report

Organisation study and study of motivational factors of employees of ANEL

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CHAPTER 1

INTRODUCTION AND THEORETICAL BACKGROUND


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1. ORGANISATION AND ORGANISATOINAL STRUCTURE.

ORGANISATION.

One man or a group of people cannot do all the jobs in a business enterprise. Hence

several groups of people have to work together to achieve the goals of the company. Thus

an organization is created.

An organization is defined as a structure that enables people to work together,

efficiently to achieve the goal through division of labour and function, and hierarchy of

authority and responsibility.

IMPORTANCE OF AN ORGANISATION.1

Facilitate administration

Well designed organization structure makes it easier to manage the operations smoothly

and efficiently.

Facilitate division of labour.

The work is sub divided into task/activities in logical and scientific manner and assigned

to each position. Thus each position has an assigned task.

Facilitate division of Authority and Responsibility.

Authority and responsibility can be suitably divided and distributed to several levels and

positions as per company’s requirements. Each position has its own inherent authority

and responsibility.

Effective use of manpower.

Best – suited person is selected and placed in each position to do the task. He carries the

necessary authority and responsibility, assigned to his position.


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Facilitate growth.

Provide framework for the growth of the business enterprise as well as of the individuals.

Ensure continuity.

In the event of resignation/retirement of person or a discontinuity, a good organization

structure will ensure continuity of its activities without disruption.

Simulate creativity.

It will motivate and encourage innovation and creativity of the people in their own work.

Encourage specialization.

People with special skills and talents are placed on the appropriate jobs. This will

encourage specialization.

Optimum resources utilization.

Make the best use of resources like men, materials, machineries and money.

Facilitate training and personnel development.

Provide training and retraining to employees as per their job requirements. Also facilitate

self-development by undertaking responsibilities.

Maximum productivity.

Maximize efficiency, employee and machine utilization, reduce waste, cost and

expenditure at all levels and in all activities.

Prevent corruption.

Provide checks and balance to prevent and detect corruption.

Survival at bad times.

A good organizational structure will enable the employee to survive at bad times by

building company loyalty and good interpersonal relationship among employees.


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ORGANISATIONAL STRUCTURE2

Organizational structure is a formal and informal framework of policies and rules,

within which an organization arranges its lines of authority and communications, and

allocates rights and duties. Organizational structure determines the manner and extend to

which roles, power and responsibilities are delegated, controlled, and coordinated and hw

information flows between levels of management. this structure depends entirely on the

organization’s objective and the strategy chosen to achieve them. In a centralized

structure, the decision making power is concentrated in the top layer of the management

and tight control is exercised over departments and divisions. In a decentralized structure,

the decision making power is distributed and the departments and division, in a

decentralized structure the decision making power is distributed and departments and

divisions have varying degrees of autonomy. An organizational chart illustrates the

organizational structure.

1.4 ORGANISATIONAL STUDY

Organizational study is done to analysis the structure of an organization, its hierarchy,

its work flow and department wise details about the work force and work flow.

An organizational study helps to know the organization better, and helps to find better

ways to tackle problems and find solutions for them, as in gives insight about the working

of the organization, it tell about the strength, weakness , opportunity and threat related to

organization and helps to asses the firm better.


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1.4 THEORY OF MOTIVATION3

Motivation is a need or desire that causes a person to act; to have initiative, spirit or be

enterprising.

Human needs have wants and desires, which can influence their behavior. Only

unsatisfied needs can influence the behavior, satisfied needs do not act as motivators.

Since needs are many, they are arranged in the order of their importance or hierarchy,

from the basic to the complex. Further up the hierarchy the person is able to go , the more

individuality, the humanness and psychological health he or she will display. In this

context the study on self motivation is important.

1.4.1 Different views of motivation.

Employer’s Point of View:

Productivity

Paycheck

Job Satisfaction

Employee’s Personal Motivation

We are making a contribution

Supervisor’s praise

Respect of colleagues and peers

Being informed of happenings

Having meaningful & interesting

work


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How to motivate Employees

Track project results & celebrate milestones (keep yourself informed of progress)

Give support and accolades when deserved

Gain respect of peers by peer bonding

Providing diversity if possible, cross-training

Just ask them their opinions and idea to contribute .

Top Ten Motivators:

Thanks personally, timely, often & sincerely

Take time to meet and listen to staff

Provide feedback

Encourage new ideas and initiative

Explain how employee fits into organization’s plans

Involve employees in decisions

Provide ownership in their work

Recognize, reward, and promote based on performance

Give chance to learn new skills

Celebrate successes!!!!


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REFERNCE:

1.K. Radhakrishana, Organization and management studies, Educational publishers

and distributors, Ernakulam

2 and 3 www.businessdictinary.com

http://www.businessdictinary.com/


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CHAPTER 2

INDUSTRY, COMPANY AND PRODUCT PROFILES


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2.1 GENERAL INTRODUCTION

Naturals are a buzzword these days. It wasn’t long ago that our society seemed

less concerned with nature than with progresses. But now we se the importance of

sustainability and human values. The ways we live and hope to live has undergone a

revolution. Natural medicine was at the vanguard of this revolution. Thanks to the work o

pioneering naturopaths ―a balanced diet’ and ―a regular exercise’ were accepted as basic

requirements for the health. Naturopathy is hardly a alternative if you consider that its

essential ideas form the basis of this massive shift in our thinking about food and the

body.

Today, the Natural Revolution has evolved into ―The organic Revolution‖. The Organic

Revolution has really only just begun, but already it ahs redefined our concept of a

healthy life. We have realized that what we assume to be natural – fruits, vegetables,

herbs – are not necessarily produced in a natural way.

Pesticides, herbicides, fertilizers and genetic modification have corrupted our food

sources and compelled many of us to aspire to a new ideal: living free of harmful

chemicals.

During the last decade, popularity of alternative medicine increased significantly

worldwide with noticeable trends in the United states in particular. This in turn

accelerated the global trade of the herbal raw materials and herbal products and created

high scope for the Afro-Asia as well as Latin – American countries, which are the major

suppliers of the herbal raw materials in the world.


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The global trade of medicinal and related plant materials were estimated to be of the

approx. value 62billion US$ in 2001. China has been successful in acquiring the single

largest share in this export market because of its well-deigned national policy on the

traditional Chinese medicine. Ginseng is the major item of the Chinese export.

Despite contradictory claims regarding India’s share in the world market of medicinal

plants, one thing is very clear that ideally it should have the second largest share , but the

country lags far behind china owing to its unorganized trade system and inadequate

policy. The government of India has however been quite active since 2000 to overcome

this problem, and has adopted many measures to give a boost to the export of the

medicinal plants and herbal products.

A ―National medicinal plant Board‖ has been constituted to facilitate the conservation,

propagation and marketing of important medicinal plants, herbal products and its state

level counterparts are also operating to implement this mandate at the individual states.

2.2 INDUSTRIAL PROFILE

2.2.1 HERBAL EXTRACTION INDUSTRY

Herbal medicine, also called botanical medicine or phytomedicine refers to the use of

many plant seeds , berries, roots, leaves , bark or flowers for medicinal purposes. Long

practiced outside of conventional medicine, herbalist is becoming more main stream as

up to date analysis and research show their value in the treatment and prevention of

disease. Plants had been used for medicinal purposes long before recorded history.


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The industrial processing o medicinal and aromatic plants start with the extraction of the

active components using one or the other technology. In case of essential oils, which

represent a heterogeneous mixture of widely varied chemical constitutes, the extraction

processes for the production of essential oils from aromatic plants and extracts from

medicinal plants differ widely and the best results are obtained by modifying and

adapting the general extraction process to a particular medicinal and aromatic plant.

There are many processes patented throughout the world for commercial extraction of

plant ingredients. Herbal extracts is a liquid solution o herbs and alcohol. The fired or

fresh herbs are combined with alcohol, then the solid matter is removed leaving only the

oils of the herbs mixed with the alcohol. This process is called extraction, hence the

name, herbal extract. From earliest times medicines were the product off parts steeped in

or boiled with water. Experience showed that other liquids such as alcohol (e.g. wine,

brandy, etc) and vinegar made extraction of the ingredients more efficient and had a

preservative action.

Nowadays there are four common methods for extracting aromatic compounds from plant

material:

Distillation,

Solvent extraction,

Expression,

Effleurage.

All four methods intend the final product to be used in perfumery or scenting, however,

none of these extraction methods produces an exact replica of the scent of a fresh plant.

The reason for this inability to exactly replicate the scent of a fresh plant is due to the fact

that these extraction methods denature the aromatic compounds by either exposure to

heat, oxygen or chemical solvents.


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2.2.1.1 Major bulk herbal extractors

a) “Indena”- (Italy) is the leading extractor and pioneer in the field of

pharmaceuticals. Turmeric and ginger are among their product range.

b) “Fachsman- Flavours and extracts” (parts of Frutarom Industries Ltd.

Switzerland)

c) “Martin Bauer”- (Germany) is the largest, and is a leading importer and packet

of herbal teas. Significantly, among their raw materials range are Aloe Veras,

quassia.Turmeric.Ginger.hibiscus, Allspice, Lemongrass, Sarsaparilla (S.regelii), Senna

and Tamarin.

2.2.2 Structure of the industry

Chart No: 1

HERBAL EXTRACTS INDUSTRY

Nutraceutical Phytopharmaceuticals

or Herbal Drugs

Cosmeceutical


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2.2.2.1 Nutraceutical

Health foods are known under different names throughout the world.

