profile and the
  10. 10. competitors for the same. • Workflow model of the company. • The structure of the company and the various departments along with the main functions. • The marketing strategies used. • The chocolate industry and its contribution to the economy. • SWOT analysis of the company.A visit to the retail outlet was made to learnabout the various product lines. Aninteraction was made with the visitors to
  11. 11. know their views towards the company’sproducts and their expectations from thecompany. ACKNOWLEDGEMENT The immense gratification this projectwork has given me and does not lead to asense of fulfillment unless I express myboundless gratitude to all those who made
  12. 12. this work successful. I do recognize thatmere thanks giving would not redeem me ofmy indebtedness for all the timely help,support and guidance I received. I script onthis page my sincerest thanks to each one ofthem. I profusely thank Mr.Abu Baker, AGMof CAMPCO for giving me an opportunityto do my internship in the esteemedorganization and for giving the informationabout the company and guiding methroughout the program. I am extremely thankful to M/sHema Harsha Lakshmi Narayana, Professor,M.P Birla Institute of Management,Bangalore, who has guided me throughoutthis project by giving valuable suggestionsand advice. I equally thank all the Employeesand Executives of CAMPCO who haveextended their suggestions and interacted
  13. 13. with me and helped me learn a lot during theproject. I offer my humble salutations to thelotus feet of the Almighty for his bountifulblessing without which I would not havecompleted this endeavor successfully. N.PramodShetty
  14. 14. INDUSTRY PROFILEChocolate was discovered in the 18th centuryand every child’s dream came true all overthe world. The various brands of chocolateoften spoken about in India are Amul,Cadbury and Campco. In olden days, the ancient humanalmost led a nomadic life wandering fromplace to place in search of food. Food is thebasic source of energy for living organismsincluding human beings. Hence all livingbeing need food. But in modern period, manhad started discovering new methods ofproducing food through Agriculture. Thevarious activities involved in getting foodcrops through agriculture are known asagricultural practices like management ofsoil, sowing, transplantation and applicationof manure and fertilizers irrigation, weed-control, crop improvement techniques, cropharvesting and protection.
  15. 15. India is a land of villages. Nearly 65-70% ofour country is agriculturists. About 75% ofthe land used for agriculture is cultivated forbasic food grain hence it has become a basicindustry in our country. Agriculture is one of theoldest occupations of human beings.Agriculture means ploughing of the land,sowing seeds, protecting plants andobtaining crops for the use of people anddomestic animals. Commercial crops notonly help to earn foreign exchange but alsoprovide raw materials for industries. Cocoais also one of the important commercialcrops in India. Cocoa is grown on the slopesof Niligiri Hills. The discovery of cocoa was only a firststep in the direction of chocolate. TheMayas were the first to cultivate the cocoabean for the fruits is yielded. They used thebeans as an ingredient in their favorite
  16. 16. chocolate drink xocoatl. The Mexican Indianworld chocolate comes from a combinationof the terms chocolate consumed inbeverage force.Before the Spanish explorer discovered thechocolate and other ‘exotic’ foods weretotally unknown in Europe. In the 1600European began to open fashionablechocolate houses to serve xocoatl as HotChocolate scattered with sugar. In the1700’s the English began with adding milkto improve the flavor. The first factory for processingand manufacturing chocolates in India wasstarted during the world war-II at Bilimoriabut due to tough competition from foreignproducts the company is ceased and stoppedits process and it made second attempt in1936. But it faced failure as the size ofoperation was economical. Finally it made
  17. 17. third attempt to find its success to restart its production. Messrs Sathe Biscuit and chocolate co. ltd., Poona commenced production of cocoa powder on a small scale and chocolate manufacture was taken up in 1941. Then the production gradually increased. Later, Madhu Canning Factory Agra, East India Distilleries and Sugar Factories Limited Madras started the production of chocolates. With the machineries manufactured by five major companies of the cocoa processing aand chocolate manufacturing namely-M/S Carle and Montanari Spa, Italy.M/S 1-Aasted International APS, Denmark.M/S Otto Hansel Gmbh, West Germany.M/S Sollich Gmbh and Co. kg, West Germany.M/S Sig Swiss Industrial Co, Switzerland. Cadbury Ltd., which was so far importing
  18. 18. cocoa and chocolates into the country,established plant in Bombay for processingand packing of cocoa imported in bulkduring the initial stage. The new firms thathave engaged into this field in India areAmul, which has completed 50 years ofservice and the CAMPCO, which came upduring the 80’s. CAMPCO is one of thelargest factories in South Asia. Cocoa is used as beverage andchocolate is mainly used as confectionaryand to a small extent also used as beverage. The market share of CAMPCO is 5-8%,the Cadbury’s market share is 70% and theNestlé’s market share is 15-20%. Thepenetration of chocolate in the country wasestimated at 5.5% in 1998. The penetrationin urban India stood at while that in ruralIndia as a mere 2.3%. Thus the consumptionof chocolate is largely restricted to urbanareas where too, the penetration is relativelylow. During the last five years
  19. 19. growth in chocolate in India has coveredbetween 10% and 20%, with average growthbeing at the range of 14-15%. Restricted tourban areas played in the segment haveattempted to accelerate growth by addingnew consumers to the chocolate market.Although the country with a culture ofconsuming and exchanging sweets, pre-packed branded sweets are yet not popular.The consumption pattern and purchasehabits trend to favor local, freshly madeproducts. The ability of chocolate companiesto enter this market could provideunprecedented with may be tempering ofincome pyramid and introduction of lowprice packs. COMPANY PROFILEBACKGROUND AND INCEPTION OF
  20. 20. THE COMPANY “CAMPCO” is the short name of theCentral Areca nut and Cocoa Marketing andProcessing co-operative limited. CAMPCOwas registered on 11th july in the year 1973,under section 7 of Karnataka Co-operativesocieties act of 1959. The main activity ofCAMPCO is procuring and marketing ofAreca nut and also manufactures chocolates.CAMPCO was set up with active support ofKarnataka and Kerala Government. Thegrowers who were getting a reasonable pricefaced a sudden marketing crisis during theyear 1970-71 when the price of the areca nutbegan to fall. The situation worsened during1972 and the price of areca nut fel to such anextent that the growers could get only half ofthe price. But the cost of living was rising asthe cost of input was steadily increased. Thiscreated factually a panic among the growers.There was no organized marketingarrangement for areca nut.
