M.B.A PROGRAMME

M.B.A PROGRAMME

INTRODUCTION

HUMAN RESOURCE MANAGENMENT

Human resource management is rather difficult to say spontaneously what management means though we have studied a course in management. But it is necessary to recall what management is before studying of human resource management. Management has been the art of getting things done through people. The term human resource is quite popular in India with the institution of ministry of human resource development in the union cabinet. But most people may not know what exactly the term human resource means.The term human resource management can be thought of as the knowledge, skills, creative abilities, talents and aptitudes of an organization work force, as well as the value, attitudes and beliefs of the individuals involved it can also be explained in the sense that is resource like any natural resources. It does mean that the management can get and use the skills, tapping and utilizing them again and again. Human resource is also regarded as human factor, human asset, human capital and the like. The term labor and manpower had been used widely denoting mostly the physical abilities and capabilities of employees.For any organisation to function effectively, it must have resource of men (Human Resource), money, materials and machinery. The resources by themselves cannot fulfill the objectives of an organisation, they need to be collected, co-ordinated and utilised through human resources. And, the effective management of human resources is also vital. Hence, Human Resource Management (HRM) has emerged as a major function in organisations.Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

Human resource management is an essential function of both private and public sector organizations. In this lesson, you'll learn what human resource management is, as well as its objectives and responsibilities in an organization. Human resource management means management of people at work. HRM is the process which binds people with organizations and helps both people and organization to achieve each others goal. Various policies, processes and practices are designed to help both employees and organizations to achieve their goal.

Human resource management is branch of management that deals with people at work, it is concerned with the human dimensions of management of the organization. As organization consists of people, therefore acquiring them, developing their skills, providing them motivation in order to attain higher goal and ensuring that the level of commitment is maintained are the important activities.Human resource constitutes of all the management decisions responsible for relationship between organization and employees.HRM is the field of management which plans, organizes, controls the functions of procurement, development, maintenance and utilization of the work force so that.

1. Organization goals can be accomplished.

2. Objectives of human resources can be accomplished

3. Objectives of society can be accomplished.

MEANING OF HUMAN RESOURCE MANAGEMENTDifficult terms are used to denote human resource management. They are labor management, labor administration, and labor management relations. Employee-employer relations, industrial relations, personnel administration, personnel management and the like. Though these terms can be differentiated widely the basic nature of distinction lies in the scope or coverage evolutionary stage. In simple sense, human resource management means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements. Human Resource Management is the process of recruitment, selection of employee, providing proper orientation and induction, providing proper training and the developing skills, assessment of employee (performance of appraisal), providing proper compensation and benefits, motivating, maintaining proper relations with labour and with trade unions, maintaining employees safety, welfare and health by complying with labour laws of concern state or country.

DEFINITIONS HUMAN RESOURCE MANAGEMENTThe process of hiring and developing employees so that they become more valuable to the organization.Human Resource Management includes conducting job analyses, planning personnel needs, recruiting the right people for the job, orienting and training, managing wages and salaries, providing benefits and incentives, evaluating performance, resolving disputes, and communicating with all employees at all levels. Examples of core qualities of HR management are extensive knowledge of the industry, leadership, and effective negotiation skills. Formerly called personnel management.many great scholars had defined human resource management in different ways and with different words, but the core meaning of the human resource management deals with how to manage people or employees in the organisation.

Edwin Flippo:-

1)"The planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished"Human resource management can be concluded as a business oriented philosophy concerned with the management of people in order to obtain added value from them and achieve competitive advantage.2)HRM as planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.

The National Institute of Personal Management :-

(NIPM) of India has defined human resources personal management as that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well being of the individuals and of working groups, to enable them to make their best contribution to its success.

Decenzo and Robbins:-

HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organsational objectives. This is true, regardless of the type of organization government, business, education, health or social action.SCOPE OF HUMAN RESOURCE MANAGEMENTThe scope of Human Resource Management refers to all the activities that come under the banner of Human Resource Management. These activities are as follows.

HRM in Personnel Management: This is typically direct manpower management that involves manpower planning, hiring (recruitment and selection), training and development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity. The overall objective here is to ascertain individual growth, development and effectiveness which indirectly contribute to organizational development.

It also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, traveling policies and procedures and other related courses of actions.

HRM in Employee Welfare:This particular aspect of HRM deals with working conditions and amenities at workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services. It also covers appointment of safety officers, making the environment worth working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits.

Industrial Relations: Since it is a highly sensitive area, it needs careful interactions with labor or employee unions, addressing their grievances and settling the disputes effectively in order to maintain peace and harmony in the organization. It is the art and science of understanding the employment (union-management) relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behavior and maintaining work relations, collective bargaining and settlement of disputes.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

Objectives are predetermined goals to which individual or group activity in an organization is directed. Objectives of personnel management are influenced by organizational objectives and individual and social goals. Institutions are instituted to attain certain specific objectives. Institutions procure and manage various resources including human to attain the specific objectives. Thus, human resources are managed to divert and utilize their resources towards and for the accomplishment of organizational objective.1.To help the organization reach its goals.

2.To ensure effective utilization and maximum development of human resources.

3.To ensure respect for human beings. To identify and satisfy the needs of individuals.

4.To ensure reconciliation of individual goals with those of the organization.

5.To achieve and maintain high morale among employees.

6.To provide the organization with well-trained and well-motivated employees.

7.To increase to the fullest the employee's job satisfaction and self-actualization.

8.To develop and maintain a quality of work life.

9.To be ethically and socially responsive to the needs of society.

10.To develop overall personality of each employee in its multidimensional aspect.

11.To enhance employee's capabilities to perform the present job.

12.To equip the employees with precision and clarity in transaction of business.

13.To inculcate the sense of team spirit, team work and inter-team collaboration.

PRINCIPLES OF HUMAN RESOUCE MANAGEMENT1.Principle of maximum individual development.

2.Principle of scientific selection.3.Principle of high morale.4.Principle of dignity of labor.5.Principle of team spirit.6.Principle of effective communication.7.Principle of fair remuneration.8.Principle of effective utilization of human resources.9.Principle of participation.10.Principle of contribution to national prosperity.SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT

Human resource plays a crucial role in the development process of modern economics. There are great differences in development between countries which seem to have roughly equal resources, so it is often felt that, though the exploitation of natural resources, availability of physical and financial resources and international aid play prominent roles in the growth of modern economics, none of these factors is more significant that efficient and committed manpower.Human resources play a crucial role in the development process of modern economies. There are great differences in development between countries which seem to have roughly equal resources, so it is necessary to enquire into the difference in human behavior. It is often felt that, though the exploitation of natural resources, availability of physical and financial resources and international aid play prominent roles in the growth of modern economies, none of these factors is more significant than efficient and committed manpower. It is in fact, said that all development comes from the human mind.

Human resources are the valuable assets of the corporate bodies. They are their strength. To face the new challenges on the fronts of knowledge, technology and changing trends in global economy needs effective human resource management. Significance of HRM can be seen in three contexts: organisational, social and professional.

Organisation Significance:

It contributes to the achievement of organisational objectives in the following ways: 1. Good human resource practice can help in attracting and retaining the best people in the organisation.

2. Developing the necessary skills and right attitudes among the employees through training, development, performance appraisal, etc.

3. Securing willing cooperation of employees through motivation, participation, grievance handling, etc Effective utilisation of available human resources.

4. Ensuring that enterprise will have in future a team of competent and dedicated employees.

Social Significance:

Social significance of HRM lies in the need satisfaction of personnel in the organisation. Since these personnel are drawn from the society, their effectiveness contributes to the welfare of the society. Society, as a whole, is the major beneficiary of good human resource practice.

i. Employment opportunities multiply.

ii. Eliminating waste of human resources through conservation of physical and mental health.

iii. Scare talents are put to best use. Companies that pay and treat people well always race ahead of others and deliver excellent results.

