rubco organizational study

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An organizational study report of Rubco Huat Woods Pvt Ltd.

INTRODUCTION

Kerala state Rubber Co-operative Ltd. (Rubco) has, in a short span, redefined

the way the co-operative sector functions and set the pace for the co-operative

movement in Kerala today. Rubco was set up in the year 1997 with the objective of

effectively utilizing the abundant rubber resources of kerala. Today, from a single unit

company, Rubco has grown into a Rs.280 crore conglomerate with well-diversified

operations and a market presence extending beyond the boundaries of Kerala. Rubco

manufactures and markets a variety of products from footwear to furniture,

from mattresses to virgin coconut oil. Rubco has also entered into technological

alliances with world leaders in the respective fields, sourcing from them the latest in

technology. Substantial investments in modern manufacturing facilities, coupled with

well – organized marketing activities, have seen Rubco’s products earn a reputation for

quality, as also significant market shares. Led by a professional management team and

ably supported by a committed workforce, Rubco is now poised to enter a high growth

phase, with several new initiatives that will take the Group on a path of expansion and

diversification.

Rubco is started for promote the rubber plantation in kerala. Rubber plantation

in India is large. Our country is the one of the largest national rubber producers in the

world, now it occupies the fourth most position in the production of natural rubber.

Thailand, Indonesia and Malaysia occupy the first, second and third position

respectively, accounting for more than 9% of the global output. India has rank 5 th in

terms of acre age, 4th in terms of production and first in terms of productivity in the

world. The rubber plantation sector in the country is dominated by small holdings,

almost 10 lakhs in number, 88% of the area and production come from small holdings.

Rubber plantation provides raw material for the product manufacturing industry.

Rubber cultivation in India has been traditional confined to the hinder lands of

south west cost mainly the kerala state and Kanyakumari district of Tamilnadu. The

nontraditional regions cultivating runner includes costal Karnataka, Goa, and Konkan

region of Maharashtra, costal Andrapradesh, Orissa , the North eastern states and

Andaman niccobar islands.

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The rubber plantation employees about 4 lakh persons and a good number of

them are women. Being tree crops it has tremendous potential in eco-restoration.

Rubber plantations also provide a variety if auxiliary product like honey, seed oil,

rubber wood and scope for rearing honey bees.

Commercial cultivation of rubber in India was started in 1902. The state of

kerala adjoins Kanyakumari district of Tamilnadu and traditional and major rubber

growing area of the country. It is also grows in Tripura, Assam, Meghalaya, Mizoram,

Manipura and Goa over 5.71 lakhs hector of area spread; over 15 states and one of the

union territory of the country is under rubber plantation. The rubber plantation sector

in India is dominated by small holdings almost 10 lakh in number, covering 88% of

total area; about 71 lakh of people derive their employment from the plantation sector

directly or indirectly.

The main purpose of rubber plantation is the production of latex which is the

main raw material for all rubber product manufacturing industries. In India, 72.2% f

the product is processed as ribbed smoked sheet (RSS). Block rubber, concentrated

latex, crepe rubber and

other account for 9.8%, 10.5% and 7.77% respectively. A rubber tree with a useful

economic life span of 23-30 years will yield high production latex.

In this background, the Kerala state rubber co- operative Ltd., otherwise known

as rubco, purpose to launch a comprehensive scheme to interact with the farmer

directly with the processing and other support facilities so that small and marginal

farmers can avoid the cumbersome process of sheet making in their small holding.

Since small holdings are only between 0.5 to 2 Ha, generally, and do not have

infrastructure facilities, it is very difficult for them to make quality sheets. In the

international market the quality of the sheet are very important. For this purpose rubco

also started a marketing plan with the farmers for making the sheets with international

quality.

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OBJECTIVE OF THE STUDY

To study the organization as a system and it’s various functional areas.

To have the practical knowledge of the application of management theories.

To have real life knowledge of an organization through various departments.

To understand the strategies adopt to confront the challenges faced by the company.

To have a clear picture about the company.

LIMITATIONS OF THE STUDY

Personal bias and prejudice of the respondents could have affected the result of the

study

This study is academic effort so is limited by time cost and coverage

This study is subjected to the common limitation of secondary data.

SOURCES OF DATA COLLECTION

PRIMARY DATA COLLECTION

It refers to the data that was collected first hand directly from the sources.

By interviewing managers.

Discussion with workers.

Interviewing staffs.

SECONDARY DATA COLLECTION

The data previously collected by others for some other purpose. It includes,

Company booklets.

Organizational websites

Annual reports and journals.

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INDUSTRY PROFILE

RUBBER WOOD INDUSTRY

RUBBER PLANTATION SECTOR IN INDIA

The rubber industry is one of the key sectors of the Indian economy. Commercial cultivation

of rubber in India started in 1902.India is one of the largest rubber producers in the world

and occupies the 4th position in the production of natural rubber. Thailand, Indonesia and

Malaysia occupy the 1st, 2nd and 3rd positions respectively, accounting for more than 9% of

the global output. India ranks 5th in terms of acreage, 4th in terms of production and 1st I

terms of productivity. The rubber plantation sector in our country is dominated by small

holdings(less than 0.5 hectares) almost 10 lakh in number, covering 88%of the total area; and

about 71 lakh of people derive their employment from rubber plantation sector either directly

or indirectly.

Rubber cultivation in India has been traditionally confined to hinder lands of south west

coast; mainly the state of Kerala and Kanyakumari district of Tamilnadu. The non-traditional

regions cultivating rubber include coastal Karnataka, Goa, Konkan region of Maharashtra,

coastal Andhra Pradesh, Orissa, Tripura, Assam, Meghalaya, Mizoram, Manipur and

Andaman Nicobar islands. Kerala contributes 90% of India’s total production of natural

rubber; Also Kerala and Tamil Nadu together occupy 86% of the growing area of natural

rubber.

IMPORTANT CHARACTERISTICS OF THE INDIAN RUBBER

INDUSTRY

The following are the special characteristics of the rubber industry in the country, which

make India a little different from many of the other natural rubber producing countries;

India is a major producer and consumer of natural rubber

The rubber products manufacturing industry in India had been mostly inward

oriented, catering to the domestic market

In recent year India has entered the global market exporting both raw natural rubber

as well as rubber products

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With its large population base India is emerging as a large market for rubber products

and with the opening up of the economy, import of rubber products has also been

increasing in recent years

The rubber product mix in India is based mostly on the dry forms of rubber dictated

by the requirement of the domestic market

ROLE OF INDUSTRY IN THE ECONOMY

Due to various factors like extensive plantations good availability of raw materials

availability of economical and technically skilled man power and a vast domestic market,

India is all set to make a mark in the global rubber industry. India is ideally poised to

supplement and compliment overseas manufacturers through joint collaborations and

technical exchange to contribute substantially to the world rubber trade.

The main purpose of rubber plantations is the production of latex, which is major raw

material for all the rubber products manufacturing industries. In India, 72.2% of the

production is processed as ribbed smoked sheets (RSS).block rubber, concentrated latex,

crepe rubber and others constitute 9.8%, 10.5%and 7.77% respectively. a rubber tree with a

useful economic life span of 23 to 30 years will yield high amount of latex . Also being a

tree crop it has tremendous potentials for eco restoration. Rubber plantation also provides a

variety of auxiliary products like honey seed oil rubber wood and scope for rearing honey

bees

Established in 1921, the Indian rubber goods manufactured industry has grown to the 4 th

largest producers and consumers of natural rubber. It is also the 4th largest consumer of

natural rubber and synthetic rubber. Put together, India has about 5000 rubber goods

manufacturing units including large and small scale unit’s .the range of rubber wood product

manufactured in India caters to all most every sectors including the common people. it also

helps a social cause through condoms. In tandem with the manufacturing sectors growth, the

industry is posing to deliver high growth rates in the domestic and export sectors.

