PREFACE

“True learning is born out of experience and

observation”. Practical experience is the best
type of learning that one can remember as
the aspects of administration and
management. The day comes to apply the
theoretical knowledge in corporate world in
context of modern industrial enterprise that
has to go through its different terminal to
achieve the corporate goals. The main
objective of practical training is to develop
practical knowledge and awareness about
industrial environment and business
practices in the student as a supplement to
theoretical studies. It increases the skill,
ability and attitude to perform specific job in
industrial environment.”
 Fortunately I got opportunity
to visit and complete my Fortunately I got
an opportunity to visit and complete my
summer training program at CAMPCO
CHOCOLATE FACTORY, at Kemminje,
puttur. Here I got chance to see the
functioning of all major departments and
imbibe a lot learning of the subjects.
 EXECUTIVE
SUMMARY

The MBA course offered by the

Bangalore University has its own unique
syllabus which requires its MBA students to
undertake an internship with any of the
leading business houses for a period ranging
from 4 weeks to 6 weeks during the second
semester. The purpose of this internship is to
enable the students to appreciate and
understand the nuances of the practical
world vis-à-vis the theoretical input
administered during regular academic
sessions. This helps in creating managers
who are equipped with the experience of
linking the theoretical inputs with those of
practical exposure and come out with
creative solutions and ideas in enhancing the
business. In partial fulfillment of MBA
degree of Bangalore University I took up an
organization study at CAMPCO chocolate
Factory, puttur for a period of four weeks.

The objective is to learn about the

working of a company. The practical aspects
was studied and compared with the
theoretical aspects learnt in the course. The
study involves visiting the various
departments of the organization to learn
about their structure and their functions.

The
incorporation, background, vision and
mission of the company were briefed by the
Administrative department. The work flow
model was briefed before the visit to the
production unit. The product profile was
collected by visiting the departmental outlet.
 The study was more emphasized
on 7S Mc Kinsey’s Model and the SWOT
analysis of the company. The study provides
a good exposure to the corporate world and
a good comparison of the practical and
theoretical aspects as studied in the course.

DECLARATION
I, N.Pramod Shetty, do hereby
declare that the internship report on
“CAMPCO CHOCOLATE FACTORY,
PUTTUR” has been accomplished by me
under the eminent guidance of Professor
Hema Harsha, Faculty, M.P. Birla Institute
of Management, Bangalore.

I submit this report in partial

fulfillment of the requirements for awarding
“Master of Business Administration” degree
of Bangalore University during the
academic year 2008-10, and not for the
award of any degree of any other university.

Place: Bangalore

Date: (N.Pramod
Shetty)

CERTIFICATE

This is to certify that the Internship Report

on “CAMPCO CHOCOLATE FACTORY”
has been prepared by Mr. N.Pramod Shetty
bearing registration number 08XQCM6048,
under my guidance. This has not formed a
basis for the award of any other
Degree/Diploma by Bangalore University or
any other University.

Place: Bangalore
Date: M/s Hema
Harsha
(Internal guide)

PRINCIPAL’S
CERTIFICATE
This is to certify that the Internship Report
on “CAMPCO CHOCOLATE FACTORY”
has been prepared by N.Pramod Shetty
bearing registration number 08XQCM6048
under the guidance of Professor Hema
Harsha, Faculty, M.P Birla Institute of
Management, Bangalore.

Place: Bangalore
Date: Dr. Nagesh S
Malavalli
(Principal)

INTRODUCTION

The report is based on the organization

study at the CAMPCO CHOCOLATE
FACTORY, puttur for a period of four
weeks as per the B.U norms. An attempt was
made to learn about the manner in which a
company works.

The study included the visits and

collection of information from the various
departments of the company with the
following objectives:

• Inception and
background of the
company.
• Ownership pattern
and the nature of
business carried
on.
• Vision, mission
and the quality
policy of the
organization.
• The product
profile and the
 competitors for
the same.
• Workflow model
of the company.

• The structure of
the company and
the various
departments along
with the main
functions.
• The marketing
strategies used.
• The chocolate
industry and its
contribution to the
economy.
• SWOT analysis of
the company.

A visit to the retail outlet was made to learn

about the various product lines. An
interaction was made with the visitors to
know their views towards the company’s
products and their expectations from the
company.

ACKNOWLEDGEMENT
The immense gratification this project
work has given me and does not lead to a
sense of fulfillment unless I express my
boundless gratitude to all those who made
this work successful. I do recognize that
mere thanks giving would not redeem me of
my indebtedness for all the timely help,
support and guidance I received. I script on
this page my sincerest thanks to each one of
them.
I profusely thank Mr.Abu Baker, AGM
of CAMPCO for giving me an opportunity
to do my internship in the esteemed
organization and for giving the information
about the company and guiding me
throughout the program.

I am extremely thankful to M/s

Hema Harsha Lakshmi Narayana, Professor,
M.P Birla Institute of Management,
Bangalore, who has guided me throughout
this project by giving valuable suggestions
and advice.

I equally thank all the Employees

and Executives of CAMPCO who have
extended their suggestions and interacted
with me and helped me learn a lot during the
project.

I offer my humble salutations to the

lotus feet of the Almighty for his bountiful
blessing without which I would not have
completed this endeavor successfully.

N.Pramod
Shetty
 INDUSTRY PROFILE
Chocolate was discovered in the 18th century
and every child’s dream came true all over
the world. The various brands of chocolate
often spoken about in India are Amul,
Cadbury and Campco.
In olden days, the ancient human
almost led a nomadic life wandering from
place to place in search of food. Food is the
basic source of energy for living organisms
including human beings. Hence all living
being need food. But in modern period, man
had started discovering new methods of
producing food through Agriculture. The
various activities involved in getting food
crops through agriculture are known as
agricultural practices like management of
soil, sowing, transplantation and application
of manure and fertilizers irrigation, weed-
control, crop improvement techniques, crop
harvesting and protection.
India is a land of villages. Nearly 65-70% of
our country is agriculturists. About 75% of
the land used for agriculture is cultivated for
basic food grain hence it has become a basic
industry in our country.
Agriculture is one of the
oldest occupations of human beings.
Agriculture means ploughing of the land,
sowing seeds, protecting plants and
obtaining crops for the use of people and
domestic animals. Commercial crops not
only help to earn foreign exchange but also
provide raw materials for industries. Cocoa
is also one of the important commercial
crops in India. Cocoa is grown on the slopes
of Niligiri Hills.
The discovery of cocoa was only a first
step in the direction of chocolate. The
Mayas were the first to cultivate the cocoa
bean for the fruits is yielded. They used the
beans as an ingredient in their favorite
chocolate drink xocoatl. The Mexican Indian
world chocolate comes from a combination
of the terms chocolate consumed in
beverage force.

Before the Spanish explorer discovered the

chocolate and other ‘exotic’ foods were
totally unknown in Europe. In the 1600
European began to open fashionable
chocolate houses to serve xocoatl as Hot
Chocolate scattered with sugar. In the
1700’s the English began with adding milk
to improve the flavor.
The first factory for processing
and manufacturing chocolates in India was
started during the world war-II at Bilimoria
but due to tough competition from foreign
products the company is ceased and stopped
its process and it made second attempt in
1936. But it faced failure as the size of
operation was economical. Finally it made
 third attempt to find its success to restart its
production.
Messrs Sathe Biscuit and chocolate co.
ltd., Poona commenced production of cocoa
powder on a small scale and chocolate
manufacture was taken up in 1941. Then the
production gradually increased. Later,
Madhu Canning Factory Agra, East India
Distilleries and Sugar Factories Limited
Madras started the production of chocolates.

With the machineries

manufactured by five major companies of
the cocoa processing aand chocolate
manufacturing namely-
M/S Carle and Montanari Spa, Italy.
M/S 1-Aasted International APS, Denmark.
M/S Otto Hansel Gmbh, West Germany.
M/S Sollich Gmbh and Co. kg, West
Germany.
M/S Sig Swiss Industrial Co, Switzerland.