Professional Significance:

Professional significance of HRM lies in developing people and providing healthy environment for effective utilisation of their capabilities. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT:

In order to achieve the above objectives, Human Resource Management undertakes the following activities:

1. Human resource or manpower planning. 2. Recruitment, selection and placement of personnel. 3. Training and development of employees. 4. Appraisal of performance of employees. 5. Taking corrective steps such as transfer from one job to another. 6. Remuneration of employees. 7. Social security and welfare of employees. 8. Setting general and specific management policy for organizational relationship. 9. Collective bargaining, contract negotiation and grievance handling. 10. Staffing the organization. 11. Aiding in the self-development of employees at all levels. 12. Developing and maintaining motivation for workers by providing incentives. 13. Reviewing and auditing manpower management in the organization 14. Potential Appraisal. Feedback Counseling. 15. Role Analysis for job occupants. 16. Job Rotation. 17. Quality Circle, Organization development and Quality of Working Life.FACTORS OF HUMAN RESOURCE MANAGEMENT:

In the 21st century HRM will be influenced by following factors, which will work as various issues affecting its strategy:

Size of the workforce. Rising employees expectations Drastic changes in the technology as well as Life-style changes. Composition of workforce. New skills required. Environmental challenges. Lean and mean organizations. Downsizing and rightsizing of the organizations. Culture prevailing in the organization etc.

RECRUITEMENT AND SELECTIONOnce the required number and kind of human resources are determined, the management has to find the places where required human resources are or will be available also find the means of attracting them towards the organizations before selecting suitable candidates for jobs. All this process is generally known as recruitment. Some people use the term recruitment or employment. These two are not one and the same either. Technically speaking the function of recruitment precedes the selection function and it includes only finding, developing, the sources of prospective employees and attracting them to apply for jobs in an organization, where as the selection in the process of finding out the most suitable candidate to the job out of the candidate attracted.A process of discover the source of manpower to meet the recruitments of the staffing and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient work force.MEANING OF THE RECRUITEMENT

The main aim of an effective recruitment program is to attract the best people for, the job and aid the recruiter by making a wide choice available. A good job description helps in attracting the right kind of candidates for the job. The recruitment efforts and the costs involved are generally in proportion to the criticality of the vacant position and the urgency of the need.

OBJECTIVES OF RECRUITEMENT To attracted the people with multi-dimensional skills and experiences that suit the present and future organizational strategies.

To induct outsiders with a new perspective to lead the company.

To infuse fresh blood at levels of organization.

To develop an organizational culture that attracts competent people top the company.

To search or head hunt/ head pouch people whose skills fit the companys values.

To devise methodologies for assessing psychological traits.

To seek out non-conventional development grounds of talent.PROCESS OF RECRUITMENT

FACTORS AFFECTING RECRUITEMENT Both internal and external factors affect recruitment. The external factors include supply of and demand for human resources employment opportunities and/or unemployment rate, labour market conditions, political, legal requirement and governmental policies. Sec is factors, information Systems etc. The internal factors include the companys pay package including

Salary, fringe benefits and incentives, quality of work life, organization culture,career planning and growth opportunities, size of the company, companys product, services, geographical spread of the companys operations via local, national or global companys growth rate, role of trade unions and cost of recruitment.

RECRUITMENT POLICY

Recruitment policy of any organizations is derived from the personnel policy of the same organizations. In other words the former is a part of the latter. However, recruitment policy by It self should take into consideration the governments reservation policy, policy regarding sons of soil etc. personnel policies of other organizations regarding merit, internal sources, social responsibility in absorbing minority sections, women etc.

The following factors should be taken into consideration in formulating recruitment policy. They are:

Government polices

Personnel policies of other competing organizations

Recruitment sources

Recruitment needs

Recruitment costs

Selection criteria and performance etc.

IMPACT OF PERSONNEL POLICIES ON RECRUITMENT POLICIES

Recruitment policies are mostly drawn from personnel policies of the organization. General personnel policies provide a variety of guidelines to be spelt out in recruitment policy. After formulation of the recruitment policies, the management has to decide whether the centralize or decentralize the recruitment function.

CENTRALIZED VS DECENTRALIZED RECRUITMENT

Recruitment process vary from one organization to another some organizations like commercial banks resort to centralized recruitment while some organizations like the Indian railway resort to decentralized recruitment practices.

SOURCES OF RECRUITMENT The Sources are those where prospective employees are available Management has to find out and develop sources of recruitment as early as possible because of high rate of time- lapse. The sources of recruitment are broadly divided into internal and external sources. Internal sources are the sources with in organizational pursuits. External sources are sources outside organizational pursuits.

INTERNAL SOURCES1. Present Permanent employees.

2. Present temporary employees.3. Retired employees. 4. Dependents of deceased / disabled / retired / present employees.

1. Present Permanent Employees:

Organizations consider the candidates from this source for higher-level jobs due to availability of most suitable candidate for relatively or equal to external source. To motivate the present employees, that the organization can satisfy the employees also.

2. Present Temporary Employees: Organizations find this source to fill the vacancies relatively at lower level owing to the availability of suitable candidates or trade and pressure or in order to motivate them on present job.3. Retired employees: Generally a particular organization retrenches the employees due to lay-off. The organization takes the candidates for employment from the retrenched employees due to obligation, trade union pressure and the like. Some times the organizations prefer to re-employee their retired employees as a token of their loyalty to organization or postpone some inter-personal conflicts for promotion etc.4. Dependents of Deceased / Disabled / Retired / Present Employees: Some organizations with a view to develop the commitment and loyally of not only the employees but also his family member and to build up the image, provide employment to the dependent(s) of deceased, disabled and present employees. Such organizations find this source as an effective source of recruitment.

HRM is indeed vast. All major activities in the working life of a worker from the time of his or her entry into an organization until he or she leaves come under the purview of HRM. Specifically the activities included are HR planning, job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and communication, welfare, safety and health, industrial relations (IR) and the like. For the sake of convenience, we can categories, we can categorise all these functions into seven sections,

EXTERNAL SOURCES

Campus recruitment:

Under this method many companies send their representatives to interview candidates in colleges and universities. Companies realize that campus recruitment is one of the best sources for recruiting the cream of the new blood. This source enables the company to point an attractive picture of its employee's opportunities and to be advanced screening of candidates. The better candidates.

Private Employment Agencies:Line managers are relieved from recruitment functions so that they can concentrate on their operational activities and recruitment function is entrusted to private agency or consultants. These agencies are increasingly being used as a source of personnel. This method is important for specialized candidates. Some of these agencies are now specializing in only one type of personnel operations clerical, managerial and so forth.Public Employment Agencies: Employment exchanges are regarded as good source of recruitment for skilled, semiskilled and unskilled operative jobs. The job seekers get their names registered with qualifications in employment agencies, which were managed and operated by the central and state governments. The employers notify the vacancies to be filled in by them to such agencies, effective use of this agency requires that the employers give definite job specification to the agency and that agency do more preliminary screening and refer the names of prospective candidate to them.

Professional associations: In this, the consultants who specialize in the recruitment of managers and other senior officials are now being called upon to assist the management in filling of those posts. Companies hire the services of these consultants at the time of recruitment of the senior officials. These consultants agencies on receiving requisitions from the client companies, advertise job description in leading newspapers and periodicals without disclosing the names of the employers. The applicants received are posted on to the concerned employers. Sometimes; these firms screen, interview and select the candidates, if asked for by the company.

Databanks: The management can collect the bio-data of the candidates from different sources like Employment Exchanges, Educational Training Institutes, candidates, etc and feed them in the computer. It will become another source and the company can get the particulars as and when it needs to recruit. By this source lower level, middle level and top level positions are recruited by the organization.

