Chapter 1 INTRODUCTION This project named as Organization study at INDIAN TELEPHONE INDUSTRIES LIMITED, PALAKKAD has been undertaken with the objective of analyzing the practical aspects of business management in the modern business scenario and studying the various functions of departments in the organizations. The time duration of the project was one month. The result of the study is the understanding of the inter- related functions of different departments of the selected industrial unit for this study. Management is an activating element in any enterprise for getting things done through people. Management becomes inevitable for directing and unifying the groups of efforts towards a common objective. Management is not merely a task of managing the business but it is an essential accomplishment of all social organization and it is to be found everywhere, as a distinct and dominant activity. While describing the pivotal role of the management in the social history, Drucker rightly remarks, management which is the organization of the society specially charged with making resources productively, i.e., with the responsibility for organized economic advance. Therefore, to reflect the basic spirit of the modern age, management is that function of an enterprise which concerns itself with the direction and the control of the various
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Chapter 1
INTRODUCTION
This project named as Organization study at INDIAN TELEPHONE
INDUSTRIES LIMITED, PALAKKAD has been undertaken with the objective of
analyzing the practical aspects of business management in the modern business
scenario and studying the various functions of departments in the organizations. The
time duration of the project was one month. The result of the study is the
understanding of the inter-related functions of different departments of the selected
industrial unit for this study.
Management is an activating element in any enterprise for getting things
done through people. Management becomes inevitable for directing and unifying the
groups of efforts towards a common objective. Management is not merely a task of
managing the business but it is an essential accomplishment of all social
organization and it is to be found everywhere, as a distinct and dominant activity.
While describing the pivotal role of the management in the social history, Drucker
rightly remarks, management which is the organization of the society specially
charged with making resources productively, i.e., with the responsibility for organized
economic advance. Therefore, to reflect the basic spirit of the modern age,
management is that function of an enterprise which concerns itself with the direction
and the control of the various activities to attain the business objective. An effective
management is planning, organizing, staffing, directing and controlling an activity,
project or enterprise.
OBJECTIVE OF THE STUDY
The ultimate aims of the study have been to get familiarized with the ITI
Limited and to study the overall performance of that organization. The specific
objectives of the study are listed below.
1. To understand and analyse the organizational structure of ITI Ltd.
2. To study the trends in the important performance indicators like sales and profit
3. To familiarize with the production procedures
4. To understand the decision making process and procedures at different levels of
management.
5. To have a clear idea about the delegation of authority and responsibility among
the various levels of the organization.
6. To find the strength, weakness, opportunities and threats of the company
7. To get acquired with the functioning of the various departments in an
organization.
SCOPE OF THE STUDY
The scope encompasses both geographical and conceptual boundaries. The
study is useful in accessing the quality and performance of the company. It helps to
conduct a detailed study on the structure and the functional areas of the selected
organization, namely, the ITI Limited. This study helps to identify the strength and
weakness of the organization and to find out the area where the organization should
improve. It adds to familiarizing the telecommunication industry and ascertaining the
present position of the company.
RESEARCH METHODOLOGY
Research Methodology deals with how the research study should be
undertaken. This includes the research design to be used, data collection method to
be adopted, research work to be carried out, and limitation inherent in the research
project.
RESEARCH DESIGN
Research design is the basic frame work, which provides guidelines for the
research process. In this study data are collected from different category of
respondents. These are by asking questions to the respondents and collect the
organization structure, departmental details, policies and procedures of the
company.
SOURCES OF DATA
This study is based on the primary and secondary sources of data. The
primary data for the study have been collected through personal interview with
managers and other key persons within the organization. The main sources of
secondary data have been published and unpublished documents including the
company’s brochures, records and annual publications, library books and internet
sources.
RATIONALE OF THE STUDY
Palakkad district in Kerala has a unique position in the commercial map of
India as being the heartland of the country’s industry. INDIAN TELEPHONE
INDUSTRIES in Palakkad district is one of India’s public sector units in the
telecommunication sector. The former Prime Minister, Jawaharlal Nehru is the
master mind behind ITI. Having been a native of Palakkad prompted the selection of
this unit for the organizational study.
STUDY PLAN
This organization study conducted in May, 2012 covered a period, exactly one
month. The study plan followed for the purpose is given below.
