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A study on employeemotivation atprabhuram mills
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1.1 INTRODUCTION
The public enterprises have made significant contribution in the development of the
enterprise in private sector or public sector, its success depends upon the good human
resource planning. The study mainly centralized the excess the employee motivation practice
in the company.
Management is supposed to get the work done by the subordinate towards the attainment of
the common goals. This is the most important function at management to inspire and
stimulate the personal with zeal to do work for the accomplishment of the organizational
objectives in other words it is motivation of the people. A successful management knows that
the issue of direction however will conceived does not mean that may will fellow in its true
spirit. He should in trust the people to do the work for the achievement of established goals.
He should also know that motivation as an unending process the management has to provide
for the employee constantly.
The purpose of this report is to provide information on methods and practices to evaluate the
employee motivation while recognizing that all element of the suggested principles.
Employee motivation may not always implement effectively. Organizations that monitor
effectiveness and strive to improve weakness are consistently the best performer.
Human motives are based on certain needs that may be primary or secondary need and may
vary in their industry according to situation and time. The management must ready those
needs try to understand the intensity and the responsibility to satisfy there in order to work.
Motivation means that process which creates on inspiration in a person to motivation is
derived from the word ‘motive’ which means the latest power in a person which impels him
to do a work.
Motivation is one of the most important aspects of human resource management performance
results from the interaction of physical and human resource. The management can attain
control over them but in the case of physical and financial factors, management can
accurately predict the input-output relationship and can vary the factors it choose in order to
achieve desired rate of production. In dealing with the employees, however, an intangible
factors of will or freedom of choice is introduced and workers can increase or decrease their
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productivity as they choose. Thus human quality gives rise to the need for productive
motives.
Motivation is the process of steering a person’s inner drives and actions towards certain goals
and committing his energies to achieve these goals. It involve a chain reaction starting with
felt needs, resulting in motives which give rise to tension which census action towards goals.
It is the process of stimulating people to strive willingly towards the achievement of
organizational goals motivation may be defined as the work a manager performs an order to
Induce Subordinates to act on the desired manner by satisfying their needs and desires. Thus
motivations is concerned with how behaviour gets started, is energized, sustained and
directed.
This research was conducted to study the employee motivation and how it affects on the work
of employees. The research was conducted in, Prabhuram Mills Kotta Chegannur.
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1.2 OBJECTIVES OF THE STUDY
Primary objective
The primary objective of the study is to make an assessment of labour motivation and
to evaluate the measures taken by the organization for employee motivation.
Secondary Objective
 To study the factors motivating the employees of the company.
 To analyze the satisfactory level for motivating factors.
 To offer suggestions for motivating the employees of the company.
 To study the effect of job promotion to the employee.
 To know the employee opinion regarding the safety and welfare measures provided
for them.
 To know the employee satisfaction on the interpersonal relationship, existing in the
. Organization.
 To study the effect of monitory and non monitory benefits provided by the
Organization on the employee performance.
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1.3 SCOPE OF THE STUDY
The study is concerned with familiarization with various aspects in the organization and the
study also helps to understand the various motivation technique used in Prabhuram Mill. The
study provides a wide scope which can provide hands on experience with regard to various
business practices existing in the organization. It also helps to bridge the gap between theory
and actual practice of management.
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1.4 RESEARCH METHODOLOGY OF THE STUDY
A research is a plan of the proposed research work. It is a systematic self critical enquiry.
This enquiry is aimed at understanding a thing, or phenomenon or solving a problem. The
research designs simply a specific presentation of the various steps in the process of research.
Design means adopting that type of technique of research which is most suited for the
research and study of the problem. It constitutes the blue print for the collection,
measurement and analysis of data. After selecting the topic and problems, defining concepts,
and frame hypothesis, a researcher has to think about the research design.
1.4.1 RESEARCH DESIGN
A Research design is purely and simply the framework for the study that guides the
collection and analysis of data. It is a blue print that is followed in completing a study.
There are 3 types of research design :-
1. Exploratory research design
2. Descriptive research design
3. Casual research design
1.4.2 SAMPLING TECHNIQUES AND SAMPLE SIZE
Sampling is the process of using a small number of items or parts of a larger population to
make conclusions about the whole population. If information is collected only from a
representative part of universe, we say that the data are collected by sampling. The study of
sample reveals the characteristics of universe. Different types of sampling are Random
Sampling and Non-random sampling.
 Random Sampling: This type of sampling is based on chance selected procedures.
The basis of Random Sampling is that the procedure of randomization should not be thought
of as unplanned or scientific. The different types of Random Sampling are Simple Random
Sampling, Stratified Sampling, Systematic sampling and Cluster sampling.
 Non Random Sampling: This is a type of sampling in which units of the sample are
selected on the basis of personal judgment or convenience. In non random sampling the
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probability of any member of the population sampling is quite arbitrary as researchers rely
heavily on personal judgment. The different types of non random sampling are Judgment
sampling, Convenience Sampling, Quota sampling and snowball sampling.
Sample Size: The whole number of sample unit on which survey is conducted is known as
sample size in this survey, sample size is 100 employees
1.4.3 SOURCES OF DATA
The methodology used for the project work is the collection of the primary data and
secondary data.
 Primary data
Data regarding the study of satisfaction among employees are procured directly from the
employees through a structural question redistributed to them. An informal discussion was
also done with the HR Manager to get information on satisfaction.
 Secondary data
The secondary data for conduction the study were collected from various books, records,
journals, newspaper and the internet. Data regarding the study of satisfaction among
employee were collected from the office of Travancore Titanium Products Limited and
various records and manuals of the company.
1.4.4 DATA ANALYSIS TOOLS AND TECHNIQUES
The various tools used for collecting the data are as follows:
 Questionnaire
Questionnaires refer to forms filled in by respondents alone. Questionnaires were handed to
the respondents in field and ask them to fill it. This method can be adopted for the entire
population or sampled sectors.
 Observation
Observation is either an activity of a living being, such as a human, consisting of
receiving knowledge of the outside world through the senses, or the recording of data using
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scientific instruments. The term may also refer to any data collected during this activity. An
observation can also be the way you look at things or when you look at something.
 Interviews
In interviews information is obtained through inquiry and recorded by enumerators.
Structured interviews are performed by using survey forms. The interviewer in one-to-one
conversation collects detailed personal information from individuals using oral questions.
1.4.5 STATISTICAL ANALYSIS
“Statistical Analysis” is a process of inspecting, cleaning, transforming, and
modeling data with the goal of highlighting useful information, suggesting conclusions,
and supporting decision.
The tool for analyzing the data is used for the study is:
1) Percentage method
Percentage method
The percentage is used for making comparison between two or more series of data. It is
used to classify the opinion of the respondent for different factors. It is calculated as
Percentage:
Number of observations
Total number of observations
X 100
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1.5 DURATION OF THE STUDY
The project was a detailed study on the topic “Study On Employee Motivation” was
successfully completed within the time period of Two Weeks with the guidance and support
from the project guide.
1.6 LIMITATIONS OF THE STUDY
 The study was limited up to a number of employees and does not collect adequate
information.
 Incomplete response from the respondents was a major limitation.
 Some employees were not ready to cooperate in completing the interview.
 Lack of time period was another limitation of the study.
 Data was collected only from the permanent workers.
 The survey was done during the working hours.
 Illiteracy of the respondents, during the data collection using questionnaire.
.
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2.1 REVIEW OF LITERATURE
MOTIVATION
Motivation is the word derived from the word ’motive’ which means needs, desires, wants or
drives within the individuals. It is the process of stimulating people to actions to accomplish
the goals. In the work goal context the psychological factors stimulating the people’s
behaviour can be • desire for money • success • recognition • job-satisfaction • team work, etc
One of the most important functions of management is to create willingness amongst the
employees to perform in the best of their abilities. Therefore the role of the leader is to arouse
interest in performance of employees in their jobs.
The process of motivation consists of three stages:
1. A felt need or drive
2. A stimulus in which needs have to be aroused
3. When needs are satisfied, the satisfaction or accomplishment of goals.
Therefore, we can say that motivation is a psychological phenomenon which means needs
and wants of the individuals have to be tackled by framing an incentive plan. In most
organizations, it is common to hear the refrain that a particular employee is not motivated and
hence his or her performance has taken a backseat. This is the reason companies spend
humungous amounts of money in arranging for training sessions and recreational events to
motivate the employees. Motivation can be understood as the desire or drive that an
individual has to get the work done. For instance, when faced with a task, it is the motivation
to accomplish it that determines whether a particular individual would complete the task
according to the requirements or not. Further, the absence of motivation leads to
underperformance and loss of competitiveness resulting in loss of productive resources for
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the organization. It is for this reason that the HR managers stress on the employees having
high levels of motivation to get the job done. VANCE : “Motivation implies any emotion or
desire which so conditions one’s will that the individual is properly lead into action.”
Motivation refers to a complexity of forces inspiring a person at work to intensify his desire
and willingness to use his/ her potentialities to perform in order to achieve organizational
objectives. (Mile, 2004) It actually refers to conditions which influence the arousal, direction
and maintenance of behavior relevant in working setting. The motivational force is aroused as
a result of needs, which have to be satisfied.(Kootz et al., 1990) Motivation of employees is
an important inter control tool and should therefore be adhered to in order to attain
advantages like increased employee commitment, increased productivity and efficiency.
Motivation emphasizes result oriented management through setting of smart objectives and
effective communication systems in an organization.
Definition of Motivation :
According to Michael J. Jacius ; Motivation is the act of stimulating someone or oneself to
get a desired course of action or to push the right button to get a desired reaction.
According to Dalton E. McFarland, "The concept of motivation is mainly psychological. It
related to those forces are many and keep on changing with time motives are invisible and
directed towards certain goals.
Balunywa, T. (2005) defines motivation as the inducement of a desired behavior with in
subordinates with a view of channeling their efforts and activity to achieve an organization’s
goals. He adds that it’s an internal drive to satisfy an unsatisfied need in an organization and
is also known as an incentive action.
Traditionally, motivation has been defined by the two dimensions that comprise it namely,
energy and direction (Deci, 1980; Deci & Ryan, 1985; Roberts, 1992). The energy dimension
of motivation is the driving force behind someone’s effort and persistence during engagement
in a particular activity. Direction of motivation determines the area or field of interest in
which that effort is projected. Both are necessary elements of a complete motivational act.
Energy without direction has no purpose, and direction without energy results in a state of
motivation.
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TECHNIQUES OF MOTIVATION
1. Financial incentives:
First techniques of motivation are financial incentives as money is indicator of success.
Therefore it fulfills psychological safety and status need as people satisfy their needs by
money. Wages, salary motivates employees to perform better
2. Job enlargement:
Under this technique, task assigned to do job are increased by adding simile task. So the
scope of job enlargement is high for the motivation of subordinates. It is also known as
horizontally leading of job.
3. Job enrichment:
Under this technique jobs are made challenging and meaningful by increasing responsibility
and growth opportunities. In such technique of motivation, planning and control
responsibility are added to the job usually with less supervision and more self evaluation. It is
also called vertical leading
4. Job rotation
It refers to shifting an employee from one job to another. Such job rotation doesn’t mean
hanging of their job but only the employees are rotated. By this it helps to develop the
competency in several job which helps in development of employees.
5. Participation:
Participation refers to involvement of employee in planning and decision making .it helps the
employees feel that they are an asset of the organization which helps in developing ideas to
solve the problems
6. Delegation of authority:
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Delegation of authority is concerned with the granting of authority to the subordinates which
helps in developing a feeling of dedication to work in an organization because it provides the
employees high morale to perform any task
7. Quality of work life:
It is the relationship between employees’ and the total working environment of organization.
It integrates employee needs and well being with improves productivity, higher job
satisfaction and great employee involvement. It ensures higher level of satisfaction.
8. Management by objectives:
It is used as a motivation and technique for self control of performance. By this technique
superior and subordinates set goals and each individual subordinates responsibilities clearly
defined which help to explore the sill and use in the organization effectively.
9. Behavior modification:
The last technique of motivation is behavior modification. It develops positive motivation to
the workers to do the work in desired behavior in order to modify behavior.
IMPORTANCE OF MOTIVATION
Motivation is a very important for an organization because of the followingbenefits it
provides:-
1.Puts human resources intoaction
Every concernrequires physical, financial and human resources to accomplishthe
goals. It is through motivation that the human resources canbe utilizedby making full
use of it. This can be done by building willingness in employees to work. This will help
the enterpriseinsecuringbest possible utilizationof resources.
2. Improves level ofefficiencyofemployees
The level of a subordinate or a employee does not onlydepend upon his qualifications
and abilities. For gettingbest of his work performance, the gap betweenability and
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willingness has to be filledwhich helps in improving the level of performance of
subordinates. This will result into-
a. Increase in productivity,
b. Reducing cost of operations, and
c. Improving overall efficiency.
3. Leads to achievement oforganizational goals
The goals of an enterprise canbe achieved only when the followingfactors take place:-
a. There is best possible utilizationof resources,
b. There is a co-operative work environment,
c. The employees are goal-directedandthey act in a purposive manner,
d. Goals can be achieved if co-ordinationand co-operationtakes place simultaneously
which can be effectivelydone throughmotivation.
4. Buildsfriendlyrelationship
Motivationis an important factor which brings employees satisfaction. This can be done
by keeping into mind and framing an incentive plan for the benefit of the employees. This
couldinitiate the followingthings:
a. Monetaryand non-monetaryincentives,
b. Promotionopportunitiesfor employees,
c. Disincentives for inefficient employees.
In order to build a cordial, friendlyatmosphere ina concern, the above steps shouldbe
taken by a manager.
5. Motivation results inreductioninresistanceto change
Motivated employees will accept changes that are introduced for the betterment of the
organization, which will in turn facilitate in their own advancement. If the employees are
not well motivated, they may resist the change.
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6. Reduction in employee’s turnover
Motivationcreates confidenceinthe workers and the work force will be loyal to the
organization. It will reduce turnover and absenteeism. There will be stabilityin the work
force. Workerswill not leave the organizationfor simple reasons.
7. Motivation will create better organization image
An enterprise which offer incentives and better facilitates have good image in the
employment market. Such enterprises attract qualified and experienced persons.
THEORIES OF MOTIVATION
1. Maslow’s Hierarchy of Needs Theory:-
Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943.
This theory is a classical depiction of human motivation. This theory is based on the
assumption that there is a hierarchy of five needs within each individual. The urgency of
these needs varies. These five needs are as follows-
Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In
other words, physiological needs are the needs for basic amenities of life.
Safety needs- Safety needs include physical, environmental and emotional safety and
protection. For instance- Job security, financial security, protection from animals, family
security, health security, etc.
Social needs- Social needs include the need for love, affection, care, belongingness, and
friendship.
Esteem needs- Esteem needs are of two types: internal esteem needs (self-respect,
confidence, competence, achievement and freedom) and external esteem needs (recognition,
power, status, attention and admiration).
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Self-actualization need- This include the urge to become what you are capable of becoming
what you have the potential to become. It includes the need for growth and self-contentment.
It also includes desire for gaining more knowledge, social- service, creativity and being
aesthetic. The self actualization needs are never fully satiable. As an individual grows
psychologically, opportunities keep cropping up to continue growing.
According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs
is significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the
five needs into two categories -Higher-order needs and Lower-order needs. The physiological
and the safety needs constituted the lower-order needs. These lower-order needs are mainly
satisfied externally. The social, esteem, and self-actualization needs constituted the higher
order needs. These higher-order needs are generally satisfied internally, i.e., within an
individual. Thus, we can conclude that during boom period, the employees lower-order needs
are significantly met.
Implications of Maslow’s Hierarchy of Needs Theory for Managers
1. As far as the physiological needs are concerned, the managers should give employees
appropriate salaries to purchase the basic necessities of life. Breaks and eating opportunities
should be given to employees.
2. As far as the safety needs are concerned, the managers should provide the employees job
security, safe and hygienic work environment, and retirement benefits so as to retain them.
3. As far as social needs are concerned, the management should encourage teamwork and
organize social events.
4. As far as esteem needs are concerned, the managers can appreciate and reward employees
on accomplishing and exceeding their targets. The management can give the deserved
employee higher job rank / position in the organization.
5. As far as self-actualization needs are concerned, the managers can give the employees
challenging jobs in which the employees’ skills and competencies are fully utilized.
Moreover, growth opportunities can be given to them so that they can reach the peak.
The managers must identify the need level at which the employee is existing and then those
needs can be utilized as push for motivation. Limitations of Maslow’s Theory it is essential to
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note that not all employees are governed by same set of needs. Different individuals may be
driven by different needs at same point of time. It is always the most powerful unsatisfied
need that motivates an individual. The theory is not empirically supported. The theory is not
applicable in case of starving artist as even if the artist’s basic needs are not satisfied, he will
still strive for recognition and achievement
2. ERG Theory of Motivation:-
To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical
research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory
of motivation. He recategorized Maslow’s hierarchy of needs into three simpler and broader
classes of needs:
Existence needs- These include need for basic material necessities. In short, it includes an
individual’s physiological and physical safety needs.
Relatedness needs- These include the aspiration individual’s have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting public
fame and recognition. Maslow’s social needs and external component of esteem needs fall
under this class of need.
Growth needs- These include need for self-development and personal growth and
advancement. Maslow’s self-actualization needs and intrinsic component of esteem needs fall
under this category of need.
The significance of the three classes of needs may vary for each individual. Difference
between Maslow Need Hierarchy Theory and Alderfer’s ERG Theory:• ERG Theory states
that at a given point of time, more than one need may be operational • ERG Theory also
shows that if the fulfillment of a higher-level need is subdued, there is an increase in desire
for satisfying a lower-level need. • According to Maslow, an individual remains at a
particular need level until that need is satisfied. While according to ERG theory, if a higher-
level need aggravates, an individual may revert to increase the satisfaction of a lower- level
need. This is called frustration- regression aspect of ERG theory. For instance- when growth
need aggravates, then an individual might be motivated to accomplish the relatedness need
and if there are issues in accomplishing relatedness needs, then he might be motivated by the
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existence needs. Thus, frustration/aggravation can result in regression to a lower-level need. •
While Maslow’s need hierarchy theory is rigid as it assumes that the needs follow a specific
and orderly hierarchy and unless a lower-level need is satisfied, an individual cannot proceed
to the higher-level need; ERG Theory of motivation is very flexible as he perceived the needs
as a range/variety rather than perceiving them as a hierarchy. According to Alderfer, an
individual can work on growth needs even if his existence or relatedness needs remain
unsatisfied. Thus, he gives explanation to the issue of “starving artist” who can struggle for
growth even if he is hungry. Implications of the ERG Theory Managers must understand that
an employee has various needs that must be satisfied at the same time. According to the ERG
theory, if the manager concentrates solely on one need at a time, this will not effectively
motivate the employee. Also, the frustration- regression aspect of ERG Theory has an added
effect on workplace motivation.
