ORGANISATIONAL STUDY OF

“AGRO BIO – TEC REASERCH CENTRE LTD,

KOTTAYAM”

A report submitted in partial fulfilment of the requirements for the award of the

Degree of

MASTER OF BUSINESS ADMINISTRATION

of the Mahatma Gandhi University.

Submitted By:

SURAJ A R

Reg No: 60324

Under the guidance of

Ms. Deepthi Sankar

May 2015

DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

PULLIKANAM

1

DECLARATION

I, Suraj A R, a student of DC School of Management and Technology, Pullikanam,

would like to declare that the document work of the project entitled “Organisational Study at

“AGRO BIO – TEC REASERCH CENTRE LTD” at Kottayam is an original work done

by me for the partial fulfilment degree of Master of Business Administration, Mahatma

Gandhi University, Kottayam.

Place: Pullikkanam Signature:

Date Name:

2

CERTIFICATE

This is to certify that the organization study titled Organisational Study at “AGRO BIO –

TEC REASERCH CENTRE LTD” is a bonafide record of the work done Mr. SURAJ A R

3rd semester MBA Student of DC School of Management and Technology, submitted in

partial fulfillment of the requirements for the award of the Masters Degree in Business

Administration of Mahatma Gandhi University , Kottayam, Kerala.

Faculty Guide Principal

Date

Place: Pullikkanam

Examiner I Examiner II

Signature Signature

Name Name

Date Date

3

4

ACKNOWLEDGEMENT

First of all, I thank the Almighty God for standing by me throughout the project and

for making it possible for me to complete the project within the stipulated time.

I am extremely thankful to the staff of all departments especially Mr. Shibu Antony

(Company Manager), AGRO-BIO TECH REASERCH CENTRE LTD KOTTAYAM,

for the encouragement and valuable guidance for the work.

I acknowledge my deep sense of gratitude to the staff member of AGRO-BIO TECH

REASERCH CENTRE LTD KOTTAYAM for having me the prospect to undertake this

organisational study, in this esteemed organisation.

I wish to express my heartfelt gratitude to Mr. B.K. Menon, the principal of DC

School of Management and Technology, Vagamon for their constant encouragement and

support during the entire project work.

I sincerely thank Ms. Deepthi Sankar, Faculty, Department of Management, DC

School of Management and Technology, Vagamon, for providing proper guidance without

which the project would not have been a complete success.

I would also like to extend my sincere gratitude to my parents and friends for all

their support and encouragement for the successful completion of this project.

SURAJ A R

5

Executive Summary

The organizational study was done in AGRO-BIO TECH REASERCH CENTRE LTD,

KOTTAYAM. The study was done for a period of one month from May, 2015 June, 2015,

which helped to understand the functioning of an organization and its departments.

The objective of the study was to gain a general understanding of AGRO-BIO TECH

REASERCH, the structure and reporting structure of various functional departments and their

activities. The various functional departments include Marketing department, QC department,

Production department, Finance & Administration department and Personnel and

Administration department. Observations and direct interactions with the employees and

employers of the firm helped to gain the learning.

By conducting SWOT analysis, it was found that the strength of the organization is

the strong brand image in Bio Fertilizer. The company was found to have weaknesses as well.

The lack of familiarity of the brand name and the limited promotional efforts were identified.

However, the company has the opportunity to innovate products in the fertilizer sector where

there is strong brand recognition.

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CONTENT

Chapter Particulars Page No.

1 INTRODUCTION 1-7

2 INDUSTRY PROFILE 8-10

3 COMPANY PROFILE 11-13

4 PRODUCT PROFILE 14-27

5 FUNCTIONAL DEPARTMENT OF THE

ORGANISATION28-59

6 ANALYSIS 60-66

7 FINDINGS, SUGGESTIONS, CONCLUSIONS 67-71

BIBLIOGRAPHY 72

7

8

LIST OF CHARTS

SI.NO. TITLE PAGE NO.

1 Organisation chart 37

2 Structure of finance

department40

3 Structure of Quality

Control& Procurement

department

44

4 Structure of Production

department48

5 Structure of Marketing

department53

6 Structure of Personnel &

Administration

department

61

9

List of tables

10

CHAPTER-1

INTRODUCTION

11

INTRODUCTION

An organization is the association of persons for achieving certain common

objectives. It is a social system where in its members tries to achieve their private goals while

achieving organisational goals. It is the foundation upon which corporate management is

build and developed. An organization is a composition of people having different authorities

and responsibilities to utilize exciting resources for achieving the organizational objective.

An organization is a structure, a process and relationship to achieve corporate

objectives under the given environment. It is an essential part of human life. It is not static,

but is dynamic and ever changing as per the needs of the society, its members, corporate

objectives and environmental changes. An organization for business purpose is commonly

known as a corporate body or a corporation or a company or formally established business

unit. It can be formed with certain properties and specific characteristics. It provides

opportunities to exploit the exciting potential of men and materials. It explores the future

possibilities of exploiting human and physical resources which form an association to attain

the group goals.