  21. 21. Later on the KarnatakaGovernment constituted an expertcommittee, which recommended to the StateGovernment to organize a Central agencyeither in the public or the co-operativesector. With the help of Government ofKarnataka and Kerala, the “Central Arecanut Marketing and Processing Co-operativelimited” popularly known as “CAMPCO”on 11th july 1973 under section 7 of theKarnataka Co-operative societies Act 1959. The growers of areca nutappealed to the Government in turnrequested CAMPCO to help the farmers bybuying their products. CAMPCO thus wentinto business of cocoa beans in 1980. Afterthat CAMPCO was able to export cocoabeans of worth Rs.4 crores to the Europeancountries in their initial phase of operation.In the mean time CAMPCO has to face theproblem of limited internal market andunremunerative export market. In order toovercome this and increase the local
  22. 22. consumption of cocoa based products andexport value added cocoa semi-finishedproducts. CAMPCO put up a chocolatefactory at Puttur, 50km away fromMangalore.CAMPCO has signed agreement betweencompanies. They are:AGREEMENT WITH M/S NESTLEINDIA LIMITED. CAMPCO chocolate factoryentered into an agreement with M/S FoodSpecialties Ltd known as M/S Nestle IndiaLtd, on 7th February 1990, for manufactureand supply of bulk quantity of chocolatesand cocoa products ranging from 2500MT to3750MT p.a for an agreed manufacturingfee of Rs. 12,000/- per MT of raw materials.At first Nestle didn’t have any plant andbecause of experienced people availabilityof all type of chocolate production withsophisticated machineries nestle made an
  23. 23. agreement with CAMPCO. This agreement is also made good result on CAMPCO to gain demand in competitive market. AGREEMENT WITH AMUL LIMITED CAMPCO factory had entered into an agreement with Amul India Ltd, on January 2001 for the manufacture and supply of bulk quality of chocolates. The agreement was made only for 5 years. The Amul Ltd supplies the raw materials to the CAMPCO Ltd; the CAMPCO makes chocolate and supply to Amul Ltd. The chocolate products, which were produced to the Amul Ltd, are as follows:• Milkair – 5.5gm – white centre chocolates.• Chocolate – 5.5gm – brown centre chocolates. At present CAMPCO is having its own marketing team and the present set up as follows:-
  24. 24. CAMPCO is one of India’s mostmodern chocolate manufacturing co-operatives. Today CAMPCO has diverseproducts. It is now affording product qualitywith a variety to cater wider section of themarket. CAMPCO manufactures andmarkets a different range of products underits own brand name. The production and demand forchocolate have been rapidly increasing inIndia at the rate of 20% during the last 5years. The average growth is at 20% internalchocolate market, which is now about 5500tonnes. CAMPCO chocolate unit salesperformance in terms of value is increasingyear by year. The sale includes sales of semifinished products also. The major purchasesof semi finished products within India are asfollows-• Britannia
  25. 25. • Smith Kline Beechem• Parley• Small Confectionery Manufactures• British Biological• BambinoSales performance during the last 7 years isas shown below:YEARS SALES(MT)2002-03 2425.922003-04 2596.732004-05 3140.452005-06 2622.032006-07 3995.52007-08 4742.19CAMPCO at Glance Full Name of the organization : The Central Arecanut and cocoa Marketing and Processing Co-opeative limited
  26. 26. Status: A Co-operative Society registered under themulti state co-operative societies act 1984.Area of Operation: Karnataka and kerala state formembership. No limit for marketingMain objective: Procurement/Processing/Marketingof arecanut and since 1980 cocoa/cocoa productsDate of Registration: 11-07-1973Date of commencement of business : 12-11-1973Registered office : Varanasi towers at Mangalore.Brand name : CAMPCOType of ownership : Semi-GovernmentDate of entry into Chocolate : March/April 1987Authorized share capital : Rs.35 crores.Paid up share capital : Rs. 14.90 crores as on 31-03-2008.Number of Branches and Depots : 168 (all overIndia)
  27. 27. Industries owned: 1. The CAMPCO Chocolate unit.Puttur2. The copper sulphate manufacture unit at sagar(shimoga district).Location : Kemminje, Puttur.Type of Organization : Co-operative Society.Number of Employees : 237 + 130 workers appointedon contract.Production Capacity : 8800 MT.Number of Shifts : 6 am – 2 pm 2 pm – 10 pm. 10 pm – 6 pm.NATURE OF THE BUSINESS CARRIEDBY CAMPCO.The Central Arecanut and Cocoa Marketingand Processing Co-operative Limited(CAMPCO) was registered on 11th july 1973under section 7 of the Karnataka Co-
  28. 28. operative Societies Act 1959 read withsection 4(2) of the multi unit Co-operativeSocieties Act 1942 and subsequently it hasamended its byelaws and the same areregistered under the Multi state Co-operativeSocieties Act 1984. Under certificateNo.L/11016/42/87/L and is dated: 8-12-1988. The main activity of CAMPCO isprocuring and marketing of Areca nut andalso manufactures chocolates.Features of the CAMPCO ChocolateFactoryFollowing are some features of CAMPCOChocolate factory:The Chocolate factory is a Co-operativelyowned organization and maintained byCAMPCO.• The factory is the largest in south-east Asia.• The factory is one of the most modern in the world.• The factory is equipped with the latest
  29. 29. technology and machineries, imported from five firms of 4 European countries.• The factory is equipped with service installed by the best firms in India.• The factory is designed by well experienced and expert architects and consultants.• The factory is situated in an industrially backward rural area in the midst of Cocoa growers.• It generated employment for more than 200 personnels.VISION, MISSION AND QUALITYPOLICY Vision of the Company “CAMPCO is formed to help thefarmers, procuring more and more areca nutand cocoa, then utilizing these materials in abetter way which will help the farmers to getmarket for their products.”
  30. 30. Mission of the CompanyCAMPCO’s mission statement is: “Co-operation between people Harmony between faiths… May the fragrance of peaceprevail forever”“From areca to chocolates, this policy hastaken us a long way. And we are happy toshare this secret with you. At CAMPCO we,symbolize the triumph of the co-operativespirit. And how co-operative can be a sourceof prosperity.”This mission statement maintains that thecompany has a good relation between peopleand harmony between faiths and high set ofvalues and purposes behind its existence.QUALITY POLICIES‘HACCP’ (Hazard Analysis Critical ControlPoint) is a quality policy which is used for
  31. 31. food safety. Food safety is the top concernamong food processors for very goodreasons. It is critical for corporate survivaland success. If there is a significant safetyfailure, excellence in other areas ofcorporate management will be wiped outand the company will loose on=• Regulatory Compliance• Vendor Certification• Supply Chain Performance and Contract Fulfillment• Corporate Value PRODUCT PROFILEThe product of CAMPCO is chocolate. Aproduct is anything that can be offered to amarket for attention, acquisition, use orconsumption that might satisfy a need orwant. The chocolate products are classifiedinto Moulded, Enrobed, Éclairs andDrinking Chocolate.
  32. 32. MOULDED CHOCOLATEMoulding is the casting of liquid chocolateinto moulds (metal or plastic) followed bycooling and demoulding. It includesproducts such as CAMPCO Melto 37gmsand 10gms, CAMPCO Cream 37gms and10gms.ENROBED CHOCOLATEIt is a process of coating a center withchocolate is other confectionery basedmaterial so as t allow the coating to flowover the shape in a controlled manner. Itincludes products such as CAMPCO Turbo,CAMPCO Treat, CAMPCO Megabite,CAMPCO Bar, 4ever(32gm), krust 20gmand 12 gm.ECLAIRS Éclair is a modified toffee containing an
  33. 33. outer shell of caramel with a centre fillingusually chocolate, chocolate creams etc. itconsists of products such as CAMPCOEclairs, Melto Eclairs, Brown Center Eclairsand Playtime.DRINKING CHOCOLATE Drinking chocolate can be prepared byfollowing ingredients sugar, cocoa powder,glucose, vitamin C, lecithin, salt. It includesproduct such as CAMPCO Winner (500gmsand 100gms).THE VARIOUS CHOCOLATES FROMCAMPCO CHOCOLATE FACTORY Net wt/unit M.R.P (in Rupees)Moulded ChocolateMelto 37 gms 10Melto Cream 37 gms 10Campco Bar 45 gms 10EnrobedChocolatesKrust/Kraze 15 gms 5Mega Bite 17 gms 5
  34. 34. Turbo 25 gms 5Treat 25 gms 5Drinking ChocolateWinner 500 gms & 100 gms 65 & 18EclairsPlaytime(small) 4.5 gms 3Campco Eclairs 4.5 gms 0.50Campco Toffee 4.5 gms 0.50Eclairs 2000 5.5 gms 1Supply to NestleLtdMilkybar Eclairs 5.5 gms 1Classic (Brown) 37 gms 10Milkybar (White) 40 gms 14Supply to Amul LtdMilklair 5.5 gms 1Choclair 5.5 gms 1Semi finished goodsCocoa Mars 25 gmsCocoa Butter 25 gmsCocoa Powder 25 gmsChocolate Mars 500 gms* 20=10kgsChoco Paste 20kgsButter Chocolates 500 gms* 20=10kgsAREAS OF OPERATION-GLOBAL/NATIONAL/REGIONAL The area of operation of this co-operative for procurement and processing of
  35. 35. areca nut and cocoa extends to the states ofKarnataka and Kerala, but for the marketingactivities the area has been extended to thewhole country. Areca nut purchaseoperations were extended to Assam,Andaman and Goa but in recent year’spurchase operations in Assam had to beclosed due to disturbances.GLOBAL CAMPCO produces wide range ofcocoa based products of consistent quality,colour and flavor to satisfy the widespectrum of customers all around the globe.The company has built a strong system basefor the confectionery of chocolate industriesin U.S, Australia and Malaysia. Export onthe other hand generated a total of about U.S$14 million over a 5 year period. Among theleading buyers were Malaysia, Korea andUSA.
