MYMUL

CHAPTER 1
INTRODUCTION
Mysore Milk Union limited (MYMUL) IS a co-operative Milk Union fully
owned and managed by milk producers of Mysore and Chamarajnagar districts of
Karnataka State. Since its inception 1987, the union is constantly striving to further
the dairy development and marketing activities in its milk shed area.
Importance of Milk:
Milk is nature's ideal food for infants and growing children. The importance of
milk in our diet has been recognized since Vedic times, and all modern research has
only supported and reinforced this view. In fact, milk is now considered not only
desirable but essential from the time the child is born-. The baby is recommended to
.be breast-fed until it is weaned and thereafter given cow/buffalo/goat/sheep or similar
domesticated mammal's milk till he or she reaches 12 years of age.
Milk is an almost ideal food. It has high nutritive value. It supplies body
building proteins, bone-forming minerals and health-giving vitamins and furnishes
energy-giving lactose and milk fat. Besides supplying certain essential fatty acids, it
contains the above nutrients in an easily digestible and assailable form. AH these
properties make milk an important food for pregnant mothers, growing children,
adolescents, adults, invalids, convalescents and patients alike.
The National Institute of Nutrition has recommended a minimum of 300 g daily
intake of milk for children between 1-3 years of age and 250 g for those between 1012 years, if they are vegetarian, and 250 g and 200 g for the same age groups of nonvegetarian children. In our country, most such "adults consume milk only as whiteners
for tea and coffee, some dahi or buttermilk.

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MYMUL

OVERVIEW OF INDIAN DAIRY INDUSTRY

Milk production is important in India, as milk is one of the main sources of
protein and calcium for a large vegetarian population. Dairying provides a livelihood
for more than 72 million Indian farmers as well as an additional income for a large
number of rural families. It is also a means for women to participate in the economic
activities in the rural areas. In 1999 India became the largest producer of milk
primarily due to the efforts of the co-operative movement initiated by the National
Dairy Development Board (NDDB). Currently, there are 70,000 villages' co-operative
societies that is spread over 200 district? of 22 states. Each state has their separate cooperative dairy federations and each, district have their own district milk producers
union.
Total cattle population in India stood 313 million on October 2000, which
counts as the largest population of cattle in the world. Most of the cattle here are milk
cows and milk buffaloes. The milk production in India accounts for more than 13% of
the total world output and 57%of the total Asia's production. The top five milk
producing nation is: India, USA, Russia, Germany and France.
Indian dairy industry is expanding in an amazing pace with a lot of
opportunities ahead. Today India is one of the top most milk producing nation with
least cost. So, it has got an advantage of its low cost and high milk production in the
country. Besides that, the urban market for milk and milk products is rising at
whooping 33% per annum.

MYMUL

OBJECTIVES OF THE STUDY:

> To be familiar with the organisational environment.
> To know the organisational structure of the company.
> To get a practical exposure to various functional departments of MYMUL.
> To know the products prepared by the MYMUL
SCOPE OF THE STUDY
MYMUL is familiar with the environment with neat, clean, always aware about
performance of the employee in an organisation. MYMUL is bound to get nationwide
best place in milk production. In order to achieve the same it follows some of the
principles they are as follows.
> Individual approach in decision making
> To get best use of modem technology.
> To provide the best service to the customers.

LIMITATION OF THE STUDY

MYMUL has some of the limitation they are as follows >Time constraints
> Long distance
> Employee were not co-operating with us
> Secret Information like financial terms, employee's salaries were not
disclosing;

MYMUL

METROLOGY
MYMUL report was formed through Observations, field visits in a separate
Departments, primary data through information provided by the manager directly,
Secondary data through company records, Internet like Google search,, encloypedia.
The methodology adopted for the study is as follows:Sources of Data
Data was collected based on two sources:

Primary Data.

Secondary Data.

Primary Data:
The primary data is to understand the significance and answer to their
reliability. In this method rate and reliability is higher. In addition to this the data was
collected through observation method, personal interviews and question schedule in
the place where questionnaire was not workable.
Secondary Data
Secondary data is collected through the documents provided by the all the
departments such as policy decisions, reports regarding suggestions, schemes, etc.
Data is also gathered from the books of various authors, magazines, journals, annual
reports, broachers, company manual, etc.
However in this study most of the information gathered was from the
Secondary data that through books, journals, magazines, annual reports, etc. Hence
secondary data makes the main source for the data collected.

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CHAPTER 2
INDUSTRY PROFILE
INDUSTRIAL BACKGROUND
Dairying prior to operation flood:
The earliest attempts of dairy development can be traced back to British rule,
when the Defense Department established military dairy farms to ensure the supply of
milk and butter to the colonial army. The first of these farms was set up in Allahabad
in 1913; subsequent facilities were established at Bangalore, Ootacamund and Karnal.
These farms were well maintained. As animals were reared under farm, conditions,
some herd improvement was made using artificial insemination. This approach did not
have any impact on the supply of milk to urban consumers, which was of major
concern to civilian authorities but less important to the military. With the growth of
the population in urban areas, consumers had to depend on milk vendors who kept
cattle in these areas and sold milk, often door-to-door. As a result several cattle sheds
came into existence in different cities.
To some extent, the Second World War gave impetus to private, dairies with
modestly modernized processing facilities. In the cities like Bombay, Calcutta,
Madras, and Delhi and in some large townships, processed milk, table butter and icecream were available. Poison's, Kelventers and the Express Dairy were some of the
pioneer urban processing dairies. These dairies were not concerned with improving
the breed of milk animals but were content with contracting milk supplies through
middlemen or their own staff. Milk producers as well as consumers were exploited to
a large extent. Despite modernized processing facilities, dairying remained
unorganized.

MYMUL
With the initiation of India's first five-year plan in 1951, modernisation of the
dairy industry became a priority of the government. The goal was to provide hygienic
milk to the country's growing urban-population.-Initial government action in this
regard consisted pT organizing "milk schemes" in large cities. To stimulate milk
productipnflhe government implemented the Integrated Cattle Development Project
(ICDP) and the Key Village Scheme (KVS), among other similar programmes. In the
absence of a stable and remunerative market for milk producers, however, milk
production remained more or less stagnant.
During the 1960s, various state governments tried out different strategies to
-develop dairying, including establishing dairies run by their own departments, setting
up cattle colonies in urban areas and organizing milk schemes. Almost invariably,
dairy processing plants were built in cities rather than in the milk sheds where milk
was produced. This urban orientation to milk production led to the establishment of
cattle colonies in Bombay, Calcutta and madras. These government projects had
extreme difficulties in organizing rural Milk procurement and running milk schemes
economically, yet none concentrated on creating an organized system for procurement
of milk, which was left to contractors and middlemen. Milk's perishable nature and
relative scarcity gave the milk vendors leverage, which they used to considerable
advantage. This left government-run-dairy plants-to use large quantities of relatively
cheap, commercially imported milk powder.
All these factors combined left Indian dairying in a most unsatisfactory lowlevel equilibrium. The establishment and prevalence of cattle colonies emerged as a
curse for dairying in the rural hinterland as it resulted in a major genetic drain on the
rural milk animal population, which would never be replaced. City dairy colonies also
contributed to environmental degradation, while the rural producer saw little reason to
increase production.

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Operation flood:
The strategy for organized dairy development in India was actually onceived in
the late 1960s, within a few years after the National Dairy Development Board
("NDDB) was founded in 1965. It rested on the Operation Flood programme, which
was conceived by the NDDB and endorsed by the government. Operation Flood is a
unique approach to dairy development. During the 1970s, dairy commodity surpluses
were build imp in Europe. The chairman of NDDB saw those surpluses as both a
threat-ana an opportunity. The threat was massive exports of low-cost dairy products
of India, which had it occurred, would have told the death-knell for India's staggering.
Dairy industry. The large quantities that. India was- already importing had
eroded domestic markets to the point where dairying was not viable. The opportunity,
on the other hand, was built into the Operation Flood strategy. Designed basically as a
marketing project, Operation Flood recognized the potential of the European surpluses
as an investment in the modernization of India's dairy industry. With the assistance of
the World Food Programme, food aid in the form of milk powder and butter oil was
obtained from the countries of the European Economic Community (EEC) to finance
the programme.
Operation Flood is a programme designed to develop dairying by replicating
the An and Model for dairy development, which has stood the test of time for almost
half a century. The first phase of Operation Flood was launched in 1970 following an
agreement with the World Food Programme, which undertook to provide as aid
126000 tonnes of skim milk powder and 42000 tonnes of butter oil to finance the
programme.
The programme involved organizing daiiy co-operatives at the village level;
creating the physical and institutional infrastructure for milk procurement, processing,
marketing and production enhancement services at the union level; and establishing

