3/22/2011

PRAGATI TATA
TRIBAL CENTRE

RURAL ENTERPRISE Artisans hub at village level Stone craft and Bamboo craft

A Study On diagnostic, strategy and action plan |

By Chandan Kumar Thakur

Contents
Executive Summary Objective and Methodology About Artisans Overview of Stone Craft Overview of Bamboo Craft Failure of Past initiative Value Chain Participants Product Development and Production diagnostics SWOT analysis Human Resource capacity Composition of Artisan s Pay Pay structure Strategy for Product Development and Production Strategy for Good marketing Attachments Action Plans Product Price list existing 58-59 03 04-05 06-07 07-09 09-11 11-13 13-14 14-16 16-19 19-21 21-30 30-41 43-51 52-57

Executive Summary
This document examines the Work on Handicraft done by Tribal artisans of Gadra and Patamda Villages of Jamshedpur, Jharkhand. Pragati an initiative taken by Tata Tribal Centre, Jamshedpur is behind this project. A team consisting of two external consultants -Chandan Kumar Thakur (MBA - EMPI, EDC XLRI, Director Odyssey Wonder), Prativa Gupta (EDC XLRI, Director Odyssey Wonder) were hired to conduct a diagnostic, create a strategy and draft an action plan.

Over the past decade, tourism has become one of the worlds largest and fastest growing industries, and destinations like Jharkhand are capturing a significant share of the growing market. Handicrafts are not only an integral part of the tourism experience, but money spent on handcrafts can play a major role in lessening poverty in handicraft producing regions. Pragati has put much effort in developing the regions economy by providing the tribal people with some craftsmanship so that it can help them to generate income.

Past handicraft projects in the region have faltered, due to operating model having been weak and insufficiently targeted market, because of a number of core constraints. This has affected the projects ability to compete and move forward. The selection of handicraft products found is limited, overall quality is mediocre, and products lack uniqueness.

While there are almost 30 souvenir shops in Jamshedpur, none sell Pagati produced products. Market and product development surveys need to be conducted to better understand the targeted market and it is a must. Tourist from West Bengal and Jharkhand make-up the largest segment of visitor to Jamshedpur. Their preferences vary, as do their purchases of souvenirs. A detailed (SWOT) analysis was conducted for each of the three core components: product development and production, marketing, and organizational capacity and human resources. This analysis is further described in detail in the main body of this document.

Based on the diagnostic, strategy and draft action plans are then developed for the project.

Key findings indicate the need for a well-structured, supportive entity within the Pragati that should take the lead in developing the Project. The business incubator with inclusion of many more artisans, a taskforce, design and exhibition centre, and a certification system for artisans as well as the handicrafts produced will further aid in the development of the project. New innovative products should be developed and guided by experienced designers who will use the cultural heritage and unique motifs of the area to create market-driven products. Study tours and design competitions will stimulate peer learning and entrepreneurship. Core areas of training will include strategic planning, business planning, marketing strategies production, pricing and costing, entrepreneurial skills, business basics, accounting, and marketing. Sales of handicrafts continue to be confronted by obstacles in meeting the quantity, quality, and cost demands of different segments of the market. For Pragati to be able to take advantage of new economic opportunities and capture new market segments they need assistance to expand their production capacity, upgrade the quality of their products to the standards demanded by buyers, and overcome the many obstacles they face in meeting the requirements of the targeted markets. Marketing efforts will focus on branding and promotion of market-driven and well designed products.

I. OBJECTIVES and METHODOLOGY a. Study Objectives This document examines the Handicraft project of Pragati in Jamshedpur, Jharkhand, the stakeholders that operate in it. It is based on qualitative and quantitative primary and secondary data collected and analyzed during , Jan, Feb and Mar of 2011.

The objectives of this analysis were to: 1. Conduct a diagnostic of the handicraft project of Pragati in gadra and patamda, identifying potentialities and opportunities for the development of the sector, as well as its threats and challenges. 2. Design a detailed strategy and action plan for the handicraft project that includes: i. A Product Analysis Plan; ii. A Marketing Plan; iii. A Human Resources Capacity Building Plan; and iv. Recommendations to key decision makers and stakeholders to upgrade to a favourable environment for the development of the project.

b. Approach and Methodology A team consisting of two external consultants, Chandan Kumar Thakur and Prativa Gupta from XLRI were hired to conduct a diagnostic, and create a strategy and draft an action plan. Along with these consultants, Mr Felix Ekka, Ms Sweta Triyambak and other, core team members for the project of the Tata Tribal Community, helped with initial networking and setting-up of interviews, as well as provided invaluable insight into the local context and inter-firm dynamics. The team initially met on Sunday April 20th to discuss methodology and begin outlining a work plan. From Jan 2nd to Jan 15th 2011, the analysis team conducted qualitative interviews with key informants from current and past craft projects and programs. Interviews were held in Jamshedpur, Amadubi and Ranchi.

Overall work was divided according to core areas of expertise: Product Development and Market Analysis (Chandan Kumar Thakur), and Institutional Capacity and Strategy (Prativa Gupta) with team members adding their insights and expertise in the other areas where applicable. Methodology for Diagnostic Study A detailed methodology was followed to gather information on the cluster, identify the main actors, and collect trade and business data from them. Various tools including field visits, one-on-one interviews, focus groups and surveys were used to collect the required information. The following is a step-by-step description of the methodology used.

