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Transcript of PMS
A Report on Organisation Diagnosis
on
Adani Wilmar Ltd.
Submited To
Mehul Mehta
Submited By
Vishal Vadher
Sumeet Parmar
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ACKNOWLEDGEMENT
I would like to express my gratitude to Mr. Mehul Mehta, who
has been guiding force for our project “A report on
Organisation Diagnosis ON Adani Wilmar LTD.
I am also thankful to Mr. Ravi Sheshadri for his support and encouragement in finding out the appropriate material for this project report. Without their thankless support and efforts, making this report would have been impossible for me.
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Table Of Content
Sr. No. Title Page No.
1 Executive Summery 5
2 Company Profile 6
3 SWOT Analysis 7
4 Organisation Diagnosis 9
5 PMS Process 11
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Executive Summery
The purpose of this report is to critically analyse and diagnose
organisation.
Adani Wilmar Limited (AWL) is one of the leading players in
Edible oil industry. Work assigned to us is to Diagnose
Organisation structure and find how AWL operates
In this we studied the Organisational structure of AWL.
Discovered and analysis Strength, weakness, opportunity and
threats of the company. Also we observed the Mission, Vision,
PMS process, marketing strategy and sales of the company.
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Adani WilmarLimited
a) History
A decade ago, a partnership between the Adani Group and the Wilmar Corporation was born – and it was one that was soon to change the face of the edible oil business in the country.
Competing with established home-grown players and aggressive Multinational Corporations, Adani Wilmar Limited had a mammoth task ahead of it. Trying to stake a claim in one of the largest oil markets in the world would prove to be a difficult feat for any new entrant, but, right off the bat, AWL rose to the challenge. The brand “Fortune” came into being in the year 2000, thus marking AWL’s foray into the branded packaged edible oil business. And, within merely 20 months of its launch, Fortune rose to become India’s largest selling edible oil brand, bearing that torch right up to this day.
With the rapidly changing market scenario and economy, AWL continues to grow and transform into a significant player in the industry, evolving with the times. It is now one of India’s leading edible oil companies, and the future for all of its brands looks very bright indeed.
b) Profile
Adani Wilmar Limited (AWL), a Rs. 8500 crore company; is a joint venture between two global corporations:
The Adani Group of India-the leaders in international trading & private infrastructure, and The Wilmar International Limited of Singapore - agri-business group and leading merchandiser and processor of edible oils.
Together, the Adani Group and Wilmar Group have set up India's first port based refinery at Mundra, Gujarat. Today the Mundra refinery is one of India's largest and most sophisticated oil refineries. FORTUNE, King's, RAAG, Bullet, Fryola and JUBILEE are the brands under which AWL sells its range of edible oil, vanaspati and bakery shortening.
The company has production infrastructure across the country with a crushing capacity of over 6000 TPD (Tonnes per Day) and Refining capacity of over 5000 TPD. AWL is one of the very few national players in the Industry to have this massive production infrastructure, with all its plants so strategically located to take advantage of the Import Parity and Domestic crop season.
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SWOT Analysis
The Strength of AWL includes following points:
Backed by the INR 275 billion revenue Adani Group having expertise in diversified business
Joint Venture with Asia’s leading Agri business group, Wilmar International Ltd., revenues exceeding US $16.5 billion, having expertise in Crude & refined Edible Oil
Oil refineries at key Locations of the Country catering Edible Oil Markets across the Country
Successful Brand Fortune, which has maintained its market leadership for last 7 years
With 80 branches, 5000 distributors catering to 1 million outlets, AWL’s products reach to 20 million households across India
AWL introduced branded Soyabean oil to Middle-East and is now exporting its products to more than 19 countries in the Middle-East, South East Asia & East Africa.
Production Infrastructure across the Country with a Crushing Capacity of over 6000 TPD and Refining Capacity of over 5000 TPD
The Challenges for AWL, in comparison to the industry specific standards, are:
High Volume Business with Low Margin Competition with Local Players amounts to 90% of Domestic Market Effective and Optimized Management of Logistics Adherence to Quality Standards Highly Competitive Branded Edible Oil Market Highly Volatile Pricing Structure Highly Dynamic Business Conditions based on the Agricultural Market
The Opportunities for AWL includes:
Growing Consumer Demand for Branded Edible Oil Huge Untapped Local Edible Oil Market Demand for Vegetable Oil exceeds the National Production Highly growing Bakery / confectionary & Food Industry requires Specialized
Fats Import benefits on Crude Palm Oil Export incentives under various Export Promotion Schemes by Government
Agriculture Market has become more stable & growing at a higher rate.