Casual applications:

Depending upon the image of the organization, its prompt response, participations of the organization in the local activities, level of unemployment, candidates apply casually for jobs through mail or temporary and lower in personnel department. This would be a suitable source for tempotrary and lower level jobs.

Similar organizations:

Generally, experienced candidates are available in organizations producing similar products or are engaged in similar business. The management can get most suitable candidates from this source. This would be most effective source for executive positions and newly established organization or diversified or expanded organizations.

Trade unions:

Generally, unemployed or under employed persons or employees seeing change in employment put a word to the trade union leaders with a view to getting suitable employment due to latters intimacy with management. As such the trade union leaders are aware of the availability or candidates.

RECRUITMENT TECHNIQUES Recruitment Techniques are the means or media by which management contracts prospective employees or provides necessary information or exchanges ideas or stimulates them to apply for jobs. Management uses different types of techniques to stimulate internal and external candidates.Techniques useful to stimulate internal & external candidates are:1. Promotions2. Transfers3. Recommendation of Present employees4. Scouting5. Advertising6. Walk-In7. Consult-In8. Head-hunting9. Tele-Recruitment10. Body Shopping1.Promotions: Most of the internal candidates would be stimulated to take up higher responsibilities and express their willingness to be engaged in the higher level jobs if management gives them the assurance that they will be promoted to the next higher level.

2.Transfers: Employees will be stimulated to work in the new sections or places if management wishes to transfer them to the places of their choice.

3. Recommendation of Present employees: Management can contact, persuade the outsiders to apply for job in the organization through the recommendations to the candidates by the present employees, trade unions leaders, etc.4.Scouting: It means sending the representation of the organizations to various sources of recruitment with a view to persuading or stimulating the candidates to apply for jobs. The representatives provide information about the company and exchange information and ideas and clarify the doubts of the candidate.5.Advertising: It is widely accepted technique of recruitment, though it mostly provides one way communication. It provides the candidates in different sources, the information about the job and company and stimulates them to apply for jobs. It includes advertising through different media like newspapers, magazines of all kinds, radio, television etc.

6.Walk-In: The busy organizations and the rapid changing companies do not find time to perform various forms of recruitment. Therefore, they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a special place. The suitable candidates from among the interviewees will be selected for appointment after screening the candidates through tests and interview.

7.Consult-In: The busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates from among such candidates through the selection process.8.Head-hunting:The companies request the professional organizations to search for the best candidates particularly for their senior executive positions. The professional organizations search for the most suitable candidates and advise the company regarding the filling up of the positions. They are also called as search consultants.

9.Tele-Recruitment:The technologies revolution in telecommunication helped the organizations to use Internet as a source of recruitment. Organizations advertise the job vacancies through the World Wide Web Internet. The job seekers send their applications through e-mail. Alternatively, job seekers place their CVs in the World Wide Web/internet, which can be drawn by the prospective employers depending upon their requirements.

10.Body Shopping:Professional organizations and the hi-tech training institutes develop the pool of human resources for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise, the organizations approach the prospective employees to place their human resources. These are mostly used for computer professionals.

SELECTION Selection is the process of finding out the most suitable candidate to the job out of the candidates recruited. The obvious guiding policy in selection is the intention to choose the best qualified and suitable job candidate for each unfilled job. The objective of the selection is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The selection procedure is the system of function s and devices adopted in a given company to ascertain whether the candidates' specification is matched with the job specifications and requirements or not.Essentials of Selection Procedure: Someone should have the authority to select. The authority comes from the employment requisition, as developed by an analysis of the work-load and work-force. There must be some standard of personnel with which a prospective employee may be compared. There must be sufficient number of applicants from whom the required number of employees may be selected.Significance of Selection Process:

Selection of personnel to man the organization is a crucial, complex and continuing function. The ability of an organization to attain its goals effectively and to develop in a dynamic environment largely depends upon the effectiveness of its selection programme. If right personnel is selected the remaining functions of personnel management becomes easier, the employee contribution and commitment will be at an optimum level and employee-employer relations will be congenial. In an opposite situation where the right person is not selected, the remaining functions of personnel management, employee-employer relations will not be effective. It the right person is selected, he becomes a valuable asset to the organization. In case of faulty selection, the employee will become a liability to the organization.

ORGANIZATIONAL RELATIONSHIPS

Before designing a selection procedure, the manner in which tasks and responsibility for accepting or rejecting candidates should be shared by line and staff executives, must be laid down. The personnel department should eliminate all unsuccessful candidates, so that the time of the line executives need not be spent on such people. Secondly, candidates who can meet job requirement should be made availability promptly.

FACTORS AFFECTING SELECTION DECISIONS

The goal of selection is to select the right person at right time for a right place. Therefore a number of factors affect the selection decision of candidates. The important among them are:1. Profile Matching:2. Successive hurdles:3. Organizational & Social environment:4. Multiple correlationsProfile Matching: Tentative decisions regarding selection of candidate (who is known) is taken in advance. The scores secured by these known candidates in various tests are taken as standard to decide the success or failure of the other candidates at each stage. Normally a decision about known candidates is taken at interview stage. Possible care is taken to match the candidates' bio data with job specification.

Successive hurdles:In this method hurdles are created at every stage of selection process. Therefore, applicants must successfully pass each and every screening device in case of hurdles.Organizational & Social environment: Some candidates who are eminently suitable for job may fail as successful employees due to varying organizational and social environment. Hence candidates' specification must match with not only job specification but also with organizational and social environment requirements.Multiple correlations:It is based on the assumption that a deficiency is one factor that can be counter balanced by an excess amount of another .A candidate is routed through all the selection steps before a decision is made. The composite test score index is taken into accounting the selection tests. Hence, for broader line cases multiple correlation method is useful and for other successive hurdles method is useful.

PROFILE MATCHINGTentative decision regarding the selection of candidates is taken in advance. The scores secured by these known candidates in various tests are taken as a standard to decide the success or failure of other candidates at interview stage.

1. Employment

2. Line manager

3. Reference

4. Medical examination

5. Final interview

6. Tests

7. Group discussions

8. Preliminary interview

9. Written examination

10. Application form

1. Employment: Thus, after taking the final decision the organization has to intimate this decision to the successful as well as to the unsuccessful candidates. The organization sends the appointment order to the successful candidate either immediately or after sometime depending upon its time schedule. At the same time, certain organizations also dispatch the rejection letters to the unsuccessful candidates accordingly.

2. Line Managers:

This is the last and the final stage of the selection procedure. The concerned line manager has to make the final decision whether to select or reject a candidate after soliciting the required information through different selection techniques.

3. Reference Checks:After completions of the final interview and medical examination, the personnel department will engage in checking references. Candidates are required to give the name and address of reference in their application form. These references may be from the individuals who are familiar with the candidate's academic achievements or from the applicant's previous employer who is well versed with the applicant's job performance and sometimes even from the co-workers. The information extracted from the concerned people through these references are :job title, job specification and description, period of employment, pay and allowances, gross emoluments, benefits provided, rate of absence, willingness of the previous employer to employ the candidate again, candidate's regularity at work, character progress, etc. Checks on references are made by mail or telephone and occasionally in person.

4. Medical Examinations: Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hard working conditions, clear tone, etc. Medical examination reveals whether or not a candidate possesses these qualities. The basic aim of this examination is to judge whether the applicant is medically suited for the specific job.

5. Final Interview: This is the most essential step in the process of selection. The interview is a selection technique where the interviewer matches the information obtained by the candidate through various means to the job requirements and to the information obtained through his own observation during interview.