1. Initial research and setting up of First Field Visit This entailed the following steps: o Gathering of information on cluster actors and contacts through interactions with a range of institutions including the INTACH, Jharcraft, Kalamandir, Crafts Council India, Dastkar, Crafts Revival Trust, Fabindia, National Institute of Design (NID). o Identification of and establishing contact with NGOs, individual artisans, master craftspersons and entrepreneurs working in the area to explore potential local project partners and resources. o Identification of design and other professionals with previous work experience through the above two steps relevant to the cluster and initiation of discussions to explore their use as project consultants and resources. o Scanning of books, documents and other reading material for sourcing initial archival material on the crafts process, design repertoire, local dynamics and existing linkages to markets.

2. Field Scan, Field Visit o An initial field visit of few days was made to meet the artisans, groups and organizations working in the area. Then subsequently further visits were made for recording the process flow. o Local staff members were identified and interviewed to carry out a survey of the artisans in the area.

3. Product Review o Collection of samples to review the design, quality and marketability of the product. o Review of the costing process and marketability of the product at that cost. o Review of the appropriateness of production methods, raw materials and the tools used.

4. Production Process o A detailed documentation of the craft production process was carried out. The original skill techniques being used were also ascertained and an assessment was made. 5. Survey of Artisans o Demographic profiles of the artisans and ancillary artisans, including their geographical locations were mapped.

6. Value Chain Mapping o A detailed mapping of the Stonecraft and Bamboo craft value chain was carried out. The mapping identified actors who were involved in the business of crafts production and sales including master craftsperson and other marketing intermediaries.

7. Project Development Plan o On the basis of the information collected through the above steps, the analyses arrived at, and their interactions with a range of stakeholders in the crafts sector, a detailed Project Development Plan (PDP), which clearly lists the objectives, strategies and targets for the requisite interventions, was prepared. Thereby an action plan was prepared to meet these targets.

Artisanal products are those products, produced by artisans, either completely by hand, tools or even mechanical means as long as the direct manual contribution of the artisan remains the most substantial component of the finished product. These are produced without restriction in terms of quantity and using raw materials from sustainable resources. The special nature of artisanal products is derived from their distinctive features which can be utilitarian, aesthetic, artistic, creative, culturally attached and socially symbolic and significant. Definition adopted by U N E S C O / ITC International Symposium on Crafts and International Markets (Manila, Philippines, October 1997)

ABOUT ARTISANS Stone Carving Artisans hub at Gadra (East Singhbhum)

y y y y

All the artisans are tribes Education level: maximum till class VII & VIII They are only working for money They are very unorganized- dont know how to maintain stock and cannot explain anything to customers i.e. dont know any selling skills

Not very honest Note: Only motivational factor is monthly stipend

Bamboo Craft Artisans hub at Dongagaral, Dhusra (East Singhbhum)

y y y y y y

All the artisans belong to Primitive tribal groups (Sabar & Birhor of our three adopted villages) Education level: maximum till class III & V They are only working for money as most of them are daily wages artisans They are very-very nave and even very shy They speak Bengali Honest but not sincere in work and very slow Note: Only motivational factor is monthly stipend and requires lot of attention and care

Diagnostic of Handicraft Project The rural enterprise at village level by Pragati

a. Overview of Stone crafts in Gadara, Jamshedpur Stone craft is one of the most primitive and ancient crafts of India very much prevalent in Jharkhand as well. Gadra is a small village in the outskirts of Jamshedpur approx 15 kms and it takes 45 mins to reach there by a private transportation. Pragati has a good presence in the area with a permanent workshop centre that can easily accommodate 20 workmen with machine and tools.

Tot l number of members working presentl is 10 whi h include 7 male and 3 female artisans. Another set of 10 members has been gi en training who can act as ahelping hand. One SHG has been formed Hathssilp Adiwasi Mahila Samiti which is very much active. The training was provided by Pragati at Ranchi several other trainings were also arranged by theTata Tribal centre. The raw material soft stone is procured from Orissa and is provided by Pragati. Even the tools, centre for manufacture and other facilities are given by Pragati. Artisans worked on the artefacts in a line process starting with cutting, carving, designing and polishing. The different types of artefacts produced were lampshades, candle stand, coasters, paperweight, pen stand, deity, vases etc. The designs were appropriate but no market research was done for the current trends in the market as well as the standards were mediocre and needs to be revised from time to time. The storage space was not distinct and the package unit was missing which led to a damage of around 25% of the artefacts. Inspection and quality was not focused upon due to an absence of a supervisor although a register for atte ndance was maintained. Lighting was not adequate and the process line is yet to be defined and streamlined. The working style of the artisans were different individually, some were fast and some very slow. Since they were paid on daily basis its difficult to appraise the best and increase the output level. The artisans lack in soft skill as well as presentation skills, they were hesitant and very introvert. Most of the artisans were semi skilled and were 75% literate.

PRODUCTION PROCE

The production process can be divided in to four stages as follows:

9

First Stage - The raw stone is cut to desired size by the use of saw and chisel. The emphasis is on getting as big a size as possible to make the product costlier. Further the sides of the stone are made even by removing the roughness through an instrument called Randa. The artisan then draws his diagram of desired design by pencil and shapes by using chisel.

Second Stage - The shaped item is then subjected to further deeper carvings. The main instruments are chisel and hammer.

Third Stage - Further refinement is done through guna & tagi. The artisan makes his own judgment for using the right size of instrument which influences the quality. Sand paper is used for polishing at this stage.