Development of rubber wood industry in our base particularly in the automobile industry and

the availability of competitive labor the country offers great opportunities for rubber

products manufactures with country will help to generate employment strengthen national

economy make rubber cultivation sustainable and preserve the environment. considering the

large population and the large manufacturing further investments in r&d and

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infrastructure ,the country is poised to become a leader in rubber product manufacture in the

years a head

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COMPANY PROFILE

OWNERSHIP PATTERN

Govt of Kerala (GOK) along with Indian rubber board and some district and

primary co-operative banks in kerala all the promoters of RUBCO; Govt of kerala

holds the majority of the shares. The top ten share holders are GOK, Rubber board,

Kottayam district co-operative bank, Palakkad district co-operative bank, Eranakulam

district co-operative bank, Thrissur district co-operative bank, Thiruvananthapuram

district co-operative bank, Kollam district co-operative bank.

HISTORY AND GROWTH

Kerala state rubber co-operative limited, popularly known as RUBCO is a Rs.

280 crore group with a strong presence in the rubber based industrial segment. Rubco

was incepted with prime objective of effectively utilizing the abundant rubber resoures

of Kerala. In literally means the kerala state rubber co-operative limited will become

the back bone of the rubber cultivator.

In there slogan it’s self they mentioned that

“RUBCO means RUBBER and RUBBER means RUBCO”

In short span rubco has successfully introduced a wide range of fast moving

rubber based product. Today rubco group have interest in rubber foot wear, casual

shoes, cycle tyre and tubes, two and three wheeler tyre, rubberized coir mattress,

processed rubber wood furniture etc.

Rubco was set up in the year 1997, RUBCO has entered in to technical alliance

with world leader in the respective field, sourcing from them state-of art technology.

substantial investment in modern manufacturing facilities, coupled with well organized

marketing activities ,has seen RUBCO’s products earn a reputation for quality and

significant market shares. RUBCO is the largest exporter of natural rubber in the

country today. Even in the domestic market, rubco is the major supplier of natural

rubber to all leading tyre companies in India RUBCO is also Govt intervention agency

towards market stabilization and has been serving the farming community.

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Directly and indirectly to get responsible price, arresting drastic fall in price

during peak production period, rubco policy in natural rubber has been a harmonious

blend of social obligation and commercial practicability led by a professional

management team and ably supported by a committed work force. RUBCO is now

poised enter a high growth phase, with new several initiatives that will take the group

on a path of expansion and diversification. Rubber holds immense potential for wide

variety of commercial use which is yet to be fully tapped into. By realizing this

potential, Rubco hopes to create opportunities and bring industrial progress to a land

that accounts for 92% of country’s natural rubber production. In the process rubco also

aims to achieve its vision of turning in to multi-faced, globally competitive

organization, excelling in its every sphere of activity.

RHW Ltd is located at chonadam near telicherry, kannur district kerala. RHW

was inaugurating in 6 may 2000 and started its commercial production in January

2001.

LEGAL FRAME WORK OF THE ORGANIZATION

RUBCO is governed by the byelaw which provides that RUBCO’s area of

operation will cover the entire state of Kerala, however there is no restriction on the

area of operation as far as the sales and marketing of the products dealt in by RUBCO

is concerned.

As per by law, the main social objects inter alia include to further rubber

cultivation in the state, to accelerate the industrial growth and strengthen the co operate

movement.

RUBCO is governed by the byelaw which provides that RUBCO’s area of operation

will cover the entire state of kerala, however there is no restriction on the area of

operation as far as the sales and marketing of the products dealt in by RUBCO is

concerned.

As per by law, the main social objects inter alia include to further rubber cultivation in

the state, to accelerate the industrial growth and strengthen the co operate movement.

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CAPITAL

Authorized share capital of RUBCO as per the byelaw is Rs. 3000 lacks made up of

2500A class share of Rs1000

each Rs 2500 lakh

5600B class share of Rs 25000

each 1400 lakh

26000C class share of Rs 100000

each 26000 lakh

1000000D class share of Rs 10

each100 lakh

Total 3000 lakh

BOARD OF DIRECTORS

The administration and management of the company rests in the hands of board of

directors consisting of 15 members as followers.

1. nine directors elected by A class share holders among themselves

2. two directors elected by B class share holders

3. three ex-office directors by registrar of co-operative societies, Kerala

The term of office directors shall be five years from the date of assumption of the

office. The co-operative cannot receipt deposit or loans in excess of 50 times the paid a

share capital plus reserve fund of co-operative societies. This limit is not applicable to

funds received from the central and state Govt. or other agencies like NCDC, Rubber

Board etc.

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PRODUCT PROFILE

PRODUCTS

The rub wood furniture range introduced by RUBCO HAUT comprises of

elegantly designed, modern furniture fashioned out of eco friendly rubber wood.

Manufactured in technical and financial collaboration with M/s long haut group

Berhand of Malaysia.

The following are the various ranges of products offered by the RUBCO HAUT

RUBCO TIMBER PANNEL

RUBCO rubber wood pre-finished panel open up unlimited possibilities in

design and processing on par with the highest standards and unequal in elegant.

RUBCO timber panels are produced by the sophisticated process of finger joining and

edge gluing, using resigns of polymers, which are either white or translucent excellent

finish or durability is guaranteed. They also conform to international standards. These

solid timber panels of RUBCO are easy to saw, machine, drill, bore or stain sanded to

240 grit, they offer smooth finish and excellent holding capacity, making it the ideal

user-friendly choice of furniture manufactures and carpenters. This proven concepts

which is very popular among builders and architects in western countries, offer the

perfect solutions to the problems routinely encountered in handling various cross

sections of timber scantlings.

RUBCO timber panels are eco friendly ensure lower wastage of material and

cut down on labor, time and over all cost.

Rubco timber panel come in size from 15mm thickness upward with maximum cross

section size of 5200mm x 5200mm rubco timber panels can be applied for the

following uses.

Doors and window frames

Office furniture and portions

Modular tables and peripherals for computers

Designer wardrobes

Kitchen cabinet

RUBCO HUT WOOD FURNITURES

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The colonial furniture collection from Rubco’s are and ideal way to add

splendor and comfort homes. Than RUBCO’s range of finished furniture comes in

varied shades coated with several layers lacquers. The furniture ranges offered by

RUBCO HAUT WOODS are:

dining table with chair

computer table

TV stands

sofa sets and divan cot

rocker chains

cot

DINING TABLE WITH CHAIR

RUBCO’s range of dining table is available in oval, round, squires with

matching chairs forming an eye catching combination to grace the dining room. It is

available in range of colures like honey, northern rosewood and natural and so on.

COMPUTER TABLE

The computer table offered by rubco hut wood thoughtfully designed to provide

the room for all peripheral accessories and offer unmatched convenience. It is also

available in different colors like honey, northern rosewoods, natural, west antique pine

and pigment red.

TV STAND

The TV stands are simply designed but they do not nearly serve their purpose

by stand out as elegant pieces of home décor as well.

SOFA SET, DIVAN COTS, ROCKER CHAIN

The sofa set, divan cots, rocker chain are exquisite design and range of finish

helps to create beautiful living space. It is also available in range of colours such as

honey, northern rosewoods, natural, west antique, pine, and pigment red.

