final report of ksdl (1)
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EXECUTIVE SUMMARY
In the year 1918 the company came into existence under the name Government
Soap Factory. Sri.S.G.Shastry a Science student went to UK for higher studies in Oil
Technology. After returning to India, he conducted several experiments. He evolved with
a soap perfume blend using sandalwood oil as the main base to manufacture the toilet
soap & thus the famous Mysore Sandal Soap that took birth in the year 1918.
The factory started functioning in its new premises from 1st July 1957. From this
year onwards till date the factory has never looked back and it has achieved growth and
development in production, sales and profits.
The initially named Government Soap Factory was renamed as Karnataka Soaps
and Detergents Ltd in 1st October 1980. Its trademark is SHARABHA, The Company
is a leading sandalwood soap manufacturer in the country, and they have demand for their
products in both domestic as well as international market.
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INTRODUCTION:
The Soaps & Detergents Industry is characterized by a number of small scale
manufacturers at one end of the spectrum and large companies (including MNC's) at the
other end. The market for Soaps & Detergents has increased manifold with changing
lifestyles, growing purchasing power, increased awareness about personal hygiene,
responsiveness of the consumer to brands offering superior value and the spread of audio-
visual media.
Fabric Wash Industry in India is characterized by (like any other non-durable product
category in India) low per capita consumption and substantial potential in rural markets
(in terms of category penetration and per capita consumption). Per capita consumption of
fabric wash products in India is just 3.1 Kg, which is very low compared to developed
and some developing countries. Also, this consumption figure has to be viewed against
the fact that India's Active Matter standards are one of the lowest in the world.
The Fabric Wash Industry is divided into Laundry Soaps, Synthetic Detergent Cakes &
Powder. The Toilet Soaps Industry is segmented into economy, popular and premium
segments. The market is witnessing fierce competition from MNCs and requires
substantial efforts for market penetration and brand development, reflected by the fact
that only 5% of total production comes from the small scale sector.
Soap is one of the commodities which have become an indispensable part of the life of
modern world. Since it is non durable consumer goods, there is a large market for it. The
whole soap industry is experiencing changes due to innumerable reasons such as
government relations environment and energy problems increase in cost of raw material
etc.
The changing technology and ever existing desire by the individual and the organization
to produce a better product at a more economical rate has also acted as catalyst for the
dynamic process of change.
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More and more soap manufactures are trying to capture a commanding market share by
introducing and maintaining acceptable products. The soap industry in India faces a cut
throat competition while multinational companies dominate the market. They are also
facing several threats from dynamic and enterprising new entrance especially during
1991-92.
Indian Soap Industry has seen several ups and downs in the last 30 to 40 years in the year
1964, during the China war. India faced severe shortage of fats due to foreign exchange
crisis again in the year 1975 due to severe crunch in India northwest soap, company
established first soap industry in 1887 at merut.
Soap manufacturing has classification as organized and unorganized sector. KSDL carries
under organized sector.
HISTORY OF THE SOAP:
Soap manufacturing was started in North America. Some American
companies with well known names were started 200 years ago. During middle age soap
was made at various places in Italy, France, England & other countries. France became
famous & many small factories were established there.
In India the first soap industry was established by North West
Soap Company in 1897 at Meerat following the swadeshi movement. From 1905 on
wards few more factories were setup.
They are,
Mysore soap factory at Bangalore
Godrej soap at Bombay
Bengal chemicals
Tata oil mills
1930 lever brothers company
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OBJECTIVES OF THE STUDY:
Primary Objective:
To check the practicality of theory what we study and the actual what exactly
happens in the company.
Secondary Objective:
To study how the theoretical knowledge is made use of in a real life situation inKS & DL.
To study the organization.
The level of satisfaction of employees and staff.
To study the role of all the various departments in achieving the organizational
goals and objectives.
To study of present market scenario of soap industry.
PROBLEMS OF SOAP INDUSTRY:
Soap industry faces some problems incase of raw materials. The major
ingredients are soap ash, linear alkyl, benzene & sodium. Tripoli phosphate poses number
of serious problems in terms of availability. The demand supply gap for vegetable oil is
1.5 to 2 lakh tons & is met through imports. In recent times, caustic soda and soap ashes
in the cheaper .Varieties of soaps are quite high.
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MARKET SCENARIO:
India is the ideal market foe cleaning products. The countrys precipitate
consumption of detergent powders and bars stands at 1.6 kg and soap at 543 GM.
Hindustan Liver, which towers over the cleaning business, sells in all over the cleaning
business but the tiniest of Indian settlements.
The 4 lakh metric tones per annum soap market in India in crawling along at 4%.
The hope lies in raising Rupee worth, the potential for which has high because the Indian
soap market is pseudo in nature and it is amazingly. Complex being segmented not only
on the basis of prices benefits. But even a range of emotions with in that is outlining
framework.
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HISTORICAL BACKROUND:
For centuries, India is the land of spices, ivory, precious gems magical
charms and Land of sandal wood. The worlds richest sandal wood resources are from
isolated stretch of land in south India.
Karnataka is the original home of perfumed sandal wood. Its oil is mainly
used for manufacturing of soap. Thus it is regarded as a fragrant Ambassador of India and
the sandal wood is regarded as Liquid Gold. Karnataka state produces a major
percentage of total production of sandal wood oil in the world. It was this sandal wood oil
which became a reason to setup factory in Karnataka.
Karnataka Soaps and Detergents Limited, is a public sector Undertaking
[wholly owned by Government of Karnataka] engaged in Manufacturing of soaps,
Detergents and extraction of sandal oil at Mysore Division. It also manufactures
Agarbathies.
