Employee Communication Effectiveness

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A STUDY ON

EMPLOYEE Communication effectivenessWith reference to

COROMANDEL INTERNATIONAL LIMITEDVISAKHAPATNAM

Submitted in

Partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

K.RASOOLI

By

C.REDDY RAJA REDDY

1225110212

GITAM INSTITUTE OF MANAGMENT

VISAKHAPATNAM

(2010 _ 2012)


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DECLARATION

I here by declare that the work present in this project report entitled,

EMPLOYEE COMMUNICATION EFFECTIVENESS in COROMANDEL

INTERNATIONAL LIMITED, VISAKHAPATNAM is original and has been

carried out by me towards partial fulfillment for the award of the degree in

MASTER OF BUSINESS ADMINISTRATION submitted to the

COROMANDEL (H.R.D). The findings of the report are based on the information

collected by me during this study.

(C.REDDY RAJA REDDY)

Date:

Place: Visakhapatnam.


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CERTIFICATE FROM THE GUIDE

This is to certify that this project work entitled EMPLOYEE

COMMUNICATION EFFECTIVENESS in COROMANDEL

INTERNATIONAL LIMITED, VISAKHAPATNAM carried out by Mr.

C.REDDY RAJA REDDY has been done by her under my Supervision and

guidance during the academic year 2010-2012.

Date:

Place: Visakhapatnam.

KUBRA RASOOLI

(ASST. HR MANAGER)


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ACKNOWLEDGEMENT

I would like to thank each and every employee who has directly

or indirectly helped me in carrying out this project.

I take this opportunity to express my heartfelt thanks to my project guide

K.RASOOLI Asst. HR for his guidance and suggestions during the progress of

my project. I am thankful to the COROMANDEL INTERNATIONAL

LIMITED, VISAKHAPATNAM for giving me an opportunity to undertake my

project work.

My special thanks to B.KISHORE KUMAR, Dy. Manager (TRAINING)

COROMANDEL INTERNATIONAL LIMITED, VISAKHAPATNAM for his

valuable suggestions and co-operation throughout the project work.

I want express my sincere thanks to my Guide Ms. RAMYA for hisconstant moral support and valuable guidance in successful completion of the

project work.

Finally I would like to thank other faculty members for their extended co-

operation & suggestions which have helped a lot.

(C.REDDY RAJA REDDY)


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CONTENTS

CHAPTER I

1.0 INTRODUCTION

1.1 NEED OF THE STUDY

1.2 OBJECTIVES OF THE STUDY

1.3 METHODOLOGY & SAMPLING

1.4 PRIMARY DATA & SECONDARY DATA

1.5 LIMITATIONS

CHAPTER II

2.0 COMPANY PROFILE

2.1 INDUSTRIAL PROFILE

CHAPTER III

3.0 THEORETICAL ASPECT OF THE CONCEPT

CHAPTER IV

4.0 ANALYSIS & INTERPRETATION

CHAPTER - V

5.0 FINDINGS & SUGGESTIONS

5.1 ANNEXURE

5.2 BIBLIOGRAPHY


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CHAPTER-IINTRODUCTION

INTRODUCTION

Human Resource is the most potential and versatile resource. Its effective utilisation is a

sine qua non of the rate of growth of any economy regardless of the structure and system of

economy and the governance. No society and no nation can be proud of its human resource

unless there is a systematic and sustainable development of capacities of its people and convert

the human resource into human capital.

Human resource is the most strategic resource and no other resource can be fully utilised

to generate income and wealth of a nation without the active involvement of this resource.

Money, material, men, markets and machines are regarded as the most important resources of

organizations but men or human resources are treated as the only crucial and dynamic factor of

production. Though other factors of productions are also important they are considered to be

worthless without the involvement of human factor.

Importance of HRD

Human Resource Development (HRD) is mainly concerned with providing learning

experiences for the people associated with an organization through a behavioral approach

adopting various processes. Learning experiences for the people associated with an organization

through a behavioral approach adopting various processes. The individual is provided with


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learning experiences not in isolation but he shares others learning experiences also. Such

learning experiences are provided with the main objective of developing human beings for their

advantage and harnessing their physical, mental and intellectual endowments and abilities for the

growth of the organization.

HRD from the organizational point of view is a process in which the employees of an

organization are helped / motivated to acquire and develop technical, managerial and behavioral

knowledge, skills and abilities and mould the values, beliefs and attitudes necessary to perform

present and future roles by realizing the highest human potential with a view to contribute

positively to the organizational, group, individual and social goals.

Recent economic liberalizations announced by the Government of India tend towards

market economy and started creating more dynamic environment of India than ever before. HRD

plays a significant and crucial role in market economies under dynamic environments. Human

Resources Development (HRD) should be effective and efficient. HRD cannot be effective for

the candidates who do not possess potentials to perform present and future roles in organizations

with dynamic environment. HRD to be effective should essentially have a strong base of human

resources planning, recruitment and selection based on effective HRD requirements.

The outcomes of HRD are four-fold, viz. to the organization, to the individuals, to the

groups and to the society. HRD benefits the organization by developing the employees and make

them ready to accept responsibilities, welcome change, adapt to change, enables the

implementation of the programmes of total quality management, maintenance of sound human

relations, and increase in productivity and profitability. HRD also benefits individuals in


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achieving of potentials, increase in performance, fulfilling their needs and enhancing social and

psychological status.

The HRD helps the groups in the form of increase in cooperation, increase in

collaboration and team effectiveness. Further, it helps the society in the form of developing

human resources and increased contribution of human resources to the society.

Towards the accomplishment of said objectives information is obtained from both

primary as well as secondary data sources.

Primary data is generated through questionnaires by way of meeting different executives

concerned with training and development programs and seminar & survey with few departmental

heads and few employees of Port.

Secondary data is collected from in-house magazines, journals, newspapers, websites and

any other published material and mainly from the previous records of CHD.

IMPORTANCE OF COMMUNICATION EFFECTIVENESS

The study on communication effectiveness is more relevant in todays business scenario

characterized by very tough competition. This situation had led to a stage where organizations

are more worried about survival; this led communication to take a back seat Communication can

be analyzed as a two way process as information is not only sent but also received, understood

and implemented (Adeleke, 2004)

When we have the line of communication we mean the channel through which information is

transmitted within a construction site or organization from one person to the other.


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Machinery need to be in place for further communication to take place, either downward

communication (from superior to sub-ordinate), horizontal (between colleagues of the same

level) or upward communication (from sub-ordinate to superior).

Careful attention must be paid to these means and machinery of communication because internal

communication is vital for high productivity, as an aid to construction project delivery in the

construction site and it is a more difficult process now than it was decades ago. The principal

reason for this is that there has been changes in the attitude of workers to their employers and in

the present site environment and in the site environment there has been a move away from old

concepts of unquestionable obedience, proper provision must be made for upward

communication to avoid misconceptions of information otherwise a superior personnel like

Architect, Project manager, Engineer or supervisor may generate a bad feeling and may also end

up making decisions in avacuum and such decision may not be accepted by the junior staffs and

personnel like the labourers and gang men.

The basic questions which readily comes to the mind of the workers are of two major

categories as stated below:

1. What, where, when, why, and how does my employer expects me to perform.2. What, where, when, why, and how does my employer benefit from my work.

NEED FOR THE STUDY

From the information that will be gathered, the importance of effective communication on

execution and delivery process will be made known to all involved at the supervisory level of

C.I.L.. This research work will also show how ineffective communication negatively affect


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productivity based on the facts gathered. This research work will also be useful to the

management and their professional status.

Building human capital at all levels in organization is imperative. The method and

approach of human development differs depending on the position held by people, their roles,

experiences etc... The scope, content, methods, techniques of manpower development vary from

category to category of manpower employed in the organization. So much so employees

education and technical background, experience, perception and level of understanding constitute

the determinants of scope and content of training and its delivery. Factors such as organization

restructuring, technology, job restructuring require organization to train its manpower. Many

studies have been carried out encompassing various issues and dimensions of human resources

management however; most of the studies have been carried out with a focus on general policies

of HR. Zeal to know the facts, which contributed to the success of Coromandel in general, and

training & development activities in particular inspired me to take up the study of its

Communication Effectiveness.

