CHAPTER I

INTRODUCTION AND DESIGN OF THE STUDY

INTRODUCTON
Organization refers to a set of people working together for an accomplishment of a
common objective. The roles and responsibilities are stated clearly without any
ambiguity. The positions occupied by different individuals are presented in the form
of organization chart. Organizational structure is essential for continuity of the mission,
co-ordinates and controls the business activities. Organization helps management to
perform its actives effectively, optimum use of technological improvement growth and
diversification, creatively, effective use of physical resources and Human Resource. And
thus organization is the process of:
Identifying and grouping the work to be performed.
Defining and delegating responsibility and authority.
Establishing the relationship for the purpose of enabling people to work.

PRINCIPLES OF ORGANIZATION
Principles mean the theoretical basis on which something is built up. The theoretical
basis is formulated from fundamental truth. Some of the important principles to be
followed for developing sound and efficient organizations are:

Principle of unity of objective

Principle of specification
Principle of co-ordination
Principle of unity of command
Principle of span of control
Principle of exception
Principle of flexibility
Principle of simplicity
Principle of communication
Principle of efficiency

TYPES OF BUSINESS

Business is an organization that uses economic resources or services to customers

in exchange for money or other goods and services. Business organization comes in
different types and forms. There are three types of business

SERVICE BUSINESS
A service type of business provides intangible products (products with no physical
form). Service type firms offer professional skills, expertise, advice, and other similar
products.
Examples of service business are: schools, repair shops, hair salons, banks, accounting
firms, and law firms.
MERCHANDISING BUSINESS
This type of business buys products at wholesale price and sells the same at retail
price. They are known as buy and sell business. They make profit by selling the
products at prices at higher than their purchase costs.
A merchandising business sells a product without changing its form. Examples are :
grocery stores, convenience stores, distributors, and other resellers.
MANUFACTURING BUSINESS
Unlike a merchandising business, a manufacturing business buys products with
the intention of using them as materials in making a new product. Thus, there is a
transformation of the products purchased.
A manufacturing business combines raw materials, labour, and factory overhead in its
production process. The manufactured goods will then be sold to customers.

FORMS OF BUSINESS ORGANIZATIONS

These are the basic forms of business ownership.

SOLE PROPRIETORSHIP
A sole proprietorship is a business owned by only one person. It is easy to
set-up and is the least costly among all forms of ownership. The owner faces
unlimited liability; meaning, the creating of the business may go after the personal
2

assets of the owner if the business cannot pay them. The sole proprietorship form
is usually adopted by small business entities.

PARTNERSHIP
A partnership is a business owned by two or more persons who contribute
resources into the entity. The partners divide the profits of the business among
themselves. In general partnerships, all partners have unlimited liability. In
limited partnerships, creditors cannot go after the personal assets of the limited
partners.

CORPORATION
A Corporation is a business organization that has a separate legal personality from
its owners. Ownership in a stock corporation is represented by shares of stock. The
owners (stockholders) enjoy limited liability but have limited involvement in the
companys operations. The Board of Directors, an elected group from the
stockholders, controls the activities of the corporation.
In addition to those basic forms of business ownership, these are some other types
of organizations that are common today:

LIMITED LIABILITY
Limited liability companies (LLCs) in the USA, are hybrid forms of business that
have characteristics of both a corporation and a partnership. An LLC is not
incorporated; hence, it is not considered a corporation. The owners enjoy limited
liability like in a corporation. An LLC may elect to be taxed as a sole proprietorship, a
partnership or cooperation.

COOPERATIVE

A cooperative is a business organization owned by a group of individuals and is

operated for their mutual benefit. The persons making up the group are called members.
Cooperatives may be incorporated or unincorporated.
Some examples of cooperatives are: water and electricity (utility) cooperative
banking, credit unions, and housing cooperatives.
REQUISITES OF A GOOD ORGANIZATION
The different characteristics of a good organization are as follows
The objectives are to be clear and well defined and the organization must have a
capacity to achieve it.
All activities therein must be implemented easily, effectively and properly

coordinated.
The communication system within the organization must be effective.
The span of control at all levels must be reasonable.
There should be provisions for further expansion, whenever needed.
All activities and functions should follow defined procedures.
The organization must be such that it promotes the morality of employees.
There should be a proper diversion of authority and responsibility.

IMPORTANCE OF AN ORGANIZATION
Various Significances of the organization are as follows.
It ensures optimum use of human resources
It establishes person with different interests skills, knowledge and viewpoints.
It simulates creativity
A sound and well-conceived organization structure is the source of creativity thinking and
initiation of new ideas.
Use of improved technology
A good organization provides for optimum co-ordination in the enterprise.
Executive development

The pattern of an organization structure has use of technological improvements.

Departments perform their functions in a closely related manner strong influence on the
development of executives.
It ensures co-operations among workers
A good organization promotes mutual goodwill and cooperation among workers also.

OBEJCTIVES OF THE STUDY

To understand the origin and growth of pipes manufacturing industry.

To study the history and profile of the Jaya Hume Pipes (P) Ltd.
To familiarize with the organizational structure of the study unit
To know the various functional departments of the Jaya Hume Pipes (P) Ltd.
To perform the SWOT analysis of the company
To offer the valid suggestions and recommendations based on the study

SCOPE OF THE STUDY

This study is to familiarize with the industry and attain a first-hand experience of
the functioning of the organization. It provides a chance to interact with the different
departments and authorities in the organization, and also enable to know how the theory
learned are practically applied in an organization. The scope of this study is only to
familiarize with the industry and company chosen for the study.
DESIGN OF THE STUDY
This is an organizational study which facilitates the researcher in familiarizing
him with the various functional departments and their day today activities. For this
organizational study has employed the observation method along with informal interview
with the management executives in the various departments and in the board also. In
addition to these this study is also based on the work assigned by the management and
carried out by the researcher in the company namely:

DATA COLLECTION

Data needed for the present study have been collected primarily through
contacting personally the concerned officials of the company by way of meeting, and
informal interview. In addition to such data, further information and required data have
been collected from the companys official records such as annual reports, related books
and official websites of the company.

FRAMEWORK OF ANALYSIS
In order to carry out this present study, the researcher has performed the SWOT
analysis (strength, weakness, opportunity, threats) for the Jaya Hume Pipes (P) Ltd,
Guntur. The various departments in the company namely Production, Marketing and
Sales, Finance, Human Resources and Research & Development have been observed and
studied in detail in order to familiarize with various activities of the different functional
departments of the company under study.

LIMITATIONS OF THE STUDY

The present study is restricted to the familiarization of the organization.
Information in not given properly about the marketing department.
The company is not allowing in their production department.

SCHEME OF CHAPTERISATION
The report of the present study has been branched off into seven chapters. The
details of the same are as follows.
Chapter I

Introduction and Design of the Study

Chapter II

Profile of Pipes Manufacturing Industry

Chapter III

Profile of the Jaya Hume Pipes (P) Ltd

Chapter IV

organization structure and Departments of Jaya Hume pipes (P) Ltd

Chapter V

Swot Analysis and Competitor Analysis of Jaya Hume Pipes (P) Ltd

Chapter VI

Summary of Findings and Suggestions