  36. 36. NATIONAL The company has variousnationalized branch offices through outIndia under them are the distributorsfollowed b the dealers who sell the goods tothe ultimate consumers.National Office throughout IndiaNorth: New DelhiEast: KolkataWest: Navy MumbaiSouth: BangaloreREGIONAL The company has regional officesthrough out Karnataka. It has both dealersand distributors and the distributors arefollowed by dealers and ultimately to thecustomers. Regional offices are as follows –Mangalore, Hyderabad and Delhi.
  37. 37. OWNERSHIP PATTERN The type of ownership of CAMPCOis semi Government. So the workers getretired at the age of 58years. After theretirement the CAMPCO gives gratuity totheir employees but no pension. COMPETITORS INFORMATION CAMPCO has competitors such asCadbury, Nestle, Parrys, Nutrine and Amul.The CAMPCO has been unable to achievethe volume growth targets because it haslosing market share. Cadbury continues todominate the chocolate market with about70% market share and Nestle has emergedas a significant competitor with about 24%share. INFRASCTUCTURAL FACILITIES The CAMPCO chocolate factory is
  38. 38. located at Kemminje village of Puttur Taluk.And it was inaugurated on 1st September1986. There are 247 numbers of employeesworking in the factory. CAMPCO is a twostoried building. The first floor includes theoffice of the CAMPCO and chocolatepacking division. The second floor includesthe deputy general manager chambers,quality control department, personaldepartment and different employee cabins.The company also includes security office atthe entrance, separate A/C units, andseparate vehicle parking place and quartersfor employees including sitting facility,washing facility, toilet facility, dressingrooms, medical benefits etc. CAMPCO hastwo wheelers, four wheelers and lorry astransportation facilities. The surroundings ofchocolate factory is filled with gardens andplanted trees like areca nut, coconut, cocoa,cashew etc. ACHIEVEMENTS/AWARDS
  39. 39. Best Export Award 2004-05 for processing of CAMPCO Chocolate and for processing Areca nut. And it has also achieved success towards adopting fully automated machines for the production process. FUTURE GROWTH AND PROSPECTS CAMPCO has a better scope for expansion of its activities in relation to different units like areca nut, cocoa in order to safeguard and strengthening of CAMPCO function more effectively.• It has a target open at least one sales depot in each state.• It proposes to enter the retail market for areca nut and products like “supari”, “panmasala” etc by established units.• CAMPCO is thinking of starting its own bank called CAMPCO bank, to provide banking services to the company.• The future plan about production is to
  40. 40. maximize output without sacrificing quality, maximum quantity control, reducing the cost, improving the efficiency etc.• They also now introduced a new product like a small products to Amul Ltd, winner, bar, coated bars with different flavors, chocolates.• CAMPCO also planned to increase its sales by advertisements.• Capture international market by latest technologies.• Conducting marketing research for knowing consumer tastes.• Enlargement of transportation and ware housing facilities with safety precautious.• Improved qualify of wrappers of CAMPCO chocolate which are not up to the mark. WORK FLOW MODEL (END TO END) The production process of CAMPCO Chocolate factory is a continuous process
  41. 41. which is divided into1.Cocoa Processing2.Chocolate Processing COCOA PROCESSING The CAMPCO chocolate factory collects only the dry cocoa beans. The wet beans are fermented and dried in the sales depots. There after processing begins:1.Cleaning2.Roasting3.Winnowing4.Alkalization5.Nib ginning(milling)6.Liquor Processing/Hydraulic Processing CHOCOLATE PRODUCTION PROCESSING1.Preparation of ingredients2.Mixing3.Refining the mixture4.Conching5.Tempering
  42. 42. 6.Molding7.Cooling CLASSIFICATION OF CAMPCO CHOCOLATES CAMPCO produces larger amount of chocolate based on 3 classifications:1.Molded Chocolate2.Enrobed Chocolate3.Éclairs COMPANY PROFILE WITH REFERENCE TO THE 7-S McKINSEY’S MODEL. According to Tom Peter and Robert Waterman, organization change is not simply a matter of structure, although structure is a significant variable in the management of change. The successful
  43. 43. execution of a strategy required the right alignment of seven vital inter-connected activities and processes within an organization, namely-1.Structure2.Strategy3.System4.Style5.Staff6.Skills7.Shared Values
  44. 44. STRUCTUREThe structure is the skeleton of the wholeorganization. It describes the formalrelationship among various positions andactivities. It provides information about whoreports to whom and how tasks are bothdivided and integrated. And also CAMPCOfollows functional organizational structure.ORGANIZATION AND MANAGEMENTThe management of CAMPCO vests in theboards of directors consisting of 17directors. These directors are elected ornominated as per the provisions of Bye laws.The managing director is appointed by theGovernment of Kerala. The day todayactivities are conducted by the managingdirectors. The Executive committee andBusiness committee will devote more timeto scrutinize and decide about the financialand business transaction of the factory.
  45. 45. There is one or two legal advisors as well as one of the directors is the nominee of IDBI to facilitate and make the management more effective. Two committees have been constituted. They are as follows; The Executive Committee a)President. b)Vice President c)Managing directors d)Two directors from each state. Business Committeea)Presidentb)Vice Presidentc)Managing directorsd)Two directors from each state (Karnataka and Kerala)e)Two senior most officer for ARECA marketing.
  46. 46. f)The Head of CAMPCO Chocolate factory, Puttur. Membership of CAMPCO There are five different types of shares; class A, B, C, D and E issued to different class of people. ‘A’ class is open to agricultural produce market. ‘B’ class is open to agriculture produce market committee of Areca and Cocoa growing areas, co-operative marketing and consumer federation, any other multi-state co-operative society or any corporation owned or controlled by the Government. ‘C’ class is open for individual growers of Areca nut and Cocoa in both the states. ‘D’ class is open for state Government and
  47. 47. Central government and NDC.‘E’ class is merchants and agents who havebusiness in connection with CAMPCO.Functional Departments There are several functionaldepartments in CAMPCO chocolate factory,which are handling various operations.They area)Production Departmentb)Administrative Departmentc)Quality control Departmentd)Stores Departmente)Marketing Departmentf) Maintenance Departmentg)Accounts Departmenth)Security DepartmentProduction Department The production department is headed
  48. 48. by production manager. Under him/her there are supervisors to look after the production activities. The production activities are in three shifts by rotation. The packing supervisors also come under the production department. The supervisors supervise the work of packing department and personnel work under piece rate system. The main function of this department is to achieve targeted production objectives. They are:• To follow up daily production schedules as per the plan.• To upgrade the technical efficiency of production.• To maintain relationship with other department. In production department, the Chief Manager plans the different production as per the market requirements. The future plans of this department are to maximize the
  49. 49. output without sacrificing quality, reducingcost and improving quality.Administrative and PersonnelDepartmentAdministrative Department. The administrative department looksafter the day-to-day administration activitiesof the factory. at the top level there is anadministrative manager. Normally theGeneral Manager carries over day-to-dayadministrative activities in the factory. He is also assisted by the variousdepartments in the factory. The GeneralManager is accountable to the head officethat is in Mangalore.Personnel Department Personnel management deals withthe human aspects in an organization
  50. 50. undoubtedly; people are most completefactor in an enterprise or organization. Mainobjective of this department is to maintainthe quality standards, work level andsatisfactory level of production and also todevelop the procedure to help to select theright person for right job. Personneldepartment of CAMPCO looks after the dayto day administrative activities of thefactory. At the top level there is anadministrative manager normally the generalmanager carries out day to day activities ofthe factory. In Personnel department,recruitment forms the first stage in theprocess, which continues with the selectionand ceases with the placement of candidate.Management should recruit right kind ofpeople at tight time for right place. Thevacancy posts are advertised in 3 leadingnewspapers of Kannada, Malayalam andEnglish as per the service rules ofCAMPCO. The selection of employee is
  51. 51. done through competitive examination andinterview. Written test is conducted by theoutside agencies. The interview andselection of candidate is done bymanagement. The candidate recruited to the particularpost may be placed under training for aprescribed period or such extended period. Ifit is found necessary the pay shall be fixedby the M.D from time to time. If the traineediscontinues the training, he/she shall beliable to reimburse the entire cost of trainingas assessed by the M.D.Quality Control Department The quality control department isheaded y the quality control manager. Underhim/her there are three supervisors. In thisdepartment there is 1 microbiologist. Thereare few technical assistants to help themicrobiologist in his work. They check thequality of raw materials and also the quality
  52. 52. of the products after production. If the firm ahs made any dilution on its quality, then it will definitely affect its sales and profitability. That is why this department serves as one of the important department. In this firm this department has to maintain the quality of the cocoa beans used for production upon which quality of chocolates depends. Different types of quality control techniques used in the chocolate plant;• Micro-biological quality control• Raw and packing material analysis• Process control• Finished product analysis• Bacteriology testing products for harmful pathogens• Shelf-life studying• Pest control Stores Department