3. Herzberg’s Two-Factor Theory of Motivation:-
In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the
motivator hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction. According to
Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of
“Dissatisfaction” is “No Dissatisfaction”. Fredrick Hertz (1959), the two-factor theory also
known as the hygiene theory, where he referred to satisfiers as motivators, dissatisfies as
hygiene factors. He found out that motivators were related to job experience and dissatisfies
related to environmental conditions. These are classified in the table below.
Table 1: Motivation satisfiers and dis-satisfiers.
Motivators(satisfiers) Maintenance factor (dis-satisfier)
Challenging work Status
Achievement Interpersonal relations
Growth of the job Quality supervision
Responsibility Company policy
Advancement Working condition
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Recognition Salary
Herzberg’s view of satisfaction and dissatisfaction Herzberg classified these job factors into
two categories:
1. Hygiene factors-
Hygiene factors are those job factors which are essential for existence of motivation at
workplace. These do not lead to positive satisfaction for long-term. But if these factors are
absent / if these factors are non-existent at workplace, then they lead to dissatisfaction. In
other words, hygiene factors are those factors which when adequate/reasonable in a job,
pacify the employees and do not make them dissatisfied. These factors are extrinsic to work.
Hygiene factors are also called as dissatisfies or maintenance factors as they are required to
avoid dissatisfaction. These factors describe the job environment/scenario. The hygiene
factors symbolized the physiological needs which the individuals wanted and expected to be
fulfilled.
Hygiene factors include:
 Pay - The pay or salary structure should be appropriate and reasonable. It must be
equal and competitive to those in the same industry in the same domain.
 Company Policies and administrative policies - The company policies should not
be too rigid. They should be fair and clear. It should include flexible working hours,
dress code, breaks, vacation, etc.
 Fringe benefits - The employees should be offered health care plans (medical claim),
benefits for the family members, employee help programmes, etc.
 Physical Working conditions - The working conditions should be safe, clean and
hygienic. The work equipments should be updated and well-maintained.
 Status - The employees’ status within the organization should be familiar and
retained.
 Interpersonal relations - The relationship of the employees with his peers, superiors
and subordinates should be appropriate and acceptable.
2. Motivational factors-
According to Herzberg, the hygiene factors cannot be regarded as motivators. The
motivational factors yield positive satisfaction. These factors are inherent to work. These
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factors motivate the employees for a superior performance. These factors are called satisfiers.
These are factors involved in performing the job. Employees find these factors intrinsically
rewarding. The motivators symbolized the psychological needs that were perceived as an
additional benefit. Motivational factors include:
- The employees should be praised and recognized for their accomplishments
. by the managers
- The employees must have a sense of achievement. This depends.
- There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
- The employees must hold themselves responsible for the work. The
managers should give them ownership of the work. They should minimize control but retain
accountability.
- The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.
Limitations of Two-Factor Theory the two factor theory is not free from limitations:
-factor theory overlooks situational variables.
h
conducted by Herzberg stressed upon satisfaction and ignored productivity.
the theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may
spoil the findings by analyzing same response in different manner.
comprehensive measure of satisfaction was used. An employee may find his job
acceptable despite the fact that he may hate/object part of his job.
employees when they are enquired the sources of satisfaction and dissatisfaction at work.
They will blame dissatisfaction on the external factors such as salary structure, company
policies and peer relationship. Also, the employees will give credit to themselves for the
satisfaction factor at work.
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The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor
theory is acceptable broadly.
Implications of Two-Factor Theory The Two-Factor theory implies that the managers must
stress upon guaranteeing the adequacy of the hygiene factors to avoid employee
dissatisfaction. Also, the managers must make sure that the work is stimulating and
rewarding so that the employees are motivated to work and perform harder and better. This
theory emphasize upon job-enrichment so as to motivate the employees. The job must utilize
the employee’s skills and competencies to the maximum. Focusing on the motivational
factors can improve work-quality.
4. Expectancy Theory of Motivation:-
The expectancy theory was proposed by Victor Vroom of Yale School of Management in
1964. Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and
Herzberg. The theory states that the intensity of a tendency to perform in a particular manner
is dependent on the intensity of an expectation that the performance will be followed by a
definite outcome and on the appeal of the outcome to the individual. The Expectancy theory
states that employee’s motivation is an outcome of how much an individual wants a reward
(Valence), the assessment that the likelihood that the effort will lead to expected performance
(Expectancy) and the belief that the performance will lead to reward (Instrumentality). In
short, Valence is the significance associated by an individual about the expected outcome. It
is an expected and not the actual satisfaction that an employee expects to receive after
achieving the goals. Expectancy is the faith that better efforts will result in better
performance. Expectancy is influenced by factors such as possession of appropriate skills for
performing the job, availability of right resources, availability of crucial information and
getting the required support for completing the job. Instrumentality is the faith that if you
perform well, then a valid outcome will be there. Instrumentality is affected by factors such
as believe in the people who decide who receives what outcome, the simplicity of the process
deciding who gets what outcome, and clarity of relationship between performance and
outcomes.
Thus, the expectancy theory concentrates on the following three relationships:
• Effort-performance relationship: What is the likelihood that the individual’s effort be
recognized in his performance appraisal?
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• Performance-reward relationship: It talks about the extent to which the employee believes
that getting a good performance appraisal leads to organizational rewards.
• Rewards-personal goals relationship: It is all about the attractiveness or appeal of the
potential reward to the individual Vroom was of view that employees consciously decide
whether to perform or not at the job. This decision solely depended on the employee’s
motivation level which in turn depends on three factors of expectancy, valence and
instrumentality.
Advantages of the Expectancy Theory
-interest individual who want to achieve maximum satisfaction and who
wants to minimize dissatisfaction.
immaterial.
-offs.
maximum pleasure and least pain.
Limitations of the Expectancy Theory
high degree correlation between performance and rewards.
d as reward is not directly correlated with
performance in many organizations. It is related to other parameters also such as position,
effort, responsibility, education, etc.
5. Theory X and Theory Y:-
In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of
human behaviour at work, or in other words, two different views of individuals (employees):
one of which is negative, called as Theory X and the other is positive, so called as Theory Y.
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According to McGregor, the perception of managers on the nature of individuals is based on
various assumptions.
Assumptions of Theory X
An average employee intrinsically does not like work and tries to escape it whenever
possible.
the employee does not want to work, he must be persuaded, compelled, or warned
with punishment so as to achieve organizational goals.
A close supervision is required on part of managers. The managers adopt a more dictatorial
style.
Many employees rank job security on top, and they have little or no aspiration/ ambition.
Employees resist change. An average employee needs formal direction.
Assumptions of Theory Y
relaxing and normal. They exercise their physical and
mental efforts in an inherent manner in their jobs.
use self-direction and self-control if they are dedicated and sincere to achieve the
organizational objectives.
commitment to organization.
, he can
even learn to obtain responsibility.
utilized.
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In other words, the creativity, resourcefulness and innovative potentiality of the employees
can be utilized to solve organizational problems. Thus, we can say that Theory X presents a
pessimistic view of employees’ nature and behaviour at work, while Theory Y presents an
optimistic view of the employees’ nature and behaviour at work. If correlate it with Maslow’s
theory, we can say that Theory X is based on the assumption that the employees emphasize
on the physiological needs and the safety needs; while Theory X is based on the assumption
that the social needs, esteem needs and the self-actualization needs dominate the employees.
McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he
encouraged cordial team relations, responsible and stimulating jobs, and participation of all in
decision-making process.
6. Vroom’s Expectancy Theory
The expectancy theory of motivation was established by Victor Vroom with the belief that
motivation is based on the expectation of desired outcomes. The theory is based on three
concepts: valence, expectancy, and force. Valence is the attractiveness of potential rewards,
outcomes, or incentives. Expectancy is a person’s belief that they will or will not be able to
reach the desired outcome. Force is a person’s motivation to perform.] “In general, people
will work hard when they think that it is likely to lead to desired organizational rewards”.
7. Locke’s Goal Theory
Edwin A. Locke’s goal theory describes setting more specific goals to elicit higher
performance and setting more difficult goals to increase effort. He also believed that, through
employee participation in goal setting the employees would be more likely to accept the goals
and have a greater job satisfaction. The goal theory’s underlying assumption is that
employees who participate in goal setting will set more difficult goals for themselves and
yield superior performance. The theory is logical because employees are going to set more
difficult goals but the goals will be attainable with increased effort. Sometimes organizations
set goals that their employees will rarely, if ever, be able to meet. If the goals are always
unattainable, there is no motivation to try accomplishing them.
Intrinsic And Extrinsic Motivation
Motivation can be divided into two types: intrinsic (internal) motivation and extrinsic
(external) motivation.
Intrinsic Motivation
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Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task
itself, and exists within the individual rather than relying on external pressures or a desire for
reward. Intrinsic motivation has been studied since the early 1970s.The phenomenon of
intrinsic motivation was first acknowledged within experimental studies of animal behavior.
In these studies, it was evident that the organisms would engage in playful and curiosity
driven behaviors in the absence of reward. Intrinsic motivation is a natural motivational
tendency and is a critical element in cognitive, social, and physical development. Students
who are intrinsically motivated are more likely to engage in the task willingly as well as work
to improve their skills, which will increase their capabilities. Students are likely to be
intrinsically motivated if they:
 attribute their educational results to factors under their own control, also known as
autonomy
 believe they have the skills to be effective agents in reaching their desired goals, also
known as self-efficacy beliefs
 are interested in mastering a topic, not just in achieving good grades.
Extrinsic Motivation
Extrinsic motivation refers to the performance of an activity in order to attain an outcome,
whether or not that activity is also intrinsically motivated. Extrinsic motivation comes from
outside of the individual. Common extrinsic motivations are rewards (for example money or
grades) for showing the desired behavior, and the threat of punishment following
misbehavior. Competition is in an extrinsic motivator because it encourages the performer to
win and to beat others, not simply to enjoy the intrinsic rewards of the activity. A cheering
crowd and the desire to win a trophy are also extrinsic incentives.
Comparison Of Intrinsic And Extrinsic Motivation
Social psychological research has indicated that extrinsic rewards can lead to over
justification and a subsequent reduction in intrinsic motivation. In one study demonstrating
this effect, children who expected to be (and were) rewarded with a ribbon and a gold star for
drawing pictures spent less time playing with the drawing materials in subsequent
observations than children who were assigned to an unexpected reward condition. However,
another study showed that third graders who were rewarded with a book showed more
reading behavior in the future, implying that some rewards do not undermine intrinsic
motivation. While the provision of extrinsic rewards might reduce the desirability of an
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activity, the use of extrinsic constraints, such as the threat of punishment, against performing
an activity has actually been found to increase one's intrinsic interest in that activity. In one
study, when children were given mild threats against playing with an attractive toy, it was
found that the threat actually served to increase the child's interest in the toy, which was
previously undesirable to the child in the absence of threat.
For those children who received no extrinsic reward, self-determination theory proposes that
extrinsic motivation can be internalized by the individual if the task fits with their values and
beliefs and therefore helps to fulfill their basic psychological needs.
So we can say that motivation is an important factor which encourages persons to give their
best performance and help in reaching enterprise goals. A highly motivated employee is an
asset to any organization.
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2.1 INDUSTRY PROFILE
The textile industry (known colloquially in the United Kingdom and Australia as the rag
trade) is a term used for industries primarily concerned with the design or manufacture of
clothing as well as the distribution and use of textiles.
Prior to the manufacturing processes being mechanized, textiles were produced in the home,
and excess sold for extra money. Most cloth was made from wool, cotton, or flax, depending
on the era and location. For example, during the late medieval period, cotton became known
as an imported fiber in northern Europe, without any knowledge of what it came from other
than that it was a plant: noting its similarities to wool, people in the region could only
imagine that cotton must be produced by plant-borne sheep. John Mandeville, writing in
1350, stated as fact the now-preposterous belief: "There grew there [India] a wonderful tree
which bore tiny lambson the ends of its branches.
These branches were so pliable that they bent down to allow the lambs to feed when they are
hungry," This aspect is retained in the name for cotton in many European languages, such as
German Baumwolle, which translates as "tree wool". By the end of the 16th century, cotton
was cultivated throughout the warmer regions in Asia and the American. In Roman times,
wool, linen and leather clothed the European population: the cotton of India was a curiosity
that only naturalists had heard of, and silk, imported along the Silk Road from China, was an
extravagant luxury. The use of flax fiber in the manufacturing of cloth in Northern Europe
dates back to Neolithic times.
Cloth was produced in the home, and the excess woven cloth was sold to merchants called
clothiers who visited the village with their trains of pack-horses. Some of the cloth was made
into clothes for people living in the same area and a large amount of cloth was exported.
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The process of making cloth depends slightly on the fiber being used, but there are three main
steps: preparation of fibers for spinning, and weaving or knitting. The preparation of the
fibers differs the most depending on the fiber used. Flaxrequiresretting and dressing, while
wool requires carding and washing. The spinning mid weaving processes is very similar
between fibers.
Spinning evolved from twisting the fibers by hand, to use of a drop spindle, to a spinning
wheel. Spindles or parts of them have been found in very, very old archaeological sites; they
may represent one of the earliest pieces of technology available to humankind, was invented
in India between 500 and 1000 AD. It reached Europe via the Middle East in the European
Middle Ages.
Weaving, done on a loom has been around for as lung as spinning. There are some
indications that weaving was already known in the Palaeolithic. An indistinct textile
impression has been found at Pavlov, Moravia. Neolithic textiles are well known from finds
in pile dwellings in Switzerland. One extant fragment from the Neolithic was I found in
Fayum at a site which dates to about 5000 BCE. There are many different types of looms,
from a simple loom that dates back to the Vikings, to the standard floor loom.
The key British industry at the beginning of the 18th century ELS the production of textiles
made with wool from the large sheep-farming areas in the Midlands and across the country
(created as a result of land-clearance and enclosure). Handlooms and spinning wheels were
the tools of the trade of the weavers in their cottages, and this was a labour-intensive activity
providing employment throughout Britain, with major centers being the West Country;
Norwich and environs: and the West Riding of Yorkshire. The export trade in woolen goods
accounted for more than a quarter of British exports during most of the 18th century,
doubling between 1701 and 1770. Exports of the cotton industry - centered in Lancashire -
had grown tenfold during this time, but still accounted for only a tenth of the value of the
woolen trade.
The textile industry grew out of the industrial revolution in the 18th Century as mass
production of clothing became a mainstream industry. Starting with the flying shuttle in 1733
inventions was made to speed up the textile manufacturing process. In 1738 Lewis Paul and
John Wyatt patented the Roller Spinning machine and the flyer-and-bobbin system. Lewis
Paul invented a carding machine in 1748, and by 1764 the spinning jenny had also been
invented. In1771, Richard Arkwright used watersheds to power looms for the production of
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cotton cloth, his invention becoming known as the water frame. In 1784, Edmund Cartwright
invented the power loom. With the spinning and weaving process now mechanized, cotton
mills cropped up all over the North West of England, most notably in Manchester and its
surrounding towns of Ashton-Under-Lyne, Stalybridge and Dukinfield.
Textile mills originally got their power from water wheels, and thus had to be situated along a
river. With the invention of the steam engine, in the 1760s to 19th century, mills no longer
needed to be along rivers.
Post-industrial revolution Many of the cotton mills, like the one in Lowell MA, in the US
originally started with the intention of hiring local farm girls for a few years. The mill job
was designed to give them bit more money before they went back to the farm life. With me
inflow of cheap labor from Ireland during the potato famine, the setup changed, as the girls
became easily replaceable. Cotton mills were full of the loud clanking of the looms, as well
as lint and cotton fiber. When the mills were first built, a worker would work anywhere from
one to four looms. As the design for the loom improved so that it stopped itself whenever a
thread broke, and automatically refilled the shuttle, the number of machines a worker could
work increased to up to50.
Originally, power looms were shuttle-operated but in the early part of the 20th century the
faster and more efficient shuttle less loom came into use. Today, advances in technology have
produced a variety of looms designed to maximize production for specific types of material.
The most common of these are air-jet looms and water-jet looms. Industrial looms can weave
at speeds of six rows per second and taster.
By the later 20th century, the industry in the developed world had developed a bad
reputation, often involving immigrants in illegal “sweat shops" full of people working on
textile manufacturing and sewing machines being paid less than minimum wages. This trend
has resulted due to attempt to protect existing industries which are being .challenged by
developing countries in South East Asia, the Indian subcontinent and more recently, Central
America. Whilst globalization has seen the manufacturing outsourced to overseas labor
markets there has been a trend for the areas historically associated with the trade to shift
focus to the more white collar associated industries of fashion design, fashion modeling and
retail.
Elements of the Industrial Revolution
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The commencement of the Industrial Revolution is closely linked to a small number of
innovations, made in the second half of the 18th century:
 Textiles
Cotton spinning using Richard Arkwright's water frame, James Hargreaves's Spinning Jenny,
and Samuel Crompton's Spinning Mule (a combination of the Spinning Jenny and the Water
Frame). This was patented in 1769 and so came out of patent in 1783. The end of the patent
was rapidly followed by the erection of many cotton mills. Similar technology was
subsequently applied to spinning worsted yarn for various textiles and flax for linen.
 Steam power
The improved steam engine invented by James Watt and patented in 1775 was initially
mainly used for pumping out mines, but from the 1780s was applied to power machines. This
enabled rapid development of efficient semi-automated factories on a previously
unimaginable scale in places where waterpower was not available.
 Iron founding
In the Iron industry, coke was finally applied to all stages of iron smelting, replacing
Charcoal. This had been achieved much earlier for lead and copper as well as for producing
pig iron in ablest furnace, but the second stage in the production of bar iron depended on the
use of potting and stamping (for which a patent expired in 1786) or puddling (patented by
Henry Cort in 1783 and 1784).