Nutraceuticlas are food products supplemented with herbal ingredients. Vitamins,

minerals and nutrients or ingredients isolated/purified form conventional foods. These are

the latest products in a succession of health food evolution constituting dietary

supplement, fortified foods, foods and beverages with added bioactive ingredients. The

strongest market driver for the nutraceutical is the ―baby boomer generation‖ which will

be the largest buying consumer group in the years ahead. The US leads the Nutraceutical

market followed by countries of western Europe and Japan, will remain largest global

producers and consumers. Asia and Pacific, Latin America , Africa and Middle East are

set to provide the fastest growth for the nutraceutical industry. China will see the most

impressive jump in nutraceutical production and consumption USA ($10 – 37 billion);

EUC ($ 15-20 billion); Japan ($10-14 billion).

2.2.2.2 Herbal Drug

Herbal drugs have been used since ancient times as medicines for treatment of range of

diseases. Medicinal plants have played a key role in world heath. In spite of the great

advances observed in medicine in recent times, plants still make an important

contribution to health care.

During the past decades, public interest in natural therapies, namely herbal

medicines, has increased dramatically not only in developing countries but mainly in

industrialized countries.

This has increased the international trade in herbal medicine enormously and has

attracted most of the pharmaceutical companies including the multinationals. Currently

most large multinational companies are interested in commercializing drugs. It is


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estimated that the European market alone reached about $7 billion. Herbal medicine

markets in Asia and Japan reach $2.3 and $2.1 billion, respectively. However, in no other

country has the herbal medicine market reached about $3.2 billion.

2.2.2.3 Cosmeceuticals

Cosmeceutical means cosmetics that are made from herbal products like botanical

extracts, essential oils, Aloe extracts etc…

Global market : US $22 billion

Fastest growing sector : Anti-aging products

Skin care products $5.4 billion in 2005

Botanical ingredients for use in cosmetics and toiletries 8% annual growth

Manufacturers are now frequently replacing vitamins with herbal ingredients such

as Serenoa repens, Panax spp, Ginkgo biloba

Aloe Vera is most demanded in cosmetic industry

US market for cosmetics: US $2.5 billion where the market for botanicals for use

in cosmetic and toiletries are at $ 345 million (1998), 505 million (2003), 750 million

(2008).


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4. Distribution of herbal to different industries

Table No.1

Herbal dietary supplements 12.53%

Herbal cosmetics 5.37%

F&B with herbal contents (Food and Beverage) 6.12%

Vitamins and micronutrients 75.98%

(Source: National medicinal plants board)

Table showing different sectors to which herbal products are supplied as raw materials.

Among them herbals are supplied for production of vitamins and micronutrients. But in

current scenario a huge demand for herbals are from nutraceutical industries.

2.4. Essential oil industries.

An essential oil is a concentrated, hydrophobic liquid containing volatile aroma

components from plants. They are also known as volatile or ethereal oils, or simply as

―oil of‖ the plant material from which they were extracted, such as mustard. Oil is

―essential‖ in the sense that it carries a distinctive scent, or essence of the plant.


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2.3. GLOBAL VIEW OF THE INDUSTRY

2.3.1 GLOBAL VIEW OF ESSENTIAL OIL INDUSTRY

Essential oil production

World production dominated by Brazil 40% followed by USA 20% and India

15% when compared in value terms. It’s highest for USA (26%) followed by India 21%

and Brazil 8%.

Essential oils: global view

World production of essential oils (Estimated) 150,000 tons excluding Turpentine oil

which alone is 300,000 tons.

Developing countries have great potential for production of E.O. 65 % produced in

developing countries, 35% in industrialized countries.

Seven leading countries Brazil, China, India, Indonesia, Egypt, Morocco and Turkey

produce 85% among developing nations.

Major exporters of E.O. Brazil, China, India, European Union ,USA and Indonesia

account for 66% of essential oil exports .

Major importers: E.U.. USA, Japan, Canada, Switzerland account for more than 70%

of the total volume import.


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2.3.2. GLOBAL VIEW OF HERBAL PRODUCTS INDUSTRY

Herbal product industry is one of the fastest growing industry in the world.

Popularity and global interest in herbal products are due to the following:

Lesser side effects as compared to synthetic products.

Affordability

Effectiveness and time tested.

No cure in modern medicine for chronic and lifestyle related disorders.

Global trade in herbal medicines/food supplements currently stands at US $70

billion.

Worldwide demand is to reach $15.5 billion in 2010. World demand for

nutraceutical ingredients is forecasted to advance 5.8 percent annually to 15.5 billion in

2010. In that year these compounds will serve a projected $197 billion market for

nutritional preparation and natural medicines. Due to clinical and scientific evidence of

health benefits and safety, the best worldwide growth opportunities for nutraceutical

ingredients will emerge inn soy isoflavone proteins, the functional food beverages

additives lutien, lycopene, omega -3 fatty acids, herbal extracts garlic and green tea, and

non-herbal extracts chondrotin, glucosamine and coenzyme Q 10.

2.3.3. MARKETS IN CHINA, INDIA TO EXPAND MOST RAPIDLY.

China and India will emerge as the fastest expanding nutraceutical markets as

strong economic growth leads to the extensive upgrading and diversification of food,

beverage and pharmaceutical production capabilities. The US will remain the largest

global consumer of nutraceutical ingredients due to the broad, increasing range of


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nutritional preparations and natural medicines produced domestically. However, the

country’s demand for these ingredients will grow below the average worldwide pace as

market for many fortified foods and beverages, dietary supplements, and adult and

pediatric nutritional become more saturated. Based on outsourcing trends, the US will

relinquish.

Increasing acceptance by consumers and medical professional will push

world demand for herbal and non-herbal extract 6.5% annually to almost $1.9 billion in

2010. Conflicting clinical and scientific testing results about actual health benefits will

inhibit faster gains in the overall products group. Garlic for improving cardiovascular

functions, ginkgo biloba for enhanced cognitive properties, saw palmetto for benign

prostatic hyperplasia, green tea for cancer prevention and weight loss, and black cohosh

for post-menopausal symptoms will be among the herbs continuing to fare well in the

worldwide market place.

2.4. Constraints faced by herbal production industry

As herbal production industry is one of the fast growing sectors in the world, but it also

suffers many problems to sustain in the industry .some of the constraints faced by herbal

product companies are as follows –

Lack of awareness o economics benefits of E.O. industry.

Technology and skilled man power.

Inadequate infrastructure.

Inventories for information and plant resources.

Market intelligence.

Credit facilities for business development.

Unsupportive govt. policies.


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2.5 The leading exporter of medicinal plant and herbal products

Table No:2

Country T Tones $ Million

China (Ginseng, Gingko)

140,450

326

India (e.g. Turmeric)

35,650

53

Germany (e.g.

Chamomile,St. John’s wort)

14,900

73

Singapore

14,400

63

Chile

11,700

26

USA(Echinacea, Black

cohosh)

11,650

120

Egypt

11,300

14

Pakistan

8,500

5

(Source: Ministry of health and Family welfare)

The bulk of the raw material for nutraceutical, cosmeceutical and for herbal drug

industries comes from developing countries like China and India. Medicinal plants and

herbal products are used in functional foods and dietary supplements; its demand is


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growing in European market. This market is larger and more developed in European and

American countries. China and India are leading exporters of raw materials (Herbal

extracts, essential oils etc.) in the world.

2.6. MARKET POTENTIAL AND DEMAND DYNAMICS.

As per World Health Organisation (WHO) estimates 80% of the world population

depends on herbal medicine for their primary healthcare needs. In 2004 the global trade

in herbal medicine was estimated around USD 60bn increasing with an annual growth

rate of 15%. The industry is expected to attain a value of USD 5 trillion by 2050. The

demand for herbal medicine is especially high in European Union (EU) and United

States. These two markets are the key drives of the global herbal trade.

Presently, India countries less than 1% the global herbal market however it is fast

emerging as a key supplier of medicinal plants across the globe. The present value of the

entire Ayurvedic production in India is estimated to be around USD 1bn while annual

exports are pegged at USD 100mn. Of the total exports 60% is crude herbs, 30% is

finished product shipped abroad for direct sales to consumer and the remaining 10% is

partially prepared products to be finished in the foreign countries. Apart from the

traditional herbal formulations, cosmetics, nutraceutical are two up coming opportunity

segments which are expected to be the future growth drivers of the herbal industry.


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2.7. DISTRIBUTION OF GLOBAL HERBAL MARKET.

Table No:3

Country Percentage

North America 11

Asia 19

Japan 17

Rest of Europe 12

France 13

Germany 28

(Source: Spices board Of India)

Market Share

North

America

Asia

Japan

Rest of

Europe

France

Germany

(Source table no : 3)

Pie chart no: 2

Global herbal market


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The chart clearly tells that most of the European countries are the main customers of

herbal products in the world and small part of the market is spread over the north

American countrie. Japan is the largest herbal product consumer among asian countries.

2.8. INDIAN SCENARIO

In India herbal and spice sector has traditionally occupied an important position in the

socio cultural, spiritual and medicinal area of rural and tribal lives. Recognizing its

importance, the government of India established the development o Indian system f

medicine and homeopathy, and more recently the medicinal plants board to develop,

promote and regulate the sector for maximizing the benefits to the people as well as to

ensure sustainable growth.

Medicinal plants have been identified as one of the thrust areas by the ministry and

different programmers have been initiated for conservation of medicinal plants sound in

the forest and protected areas as well as cultivation of plants in the degraded forest areas.