  53. 53. The stores department is headed by store manager. Under him/her there are supervisors. The main function of the stores department is divided into 3 units. These three functions are; receiving the raw materials for manufacture of chocolates and also packing materials and sending it into go down. The stores managers are responsible to provide the raw materials to required department and store the finished goods in the store. The store’s activities are carried out in shifts by rotation. There are four documents maintained by the stores department. They are;Material inward registersDaily stocks reportMaterial register noteReturn note book Marketing Department The marketing department is mainly classified into an areca nut division and
  54. 54. chocolate division. Each division is headed by Assistant General Manager. Under him there are Chief Manager, senior manager and regional officers. Assistant General Manager controls all the activities relating to the marketing department. He plans and prepares new marketing policies and it can be properly implemented. The main objective of marketing department is to fulfill the customer satisfaction and increase company’s sales and to contribute quality products in the market. The main functions of this department are:To plan marketing programTo analyze the marketing opportunityTo develop marketing strategyTo connect the consumer with the product Sales In CAMPCO sales are being conducted in two ways. That is through
  55. 55. depots and sales representatives. It hasdifferent depots though out India. Thedepots are being opened to cater to the needsof whole sellers and retailers. A collectioncharges being collected in the concerneddepots. CAMPCO has introduced theservices of sales representatives throughoutIndia. The rates and quality offered for salesare being decided by the CAMPCO and ongetting information from its customers, theirrepresentatives place written orders.The sales of Cocoa products are being madeat CCF/Area sales office level through thedistributors/ super stockiest on cash or creditbasis. The Executive Director ofmarketing/Regional managers required tosupervise and excersise control over CCF,Area sales office.Channel of DistributionOf the four elements of marketing mix thatis product, price, promotion and distribution.
  56. 56. The channel of distribution plays a vital roleespecially in the distribution of consumergoods. CAMPCO generally follows anduses indirect channels of distribution.CAMPCO supplies goods to super stockiestand in turn supplies to whole salers andwhole sellers to retailers. CAMPCO offers21 days credit facilities to whole seller andfor delayed payment they charge 21% ofinterest.Services The product manufactured inCAMPCO (CCF) are marketed and soldthrough out the country and it is exported tosome countries. The proper service that isthe company provides service to itscustomer in the form of prompt delivery ofgoods should be given by paying attention tothe customer complaints and services. Theimproving quality of customer education
  57. 57. and training and services is the main criteria of CAMPCO that include ability to provide replacement parts and repairs services. Maintenance Department The maintenance department is headed by maintenance manager. Under him/her there are maintenance assistants and engineers. They check the machines and are responsible for their working and maintenance. There are two types of maintenance.1. Breakdown maintenance.2. Preventive maintenance. Breakdown Maintenance This refers to the supervision of machineries only after it breaks down and makes it fit for future use.
  58. 58. Preventive Maintenance Preventive maintenance refers to take care of machinery before breakdown. Under this system the machines are frequently checked and repaired. Account Department/Financial Department The CAMPCO chocolate factory has maintained an accounts department. The chief accountant is in charge of this department. Under him are the senior office assistants and junior office assistants working in the department. A report has to be sent to the head office about the day-to- day work and expenses incurred. The functions of account department are:• Handling day-to-day accounts of the factory• Providing salaries to the staff• Maintaining accurate financial records• Giving information to the head office
  59. 59. • Payment of bills and keeping account Security Department Security department is also important for each and every organization. Security departments has 10 acres of land and Rs.125 crores worth of assets including buildings, land and machines and others. It provides 3 acres of land as quarters to the employees. This factory covered with fencing barbered wire leaving one main exit called gate. The main gate is controlled by security person called senior security officer. He should be a graduate and he should have at east 15 years of service in defense. The duties and responsibilities of security department are:• Checking of incoming and outgoing personnel, vehicles, items etc• Maintenance of discipline inside the factory• Prevention and detection of theft etc.• Security• Other duties are empowered by managing
  60. 60. director of CAMPCO. SKILLS The Mckinsey’s 7-S frameworkconsiders skill as one of the importantattributes or capabilities of an organization.The term skill includes those characteristicswhich most people use to describe acompany CAMPCO chocolate factory includesskilled staff and workers in its operationsand productions who are expert in their ownfield. Administrative officer have codeknowledge and skill in their particular field,it is preferable to have master degree in theirwork. Machine operators of differentdepartment have wide knowledge and skillabout operations and handling of machines,chocolate manufacturing process etc. if theselection of skilled worker is done properlythen it will result on effective operation ofthe manufacturing process, administration
  61. 61. etc. CAMPCO also follows technical skills,innovative skills, communication skills. In CAMPCO all new recruits(both technical and managerial) are provided“on the job-training method”. Under thistraining method, the individual is placed ona regular job. It has the advantage of givingfirst hand knowledge and experience underthe working condition. STYLE Organizations differ from each otherin their styles of working. The styles of anorganization is evident through the patternof action taken by the top management overa period of time. But, the Mckinsey’sframework considers styles as somethingmore than the style of top management. CAMPCO follows participative styleof management. Participative style ofCAMPCO helps in the processing andmarketing of chocolates also. Each and
  62. 62. every departments take decisions together which help the company to take the steps in their daily transaction or operations. STRATEGY Strategy is the set of decision and action plans aimed at gaining a sustainable competitive advantage. Today most of the enterprises are engaged in strategic planning. The degree of the sophistication and the formative vary considerably from organization to organization. In the case of CAMPCO chocolate factory, the strategy is to produce and sell standard and good quality chocolates with well guided procedure and good quality of raw materials from different supplying company with a quality check to delivery the products to the customer. Strategy includes objectives, goals, purpose and policies, action plans and tactics. The objectives are:• To procure areca nut and cocoa of the
  63. 63. members and if necessary from other growers.• To undertake processing of areca nut and cocoa and to establish industries for the manufacturing of finished and semi finished products from areca nut and cocoa.• To open branches and depots, godowns and factories.• To arrange for procurement, manufacture and distribution of pesticides, fertilizers etc.• To undertake pooling, packing and standardization of Areca nut and cocoa. Pricing Policy CAMPCO adopted the policy of full cost pricing. But sometimes they marketed the products at price lower than that of cost price and its prices are normally lower than competitors. CAMPCO has adopted on pricing policy where by the company specifies the prices to be charged to each dealer in the price list published by the
  64. 64. company. There is no geographical changein prices.Discount Policy It has varying discount share, whichincludes trade discounts, cash discounts,special discounts etc. In some cases discountrate varies from dealer to dealer dependingon sales turnover and in some cases thediscount varies depending upon size ofpurchase.Collection ProcedureThe dealer provides security such as bankguarantee. The payment must be madewithin 15-40 days depending upon salesturnovers. SystemsSystems in the 7-s framework refer to all the
  65. 65. rules, regulations, methods and procedures(both formal and informal) that complementthe organizational structure. CAMPCO is fully mechanized plant.The function of production control inproducts of the productions parts, productsof required quality and quantity at therequired time and also provides feedback tothe production department and allocates oruses the resources available to achieve theobjectives. The production planning isvalued on the factors of designing ofproducts that determines the equipment,capacity etc. In Campco chocolate factory varioussystems have been installed in eachfunctional areas so as to enhance the level ofinteraction and coordination thereby, inorder to improve the overall organizationaleffectiveness. Some of these systemsinclude:-Computer System
  66. 66. In Campco, each and every departmentis linked with intercom facility, which helpsto share each other opinion about company’sdaily transactions. Office and eachdepartment is equipped with computersystem.Quality Control SystemIn Campco, production is carried quicklyaccording to quality standards. The qualityof product manufactured is of internationalstandards. The function is to check thequality of raw materials and also the qualityof products after production.Performance Appraisal System In Campco the performance appraisalwork is done in a special way. At the end ofthe year a report known as ‘Confidentialreport’ is prepared by each and every
  67. 67. departmental head. This report contains eachand every information relating to a particularworker working in a particular department.This report is then submitted to the higherauthority for evaluation. STAFFStaffing is referred as human resource of anorganization where they contribute to thefullest extent to achieve the organizationalgoal within a stipulated period. Staffingrepresents the development of employees interms of selections, placement, training,promotion and performance etc. it includeprocesses to develop in them the abilitiesand skills that they need to be effective andefficient. In CAMPCO strength of the staff is 237permanent and 130 contract basedemployees who are headed by DeputyGeneral Manager and under him there are 6assistant managers for each department.