OBJECTIVES OF THE STUDY

The project is taken up with following objectives:

To identify the major factors that causes ineffective communication in the C.F.L.


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To identify the problem caused by these factors. To study the general policies and procedures of communication activities. To find out the methods and techniques of diagnosing the communication needs in

COROMANDEL

To analyses the various methods and techniques of communication to evaluateeffectiveness of such methods.

To assess the impact of communication effectiveness of managerial skills. To summarize and suggest the observations in the present study.

Methodology:

Towards the accomplishment of said objectives information is obtained from both

primary as well as secondary data sources.

Primary data is generated through questionnaires by way of meeting different executives

concerned with training and development programs and seminar & survey with few departmental

heads and few employees of Port.

Secondary data is collected from in-house magazines, journals, newspapers, websites and

any other published material and mainly from the previous records of COROMANDEL.

The information has been collected mainly from various books however the

information pertaining to Coromandel International Limited has been obtained from the

following two sources.


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Primary data

This is done by personal discussion with various officials in employee relation

department and human resource development. Questionnaires were prepared by keeping in view

of the objective of the study. The first one is being management questionnaire covering

management data on participation of workers in COMMUNICATION. The second one was the

canvass among the sampled employers to find out their opinion on communication effectiveness.

The questionnaire was distributed to 150 and the response were limited to 100. The study is

confined to a sample of 100 only.

Secondary data

The secondary data is from various publications on communication effectiveness and

business communication and reports of Coromandel International Limited.

BACKGROUND OF THE STUDY

The topic is to show the effectiveness of communication during working hours and how it helps

the industry to enhance production and completion of projects within the stipulated period.

Communication is defined below to make it easier to know about its meaning, purpose and

effects.

Communication is a means by which operatives and other members of the building team are

linked in order to achieve the central goal.


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In organization , communication could also be achieved through letters, drawings, symbols,

signs, posters and word through which members of an organization sends and receives

information and also sends information to the public at large.

Communication in the large sense of it is used to express facts, ideas, opinion and emotions

between two or more people and through communication exchange of thought, information is

also a good tool for human relation.

Considering the above definition of communication, it is observed that everybody in an

organization is responsible for communication irrespective of the role of the person being the

originator or the receiver of the information.

In all aspects of human professions, communication is seen as a vital central organ especially

through the use of language. Humans have transferred culture, record history and document

occurrences to a good deal with the use of language from one generation to another. The organ

called communication has helped man to build societies and other social groups which has

contributed immensely to the growth of mans life 3 enjoyable.

Through effective communication, the workers especially in firms find it easy and highly

productive to work together. Instruction and order are given and they are carried out as expected

once they are well understood and acted upon rightly.

The working day of every personnel is filled with communication in different ways and forms

through orders, directives, information, conversation, requests and rumors.


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STATEMENT OF THE PROBLEM

Effective communication has not been given enough attention in firms thereby creating many

loop holes in information dissemination. As a result of this poor attitude in the industry, it is

found necessary to create solution to such problems through this research as to improve

productivity in firms.

LIMITATIONS OF THE STUDY

Every study is conducted under some limitations. Some of the limitations of

the study are as follows.

During the project period most of the staff members are busy with auditingand other works. So they could not afford give full information

Since officials, executives and others were busy the study was primarilyfocused on secondary data.

Time was a constraint for the study.


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To ethical norms in all dealings with shareholders, employees, customers, suppliers, financial

institutions and government.

Provide-

Value for money to customers through quality products and services.

Treat-

Our people with respect and concern provide opportunities to learn, contribute and advance,

recognize and reward initiative, innovativeness and creativity.

Maintain-

An organizational climate conducive to trust, open communication and team spirit a style of

operation, benefiting our size, but reflecting moderation and humility.

Manage-

Environment effectively for harnessing opportunities.

Discharge-

Responsibilities to various sections of society thereby preserve environment.

Grow-

In an accelerated manner, consistent with values and benefits, by continuous organization

renewal.


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THE SPIRIT OF THE MURUGAPPA GROUP:


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INTEGRITY: We value professional and personal integrity above all else. We achieve our

goals by being honest and straightforward with all our stakeholders. We earn trust with every

action, every minute of every day.

PASSION: We play to win. We have a healthy desire to stretch, achieve personal goals and

accelerate business growth. We strive constantly to improve and be energetic in everything that

we do.

QUALITY: We take ownership of our work. We unfailingly meet high standard of quality in

both what we do and the way we do it. We take pride in excellence.

RESPECT: We respect the dignity of every individual. We are open and transparent with each

other. We inspired and enable people to achieve high standard and challenging goals. We

provide everyone equal opportunities to progress and grow.

RESPONSIBILITY: We are responsible corporate citizens. We believe we can help make a

difference to our environment and change lives for the better. We will do this in a manner that

befits our size and also reflects our humidity.


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COMPANY HISTORY

1959: Independent India realized that its largely agrarian economy needed a thrust in the

right direction for its people to benefit and prosper. Prime Minister Jawaharlal Nehru invited the

Ford Foundation to carry out a comprehensive study of Indian agriculture and give its

recommendations. The study revealed a crucial need to produce indigenous chemical fertilizers

to increase agricultural output to meet the countrys ever-increasing food demand.

1961 : An industrial license was granted to three companies IMC (the worlds

largest producer of fertilizers then), Chevron Chemical Company (a major American player in

fertilizers / industrial chemicals) and E.I.D.Parry (India) Limited (Indias largest private fertilizer

producer with 60 years standing) to set up a giant chemical fertilizer complex.

The first Board of Directors was constituted on October 16, with H V R Iengar as its

Chairman. Others on the Board included J Q Cope, Charles Dennison, J K John, Dr L Bharat

Ram, A W Horton, J T Gibson, S C Dholakia, V K Rao and Raja Rameswar Rao. L L Powell


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and P J Davies were the first Managing Director and Dy. Managing Direct respectively. Donald I

Meikle was the first Company Secretary.

1962 Market development commence in the form of a seeding programme. E.I.D. Parry

was appointed COROMANDEL principal sales agent in India for our product aptly name

GROMOR epitomizing the idea of Growing More food for the nation.

A 483.5 acres site was identified at Visakhapatnam along the Coromandel coast (Indias

east coast), from where the Company derived its name. The land, taken under a 50-year lease

from Visakhapatnam Port Trust, has a private jetty just 5 km from the plant site. With a capital

investment of Rs.50 crores, Lumus Company undertook construction of the plant.

1967: On December 10, Mr. Korari Desai, the then Deputy Prime Minister of India,

dedicated the fertilizer plant to the nation, in the presence of Mr. Kasu Brahmananda Reddy, the

Chief Minister of Andhra Pradesh. Grandhi Ramamurthy, a local farmer, was given the honour

of cutting the ribbon.

The 245 ft high Urea prill tower was one of the tallest industrial structures in India then.

Though not operational today, it still presents a formidable sight, towering against the skyline,

recalling old memories for those who were associated with its operation.

1970: The GROMOR farmer was developed as a marketing symbol and introduced on

our bags to spread the message of higher yields, bigger profits. Today, farmer households

across our addressable markets identify COROMANDEL brand by this symbol.

1971: The Coromandel Lecture was instituted to provide a forum for thinkers,

economists, social and agricultural research scientists around the world to share their thoughts on

issues of global concern such as food security, environment and extension activity.

The Borlaug Award, instituted in honor of Nobel Laureate Dr Norman Borlaug (father of

the wheat revolution), honors eminent men of science and industry for their distinctive

contribution to the cause of agriculture. This reflects COROMENDEL concern to develop a

symbiotic interaction between agriculture, industry and academia.


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1976: Our fertilizer retail outlet at Secunderabad got a boost with garden lovers fervently

seeking small quantities of fertilizers for bigger and richer blooms and fruit.

1977 : COROMANDEL completed a decade of participation in augmenting agricultural

production for the nation. Its vital role covered soil nourishment, sharing agronomic expertise,

supporting agricultural education and rewarding research all of which had progressively grown

in width and depth during the decade.