COT

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RUBCO HAUT manufactures both single and double cot and elegant

wardrobes that make bedrooms all most beautiful and comfortable. It is also available

in a range of colors honey, northern rosewoods, natural, west antique pine and pigment

red.

MARKETS

Market of the rubco is divided in to two parts they are;

Domestic market and foreign market. Domestic market is spread all over the kearla.

While considering foreign market, company exports products to UK, USA, JAPAN,

and GULF COUNTRIES.

ISO- CERTIFICATION

ISO 2000ISO 2001

RUBCO gives more important for the quality f products which can ensure

customer satisfaction

The quality policy of rubco is to give enhanced satisfaction to customers

through manufacture and supply of rubber wood products at high quality and as per the

equipments of customer by the use of modern manufacturing facilities.

COMPETITORS

RUBCO is enjoying monopoly in the market. They has no major competitors in

market.

FUTURE EXPANSION

RUBCO is in the process of setting up a project for the manufacture of tyre and tubes

for two/ three wheelers, passengers, cars etc.

The project is located in the proposed industrial growth center being developed

at valiyavelicham, about 35 km from kannur city.

RUBCO invested Rs 96 million in the casual shoes project. Its location is in

Thalassery. The new plant has a capacity of 1.55 million per annum.

Virgin coconut oil project is the next one. The project envisages establishment of

100 cooperate coconut processing unit in kerala, to start with, which will be increased

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to 200 units subsequently for the production of coconut oil directly from green coconut

nuts with uot going through conventional copro or milk route.

The process methodology is commonly known as direct micro expelling

technology.

Capacity of plant is 4000 liters per day and packing capacity is 40 kilo liters of virgin

coconut Oil per day.

ANCILLARY PRODUCTS:

beverage from coconut water

activated carbon

Confectionary products.

RUBCO has a thread rubber project also the first product is conventional thread.

The plant will have a capacity of 1200 tons per annum. Second product is precured

thread. The plant will have capacity of 1200 tons per annum

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VISION AND MISSION

VISION

To become a global leader in the production of natural rubber and innovative

production and development.

MISSION

Right information to all customers at all the time.

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ORGANIZATION CHART

Board of directors

Managing directors

General manager

Chief production manager

Purchase Officer

Assistant purchase officer

Account Officer

Management represent

Store Keeper Time Officer Account clerk

Workers

Supervisors Assistant sales and shipping manager

Workers Workers

Selection in charge QC

Selection in charge furniture

Selection in charge saw mill

Supervisors

Maintain manager

Sales & shipping manager

Supervisors

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DEPARTMENTAL STUDY

PRODUCTION DEPARTMENT

INTRODUCTION

RUBCO RUB WOOD division has progressively recorded high productivity

and profitability production department in equipped with efficient and qualified

managers and supervisors.

FUNCTION

The main function come under production department are1 production planning2 furniture production3 product development

PRODUCTION PLANNING

It is done on the basis of specification or orders placed by Rubco SALES

INTERNATIONAL LTD and based on domestic order placed by authorized

distributor. The required quality and quantity is specified through production planning

and production is done according to this planning quality is ensured by quality control

department. production planning involves an organization of an overall manufacturing

Operating system to produce a product. Objective of production planning is to provide

a physical system together with a set of operating guideline of efficient conversion of

raw material human skill and other input to finished product.

The production planning procedure are varies from company to company.

Production planning may begin with product idea and a plan for the design of product

and the entire production system to manufacturing of a modified version of existing

product, using the existing facilities. The major factors determine production planning

procedures are;

volume of the product

nature of production process

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nature of operation

FURNITURE PRODUCTION

Boiler and saw mill

The process begins from logyard. logyard is a place in which logs are

unloading for the furniture production, Rubco furniture are making only by using

rubber woods. If any defects are found any unloaded rubber wood, the logs will be

send back. There are lots of procedures for checking the useful log. The quality

department will check each and every log.

The second step is to saw the log for the manufacturing of furniture. The logs

cut in to particular length and width after that the log will check again for the

usefulness. if any defect found it will not use further for manufacturing purpose.

The pieces of wood have a particular order for arranging and keeping. it will

keep at a certain quantity of level process continue and keeps the woods the prescribed

manner. The next process is store the material in impregnation plant. The materials are

processing inside the impregnation plant in to add extra strong and durability for

woods.

The replaced woods from the impregnation plant in keeping in KLIN DRYING

room for reducing the water content in the processed wood.

The HOT OIL is sprayed to the room from the boiler. It is used to heat the

wood. A particular type of fan is using for maintaining the temperature level in all area

of the room. The woods are keeping twelve days in the room.

E. G. P (edge glued panel)

There are different types of process in E G P. they are

jump saw

top and bottom plainer

multiple rip saw

sorting

finger joining

molding

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composing

end cutting

sanding

finishing

The wood panel boards are creating in this section by using wood pieces. The

furniture manufacturing unit uses only these types of panels. There is no large size

wood piece. Each and every log is cutting in to small pieces. There are lots of

processes involved in this section.

Planning area It is area in which the wood processes are planning in to two sides. This is the

first process in this section. Wood pieces are taken for joining purpose after keeping

wood in klin drying room for particular period of time. The wood pieces will to having

plain or smooth surfaces. So for the manufacturing purpose it must plain the surface of

all wood pieces.

Machine name: top and bottom plainer This area is also used for re work of defected material.

Multiple rip saw

This process is also similar to planning but in the process the other two sides are

planning. After this process the wood pieces will have smooth surface in all four sides.

After top and bottom planning and multiple rip saw, a new colour or design is

appearing on the surface of wood pieces. It may be plain surface, line surface or flower

type.

Finger joining

For the manufacturing of the furniture the woods must have a certain level of

length and width. So it is important that the wood pieces must join together. So a

special type of process for the joining the wood pieces is involved, it is called finger

joining. Two machines are using together for this purpose. One is male part and other

is female part. First machine cuts the edge of the wood in the teeth shape but the

second one cut and attaches the glue to the edge.

After that the wood pieces are passes horizontally through the machine and

pieces are automatically joins. A particular length is fixing in the machine and it

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automatically cut the joint woods in the same line. The minimum length we can adjust

in the machine is 15×39 and maximum 45×78

Molding

There are two types of machine used for molding purpose. 7 head molder and 5

head molder. This is used for the molding of two sides.

Composing

This is an important in EGP. It is the process of joining the finger joint wood

pieces in a panel format. In this process edge of the wood pieces will not cut.

The finger joined wood pieces are keeping in the composing machine by using the glue in the rip side.

Cutting

The length of the wood pieces may vary in small difference. So we have to cut the end of panels for getting correct shape.

Sanding The wood panels are again sanding by using special type of machine which will have 3 sanding paper inside. It gives a smooth and plain surface.

Finishing

This is the last section of EGP .some defects or whole may appear in between

the production process. One all the process are completed the defected wood panels are

taking for finishing purpose. For removing the holes in the board wood powder mixing

with glue and fill the gap.

