HR Project

A REPORTON

SUMUL DAIRY, SURAT

(Surat District Co-operative Milk Producers’ Union Ltd.)

A study on Production, Finance, Marketing and HR practices.

Prepared by: Hitesh Patel

Prepared for: PGDM(HR) Programme Sinhgad Business

School,PuneACKNOWLEDGEMENT

I take this opportunity to express my heartfelt gratitude to Mr. Jayesh Desai,Managing director,Sumul Dairy and Mr. Babulalbhai Patel(Human resource) for allowing me to undertake my training at Sumul Dairy and for their guidance. I am thankful to Mr. Patel (Accounts Department) for providing me with the necessary information whenever required.

I am thankful to Prof.V.B.Ambaday for giving us this great opportunity to actually see how organizations function towards the achievement of their goals and objectives.

I am also thankful to all those members of Sumul Dairy, Surat who gave me constant encouragement and guidance during the entire project and Last but not least, I would like to thank my friend co-trainee students who directly or indirectly helped me in the hour of need in the preparation of this project report.

INDEX

I. AN INTRODUCTION TO SUMUL DAIRY:

Introduction Company Overview History Sumul’s mission & vision statement Objectives of Sumul Quality Policy Environment Policy Work area of Sumul Units of Sumul and Their Capacity

II. AN INTRODUCTION TO THE PRODUCTS OF SUMUL:

An overview of Sumul’s products Milk & its nutritive value Milk intake & milk-intake in different forms Types of milk Sales volume Growth path of Sumul products

III. A STUDY ON HUMAN RESOURCE MANAGEMENT OF SUMUL:

Hierarchy of HR department About the Personnel Management HR Objective Role of HR in Sumul HR activities Facilities provided to the employees Recruitment & Selection process Training & Development system Motivation Programmes for the agents Performance appraisal system Promotion & Transfer policy Wage & Salary structure General information related to the HR department Personnel Information System & Pay-roll Accounting System

ANINTRODUCTION

TOSUMUL DAIRY

(Surat District Co-operative Milk Producer’s Union LTD.)

CONTENTS:

Introduction Company Overview History Sumul’s mission & vision statement Objectives of Sumul Quality Policy Environment Policy Work area of Sumul Units of Sumul and Their Capacity

Introduction

The Sumul district Co-operative milk producer’s union ltd. (SUMUL dairy) is a co-operative endeavor committed to help marginal farmers and down trodden tribal people to lead to a healthy life and better standard of living through scientific animal husbandry

practices. Today’s Sumul enjoys the pride to serve milk and milk products to populous Surat city and surrounding towns of it.

Sumul holds strong brand equity in Surat district and command more than 70% of the liquid milk in Surat city, to make the distribution system fast and to deliver milk in time they have as many as milk transportation routes and 1531 agents (1386 regular and 145 full time)

The area of operation of Sumul is the entire district of Sumul. The present milk procurement of 160.929,736 liters of milk annually makes it the third largest union in the state after the AMUL and Mahesana dairy. The present market of Surat for liquid milk is around 4.5 lakh liters per day. This has necessary active development of “by-product” market.Products so far introduced are paneer, ghee, flavored milk, Shrikhand, sweet, lassi, butter-milk etc.

Sumul consists of 13 Board of directors, one each of 13 talukas of Surat district and these boards of directors from themselves elect the chairman. The total number of employees is 1100 besides the contract workers.

Under Sumul’s activities, Surat district is now firmly established as a milk shed and is growing from strength to strength.

Hence, Surat district co-operative milk producer’s union ltd, SUMUL is trade name and literally meaning sound process, came in to existence on august 22, 1951….The formal commissioning of the pasteurization plant on March 17,1968 was a turning point from Sumul.

COMPANYCOMPANY OVERVIEWOVERVIEW

Name : Surat District Milk Producers’ Union Ltd. (SUMUL)

Address : Surat District Milk Producer’ Union Ltd. Post Box No.-501, Sumul Dairy, Surat- 395008 PH: 2427691-94, 2422137, 2418717, 2418666 Fax: +91-261-2433572 E-mail:

Owner : P.R.Patel

Milk Chilling Plants along with capacity of Milk Chilling:

Bajipura 3, 00,000 Ltrs per DayUchchhal 1, 00,000 Ltrs. per DayNavi Pardi 2, 00,000 Ltrs. per Day Chasvad 30,000 Ltrs. per DayDediapada 30,000 Ltrs. per DayNo. of Milk Producers Co-op.: 956