198090: Plansto diversify were afoot. A groundbreaking ceremony was performed in

November 1980 at Chilamkur (Andhra Pradesh), which is rich in limestone deposits, to set up a

one million tonne cement plant. The fully computerized plant (designed by world-renowned

cement manufacturer Krupp Polysius of West Germany) was commissioned in 1984. It was later

sold to India Cements in 19903

1995 99 Chevron Chemical Company divested its stake in favour of E.I.D.Parry (I)

Limited in 1995, followed by IMC in 1999. E.I.D. Parry (I) Limited acquired majority

shareholding in COROMANDEL making it a part of the Murugappa Group, a highly reputed

industrial conglomerate.

2000 COROMANDEL growth over the years has been punctuated with several path-

breaking modernisation / upgradation programmes. Begun in 1975, the programme gathered

momentum in 1992-95, when the Sulphuric Acid, Phosphoric Acid and Complex Granulation

plants were debottlenecked. Production capacity wend up from the original 247,000 MT to

400,000 MT. On September 29, Mr. N Chandrababu Naidu, the then Chief Minister of Andhra

Pradesh, inaugurated a new complex granulation train. This further augmented capacity to

600,000 MT, a boon to the entire farming community.

2003: On July 12, COROMANDEL consolidated its business by acquiring controlling stake

in Godavari Fertilisers & Chemicals Limited (GFCL). To optimise synergy of operations in the

Group, the Farm Inputs Division of E.I.D Parry (I) Limited was merged with COROMANDEL

on December 1.


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2004 :Mr. V. Ravichandran took over as President & WTD on January 22. Mr.

A.Vellayan took over as Chairman on September 1. Other Directors on the Board are Mr.

J.Jayaraman, Mr.M.M.Murugappan, Mr. T.M.M Nambiar , Mr. M.K.Tandon, Mr. D.E.Udwadia,

Mr. S.Viswanathan and Mr. K.A.Nair.

The first post-merger AGM of the Company was held on July 15.

2005: COROMANDEL signs a Business Assistance Agreement with Foskor Limited,

South Africa.

ORGANIZATIONAL STRUCTURE:

The supervisory board of Murugappa group supervises the organization of Coromandel

International Limited. The top most authority of the whole Coromandel International Limited is

administered and controlled by the president and managing director. The main registered office

of Coromandel International Limited is located at Hyderabad. The Present Managing Director of

Coromandel International Limited is Mr.V.Ravichandran. The Visakhapatnam Plant is headed by

the vice president who at present is Mr. N. Seetharam who undertakes the in charge of all the

levels of departments in the organization.

Functions:

The vice president manufacturing and projects is overall in charge of manufacturing

Fertilizers at plant and in implementation of all the projects in time with a workforce of around

175 officers and 425 technicians.

The vice president finance is in charge of overall fund management, internal audit secretarial

functions. A work force of around 30 Executives and 35 officers are under his control.

The Sr. Vice President marketing is in charge of overall marketing of Coromandel International

Limited finished products as well as the by-products like gypsum, fluorine etc.

The functions of other executives are:

General ManagerOperations:


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General ManagerOperations is responsible for smooth running of all process plants including

operations. One AGM & other process plant Heads will directly report to him.

AGM Operations:

Asst. General Manager of operations is responsible for efficient running of Bagging & Product

Handling Plants in addition to Management Information System of all Operations Department

about 8 Executives and 100 workmen report to him.

Sr. ManagerAccounts:-

Sr. Manager of accounts is responsible for maintaining statutory accounts and other fund records,

10 officers and 36 office assistants assist him.

AGMIT:

Asst. General Manager of IT is responsible in building skill gap of all the human resources of the

organization by requisite training and development. 3 officers assist him and 2 workmen who

execute all HR philosophies and administer officers wage administration.

AGMPurchase and Stores:

Asst. General ManagerPurchase & Stores is responsible for all purchase activities, raw

material purchases and maintenance of stores at an optimum level. 5 officers and 20 assistants

who look after the effective distribution of finished products and by-products assist him.

AGMMaintenance:

Asst. General ManagerMaintenance is responsible for preventive maintenance of plant and

machinery and buildings. He looks after the timely executives of all the capital projects at the

plant. 30 officers and 165 technicians assist him.

AGM & RHHR


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AGM & RHHR is responsible for recruitment of technicians and office assistants. He is also

responsible for execution of all welfare measures and for security arrangement of plant and

machinery. 8 officers and 40 workmen assist him.

Asst. General ManagerSafety, health and environment:

AGMsafety, health and environment is responsible for identification of hazardous areas and in

suggesting remedial safety measures and its effective compliance. He also arranges medical

checkups etc. 4 officers and 3 assistants assist him.

The employees of the organization are divided into three grades. They are:

1. Technicalthe technical employees are again sub divided into highly skilled, semi skilled andunskilled people. The labour comes under unskilled workmen. Technical staff is graded into S1

to S7 ranks.

2. Clerical- The clerical staff is graded into C1 to C3 ranks where C1 grade is for assistant, C2

for junior assistant and C3 for senior assistant. The clerical staff mainly looks after the office

work.

3. ManagerialThe management staff is graded into CI1 to CI 3 and from MG3 to MG 10grades.

Thus according to the ranks the employees of Coromandel Fertilizers limited are graded and the

company runs round the clock. The employees work in shift timings. The timings of the three

shifts are.

0700 hrs to 1500 hrs



The general shift is from 0800 hrs to 1630 hrs. Thus the employees working under all the shift

timings receive all the welfare facilities like canteen, transport, drinking water etc.


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Location:

The plant is situated in 500 acres of site about 5 km from the harbour. The site is located on the

east coast of Visakhapatnam and has been leased from Visakhapatnam port trust for a period of

50 years with renewal options, at the port; Coromandel International Limited operates its own

bulk freight raw material unloading berth, which is an added advantage as they import many for

Coromandel International Limited Company.

The plant uses a lot of seawater in the process for cooling purpose Vizag being a seacoast

provides the facility. Coromandel International Limited is serving the farming community of

India for the past 3 decades by producing around 1 million tonnes of complex Fertilizers per

annum and catering to the needs of agricultural society.

Plants:

Coromandel International limited has mainly three plants. They are:

1. Sulphuric acid plant-This plant is designed and constructed by M/s. Simon Carves India

Limited. It has a rated capacity of 1200 million tonnes per day. Sulphur is the raw material,

which is imported from abroad from countries like USA, Japan and Gulf.

2. Phosphoric acid plant-This plant is designed and constructed by M/s. Darr Oliver of USA is

used in manufacturing of cement. It has a rated capacity of 400 million tonnes per day. Rock

phosphate a mineral from foreign countries such as USA, Africa and Australia and is still

looking for other sources. Rock phosphate and sulphuric acid are reacted to give phosphoric acid

and gypsum. Filtering separates gypsum and it is a by-product, which is a good source of

income by sales.

3. Complex Fertilizer plant-Complex Fertilizer plant has rated capacity of 1400 million tonnes

per day. Ammonia and phosphoric acid are reacted in a reactor to form ammonium phosphate

and urea is added to this mixture. The urea prill is coated with ammonia phosphate to form the

urea ammonia phosphate, which is a Fertilizer.


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Achievements:

Coromandel International limited a reputed Fertilizer company in India stood first in achieving

the following:

1.First in India achieved to commercially manufacture high analysis complex fertilizer,which is urea ammonium phosphate 28:28:0 with high nitrogen and phosphate content

in 1:1 ratio.

2.First in India achieved to install a large sulphuric acid plant based on DCDA technologyto control sulphur dioxide emission.

3.First in India achieved successfully to implement total recycling of seawater for itseffluent recirculation system attached to phosphoric acid plant.

Functional Areas

Coromandel International limited comprises of four functional areas. They are:

1. Manufacturing and production

2. Marketing

3. Finance

4. Human Resources

1. Manufacturing and Production:

The main objectives of manufacturing unit of Coromandel International Limited are

1 To be a low cost Fertilizer manufacturer

2 Emphasis on safety and environment improvement

3 Trust on energy conservation


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The plant has planned to undertake manufacturing of single super phosphate with estimated

production volume of 0.7 lakh tones per annum. The basic raw materials used for manufacturing

are phosphoric acid, urea and ammonia. They buy naphtha to make ammonia from HPCL. Rock

phosphate is imported from USA and Sulphur is imported from USA and gulf countries.