Fourth Stage - The artisans efficiency of craft production depends on his ability to make the item more attractive and an object of beauty. He therefore, tries to make the carvings and ornamentation of the product in this stage to add to the value. On completion of his carvings, the artisan uses emery cloth and water paper to impart a better finish and shining. Sometimes transparent liquid like lacquer, wax are used to bring out the contours of the statue more prominently.

TECHNOLOGY USE OF MACHINES AND TOOLS

The production is totally manual and depends largely on the skill level of the craftsmen. Only machines such as electric saw for cutting the stones into regular sizes, drilling machines for making holes and carvings. However the carvings are done manually using hand tools The craftsmen use tools of different sizes and shapes. They are:
y y y y y y y

Tagi- A sharp edged instrument flattened in the front of various shapes and sizes Guna Tagi- A sharp edged instrument flattened in both sides of various sizes. Muna A sharp edged instrument pointed at the front of various sizes Hammer- Wooden and iron Saw For cutting the stones. Mottam- Angle scale Batali Chisel
10

y y y y

File-for polishing Compass Instrument for measurement Emery cloth and water paper for polishing Combination stone- For sharpening of tools

The detailed Product list is given below:

Penstand with paper & card holder Moulded Paper weight Leaf Shaped Penstand Leaf Show stand Two images with diya Triangular Flower Vase Image with removable stand Konark Mandir Photo Album Flower Vase Carved Leaf Carved Lamp Square flat container Kitchen spoon & fork holder Fruit Bowl Bangle Holder Bangles Agarbatti Stand Candle Stand Coaster Stand With Coaster Bangle Box Cylindrical Penstand Konark Pen stand Single Candle Stand Three in one Candle Stand Round Coaster Square Coaster Show pieces (Animals and deities)

b. Overview of Bamboo craft in Patamda, Jamshedpur Patamda is approx 20kms from Jamshedpur, Pragati has established its centre in Dongagaral near a Village called Dusra, which focuses on bamboo craft development. The artisans come from another nearby village Dholkocha as well. The village is situated at the foothills of Dalma and is surrounded by jungles. Dongagaral consists of 34 houses and a population of 192 whereas Dholkocha has 18 houses and a population of 125 people. The local people are very much primitive

11

and they are very hesitant to meet, share and even talk. They are introvert and their working as well as living habits are completely different from other tribal groups. The centre consists of eight artisans out of which two left due to commutation and personal problems.

At present there are six artisans:

S. No. 1 2 3 4 5 6 7

Names Malinder Ranglal Sahdev Tarun Tumpa Nirmal Shushankar

Tribes Sabar Sabar Sabar * Bidhor Sabar Sabar

Age NC 15 yrs (NC) 14 yrs 15 yrs * 21 yrs *

Education Class 2 Class 1 Class 3 * * Class 5 *

The artisans are of primitive nature and do not even know their age, lifestyle is totally nomadic. The group has been given training on bamboo craft design and product manufacturing in Jamshedpur as well as Ranchi-Society for Rural Industrialization. The raw materials are sourced from local markets as well as nearby areas. The craft centre consists of a store room, an exhibition space and the shop floor. It also has a room dedicated to the children for studies in the Anganbadi. Major Products includes:

Artefacts Name Stick Pen stand Bamboo Thick plate Pen stand Weaved Pen stand Flower Vase with bamboo flowers Flower Vase with Paitkar Painting Bamboo Hut Bamboo Decorative Lamp Bamboo Bulb Holder (single) Bamboo Bulb Holder (double)

12

Elephant Show piece Decorative Show Piece Decorative Bamboo Pen Stand Tissue Paper Holder Coaster with Stand Weaved Tray Oval Fruit Bowl Round Fruit Bowl Agarbatti Stand Bangles Hair Clip

Overall Failure of Past Initiatives

Past handicraft projects initiative have faltered, been weak, and insufficiently targeted. This is the case for several key reasons: 1) Lack of clarity on target market; 2) Stagnation of products produced; 3) Lack of vision regarding a sustainable strategy for the project; 4) Lack of business capacity; 5) Insufficient coordination at vertical and horizontal levels; 6) Inability to be creative and be innovative in product development; 7) Competition from other handicrafts in Jharkhand; 8) Treatment of craft projects as charity and not as business ventures; and 9) Lack of critical thinking and design ability among artisans.

1. Lack of clarity on target market Overwhelmingly, craft projects have developed products without adequate planning visa- vie for the target customers. Not only do they not know what their target market is, they lack information on the tastes and preferences of their target customer. With few exceptions, products have been made, based solely on local aesthetics, with the hope that they will sell.

2. Stagnation of products produced

13

While a few projects have had designers help them in product development, there is no investment in continuation of design efforts or investment in fostering artisans to be creative themselves. Products, while not mass produced, are repeats, which are produced without any creative spirit of the individual artisan. Designs that were innovative 10 years ago are still showcased, but sales remain flat at best.

3. Lack of vision regarding a sustainable strategy for the project Overwhelmingly, the organization assisting producers and producer groups lack medium to longterm strategies for success. This has translated into the following scenarios: Products being produced, but not sold, or sold at very low prices Lack of money to hire qualified designers No marketing or business planning

4. Lack of business capacity Most critically this is seen in their lack of ability to price products according to real costs plus a realistic profit margin. While it appears to be correct, there is no transfer of knowledge to the producers. All of the business-level issues and knowledge (if they have it) is kept within the higher management levels of the organization.