It is only by the inspiration of the Maharaja of Mysore the late
Mr.Jayachamarajendra Wodeyar, who turned the treat into an opportunity by sowing the
budding seeds of KS&DL the new sandal wood oil factory on the outskirt of koti forest
near Bangalore. The project took shape with the engineering skill and expertise of a high
level team comprising Sir. M.Vishweshwariah, Prof. Watson and Dr. Suburao. The start
was indeed a good beginning but the visionary Maharaja had far reaching idea in mind
the next project to gone on stream was a factory to make sandal soap.
G.S. Shastry a distinguished chemist sent to England by Maharaja to master the
finer aspect of soap manufacture. On his return Shastry cast the dye to on imprint that
created history Mysore sandal made at the new government soap factory.
The factory which was started as a very small unit with a capacity of 100 tones of
soaps per annum at K. R. circle. Bangalore in 1918 then it was shifted to a bigger unit at
Rajajnagar industrial sub-urban, Bangalore in July 1957. The total area of factory today
is about 42 acres, which is registered office of the organization with employees.
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The event that bore fruits over seven decades in return planted with seeds of new
enterprises. The foundation grew stronger and KS&DL branched out in new direction.
Today the company has independent units to manufacture sandal wood oils, toilet
soaps, washing powder, detergent and industrial products.
Right from the first log of sandal that rolled into boiler room in 1916. The
company has been single mind in its pursuit of excellence the quality reflected in all
spheres of KS&DL activates.
OBJECTIVE OF KS&DL:
To serve self and natural economy.
To promote and uphold its image as symbol of traditional products
To maintain the brand loyalty of customers.
To promote purity and quality products and enhance their old age
Charm.
To build upon the reputation of Mysore sandal soap bases on pure
Sandal oil.
To supply the products mentioned above at most reasonable and
competitive rate.
MISSION:
To serve the National economy.
To attain self-reliance.
To promote purity & quality products
To maintain the Brand loyalty of its customers.
To build upon the reputation of Mysore sandal soap based on pure sandal
oil.
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VISION STATEMENT:-
Ensuring global presence of Mysore Sandal products while leveraging its
unique strengths to take advantage of the current technology scenario by
intelligent and selective diversification.
Secure all assistance and prime status from Government of India, all
technology alliances.
Further, ensure Karnatakas pre-eminent status as a proponent and
provider of technology services to the world, nation, other states public
and private sectors.
Making all out efforts to achieve reasonable profits.
Most importantly to earn the invaluable foreign exchange, both to the state
and to the country.
SLOGAN OF KS&DL:
Natural Product with Exotic Fragrance.
SAFETY SLOGAN OF THE COMPANY
Know safety, no lossNo safety Know Loss
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TRADEMARK OF KS & DL:-
The SHARABHA
The carving on the cover is the Sharabha, the trademark of KS & DL
.
The sharabha is a mythological creation from the puranas which has a body of a
lion and head of elephant, which embodies the combined virtues of wisdom and strength.
It is adopted as an official emblem of KS& DL to symbolize the philosophy of the
company.
The sharabha thus symbolized a power that removes imperfections and
impurities. The maharaja of Mysore as his official emblem adopted it. And soon took its
pride of place as the symbol of the Government Soap Factory of quality that reflects a
standard of excellence of Karnataka Soaps and Detergent Limited.
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ACHIEVMENTS / AWARDS:
Government of Karnataka, Dept., of Industries and Commerce, StateExport Promotion Advisory Boards EXPORT AWARD 1974-75.
Detergent Plant M/s Chemical Bombay has given 1 st price for the year
1980-81.
Geographical Indication GI-2005.
ISO 9001-2000 in the year 1999.
ISO 14001-2004 in the year 2000.
ICWA national award for excellence in cost management 2007
POLICY OF KS&DL:-
Seek purchase of goods and services from environment responsible
suppliers.
Communicate its environment policy and best practices to all its
employees implications.
Set targets and monitor progress through internal and external audits.
Strive to design and develop products, which have friendly environmental
impact during manufacturing.
Reuse and recycle materials wherever possible and minimize energy
consumption and waste.
MAJOR CUSTOMER OF KS&DL:
Australia, Bahrain, Canada, France, Germany, Italy, Japan, Kenya, Kuwait,
Malaysia, Saudi Arabia, Singapore, Sri Lanka, Taiwan, United Kingdom, United States of
America.
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MAJOR COMPETITORS:
HLL [Hindustan Lever Ltd].
Godrej.
Procter and gamble.
WIPRO.
Nirma soaps private ltd.
Jyothi Laboratories.
MARKET SHARE OF KS&DL:
NO. PARTICULARS PERCENTAGES
1. HLL [Hindustan Lever Ltd.] 70%
2. Tata oil mills 17%
3. KS&DL 4%
4. Godrej soaps 4%
5. Others 5%
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AN ISO 9002 COMPANY:
KS&DL with a tradition of excellence of over eight decades is committed
customer delight, through total quality management and continuous improvement through
the involvement of all employees.
KS&DL has got ISO 9002 certificate.
To improve the quality management system and to facilitate TQM in process of
soap and detergent. To management took decision to obtain ISO 9002 by end of March
1999. Accordingly action play has drowned up to contribution, the committee for the
purpose during October 1998 with a mission statement.
According to the company constitutions of officers go for the formation in all the
area of the companys operation. Particularly production, procurement, quality assurance,
store maintenance. The company gives initial training inclosing conducting employees
awareness program document quality manual and quality system procurement of
presumes approach of ISO 9002.
In this direction company obtained the guidance from goalie Consultancies,
Bangalore and Bureau of Indian standards, Bangalore. Accordingly company standards
registered for ISO 9002 by the end of March to the Bureau of Indian Standards. Obtained
the certificate by the end of March 1999 itself.
This is to project in the national and international market and also to improve
quality of products offered to the consumers with the assurance of quality in the message.