Products:

1. Coromandel International Limited sells its product under the brand name GROMOR. 1.

Gromor (28:28:0) urea ammonium phosphate is one of the best products of Coromandel

International Limited . It has a granule configuration Urea Prill Coated with ammonium

Phosphate, which ensures nitrogen availability to the crop over a longer duration of time.

2. Gromor (14:35:14) ammonium phosphate potash, Npk is a scientific Fertilizer with the highestnutrient content of 63% among NPK complex available in India.

3. Gromor (20:20:0) and parampos (16:20:0) ammonium phosphate sulphate gives 15% sulphur

for the soil apart from their ammonia and phosphate content.

The products of Coromandel International limited are sold in Andhra Pradesh, Orissa, west

Bengal and Madhya Pradesh.

PERSONNEL DEPARTMENT OF COROMANDAL INTERNATIONAL LIMITED:

Coromandel International limited gives importance to human resources and it lays emphasis on

human safety and welfare. Presently the company comprises of about 600 employees among

whom about 425 employees are non managerial and about 175 employees are managerial.

Objectives:

The main objectives of personnel department in Coromandel International Limited are:

1. Organizational restructure through re-skilling and re-deployment

2. Training in core competency areas


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3. Employee cost reduction through manpower rationalization and optimum utilization.

Personnel department at Coromandel International Limited is classified into two departments.

They are:

1. Human Resource Department:

This department deals with the matters pertaining to managerial staff and is headed by Asst.

General Manager & Regional Head - HR who looks after the matters like recruitment, career

planning, training and development, performance appraisal and smooth administration of

remuneration and policies of all categories of employees of Visakhapatnam Plant as well as

Marketing Branches of in the States Le., Andhra Pradesh, Assam, West Bengal, Orissa, Madhya

Pradesh, and Chattisgarh.

A total of 40 non-managerial staff is working in this Department. Vice president in

consultation with HRD and ERD reviews carefully and finalizes the manpower planning.

HR Policy:

This human resource policy was drafted in the year 2000 in May and it IS considered to be the

corporate commitment.

1. To create and nurture an organization culture committed to multi disciplined teamwork in

order to meet the customer's needs with high quality products and services.

2. To facilitate and provide an environment congenial for continual learning aimed at increasing

proactively, creativity and adaptability.

3. To devise and sustain an appraisal and reward system based on performance and merit.

Recruitment:


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The company has a policy that the new employee should be carefully chosen as he has to handle

the job not only for his ability but also for his suitability of future advancement. The

requirements of the job shall be the determining factor in the selection and placement of the

applicants and employees who satisfy the required qualifications and requirements of the job

shall be preferred.

The main manpower sources of the organization are:

1. Resumes or the applications received in personal or by mail.

2. Local employment exchange.

3. Advertisements in local press.

4. Direct interviews from colleges, universities and poly technical colleges.

Coromandel International Limited also complies with the statutory requirement of informing

employment exchange vide form ER-1 under the Employment Exchange Act 1959.

SELECTION:

The received applications will be reviewed by the ERD and HRD in consultation with the

concerned head of the department and suitable applicants will be invited to meet the preliminary

evaluation panel at employee relations department or the human resource department.

The process of selection at Coromandel International Limited is done as follows:

1. Conducting written examination and its critical evaluation

2. Personal interview by the selection panel and its appraisal

3. Appointment order will be issued to the candidate and it contains the placement,

commencement of service, remuneration, benefits, compensation review, age of retirement,

notice of termination etc.


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Thus when the person is selected for a particular job he is sent for training to know the work

correctly so that he performs the job effectively.

TRAINING AND DEVELOPMENT:

Training and Development at CIL is being given much importance. It is a systematic approach

and its objectives are to:

1. Upgrade and maintain the technical and functional skill levels of employees

2. To match the company's present as well as envisaged requirements.

3. Improve the understanding commitment and general effectiveness of employees through

appropriate workers education, supervisory development and management development

programmes.

Normally organization will try to achieve the training man days up to a maximum of 7 days that

is considered to be the best. As against the normal standard, CIL already achieved 9.28 and 5.57

man days for their managerial and non-managerial staff. Presently training is being done at the

rate of 6.75mandays/employee/year. The training policy of Coromandel International Limited is

to facilitate and provide an environment congenial for continual learning aimed at increasingproactivity, creativity and adaptability.

THE MAIN FUNCTIONS OF TRAINING DEPARTMENT ARE:

1.Effective coordination with various departments aiming at alignment of training needsand training activity.

2.Preparation of training calendars and obtaining sufficient budget from the topmanagement.

3.Organizing the training effectively in line with the training calendar.4.Collection of feedback from the participant about the effectiveness.


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Thus training and development at Coromandel International Limited is playing an important

role on the employees by upgrading their skills and knowledge.

PERFORMANCE APPRAISAL:

When an employee's performance is excellent it is the result of a number of

circumstances that work together to make his excellence possible. The level of performance of

an employee is influenced by six factors. They are:

o Aptitudeo Degree of efforto Level of skillo Motivationo Understanding the tasko Other factors

Performance appraisal systems at Coromandel International Limited are at 180 and 90 in

cases of managerial staff and non-managerial staff. Performance appraisal is mainly used as tools

to access the individual's competency, potential and performance and based on these factors

increments; compensation reviews and promotions are affected. It improves the performance of

the employee so that he performs well in future. Coromandel International Limited has a very

good performance appraisal system through which their performance is evaluated and

compensation is awarded.

MANPOWER PROFILE

Grade / Band Fertilizers

Mg08 ( VP ) 1

BAND1 1

Mg06 (AGMs) 11


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Mg05 ( Sr.Mgrs) 10

Mg04 (Mgrs) 34

BAND2 55

Mg039( Dy. Mgrs) 53

CF3 ( Asst. Mgrs) 33

CF2 (Sr. Officers) 6

Cf1 ( Officers) 4

BAND3 96

Total MS 152

MT / FTS 1

Exec Tr 1

NMS / SS 424

Total 578

WELFARE FACILITIES:

Management makes the welfare policies at the plant and the welfare programmes are

executed to the workers through their union. The union nominates its members and negotiates

about modalities of execution of welfare programmes.

The following are some of the welfare facilities provided to the employees:

1. Drinking Water:


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Drinking water facilities is provided to the employees in and around the plant. There are about

20 drinking water points at suitable places for supply of wholesome cool drinking water.

2. Canteen:

Canteen facility is also provided and in each shift at a time 60 to 70 persons can be

accommodated. Mobile and non-mobile canteen services are provided round the clock. Every

month company spends 4.5 lacks approximately on canteen and the food is ordered on

subsidized rates.

3. Recreational facilities:

Recreational facilities at Coromandel International Limited are organized through two clubs,

which are Coromandel recreation centre for non-managerial staff, and Coromandel club for

managerial staff. The clubs organize various cultural and entertainment programmes for

recreation of its members and their members. The subscriptions of the clubs are Rs. 5/- for CRC

and RS. 40/- for CC per month.

4. Transport:

Coromandel International Limited provides subsidized home transport to the employees. Rs.

15/- is recovered by the management per month from the employees salary. Company operates

almost 6 routes of Vizag in all the shift timings.

5. First aid:

Coromandel International Limited provides first aid and medical facilities to the employees. 30

first aid boxes are located at various locations and around 33 numbers of managerial and non-

managerial employees are trained in first aid in the factory during the year. Ambulance rooms'

works around the clock and a full pledged medical officer is provided by the management.


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The company also provides facility for house loan, consumer stores, educational allowance for

employee children, maternity leave, and sick leave and bathroom facilities. These are some other

important welfare facilities provided by the company.

Environment policy:

It is committed to optimizing the interests of the stakeholders in our business while

simultaneously protecting the environment by prevention of pollution and by.

Establishing and maintaining an environmental management system in compliance withgood business practices and legislative requirements.

Achieving a high degree of efficiency in consumption of inputs and energy. Reducing dust emission into atmosphere. Increasing greenery in and around the plan Conserving resources through minimized waste generation and through promoting

recovery recycle and reuse.

Creating employee awareness for making environmental protection an integral part ofwork culture and

Continually improving our environmental performance.

Thus the company provides safety and environmental factors to the employees and it also

maintains good relations with the workers hence there is no union problem in the company.