MYMUL
dairies in India's major metropolitan centers. The main thrust was to set up dairy cooperatives in India's best milk sheds, linking them with the four main cities of
Bombay, Calcutta, Delhi and Madras, in which a commanding share of the milk
market was to be captured. In achieving that goal, the first phase of Operation Flood
laid the foundation for India's modern dairy industry, an industry that would ultimately
meet the country's need for milk and milk products.
The second phase of the programme was implemented between 1981 and 1985.
Designed to build on the foundation laid in the first phase, it integrated the Indian
Dairy Association-assisted dairy development projects being implemented in some
Indian states into the overall programme.
The current third phase of Operation Flood aims at ensuring that the cooperative institutions become self-sustaining. The programme envisages substantial
expansion of the dairy processing and the marketing facilities; an extended milk
procurement infrastructure; increased outreach of production enhancement activities
and professionalization of management in the dairy institutions.
National Dairy Development Board (NDDB)
National Dairy Development Board was established inl 965 under the Societies
Registration Act, the Charitable Trust Act and the Public Trust Act, to fill the vacuum
of national-level organization to replicate An and Model dairy cooperatives
throughout the country and to make available multidisciplinary, professional dairy
expertise to dairies in the public and co-operative sectors. During its initial stages,
NDDB was assisted financially by the Government of India, the Danish Government
and by AMUL. It also received aid from the United Nations Children's Fund
(UNICEF) in the form of teaching material and equipment.
In 1969, when the Government of India approved the Operation Flood
programme and Its financing through the monetization of World Food Programme-

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gifted commodities, it was found that the statutes under which NDDB was registered
did not provide for handling of government funds. Therefore, in 1970 the government
established a public-sector company, the Indian Dairy Corporation. The IDC was
given responsibility for receiving the project's donated commodities; testing their
quality; their storage and transfer to user dairies and receiving the dairy payments.
Thus it served as finance-cum-promotion entity while the entire Operation Flood
technical support was provided by NDDB. To avoid any duplication in their activities
or overlap of functions, the IDC and NDDB were eventually merged into a newly
constituted NDDB by an. Act of Parliament passed in October 1987.

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KARNATAKA MILK FEDERATION

Karnataka Milk Federation (KMF) was instituted in 1984, by federating the 13
milk unions in the state and thus forming the state level apex organization. As a cooperative apex body of the state of Karnataka, it represents dairy fanners' organization
and also implements dairy development activities to achieve the following objectives:

Provides assured and remunerative market for the milk produced by the fanner
menders.
Provide quality milk to urban consumers.
To build village level institutions in co-operative sectors to manage the dairy
activities.
To ensure provision of milk production inputs, processing

facilities

and

dissemination of know-how.
To facilitate rural development by providing opportunities for self employment
at village level, preventing migration to urban areas, introducing cash economy
and opportunity for steady income.

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List of Co-operative milk producers under Karnataka Milk Federation :

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MYMUL
COMPANY PROFILE
INTRODUCTION:

MYSORE DAIRY, a unit of Mysore - Chamarajanagar District Co-Operative

milk producers Union Limited (MYMUL) registered under Karnataka co-operative act
has been commissioned in the year 1976. It is fully owned and managed by Mysore
and Chamarajanagar districts of Karnataka state.
The philosophy of this co-operative milk producer's organisation is to eliminate
middlemen and organize institutions owned and managed by milk producers, by
employing professionals. Achieve economies of scale of rural milk producers by
ensuring maximum returns and at the same time providing wholesome milk at
responsible price to urban consumers. Ultimately, the complex network of cooperative
organisation should build a strong bridge between masses of rural producers and
millions of urban consumers and achieve a socio-economic revolution in the village
community.
Background and inception of the company
Under the World Bank aided Karnataka Dairy Development Projects, the
activities on Dairy Development were taken up in the year 1975. The Mysore Coop
Milk Producers Societies Union Ltd was established on 23.11.1976, having the
jurisdiction extended to the entire Mysore District and Five Taluk of Mandya District.
The Union undertook the work of organization of Milk Co-operatives in 'AMUL
Pattern' with the main objective of socio-economic reformation of the fanners in the
rural areas through Dairying as main subsidiary occupation.
Later the Union was bifurcated into Mysore and Mandya District Cooperative
Milk Producers Societies-Union Ltd from 01.04.1987. Consequent to the bifurcation

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MYMUL

of Mysore District into Mysore and Chamarajnagar Districts, this Union is renamed as
Mysore- Chamarajnagar District Coop Milk Producers Societies Union Ltd.
Main functions of this union:
1.

To provide remunerative market for the milk produced by the rural fanners

2.
3.

throughout the year irrespective of the quantity supplied by them.

First Aid facility at the Society level.
Emergency visits to treat the animals on a nominal fee to be collected from the

4.
5.
6.
7.
8.
9.
10.

producer.
Cross breeding facility through Artificial Insemination service.
Supply of balanced Cattle Feed to the fanners of the Coop Societies at
subsidized rates.
Technical guidance and supply of root slips/seeds for Fodder cultivation by the
members of the Coop Societies
Effective supervision/extension services through field executives of the Union,
Intensive Co-Operative education programmes to the women members of the
Dairy Coop Societies through Coop Development Programme.
Mysore Dairy with the capacity of 10 TLPD was started in the year 1965 under

the control of the Department of Animal Husbandry and Veterinary Services of

Karnataka State, which was transfened to Karnataka Dairy Development Corporation
in the year 1974. The capacity was expanded to 60 TLPD in 1980 and transferred to
the Karnataka Milk Federation in 1984. The capacity was expanded to 100 TLPD
under the Operation Flood II and further expanded to 150 TLPD under OF III
Programme. As-per the Government policy the Dairy and its Chilling Centers were
handed over to MYMUL on 01.06.1987.

VISION AND MISSION:

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MYMUL
Vision:
The vision of MYMUL is to provide quality milk products to the consumers
and emerge as one of the top milk union of the co-operative dairy industry in the
country.
Mission:
MYMUL is committed to provide maximum possible price for the milk
supplied by its members and provide necessary inputs to enhance milk production
while ensuring economic viability of the union.
Quality policy:
MYMUL is committed to producer's welfare through customers delight by
adopting continuous improvement and ensure pure and hygienic milk and milk
products.
Values:

Honesty

Discipline

Quality

Cost control

Co-operation

Team spirit

Service motive

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MYMUL

To provide a guaranteed remunerative milk market round the year for all the
marketable surplus of member producers in their villages.
To procure milk, process into good quality milk/milk products and market it
most economically and efficiently to give maximum overall net-returns to the
producers and general satisfaction to the consumers.
To provide essential technical inputs and services to the producers at their doorsteps in an economic and efficient manner and also in a way most acceptable to
them.
To build village level institutions co-operative sector to manage the dairy
activities.

In order to fulfill these objectives, the union is constantly engaged in working

towards improvements of business as well as the welfare of the producers. This has
resulted in greater performance on commercial as well as in institutional fronts

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MYSORE Dairy, complex facts at a Glance.

1. General
Area of the Dairy

45 acres

Handling capacity

2, 74,000 LPD

Estimated cost of Building :

2.89crores

2 .Milk procurement

Dairy

co-operative

societies: 895

functioning
Dairy societies registered

936

Procurement routes

71

Chilling centers

Districts covered

Taluks covered

11

Villages covered

2005

Number of employees

374

Distribution routes

35

Districts covered

Selling agents in urban

374

Selling agents in rural

235

3 Milk Distributions

Milk parlors

48

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AREA OF OPERATION
MYMUL not only operates in Mysore districts, but, also operates in some parts
of Chamarajanagar District. It operates 502 distribution centers, concerning all the
agents besides, there are 2 milk parlor maintained by the dairy.

The area of operation is as under:

Mysore District

Mysore Tq.
T.Narasipura Tq.
Nanjanagudu Tq.
H.D.Kote Tq.
Hunsur Tq.
Piriapatana Tq.
K.R.NagarTq.

Chamrajanagar District

Chamrajanagar Tq.
Gundlupete Tq.

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The major competitors of the MYMUL are as follows:

Jersey
Dodla
Arogya
Gomatha
Thirumala
Swastika
Loose milk vendors
Heritage

"

JERSEY
1.
2.

Plant at Andhra Pradesh

Sale in Union Jurisdiction 45 TLPD (Thousands liter per day) (100 TLPD in

3.
4.