Total membership and Nos. of Primary Milk Producers' Cooperatives. :

Milk Cooperatives Managed by women: 81

No. of Mobile Veterinary Clinics: 22

No. of Veterinarians: 40

No. of A.I. Centers: 130

Cattle feed Mixing Plant capacity: 300 Mts. per day Mineral Mixture Plant: Production and sale: 45000 packets for Milk

Producers History:-

Sumul or Surat Milk Union Limited, which is now renamed as The Surat District Co-operative Milk Union Ltd, is one among the 12 district unions which acts as manufacturing unit of dairy products for Gujarat Co-operative Milk Marketing Federation Limited, the marketers of Amul and Dhara brand of products. Surat District has been a Pioneer in India in channelizing trade in Cotton and Milk through co-operatives. Before SUMUL stepped in, traditional Private Milk Traders were dominant in the area.

Category of the society Number of societies Memberships

Tribal 898 171502

Non-tribal 79 32703

The private trade was monopolizing the Milk market and exploiting both the Milk Producers and Consumers alike. The milk procurement price which used to be fixed by the traders (traditional Bhatias) was very low and was fluctuating from time to time at their sole discretion. These middlemen have capitalized on the absence of any infrastructure and processing facilities and have managed to keep producers from deriving equitable benefits from the marketable surplus generated. As such their income from milk was very low and they had no incentive for modern dairy farming. The farmers resented the system, but were helpless in the face of these traditional constraints and to their own lack of resources.

Dairying on the other hand, was never popular with tribal people (a major rural population in the District) as practically no infrastructure existed for milk marketing in their talukas, inaccessibility to their villages as well as taboos regarding keeping of buffaloes prevented the entire population of tribal people from considering dairying as a source of income. The tribals kept their cows to produce bullocks rather than milk, which was insufficient even to nurse the calves. Most of the tribal people were unaware of the usual milch breeds, what to say about Scientific Animal Husbandry?

Hygienic and pure milk was almost unknown in the market. In fact unbridled adulteration of milk was practiced by these traders to meet the growing demand of milk in the city. To salvage the poor producers from the clutches of these Private Traders, Organization and integration of procurement, processing and marketing of milk and milk products by the producers themselves on a sound co. operative line was essential; this would also ensure elimination of middlemen, equitable distribution of benefits to Rural Milk Producers and indirectly to urban milk consumers as well. Hence, the Surat District Co. operative Milk Producers' Union Ltd., SUMUL is trade name and literally meaning sound price, came into existence on August 22, 1951, with the joint untiring and dedicated efforts of Veteran Leaders of Co-operative Movement. Shri Ashabhai S. Patel became the first Chairman. • The society was registered on August 22, 1951 under the Bombay Co-operative

Societies Act, 1925.

Sumul’s Mission & Vision Statement

“WE ARE SOCIALLY RESPONSIBLE ORGANISATION WITH COMMITMENT TO CONSUMER DELIGHT AND RESPECT FOR ALL. WE BELIEVE IN GROWTH AND CONTINUOUS IMPROVEMENT THROUGH TEAMWORK, TRUST & EXCELLENCE WITHOUT COMPROMISING OUR HONESTY AND INTEGRITY”

It is a statement of what business we are in and sometime our ranking in what business has also the competitive advantage that we want to have over the others. It is quite obvious from the mission statement of Sumul that the organization is committed to customer satisfaction and believes in providing the highest quality of product to them. In fact, for ensuring highest quality product, it has already put into practice TPM and TQM tools in the organization besides many Quality Circle (QC) and Small Group Activity (SGA) operating in the organization to achieve the vision and mission. To achieve its vision & mission, Sumul has-To achieve its vision & mission, Sumul has-

1.1. To identify the best practices, provide training to all operators and standardize To identify the best practices, provide training to all operators and standardize equipment operation.equipment operation.

2.2. To identify willing people to start with and provide to them the knowledge acquired To identify willing people to start with and provide to them the knowledge acquired from the practices.from the practices.

3.3. To eliminate waste and reduce delays by adapting innovative ideas.To eliminate waste and reduce delays by adapting innovative ideas.4.4. To encourage excelling SGA and recognizing them to achieve every employee’s To encourage excelling SGA and recognizing them to achieve every employee’s

participation.participation.