Kerala has been at the forefront of Ayurvedic revolution in the country, endowed with

rich biodiversity because of its natural topography comprising of all three biomes – hills,

platues and coasts. The state government has established a R&D and educational

infrastructure for the further developing science of traditional medicine and also took the

lead in promoting health tourism which has been equally popular among Indian as well as

foreign tourism.

The county, blessed with 16 agro climatic zones, 45,000 plant species and 25,000

medicinal plants, has a good potential to export herbal products. Non – acceptance by the

profession in the developed countries owing to lack of technical documentation is,

however, hindering its exports. The Indian herbal extracts industry has grown over the

years and is today estimated between INR 500 crores and INR 600 crores. The biggest

concern is to establish the efficacy of Indian medicinal plants on modern scientific terms


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and produce extracts in hygienically maintained good manufacturing facilities. The

global herbal market is estimated at $ 65 bn and India’s share is only $1 bn. Global

demand for herbal products have been growing steadily at 15 % per annum.

World health organisation (WHO) projects the global herbal products market at $5

trillion by 2050. There is a comparative need to consolidate, mobilize and organize the

sector. With the global market growing at a much faster rate than the domestic market,

the Ayurvedic and Siddha manufactures need to orient themselves to export needs.

2.8.1. Advantages of Indian herbal industries.

Strong traditional support – mainly from Ayurveda

Plants used for century’s safety margin very high.

Availability of herbs for variety of indications like sugar/weight.

Management. Cholesterol/lipid lowering, energy boosters etc.

Rich Indian biodiversity.

Positive government policies towards herbal sectors

Herbal industry in India is increasingly becoming research based.

2.8.2 International market of Indian herbal products

As drugs/raw herbs

As standrandised extract.

As fished formulations

As phytochemicals /pure isolates.


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2.8.3 Government policies.

National policy on traditional medicine adopted in 2002

Indian systems of medicine and homeopathy have been integrated in health delivery

at primary, secondary and tertiary level of healthcare.

Training and practice of ASU &H regulated by act of parliament and autonomous

regulatory authorities.

Manufacturing and sales of ASU&H drugs regulated by Indian drugs and cosmetics

Act, 1940 and rules 1945.

Good manufacturing practices (GMP) enforced in 2003.

2.8.4 A profile of Indian herbal products industry

Some facts about herbal product industries in India.

5000 good manufacturing process complaint manufacturing unit Turn over of

traditional medicines stands at USD 2 bn.

Exports of traditional medicines stands at USD 250 mn

Major exports to USA , Germany, Middle east, Russia & other CIS countries and

South Asian countries.

India is the hub of botanical standardization and R&D.

Contrary to popular perception traditional India medicine products are

standardized herbal products and tested for their quality, safety and efficacy

Indian council of medical research (ICMR), council of scientific and industrial

research (CSIR) and Ayurveda, Siddha and Unani Research councils, laboratories

engaged in botanical standardization, safety and efficacy studies

.Modern medicine hospitals undertaking clinical trails on traditional medicinal

products


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.Most reputed companies are utilizing state-of –art standardization techniques

and relying on clinical trails for their herbal medicines.

Sustainable collection and cultivation of medicinal plants raw materials.

India has a national medicinal plants board and 30 state medicinal plants board

which are encouraging sustainable collection and cultivation of medicinal plants

by sensitizing collectors and farmers.

India is one of the largest exporters of standardized herbal extracts to USA and

Europe for food supplements.

2.8.4 Constraints faced by Indian herbal products manufacturing industries.

(Herbal and spice extracts, medicinal plants, essential oils)

Need for sufficient scientific information on many plants.

Need for research and clinical trails of products.

Need for standardization and quality control protocols.

Difficulties to acquire patent rights for self developed technologies and products

Need for understanding of regulatory requirement of different countries.

2.8.5 Futures of herbal products industry in India.

Future of Indian herbal product industry is very much secured as the demand for

Indian herbal products are increasing day to day.

Global opportunity for Indian herbals is on rise.

Generation of scientific information can help in increasing global opportunities.

Increasing demand for herbal raw materials in nutraceutical and cosmeceutical

industry.


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Indian companies are investing more on research to en-cash on global

opportunities.

Indian government to play active part to get Indian medicinal plants approved in

various countries.

Planning commission of India target that export of herbal based products to be

INR 2.5 billion by 2010.

Big market of Indian herbal products

Table no:4

Country Percentage

USA 50

Japan 10

European countries 30

Rest of the world 10

(Source: Spices board of India)

Market share

USA

Japan

European

countries

Rest of the

world

(Source: table no: 4)

Chart no: 3


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CHAPTER

ORGANISATIONAL STRUCTURE AND FUNCTIONAL AREAS


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3. COMPANY PROFILE

3.1. A profile of Arjuna natural extracts limited

Arjuna natural extracts limited was established in year 1992 with the head

office at Alwaye and manufacturing facilities at Coimbatore and Edayar. Arjuna is a

global manufacturer of standardized plant extracts essential oils and omega 3 fatty acids

with over 16 yrs of excellence in industry. Arjuna is driven by philosophy of

manufacturing products of exceptional quality using innovative concepts. Its product

range consists of more than 50 products are being used in over 43 countries. The

production facilities are spread in 6 locations in south India including a world class

research and development facility approved by ministry of science and technology.

Arjuna is front runner in the industry adhering in to the highest ethical values and

continuously striving to promote intellectual protected scientific approach in the field of

extracts supported with clinical, toxicological and stability studies.

Arjuna natural extracts ltd is a global manufacturer and exporter of

standardized herbal and spices extracts specialized essential oils and omega 3 fatty acids

from marine and vegetable source, in oil and powder forms. With 17 years of excellence

in this industry. The company is driven by the philosophy that centers on producing

exceptional product quality and ensuring ultimate customer satisfaction.

In this industry where present becomes history the very next day, innovation

is the key to existence off any company. Where Arjuna natural extracts is the front runner

as they are lead by a pioneering R&D unit. The Ministry of Science and Technology,

govt. of India has approved this world class R&D facility for in house research.

Arjuna extracts is authentically the first in India to be engaged in commercial

manufacture of omega 3 fish lipid oils. The company leverages on its competencies to

respond quickly to customer needs. With 11,000 sq meters of ultra modern facilities with

high end machinery at 5 different units spread across south India.


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Arjuna’s manufacturing facility makes use of the most technologically advanced

equipments to ensure consistent products quality and efficient streamlined service. It

follows strict GMP’s to guarantee standardized quality, purity and potency. The facility

has the capacity to handle product volumes ranging form a few 100 kgs to several 1000

metric tons.

Arjuna owns most modern state of art laboratory approved by the Ministry of Science

and Technology , Govt. of India , with the latest facilities like HPTLC (Nassaga) , HPLC,

UV, RI, densitometer, spectrometer, gas chromatograph etc, which form part of the R&D

for efficient and effective quality control, product improvisation and innovation.

3.2. Board of directors of ANEL

Table No:5

Mr. P.J. Kunjachan Chairman and Managing Director

Dr. Benny Antony Director

Mr. P.J. Paul Director

(Source: Company booklets)

3.3. Milestones of Arjuna natural Extracts ltd.

For more than a decade, Arjuna Natural Extracts limited has combined

generations of understanding with the latest breakthroughs in extraction technology to

create products that make a real and positive difference to clients in 50 countries.

Arjuna’s strengths lie in its effective use of innovative methods and technologies to

device unique and commercially plant extracts. It is the second company in the world to

supply the mustard oil (natural) and the first in India to develop the specialty smoke


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flavours, and the first in the world to engineer the formulation of mango butter, for use of

cosmetic industry.

Arjuna is the first company in India to commercially manufacture marine omega -3

concentrations for pharmaceutical and health food industries. Arjuna is also the largest

manufacturer of these products in Asia.

The company has recorded an astounding sales turnover growth rate of 500% for

the period 1994 – 2003, while expanding its product range from 10 to 42 in the same

period. Today, as a supplier of perfectly concentrated, standardized natural extracts and

omega 3 products, Arjuna has acquired a dominant position as one of the fastest growing

companies in this field in Asia.

3.3.1 Three years contract from central ministry.

Arjuna natural extracts ltd (ANEL) has been awarded a three year contract to

undertake research on 15 different medicinal plants used in Ayurveda, Siddha and Unani

systems of medicine. The contract has been awarded by the Ayurvedic pharmacopoeia

committee, central council for research in Ayurveda and Siddha, department of Ayush, an

autonomous organisation of the Ministry of Health and Family Welfare, Union

Government. It’s the first time that any company from Kerala has been assigned such a

research work.

3.3.2 National recognition

The national award for a unit that has successfully commercial an indigenous

technology based product – omega 3 fatty Acids from fish lipid oil. A sum of INR

200,000 and a trophy was awarded to Mr.P.J.Kunjachan CMD of Arjuna natural extracts

ltd by the technology development board, department of Science and Technology and

Government of India.


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3.3.3 Achievements and awards.

National award for successful commercialization of an indigenous technology based

product (Omega fatty acid).

ISO 9000:2000 certification during the year 2000

Patent rights for the process and technique to enhance the absorption of

―curucuminoids’.

Awards of the highest export to the newly developed markets (spices board).

Best performance Award (KSIDC)

Star K Koshered certified products.

HALAL certificate

Spices board honoured for the export achievement.