The authority, responsibilities and the relationship between and amongst the members

of an organization are also a part of organizational function. An organization is just like a

human body. It has some essential features like structure, process, relationship, authority and

responsibility, performance and behaviour of individual and groups. An organisation comes

into existence when there are a number of people in communication and relationship of each

other and willing to contribute common endeavour.

Main characteristics of an organisation:-

The main characteristics of an organisation are as follows:

Coordination

Rules and regulation

Common purpose

Division of labour

Authority structure

People

Communication

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ORGANISATIONAL STUDY

Organisational study is the systematic study and careful application of

knowledge about how people as individual and as groups to act within an

organization. It is the study of the organization as a whole and getting adequate

knowledge with various departments in the organization. It encompasses the study of

an organization from multiple view point, methods and level of analysis. Whenever

people interact in the organization, many factors come into play. Modern

organizational studies attempt to understand and model these factors like all

modernist social science, organizational study seeks to control, predict and explains.

This organizational study is contacted in AGRO BIO-TECH RESEARCH CENTRE

LTD. Poovanthuruthu. The aim of the study is to acquire knowledge regarding the

functional as well as managerial aspect of the company.

1.1 IMPORTANCE OF THE STUDY

There is something that cannot be understood by mere reading of textual matter. There is a

need to see the application of textual knowledge be put into real life practice. The Post

Graduate Management course so far has provided with only theoretical knowledge regarding

the various management fields and its aspects. The industrial familiarization program is a

mandatory requirement for a person who is going to be involved in management activities. It is

the management which makes the organization effective and efficient through planning,

organizing, integration and inter-relating organized resources and activities.

The organizational study about AGRO BIO-TECH RESEARCH CENTRE LTD has

provided with information about various steps involved in production, marketing, finance,

human resources, etc. and has been of invaluable help and assistance for achieving excellent

results in the future endeavour of an executive. This industrial/organization familiarization is

an essential requirement of a management student.

1.2 OBJECTIVES OF THE STUDY

1.) To understand the profile of agro bio-tech ltd.

2.) To identify strengths, weakness, opportunities and threats faced by the company

3.)To get an idea about the organization and its various departments

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4.)To acquire knowledge regarding the functional as well as the managerial aspects of

the company.

5.)To understand the structure, policies and procedure of the company.

6.) To get more awareness regarding the management practice through close interacts

in with the executives.

7.)To understand the key business processes are carried out in the organization.

8.)To gain practical identical and factorial knowledge about the factoring of the

organization.

1.3 METHODOLOGY

Research is an essential and powerful tool in leading man towards progress. It

can be defined as an organised and systematic study of materials and sources in order

to discover new things and established facts and reach new conclusions.

It is the process of gathering information for the purpose of initiating,

modifying or terminating a particular investment or group of investments. The

purpose of applied research is discovering, interpreting and the development of

methods and system for the advancement of human knowledge on a wide variety of

scientific matters of our world and the universe.

Methodology is a description of process or may be expanded to include a

philosophically coherent collection of themes , concepts or ideas as they relates to a

particular discipline or field of inquiry, It is the analyses of the principles of methods,

rules and postulates employed by a discipline. Methodology is the backbone of every

project work. It describes how the researcher selects his sample, sample size, methods

of data collection, various tools used for studying the problem and objectives in view.

Research Methodology is the systematic way to solve a research problem. It is

a highly intellectual human activity used in the investigation of nature and matter and

deals specifically with the manner in which data is collected, analysed and interpreted.

Here we will study various steps which are generally adopted by the researcher in

studying a research problem. It is important that the researcher should have a clear cut

idea about the research methods, techniques and the methodology. The nature and

scope of the researcher greatly affect the choice of the methods that to be adopted for

the collection of research data.

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DATA COLLECTION

Data collection is an integral part of a research design. It is a basic factor which gives

the information of the problem or subject under study. It is a term used to describe a process

of preparing and collecting data. The purpose is to obtain information to keep on record. To

make decision about important issues to take place early on in an improvement projects and

is often formulized through data collection plan. A formal data collection process is necessary

as it ensure that data gathered is both defined and accurate and the subsequent decision based

on arguments embodied in the findings are valid. In this study both primary and secondary

data have been used.

PRIMARY DATA

Primary data is the data observed or collected directly from the first and experience.

They are actually information which is received by the researcher for the study from the

actual field of the research. It is important for all areas of research because it is the

unvarnished information about the result of an experiment or an observation.

It can be obtained through critical trials, case studies, true experiments and

random wised controlled studies. The popular way to collect primary data consists of

surveys, questionnaire, interviews, observations and scheduled methods. In this study,

mainly primary data is used.