Cadbury Ltd., which was so far importing

cocoa and chocolates into the country,
established plant in Bombay for processing
and packing of cocoa imported in bulk
during the initial stage. The new firms that
have engaged into this field in India are
Amul, which has completed 50 years of
service and the CAMPCO, which came up
during the 80’s. CAMPCO is one of the
largest factories in South Asia.
Cocoa is used as beverage and
chocolate is mainly used as confectionary
and to a small extent also used as beverage.
The market share of CAMPCO is 5-8%,
the Cadbury’s market share is 70% and the
Nestlé’s market share is 15-20%. The
penetration of chocolate in the country was
estimated at 5.5% in 1998. The penetration
in urban India stood at while that in rural
India as a mere 2.3%. Thus the consumption
of chocolate is largely restricted to urban
areas where too, the penetration is relatively
low.
During the last five years
growth in chocolate in India has covered
between 10% and 20%, with average growth
being at the range of 14-15%. Restricted to
urban areas played in the segment have
attempted to accelerate growth by adding
new consumers to the chocolate market.
Although the country with a culture of
consuming and exchanging sweets, pre-
packed branded sweets are yet not popular.
The consumption pattern and purchase
habits trend to favor local, freshly made
products. The ability of chocolate companies
to enter this market could provide
unprecedented with may be tempering of
income pyramid and introduction of low
price packs.

COMPANY PROFILE
BACKGROUND AND INCEPTION OF
THE COMPANY

“CAMPCO” is the short name of the

Central Areca nut and Cocoa Marketing and
Processing co-operative limited. CAMPCO
was registered on 11th july in the year 1973,
under section 7 of Karnataka Co-operative
societies act of 1959. The main activity of
CAMPCO is procuring and marketing of
Areca nut and also manufactures chocolates.
CAMPCO was set up with active support of
Karnataka and Kerala Government. The
growers who were getting a reasonable price
faced a sudden marketing crisis during the
year 1970-71 when the price of the areca nut
began to fall. The situation worsened during
1972 and the price of areca nut fel to such an
extent that the growers could get only half of
the price. But the cost of living was rising as
the cost of input was steadily increased. This
created factually a panic among the growers.
There was no organized marketing
arrangement for areca nut.
 Later on the Karnataka
Government constituted an expert
committee, which recommended to the State
Government to organize a Central agency
either in the public or the co-operative
sector. With the help of Government of
Karnataka and Kerala, the “Central Areca
nut Marketing and Processing Co-operative
limited” popularly known as “CAMPCO”
on 11th july 1973 under section 7 of the
Karnataka Co-operative societies Act 1959.
The growers of areca nut
appealed to the Government in turn
requested CAMPCO to help the farmers by
buying their products. CAMPCO thus went
into business of cocoa beans in 1980. After
that CAMPCO was able to export cocoa
beans of worth Rs.4 crores to the European
countries in their initial phase of operation.
In the mean time CAMPCO has to face the
problem of limited internal market and
unremunerative export market. In order to
overcome this and increase the local
consumption of cocoa based products and
export value added cocoa semi-finished
products. CAMPCO put up a chocolate
factory at Puttur, 50km away from
Mangalore.

CAMPCO has signed agreement between

companies. They are:

AGREEMENT WITH M/S NESTLE

INDIA LIMITED.
CAMPCO chocolate factory
entered into an agreement with M/S Food
Specialties Ltd known as M/S Nestle India
Ltd, on 7th February 1990, for manufacture
and supply of bulk quantity of chocolates
and cocoa products ranging from 2500MT to
3750MT p.a for an agreed manufacturing
fee of Rs. 12,000/- per MT of raw materials.
At first Nestle didn’t have any plant and
because of experienced people availability
of all type of chocolate production with
sophisticated machineries nestle made an
 agreement with CAMPCO. This agreement
is also made good result on CAMPCO to
gain demand in competitive market.

AGREEMENT WITH AMUL LIMITED

CAMPCO factory had entered into an

agreement with Amul India Ltd, on January
2001 for the manufacture and supply of bulk
quality of chocolates. The agreement was
made only for 5 years. The Amul Ltd
supplies the raw materials to the CAMPCO
Ltd; the CAMPCO makes chocolate and
supply to Amul Ltd. The chocolate products,
which were produced to the Amul Ltd, are
as follows:
• Milkair – 5.5gm – white centre chocolates.
• Chocolate – 5.5gm – brown centre chocolates.

At present CAMPCO is having its own

marketing team and the present set up as
follows:-
 CAMPCO is one of India’s most
modern chocolate manufacturing co-
operatives. Today CAMPCO has diverse
products. It is now affording product quality
with a variety to cater wider section of the
market. CAMPCO manufactures and
markets a different range of products under
its own brand name.
The production and demand for
chocolate have been rapidly increasing in
India at the rate of 20% during the last 5
years. The average growth is at 20% internal
chocolate market, which is now about 5500
tonnes.

CAMPCO chocolate unit sales

performance in terms of value is increasing
year by year. The sale includes sales of semi
finished products also. The major purchases
of semi finished products within India are as
follows-
• Britannia
• Smith Kline Beechem
• Parley
• Small Confectionery Manufactures
• British Biological
• Bambino

Sales performance during the last 7 years is

as shown below:

YEARS SALES(MT)
2002-03 2425.92
2003-04 2596.73
2004-05 3140.45
2005-06 2622.03
2006-07 3995.5
2007-08 4742.19

CAMPCO at Glance

Full Name of the organization : The Central Areca

nut and cocoa Marketing and Processing Co-opeative
limited
Status: A Co-operative Society registered under the
multi state co-operative societies act 1984.

Area of Operation: Karnataka and kerala state for

membership. No limit for marketing

Main objective: Procurement/Processing/Marketing

of arecanut and since 1980 cocoa/cocoa products

Date of Registration: 11-07-1973

Date of commencement of business : 12-11-1973

Registered office : Varanasi towers at Mangalore.

Brand name : CAMPCO

Type of ownership : Semi-Government

Date of entry into Chocolate : March/April 1987

Authorized share capital : Rs.35 crores.

Paid up share capital : Rs. 14.90 crores as on 31-03-

2008.

Number of Branches and Depots : 168 (all over

India)
Industries owned: 1. The CAMPCO Chocolate unit.
Puttur
2. The copper sulphate manufacture unit at sagar
(shimoga district).

Location : Kemminje, Puttur.

Type of Organization : Co-operative Society.

Number of Employees : 237 + 130 workers appointed

on contract.

Production Capacity : 8800 MT.

Number of Shifts : 6 am – 2 pm
2 pm – 10 pm.
10 pm – 6 pm.

NATURE OF THE BUSINESS CARRIED

BY CAMPCO.

The Central Arecanut and Cocoa Marketing

and Processing Co-operative Limited
(CAMPCO) was registered on 11th july 1973
under section 7 of the Karnataka Co-
operative Societies Act 1959 read with
section 4(2) of the multi unit Co-operative
Societies Act 1942 and subsequently it has
amended its byelaws and the same are
registered under the Multi state Co-operative
Societies Act 1984. Under certificate
No.L/11016/42/87/L and is dated: 8-12-
1988. The main activity of CAMPCO is
procuring and marketing of Areca nut and
also manufactures chocolates.

Features of the CAMPCO Chocolate

Factory
Following are some features of CAMPCO
Chocolate factory:
The Chocolate factory is a Co-operatively
owned organization and maintained by
CAMPCO.
• The factory is the largest in south-east
Asia.
• The factory is one of the most modern in
the world.
• The factory is equipped with the latest
 technology and machineries, imported
from five firms of 4 European countries.
• The factory is equipped with service
installed by the best firms in India.
• The factory is designed by well
experienced and expert architects and
consultants.
• The factory is situated in an industrially
backward rural area in the midst of Cocoa
growers.
• It generated employment for more than
200 personnels.

VISION, MISSION AND QUALITY

POLICY

Vision of the Company

“CAMPCO is formed to help the
farmers, procuring more and more areca nut
and cocoa, then utilizing these materials in a
better way which will help the farmers to get
market for their products.”
Mission of the Company
CAMPCO’s mission statement is:
“Co-operation between people
Harmony between faiths…
May the fragrance of peace
prevail forever”
“From areca to chocolates, this policy has
taken us a long way. And we are happy to
share this secret with you. At CAMPCO we,
symbolize the triumph of the co-operative
spirit. And how co-operative can be a source
of prosperity.”

This mission statement maintains that the

company has a good relation between people
and harmony between faiths and high set of
values and purposes behind its existence.

QUALITY POLICIES

‘HACCP’ (Hazard Analysis Critical Control

Point) is a quality policy which is used for
food safety. Food safety is the top concern
among food processors for very good
reasons. It is critical for corporate survival
and success. If there is a significant safety
failure, excellence in other areas of
corporate management will be wiped out
and the company will loose on=
• Regulatory Compliance
• Vendor Certification
• Supply Chain Performance and Contract
Fulfillment
• Corporate Value

PRODUCT PROFILE

The product of CAMPCO is chocolate. A

product is anything that can be offered to a
market for attention, acquisition, use or
consumption that might satisfy a need or
want. The chocolate products are classified
into Moulded, Enrobed, Éclairs and
Drinking Chocolate.
MOULDED CHOCOLATE

Moulding is the casting of liquid chocolate

into moulds (metal or plastic) followed by
cooling and demoulding. It includes
products such as CAMPCO Melto 37gms
and 10gms, CAMPCO Cream 37gms and
10gms.