City)
M.R.P. rate Rs. 16.00 per liters- seller rate Rs. 15.50 to based on quantity.
Commission ranges from 40-70 per liter (good incentive scheme) Quality

5.
6.
7.

perception-thick and longer shelf life.

Flexible distribution-retailers, wholesalers or anyone willing to sell.
Payments cash and carry or while collecting empty crates on return trip.
Availability mostly retail outlets and now capturing institutional sales by any

8.

means.
Vigorous advertisement especially at the point of purchase.

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MYMUL

DODLA:

Plant at Nellore.
Availability of raw material at cheaper rate.
Sale in union Jurisdiction 18 TLPD (Thousands liter per day in city)
M.R.P rates Rs. 13.00 per liter- seller rate 12.50.
Commission ranges from paisa 40-50
Quality perception-thick and long shelf life.
Flexible distribution-retailers or anyone willing to sell
Returns will be accepted.
Payment- cash and carry or which collecting empty on return trip.
Channel members are playing critical role in boosting the sales.
Packing is attractive with multicolor pricing on sachets
Consumers perceives that milk is good for making curds.

AROGYA:

Plant at Bangalore
Sale in union jurisdiction 10 TLPD (Thousands liter per day) (25 TLPD in
cities)
MRP Rates Rs. 18.00 per liter.
Commission ranges from 60 paisa per liter.
Availability mostly retail outlets like bakeries. Condiments and departmental
stores
Packing2 is attractive with multicolor printing on sachets.
Concentrating on value added products and not much on milk.

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LOOSE MILK SALE

Market share is next to Nandini.

Loose milk from Erode and local cattle rears
Sale in union jurisdiction 140 TLPD.
MRP Rate Rs. 7.00 to Rs. 12.00 per liter.
Majority of the milk is heavily adulterated and no uniform quality.
Sales from 50ml and above.

Heritage

Plant at
Sale union jurisdiction from 12 TLPD (30 litters TLPD )
MRP Rates is RS 20 per liter
More contents in fat than any other milk competitors

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INFRASTRUCTURAL FACILITIES

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MYMUL

MYMUL has better infrastructural facilities which makes their production process and
Business more easier, it consists of;
I. MILK PROCUREMENT
Milk collection from fanners.
Dairy co-operative society.
Bulk milk products.
II. TRANSPORTATION
They have procurement group contract vehicles.
Milk Tankers.
III. MILK PROCESSING

Raw milk reception dock

Cream separators *Milk pastures * Cream pastures
Stored tanks
Electronic milk tester and milk scan

IV. PACKING

Milk packing machine

Curd packing machine
Lassie, masala majjigc packing machine
Flavored milk packing machine
Ghee packing machine

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V. ENGINEERING

Reformation equipments
Boiler equipment
Effluent treatment plants
Electronic generation

VI. MARKETING
a. Distribution network
Agents
Parlors
Depots
Franchise
b. Distribution Transport
Trucks
Goods auto
Mobile
AWARD
MYMUL has got two awards they are
1. ISO 90001-2000
2. National Energy Conservation award from resident of India in 2005.

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MILESTONES:

1955: First Dairy in Karnataka at Kodagu.

1965: Govt. Dairy, Mysore started with 10 TLPD capacities.
1974: Karnataka Dairy Development Corporation born.
1975: Primary Dairy Coop Societies commissioned.
1975: Govt. Dairies transferred to KDDC.
1976: Mysore Coop Milk Producers Societies Union started.
1980: Processing capacity of Mysore Dairy expanded to 60 TLPD.
1983: Corporate brand name 'NANDINF came into effect.
1984: KDDC transformed to KMF.
1987: Bifurcation of Mysore Union into Mysore & Mandya District Unions.
1988: Newly expanded 60 TLPD capacities CC at Chamarajanagar.
1988: Training centre, Mysore Tianded over to MYMUL.
1993: Cluster AI centers started in MYMUL and first time in Karnataka.
1993: IBP -prepared^ at MYMUL for the first time in Karnataka,
1998; Kollegala Chilling Centre commissioned.
1998: 10 TL capacities Liquid Nitrogen Storage Tank erected.
1999: 'NANDINI SALES DEPOT started at Chamarajanagar,
1999: Planted trees in 10 acres land under forestry.
1999: First place at national level in construction of Smokeless Ovens.
2001: Production of Mysore Pak started.
2002: Adopted 'Mnemonic Symbol1 through NDDB.
2003: Released Full Cream Milk in 500 ml and Toned Milk in 250 ml packets.

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EAST WEST COLLEGE OF MANAGEMENT, BANGALORE 22

2004: 3 numbers each BMC's started in Gundlupete and KR Nagar taluks.
2004; MYMUL Raitha Kalyana Trust started.
2005: ISO 9001-2000 Certification obtained tlirough TUV Rhineland.
2005: For the first time received the national award for Energy Conservation

Award from Dr. A.P.J. Abdul Kalam

2006: Released ghee to market in 50 ml, 100 ml packets.
2006: Ghee sales in pet jars at Kerala started.
2006: An Auditorium at Chamrajanagar CC is inaugurated and named as
Dr.Rajkumar.
. - - ..
2007: Prestigious ISO 9001-2000 Certificate is renewed.
2007: Received the National and State award for Energy Conservation Award.
2007: Released 5 Lit Toned milk packet and lOOg packet containing 10 No of
10 peda.

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PRODUCT PROF1L
MYMUL manufactures the following products

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MYMXJL, Milk Union manufacture

a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.

TM: Toned Milk

STD: Standardized Milk
FCM: Full Creamed Milk
DTM: Double Toned Milk
HSTD: Homogeneous Standard Milk
Curds
Ghcc
Peda
Mysore pak
Lassie
Masala Majijge
Flavored Milk

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NANDINI TONED MILK

Karnataka's most favorite milk. Nandini Toned Milk, pure milk containing
3.1%fat and 8.5% solid not fat. Available in 500 ml and one liter
NANDINI FULL CREM MILK
Full Milk; contain 6.1% far and 9% solid not fat. Rich creamier and tasted
milk, Ideal for preparing homemade sweets and savories. Available in 500ml.

NANDINI HOMOGENISED TONED MILK

Nandini homogenized toned milk is pure milk, which is homogenized and
Pasteurized consistent right through. Available in 500ml packs.

NANDINI CURD
Nandini curd made from pure milk, it is thick and delicious. Giving you all the
goodness of homemade curds. Available in 20Ggms and 500gms sachet.

NANDINI STANDARDISED MILK

This milk containing 4.6% fat and 8.5% solid not fat Available in'500mlPack.

NANDINI GHEE
A taste of purity, Nandini ghee made from pure butter it is fresh and pure with a
delicious flavour, hygienically manufactured and packed in a special pack to remain
the goodness of pure ghee. Shelf life of six months of ambient temperatures. Available
in 200ml, 500ml, 100ml, sachets andl5kgs tins.

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MYMUL
NANDINI PEDA
No matter what you are celebrating Nandini Peda from delicious treat for the
family made from Pure milk, store at room temperature approximately seven days.
Available in 50 grams for Pack containing 10 pieces each.
NANDINI MYSORE PAK
Fresh and Tasty, Nandini Mysore Pak is made from high quality Bengal gram,
Nandini Ghee and sugarcane. Available in 250grams and 500grams. PP container
shrink packed to preserve freshness. Advised to consume fresh to enjoy its excellent
taste.
SWEET LASSIE
Sterilized flavored milk. Nutritious and healthy milk and an all season
wholesome drink available in different flavors.
NANDINI FLAVOURED MILK
Sterilized flavored milk. Nutritious and healthy milk and an all season
wholesome drink available in 5 different flavor pineapple, rose, bad am, pista and
natural orange.
MASALA MAJJIGE
It is also one of the drinks available from dairy. It should be prepared with
masala ingredients.
BAD AM BURFI
Bad am burfi is a delicious treat made up of milk and it can be stored at room
temperature.
CASHEW BURFI
Fresh and tasty cashew Burfi is made from cashews, Nandini ghee, and sugar
milk. It is a Delicious way to relish a sweet movement.