Furniture

The colonial furniture collections from Rubco’s are the ideal way to add

splendor and comfort homes. Than Rubco’s range of finished furniture comes in varied

shades coated with several layers lacquers. The furniture ranges offered by Rubco haut

woods are:

dining table with chair

T V stand

sofa set with divan cot

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rocker chain

cot

There are different sections and machines in furniture departments are

narrow and band saw

auto copy shaping machine

wide belt sander

single head double head tenoner

jump saw

back knife lathe

turning sander

single spinning shaper

double spinning shaper

mortiser

router

drilling

spindle sander

edge sander

oscillating drum sander

brush sander

lathe sander

multiple purpose drilling machine

hydraulic multipurpose mortiser

ASSEMBLING It is the section in which the different furniture materials are joining together for

making the furniture. in furniture section the woods are shaping, sanding, turning and

drilling. These wood pieces are assembling in order to make the exact furniture.

Packing work is also doing in assembling department.

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Structure of production department

BOARD OF DIRECTORS

MANAGING DIRECTOR

GENERAL MANAGER

JOIN PRODUCTION MANAGER

SHIFT ENGINEER

PRODUCTION SUPERVISOR

ASSISTANT PRODUCTION SUPERVISOR

WORKER

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MARKETING DEPARTMENT

INTRODUCTION Marketing is the human activity directed at satisfying the need and wants through

an exchange process. In Rubco the entire range of products is marketed by Rubco sales

international limited. The RSIL formulates market strategies for both domestic and

international markets. The marketing department is headed by marketing manager. He

is assisted by junior sales officer in kerala and by area sales manager in outside kerala.

The RSIL follows full cost pricing strategy to the product that is marked by them.

FUNCTIONS OF MARKETING DEPARTMENT

Formulation of effective advertising strategies for winning the market.

Conducting seminar/ exhibition For the purpose of launching new products to the

market and also make the people aware of their existing products

Conducting retailers meet for the purpose of maintaining cordial relationship

between management and distributors.

Conducting consumer survey for the purpose of collecting information from

customers for the further product development and evaluation of existing position

of product in the market.

Formulations of sales strategies in order to achieve the target turn over.

Orientation is given to dealer and distributors to make aware them about the quality

of products.

CHANNELS OF DISTRIBUTION

A channel of distribution is the path through which products move from the place

of production to the place of ultimate consumption. The company distributes its

products through dealers. The company has around 150 dealers throughout India .

Rubco factory Dealers Customers

MARKET SEGMENTATION

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A market consists of large number of buyers and they are widely scattered. They

are different in their wants, purchasing power, buying attitude, buying practices

etc…..therefore it is desirable to group the buyers on the basis of location, income ,

education, age, sex etc….so as to enhance the satisfaction of the customer and profit to

the market.

This grouping of buyers is called market segmentation. Rubco haut wood follows

geographical segmentation .it is divided in it two.

Home segmentation It consist of state of kerala

Outside kerala segment It consists of all states in India other than kerala.

PROMOTIONAL TOOLS

Once the product is manufactured, price fixed and distribution channels are

selected, the next task is informing the prospective customer. The customers of rubco

are informed through the following tools:

Advertising

Dealers meet

Carpenters meets

Discounts, offers, gift packs during festival season.

Sales man gift scheme.

ADVERTISMENT AND PUBLICITY

The major purpose of advertisement and publicity is to promote product effectively

through providing information to customers.

The advertisement methods followed by rubco are:

Sales promotion

Press media

Visual/ electronic media

Hoarding

Exhibition

Laminated boards

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BRANDING OF PRODUCTS

Branding gives a name, sign, symbol, design or combination of so as all to

distinguish the products from other similar product. The products produced in the

company are sold under the brand name “Rubco furniture” and “Rub wood EGP board

and beams Rubco home series”

TRANSPORTATION

This is the physical movement of goods from one place to another. Transportation

function of rubco is undertaken by sales and shipping division. The company usually

uses the modes like train, road, and ship for the purpose of transportation.

PRICING POLICY

Pricing policy provides the guidelines within which pricing strategy is formulated

and implemented. Rubco follows cost based pricing policy. The price of the product is

computed by adding certain percentage of profit to the cost of the product per unit.

DISCOUNTS

The company provides 2% trade discount on colonial furniture and panel bards. If

the per purchase value exceeds Rs 8 lakh then 10% discount is given.

MARKETING RESEARCH

Marketing research is concerned with obtaining information regarding market.it is

study of market its self. The marketing research is conducted by the company

regarding changes in price, quality, design, and customer satisfaction level and after

sales service etc

PACKING AND DISPATCHING

Rubco haut only chairs are assembled and packed for selling, and items such as

tables and cots etc are just finished and packed. The products are named with company

name, brand name, brand mark and model number.

Dispatching is done according to the order. The goods are covered with p form

sheets and bubbles sheets and put it into card box for protection. The company mainly

exports products to UK, USA, JAPAN and GULF COUNTRIES.

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PRODUCT PACKAGE

Rubco elegance

Rubco welcome

Rubco home nest

Rubco captain

Rubco marshal

Rubco honey comb

Structure of marketing department

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QUALITY CONTROL DEPARTMENT

MD

GM

MARKETINGMANAGER RCM

MARKETINGMANAGER FCT

MARKETING MANAGER FPA

Asst. MARKETINGMANAGER

KERALA

JUNIOR SALES OFFICER

SALES EXICUTIVE

OUT SIDE KERALA

AREA SALES MANAGER

SALES EXICUTIVE

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INTRODUCTION

The Rubco industrial complex has a separate quality control section with

computerized BHED meters, universal tensile, esters and compression set apparatus,

flexor meters and abrasion testers etc.

This section ensures the quality parameters of all incoming raw materials, in

process material and finished goods.

The company has a well established quality control division. The functions of

quality control division. The function of quality control starts from the log yard and

ends in the dispatching section, so it is very long process. Quality control is strictly

adopted in the following process.

Acceptance of logs

Impregnation process

Kiln drying

Gluing

In process line

Finishing

Packing and dispatching

QUALITY PARAMETERS

Minimum girth should be 28 inch and length should be 4 feet

Tapping mark should be very less

Branches and humps should be avoided

Dead knots and nails should be avoided

Irregular shapes and fungal attacked woods should be avoided

QUALITY OBJECTIVES

High capacity utilization

Enhancing competence of employees

High level of profitability

Low level of rejection

High yield from input materials

Low level of break down

Least possible customer complaints

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QUALITY POLICY

Rubco’s quality policy is “to give enhanced satisfaction to their customers through

the manufacture and supply of rubber products by the use of modern manufacturing

facilities. They voluntarily meet the entire product and process related regulatory

requirements. The employees at Rubco are committed to continuously improve their

performance in all sphere of activity”.

INSPECTION

The act of determining the conformance or non conformance of the expected

performance is the function. Here, the manufacturer seeks to determine the

acceptability of the product or part of it. The basis for the inspection is usually a certain

specification, which is called an inspection standard. Comparing the quality of the

product to the standard makes inspection.

In rubco, the inspection standards of every product and process are predetermined

based on these standards. Inspection is carried at all stage of production. Quality

control department conduct three types of inspection for maintain quality of materials

they are

INCOMING INSPECTION

It is conducted when the purchase department purchases the materials to the

production. At the time of production the required quality of to each accepted or it is

rejected.

IN PROCESS INSPECTION The quality checking is done according to the production process the quality

supervisor inspect entire product production. Then the material is passed of it is

satisfied the required quality otherwise it is send file work.

FINAL INSPECTION

After completion of production process the supervisor conducts its last inspection if

the supervisor is satisfied on the quality of material produced, the materials are send to

dispatch or otherwise they are given to re work.

The quality checking procedures in company are;

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Boiling water soak De Lamination test

Cold water soak De Lamination test

Dry salt retention test.

Reagent test

Moisture content test

Concentration check.