FIRST WEEK: Familiarizing with organization by going through various documents
SECOND WEEK: Visiting various departments and conducting discussions with
department heads for primary data collection
THIRD WEEK: Collecting information from employees, and from secondary sources
FOURTH WEEK: Data analysis and preparation of the project report
Chapter 2
INDUSTRY PROFILE
Telecommunications industry deals with the activities and services of
electronic systems for transmitting messages through cables, telephone, radio or
television. In the recent years the telecommunication sector shows a tremendous
growth. The major factors responsible for the growth of telecommunications industry
are use of modern technology and market competition. One of the products of
modern technologies is the optical fibres, which are being used as a medium of data
transmission instead of using coaxial or twisted pair cables. Optical fibres can carry a
high volume of data and are easier to maintain and install. The use of
communication satellites made telecommunications a booming industry. The use of
mobile network has a crucial role behind its leading companies are showing their
interest to invest in this sector.
The introduction of these advanced technologies made the
telecommunications industry a competitive one, where a number of multinational
companies have shown their interest to invest in this industry. Consequently the
prices have been reduced, and the quality improved at the same time. During 1990s,
the telecommunication industry showed a speedy growth in terms of investment and
eventually increased the competition. The competition between the companies led to
the decline of revenues.
TELECOM INDUSTRY IN INDIA
The Indian Telecommunications network with 203 million connections is the
third largest in the world and the second largest among the emerging economies of
Asia. Today, it is the fastest growing market in the world. The telecommunication
sector continues to register significant success and emerge as one of the key
sectors responsible for India’s resurgent economic growth. The Indian
telecommunication industry, with 600 million mobile phone connections as of
February 2010, is the third largest telecommunication network in the world and the
second largest in terms of number of wireless connections 563 million. Indian
telecom industry is one of the fastest growing in the world and is projected that India
will have 'billion plus' mobile users by 2015. Projection by several leading global
consultancies is that India’s telecom network will overtake China’s in the next 10
years. For the past decade or so, telecommunication activities have gained
momentum in India. Efforts have been made from both governmental and non-
governmental platforms to enhance the required infrastructure. The idea is to help
modern telecommunication technologies to serve all segments of India’s culturally
diverse society.
The Indian telecommunication industry has a significant presence in the
national economy as well as in the international economy. Its contribution to the
Indian economy is manifested in terms of its contribution to the industrial production,
employment generation and foreign exchange earnings.
The Indian telecommunication industry is growing rapidly. This rapid growth
has been possible due to various proactive and positive decisions of the Government
and contribution of both by the public and the private sector. The rapid strides in the
telecom sector have been facilitated by liberal policies of the Government that
provide easy market access for telecom equipment and a fair regulatory framework
for offering telecom services to the Indian consumers at affordable prices.
The use telecommunication equipments are increasing day by day. Rising
demand for a wide range of telecom equipment, particularly in the area of mobile
telecommunication, has provided excellent opportunities to domestic and foreign
investors in the manufacturing sector. The last two years saw many renowned
telecom companies setting up their manufacturing base in India. Ericsson has set up
GSM Radio Base Station Manufacturing facility in Jaipur. Elcoteq has set up handset
manufacturing facilities in Bangalore. Nokia set up its manufacturing plant in
Chennai. LG Electronics set up plant of manufacturing GSM mobile phones near
Pune.
EMERGING TECHNOLOGIES
Telecommunications service providers and equipment vendors today face
significant challenges as they address the multitude of changes and competitive
challenges sweeping their industry. Networks are increasing in size and complexity
as demand pressures grow and as new technologies — from wireless
communications and fiber optics to multimedia, computers and advanced Internet
technologies converge upon the network. As the competitive environment intensifies,
it becomes increasingly important for service providers and equipment vendors to be
able to react to changes quickly and effectively while maintaining the highest levels
of performance and reliability. The emerging technologies in telecom sector are the
following.
♦ GSM and CDMA
Participation of the private entities in the telecom sector is rapidly increasing
rate there by presenting the enormous growth opportunities. There is a clear
distinction between the Global Satellite Mobile Communication (GSM) and Code
Division Multiple Access (CDMA) technologies used and the graph below shows the
divide between the two. In terms of the Global System for Mobile Communication
(GSM) subscriber base, places India third after China and Russia. CDMA technology
was introduced in India as a limited mobility solution. The introduction of CDMA
services has created competition, lowered tariffs and offered many citizens access to
communication services for the first time.