Coromandel International Limited has only one trade union, which is CITU, and it has no

political interference but the leader of the union is a political party member who is an outsider

and others are the employees of the company. 90% of the non-managerial staff is the members of

the union.

SR activities:

Coromandel International Limiteds business interest is not limited to commercial profit

alone. Its corporate responsibility does not stop with merely increasing shareholder value. The

company has a stakeholder base that goes far beyond its shareholders. Displaying conspicuous


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social responsibility, it associates with various community development activities in the villages

around its facilities.

The company constantly seeks out avenues where it can help the community, and has

contributed generously to several social causes, such as providing drinking water to villages,

scholarships to meritorious students, free notebooks, fans and computers to government schools,

construction of additional classrooms for poor schools, veterinary camps for cattle, free health /

blood donation camps for villagers, pulse polio programmes for children, helping in the

government's mid-day meal scheme, etc.

ACCOUNTING POLICIES

The accounts have been prepared primarily on the historical cost convention and in accordance

with the mandatory accounting standards. The significant accounting polities followed by the

company are stated below.

1. Fixed Assets: Fixed Assets are shown at cost or valuation less depreciation. Cost

comprises the purchases price and other attribute expenses. Fixed assets other than

leasehold land/improvement. Office equipment, furniture fitting, certain vehicles and

roads had been revalued on 31st March 1991, based on a valuation by an approved

value. The indices, if any used are not stated in the valuation.

2. Depreciation on Fixed Assets: Depreciation has been provided on straight-line

method. Depreciation on assets revalued as at 31st March 1991 is provided on the basis

of the residual technical life as ascertained by the value. Leasehold hold is being

amortized over the lease period.

3. Foreign Currency Transactions: Transactions made during the years in foreign

currency are recorded at the exchange rate prevailing at the time of transactions. Assets

and Liabilities related to foreign currency transactions remaining unsettled at the year


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end are translated at contract rates, when covered by foreign exchange contracts and at

year end rates in other assets.

4. Investments: Investments are valued at cost of acquisition and related expenses.

5. Inventories: Stores and spares are valued at monthly weighed average cost. Other

inventories are valued at lower of cost and net realized value. The method of

determination of cost of various categories of inventory is as follows:

Raw Material First in first out method. Cost includes purchase cost and attributable

expenses.

Finished goods and workin process Weighted average cost of production whichcomprises of direct material costs, direct wages and appropriate overheads. Goods for

resaleWeighted average cost.

6. Sundry Debtors and Advances: Specific debts and advances identified as

irrecoverable and doubtful are written off or provided for respectively.

7. Revenue Recognition:

Sale of goods recognized at the point dispatch to customers. Sales exclude amount

recovered excise duty and sales tax.

Dividend income from investments is accounted for when declared.

Subsidies: Credit for Government subsidies has been taken on the basis actual sales

made by the company.

RECORDS

Coromandel has constantly taken up modernization and up gradation programs. The

modern programs undertaken by the company during the year '75, '80, and '92 has helped to


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increase the volume of production form the original level of 2,50,000 Mt per annum to the

current level of 3,38,000 Mt per annum with a considerable gain in energy and material usage

efficiently over the years. The various projects include primary reformer revamp phosphoric acid

plant de bottle - necking molten sulphur for loading facilities at berth and atmospheric storage

tank ammonia handling etc.,

Coromandel has enjoyed excellent track records in production and industrial relations, energy

and environment since inception largely due to progressive policies of the company with regard

to Labour management.

Ever since the production commenced in 1967, Coromandel has been an active partner of the

Indian farmer in the field, helping him in his efforts to produce more from small land holdings

and played a crucial role in assisting India achieve self-sufficiency in food grain production.

ROLE OF CIL IN INDIAN AGRICULTURE:

From the very beginning Coromandel proved to be a boon to the Indian farmers. It brought to

India the world-class production facilities with a new generation of fertilizer products.

Coromandel vision had started playing a vital role in the resurgence of Indian Agriculture.

Coromandel introduced a branded product Gromor, which is a high analysis NP complex

fertilizer. It is the first in the world to produce high analysis NP complex fertilizers in the highest

1: 1 ratio. This was implemented when most of the fertilizer products available in India were not

balanced in nutrient contents.

Gromor in a short span of time established itself as a popular brand where and entire generation

of farmers has grown up with it in a number of sates using it wide variety of crops.

Gromor 28:28:0 is one of the best of its kind in the world. It has unique granule configuration

where in a urea prill at the centre is coated with ammonia phosphate, which ensure nitrogen

availability to the crop over a longer duration of time.


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Coromandel International limited gives importance to human resources and it lays emphasis on

human safety and welfare. Presently the company comprises of about 600 employees among

whom about 425 employees are non managerial and about 175 employees are managerial.

FINANCIAL STATEMENTS

COROMANDEL MAJOR COMPETITORS

o The Fertilizers and Chemicals Travancore Ltd (FACT).o Godavari Fertilizers and Chemicals Ltd., (GFCL).o Gujarat Narmada Valleys Fertilizers & Chemicals Ltd., (GNFCL)o Gujarat State Fertilizers Company Ltd., (GSFCL)o Hindustan Lever Ltd., (HLL)o Indian Farmers Fertilizers Co-operation Ltd (IFFCO)o Madras Fertilizers Ltd., (MFL)o Pyrites and Phosphates Ltd., (PPL)o Rastriya Chemical and Fertilizers ltd., (RCF)o Southern Petrochemical Industries Corp Ltd., (SPIC)o Zuari Agrochemicals Ltd., (ZAL)o

Osklal Chemicals and Fertilizers Ltd., (OCFL)

Awards & Accolades:

The FAI Best Production Performance Award 2006 for the Phosphoric Acid Plant atVizag,

Award for 2005-06 Best Energy Conservation in the Fertiliser sector received by VizagPlant on December 14 2006, National Energy Conservation Day.

The FAI Best Video Film Award 2006 for the film on Gromor Sulphur for the 5thtime.

National Award (1st Prize) for House Journal2006 from The Public Relations Societyof India, New Delhi, received for The Voice ( house journal ) for the 2nd consecutive

year.


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National Award (2nd Prize) for Video Film 2006 from The Public Relations Society ofIndia, New Delhi received by Marketing Department (Fertilizers ) for the film

Cheetah (Helping Hand)

British Council Five Star rating for Safety Management System in 1998. First prize for safety, among the 162 fertilizer companies in the International Fertilizer

Industries Sectional Contest.

Andhra Pradesh Pollution Control Boards award for Waste Minimization at Source andAdopting Cleaner Technologies for 2001-02.

FAI award for Environmental Protection in NP/NPK Fertiliser Plant Category for 1995-96.

Adjudged one of the Ten Greenest Companies in India by a joint survey of Tata EnergyResearch Institute and Business Today magazine.

Several other awards from the Central and State Government and other institutions likeAP Pollution Control Board, Jawaharlal Nehru Award for Pollution Control and Energy

Conservation.

Received a Commendation Certificate for "Strong Commitment to HR Excellence" fromthe Confederation of Indian Industries (CII).

MURUGAPPA GROUP

The Murugappa Group is one of the largest family-promoted, professionally managed

conglomerates in India. The group has, over the decades, maintained its salience with leadership

in its chosen lines of business. The group has always been discharging its responsibilities to the

satisfaction of all its stakeholders as summed up in its guiding philosophy.

"The fundamental principle of economic activity is that no man you transact with will lose;

then you shall not."

---

Arthashastra
http://www.murugappa.com/http://www.murugappa.com/http://www.murugappa.com/http://www.murugappa.com/http://www.murugappa.com/


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TURNOVER OF COROMANDEL INTERNATIONAL LIMITED:

Coromandel International is a Private Sector Organisation that offers services in

Agriculture/Dairy/Fertlizer with Annual Total Turnover of 5000+ Crs and with Employee

Strength of 2501 -5000.

INDIAN FERTILIZER INDUSTRY

INDIAN FERTILIZER INDUSTRY PROFILE

India is primarily an agriculture based economy. The agricultural sector and its other associated

spheres provide employment to a large section of the country's population and contribute about

25% to the GDP.