6. Insufficient coordination at vertical and horizontal levels There is virtually low coordination of efforts at either a vertical or horizontal level amongst stakeholders. This has translated into handicraft projects that have failed, poor investments, unmotivated artisans, products sitting on shelves, and an overall inability to take advantage of the money spent by the organisation. 7. Inability to be creative and be innovative in product development Organisation has relied on local managers and community leaders to do product development. This has resulted in products that are not saleable to the tourist market and only marginally saleable to the local markets. Artisans are taught to produce, not to innovate or be creative. This is true even in projects that have had outside designers guide product development.

8. Competition from other handicrafts in Jharkhand The few products produced in Pragati still have to compete in price, style, and aesthetics, with those from other areas of Jharkhand. This raises the competition bar, yet has not resulted in innovative or unique products.
14

10. Treatment of craft projects as charity and not as business ventures Handicraft projects have and continue to be run as charity operations, not as businesses. This is a critical issue that must be addressed if a robust, sustainable handicraft industry encouraging tourism is desirable.

11. Lack of critical thinking and design skills among producers Producers are not taught to be critical thinkers in product development or design, but rather they do exactly as they are told, repeating steps and processes. While not everyone is a designer, this limits innovation and product development potential.

Value Chain Participants

This section briefly explores the actors of the Tribal handicraft project sector from a value chain perspective. Emphasis is placed on the relationships between participants, current bottlenecks in information flows, and horizontal and vertical linkages that need to be established or strengthened. The value chain participants in Pragati currently include input suppliers, dependent Artisans, artisan group, intermediary agents and traders, retailers and wholesalers, tour operators, and tourist consumers. Contributing value chain problem areas include the following:

1. Artisan Group Both the artisan groups are marginalized, with very little if any interaction among them as well as with the supervising body. A regular interaction with the teams is a must. 2. Inter-firm Relations (Vertical Linkages) Vertical linkages are currently non-existent its Pragati doing everything from making their own product lines, to designing products, to production, and to marginally marketing their products. 3. Cooperative Relations (Horizontal Linkages) There is very little, if any, cooperation between NGOs and producer groups. The only linkages observed were the sporadic craft fairs in which several producers sold their wares at the same venue. Recently progress in the direction seems to take place, linkages with Jharcraft is building up.
15

4. Intermediary agent/traders and NGO/Agents No shared lessons or aggregate grouping of risks, marketing, or other areas of cooperation were visible during this consultancy. 5. Support market Tourist Market This is growing and strong. Consumers are looking for products to buy. Local Market There is a growing local market that is looking for home accessories. Primarily they buy cheap machine made products, and other items that are less expensive. There is potential to serve this client base. 7. Shipping services - non-existent At point of sale handicraft locations, there are no producer-based or retail outlet based shipping services through DHL, FED-EX or postal office services. The customers must arrange for these separately, as the knowledge is restricted cost of shipping, terms, or how to pack for international.

Product Development and Production Diagnostic a. Overview The selection of handicraft products found in Pragati is limited; overall the quality is Mediocre, and products lack uniqueness. In spite of a fair number of handicraft projects over the years, there is no single product or product line that represents Jharkhand. Handicraft products found in Pragati range from items made for the local market to products aimed at potential tourist markets. Handicraft products currently found in Pragati are a mix of products from other regions of Jharkhand, Orissa, Bihar and other parts of the country and a few other miscellaneous products.

b. Products Currently Produced in Pragati The following provides a snapshot of what handicrafts are currently produce. All of the products that were reviewed are listed below:

Stone craft Moulded Paper weight Leaf Shaped Penstand Leaf Show stand

Bamboo craft Bamboo Thickplate Penstand Weaved Penstand Flower Vase with bamboo flowers

16

Two images with diya Triangular Flower Vase Image with removable stand Konark Mandir Photo Album Flower Vase Carved Leaf Carved Lamp Square flat container Kitchen spoon & fork holder Fruit Bowl Bangle Holder Bangles Agarbatti Stand Candle Stand Coster Stand With Coaster Bangle Box Cylindrical Penstand Konark Penstand Single Candle Stand Three in one Candle Stand Round Coaster

Flower Vase with Paitkar Painting Bamboo Hut Bamboo Decorative Lamp Bamboo Bulb Holder (single) Bamboo Bulb Holder (double) Elephant Show piece Decrotive Show Piece Decorative Bamboo Pen Stand Tissue Paper Holder Coaster with Stand Weaved Tray Oval Fruit Bowl Round Fruit Bowl Agarbatti Stand Bangles Hair Clip

Square Coaster

17

Matrix of Group, Products and Marketing Efforts

Type of Handicraft Stone craft

Artisan Group Gadra

Currently working Yes

Quality

Marketing

Sales

Inconsistent

Low

TCC / Direct

Bamboo craft

Dholkocha

Yes

Low

Nil

TCC / Direct

SWOT Analysis Product Development and Production

The tribal artisan project of both the crafts i.e. Bamboo and stone is severely limited in terms of available products, currently skilled artisans, and design ability and production capacity. The following documentation outlines a detailed SWOT analysis of the sector in terms of product development and production issues.

Strengths There is a cultural heritage and tradition to draw from. This can result in new products being developed, as well as the development of themed events. There are still some old timers who can help revitalize products that were once produced for utilitarian uses, and this can be used as a core asset for branding Pragati products. Growth in Tourism. There are substantial investments being made in branding and building Jharkhand as a leading tourist destination. Growth expectations are significant. After the national games being conducted here and the success of many new ventures as well as the birth place of TATAs the tourism has got a boost. There are established skill sets to draw from. Various handicraft areas already exist in bamboo, stone, clay, painting and sewing, wood working, basic jewellery (beading and simple silver smiting), welding, and weaving. These skills can be drawn from to produce new, marketable products for identified target markets.