These represent three 'leading sectors', in which there were key innovations, which allowed
the economic take off by which the Industrial Revolution is usually defined. This is not to
belittle many other inventions, particularly in the textile industry. Without some earlier ones,
such as the spinning jenny and flying shuttle in the textile industry and the smelting of pig
iron with coke, these achievements might have been impossible. Later inventions such as the
power loom and Richard Trevithick's high pressure steam engine were also important in the
growing industrialization of Britain. The application of steam engines to powering cotton
mills and ironworks enabled these to be built in places that were most convenient because
other resources were available, rather than where there was water to power a watermill.
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In the textile sector, such mills became the model for the organization of human labour in
factories, epitomized by Cotton polis, the name given to the vast collection of cotton mills,
factories and administration offices based in Manchester. The assembly line system greatly
improved efficiency, both in this and other industries. With a series of men trained to do a
single task on a product, then having it moved along to the next worker, the number of
finished goods also rose significantly.
Industry and Invention
The reasons for this succession of events are interlinked. Partly through good fortune and
partly through conscious effort, Britain by the early 18thcentury possessed the combination
of skills, social needs and social resources needed for commercially successful innovation
and a social system capable of sustaining the processes of rapid technological change once
they had started.
Before the 1760s, textile production was a cottage industry using mainly flax and wool. In a
typical house the girls and women could make enough yarn for the man's loom. The
knowledge of textile production had existed for centuries, and the manual methods had been
adequate to provide enough cloth. Cotton started to be imported and the balance of demand
and supply was upset.
Two systems had developed far spinning: the Simple Wheel, which used tin intermittent
process and the more refined Saxony wheel which drove a differential spindle and flyer with
heck, in a continuous process. But neither of these wheels could produce enough thread for
the looms after the invention by John Kay of the flying shuttle (which made the loom twice
as productive). The first moves towards manufactories called mills were made in the spinning
sector and until the 1820 cotton, wool and worsted was spun in mills, and this yarn went to
outworking weavers who continues to work in their own homes.
Early Inventions
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In 1734 in Bury. Lancashire, John Kay invented the flying shuttle — one of the first of a
series of inventions associated with the cotton industry. The flying shuttle increased the width
of cotton cloth and speed of production of a single weaver at a loom. Resistance by workers
to the perceived threat to jobs delayed the widespread introduction of this technology, even
though the higher rate of production generated an increased demand for spun cotton.
Shuttles in 1738, Lewis Paul (one of the community of Huguenot weavers that had been
driven out of France in a wave of religious persecution) settled in Birmingham and with John
Wyatt, of that town, they patented the Roller Spinning machine and the flyer-and-bobbin
system, for drawing wool to a more even thickness. Using two sets of rollers that travelled at
different speeds yarn could be twisted and spun quickly and efficiently. This was later used in
the first cotton spinning mill during the Industrial Revolution.
1742: Paul and Wyatt opened a mill in Birmingham which used their new rolling machine
powered by donkey; this was not profitable and was soon closed.
1743: A factory opened] in Northampton, fifty spindles turned on five of Paul and
Wyatt's machines proving more successful than their first mill. This operated until1764.
1748: Lewis Paul invented the hand driven carding machine. A coat of wire slips were placed
around a card which was then wrapped around a cylinder. Lewis's invention was later
developed and improved by Richard Arkwright and Samuel Crompton, although this came
about under great suspicion after a fire at Daniel Bourns’ factory in Leominster which
specifically used Paul and Wyatt's spindles. Bourn produced a similar patent in the same
year.
1758: Paul and Wyatt based in Birmingham improved their roller spinning machine 'and look
out a second patient. Richard Arkwright later used this as the model for his water frame.
In 1761, the Duke of Bridgewater's canal connected Manchester to the coal fields of Worsley
and in 1762, Matthew Boulton opened the Soho Foundry engineering works in Hands worth,
Birmingham. His partnership with Scottish engineer James Watt resulted, in 1775, in the
commercial production of the more efficient Watt steam engine which used a separate
condensor.
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In 1764, James Hargreaves is credited as inventor of the spinning jenny which multiplied the
spun thread production capacity of a single worker — initially eightfold and subsequently
much further. Others credit the original invention to Thomas Highs. Industrial unrest and a
failure to patent the invention until 1770 forced Hargreaves from Blackburn, but his lack of
protection of the idea allowed the concept to be exploited by others. As a result, there were
over 20,000 Spinning Jennies in use by the time of his death. Again in 1764, Thorp Mill, the
first water-powered cotton mill in the world was constructed at Royton, Lancashire, England.
It was used for carding cotton.
Arkwright's Cromford Mill Richard Arkwright used waterwheels to power textile machinery.
His first spinning mill, Cromford Mill, Derbyshire, was built in 1771. It contained his
invention the water frame. Frame is another name for the machinery for spinning or weaving.
The water frame was developed from the spinning frame that Arkwright had developed with
(a different) John Kay, from Warrington. The original design was again claimed by Thomas
Highs, which he claimed he had patented in 1769. Initial attempts at driving the frame had
used horse power, but the innovation of using a waterwheel demanded a location with a ready
supply of water, hence the mill at Cromford. This mill is preserved as part of the Derwent
Valley Mills in some ways it was modeled on Matthew Boulton and John Fothergill's Soho
Manufactory. Arkwright protected his investment from industrial rivals and potentially
disruptive workers. He generated jobs and constructed accommodation for his workers; this
led to a sizeable industrial community. Arkwright expanded his operations to other parts of
the country.
Samuel Crompton of Bolton combined elements of the spinning jenny and water frame in
1779, creating the spinning mule. This mule produced a stronger thread than the water frame
could. Thus in 1780, there were two viable hand operated spinning system that could be
easily adapted to run by power of water. As early mules were suitable for producing yarn for
use in the manufacture of muslin, and which were known as the muslin wheel or the Hall i’th’
Wood (pronounced Hall-ith-wood) wheel. As with Kay and Hargreaves, Crompton was not
able lo exploit his invention for his .own profit, and died a pauper.
In 1783 a mill was built in Manchester at Shude hill, at the highest point in the city away
from the river. Shude hill Mill was powered by a 30 ft diameter waterwheel. Two storage
ponds were built, and the water from one passed from one to the other turning the wheel. A
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steam driven pump returned the water to the higher reservoir. The steam engine was of the
atmospheric type. An improvement devised by Joshua Wrigley, trialled in Chorlton-upon-
Medlock used two Savery engines to supplement the river in driving on overshot waterwheel.
In 1784, Edmund Cartwright invented the power loom, and produced a prototype in the
following year. His initial venture to exploit this technology failed, although his advances
were recognized by others in the industry. Others such as Robert Grimshaw (whose factory
was destroyed in 1790 as part of the growing reaction against the mechanization of the
industry) and Austin [51 - developed the ideas further. In 1803, William Radcliffe invented
the dressing frame which was patented under the name of Thomas Johnson which enabled
power looms to operate continuously.
INDIAN TEXTILE INDUSTRY
The Indian textile industry has a significant presence in the economy as well as in the
international textile economy. Its contribution to the Indian economy is manifested in terms
of its contribution to the industrial production, employment generation and foreign exchange
earnings. It contributes 20 percent of industrial production, 9percent of excise collections,
and 18 percent of employment in the industrial sector, nearly 20 percent to the countries total
export earning and 4 percent to the Gross Domestic Product.
In human history, past and present can never ignore the importance of textile in a civilization
decisively affecting its destinies, effectively changing its social scenario. A brief but
thoroughly researched feature on Indian textile culture.
HISTORY OF TEXTILE INDUSTRY
India has been well known for her textile goods since very ancient times. The traditional
textile industry of India was virtually decayed during the colonial regime. However, the
modern textile industry took birth in India in the early nineteenth century when the first
textile mill in the country was established at fort gloster near Calcutta in 1818. The cotton
textile industry, however, made its real beginning in Bombay, in 1850s. The first cotton
textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in
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overseas and internal trade. Indeed, the vast majority of the early mills were the handiwork of
Parsi merchants engaged in yarn and cloth trade at home and Chinese and African markets.
The first cotton mill in Ahmadabad, which was eventually to emerge as a rival centre to
Bombay, was established in 1861, the spread of the textile industry to Ahmadabad was
largely due to the Gujarati trading class.
The cotton textile industry made rapid progress in the second half of the nineteenth century
and by the end of the century there were 178 cotton textile mills: but during the year 1900 the
cotton textile industry was in bad state due to the great famine and a number of mills of
Bombay and Ahmadabad were to be closed down for long periods. The two world War and
the Swadeshi movement provided great stimulus to the Indian cotton textile industry.
However, during the period 1922 to 1937 the industry was in doldrums and during this period
a number of the Bombay mills changed hands. The Second World War, during which textile
import from Japan completely stopped, however, brought about an unprecedented growth of
this industry. The number of mills increased from 178 with 4.05 lakh looms in 1901 to 249
mills with 13,35 lakhs looms in 1921 and further to 396 mills with over 20 lakh looms in
1941. By 1945 there were 417 mills employing 5.10 lakh workers.
The cotton textile industry is rightly described as a Swadeshi industry because it was
developed with indigenous entrepreneurship and capital and in the pre-independence era the
Swadeshi movement stimulated demand for Indian textile in the country.
The partition of the country at the time of independence affected the cotton textile industry
also. The Indian union got 409 out of the 423 textiles mills of the undivided India. 14 mills
and 22 percent of the land under cotton cultivation went to Pakistan. Some mills were closed
down for some time. For a number of years since independence. Indian mills had to import
cotton from Pakistan and other countries. After independence, the cotton textile industry
made rapid strides under the Plans. Between 1951 and 1982 the total number of spindles
doubled from 11 million to 22 million. It increased further to well over 26 million by 1989-
90.
CURRENT POSSITION OF TEXTILE INDUSTRY IN INDIA
Textile constitutes the single largest industry in India. The segment of the industry daring the
year 2009-10 has been positive. The production of cotton declined from 156 lakh bales in
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2007-2008 to 1.40 lakh bales during 2000-01. Production of man-made fiber increased from
835 million kgs in 2007-2008to 904 million kgs during theear 2000-01 registering a growth
of 8.26%. The production of spun yarn increased to 3160 million kgs during 2000-01 from
3046 million kgs during 2007-2008registeringagrowth of3.7%. The production of man-made
filament yarn registered a growth of2.91% during the year 2007-2008increasing from 894
million kgs in 920 million kgs. the production of fabric registered a growth of 2.7% during
the year 2007-2008increasing from 39,208 million sq mtrs to 40,256 million sq mtrs. The
production of mill sector declined by 2.6% while production of handloom, power loom and
hosiery sector increased by 2%, 2.7% and 5.1% respectively. The exports of textiles and
garments increased from Rs. 455048 million to Rs.552424 million, registering a growth of
21%. Growth in the textile industry in the year 2003-2004 was Rs.1609 billion. And during
2009-10production of fabrics touched a peak of 45.378 million square meters. In the year;
2008-09 up to November, production of fabrics registered a further growth of 9 percent over
the corresponding period of the previous year. With the growing awareness in the industry of
its strengths and weakness and the need for exploiting the opportunities and averting threats,
the government has initiated many policy measures as follows.
The Technology Up gradation Fund Scheme (TUFS) was launched in April 99 to provide
easy access to capital for technological up gradation by various segments of the Industry.
The Technology Mission on Cotton (TMC) was launched in February 2009 to address issues
relating to the core fiber of Cotton like low productivity, contamination, obsolete ginning and
pressing factories, lack of storage facilities and marketing infrastructure.
A New Long Term Textiles and Garments Export Entitlement (Quota) Policies 2009-2010
was announced for a period of five years with effect from 1.1.2009 to31.12.2010 covering the
remaining period of the quota regime.
FUTURE PROSPECTS
The future outlook for the industry looks promising, rising income levels in both urban and
rural markets will ensure a rising market for the cotton fabrics considered a basic need in the
realm of new economic reforms (NER) proper attention has been given to the development of
the textiles industry in the Tenth plan. Total outlay on the development of textile industry as
envisaged in the tenth plan is fixed at Rs.1980 crore. The production targets envisaged in the
terminal year of the Tenth plan are 45,500 million sq.meters of cloth 4,150 million kg of spun
yarn and 1,450 million kg of manmade filament yarn. The per capita availability of cloth
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would be 28.00 sq meters by 2009-2010 as compared to 23.19 sq meters in 2007- 08 showing
a growth of 3.19 percent. The export target of textiles and apparel is placed at $32 billion by
2009-2010 and $50 billion by2012.
STRUCTURE OF INDIAS TEXTILE INDUSTRY
The textile sector in India is one of the world’s largest. The textile industry today is divided
into three segments:
1. Cotton Textiles
2. Synthetic Textiles
3. Other like Wool, Jute, Silk etc.
All segments have their own place but even today cotton textiles continue to dominate with
73% share. The structure of cotton textile industry is very complex with coexistence of oldest
technologies of hand spinning and hand weaving with the most 'sophisticated automatic
spindles and loom. The structure of the textile industry is extremely complex with the
modern, sophisticated and highly mechanized mill sector on the one hand and hand spinning
and hand weaving (handloom sector) on the other in between falls the decentralised small
scale power-loom sector.
Unlike other major textile-producing countries, India textile industry is comprised mostly of
small-scale, nonintegrated spinning, weaving, finishing, and apparel-making enterprises. This
unique industry structure is primarily a legacy of government policies that have promoted
labor-intensive, small-scale operations and discriminated against larger scale firms:
 Composite Mills
Relatively large-scale mills that integrate spinning, weaving and sometimes, fabric finishing
are common in other major textile-producing countries. In India however these types of mills
now account for about only 3 percent of output in the textile sector. About 276 composite
mills are now operating in India, most owned by the public sector and many deemed
financially sick. In 2008-2009 composite mills that produced 1434 m.sq mts of cloth. Most
of these mills are located in Gujarat and Maharashtra.
 Spinning
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Spinning is the process of converting cotton or manmade fiber into yarn to be used for
weaving and knitting. This mills chiefly located in North India. Spinning sector is technology
intensive and productivity is affected by the quality of cotton and the cleaning process used
during ginning. Largely due to deregulation beginning in the mid-1980s, spinning is the most
consolidated and technically efficient sector in India’s textile industry. Average plant size
remains small, however, and technology outdated, relative to other major producers. In
2002/03, India’s spinning sector consisted of about 1,146 small-scale independent firms and
1,599 larger scale independent units.
 Weaving and Knitting
The weaving and knits sector lies at the heart of the industry. In 2009-10, of the total
production from the weaving sector, about 46 percent was cotton cloth, 41 percent was 100%
non-cotton including khadi, wool and silk and 13 percent was blended cloth. Three distinctive
technologies are used in the sector hand looms, power loom sand knitting machines. Weaving
and knitting converts cotton, manmade, or blended yarns into woven or knitted fabrics.
India’s weaving and knitting sector remains highly fragmented, small-scale, and labour-
intensive. This sector consists of about 3.9 million handlooms, 380,000 power loom enter-
prises that operate about 1.7 million looms, and just 137,000 looms in the various composite
mills. Power looms are small firms, with an average loom capacity of four to five owned by
independent entrepreneurs or weavers. Modern shuttle less looms account for less than 1
percent of loom capacity.
 Fabric Finishing
Fabric finishing (also referred to as processing), which includes dyeing, printing and other
cloth preparation prior to the manufacture of clothing, is also dominated by a large number of
independent, small-scale enterprises. Overall, about 2,300 processors are operating in India,
including about 2,100 independent units and 200 units that are integrated with spinning,
weaving, or knitting units.
 Clothing
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Apparel is produced by about 77,000 small-scale units classified as domestic manufacturers,
manufacturer exporters, and fabricators (subcontractors).
INDIA’S MAJOR COMPETITIORS IN THE WORLD
To understand India’s position among other textile producing the industry contributes 9% of
GDP and 35% of foreign exchange earnings, India’s share in global exports is only 3%
compared to Chinas 13.75% percent. In addition to China, other developing countries are
emerging as serious competitive threats to India. Looking, at export shares. Korea (6%) and
Taiwan (5.5%) are ahead of India, while Turkey (2.9%) has already caught up and others like
Thailand (2.3%) and Indonesia (2%) are not much further behind. The reason for this
development is the fact that India lags behind these countries in investment levels,
technology, quality and logistics. If India were competitive in some key segments it could
serve as a basis for building a modern industry, but there is no evidence of such signs, except
to some extent in the spinning industry.
EXPORT AT GLANCE
A textile export plays a crucial role in the overall exports from India. Thought export friendly
government policies and positive efforts by the exporting community, textile exports
increased substantially from US$ 5,07 billion in 2002-03 to US$ 12.10 billion during 2009-
10. The textile export basket contributing over 46 percent of total textile export. In world
Textile trade has risen to 3.1 percent in 2007-2008 as against 1.80percent in early nineties.
Exports have grown at an average of 11 percent per annum over the last few years, while
world textile trade has grown only about 5.4 per cent per annum in the same years. During
the year 2007-08 India’s textile export was US$ 12014.4 million. It was increased the year
2008-09 USS 13038.64 million. The exports of textiles (including handicrafts, jute, and coir)
formed 24.6% of total exports in 2006-2007, however this percentage decreased to 16.24%
during 2008-2009. The textile exports recorded a growth of 15.3% in 2006-2007 and 8.7% in
2008-2009. Textile exports during the period of April-February 2008-2009 amounted to
$11.698.5million. During 2009-10 textile export were US$ 13,039.00 million, recording a
decline of 3.4% as compared to the corresponding period of previous year. However, during
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April-November, 2010, the textile exports have shown growth of 8.2% as compare to the
corresponding period of previous year. Against a target of US$ 15,160 million during 2009-
10, the textile exports were of US$13039 million, registering a shortfall of 14% against the
target. The overall export target for 2010-11 has been fixed at US$ 15,565 million. In
2010textile and garments accounted for about 16% of export earnings. India’s textile exports
to the US have shown a good rise of 29.5% between January and June 2010.
INVESTMENT IN TEXTILE INDUSTRY
Investment is the key for Indian textiles to make rapid strides, he Vision Statement prepared
by the Indian Cotton Mills federation has projected that the industry has the potential to reach
a size of $85 billion by 2010 from the current level of S 36 billion. Further, the vision
statement has estimated that textile exports could touch $40 billion by 2010 from S 11 billion
in 2002. In the process, India’s share in the global textile and clothing trade is expected to
double from three percent in 2002 to six percent by 2010.To reach these ambitious targets, it
is estimated that new investment to the tune of Rs.1,40,000 crores will be needed in the next
five years. After analyzing the capacity and technology levels in various segments of textile
Industry and the need for modernization, funds required for various segments have been
below.