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Vision
To be an entrepreneurially driven enterprise – “Thinking innovatively in all aspects of the business, from technological to commercial. To be intensely competitive in whatever we do, by constantly bettering the benchmarks set by us.”
To be a globally preferred business associate - an entrepreneurial organization having responsible concern for employees, society, the ecology, and stakeholder value. Strive to generate optimum value for all our associates through constant innovation and adoption of universal best practices and improving upon all those touches points that directly impact the business.
To be a responsible concern – We shall harmonize all our actions and reactions, with the global environment and actively work to reduce our environmental load.
Mission
To assimilate knowledge, develop capabilities and manage collective enterprise to profitably tap global commercial advantages for the benefit of stakeholders.
Group Values
From inception three values have driven all the activities of the Adani Group. They are central to our operations worldwide and will continue to be at the core of all our businesses.
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Organisation Diagnosis
Structure of Organisation
Organizational structure formally determines the hierarchy within an organization. Types of organizational structure include: functional structure, divisional structure, and matrix structure.
The functional structure groups’ employees together based upon the functions of specific jobs within the organization where different structure defines their own identity. The organizational structure at AWL was functional.
Technological Improvement
A development in information technology is any improvement to the mechanism used to “store, manipulate, distribute or create information”.
Currently AWL is using SAP 7.0 (Systems, Applications and Products). Before it AWL was using ORACLE.
Benefits of SAP
Functionality: The R/3 System offers you a software solution that covers all commercial processes and transactions commonly occurring in a company or group of companies.Integration: All work processes within a company or group of companies are linked through data and functions using the R/3 System.User Friendliness: The R/3 System has a uniform graphical user interface for all application areas.Real-Time Information: The R/3 System’s ability to “drill down” to whatever level of detail you need is legendary. More than any other product, the R/3 System provides up-to-the-minute, real-time information wherever and whenever you need it.
Production Plan
Production is planned according to capacity utilisation of plant and the efficiency of marketing team. The production depends on demand in the market and so how the marketing team grab the opportunity with cost effectiveness.
Capacity utilisation is the level to which the productive capacity of a plant is being used in generation of goods and services.
Production capacity will increase through investment in larger or additional factories, new machinery, further shops or offices. This will involve recruitment and training of new employees. Although there is considerable expense involved, this may be an
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appropriate strategy if demand is growing steadily and is expected to be sustained. AWL is expanding by acquisition.
In post acquisition process, AWL sends an expert team to analyse the current scenario and future requirement of employees as per the production capacity. They prepare a standard plant structure and present in front of the all functional heads. On bases of this report short listing of employees and how many new employees are required are done. The recruitment process starts from here as the identification of the job has done as whom to give opportunity to take charge of the position at the new place and how many new employees required filling remaining one. The existing employees need the training related to change in the technical complexity. The new employees are selected on probation period on first six month in AWL. The big brand name attracts employees to join at AWL and the good compensation and wage scheme retain them.
Marketing
Adani Wilmar, manufacturer and distributor of edible oils, has launched a new variant called Fortune Plus, under the flagship brand Fortune. Fortune Plus is targeted at young and health-conscious Indians. The brand has roped in ace badminton player, Saina Nehwal to endorse the product. Recently AWL has launched their new advertisement with beautiful background song of S.D. Burman and also the Very vey special part of Indian Cricket team member V.V.S. Laxman.
The main competitors of AWL included the companies in the organized sectors such as ITC (Indian Tobacco Company), NDDB (National Dairy Development Board), Ruchi Soya and Marico. Adani Wilmar competes with Marico, Agro Tech Foods, ITC and Cargill among others in the 2.3 million tonnes per annum packaged edible oil market.