Structure of quality control department

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PERSONNEL AND ADMINISTRATION DEPARTMENT

INTRODUCTION

Managing Director

General Manager

Quality supervisor

Skilled worker

Unskilled worker

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Rubco haut wood has a separate personnel department to perform

personnel functions like manpower planning , recruitment, selection, training,

performance appraisal, employee motivation, welfare, record keeping etc. the

personnel and administrative officer in charge of personnel and administrative

department. The personnel and administrative officer is assisted by time officer.

Rubco is forward looking organization committed to identify train develop and

sustain its human resource in such a manner as to integrate the individual career

aspiration of its executive. Rubco has basically a fair, equitable and performance-

oriented policy with respect to its human resources.

FUNCTIONS

Conducting job analysis

Planning labors needs and recruiting job candidates

Selecting job candidates

Conducting orientation and training programs for new employee

Managing wages and salaries

Providing incentives and benefits

Appraising performance

Communication with employees

Training and developing managers

Building employees commitment

RESPONSIBILITIES OF MANAGER

He is responsible for manpower planning recruitment, selection, training,

compensation package, performance appraisal, maintaining discipline.

He is providing advice and guidance to the officers and staffs working in the

unit under the control of GM in the matter connected with the performance appraisal,

discipline, training etc.

He is responsible for obtaining necessary function for certain of posts, pay

scale, and other required sanctions from managing director or chairman for filling up

manpower requirements at time to time.

He is responsible for proper administration of statutory and non statutory

welfare programs in the company. He is responsible for preparation of wages salary

bull and passing it to finance department for disbursement.

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He is responsible for identifying training needs of employees and arranges

various training programs for employees.

MANPOWER DEVELOPMENT IN RUBCO HAUT

The company has well established man power strength. There are 818 workers

employed in different categories of work. The workers of the company are divided in

to four categories they are;

a. Specialized workers

They are carpenters; they concentrate on work like final sanding, assembling etc.

the spray finish also come under this category. The specialist workers have a pay scale

of Rs 350 per day.

b. Skilled workers

They are those who have specialized in a particular job they are basically ITI and

diploma holders. They have pay scale of 320 per day

c. Unskilled workers

They are third category and include those who have undergone 6 months initial

training in the company. They have a pay scale of Rs 250 per day

a. Learners

Learners category includes the newly selected workers, they are actually under

training for the first 6 months, then promoted to unskilled category based on their

performance. They have pay scale of Rs 200 per day.

RECRUITMENT AND SELECTION POLICY

For the recruitment process, Rubco haut wood recruits the employees from both

external and internal sources.

Internal sources of recruitment of Rubco haut wood includes promotion transfer and

some demotions

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External sources of Rubco haut wood mainly done by publishing the recruitments

advertisement in daily news paper to some extent company also prefers employees

recommendations. (If the candidate satisfies required quality)

After the recruitment procedure, the next step is the screening of application based on

the notification. In order to select the best candidate company conducts personal

interview. Based on the qualification, experience, and performance of the candidate,

the rank list is prepared and the best one is selected.

Rules regarding recruitment and selection

Any person below age of 18 is not appointed as the worker or leaner.

All workers are selected only after verifying and clearing the data given in the

application form.

The resigned worker and dismissed workers will not be selected

A person should not perform as a part time or full time employee in the other

organization while he is a worker of the company.

TRAINING POLICY

Every employee has to undergo training. They have a probation period of one year

in which first six months are treated as learners. Supervisors will give on the job

training to them during that period. During probation period employees are closely

watched. Any unruly behavior from their part will cause their further service in the

company. In rubco training is provided to the workers under the ministry of safety

training program. During the training period the trainees are given stipend.

PERFORMANCE APPRISAL

It is the process of evaluating the employee’s performance of a job in terms of

requirements. It is considered as the most in dispensable tool for an organization, for

the information it provide is highly useful in decision regarding various personal

aspects such as promotions and merit increases performance measures also link

information gathering and decision making process which provide a basis for judging

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the effectiveness of personnel sub division such as recruiting, selection, training, and

compensation.

Rubco huat woods are using grading method for performance appraisal. Supervisor

appointed to evaluate the performance of workers. According to their performance,

they are given grade as below;

A grade - excellentB grade - goodC grade - satisfactory

Following factors are taken into consideration for fixing grades:

Attendance

Responsibility

Ability to grasp things

Work performance

Quality of output

TIME OFFICE

The main functions of time office are;

To prepare shift schedule on monthly basis

To prepare and display notice of various safety and other matters

To oversee the conduct of staff and the workers, to ensure the general

discipline etc

To maintain out pass register fir proper recording duly sectioned out pass

od employees

To maintain an accident register

To issue visitors pass as per company rules

Rubco haut woods make use of smart card for recording the time of arrival and

departure of the employees.

THE SHIFT TIMINGS AT RUBCO HAUT WOOD:

First shift - 8.30 am to 5.00 pm

Second shift - 5.00pm to 1.00 am

Third shift - 1.00am to 8.30am

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If there is any additional work, it is treated as over time and workers get double of

the usual rate of pay. The second shift of workers will get night allowance of Rs 10 and

the third shift workers will get an allowance of Rs 15 each.

REMUNERATION In Rubco woods, the workers are paid n time rate system. The remuneration of

workers is paid as per minimum wage Act of 1948 and the managerial person’s

remuneration as per the kerala service rule. Company uses the method of paying

double wage in case of overtime and triple wage in public holidays.

COMPENSATION

Compensation means something done by the company to make up for the loss,

deficiency or a fault. The different components of compensation include the following.

a. Bonus

Bonus means something given or paid by the company in addition to what is usual

or expected. In other words, bonus is the sum of the money or equivalent given to the

employee in addition to the employee’s usual compensation. Bonuses are provided to

the employees in the festival seasons and for occasions happen in the company.

b. E S I (employees state insurance) and provident fund (p f)

Rubco haut wood Pvt Ltd provides employee state insurance and provident fund

to the employees. The employer’s contribution to ESI is 1.75% and employee’s

contribution is 4.75% . The employee’s contribution to the P F is 12% and employer’s

contribution is 13%.

WELFARE ACTIVITIES The following are some well fare activities given to employees;

Labor welfare : Labor well fare funds are given by the

company to increase the standard of living.

Canteen : The company providing quality foods to the employees.

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kudumbasree unit with the company complex runs rubco’s

canteen.

Rest room : The company provides rest room for the shift

workers.

Change room : For the workers to change their dress, a change

room is established in the factory premises.

Safety : Safety measures like ear plug, glows, cooling, glass

and masks are given to the employees who work in

the factory.

LEAVE PROVISIONS

Leave with wages will be allowed to the workers as provided for the

factories Act. The company allows an annual leave of 12 days to these employee’s

having as service of 240 days, in the plant excluding other leaves. As per ESI Act, 10

days sick leave and maximum of 30 days in the case of hospitalization are also there.

HOLIDAY

Festival holiday fixed as per national festival Act. Now 13 days are

allowed for festival holidays. National holidays will be allows to the workmen on

provided for in the kerala industrial establishment Act.

RETIREMENT

On attain the age of 58, the entire employee made to retire from their service.

Various benefits like pension, gratuity are sanctioned on retirement. All the rules

regarding retirement in Rubco are governed by standing order. A standing order is an

act, which guides the service rules of employees and employers.

DICIPLINARY PROCEEDINGS

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1 Transfer Employees are liable to transfer from one department to another department of

from one section to another section without any increase in pay.