SOURCES OF PRIMARY DATA

Personal interviews with the company professionals and other staff

Observing companies day to day operations

SECONDARY DATA

Secondary data are the information which is attained indirectly. Such data are

generally attained from published materials. Secondary research means to re- process

and re – use the collected information’s as an indication for betterment of the product

or services.

15

In secondary data the information relates to a part period. Hence it lacks

aptness and therefore it has an unsatisfactory value.

It is available effortlessly, rapidly and inexpensively.

SOURCES OF SECONDARY DATA

Companies web site

Periodicals and publications

Journals and documents

Annual reports.

1.4 SCOPE OF THE STUDY

The study is mainly based on the details collected from various departments.

Here the study analyses functioning of every department and its inter-relations, the

study is purely based on the observations and not a problem based study. It tries to

reveal answers to the questions related to various departments.

Hence the scope of the study is limited to:-

History of the company

Theoretical background

Departmental analysis

The position and performance of the company.

1.5 LIMITATIONS OF THE STUDY

Time allowed for completing the organisational study was 30 days. To collect

complete data about the company at this time span was a difficult task.

Confidential nature of documents. The company was not able to reveal some

official reports and documents as it is kept highly confidential.

As this is an observational study, the conclusions may be affected by personal

bias of the researcher.

16

It was difficult to get more details from the officials, as they were busy with

their work.

Lack of enough information from the secondary source of data made the data

collection difficult.

1.6 CHAPTERISATION

The organizational report was mainly divided into seven chapters. It includes

Chapter 1: Introduction

Chapter 2: Industry profile

Chapter 3: Company profile

Chapter 4: Product profile

Chapter 5: Functional department of the organization

Chapter 6: Analyzes of the organizational performance of the company

Chapter 7: Finding, Suggestion and conclusion

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CHAPTER-2

INDUSTRY PROFILE

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2.1 INDUSTRY PROFILE

Fertilizer sector is very crucial for Indian economy because it provides a very

important input to agriculture. Indian fertilizer industry is regulated by government

policies administering price of fertilizer and the production. Cost of energy varies

from 65% to 87% of production cost. Moreover the fertilizer industry, specially the

ammonia, urea plants, is highly energy intensive in their operation. There are wide

variations in the vintage of fertilizer plant in the country.

In terms of feedstock, major feedstock presently being used in the fertilizer

plant are natural gas, naphtha/ and fuel oil /LSHS.

Over the years, the majority of industry has improved its performance

frequently in terms of specific energy consumption and capacity utilization. There are

several state of – the art fertilizer plant operating in India. There are around 27

fertilizer plants in the country engaged in the manufacture of urea.

2.2 SALIENT FEATURES OF INDIAN BIO- FERTILIZER INDUSTRY

A balanced supply of nitrogen, phosphorous and potassium (NPK) is essential

to improve crop productivity in any agricultural system. It is estimated that merely

3.9 × 1015 tonnes of nitrogen are present in the atmosphere in the elementary form.

None of the living organism except a few bacteria is capable of using this nitrogen

directly as a nutrient source. Rhizobium, Azospirilium and Azotobacter are the most

19

important nitrogen fixing bacteria and the preparation containing them are commonly

known as bio- fertilizers.

Chemical fertilizers and bio- fertilizers played a major role in the

accomplishment of India’s green revolution. India is primarily an agricultural based

economy thriving on Indian fertilizers. Indian fertilizers manufacture and fertilizers

suppliers have increased production in step with green revolution. It achieved near

self sufficiently in its Indian fertilizer needs. The Indian fertilizers industry is one of

the allied sectors of agricultural sphere. India has emerged as one of the largest

producer of nitrogenous fertilizers, chemical and bio-fertilizers aided with the

constant endeavour of the fertilizer manufacturers and fertilizer supplier.

According to Indian fertilizer manufacturers & fertilizer suppliers, the

production of fertilizers is one of the most energy – intensive processes in the Indian

industry.

Due to its large share the, production of nitrogenous fertilizers and bio-

fertilizers has the greatest impact on energy use. The major determining factor for

energy efficiency in this industry is capacity utilization.

Feedstock, planned age and global demand for Indian fertilizers have been on

steady. A part from the inorganic fertilizers, the demand for organic fertilizers

produced in India has increased in recent years. The private fertilizer companies in

India are now taking their business to foreign shores, setting a plant in other countries

technology.

2.3 INDIAN BIO PESTICIDE INDUSTRY

The use of pesticides help to reduce the crop losses ,provide economic

benefits to farmers, reduce soil erosion and help in ensuring food safety and security

for the nation. The Indian pesticides industry with 85,000 MT of production during

FY 07 is ranked second in Asia(behind china) and wealth globally. In value terms, the

size of Indian pesticides industry was estimated at Rs 74 bn for 2007 including

exports of Rs 29 bn globally due to consolidation in the industry; the top 5 global

NMC’s control almost 78% of the market. In India, the industry is very fragmented

with about 30-40 large manufacturer about 400 formulators. Per hectare consumption

of pesticide is low in India at 381gm when compared to the world average of

500gms.Low consumption can be attributed to fragmented land holdings, low level of

20

irrigation, dependence on monsoons, low awareness among farmers about the benefits

of usage of pesticides etc. India, being a tropical, the consumption pattern is more

skewed towards insecticides which accounted for 64% of the total pesticide

consumption in FY07.With the advent of the integrated pest management (IPM)

technique, the use of bio pesticide and generally modified (GM) seeds have increased.