SUMUL VISION 2006:

Vision is a dream created in our working hours of the organization. It can be described as a “living picture of future ” . It is inspired by the values that we cherish

Year 2005 Year 2006TURNOVER RS.551 Corers RS. 522 CorersMILK PROCUREMENT 7,51,000 Liters 8,50,000 LitersMILK SALE 5,51,000 Liters 5,51,000 LitersQUALITY International std. ISO 9000

HAACCPInternational std. ISO 9000

HAACCPPRODUCTION COST Minimum Production cost Minimum Production costDISTRIBUTION SYSTEM Consumers oriented, Quick

and effectiveConsumers oriented, Quick

and effective

OBJECTIVES OF THE SUMUL DAIRYOBJECTIVES OF THE SUMUL DAIRY The Sumul Dairy was established with the following objectives:

To provide guaranteed remunerative milk market round the year for surplus milk. To provide maximum return to producers To Provide good quality Milk and Milk Product to consumers To increase milk productivity at most economic rate by providing technical input

services to the producers.

FUTURE OBJECTIVES OF SUMUL: -

The Sumul Dairy shall provide proper Nutrition and Good Health to its customers in addition to achieving customer delight.

TECHNIQUES EMPLOYED FOR REALZATION OBJECTIVES: - The underlying principles of the techniques being employed to realize the objectives are listed as under:To increase the milk production potential and productivity in the milch bovine population of the milk shed area at economic costs by bringing a positive change in:

Genetic structure of milch animals by implementing accepted Breeding Plans/Policies (selective breeding in buffaloes and cross-breeding in cows using Pedigreed Jersey OR H.F. Bulls semen) and by timely and effectively breeding them with due follow-up to bring down the long dry periods within the desired limits.

Composition of feed, fodder and their availability as per the requirement of various categories of animals.

Management of animals for exploiting they’re full potential of productivity at economic rates.

Milk procurement practices, speedily, efficiently and economically with least source of milk.

Milk handling processing & conversion as per the concept of modern dairying.

Milk marketing, packing, transport and retailing system to meet the consumers' demands effectively, economically and efficiently with no undue accumulation of milk and milk products.

Management of Union at the district level and societies at the village level most efficiently and on sound co-operative lines, keeping the overhead expenditure within the prescribed limits and also maintain the status of Audit Classification "A" on a continued basis, under the continuous and concurrent audit system.

QUALITY POLICY :

“WE AT SUMUL DAIRY, ARE DEVOTED, DEDICATED AND MOTIVATED WORKFORCE TRAINED TO ENSURE CONSISTENT SUPPLY OF GOOD QUALITY AND SAFE MILK AND MILK PRODUCTS TO ACHIEVE HIGHEST LEVEL OF CUSTOMER SATISFACTION.

WE WILL ACHIEVE THIS BY MONITORING AND UPGRADATION OF PROCEDURES AND PROCESS APPLYING SCIENTIFIC INNOVATIONS AND STATE OF THE ART TECHNOLOGY AND REMAIN ECOFRIENDLY.”

Objectives of the Quality Policy:- ->To procure clean and good quality milk and to ensure timely and consistent supply to

union.

->To ensure maximum production of milk by utilizing the state of art services like artificial insemination from trained and qualified personnel of the union.

->To ensure economical and social development of producers by maximizing the return.

->To maximize the number of woman producer member by remaining united with the sprit of cooperation.

TOTAL QUALITY MANAGEMENT:

Union has adopted International Standards for Quality Management. QAS Australia has certified our quality management systems by issuing ISO 9002, ISO-14001 and H.A.C.C.P. Certificates. By adopting quality management system, Sumul Dairy’s Union has standardized all process and procedure system for production of milk and milk products. As usual, it is easy to design system but difficult to implement it. But with active Participation and dedication of our workers and staff & with better leadership & guidance of Board of Directors, Officers, Continuous training programs under TPM and GMP, we have successfully Implemented ISO Standards. At every six months interval, Total Quality Management System has to be audited and if found proper as per standard Quality Management norms then certifications are renewed. Sumul has received continuous renewals.

INTERNATIONAL I.S.O - 14001 CERTIFICATION FOR ENVIRONMENT CONTROL.INTERNATIONAL I.S.O - 14001 CERTIFICATION FOR ENVIRONMENT CONTROL.

Accreditation of ISO 14001 certificate is a testimony of our commitment towards our customers for 100% quality safe milk and milk products. By complying with Terms and Conditions of ISO 9002, ISO 14001, HACCP, Quality Management and Environment Control, Union has undertaken various measures for fully automation in their various production lines; installation of Automatic Machinery in various production lines is in progress.