3.3.4 Quality policy

Customer satisfaction through manufacture and supply of customer specific

Marine products, herbal and spices extract . it achieves this through innovation , team

work and continuous improvement of the process and skill of people.

3.4. 1.Quality Objectives.

Achieving quality:

Adhering to laid down product specification.

Adhering to the laws and regulation of importing countries required to exporting

of products.

Eliminating the recurrence of customer complaint.

Ensuring necessary environment and infrastructure at all required level.


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3.4.2. Company profile

Table no: 6

Company name Arjuna Natural Extracts ltd

Address Bank road, Alwaye 683101, Kerala, India.

CMD Mr. P.J. Kunjachan

Year of establishment 1992

Head office Aluva

Production plant Edayar, Coimbatore

Web site www. Arjunanatural.com

Product(s) manufactured Herbal and spice extracts , marine extracts.

Total production FY 06:Rs 172.788 Lakhs

FY:07: Rs 246.864 Lakhs

FY:08:Rs 254.941 Lakhs

Sales turnover FY:06: Rs 16.67 Crs

FY:07: Rs 14.27 Crs

FY:08: Rs 20.16 Crs

Conformity to standards Indian standards

Compliance ISO 9001-2000

Foreign collaboration Nil

(Sources: Annual reports of ANEL)


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3.7. PRODUCT PROFILE

3.7.1. Herbal extracts

Herbal extracts is liquid solution of herbs and alcohol. The dried or fresh herbs

are combined with alcohol, and then the solid matter is removed leaving only the oils of

the herbs mixed with the alcohol. This process is called extraction, hence the name herbal

extracts. For example an extract made from peppermint and alcohol would be called

―peppermint extract‖. Herbal extracts are sold as dietary supplements and alternative

medicine and commonly used for flavouring in baking and other cooking much like

vanilla extract.

Herbal extracts of ANEL

Amla extract

Ashwagandha extract

Boswellia extract

Centella asiatica extract.

Curcumin powder

Ginger root powder extract

Organic green tea extract.

Gymnema sylvestre extract

Momordica charantia extract.

Tribulus terrestris extract

Tulsi extract.


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3.7.2 Essential oils.

Essential oil is a concentrated, hydrophobic liquid containing volatile aroma compounds

from plants. They are known as volatile or ethereal oils. Oil is ―essential‖ in the sense

that it carries a distinctive scent or essence, of the plant. Essential oils do not as a group

needs to have any specific chemical properties in common, beyond conveying

characteristic fragrances.

Essential oils of ANEL

Essential oil of mustard

AITC 15-95%

Essential oil of Asafoetida

3.7.3 Omega 3 fatty acids

These are considered to be essential fatty acids. They are essential to human

health but cannot be manufactured by the body. For this reason, omega-3 fatty acids must

be obtained from food. Omega -3 fatty acids can be found in fish, such as salmon, tuna,

and halibut, other marine life such as algae and krill, certain plants (including purslane),

and nut oils also known as polyunsaturated fatty acids (PUFA’s), omega -3 fatty acids

play a crucial role in brain function as well as normal growth and development.

There are three major types of omega 3 fatty acids that are ingested in foods and used by

the body: alpha –linolenic acid (ALA), eicosapentaenoic acid (EPA), and

docosahexaenoic acid (DHA). As the importance of omega – 3 fatty acids to health ha

received increasing awareness, the number of good products enriched in omega 3 fatty

acids has increased. Many companies add fish oil or flax oil into their final product to

enrich it in omega -3 fatty acids


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ANEL is producing omega -3 both from fish and flax oil which is in acid and powered

form.

Omega – products of ANEL

ZEPUFA TM

OIL (Ethyl Ester & triglyceride)

Product code description

Z P 3020 omega 3 oil EPA/DHA 30/20

Z P 1040 Omega 3 oil EPA/DHA 10/40

ZEPUFA TM

POWDER.

Product code description

Z P 0312 omega 3 oil EPA/DHA 3/12, triglyceride

Z P 0960 Omega 3 oil EPA/DHA 9/6, triglyceride

OMEGAFLAX Concentrated of omega 3 fatty acid from flax seed oil.


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ORGANIZATIONAL STRUCTURE.


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3.6. Responsibility and authority structure.

The responsibility and authority of people in the organisation clearly defined in

the organisational chart. Duties and responsibilities are communicated with each

individual, so they are aware of their work and are able to deliver their full support to

management. Responsibilities and authorities of some top management positions are

described below.

a) M.D. Is responsible for

Planning and implementing various activities fro growth of the organisation

Chair management review meeting and issue directives

Profitability of the company

b) M.D. is authorized to

Formulate strategies and provide direction for all activities.

Approve adequate resources including assignments fro trained personnel

Approve quality manual and subsequent amendments

Approve vendor and raw material procurement

c) Director technical is responsible for

Development of new products

Development and modification of process

Redress of customer complaints based on technical issues

Identification of machinery and equipment related to process


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d) Director technical is authorized to

Approve technical documentation

Plan suitable strategies and action plan for production at Edayar and Coimbatore

factories.

e) Director operation is responsible for

overall administration of the Coimbatore factory

improvement of the processes

Evaluation and analysis of rework/rejection etc. at the factory level.

f) Director operation is authorized to

Plan suitable strategies and action

Plan for production at Coimbatore factors.

g) HOD (HRD) is responsible for

The available of human resource

Identification of training needs of employees

h) HOD(HRD) is authorized to

Approve training for various staff members


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i) HOD(marketing) is responsible for

Marketing activities and review of the customer requirements.

Co-ordinates with factories to deliver the material in time to the customers.

Dispatch the material and collect the payment in time.

Export documentation.

j) HOD(Quality control) is responsible for

Ensuring the quality o incoming materials

Maintaining quality control related record.

Handling customer complaints.

k) HOD(Quality control) is authorized to

Take decision regarding products like:

Inspection and testing of production at various stages off production.

l) HOD(Purchase) is responsible for

Purchase activities

Ensuring the availability of materials.

Vendor evaluation and rating.

m) HOD(Purchase) is authorized to

Rate the vendor based on their performance.


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n) HOD(Operation) is responsible for

Monitoring issue and receipt of material.

Maintaining of production activities.

Monitoring production activities.

Monitoring maintenance of plant and machinery.

o) HOD(Operation) is authorized to

Allocated jobs to subordinate.

3.6.1. Management representation (MR)

MD selects and appoints the management representation of the company. The

person appointment as representative is a member of the company’s own management

with formal training in ISO 9001:2000 quality management system. The responsibility

and authority of MR is described below:

a) MR is responsible for

Establishing implementing and maintaining quality management system.

Report to MD on the performance of the QMS (Quality management system) and

needs for improvement.

Ensuring the promotion of awareness of customer requirements throughout the

organisation

Document change control

Document distribution control

Withdrawal of obsolete document and internal audit.


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To monitor follow up actions consequent to :

Management review meetings

Liaison with external parties on matters relating to

QM.

b) MR is authority to

Issue of documentation pertaining to the entire department

Approve annual audit plan

Approve audit schedule

Prepare agenda for management review

Initiated presentation action

Record documentation changes arising from corrective actions.

Prepared minutes of the management review.

Hold document in safety custody and conduct auditor performance evaluation.

In absence of any designated function head, the immediate subordinate related to

that particular functional area is authorized to exercise the authority of the superior

officer. In the absence of the Managing Director, the concerned functional head is

authorized to take decision in their functional areas in consultation with director technical

or director operations which normally would have been taken by the MD.


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3.6.2. Group company of ANEL

LIVLONG NUTRACEUTIACL LTD is one of the group companies of ANEL

which is engaged in production do dietary supplements.

Livelong Nutraceutical ltd

Livelong dietary supplements are sold in India as well as exported to USA,

Europe and Far East countries for the past 7 years. The company’s products are natural

extracts in dosage from intended to control, prevent or delay lifestyle problems like

cholesterol, diabetics, arthritis, obesity, gastritis etc. and optimize one’s health.

Products of livelong

Some of the products of Livlong Nutraceutical Ltd are green tea caps,

livslim, vivomeric, rhulief, omega flax, losterol, flax’n black, Emcumax, Nimasyl.


- 43 -

3.7 FUNCTIONAL AREAS

3.7.1 Finance department

Finance is considered as the lifeblood of every business . the objective of finance

department is to maintains a good financial track record . this department is the brain of

the company, which control the inflow and outflow of cash. It maintains all statutory

book, ledger bills etc. allocation of funds is also maintained by the department by

discussing with other department heads and they will prepared a department budgets. It is

the basis for consolidated budget prepared by finance department.

3.7.1.1. Objectives of Finance Department

The main objectives of the financial department are:

To manage and account for the financial resource off the organisation, to forecast its

requirement in the future and plan accordingly and to check for deviation.

Report the financial performance of the company to management, stakeholders and to

comply with Govt. rules and regulation.

3.7.1.2. Capital Structure of ANEL

Capital structure of ANEL is mainly constituted with

Owned capital , i.e. 1600,000 equity shared of Rs 10 each and

Short term funds from banks


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3.7.1.3 Organizational chart of finance department

(Source; Production flow charts of ANEL)

Chart no: 4

CMD

GENERAL MANAGER

SENIOR MANAGER

FINANCE

ASSISTANCE

MANAGER

FINANCE

ACCOUNT EXECUTIVES


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3.7.1.4. General functions of Finance department

Managing the day-to-day accounting and related operations with the accounts

executives and accounts assistants and providing necessary guidance to them for

smoothing running of the day-to-day activities.