2 Demotion

In the case of misbehavior on the part of employee the concerned employee will

placed in the lower position. Demotion begins with the reporting the management

about the misconduct and management will appoint an enquiry committee and the

disciplinary actions for him are depend up on the nature of misconduct.

TRADE UNION

The trade union is a inevitable part of modern industrial setup. Trade union

influences industrial democracy morale and productivity. Rubco haut wood has only

one trade union that is Rubco employees union (REU), which is affiliated to CITU.

Since there is only one trade union there is no inter union rivalry.

ABSENTEEISM AND TURNOVER

One of the problem rubco haut wood facing to today is the increasing rate of labor

turnover. it is the outcome of resignation and dismissal of workers. Some of the reason

for the resignation is getting better job, dissatisfaction with working condition, sickness

etc.

Main consequences of labor turnover are losing expert hands, decrease in productivity,

increased cost of recruitment etc.

Structure of HR department

MD

GM

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FINANCIAL DEPARTMENT

INTRODUCTION

Financial management, also referred to as corporate finance or managerial finance,

emerged as a distinct field of study at the turn of 20 th century. Finance theory; in

general, rest on the premise that the goal of financial management should be to

maximize the wealth of the share holders.

APO

TIME OFFICER

COMPUTER PROGRAMMER

STENO

JUNIOR CLERK

HEAD GUARD

SECURITY GUARD

RECEPTIONIST

DRIVER

ATTENDER

TYPIST

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Finance refers to the application of skill or care in the manipulation in the use and

control of the money .The finance in the modern business world is the life blood of

business economy. We cannot image a business without finance because it is a central

point of all business activities.

FINANCIAL FUNCTIONS

Passing and settlement of all miscellaneous advances.

Perform all works connected with insurance coverage of fixed financial asset.

Keeping personnel files of employees relating salary computation annual

increment.

Prepare profitability, trend, reports, and wages analysis.

Quarterly and yearly financial report preparation.

Making blank statements

Preparation, assisting and coordinating of all works connected with

finalization of accounts.

Assisting statutory/ vigilance/ auditors from head quarters in connect with

audit of accounts of rubco rub wood division.

Make internal and external purchases.

RESPONSIBILITIES OF FINANCIAL MANAGER

Financial planning

Rising of necessary funds.

Controlling the use of funds

Deposition of profit

Accounts finalization

Tax planning

Book keeping and accounting

Internal audit &Profit planning

CAPITAL BUDGETING

Capital budgeting is done at the beginning of the year itself. The requirements of

capital will be specified clearly for the approval. During the budgeted year, if there is any

further requirement of capital is faced then the proper justification has to be made. If the

requirement is seen as important on then approve of the capital is sanctioned the

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requirement of additional capital may arise due to change in price of raw materials,

packing materials, transportation cost etc

CASH MANAGEMENT

Cash management system is one of the key areas in any business, apart

from the fact it is the most liquid current asset can be reduced. Cash is the common

denominator to which all current assets can be reduced because that the other major

liquid asset receivable and inventory get eventually get converted in to cash.

CREDIT CONTROL FUNCTION

A trade credit arises when the company sells its products or services on

credit and does not receive cash immediately. it is an essential marketing tool, acting as

bridge of movements of goods, or services through production and distribution stagers

to customers. A company grants credit to protect its sales from the competitor and to

attract the potential customers also. rubco rub wood furniture division does not give

any credit to customers. The sales are making through advance payment or spot

payment.

PLANNING OF FUNDS

Planning of funds is a careful estimate made by the manager about the total

funds required, which includes both fixed and working capital requirements. This

estimation is done by the observation over the physical activities of the company.

ALLOCATION OF FUNDS

Providing the funds to proper place at proper time is also an important task to be

done by financial manager studies the cash requirements of each department and funds

are distributed.

RECORDING OF TRANSACTIONS

Each and every transactions of the company are recorded first in journal and posted

to ledgers.

WORKING CAPITAL

Working capital refers to the amount required to meet the day to day operations of

the business the working capital of the company is 80 lakh per month complete rise

working capital in the following ways

Cash

Inventories

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Accounts receivable.

FIXED ASSET

It is the major part of working of a company. Depreciation of fixed asset is charged

on the diminishing balanced method.

Vehicle

Plant and machinery

Generator

Building

COST CONTROL

The costs are controlled in raw material and reduction to expense there is

limitation of utilization of funds. The company will all ways have the comparison of

budget actual.

AUDITING

The accounts of the company should be compulsorily audited. The auditing work is

done by m/s Varma & Varma, kannur. There is an internal auditing system which is

done by the internal auditor.

TAX STRUCTURE

Company pays sales tax, income tax and excise duty ( 14%) VAT 12.5% to the

kerala Govt.in accordance to change in state budget.

STRUCTURE OF FINANCE DEPARTMENT

MD

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PURCHASE DEPARTMENT

INTRODUCTION

The purchasing department plays a very important role in organization because

purchasing has effects on every vital factor concerning the manufacture, quality, cost,

efficiency, and prompt delivery of goods to customers. The purchasing department is

responsible for the efficient purchase of all goods of proper quality required for the

GM

A/C OFFICER

JUNIOR CLERK

JUNIOR CLERK

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different department. Purchasing is the most important function of material

management as the moment an order is placed for the purchase of materials; a

substantial part of the company finance is committed which effects the cash flow

position of the company. The head of the department is usually known as purchase

manager.

FUNCTIONS OF PURCHASE DEPARTMENT

To establish purchase policies, procedure and practices.

To identify and choose the best source of supply materials

To receive purchase requisition from all departments.

To place purchases order with supplier and maintain records

To check the quality and quantity of materials received.

To verify and approve the invoice for payment

Functions of purchase department in rubco

The company mainly requires two types of materials- direct material and indirect

material. The direct materials for rubber wood furniture product are the round log

rubber wood and indirect material includes hardware item used for production. The

amount of raw material purchased by rubco is around 30 lakh per month which

comprises item including rubber wood andhard ware item like screws, bolt, nail etc

consumables like machine belt, lubricant oil, engine oil, break oil etc

chemicals like boric acid and borax

finger glue

Lacquer items, thinner, Steiner, sanding belt paper etc.

As a substantial portion of the company’s finance is used for purchasing the

rubber wood, the purchase department should keep in mind the following

specifications at the time of purchasing rubber wood

The logs must have a minimum of 24 inch diameter

It must have minimum of 4 feet to 8 feet length

There must be no tapping mark, bending, nails etc

Logs having excess fiber should be rejected

At present suppliers of rubber wood are from;

Kerala : Perumbavoor, Taliparanba, Kasargod, Iritty

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Karnataka : Sullys, Manglore

PURCHASE PROCEDURE

Rubco is following a purchase procedure which is very systematic and scientific.

The main objective of this purchase procedure is to ensure all material to confirm to

the specific requirements. The following are the various purchase procedure which are

followed by rubcu huat Pvt Ltd.

1 Receipt of purchase requisition

The purchasing function of ruubco huat Pvt Ltd starts from receiving purchase

requisition. A purchase requisition is a form is used as a formal request to the

purchasing department to purchase materials. This form is prepared by the

departmental heads for special materials not stocked as regular items. It contain the

details with ordering number and specification if any, quantity of item and required

date etc.

2 Inviting quotations

The company calls tender for purchase of materials from approves and provisional

vendor. In responds to this tender the company gets the quotation from various

suppliers that they are ready to supply goods by specifying the quality and price.

3 Preparation of comparative statement .

On receipt of quotations from the suppliers, the purchase officer prepares a

comparative statement on analysis of the quality of raw material at low rat.