Sl.No. Segment Investment
(Rs. in crore)
1. Ginning & Processing 1,800
2. Spinning 10,600
3. Weaving 22,950
4. Knitting 3,150
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5. Woven Processing 25,800
6. Knit Processing 8,550
7. Clothing 24,000
8. Jute 500
9. Silk Wool 1,200
The Multi-Fiber Agreement (MFA)
The Multi-Fiber Agreement (MFA), that had governed the extent of textile trade between
nations since 1962, expired on 1 January 2010. It is expected that, post-MFA, most tariff
distortions would gradually disappear and firms with robust capabilities will gain in the
global trade of textile and apparel. The prize is the $360 bn market which is expected to grow
to about $600 bn by the year 2010 barely five years after the expiry of MFA.
National Textile Policy 2000
Faced with new challenges and opportunities in a changing global trade environment the GOI
unveiled its National Textile Policy 2000 (NTP 2000) on November 2, 2000. The NTP 2000
aims to improve the competitiveness of the Indian textile industry in order to attain $50
billion per year in textile and apparel exports by 2010.86. The NTP 2000 opens the country’s
apparel sector to large firms and allows up to 100 percent FD1 in the sector without any
export obligation.
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2.2. COMPANY PROFILE
Prabhuram mills, a cotton spinning mill located in the industrially backward district, in
Alappuzha is one of the unit of Kerala State Textile Corporation (KSTC), a government of
Kerala undertaking. Site of the mill is at Kotta near Chengannur.Kotta is a remote
undeveloped village in the Mulakkuzha panchayath in Chengannur, Alappuzha district. It is
industrially and economically backward area. Nearly 75% of the people of this area belong to
the middle and low income group. Unemployment is a ramp act of this area. Under these
circumstances, steps taken for starting a spinning mill was a blessing to the natives of this
area. The project received a whole-hearted co-operation of the people. They donated lands
and came voluntarily to work for the construction of the two roads to the mill site.
The establishment of the spinning mill at Kotta was the outcome of the first industrial policy
declaration of Kerala. Before the industrial policy, Government of Kerala made a detailed
techno-economic survey during 1960-61. The survey was conducted under the supervision of
Sri P.S. Lokanathan. It was started in the beginning of 1960 and was completed by September
1961. The report was finalized in July 1962 contained a detailed study of the economic
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development of Kerala. While the survey was going on, government declared first industrial
policy of Kerala on 3rd June I960. In this declaration the entrepreneurs were offered various
facilities to establish industries. The industrial policy declaration attracted industrialist from
outside Kerala. The policy of the government was to sanction one industry per district. The
backward districts like Alappuzha were allotted two units. A renowned film actor Sri V.Sivaji
Ganesan in association with Sri V.A.Muthmnanickkan, a landlord hailing from Pollachi came
to know about the government policy and decided to start a spinning mill in Kerala. License
was secured in the name of Sri.V.A.Muthumanickkan and SriV.Sivaji Ganesan on 12/5/1962
to start the mill in Alappuzha district. The other unit was allotted at komalapuram at
Alappuzha district named Kerala spinners. An expert survey was conducted regarding the
location and Kotta was found suitable for the following reasons:
1. Cheap price of land
2. Industrially backward urea
3. Possibility of continuous power supply
4. Availability of water
5. Support of local people
6. Transportation facility
Kotta was an industrially backward area of Alappuzha district as such every loan facilities
were availed from Kerala State Industrial Development Corporation (KSIDC) and Kerala
Financial Corporation (KFC). The industries started in these areas were also eligible for
subsidies from the government of India. Government of Kerala also promised adequate
power supply to the newly established industries from Chengannur and Kozhencherry power
houses.
Kotta has no scarcity of water. Transportation and communication problems were also not
there as the site was near M.C. Road and the Chengannur railway station. Climatic conditions
were also highly favorable for the spinning mill.
The industrialists who came from TamilNadu were interested in textile mill and applied for
license under the new industrial policy. They obtained a license for 12,000 spindles which
was later enhanced to a capacity of 25,000 spindles.
After receiving the license the mill was incorporated under the Companies Act 1956 on
16/I1/1962. As per the memorandum of association the proposed mill was to be named as
Prabhuram Mills Ltd. The name behind the Prabhuram mills is derived from Prabhu s/o
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Sivaji Ganeshan and Ram s/o Muthumanickkan. The object for which the company was
established is to purchase, prepare, gin, spin, double, fold, weave, manufacture, bleach, dye,
print, or in any other way to manipulate wool, cotton, jute, linen, artificial silk, rayon,
synthetic and other fibrous substances whether natural or artificial and of merchants or
dealers of any of the products of any such process and to manufacture, buy, sell, and deal in
connection with any of the foregoing business.
It is also stated in the memorandum of association that the liabilities of the members are
limited. The authorized capital stated in the memorandum of association is Fifty Five lakhs
(55,00, 000). It is divided into 50,000 equity shares of 100 each and 5,000 preference shares
of 100 each.
In 1963 company purchased an area of land of 14.28 acres and started constructing the
building in the year 1964. Machines were imported from Japan. On 17/10/1964
SivajiGaneshan one of the entrepreneurs backed off from the project due to unspecified
reasons. Due to disputes between the management and shortage of funds there was no
progress in the project and it came to a grinding halt.
Four year later in 1969 KSIDC came to the rescue of the company, KSIDC remolded the
entire project and the management set up was re-constituted. A nominee from KSIDC was
also included in the board of directors. Workers were trained at Ettumanoor Kottayam
Textiles in the Kottayam district. Machinery erection was started in the year 1971. Trial
production started by February 1973 and commercial production started from July 1973 with
231 workers and 17 staff. Even though license was granted for 12,000 spindles, the work
started with 8,160 spindles. During the starting period onwards the mill experienced financial
problems because of high price in cotton. There was no corresponding increase in the price of
yarn. This situation necessitated the closure of the mill on 31/10/1975.
The shareholders and the workers of the mill had to engage in prolonged agitation demanding
the government to revive the unit. As a result, on 9/2/1978 ministry of industries government
of India took over the unit and Kerala State Textile Corporation was authorized to take over
the management of the mill. Soon after the mill was declared as relief undertaking and Kerala
State Textile Corporation (KSTC) was entrusted to revive the mill.
By an ordinance of the governor of Kerala on 19/4/1984, this mill was acquired by the
government of Kerala and transferred the same to Kerala State Textile Corporation (KSTC)
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with retrospective effect from 1983. The said ordinance was replaced by an Act 27 of L985”.
The Kerala Sick Textiles Undertaking or Acquisition and Transfer of Undertaking Act.
1985” the mill presently produce 90scombed yarns and 100s combed yarns.
OBJECTIVES OF THE COMPANY
1. Meeting commitments made lo internal and external customers.
2. Satisfaction of the customers producing qualitative products, integrity and fairness in
all matters.
3. Provide an avenue for those companies who provide their product desires a dedicated
and experienced management system.
ORGANISATIONAL STRUCTURE OF PRABHURAM MILL
Chairman &
Managing Director
General Manager
Personnel Manager Finance Manager Technical Manager Production Manager
Time
Keeper
(Watch &
Ward)
Time
Keepe
r (ESI
& PF)
Asst.
Manager
Quality
Control
Store
Keeper
Spinning
Manager
Asst. Spinning
Manager
Supervisor Supervisor
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DEPARTMENTS IN THE COMPANY
4.1. PERSONNEL DEPARTMENT
4.2. FINANCE DEPARTMENT
4.3. PRODUCTION DEPARTMENT
4.4. TECHNICAL DEPARTMENT
4.5. MARKETING DEPARTMENT
4.1. PERSONNEL DEPARTMENT
Personnel department is headed by personnel manager. Time keeper prepares the
worker’s wages report, salary of staff, preparation of annual leave register and forms. ESI &
PF clerk will do all work connected with employees state insurance and PF and furnish
details required for the recharge of personnel.
Personnel Manager
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Workers are classified into four as:
1. Permanent workers
2. Trainees
3. Casual workers
4. Badlies
SELECTIO
For the purpose of selection a board is constituted consisting of members from the mill and
does a government representative. Top level executives are selected and appointed by Kerala
Public Service Commission (KPSC).
RECRUITMENT
Personnel department recruits personnel according to the needs of the department. Personnel
department recruits skilled and unskilled labours. It is done by G.M. in consultation with
head of the department and the personnel manager.
PROMOTION
Promotion of personnel is done by Government and occurred by direct appointment.
Promotion from lower to higher grade is subject to availability of vacancy, efficiency,
suitability and seniority of the person for the higher post. Grade changes when person
completes 10 working years.
TRAINING
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Personnel department provides training to every worker before he/she is posted as a
permanent employee.
WELFARE FUNDS
Company has a welfare fund for the employees. They collect from each employee and return
it to them at the time of retirement with 15% interest. It provides loan from 5,000 for
meeting their financial needs. If an employee dies, one day salary of all the employees will
be given to the dependents. An employee retires due to illness or accidents, half day salary of
all the employees will be given.
UNION MANAGEMENT RELATIONSHIP
Company maintains good relation with the trade unions, more than or equal to 15 employee is
required to form a union. Major trade unions in this organization are:
1. INTUC
2. CITU
3. AITUC
4. BMS
5. CMP
GRIEVANCE HANDLING PROCEDURE
Management is good in listening to the problems of employees and solving it. All the
employees in the organization approach the management for grievance handling procedure
through the union leaders at the time of conflicts between management and workers. Two or
three representatives make the discussion with the management and the disputes mostly
solved in a manner to both the parties.
CANTEEN
Company provides canteen facility to the employees to satisfy their physiological needs. The
food provided at canteen is at a reduced rate. Company provides supper to night shift
employees.
ATTENDANCE
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Method of entering attendance is on the basis of punched card system. Each employee is
given cards according to their position. Permanent employees are given green cards, bad lies
workers are given red cards and trainees are given yellow cards.
RETIREMENT
Retirement of employees is at the age of 58. Company provides pension to the employees. It
also provides family pension also. Pension is given to the dependents of employee who died
when he is in service.
TRANSPORTATION
Company hires a private van on contract basis for the smooth transportation of employees
from destination points. It operates from nearby bus stand (Chenganur) in the morning and
sending them back in the evening.
Morning - 2 trips
Evening - 1 trip
SAFETY
Safety committee provides safety measures to the workers. Committee provides ear plugs,
masks and towel fix firing equipments.
Shift of Employees
General - 8.30 am to 4.30 pm
First Shift - 7.00 am to 3.00 pm
Second Shift - 3.00 pm to 11.00 pm
Third Shift - 11.00 pm to 7.00 am
FINANCE DEPARTMENT
The major function of the finance department is to maintain and record financial transactional
records and to guide the organization in a profitable manner. The working capital of the
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company is 60 lakhs. The authorized capital of the organization is 55 lakhs and it is wholly
owned by the government of Kerala.
Sources of funds for the organization are:
a. Paid up capital
b. Reserves & Surplus
c. Secured Loans
Functions of finance Department
1. Recording of day to day transactions
2. Preparing various statements regarding stock, receivables etc. which are to be
submitted to various authorities like insurers, bankers, different government departments.
3. Planning and controlling of the expenses and funds for production
4. Approving and making payments to different parties, creditors, suppliers etc.
5. Receiving payments from customers, dealers etc.
6. Raising short term loans, credits from banks and other financial institutions.
7. Preparation of sales budgets, revenue budgets and expenditure budgets on a quarterly
basis.
8. Preparation and maintenance of cost records
9. Preparation of fund flow and cash flow statements
10. Preparing and filing of quarterly and final income tax returns
11. Preparation and implementation of cost reduction and cost control methods
12. Conduct and co-ordinate internal and statutory audits
13. Perpetual stock valuation and asset evaluation
14. Investment analysis, feasibility study on production/supply orders received and
contracts.
Banking Partner
The banking partner of Prabhuram Mill is state bank of Travancore (SBT), Chengannur.
Department Structure
Finance Manager
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Responsibility of Finance Manager
1. Maintain Books of Accounts
2. Liaison with banks and other financial institutions
3. Liaison with government bodies and other regulatory authorities.
4. Prepare budgets and to achieve targeted turnover
Responsibility of Senior Accounts Assistant
1. Right up general ledger, customer ledger, journal and related vouchers.
2. Preparation of fixed assets registers
3. Working connected with canteen accounts
4. Verifying all documents and invoices of dispatches and sales
5. Preparation of monthly, quarterly, half yearly and annual trial balance & balance
sheet.
6. Other related work assigned by management from time to time.
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Duties of Accounts Assistant
1. Preparation of all cost records and making statements and reports related to costing
and management information system.
2. Renewal of insurance policies
3. Preparation of budgets and analysis of actual performance with budgeted
performance.
4. Verification of staff acquaintance, wages calculation of staff and workers, advances
and bonus and gratuity calculation.
Duties of Clerk
1. Presentation of bank vouchers and bank books
2. Preparation of monthly cash flow and related documents
3. Writing up of creditors ledger, cotton or other purchase ledger
4. Send the returns of sales taxes, income tax and arrange remittance of that time in time.
5. Preparation of final accounts and related statements at the time of auditing.
Information system used in the department
The major information system used in the finance department to provide clear information
regarding the accounts statement is Tally. The advanced version of Tally accounting package
is used in the accounting department. The accounting package used by finance department is
Tally ERP 9.
Depreciation Method
Company follows a straight line depreciation method for calculating depreciation for its fixed
assets including land & building, plant & machinery etc.
BUDGET
Company prepares a projected budget for 6 months. It presents budget monthly and make
amendments in the budget according to the change in trends.
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STATUTORY BOOKS
The books of accounts maintained by the company under the companies act are:
1. Purchase Journal
2. Sales Journal
3. General Journal
4. Bank Book
5. Cash Book
1. Purchase Journal
Purchase journal is used to record all the transactions relating to the purchase of raw
materials, stores and consumables etc.
2. Sales Journal
Sales journal is used to record all sales transactions which includes sales of the product, sales
of scrap, waste materials etc.
3. General Journal
General journal is used to record all non-cash transactions which include depreciation
accounting, accounts related with insurance, canteen accounts etc.
4. Bank Book
Bank book is used to record all transitions related with bank. It includes cheque issued to
customers, cheque received from customers, overdraft taken from bank, deposits made in the
bank, interest paid for loan etc.
Purchase
Journal
Sales
Journal
General
Journal
Bank
Book
Cash
Book
Statutory Book
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5. Cash Book
All cash transactions are recorded in the cash book. Cash purchase of materials to the
canteen, cash received from employees, cash received from project studies etc.
ACCOUNTING VOUCHERS
Accounting vouchers used by the company to record transactions are:
1. Credit Vouchers
2. Debit Vouchers
3. General Journal Vouchers
4.3. PRODUCTION DEPARTMENT
Production department deals with all production and purchasing activities. They
collect information regarding the market requirements and plan production activities
accordingly. Production department is headed by production manager.
The structure of production department is as follows:
Production
Manager
Spinning Manager
Assistant Spinning
Manager
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Duties of Production Manager
1. Direct responsibility of planning, marketing, production and purchase.
2. Overall responsibility of purchasing of raw materials
3. Implementing corporate policies
4. Monitoring cost and improves productivity and planned level.
5. Promotion of awareness of customer requirements
6. Direct responsibility in running the plant to its maximum capacity.
7. Arranging the required quantity in consultation work.
8. Liaison with the suppliers.
PRODUCTION PROCESS
BLOW ROOM
This department functions only during the day shift. The machines of this department
are the most important in a spinning mill. The functions of blow room machines are:
a. Opening
b. Cleaning or waste removing
c. Mixing
d. Scotching & lap formation
The first process in the blow room department is the opening of hard pressed bales and
cleaning the cotton of heavy impurities like broken seed, leaf skill, husk etc. it is then passed
through a series of machines known under the general opener’s task and foreign matters have
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to be extracted from the cotton with the least amount of loss. Another process in mixing
various types of cotton like CH32, Varalakshmi and Rajapalayam. They are generally mixed
thoroughly to get a proper blend. The object of mixing is to get a proper blend so as to obtain
a near possible uniformity in length of staple, quality, colour etc.
Scotching and lap formation are the last operations in the blow room. Although has now
passed through the opener and has had extracted impurities from it, probably about 4% of
impurities are not cleaned. The cleaning process is continued after scotching. The object of
scotching is to remove as much as possible impurities. The loose cotton passed through the
scotches is converted into uniform sheets called laps. These laps are then delivered to the
next department.
CARDING
Carding is the process of removing impurities and clears the cotton further and then looses
the fibers and separates them and converts them into simples stands called slivers. 14 cards in
this department work in 3 shifts the objects are:
1. Waste removal – this is to remove impurities and clean the cotton further. Then main
wastes extracted from the cotton in carding department are:
a. Flat strips
b. Linker wastes
c. Cylinder wastes
d. Invisible wastes
2. To remove short fiber, moles, seeds, leaves etc. from the laps so that better yarn be
produced.
3. To lose the fiber and separate them so that the work of the draw frame will be
effective.
4. Convert them into single strands called silvers. Silvers are stored in cans. The
carding process helps in the betterment of fiber. The carding and stripping process are
carried out in this department.
COMBING
Combing is an optional process. The purpose of this produce yarn of better quality. Higher
count yarn is processed in this department. The objectives of this department are:
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1. Eliminate short fiber
2. Strength out the fiber
3. Parallelisation of fiber
Stem is taken direct from the card and passed through 3 processes in this department.
a. 22 carded slivers are feeding into sliver lap machine and laps are produced.
b. 6 sliver fiber laps are take to ribbon lap machine, fiber lap is produced.
c. 8 ribbon laps are placed on corrigended wooden rollers. Behind the combor camp and
the entire short from the lap. This laps are delivered into 2 sliver to card placed at the end of
the machine.
DRAWINGS
Carded and combed sliver are processed separately, and drawn for from the machine. Major
objectives are
A. Blending of sliver
B. Attention of fiber
C. Parallelization of fiber
D. Improvement of infirmity by sliver
E. Purification of sliver further
The carded sliver are passed through the drawing, but the combed slivers are passed through
the finishers drawings.