Commonly, interview falls into six main categories:I. Patterned or Highly or Structured Interview.II. Non-Directive or Free or Quite Unorganized Interview.III. Depth or Action Interview.IV. Situational or Problem-Type Interview or Leaderless Group discussion Interview.V. Panel or Board Interview.VI. Stress interview.I.Patterned or Highly or Structured Interview: It is based on the assumption that, to be most effective, every pertinent detail bearing on what is to be accomplished, what kind of information is to be sought or given how the interview is to be conducted and how much time is to be allotted to it, must be worked out in advance. Questions would be asked in a particular order with very little deviation. Such interviews are called Standardized Interviews, for they are pre-planned to a high degree of accuracy and precision.II.Non-Directive or Free or Quite Unorganized Interview:It is unstructured and is relatively non-planned as to format. In such an interview, the applicant is asked some very general question and he may reply to these in any way for a considerable length of time. Generally, the candidate is encouraged to express himself on a variety of subjects, on his expectations and motivations, background and upbringing, interests, even political predications, etc. The interviewers look for traits of character and nature of his aspirations had his strengths and weaknesses, manifest or potential. The purpose of such interview is to determine what kind of person a candidate really is.

III.Depth or Action Interview: It is semi-structured in nature and utilizes questions in key areas which been studied in advance by the interviewer. The typical subject discussed in such interviews includes the candidate's home life, education, previous experience, aptitude, recreational interests and hobbies. The interviewer provides instructional information about his organization, the nature of work, pay, opportunities for advancement and demands likely to be made on the employee. The idea of such an interview is to get a true picture of the interviewee by intensively examining his background and thinking so that a correct evaluation and decision may be made.

IV.Group or Discussion Interview: In this type of interview, groups rather than individuals are interviewed. The interviewees are given certain problems and are asked to reach a specific decision within a particular time limit. The applicants enter into group discussions. A few observers watch the activity of the interviewees - those who take a lead in the discussion, those who try influencing others, those who summarize and clarify issues, and those who speak effectively. The main aim is to see how well individuals perform on a particular task or in a particular situation.V.Panel or Board Interview:

In this type of interview, a candidate is interviewed by a number of interviewers. Question may be asked in turn or in random order as they arise on any topic.VI. Stress Interview: In this type of interview, the interviewer assumes a hostile role towards an applicant. He deliberately puts the candidates on the defensive mode by trying to annoy, embarrass or frustrate him. Usually, the interviewer in such circumstances asks questions rapidly, criticizes the interviewees answers, interrupts him frequently and keeps the candidate waiting indefinitely and then subjects him to a barrage of interrogation, questioning whatever he might state or too many question are asked at a time by many interviewers, make derogatory remarks about the candidate or puts him in an awkward situation by dropping something on the floor and asking him to pick it up, accusing him that he is lying and so on. 6. Tests: It would be difficult for the organizations to evaluate the candidate's performance only on the basis of application blank and/or interviews. Hence, in order to solicit information about the candidate i.e.., their resume, job description and the critical competencies required in the job, certain tests called psychological tests are conducted. These tests are referred to as Psychological Tests because psychologists have contributed a lot in developing these tests.7.Group Discussion:It is a method where groups of successful applicants are brought around a conference table and are asked to discuss either a case-study or a subject matter. They are required to analyze, discuss, find alternative solutions and finally select the sound solution. A selection panel observes the candidates in the areas of initiating a discussion, explaining the problem, soliciting

8.Preliminary Interview:These interviews are short and conducted to solicit necessary information from the prospective applicants and to assess their suitability for the job. The information thus provided by the candidate may be related to the job or personal specifications regarding education, experience, salary expected, aptitude towards the job, age, physical appearance and other requirements. Thus, it is a process of eliminating the undesirable and unsuitable candidates. If a candidate satisfies job requirements, he may be selected for further process. This interview is also useful to provide the basic information about the company to the candidate.9.Written Examination: The organizations have to conduct written examinations for the qualified candidates after they are screened on the basis of the application blanks so as to measure the candidate's ability in arithmetic calculations, to know the candidate's attitudes towards the job, to measure their aptitude, reasoning, knowledge in various disciplines and general knowledge.10. Application Form or Application Blank: An application blank provides preliminary information as well as an aid in the interview by indicating areas of interest and discussion. It is a good means of quickly collecting verifiable (and therefore fairly accurate) basic historical data (employee's background) from the candidate.

SELECTION PROCESS

JOB ANALYSIS Job analysis is basis for the selecting the right candidate. Every organization should finalize the job, job specification, job description, and employee specifications before proceeding to the next step of selection.

RECRUITMENT

Recruitment refers to the process of searching for prospective employees and stimulating them t applies for jobs in an organizations. It is the basis of the remaining techniques of the selection and the latter varies depending upon the former.

Many companies formulate their own style of application forms depending upon the requirements of information based. On the size of the company, nature of business activities, type and level of the job etc. This is particularly for the clerical positions. Information is generally required on the following it

Personnel background information

Educational attainments

Work experiences

Personnel background information:

It includes name, present and permanent address, sex, date of birth, martial status, health, height and weight, nationality number of dependents, annual income of applicants parents etc. this information can be used by the management to know the suitability of the candidate regarding his social-economic background, neighbor hood, family status and background, family status and background sociological out look, impact of these factors on employee behavior etc. Educational attainment:

These includes list of schools, college, institutions, attended period of study, major subjects, class, percentage of marks, rank secured, extra curricular activities, positions and membership held during educational career, hobbies, and interest, study either through regular course, or correspondence course or through private study etc. this is the major area of information gathered by the organization through application forms.

Work experience:

It covers experience in all previous jobs with greater particulars about the nature and quantum of work handled, period of experience in each of job, reasons for Leaving the past employers, duties and responsibilities involved name of the immediate supervisor, salary drawn etc. this information enables the organization to know the stability of the employee aptitude for the nature of work, nature of relationship he maintained with the past employers etc.

BIOGRAPHICAL INVENTORIES

In some cases, management may wish to select the existing employees for the higher positions. In such a case the employee is asked to submit for up-to-date bio-data which include name, address, educational qualifications, martial status habits and attitudes, present home, spouse and children self impression, recreation hobbies, interests, values, openings and preferences etc. WRITTEN EXAMINATION Written examination is conducted if there is large number of applicants, as it will be difficult to interview large number of applicants. So to filter the applicants a written examination is conducted. The exam pattern varies according to the job requirements.PRELIMINARY INTERVIEW It is conducted to check the applicants' suitability of the job. The HR department my be conducts this interview, to gather the information about the candidates' education, experience, salary expected, aptitude towards the job, age, physical appearance etc. By this the management can eliminate undesired and unsuitable candidates. If the candidate satisfies the management then he will be selected for further process.

BUSINESS GAMES

Business games are widely used as selection techniques for selected management trainees, executives trainee, and managerial personnel at junior, middle and top management positions.

Business games help to evaluate the applicants in the areas of decision making, identifying the potentialities, handling the situation problem solving skills human relation skills etc. participants are placed in a hypothetical work situation are required to play the role situation in the game will be the successful one on the job.

GROUP DISCUSSION It is a method where groups of successful applicants are brought around a conference table and are asked to discuss either a case-study or a subject matter. They are required to analyze, discuss, find alternative solutions and finally select the sound solution. A selection panel observes the candidates in the areas of initiating a discussion, explaining the problem, soliciting unrevealing information based on the given information and using common sense, keenly observing the discussion of others, clarifying controversial issues, influencing other, speaking effectively, concealing and mediating arguments among the participants, summarizing and finally concluding aptly. Based on this observation, the selection panel judges the candidate's skill and ability and ranks them according to their merit.TESTS

It would be difficult for the organizations to evaluate the candidate's performance only on the basis of application blank and/or interviews. Hence, in order to solicit information about the candidate i.e.., their resume, job description and the critical competencies required in the job, certain tests called psychological tests are conducted. These tests are referred to as Psychological Tests because psychologists have contributed a lot in developing these tests.FINAL INTERVIEW This is the most essential step in the process of selection. The interview is a selection technique where the interviewer matches the information obtained by the candidate through various means to the job requirements and to the information obtained through his own observation during interview.