18

 There is a potentially large pool of artisans to draw from to raise production levels. Statistics show that large percentage of the West Shingbhum population is unemployed and close to 40% of the population range in age from 20 to 39 ages when most people are active members of the workforce. With minimal expenditures required for training, barriers to entry are low for both the handicraft sector. There is growing community interest in handicraft development. As local populations see a steady influx of tourists to Jharkhand, they are eager to benefit from the revenue that they potentially bring. Handicrafts are one mechanism for capturing part of this increased revenue flow, and many locals are beginning to take notice. Handicrafts overall have a low capital investment and high ratio of value addition. Handicrafts usually require utilization of readily available raw materials and simple machinery, ensuring low capital investment. Once sold, the added value in a handicraft item usually is high.

Weaknesses There are no unique exceptional skills found in Pragati that have not been seen in other places. While skill-sets exist, without innovative design and product development and upgrades of skill levels, products will remain stagnant, flat and uninteresting, particularly for the tourist buyers and the corporate. There are significant training needs. To date there have been inadequate production, vocational and business development training programs. All of the artisan need training in basic business skills, including product design, pricing and costing, production, marketing and management. Nothing to draw from in terms of lessons learned. There is no handicraft documentation or lessons learned to help pave the way for future initiatives. Prior product assessments have not been documented or shared with others. This means that all projects basically have to start from scratch. Products have not been demand-driven or focused on a target market. No effort has been made to think of what does the customer want? or moreover, who are our clients? Tour operators are not linked to handicrafts. Currently tourism operators are generally not connected to Pragati. Lack of design sense for target market.
19

There is also an unawareness of international standards in the market and a lack of specialization. Poor quality or lack of packaging further decreases the saleability of the items that are produced. No robust production system Projects are supporting artisan initiatives but overwhelmingly lack vision, and are not run as businesses, lack adequate funding, have no business or marketing plan documented, and are running their projects on shoestring budgets resulting in low production levels Limited access to, and inadequate supply system of, raw materials. This translates into inconsistent products and untimely product production. No consistent input on new designs and product development. Without consistent input on new designs, designs will be copies or remain the same; thus leading to stagnation and a reduction in any potential repeat customer sales.

Opportunities There is a cultural heritage and tradition to draw from. There are some cultural heritage products that were made and used for utilitarian purposes in Jharkhand that can be revitalized and made for the tourist market. Based on this and in coordination with good designer, there is a plethora of potential products that could be developed for the tourism industry. There is a large pool of skilled and unskilled labour that can be drawn from to produce products. With a high percentage of unemployed women reaching 35% and unemployed men at 23% according to the Department of Statistics Census of December 2009, this large pool could be effectively mobilized to produce handicrafts. Growth and investment in the tourism market presents potential to bring benefits back to community. Growth and investment in the tourism market presents huge growth and development potential which could bring benefits back to community over the long-term. Opportunities for vertical and horizontal collaboration. There are store owners who said that they would like to source locally. There are also producers, who, with proper training in business, could be successful entrepreneurs. There are roles for the private and public sectors to link together to create a more sustainable handicraft sector. Rising appreciation for handicrafts by consumers.

20

As more tourists seek cultural destinations, they are also looking to take home with them a product that represents their experiences. This can translate into local growth in handicrafts. There are widespread novelty seeking and growing discretionary incomes at the disposal of consumers. There is a growing trend in retail chains for suitable products and reliable suppliers. This is true of stores such as Pier One, Target, major department stores, etc. It speaks of consumers interest in cultural items. The stores such as Shoppers stop, Big Bazaar, Industree etc are coming for rescue.

Threats Competition of other handicraft products. There are many products that Pragati products will have to compete with. Any development must be aware of the global marketplace, as well as national and regional competition. Irregular and expensive inputs and inconsistent availability will not help Pragati products compete over the medium to longer term. No large pool of recognized designers to draw from is resulting in talent from abroad staying abroad and not transferring skills to local designers. Better quality products produced by competitors This includes better packaging, more competitively priced products and unique products from other areas. Stricter international standards. Such standards are requiring the sourcing of more products that are lead-free, eco-friendly, fair trade, etc. Handicraft producers will need to adhere to these standards if they want to sell outside of Jharkhand and India

Human resource capacities

Management of the producing organization was centralized, decisions related to product quantities, prices, and distribution was mainly the responsibility of the management alone. They need to adopt a participatory approach in choosing designs and in identifying marketing activities such as bazaars and exhibitions. Management personnel were multi-tasking and holding many responsibilities, such as product design, marketing, pricing, managing the artisans, training artisans, coaching new artisans,

21

supervising the production process, quality control, product development and handling daily bookkeeping and documentation.

The working labour of stone craft producing group is mostly made up of women working from home or at the workshop. Women work as full-time. Total 10 members are there working on the project. They are paid on monthly basis a sum of Rs 100 per day volunteers were paid very humbly to cover their transportation. Its noted that skills transfer from the management and technical personnel to the working labour is minor, and there were no systematic efforts evident in this area. Very little incentives exist for producers to increase their skills or capacity. This process is based on the personal judgment of the supervisor, and the supervisors own evaluation of labour performance, rather than on set criteria. The presence of supervisor is also not visible; maintenance of attendance as well as quality check is done by the artisan themselves. They show no trait of professionalism and are far behind the required set of soft skills and presentation skills. The working condition is satisfactory considering the location of the workshop, the major problem being the electricity stability for the free flow of motors, machines and lighting.