Bio fertilizers and bio control agents are an integral part of performing organic

farming in its real sense.

Bio fertilizers and bio control agents are preparations containing micro

organisms in sufficient number to mobilize or fix and supplement plant nutrition or

produce antibiotics without any negative impact on soil as well as plant or animal

health. These are isolated from the soil grown in aseptic condition to a required

population level and applied in the soil to do the specific desired action. Thus

stimulating the plants to respond favourably so as to reap excellent harvest.

21

CHAPTER-3

COMPANY PROFILE

22

3.1 COMPANY PROFILE

To meet the arduous task of food and fibre requirement, agriculture is to be made

efficient, economical and sustainable. It is their greed and desire for higher productivity, that

they incline themselves to the usage of chemical fertilizers and pesticides. This has not only

resulted in causing serious environmental hazard but also destroyed the ecological balance,

thus depleting the microbes irrespective of the fact whether they are beneficial or harmful.

Appreciation from the farmers who use their products and the feedback from the field

through their sales officers have motivated them to do further research in the field of

agriculture and thus increase their product range and are able to avoid chemical fertilizers and

pesticides completely by substituting it with bio fertilizers and bio pesticides.

VISION

“AB-TECH is committed to offer quality services to its customers. The company will

hold itself responsible for total customer satisfaction”.

MISSION

To emerge as a world class, multi products, eco-friendly global company through

technological development, innovation & customer satisfaction and thereby to the welfare of

society.

QUALITY POLICY

AB-TECH is committed to produce the best quality of world standard biological and

organics through strict quality check measures. Each products passes through rigorous and

23

exhaustive quality checks before it is rolled out of their plant premises. It is the first ISO

9001-2000 certified bio input manufacturing unit in Kerala.

GOVERNMENT SUPPORT

Agro bio tech research centre ltd, being an establishment having a positive attitude,

and so having a clear vision for a healthy future generation. Honouring their noble vision, the

government of India has provided them with grants for further research and development.

Department of agricultural and co operation functioning under the department of agricultural

has allotted a grand of Rs.10 Lakhs.

ACHIEVEMENTS

The first bio-fertilizer unit to get ISO 9001-2000 in Kerala

The first private sector organisation in Kerala to sign technology transfer contract

with ICRISAT (International Crop Research Institute), the international agricultural

research wing of the UN.

The first organisation in Kerala to get CIB (Central Insecticide Board) accreditation

The first organisation in Kerala to get grant and accreditation from the central

Government

The first organisation in Kerala to manufacture bio fertilizer (ESTD:1993)

TNAU-ABTEC CERTIFICATE COURSE

Tamilnadu agricultural university started open & distance learning-ODL in

Tamilnadu for students who can’t attend regular classes in the university and farmers who

want to learn more about agriculture. In order to get the facilitate of these courses in Kerala,

TNAU joined with ABTEC and have started 6 month courses here. Each month alternative

Sunday and Monday 3hrs classes are held. Candidate, who successfully completes the course

and exam, are given TNAU certified certificates.

The main objective of these courses is increase the interest of people

agriculture, to make candidate capable for new agricultural and related jobs, to make people

aware of new agricultural trends.

AGRO SHOP

24

ABTECH has got an agro shop at near Baselious college opp., Kottayam where fresh

vegetables and fruits grown using ABTECH bio fertilizers.

CHAPTER- 4

PRODUCT PROFILE

25

4.1 PRODUCT PROFILE

They are producing a host of bio-fertilizers and bio-control agents including organic

manures under the brand name “ABTEC”. The bio inputs are manufactured in their fully air-

conditioned laboratory under the technical guidance and supervision of expert senior

Agricultural Scientists using modern bio-technological methods. All their products are

subjected to strict quality check in all stages of production.

RANGE OF ORGANIC PRODUCTS AVAILABLE ARE:

Bio-fertilizer: Bio-control agents:

Rhizobium Tricho (Trichoderma Sp.)