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CHAPTER 3

ORGANISATIONAL CLIMATE SUARY

INTRODUCTION
The study of organizational climate gained lot of significance due to its impact
on [employee satisfaction and productivity. Organizational climate is the human
environment within which an organization's employees do their work.
Organizational Climate cannot be touched or seen but is experienced by people
working in an organization. Organizational Climate is to an. Organization what
personality is to a person It conveys that impressions people have of organizational
internal environ merit. The climate of an. organization's viewed from a; total system
perspective. While there may be difference in climates within subsystems, they will be
integrated to a certain extent to denote over all organizational climates.
SIGNIFICANCE OF ORGANISATIONAL CLIMATE
The study of Organizational Climate is gaining lot of significance in the light of
the following reasons:
Constraint System: Organizational Climate places constraints upon the
individual's freedom of choice this has both the positive and negative sense. Providing
information to the employees about what kind of behavior will be rewarded, punished
or ignored can do this. Thus it provides sources of rewards and punishment. Further,
the varying degrees of rewards and punishments can influence behavior. Such a
4

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MYMUL

constraint system would influence the behavior of those people who are most
interested in those specific values, which are assigned to different behavioral
outcomes.
Evaluation of Self and others : The elements of organizational climate may
affect behavior through evaluation of self and others. In this evaluation process both
physiological and psychological variables will be as vacated. Thus Organizational
Climate helps to evaluate Self and Others.
Helps the individual to form a Perception : Organizational factors influence the
behavior by helping the individual in forming a perception of the organization. The

perception then influences behavior.

Therefore, there is a need to understand the various dimensions of
organizational climate. These enables the organization to attract and keep people who
fit into the climate, so that its patterns are to some extent perpetuated. Employees of
the organization can expect certain rewards, satisfaction and frustration by properly
perceiving the organizational climate.
DIMENSIONS OF ORGANZATIONAL CLIMATE
In our previous discussion we have stated that organizational climate is a muiti
dimensional concept. Now we shall discuss the major dimensions of organizational
Climate are.
Dominant Orientation . Dominant orientation of the organization is an
important determinant of climate. It is the major concern of its members. It shows the
Members Orientation to the existing rules and regulations. If the dominant orientation
is to adhere to established rules and regulations, it indicates the control orientation. On

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the other hand, if the orientation is to produce excellence the climate is characterized
by achievement orientation.
Inter-persona! relations : Interpersonal relations, which are reflected in the form
of the way informal organizations formed and operated. Informal organizations, many
times benefit the organizations. Sometimes, they also result in goal displacement.
Individual Autonomy : Individual Autonomy and freedom experienced at the
work place. If the individual employees are given sufficient freedom to work and
exercise authority, it may result in greater efficiency in operations. This autonomy will
reduce the burden of higher level executives.
Organizational Control System : The organizational control systems talk about
the degree of control on the subordinates. These controls could be rigid or flexible.
Rigid control will lead to impersonal or bureaucratic atmosphere in the organization.
There will be minimum scope for self regulation.
Organizational Structure : The organizational structure serves the basis of inter
personal relations between superiors and subordinates. It clearly states that who is
responsible to whom and who is to direct them. This structure could be, centralized or
decentralized, mechanistic or organic structure. A decentralized and organic structure
could result in greater participation from subordinates compared to centralized and
mechanistic structures.
Management Orientation towards employees : The dominant style of managers
will also have impact on the climate of organization. This style could be
Concern for production (Task Orientation-or Concern for employees
(Relationship Orientation). In Task Orientation leaders will be autocratic.
Employees obey out of fear of punishment. This may result in low morale.

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On the other hand. Relationship Orientation, results in considerate and
supportive climate. This may result in team spirit because the needs and
aspirations of the workers will be given due importance.
Reward and Punishment System : Yet an other component in organizational
climate is the reward and punishment system. It could be based on
Merit (performance) or Seniority based. The reward system based on
performance could result in an atmosphere of competition and greater
productivity.
Communication System : The communication system of the organization will
also affect the organizational climate. The flow of information, its direction, its
dispersement and its types are all important determinants. A good
communication system encourages subordinates to express their ideas,
suggestions and reactions. When this is blocked it results greater frustration.
Conflict tolerance and Conflict Management: In every organization, there will
be inter-group and intra-group conflicts. The organizational climate depends
upon how effectively these conflicts are managed. If they are managed
effectively, there will be an atmosphere of co-operation in the organization,
otherwise, there will be atmosphere of distrust and low morale.
Mutual trust and confidence : Another important dimension is the amount of
mutual trust and confidence enjoyed between employer and employee. An
atmosphere of suspicion results in low morale and negative climate where
employees will not be in a position to give their best.
Risk-taking and the environment: How members respond to risk and whose
help are sought in situations involving risks are important any organization. If
the individuals feel free to try out without any fear they will not hesitate in
taking risks. Such an atmosphere encourages innovation.

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Since the above dimensions are not mutually exclusive, they do overlap each other.
The way in which these different dimensions operate an organization indicates the
underlying philosophy of the management.
FACTORS AFFECTING ORGANISATIONAL CLIMATE
The Climate of an organization is influenced by a host of factors. Lawrence
James and Allan Jones stated that Organizational Context, Organizational structure,
Process, Physical environment, System Values and Norms influence the climate of an
organization. According to Latin and Stringer the important factors are Organizational
structure, Individual responsibility, Rewards, Risk and risk taking., Warmth and
support, and Tolerance and conflict. Schneider and Barletta pointed out that
Management support, Management structure, Concern for new employees, Interagency conflict, Agent dependence, and the General satisfaction affect the
organizational Climate. Katz indicated that Rules Orientation, The nurturance of
subordinates, Closeness of supervision, Universalism, and Promotion-achievement
orientation affect the organizational climate.
Let us discuss some of the factors that influence the climate of an organization in
detail:
Organizational Context : Organizational Climate is being influenced by
contextual factors like the philosophy of management which is vividly
manifested in the form of rules and regulations, and policies. Besides the
reactions of the associations of employees and the degree to which they agree
with management's philosophy is critical to the development of a favorable
climate. If management is able to match employees' goals to organizational
goals, it is most likely to put- a positive influence on climate. The
management's attitude towards employees is indeed a major determinant to the
overall organizational climate.
Organization Structure : The structure of the organization is one of the ways
through which the philosophy of the management is manifested. The Structure

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of an organization is a framework within which the formal relationships
namely, authority and responsibility exist. This structure serves as the basis of
inter-personal relationships between the superiors and the subordinates and the
peers (people of same . rank in the organization). The formal structure could be
a centralized one or decentralized one. This structure again depends, among
others, the philosophy of management. The centralized structure or
decentralized structure, within the given framework of the system affects the
climate of the organization. A centralized structure results in greater degree of
consistency in decision-making, more control and less participation. These will
have impact on job satisfaction, absenteeism, productivity and others. A
decentralized structure creates a climate of participation, sense of
belongingness. This in turn will have positive impact on job satisfaction,
absenteeism and others.
Organizational Process : Every organization achieves its objectives through
processes of communication, motivation, leadership and decision making. In
these processes, the relationship between superior and subordinate are very
important. For example, two way communication, positive motivation,
considerate leadership and others will affect the climate of the organization.
Organizational Physical Environment: The environment of the organization
will have its impact on the climate of the organization. The environmental
factors include the external environment, size of the organization, location of
the building, weather, internal working conditions, loud and intermittent noise
and others. An employee working in a relatively quiet, clean, and safe
environment will probably have a more favorable perception of the
organizational climate than one who works in a noisy, dirty and dangerous
environment. It is obvious that many factors contributing to
external work environment affect the climate of an organization and
consequently affect the level of job satisfaction.

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Systems, Values and Norms: Every organization has a formal value system,
which is communicated through its policies, rules and regulations etc., every
organization has a distinctive set of values, spoken and unspoken, which
govern the way people interact with one another. People who are working in
these organizations will have a pretty good idea of what the culture at large
considers important. Many of these value standards stem from the words and
deeds of the managers in their day-to-day operations. Besides the informal
organizations too have their own norms to govern the behavior of the members.
There are too many behavioral norms in a typical organization to count, and
most of them are unconsciously understood and enforced. These include
communication, dress code, protocol, etc., thus, the values and norms of both
the formal and informal system of an organization exert influence on the
climate of the organization.
Check your progress:
1. Distinguish between organizational culture and climate.
2. Explain the factors influencing organizational climate.

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MEASURING ORGANISATIONAL CLIMATE

Measuring Organizational climate enables to capture the essence, environment,
order and patterns of organization. Usually organizational climate is measured through
survey questionnaire. Several instruments have been developed to measure
organizational climate. These installments measure a number of elements of climate,
assign them numerical scores, and then interpret the scores. The various elements
measured to determine organizational climate are related to conformity, responsibility,
striders, motivation, leadership, communication and others. To measure these elements
questionnaires are developed based on five points or ten-point scale. Organizational
Climate scores can range along a continuum from favorable to neutral to unfavorable.
The scores of the organizational climate give a fairly good idea about the. attitudes of
employees towards organization. They also enable the managers to take suitable steps
to build a congenial climate, which contributes to higher level performance and
greater job satisfaction.