SIMPLEX
There are six simplex machines. Out of six machines, three of them are 120 spindle
machines and rests are 124 spindle machines. Objectives of simplex machine are to convert
carded and combed slivers into cavages. The carded or combed slivers are supports to the
simplex machines. Here the sliver passes in between 3 lines of rollers where it is subjected to
drawings sections. A slight twist is given to the reduced and it is then wound up on bobbins
by means of fitter. The slight twist is given to the attained an extremely loose sufficient to
give necessary strength to enable it to build up around the bobbin. It is further threatened
routing would or bobbins are supplied to the next department.
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A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills
A study on employee motivation at prabhuram mills

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A study on employee motivation at prabhuram mills

  • 1. A study on employeemotivation atprabhuram mills 1 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 1.1 INTRODUCTION The public enterprises have made significant contribution in the development of the enterprise in private sector or public sector, its success depends upon the good human resource planning. The study mainly centralized the excess the employee motivation practice in the company. Management is supposed to get the work done by the subordinate towards the attainment of the common goals. This is the most important function at management to inspire and stimulate the personal with zeal to do work for the accomplishment of the organizational objectives in other words it is motivation of the people. A successful management knows that the issue of direction however will conceived does not mean that may will fellow in its true spirit. He should in trust the people to do the work for the achievement of established goals. He should also know that motivation as an unending process the management has to provide for the employee constantly. The purpose of this report is to provide information on methods and practices to evaluate the employee motivation while recognizing that all element of the suggested principles. Employee motivation may not always implement effectively. Organizations that monitor effectiveness and strive to improve weakness are consistently the best performer. Human motives are based on certain needs that may be primary or secondary need and may vary in their industry according to situation and time. The management must ready those needs try to understand the intensity and the responsibility to satisfy there in order to work. Motivation means that process which creates on inspiration in a person to motivation is derived from the word ‘motive’ which means the latest power in a person which impels him to do a work. Motivation is one of the most important aspects of human resource management performance results from the interaction of physical and human resource. The management can attain control over them but in the case of physical and financial factors, management can accurately predict the input-output relationship and can vary the factors it choose in order to achieve desired rate of production. In dealing with the employees, however, an intangible factors of will or freedom of choice is introduced and workers can increase or decrease their
  • 2. A study on employeemotivation atprabhuram mills 2 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com productivity as they choose. Thus human quality gives rise to the need for productive motives. Motivation is the process of steering a person’s inner drives and actions towards certain goals and committing his energies to achieve these goals. It involve a chain reaction starting with felt needs, resulting in motives which give rise to tension which census action towards goals. It is the process of stimulating people to strive willingly towards the achievement of organizational goals motivation may be defined as the work a manager performs an order to Induce Subordinates to act on the desired manner by satisfying their needs and desires. Thus motivations is concerned with how behaviour gets started, is energized, sustained and directed. This research was conducted to study the employee motivation and how it affects on the work of employees. The research was conducted in, Prabhuram Mills Kotta Chegannur.
  • 3. A study on employeemotivation atprabhuram mills 3 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 1.2 OBJECTIVES OF THE STUDY Primary objective The primary objective of the study is to make an assessment of labour motivation and to evaluate the measures taken by the organization for employee motivation. Secondary Objective  To study the factors motivating the employees of the company.  To analyze the satisfactory level for motivating factors.  To offer suggestions for motivating the employees of the company.  To study the effect of job promotion to the employee.  To know the employee opinion regarding the safety and welfare measures provided for them.  To know the employee satisfaction on the interpersonal relationship, existing in the . Organization.  To study the effect of monitory and non monitory benefits provided by the Organization on the employee performance.
  • 4. A study on employeemotivation atprabhuram mills 4 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 1.3 SCOPE OF THE STUDY The study is concerned with familiarization with various aspects in the organization and the study also helps to understand the various motivation technique used in Prabhuram Mill. The study provides a wide scope which can provide hands on experience with regard to various business practices existing in the organization. It also helps to bridge the gap between theory and actual practice of management.
  • 5. A study on employeemotivation atprabhuram mills 5 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 1.4 RESEARCH METHODOLOGY OF THE STUDY A research is a plan of the proposed research work. It is a systematic self critical enquiry. This enquiry is aimed at understanding a thing, or phenomenon or solving a problem. The research designs simply a specific presentation of the various steps in the process of research. Design means adopting that type of technique of research which is most suited for the research and study of the problem. It constitutes the blue print for the collection, measurement and analysis of data. After selecting the topic and problems, defining concepts, and frame hypothesis, a researcher has to think about the research design. 1.4.1 RESEARCH DESIGN A Research design is purely and simply the framework for the study that guides the collection and analysis of data. It is a blue print that is followed in completing a study. There are 3 types of research design :- 1. Exploratory research design 2. Descriptive research design 3. Casual research design 1.4.2 SAMPLING TECHNIQUES AND SAMPLE SIZE Sampling is the process of using a small number of items or parts of a larger population to make conclusions about the whole population. If information is collected only from a representative part of universe, we say that the data are collected by sampling. The study of sample reveals the characteristics of universe. Different types of sampling are Random Sampling and Non-random sampling.  Random Sampling: This type of sampling is based on chance selected procedures. The basis of Random Sampling is that the procedure of randomization should not be thought of as unplanned or scientific. The different types of Random Sampling are Simple Random Sampling, Stratified Sampling, Systematic sampling and Cluster sampling.  Non Random Sampling: This is a type of sampling in which units of the sample are selected on the basis of personal judgment or convenience. In non random sampling the
  • 6. A study on employeemotivation atprabhuram mills 6 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com probability of any member of the population sampling is quite arbitrary as researchers rely heavily on personal judgment. The different types of non random sampling are Judgment sampling, Convenience Sampling, Quota sampling and snowball sampling. Sample Size: The whole number of sample unit on which survey is conducted is known as sample size in this survey, sample size is 100 employees 1.4.3 SOURCES OF DATA The methodology used for the project work is the collection of the primary data and secondary data.  Primary data Data regarding the study of satisfaction among employees are procured directly from the employees through a structural question redistributed to them. An informal discussion was also done with the HR Manager to get information on satisfaction.  Secondary data The secondary data for conduction the study were collected from various books, records, journals, newspaper and the internet. Data regarding the study of satisfaction among employee were collected from the office of Travancore Titanium Products Limited and various records and manuals of the company. 1.4.4 DATA ANALYSIS TOOLS AND TECHNIQUES The various tools used for collecting the data are as follows:  Questionnaire Questionnaires refer to forms filled in by respondents alone. Questionnaires were handed to the respondents in field and ask them to fill it. This method can be adopted for the entire population or sampled sectors.  Observation Observation is either an activity of a living being, such as a human, consisting of receiving knowledge of the outside world through the senses, or the recording of data using
  • 7. A study on employeemotivation atprabhuram mills 7 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com scientific instruments. The term may also refer to any data collected during this activity. An observation can also be the way you look at things or when you look at something.  Interviews In interviews information is obtained through inquiry and recorded by enumerators. Structured interviews are performed by using survey forms. The interviewer in one-to-one conversation collects detailed personal information from individuals using oral questions. 1.4.5 STATISTICAL ANALYSIS “Statistical Analysis” is a process of inspecting, cleaning, transforming, and modeling data with the goal of highlighting useful information, suggesting conclusions, and supporting decision. The tool for analyzing the data is used for the study is: 1) Percentage method Percentage method The percentage is used for making comparison between two or more series of data. It is used to classify the opinion of the respondent for different factors. It is calculated as Percentage: Number of observations Total number of observations X 100
  • 8. A study on employeemotivation atprabhuram mills 8 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 1.5 DURATION OF THE STUDY The project was a detailed study on the topic “Study On Employee Motivation” was successfully completed within the time period of Two Weeks with the guidance and support from the project guide. 1.6 LIMITATIONS OF THE STUDY  The study was limited up to a number of employees and does not collect adequate information.  Incomplete response from the respondents was a major limitation.  Some employees were not ready to cooperate in completing the interview.  Lack of time period was another limitation of the study.  Data was collected only from the permanent workers.  The survey was done during the working hours.  Illiteracy of the respondents, during the data collection using questionnaire. .
  • 9. A study on employeemotivation atprabhuram mills 9 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 2.1 REVIEW OF LITERATURE MOTIVATION Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to actions to accomplish the goals. In the work goal context the psychological factors stimulating the people’s behaviour can be • desire for money • success • recognition • job-satisfaction • team work, etc One of the most important functions of management is to create willingness amongst the employees to perform in the best of their abilities. Therefore the role of the leader is to arouse interest in performance of employees in their jobs. The process of motivation consists of three stages: 1. A felt need or drive 2. A stimulus in which needs have to be aroused 3. When needs are satisfied, the satisfaction or accomplishment of goals. Therefore, we can say that motivation is a psychological phenomenon which means needs and wants of the individuals have to be tackled by framing an incentive plan. In most organizations, it is common to hear the refrain that a particular employee is not motivated and hence his or her performance has taken a backseat. This is the reason companies spend humungous amounts of money in arranging for training sessions and recreational events to motivate the employees. Motivation can be understood as the desire or drive that an individual has to get the work done. For instance, when faced with a task, it is the motivation to accomplish it that determines whether a particular individual would complete the task according to the requirements or not. Further, the absence of motivation leads to underperformance and loss of competitiveness resulting in loss of productive resources for
  • 10. A study on employeemotivation atprabhuram mills 10 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com the organization. It is for this reason that the HR managers stress on the employees having high levels of motivation to get the job done. VANCE : “Motivation implies any emotion or desire which so conditions one’s will that the individual is properly lead into action.” Motivation refers to a complexity of forces inspiring a person at work to intensify his desire and willingness to use his/ her potentialities to perform in order to achieve organizational objectives. (Mile, 2004) It actually refers to conditions which influence the arousal, direction and maintenance of behavior relevant in working setting. The motivational force is aroused as a result of needs, which have to be satisfied.(Kootz et al., 1990) Motivation of employees is an important inter control tool and should therefore be adhered to in order to attain advantages like increased employee commitment, increased productivity and efficiency. Motivation emphasizes result oriented management through setting of smart objectives and effective communication systems in an organization. Definition of Motivation : According to Michael J. Jacius ; Motivation is the act of stimulating someone or oneself to get a desired course of action or to push the right button to get a desired reaction. According to Dalton E. McFarland, "The concept of motivation is mainly psychological. It related to those forces are many and keep on changing with time motives are invisible and directed towards certain goals. Balunywa, T. (2005) defines motivation as the inducement of a desired behavior with in subordinates with a view of channeling their efforts and activity to achieve an organization’s goals. He adds that it’s an internal drive to satisfy an unsatisfied need in an organization and is also known as an incentive action. Traditionally, motivation has been defined by the two dimensions that comprise it namely, energy and direction (Deci, 1980; Deci & Ryan, 1985; Roberts, 1992). The energy dimension of motivation is the driving force behind someone’s effort and persistence during engagement in a particular activity. Direction of motivation determines the area or field of interest in which that effort is projected. Both are necessary elements of a complete motivational act. Energy without direction has no purpose, and direction without energy results in a state of motivation.
  • 11. A study on employeemotivation atprabhuram mills 11 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com TECHNIQUES OF MOTIVATION 1. Financial incentives: First techniques of motivation are financial incentives as money is indicator of success. Therefore it fulfills psychological safety and status need as people satisfy their needs by money. Wages, salary motivates employees to perform better 2. Job enlargement: Under this technique, task assigned to do job are increased by adding simile task. So the scope of job enlargement is high for the motivation of subordinates. It is also known as horizontally leading of job. 3. Job enrichment: Under this technique jobs are made challenging and meaningful by increasing responsibility and growth opportunities. In such technique of motivation, planning and control responsibility are added to the job usually with less supervision and more self evaluation. It is also called vertical leading 4. Job rotation It refers to shifting an employee from one job to another. Such job rotation doesn’t mean hanging of their job but only the employees are rotated. By this it helps to develop the competency in several job which helps in development of employees. 5. Participation: Participation refers to involvement of employee in planning and decision making .it helps the employees feel that they are an asset of the organization which helps in developing ideas to solve the problems 6. Delegation of authority:
  • 12. A study on employeemotivation atprabhuram mills 12 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Delegation of authority is concerned with the granting of authority to the subordinates which helps in developing a feeling of dedication to work in an organization because it provides the employees high morale to perform any task 7. Quality of work life: It is the relationship between employees’ and the total working environment of organization. It integrates employee needs and well being with improves productivity, higher job satisfaction and great employee involvement. It ensures higher level of satisfaction. 8. Management by objectives: It is used as a motivation and technique for self control of performance. By this technique superior and subordinates set goals and each individual subordinates responsibilities clearly defined which help to explore the sill and use in the organization effectively. 9. Behavior modification: The last technique of motivation is behavior modification. It develops positive motivation to the workers to do the work in desired behavior in order to modify behavior. IMPORTANCE OF MOTIVATION Motivation is a very important for an organization because of the followingbenefits it provides:- 1.Puts human resources intoaction Every concernrequires physical, financial and human resources to accomplishthe goals. It is through motivation that the human resources canbe utilizedby making full use of it. This can be done by building willingness in employees to work. This will help the enterpriseinsecuringbest possible utilizationof resources. 2. Improves level ofefficiencyofemployees The level of a subordinate or a employee does not onlydepend upon his qualifications and abilities. For gettingbest of his work performance, the gap betweenability and
  • 13. A study on employeemotivation atprabhuram mills 13 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com willingness has to be filledwhich helps in improving the level of performance of subordinates. This will result into- a. Increase in productivity, b. Reducing cost of operations, and c. Improving overall efficiency. 3. Leads to achievement oforganizational goals The goals of an enterprise canbe achieved only when the followingfactors take place:- a. There is best possible utilizationof resources, b. There is a co-operative work environment, c. The employees are goal-directedandthey act in a purposive manner, d. Goals can be achieved if co-ordinationand co-operationtakes place simultaneously which can be effectivelydone throughmotivation. 4. Buildsfriendlyrelationship Motivationis an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This couldinitiate the followingthings: a. Monetaryand non-monetaryincentives, b. Promotionopportunitiesfor employees, c. Disincentives for inefficient employees. In order to build a cordial, friendlyatmosphere ina concern, the above steps shouldbe taken by a manager. 5. Motivation results inreductioninresistanceto change Motivated employees will accept changes that are introduced for the betterment of the organization, which will in turn facilitate in their own advancement. If the employees are not well motivated, they may resist the change.
  • 14. A study on employeemotivation atprabhuram mills 14 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 6. Reduction in employee’s turnover Motivationcreates confidenceinthe workers and the work force will be loyal to the organization. It will reduce turnover and absenteeism. There will be stabilityin the work force. Workerswill not leave the organizationfor simple reasons. 7. Motivation will create better organization image An enterprise which offer incentives and better facilitates have good image in the employment market. Such enterprises attract qualified and experienced persons. THEORIES OF MOTIVATION 1. Maslow’s Hierarchy of Needs Theory:- Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943. This theory is a classical depiction of human motivation. This theory is based on the assumption that there is a hierarchy of five needs within each individual. The urgency of these needs varies. These five needs are as follows- Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In other words, physiological needs are the needs for basic amenities of life. Safety needs- Safety needs include physical, environmental and emotional safety and protection. For instance- Job security, financial security, protection from animals, family security, health security, etc. Social needs- Social needs include the need for love, affection, care, belongingness, and friendship. Esteem needs- Esteem needs are of two types: internal esteem needs (self-respect, confidence, competence, achievement and freedom) and external esteem needs (recognition, power, status, attention and admiration).