Preparation of monthly cash budget.

Verification and submission of periodical returns to banks, insurance and/or any

other statutory bodies.

Supervision of all activities connected with sales tax.

Bank reconciliation

Verification and passing cash, bank purchase and journal vouchers.

Monitoring ledger accounts.

Ensuring timely statutory remittance and issuance/filling of all relevant certificates.

Filling stock statement at bank.

Checking of inter division accounts.

Preparing quarterly financial statements.

Scrutiny of stock financial submitted by divisions.

Finalization of accounts.

Interacting with statutory auditor liaison with bank.

Processing bank loan application.

Processing bank loan application

Coordinating with the accounts persons in various divisions to ensure smooth

running of the day-to-day accounting operations in all divisions.

Any other related activities or task assigned by HOD / management not covered

above.


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3.7.1.5 Functions of finance department.

Budget Preparation

Budget preparation means preparation of consolidated financial budget after

considering all the department budgets. Mainly two types of budgets are maintained

revenue budget and capital budget. Revenue budget is based after considering production

target and norms of needs of the company i.e. acquisition of new assets like machinery,

furniture and modification and improvements to plant.

Fund flow management

One of the main functions of finance department is to manage the funds of the

organisation i.e. Inflow and out flow of funds. Main source of inflow are from sales and

out flow are for purchase of raw materials.

Maintaining Statutory Requirements

Finance department have the responsibility for maintaining statutory

requirements like maintaining sales tax, VAT, service tax, excise , income tax etc.

Performance Analysis

Finance department analyses the overall performance of the organisation.

Different factors which determine the performance of the organisation are analyses. Some

of the analyses are

Profitability analysis

Variance analysis.


- 47 -

Working capital management

The working capital management is essential for any organisation to meet day –to-

day requirements. Working capital may be specified as the firm’s current assets over

current liabilities. The main sources of working capital are maintained using

Over draft facility

Bill discounting

Internal fund generation

Employee remuneration

Finance department calculates salary payable to employees based on all the earnings

and deductions. Payment and accounting of loans, advances, reimbursements etc. to

employees and computation of income tax on salary income after all earnings and

deduction.

3.7.1.6 Bankers to ANEL

STATE BANK OF TRAVANCORE

HDFC

AXIS BANK


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3.7.2 HUMAN RESOURCE MANAGEMENT

H R Department

The role of human resource management in organizations has been evolving

dramatically in recent times. Arjuna is also giving great importance to its human

resources which are considered as their greatest asset. The achievement they acquired

throughout their operations is impossible without the whole hearted support of the

employees. Arjuna is following an open door policy where employees can approach the

management at anytime with their problems.

Behind Arjuna’s products is something just as important- Arjuna’s people, who are

experts in their respective fields. Arjuna has good administrative wing and great R&D

unit with botanists, mocrobiologists, phytochemists and pharmacists whose contribution

is key factor to the company’s rampant growth. Their team consists of undying energy to

explore into the unknown, innovate and give out their best. They know that they are

responsible to their customers worldwide. To this end. The ―Mantra‖ for people at Arjuna

is speed, focus and accountability.

The company also does not lag behind in helping the team in their continuous

development. To empower its people, Arjuna regularly sends them overseas to attend

orientation seminar and international trade fairs, on specific purpose of fine tuning their

marketing, management, and technical skills. The team at Arjuna is always updated with

developments in the world and in domestic market. It enabled their products to reach the

position they have.


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3.7.2.1. Objectives of human resource department

Table no:7

OBJECTIVES

RESPONSIBILITIES

MONITORING

REPONSIBILITIES

TIME

FRAME

Conduct minimum

two need based

training program

for each department

HRD department

GM (HRD) &

HOD’s

Once in six

(Source: production flow charts of ANEL)

The main objective of the HR department is to impart effective training its employees.

Training have to be given once in every six months and it’s the responsibility of GM

(HRD) and respective department heads to look after the training needs of their

employees.

3.7.2.2. Functions of HR department

Organizational human resource budgeting

Recruitment and selection.

Wages & salary administration.

Employee records maintaining.

Performance appraisal.


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Welfare program.

Job evaluation.

Handling employee grievances.

Handling the legal issues within & outside the organization.

3. 7.2.3 Employees strength in ANEL

Table no:8

Administrative office 24

Works

a) Edayar plant

b) Coimbatore plant

60

60

Total

144


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3.7.2.4. Organizational chart of HRD department.

(Source: Production flow harts of ANEL)

Chart no:5

CMD

GENERAL MANAGER

SENIOR MANAGER H.R.

H.R. OFFICER


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3.7.3 OPERATIONS

OPERATIONAL DEPARTMENT

Arjuna has 11000 sq meters state of the art manufacturing facility makes use of the

most technologically advanced equipment to assure consistent product quality and

efficient streamlined service. It guarantees standardized extract quality, purity and

potency. The facility can handle product volumes ranging form few 100 kilograms to

several metric tones.

Arjuna has four manufacturing facilities for its operation. Two plants are for herbal

extracts and are located near Kochi, Kerala. The other two plants are exclusively for ish

oil and are located at Coimbatore, Tamil nadu. ANEL is a ISO 9001:2000 company and

their process has received Star K kosher and Halal certification.

Table no:9

OBJECTIVE

RESPONSIBILITIES

MONITORING

Responsibilities Time frame

There should not be any

delay in products supply

to marketing department.

Current level : 3.76%

Target Level: 0% delay

due to internal reasons.

Production department

( Edayar and Coimbatore)

Plant engineer

monthly

Earliest

possible.

(Source; Production flow chart of ANEL)


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3.7.3.1 Production process

The production process is carried out in planned and controlled condition. The controlled

conditions are followed as given below:

A production plan is prepared for each other based on the work order issued by

marketing dept. the production plan is prepared based on the work order . for

buffer stock preparation , the approval is given by Director operations.

The worker are given specific instructions regarding production and maintenance

of the plant. The main processes are Extraction , evaporation ,Filtreing ,drying

and Packing.

The suitable equipment and tools are purchased and maintenance is done

effectively for the smooth running of the plant. The measuring equipments used

are calibrated and the formats and registers are used for noting various parameters

as given in the production log.

The characteristics to be monitored during each stage of the product realization

are described as per the inspection plan.

The non-conforming products are controlled as per the procedure for control of

non-conforming production.

The monitoring and measurement of product conformity are carried out and

records are maintained.

The implementation of release, delivery and post delivery activities are carried out

records are maintained.


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3.7.3.2 Validation of production Process

Special process included in the quality management system is acceptance of product

based on sensory evaluation. The special process is controlled through the following

points.

Defined criteria for review and approval of these processes.

A proved equipment and qualified method.

Approved sensory evaluation method.

Record of customer complaints, records of qualification and experience of

personnel who are involved in sensory evolution.

The equipment conditions are periodically checked to ensure quality.

Revalidation of the process is done whenever there is a change in the personnel

and change in criteria.

3.7.3.3 Quality Control

Arjuna’s efficient sourcing mechanism, from approved vendors, makes sure that raw

materials confirm to certified standard analysis. Random samples are taken from each lot

and inspected for physical properties and sent to its two testing laboratories to ensure

quality assurance and sampling is conducted before production cycles are undertaken.

Function of Quality Control department

Ensuring the quality of incoming materials

Maintaining quality control related records.

Handling customer complaints.

Take decision regarding production like: inspection and testing of production

at various stages of production.


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3.7.4 MARKETING DEPARTMENT

Herbal products marketing is different room all other product. Where market its brand is

substituted for the product. The brand image plays an important role. The whole markets

also dependent on customer’s awareness about the quality, price and availability. All of

this call for a planned marketing effort and huge requirement of funds to meet the

demand of products around the globe.

The market for nutraceutical products are increasing. However the quality parameters

for health foods are becoming more stringent. While the markets of older products are

coming down, the world market is looking for new and improved products as health

foods. The specialty products developed by the ANEL have been found very effective

and acceptable. ANEL is in the process of modernizing its production facilities to

international standardized. These have also obtained international patent for some of its

products. These efforts will improve the market acceptability of company’s products and

spice extracts and they are trying to market their products whole over the globe.

The main functions of marketing department are sales and marketing of products .

marketing function include introduction of products in to market, finding of suitable

customers and selling them according to customers’.


- 56 -

3.7.4.1. .Organizational chart of marketing department.

(Source: Production flow chart of ANEL)

Chart no:6

CMD

General Manager

Senior Manager Marketing

Assistant Manager

Marketing

Marketing Executives


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3.7.4.2. Market Share of ANEL

Table no:10

Arjuna natural extracts

42%

Others

- Sami labs

- Sear phytochem ltd

- Synthetic chemical ltd

- Plant lipid ltd

58%

(Source: ANEL annual reports)

Arjuna is holding 42% of market share in the industry.

(Source: from table no; 11)

Chart no: 7

Market share of ANEL

Arjuna

Others natural

extracts


- 58 -

3.7.4.3. Niche marketing

ANEL is following niche marketing where marketing segments are often too small in

order to serve them profitably as these market segments often lack economies of scale.

Arjuna is reliant on the loyalty business model t maintain a profitable volume of sales,

this is the process of finding and serving profitable market segments and designing

custom – made products or services for them.

3.7.4.4. Major segments of customers.

Some of the major customer segments of ANEL are:

1) Nutraceutical Industry.

2) Cosmeticeutical Industry.

3) Herbal Medicine Industry.