Litwin and Stringer developed a questionnaire covering nine elements viz.,

structure, responsibility, reward, risk, warmth, support, standards, conflict and

identity. They concluded that different management approaches lead to different
climates. Further they stated that climate affects motivation, performance-an
satisfaction.

Another research, which was developed by Rensis Likert, focused on the style
of management. His study covered seven elements viz., leadership, processes,
motivational forces, communication, interaction-influence process, decision making,
goal-setting and control. The researcher concluded that the more human-oriented
climate produces both a higher levels of performance and greater job satisfaction.

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MYMUL

Human Resource Department

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Introduction
"Organizations are not mere bricks, mortar, machineries or inventories. They
are the people. It is the people who staff and manage organizations". The success or
failure of any organization is basically dependent on the quality of human resource it
has. Human resource gives the competitive edge to an organization from the other. So,
every successful company gives importance to its human resource and maintains a
separate department to deal with it. Currently, MYMUL has 381 employees at total.
To deal with the human resources at MYMUL, there is a separate department called as
Administration Department or HR Department. It deals with all the dimensions of the
employees at MYMUL.
Recruitment and Selection:
A committee called "Expert Panel Committee", the apex, body of the union
which comprises of: MD of MYMUL, President of MYMUL, one representative from
the KMF, one from the Board of Directors of NDDB, one member from the Registrar
of the Co-operative Societies, is authorized for hiring new employee to any post or
cadres at MYMUL.
Procedure for Selection:
If a post is to be fulfilled by competitive examination, then after giving
adequate publicity in the newspaper, the appointment procedure will be carried
out in the order of merit from the list of candidates prepared by the selection
committee or expert panel
For direct selection, after giving adequate publicity in leading newspaper to
the recruitment, the appointing authority may determine in the order of merit

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Incase if the post is being filled by internal promotion from its own staff, it is
done by selection of a person on the basis of merit and suitability in all respects
to discharge the duties of the post with due regard to seniority from
among the persons eligible to promotion will be screened by the committee prescribed
by MYMUL.
Age limit: For direct recruitment the age limit for general candidates is that one must
have attained the age of 18 years and not attained the age of 35 years.
Service benefits:
The employees of MYMUL are entitled to various service and welfare benefits.
Some of the benefits provided to employees are:

Dearness Allowance (D.A): It is provided as par with the state government

employees. The D.A amounts to 22.25 % of Basic Salary.

House Rent Allowance (H.R.A): Each employee is entitled for HRA. It

amounts to 13 % of Basic Salary.

Conveyance Allowance: The employees owing four wheelers get a conveyance
allowance equivalent to the cost of 15 Liters of petrol whereas the employees
with two wheelers get amount equivalent to 20 Liters of cost of petrol and

others 5 Liters of petrol.

Shift Allowance: A shift allowance of Rs. 2/day is provided to the workers
working in the second shift i.e. from 2 P.M to 10 P.M. and shift allowance of
Rs. 3/day is provided to workers working in third shift i.e. from 10 P.M to 6
A.M.
Heat Allowance: An employee working in the boiler section get an additional

rupee per day plus 250 ml of milk for self consumption on duty.
Cold storage Allowance: The employee working in the cold store get an
additional rupee per day plus 250 ml of milk for self consumption on duty.

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Attendance Benefits: The employees who remain regular get the additional
amount of Rs. 30 per month and he or she is allowed to be late by an hour once
a month.
Bonus: The bonus is awarded to employees in accordance to The Bonus Act
1965, amended by Indian government from time to time.
Milk at Subsidized rate: Each employee gets a subsidized milk facility. For
every liter milk purchase, % liter milk at free all the time. During flush season
(Oct - Nov) when the procurement of milk is very high, each employee gets Vi
liter of milk at free.
Free supply of Ghee: Each employee gets 500 g free supply of ghee twice a
year.
Provident Fund: The provident fund facility is provided to employees as per the
Employees Provident Fund and Family Pension Fund Act.
Subsidized Canteen: Mysore Dairy has got one canteen to provide convenient
and cheap food facilities to its employees. Here, the employees get breakfast
and meals at very cheap prices.
Medical Facility: It covers the employee and his dependents, children less than
18 yrs. For Inpatient up-to Rs. 50,000 per annum is provided.
Leaves:
Earned Leave: An employee can take earned leave of 30 days per year, which
if not taken can be accumulated for a maximum of 240 days.
Half Pay Leave: The employees are also entitled to 20 days of half pay leave
per year
Casual Leave: An employee can take 15 days casual leave in a year, but it
should not exceed 7 days in a stretch. Casual half day leave can also be taken.
Maternity Leave: Female employees are availed 2-3 months maternity leave.

But it is granted only twice in one's entire service period.

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Extraordinary Leave: It is only provided to the permanent employees and can

be granted only when no other leaves are left to the employee's credit. This
leave is granted not more than 60 days at once and can be provided maximum
of 5 times in entire service period.
Promotion and Transfer:
Promotion is solely on the basis of sensitivity and experience. Transfers are
always accompanied by promotions
Induction:
After an employee is employed in MYMUL, he or she is made familiar to the
union and also know the objectives, values, functions and the operations. This helps
the employee to interact with senior staff members from various departments.
Training and Development:
Training and Development refers to the imparting of specific skills, abilities and
knowledge to an employee. Training refers to the process of imparting specific skill.
Development refers to those learning opportunities designed to help employee's
growth. The need for training and development is determined by the employee's
performance deficiency, computed as follows:
Training and development need= Standard performance - Actual performance
Benefits of Training and Development programs in MYMUL:

Improves the morale of the work, force.

Helps people identify with organisational goals.
Improve the job knowledge and skills at all levels of the organization.
Aids in improving organizational communication.
Helps employees adjust to change.
Improves the coordination between employees.

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ABBREVIATION
President

President

MD

Managing Director

MYMUL

Mysore Milk Union Limited

DM

Deputy Manager

P&I

Procurement and input department

Production department

Mktg

Marketing department

HR

Human Resource department

MIS

Management Information System

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Organisation structure is the skeleton of the organisation. It prescribes the

formal relationship among various position and the activities. Arrangements about
reporting, relationship, how an organisation member is to communicate with other
members, what roles and procedures exist to guide the various activities performed by
the members of all parts of the organisation structure.
Organisation structure plays a vital role in achieving the organisational goals.
Organisation structure should be properly designed to facilitate the smooth
functioning of the organisation.
Organisation structure of MYMUL consists of BOD's at the top. Then
president, under whom is the Managing Director. He is the person who is responsible
for smooth functioning of the organisation. After Managing Director there are
managers and Deputy Mangers of various departments who are responsible and
accountable for the activities of their respective departments. There are subordinates,
supervisors and employees who are directly linked with department managers.

DEPARTMENTS

Procurement and input department

Purchase and Stores department
Production department
Marketing department
Finance department
Quality control department
Management information system department
Human resource department

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VARIUOS DEPARTMENTS AND THEIR FUNCTIONS

A.

PRODUCTION DEPARTMENT
FUNTIONS:
Preparation of curd, Butter, Ghee, Badam Milk, Mysore Pak, Darwad peda,
Peda.
Implementation of production plan.
Good and tasty preparation practices.
Release of production files to the factory with material update.

B.

HUMAN RESOURCE DEPARTMENT

FUNCTIONS:
Facilitate job analysis and job description of different position.
It facilitates administrative wages and salaries for different levels of employees.
It facilitates and provides rewards and incentives on the basis of wage policy. .
It ensures safety of the workers of the company
It maintains attendance register, salary to staff, loans, income tax and statutory
remittance.

C.

INANCE DEPARTMENT
Finance department plays very important role on the production department,

purchasing department and marketing department. The main objective of the finance
department is to facilitate smooth functioning of all departments and providing the
solution for the issues which will occur in day to day functioning.

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Regulate purchasing department:

When to purchase.
Where to purchase.

How much quantity to be purchased.

Date of payment.

Terms and conditions.

Warranties etc....
Helps marketing department:

Fixing price for the product.

Smooth operation of all show room. Helps production department:

Budget allocation.

Incentives.

ESI

PF

Gratuity payment.

Wages.

Educational loan.

Group insurance etc.

FUNCTION:

Ensure timely payment.