♦ Broadband Technologies
Telecommunications service providers and equipment vendors today face
significant challenges as they address the multitude of changes and competitive
challenges sweeping their industry. Networks are increasing in size and complexity
as demand pressures grow and as new technologies — from wireless
communications and fibre optics to multimedia, computers and advanced Internet
technologies converge upon the network. As the competitive environment intensifies,
it becomes increasingly important for service providers and equipment vendors to be
able to react to changes quickly and effectively while maintaining the highest levels
of performance and reliability.
♦ Mobile Phone: Technology Generations
There are estimated to be 127 billion mobile phones in the world today. The
emerging technologies such as 3G and 4G developed the mobile industry.
♦ Internet Protocol (IP) Telephony
Although IP telephony does not yet constitute a substantial percentage of the
global worldwide telephony traffic volume, it is expanding rapidly due to some
technical motivations.
♦ Voice-Over Internet Protocol (VoIP)
A major development that started in 2004 was the introduction of mass-
market VoIP services that utilize existing broadband Internet access, by which
subscribers place and receive telephone calls in much the same manner as they
would via the public switched telephone network (PSTN). Full-service VoIP phone
companies provide inbound and outbound service with Direct Inbound Dialling. Many
offer unlimited domestic calling for a flat monthly subscription fee. This sometimes
includes international calls to certain countries. Phone calls between subscribers of
the same provider are usually free when flat-fee service is not available
♦ Bluetooth Technology
Bluetooth is managed by the Bluetooth Special Interest Group, which has
more than 14,000 member companies in the areas of telecommunication, computing,
networking, and consumer electronics. The SIG oversees the development of the
specification, manages the qualification program, and protects the trademarks. To be
marketed as a Bluetooth device, it must be qualified to standards defined by the SIG.
A network of patents are required to implement the technology and are only licensed
to those qualifying devices; thus the protocol, whilst open, may be regarded as
proprietary.
The other emerging technologies are i-mode Technology, Digital Subscriber
Line (DSL), Wireless in Local Loop (WLL), Undersea Cable Projects and Direct-To-
Home (DTH) TV.
TOP PLAYERS IN TELECOM SECTOR
Telecommunications service providers and equipment vendors today face
significant challenges as they address the multitude of changes and competitive
challenges sweeping their industry. Networks are increasing in size and complexity
as demand pressures grow and as new technologies — from wireless
communications and fiber optics to multimedia, computers and advanced Internet
technologies converge upon the network.
As the competitive environment intensifies, it becomes increasingly important
for service providers and equipment vendors to be able to react to changes quickly
and effectively while maintaining the highest levels of performance and reliability.
The major telecom players in India are the following.
1) Reliance Communications Limited
Established in 2002, Reliance communication is the wholly owned subsidiary
of Anil Dhirubhai Ambani Group of Companies providing the telecommunication
Established in 1995 by Sunil Mittal as a Public Limited Company, Airtel is the largest telecom service provider in Indian telecom sector. With market capitalization of over Rs.1,360 billion, Airtel has 31% of total market share of GSM service providers.
3) BSNL
Founded in 2000, Bharat Sanchar Nigam Ltd. is India's largest public sector
Telecommunications Company providing a wide variety of telecom services. Its
service range covers Wireline, CDMA mobile, GSM Mobile, Internet, Broadband,
Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services, etc.
4) MTNL
MTNL has successfully converted its telephone exchange network to the
digital mode systems. Having a customer base of more than 6 million, MTNL has
showed a growth of over 30% during financial year 2005-06.
5) Ericsson
Ericsson has a wide network of more than 140 countries and more than 30%
market share. Ericsson's parent company Teleonsktiebolaget L M Ericsson was
established in 1876.
6) Nokia
Nokia is one of the leaders in the Indian market providing telecom
equipments. Its product range starts from a handset of Rs. 2000-3000 and goes to N
series, which amounts to more than Rs. 25000-30000.
7) Siemens Communications
Siemens is one of world's largest companies providing electrical engineering
products and services. Siemens covers a wide range of services in the electronic