3.7.4.5. Distribution Strategy

Arjuna is following direct selling strategy for marketing their products. Tye approach

customers and will take orders directly from them. But in case of global market Arjuna

depends mainly on distributors to market products.

3.7.4.6. Promotional strategy

The promotional strategy of ANEL is to participate in trade fairs. Trade shows represent

a significant opportunity to enhance brand and product visibility, promote new and

existing products, generate leads and drive sales. In addition, show participation enables

you to learn about industry trends, gain competitor insights, make key industry contacts

and further solidify relationships with current customers.


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3.7.4.7. CRM Techniques

CRM technique adopted in the company is perfect, so it fetches more orders

Frequent communication with customers.

Informal relations are maintained.

Based on the policy ― relationship only work out‖

E-mail service is used for communication with customers and all queries are

answered within 245 hours.

3.7.4.8. Pricing Policy

The buyers are very much aware about the cost of the raw materials and its value

addition cost, so reasonable pricing will be made.

Competition will also decide pricing strategy.

In some cases small players will go for cheap pricing but in some case company

won’t go for price cuts.


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3.7.5 RESERCH AND DEVELOPMENT

As industry moves ahead by virtue of in depth and ongoing research and

development, at Arjuna it is inspired by reason, controlled by caution, sound in theory

and practical in application, reflects confidence, raises morale, inspires all involved and

thus sets international standards when it comes to customer specific herbal spice and

essential oil extracts.

The most modern state of the art laboratory approved by the Ministry of science

and technology, Govt. of India, with the latest facilities Like HPTLC (Nassaga),

HPLC,UV,RI , densitometer, spectrometer, gas chromatograph, etc. form part of the R&

D for efficient and effective quality control, product improvisation and innovations.

Fully fledge pilot plant, re-engineered with ATFD’s homoegeniser, spray drier and

etc, operated competent staff under the direct control and supervision of the R&D wing is

yet another power tool for Arjuna.

3.7.5.1 Developing stages of new product.

1) Efficacy

2) Bioavailability.

3) Clinical Trail.

4) Toxicology.

These are the stages through which each new product of Arjuna is passed before they

are commercially sold. All possible effectiveness, accessibility of each product will be

analysed. Experimental studies are also conducted to find out the effectiveness of

products.


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3.7.5.2. Departmental Chart

(Source: Production flow chart of ANEL)

Chart no:8

CMD

Director

Technical

Senior

Research

Associate

Research

Associate

R&D

Chemist


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CHAPTER 4

RESEARCH METHODOLOGY


- 63 -

4. Research Methodology

4.1.Statement of problem

The objective is to study the various factor that influence a person’s performance

in an organization. This study is to find the factors that motivate the employees and how

much do the employees accept it to be a factor of motivation, by rating them in a Likert

scale

4.2 Literature review

1. Meaningfulness, commitment and engagement: The intersection of a deeper level

of intrinsic motivation (2009)1

: the literature refers to value as intrinsic motivators to

performing a task and deriving satisfaction from the accomplishment of that task.

Although the emphasis may be on the congruence of the task with our beliefs, objectives

and anticipated rewards, motivation is seen as focused on the accomplishment of the task.

The common assumption is that we are motivated by values based on results or outcome.

Meaning, of the other hand, is more deeply intrinsic and something even deeper . This

level of intrinsic motivation is about the meaning of the work itself to the individual.

Csikszentmihalyi (1990), in his attempt to define meaning , readily acknowledged the

difficulty the task presents by suggesting that any definition of the term would

undoubtedly be circular . However, he pointed to three ways in which the word may e

defined, two of which are (a) having a purpose or significance of something and (b) the

intensions one holds.

2. How Do Rewards and Management Styles Influence the motivation to Share

knowledge (2008)2: How to motivate knowledge sharing is of crucial importance to

many companies. This paper analyzes individual knowledge sharing behavior in a self-

determination theory (SDT) perspective. The primary aim is to explore what type of

motivation predicts knowledge sharing behavior and how this type of motivation is


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affected by reward structures and management styles in organizations. The paper builds

on survey and interview data from a pilot case study and provides statistical evidence of a

strong positive relationship between autonomous motivation and knowledge sharing

behavior. Furthermore, tangible rewards are found to correlate negatively with

autonomous motivation for knowledge sharing. The more employees perceive knowledge

sharing to lead to tangible rewards, the less they are autonomously motivated to share. On

the other hand, a management style supportive of employees’ needs for autonomy is

found to promote autonomous motivation for knowledge sharing.

3. A Research Study on the Effect of Work motivation on Job Satisfaction (2010)3:

This study attempts to develop the effect of work motivation on job satisfaction on two

big mobile telecom organizations zong and ufone. The questionnaire was developed to

measure the correlation of work motivation and job satisfaction. It was concluded that,

there must be some other variables that are intervening in our model and making

contribution at a significant level. Thus the model has not attained the favorable level of

significant and could not be used for further research. It can be said that the variables

chosen for the study was not highly significant. Researcher also found that overall the

employees were quiet satisfied with their jobs and have their interest in their job. More

than average employees were motivated to work for the organization. Some of

employees think that they are not on their actual path and often feel over worked.

4. The Relationship between Perceived Training Opportunities, Work

Motivation and Employee Outcomes (2008)4: The purpose of this study was to explore

alternative relationships between training opportunities and employee outcomes. A cross-

sectional survey of 343 trainees from a broad range of Norwegian service organizations

showed that the relationship between perceived training opportunities, and both task

performance and citizenship behaviors were fully mediated, and that the relationship

between perceived training opportunities and turnover intention was partially mediated


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by employee intrinsic motivation. In addition, intrinsic motivation was found to moderate

the relationship between perceived training opportunities and organizational citizenship

behaviors.

The form of the moderation revealed a positive relationship for those with high intrinsic

motivation. In sum, the variables included as predictors in our study explained 13 percent

of the variance in task performance, 19 percent of the variance in organizational

citizenship behavior and 24 percent of the variance in turnover intention. Implications for

practice and directions for future research are discussed.

4.3. Significance of study:

McShane,Steven L. , Von Glinow,Mary Ann (2001)5 in their book says ― Motivation is

one of the key ingredients in employees performance and productivity . Even when

people have clear work objective, the right skills and a supportive work environment,

they won’t get the job done without sufficient motivation to achieve those work

objectives. Motivation refers to the forces with in a person that effects his or her

direction. Intensity and persistence of voluntary behaviour. Motivated employees are

willing to exert a particular level of effort for a certain amount of time , towards a

particular goal.‖

Motivation is thus, the most significant thing in any body’s life to drive towards their

goal, this study thus helps to find the various motivational factors and also how well and

in what manner has those factors being accepted by the employees , as they rated it

according to their preference and as to what according to them is more important.

This study can help the company know more about how much they are successful in

meeting the motivational demand of employees both psychological and physical and how

good they are at motivating their employees, also, it helps the company to realize what

factors are adding to productivity and what all are demotivators, this help the company to

relate to factors that adds to productivity of the employees, their job satisfaction and

ultimately a better performance.


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4.3 Scope of study

M.N. Mishra (2006)6in his book ―Organizational Behavior‖ says ―motivation is

related to the motives of the people - by what they are moved and activated to achieve

their goal. Motivation may be understood differently by different people as incentives to

do work, motives to achieve goals, desire to posses something useful, drives to come

forward for outstanding performance and so on. The Latin word ―Movere‖ is the basis of

the motivation. ―Movere‖ means to message, appeal and so on. People are motivated by

certain situations and action. Motivation is always directed towards achievement of high

levels of work. Favorable jobs and high performance and quality of work , employees’

levels of performance and their qualification are considered for motivation.‖

Based some theoretical back ground some areas that need to be sought to find if they are

motivational factors were chosen and results were analyses.

Job satisfaction: Satisfied employee is likely to be motivated by responsibility

and control and would find opportunities for managing people or situations

energizing. A sense of job security also leads to a stress free work interest and

adds to job satisfaction. Doing better than others is likely to energise, betating

targets could be quite motivating. A clear definition of roles and responsibilities

help them to plan and do work on time as needed and a work completed on time

motivates the employee to do more as it fetches him praise, being in uniform

gives a feeling on equality and belongingness to the company and the employees

will be more loyal to the firm.

Awareness of the company affairs among the employees: Knowing about the

policies about the company will help the employee work in controlled

environment and also know his or her boundaries this will help to define the work

he or she does, at the same time it will help them know their benefits and perks


- 67 -

that they are entitled to, better. Praise and positive feedback is likely to be motivating,

recognition for a job well done is likely to be energizing , such as acknowledgement

in News letter etc.. Unlikely to be affected by a lack of praise

Work environment: A positive and work and employee friendly environment to

work will yield better employee performance, like a proper timings to work and

better peer, subordinate and superior bonding will motivate the to come for work

regularly and do the job with enthusiasm. Finding new opportunities for learning

new skills motivating personal development is likely to be important . like during

training. Employees feel energized by opportunities to spend time with and learn

from colleagues.

Compensation: compensations and perks gives the employees a sense of trust

and safety that there are people who matter to them and they are taken care off,

most of the employees working in the manufacturing department etc, will want to

have a proper compensation policies in their firm as it gives them a sense of

security and safety.

Welfare measures: Any company to prosper needs to do welfare measure, if not

an extensive one at least the basic needs of human beings need to met, as to

getting drinking water, canteen facilities and some get together fro the employees

and their family members.