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ISO-14001:
The company is being in the facts of moving goods, company being located in the
heart of the Bangalore city. The top management of the company took the decision to get
the ISO-14001 and become model to other public sector for the techniques used and also
to other government units to spread the message of maintenance.
The clean and green objectives ISO-14001, the constitutes core committee of
officers of 6 months to study the impact of various processes during manufacturingcovering the Bangalore complex for soap detergent in this direction. Company gave
program of the awareness of ISO-14001.
As per the time schedule can be able to register by the end of February to meet
the entire objectives and target by completing all the stages recommended for
certification. On March 2000 ISO-14001 with tandem complied with ISO 9002 will
facilitate to improve the corporate brands in the global market it will help the company to
improve the profits. Year after year long-term basis. The environment management
system adopted in the company through this motive as follows:-
Conservation of energy.
Conservation of surrounding.
Conservation of resources.
Equipped with latest technology and backed by full-fledged control R&D support,
KS&DL is marching confidentially a head in the new Millennium constantly developing
new products KS&DL meets the changing preferences of its customers.
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BRANCHES OF KS&DL:
At present KS&DL have two main divisions at:
Shimoga (Oil production)
Mysore(Agabatties)
Its main marketing branches are:
Bangalore
Hyderabad
Mumbai
Kolkata
New Delhi
Chennai
FUTURE PLAN:
Introduction of cream and cosmetic.
Introduction of dish wash detergent bar.
Introduction of spray perfumes.
Improvement in existing products.
Reduction in distribution expenses.
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Introduction of anti-bacteria, herbal transparent soap, made out of 33
essential oil based perfume, Aloe Vera, Vitamin-E etc as additive and
suitable for all types of skin and all seasons.
TABLE SHOWING THE GROWTH AND EXPANSION OF KS&DL
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Product Profile of KS&DL:
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YEAR
A.D.
STEP BY STEP GROWTH AND EXPANSION OF THE COMPANY
OVER THE YEAR.
1918 Govt. soap factory was started by the Maharaja of Mysore and the Mysore
sandal soap was introduced into market for the first time.
The factory output was increased to 500 tones p.a.
1950 Renovating the old premises by reconstruction a portion of building.
Installing a new boiler, soap and drying chamber.
1954 Received license from Govt. to manufacture 1500 tones of soaps and 75
tones of glycerin per year.
1957 Dr. S.M. Vishweshariah laid foundation for KS&DLs new factory
building.
1968 The production touched 3000 tones.
1974 The detergent plant started producing Mysore detergent powder and bar
soap with the investment of Rs.20 crores.
1980 On 1-10-1980 the Government soap factory a public sector unit was
renamed as Karnataka Soaps and Detergent Ltd.
1981 Production capacity was increased to 6000 tones, fatty acid plant was
started with Rs.45 million investments.
1983 Production capacity increased to 20,000 tones p.a. at a total cost of
Rs. 17.21 cores.
1984 Production of agarbathies was started in Mysore a unit of KS&DL
1985 Production capacity was increased to 26,000 tones.
1992 The company was registered with BIFR in December
1998 The company launches Baby sandal Talc and Mysore Gold soap
1999 KS&DL received ISO 9002 certificate manufacture of baby soap and fresh
mate.
2000 ISO 9002 Certificate pertaining to environmental management system.
2003 In may the BIFR, New Delhi declared the company to be out of the
purview.
2004 The company launched Mysore sandals herbal care soap.
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Mysore Sandal Soap 150gm
Mysore Sandal Premium 75,125,150gm
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Mysore Sandal Gold 150gm six in one pack
Mysore sandal classic 75 gm
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Mysore Sandal Gift pack 125gm
Mysore Sandal Herbal care 75gm
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Mysore Sandal Baby soaps 75gm
Mysore Jasmine 100,150g
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Mysore Carbolic 125gm
Wave Turmeric Soap 125gm
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Mysore Detergent Cake2125,250gm
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PRODUCTION DEPARTMENT:
Production department in KS&DL is comprised of 295 employees, department
aims for organizational excellence. The total production department is containing the
technology of ITALIAN TECHNOLOGY.
Here, all components are fixed according to the processing sequence and
assembled the components and materials which are used for production of soaps.
Raw Materials used for soap production are as follows:
PKFAD (Pam kernel fatty acid)
PFAD (Pam fatty acid)
Caustic soda
Brain Salution [Salt Salution]
Water
Raw materials used for finished Soaps
Soap NoodlesGlycerin
Lanolin
Perfume
Quality assurance is given up to 500 kg per hours with out any problem,
depending up on the target given by the Marketing department, if any problem accused
during the production then it should be checked immediately.
Presently, KS&DL Bangalore produces SANDAL BATH TABLET, ROSE
BATH TABLET, LAVENDAR BATH TABLET, JASMINE BATH TABLET,
SPECIAL BATH TABLET, and CLASSIC BATH TABLET.
Components:
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Kettle House [Soap Boiling Section],
Soap Drying Plant [Automiser],
Pneumatic Transfer System,
Silos,
Amalgamator,
Simplex plodder,
Milling machine,
Duplex plodder machine,
Cutting machine,
Stamping machine,
Wrapping Machine [Packing M/c]
Production process of KS&DL: (FATTY ACID MIXTURE)
In the stage fatty acid mixture is allowed to kettle along with calculated quantity
of sodium Hydroxide, and the kettle is boiled with the steam under the steam pressure of
6.5kg per cm squares. Requisite quantity of Water and Brine(salt water) or also added
from the top and Saponification reaction will take place from 3 to 4 hours this stage is
called FITTING stage And kettle is fitted by adding required quantity of water and salts
this is allowed for 24 hours to 40 hours when a kettle separates (NEAT) soap from
(NIGGER).