The working labour or the artisans of Bamboo craft mostly comprises of young boys from Dusra village in Patamda. As many as six artisans are currently working in this group. They are paid on weekly basis a sum of Rs 100 per day. The artisans are mostly of primitive tribes and are illiterate and introvert. They lack in basic soft skills and presentation skills, they have no business motives and no entrepreneurship bend of mind. They believe in existing for the day, working and living for today. They do not have any concept of savings and investment.

TRAINING STATUS - Details of training given to the artisans

Stone Carving training at Gadra Sl.No. 1 2 Training details Trainer from Orissa Designers from INIFD,Jamshedpur

22

Bamboo Craft training at Dongagaral Sl.No. 1 2 3 4 Training details Local trainer from Patamda Designers from INIFD,Jamshedpur Local trainer from Jamshedpur Training at SRI,Ranchi (Society for Rural

Industrialization)

Organizational knowledge The majority of artisan producing handicrafts had no internal organizational knowledge management system. They historically jump from one working area to another, without having a consistent production growth path, and thus were unable to accumulate vertical learning experiences and proper documentation. In addition, none had a business or marketing plan preferring to deal with handicrafts production merely as a charitable project.

Availability of supporting policies and systems Organization lack clear policies and systems. These include policies on pricing, marketing and quality control, and systems for selling, producing, and assuring quality control. It conducts informal quality checks, and this procedure is usually carried out by the member artisans only.

When an organization has no clear procedure for budgeting and capital investment, this competency was considered very weak. The organization has some kind of a system but it is not documented, and is considered existing but in an informal way.

3- HR capacities in place. This competency refers to the capability of the existing management and supervisory structure to manage the work well in an institutional manner, while not being solely based on just one or two persons. 4- Organizational knowledge captured and shared.

23

This competency refers to the market knowledge and the accumulated knowhow available in the organization. 5- Availability of supporting systems and policies for handicraft production and marketing, including pricing policies and key staff replacement policies, budgeting and accounting systems and documentation for sales systems.

Components of Artisans Pay The pay packet of an artisan must include wage/Pay, incentives, and finally non-monetary benefits. 1. Wages and Pay: Wages represent hourly rates of pay, and Pay refers to the monthly rate of pay, irrespective of the number of hours put in by the artisan. Wages and salaries are subject to the annual increments. They differ from artisan to artisan, and depend upon the nature of job, seniority, and experience.

2. Incentives: Incentives are paid in addition to wages and salaries and are also called payments by results. Incentives depend upon productivity, sales, profit, or cost reduction efforts. There are: (a) Individual incentive schemes, and (b) Group incentive programmes. Individual incentives are applicable to specific artisan performance. Where a given task demands group efforts for completion, incentives are paid to the group as a whole. The amount is later divided among group members on an equitable basis. 3. Non-monetary benefits: These benefits give psychological satisfaction to artisans even when financial benefit is not available. Such benefits are: (a) Recognition of merit through certificate, etc. (b) Offering challenging job responsibilities, (c) Promoting growth prospects, (d) Comfortable working conditions, (e) Competent supervision, and (f) Job sharing and flexi-time.

24

SYSTEMS OF WAGE PAYMENT

A) TIME RATE SYSTEM B) PIECE RATE SYSTEM

Time rate system: It is the oldest and simplest method of wage payment used. Wages are paid as per the time spent by the artisans in the workshop. The production given by them is not taken into consideration. The employer buys the hours of the artisans and pays them accordingly. Time rate system is also called as day wage system. In the time rate system, efficiency, sincerity, ability is not given attention and all the artisans are paid at one and the same rate as per the period spent in the factory. ADVANTAGES OF TIME RATE SYSTEM: 1) Easy and simple: Time rate is easy to understand and simple to follow and calculate. Wage calculations are also easy and quick. Each artisan knows how much wage payment he is entitled to at the end of the month. This gives convenience to employer andartisans.

2)

Guarantee of minimum wage: It gives the guarantee of certain minimum wage payment to every artisan irrespective of their working capacity. Artisans get a regular and stable income and this gives a sense of security to all artisans as regards wage payment.

3)

Maintains quality of production: Quality of production is maintained here as the artisans are not in a hurry to complete the work. They do not rush the job and spoil the quality because of the temptation to earn more. Artisans tend to work slowly and with care. Even accidents are less as artisans use the machines in a careful manner.

25

4)

Avoids quarrels among artisans: Time rate avoids heart burning and quarrels among the artisans as uniform wages are paid to all. Here efficiency, honesty and sincerity of artisans are not given any special weight age. Wage rate is the same for sincere and lazy artisans.

5)

Convenient in modern systems: Time rate payment is convenient in modern system where production process is continuous and integrated. It is not possible to measure the work completed by one individual artisan and hence time rate system is convenient.

DISADVANTAGES OF TIME RATE SYSTEM:

1)

Not scientific: Time rate is not scientific system of wage payment as there is no direct linking between wages and production/productivity. Wages bill may increase without corresponding increase in the production. This will bring loss to the employer / management.