Azospirillum Pseudo (Pseudomonas fluorescence)

Azotobacter Beauvaria (Beauvaria bassiana)

Phospho bacteria Verticillium (Verticillium lecanii)

Bio-Potash (Frateuria aurentia) Hirsutella (Hirsutella thompsonii)

VAM (V.A Mycorrhizae) Bacillus (Bacillus Subtilis) (BCB 19 - ICRISAT)

  Bacillus thruringiensis (BT)

  Paecilomyces (Paecilomyces lilacinus)

26

27

CHAPTER-5

ORGANIZATION STRUCTURE

5.1 ORGANIZATION CHART

28

Board of directors

Managing Directors

Finance Manager

Production Manager

Quality control manager

Marketing manager

Personnel & administrative manager

System officer

Scientist

Head scientist

Area sales officer

CHAPTER 6

DEPARTMENT ANALYSIS

29

Senior Accountant

CashierOffice Assistant

Assistant Utility maintenance engineer

Electrical foreman

Utility maintenance operator

Operator

Micro

Biologist

Research Assistant

Sales executive

Systems officer

Office Assistants

Every organization is the unified whole of many activities. In other words, any project is

organized by dividing the work to be done for the attainment of the organizational goals and

grouping them on some logical basis like homogeneity to form various functional units for

the purpose of administration. The administrative units so formed are called departments.

The agro bio has also organized its activities into 5 different departments which are:

1.) Finance department

2.) Quality control and procurement department

3.) Production department

4.) Marketing department

5.) Personnel & administration department

6.1 FINANCE DEPARTMENT

30

Finance department is an indispensable part of individual as well as instillations. It is the life

blood of every business concern. Financial information’s are needed to predict compare and

evaluate a firms earning capacity. It is required for economic decision making, investment

and financial decision making. The success of a firm depends on a sound capital structure and

proper use of capital. It is an important function of any business concern.

FUNCTIONS OF FINANCE DEPARTMENT

1. Acquiring sufficient funds.

2. Proper utilization of funds.

3. Increasing profitability

4. Maximising firms value

5. Determining financial needs

6. Analyses of cost volume and profit

7. Managing capital budgeting

8. Profit planning and control.

This department take care of the various financial transactions of ABTEC, thus acting

as the lifeline of the organization. The department is headed by a finance manager.

The finance department is divided into two sections. System officer section and senior

accountant section. System officer section is managed by the senior accountant.

Senior accountant section is divided into two types-office assistant and cashier.

STRUCTURE OF FINANCE DEPARTMENT (fig no. 5.1)

31

Manager (finance)

Senior AccountantSystem officer

The department has one function other than financial accounting that is internal auditing.

INTERNAL AUDIT

This sections work with the team auditors. They are responsible for the internal auditing

procedure of the company.

ACCOUNTING POLICIES

1)Basis of accounting

Financial statement is prepared under the historical cost convention basis.

2.) FIXED ASSETS

Fixed assets are stated at their cost and less accumulated depreciation. Depreciation of fixed

assets is transferred to deferred grant account every year.

MAIN BOOK LISTS

The company accounts are kept and maintained as per the company act 1956 and according

to accounting practices. The company also has been maintaining cost accounting and

budgeting.

The main book lists are:

1. Cash book

2. Bank book

3. Creditors ledger

4. Debtors ledger

5. General ledgers

32

Cashier Office assistant

6.2 QUALITY CONTROL AND PROCUREMENT DEPARTMENT

Quality refers to the sum of attributes or properties that describe a product. These are

generally expressed in terms of specific products characteristics such as length, width, colour

and the like. Quality control is an effective system for integrating quality development,

quality maintenance and quality improvement efforts of various groups in an organization, so

as to enable production of goods and services at the most economic level which allows full

customer satisfaction. The need for quality needs no special emphasis. One benefit of quality

is increased productivity. Better quality means reduced cost for repairs, instruction, scrap and

rework and product warranties. Increased productivity results in better profits and builds

customer loyalty. Quality also results in sustained profits.

33

Their result lab is well equipped with all modern amenities necessary for quality control.

They give topmost priority to quality products. Quality tests are frequently done in their own

laboratory for every batch of the products. Their products are often subjected to stringent

quality test in agricultural universities and ICAR laboratories also. The scientist of Kerala

agricultural universities and officers of agricultural department also make surprise visit to

their laboratory to draw random samples for quality check. Quality tests like c.f.u/g,

stationery techniques, microscopic observation, optical density test etc are done immediately

after fermentation before mixing with suitable carriers. The carriers like lignite and talc are

neutralized with calcium carbonate and sterilized before mixing to get the highest quality

products. After mixing also quality test are made at random.

Functions of Quality control Department

The department by means of companies on line analysis system managed by well qualified

professionals, all quality parameters during production is constantly monitored to ensure that

the final product is produced with desired quality; the products are strictly inspected to meet

international QC norms.

STRUCTURE OF QUALITY CONTROL AND PROCUREMENT DEPARTMENT

The quality control department has quality control manager at the top. Research head scientist

is responsible for all the quality measurement activities of the organization. The scientist has

microbiologists under them

34

Quality control manager

Fig no. 5.2

Quality Initiative

Agro bio- tech research centre ltd, the manufacturer and distributors of bio- fertilizers and bio

pesticides, suitable for sustainable and organic agricultural in the country. They produce

different bio fertilizers with viz. Rhizobium, Azospirillum, Azotobacter,

Phosphobacteria,V.A.Mycorrhiza Bio-potash and bio control agents like Trichoderma sp.,

Pseudomonos, fluorescence, Beauveria bassiana,Verticillium lecanii, Paecilomyces lilacinus,

Metarhizium anisopliae, Nomuraea relay and organic manures like Bio-organic manure,

super organic manure, super meal, meal organic plus etc. Under the trade name ‘ABTEC’.