The bottom layer (NIGGER) is removed to other kettle and a super nailed
NEAT soap is processed in drying plant, The kettle NEAT soap have a moisture of 30%
and The soap is in liquid, when it is passed through drying plant the NOODLES are
produced having a moisture of 10% to 12% which is stored in SILOS.
After in the amalgamator the mixing of the perfumes, glycerin and lanolin
will be take place, after this it will be send to simplex plodder machine and to the mixture
In this process all the materials will be mixed & It is to be send to duplex plodder
machine in this minimum of -18% to -20% temperature is used.
After this it will be send to cutting machine and to packaging will take
place.
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Functions:
Ensures the 100% quality product.
Based up on customer feedback takes the corrective action.
Ensures the 100% equipment utilization.
Gives the regular feedback to quality assurances department, regarding the
quality of the products.
Gives the feedback to design department.
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ORGANIZATION STRUCTURE OF PRODUCTION DEPARTMENT
MATERIAL DEPARTMENT:
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GENERAL MANAGER
Dy. GENERAL MANAGER
MANAGER
(TOILET SOAPS)
MANAGER
(DETERGENTPLANT
ASST. MANAGER
OFFICER
JUNIOR OFFICER
WORKERS
ASST. MANAGER
OFFICER
JUNIOR OFFICER
WORKERS
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Materials are obtained at right time, right quality at right place from right source
& at right cost which leads smooth flow of production.
Objectives:
Maintaining continuity of flow of materials
Effective control of inventories
Coordination
Growth of the organization
Maintaining ethical organization
It has been divided into 5 sections:
Oil & fats section
Perfumery & aromatically section
Packing materials section
Chemical section
Miscellaneous & Engineering stores section
Role of Material Department:
First of all material department gets the marketing requisition according to
production department. After receiving it tenders are released. Tenders are released by
means of open call, newspaper, and websites. Then quotations are send by the suppliers.
Quotations are selected by comparative analysis on the basis of supplier rate, supplier
background and EMD (Earnest Money Depositor). Final decision is taken by the board of
directors and the order is placed. Then Auditing work is carried out by Purchase
Negotiation Committee (PNC). The members of this committee are:
Chairman GM of Finance department
Conveyer or Member DGM of Materials department
Other members are first representative from marketing department, quality control
department, R&D and Production department.
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MAINTENANCE DEPARTMENT:
Effective maintenance is the goal of the company. The areas of maintenance are:
Mechanical Maintenance.
Electrical Maintenance.
Civil Maintenance.
Proper maintenance results to:
Reduction of overload.
Cost Reduction.
Greater Safety of equipment & workers.
Delivery schedule is maintained.
This department contributes also working progress of the company.
STORAGE DEPARTMENT:
In KSDL there are about 8 stores namely:
Packing Materials.
Engineering & Stationary Goods.
Perfumery Stores.
Oil & Fats Stores.
Detergent finished goods stores.
Fuel & Serviceable stores.
These stores play a great role in maintaining of required stock. It also facilitates
maintenance of suitable store organization structure. It monitors the procedures of the
receipt. Materials are issued on the basis of FIFO.
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INVENTORY CONTROL SYSTEM:
STORES DEPARTMENT:
KS&DL has well- managed stores department for each of the three divisions viz,
soaps, detergent & fatty acid division in the factory, there are separate miscellaneous
stores department for raw material, finished goods and tools.
Objectives;
Assuring the availability of raw material at right quantity.
Maintenance of adequate, but not excessive storage of materials at all time.
Maintenance of economical and uninterrupted flow of production activities
and finally to ensure minimum blockage.
Achieving maximum efficiency in production and sales with least
investment in inventory.
Types of Stores: Perfumery stores
Chemical stores.
Packing material stores.
Oil & Fats Stores.
Finished goods stores.
STORES DEPARTMENT FUNCTIONS IN KS&DL:
Receiving materials from supplier through proper verification of documents.
Raising goods received report for receipt of materials.
After quality approval certificate from quality control department by goods
received note for stores accounting purpose.
Issuing of material through proper identify or stores requisitions and issue note
from different department.
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Arriving of closing stock on monthly basis through stores accounting in store
stock ledger.
Maintenance of perpetual inventory stock control and safety stock of materials.
Periodical verification of stock of materials with necessary schedule or statementby proper keeping of stores.
STORES RECORDS MAINTAINED IN KS&DL:
a. Bin cards
b. Stores cards
c. Stock verification statement
d. Delivery note or gate pass
e. Store purchase control register with purchase order.
f. Goods Received Note(GRN)
g. Goods Received Report(GRR)
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MARKETING DEPARTMENT:
Around 450 people are represented from the company across the country and 12
employees are working within the organization. These representatives are responsible for
feedbacks from customer and also in increasing sales of the organization company
believes that these representatives are doing a great job.
The sales market is broadly divided into 4 segments geographically, i.e., south,
north, western, eastern zones.
South region has the major share comprising of mainly Karnataka, Tamil
Nadu, Kerala and Andhra Pradesh
Western region comes 2nd with Maharastra, Gujarat, Madhya Pradesh
Eastern region comes next with states like, Orissa, Bihar
North region comes last with states like Delhi, Punjab Rajasthan,
Himachal Pradesh, Jammu and Kashmir, and Haryana.
Major competitors are:
Hindustan Unilever (HLL)
Nirma
Wipro
Medimex
Dettol
Jo rose
The soaps are divided in mainly 3 segments namely:
1) Premium segment consisting of soaps priced above 16 rupee
2) Popular segment consists of soaps priced between 10-15 rupee
3) Economy segment consist of soap priced less than 10 rupee
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KSDL is into mainly manufacturing of premium segment and popular segment.