ENROBED CHOCOLATE

It is a process of coating a center with

chocolate is other confectionery based
material so as t allow the coating to flow
over the shape in a controlled manner. It
includes products such as CAMPCO Turbo,
CAMPCO Treat, CAMPCO Megabite,
CAMPCO Bar, 4ever(32gm), krust 20gm
and 12 gm.

ECLAIRS

Éclair is a modified toffee containing an

outer shell of caramel with a centre filling
usually chocolate, chocolate creams etc. it
consists of products such as CAMPCO
Eclairs, Melto Eclairs, Brown Center Eclairs
and Playtime.

DRINKING CHOCOLATE

Drinking chocolate can be prepared by

following ingredients sugar, cocoa powder,
glucose, vitamin C, lecithin, salt. It includes
product such as CAMPCO Winner (500gms
and 100gms).

THE VARIOUS CHOCOLATES FROM

CAMPCO CHOCOLATE FACTORY
Net wt/unit M.R.P (in Rupees)
Moulded Chocolate
Melto 37 gms 10
Melto Cream 37 gms 10
Campco Bar 45 gms 10
Enrobed
Chocolates
Krust/Kraze 15 gms 5
Mega Bite 17 gms 5
Turbo 25 gms 5
Treat 25 gms 5
Drinking Chocolate
Winner 500 gms & 100 gms 65 & 18
Eclairs
Playtime(small) 4.5 gms 3
Campco Eclairs 4.5 gms 0.50
Campco Toffee 4.5 gms 0.50
Eclairs 2000 5.5 gms 1
Supply to Nestle
Ltd
Milkybar Eclairs 5.5 gms 1
Classic (Brown) 37 gms 10
Milkybar (White) 40 gms 14
Supply to Amul Ltd
Milklair 5.5 gms 1
Choclair 5.5 gms 1
Semi finished goods
Cocoa Mars 25 gms
Cocoa Butter 25 gms
Cocoa Powder 25 gms
Chocolate Mars 500 gms* 20=10kgs
Choco Paste 20kgs
Butter Chocolates 500 gms* 20=10kgs

AREAS OF OPERATION-
GLOBAL/NATIONAL/REGIONAL

The area of operation of this co-

operative for procurement and processing of
areca nut and cocoa extends to the states of
Karnataka and Kerala, but for the marketing
activities the area has been extended to the
whole country. Areca nut purchase
operations were extended to Assam,
Andaman and Goa but in recent year’s
purchase operations in Assam had to be
closed due to disturbances.

GLOBAL

CAMPCO produces wide range of

cocoa based products of consistent quality,
colour and flavor to satisfy the wide
spectrum of customers all around the globe.
The company has built a strong system base
for the confectionery of chocolate industries
in U.S, Australia and Malaysia. Export on
the other hand generated a total of about U.S
$14 million over a 5 year period. Among the
leading buyers were Malaysia, Korea and
USA.
NATIONAL

The company has various

nationalized branch offices through out
India under them are the distributors
followed b the dealers who sell the goods to
the ultimate consumers.

National Office throughout India

North: New Delhi
East: Kolkata
West: Navy Mumbai
South: Bangalore

REGIONAL

The company has regional offices

through out Karnataka. It has both dealers
and distributors and the distributors are
followed by dealers and ultimately to the
customers. Regional offices are as follows –
Mangalore, Hyderabad and Delhi.
 OWNERSHIP PATTERN

The type of ownership of CAMPCO

is semi Government. So the workers get
retired at the age of 58years. After the
retirement the CAMPCO gives gratuity to
their employees but no pension.

COMPETITORS INFORMATION

CAMPCO has competitors such as

Cadbury, Nestle, Parrys, Nutrine and Amul.
The CAMPCO has been unable to achieve
the volume growth targets because it has
losing market share. Cadbury continues to
dominate the chocolate market with about
70% market share and Nestle has emerged
as a significant competitor with about 24%
share.

INFRASCTUCTURAL FACILITIES

The CAMPCO chocolate factory is

located at Kemminje village of Puttur Taluk.
And it was inaugurated on 1st September
1986. There are 247 numbers of employees
working in the factory. CAMPCO is a two
storied building. The first floor includes the
office of the CAMPCO and chocolate
packing division. The second floor includes
the deputy general manager chambers,
quality control department, personal
department and different employee cabins.
The company also includes security office at
the entrance, separate A/C units, and
separate vehicle parking place and quarters
for employees including sitting facility,
washing facility, toilet facility, dressing
rooms, medical benefits etc. CAMPCO has
two wheelers, four wheelers and lorry as
transportation facilities. The surroundings of
chocolate factory is filled with gardens and
planted trees like areca nut, coconut, cocoa,
cashew etc.

ACHIEVEMENTS/AWARDS
 Best Export Award 2004-05 for processing
of CAMPCO Chocolate and for processing
Areca nut. And it has also achieved success
towards adopting fully automated machines
for the production process.

FUTURE GROWTH AND PROSPECTS

CAMPCO has a better scope for

expansion of its activities in relation to
different units like areca nut, cocoa in order
to safeguard and strengthening of CAMPCO
function more effectively.
• It has a target open at least one sales depot in
each state.
• It proposes to enter the retail market for areca
nut and products like “supari”, “panmasala”
etc by established units.
• CAMPCO is thinking of starting its own bank
called CAMPCO bank, to provide banking
services to the company.
• The future plan about production is to
 maximize output without sacrificing quality,
maximum quantity control, reducing the
cost, improving the efficiency etc.
• They also now introduced a new product like
a small products to Amul Ltd, winner, bar,
coated bars with different flavors,
chocolates.
• CAMPCO also planned to increase its sales by
advertisements.
• Capture international market by latest
technologies.
• Conducting marketing research for knowing
consumer tastes.
• Enlargement of transportation and ware
housing facilities with safety precautious.
• Improved qualify of wrappers of CAMPCO
chocolate which are not up to the mark.

WORK FLOW MODEL (END TO END)

The production process of CAMPCO

Chocolate factory is a continuous process
 which is divided into
1.Cocoa Processing
2.Chocolate Processing

COCOA PROCESSING
The CAMPCO chocolate factory
collects only the dry cocoa beans. The wet
beans are fermented and dried in the sales
depots. There after processing begins:
1.Cleaning
2.Roasting
3.Winnowing
4.Alkalization
5.Nib ginning(milling)
6.Liquor Processing/Hydraulic Processing

CHOCOLATE PRODUCTION
PROCESSING
1.Preparation of ingredients
2.Mixing
3.Refining the mixture
4.Conching
5.Tempering
6.Molding
7.Cooling

CLASSIFICATION OF CAMPCO
CHOCOLATES
CAMPCO produces larger amount of
chocolate based on 3 classifications:

1.Molded Chocolate
2.Enrobed Chocolate
3.Éclairs

COMPANY PROFILE WITH

REFERENCE TO THE 7-S
McKINSEY’S MODEL.

According to Tom Peter and Robert

Waterman, organization change is not
simply a matter of structure, although
structure is a significant variable in the
management of change. The successful
 execution of a strategy required the right
alignment of seven vital inter-connected
activities and processes within an
organization, namely-
1.Structure
2.Strategy
3.System
4.Style
5.Staff
6.Skills
7.Shared Values
 STRUCTURE

The structure is the skeleton of the whole

organization. It describes the formal
relationship among various positions and
activities. It provides information about who
reports to whom and how tasks are both
divided and integrated. And also CAMPCO
follows functional organizational structure.

ORGANIZATION AND MANAGEMENT

The management of CAMPCO vests in the

boards of directors consisting of 17
directors. These directors are elected or
nominated as per the provisions of Bye laws.
The managing director is appointed by the
Government of Kerala. The day today
activities are conducted by the managing
directors. The Executive committee and
Business committee will devote more time
to scrutinize and decide about the financial
and business transaction of the factory.
 There is one or two legal
advisors as well as one of the directors is the
nominee of IDBI to facilitate and make the
management more effective. Two
committees have been constituted. They are
as follows;

The Executive Committee

a)President.
b)Vice President
c)Managing directors
d)Two directors from each state.

Business Committee

a)President
b)Vice President
c)Managing directors
d)Two directors from each state (Karnataka
and Kerala)
e)Two senior most officer for ARECA
marketing.
f)The Head of CAMPCO Chocolate factory,
Puttur.

Membership of CAMPCO

There are five different types of shares; class

A, B, C, D and E issued to different class of
people.