  68. 68. Each and every staff is well educated andtrained in their particular area of workassigned to them.Staff is classified in to 4 levels. they arestrategic level, Management level, Operatinglevel and Technical level. The duties andresponsibilities of staff in CAMPCOchocolate factory are shown in the table.Labour Welfare MeasuresCAMPCO provides good facilities to itsemployees such as bonus, dearnessallowance, provident fund, gratuity, yearlyincrement, edical allowance and welfaremeasures etcBonus In CAMPCO 8.33% per annumbonus is paid to the employee every year.The maximum limit was Rs. 2500. If thebasic salary plus dearness allowance is morethan Rs. 3500, they do not come under
  69. 69. bonus act. Dearness Allowance CAMPCO gives 43% dearness allowance twice in a year, 1st January every year and again 1st July every year. It comes under Karnataka Government, schedules. Provident Fund In CAMPCO chocolate factory provident fund is contributed as follows: 12% of (Basic salary + dearness allowance) is employee’s contribution and equivalent amount is contributed by management also. Duties and Responsibilities of staff.VARIOUS STAF DUTIES &LEVELS F RESPONSIBILITIESStrategic level 2 To pass the orders and oversee and review the functioning of
  70. 70. all the departments.Management level 20 To control the activities of the Organization.Operating level 155 To carry out day to day operating activities of the companyTechnical level 60 To engage in production and other technical maintenance activitiesTOTAL 237 Yearly Increment CAMPCO provides yearly increment to their employee depending on the pay scale. Minimum amount of increment is Rs. 10 and the maximum is Rs. 150. Promotions There is no hard and fast rule in promotions. Employee promotions are given once in 8 years. The promotion was made according to the seniority cum merit basis. Medical allowances
  71. 71. CAMPCO also gives Rs. 2000 perannum as medical allowance. These medicalallowances are given in 2 installments oncein march and other in September.RetirementType of ownership of CAMPCO is semi-Government. So the workers get retired atthe age of 58 years. After the retirement theCAMPCO gives gratuity to their employeesbut no pension. In order to have eligibilityfor gratuity benefit the employees ofCAMPCO has to complete 5 years ofservice. In each year he/she should haveperfect attendance. The person who retiresor resigns is eligible to get gratuity at therate of 15 days salary multiplied by numberof years of service.Insurance Coverage All the vehicles belonging to
  72. 72. CAMPCO in all the branches, all the buildings and go downs have been brought under suitable insurance coverage, as could be seen from the records of CAMPCO. And the fixed assets registered are maintained up to date. Welfare Measures in CAMPCO The following are some of the welfare measures providing to the workers of CAMPCO. These measures are classified as statutory measures and non-statutory measures. Statutory Measures• Canteen facilities.• Cold water facilities.• Rent free accommodations.• Medical benefits. Non-Statutory Measures
  73. 73. • Uniforms.• Safety shoes, rain coats are provided.• The employees state insurance facilities. Leave to the Employees In CAMPCO temporary worker gets 3 days casual leave per year and permanent employees get 15 days per years. The company provides 20 days half leave to their employee and 20days privilege to its workers. The CAMPCO chocolate factory provides 10 days of holiday including the Government holiday and also it provides every Sunday as the weekly holiday to its permanent employees. Duration of Work In the CAMPCO chocolate factory, there are four shifts including the general shifts. The normal hours of work are 8 hours. The
  74. 74. timings of 4 shifts are as follows. Shift Timings1. Shift - 6 am to 2 pm.2. Shift - 2 pm to 10 pm3. Shift - 10 pm to 6 am General shift – 9 am to 5.30 pm Shared Values Shared values refer to set of beliefs, views, opinions value and aspiration of the employees that goes beyond the formal statement of corporate objectives. In CAMPCO all employees share the same guiding values and responsibilities for particular task, provided to them. Chief Executive gives responsibility for each department about the task. It also maintains quality consciousness.
  75. 75. SWOT ANALYSISSWOT ANALYSIS The diagnosis of the firm’s strength andweakness can be fruitful only if theenvironmental factors and market conditionsare considered keeping in mind the internalcapabilities of the company. This approachessentially involves matching the internalcapabilities with the environmentalopportunities and threats. STRENGTH1. Large Product Mix. One of the strength of the CAMPCO
  76. 76. limited is large product mix. The CAMPCOproduces the different type of chocolatesthat is Melto, Cream, Turbo, Treat,Megabite, Campco bar, 4 ever, Krust, Éclair2000 etc.2. Largest chocolate Factory in South EastAsia. CAMPCO is the largest factory in southAsia. This statement can be used to attractmore clients.3. Highly Committed Employees. WEAKNESS1. Lack of Promotional Activities. The CAMPCO chocolate factory isnot promoting its products in an effectiveway through media advertising. Poormarketing effort to push the product in themarket.
  77. 77. 2. Suffering from huge loss. The CAMPCO chocolate factory hasmade huge loss for the past several years.3. Inefficient Utilization of the Capacity. The actual capacity of the CAMPCOchocolate factory is 8800 metric tonnes. Butthe factory has not been able to make use ofthe full capacity.4. Inefficient Product Quality. The chocolate products are to beplaced in a required minimum temperature.If it is not preserved in a requiredtemperature the quality of the product willbe effected. OPPORTUNITIES1. There is a large market for chocolatewhich is untapped in India.