Premium segment soaps include:
1. Mysore sandal classic
2. Mysore sand gold
3. Mysore sandal baby soap
Popular segment soaps include:
Mysore sandal carbolic
Demand for a product is calculated on the basis of previous year demand and
current growth of soap and detergent industry and also the feedback given by salesrepresentatives of the company
Advertising and sales promotion:
Advertising is done by using all kinds of media like television, radio, displays in
bus stands, hoardings, sponsors for certain events presently sponsoring Bangalore fashion
Sales promotions during festive seasons like get one free on purchase of three.
Discount during off season.
The companys main products are soaps & detergents which are sold in different
parts of India, the marketing department which is controlled by seven branches. The role
of these departments is ensuring the effective sales activities under their control.
Branch Depots
1. Bangalore Hubli, Raichur.
2. Chennai Madras, Salem, Madurai, Cochin.
3. Hydrabad Hyderabad, Vijayawade, Ananchapur.
4. Mumbai Bhiwandi, Ahmedabad, Pune.
5. Kolkatta Cuttack, Patna, Gauhati.
6. Delhi Delhi, Jaipur, Jullundur.
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ORG: Operational Research Group report main source of marketing research
private agency which study the competitors consumer demand, market etc that generates
the report.
CHANNELS OF DISTRIBUTION:
KSDL manufactures their products i.e. soaps & detergents. After this sent
to various distribution points through agents. The stockiest sells to various retailers hence
it reaches to the consume
CHANNEL OF DISTRIBUTION:
AL AMEEN INSTITUTE OF MANAGEMENT STUDIES 39
Manufacture (KSDL)
Sub stockiest
Area wise distributors
State wise deports
Branches
Wholesalers
Retailer
Semi Wholesalers
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QAD (QUALITY ASSURANCE DEPARTMENT)
ACCENT OF HIGH QUALITY:
Mysore sandal soap is claimed to be very hygienic and does not have adverse effect to
human skin. It is the Pride product of the factory Behind such consideration KS&DL
has very well established quality control department. Quality checks are carried on right
from raw material stage to the intermediate stage again till the testing of the final
products.Quality assurance department of Karnataka soaps & Detergent limited is
consists of 16 members work in the laboratory, the quality assurance standards are set
according to the ISO 9001 Documentation.
The quality assurance process starts from testing of samples from the procurement of
Raw materials, after testing the samples QAD gives the certification to stores department,
from the stores department the required material will be used by production department
for production.
QAD works like round the clock, Activities are mainly divided according to,
Testing of incoming raw material.
Testing of work-in-progress.
Testing of finished goods.
The quality assurance department examines the quality of the product on hourly basis; the
testing of quality includes testing of MOISTURE CONTAINT, COLOUR,
CONSISTENCY of the soap, ODOUR etc.
After completion of all the procedure, In the last stage the final product will be re-inspect
by the next chemist, One chemist test the finished products test for Moisture, TFM,
Glycerine, Alcoholic insoluble and all other parameters.
The test result should confirms to specifications prescribed, then only quality certification
is made, after getting the certification from the chemist, finished products moves certified
finished goods from where it reaches to customer.
One reference sample will be preserved at laboratory for 1 year. In case any complaint
received. The reference sample will be tested & satisfactory feed back is passed on to the
customers.
OBJECTIVES:
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1) To maintain customer satisfaction at optimum level.
2) To retain perfumery content throughout it uses.
3) To maintain standard weight, size &finishing.
HUMAN RESOURCE DEPARTMENT:
Organization is made up of people & function through people. Without people
organization cannot exist. The resources of man, money, materials & machinery are
collected, co-coordinated & utilized through people. These resources by themselves
cannot fulfill the objectives of an organization. They need to be united into team. It is
through the combined efforts of people that material & monetary resources are effectively
utilized for attainment of common objectives. All the activities of an organization are
initiated & completed by the people who make up the organization. This resource is
called Human Resource.
Department aims at developing employee general enabling capacities as
individuals, so that they are able to discover & exploit their own & organization culture
were superior-subordinate relationship, team work & collaboration among different unitsare strong & contribute to organizational health , dynamism & pride of employees
MAN POWER DETAILS:
GROUP
BANGALORE
SOD
MYSORE
MARKETING
BRANCHES
DUTY PAID
GODOWN
SHIMOGA TOTALExecutives 77 09 37 03 127
Supervisors 49 08 22 - 79
Workers 568 32 48 13 661
Total 695 49 107 16 867
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Performance Appraisal Method Used in KS&DL Rating Scale
Given below are assessment factors evaluate the persons those factors on the
following
Excellent Good Satisfactory Poor
A B C D
Sl
No
Assessment Rating
1 Job knowledge
2 Performance
3 Housekeeping & safety awareness
4 Attendance
5 Conduct & discipline
6 Co-operation
7 Dependability & integrity
8 Health & present ability
9 Leadership
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ORGANISATION STRUCTURE OF
HRD DEPARTMENT
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MANAGING DIRECTOR
DY.GEN.MGR [HRD]
MGR(HRD)
OFFICER
SENIOR ASSTS
JR. OFFICER
ATTENDER
TIME OFFICE
LWO
CANTEEN
JR.OFFICERS
SR.ASSTS
ATTENDER
ASST.MGR
JR.OFFICER
SR.ASSTS
Cooks
Helpers
FIRST AID
VMO
SR.ASST.
HELPER
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0
1
M.D Managing Director
0
2
Asst.Gen.Mgr Assistant General Manager
[HRD]
0
3
Mgr [HRD] Manager [HRD]
0
4
Asst.Mgr [Canteen] Assistant Manager [Canteen]
0
5
LWO Labour Welfare Officer
0
6
VMO Visiting Medical Officer
0
7
Officer [HRD] Officer [HRD]
0
8
Jr.Officer [HRD] Junior Officer [HRD]
0
9
Sr.Assts Senior Assistants
1
0
Attainder Attainder
1
1
Cooks Cooks
1
2
Helpers Helpers
.