Recording transactions.

Maintains the details of debtors and creditors.

Estimate cash expenditure to be incurred during the year.

Timely payment of taxes.

Timely payment for suppliers of raw materials and others.

Providing accounts for audit with prescribed manners etc...

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D.

MAINTENANCE DEPARTMENT

FUNCTION:

E.

Proper maintenance of machine for better use.

Maintaining the plant for most excellent operating condition.
Avoiding breakage of machines.
To maintain optimum return on investment.
Oiling of the machines.
Replacing the broken parts.

MARKETING DEPARTMENT

Development of marketing goals and strategy.

Concluding marketing researches and monitoring customer needs. Promotion
and advertisement.

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THEORETICAL ASPECT OF HUMAN RESOURCES

MANAGEMENT
Introduction
It is necessary to recall what management is before studying human resources
management.
Mary parker Follet has defined management as "the art of getting things done
through people or other". But this definition is not sufficient because management is
much more than described in the above definition.
Management is "that field of human behavior in which manager's plan,
organize, staff direct and control human, physical and financial resources in an
organized effort, in order to achieve desired individual and group objectives with
optimum efficiency and effectiveness". Thus from the above definition it is
understood that human resources is a crucial sub -system in the process of
management.
Leon C. Megginson said, "the term human resources is the total knowledge,
skills creative abilities, talents & aptitudes of an organization's workforce, as well as
the value, attitude involved. " Human resources are also regarded as the human factor
human asset, human capital and the like denoting mostly the physical ability and
capacities of employees. Human resources is long term prospective.
Different terms are used to denote human management. They are labour
management, labour administrative, labour relation, and employee
Employee relation personal administration. Personal management, human
capital management, human asset management, human resource management and the

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like. Through these terms can be defined widely, the basic nature of distinction lies in
the scope of coverage and evolutionary stage on simple sense human resources
management means employing people, developing their resources, utilizing
maintaining and compensating their services in tune with the job and organizational
requirements.
Human resources management refer to the practices and policies one needs to
carry out the 'people' or human resources aspects of a management position including
recruiting, screening, training, rewarding, and appraising.
The policies include

Concluding job analysis.

Planning job candidates.

Orienting and training new employees.

Managing wages and salaries.

Providing incentives and benefits.

Appearing performance.

Communicating.

Training and development.

Building employee commitment.

Definitions:
"Take out all building, take out all my plant and machinery, take out all the capital
investment but leave my men and I will become Henry ford again".
Henry ford
"If we plant for one year plant a corn; if we plant for ten years. Plant a tree if we plant
for hundred years plant people. Human resources management is a series

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of activities and process undertaken to promote the intellectual moral. Psychological,

cultural and socio - economic development of individuals in an organization in order
to help them to achieve highest human potential as a resource for the community".

K Davis
"Human resources management is a process to acquire capabilities as
individuals which is required to perform various functions of their present and future
role it helps to develop their general capacities to bring out their potential towards the
organizational process. It is required to develop organizational culture and to induce
them towards the goal".

Dafdur

Objective of human resources management

To create and utilize an able and motivated work place to accomplish through
basic organizational goals.
To establish and maintain sound organizational structure and describe working
relationship among all members of the organization.
To secure the integration of individual and group with in the organizational by
coordinates of the individual and group with those of the organization.
To create facilities and opportunities for individual or group development so as
to match with the growth of the organization.
To attain effective utilization of human resources towards the goals.
To maintain high employ morale and sound human relations by sustaining and
improving various conditions and facilities.

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To strengthen and appreciate the human assets continuously by providing training and
development programs.
To provide and opportunity for expression and voice in management.
To provide fair acceptable and efficient leadership.
To provide facilities and conditions of work and creations of certain favorable
atmosphere to maintain the stabilized growth.
Need of human resource management
There is a need for HRM

Not to hire the wrong person for job.

Not to Experience high turnover.
Not to find your people not doing their best.
Not to Waste time with useless interview.
Not to follow unsafe practices.
Not to have some of your employees who think their salaries are unfair,

inadequate relative to other organization.

Not to allow a lack of training to all departments.
Not to commit any unfair trade practices.

Human resources play a crucial role in development process of modern

economics. Arthur Lewis observed "there are great difference in development between
countries which seen to have roughly equal resources, so it is necessary to enquire into
the difference in human behavior" it is often felt that through the exploitation of
natural resources, availability of physical and financial resources and international aid
play prominent roles in growth of modern economics, none of these factors is more
significant than efficient and committed manpower, it is in fact said that all
development comes from the human mind.

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Significance of human resources management

Human resources play a crucial role in development process of modern
economics. Arthur Lewis observed "there are great difference in development between
countries which seem to have roughly equal resources. So it is necessary to enquire
into the difference in human behavior. "It is often felt that through the exploitation of
natural resources, availability of physical and financial resources and international aid
play prominent roles in growth of modern economics. None of these factors is more
significant than efficient and committed manpower, it is in fact said that all
development comes from the human mind.
Functions of human resources management
The functions of human resources management can be broadly classified into
two categories
1.

Managerial functions.

2.

Operative functions.

\-

Managerial functions
Managerial functions of personal management involve planning, organizing,
directing and controlling all these functions include the operative functions.
Planning is a pre - determined course of action; It is determined of personal
programs and changes in advance that will contribute to the organizational
goals.
Organizing is a means to end; It is essential to carry out the determined course
of action. This process establishes relationships among the employees so that
they can collectively contribute to the attainment of company goals.

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The basic functions of personal management at any level is motivating
commanding, leading, and activating people directing is an important
managerial function in building sound industrial and human relations besides
securing employee contributions.
After planning, organizing and directing the various activities of the personal
management, the performance is to be verified in order to know that the
personal

functions

are performed in conformity with the plans and

directions. Thus, controlling adjusts action and operation to pre - determined

plans and standards.
Operations functions
The operative functions of personal management are related to specific.
Activities of personal management viz., employment, development, compensation and
relations which are integrated by managerial functions.
Employment: It's the first operative functions of HRM, concerned with
securing and employment the people possessing required kind and level of
human resources necessary to achieve the organizational objectives. It covers
the functions of job analysis, human resources planning, recruitment, selection,
placement inductions, and orientation.
Development: This is a process of improving, moldings and changing the skills,
knowledge, creative ability, aptitude, values, commitment etc, based on present
and future job and organizational requirements. This process includes
performance appraisal, providing training. Management development, career
planning and development and organizational development.
Compensation: It is the process of providing adequate, equitable and fair
remunerations to the employees. It includes job evaluation, wage and salary
administration, incentives, bonus, fringe benefits arid social security measures.
Human relations: This is a process of interaction among human beings. It is an
area of management in integrating people into work situation in a way that

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motivates them to work together productivity, co - operatively and with economic,

psychological and social satisfaction.
Staff
Staff refers to people in an organization. Staffing is the process of acquiring
human resources for the organization and assuring that they have potential to
contribute to the achievement of the organizational goals. It includes section,
placement, training, and development of appropriately qualified employees.
In MYMUL there are various departments under which employees work they
required to dedicate themselves to work. And be specializing in their respective field
of work to bring efficiency from their skills whenever is needed. There are many
motivational tools are using by the dairy to build morale and boost the employees.
Welfare measure at MYMUL
1. Provident fund.
2. Conveyance benefits.
3. Leave facilities.
4. Canteen facilities.
5. Trade union.
6. Training in case of adoption of new technology.
7. Workmen's benevolent fund.
8. Scholarship to merit students.
9. Group insurance & Dispensary.

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The employee is divided into main categories such as management staff &
workmen. Since it is manufacturing unit most of the employees are shop floor
employees (workmen). The total number of workers working in MYMUL is 372 This
number includes all levels of all departments, like production, marketing, finance,
personnel or HR etc.
Social Security
The wages provided to the employees particularly of the lower level may not
be sufficient to meet their needs like medical facilities, education, maternity needs of
women employees etc. Therefore, the governments of various countries insists the
employers to provided the security to their employees against the social evils.
According to lord beverage "Social Security on five giants viz, wants disease
ignorance squatter and idleness. The concept's related to social justice and equality.
ESI and P.F is provided to ensure social security.
The various types of securities are provided by the employees top the employees
in MYMUL are as follows:1. Employees security
Physical and job security to the employee should also be provided with a view
of promoting welfare the employee and the employee on the job create a sense of job
security. Further the employee on the job creates a sense of job security to the life.
2. Salary
Salary paid in MYMUL As per the Karnataka State Government scale / rule.
There is difference in the Salary level according to the qualification & experience at
work level.