4 Selections of suppliers

After the preparation of comparative statement, this comparative statement is

forwarded to purchase committee. The purchase committee select the most favorable

supplier by considering the person who is supplying good at least cost with prescribed

quality and with in the prescribed time.

5 Preparation of purchase order

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After getting approval from purchasing committee, purchase department prepares

purchase order. Purchase order is a written authorization to the supplier to supply the

material. The purchase order contain the information such as material description

quality , rate, total cost delivery rate, terms and conditions etc.

6 Preparation of goods receiving notes at the store

Once the order is placed, the suppliers deliver the required materials . on receipt of

item stored in the department will prepare goods receiving notes and forwarded to the

purchase department for further proceedings.

7 Recommendation of invoice for the release of payment to the

suppliers

After proper documentation by the purchase department the invoice and goods

receiving notes are forwarded to the financial department for arranging the payment.

Usually the company makes the payment to the supplier with in one month.

Structure of Purchase Department

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SALES AND SHIPPING DEPARTMENT

INTRODUCTION

Rubco sales international Ltd is the sales and marketing outfit of entire rubco group

of companies. The company is run by eminent professionals with the active support

Managing Director

GM

Purchase Manager

Purchase asst.Manager

StockKeeper

Asst. Store Keeper

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from the management. The company has already well established dealer/ distributor

net work and it is expanding its horizon throughout the world.

Rubco haut Pvt Ltd has one sales and shipping officer. He controls the sales

activities in the company. Shipping an activity taken by central exercise, they check all

products in the company itself to avoid damages incurring in loading. Loading of

goods in the container at shipyard is called shipping. Shipping of product is done from

Cochin shipyard.

FUNCTIONS OF SALES DEPARTMENT

Receiving data from dealers and arranging for the dispatching of products.

Preparation of invoices and other related document for dispatch

Maintaining of sales register and filling of sales tax returns and other statutory

records with the sales tax department

Maintaining and submission of statutory documents pertain to central excise

department

Preparation of quotations as per the requirement from the parties in

consultation with the production department and accounts officer.

FUNCTIONS OF SHIPPING DEPARTMENT

Preparations of pro necessary shipping documents and forward the documents

to clearing and forwarding agents.

Coordination with CHA for placement of containers

Issue of staff and transportation at lowest cost

Post shipment documentation

Preparation of post shipment documentation and forward same to the bankers.

Preparation of bank realization of certificate

To coordinate/ follow up with the bank to ensure that the payment has been

received in time

Maintenance of register of export for each unit.

FUNCTIONS OF EXPORT SECTION

Finalization of export contract.

Coordination between departments and matters connected with export

Issue of packing instructions for export to concerned department

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Make arrangement for inspection of goods.

EXPORT PROCEDURE

Locating the potential buyer by searching through various portal, trade

journals, foreign visit export promotion councils and also by responding

enquiries.

Contract thus by mail, telephone and intimating the company intention.

Negotiating prices terms of payment and delivery terms.

Sending sample brochure and other requests

If price and terms are approved, awaiting their purchase order/ contracts.

Filling shipments documents through the(custom home agent).

Providing necessary advice to buyer

Follow up the cargo till it reaches the destination.

Effort for the order.

Obtain buyer feedback and product quality.

Structure of sales and shipping department

MANAGING DIRECTOR

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PORTER’S FIVE FORCE ANALYSIS OF RUBCO HUAT WOODS :

Michael Porter found five competitive forces that help to exist in the market by every

single industry. These forces used to analyze position of the firm in the industry and market.

Thus it helps in decision making process also for improve its efficiency and profitability in

future.

GENERAL MANAGER

SALES AND SHIPPING OFFICER

JUNIOR SALES OFFICER KERALA

JUNIOR SALES OFFICER KERALA

JUNIOR SALES

JUNIOR SALES

SALES EXECUTIVE

SALES EXECUTIVE

SALES EXECUTIVE

SALES EXECUTIVE

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1. Threat of New Entrants

The threats of new entrants are very low. In kerala it is very difficult to a new firm to

enter in furniture market. New entrants would be less because of the huge amount of

investment to set up a furniture company.

2. Bargaining Power of Suppliers

Suppliers for these items are closely related with RUBCO

Timber

Polish material’s

Miscellaneous

The purchasing department must be very careful regarding purchasing of everything and to

ensure that all items conform to their quality standards. This purchasing department must

want to take care in the cost of product also.

3. Threat of Substitute

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Furniture made of steel; plastic, fiber etc. are threat to companies like Rubco furniture

which make their furniture out of wood. Such furniture’s are less costly compared to those

made of wood and are also available in a number of designs. They are long lasting and easily

portable from one place to another. So, there is a chance that customers may get attracted

towards such furniture’s. So the threats of substitutes are more

4. Bargaining Power of Customer

The bargaining power of customers in furniture industry is high, but in RUBCO

furniture it is low since they give life time guarantee for their products. But, at times when

the customers who come are related to the managing partners or relatives of other officials in

the company, they will be forced to give some reductions in the product.

5. Existing Competition

At present RUBCO is having no major competitor at its market place and enjoying

almost monopoly like situation, Furniture industry in India has started growing in a vast

manner. Furniture being a necessity its need have risen to a large extent. Now days they have

started developing the industry.

.

7’s McKINSEY MODEL

BACK GROUND OF THE MODEL

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The 7’s model is better known as Mc Kinsey’s 7s. This is because the two

persons who developed this model. It is developed by tom peters and Robert

waterman. They published their 7’s model in their article “structure is not

organization “(1980) and in their books “the art of Japanese management” (1981) and

in search of excellence (1982).

Mckinsey’s 7’s model

The 7’s model is a tool for managerial analysis and action that provides a structure with

which to consider a company as whole. So that the organizations problems may be diagnosed

and a strategy may be developed and implemented.

The 7s of Mckinsey’s model are:

Strategy

Structure

System

Structure

Strategy System

SharedValues

Staff

StyleSkill

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Style

Staff

Skill

Shared values

These are the 7 s elements are distinguished in so called hard S’s and soft S’s. The hard

elements are feasible and easy to identify. They can be found in strategy statements corporate

plans organizational charts and other documentations.

The four soft S’s however, are hardly feasible. They are difficult to describe since

capabilities values and elements of corporate culture are continuously developing and

changing. They are highly determined by the people at work in the organizations. Although

the soft factors are below the surface, they can have a great impact of the hard structure,

strategies and system of the organization.

Practical relevance of hard S

Here strategy, structure and system can consider as “Hardware” of success of an

organization.

Strategy

Actions a company plans in response to or anticipation of changes in the external

environment.

HRM strategy of Rubco Huat Woods Pvt Ltd

To provide social welfare measures to work force

To make the best and efficient

To recruit and select right person for the right job at the right time in the right place.

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Production strategy of Rubco Huat Woods Pvt Ltd

Producing high quality of goods

Quick production of products or goods

Efficient use of raw materials

Minimize the waste in the production process

Financial strategy of Rubco Huat Woods Pvt Ltd

Maintaining the perfect accounting and auditing system

Reducing the block of capital

Maintaining the cash receivables

Marketing strategy of Rubco Huat Woods Pvt Ltd

To create new customers

To motivate the sales team

Making profit through customer satisfaction

Develop a pricing strategy

Structure

Organizational hierarchy - RUBCO rubber wood division.

General Manager

Managing Director

Chairman

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System

The formal and informal procedure that support the strategy and structure.