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RESEARCH DEVELOPMENT & QUALITY CONTROL:
KSDL its full fledged quality control & R&D single mindedly pursue quality
enhancement. Both departments are headed by highly qualified professionals, committed
to developing products that keep place with customers changing needs & perceptive
Objectives:
New Product Development
Existing Product Development
Cost Reduction (More profitability)
New Products of KSDL are:
Herbal Hand Wash
Wave Talcum Powder
Dish Wash
Body Wash
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MANAGEMENT INFORMATION SYSTEM DEPARTMENT
1. ACCOUTING SYSTEM:
Financial statements are prepared under the historical cost convention on an
accrual basis and comply with the accounting standards refer to sec 211 (3) (c) of the
companies Act 1956.
2. COSTING SYSTEM:
The Company follows Process Costing method.
3. INVENTORY CONTROL SYSTEM:a. ABC analysis for stock control.
b. FIFO method for issuing materials.
c. Computerized accounting system for stores.
4. REMUNERATION SYSTEM:
Time Rate System is followed to employees.
Government fixes remuneration to Executives.
5. PERFORMANCE APPRAISAL SYSTEM:
Confidential report is prepared by heads of various departments for systematic
judgment of the subordinate by authority to assess the standard of work & overall
performance.
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FINANCE DEPARTMENT:
The finance department helps the organization in many ways:
a. It helps in investment decisions.
b. It helps in financing decisions.
c. It helps the organization for the better utilization of funds.
d. It helps the top management.
OBJECTIVES OF FINANCIAL DEPARTMENT:
To protect financial interest of the company.
It helps in achieving the business results.
Maintaining the funds, collection and payments.
Lessening with banks and financial institutions.
Controlling the inflow and outflow of cash.
Financial planning and mobilization of financier.
To see that the company do not suffer for want of finances.
To co-ordinate with other department in order to achieve the
companies objective.
To exercise cost control and cost reduction technique.
To monitor the budget and budgetary control.
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ORGANIZATIONAL STRUCTURE OF FINANCE DEPARTMENT:
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Managing Director
General Manager
AGM (Costing)/
AGM (Bills)
Manager
(PR&PF)
Manager
(LS)
AGM
(Accounts)/AGM (CE&C)
Junior Officer
S R Assistant
J R Assistant
Junior Officer
S R Assistant
J R Assistant
Junior Officer
S R Assistant
J R Assistant
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Particular 2007 (Amount) 2008 (Amount)
Income
Sales
-Excise duty
1455284544
168822536
1195803294
151428824
Net sales 1286462008 1044374470
Other income 1307447313 1063378770
1307447313 1063378770
Increase& decrees in stock (26466726) 47309343
1280980589 1110688113
Expenditure
Material consumed
(including trading term)
541433115 507094583
Other expenditure
Deprecation
613525868
3577430
551982974
3605016
Profit and loss before tax 117935440 43357146
Prevision for taxation
Current tax
Fringe befits tax
Dividend tax
18000000
7098690
4596946
5200000
2301452
-----
Profit and loss after tax 88239809 35855694
Prior period income
(+)(-) expense
Deferred tax assets
Proposed dividend
Tax of entire year
14687533
32146548
(27048785)
13730643
6640866
-----------
-------------
22096763
121755748 20396797
Profit and loss B/F from
previous year 15070293 (5326504)
Profit and loss transfer to
Balance sheet 136826041 15070293
Sources of Funds
Particular 2007-08 2006-07
Share holder funds
(including Govt of
Karnataka of funds
3182.21 3182.21
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SELECTED PROBLEM
AREA (HR)
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TRANING AND
DEVELOPMENT
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Statement of the Problem:
Employee efficiency and productivity is low. Because the Training and
Development Programme is not implemented properly.
Many of the public undertaking companies do face the training and development
problem as they dont adopt new training and development methods with requisites of
present scenario which unable them to bench mark themselves against private modernized
companies. Thus the need for organized training programs arises
STUDY METHODOLOGY:
This is a systematic way to solve the research problem and it is an important
component for the study without which researcher may not be able to obtain the facts and
figures from the employee.
The methodology adopted for the study is as follows:-
Sources of Data:
Data was collected based on two sources:-
Primary Data.
Secondary Data.
Primary Data:
The primary data is collected with the help of questionnaires, which are chosen
because of its simplicity and reliability. Researchers can expect straight answers, which
are directly related to the question. The asked interpretation of data under this can be done
correctly. Because of this questionnaire it is much helpful, in factors such as obtaining
choices and helping respondents to understand the significance and answer to their
reliability. In this method rate and reliability is higher. In addition to this the data was
collected through observation method, personal interviews and question schedule in the
place where questionnaire was not workable.
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Secondary Data:
Secondary data is collected through the documents provided by the all the
departments such as policy decisions, reports regarding suggestions, schemes, etc. Data is
also gathered from the books of various authors, magazines, journals, annual reports,
broachers, company manual, etc.
However in this study most of the information gathered was from the secondary
data that through books, journals, magazines, annual reports, etc. Hence secondary data
makes the main source for the data collected.
Human Resources (HR):
Human resources is a term with which many organizations describe the combination of
traditionally administrative personnel functions with performance, Employee Relations
and resource planning. The field draws upon concepts developed in
Industrial/Organizational Psychology.
Human resources refer to the individuals within the firm, and to the portion of the
firm's organization that deals with hiring, firing, training, and other personnel issues.
The objective of Human Resources is to maximize the return on investment from
the organization's human capital and minimize financial risk. It is the responsibility of
human resource managers to conduct these activities in an effective, legal, fair, and
consistent manner.