‘A’ class is open to agricultural produce

market.

‘B’ class is open to agriculture produce

market committee of Areca and Cocoa
growing areas, co-operative marketing and
consumer federation, any other multi-state
co-operative society or any corporation
owned or controlled by the Government.

‘C’ class is open for individual growers of

Areca nut and Cocoa in both the states.

‘D’ class is open for state Government and

Central government and NDC.

‘E’ class is merchants and agents who have

business in connection with CAMPCO.

Functional Departments

There are several functional

departments in CAMPCO chocolate factory,
which are handling various operations.
They are
a)Production Department
b)Administrative Department
c)Quality control Department
d)Stores Department
e)Marketing Department
f) Maintenance Department
g)Accounts Department
h)Security Department

Production Department

The production department is headed

 by production manager. Under him/her there
are supervisors to look after the production
activities. The production activities are in
three shifts by rotation. The packing
supervisors also come under the production
department. The supervisors supervise the
work of packing department and personnel
work under piece rate system.
The main function of this
department is to achieve targeted production
objectives.
They are:
• To follow up daily production schedules as
per the plan.
• To upgrade the technical efficiency of
production.
• To maintain relationship with other
department.

In production department, the Chief

Manager plans the different production as
per the market requirements. The future
plans of this department are to maximize the
output without sacrificing quality, reducing
cost and improving quality.

Administrative and Personnel

Department

Administrative Department.

The administrative department looks

after the day-to-day administration activities
of the factory. at the top level there is an
administrative manager. Normally the
General Manager carries over day-to-day
administrative activities in the factory.
He is also assisted by the various
departments in the factory. The General
Manager is accountable to the head office
that is in Mangalore.

Personnel Department

Personnel management deals with

the human aspects in an organization
undoubtedly; people are most complete
factor in an enterprise or organization. Main
objective of this department is to maintain
the quality standards, work level and
satisfactory level of production and also to
develop the procedure to help to select the
right person for right job. Personnel
department of CAMPCO looks after the day
to day administrative activities of the
factory. At the top level there is an
administrative manager normally the general
manager carries out day to day activities of
the factory.
In Personnel department,
recruitment forms the first stage in the
process, which continues with the selection
and ceases with the placement of candidate.
Management should recruit right kind of
people at tight time for right place. The
vacancy posts are advertised in 3 leading
newspapers of Kannada, Malayalam and
English as per the service rules of
CAMPCO. The selection of employee is
done through competitive examination and
interview. Written test is conducted by the
outside agencies. The interview and
selection of candidate is done by
management.
The candidate recruited to the particular
post may be placed under training for a
prescribed period or such extended period. If
it is found necessary the pay shall be fixed
by the M.D from time to time. If the trainee
discontinues the training, he/she shall be
liable to reimburse the entire cost of training
as assessed by the M.D.

Quality Control Department

The quality control department is

headed y the quality control manager. Under
him/her there are three supervisors. In this
department there is 1 microbiologist. There
are few technical assistants to help the
microbiologist in his work. They check the
quality of raw materials and also the quality
 of the products after production. If the firm
ahs made any dilution on its quality, then it
will definitely affect its sales and
profitability. That is why this department
serves as one of the important department.
In this firm this department has to maintain
the quality of the cocoa beans used for
production upon which quality of chocolates
depends.
Different types of quality control techniques
used in the chocolate plant;
• Micro-biological quality control
• Raw and packing material analysis
• Process control
• Finished product analysis
• Bacteriology testing products for harmful
pathogens
• Shelf-life studying
• Pest control

Stores Department
 The stores department is headed by store
manager. Under him/her there are
supervisors. The main function of the stores
department is divided into 3 units. These
three functions are; receiving the raw
materials for manufacture of chocolates and
also packing materials and sending it into go
down. The stores managers are responsible
to provide the raw materials to required
department and store the finished goods in
the store. The store’s activities are carried
out in shifts by rotation. There are four
documents maintained by the stores
department. They are;
Material inward registers
Daily stocks report
Material register note
Return note book

Marketing Department

The marketing department is mainly

classified into an areca nut division and
 chocolate division. Each division is headed
by Assistant General Manager. Under him
there are Chief Manager, senior manager
and regional officers. Assistant General
Manager controls all the activities relating to
the marketing department. He plans and
prepares new marketing policies and it can
be properly implemented. The main
objective of marketing department is to
fulfill the customer satisfaction and increase
company’s sales and to contribute quality
products in the market.

The main functions of this department are:

To plan marketing program
To analyze the marketing opportunity
To develop marketing strategy
To connect the consumer with the product

Sales

In CAMPCO sales are being

conducted in two ways. That is through
depots and sales representatives. It has
different depots though out India. The
depots are being opened to cater to the needs
of whole sellers and retailers. A collection
charges being collected in the concerned
depots. CAMPCO has introduced the
services of sales representatives throughout
India. The rates and quality offered for sales
are being decided by the CAMPCO and on
getting information from its customers, their
representatives place written orders.
The sales of Cocoa products are being made
at CCF/Area sales office level through the
distributors/ super stockiest on cash or credit
basis. The Executive Director of
marketing/Regional managers required to
supervise and excersise control over CCF,
Area sales office.

Channel of Distribution

Of the four elements of marketing mix that

is product, price, promotion and distribution.
The channel of distribution plays a vital role
especially in the distribution of consumer
goods.
CAMPCO generally follows and
uses indirect channels of distribution.
CAMPCO supplies goods to super stockiest
and in turn supplies to whole salers and
whole sellers to retailers. CAMPCO offers
21 days credit facilities to whole seller and
for delayed payment they charge 21% of
interest.

Services

The product manufactured in

CAMPCO (CCF) are marketed and sold
through out the country and it is exported to
some countries. The proper service that is
the company provides service to its
customer in the form of prompt delivery of
goods should be given by paying attention to
the customer complaints and services. The
improving quality of customer education
 and training and services is the main criteria
of CAMPCO that include ability to provide
replacement parts and repairs services.

Maintenance Department

The maintenance department is

headed by maintenance manager. Under
him/her there are maintenance assistants and
engineers. They check the machines and are
responsible for their working and
maintenance.

There are two types of maintenance.

1. Breakdown maintenance.
2. Preventive maintenance.

Breakdown Maintenance

This refers to the supervision of

machineries only after it breaks down and
makes it fit for future use.
 Preventive Maintenance

Preventive maintenance refers to take care

of machinery before breakdown. Under this
system the machines are frequently checked
and repaired.

Account Department/Financial Department

The CAMPCO chocolate factory has

maintained an accounts department. The
chief accountant is in charge of this
department. Under him are the senior office
assistants and junior office assistants
working in the department. A report has to
be sent to the head office about the day-to-
day work and expenses incurred.

The functions of account department are:

• Handling day-to-day accounts of the factory
• Providing salaries to the staff
• Maintaining accurate financial records
• Giving information to the head office
• Payment of bills and keeping account

Security Department
Security department is also important for
each and every organization. Security
departments has 10 acres of land and Rs.125
crores worth of assets including buildings,
land and machines and others. It provides 3
acres of land as quarters to the employees.
This factory covered with fencing barbered
wire leaving one main exit called gate. The
main gate is controlled by security person
called senior security officer. He should be a
graduate and he should have at east 15 years
of service in defense. The duties and
responsibilities of security department are:
• Checking of incoming and outgoing
personnel, vehicles, items etc
• Maintenance of discipline inside the factory
• Prevention and detection of theft etc.
• Security
• Other duties are empowered by managing
director of CAMPCO.

SKILLS

The Mckinsey’s 7-S framework

considers skill as one of the important
attributes or capabilities of an organization.
The term skill includes those characteristics
which most people use to describe a
company
CAMPCO chocolate factory includes
skilled staff and workers in its operations
and productions who are expert in their own
field. Administrative officer have code
knowledge and skill in their particular field,
it is preferable to have master degree in their
work. Machine operators of different
department have wide knowledge and skill
about operations and handling of machines,
chocolate manufacturing process etc. if the
selection of skilled worker is done properly
then it will result on effective operation of
the manufacturing process, administration
etc. CAMPCO also follows technical skills,
innovative skills, communication skills.
In CAMPCO all new recruits
(both technical and managerial) are provided
“on the job-training method”. Under this
training method, the individual is placed on
a regular job. It has the advantage of giving
first hand knowledge and experience under
the working condition.

STYLE

Organizations differ from each other

in their styles of working. The styles of an
organization is evident through the pattern
of action taken by the top management over
a period of time. But, the Mckinsey’s
framework considers styles as something
more than the style of top management.
CAMPCO follows participative style
of management. Participative style of
CAMPCO helps in the processing and
marketing of chocolates also. Each and
 every departments take decisions together
which help the company to take the steps in
their daily transaction or operations.