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3. E.S.I.
E.S.I is the benefit provided for the employees. In MYMUL. The employees
who are getting Gross Salary up to 10,000/- will be covered ESI benefits.
4. Allowances
Traveling and daily allowances are giving according to MYMUL rule and the
house rent & city allowances are giving as per Govt rule.
Old age and Retirement benefit
Employees provide some benefit to the employee after retirement -during old
age with a view to create a feeling of security about the old age. These benefits
include P.F, Pension, insurance, gratuity and medical benefits.
Provident fund
Employee provident fund or provident fund as it is normally referred to is a
retirement benefit scheme that is available to salaried employees.
Under this scheme, a satisfied amount is deducted from the employee's salary
and contributed towards the fund. This amount is decided by government as per rule
provident fund act. MYMUL is providing the provident fund as per its rule.
Gratuity
MYMUL is providing Gratuity as per rule of the Gratuity act to the employees
and on the basis of actuarial valuation as per the balance sheet data made by
independent activities.

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Pension
In MYMUL Pension is providing to the retired employees through P.F.
Loans
MYMUL is providing many loans to employees. They are education loan,
festival advances, and medical allowances, (for only serious cases and some diseases
like cancer, heart diseases kidney problem etc.
Deduction
Through salary the loan will be deducted.
Promotion
Promotion
MYMUL is giving promotion to the employees as per their qualification &
experience.
Entertainment
MYMUL is providing benefits for entertainment like Sports, cultural activities,
annual tours to the employees.
Working hours
In MYMUL working hours for the employees is (Eight) hours per duty
including lunch hour.
Leave Encashment
Liability on account of encashment of unavailable encashment portion of
accumulated privilege leave of employees is on the basis of actuarial valuation as at
the balance sheet made by independent activities.

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Subsidies lunch (canteen facilities)

There is canteen facilities for every employees in the organization. In canteen
refreshment are available at minimum rates for the employees on the basis of salary
deduction per a meal - 3 Rs and breakfast & tea or coffee is given freely. Lunch hour
from 11 to 11 :30Am.
.
Health benefits
MYMUL is providing Medicare and hospitalization to the employees ESI
benefits are given to the employees who are getting salary more then 10,000/- Rupees
Medical Checkup is doing in working hours.
Accident benefit
In MYMUL only the employees who are getting ESI benefit can claim for the
accident benefit and others are getting only first aid facility.
Disablement benefits
MYMUL is providing disablement benefits which are given as per ESI rule.
Injury
MYMUL is providing medical facility through medical unit in the dairy. For
minor injury it is providing first aids and for major injuries through ESI the treatment
is providing to the employees.
First aid appliances
MYMUL is having the medical unit insider the dairy. There is a medical
doctor/practitioner and a nurse is providing general treatment & first aid.

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Here the industry is maintaining the first allowances and conducting programs &
giving training to the first aid committee.

HR policy of the company

To create a culture of excellence that inspires every employee.

Match organizational objective to individual aspirations.
Equip people with the necessary skills to perform their duties.
De bureaucratizes the structure for free flow of information.
Embed teamwork in all operational process. Empower employees to take
decision without fear of failing

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CHAPTER 4
METROLOGY
MYMUL report was formed through Observations, field visits in a separate
Departments, primary data through information provided by the manager directly, .
Secondary data through company records, Internet like Google search, encloypedia.
The methodology adopted for the study is as follows:Sources of Data
Data was collected based on two sources:

Primary Data.

Secondary Data.

Primary Data:
The primary data is to understand the significance and answer to their
reliability. In this method rate and reliability is higher. In addition to this the data was
collected through observation method, personal interviews and question schedule in
the place where questionnaire was not workable.
Secondary Data
Secondary data is collected through the documents provided by the all the
departments such as policy decisions, reports regarding suggestions, schemes, etc.
Data is also gathered from the books of various authors, magazines, journals, annual
reports, broachers, company manual, etc.
However in this study most of the information gathered was from the
secondary data that through books, journals, magazines, annual reports, etc. Hence
secondary data makes the main source for the data collected.

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STRENGTHS
1.

"Nandini" is the market leader and it is the trusted house hold brand name in

2.
3.

Karnataka.
MYMUL has two lakh farmer members.
MYMUL provides excellent veterinary, vaccination, Extension facilities, Feeds
and Fodder seeds supply etc., in the field, which cannot be thought off by any
private sector. Hence earned lot of goodwill from member producers, who

4.

patronize the union throughout the year.

MYMUL has earned the distinction of not failing to deliver the milk to market
on time throughout the year. There are days with no power supply, no water

5.
6.
7.
8.

supply; but there is no day without NANDINI milk supply.

MYMUL provides highly remunerative and timely payment to producers.
The Union is in good financial position.
MYMUL has obtained ISO 9001 -2000 certificate.
MYMUL is getting good institutional support from KMF, NDDB, etc.,

WEAKNESSES
1.

Lack of flexibility in deciding about its operation. No authority over issues like

2.
3.

pricing, offering volume discounts etc.,

Political interference.
Organizational structure does not permit incentive/ reward for good
performance.

OPPORTUNITIES
1.

Since the Mysore district is under Cauvery basin, perennial greens are available

2.

to the Cattle.
Institutional markets, bakeries, hotels etc., are not fully tapped and these can be

3.

captured preferably by direct marketing.

Diversification of milk products like Peda, Mysore Pak.... etc.,

4.
5.

Diversification of milk products like Peda, Mysore Pak.... etc.,

Exploit the "Human Face", by-positioning in the market as an organisation with
social responsibilities of serving the milk producer by paying remunerative

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MYMUL
price and serving customer by offering hygienic quality product at a reasonable
price throughout the year.
THREATS
1.

After liberalization, entry barriers in the dairy industry eased for new entrants.

2.

The competition from Co-operatives like Dodla, Heritage. Kamadenu.... etc.,

Private dairies procure milk at low cost from producers and sell milk resorting
to unethical trade practices. It is a marketing war in which union has to fight by
rules and other private dairies do not fight by rules. Hence, there is no level
playing field for organization with social responsibilities to compete with

3.

organizations.
Some private dairies are selling homogenised milk, which appears rich. The
union cannot homogenize all its huge quantity of milk due to lack of

4.

homogenizing capacity and increase in processing cost.

Plans of major companies like Reliance, ITC to enter into milk market in
future.

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CHAPTER 5
ANALYSIS AND INTERPRETATION OF DATA
DATA ANALYSIS:
Data analysis involves creating a series of observations into descriptive
statements about variables and/or inferences about relationships among Variables. Put
more simply, data analysis provides answers to questions we might want to ask for a
set of data.
Respondents will sometimes rush through questionnaires in an almost random
manner. This tends to produce a number of inconsistent responses such as highincome category and a low-paying job category, or unawareness of price that is
changed frequently. Questionnaires containing such inconsistencies has been
examined carefully and deleted from the data base if it appears that respondent were
haphazard in completing them.
Now let us start analyzing data for different types of observations in case of
Milk and Milk products now the answer required at conclusion.

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Table-1
Showing the Monthly INCOME of the respondents
<5k

5k-10k

10k-20k

20<k

Total

23

51

20

11

100

Numbers

Income

From the above table it is found that 50% of the respondents having income of
5000 -10,000 per month, 20% of the respondents having income from 10 k - 20 k, and
20% of the respondents have income of less than 5000 and rest having more than 20k
per month.

Inference: Finally it is observed that maximum no of respondents having income of

Rs 5000-10,000 per month

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Table-2
Showing the Age group of the respondents
20-30

30-40

40-50

50<

Total

26

42

18

14

100

Numbers

Age

From the above table it is found that 42% of the respondents are in. the age
group of 30 -40 Yrs, 26% of respondents are under the age group of 20 - 30 Yrs and
the rest are 40 - 50 Yrs and above.
Inference: Finally, it is observed that maximum numbers of respondents are in the age
group of 30-40 Yrs.

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Table-3
Is the price of the product economical?
Agree
Always
12

Agree
Sometime
38

Disagree
18

Disagree
Sometime
22

Disagree
always
10

Total
100

Numbers

From the above table it is found that 38% of respondents agree that the product
is economical, 22% of them disagree sometimes that the product is economical, 18%
of them disagree that it is economical and others agree always and disagree always.

Inference: Finally it is observed that maximum number of respondents agree that the
product is economical.