Human Resource Management (HRM):
It is a relatively new term, that emerged during the 1930s. Many people used to
refer it before by its traditional titles, such as Personnel Administration or Personnel
Management. But now, the trend is changing. It is now termed as Human Resource
Management (HRM). Human Resource Management is a management function that helps
an organization select, recruit, train and develops.
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DEVELOPMENT DEFINED:
It helps the individual handle future responsibilities, with less emphasis on present job
duties
TRADITIONAL AND MODERN APPROACH OF TRAINING AND
DEVLOPMENT:
Traditional Approach Most of the organizations before never used to believe in
training. They were holding the traditional view that managers are born and not made.
There were also some views that training is a very costly affair and not worth.
Organizations used to believe more in executive pinching. But now the scenario seems to
be changing.
Modern approachof training and development is that Indian Organizations have
realized the importance of corporate training. Training is now considered as more of
retention tool than a cost. The training system in Indian Industry has been changed to
create a smarter workforce and yield the best results
TRAINING AND DEVELOPMENT OBJECTIVES:
The principal objective of training and development division is to make sure the
availability of a skilled and willing workforce to an organization. In addition to that, there
are four other objectives: Individual, Organizational, Functional, and Societal.
Individual Objectives help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organization.
Organizational Objectives assist the organization with its primary objective by
bringing individual effectiveness.
Functional Objectives maintain the departments contribution at a level suitable to the
organizations needs.
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Societal Objectives ensure that an organization is ethically and socially responsible to
the needs and challenges of the society.
Training is a process, which provides new dimensions to the employees of the
organization whereas the development helps to employees to develop their weak areas to
achieve the organizational objectives.
This is the one department in the organization, which helps employees to
recognize their skills and provoke them to lead in future. It provides not only monetary
benefits but also gives non- monetary benefits, which increase the motivation level of the
employees.
The quality of employees and their development through training and education
are major factors in determining long-term profitability of a small business. If you hire
and keep good employees, it is good policy to invest in the development of their skills, so
they can increase their productivity.
Training often is considered for new employees only. This is a mistake because
ongoing training for current employees helps them adjust to rapidly changing job
requirements.
Purpose of Training and Development:
Reasons for emphasizing the growth and development of personnel include:
Creating a pool of readily available and adequate replacements for
personnel who may leave or move up in the organization.
Enhancing the company's ability to adopt and use advances in technology
because of a sufficiently knowledgeable staff.
Building a more efficient, effective and highly motivated team, which
enhances the company's competitive position and improves employee
morale.
Ensuring adequate human resources for expansion into new programs.
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Research has shown specific benefits that a business receives from training and
developing its workers, including:
Increased productivity.
Reduced employee turnover.
Increased efficiency resulting in financial gains.
Decreased need for supervision.
market reputation of an organization
Training is referred to as a method to give the new entrant or an existing employee
the skills, knowledge and attitude needed to perform the job. Training should meet two
basic objectives.
1. Training should make the personnel skilled enough to do the job on hand
efficiently leading to targeted productivity levels.
2. Training should be cost effective.
Employees frequently develop a greater sense of self-worth, dignity and well-
being as they become more valuable to the firm and to society. Generally they will
receive a greater share of the material gains that result from their increased productivity.
These factors give them a sense of satisfaction through the achievement of personal and
company goals.
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A business should have a clearly defined strategy and set of objectives that direct
and drive all the decisions made especially for training decisions. Firms that plan their
training process are more successful than those that do not.
Reasons for not adopting training programes in many organizations:
The five reasons most often identified are as follows:
Time - Small organizations find that time demands do not allow them to train employees.
Getting started - Most small organizations have not practiced training employees. The
training process is unfamiliar.
Broad expertise - Organizations tend to have broad expertise rather than the specialized
skills needed for training and development activities.
Lack of trust and openness - Many organizations prefer to keep information to
themselves. By doing so they keep information from subordinates and others who could
be useful in the training and development process.
Skepticism as to the value of the training - Some small organizations believe the future
cannot be predicted or controlled and their efforts, therefore, are best centered on current
activities i.e., making money today.
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A well-conceived training program can help a firm to succeed. A program
structured with the company's strategy and objectives in mind has a high probability of
improving productivity and other goals that are set in the training mission.
The Training Process:
The steps necessary in the training process are as follows:
1. Organizational Objectives:
First of all want to define the organizational ojectives in the process of training.
2. Assessment of Training needs:
Training Needs are identified on the basis of organizational analysis,job analysis
and manpower anlysis
Training Needs = Job and organizational requirement Employee satisfaction
Group or Organizational Analysis Individual analysis
Organizational goals and objectives
Persoanl/skills inventories
Exit interviews
Quality circles
Customer survey/satisfaction data
Performance appraisal
Work Sampling
Attitude survey
Rating scales
Observation of Behaviour
3. Training Objectives:
The HR manager formulates the following training objectives in keeping with
the companys goals and objectives:
To Prevent Obsolence
To prepare employees for higher level tasks.
To prepare the employee,both new and old to meet the present as well as
the changing requirements of the job and the organization.
To impart new entrants the basic knowledge and skills they need for an
intelligent performance of a definite job.
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4.Selection of Trainees :
Training an employee is expensive, especially when he or she leaves your
firm for a better job. Therefore, it is important to carefully select who will
be trained.
Training programs should be designed to consider the ability of the
employee to learn the material and to use it effectively, and to make the
most efficient use of resources possible.
It is also important that employees be motivated by the training
experience.
Employee failure in the program is not only damaging to the employee but
a waste of money as well.
Selecting the right trainees is important to the success of the program.
5. Select the Training Methods and Goals:
Training Goals:
The goals of the training program should relate directly to the needs
determined by the assessment process .
Setting goals helps to evaluate the training program and also to motivate
employees.
Allowing employees to participate in setting goals increases the
probability of success.