  78. 78. 2. Expanding the existing product mix canlead to increase in market share3. Greater product awareness can be broughtabout within all age group showingchocolates as the best gift to friends andrelatives.4. Popularity can be gained through thesocial service in the backward areas of southIndia. THREATS1. There is a severe competition frommultinational companies such as Cadburyand Nestle.2. Frequent changes in Government rulesand regulations and tax policies.3. Competition from local players such as
  79. 79. Amul.EFFECTIVENESS OF TRAININGINTRODUCTIONEvery organization needs to have welltrained and experienced people to performthe activities that have to be done. If thecurrent or potential job occupant can meetthis requirement, training is not important,but when this is not the case, it is necessaryto raise the skill levels and increase theversatility and adaptability of employees.Inadequate job performance or a decline inproductivity or changes resulting out of jobredesign or a technological break throughrequire some type of training anddevelopment efforts. As the jobs becomemore complex, the importance of employeedevelopment also increases. In a rapidly
  80. 80. changing society, employee training anddevelopment are not only an activity that isdesirable but also an activity that anorganization must commit resources to if itis to maintain a viable and knowledgeablework force.“Training”, “education” and “development”are three terms frequently used. On the faceof it, there might not appear any differencesbetween them, but when a deep thought isgiven, there appear some differencesbetween them. In all “training” there is some“education” and in all “education” there issome “training”. Moreover, the twoprocesses cannot be separated fromdevelopment. Precise definitions are notpossible and can be misleading, but differentpersons have used these activities indifferent ways.DEFINITION
  81. 81. After the selection of the employee, the nextstep is his training. Even old employeesrequire some training at various points intheir career. The general objectives oftraining and development are to assist theemployee to expand and use moreeffectively his skill, talents and knowledgeand to assist him in finding his true potentialand in preparing him for greater and higherresponsibilities.“Organized procedure by which peoplelearns knowledge and skill for definitepurpose”- Dale S Beach – 1985.“The act of increasing the skills of anemployee for doing a particular job” –Edwin B. Fillip, 1984.In the words of Planty and Efferson, trainingis “The continuous, systematic developmentamong all levels of employee of thatknowledge and those skills and attitudes
  82. 82. which contribute to their welfare and that ofthe company.”Training is defined by Lawrence LSteinmetz as a short term process utilizing asystematic and organized procedure bywhich non managerial personnel learntechnical knowledge and skills for a definitepurpose.From an analytical study of the abovedefinitions we may conclude that:Training is a purposeful process. It isconcerned with imparting and developingspecific skills for a particular purpose. Thus,training is any process by which theaptitudes, skills and abilities of employee toperform specific jobs are increased.Features of TrainingIt is clear from the above definitions that
  83. 83. training is a part of the process of staffing and has the following features.• The basic purpose of training is to guide and direct the learning of employees so that theymay perform their jobs more efficiently.• Training helps the employe to increase his/her knowledge of facts, policies, procedures and rules and regulations pertaining to his/her job.• Training is to assist the employee in finding his true potential and in preparing him for greater and higher responsibilities.• Training attempts to increase the skills of an employee for doing a specific job more efficiently. It involves the development of one or a few specific technical skills.• Training attempts to mould the attitude of an employee towards other co-workers, supervisors and organization and create in him a sense of responsibility and interest in his job.
  84. 84. • Train is given to operative (that is non- managerial personnel) for performing specific jobs. Hence, training is job-oriented.• Training is a short-term process. Training courses are designed for short term.• Training must be a continuous process.• To be effective and accomplish the desired results efficiently, training must be planned systematically.• Training must be aimed at all employees of the firm. It is necessary for the newly appointed employees to learn the job. It is equally necessary for the existing employees whenever new method, technique, or machines etc are introduced. Objectives of Training • To prepare employee for meeting current job requirement including anticipated changes. • To prepare employees to shoulder higher
  85. 85. levels of responsibilities. • To ensure smooth and efficient working with the organization. • To ensure smooth and efficient working with the organization. • To improve productivity with quality. • To promote sense of ownership positive attitude and commitment amongst the employees. Types of Training There are many ways to train people. But mainly training methods are of two types:1.On the job training.2.Off the job training. On the job training methods. This is the most common method of training. On the job training relies on current employees to train new recruits, results
  86. 86. depending on the trainer’s skill in training. The trainee is placed on the job and the manager or the mentor shows how to do the job. To be successful the training should be done according to structured program that uses task list, job breakdown and performance standards as a lesson plan. It is highly practical and reality based. It also helps the employee establish important relationship with his/her supervisors/mentors.a) On specific job 1) Experience: This is one of the oldest methods of on-the-job training. This method which involves learning by experience has proved to be very efficient. To make this approach effective, it should be supplemented with other methods of training. 2) Coaching: This involves coaching by a superior by personal instruction and guidance to a manager trainee. This method
  87. 87. increases motivation in the trainee. But this method is effective only if the superior is properly trained and oriented. Further the superior may not have enough time to coach the trainee and he may also neglect his job. 3) Understudy Program: In this method, an individual works as an “assistant to” to the senior manager so that, eventually the deputy can assume full responsibilities and duties of the job held b the senior manager. In this method, the trainee learns be experience and observation. The main advantage of this method is that training is conducted in practical and realistic situations.b) Apprenticeship Training: This method of training is meant to give the trainee sufficient knowledge and skill in those trades and crafts in which a long period of training is required for gaining complete proficiency. Generally the trainees work as apprentices under the direct
  88. 88. supervision of experts for a long periods, say 2-7 years. This program consists of providing actual work experience in the actual job as well as imparting theoretical knowledge through classroom lectures.c) Job Rotation: This method involves transferring a trainee from one job to another on a systematic basis. If a trainee is rotated systematically from one job to another, the general background of the trainee is broadened. This method provides training in actual situation and exposes them to other worker’s problems and view points. One main disadvantage of this method is that production may suffer. d) Special Projects: In this method, the trainee may be asked to perform a special assignment so that he would be in a position to acquire knowledge and also to learn the work procedure.
  89. 89. Sometimes, the management may create atask force consisting of trainees representingdifferent functions in the organization whichhelps the trainees in acquiring knowledgeabout the special assignment.e) Committees and Junior BoardsCommittees and junior boards which arealso called “multiple management” areimportant methods of training. The traineeby becoming a member of the committeegets an opportunity to interact with theexperienced managers and to know theproblems of the organization and the viewpoints of different managers to solve theproblems. All the decisions and suggestionsmade by the junior boards are placed beforethe meetings of the board of directors of thecompany before taking final decisions.f) Vestibule Training:The training in vestibule school is
  90. 90. preliminary to actual shop experience. Vestibule training is an attempt to duplicate as nearly as possible the actual working conditions of the work place. The trainees can concentrate on training only, because they are not under any pressure of the work situation. Further, regular Off the job training methods Off the job training is most commonly called classroom training. It is a traditional way of education. Off the job training takes place either inside the organization or at some external selected sites, may be institutes, universities or professional associations which have no connection with the company. Off the job training includes the lecturers, the conferences, group discussions, seminars etc.a) Special courses and lectures: Some organizations like Tatas and
  91. 91. Hindustan Lever, State Bank of India, LIC etc have their own development departments which provide special courses and lectures for their employees. These organizations also arrange some courses or lectures by the staff of some universities and institutes. Sometimes, the business concerns may send their employees to attend course of 1-2 week duration conducted by the institutes of management.b) Conferences: In this method, managers and potential managers attend the conference programmes in which they pool their ideas and experiences with certain problems which are a common subject of discussion. For example, the conference may discuss specific problems such as planning, delegation etc.c) Case Studies: The case study method which was
  92. 92. popularized by the Harvard Business School, USA, is one of the common forms of training to the emoplyees. In this method, instruction describes the actual situation or problems of a specific concern and the participants are encouraged to take part in the objective discussion of the problem. This method increases the trainee’s power of observation and also his analytical ability.d) Simulation: In simulation, the real situation of work environment in an organization is presented in the training session. In other words, in simulation, instead of taking participants into the field, the field is simulated in the training session itself. Role Playing is one of the common simulation methods of training. In role playing the participants play his role or those of others under specific conditions of simulation. Role playing enables the participants to increase his skills in dealing
  93. 93. with other people. In role playing, the participants play different roles for different situations and by this, they are enabled to deal with several problems from various angles.e) Sensitivity Training: This method aims to influence an individual’s behavior through group discussion. In group discussion, the trainees freely express their ideas, beliefs and attitudes. In sensitivity training, the trainees are enabled to see themselves as others see them and develop and understand other’s views and behavior. Further the participants are trained to become patient listeners and resolve conflicts, if any. In addition, the trainees by interaction in a group become sensitive to one another’s feelings and also develop increased tolerance for individual differences.f) Incident method:
  94. 94. In the usual case method, the entire problemis presented to the students, whereas in theincident method, only a brief incident ispresented to provoke discussions in theclass. The group then puts questions to theinstructor to draw out of him the salient factsand additional information needed to arriveat a reasonable solution of the case. Thismethod draws the participants intodiscussion with greater emotionalinvolvement.Need and Importance of TrainingTraining imparts skills and knowledge toemployees in order to make them able tocope up with the pressure of changingenvironment. Training is no longer a matterof choice to an organization. The choice isonly in the methods of training. The needs,importance and benefits of training are asfollows:
  95. 95. Increase EfficiencyTraining enables the individual to developskills and methods of doing a job in a betterway. This is more important in the case ofchanging technology.Uses Untapped PotentialsTraining enables the individual to translatehis untapped potential into actualperformance.Increases MoraleTraining increases the morale of employeesby relating their skills with their jobrequirements. It builds employee’sconfidence in the company, developsloyalty, raises morale and increasesteamwork.Broadens Knowledge
  96. 96. It broadens the knowledge of the employeesin all phases of the company’s operations.Improves Human RelationsTraining increases the quality of humanrelations in an organization. It helps to solvemany problems of social and psychologicalnature.Saves Supervision CostTrained employees require les supervision.With reduced supervision, a manager canincrease the number of his subordinates.This can save cost of supervision.Prepares for Greater ResponsibilityIt prepares the employees for lateral transfer,upgrading and promotion within theorganization.