Research and development

ABTEC has got a well-developed microbiology lab under the research head team. Their R&D

wing is involved in developing many more products, which will soon hit the market.

The source of culture are international crop Research institute (ICRISAT), regional

centre of organic farming, and project directorate of bio control, Indian institute of spices

research (IISR), Kerala agricultural university (KAU) and Tamilnadu agriculture

university(TNAU).

Product procurement

The sources of culture are Kerala agricultural university, Indian institute of spices research,

regional centre of organic farming Bangalore, T.N.A.U Tamilnadu agricultural university,

project directorate of bio-control agents Bangalore, ICRISAT Hyderabad etc. In addition they

have developed their own cultures also.

35

Head scientist Research assistantMicrobiologists

6.3 PRODUCTION DEPARTMENT

Production can be defined as the processes and methods employed in the

transformation of tangible inputs (raw material, semi-finished goods, or sub-assemblies) and

intangible inputs (ideas, information) into goods or services.

The production department is the nucleus of every organization engaged in conversion of raw

materials into finished goods. The production departmental function varies with production

capacity in modern times.

Functions of production department

36

Production manager is the highest authority in this department. The Research scientist

comes under him. Production manager is the overall in charge of all the production activities.

The assistants and operator comes under him. The scientist and the researchers are

responsible for the production of microbial culture. The assistants and operator will be

responsible for the mixing up of the raw materials. The utilities and maintenance engineer has

Electrical foreman (EF) and utilities and maintenance Technician (U/MT) comes under

production manager. Electrical foreman has the responsibilities to ensure that the electrical

requirement of the company is taken care of. The utilities and maintenance technician is

responsible for periodical maintenance of the machines and equipment of the organization.

STRUCTURE OF PRODUCTION DEPARTMENT(fig no. 5.3)

37

Manager (production)

Scientist

38

Operator

Assistants Utilities and maintenance Engineer

Electrical foreman Utilities and maintenance operator

TECHNOLOGY

Reap Rich from Eco- friendly soil…Technology used for the manufacturing the

product is superior and most suited for the climatic and geographical condition. They collect

efficient mother cultures of different bio- fertilizers and bio- pesticides from different

agriculture universities and ICAR institutes who are actively doing research in this field.

They also get cultures from Kerala agricultural university, Tamilnadu Agricultural University

Coimbatore, Indian institute of spices Research Calicut and regional centre of organic

farming, Bangalore. The cultures are then mass multiplied by using specific media in

fomenters. Such cultures are then mixed with suitable carries. This ready to use products are

then packed and marketed. They have all the modern equipment necessary for manufacturing

and for determining the quality of bio- fertilizers and bio- pesticides. They also have a well

experienced team involved in R&D and field experiments.

39

Table no. 5.1 Details of raw materials used, products manufactured during 2008-09,

2009-10, 2010-11 (Sources: Annual reports 2008, 09, 10,11)

Particulars 2008-09 2009-10 2010-11

Bio- fertilizers

40kg N 80 TON 110 TON 240 TON

40 kg P 60 TON 80 TON 120 TON

50kg K 25 TON 40 TON 60 TON

B control Agents

90 kg 150 TON 190 TON 230 TON

Trichoderma

70 KG 150 TON 190 TON 230 TON

75kg Verticilium 20 TON 30 TON 45 TON

Pseudomonas

Bio-pesticides

75 kg Beaveria 20 TON 30 TON 45 TON

Organic Manure

10 kg Bio-organus 300 TON 400 TON 500 TON

10.4 Kg Super Meal 700 TON 1000 TON 1400 TON

15 kg Neem Cake 300 TON 400 TON 500 TON

PRODUCTION LAYOUT

40

Microbial Culturing

Fig no. 5.4

41

Quality Checking

Autoclave

Mixing

Quality checking

Packing

6.4 MARKETING DEPARTMENT

Marketing is the process of finding out customer needs and serving those needs

profitably. According to Philip Kotler “marketing is a social and managerial process by

which individuals and groups obtain what they needs and want, through creating and

exchanging products and values with others”. Modern concept of marketing is customer-

oriented. Modern marketing starts with customers and ends with the customer.

Marketing is a continuous process. It is the movement of product and services from

the product to the user. Marketing function are not limited to the function of buying and

selling but they includes all function necessary to satisfy the customer such as financing,

storage, risk bearing and after sales services etc. marketing process is a vital connecting link

between the producer and the customer.