QUALITY & ORGANISATIONAL FOCUSQUALITY & ORGANISATIONAL FOCUS

Sumul is doing value addition at each stage in terms of

Improving raw milk quality, controlling microbiological growth & Improving Product shelf life by-

Coordination between CD Development Dept, Chilling Centers, Marketing, Production & QC

Undertaking activities like - Clarification, Pasteurization, Standardization, Bacteriological Testing etc Process Reengineering undertaken

for optimizing process & storage temperature Reduction in Material Handling during manufacturing process & usage of SS Pipelines

& Equipment. Technological upgrading of equipment's by incorporating state of art technology & Automation in certain areas

CIP through Centralized CIP unit supported by Manual Scrubbing of Pipelines & Tanks etc.

Improving MBRT at all levels

By the adherence to Standards PFA, W&M & NDDB ISO 9002 / HACCP & 14001

By Improving Good Manufacturing Practices Implemented TQM, KAZIEN, SQC & TPM concept at all stages. Increased Overall Equipment Efficiency (OEE)

Reduction in Machine Down Time Increase in Preventive Maintenance Reduction in Leakage, Quality Rejection & Reprocessing

Availability of Maintenance Personnel at Floor Multi skill development Reduction in Utility Consumption

By implementing computerization at each level, Centralized Oracle based Data Management System for all activities for sharing information & analyzing it whenever required.

Employees Development Training on Personality Development Training on Self Management Leadership (SML) Training on Quality Concepts

Total Quality Management (TQM), Quality Circle, Small Group Activities, Kaizen, Statistical Quality Control (SQC)

Total Productive Maintenance (TPM) ISO 9000 / HACCP & ISO 14001

ENVIRONMENT POLICY

Surat District Co-operative Milk Producers Union Ltd., is engaged in manufacturing of Milk and Milk Products and Marketing it within Surat District under “SUMUL” brand and outside Surat district under the brand of “AMUL “ or “Sagar”. We are conscious and committed to protect and preserve the environment.

The guiding principles of our Environmental Policy are as follows:-

1. Comply with all applicable environmental legislation, regulations and other requirements

2. Control Plant operations to conserve natural resources such as water, electricity and fuel and prevent pollution

3. Promote greening of Earth in and around our manufacturing complex 4. Minimizing generation of waste / effluents. 5. Continual improvement of our environmental performance Creating awareness

towards environmental issues among suppliers and stake holders.

Work Area of SUMUL

Main Dairy Plant (Taluka/ Tahsil Name) Chilling Center (km distance from Surat)

Cattle Feed Factory

SUMUL dairy is located near railway station road in Surat. It covers 15,000 – acre land. Sumul provides milk collection facilities at the producer’s door in each village co-operative society, where milk is speedily, efficiently and economically transported twice a day to its dairy plant and chilling centers for processing and marketing.

Since the milk procurement system has been extended far and wide in the entire district. Sumul have 5 chilling center at Bajipura, Uchchhal, Navi Pardi, Chaved and Dediapada site at a distance of 50,105,25,110,146 km respectively from Surat city. The chilled is then transferred to the mail plant at Surat railway station road.

Units of SUMUL & Their Capacity

No. Chilling Center Establishment Capacity in LPD Distance fromSurat (km )

1 Sumul dairy 1951 500000 02 Bajipura 1975 300000 503 Uchchhal 1982 100000 1054 Navi Pardi 1996 200000 255 Sumuldan 1970 300 mt/day 20

These 5 chilling centers have been provided with equal opportunities of milk marketing to the distantly inhabited tribal milk producers, which aids the economy of their milk production enterprise or else they would have been obliged to dispose of their milk to the middlemen at very low price. These chilling centers were established with a view to improve the quality of milk and ease pressure at its headquarters. A large plot of area was bought while establishing Navi Pardi Chilling Center keeping in mind to shift the dairy plant from city, if the need arises in future.

AnINTRODUCTION

To“The Products of Sumul”

CONTENTS:

An overview of Sumul’s products Milk & its nutritive value Milk intake & milk-intake in different forms Types of milk Product mix of Sumul dairy Types of Products & their recipes Sales volume Growth path of Sumul products

PRODUCTS OF SUMUL FROM 1968 TO 1990

•Only Three Products

PRODUCTS OF SUMUL FROM 1990 onwards

18 Milk Varieties & 13 Products

AN OVERVIEW OF SUMUL PRODUCTS:-

Milk Products:

Milk is the main product, produced by SUMUL Dairy. Milk acts as a raw material for the other products of Sumul like curd, butter milk, paneer, etc. Sumul processes variety of milks such as whole milk, toned milk, cow milk, etc because the demand of milk differs from customer to customer. Sumul tries to fulfill all the demands .e.g. people who want ‘Malai’, purchases whole milk whereas the standardized milk is used for tea.