  97. 97. Organizational Asset Trained people are necessary for the survival of the organization and to maintain effectiveness and to make short term adjustment with the existing personnel. There is no greater organizational asset than trained and motivated personnel.• Reduces labour turnover.• Training results in higher productivity.• More pay, recognition and other benefits to the employees.• Trained personnel get job satisfaction.• Therefore, the chances of leaving the job are less. Thus, training reduces labour turnover.• Training increases the quality of work.• Quantity of output by improving skills and productivity of the employees. Short Learning Time
  98. 98. Effective training helps the employees toacquire the skills and knowledge to do a jobwithin a short span of time.Encourages StandardizationTraining encourages standardization byteaching the best methods of performing thework to all employees. This will improve thelevels of performance.Cuts Costs and WagesTraining creates cost consciousness. Itteaches the methods of economical use ofmaterials and equipments, minimization ofcost and wastages.Creates ConfidenceTraining creates a comfortable feeling ofconfidence in the minds of workers. Itdevelops adaptability among workers. It
  99. 99. encourages them to accept challenges andrisks.Growth of the IndividualTraining develops skills, knowledge andattitudes of the employee in all respects.Provides Scope for PromotionTraining provides qualities essential forpromotion and upgrading of the employee.Better RewardsTraining increases efficiency andproductivity. It facilitates higher rewardsand benefits to the workers. Role of TrainingNo organization has a choice of whether totrain its employees or not, the only choice is
  100. 100. that of methods. The primary concern of anorganization is its validity and hence itsefficiency. There is continuousenvironmental pressure for efficiency and ifthe organization does not respond to thepressure, it may find itself rapidly loosingwhatever share of market it has. Trainingimparts skills and knowledge to employeesin order that they contribute to pressures ofchanging environment. The viability of anorganization depends to considerable extenton the skill of different employees;especially that of managerial cadre, to relatethe organization with its environment. There are three factors which necessitatecontinuous training in an organization.These factors are technological advances,organizational complexity and humanrelations. Training can play the followingrole in the organization.Increase in Efficiency
  101. 101. Training plays an active role in increasingefficiency of employees in an organization.Training increases skills for doing a job in abetter way. Though an employee can learnmany things while he is put on a job, he cando much better if he learns how to do thejob. This becomes more important especiallyin the context of changing technologybecause the old method of working may notbe relevant. In such a case, training isrequired even to maintain minimum level ofoutput. For example, working on automaticmachine requires skills different from thatrequired to handle manually operatedmachines. Similar changes are taking placein managerial jobs too.Increase in Morale of Employees Training increases morale ofemployees. Morale is a mental condition ofan individual or group, which determines thewillingness to cooperate. High morale is
  102. 102. evidenced by employee enthusiasm,voluntary conformation with regulations andwillingness to co-operate with others toachieve organizational objectives. Trainingincreases employee morale by relating theirskills with their job requirements.Possession of necessary skills to perform ajob well often tends to meet such humanneeds as security and ego satisfaction.Trained employees can see the jobs in waysthat are more meaningful because they areable to relate their skills with jobs.Better Human RelationsTraining attempts to increase the quality ofhuman relations in an organization. Growingcomplexity of organizations had led tovarious human problems like alienation,inter-personal and inter-group problems.Suitable human relations training canovercome many of these problems. Manytechniques have been developed through
  103. 103. which people can be trained and developedto tackle many problems of social andpsychological nature.Reduced SupervisionTrained employees require less supervision.They require more autonomy and freedom.Such autonomy and freedom can be given ifthe employees are trained properly to handletheir jobs without the help of supervision.With reduced supervision, a manager canincrease his span of management. This mayresult into lesser number of intermediatelevels in the organization, which can savemuch cost to the organization.Increased Organization Viability andFlexibilityTrained people are necessary to maintainorganizational viability and flexibility.Viability relates to survival of the
  104. 104. organization during bad days, and flexibilityrelates to sustain its effectiveness despite theloss of its key personnel and making short-term adjustment with the existing personnel.Such adjustment is possible if theorganization has trained people who canoccupy the positions vacated by keypersonnel. The organization, which does notprepare a second line of personnel who canultimately take the charge of key personnel,may not be quite successful in the absenceof such key personnel for whatever thereason. In fact, there is no greaterorganizational asset than trained andmotivated personnel, because these peoplecan turn the other asset into productivewhole. Limitations of TrainingEffectiveness of training program dependsupon the interest of the trainees, thequalifications of the trainers, the
  105. 105. environment in which employees operate etc. Irrespective of this, training has the following limitations.• It cannot solve problems of faulty organization. A poor organization structure will create blocks to learning and tend to prevent the translation of acquired knowledge on skills into improved performance.• It cannot be a substitute for sound initial selection and careful placement of employees.• It cannot increase learning potential. Training may stimulate further use of inborn capacities but it cannot create potentials.• It cannot unerringly ensured increased performance or greater efficiency. They are not automatic and are controlled by factors outside the scope of the training function.• It cannot overcome the fact that forgetting is easier and quicker than learning. It cannot ensure continued use of newly acquired
  106. 106. knowledge, skills or attitudes to overcome forgetting.• It cannot guarantee anyone learning anything. Training can only provide the means for learning to take place. If the trainee does not want to learn, the chances are that he will not learn. Training Process Each training program is a costly affair and a time consuming process. Therefore, training effectiveness is of paramount importance and therefore should proceed through a sequential process of step as shown below. Step 1: Organization Objective. Training program should support the continuous development of employee with the organization objective in order to address key competencies requirements of
  107. 107. the business.Step 2: Training Needs IdentificationIt is important to determine what training isneeded and to make certain that the trainingis based on reliable and identified trainingrequirements. It is an inquiry about the tasksand skills need to accomplish a function orjob and to identify who are the learners.Step 3: Determination of the trainingstrategy.To determine the strategy to be used in aaccomplishing the training, gathering dataon which to base training objectives, thederiving force behind the design approach totraining objectives etc.Step 4: Preparing the Learners and WorkEnvironment.