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Training methods:
On-the-job technique: is delivered to employees while they perform their regular jobs.In this way, they do not lose time while they are learning. On-the-job techniques includes:
Job rotation involves moving an employee through a series of jobs so he or
she can get a good feel for the tasks that are associated with different jobs.
Internships and assistantships are usually a combination of classroom and
on-the-job training. They are often used to train prospective managers or
marketing personnel.
Orientations Some companies use verbal presentations while others have
written presentations. Many small businesses convey these topics in one-
on-one orientations
No matter what method is used, it is important that the newcomer
understand his or her new place of employment.
Off-the-job techniques: Under this method of training,the trainee is separated from the
job situation and his attention is focussed upon learning the material related to his future
job performance.It includes:
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Training MethodsTraining Methods
On the job MethodsOn the job Methods Off the job MethodsOff the job Methods
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1. Lectures present training material verbally and are used when the goal is to
present a great deal of material to many people. It is more cost effective to
lecture to a group than to train people individually
2. Role playing and simulation are training techniques that attempt to bring
realistic decision making situations to the trainee. Likely problems and
alternative solutions are presented for discussion.
3. Audiovisual methods such as television, videotapes and films are the most
effective means of providing real world conditions and situations in a short
time.
6.Training Administration:
Having planned the training program properly, you must now administer the
training to the selected employees. It is important to follow through to make sure the
goals are being met. Questions to consider before training begins include:
Location.
Facilities.
Accessibility.
Comfort.
Equipment.
Timing.
7.Evaluation of training:
Employees should be evaluated by comparing their newly acquired skills with the skills
defined by the goals of the training program. Any discrepancies should be noted andadjustments made to the training program to enable it to meet specified goals. Timely
evaluation will prevent the training from straying from its goals.
The process of examining a training program is called training evaluation.
Training evaluation checks whether training has had the desired effect. Training
evaluation ensures that whether candidates are able to implement their learning in their
respective workplaces, or to the regular work routines.
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Process of Training Evaluation:
Before Training:The learner's skills and knowledge are assessed before the training
program. During the start of training, candidates generally perceive it as a waste of
resources because at most of the times candidates are unaware of the objectives and
learning outcomes of the program. Once aware, they are asked to give their opinions
on the methods used and whether those methods confirm to the candidates preferences
and learning style.
During Training: It is the phase at which instruction is started. This phase usually
consist of short tests at regular intervals
After Training: It is the phase when learners skills and knowledge are assessed again
to measure the effectiveness of the training. This phase is designed to determine whether
training has had the desired effect at individual department and organizational levels.
There are various evaluation techniques for this phase.
Techniques of Evaluation:
The various methods of training evaluation are:
Observation
Questionnaire
Interview
Self diaries
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Advantages of Training:
Increased productivity
Heightened Morale
Reduced Supervision
Increased Organizational Stability
Suggestion to the Problem:
The management should design Training and Development programmes
frequently and identifies the skills and knowledge of the employees to increase the
productivity and also to increase efficiency resulting in financial gains.It also helps to
gain as well as maintain the market reputation of an organization. Training and
Development plays a major role in both employee as well as organizational benefits.
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STRENGTHS:
Only soap in India that contains pure sandal and almond oil.
Certified by ISO
Worlds largest production of sandal wood oil.
Brand name from decades in soap market.
It has very good dealership network, which ensures that the products reach
every customer.
Diversified product range helps the company to maintain stability.
WEAKNESSES:
Distribution network weak in north and east.
Lack of Promotional activity.
Neglecting freshness aspect.
High oriented cost due to excessive labour force.
Low turnover resulting in low profit.
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It is a company wholly owned by government, so it has to follow the rules
made by the government.
The company is under utilizing its capacity.
Its production is based on old technology, which leads to more wastes in
the production process.
Consumer awareness of its products is very less except for Mysore Sandal
soap.
Its products are not available easily in district places of states other than
Karnataka.
There is mismatch in production & sales activity.
Recruitment in the company has been stopped since 1988 due to some
circumstances and recruitments are taking place only in some department.
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KS & DL has a wide variety of products but people are unaware of many
products like incense sticks, detergents, baby soaps, etc., as its marketing
is weak. So it should spend both money and man power on advertising.
They should also improve in building up the strong marketing strategy in
order to improve the distribution channels and could be able to increase the
sales other than the Mysore Sandal Soap.
The R&D should work effectively and achieve the break-through in new
products and can make the company to earn more profits.
The management should design Training and Development programme
and Career Development programme and identify the skills or knowledge.
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The overall study of the organization reveals that the company has grown
tremendously since its incorporation from 1918, now it has independent units for
manufacturing sandalwood oils, toilet soaps, detergents, cosmetics, incense sticks and
industrial products. The initially named Government Soap Factory was renamed as
Karnataka Soaps and Detergents Ltd in 1st
October 1980.
Its trademark is Sharabha, the slogan stands as Natural products with
exotic fragrance. The company is a leading sandalwood soap manufacturer in the
country. Even though they have demand for their products in both domestic as well as
international market. They are not able to establish themselves as market leaders due to
various reasons such as extensive work force, non-utilization of installed capacities of
manufacturing, lack of proper distribution network, lack of expenditure in the areas of
advertisements and publicity, competitions of various soaps and detergents and lack of
timely decisions.
The company has an effective human resources department wherein the employees
are given excellent packages, incentives and extensive care is taken by providing facilities
such as canteen, medical facilities, motivation classes and extracurricular activities.
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Website; www.mysoresandal.com
www.msilonline.com
Books and Journals:
MSIL-Company Brochure
Annual reports KS&DL.
MARKETING MANAGEMENT BY PHILIP KOTLER
FINANCIAL MANAGEMENT BY SHASHI GUPTA
HUMAN RESOURCE MANAGEMENT BY ASHWATAPPA
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