STRATEGY
Strategy is the set of decision and
action plans aimed at gaining a sustainable
competitive advantage. Today most of the
enterprises are engaged in strategic
planning. The degree of the sophistication
and the formative vary considerably from
organization to organization.
In the case of CAMPCO chocolate
factory, the strategy is to produce and sell
standard and good quality chocolates with
well guided procedure and good quality of
raw materials from different supplying
company with a quality check to delivery
the products to the customer.
Strategy includes objectives,
goals, purpose and policies, action plans and
tactics. The objectives are:
• To procure areca nut and cocoa of the
 members and if necessary from other
growers.
• To undertake processing of areca nut and
cocoa and to establish industries for the
manufacturing of finished and semi finished
products from areca nut and cocoa.
• To open branches and depots, godowns and
factories.
• To arrange for procurement, manufacture and
distribution of pesticides, fertilizers etc.
• To undertake pooling, packing and
standardization of Areca nut and cocoa.

Pricing Policy

CAMPCO adopted the policy of full cost

pricing. But sometimes they marketed the
products at price lower than that of cost
price and its prices are normally lower than
competitors. CAMPCO has adopted on
pricing policy where by the company
specifies the prices to be charged to each
dealer in the price list published by the
company. There is no geographical change
in prices.

Discount Policy

It has varying discount share, which

includes trade discounts, cash discounts,
special discounts etc. In some cases discount
rate varies from dealer to dealer depending
on sales turnover and in some cases the
discount varies depending upon size of
purchase.

Collection Procedure

The dealer provides security such as bank

guarantee. The payment must be made
within 15-40 days depending upon sales
turnovers.

Systems

Systems in the 7-s framework refer to all the

rules, regulations, methods and procedures
(both formal and informal) that complement
the organizational structure.
CAMPCO is fully mechanized plant.
The function of production control in
products of the productions parts, products
of required quality and quantity at the
required time and also provides feedback to
the production department and allocates or
uses the resources available to achieve the
objectives. The production planning is
valued on the factors of designing of
products that determines the equipment,
capacity etc.
In Campco chocolate factory various
systems have been installed in each
functional areas so as to enhance the level of
interaction and coordination thereby, in
order to improve the overall organizational
effectiveness. Some of these systems
include:-

Computer System
 In Campco, each and every department
is linked with intercom facility, which helps
to share each other opinion about company’s
daily transactions. Office and each
department is equipped with computer
system.

Quality Control System

In Campco, production is carried quickly

according to quality standards. The quality
of product manufactured is of international
standards. The function is to check the
quality of raw materials and also the quality
of products after production.

Performance Appraisal System

In Campco the performance appraisal

work is done in a special way. At the end of
the year a report known as ‘Confidential
report’ is prepared by each and every
departmental head. This report contains each
and every information relating to a particular
worker working in a particular department.
This report is then submitted to the higher
authority for evaluation.

STAFF

Staffing is referred as human resource of an

organization where they contribute to the
fullest extent to achieve the organizational
goal within a stipulated period. Staffing
represents the development of employees in
terms of selections, placement, training,
promotion and performance etc. it include
processes to develop in them the abilities
and skills that they need to be effective and
efficient.
In CAMPCO strength of the staff is 237
permanent and 130 contract based
employees who are headed by Deputy
General Manager and under him there are 6
assistant managers for each department.
Each and every staff is well educated and
trained in their particular area of work
assigned to them.
Staff is classified in to 4 levels. they are
strategic level, Management level, Operating
level and Technical level. The duties and
responsibilities of staff in CAMPCO
chocolate factory are shown in the table.

Labour Welfare Measures

CAMPCO provides good facilities to its

employees such as bonus, dearness
allowance, provident fund, gratuity, yearly
increment, edical allowance and welfare
measures etc

Bonus
In CAMPCO 8.33% per annum
bonus is paid to the employee every year.
The maximum limit was Rs. 2500. If the
basic salary plus dearness allowance is more
than Rs. 3500, they do not come under
 bonus act.

Dearness Allowance

CAMPCO gives 43% dearness

allowance twice in a year, 1st January every
year and again 1st July every year. It comes
under Karnataka Government, schedules.

Provident Fund

In CAMPCO chocolate
factory provident fund is contributed as
follows: 12% of (Basic salary + dearness
allowance) is employee’s contribution and
equivalent amount is contributed by
management also.

Duties and Responsibilities of staff.

VARIOUS STAF DUTIES &

LEVELS F RESPONSIBILITIES
Strategic level 2 To pass the orders and oversee
and review the functioning of
 all the departments.
Management level 20 To control the activities of the
Organization.
Operating level 155 To carry out day to day operating
activities of the company
Technical level 60 To engage in production and other
technical maintenance activities
TOTAL 237

Yearly Increment

CAMPCO provides yearly increment

to their employee depending on the pay
scale. Minimum amount of increment is Rs.
10 and the maximum is Rs. 150.

Promotions

There is no hard and fast rule in promotions.

Employee promotions are given once in 8
years. The promotion was made according
to the seniority cum merit basis.

Medical allowances
 CAMPCO also gives Rs. 2000 per
annum as medical allowance. These medical
allowances are given in 2 installments once
in march and other in September.

Retirement

Type of ownership of CAMPCO is semi-

Government. So the workers get retired at
the age of 58 years. After the retirement the
CAMPCO gives gratuity to their employees
but no pension. In order to have eligibility
for gratuity benefit the employees of
CAMPCO has to complete 5 years of
service. In each year he/she should have
perfect attendance. The person who retires
or resigns is eligible to get gratuity at the
rate of 15 days salary multiplied by number
of years of service.

Insurance Coverage

All the vehicles belonging to

 CAMPCO in all the branches, all the
buildings and go downs have been brought
under suitable insurance coverage, as could
be seen from the records of CAMPCO. And
the fixed assets registered are maintained up
to date.

Welfare Measures in CAMPCO

The following are some of the welfare

measures providing to the workers of
CAMPCO. These measures are classified as
statutory measures and non-statutory
measures.

Statutory Measures

• Canteen facilities.
• Cold water facilities.
• Rent free accommodations.
• Medical benefits.

Non-Statutory Measures
• Uniforms.
• Safety shoes, rain coats are provided.
• The employees state insurance facilities.

Leave to the Employees

In CAMPCO temporary worker gets

3 days casual leave per year and permanent
employees get 15 days per years. The
company provides 20 days half leave to their
employee and 20days privilege to its
workers. The CAMPCO chocolate factory
provides 10 days of holiday including the
Government holiday and also it provides
every Sunday as the weekly holiday to its
permanent employees.

Duration of Work

In the CAMPCO chocolate factory, there are

four shifts including the general shifts. The
normal hours of work are 8 hours. The
 timings of 4 shifts are as follows.

Shift Timings

1. Shift - 6 am to 2 pm.
2. Shift - 2 pm to 10 pm
3. Shift - 10 pm to 6 am

General shift – 9 am to 5.30 pm

Shared Values

Shared values refer to set of beliefs, views,

opinions value and aspiration of the
employees that goes beyond the formal
statement of corporate objectives.
In CAMPCO all employees share the
same guiding values and responsibilities for
particular task, provided to them. Chief
Executive gives responsibility for each
department about the task. It also maintains
quality consciousness.
 SWOT ANALYSIS

SWOT ANALYSIS

The diagnosis of the firm’s strength and

weakness can be fruitful only if the
environmental factors and market conditions
are considered keeping in mind the internal
capabilities of the company. This approach
essentially involves matching the internal
capabilities with the environmental
opportunities and threats.

STRENGTH

1. Large Product Mix.

One of the strength of the CAMPCO
limited is large product mix. The CAMPCO
produces the different type of chocolates
that is Melto, Cream, Turbo, Treat,
Megabite, Campco bar, 4 ever, Krust, Éclair
2000 etc.

2. Largest chocolate Factory in South East

Asia.
CAMPCO is the largest factory in south
Asia. This statement can be used to attract
more clients.

3. Highly Committed Employees.

WEAKNESS

1. Lack of Promotional Activities.

The CAMPCO chocolate factory is
not promoting its products in an effective
way through media advertising. Poor
marketing effort to push the product in the
market.
2. Suffering from huge loss.
The CAMPCO chocolate factory has
made huge loss for the past several years.

3. Inefficient Utilization of the Capacity.

The actual capacity of the CAMPCO
chocolate factory is 8800 metric tonnes. But
the factory has not been able to make use of
the full capacity.