  108. 108. It is necessary that work environment isenabling, receptive and supportive so thatthe learners is able to apply the knowledgeand skills learnt from training to actual workplace.Step 5: Determination of training methodsand materials.To determine training methods, tools andtiming appropriate for skills to be learnedand participating learners. While preparingtraining manuals, the principles of learningcycle must be kept in mind that is planning,doing, reviewing and reflecting.Step 6: Conducting training programTo conduct the actual training and monitorthe progress.Step 7: Evaluation and Feed back
  109. 109. To gather feedback for updating or revisingthe training program is crucial to theeffectiveness of the training program. This istypically the most neglected phase of thetraining program as the trainee and thetrainers breathe a sign of relief as thetraining ends. However if this step iscorrectly attended then better trainingprograms can be designed.Age No of Percentage RespondentsBelow-20 05 1020-30 20 4030-40 15 3040-50 05 10Above-50 05 10Total 50 100
  110. 110. 40 40 35 30 30 25 20 % of Respondent 15 10 10 10 10 5 0 Below 20yrs 20-30yrs 30-40yrs 40-50yrs above 50yrsTable No-2Sex No of Percentage RespondentsMale 42 84Female 08 16Total 50 100le No-3Qualification No of Percentage RespondentsSSLC 08 16PUC 06 12
  111. 111. Graduation 20 40Technicians 16 32Total 50 100The majority (40%) of the respondents aregraduates. Department to which the Respondents belong.Table No-4Department No of Percentage RespondentsAdministration 15 30Production 30 60Material 05 10divisionTotal 50 100Work ExperienceTable No-5
  112. 112. Experience No of Percentage Respondents0-05 years 15 3006-15 years 30 6016-20 years 03 0621 & above 02 04Total 50 100ority of the respondents (60%) had 06-15years of service. This indicates that theemployee Opinion about TrainingTable No-6Opinion No of Percentage Respondentsa) It heightens 11 22employeemoraleb) It helps in 09 18reducingdissatisfaction
  113. 113. c) Increases job 20 40knowledged) Helps in 06 12prevention ofaccidentse) Helps in 04 08personal growthTotal 50 100dents and 8% of the respondents said thatthe training helps in personal growth. How the Objectives of the Training Program were conveyed to the Trainee.Table No-7Methodology No of Percentage Respondentsa) Slide Show 09 18b) Displayed on 22 44the notice boardc) Instruction 15 30sheetsd) Intranet 04 08
  114. 114. Total 50 100Table No-8Trainer No of Percentage RespondentsTop 00 0managementHR manager 05 10Superior 35 70Department 10 20headTotal 50 100ned by the department head and 10% of therespondents were trained by the HRmanager. However the table shows thatnobody was trained by the Topmanagement. How the Respondents were selected for the Training program:Table No-9
  115. 115. Selection No of PercentageProcedure RespondentsOn a random 04 08basisRecommended 07 14by the HODSelected by 30 60HRD/PersonneldepartmentDon’t know 09 18Total 50 100the 60% of the respondents were the peoplewho had no previous job experience beforejoining Campco. Scope of the Training programTable No-10Skills No of Percentage RespondentsTechnical 35 70skills
  116. 116. Conceptual 2 04skillsInterpersonal 13 26skillsHR skills 00 0Total 50 100le No-11Frequency No of Percentage RespondentsOnce till now 40 80Once in 6 00 00monthsOnce in a year 10 20Not conducted 00 00At allTotal 50 100le No-12Opinion No of PercentageRegarding RespondentsDuration7 days 15 30
  117. 117. 15days 09 181month 16 323 months and 00 00AboveDepending on 10 20needTotal 50 100Language No of Percentage RespondentsKannada 37 74English 06 12Hindi 07 14Total 50 100r training in Hindi and 12% had theirtraining in English. Expectation from the training programTable No-14Expectations No of Percentage Respondents
  118. 118. Putting the 03 06learner to easeTo get closer 11 22to the job positionGiving the 36 72ExactknowledgeTotal 50 100respondentsTable No-15Qualities No of Percentage RespondentsExperienced 02 04trainers werecalledConducive 18 36atmosphereGood training 21 42materials wereprovidedProper schedules 09 18were maintainedTotal 50 100
  119. 119. Table No-16Methods No of Percentage RespondentsOn the Job 48 96Off the Job 02 04Total 50 100 Safety measures included in the training programTable No-17Safety No of Percentagemeasures RespondentsFirst-aid 29 58Fire 15 30ExtinguisherVehicles 06 12HandlingTotal 50 100le No-18
  120. 120. Yes/No No of Percentage RespondentsYes 38 76No 12 24Total 50 100majority 76% of the respondents said thatpersonality development program isnecessary in the organization. While 24% ofthe respondents said that a personalitydevelopment program is not required in theorganization. Stress Relief ProgramsTable No-19Stress Relief No of PercentagePrograms RespondentsYoga 04 08Trips 04 08Entertainment 42 84programsTotal 50 100
  121. 121. le No-20Changes felt No of Percentagedue to RespondentstrainingImproved 18 36RelationshipsMinimized 03 06resistance tochangeIncreased the 07 14efficiency andeffectivenessImproved 22 44product qualityTotal 50 100imized the resistance to change in theorganization.Instruments used in the training program attended by the respondentsTable No-21
  122. 122. 100 Instruments 96 No of Percentage80 Respondents60 Visual aids 02 0440 Games 00 00 % of Respondents20 Interactive 13 26 0 sessions 4 None Yes 35 No 70 Total 50 100 ondents. Whether benefits of training justify the training cost Table No-22 Yes/No No of Percentage Respondents Yes 48 96 No 02 04 Total 50 100 s not justify the training cost. Objectives that was predominantly fulfilled in the training session
  123. 123. Table No-23Objectives No of Percentage RespondentsIncreased 28 56productivityEffective 00 00working of theemployeesReduction in 12 24wastageDeveloping the 10 20skills of theemployeesTotal 50 100le No-24Yes/No No of Percentage RespondentsYes 26 52No 24 48Total 50 100.
  124. 124. Follow ups after the trainingTable No-25Follow ups No of Percentage RespondentsPerformance 15 30AppraisalWork sampling 08 16Superior 11 22EvaluationPersonal 16 32assessmentTotal 50 100Rating No of Percentage RespondentsExcellent 08 16Very good 09 18Good 20 40Satisfactory 13 26Total 50 100
  125. 125. SUGGESTIONS Based on the findings of the study, the investigator has put forth the following suggestions to the organization. The head of department need to play a key role in explaining the importance and necessity of training to his subordinates. The training faculties need to make adequate use of the training aids available in the organization. Training programs need to be more interactive. The trainer should motivate the trainee to participate in the proceedings. Selection of the training programs and selection of the participants need to be thoroughly evaluated on some predetermined basis. The involvement of visual aids, games and tale plays are to be stressed on during the time of training as it gives more insights to
  126. 126. the workers especially the less educated ones and helps them to acquire interpersonal skills and understand the concepts better. The skills of the employees must be developed by imparting English speaking courses and computer courses. Periodical training is very effective and so should be encouraged in the organization. Since most of the employees are satisfied with their job, the company can retain or enhance job satisfaction by giving rewards, ensuring recognition and providing opportunities for their career development. Another measure for improving the effectiveness of training programs is the introduction of pre-training evaluation, which creates awareness in the organization and among the employees about the needs of training. It can be suggested that in addition to the appraisal made by the superiors, an employee can also be appraised by his peers and subordinates.
  127. 127. Thus the company can consider the abovesuggestions to make its training programsmore effective. As a result good training willlead to improved performance leading toincreased productivity and thus profit.CONCLUSIONA meticulously planned and welladministered training and developmentprogram would be instrumental in bringingabout positive changes in the employees andthereby improve the efficiency of theorganization. Campco Ltd, Mangalore ismaintaining a good relationship with thepublic. It also maintains a good relationshipwith other organizations. Campco Ltd is one of the organizationsthat have realized the importance of humanresource and the need to train them. Itfollows a training policy designed by ahighly effective HR department.
  128. 128. Campco Ltd conducts a numberof training programs every year, withinnovations. Training programs have helpedin increasing the company’s productivity,reduce accidents and take additional jobresponsibilities and good industrial relations. However, there is still scope forimprovement which the company shouldseek to achieve. This can be done byperiodically evaluating and improving thetraining programs. The study has given theinvestigator, a practical exposure to thecompany. It has given the knowledge of thevarious functioning departments. It has alsotaught the investigator to carry out theresearch. Such a study would be useful incase any future researches need to beundertaken on this topic. The findingsarrived at as a part of the study would helpthe company in planning or modifying theirtraining programs in future. The investigator hopes that thesuggestions offered will be considered
  129. 129. positively and implemented in the organization. This would help the organization to pave the way for growth at a quicker pace. The company should strive for excellence in the years to come. BIBLIOGRAPHY1.CAMPCO at a glance-Magazine of the company.2.Annual general meeting report of 20083.Other company manuals and journals4. www.wikipedia.com6.