TYPES OF INTERVIEWS: Informal interview

Formal interview

Planned interview

Patterned interview

Non-direct interview

Depth interview

Stress interview

Group interview

Panel interview

Preliminary interview

Informal interview:

This is the interview which can be conducted at any place by any person to secure the basic and non job related information. The interaction between the candidate and the personnel manager when the former meets the latter to enquirer about the vacancies or additional particulars in connection with he employment advertisement is an example of informal interview.

Formal interview:

In this interview the candidate is given the freedom to tell about himself by revealing his knowledge on various items or areas, his background, expectations, interests etc. similarly, the interviewer also provides information also provides information

Panel or Board Interview: In this type of interview, a candidate is interviewed by a number of interviewers. Question may be asked in turn or in random order as they arise on any topic.

Patterned Interview: It is based on the assumption that, to be most effective, every pertinent detail bearing on what is to be accomplished, what kind of information is to be sought or given how the interview is to be conducted and how much time is to be allotted to it, must be worked out in advance. Questions would be asked in a particular order with very little deviation. Such interviews are called Standardized Interviews, for they are pre-planned to a high degree of accuracy and precision.Non-Directive Interview: It is unstructured and is relatively non-planned as to format. In such an interview, the applicant is asked some very general question and he may reply to these in any way for a considerable length of time. Generally, the candidate is encouraged to express himself on a variety of subjects, on his expectations and motivations, background and upbringing, interests, even political predications, etc. The interviewers look for traits of character and nature of his aspirations had his strengths and weaknesses, manifest or potential. The purpose of such interview is to determine what kind of person a candidate really is.

Depth or Action Interview: It is semi-structured in nature and utilizes questions in key areas which been studied in advance by the interviewer. The typical subject discussed in such interviews includes the candidate's home life, education, previous experience, aptitude, recreational interests and hobbies. The interviewer provides instructional information about his organization, the nature of work, pay, opportunities for advancement and demands likely to be made on the employee. The idea of such an interview is to get a true picture of the interviewee by intensively examining his background and thinking so that a correct evaluation and decision may be made.Stress Interview: In this type of interview, the interviewer assumes a hostile role towards an applicant. He deliberately puts the candidates on the defensive mode by trying to annoy, embarrass or frustrate him. Usually, the interviewer in such circumstances asks questions rapidly, criticizes the interviewees answers, interrupts him frequently and keeps the candidate waiting indefinitely and then subjects him to a barrage of interrogation, questioning whatever he might state or too many question are asked at a time by many interviewers, make derogatory remarks about the candidate or puts him in an awkward situation by dropping something on the floor and asking him to pick it up, accusing him that he is lying and so on. The purpose is to find out how a candidate behaves in a stress situation- whether he losses his temper, gets confused or frightened.

Group or Discussion Interview: In this type of interview, groups rather than individuals are interviewed. The interviewees are given certain problems and are asked to reach a specific decision within a particular time limit. The applicants enter into group discussions. A few observers watch the activity of the interviewees - those who take a lead in the discussion, those who try influencing others, those who summarize and clarify issues, and those who speak effectively. The main aim is to see how well individuals perform on a particular task or in a particular situation.Panel or Board Interview: In this type of interview, a candidate is interviewed by a number of interviewers. Question may be asked in turn or in random order as they arise on any topic.MEDICAL EXAMINATION

Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hard working conditions, clear tone, etc. Medical examination reveals whether or not a candidate possesses these qualities. The basic aim of this examination is to judge whether the applicant is medically suited for the specific job.REFERENCE CHECKS After completions of the final interview and medical examination, the personnel department will engage in checking references. Candidates are required to give the name and address of reference in their application form. These references may be from the individuals who are familiar with the candidate's academic achievements or from the applicant's previous employer who is well versed with the applicant's job performance and sometimes even from the co-workers

In case the reference check is form the previous employer, information for the following areas may be obtained:

1. Job title

2. Job description

3. Period of employment

4. Gross emoluments

5. Benefits provided

6. Rate of absence

FINAL DECISION BY THE LINE MANAGER CONCERNED

This is the last and the final stage of the selection procedure. The concerned line manager has to make the final decision whether to select or reject a candidate after soliciting the required information through different selection techniques.EMPLOYMENT Thus, after taking the final decision the organization has to intimate this decision to the successful as well as to the unsuccessful candidates. The organization sends the appointment order to the successful candidate either immediately or after sometime depending upon its time schedule. At the same time, certain organizations also dispatch the rejection letters to the unsuccessful candidates accordingly.

EFFECTIVENESS OF SELECTION PROGRAMME

The purpose of selection programmed and techniques is to choose the most suitable candidate for a given job from among the prospective employees. The selection programmed would be effective, if the candidates selected or hired perform their jobs efficiently and sincerely with commitment.

RECENT TRENDS IN SELECTION

New trends have been emerging in selection techniques along with other areas of human resources management. The recent trends in selection include:

Selection by innovation

Leasing

360 degree selection programmed

Selection by innovation:

Management by observes the performance of key executives of competitors. If the performance of key executives is excellent or the key executives are change agents, the management invites such executives to join the organization by offering attractive salary and benefits.

Leasing: Presently, the organization needs to employee specialists to take up the highly skilled jobs. N fact, the changes in technology demand highly skilled employees. It would be very difficult to small organizations to employ the skilled employees as they demand high pay. This type of arrangement is beneficial to the consultants, employees on lease and the industrial organizations. The business organizations can utilize the services of the experts with less cost. The employees get high pay and benefits.

360 degree selection programme:

Normally superiors administer the selection tests and interviews. They judge the fit between the job and the candidates. But the employees skills, knowledge and performance affect not only superiors but also subordinates and the employees of the same level. Hence, the organizations started involving the subordinates and the employees of the same level in administrating the employment tests and interviews. This type of selection programmer is called 360 degree selection programme.

OBJECTIVES OF THE STUDY To study the Recruitment & Selection Process followed by SANGAM DAIRY LTD

To identify processing problems if any with the existing Recruitment & Selection process and make suggestions. To know the drawbacks existing in the recruitment policy of the SANGAM DAIRY LTD.

To offer the findings, suggestions and conclusion for this study.

To examine the selection procedure of the organization.

To evaluate and analyze the effectiveness of recruitment and selection policies.

To elicit the employees opinion regarding the present recruitment and selection process.

NEED OF THE STUDY

Recruitment and Selection process is one of the important functions of HRM. In this present globalization era, human resources are very important for every organization. So effective process of recruitment and selection are needed for the effective organization. Sangam dairy should follow the best methods of recruitment and selection procedures. For every organization, search for the suitable applicants is the first step and selection of right person for the right job in right time is basic foundation. If this foundation is strong, then there is a lot of chance for the organization to increase their effectiveness at the key points. So finally selection of the candidate becomes the heart of the particular organization. So, studying is done to understand the recruitment & selection activities in the organization and to know what extent these activities have been successfully in the organization development.

SCOPE OF THE STUDY

The study is conducted in the Vadlamudi. The employees covered in this study are who own SANGAM DAIRY.Ltd and this study tries to get feedback from them. The concept of the study is related to RECRUITMENT AND SELECTION with the Employees of SANGAM DAIRY.Ltd.SIGNIFICANCE OF THE STUDY Student of this types very much useful to academicians, researchers, scholars from making in depth analysis in the topic.