  • 15. A study on employeemotivation atprabhuram mills 15 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Self-actualization need- This include the urge to become what you are capable of becoming what you have the potential to become. It includes the need for growth and self-contentment. It also includes desire for gaining more knowledge, social- service, creativity and being aesthetic. The self actualization needs are never fully satiable. As an individual grows psychologically, opportunities keep cropping up to continue growing. According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs is significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the five needs into two categories -Higher-order needs and Lower-order needs. The physiological and the safety needs constituted the lower-order needs. These lower-order needs are mainly satisfied externally. The social, esteem, and self-actualization needs constituted the higher order needs. These higher-order needs are generally satisfied internally, i.e., within an individual. Thus, we can conclude that during boom period, the employees lower-order needs are significantly met. Implications of Maslow’s Hierarchy of Needs Theory for Managers 1. As far as the physiological needs are concerned, the managers should give employees appropriate salaries to purchase the basic necessities of life. Breaks and eating opportunities should be given to employees. 2. As far as the safety needs are concerned, the managers should provide the employees job security, safe and hygienic work environment, and retirement benefits so as to retain them. 3. As far as social needs are concerned, the management should encourage teamwork and organize social events. 4. As far as esteem needs are concerned, the managers can appreciate and reward employees on accomplishing and exceeding their targets. The management can give the deserved employee higher job rank / position in the organization. 5. As far as self-actualization needs are concerned, the managers can give the employees challenging jobs in which the employees’ skills and competencies are fully utilized. Moreover, growth opportunities can be given to them so that they can reach the peak. The managers must identify the need level at which the employee is existing and then those needs can be utilized as push for motivation. Limitations of Maslow’s Theory it is essential to
  • 16. A study on employeemotivation atprabhuram mills 16 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com note that not all employees are governed by same set of needs. Different individuals may be driven by different needs at same point of time. It is always the most powerful unsatisfied need that motivates an individual. The theory is not empirically supported. The theory is not applicable in case of starving artist as even if the artist’s basic needs are not satisfied, he will still strive for recognition and achievement 2. ERG Theory of Motivation:- To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of motivation. He recategorized Maslow’s hierarchy of needs into three simpler and broader classes of needs: Existence needs- These include need for basic material necessities. In short, it includes an individual’s physiological and physical safety needs. Relatedness needs- These include the aspiration individual’s have for maintaining significant interpersonal relationships (be it with family, peers or superiors), getting public fame and recognition. Maslow’s social needs and external component of esteem needs fall under this class of need. Growth needs- These include need for self-development and personal growth and advancement. Maslow’s self-actualization needs and intrinsic component of esteem needs fall under this category of need. The significance of the three classes of needs may vary for each individual. Difference between Maslow Need Hierarchy Theory and Alderfer’s ERG Theory:• ERG Theory states that at a given point of time, more than one need may be operational • ERG Theory also shows that if the fulfillment of a higher-level need is subdued, there is an increase in desire for satisfying a lower-level need. • According to Maslow, an individual remains at a particular need level until that need is satisfied. While according to ERG theory, if a higher- level need aggravates, an individual may revert to increase the satisfaction of a lower- level need. This is called frustration- regression aspect of ERG theory. For instance- when growth need aggravates, then an individual might be motivated to accomplish the relatedness need and if there are issues in accomplishing relatedness needs, then he might be motivated by the
  • 17. A study on employeemotivation atprabhuram mills 17 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com existence needs. Thus, frustration/aggravation can result in regression to a lower-level need. • While Maslow’s need hierarchy theory is rigid as it assumes that the needs follow a specific and orderly hierarchy and unless a lower-level need is satisfied, an individual cannot proceed to the higher-level need; ERG Theory of motivation is very flexible as he perceived the needs as a range/variety rather than perceiving them as a hierarchy. According to Alderfer, an individual can work on growth needs even if his existence or relatedness needs remain unsatisfied. Thus, he gives explanation to the issue of “starving artist” who can struggle for growth even if he is hungry. Implications of the ERG Theory Managers must understand that an employee has various needs that must be satisfied at the same time. According to the ERG theory, if the manager concentrates solely on one need at a time, this will not effectively motivate the employee. Also, the frustration- regression aspect of ERG Theory has an added effect on workplace motivation. 3. Herzberg’s Two-Factor Theory of Motivation:- In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the motivator hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”. Fredrick Hertz (1959), the two-factor theory also known as the hygiene theory, where he referred to satisfiers as motivators, dissatisfies as hygiene factors. He found out that motivators were related to job experience and dissatisfies related to environmental conditions. These are classified in the table below. Table 1: Motivation satisfiers and dis-satisfiers. Motivators(satisfiers) Maintenance factor (dis-satisfier) Challenging work Status Achievement Interpersonal relations Growth of the job Quality supervision Responsibility Company policy Advancement Working condition
  • 18. A study on employeemotivation atprabhuram mills 18 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Recognition Salary Herzberg’s view of satisfaction and dissatisfaction Herzberg classified these job factors into two categories: 1. Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at workplace. These do not lead to positive satisfaction for long-term. But if these factors are absent / if these factors are non-existent at workplace, then they lead to dissatisfaction. In other words, hygiene factors are those factors which when adequate/reasonable in a job, pacify the employees and do not make them dissatisfied. These factors are extrinsic to work. Hygiene factors are also called as dissatisfies or maintenance factors as they are required to avoid dissatisfaction. These factors describe the job environment/scenario. The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include:  Pay - The pay or salary structure should be appropriate and reasonable. It must be equal and competitive to those in the same industry in the same domain.  Company Policies and administrative policies - The company policies should not be too rigid. They should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc.  Fringe benefits - The employees should be offered health care plans (medical claim), benefits for the family members, employee help programmes, etc.  Physical Working conditions - The working conditions should be safe, clean and hygienic. The work equipments should be updated and well-maintained.  Status - The employees’ status within the organization should be familiar and retained.  Interpersonal relations - The relationship of the employees with his peers, superiors and subordinates should be appropriate and acceptable. 2. Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction. These factors are inherent to work. These
  • 19. A study on employeemotivation atprabhuram mills 19 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com factors motivate the employees for a superior performance. These factors are called satisfiers. These are factors involved in performing the job. Employees find these factors intrinsically rewarding. The motivators symbolized the psychological needs that were perceived as an additional benefit. Motivational factors include: - The employees should be praised and recognized for their accomplishments . by the managers - The employees must have a sense of achievement. This depends. - There must be growth and advancement opportunities in an organization to motivate the employees to perform well. - The employees must hold themselves responsible for the work. The managers should give them ownership of the work. They should minimize control but retain accountability. - The work itself should be meaningful, interesting and challenging for the employee to perform and to get motivated. Limitations of Two-Factor Theory the two factor theory is not free from limitations: -factor theory overlooks situational variables. h conducted by Herzberg stressed upon satisfaction and ignored productivity. the theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analyzing same response in different manner. comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job. employees when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship. Also, the employees will give credit to themselves for the satisfaction factor at work.
  • 20. A study on employeemotivation atprabhuram mills 20 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor theory is acceptable broadly. Implications of Two-Factor Theory The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better. This theory emphasize upon job-enrichment so as to motivate the employees. The job must utilize the employee’s skills and competencies to the maximum. Focusing on the motivational factors can improve work-quality. 4. Expectancy Theory of Motivation:- The expectancy theory was proposed by Victor Vroom of Yale School of Management in 1964. Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and Herzberg. The theory states that the intensity of a tendency to perform in a particular manner is dependent on the intensity of an expectation that the performance will be followed by a definite outcome and on the appeal of the outcome to the individual. The Expectancy theory states that employee’s motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). In short, Valence is the significance associated by an individual about the expected outcome. It is an expected and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced by factors such as possession of appropriate skills for performing the job, availability of right resources, availability of crucial information and getting the required support for completing the job. Instrumentality is the faith that if you perform well, then a valid outcome will be there. Instrumentality is affected by factors such as believe in the people who decide who receives what outcome, the simplicity of the process deciding who gets what outcome, and clarity of relationship between performance and outcomes. Thus, the expectancy theory concentrates on the following three relationships: • Effort-performance relationship: What is the likelihood that the individual’s effort be recognized in his performance appraisal?
  • 21. A study on employeemotivation atprabhuram mills 21 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com • Performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards. • Rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual Vroom was of view that employees consciously decide whether to perform or not at the job. This decision solely depended on the employee’s motivation level which in turn depends on three factors of expectancy, valence and instrumentality. Advantages of the Expectancy Theory -interest individual who want to achieve maximum satisfaction and who wants to minimize dissatisfaction. immaterial. -offs. maximum pleasure and least pain. Limitations of the Expectancy Theory high degree correlation between performance and rewards. d as reward is not directly correlated with performance in many organizations. It is related to other parameters also such as position, effort, responsibility, education, etc. 5. Theory X and Theory Y:- In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human behaviour at work, or in other words, two different views of individuals (employees): one of which is negative, called as Theory X and the other is positive, so called as Theory Y.
  • 22. A study on employeemotivation atprabhuram mills 22 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com According to McGregor, the perception of managers on the nature of individuals is based on various assumptions. Assumptions of Theory X An average employee intrinsically does not like work and tries to escape it whenever possible. the employee does not want to work, he must be persuaded, compelled, or warned with punishment so as to achieve organizational goals. A close supervision is required on part of managers. The managers adopt a more dictatorial style. Many employees rank job security on top, and they have little or no aspiration/ ambition. Employees resist change. An average employee needs formal direction. Assumptions of Theory Y relaxing and normal. They exercise their physical and mental efforts in an inherent manner in their jobs. use self-direction and self-control if they are dedicated and sincere to achieve the organizational objectives. commitment to organization. , he can even learn to obtain responsibility. utilized.
  • 23. A study on employeemotivation atprabhuram mills 23 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com In other words, the creativity, resourcefulness and innovative potentiality of the employees can be utilized to solve organizational problems. Thus, we can say that Theory X presents a pessimistic view of employees’ nature and behaviour at work, while Theory Y presents an optimistic view of the employees’ nature and behaviour at work. If correlate it with Maslow’s theory, we can say that Theory X is based on the assumption that the employees emphasize on the physiological needs and the safety needs; while Theory X is based on the assumption that the social needs, esteem needs and the self-actualization needs dominate the employees. McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he encouraged cordial team relations, responsible and stimulating jobs, and participation of all in decision-making process. 6. Vroom’s Expectancy Theory The expectancy theory of motivation was established by Victor Vroom with the belief that motivation is based on the expectation of desired outcomes. The theory is based on three concepts: valence, expectancy, and force. Valence is the attractiveness of potential rewards, outcomes, or incentives. Expectancy is a person’s belief that they will or will not be able to reach the desired outcome. Force is a person’s motivation to perform.] “In general, people will work hard when they think that it is likely to lead to desired organizational rewards”. 7. Locke’s Goal Theory Edwin A. Locke’s goal theory describes setting more specific goals to elicit higher performance and setting more difficult goals to increase effort. He also believed that, through employee participation in goal setting the employees would be more likely to accept the goals and have a greater job satisfaction. The goal theory’s underlying assumption is that employees who participate in goal setting will set more difficult goals for themselves and yield superior performance. The theory is logical because employees are going to set more difficult goals but the goals will be attainable with increased effort. Sometimes organizations set goals that their employees will rarely, if ever, be able to meet. If the goals are always unattainable, there is no motivation to try accomplishing them. Intrinsic And Extrinsic Motivation Motivation can be divided into two types: intrinsic (internal) motivation and extrinsic (external) motivation. Intrinsic Motivation
  • 24. A study on employeemotivation atprabhuram mills 24 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on external pressures or a desire for reward. Intrinsic motivation has been studied since the early 1970s.The phenomenon of intrinsic motivation was first acknowledged within experimental studies of animal behavior. In these studies, it was evident that the organisms would engage in playful and curiosity driven behaviors in the absence of reward. Intrinsic motivation is a natural motivational tendency and is a critical element in cognitive, social, and physical development. Students who are intrinsically motivated are more likely to engage in the task willingly as well as work to improve their skills, which will increase their capabilities. Students are likely to be intrinsically motivated if they:  attribute their educational results to factors under their own control, also known as autonomy  believe they have the skills to be effective agents in reaching their desired goals, also known as self-efficacy beliefs  are interested in mastering a topic, not just in achieving good grades. Extrinsic Motivation Extrinsic motivation refers to the performance of an activity in order to attain an outcome, whether or not that activity is also intrinsically motivated. Extrinsic motivation comes from outside of the individual. Common extrinsic motivations are rewards (for example money or grades) for showing the desired behavior, and the threat of punishment following misbehavior. Competition is in an extrinsic motivator because it encourages the performer to win and to beat others, not simply to enjoy the intrinsic rewards of the activity. A cheering crowd and the desire to win a trophy are also extrinsic incentives. Comparison Of Intrinsic And Extrinsic Motivation Social psychological research has indicated that extrinsic rewards can lead to over justification and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect, children who expected to be (and were) rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the drawing materials in subsequent observations than children who were assigned to an unexpected reward condition. However, another study showed that third graders who were rewarded with a book showed more reading behavior in the future, implying that some rewards do not undermine intrinsic motivation. While the provision of extrinsic rewards might reduce the desirability of an
  • 25. A study on employeemotivation atprabhuram mills 25 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com activity, the use of extrinsic constraints, such as the threat of punishment, against performing an activity has actually been found to increase one's intrinsic interest in that activity. In one study, when children were given mild threats against playing with an attractive toy, it was found that the threat actually served to increase the child's interest in the toy, which was previously undesirable to the child in the absence of threat. For those children who received no extrinsic reward, self-determination theory proposes that extrinsic motivation can be internalized by the individual if the task fits with their values and beliefs and therefore helps to fulfill their basic psychological needs. So we can say that motivation is an important factor which encourages persons to give their best performance and help in reaching enterprise goals. A highly motivated employee is an asset to any organization.
  • 26. A study on employeemotivation atprabhuram mills 26 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 2.1 INDUSTRY PROFILE The textile industry (known colloquially in the United Kingdom and Australia as the rag trade) is a term used for industries primarily concerned with the design or manufacture of clothing as well as the distribution and use of textiles. Prior to the manufacturing processes being mechanized, textiles were produced in the home, and excess sold for extra money. Most cloth was made from wool, cotton, or flax, depending on the era and location. For example, during the late medieval period, cotton became known as an imported fiber in northern Europe, without any knowledge of what it came from other than that it was a plant: noting its similarities to wool, people in the region could only imagine that cotton must be produced by plant-borne sheep. John Mandeville, writing in 1350, stated as fact the now-preposterous belief: "There grew there [India] a wonderful tree which bore tiny lambson the ends of its branches. These branches were so pliable that they bent down to allow the lambs to feed when they are hungry," This aspect is retained in the name for cotton in many European languages, such as German Baumwolle, which translates as "tree wool". By the end of the 16th century, cotton was cultivated throughout the warmer regions in Asia and the American. In Roman times, wool, linen and leather clothed the European population: the cotton of India was a curiosity that only naturalists had heard of, and silk, imported along the Silk Road from China, was an extravagant luxury. The use of flax fiber in the manufacturing of cloth in Northern Europe dates back to Neolithic times. Cloth was produced in the home, and the excess woven cloth was sold to merchants called clothiers who visited the village with their trains of pack-horses. Some of the cloth was made into clothes for people living in the same area and a large amount of cloth was exported.
  • 27. A study on employeemotivation atprabhuram mills 27 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com The process of making cloth depends slightly on the fiber being used, but there are three main steps: preparation of fibers for spinning, and weaving or knitting. The preparation of the fibers differs the most depending on the fiber used. Flaxrequiresretting and dressing, while wool requires carding and washing. The spinning mid weaving processes is very similar between fibers. Spinning evolved from twisting the fibers by hand, to use of a drop spindle, to a spinning wheel. Spindles or parts of them have been found in very, very old archaeological sites; they may represent one of the earliest pieces of technology available to humankind, was invented in India between 500 and 1000 AD. It reached Europe via the Middle East in the European Middle Ages. Weaving, done on a loom has been around for as lung as spinning. There are some indications that weaving was already known in the Palaeolithic. An indistinct textile impression has been found at Pavlov, Moravia. Neolithic textiles are well known from finds in pile dwellings in Switzerland. One extant fragment from the Neolithic was I found in Fayum at a site which dates to about 5000 BCE. There are many different types of looms, from a simple loom that dates back to the Vikings, to the standard floor loom. The key British industry at the beginning of the 18th century ELS the production of textiles made with wool from the large sheep-farming areas in the Midlands and across the country (created as a result of land-clearance and enclosure). Handlooms and spinning wheels were the tools of the trade of the weavers in their cottages, and this was a labour-intensive activity providing employment throughout Britain, with major centers being the West Country; Norwich and environs: and the West Riding of Yorkshire. The export trade in woolen goods accounted for more than a quarter of British exports during most of the 18th century, doubling between 1701 and 1770. Exports of the cotton industry - centered in Lancashire - had grown tenfold during this time, but still accounted for only a tenth of the value of the woolen trade. The textile industry grew out of the industrial revolution in the 18th Century as mass production of clothing became a mainstream industry. Starting with the flying shuttle in 1733 inventions was made to speed up the textile manufacturing process. In 1738 Lewis Paul and John Wyatt patented the Roller Spinning machine and the flyer-and-bobbin system. Lewis Paul invented a carding machine in 1748, and by 1764 the spinning jenny had also been invented. In1771, Richard Arkwright used watersheds to power looms for the production of
  • 28. A study on employeemotivation atprabhuram mills 28 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com cotton cloth, his invention becoming known as the water frame. In 1784, Edmund Cartwright invented the power loom. With the spinning and weaving process now mechanized, cotton mills cropped up all over the North West of England, most notably in Manchester and its surrounding towns of Ashton-Under-Lyne, Stalybridge and Dukinfield. Textile mills originally got their power from water wheels, and thus had to be situated along a river. With the invention of the steam engine, in the 1760s to 19th century, mills no longer needed to be along rivers. Post-industrial revolution Many of the cotton mills, like the one in Lowell MA, in the US originally started with the intention of hiring local farm girls for a few years. The mill job was designed to give them bit more money before they went back to the farm life. With me inflow of cheap labor from Ireland during the potato famine, the setup changed, as the girls became easily replaceable. Cotton mills were full of the loud clanking of the looms, as well as lint and cotton fiber. When the mills were first built, a worker would work anywhere from one to four looms. As the design for the loom improved so that it stopped itself whenever a thread broke, and automatically refilled the shuttle, the number of machines a worker could work increased to up to50. Originally, power looms were shuttle-operated but in the early part of the 20th century the faster and more efficient shuttle less loom came into use. Today, advances in technology have produced a variety of looms designed to maximize production for specific types of material. The most common of these are air-jet looms and water-jet looms. Industrial looms can weave at speeds of six rows per second and taster. By the later 20th century, the industry in the developed world had developed a bad reputation, often involving immigrants in illegal “sweat shops" full of people working on textile manufacturing and sewing machines being paid less than minimum wages. This trend has resulted due to attempt to protect existing industries which are being .challenged by developing countries in South East Asia, the Indian subcontinent and more recently, Central America. Whilst globalization has seen the manufacturing outsourced to overseas labor markets there has been a trend for the areas historically associated with the trade to shift focus to the more white collar associated industries of fashion design, fashion modeling and retail. Elements of the Industrial Revolution
  • 29. A study on employeemotivation atprabhuram mills 29 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com The commencement of the Industrial Revolution is closely linked to a small number of innovations, made in the second half of the 18th century:  Textiles Cotton spinning using Richard Arkwright's water frame, James Hargreaves's Spinning Jenny, and Samuel Crompton's Spinning Mule (a combination of the Spinning Jenny and the Water Frame). This was patented in 1769 and so came out of patent in 1783. The end of the patent was rapidly followed by the erection of many cotton mills. Similar technology was subsequently applied to spinning worsted yarn for various textiles and flax for linen.  Steam power The improved steam engine invented by James Watt and patented in 1775 was initially mainly used for pumping out mines, but from the 1780s was applied to power machines. This enabled rapid development of efficient semi-automated factories on a previously unimaginable scale in places where waterpower was not available.  Iron founding In the Iron industry, coke was finally applied to all stages of iron smelting, replacing Charcoal. This had been achieved much earlier for lead and copper as well as for producing pig iron in ablest furnace, but the second stage in the production of bar iron depended on the use of potting and stamping (for which a patent expired in 1786) or puddling (patented by Henry Cort in 1783 and 1784). These represent three 'leading sectors', in which there were key innovations, which allowed the economic take off by which the Industrial Revolution is usually defined. This is not to belittle many other inventions, particularly in the textile industry. Without some earlier ones, such as the spinning jenny and flying shuttle in the textile industry and the smelting of pig iron with coke, these achievements might have been impossible. Later inventions such as the power loom and Richard Trevithick's high pressure steam engine were also important in the growing industrialization of Britain. The application of steam engines to powering cotton mills and ironworks enabled these to be built in places that were most convenient because other resources were available, rather than where there was water to power a watermill.