The task of marketing systems is to adjust the production of goods of services

according to the needs of customers. Broadly speaking, marketing functions comprise two

processes concentration and dispersal. The process of concentration consists of gathering and

putting together into larger quantities of raw material or finished goods from market place to

the ultimate consumer.

The marketing department is a customer orientation backed by integrated marketing aimed at

generating customer satisfaction as the key to satisfying organizational goals.

Structure of Marketing Department

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Marketing Manager

Area Sales Officer

Fig no. 5.5

Functions of marketing manager

The main function of marketing manager is to manage the business in order to produce and

sell according to the tastes and needs of the customer at a reasonable price. He is the

responsible person for looking after the sales of each product. He has to give adequate

information about trends in the market and coordinating the market activities of the

organization. Periodic survey, sales evaluation, implementing new business and marketing

strategies are all the function of the marketing manager in the organization.

Function of sales executives

According to the information from the marketing manager, sales executives have to perform

their job well. The sales executives are appointed in the field of marketing and to perform

their jobs in Kerala market only. Each sector is allotted to sales executives, whose

responsibilities and upgrading sales, and also appointing new distributors, motivating existing

distributors in the field.

Function of area sales officers

This person has to perform his activities outside Kerala. He is appointed to carry out sales in

other states. The responsibilities are appointing new stockiest for each states or each city

discovering new markets etc.

Sales and distribution system

The cost involved and nature of the products often influence the selection of a channel.

ABTEC has direct distribution system within an around the states, for each area ABTEC has

selected distributors and by this distributors the product are sent to the retail outlet from their

consumers have the chance to buy the product.

The regional exporting agencies are engaged in exporting the products (both bulk and bagged

cargo), shipment through Cochin port by the seller.

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Sales Executive

Table no. 5.2 Details of the products sold by the company on 3 consecutive years: 2008-

09, 2009-10 and 2010-11.

Particulars 2008-09 2009-10 2010-11

ABTEC

Azospirillum

150ton 200ton 250ton

ABTEC

Azotobacter

160ton 190ton 240ton

ABTEC Phospho

Bacterium

150ton 200ton 250ton

ABTEC

Bio-potash

300ton 400ton 500ton

ABTEC Tricho 150ton 180ton 230ton

ABTEC Beauvaria 20ton 50ton 90ton

ABTEC

Verticillium

20ton 50ton 90ton

ABTEC Hirtsutella 35ton 45ton 60ton

ABTEC Bacillus 200ton 240ton 285ton

ABTEC

Paecilomyces 25ton 45ton 80ton

ABTEC Peseudo 150ton 175ton 210ton

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Sources: Annual reports 2008, 09,10,11

The Distribution channel used in Kerala

Fig no. 5.6

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Producer

Distributor

Retailer

Consumer

The Distribution Channel used Out-side Kerala

Fig no. 5.7

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Producer

Agent

Wholesaler

Retailer

Consumer

Advertising

Advertising is a form of communication used in helping sell products and services.

Typically it communicates a message including the name of the product or services and how

that product or services could potential benefit the customer. However advertising does

typically attempt to persuade potential customers to purchase or to consume more of a

particular brand of a product or services. Modern advertising developed with rise of mass

production in the late 19th and early 20th centuries.

Advertising strategy of ABTEC is mainly on mass media advertisements. At the time of

launching the products the company employed, newspaper and magazine advertisements.

Further in main cities of Kerala field signs and pointed display were employed.

Price lists of ABTEC product

ABTEC Phosphor bacterium =40rs

ABTEC Bio-potash =40rs

ABTEC Tricho =40rs

ABTEC Beauvaria =40rs

ABTEC Azosprillum =40rs

Verticilium =40rs

ABTEC Pseudo =40rs

Bio organics =40rs

Super meal =40rs

Neem cake =40rs

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6.5 PERSONNEL AND ADMINISTRATION DEPARTMENT

This department deals with the human resources of ABTEC. Human resources is the

most important asset and is of paramount importance for the success of the organization. It is

the source of strength and aid. For an organization, to survive and prosper, it must be able to

identify, select, develop and retain qualified personnel. Hence every company occupies a

place of prime importance.

Function of personnel department

1. Making better industrial relation

2. Developing organizational commitments

3. Copying with changing environment

4. Change in political philosophy

5. Increased pressure on employees.

Personnel department with the help of various department supervisors and heads are

responsible for the execution of policies regarding the recruitment, discharge,

qualification of employee and wages, which have been laid down by board of

directors.

The company consists of 40 permanent staff and there are some 100 or more

who work on daily as per the company’s requirement basis. In ABTEC, personnel

department function is carried on by the administration manager. Every employee

who join the company for the first time has to undergo probation period for one year.

The normal office working hours are from 8.30 am to 5.30 pm.