Studies of this type are useful to similar organization in general and Sangam dairy Ltd. particular for making policy decisions or the betterment of the organization.

Studies of these types are more useful to access Sangam Ltd i.e. the attitude of the employee and can make necessary steps to motivate them towards the improvement of the performance of the organization.

PRESENTATION OF THE STUDY The first chapter deals with theoretical aspects relating to recruitment and selection

The second chapter is related to the objectives and methodology of the study. The third chapter presents the profile of dairy industry with special reference to sangam dairy limited.

The fourth chapter is discussing about the recruitment and selection process in sangam dairy limited.

The fifth chapter attempts to find out the findings and suggestions of the study.

RESEARCH METHODOLOGY Methodology is scientific and systematic search for pertinent information on specific topic. The reliability of management decision depends upon the quality of data. Basically we have two types.

Primary data

Secondary data

Primary data:

Primary data is obtained through the interaction with various department heads and personnel.

1. Observation

2. personal interview

3. Questionnaires

4. Schedules

Of these methods Questionnaire is used for data collection.

QUESTIONAAIRE:

The researcher and the respondent do come in contact with each other if this method of survey is adopted. Questionnaires are mailed to the respondents with a request to return after complaining the same. It is the most extensively used method in various economic and business surveys. Before applying this method, usually a pilot study for testing the questionnaire is conducted this reveals the weaknesses, if any, of the questionnaire. Questionnaire to be used must be prepared very carefully so that it may prove to be effective in collecting the relevant information.

Secondary data: Secondary data is collected from the annual reports and holders of sangam dairy and also from the journals and books relating to milk industry.RESEARCH INSTRUMENT

To achieve the objectives of the survey detailed annexure was designed to gather the information from the employer of the organization.

SAMPLING DESIGN

The sampling plans are the procedure or way in the sampling has been down to carry out the present research. The details of the sampling plan include.

Sample method

Sample size

Sample unit

Sample method:

Sample has been selected by using convenient sampling method. Out of the universe of 200 employees. Equal chance of known opportunity of being selected

Sample size:

The researcher considers a sample size of 60of 200 universes. The sample represents the skill employees of the same level of Sangam dairy LTD.

LIMITATIONS OF THE STUDY Since the researcher is done by using sampling technique. The data collected may not be accurate and complete.

The data given by the employee are based on the individual perception and it may not represent he whole organization.

The data collected from the questionnaire is limited and is confined to the questionnaire newly recruited employees could not reveal the information accurately.

Accuracy of study is based on the information given by the respondents so the information may be biased.

The study has been constrained by limitations of time and cost factors.

INDUSTRY PROFILEINTRODUCTION

The popular adage nothing succeeds like success is applicable to the dairy development in India. If the country witnessed the green revolution leading to self-reliance in food grains in the sixties and seventies, the decades of the eighties and nineteens witnessed the white revolution. India total milk production is ranked first in the world followed by the United States. Initially dairying was largely an unorganized activity. By and large land holding farmers kept cattle mainly for bullock production. Milk was essentially by product. The surplus after domestic consumption was either converted into conventional products mainly Ghee and sold to middlemen who cater to the needs of the market.

As India enters an era of economic reforms, agriculture, particularly the live stock sector is poisoned to be a major growth area. The fact that dairying could play a more constructive role in promoting rural welfare and reducing poverty is increasingly being recognized.

For example, milk production alone involves more than producers, each raising one or two/buffaloes, cow dung is an important input as organic fertilizer for crop production and is also rudely used as fuel in rural areas. Cattle also serve as an insurance cover for the poor households, being sold during times of distress.

The Board of agricultural carried out the live stock censes in 1919 as a preparatory action for planned dairy development. In 1920, the imperial expert recommended to the government for the establishment of a training center to meet the manpower requirements for managing the Defiance dairy farms. By this time there were three dairy farms and until 1923. The British government approach towards dairying was confined to milk requirements of the military only. After 1923, diploma course in dairy were started to Bangalore.

EVOLUATION

The origin of dairy farms under public management dates back to 1886. When the department of defense established a few dairy farms in that year to supply milk and milk products to the British troops. The next step was initialized during the First World War. In 1914, the department of defense on the advice of the board of agriculture advised the government in 1961, to appoint imperial dairy expert. The next important step was the decision to conduct a census of livestock. The Board of agricultural carried out the live stock censes in 1919 as a preparatory action for planned dairy development. In 1920, the imperial expert recommended to the government for the establishment of a training center to meet the manpower requirements for managing the Defiance dairy farms. By this time there were three dairy farms and until 1923. The British government approach towards dairying was confined to milk requirements of the military only. After 1923, diploma course in dairy were started to Bangalore.

Dr. N.C. Wright, director, dairy research institute, Scotland who was invited to India an in 1936 for reviewing the progress of dairying in the country has made two recommendations:

1. Industry needs have to be solved by developing own technology and technologists in the country.

2. India is country of villages, of which most inhabitants are mall, marginal farmers and landless laborers. Development should be promoted only on co-operative lines.

In 1937, the Luck now milk producers cooperation union limited was established paving the way for the organization of such union in districts and state. In 1945, the famine enquiry commission in its report emphasized. The need for developing fodder supply for increasing milk product and recommended the adoption of mixed farming with a place for fodder and corporation. As a sequel to this, under the greater Bombay milk scheme, milk was procured from kauri district, Gujarat by the private dairy. That gave way to the idea of creating an institutional structure for dairying on co-operative lines.

DEVELOPMENT OF DAIRY IN NINTIES

The momentum gained in the dairy through co-operative during the last 20 years will now take India into nineties as major dairying country of the world. The countrys milk production in the early sixties which was about 20 million tons has touched a record of 56 millions tons. It is likely to reach about 80 million tons by 2000A.D India which one time was dependent on other countries for products such as milk powder, butter and cheese has now become self sufficient. It has even started exporting some of them in small quantities simultaneously efforts are made to expand milk procurement. Processing and marketing to meet the growing demand for milk products.DAIRY CO-OPERATIONIn our country, the co-operative moment owes its development of the initiative of the government. It is only during 1950s that Tamilnadu, Gujarat and Uttar Pradesh took some important steps in organizing dairy cooperative sector, provided a model for the milk producers. Cooperatives in Gujarat and other states provided guidance and policy direction. State level federations of dairy cooperatives have been formed in different states.

The entire institutional network of the cooperatives comprises of 22 federations unions, 75 thousand dairy co-operation societies and over 7 million farmers. Members during 198990 collected an average 10 million it of milk in a day an paid about 1200crores of rupees in a year. MAIN AIM OF AIRY INDUUSTRY IN COOPERATIVE SECTOR Formation of co-operative units of milk producers in every village.

To improve cattle wealth of goods breed which are improved for milk production.

To avoid contaminated diseases buy using proper medicines and injections.

Providing the availability of good breed seeds so as to improve the cattle feed.

Industry mobile hospitals to provide free medical facilities to cattle of the dairy and avoid diseases.

So from the above crystal clear that the cooperative sector would be instrumental in increasing the milk production.

To put above programmers to action in our district with the cooperation of National Dairy Development Board, a Three-Tier programmed was started in 1980. In relation to it 198 milk producers co-operative unions have been set up at village level.

THE THREE-TIRE SYSTEM

The three tire system consists of: 1. Primary dairy cooperative societies at village level. 2. Co-operative unions district level.

3. Federation at state level

MILK SHEDS/UNIONS Operation flood program has been identified into milk sheds/unions.