2)

Absence of positive encouragement: In the time rate system, there is no positive encouragement to artisans to improve their efficiency/ performance as the wage rate is uniform to all artisans; efficient and inefficient.

3)

No distinction between artisans: In the time rate system no distinction is made between efficient and lazy artisans, both are paid at one rate which is unfair. This system gives punishment to sincere and efficient artisans. They are discouraged as they are paid less than what they deserve. They may even leave the job.

4)

No initiative to artisans: Time rate fails to encourage artisans to take more interest and initiative in their work. In fact, it encourages them to follow go slow policy. This is because wage payment is not linked with the production given.
26

5)

Labour cost may increase: In the time rate system, there is a possibility of increase in the labour cost without corresponding increase in the production. Artisans may work with slow speed, give less production but collect the wage as per time or day fixed.

6)

Strict supervision: In the time rate strict supervision on the artisans is essential as payment is for period and not production. This raises the expenditure on supervision.

7)

No effect on productivity/ efficiency: Time rate fails to raise productivity and efficiency of labour force. It is not an incentive system of wage payment.

Piece rate system:

This is another basic system of wage payment. It is just opposite to the time rate. It is also treated as an incentive wage system as it encourages artisans to produce more and also to earn more. In the piece rate system, wages are paid as per the output or production given by the artisan and not as per the time spent by the artisan in the factory. Payment is by results in terms of output given. Wage rate is fixed per piece of work or for certain quantity of production. The production given by a artisan at the end of the day is counted and payment is made accordingly.

MERITS/ ADVANTAGES OF PIECE RATE SYSTEM :

1) Linking of wages with production: Here wages are linked with production or productivity. It raises the productivity of labour. Artisans work with speed and use their capacity fully as the wage payment is directly related to the quantity of production given by a artisan.

27

2) Distinction is made between efficient and inefficient artisans: Distinction is made between efficient and inefficient artisan and full justice is done to efficient artisan as he gets payment in proportion to the production given. Efficient artisans support the piece rate system but it is not preferred by unskilled and inefficient artisans. They get less payment under this method as their capacity to produce is less.

3) Encourages artisans to take initiative in the work: Piece rate system encourages artisans to take more interest and initiative in the work as every artisan gets full reward of his efforts. There is direct efforts-reward relationship in the piece rate system. 4) Fair to employer and artisans: This system is fair to employers as well as artisans. The artisans get income in proportion to production given by them and the employer gets production in proportion to the wage paid.

5) Incentive system: This system serves as the incentive system. Artisans work efficiently and take interest in the work due to corresponding benefit/ reward in the form of higher wage payment.

6) Limited supervision adequate: In this system strict supervision on the artisans is not necessary as artisans work sincerely. This is because their wage payment is directly linked with their sincerity and ability.

7) Freedom of work to artisans: Artisans get more freedom of work and there is effective control on the cost of production in the piece rate system.

8) Brings cordial relations: Piece rate brings cordial labour- management relations and industrial peace.

28

DEMERITS/LIMITATION OF PIECE RATE SYSTEM

1) No guarantee of minimum wage payment: There is no guarantee of certain minimum wage payment to a artisan. This may prove to be dangerous particularly to a newly recruited artisan and artisans who are below average

2) Artisans suffer even when they are not at fault: Sometimes artisans suffer in wage payment even when they are not fault. Due to power failure, etc they may not be able to give production and naturally they will not be eligible for wage payment even when they remain present in the factory for the whole day.

3) Complicated system: Piece rate system is complicated and difficult as it is difficult to understand by ordinary artisans. Management will have to keep elaborate records of production given by each artisan. Artisans also make complaints as regards wage payment when they feel that due payment is not made to them.

4) Disturbs unity of artisans: Piece rate affects the unity among artisans as wage payment will not be uniform to all artisans. This will lead to quarrel among artisans. Trade unions oppose piece rate system on the ground that it will lead to rivalry among artisans and destroy unity among them.

5) Not fair to trainees: Piece rate system is not fair to trainees, as their capacity to produce is less and naturally they will get less wages.

6) Quality of production is adversely affected: It affects the quality of production as artisans may work with speed and this may bring down the quality of production. In addition the wastages and spoiled work are likely to increase due to haste on the part of the artisans to labour hard and over strain themselves in order to earn more. This affects the health of artisans.

29

INCENTIVE SYSTEMS OF WAGE PAYMENT

The wage plan should be highly incentive means it should encourage artisans to take more initiative and interest in the work, produce more and also earn more. The wage plan which serves all these purposes is called incentive wage plan. Such an incentive plan is beneficial to both - employers and artisans as well as it is useful for the rapid industrial growth.

Incentives include monetary as well as non-monetary benefits offered. There is motivation to work hard and to earn more. In every incentive plan, wages are linked with the given output. Incentives are not fixed like wages and salaries. They vary from individual to individual and from period to period. In many incentive plans, a combination of time rate and piece rate systems is used. Such combination creates an ideal incentive plan.

TYPES OF INCENTIVE PLANS:

There are two types of incentive plans: (a) Individual incentive plans, and (b) Group incentive plans.

Individual incentive plan is meant for individual artisans. He has to work hard i.e. efficiently, produce more and share the monetary benefits for himself. The benefit is directly linked with his ability, efficiency and capacity.

30

In the group incentive plan, the incentive is not for individual artisan but for the group of artisans working in one department or section. Such group incentive plan may cover the entire labour force of a production unit. The group will work collectively, give more production and share the benefit. Initially benefit will be given to the group and thereafter, it will be divided among the members of the group.