A white or yellowish fluid secreted by the mammary gland of animals. It consists of emulsion of fat in water with casein and other proteins, milk sugar and inorganic salts. The solids other that fat include protein, carbohydrates, water-soluble, vitamins and minerals.

According to the prevention of food adulteration rules 1995,the percentage of milk, fat and SNF in different classes and designation of milk specified respectively are as follow: Buffalo milk (5%-6% and 9%), cow milk (3%-4% and 8.5%) recombined milk (3% and 8.5%) double toned milk (1.5%-9%) and skimmed milk (not more than 0.5% and 8.7%) the fat percentage for the milk of Cow and Buffalo varies from state to state and is detailed is DFA rules.

MILK & ITS NUTRITIVE VALUE:-

Milk may be defined as the normal secretion of the mammary glands of females for the nourishment of their young off-spring. Milk is a white opaque liquid and it is supposed to have a typical, clean, slightly sweet taste and should have a clean smell. Milk secreted for a few days after parturition and characterized by high proteins and

MILK

FAT SNF

VITAMIN A D E K

PROTEINMINERALSCALCIUM IRON LECTORS

immune body content is called colostrums which is ideal and a must for the overall growth of the young off-spring. From a nutritive stand point, milk is defined as the most nearly ‘perfect food’. It supplies more of essential nutrients in significant amount than any other single food.

Breast milk is different in its composition from cow's milk. It has higher lactose content and lower protein content

TYPE OF MILK % FAT % PROTEIN % LACTOSE % ASH % BIOWATER

HUMAN 3.8 1.0 7.0 0.2 88.0

COW 4.0 3.4 4.8 0.7 87.0

BUFFALOE 7.4 3.6 5.5 0.8 82.1

CAMEL 4.5 3.6 5.0 0.7 86.2

HORSE 1.9 2.5 6.2 0.5 88.9

GOAT 4.5 2.9 4.1 0.8 88.7

SHEEP 7.3 5.5 6.1 0.4 80.7

WHALE 19.6 9.5 0.0 1.0 69.9

ELEPHANT 19.6 3.1 8.8 0.7 67.8

TYPE WATER FODD

ENERGY PROTEI

N FAT CARBO

HYDRATE ASHCALCIUM PHOS

PHOROUS

IRON V I T A M I N S

A B1 B2 NIACIN

C

% k,CAL % % % % mg mg mg I.U. mg mg

mg mg

MILK 87 68 3.5 3.9 4.9 0.7 118 93 0.1 160 .04 .17

.1 1

SKIMMILK 90.5 36 3.5 0.1 5.1 0.8 123 97 0.1 Trace

.04 .18

.1 .1

BUTTER 15.5 716 0.6 81.0

0.4 2.5 20 16 0.0 3300 Trace

.01

.1 0

CHEESE 37 398 25 32.2

2.1 3.7 725 495 1.0 1400 .02 .42

Trace

(0)

ICECREAM 62.1 207 4.0 12.5

20.6 0.8 123 99 0.1 520 .04 .19

.1 1

MILK INTAKE :

Preschool Children (3-6 yrs.) 750mL

Elementary School Children (6-12yrs.) 625mL

Adolescent (13-19yrs.) 500mL

Adults (Above 19yrs.) 500mL

1 Glass of milk= 250g of curd= 45g of paneer

MILK INTAKE IN DIFFERENT FORMS :

Milk 1 glass 250mL

Curd 1 bowl 100g

curd as raita 75g

Paneer as curry 60-80g

as curry with pea/other vegetable 30-40g

Types of Milks:

Name FAT (%) SNF (%)

Whole Milk 6 9Toned Milk 3 9Cow Milk 3.5 8.8Skim Milk 0.07 9.3ESL Milk ----- -----Standardize Milk 4.5 9Buffalo Milk 5.5 9

PSM 4.7 8.8

Sumulya 6.2 9.1

Growth path of SUMUL products:

Products Year

Milk distribution in bottle 3-5-1968Establishing member of GCMMF 9-7-1973Milk distribution in polybag 7-12-1978Butter milk distribution in polybag 1-6-1987Whole milk (SUMUL YA) in bulk 1987-88Whole milk (SUMUL YA) in 500 ml 1991Homogenized toned milk in 500 ml 1994Homogenized toned milk in 200 ml 1995Flavor milk 1993Paneer 1994Sweets 1994Shrikhand 1995Masala Chhas 15-8-1999

Flavored milk in 200 ml pouch 15-8-1999Pasteurized milk in 5 liter pack 1998Masala Chhas, methi Chhas 2000Pizza & Ice-cream 2001Rasgulla, Gulab Jamun,Sugar & Cow milk 2002

Tea 2003

Glabletop Packing for Milk (Plane & Flavored) 2004

Buttermilk in ESL Packing 2005Cold Coco 2005

ORGANIZATIONAL STRUCTUREOF SUMUL

NUMBER OF DEPARTMENTS:-

There are 10 departments at Sumul, they are as follows.

1. HR department, 2. Finance department, 3. Sales & Marketing department,

Chairman

4. Veternity Department, 5. Production & Engineering Department, 6. Accounts Department & Audit Section,

7. Assembling Department, 8. Quality Department, 9. Store & Purchase Department, 10. Information Technology Department.

A STUDY ON

HUMAN RESOURCE DEPARTMENT OF

Sumul

CONTENTS:

Hierarchy of HR department About the Personnel Management HR Objective Role of HR in Sumul HR activities Facilities provided to the employees Recruitment & Selection process Training & Development system Motivation Programmes for the agents Performance appraisal system Promotion & Transfer policy Wage & Salary structure General information related to the HR department

Personnel Information System & Pay-roll Accounting System

Hierarchy of Organization :-

Board of DirectorBoard of Director

ChairmanChairman

Senior Executive OfficerSenior Executive Officer

Managing DirectorManaging Director

Junior Executive OfficerJunior Executive Officer

Senior Assistant Senior Assistant

Junior Assistant Junior Assistant

Technician Technician

Workman Workman

About The Personnel Management:-

Personnel department is the key department of any business. It is the work force of any organization, which becomes liable for company’s success or failure. Personnel management is that part of management, which is concerned with people at work and with their relationship within an enterprise. Its aim is, to bring and develop into an effective organization. The men and women who make up an enterprise and having regard for the well being of individual & of working groups to working groups to enable them to make their best contribution to its success.

The meaning of the personnel dept., labour management or staff management means quite simply the task of dealing with human relationship within an organization.

Personnel management is a continuous process. Personnel management is a never-ending process. It helps in achieving objectives of company. This is done by proper performance of personnel function like recruitment, selection, training & development, labour activity, motivation, welfare etc. it also helps to keep a smooth relationship between employers & employees.

Sumul believes that the most significant resource is its Human Resource and Sumul’s Success in the long run depends very much on the quality of its human resource. Human resource comprise the aggregate of employee attributes including knowledge, skill, experience and health, which are presently available to the organization for the achievement of its goal, objectives and service to the society.

HR Objectives :

To develop and sustain core values. To develop business leaders of tomorrow. To provide job contentment through empowerment, accountability and

responsibility. To build and upgrade competency through virtual learning, opportunities for

growth and providing challenge in the job.

To foster a climate of creativity, innovation and enthusiasm. To enhance the quality of life of employees and their family.

Role of HR in SUMUL :

Alignment of HR vision with Corporate Vision Shift from support group to strategic in business operations HR as a change agent. Enhance productivity and performance by developing employee competency and

potential. Developing professional attitude and approach Developing ‘Global Managers’ for tomorrow to ensure the role of global players.

Human Resources Activities:

The main activities of this department are selection, training, recruitment, and welfare actives.

To diffuse the effect of Global Competition, Sumul has adopted the latest concepts of management practices and provided appropriate training with the help of leading institute from time to time for up-gradation & development of its Human Resource. Some of the efforts of Sumul to achieve this are:

Employee Personality Development (Attitude, skill & Knowledge) 1995Self Development (Self management Leadership, Meditation) 1995Total Quality Management, QC, SGA, Kaizen, SQC 1996Total Productive Maintenance 1999Meditation Hall 2000

Facilities provided to the workers :

1. Washing facilities:The facility for washing clothes is provided to all the employees.

2. Storage & Drying facility:The full time workers are given personal lockers to store their things

and also facility for drying clothes.