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Structure of personnel & Administration Department

Fig no. 5.8

The main function of personnel department is to recruit the staffs and workers, train them and

place them to jobs they are best fitted. Whenever a new candidate is appointed a copy of the

appointment letter containing all terms and condition of the employment must be sent to

1. Time office for recording the attendance

2. Payroll department for making enrolment in the payroll

One copy the employment letter is kept by the personnel department for maintaining the

employee’s history card.

Employee's History Card

In ABTEC, the personnel department keeps a full record for every worker employed

in the organization. The record is kept on card known as Employee History Card. This card

includes the following.

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Manager (Personnel & Administrator)

System Officers

Office Assistant

Table no. 5.3

Date of joining

Name

Sex

Department

Designation

Grade

Starting pay

Permanent Address

Phone number

Date of Birth

Educational Qualification

Marital Status

Recruitment

Recruitment is the process of searching for the proper the proper candidates and

stimulating them to apply for jobs in the organization. Each employee who joinsthe company

has to undergo probation period for one year. The employee will be under observation during

this period. If director board is satisfied with the performance he will be made permanent.

The following are the sources of recruitment.

1. Word of Mouth

2. Advertisement in Newspaper

I. Selection

The selection procedure adopted by ABTEC is as follows

1. Scrutiny of Application

The personnel department will first scrutinize all the applications received in order to take

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out the applications which do not fulfil the post. Only those applications will be taken which

are fulfilling the recruitment of the post.

2. Blank Application Form

The blank application form is the best device for getting written information about the

candidate in her own handwriting. The application form contains information like name,

place of birth, date of birth, marital status, qualifications, experience etc.

3. Interview

In ABTEC, group interview is the most common. In this interview a number of candidates

face the interview board together. They are given a topic to discuss when the candidates

responds and give reasons and counter reasons their ability to communicate, presence of

mind, expressions etc are judged by the interviews.

4. Reference

References are conducted on those candidates who are found suitable for tests and interviews.

Reference can be collected from previous employers.

II Training

The training methods adopted by ABTEC are as follows.

1) On Job Training

Under this method the trainee is given training in real working conditions under the

supervision of a qualified trainer.

2) Apprenticeship Training

Young person’s deriving to learn technical job are trained under this method. This training is

usually arranged for periods from two to six months .The trainee is paid nominal wags known

as stipend during the period of training.

3) Induction and Orientation Training

The newly appointed candidate is given an induction and orientation training. Since they are

new and are not familiar with the organization audits rules and regulations, this training is

organized to make them familiar with the various aspects of the organization such as the

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authority responsibility relationship, delegation of authority etc.

Performance Appraisal

Performance Appraisal is a method of evaluating and appraising the performance of a person

in doing a particular job. This helps to bring about the area of the areas of efficiency and

deficiency in a person. In other words it helps to identify the strengths and weakness of a

person. In ABTEC the following Performance Appraisal method is used.

1. Rating Method

Under this method certain grades are set like 'A' grade stands for outstanding. 'B', good, 'D'-

good, 'D'-satisfactory, 'E'- unsatisfactory. Secondary traits are set like job knowledge,

initiative, communication skill, leadership, self-disciplines etc. On the basis of the following

grades are awarded.

2. Free Essay Method

Under this method the head of department will assess the rates and give a brief description

about him to the personnel dept. The head of the department has to file a report about the

employee based on his assessment; the report should reveal the performance of the areas to

be covered is production capacity, leadership qualities, dependability, disciplines etc.

Time Keeping Department

This department is concerned with the recording of time each workers engaged in the

organization for the purpose of attendance and wage calculation.

Method of Time Keeping

Attendance Register Method

Compensation

In ABTEC EMPLOYEES are paid compensations which comprise of monetary benefits,

fringe benefits etc.

a) Monetary Benefits

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Basic salary

Dearness allowances

Employees contribution to provident fund

Employees contribution to ESI scheme

Production bonus

b) Fringe Benefits

Subsidized food

Recreational facilities

Concessional medical facilitates

Welfare Activities in ABTEC

ABTEC provides all the statutory measures as per the Factories Act 1948 and such other

legislature, to the employees

Statutory welfare measures

a.) Security measures

The factory and its surroundings are looked after by Kerala industrial security force.

b.) Lunch room

Lunch room is provided to the employees who bring their own lunch packets.

c.) Drinking water

The company has installed sufficient number of water coolers. They are placed in different

places in usage. The employees get pure and fresh drinking water during the working hours.

d.) Medical benefits

All employees are covered under the employee’s state insurance scheme (ESI) and are

entitled to medical facilities as per the law.

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e.) Provident fund

The employees in this establishment get the benefit of provident fund.

f.) Urinals & latrines

Sufficient number of urinals & latrines are provided to the employees. There are separate

urinals & latrines for male and female employees.

g.) Allowances

Employees who go out of the head quarters for official duty are eligible to get travelling

allowances and other daily allowances.

Overtime allowances

Overtime is the work done beyond the normal work period. In India the factories Act

provides for payment of overtime wages at double the usual rate of wages. Most of the

workers are interested in overtime duty.

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