Financial Position
Adani Wilmar Limited (AWL), a Rs. 8500 crore company; is a joint venture between two global corporations:
The Adani Group of India-the leaders in international trading & private infrastructure, and The Wilmar International Limited of Singapore - agri-business group and leading merchandiser and processor of edible oils.
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PMS Process
The first criteria for being eligible for PMS is that Employee must have completed 6 month in the company before PMS filed.
Step-1: Planning of Goals/KRAs
The employee gets the job profile with all responsibility area from the joining date. The job profile will be as per the previous left employee’s profile. The employee is selected on the basis of last salary drawn, attitude, job knowledge, education qualification and work experience.
The PMS of higher authorities are done at Adani Group Ltd.
Step -2: Execution of Goals/KRAs
Here the employee will write his own work performance and also give the rating to it. There are saperate PMS forms for different level and grade people.
A. Middle Management Level [Manager(E1) to Associate General Manager(AGM)]B. Junior Management Level [Officer(O1) to Associate Manager(O5)]C. Supervisory Management Level [Associate Officer(S5) and below)
The Supervisory form includes the key attributes:
i) Job Knowledgeii) Result Orientationiii) Initiativeiv) Service & Customary orientationv) Communication Skillvi) Interpersonal Skillvii) Safety & house keepingviii) Disciplineix) Quality of Work
The rating follows:
a. Far Exceeds Expectations (FEE)b. Exceeds Expectations (EE)c. Meet Expectations (ME)d. Partially Meet Expectations (PME)e. Did not meet Expectations (DME)
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Step-3. Annually Performance assessment and Development review
Head of the department (HOD) will initially assess the Performance form through a small direct discussion with an employee. He gives his own recommendation about the task performance, the strength and weaknesses, the training need, and the improvement areas. He also gives the feedback on the increment on pay scale and position.
Employee must have to perform FEE or EE for last two year to get promotion. The common promotion is given on 3 year completion on job.
The increment in pay scale is not standard but it depends upon two parameters. It depends on the HOD’s assessment.
I) Market ConditionII) Normal Condition
The final approval of percentage of pay scale or promotion is done by Head.
The method of appraisal is the “Bell-Curve Appraisal” which is a forced ranking system imposed on the employees by the management.
For all employees in O1 grade and above, the “9 grade talent Matrix” is being used. It used for talent mapping inside organizations, where the scales are high, average and low are used for potential in areas such as leadership, vision.
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What is Nine-Box Grid
A “nine-box grid” is a matrix tool that is used to evaluate and plot a company’s talent pool, based on two factors, which most commonly are performance and potential. Typically on the horizontal axis is "performance" - measured by performance reviews. On the vertical axis is typically "potential" - referring to an individual's potential to grow one or more levels in a managerial or professional capacity.
Nine-box grids are actively used during the talent review process. During this process a group of managers works together to place individuals on the X-Y axis to help identify who are the highest potential individuals, who needs development, and who needs coaching on performance improvement. It is also a very valuable tool to help calibrate compensation decisions.
Each of the nine boxes has a different set of actions associated with it. People who are very high-performers in their current role, but not "high-potential" yet, are possibly experts in their functional area who may or may not want to move into leadership. Our research and assessments have many examples of these tools and how to manage the talent review process.
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Sales Report of year 2010- 2011
Month-Year
Sum of Sales (MT)
Sum of Sales (Cases)
Sep-10 50857 4268903Oct-10 68737 5660142Nov-10 62787 5031750Dec-10 76838 6273264Jan-11 54446 4403405Feb-11 46422 3727760Mar-11 52852 4219098Apr-11 67177 5310016May-11 67288 5353810Jun-11 55329 4361083Jul-11 66321 5311087Aug-11 64595 5194893Sep-11 64078 5143110Oct-11 64229 5123337Nov-11 83806 6598543
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11 Aug-11
Sep-11
Oct-11
Nov-11
0100002000030000400005000060000700008000090000
Sum of Sales (MT)
According to sales report this year AWL had generated good amount of revenue. In the month of Nov 2011 it had touched the maximum of 83860, which is the highest till date in last 11 years of product launch. The product Fortune had already achieved 110% sales target of this year.
It is a biggest achievement for the AWL.
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