3. Canteen facility:Canteen facility is provided to employee to take Break-fast, Lunch

and Dinner at economic price.

4. Rest room is also provided to take rest during the Lunch hours.

1. First aid facility is given for quick remedy of employees, when any accident occurs during the working hours of the organization.

2. Vehicle parking space is provided for employee, worker and visitors separately.

3. Accommodation:Organization has provided township & accommodation facilities to

employees.

4. Vehicle loan is given to Employee / Executive only.

5. Department stores:“KAMDHENU” department store is in the staff ready credit society /

Staff Quarters to purchase all necessary items at economic rate for employee.

10. Uniforms, Shoes and Raincoats:Uniforms, Shoes and Raincoats are provided to all employees and

workers.

11. House rent recovery:House rent recovery for those employees who live in rental house.

Recruitment & Selection Process:

Recruitment:

Sumul as such does not have a well-defined recruitment policy. Recruitment is basically done by HRD department in consultation with the concerned department for which new employee is required. It is not a regular event as recruitment is done only when there is any vacancy or some requirement comes up in the organization. All the new employees must meet the minimum experience and qualification criteria as set by personnel department.

Recruitment Process:

HR Department receives requisitions. Locating and developing the sources of required number and type of

employees. Identifying the prospective employee. Communicating the information.

Generally, two types of SOURCES are used in the Organization:

1. Internal sources It is generally done through promotion and training programs.

2. External sources Direct Personal Interview:

By giving advertisements in the newspapers

Employment exchange:These agencies are providing a wide range of services,

counseling assistance in getting jobs, information about the labour market and labour wage rates.

Campus interview. Advertisement.

Selection Process:

The Selection Process is concerned with determining whether an applicant meets with all the qualification need to perform a particular job. It means right person a right place. It is very important because of a wrong person is selected it will cost to the company. Need of selection would be arise when vacancies are made in organization. Procedure for selection differs from organization to organization and from job to job.

For Executives:

Written Test- Aptitude test- Subject test

Group Discussion Interview Final selection

For Non-Executives:

Written Test Final interview Final selection

Training and Development System:

“To bridge the gap between job requirements and present competence of an employee”

Need for Training:

1. Job Requirements.2. Technological Changes.3. Organizational Viability.4. Internal Mobility5. Organizational Viability.6. Internal Mobility

Training is given in 3 Categories-

1. Management Training.2. Office Training3. Senior Executive Training

The management training is given for 6 months. Officers and senior Executives attend the management development programmed organized by the institute. Training is not uncommon in Sumul. It has an elaborate training program to make employees acquire new skills and knowledge. Both internal and external training is carried out as and when required. Following are the data of internal and external training programmed conducted by Sumul in the last five years.

The management training is given for 6 months. Officers and senior Executives attend the management development programmed organized by the institute. Training is not uncommon in Sumul. It has an elaborate training program to make employees acquire new skills and knowledge. Both internal and external training is carried out as and when required. Following are the data of internal and external training programmed conducted by Sumul in the last five years.

Number of Training Programs

Programs 2001-02 2000-01 1999-00 1998-99 1997-98

No. of in-house Programs 144 53 20 - -

No. of Participants 1762 628 415 - -

No. of External Programs 9 9 14 16 22

No. of Participants 55 31 43 55 57

Total Programs 153 62 34 16 22

Total Participants 1817 859 458 55 57

In addition to this, Sumul also has the policy to sponsor employees for higher education to various institutes. The following table shows the number of employees sponsored by Sumul.

No. of Employees sponsored for higher studies

Particulars 2001-02 2000-01 1999-00 1998-99 19997-98Employees Sponsored for

2 2 1 - -

Advance Study continue

Motivation Programme for the agents:-

Agents are front soldiers in the market, so keeping them motivated is very essential. In this regard the union has planned to conduct several programs regularly, such as

• Arranging agents meeting area wise in heir area itself to understand their problem.• Half yearly general meetings of all agents in dairy.• Performance based award system.• Recognition of regular agents.• Arrangement of soft loans for vehicle, deepfreeze and household things with the

negotiation of bank.• Solving agents’ problem immediately.• Training of agents on consumer behavior.• Efficient cash collection through more cash collection centers near to agents selling

price.• Agent renewal system introduced.

Performance appraisal System:

“Performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job”.