The Indian Fertilizer Industry is one of the allied sectors of the agricultural sphere. India hasemerged as the third largest producer of nitrogenous fertilizers. The adoption of back to backFive Year plans has paved the way for self sufficiency in the production of food grains. In fact

this period the first Single Super Phosphate (SSP) factory was established in Ranipet in Chennai.It had a capacity of producing 6000 MT annually. In the pre and post independence era a couple

of large scale fertilizer units were established namely the Fertilizer Corporation of India in

Sindri, Bihar and the Fertilizer & Chemicals Travancore of India Ltd in Cochin, Kerala.

The Indian government has devised policies conducive to the manufacture and consumption of

fertilizers. Numerous committees have been formed by the Indian government to formulate and

determine fertilizer policies. The dramatic development of the fertilizer industry and the rise inits production capacity has largely been attributed to the favorable policies. This has resulted in

large scale investments in all three sectors viz. public, private and co-operative.

At present there are 57 large scale fertilizer units. These manufacture an extensive range of

phosphatic, nitrogenous and complex fertilizers. 29 of these 57 units are engaged in themanufacturing of urea, while 13 of them produce Calcium Ammonium Nitrate and Ammonium

Sulphate. The remaining 20 fertilizer plants manufacture complex fertilizers and DAP. There are

also a number of medium and small scale industries in operation, about 72 of them. Thefollowing table elucidates the installed capacity of each sector.

Sl. No Sector Capacity (LMT) Percentage Share

N P N P

1 Private Sector 53.94 35.13 44.73 62.08


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2 Public Sector 34.98 4.33 29.0 7.65

3 Cooperative Sector 31.69 17.13 26.27 30.27

Total 120.61 56.59 100.0 100.0

The Department of Fertilizers is responsible for the planning, promotion and development of the

Fertilizer industry. It also takes into account the import and distribution of fertilizers and also the

financial aspect. There are four main divisions of the department. These include FertilizerImports, Movement and Distribution, Finance and Accounts, Fertilizers Projects and Planning

and Administration and Vigilance. It makes an assessment of the individual requirements of the

states and union territories and then lays out an elaborate supply plan.

Though the soil in India is rich in silt, it lacks chief plant nutrients like potassium, nitrogen and

phosphate. The increase in the production of fertilizers and its consumption acts as a major

contributor to overall agricultural development.

The Indian fertilizer industry has come a long way since the setting up of the manufacturing unitof Single Super phosphate (SSP) near Chennai in 1906 A new impetus to the growth of Indian

Fertilizer industry was provided by the set up the two fertilizer plants- Fertilizer & Chemicals

Travancore of India Ltd. (FACT) in Kerala and the Fertilizers Corporation of India (FCI) in

Bihar. This was during the forties and the fifties.

The aim was to create an industrial base that would provide India with self reliability in food

grains.

India witnessed significant growth of the fertilizer industry during the sixties and the seventies.By 2003, India had an installed capacity of 12.11 million MT of nitrogen and 5.36 million MT of

phosphate. Today, with 57 large sized fertilizer plants manufacturing a wide variety of thenitrogenous, complex and phosphatic fertilizers, the Indian fertilizer industry is the 3rd largest

producer in the world. One of the major factors that have led to the rapid increase in the

production capacity of fertilizers in India is the policy environment. With the formulation andimplementation of investor friendly policies, large investments poured into the private, public

and co-operative sectors and this propelled the growth of the Indian fertilizer industry.

As per Government of India records on 31.01.2007, the Indian fertilizer industry has made a

production of 120.61 LMT of nitrogen (N) and 56.59 LMT of phosphatic (P) nutrient. The

installed capacity of urea in India is estimated to be 207.52 LMT. These successes in theproduction by the fertilizer companies of India have crowned India the 3rd largest fertilizerproducer in the world.


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Fertilizer Industry, India Fertilizer Industry

Though much euphoric services sector growth in Indian economy has drawn the attention over

the globe, still its importance brings confusion when we come across the parameters like

increasing inequality and a stalemate in condition.

Agriculture the backbone of Indian Economy still holds its relative importance for more than abillion peoples. The Government Of India from time to time has taken considerable steps for the

upliftment of Agriculture Sector. Here we have analyzed the performance of Fertilizer Industry

being one of the vital parts in agricultural production and Government's policy initiatives for the

same.

Fertilizer in the agricultural process is an important area of concern. Fertilizer industry in India

has succeeded in meeting

the demand of all chemical fertilizers in the recent years.The Fertilizer Industry in India started

its first manufacturing unit of Single Super Phosphate (SSP) in Ranipet near Chennai with acapacity of 6000 MT a year.

India's green revolution in late sixties gave a positive boost to the sector. The sector experienceda faster growth rate and presently India is the third largest fertilizer producer in the world.

According to Given Statistics, total capacity of the industry as on 30.01.2003 has reached a level

of 121.10 lakh MT of nitrogen (inclusive of an installed capacity of 208.42 lakh MT of urea afterreassessment of capacity) and 53.60 lakh MT of phosphatic nutrient.

Presently there are 57 large fertilizers plants in the country producing urea, DAP, Complexfertilizer,Ammonium Sulphate (AS) and Calcium Ammonium Nitrate (CAN).

Challenges before Indian Fertilizer Industry

The growth trajectory of the Indian fertilizer industry has camouflaged the impending challengeswith which it is faced. Growth and development of agriculture in India derives a significant

stimulus from the fertilizer industry.

Agricultural milieu in India could be jeopardized by the uncertainties in the fertilizer industry.

The government is faced with the piquant situation, which demands a balance between the needs

of the farmers and the fertilizer manufacturers.

The challenges before the Indian fertilizer industry relate to the incertitude in the supply offertilizers. There has been a surge in the demand for fertilizers in the past few years. Good

monsoonal showers have led to the growth in agriculture, inadvertently increasing the

consumption rate of fertilizers. However, the robust growth in consumption propensity has notbeen met with the required surge in fertilizer production. This has widened the gap between the

demand and supply of fertilizers, which has led to an increase in the dependence of the country

on imports. This also reflects on the lack of realizing of the domestic capacity utilization of thereserves in the country.
http://www.economywatch.com/business-and-economy/fertilizer-industry.htmlhttp://www.economywatch.com/business-and-economy/fertilizer-industry.htmlhttp://www.economywatch.com/business-and-economy/fertilizer-industry.htmlhttp://www.economywatch.com/business-and-economy/fertilizer-industry.htmlhttp://www.economywatch.com/business-and-economy/fertilizer-industry.htmlhttp://www.economywatch.com/business-and-economy/fertilizer-industry.html


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Another important factor that has led to the stunted growth of the fertilizer industry is the rise in

prices of the feedstock. The fertilizer industry is dependent on gas for the production of urea andphosphoric acid for the production of phosphatic fertilizers and DAP. The country imports its

inputs from other countries. The overseas suppliers of raw materials realize the predicament of

the Indian fertilizer industry and have started exploiting the shortage through clever pricing.

In recent years, some of the private companies, dedicated to the production of fertilizers have

affectively taken stakes in the overseas sources of raw materials. Although this has aided the

industry, it has however been unable to reduce the government's burden of subsidizing the rates.The fertilizer industry is remained protected under the umbrella of the Retention pricing scheme

of the Indian government.

The government has introduced policies to decontrol the prices but delayed the implementation

of the parameters that have not augured in favor of the industry. As a result, fertilizer subsidies

continue to mount and are expected to cross Rs. 50,000 crore in the year 2008. The pricing of the

fertilizers are also dependent on the freight charges that are Baltic dry index.

The small size of the older plants and the low efficiency of the public sectors also pose as

drawbacks of the industry. Recent policies of the government are directed towards revamping ofthese industries and restoring them to health.

The fertilizer industry is faced with other challenges inter alia infrastructural bottlenecks and theuncertainties in government policies. The delay in decision making and obscurity in setting

parameters are among some of the major drawbacks of the government policies directed towards

the industry.

To retrieve the health and growth of the fertilizer industry, the government of India is in need of

long term realistic policies that would enable the industry to overcome the challenges and

survive the present impasse.

PRIVATE COMPANIES PRODUCING FERTILIZER IN INDIA

Some of the private companies producing fertilizers in India are mentioned below:Khaitan

Chemicals and Fertilizers Limited - This Company produces single super phosphate fertilizer

and sulphuric acid. The fertilizer is manufactured in the granular form in this company. Khaitan

Chemicals and Fertilizers Limited has its office in Indore.