4. Inefficient Product Quality.

The chocolate products are to be
placed in a required minimum temperature.
If it is not preserved in a required
temperature the quality of the product will
be effected.

OPPORTUNITIES

1. There is a large market for chocolate

which is untapped in India.
2. Expanding the existing product mix can
lead to increase in market share

3. Greater product awareness can be brought

about within all age group showing
chocolates as the best gift to friends and
relatives.

4. Popularity can be gained through the

social service in the backward areas of south
India.

THREATS

1. There is a severe competition from

multinational companies such as Cadbury
and Nestle.

2. Frequent changes in Government rules

and regulations and tax policies.

3. Competition from local players such as

Amul.

EFFECTIVENESS OF TRAINING

INTRODUCTION

Every organization needs to have well

trained and experienced people to perform
the activities that have to be done. If the
current or potential job occupant can meet
this requirement, training is not important,
but when this is not the case, it is necessary
to raise the skill levels and increase the
versatility and adaptability of employees.
Inadequate job performance or a decline in
productivity or changes resulting out of job
redesign or a technological break through
require some type of training and
development efforts. As the jobs become
more complex, the importance of employee
development also increases. In a rapidly
changing society, employee training and
development are not only an activity that is
desirable but also an activity that an
organization must commit resources to if it
is to maintain a viable and knowledgeable
work force.

“Training”, “education” and “development”

are three terms frequently used. On the face
of it, there might not appear any differences
between them, but when a deep thought is
given, there appear some differences
between them. In all “training” there is some
“education” and in all “education” there is
some “training”. Moreover, the two
processes cannot be separated from
development. Precise definitions are not
possible and can be misleading, but different
persons have used these activities in
different ways.

DEFINITION
After the selection of the employee, the next
step is his training. Even old employees
require some training at various points in
their career. The general objectives of
training and development are to assist the
employee to expand and use more
effectively his skill, talents and knowledge
and to assist him in finding his true potential
and in preparing him for greater and higher
responsibilities.

“Organized procedure by which people

learns knowledge and skill for definite
purpose”- Dale S Beach – 1985.

“The act of increasing the skills of an

employee for doing a particular job” –
Edwin B. Fillip, 1984.

In the words of Planty and Efferson, training

is “The continuous, systematic development
among all levels of employee of that
knowledge and those skills and attitudes
which contribute to their welfare and that of
the company.”

Training is defined by Lawrence L

Steinmetz as a short term process utilizing a
systematic and organized procedure by
which non managerial personnel learn
technical knowledge and skills for a definite
purpose.

From an analytical study of the above

definitions we may conclude that:

Training is a purposeful process. It is

concerned with imparting and developing
specific skills for a particular purpose. Thus,
training is any process by which the
aptitudes, skills and abilities of employee to
perform specific jobs are increased.

Features of Training

It is clear from the above definitions that

 training is a part of the process of staffing
and has the following features.

• The basic purpose of training is to guide and

direct the learning of employees so that
theymay perform their jobs more efficiently.
• Training helps the employe to increase his/her
knowledge of facts, policies, procedures and
rules and regulations pertaining to his/her
job.
• Training is to assist the employee in finding
his true potential and in preparing him for
greater and higher responsibilities.
• Training attempts to increase the skills of an
employee for doing a specific job more
efficiently. It involves the development of
one or a few specific technical skills.
• Training attempts to mould the attitude of an
employee towards other co-workers,
supervisors and organization and create in
him a sense of responsibility and interest in
his job.
• Train is given to operative (that is non-
managerial personnel) for performing
specific jobs. Hence, training is job-oriented.
• Training is a short-term process. Training
courses are designed for short term.
• Training must be a continuous process.
• To be effective and accomplish the desired
results efficiently, training must be planned
systematically.
• Training must be aimed at all employees of
the firm. It is necessary for the newly
appointed employees to learn the job. It is
equally necessary for the existing employees
whenever new method, technique, or
machines etc are introduced.

Objectives of Training

• To prepare employee for meeting current

job requirement including anticipated
changes.
• To prepare employees to shoulder higher
 levels of responsibilities.
• To ensure smooth and efficient working
with the organization.
• To ensure smooth and efficient working
with the organization.
• To improve productivity with quality.
• To promote sense of ownership positive
attitude and commitment amongst the
employees.

Types of Training

There are many ways to train people. But

mainly training methods are of two types:

1.On the job training.

2.Off the job training.

On the job training methods.

This is the most common method of

training. On the job training relies on current
employees to train new recruits, results
 depending on the trainer’s skill in training.
The trainee is placed on the job and the
manager or the mentor shows how to do the
job. To be successful the training should be
done according to structured program that
uses task list, job breakdown and
performance standards as a lesson plan. It is
highly practical and reality based. It also
helps the employee establish important
relationship with his/her
supervisors/mentors.

a) On specific job
1) Experience: This is one of the oldest
methods of on-the-job training. This method
which involves learning by experience has
proved to be very efficient. To make this
approach effective, it should be
supplemented with other methods of
training.
2) Coaching: This involves coaching by
a superior by personal instruction and
guidance to a manager trainee. This method
 increases motivation in the trainee. But this
method is effective only if the superior is
properly trained and oriented. Further the
superior may not have enough time to coach
the trainee and he may also neglect his job.
3) Understudy Program: In this method,
an individual works as an “assistant to” to
the senior manager so that, eventually the
deputy can assume full responsibilities and
duties of the job held b the senior manager.
In this method, the trainee learns be
experience and observation. The main
advantage of this method is that training is
conducted in practical and realistic
situations.

b) Apprenticeship Training:
This method of training is meant to give
the trainee sufficient knowledge and skill in
those trades and crafts in which a long
period of training is required for gaining
complete proficiency. Generally the trainees
work as apprentices under the direct
 supervision of experts for a long periods, say
2-7 years. This program consists of
providing actual work experience in the
actual job as well as imparting theoretical
knowledge through classroom lectures.

c) Job Rotation:
This method involves transferring a trainee
from one job to another on a systematic
basis. If a trainee is rotated systematically
from one job to another, the general
background of the trainee is broadened. This
method provides training in actual situation
and exposes them to other worker’s
problems and view points. One main
disadvantage of this method is that
production may suffer.

d) Special Projects:
In this method, the trainee may be asked to
perform a special assignment so that he
would be in a position to acquire knowledge
and also to learn the work procedure.
Sometimes, the management may create a
task force consisting of trainees representing
different functions in the organization which
helps the trainees in acquiring knowledge
about the special assignment.

e) Committees and Junior Boards

Committees and junior boards which are
also called “multiple management” are
important methods of training. The trainee
by becoming a member of the committee
gets an opportunity to interact with the
experienced managers and to know the
problems of the organization and the view
points of different managers to solve the
problems. All the decisions and suggestions
made by the junior boards are placed before
the meetings of the board of directors of the
company before taking final decisions.

f) Vestibule Training:
The training in vestibule school is
 preliminary to actual shop experience.
Vestibule training is an attempt to duplicate
as nearly as possible the actual working
conditions of the work place. The trainees
can concentrate on training only, because
they are not under any pressure of the work
situation. Further, regular

Off the job training methods

Off the job training is most commonly

called classroom training. It is a traditional
way of education. Off the job training takes
place either inside the organization or at
some external selected sites, may be
institutes, universities or professional
associations which have no connection with
the company. Off the job training includes
the lecturers, the conferences, group
discussions, seminars etc.

a) Special courses and lectures:

Some organizations like Tatas and
 Hindustan Lever, State Bank of India, LIC
etc have their own development departments
which provide special courses and lectures
for their employees. These organizations
also arrange some courses or lectures by the
staff of some universities and institutes.
Sometimes, the business concerns may send
their employees to attend course of 1-2 week
duration conducted by the institutes of
management.

b) Conferences:
In this method, managers and potential
managers attend the conference programmes
in which they pool their ideas and
experiences with certain problems which are
a common subject of discussion. For
example, the conference may discuss
specific problems such as planning,
delegation etc.

c) Case Studies:
The case study method which was
 popularized by the Harvard Business
School, USA, is one of the common forms
of training to the emoplyees. In this method,
instruction describes the actual situation or
problems of a specific concern and the
participants are encouraged to take part in
the objective discussion of the problem. This
method increases the trainee’s power of
observation and also his analytical ability.

d) Simulation:
In simulation, the real situation of work
environment in an organization is presented
in the training session. In other words, in
simulation, instead of taking participants
into the field, the field is simulated in the
training session itself.
Role Playing is one of the common
simulation methods of training. In role
playing the participants play his role or
those of others under specific conditions of
simulation. Role playing enables the
participants to increase his skills in dealing
 with other people. In role playing, the
participants play different roles for different
situations and by this, they are enabled to
deal with several problems from various
angles.

e) Sensitivity Training:
This method aims to influence an
individual’s behavior through group
discussion. In group discussion, the trainees
freely express their ideas, beliefs and
attitudes. In sensitivity training, the trainees
are enabled to see themselves as others see
them and develop and understand other’s
views and behavior. Further the participants
are trained to become patient listeners and
resolve conflicts, if any. In addition, the
trainees by interaction in a group become
sensitive to one another’s feelings and also
develop increased tolerance for individual
differences.

f) Incident method:
In the usual case method, the entire problem
is presented to the students, whereas in the
incident method, only a brief incident is
presented to provoke discussions in the
class. The group then puts questions to the
instructor to draw out of him the salient facts
and additional information needed to arrive
at a reasonable solution of the case. This
method draws the participants into
discussion with greater emotional
involvement.