NoMilk sheds/unions Districts

1 Visaka dairySrikakulam, Vizianagaram, Vizag.

2 Godavari dairyEast and West Godavari

3 Krishna dairy(vijaya)Krishna

4 sangam dairyGuntur

5 Chitoor

Chitoor

6 KurnoolKurnool

7 CuddapaCuddapa

8 Nalgonda -Rangareddy

Nalgonda -Rangareddy

9 Medak-NizamabadMedak-Nizamabad

CO-OPERATING MARKETING

Co-operating dairy society has played a major role in the marketing of ilk in India. Major Quantity of milk is produced in the rural area while the profitable market of the milk and milk products is large in urban area. How ever the quantity of the milk available for sale for an individual farmer is quantity to urban markets on his or her own. They face a number of problems such as inadequate transport facilities and absence of proper marketing therefore the role played by the dairy co-operative in building.

The economic welfare of the farmer is not over emphasized. In addition to the arrangement of sale of milk, the dairy cooperative are also expected to provide veterharey aids, supply cattle needs and arrange for the supply of credit for related purpose.

LOANS TO MEMBERS

The milk co-operatives cannot extend loans to the farmers directly. Instead they can offer guarantee to the amount borrowed by the farmer. It was observed that from small site societies about 7 members received loans amounting to Rs.42, 000 the loans was mainly offered for the purpose o purchase of cross-bread cows in medium purpose of purchase of a cross breed cows. In medium, purpose of purchase of cross-bread cows and 29 members got the loan worth Rs.7, 50,000 for purchase of buffaloes.

NATIONAL MILK DAIRYIn the seventies the national milk grid was a distinct dream. But the next decade saw it taking shape. The benefits from such as arrangement are for both consumers and producers.The development of national milk grid mainly took place for solving the problems of the producers. The producers from highly milk producing districts not only suffered loss because there were no tankers for the extra quantity of milk available during the flush season were lower than those paid during the fewer seasons. The grid solves the problem of the producers.From the consumers side also grid is useful in 1951 there were 20,900 towns and number has to risen to 62360. During the period the urban population has increased from 62.4 millions to 109.1 million, a growth consumer and these also had the necessary purchasing power.SWOT ANALYSIS OF INDIAN DAIRY INDUSTRYSTRENGTHS:Demand profile: Absolutely optimistic.

Margins: Quite reasonable, even packed liquid milk.

Flexibility of product mix: tremendous with balancing equipments you can keep on according to your product line.

Availability of raw material: abundant, presently, more than 80% of milk produced is flowing into the unorganized sector, which requires proper canalization.

Technical manpower: professionally-trained technical human resource pool, built over last 30 years.

WEAKNESS: Perish ability: pasteurization has over come this weakness partially. UHT gives milk long life. Surely, mainly new processes will follow to improve milk Quality and extended its Shelf Life

Lack of control over yield: Theoretically, there is little control over milk yield. How ever, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yield.

Logistics of procurement: Woes of bad roads and adequate transportation facility make milk procurement problematic But with over all economic improvement in India, these problems would also get solved. Problematic distribution: yes, all is not well distribution. But then if ice-creams can be solved virtually at every hook and corner. Why cant we sell other dairy products too? More over it is only a matter of time before we see the emergence of cold chain linking the producer to the refrigerator at the consumers home. Competition: with so many new comers entering this industry competition, is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to curve out their niche.OPPORTUNITIES:

Failure is never find success never ending Dr. Kurten bears out this statement perfectly. He entered the industry when there were only threats. He met failure head on, and how he clearly is an example of never ending success! If dairy entrepreneur are looking for opportunities In India, the following areas must be tapped: Value addition: There is a phenomenal scope for innovations or products like shorthand, ice creams, papers khan, flavored milk, dairies sweets etc. this will lead to grates presently and flexible in the market place along with opportunities in the field of brand building.

Addition of cultured products like yogurt and cheese land further strength both in terms of utilization o resources in the market place.

A lateral view opens up opportunities in mile proteins through case in castigate and other dietary proteins, future opening up export opportunities.

Yet another aspect can be the addition of infant foods generate foods and nutritionalExport potential: Effort to exploit export potential are already on Amul is exporting to Bangladesh, Srilanka, Nigeria and the Middle East .Following to new GATT tread, opportunities will increase tremendously for expertly of agric-products in generic and dairy products in particular.THREATS:

Milk vendors, the un-organized sector. Today milk vendors are occupying the provide of place in the industry organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance.

The study of this swot, analysis shows that the strengths and opportunities for weight weakness and threats strength and transitory. Any investment idea weakness and threats are transitory. Any investment idea can do only when have three essential ingredients entrepreneurship (the ability to take risks); innovate approach (in product lines a

Marketing) and values (of quality lathes) the Indian dairy industry, flowing deli censing. Their success in dairying hygienic and cost-efficient yet economical procurement network. Hygienic and cost-efficient processing facilities and innovativeness I the market place. All that needs to be done is to innovate, convert products yourself: Benjamin Franklin discovered electricity, but it was the man who invented the meter that really made the money.NEED FOR DAIRY DEVELOPMENT In India, the land mass is 304.8 million lactates (1987-88) while the gross irrigated areas as a percentage of cropped area is 32.8%.

In 1950, the cow and buffalo population were 196 million and had increased to 247 million by 1985. It has reached above 300 millions in 1994. The country has the largest cattle and buffalo populations in the world accounting for more then sixth of the worlds cow and more than one. Half of the worlds buffalo population.

In 1988, the human population was about 800 million and has been growing at 2.2% per annum such a large human and cattle populations has to be sustained on a limited land miss, which has led to intensive forming. The serious constraint that the Indian agricultural faces is the problem of disguised unemployment.

And the problem of disguised unemployment and the resultant problem of poverty and inequality of income distribution. Hence development plans have to prepare for efficient utilization of human cattle resources for maximum productivity of land for creating employment opportunities channeling the unemployed and under- employed in to productive works, dairy farming is much important in serving of agriculture laborers and the people who migrated from rural to urban areas in search of employment opportunities throughout the year. He dairy is that gestation period is very short and the benefits of development activities can be reaped soon.

ADVANTAGE OF DAIRY INDUSTRY Strong procurement.

Infrastructure.

Presence of highly skilled man power and cheap labor.

Large number of processing and allied facilities.

Milk production pattern.

INDIA: WORLDS LARGEST MILK PRODUCER India has become the worlds no.1 milk producing countries, with output in 1999-2000 (marketing year ending March 2000) forecasted at 78 million tones. United States, where the milk production is anticipated to grow on pas with U.S at & 71 million tones. The world milk products in 1988 at 557 million tones would continue the steady progress in recent years. Further more, the annual rate of growth in milk production India is between 5-6 percent, against the worlds at 1% the steep rise in the growth pattern has been attributed to a sustained expansion domestic demand, although per capital in modest-at 70 kg of milk equivalent.

MAJOR COMPETITORS

In the year of 1974, Mr. Jagjivandas Patel, founder of Vijay Dairy and Sweets, has started selling milk in a small pot in small town of Surat. After that his four sons have developed the business from one pot to three big outlets in Surat city. In 1981, the group has opened its first such outlet on busy road of Adajan Patiya of Surat City. Local people appreciated quality of all products sold by the outlet and asked for establishment of more outlets in other areas.

After that word-of-mouth was the only advertisement tool for gaining popularity in across the city. In the year 1990, the group opened its second outlet for taste lover citizens of Surat at Palanpur Patiya area of the city. Revenue from this outlet has soon crossed revenue earned by the first outlet. In the year 1997, the group stated its third selling point at Vishal Nagar, New Sardar Bridge. With time, the company has changed its strategy, and started innovations in preparing sweets and dairy products. Today at Vijay Dairy and Sweets, you will find traditional sweets of all regions of India. NRI customer base is also increasing day-by-day. For them we serve our milk and milk products in the best packaging material so that the product maintains its original taste and quality for longer period. The promoters are used to travel across India and bring product of that region under the roof of Vijay Dairy and Sweets.