After recruitment organization gives specific project to the employee to train him. After completion of this project, it is checked by the authorized person of the department if the employee do not perform well then they are terminated from the organization. Performance Appraisal System is still in rudimentary stage in Sumul. Through Performance the top management does appraisal or reporting head, it is short on comprehensiveness and touches only few aspects. However the silver lining is that in order to make system transparent and open, evaluation is cross-checked with the employee by HRD people and in case of some differences try to solve out the problem

Promotions and Transfer Policy:

->Promotion Policy:

The Management Trainees are given 6 month training and later on if they perform well are promoted as provisionary and after one year they are confirmed. Moreover promotion is given on the basis of education obtain by different personnel.

->Transfer policy:

There is not any policy for transfer, but managing director of the organization generally takes the transfer decisions.

Wage & Salary Structure:

Dearness Allowance Additional Dearness Allowance (ADA) House rent Allowance (HRA)

Some fixed amount of house rent allowance is provided for those who live in rental house. Sumul has a “fixed increment system” for each level of authority in the organization. Only one increment is given a year. However for calculating increment for an employee, the period of time the day of his joining. Rather month of January and July are considered as base month for the same. For instance, an employee joining the organization in second week of January in 1999 would be having his next increment due in 2000 July not in January. There is also a compulsory increment every 14 and 23 year in which, the employee becomes eligible for immediate next salary scale. Plus two

increments without any change in his/her designation. However, during last agreement, upgraded employees have also been given designation as per new salary scale. Recently, Sumul has revised its pay structure to attract more young talents.

->Leave Travel Allowance (LTA) Every year allowance is given to employees for traveling any place. This

amount is also fixed. Super Annuitant Scheme (SAS) it provided after every 3 years (BASIC+DA+ADA).

->Washing Allowances (WA) Rs. 20/- is provided every month as washing allowances to worker category.

->City & Travel Allowance (CTA)Those who live in city are given these allowances more than those are in

the village.

->Shift Allowance (SA)Shift allowance is provided in following way:

PRESENCE FOR ONE-MONTH ALLOWANCE (RS.)

25 & More 6524 6023 4522 3021 1520 & Below 00

->Visiting Allowance (VA) This allowance is given to the entire field officers and veterinary officer.

->Bicycle Allowance (BA)It is give to all permanent employee of worker category.

->Scooter Allowance (SA)This allowance is given to all the officers and marketing executives.

->Driving Allowance (DA)It is giving to the drivers of tempos and trucks of SUMUL.

Other Components:a) Bonus

(8.33% of BASIC +DA+ADA)b) Funeral Fund

Rs.3000 to the ward and family of the dead.Every month Rs1/- of all higher executives salary is maintained for this fund

Human Resource ( HR )

Centralized Address Directory

– Central source for address requirement in any system – Grouping of addresses – Data retrieval using multi-dimensional search criteria

Time Attendance System

– Tracking employee attendance data using biometric device (finger based)– Same data used in payroll for salary processing

Income Tax System

– User defined formulas– Provisional/Estimated Income Tax statement – Form 16, Form 24 & SARAL

Personnel Information System & Payroll Accounting System

Objectives of the Personnel Information

– Basic information about each employee – Supports unlimited earning & deduction parameters – Salary Processing & Pay slip generation – Bonus / Ex-gratia calculation – PF & SAS passbook – Payroll data used for Income Tax calculation

The HR department keeps the information of each and every employee from top to bottom level workers. This information is updated from time to time. This Personnel information includes name, address, gender, birth date, designation, name of the department where the employee or worker is working, job responsibilities, shift no., job code no. etc ..With the photograph of the worker/employee.

MY EXPERIENCE

Summer placement is an important aspect of management studies as it provides the students with an opportunity and experience of working in an industry. My training at Sumul dairy was a great learning experience.

It was an opportunity for me to see how Sumul Dairy manages the milk processing and milk distribution in a very efficient manner for proving pasteurized, nutritional milk to whole population of Surat everyday. And also gives the milk producers (farmers) the maximum return for their contribution. Even being a Co-operative society, Sumul dairy manages everything in very professional manner.

Apart from various aspects of Dairy Technology, I also learnt how the theory is put into practice in these organizations. I came to know that the activities, carried out in the organizations are actually very different from what we learn in the classroom.

To know about various aspects of Sumul Dairy, I interacted with all the levels of employees of Sumul Dairy. And as a trainee, I got very good response from them. I also found a work atmosphere there was very cordial. The Plant visit gave me an exact idea of how the care is taken for very minute aspects, related to production for cleanliness at Sumul dairy.

Training at Sumul dairy will surely help me in my future endeavours.