Need and Importance of Training

Training imparts skills and knowledge to

employees in order to make them able to
cope up with the pressure of changing
environment. Training is no longer a matter
of choice to an organization. The choice is
only in the methods of training. The needs,
importance and benefits of training are as
follows:
Increase Efficiency

Training enables the individual to develop

skills and methods of doing a job in a better
way. This is more important in the case of
changing technology.

Uses Untapped Potentials

Training enables the individual to translate

his untapped potential into actual
performance.

Increases Morale

Training increases the morale of employees

by relating their skills with their job
requirements. It builds employee’s
confidence in the company, develops
loyalty, raises morale and increases
teamwork.

Broadens Knowledge
It broadens the knowledge of the employees
in all phases of the company’s operations.

Improves Human Relations

Training increases the quality of human

relations in an organization. It helps to solve
many problems of social and psychological
nature.

Saves Supervision Cost

Trained employees require les supervision.

With reduced supervision, a manager can
increase the number of his subordinates.
This can save cost of supervision.

Prepares for Greater Responsibility

It prepares the employees for lateral transfer,

upgrading and promotion within the
organization.
 Organizational Asset

Trained people are necessary for the survival

of the organization and to maintain
effectiveness and to make short term
adjustment with the existing personnel.
There is no greater organizational asset than
trained and motivated personnel.

• Reduces labour turnover.

• Training results in higher productivity.
• More pay, recognition and other benefits to
the employees.
• Trained personnel get job satisfaction.
• Therefore, the chances of leaving the job are
less. Thus, training reduces labour turnover.
• Training increases the quality of work.
• Quantity of output by improving skills and
productivity of the employees.

Short Learning Time

Effective training helps the employees to
acquire the skills and knowledge to do a job
within a short span of time.

Encourages Standardization

Training encourages standardization by

teaching the best methods of performing the
work to all employees. This will improve the
levels of performance.

Cuts Costs and Wages

Training creates cost consciousness. It
teaches the methods of economical use of
materials and equipments, minimization of
cost and wastages.

Creates Confidence

Training creates a comfortable feeling of

confidence in the minds of workers. It
develops adaptability among workers. It
encourages them to accept challenges and
risks.

Growth of the Individual

Training develops skills, knowledge and

attitudes of the employee in all respects.

Provides Scope for Promotion

Training provides qualities essential for

promotion and upgrading of the employee.

Better Rewards

Training increases efficiency and

productivity. It facilitates higher rewards
and benefits to the workers.

Role of Training

No organization has a choice of whether to

train its employees or not, the only choice is
that of methods. The primary concern of an
organization is its validity and hence its
efficiency. There is continuous
environmental pressure for efficiency and if
the organization does not respond to the
pressure, it may find itself rapidly loosing
whatever share of market it has. Training
imparts skills and knowledge to employees
in order that they contribute to pressures of
changing environment. The viability of an
organization depends to considerable extent
on the skill of different employees;
especially that of managerial cadre, to relate
the organization with its environment.
There are three factors which necessitate
continuous training in an organization.
These factors are technological advances,
organizational complexity and human
relations. Training can play the following
role in the organization.

Increase in Efficiency
Training plays an active role in increasing
efficiency of employees in an organization.
Training increases skills for doing a job in a
better way. Though an employee can learn
many things while he is put on a job, he can
do much better if he learns how to do the
job. This becomes more important especially
in the context of changing technology
because the old method of working may not
be relevant. In such a case, training is
required even to maintain minimum level of
output. For example, working on automatic
machine requires skills different from that
required to handle manually operated
machines. Similar changes are taking place
in managerial jobs too.

Increase in Morale of Employees

Training increases morale of

employees. Morale is a mental condition of
an individual or group, which determines the
willingness to cooperate. High morale is
evidenced by employee enthusiasm,
voluntary conformation with regulations and
willingness to co-operate with others to
achieve organizational objectives. Training
increases employee morale by relating their
skills with their job requirements.
Possession of necessary skills to perform a
job well often tends to meet such human
needs as security and ego satisfaction.
Trained employees can see the jobs in ways
that are more meaningful because they are
able to relate their skills with jobs.

Better Human Relations

Training attempts to increase the quality of

human relations in an organization. Growing
complexity of organizations had led to
various human problems like alienation,
inter-personal and inter-group problems.
Suitable human relations training can
overcome many of these problems. Many
techniques have been developed through
which people can be trained and developed
to tackle many problems of social and
psychological nature.

Reduced Supervision

Trained employees require less supervision.

They require more autonomy and freedom.
Such autonomy and freedom can be given if
the employees are trained properly to handle
their jobs without the help of supervision.
With reduced supervision, a manager can
increase his span of management. This may
result into lesser number of intermediate
levels in the organization, which can save
much cost to the organization.

Increased Organization Viability and

Flexibility

Trained people are necessary to maintain

organizational viability and flexibility.
Viability relates to survival of the
organization during bad days, and flexibility
relates to sustain its effectiveness despite the
loss of its key personnel and making short-
term adjustment with the existing personnel.
Such adjustment is possible if the
organization has trained people who can
occupy the positions vacated by key
personnel. The organization, which does not
prepare a second line of personnel who can
ultimately take the charge of key personnel,
may not be quite successful in the absence
of such key personnel for whatever the
reason. In fact, there is no greater
organizational asset than trained and
motivated personnel, because these people
can turn the other asset into productive
whole.

Limitations of Training

Effectiveness of training program depends

upon the interest of the trainees, the
qualifications of the trainers, the
 environment in which employees operate
etc. Irrespective of this, training has the
following limitations.

• It cannot solve problems of faulty

organization. A poor organization structure
will create blocks to learning and tend to
prevent the translation of acquired
knowledge on skills into improved
performance.
• It cannot be a substitute for sound initial
selection and careful placement of
employees.
• It cannot increase learning potential. Training
may stimulate further use of inborn
capacities but it cannot create potentials.
• It cannot unerringly ensured increased
performance or greater efficiency. They are
not automatic and are controlled by factors
outside the scope of the training function.
• It cannot overcome the fact that forgetting is
easier and quicker than learning. It cannot
ensure continued use of newly acquired
 knowledge, skills or attitudes to overcome
forgetting.
• It cannot guarantee anyone learning anything.
Training can only provide the means for
learning to take place. If the trainee does not
want to learn, the chances are that he will
not learn.

Training Process

Each training program is a costly affair and

a time consuming process. Therefore,
training effectiveness is of paramount
importance and therefore should proceed
through a sequential process of step as
shown below.

Step 1: Organization Objective.

Training program should support the

continuous development of employee with
the organization objective in order to
address key competencies requirements of
the business.

Step 2: Training Needs Identification

It is important to determine what training is

needed and to make certain that the training
is based on reliable and identified training
requirements. It is an inquiry about the tasks
and skills need to accomplish a function or
job and to identify who are the learners.

Step 3: Determination of the training

strategy.

To determine the strategy to be used in a

accomplishing the training, gathering data
on which to base training objectives, the
deriving force behind the design approach to
training objectives etc.

Step 4: Preparing the Learners and Work

Environment.
It is necessary that work environment is
enabling, receptive and supportive so that
the learners is able to apply the knowledge
and skills learnt from training to actual work
place.

Step 5: Determination of training methods

and materials.

To determine training methods, tools and

timing appropriate for skills to be learned
and participating learners. While preparing
training manuals, the principles of learning
cycle must be kept in mind that is planning,
doing, reviewing and reflecting.

Step 6: Conducting training program

To conduct the actual training and monitor

the progress.

Step 7: Evaluation and Feed back

To gather feedback for updating or revising
the training program is crucial to the
effectiveness of the training program. This is
typically the most neglected phase of the
training program as the trainee and the
trainers breathe a sign of relief as the
training ends. However if this step is
correctly attended then better training
programs can be designed.