Sri Vijaya Visakha Milk Producers Company Limited., [Visakha Dairy], Visakhapatnam in Andhra Pradesh, is having thier procurement operations in Costal Andhra districts, viz, Srikakulam, Vizianagaram, and Visakhapatnam & in East Godavari and Sales operations across india.

The Government after considering dairying as one of the instruments for bringing socio economic development in the rural areas, To overcome this object, the Dairy was started in the year 1973 with handling capacity of 10000 liters per day in Visakhapatnam under cooperative act with milk procurement operations in 50 villages. Now the Dairy is procuring the milk from 2744 villages in Costal Andhra areas by serving 2,07,925 milk producers.

The Dairy was converted to Mutually Aided Cooperative Act-1995 in the year 1999 as Srivijayavisakha District Milk Producers Mutually Aided Cooperative Union' and the Dairy was converted to Company Act-1956 with effect from 06.01.2006 as SriVijayaVisakha Milk Producers Company Limited. The Procurement and Production graph growth is increasing year after year with more participation of the rural farmers. Now the Visakha Dairy is one of the fastest growing Milk & Milk Products Manufacturing organizations.

The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of the fastest growing Private Sector Enterprises in India, with four-business divisions viz., Dairy, Retail, Agri, and Bakeryunder its flagship Company Heritage Foods (India) Limited (HFIL).The annual turnover of Heritage Foods crossed Rs.1096 crores in 2010-11.

Presently Heritages milk products have market presence in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu,Maharastra and Orissa and its retail stores across Bangalore, Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and these are backbone to retail operations and the state of art Bakery division at Uppal, Hyderabad, and AndhraPradesh. In the year 1994, HFIL went to Public Issue to raise resources, which was oversubscribed 54 times and its shares are listed under B1 Category on BSE (Stock Code: 519552) and NSE (Stock Code: HERITGFOOD)

COMPANY PROFILE

SANGAM DIARY LIMITED

Under the operation flood1 program, Guntur district was selected to develop dairy activities on Amul pattern. Keeping in view the 3 tier system of village dairy co-operation society at village level managed by the elected representatives of producers, a co-operative societies and co- operative federation at state level which is apex body. The Guntur district milk producers co-operative Union Ltd., was registered under Andhra Pradesh co-operative societies act 1964 with Registration No. 836 DD, dated 23-02-1977 with 81 affiliated milk producers co-operative societies.

Presently 840 milk producers co-operatives and following in the area of Guntur District milk producers co-operative Union limited. They are supplying a maximum quality of 2.2 lakhs liters milk per day during flush season. The Board of management of the union companies of 12 elected Board of directors from the village dairy cooperative societies and 5 exoffico board directors comprising of and representative each from Andhra Husbandry. Register of cooperation of the union. The management of the dairy was handed over to the Guntur district milk producers cooperative union by the A.P dairy development co-operation on 30-08-1978.

FARMER CONTRIBUTION

Milk producers of Krishna, Guntur and west Godavari District have generously donated for the purchase of 34.46 acres of land at a cost Rs.1.5 lakh before initiated this project during 1973-74. Further 53 acres of land was purchased for location of technical inputs and staff quarters.

ANAND PATTEREN

The Anand pattern advocates an integrated approach to the dairy development under co-operation sector by providing remunerative price and creating assured market to the farmers produce and also sage guards the interests of milk produce by preceding necessary technical inputs for the rapid progress of dairy industry. In this pattern, the real involvement of produces are seen, where the village dairy cooperative societies as well as District union are managed by producers themselves.

The producers have got a say in determining the price of commodity they produce. This is really a fantastic approach and boon on the farmers.

The new outlook in Anand pattern is to produce incentive (input) to the farmer to reduce the production cost and educating the rural milk producers in cleam milk production, maintain good cattle by improved practices of breeding, feeding and management through farmers induction program is also part and parcel of Anand pattern.

Viability of the village dairy cooperative will also be taken care in this pattern.

SHARE CAPTIAL Authorized share capital of SANGAM DAIRY 10,00,00,000-PAID UP SHARE CAPTIAL2,00,34,100.00 No. of shareholders in Sangam Dairy 591. These are only milk producers co-operative unions.

MANAGEMENT

Board of Directors is all in the matters of the company. The managing Director is authorized by best and makes him responsible for decision-making on immediate as well as long-range policies.

BOARD OF DIRECTORS:

Board of Directors

Founder Sri. Y. Venkatarao Sri. D. Narendra Kumar Chairman, M.L.A.,

Sri. K. Gopinath Managing Director

1Sri Katuri Koteswar Rao AttotaDirector

2Sri Maridu Venkateswara RaoNandiraju ThotaDirector

3Sri Vattikuti Srikrishna PrasadMandruDirector

4Sri Kamchati Lakshmaiah

MulakaluruDirector

5Sri Narra VenkateskrishnaprasadDhulipudiDirector

6Sri Gadipudi Rama RaoThumrukota Director

7Sri Gadipudi Rama RaoPotluruDirector

8Sri Valiveti DharmaraoYamdrayiDirector

9Sri Ramineni RamaraoSalapaduDirector

10Sri Parvathanani BrahmanandamYedugumpallemDirector

11Sri Gogineni Dhanunjaya RaoEsukapalliDirector

12Sri Sakamuri Venkateswara RaoPedarvuruDirector

13Sri Borru RamaraoMulukuduruDirector

BANKERS

Guntur District central Co-operation Bank Limited., Tenali, to provide working capital to Sangam Dairy. SBI (ADB) Canara Bank, Andhra Bank, has provided loans and advances, over draft and other type of credit.

OPERATION FLOOD PROFRAM

OPERATION FLOOD-1:

Dairy plant handling capacity 1.5 lakh liters of milk per day besides facilities to manufacture 12 M.Ts of milk powder, 8 tones of butter, 2 tones of ghee and case in from sour skin milk was established with a cost of Rs 2.88 crores.OPERATION FLOOD-2:

Under of-2, the diary processing capacity had been increased from 1.5 to 2.5 lakh liters per day with an expenditure of Rs 3.5 crores.

ASEPTIC PACKING STATION

Popularly known as Terra pack milk was established at his dairy with a cost of 2.5 crores. With this, Milk can be packed in a special type of laminated paper bags. Which preserve milk for months at room temperature?

OPERATION FLOOD-3:

Rs. 2.5 crores were allotted to this milk shed for expansion improvement in dairy plant, chilling centre and technical inputs activities.

All the above finance is 70% loan and 30%grant. In addition to this shed for expansion/improvements in dairy plant chilling centers and technical inputs activities.

All the above finance is 70% loan and 30%grant. In addition to this, our Government gave an amount of Rs 81 lakh towards the construction of quarters, technical inputs building which is treated as share capital from over Government. The total assets of this dairy as on today are Rs 12.6 crores. PRODUCTS OF SANGAM DAIRY: Essentially the union procures milk from various collection centers located in Guntur and Prakasam districts. The procured milk will be processed in the dairy and then converted into different products apart from fluid milk. The union is meeting the fluid milk requirements in Guntur town and other towns in Guntur district on an average they sell 40,000 liter per day with in Guntur district.

Under the national milk grid, the milk has been supplied to Mother dairy in Calcutta through rail milk tankers since 1980.

The milk products of dairy are as follows

Milk butter.

White butter.

Ghee

Skimmed milk powder.

Doodh peda.

Shakthi milk

Table butter.

Whole milk.

Basundhi.

Khala Khanda.

Milk cake.

TECHNICAL INPUT AND MILK ENHANCEMENT PROGRAM Various technical inputs were offered to milk producers in phased manner for milk production enhancement and they are classified as follows

1. ARTIFICIAL INSEMINATION SERVICES:

We are having sperm production in our dairy. We are maintaining 20 Murr