- 68 -

4.4 Objectives

To study the organizational profile of ANEL.

To identify the motivational factors of the employees in ANEL

To analyze the effectiveness of the motivational factors among the

employees of ANEL.

4.5. Methodology

4.5.1. Data collection:

Primary data been collected from a sample of 25 employees the trough simple random

sampling technique.( Lottery method without replacement).

Primary data is collected through a well-designed questionnaire, which consists of the

factors of motivation such as interest in work environment, full appreciation,

involvement, wages, promotion, working condition, personnel loyalty and code of

Conduct. Likert scaling technique is been used to measure the opinion of the respondent

(here 5 has been highest weight age and 1- lowest in rating scale).

Secondary data has been collected through various such as articles, journals, company

profiles etc. this has helped the researcher to frame a theoretic background and setting up

the objectives of the study.


- 69 -

4.5 .2.Tools of analysis.

Data is analyzed through various statistical tools such as percentage analysis and

regression analysis. Likert scale is scale is used to determine the favorableness and

unfavorable-ness of the responses. Charts and diagrams are also used.

4.5.3. Limitation

A study of limited time (14 days) period may cause error. Also, bias from the side of the

side of the respondent while answering the questionnaire can also lead to a erroneous

outcome/result.


- 70 -

REFERENCE:

1. Chalofsky Neal, Krishna, Vijay (2009). Advances in Developing Human Resources:

Meaningfulness, commitment and engagement: The intersection of a deeper level of

intrinsic motivation (Vol: 11 Number:2 ,pp 194) ,University of U.S.A, U.S.A.

2. Harder Mie, (Feb 12,2008), How Do Rewards and Management Styles Influence

the motivation to Share knowledge , SMG Working paper No: 6/2008,

www.papers.ssrn.com.

3.

3. Mahmood Azeem, Saleem Rizwan( January 01,2010), A Research Study on the Effect

of Work motivation on Job Satisfaction, www.papers.ssm.com.

4. Dysvil Anders,Kuvaas Bard (2008),The Relationship between Perceived

Training Opportunities, Work Motivation and Employee Outcomes, International journal

of training and development , Vol. 12, issue 3, pp 138-157, September 2008,

www.papers.ssrn.com.

5. McShane, Steven L., Von Glinow, Mary Ann (2001), ―Organizational Behaviour”,

Tata McGraw – Hill publishing company limited, New Delhi 110 095, PP 66.

6. M.N.Mishra (2006), ―Organizational Behaviour”, Vikas Publishing house Pvt. LTD,

New Delhi- 110 014, PP 149

http://www.papers.ssrn.com/

http://www.papers.ssm.com/



- 71 -

CHAPTER 5

ANALYSIS AND INTERPRETATION


- 72 -

Experience wise classification

Table no:11

Experience

Number of respondents

Percentage

Less than 3 years 2

3-7 years 2

8- 13 years 15

14 -19 years

6

Total

25

(Source: From research)

The table no: 14 represent the experience wise classification of the respondents. From

the table it is inferred that maximum number of respondents where from the experience

class of 8-13 years (60%).

0

2

4

6

8

10

12

14

16

Less

than 3

years

3-7

years

8- 13

years

14 -19

years

Experience wise classification

Number of

respondents

(Source: From table no: 11)

Chart no: 9


- 73 -

Salary wise classification

Table no:12

Salary slab Experience less

than 3 years

3 to 7 years 8 to 13

years

14 to 19

years

Less than

8000

3 6

8000 to

12000

1 2 9 3

Above

12000

1


The table shows the classification of respondents on the basis of salary it is classified into

less than 8000 and 8000 -12000 and above 12000, there are more employees in salary

slab of 8000 to 12000 for a experience of 8 to 13 years.

0

2

4

6

8

10

12

14

16

Experience less

than 3 years

3 to 7 years 8 to 13 years 14 to 19 years

Above 12000

8000 to 12000

Less than 8000


Chart No: 10


- 74 -

A) Job satisfaction

1. Level of job satisfaction

Table no:13

Levels

Respondents

Percentage

Poor - -

Average - -

Satisfied 5 20

Good 14 56

Excellent 6 24


The table shows the level of job satisfaction rated by the employees of ANEL. It is seen

that most of the employees have rated to have a good job satisfaction level.

Level of satisfaction

Poor

Average

Satisfied

Good

Excellent


Chart no:11


- 75 -

2. Level of involvement in the work assigned to them.

Table no:14

Level

Respondents

Percentage

Poor -

Average -

Satisfied 3

Good 12

Excellent 11


The table shows the level of involvement of the employees of ANEL in the work

assigned to them, its seen that most of the respondents have rated a good, in their

involvement rating in the work.

Level of involvement

Poor

Average

Satisfied

Good

Excellent


Chart no: 12


- 76 -

3. Job security

Table no: 15

Level

Respondents

Percentage

Poor -

Average -

Satisfied 3

Good 17

Excellent 5


Table shows the opinion on ― job security‖. Here 68% respondents have rated it as good.

Level of Job Security

Poor

Average

Satisfied

Good

Excellent


Chart no: 13


- 77 -

4. Satisfaction in wages/ salaries provided by the company

Table no: 16

Level

Respondents

Percentage

Poor - -

Average - -

Satisfied 5 20

Good 16 64

Excellent 4 16


The table shows the opinion of the employees in the wages/salaries provided to them.

Satifaction of Wages/ Salaries

Poor

Average

Satisfied

Good

Excellent


Chart no: 14


- 78 -

5. Clarity about roles and responsibilities.

Table no: 17


The table shows the fact that all the respondents in ANEL are clear about their roles and

responsibilities

0

5

10

15

20

25

Yes No

Clarity about roles about Roles and

Responsibilities

Respondents


. chart no:15

Yes or No

Respondents

Yes 25

No -


- 79 -

6. Knowledge of performance appraisal.

Table no:18

Yes or No

Respondents

Yes 17

No 8


The table shows the knowledge of the employees about the performance appraisal

activity in the company. Most of the employees are aware of the performance appraisal

activity in the company.

0

5

10

15

20

Yes No

Is there performance appriasal?

Respondents


Chart no:16


- 80 -

7.Are you provided with uniform?

Table no:19


The table shows if the employees are provided with uniform or not, factory workers are

provided with uniform , where as the office workers are not, uniform gives a sense of

equality and belongingness to the company.

0

5

10

15

Yes No

Are you provided with uniform?

Respondents


Chart no:17

Yes or No

Respondents

Yes 10

No 15


- 81 -

8. Do you over do your targets?

Table no: 20

Yes or No

Respondents

Yes 13

No 12


The table shows if the employees are motivated or allowed to over do their target, it is

seen that most of do over do their target and thus, they increase their productivity.

11.5

12

12.5

13

Yes No

Do you over do your target?

Respondents


Chart no: 18


- 82 -

B) Awareness o the company affairs among the employees.

1. Awareness of he company’s HR policy

Table no:21

Yes or No

Respondents

Yes 23

No 2


The table shows the awareness of the employees about the HR policies of the company, it

shows most of the employees of ANEL are aware of the policies, if they know about the

Hr policies it will help them work better by adhering to the rules and regulations, and also

let them know about their benefits and compensations.

0

5

10

15

20

25

Yes No

Awarness of the company HR policy?

Respondents


Chart no: 19


- 83 -

1. News letter

Table no:22

Yes or No

Respondents

Yes 17

No 8


The table shows that employees are aware of the news letter being printed in the

company, this gives them motivation to do something out of the box and gain

reorganization. .

0

5

10

15

20

Yes No

Does your company print news letter?

Respondents


Chart no:20


- 84 -

C) Work environment

1. Are you allowed to do multitasking

Table no: 23

Yes or No

Respondents

Yes 4

No 19


The table shows that most of the employees are not allowed to multitasking, by doing

multitasking employees become more well versed in variety of works, but because of

specific job and roles for all employees they are not allowed to do multitasking.

0

5

10

15

20

Yes No

Do you do multitasking?

Respondents


Chart no:21


- 85 -

2. Do you interact with people around you for work related topics?

Table no: 24


The employees of ANEL are motivated and allowed to interact with people around them

for work related topics, this helps them create a better bond and also gain knowledge.

0

10

20

30

Yes No

Do you interact with people around you

for work related topics?

Respondents


Chart no:22

Yes or No

Respondents

Yes 25

No -


- 86 -

3. Are you given training on a regular basis?

Table no:25


The employees are given regular training and these have been proven effective to them (

according to the survey and inputs provided by them) most of the employees have gone

through up to 4 times training program according to their time period in the organization,

this has also helped them to be productive in their work.

0

10

20

30

Yes No

Are you given training in a regular basis?

Respondents


Chart no:23

Yes or No

Respondents

Yes 24

No 1


- 87 -

4. Satisfaction in personnel loyalty

Table no:26

Level

Respondents

Percentage

Poor - -

Average 1

Satisfied 2

Good 15

Excellent 7


The table shows the opinion on personnel loyalty in ANEL. 60% of the employees have

rated it as good, and few as much as 8% have rated it as satisfied.

Satifaction in terms of personnel

loyalty

Poor

Average

Satisfied

Good

Excellent


Chart no:24


- 88 -

5. Peer group bonding

Table no:27

Level

Respondents

Percentage

Poor -

Average 2

Satisfied 3

Good 14

Excellent 6


The table shows the opinion of the employees of ANEL in peer bonding\. About 56 % i.e.

majority if them have expressed a good opinion about bonding. It is necessary to be in a

social environment, as company is also asocial interaction place.