Age No of Percentage
Respondents
Below-20 05 10
20-30 20 40
30-40 15 30
40-50 05 10
Above-50 05 10
Total 50 100
 40
40

35

30
30

25

20
% of Respondent
15

10 10 10
10

0
Below 20yrs 20-30yrs 30-40yrs 40-50yrs above 50yrs

Table No-2

Sex No of Percentage
Respondents
Male 42 84
Female 08 16
Total 50 100
le No-3

Qualification No of Percentage
Respondents
SSLC 08 16
PUC 06 12
Graduation 20 40
Technicians 16 32
Total 50 100

The majority (40%) of the respondents are

graduates.

Department to which the Respondents

belong.

Table No-4

Department No of Percentage
Respondents
Administration 15 30
Production 30 60
Material 05 10
division
Total 50 100
Work Experience

Table No-5
Experience No of Percentage
Respondents
0-05 years 15 30
06-15 years 30 60
16-20 years 03 06
21 & above 02 04
Total 50 100
ority of the respondents (60%) had 06-15
years of service. This indicates that the
employee

Opinion about Training

Table No-6

Opinion No of Percentage
Respondents
a) It heightens 11 22
employee
morale
b) It helps in 09 18
reducing
dissatisfaction
c) Increases job 20 40
knowledge
d) Helps in 06 12
prevention of
accidents
e) Helps in 04 08
personal growth
Total 50 100
dents and 8% of the respondents said that
the training helps in personal growth.

How the Objectives of the Training

Program were conveyed to the Trainee.

Table No-7

Methodology No of Percentage
Respondents
a) Slide Show 09 18
b) Displayed on 22 44
the notice board
c) Instruction 15 30
sheets
d) Intranet 04 08
Total 50 100
Table No-8

Trainer No of Percentage
Respondents
Top 00 0
management
HR manager 05 10
Superior 35 70
Department 10 20
head
Total 50 100
ned by the department head and 10% of the
respondents were trained by the HR
manager. However the table shows that
nobody was trained by the Top
management.

How the Respondents were selected for

the Training program:

Table No-9
Selection No of Percentage
Procedure Respondents
On a random 04 08
basis
Recommended 07 14
by the HOD
Selected by 30 60
HRD/Personnel
department
Don’t know 09 18
Total 50 100
the 60% of the respondents were the people
who had no previous job experience before
joining Campco.

Scope of the Training program

Table No-10

Skills No of Percentage
Respondents
Technical 35 70
skills
Conceptual 2 04
skills
Interpersonal 13 26
skills
HR skills 00 0
Total 50 100
le No-11

Frequency No of Percentage
Respondents
Once till now 40 80
Once in 6 00 00
months
Once in a year 10 20
Not conducted 00 00
At all
Total 50 100
le No-12

Opinion No of Percentage
Regarding Respondents
Duration
7 days 15 30
15days 09 18
1month 16 32
3 months and 00 00
Above
Depending on 10 20
need
Total 50 100

Language No of Percentage
Respondents
Kannada 37 74
English 06 12
Hindi 07 14
Total 50 100
r training in Hindi and 12% had their
training in English.

Expectation from the training program

Table No-14

Expectations No of Percentage
Respondents
Putting the 03 06
learner to ease
To get closer 11 22
to the job
position
Giving the 36 72
Exact
knowledge
Total 50 100
respondents

Table No-15

Qualities No of Percentage
Respondents
Experienced 02 04
trainers were
called
Conducive 18 36
atmosphere
Good training 21 42
materials were
provided
Proper schedules 09 18
were maintained
Total 50 100
Table No-16

Methods No of Percentage
Respondents
On the Job 48 96
Off the Job 02 04
Total 50 100

Safety measures included in the training

program

Table No-17

Safety No of Percentage
measures Respondents
First-aid 29 58
Fire 15 30
Extinguisher
Vehicles 06 12
Handling
Total 50 100
le No-18
Yes/No No of Percentage
Respondents
Yes 38 76
No 12 24
Total 50 100
majority 76% of the respondents said that
personality development program is
necessary in the organization. While 24% of
the respondents said that a personality
development program is not required in the
organization.

Stress Relief Programs

Table No-19

Stress Relief No of Percentage

Programs Respondents
Yoga 04 08
Trips 04 08
Entertainment 42 84
programs
Total 50 100
le No-20

Changes felt No of Percentage

due to Respondents
training
Improved 18 36
Relationships
Minimized 03 06
resistance to
change
Increased the 07 14
efficiency and
effectiveness
Improved 22 44
product quality
Total 50 100
imized the resistance to change in the
organization.

Instruments used in the training program

attended by the respondents

Table No-21
100 Instruments
96 No of Percentage
80 Respondents
60 Visual aids 02 04
40 Games 00 00Respondents
% of

20
Interactive 13 26
0
sessions 4

None
Yes 35
No 70
Total 50 100
ondents.

Whether benefits of training justify the

training cost

Table No-22

Yes/No No of Percentage
Respondents
Yes 48 96
No 02 04
Total 50 100
s not justify the training cost.

Objectives that was predominantly

fulfilled in the training session
Table No-23

Objectives No of Percentage
Respondents
Increased 28 56
productivity
Effective 00 00
working of the
employees
Reduction in 12 24
wastage
Developing the 10 20
skills of the
employees
Total 50 100
le No-24

Yes/No No of Percentage
Respondents
Yes 26 52
No 24 48
Total 50 100
.
 Follow ups after the training

Table No-25

Follow ups No of Percentage

Respondents
Performance 15 30
Appraisal
Work sampling 08 16
Superior 11 22
Evaluation
Personal 16 32
assessment
Total 50 100

Rating No of Percentage
Respondents
Excellent 08 16
Very good 09 18
Good 20 40
Satisfactory 13 26
Total 50 100
 SUGGESTIONS

Based on the findings of the study, the

investigator has put forth the following
suggestions to the organization.

 The head of department need to play a key

role in explaining the importance and
necessity of training to his subordinates.
 The training faculties need to make adequate
use of the training aids available in the
organization.
 Training programs need to be more
interactive. The trainer should motivate the
trainee to participate in the proceedings.
 Selection of the training programs and
selection of the participants need to be
thoroughly evaluated on some
predetermined basis.
 The involvement of visual aids, games and
tale plays are to be stressed on during the
time of training as it gives more insights to
 the workers especially the less educated
ones and helps them to acquire interpersonal
skills and understand the concepts better.
 The skills of the employees must be developed
by imparting English speaking courses and
computer courses.
 Periodical training is very effective and so
should be encouraged in the organization.
 Since most of the employees are satisfied with
their job, the company can retain or enhance
job satisfaction by giving rewards, ensuring
recognition and providing opportunities for
their career development.
 Another measure for improving the
effectiveness of training programs is the
introduction of pre-training evaluation,
which creates awareness in the organization
and among the employees about the needs of
training.
 It can be suggested that in addition to the
appraisal made by the superiors, an
employee can also be appraised by his peers
and subordinates.
Thus the company can consider the above
suggestions to make its training programs
more effective. As a result good training will
lead to improved performance leading to
increased productivity and thus profit.

CONCLUSION

A meticulously planned and well

administered training and development
program would be instrumental in bringing
about positive changes in the employees and
thereby improve the efficiency of the
organization. Campco Ltd, Mangalore is
maintaining a good relationship with the
public. It also maintains a good relationship
with other organizations.
Campco Ltd is one of the organizations
that have realized the importance of human
resource and the need to train them. It
follows a training policy designed by a
highly effective HR department.
 Campco Ltd conducts a number
of training programs every year, with
innovations. Training programs have helped
in increasing the company’s productivity,
reduce accidents and take additional job
responsibilities and good industrial relations.
However, there is still scope for
improvement which the company should
seek to achieve. This can be done by
periodically evaluating and improving the
training programs. The study has given the
investigator, a practical exposure to the
company. It has given the knowledge of the
various functioning departments. It has also
taught the investigator to carry out the
research. Such a study would be useful in
case any future researches need to be
undertaken on this topic. The findings
arrived at as a part of the study would help
the company in planning or modifying their
training programs in future.
The investigator hopes that the
suggestions offered will be considered
 positively and implemented in the
organization. This would help the
organization to pave the way for growth at a
quicker pace. The company should strive for
excellence in the years to come.

BIBLIOGRAPHY

1.CAMPCO at a glance-Magazine of the

company.
2.Annual general meeting report of 2008
3.Other company manuals and journals
4. www.google.com

5. www.wikipedia.com

6. www.hrguru.com