  • 30. A study on employeemotivation atprabhuram mills 30 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com In the textile sector, such mills became the model for the organization of human labour in factories, epitomized by Cotton polis, the name given to the vast collection of cotton mills, factories and administration offices based in Manchester. The assembly line system greatly improved efficiency, both in this and other industries. With a series of men trained to do a single task on a product, then having it moved along to the next worker, the number of finished goods also rose significantly. Industry and Invention The reasons for this succession of events are interlinked. Partly through good fortune and partly through conscious effort, Britain by the early 18thcentury possessed the combination of skills, social needs and social resources needed for commercially successful innovation and a social system capable of sustaining the processes of rapid technological change once they had started. Before the 1760s, textile production was a cottage industry using mainly flax and wool. In a typical house the girls and women could make enough yarn for the man's loom. The knowledge of textile production had existed for centuries, and the manual methods had been adequate to provide enough cloth. Cotton started to be imported and the balance of demand and supply was upset. Two systems had developed far spinning: the Simple Wheel, which used tin intermittent process and the more refined Saxony wheel which drove a differential spindle and flyer with heck, in a continuous process. But neither of these wheels could produce enough thread for the looms after the invention by John Kay of the flying shuttle (which made the loom twice as productive). The first moves towards manufactories called mills were made in the spinning sector and until the 1820 cotton, wool and worsted was spun in mills, and this yarn went to outworking weavers who continues to work in their own homes. Early Inventions
  • 31. A study on employeemotivation atprabhuram mills 31 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com In 1734 in Bury. Lancashire, John Kay invented the flying shuttle — one of the first of a series of inventions associated with the cotton industry. The flying shuttle increased the width of cotton cloth and speed of production of a single weaver at a loom. Resistance by workers to the perceived threat to jobs delayed the widespread introduction of this technology, even though the higher rate of production generated an increased demand for spun cotton. Shuttles in 1738, Lewis Paul (one of the community of Huguenot weavers that had been driven out of France in a wave of religious persecution) settled in Birmingham and with John Wyatt, of that town, they patented the Roller Spinning machine and the flyer-and-bobbin system, for drawing wool to a more even thickness. Using two sets of rollers that travelled at different speeds yarn could be twisted and spun quickly and efficiently. This was later used in the first cotton spinning mill during the Industrial Revolution. 1742: Paul and Wyatt opened a mill in Birmingham which used their new rolling machine powered by donkey; this was not profitable and was soon closed. 1743: A factory opened] in Northampton, fifty spindles turned on five of Paul and Wyatt's machines proving more successful than their first mill. This operated until1764. 1748: Lewis Paul invented the hand driven carding machine. A coat of wire slips were placed around a card which was then wrapped around a cylinder. Lewis's invention was later developed and improved by Richard Arkwright and Samuel Crompton, although this came about under great suspicion after a fire at Daniel Bourns’ factory in Leominster which specifically used Paul and Wyatt's spindles. Bourn produced a similar patent in the same year. 1758: Paul and Wyatt based in Birmingham improved their roller spinning machine 'and look out a second patient. Richard Arkwright later used this as the model for his water frame. In 1761, the Duke of Bridgewater's canal connected Manchester to the coal fields of Worsley and in 1762, Matthew Boulton opened the Soho Foundry engineering works in Hands worth, Birmingham. His partnership with Scottish engineer James Watt resulted, in 1775, in the commercial production of the more efficient Watt steam engine which used a separate condensor.
  • 32. A study on employeemotivation atprabhuram mills 32 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com In 1764, James Hargreaves is credited as inventor of the spinning jenny which multiplied the spun thread production capacity of a single worker — initially eightfold and subsequently much further. Others credit the original invention to Thomas Highs. Industrial unrest and a failure to patent the invention until 1770 forced Hargreaves from Blackburn, but his lack of protection of the idea allowed the concept to be exploited by others. As a result, there were over 20,000 Spinning Jennies in use by the time of his death. Again in 1764, Thorp Mill, the first water-powered cotton mill in the world was constructed at Royton, Lancashire, England. It was used for carding cotton. Arkwright's Cromford Mill Richard Arkwright used waterwheels to power textile machinery. His first spinning mill, Cromford Mill, Derbyshire, was built in 1771. It contained his invention the water frame. Frame is another name for the machinery for spinning or weaving. The water frame was developed from the spinning frame that Arkwright had developed with (a different) John Kay, from Warrington. The original design was again claimed by Thomas Highs, which he claimed he had patented in 1769. Initial attempts at driving the frame had used horse power, but the innovation of using a waterwheel demanded a location with a ready supply of water, hence the mill at Cromford. This mill is preserved as part of the Derwent Valley Mills in some ways it was modeled on Matthew Boulton and John Fothergill's Soho Manufactory. Arkwright protected his investment from industrial rivals and potentially disruptive workers. He generated jobs and constructed accommodation for his workers; this led to a sizeable industrial community. Arkwright expanded his operations to other parts of the country. Samuel Crompton of Bolton combined elements of the spinning jenny and water frame in 1779, creating the spinning mule. This mule produced a stronger thread than the water frame could. Thus in 1780, there were two viable hand operated spinning system that could be easily adapted to run by power of water. As early mules were suitable for producing yarn for use in the manufacture of muslin, and which were known as the muslin wheel or the Hall i’th’ Wood (pronounced Hall-ith-wood) wheel. As with Kay and Hargreaves, Crompton was not able lo exploit his invention for his .own profit, and died a pauper. In 1783 a mill was built in Manchester at Shude hill, at the highest point in the city away from the river. Shude hill Mill was powered by a 30 ft diameter waterwheel. Two storage ponds were built, and the water from one passed from one to the other turning the wheel. A
  • 33. A study on employeemotivation atprabhuram mills 33 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com steam driven pump returned the water to the higher reservoir. The steam engine was of the atmospheric type. An improvement devised by Joshua Wrigley, trialled in Chorlton-upon- Medlock used two Savery engines to supplement the river in driving on overshot waterwheel. In 1784, Edmund Cartwright invented the power loom, and produced a prototype in the following year. His initial venture to exploit this technology failed, although his advances were recognized by others in the industry. Others such as Robert Grimshaw (whose factory was destroyed in 1790 as part of the growing reaction against the mechanization of the industry) and Austin [51 - developed the ideas further. In 1803, William Radcliffe invented the dressing frame which was patented under the name of Thomas Johnson which enabled power looms to operate continuously. INDIAN TEXTILE INDUSTRY The Indian textile industry has a significant presence in the economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. It contributes 20 percent of industrial production, 9percent of excise collections, and 18 percent of employment in the industrial sector, nearly 20 percent to the countries total export earning and 4 percent to the Gross Domestic Product. In human history, past and present can never ignore the importance of textile in a civilization decisively affecting its destinies, effectively changing its social scenario. A brief but thoroughly researched feature on Indian textile culture. HISTORY OF TEXTILE INDUSTRY India has been well known for her textile goods since very ancient times. The traditional textile industry of India was virtually decayed during the colonial regime. However, the modern textile industry took birth in India in the early nineteenth century when the first textile mill in the country was established at fort gloster near Calcutta in 1818. The cotton textile industry, however, made its real beginning in Bombay, in 1850s. The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in
  • 34. A study on employeemotivation atprabhuram mills 34 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com overseas and internal trade. Indeed, the vast majority of the early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at home and Chinese and African markets. The first cotton mill in Ahmadabad, which was eventually to emerge as a rival centre to Bombay, was established in 1861, the spread of the textile industry to Ahmadabad was largely due to the Gujarati trading class. The cotton textile industry made rapid progress in the second half of the nineteenth century and by the end of the century there were 178 cotton textile mills: but during the year 1900 the cotton textile industry was in bad state due to the great famine and a number of mills of Bombay and Ahmadabad were to be closed down for long periods. The two world War and the Swadeshi movement provided great stimulus to the Indian cotton textile industry. However, during the period 1922 to 1937 the industry was in doldrums and during this period a number of the Bombay mills changed hands. The Second World War, during which textile import from Japan completely stopped, however, brought about an unprecedented growth of this industry. The number of mills increased from 178 with 4.05 lakh looms in 1901 to 249 mills with 13,35 lakhs looms in 1921 and further to 396 mills with over 20 lakh looms in 1941. By 1945 there were 417 mills employing 5.10 lakh workers. The cotton textile industry is rightly described as a Swadeshi industry because it was developed with indigenous entrepreneurship and capital and in the pre-independence era the Swadeshi movement stimulated demand for Indian textile in the country. The partition of the country at the time of independence affected the cotton textile industry also. The Indian union got 409 out of the 423 textiles mills of the undivided India. 14 mills and 22 percent of the land under cotton cultivation went to Pakistan. Some mills were closed down for some time. For a number of years since independence. Indian mills had to import cotton from Pakistan and other countries. After independence, the cotton textile industry made rapid strides under the Plans. Between 1951 and 1982 the total number of spindles doubled from 11 million to 22 million. It increased further to well over 26 million by 1989- 90. CURRENT POSSITION OF TEXTILE INDUSTRY IN INDIA Textile constitutes the single largest industry in India. The segment of the industry daring the year 2009-10 has been positive. The production of cotton declined from 156 lakh bales in
  • 35. A study on employeemotivation atprabhuram mills 35 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 2007-2008 to 1.40 lakh bales during 2000-01. Production of man-made fiber increased from 835 million kgs in 2007-2008to 904 million kgs during theear 2000-01 registering a growth of 8.26%. The production of spun yarn increased to 3160 million kgs during 2000-01 from 3046 million kgs during 2007-2008registeringagrowth of3.7%. The production of man-made filament yarn registered a growth of2.91% during the year 2007-2008increasing from 894 million kgs in 920 million kgs. the production of fabric registered a growth of 2.7% during the year 2007-2008increasing from 39,208 million sq mtrs to 40,256 million sq mtrs. The production of mill sector declined by 2.6% while production of handloom, power loom and hosiery sector increased by 2%, 2.7% and 5.1% respectively. The exports of textiles and garments increased from Rs. 455048 million to Rs.552424 million, registering a growth of 21%. Growth in the textile industry in the year 2003-2004 was Rs.1609 billion. And during 2009-10production of fabrics touched a peak of 45.378 million square meters. In the year; 2008-09 up to November, production of fabrics registered a further growth of 9 percent over the corresponding period of the previous year. With the growing awareness in the industry of its strengths and weakness and the need for exploiting the opportunities and averting threats, the government has initiated many policy measures as follows. The Technology Up gradation Fund Scheme (TUFS) was launched in April 99 to provide easy access to capital for technological up gradation by various segments of the Industry. The Technology Mission on Cotton (TMC) was launched in February 2009 to address issues relating to the core fiber of Cotton like low productivity, contamination, obsolete ginning and pressing factories, lack of storage facilities and marketing infrastructure. A New Long Term Textiles and Garments Export Entitlement (Quota) Policies 2009-2010 was announced for a period of five years with effect from 1.1.2009 to31.12.2010 covering the remaining period of the quota regime. FUTURE PROSPECTS The future outlook for the industry looks promising, rising income levels in both urban and rural markets will ensure a rising market for the cotton fabrics considered a basic need in the realm of new economic reforms (NER) proper attention has been given to the development of the textiles industry in the Tenth plan. Total outlay on the development of textile industry as envisaged in the tenth plan is fixed at Rs.1980 crore. The production targets envisaged in the terminal year of the Tenth plan are 45,500 million sq.meters of cloth 4,150 million kg of spun yarn and 1,450 million kg of manmade filament yarn. The per capita availability of cloth
  • 36. A study on employeemotivation atprabhuram mills 36 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com would be 28.00 sq meters by 2009-2010 as compared to 23.19 sq meters in 2007- 08 showing a growth of 3.19 percent. The export target of textiles and apparel is placed at $32 billion by 2009-2010 and $50 billion by2012. STRUCTURE OF INDIAS TEXTILE INDUSTRY The textile sector in India is one of the world’s largest. The textile industry today is divided into three segments: 1. Cotton Textiles 2. Synthetic Textiles 3. Other like Wool, Jute, Silk etc. All segments have their own place but even today cotton textiles continue to dominate with 73% share. The structure of cotton textile industry is very complex with coexistence of oldest technologies of hand spinning and hand weaving with the most 'sophisticated automatic spindles and loom. The structure of the textile industry is extremely complex with the modern, sophisticated and highly mechanized mill sector on the one hand and hand spinning and hand weaving (handloom sector) on the other in between falls the decentralised small scale power-loom sector. Unlike other major textile-producing countries, India textile industry is comprised mostly of small-scale, nonintegrated spinning, weaving, finishing, and apparel-making enterprises. This unique industry structure is primarily a legacy of government policies that have promoted labor-intensive, small-scale operations and discriminated against larger scale firms:  Composite Mills Relatively large-scale mills that integrate spinning, weaving and sometimes, fabric finishing are common in other major textile-producing countries. In India however these types of mills now account for about only 3 percent of output in the textile sector. About 276 composite mills are now operating in India, most owned by the public sector and many deemed financially sick. In 2008-2009 composite mills that produced 1434 m.sq mts of cloth. Most of these mills are located in Gujarat and Maharashtra.  Spinning
  • 37. A study on employeemotivation atprabhuram mills 37 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Spinning is the process of converting cotton or manmade fiber into yarn to be used for weaving and knitting. This mills chiefly located in North India. Spinning sector is technology intensive and productivity is affected by the quality of cotton and the cleaning process used during ginning. Largely due to deregulation beginning in the mid-1980s, spinning is the most consolidated and technically efficient sector in India’s textile industry. Average plant size remains small, however, and technology outdated, relative to other major producers. In 2002/03, India’s spinning sector consisted of about 1,146 small-scale independent firms and 1,599 larger scale independent units.  Weaving and Knitting The weaving and knits sector lies at the heart of the industry. In 2009-10, of the total production from the weaving sector, about 46 percent was cotton cloth, 41 percent was 100% non-cotton including khadi, wool and silk and 13 percent was blended cloth. Three distinctive technologies are used in the sector hand looms, power loom sand knitting machines. Weaving and knitting converts cotton, manmade, or blended yarns into woven or knitted fabrics. India’s weaving and knitting sector remains highly fragmented, small-scale, and labour- intensive. This sector consists of about 3.9 million handlooms, 380,000 power loom enter- prises that operate about 1.7 million looms, and just 137,000 looms in the various composite mills. Power looms are small firms, with an average loom capacity of four to five owned by independent entrepreneurs or weavers. Modern shuttle less looms account for less than 1 percent of loom capacity.  Fabric Finishing Fabric finishing (also referred to as processing), which includes dyeing, printing and other cloth preparation prior to the manufacture of clothing, is also dominated by a large number of independent, small-scale enterprises. Overall, about 2,300 processors are operating in India, including about 2,100 independent units and 200 units that are integrated with spinning, weaving, or knitting units.  Clothing
  • 38. A study on employeemotivation atprabhuram mills 38 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Apparel is produced by about 77,000 small-scale units classified as domestic manufacturers, manufacturer exporters, and fabricators (subcontractors). INDIA’S MAJOR COMPETITIORS IN THE WORLD To understand India’s position among other textile producing the industry contributes 9% of GDP and 35% of foreign exchange earnings, India’s share in global exports is only 3% compared to Chinas 13.75% percent. In addition to China, other developing countries are emerging as serious competitive threats to India. Looking, at export shares. Korea (6%) and Taiwan (5.5%) are ahead of India, while Turkey (2.9%) has already caught up and others like Thailand (2.3%) and Indonesia (2%) are not much further behind. The reason for this development is the fact that India lags behind these countries in investment levels, technology, quality and logistics. If India were competitive in some key segments it could serve as a basis for building a modern industry, but there is no evidence of such signs, except to some extent in the spinning industry. EXPORT AT GLANCE A textile export plays a crucial role in the overall exports from India. Thought export friendly government policies and positive efforts by the exporting community, textile exports increased substantially from US$ 5,07 billion in 2002-03 to US$ 12.10 billion during 2009- 10. The textile export basket contributing over 46 percent of total textile export. In world Textile trade has risen to 3.1 percent in 2007-2008 as against 1.80percent in early nineties. Exports have grown at an average of 11 percent per annum over the last few years, while world textile trade has grown only about 5.4 per cent per annum in the same years. During the year 2007-08 India’s textile export was US$ 12014.4 million. It was increased the year 2008-09 USS 13038.64 million. The exports of textiles (including handicrafts, jute, and coir) formed 24.6% of total exports in 2006-2007, however this percentage decreased to 16.24% during 2008-2009. The textile exports recorded a growth of 15.3% in 2006-2007 and 8.7% in 2008-2009. Textile exports during the period of April-February 2008-2009 amounted to $11.698.5million. During 2009-10 textile export were US$ 13,039.00 million, recording a decline of 3.4% as compared to the corresponding period of previous year. However, during
  • 39. A study on employeemotivation atprabhuram mills 39 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com April-November, 2010, the textile exports have shown growth of 8.2% as compare to the corresponding period of previous year. Against a target of US$ 15,160 million during 2009- 10, the textile exports were of US$13039 million, registering a shortfall of 14% against the target. The overall export target for 2010-11 has been fixed at US$ 15,565 million. In 2010textile and garments accounted for about 16% of export earnings. India’s textile exports to the US have shown a good rise of 29.5% between January and June 2010. INVESTMENT IN TEXTILE INDUSTRY Investment is the key for Indian textiles to make rapid strides, he Vision Statement prepared by the Indian Cotton Mills federation has projected that the industry has the potential to reach a size of $85 billion by 2010 from the current level of S 36 billion. Further, the vision statement has estimated that textile exports could touch $40 billion by 2010 from S 11 billion in 2002. In the process, India’s share in the global textile and clothing trade is expected to double from three percent in 2002 to six percent by 2010.To reach these ambitious targets, it is estimated that new investment to the tune of Rs.1,40,000 crores will be needed in the next five years. After analyzing the capacity and technology levels in various segments of textile Industry and the need for modernization, funds required for various segments have been below. Sl.No. Segment Investment (Rs. in crore) 1. Ginning & Processing 1,800 2. Spinning 10,600 3. Weaving 22,950 4. Knitting 3,150
  • 40. A study on employeemotivation atprabhuram mills 40 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 5. Woven Processing 25,800 6. Knit Processing 8,550 7. Clothing 24,000 8. Jute 500 9. Silk Wool 1,200 The Multi-Fiber Agreement (MFA) The Multi-Fiber Agreement (MFA), that had governed the extent of textile trade between nations since 1962, expired on 1 January 2010. It is expected that, post-MFA, most tariff distortions would gradually disappear and firms with robust capabilities will gain in the global trade of textile and apparel. The prize is the $360 bn market which is expected to grow to about $600 bn by the year 2010 barely five years after the expiry of MFA. National Textile Policy 2000 Faced with new challenges and opportunities in a changing global trade environment the GOI unveiled its National Textile Policy 2000 (NTP 2000) on November 2, 2000. The NTP 2000 aims to improve the competitiveness of the Indian textile industry in order to attain $50 billion per year in textile and apparel exports by 2010.86. The NTP 2000 opens the country’s apparel sector to large firms and allows up to 100 percent FD1 in the sector without any export obligation.