System of HR in Rubco Huat Woods Pvt. Ltd

The system oh HR undertaken by Rubco is enough competent for leading their

employees towards the ultimate objectives. Below given the diagram briefly explain the

system of HR in Rubco.

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Practical relevance of soft ‘S’

Skill, style, staff and shared values can be seen as the “software” of success of an

organization

Skill

The Rubco’s recruitment is mainly through advertisement in leading newspaper based on the

recruitment of the organization. The MD consulting with administrative personnel officer to

decide the number and type of people needed for the organization.

Study the conformance in the new area

Check the effectiveness of each employee

Implementation of HR system in new area

HR budgeting

Allocation of duties, responsibilities and authority of each personnel

Designing of system in new area

Performance evaluation in the new area

Posting for new area

Training on job

Appraisal employees

Performance verification

Responsibility allocation

Selection process

Resource allocation

Resource Planning

Resource Requirement

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Qualification required for the personnel

Technical staff : ITI/Diploma and 1or 2 years experience

Office staff : Degree, sufficient computer knowledge,

Fluency in English and minimum 2 years

Work experience.

Managerial personnel : Minimum 5 years of work experience,

Qualified from reputed institution and

have a relevant knowledge in the latest

Computer terminologies and MBA

Style

It says about how the decisions are made and the flow of authority in the organization. The

Rubco was using the participative leadership style order to take the decision is taken by the

management by discussing with concerned supervisors or workers. The organization is

taking the day to day decision such as the quality of output usage of materials, purchasing etc

are determined by the production manager to concerned supervisors or workers. So the

decision making is decentralized.

Staff

The term staff refers to the way organization introduce young recruits into the main stream of

their activities. Around 775 workers are working in the company. They are

Specialist / highly skilled workers – 35

Skilled workers – 146

Unskilled workers – 347

Semi skilled workers – 31

Learners – 54

Casuals – 73

Saw workers – 35

Staff (including managerial staff) – 54

Shared values

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These are the guiding principles, fundamental ideas around which a company is

built. It must be simple usually stated at the abstract level, have great measuring inside the

organization even through outside may not understand them. These are the main values on

which the company is built. These values are shared by the members in the organization.

It remains customer focused by providing the quality cost and through

manufacturing excellence, adopts a continuous of all organization activity to meet dynamic

requirement of customers. It empowers all employees across the organization to achieve total

quality. The company aims at customer delight by exceeding expectation blend of quality-

cost-delivery of the company’s products and services that company provides.

SWOT ANALYSIS

The overall evaluation of company’s strength, weakness, opportunities and threats

is called SWOT analysis.

INTERNAL ENVIRONMENT ANALYSIS (STRENGTH/ WEAKNESS)

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Each business needs to evaluate its internal strength and weakness periodically. It

can do so by using a form shown in the marketing memo checklist for performing

strength/ weakness analysis management or outside consultant, review marketing,

financing, administration, manufacturing and organizational competencies and rate

each factor as major strength or minor strength or neutral factor, minor weakness or

major weakness.

EXTERNAL ENVIRONMENT ANALYSIS (OPPORTUNITY AND

THREAT ANALYSIS )

In general, a business unit has to monitor key macro- environment forces

(demographic environment, technological, political legal and social cultural) and the

significant micro environment factors (customers, distributors, dealers, retailers) that

affect its ability to learn the profit.

STRENGTH

Rubco mattress division has lot of product variety and price range.

In the company there exist a cordial relationship between employee and top

level management and among dealers and distributors.

Through effective marketing the rubco products could have acquired with

market acceptance and customer preference with in a short period of being

established.

Rubco has well developed corporate strength; this is one of their major

strength.

Style of leadership that company is leadership through dedication and

coordination. That encourages employees of organization to work towards

their organizational goals.

Strength of the company lies in the quality of products, wide range of products

capable to challenge variable environment conditions, goodwill, and customer

service, tech advice, marketing intelligence, wide network, and interaction

with customers.

Effective material management system.

Ability of top level management to manage strategic change

Good financial management system.

WEAKNESS

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The company is newly established. There for most of the employees are fresher.

There for company has to be conduct lot of training program to make the employees

suitable for the work environment. So large volume of productive time consumed is to

make enable there in experienced worker to familiarize with their work procedure to be

followed.

The weakness appearing most conspicuous to make their product acceptable

By customer in the higher price compared to their competitors.

Rubco going to expand their market overall in south India but transportation

from kerala to other market will be a big burden they are facing in the

marketing. When comparing to their competitors they can easily supply goods

in to market according to market demand because they are having

manufacturing plant in their states.

OPPORTUNITIES

The company has introduced lot of product variety in the market there for

customers having lot of alternatives to make their on decision.

Rubco rubwood division is not yet fully tapped their hundred percentage

utilization of existing machine capacity so opportunities lies there.

In factory to undertake new project regarding project diversification.

Opportunity of identifying the region where introducing more and more

quality products so that product structure can withstand and different regional

environment.

Rubco is not facing high level of competition, so their products having higher

demand in the market, it is because of the quality policy that they are also

adopting in the production process.

Rubco furniture has customer in European countries also.

THREATS

Each and every company facing threats in the market because customers

requirements are changing day by day rubco is also facing the same problem

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A lot of unauthorized companies are came in to existence in the market they

are providing product of low quality at few ever price and attracting small

customers

Lack of raw material is also a major threat faced by the company

FINDINGS

o Kerala state rubber corporation has in short span, redefining cooperative

sector functions and set the place for the cooperative movement in Kerala

today. Rubco was set up in year 1997 with the objective of effectively

utilizing the abundantly available rubber in Kerala.

o Majority of worker having 6- 10 years of experience

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o Workers are satisfied with the motivational level provided by the company.

o More skill based activities are there in the company so educational

qualifications of workers are mostly till sslc and +2.

FOLLOWING SUGGETIONS ARE MADE

Rubco has market in other country, but the company has to strengthen their supply

chain. In order to tap the target market the company has to strengthen their supply

chain all over India

It has lot of franchises in Kerala they must start new outlets in various cities in our

county.

It can increase their productivity by utilizing the availability of the employees and

by adding plant and machines.

The company has to take care about to provide conveyance facility to employees.

The organization must be provide more counseling program to boost up employee

morale.

If the management provide performance and potential appraisal for employees,

that will be better for the organization.

Management should take interest in the career development of its employees

More attractive and informative website should be created.

CONCLUSION

During this period I understood that the rubber wood has very good future and it’s

furniture will have demand in the market. It can compete with other wood based

furniture product many countries are trying to improve their productivity, in India

Rubco board (under Govt of India) plays a major role for helping the farmer for

improving their Rubber plantation. During the past few years the production were

increased and the states like Kerala. It is a success. The Kerala state rubber cooperation

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has 5 division and more than 2000 people are working there. The industrial relation

atmosphere is cordial and the focus is also on training at all levels including workman.

Rubco is in developing stage, and due to heavy expansion plans taken by the

company has declining trend of profit but this position will be recovered in long run

BIBLIOGRAPHY

BOOKS

KOTLER , PHILIP – MARKETING MANAGEMENT

RAO , V S P – HUMAN RESOURCE MANAGEMENT

RAM CHARAN -LEADERS AT ALL LEVELS

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WEB

WWW.ANSWER.COM

WWW RUBCOGROUP.COM

WWW.RUBCO HAUT WOOD.COM

rubco organizational study

Documents

rubber cultivation

rubber tree

rubber wood

rubber plantations

block rubber

rubber plantation employees

rubber plantationin

production of natural