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TabIe-4
Would you buy the product if the price would change again?
Buy Always

Buy Sometime

May not Buy

Not At All Buy

47

23

12

18

Total
100

Numbers

From the above table it is found that 47% of the respondents always buy the
product if there is a price change again, 23% of the respondents wish to buy some
times, 16% of the respondents may not buy and the rest of them would not buy at all.

Inference: Finally it is observed that maximum number of respondents like to buy

always although there is a rise in price.

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TabIe-5
Do you substitute "Nandini "milk products with any other brand?
Yes

No

Total

64

36

100

From the above table it is found that 64% of the respondents would not like to
substitute "Nandini" with any other brand if there is a rise in price and 36% of the '
respondents would like to substitute "Nandini".

Inference: Finally it is observed that maximum number of respondents is not

willing to substitute "Nandini" products.

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Table-6
Which brand would you prefer as a substitute?
Dolda

Arokya

Jersy

13

16

10

Fresh
Milk
34

Heritage

Others

Total

16

11

100

Numbers

Brands
From the above table it is found that 37% of the respondents like to use fresh
milk as a substitute to "Nandini", 17% of them like to use Heritage, 13% of them
would like to use Arokya and Dodla and rest of them like to use Jessy and Others.
Infernce : Finally it is observed that maximum no of respondents wants to use
fresh milk as substitute for" Nandini".

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Table-7
Do you think there is a continuous improvement in "Nandini" milk products?

Yes

No

65

35

Total

OPINION ON CONTINIOIS IMPROVEMENT IN NANDINI

MILK PRODUCTS

From the above table it is found that 65% of respondents agree with the
continuous improvement in the product & 35% of them disagree.
Inference: Finally it is observed that maximum number of respondents
agree that there is a continuous improvement in the "Nandini "milk product.

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Table-8
How your opinion about availability of" Nandini "milk products?
Good

Average

Poor

Total

60

30

10

100

OPINION ABOUT AVILABILITY ON NANDINI MILK

PRODUCTS

From the above table it is found that 60% of respondents' opinion is good, 30%
of respondents opinion is average & 10% of the respondents opinion is poor about
availability of "nandini "milk products.
Inference: Finally it is observed that maximum number of respondent's
opinion is good about availability of "nandini" milk products.

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Table-9
Do you prefer any other products in "Nandini" other than milk?

Yes

No

Total

70

30

100

DO YOU PREFER ANY OTHER PRODUCTS IN NANDINI OTHER

THEN MILK

From the above table it is found that 70% of respondents prefer other "Nandini"
products also & 30% of them disagree.
Inference: Finally it is observed that maximum number of respondents are
ready to buy other "Nandini "products also.

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Table-10
How is your opinion regarding Brand name of the product "Nandini"?
Easy to Remember

Difficulty in remembering

Total

85

15

100

OPINIION REGARDING BRAND NAME OF NANDINI

From the above table it is found that 85% of respondents give positive opinion
regarding the brand name of "Nandini "& 15% of them are having negative opinion.

Inference: Finally it is observed that maximum number of respondents is given

positive opinion about brand name "Nandini".

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Table-11
Have you come across with any promotional strategies of "Nandini "milk products?

Advertisemen
t
55

Publicity
5

Sales
Promotion
40

Other
5

Total
100

From the above table it is found that 55% of respondents came across
Advertisement ,5% of respondents came across Sales Promotion & 40% of the
respondents came across Publicity & 5% of respondents came across others about
Promotional Strategies.

Inference: Finally it is observed that maximum number of respondents came to

know about the duct through advertisement.

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6. FINDINGS :

It

is observed that maximum number of respondents having income of Rs.

5000/-to Rs. 10.000/ It is observed that the maximum numbers of respondents are in the age group
of 30 to 40 years.
It is observed that maximum number of respondents agree that the product is
economical.
It is observed that maximum number of respondents like to buy always even
though these is a rise in price.
It is observed that maximum number of respondents is not willing to substitute
"Nandini "products.
It is observed that maximum number of respondents wants to use fresh milk as
substitute for "Nandini
It is observed that the maximum number of respondents agree that there is a
continuous improvement in the "Nandini" Milk products"
It is observed that the maximum number of respondent opinion is good

availability of "Nandini "Milk Product"

It is observed that the maximum number of respondents are ready to buy other

'Nandini' product also.

It is observed that maximum number of respondent express their good opinion

about brand name "Nandini".

It is observed that the maximum number of respondents came to know about
the product though advertisement.

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SUGGESTIONS

Most of the customers are using "Nandini Products" from 5-10 years have good
opinion about the products and the company should always try to maintain
good quality.

Consuming milk from nearby villagers and after processing is the dairy the
same will be sent to the "Nandini" Milk Products" for retail sales. Hence good
transportation facility to be maintained.

Price must not be increased in a short span of time because many customers . .
want to substitute.

The company is facing competitions from many other brands like "Arokya",
"Dodla" etc and the company must try to maintain good relationship with the
custoriiersibr surviving in the market.

"Nandini" products are consumed by various categories of customers who are

having distributed income and hence the product must satisfy each one of them.

Quality and attributes must be such that the. customers must

feel it as

economical.

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CONCLUSION
The human resource management are related to specific activities namely
employment, development, compensation and relations which are integrated by
managerial functions.
Employment is the first operative functions of HRM, Concerned with securing
and employment of the people possessing required kind and level of human resources
necessary to achieve the organisational objectives. It covers the functions of job
analysis, human resources planning, recruitment, selection, placement indications and
operation.
Development is a process of improving, motivating and changing the skills,
knowledge, creative ability, aptitude, values, Commitment etc. Based on present and
future job and organisational requirements. This process includes performance
appraisal, providing training management development, career planning and
development and organisational developments.
Compensation is the process of providing adequate equitable and fair
remunerations to the employees. It includes job evolution, wage and salary
administration, incentives bonds fringe benefit and social security measures.
The resent thinking in employee welfare and safety however is more oriented
towards increasing productions and efficiency of the work of the people. An out
standing trend is that it has become a comprehensive concept answered with

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MYMUL

development of the total human personality embracing physical, mental,

social

psychological and spiritual aspects of the employees well being.

In MYMUL there are various departments under which employees work they
required to dedicate themselves to work. And be specializing in their respective fields
of work to bring efficiency from their skills whenever is needed. There are many
motivational tools are using by the dairy to build morale and boost employees.

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QUESTIONNAIRE
I, M.S. Sowmya, student of M.B.A 4th Semester From Karnataka state open
university, Mysore conducting survey on "Organisational climate survey - a study at
MYMUL, Mysore".
I Kindly request you to please spare your valuable time to answer this
questionnaire.
Thanking you
Your's Sincerely
M.S. Sowmya
1.

Name

2.

Sex

Male

3.

4.

Female

Occupation :
House Wife

Salaried employee

Agriculturist

Others

Age

20-30

30-40

40-50

50 & above

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MYMUL
5.

6.

7.

Income per month :

<500

5000 10000

10000-20000

20000<

From how many years are your buying Nandini Milk product?
< 1 yr

1-5 Yr

5-10 yrs

10 yrs<

Is the price of the product economical?

Agree always

Agree sometimes

Disagree

Sometimes disagree

Disagree always

8.

9.

Would you buy the product if the price would change again?
Always buy

Buy sometimes

May not buy

Not at all buy

It is worth paying so much for the product?

Yes

No

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MYMUL
10.

Do you substitute Nandini Milk products with any other brand?

Yes

11.

12.

Which brand would you prefer as a substitute?

Dodla

Arokya

Fresh Milk

Others

Average

poor

Do you prefer any other products in Nandini other than milk?

Yes

15.

No

How your opinion about availability of Nandini milk products?

Good

14.

Jersy

Do you think is a continuous improvement in Nandini milk products?

Yes

13.

No

No

How is your opinion regarding Branch name of the product Nandini?

Easy to remember

Difficulty in remember

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MYMUL
16.

Have you come across with any promotional strategies of Nandini Milk
products?
Yes

No

If yes which are those:

17.

Advertisement

Publicity

Sales promotion

other

If you are buying Nandini Milk Products, what is your opinion about the
following attributes, when you compare against the price?

Attributes

Very Good

Good

Average

Poor

Very poor

Quality
Distribution
Packing
Value of Money
Others

18.

Do you have any suggestions about Nandini Milk products which area do you
bring changes?

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BIBLIOGRAPHY
Annual Reports of MYMUL

Marketing management

Philip Kotler

Production management

KAshwathappa

Personnel and Human resource management

P.Subbarao

Websites : www.nandinimilk.com
www.indianmilk.com
www.nandiniproducts.com
www.indiadairy.com

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