  • 41. A study on employeemotivation atprabhuram mills 41 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 2.2. COMPANY PROFILE Prabhuram mills, a cotton spinning mill located in the industrially backward district, in Alappuzha is one of the unit of Kerala State Textile Corporation (KSTC), a government of Kerala undertaking. Site of the mill is at Kotta near Chengannur.Kotta is a remote undeveloped village in the Mulakkuzha panchayath in Chengannur, Alappuzha district. It is industrially and economically backward area. Nearly 75% of the people of this area belong to the middle and low income group. Unemployment is a ramp act of this area. Under these circumstances, steps taken for starting a spinning mill was a blessing to the natives of this area. The project received a whole-hearted co-operation of the people. They donated lands and came voluntarily to work for the construction of the two roads to the mill site. The establishment of the spinning mill at Kotta was the outcome of the first industrial policy declaration of Kerala. Before the industrial policy, Government of Kerala made a detailed techno-economic survey during 1960-61. The survey was conducted under the supervision of Sri P.S. Lokanathan. It was started in the beginning of 1960 and was completed by September 1961. The report was finalized in July 1962 contained a detailed study of the economic
  • 42. A study on employeemotivation atprabhuram mills 42 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com development of Kerala. While the survey was going on, government declared first industrial policy of Kerala on 3rd June I960. In this declaration the entrepreneurs were offered various facilities to establish industries. The industrial policy declaration attracted industrialist from outside Kerala. The policy of the government was to sanction one industry per district. The backward districts like Alappuzha were allotted two units. A renowned film actor Sri V.Sivaji Ganesan in association with Sri V.A.Muthmnanickkan, a landlord hailing from Pollachi came to know about the government policy and decided to start a spinning mill in Kerala. License was secured in the name of Sri.V.A.Muthumanickkan and SriV.Sivaji Ganesan on 12/5/1962 to start the mill in Alappuzha district. The other unit was allotted at komalapuram at Alappuzha district named Kerala spinners. An expert survey was conducted regarding the location and Kotta was found suitable for the following reasons: 1. Cheap price of land 2. Industrially backward urea 3. Possibility of continuous power supply 4. Availability of water 5. Support of local people 6. Transportation facility Kotta was an industrially backward area of Alappuzha district as such every loan facilities were availed from Kerala State Industrial Development Corporation (KSIDC) and Kerala Financial Corporation (KFC). The industries started in these areas were also eligible for subsidies from the government of India. Government of Kerala also promised adequate power supply to the newly established industries from Chengannur and Kozhencherry power houses. Kotta has no scarcity of water. Transportation and communication problems were also not there as the site was near M.C. Road and the Chengannur railway station. Climatic conditions were also highly favorable for the spinning mill. The industrialists who came from TamilNadu were interested in textile mill and applied for license under the new industrial policy. They obtained a license for 12,000 spindles which was later enhanced to a capacity of 25,000 spindles. After receiving the license the mill was incorporated under the Companies Act 1956 on 16/I1/1962. As per the memorandum of association the proposed mill was to be named as Prabhuram Mills Ltd. The name behind the Prabhuram mills is derived from Prabhu s/o
  • 43. A study on employeemotivation atprabhuram mills 43 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Sivaji Ganeshan and Ram s/o Muthumanickkan. The object for which the company was established is to purchase, prepare, gin, spin, double, fold, weave, manufacture, bleach, dye, print, or in any other way to manipulate wool, cotton, jute, linen, artificial silk, rayon, synthetic and other fibrous substances whether natural or artificial and of merchants or dealers of any of the products of any such process and to manufacture, buy, sell, and deal in connection with any of the foregoing business. It is also stated in the memorandum of association that the liabilities of the members are limited. The authorized capital stated in the memorandum of association is Fifty Five lakhs (55,00, 000). It is divided into 50,000 equity shares of 100 each and 5,000 preference shares of 100 each. In 1963 company purchased an area of land of 14.28 acres and started constructing the building in the year 1964. Machines were imported from Japan. On 17/10/1964 SivajiGaneshan one of the entrepreneurs backed off from the project due to unspecified reasons. Due to disputes between the management and shortage of funds there was no progress in the project and it came to a grinding halt. Four year later in 1969 KSIDC came to the rescue of the company, KSIDC remolded the entire project and the management set up was re-constituted. A nominee from KSIDC was also included in the board of directors. Workers were trained at Ettumanoor Kottayam Textiles in the Kottayam district. Machinery erection was started in the year 1971. Trial production started by February 1973 and commercial production started from July 1973 with 231 workers and 17 staff. Even though license was granted for 12,000 spindles, the work started with 8,160 spindles. During the starting period onwards the mill experienced financial problems because of high price in cotton. There was no corresponding increase in the price of yarn. This situation necessitated the closure of the mill on 31/10/1975. The shareholders and the workers of the mill had to engage in prolonged agitation demanding the government to revive the unit. As a result, on 9/2/1978 ministry of industries government of India took over the unit and Kerala State Textile Corporation was authorized to take over the management of the mill. Soon after the mill was declared as relief undertaking and Kerala State Textile Corporation (KSTC) was entrusted to revive the mill. By an ordinance of the governor of Kerala on 19/4/1984, this mill was acquired by the government of Kerala and transferred the same to Kerala State Textile Corporation (KSTC)
  • 44. A study on employeemotivation atprabhuram mills 44 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com with retrospective effect from 1983. The said ordinance was replaced by an Act 27 of L985”. The Kerala Sick Textiles Undertaking or Acquisition and Transfer of Undertaking Act. 1985” the mill presently produce 90scombed yarns and 100s combed yarns. OBJECTIVES OF THE COMPANY 1. Meeting commitments made lo internal and external customers. 2. Satisfaction of the customers producing qualitative products, integrity and fairness in all matters. 3. Provide an avenue for those companies who provide their product desires a dedicated and experienced management system. ORGANISATIONAL STRUCTURE OF PRABHURAM MILL Chairman & Managing Director General Manager Personnel Manager Finance Manager Technical Manager Production Manager Time Keeper (Watch & Ward) Time Keepe r (ESI & PF) Asst. Manager Quality Control Store Keeper Spinning Manager Asst. Spinning Manager Supervisor Supervisor
  • 45. A study on employeemotivation atprabhuram mills 45 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com DEPARTMENTS IN THE COMPANY 4.1. PERSONNEL DEPARTMENT 4.2. FINANCE DEPARTMENT 4.3. PRODUCTION DEPARTMENT 4.4. TECHNICAL DEPARTMENT 4.5. MARKETING DEPARTMENT 4.1. PERSONNEL DEPARTMENT Personnel department is headed by personnel manager. Time keeper prepares the worker’s wages report, salary of staff, preparation of annual leave register and forms. ESI & PF clerk will do all work connected with employees state insurance and PF and furnish details required for the recharge of personnel. Personnel Manager
  • 46. A study on employeemotivation atprabhuram mills 46 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Workers are classified into four as: 1. Permanent workers 2. Trainees 3. Casual workers 4. Badlies SELECTIO For the purpose of selection a board is constituted consisting of members from the mill and does a government representative. Top level executives are selected and appointed by Kerala Public Service Commission (KPSC). RECRUITMENT Personnel department recruits personnel according to the needs of the department. Personnel department recruits skilled and unskilled labours. It is done by G.M. in consultation with head of the department and the personnel manager. PROMOTION Promotion of personnel is done by Government and occurred by direct appointment. Promotion from lower to higher grade is subject to availability of vacancy, efficiency, suitability and seniority of the person for the higher post. Grade changes when person completes 10 working years. TRAINING
  • 47. A study on employeemotivation atprabhuram mills 47 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Personnel department provides training to every worker before he/she is posted as a permanent employee. WELFARE FUNDS Company has a welfare fund for the employees. They collect from each employee and return it to them at the time of retirement with 15% interest. It provides loan from 5,000 for meeting their financial needs. If an employee dies, one day salary of all the employees will be given to the dependents. An employee retires due to illness or accidents, half day salary of all the employees will be given. UNION MANAGEMENT RELATIONSHIP Company maintains good relation with the trade unions, more than or equal to 15 employee is required to form a union. Major trade unions in this organization are: 1. INTUC 2. CITU 3. AITUC 4. BMS 5. CMP GRIEVANCE HANDLING PROCEDURE Management is good in listening to the problems of employees and solving it. All the employees in the organization approach the management for grievance handling procedure through the union leaders at the time of conflicts between management and workers. Two or three representatives make the discussion with the management and the disputes mostly solved in a manner to both the parties. CANTEEN Company provides canteen facility to the employees to satisfy their physiological needs. The food provided at canteen is at a reduced rate. Company provides supper to night shift employees. ATTENDANCE
  • 48. A study on employeemotivation atprabhuram mills 48 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Method of entering attendance is on the basis of punched card system. Each employee is given cards according to their position. Permanent employees are given green cards, bad lies workers are given red cards and trainees are given yellow cards. RETIREMENT Retirement of employees is at the age of 58. Company provides pension to the employees. It also provides family pension also. Pension is given to the dependents of employee who died when he is in service. TRANSPORTATION Company hires a private van on contract basis for the smooth transportation of employees from destination points. It operates from nearby bus stand (Chenganur) in the morning and sending them back in the evening. Morning - 2 trips Evening - 1 trip SAFETY Safety committee provides safety measures to the workers. Committee provides ear plugs, masks and towel fix firing equipments. Shift of Employees General - 8.30 am to 4.30 pm First Shift - 7.00 am to 3.00 pm Second Shift - 3.00 pm to 11.00 pm Third Shift - 11.00 pm to 7.00 am FINANCE DEPARTMENT The major function of the finance department is to maintain and record financial transactional records and to guide the organization in a profitable manner. The working capital of the
  • 49. A study on employeemotivation atprabhuram mills 49 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com company is 60 lakhs. The authorized capital of the organization is 55 lakhs and it is wholly owned by the government of Kerala. Sources of funds for the organization are: a. Paid up capital b. Reserves & Surplus c. Secured Loans Functions of finance Department 1. Recording of day to day transactions 2. Preparing various statements regarding stock, receivables etc. which are to be submitted to various authorities like insurers, bankers, different government departments. 3. Planning and controlling of the expenses and funds for production 4. Approving and making payments to different parties, creditors, suppliers etc. 5. Receiving payments from customers, dealers etc. 6. Raising short term loans, credits from banks and other financial institutions. 7. Preparation of sales budgets, revenue budgets and expenditure budgets on a quarterly basis. 8. Preparation and maintenance of cost records 9. Preparation of fund flow and cash flow statements 10. Preparing and filing of quarterly and final income tax returns 11. Preparation and implementation of cost reduction and cost control methods 12. Conduct and co-ordinate internal and statutory audits 13. Perpetual stock valuation and asset evaluation 14. Investment analysis, feasibility study on production/supply orders received and contracts. Banking Partner The banking partner of Prabhuram Mill is state bank of Travancore (SBT), Chengannur. Department Structure Finance Manager
  • 50. A study on employeemotivation atprabhuram mills 50 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Responsibility of Finance Manager 1. Maintain Books of Accounts 2. Liaison with banks and other financial institutions 3. Liaison with government bodies and other regulatory authorities. 4. Prepare budgets and to achieve targeted turnover Responsibility of Senior Accounts Assistant 1. Right up general ledger, customer ledger, journal and related vouchers. 2. Preparation of fixed assets registers 3. Working connected with canteen accounts 4. Verifying all documents and invoices of dispatches and sales 5. Preparation of monthly, quarterly, half yearly and annual trial balance & balance sheet. 6. Other related work assigned by management from time to time.
  • 51. A study on employeemotivation atprabhuram mills 51 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Duties of Accounts Assistant 1. Preparation of all cost records and making statements and reports related to costing and management information system. 2. Renewal of insurance policies 3. Preparation of budgets and analysis of actual performance with budgeted performance. 4. Verification of staff acquaintance, wages calculation of staff and workers, advances and bonus and gratuity calculation. Duties of Clerk 1. Presentation of bank vouchers and bank books 2. Preparation of monthly cash flow and related documents 3. Writing up of creditors ledger, cotton or other purchase ledger 4. Send the returns of sales taxes, income tax and arrange remittance of that time in time. 5. Preparation of final accounts and related statements at the time of auditing. Information system used in the department The major information system used in the finance department to provide clear information regarding the accounts statement is Tally. The advanced version of Tally accounting package is used in the accounting department. The accounting package used by finance department is Tally ERP 9. Depreciation Method Company follows a straight line depreciation method for calculating depreciation for its fixed assets including land & building, plant & machinery etc. BUDGET Company prepares a projected budget for 6 months. It presents budget monthly and make amendments in the budget according to the change in trends.
  • 52. A study on employeemotivation atprabhuram mills 52 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com STATUTORY BOOKS The books of accounts maintained by the company under the companies act are: 1. Purchase Journal 2. Sales Journal 3. General Journal 4. Bank Book 5. Cash Book 1. Purchase Journal Purchase journal is used to record all the transactions relating to the purchase of raw materials, stores and consumables etc. 2. Sales Journal Sales journal is used to record all sales transactions which includes sales of the product, sales of scrap, waste materials etc. 3. General Journal General journal is used to record all non-cash transactions which include depreciation accounting, accounts related with insurance, canteen accounts etc. 4. Bank Book Bank book is used to record all transitions related with bank. It includes cheque issued to customers, cheque received from customers, overdraft taken from bank, deposits made in the bank, interest paid for loan etc. Purchase Journal Sales Journal General Journal Bank Book Cash Book Statutory Book
  • 53. A study on employeemotivation atprabhuram mills 53 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 5. Cash Book All cash transactions are recorded in the cash book. Cash purchase of materials to the canteen, cash received from employees, cash received from project studies etc. ACCOUNTING VOUCHERS Accounting vouchers used by the company to record transactions are: 1. Credit Vouchers 2. Debit Vouchers 3. General Journal Vouchers 4.3. PRODUCTION DEPARTMENT Production department deals with all production and purchasing activities. They collect information regarding the market requirements and plan production activities accordingly. Production department is headed by production manager. The structure of production department is as follows: Production Manager Spinning Manager Assistant Spinning Manager
  • 54. A study on employeemotivation atprabhuram mills 54 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com Duties of Production Manager 1. Direct responsibility of planning, marketing, production and purchase. 2. Overall responsibility of purchasing of raw materials 3. Implementing corporate policies 4. Monitoring cost and improves productivity and planned level. 5. Promotion of awareness of customer requirements 6. Direct responsibility in running the plant to its maximum capacity. 7. Arranging the required quantity in consultation work. 8. Liaison with the suppliers. PRODUCTION PROCESS BLOW ROOM This department functions only during the day shift. The machines of this department are the most important in a spinning mill. The functions of blow room machines are: a. Opening b. Cleaning or waste removing c. Mixing d. Scotching & lap formation The first process in the blow room department is the opening of hard pressed bales and cleaning the cotton of heavy impurities like broken seed, leaf skill, husk etc. it is then passed through a series of machines known under the general opener’s task and foreign matters have
  • 55. A study on employeemotivation atprabhuram mills 55 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com to be extracted from the cotton with the least amount of loss. Another process in mixing various types of cotton like CH32, Varalakshmi and Rajapalayam. They are generally mixed thoroughly to get a proper blend. The object of mixing is to get a proper blend so as to obtain a near possible uniformity in length of staple, quality, colour etc. Scotching and lap formation are the last operations in the blow room. Although has now passed through the opener and has had extracted impurities from it, probably about 4% of impurities are not cleaned. The cleaning process is continued after scotching. The object of scotching is to remove as much as possible impurities. The loose cotton passed through the scotches is converted into uniform sheets called laps. These laps are then delivered to the next department. CARDING Carding is the process of removing impurities and clears the cotton further and then looses the fibers and separates them and converts them into simples stands called slivers. 14 cards in this department work in 3 shifts the objects are: 1. Waste removal – this is to remove impurities and clean the cotton further. Then main wastes extracted from the cotton in carding department are: a. Flat strips b. Linker wastes c. Cylinder wastes d. Invisible wastes 2. To remove short fiber, moles, seeds, leaves etc. from the laps so that better yarn be produced. 3. To lose the fiber and separate them so that the work of the draw frame will be effective. 4. Convert them into single strands called silvers. Silvers are stored in cans. The carding process helps in the betterment of fiber. The carding and stripping process are carried out in this department. COMBING Combing is an optional process. The purpose of this produce yarn of better quality. Higher count yarn is processed in this department. The objectives of this department are:
  • 56. A study on employeemotivation atprabhuram mills 56 SUBODH G KRISHNA’s Projects subodhgopalakrishna@gmail.com 1. Eliminate short fiber 2. Strength out the fiber 3. Parallelisation of fiber Stem is taken direct from the card and passed through 3 processes in this department. a. 22 carded slivers are feeding into sliver lap machine and laps are produced. b. 6 sliver fiber laps are take to ribbon lap machine, fiber lap is produced. c. 8 ribbon laps are placed on corrigended wooden rollers. Behind the combor camp and the entire short from the lap. This laps are delivered into 2 sliver to card placed at the end of the machine. DRAWINGS Carded and combed sliver are processed separately, and drawn for from the machine. Major objectives are A. Blending of sliver B. Attention of fiber C. Parallelization of fiber D. Improvement of infirmity by sliver E. Purification of sliver further The carded sliver are passed through the drawing, but the combed slivers are passed through the finishers drawings. SIMPLEX There are six simplex machines. Out of six machines, three of them are 120 spindle machines and rests are 124 spindle machines. Objectives of simplex machine are to convert carded and combed slivers into cavages. The carded or combed slivers are supports to the simplex machines. Here the sliver passes in between 3 lines of rollers where it is subjected to drawings sections. A slight twist is given to the reduced and it is then wound up on bobbins by means of fitter. The slight twist is given to the attained an extremely loose sufficient to give necessary strength to enable it to build up around the bobbin. It is further threatened routing would or bobbins are supplied to the next department.