Peer group bonding

Poor

Average

Satisfied

Good

Excellent


Chart no: 25


- 89 -

6. Superior and subordinate relation.

Table no:28

Level

Respondents

Percentage

Poor -

Average 1

Satisfied 1

Good 14

Excellent 7


The table shows the opinion of the employees in ANEL regarding superior and

subordinate relation in ANEL. The employees have rated it good.

Superior and subordinate relation

Poor

Average

Satisfied

Good

Excellent


Chart no:26


- 90 -

D) Compensations.

The company is providing their employees with financial assistance e.g. interest free

loans, festival bonus, etc, the company is also provides the children of the employees

with cash award for rank holders in each department.

The company provides with medical, and safety claims and also provides ESI for

employees with salary less than rs10, 000.

The employees are also given LTC and one free trip with family in every 2 years. Travel

concession is also provided.

Company provides gift for house warming and for marriage of the employees’ and

children respectively.

In case of death of any employee, the company provides an assistance of rs10,000 and

also looks into the immediate affairs of the situations.

E) Welfare measure.

The company provides canteen facilities to the factory employees ans these are

subsidized canteens, clean drinking water facilities are also provided to the employees in

all the offices and in factories.

There are clean and neat sanitation facilities provided for the employees of both the

genders separately.


- 91 -

CHPTER SIX

SWOT ANALYSIS, FINDINGS AND SUGGESTION


- 92 -

6. 1. SWOT analysis of ANEL

6.1.1 STRENGTH

Good expertise in essential oil extracts.

ISO 9000:2000 certification

Well qualified and technically skilled man power.

Star K Koshered certification which guarantees good quality of products.

Patent right for absorption and processing of curcuminoid.

High quality products at competitive prices.

Statutory requirements are well maintained.

Located in land of ―spices‖.

One of the leading producers of Omega- 3 products in India.

Well maintained CRM techniques to ensure customer satisfaction.

Open door policy of management which ensures full support of employees.

ANEL is following direct selling strategy which facilitates better customer

relation.

World wide marketing network with global distributors like doclas biotech in

USA, Quimdis – SA in France etc.

6.1.2 WEEKNESS

One of the main weaknesses of ANEl is the decentralized IT facility.

Lack of working capital resources.

Increasing R&D expenditure

Availability of raw materials.

High cost of new technological implementation.

Difficulties to maintain different standards of products in various countries.


- 93 -

6.1.3. OPPORTUNITIES.

Increasing demands for herbal extracts and Omega-3 products.

Customer oriented production.

Good quality of products through standarised production processes.

Emerging nutraceutical and comeceutical companies in USA and European

countries.

Increased use of herbal and spice extracts in food and beverages industry.

Favourable export policies from government.

Global awareness about natural products.

Development of innovative products for entering in two new markets.

6.1.4 THREATS.

Strict norms for exporting products.

Large number of competitors in global and national markets.

Restriction in export of certain herbal products to some countries.

Global financial crisis.

Changing policies of government.

Rapid changes in technologies.

Changes in customer needs.


- 94 -

6.2 Conclusions

Here, I put forward that through the organizational study I have been able to acquire and

appreciate knowledge regarding the functioning of different departments in ANEL. This

study gave me a chance to interact with different functional heads and employees, which

helped me to understand things more practically . as a whole it was a nice experience for

me to do a organizational study in ANEL and I would like to hank each and every

employee of the organization for helping me to complete my study.

The secondary topic of finding the factors of motivation in ANEL employees, has also

been done, and has been interpreted with charts and graphs, to know the pulse of the

employees working in ANEl. It has been observed that the employees in ANEL is well

taken care off by the management and by the colleagues , as this is evident form the study

that most of the answers of the questionnaire were positive and the result of the study

showed that the employees in ANEL are dedicated to their duties and respective tasks.

6.3 Suggestions

It is observed that there is no interaction or much of family get together events

happening in ANEL, if these types of events are incorporated the employees will be

emotionally attached to the company and feel the work place as a second home, this in

turn will reduce their stress and tension and make them better productive resources.

A personality development session can be held in a regular basis of either a year or

half yearly so that there is a problem sharing and interactive session between employees ,

this will help them shed their inhibition and make them a team player.


- 95 -

BIBLIOGRAPHY


- 96 -

1. Documents.

Quality management manual of ANEL

Annual reports of ANEL

Production flow charts of the company.

Responsibility and authority annual

Company broachers.

HR policy booklet of the company.

2. Web sites.

www.arjunanatural.com

www.WTO.com

www.spicesboard.com

www.intracen.org

www.businessdictinary.com

3. References.

1.Organization and management studies, Educational publishers and distributors,

Ernakulam.

2.Meaningfulness, commitment and engagement: The intersection of a deeper level

of intrinsic motivation (Vol: 11 Number:2 ,pp 194) ,University of U.S.A, U.S.A.

3.How Do Rewards and Management Styles Influence the motivation to Share

knowledge , SMG Working paper No: 6/2008, www.papers.ssrn.com.

http://www.wto.com/

http://www.spicesboard.com/

http://www.intracen.org/

http://www.businessdictinary.com/



- 97 -

4. A Research Study on the Effect of Work motivation on Job Satisfaction,

www.papers.ssm.com

5. The Relationship between Perceived Training Opportunities, Work Motivation and

Employee Outcomes, International journal of training and development , Vol. 12, issue 3,

September 2008, www.papers.ssrn.com.

6. Organizational Behaviour” Tata McGraw – Hill publishing company limited, New

Delhi 110 095

7. Organizational Behaviour , Vikas Publishing house Pvt. LTD, New Delhi- 110 014.

Various official websites of ministry of science and technology, national medicinal plants

board ministry of health & family welfare.

http://www.papers.ssm.com/



- 98 -

APPENDIX


- 99 -

QUESTIONNAIRE


- 100 -

SCMS SCHOOL OF TECHNOLOGY & MANAGEMENT

Prathap Nagar, Muttom, Aluva

Semester project

TOPIC: FACTORS THAT MOTIVATE THE EMPLOYEEES

1) Designation: ---------------

2) Experience: ---------------yrs

3) Salary slab:

a) Less than 8000 ---

b) 8000 to 12000 ---

c) Above 12,000 ---

Key to answer: 1 – Poor, 2- Satisfactory, 3-Average, 4- Good, 5 – Excellent.

A) Job Satisfaction

Answer the following according to the grade you feel most suits the answer.

4) What is your level of satisfaction with regard to your job?

1-- 2-- 3-- 4-- 5--

5) How do you rate your level of involvement in the work assigned to you?

1-- 2-- 3-- 4-- 5--

6) How do you rate your level of job security?

1-- 2-- 3-- 4-- 5—

7) What is your level of satisfaction with the wages/salaries provided to you?

1-- 2-- 3-- 4-- 5—


- 101 -

Answer the following either as Yes or No.

8) Are you clear about your roles and responsibilities?

Yes --- No---

9) Whether your performance is being appraised by your company?

Yes --- No ---

10) Are you provided with uniform?

Yes --- No----

11) Do you over do your target/deadline?

Yes --- No----

B) Awareness of the company affairs among the employees.

12) Are you aware of your company’s HR policy?

Yes --- No----

13) Does your company print a news letter?

Yes --- No----


- 102 -

C) Work environment

Answer the following either as Yes or No.

14) What are your working hours?

-----------------Hrs

15) Are you allowed to do multitasking?

Yes --- No----

16) Are you interested in meeting new people?

Yes --- No----

17) Do you interact with people around you for work related topics?

Yes --- No----

18) Do you help others who have same job profile as yours?

Yes --- No----

19) Are you given training on a regular basis?

Yes --- No----

20) How many training programs were attended by you?

--------------------------------

21) Have these programs been effective in enhancing your skills required.

Yes --- No----


- 103 -

Answer the following according to the grade you feel most suits the answer.

22) How well you rate your satisfaction in personnel loyalty while working in a team?

1-- 2-- 3-- 4-- 5--

23) How well is the peer group bonding?

1-- 2-- 3-- 4-- 5--

24) How do you rate superior and subordinate relations in your company?

1-- 2-- 3-- 4-- 5--

D) Compensation

25) What kinds of financial assistance are you provided by the company?

---------------------------------------------------------------------------------

---------------------------------------------------------------------------------

26) Is the company providing you with mediclaims or ESI?

Yes --- No----

27) Are you provided with additional accidental claims?

Yes --- No----

28) Other benefits:

a. Educational awards for employees’ children

Yes --- No----


- 104 -

b. If yes specify?

------------------------------------------------------------------

------------------------------------------------------------------

------------------------------------------------------------------

c. Leave/travel concession

Yes --- No----

d. Any other perks or gifts?

-----------------------------------------------------------------

-----------------------------------------------------------------

-----------------------------------------------------------------

-----------------------------------------------------------------

-----------------------------------------------------------------

E) Welfare measures

29) Are there any canteen facilities in the premises?

Yes --- No----

30) Is it subsidized?

Yes --- No----

31) Are you provided with drinking water in your work place?

Yes --- No----


- 105 -

32) How do you rate the sanitation facilities in your company?

1-- 2-- 3-- 4-- 5—

33) Are there facilities for separate toilet facilities for men and women?

Yes --- No----

34) Is there any family get together sponsored by the company?

Yes --- No----

report

Documents

organisation study

good organization structure

good organizational

decentralized structure

organisatoinal structure

hierarchy of authority

division of authority

work flow