Mangalore Chemicals - This is the only company in the state of Karnataka that is engaged in

the manufacturing of chemicals and fertilizers. The plant has an annual turnover of more than Rs.

800 crore.

Nagarjuna Fertilizers - With their office at Hyderabad, this company is engaged in the

production of fertilizers and agro-chemicals. It also engages other activities such as refining

petroleum, finance and power.


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Zauri Chambal - An undertaking of the K.K Birla Group, this company engages in theproduction of fertilizers such as urea, hybrid seeds, cement and chemicals. The company also

provides engineering solutions and home finance. The company was established in collaboration

with the US Steel Corporation. The company has established NPK plant, DAP plant, urea plant

and ammonia plant in the country.

BEC Fertilizers - This Company is dedicated to the manufacture pf agro-inputs that will

facilitate the agricultural sector. The company manufactures the product ANAND single superphosphate along with other micro-nutrients, plant hormones and chemicals for the protection of

plants. The company has established its unit in Bilaspur, Uttar Pradesh.

Gujarat State Fertilizers &Chemicals Limited - This multiproduct company is dedicated to

the production of fertilizers such as ammonium sulphate, urea, DAP and NPK. It also produces

water soluble fertilizers. Along with fertilizers, the company is engaged in the production of bio-

fuels, bio-fertilizers, plant tissue culture and oleum.

DSCL - The primary business of this company based in North India is the manufacture of urea

and other farm inputs such as DAP, chemicals and pesticides.

Some of the other private companies engaged in the production of fertilizers in India are listed

below:

Apratim International

The production of nitrogenous fertilizer in the private sector has been increasing in the past few

years. The private sector had only 13% share in the production in 1960-61. The private sector hasalways retained a higher share in the production of phosphatic fertilizer production.

GROWTH OF INDIAN FERTILIZER INDUSTRY

The Indian fertilizer industry has come a long way since the setting up of the manufacturing unit

of Single Super phosphate (SSP) near Chennai in 1906 A new impetus to the growth of Indian

Fertilizer industry was provided by the set up the two fertilizer plants- Fertilizer & ChemicalsTravancore of India Ltd. (FACT) in Kerala and the Fertilizers Corporation of India (FCI) in

Bihar. This was during the forties and the fifties.


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The aim was to create an industrial base that would provide India with self reliability in food

grains.

India witnessed significant growth of the fertilizer industry during the sixties and the seventies.

By 2003, India had an installed capacity of 12.11 million MT of nitrogen and 5.36 million MT of

phosphate. Today, with 57 large sized fertilizer plants manufacturing a wide variety of thenitrogenous, complex and phosphatic fertilizers, the Indian fertilizer industry is the 3rd largest

producer in the world. One of the major factors that have led to the rapid increase in the

production capacity of fertilizers in India is the policy environment. With the formulation andimplementation of investor friendly policies, large investments poured into the private, public

and co-operative sectors and this propelled the growth of the Indian fertilizer industry.

SOME OF THE MAJOR FERTILIZER COMPANIES IN INDIA (IN THE PUBLIC

SECTOR) ARE AS FOLLOWS:

National Fertilizers Limited (NFL)

Hindustan Fertilizer Corporation Limited (HFC)Paradeep Phosphates Limited (PPL)

Fertilizers & Chemicals Travancore LTD. (FACT)

Rashtriya Chemicals & Fertilizers Limited (RCF)The Fertilizer Corporation of India Limited (FCI)

Steel Authority of India Limited (SAIL)

Madras Fertilizers Limited (MFL)

Reports showed the total installed capacity of fertilizer production in 2004 to be 119.60 LMT of

nitrogen and 53.60 LMT of phosphate. These figures went up to 120.61 LMT of nitrogen and

56.59 LMT of phosphate in 2007. The production of fertilizers was 113.54 LMT of nitrogen and

42.21 LMT of phosphate during 2005-06. The target of production for 2006-07 was set at 114.48LMT of nitrogen and 48.20 LMT of phosphate. Though the target production was not met, there

was a growth in production during 2006-07 as compared to the production during 2005-06.

Indian fertilizer industry has reached international levels of capacity utilization by adopting

various strategies for increasing the productions of fertilizers. These include the following:

fertilizer units.

tural gas for the production of

fertilizers, especially urea.

resources of raw materials.

In order to meet the demand for gas, which is one of the prime requirements for the production


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of nitrogenous fertilizers, India has entered into joint ventures with foreign companies in a

number of countries. Joint ventures have also been established for the supply of phosphoric acid.Indian fertilizer manufacturing companies has joined hands with companies in Senegal, Oman,

Jordan, Morocco, Egypt, Tunisia and other countries.

It is, therefore, evident that the Indian fertilizer industry has witnessed extensive growth anddevelopment in a short span of time. With such extensive growth, it is not surprising that the

India ranks among the leading fertilizer manufacturing countries of the world.

TOP 10 FERTILIZER COMPANY IN INDIA

NATIONAL FERTILIZERS LIMITED (NFL)

PARADEEP PHOSPHATES LIMITED (PPL)

FERTILISERS & CHEMICALS TRAVANCORE LTD. (FACT)

PYRITES, PHOSPHATES & CHEMICALS LTD. (PPCL)

HINDUSTAN FERTILIZER CORPORATION LIMITED (HFC)

Rashtriya Chemicals & Fertilizers Limited (RCF)

Steel Authority Of India Limited (SAIL)

Neyveli Lignite Corporation Ltd. (NLC)

The Fertilizer Corporation Of India Limited (FCIL)

Brahmaputra Valley Fertilizer Corporation Limited


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CHAPTER-3

THEORETICAL FRAME WORK

DEFINITION:

The term communication has been derived from the Latin word

communis which means common. It was Aristotle who, for the first time,

Brought about a systematic study of the communication process. According to him, there are three

essential elements in a communication system, namely, the speaker, the speech, and the audience.

Communication strictly stands for sharing of ideas in common. The word communication, however,

has many and varied meanings. Popularly speaking, it refers to the various means of transmitting

information from individual to individual, individual to a group of individuals or from one place to

another. It is a transmission of messages, ideas, methods, skills, and thoughts between two or more

persons. It is mutual exchange of facts, thoughts, opinions or emotions by the use ofsymbols, words,

pictures, figures, graphs and so on.

Communication is the chain of understanding which permeates an

organization from top to bottom, from bottom to top, and from side to side,

and which moves the organization ahead towards its stated objectives. It is the cohesive force which

holds the group together. Vardaman and Halterman opine: Communication is the flow of material,information, perception and understanding between various parts and members of an organization.

2.2 COMMUNICATION IN THE INDUSTRY

Communication is said to be effective within the working group in the industry only when the

transmitted ideas achieve their desired action or reaction, as the operation involved in the industry is a

team effort, embracing the customers with the main objective of getting things done through human

beings.

The operational procedures and other management activities associated with the design, construction

and subsequent performance of a building rely a great deal on how information is being transmitted


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between the various participants of the building team and for this reason, method of communication

should not only clarify issues but must also attempt to bring harmony to the entire work process and

also foster co-operation between the parties to ensure maximum contribution from members.

Although there is no clear cut division of communication system within the industry, the general of

communication are classified as follows:

1. Communication between employees and the management2. Communication between the employees3. Communication between the organization and the customers.4. Communication in organization.

2.2.1 MEANS OF COMMUNICATION

Adeleke, (2004), explains the various means by which information can be transmitted in the

organization for the successful execution of any project as the success of such project relies largely on

the establishment of a clearly defined framework or communication. He further states that information

can be transmitted formally or informally, in some cases construction contracts may state the form

which communication must take e.g. a written order for variation. The usual means of communication

as stated by Adeleke (2004), are as follows

1. The print media Newspapers Bulletins Handbills Magazines

2. Drawn and visual materials Drawings


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Programmes and charts Photographs

3. Verbal Face to face

4. Written materials Specification Schedules Bill of quantities Tender document Certificate of payment Reports Letters

5. Notice board6. Models and samples7. Computers

CHARACTERISTICS OF EFFECTIVE FEEDBACK

Effective Feedback has most of the following characteristics:

descriptive (not evaluative)(avoids defensiveness.) By describing one's own reactions, itleaves the individual fee to use it or not to use it as he sees fit..

avoid accusations; present data if necessary

describe your own reactions or feelings; describe objective consequences that have orwill occur; focus on behavior and your own reaction, not on other individual or his or

her attributes

suggest more acceptable alternative; be prepared to discuss additional alternatives;focus on alternatives

specific rather than general.


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focused on behavior not the person. It is important that we refer to what a person doesrather than to what we think he is. Thus we might say that a person "talked more than

anyone else in this meeting" rather than that he is a "loud-mouth."

It takes into account the needs of both the receiver and giver of feedback. It should begiven to help, not to hurt. We too often give feedback because it makes us feel better or

gives us a psychological advantage.

It is directed toward behavior which the receiver can do something about. A person getsfrustrated when reminded of some shortcoming over which he has no control.

It is solicited rather than imposed. Feedback is most useful when the receiver himselfhas formulated the kind of question which those observing him can answer or when he

actively seeks feedback.

Feedback is useful when well-timed (soon after the behavior-depending, of course, onthe person's readiness to hear it, support available from others, and so forth). Excellent

feedback presented at an inappropriate time may do more harm than good.

sharing of information, rather than giving advice allows a person to decide for himself,in accordance with his own goals and needs. When we give advice we tell him what to

do, and to some degree take away his freedom to do decide for himself.

It involves the amount of information the receiver can use rather than the amount wewould like to give. To overload a person with feedback is to reduce the possibility that

he may be able to use what he receives effectively. When we give more than can be

used, we are more often than not satisfying some need of our own rather than helping

the other person.

It concerns what is said and done, or how, not why. The "why" involves assumptionsregarding motive or intent and this tends to alienate the person generate resentment,

suspicion, and distrust. If we are uncertain of his motives or intent, this uncertainty itself

is feedback, however, and should be revealed.

It is checked to insure clear communication. One way of doing this is to have thereceiver try to rephrase the feedback. No matter what the intent, feedback is often

threatening and thus subject to considerable distortion or misinterpretation. It is checked to determine degree of agreement from others. Such "consensual

validation" is of value to both the sender and receiver.

It is followed by attention to the consequences of the feedback. The supervisor needs tobecome acutely aware of the effects of his feedback.

It is an important step toward authenticity. Constructive feedback opens the way to arelationship which is built on trust, honest, and genuine concern and mutual growth.

Part of the feedback process involves understanding and predicting how the other person will

react. Or in the case of our receiving feedback, we need to understand ways that we respond to

feedback, especially threatening feedback.

People often react negatively to threatening feedback. This reaction can take a number offorms including:

selective reception and selective perception doubting motive of the giver denying validity of the data rationalizing


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attack the giver of the dataFollowing the guidelines to effective feedback can go a long way to limit these kinds of reactions

but we need to be conscious of them nonetheless and be ready to react appropriately.

When we are on the receiving end of feedback we should be careful to avoid thesepitfalls. Try to keep these points in mind.

try not to be defensive check on possible misunderstanding ("Let me restate what I am hearing") gather information from other sources don't overreact ask for clarification

BARRIERS TO EFFECTIVE COMMUNICATION

There are a wide number of sources of noise or interference that can enter into the communication

process. This can occur when people now each other very well and should understand the sources of

error. In a work setting, it is even more common since interactions involve people who not only don't

have years of experience with each other, but communication is complicated by the complex and often

conflictual relationships that exist at work. In a work setting, the following suggests a number of sources

of noise:

Language: The choice of words or language in which a sender encodes a message will influencethe quality of communication. Because language is a symbolic representation of a phenomenon,room for interpreation and distortion of the meaning exists. In the above example, the Boss uses

language (this is the third day you've missed) that is likely to convey far more than objective

information. To Terry it conveys indifference to her medical problems. Note that the same

words will be interpreted different by each different person. Meaning has to be given to words

and many factors affect how an individual will attribute meaning to particular words. It is

important to note that no two people will attribute the exact same meaning to the same words.

defensiveness, distorted perceptions, guilt, project, transference, distortions from the past misreading of body language, tone and other non-verbal forms of communication (see section

below)

noisy transmission (unreliable messages, inconsistency) receiver distortion: selective hearing, ignoring non-verbal cues power struggles self-fulfilling assupmtions language-different levels of meaning managers hesitation to be candid assumptions-eg. assuming others see situation same as you, has same feelings as you distrusted source, erroneous translation, value judgment, state of mind of two people Perceptual Biases: People attend to stimuli in the environment in very different ways. We each

have shortcuts that we use to organize data. Invariably, these shortcuts introduce some biases


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into communication. Some of these shortcuts include stereotyping, projection, and self-fulfilling

prophecies. Stereotyping is one of the most common. This is when we assume that the other

person has certain characteristics based on the group to which they belong without validating

that they in fact have these characteristics.

Interpersonal Relationships: How we perceive communication is affected by the past experiencewith the individual. Percpetion is also affected by the organizational relationship two people

have. For example, communication from a superior may be perceived differently than that from

a subordinate or peer

Cultural Differences: Effective communication requires deciphering the basic values, motives,aspirations, and assumptions that operate across geographical lines. Given some dramatic

differences across cultures in approaches to such areas as time, space, and privacy, the

opportunities for mis-communication while we are in cross-cultural situations are plentiful.

EFFECTIVE COMMUNICATION PROCESS IN THE ORGANIZATION


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HUMAN RESOURCE MANAGEMENT

Meaning and Definition of HRM

In simple sense, human resources management means employing people, developing their

resources, utilizing, maintaining and compensating their services in tune with the job and

organizational requirements with a view to contribute to the goals the organization, individual

and the society.

Michael J.Jucius defined personnel Management ad the field of management which has to do

with planning, organizing directing and controlling the functions of procuring, developing,maintaining and utilising a labour force, such that the ---

(a) Objectives for which the company is established are attained economically andEffectively,

(b) Objectives of all levels of personnel are served to the highest possible degree, and(c) Objectives of society are duly considered and served.

Scope of Human Resource Management

The scope of human resour4ce management in the modern days is vast. In fact ,the scope of

HRM was limited to employment and maintenance of and payment of wage and salary. The

scope gradually enlarged to providing welfare facilities, motivation

performance , appraisal ,human resource management ,maintenance of human relations,

strategic human resources and the like .The scope has been continuously enlarging.

The Scope off Human Resource Management includes:

Objectives of HRM


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Organisation of HRM

Strategic HRM

Employement

Development

Wage and salary administration/compensation

Maintenance

Motivation

Industrial relations

Participative management and

Recent developments in HRM.

Having discussed the scope of Human Resources Management, now we shall discuss the

importance of human resources management.


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Role of Human Resources Management

Human Resource Management plays the most crucial role in the management of an organization.

Human resources play crucial role in the conversion process of inputs into outputs, Product design,

quality maintenance, rendering services etc., depend upon the efficiency of human resources .Similarly,

human resources plays critical role in marketing the products and services, Human resource also plays

significant role in managing finances and managing information systems. Role of HR at TCS is presented

in below figure.

Figure 1.3: Role of HR at TCS

Training

(Technical/

Behavioural)

Career

development/

monitoring

Performance discussions and

performance management for

all at a centre

Allocations to

projects(Domestic

/Overseas)

Recruitment The Centre


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COMMUNICATION IN COROMANDEL

Name of the process : Communication

Process owner : Regional Heads of HR

PCMM Goals addressed by this process :Information is shared across the Organization.

Individuals or groups are able to raise concerns and have them addressed byManagement.

Inputs

!.Current Business

Performance

2.Current Unit

Performance

3.Future perspective of

Key Steps

1.Eomm-standard

Communication.

2.Annual communication

Meeting with

President.

Outputs

1.WellInformed

Employees.

2.Feedback from

Employees.


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Communication and co-ordination practices are institutionalized to ensure they areperformed as managed process.

Information about business activities and results is communicated throughout theOrganization.

Process Measure :

Communication

1.Approach

Process Metrics

1.Percentage of employees attending ACM,UCM.

2.Percentage of communication.

3.Average scores on tests conducted on

Employee Communication Effectiveness

Documents