Management is interested in group incentive plan while artisans are interested in individual incentive plans. Production activities are now conducted in an integrated manner and naturally incentives should be offered to the artisans. Group incentive plans are better as they encourage team spirit and develop cooperation and understanding among the artisans. This avoids wastages and promotes productivity.

Features/requisites of a good incentive plan:

Simplicity: A good incentive plan is one which is easy to understand and simple to operate. An average artisan must be able to know the incentive offered and what he is expected to do. The monetary as well as non-monetary benefits offered must be made clear to all artisans.

Encourage initiative: A good incentive plan should create initiative among artisans to work more and to earn more. It must offer more income to artisans and more profit/production to the firm or company.

Definiteness and flexibility: A good incentive plan should be definite. This means frequent changes should not be made as regard rates, etc. as such changes create confusion and doubts in the minds of artisans. Such plan must give clear benefits to artisans In addition, an ideal incentive plan should be flexible. It should take care of technological and other changes taking place from time-to-time. There should be suitable provision for such adjustment. Flexibility makes incentive plan adaptable.
31

Wide coverage and equitable: A good incentive plan should not be for artisans in certain departments only. It should have a wide coverage and almost all artisans should be covered in such plan. Such wide coverage makes the plan popular at all levels and among all categories of artisans. An incentive plan should be equitable. This means it should provide equal opportunity to all artisans to show efficiency and earn more. This avoids dissatisfaction among artisans and makes the plan just and fair to all artisans.

Guarantee of minimum wage payment: An incentive wage plan should include certain minimum wage payment to every artisan per month. This should be irrespective of the production he gives. Such provision of guarantee payments creates a sense of security and confidence among artisans.

Scientific fixation of standard workload : Under the incentive plan, extra payment is given for the extra work i.e. work which is over and above certain quality. Such standard work-load must be clear, specific and fixed with scientific time studies so that majority of artisans will be able to give extra production for extra payment.

Justice to employer and artisans: A good incentive plan should do justice to both parties. The employer must get additional production along with extra profit and the artisans must get extra payment for extra production.

Profit-Sharing Profit-sharing usually involves the determination of an organizations profit at the end of the fiscal year and the distribution of a percentage of the profits to the artisans qualified to share in the earnings. The percentage to be shared by the artisans is often predetermined at the beginning of the work period and is often communicated to the artisans so that they have some knowledge of their potential gains. To enable the artisans to participate in profit-sharing, they are required to work for certain number of years and develop some seniority. The theory behind profit-sharing is that management feels its artisans will fulfill their responsibilities more diligently if they realize that
32

their efforts may result in higher profits, which will be returned to the artisans through profitsharing.

Features of profit-sharing: The main features of the profit-sharing schemes are: (a) The agreement is voluntary and based on joint consultation made freely between

the employers and the artisans. (b) The payment may be in form of cash, stock of future credits of some amount over

and above the normal remuneration that would otherwise be paid to artisans in a given situation. (c) The artisans should have some minimum qualifications, such as tenure or satisfy

some other conditions of the service which may be determined by the management. (d) The amount to be distributed among the participants is computed on the basis of

some agreed formula, which is to be applied in all circumstances. (e) (f) advance. The amount to be distributed depends on the price earned by the enterprise. The proportion of the profits distributed among the artisans is determined in

Objectives of Profit-sharing: 1) To supplement the regular earning of the artisans, 2) To create a sense of partnership among the artisans and the management, 3) To enable the artisans to participate in the prosperity of their company, 4) To develop cordial labour-management relations and to improve artisan morale. 5) To introduce incentive wage plan 6) To raise productive efficiency by reducing costs and increasing output 7) To reduce labour turnover and to improve public relations. 8) To provide for artisan security in the event of death, retirement or disability

Advantages of profit-sharing:

1) Extra income to artisans: Artisans get extra cash payment due to profit-sharing arrangement. This money is useful for raising their welfare. Artisans can purchase costly
33

consumer durables out of this money available at one time. Thus, profit-sharing provides better life and welfare to artisans. It creates contended labour force with higher standard of living. Profit-sharing plan acts as a good supplement to regular wages paid to artisans. In fact, profit-sharing is aptly described as a form of added remuneration.

2) Artisans take more initiative and interest in the work: Due to profit-sharing arrangement, artisans/artisans take more interest in the work. This develops team spirit among the artisans because their share in the profit depends on their collective initiative, efforts and hard work. In this sense, profit-sharing is useful for motivating artisans. It encourages artisans to be regular, stable and efficient as the benefits of these elements are offered to them through profit-sharing. Here, efforts and reward are directly and proportionately linked. This encourages artisans to take keen interest in the work and develops team spirit. Profit-sharing acts not only as supplement to regular wages (i.e. as an incentive wage plan) but also as a motivating factor to all artisans. It creates common objective before employer and artisans and diverts their energies for achieving one common objective.

3) Increase in production and productivity: Profit- sharing acts as a driving force for more production and productivity. It motivates artisans for raising production as they get direct and immediate benefit of additional efforts on their part. The benefits of increase in production are available to employer and artisans.

4) Fair to employer and artisans: Profit-sharing gives mere remuneration to artisans along with more profit to employer. Employer pays a part of profit to artisans but he is not adversely affected as profit is paid only when it exceeds a particular limit agreed by both the parties. This arrangement is, certainly fair to both parties. There is an element of social justice in it. Profitsharing creates team spirit in the higher cadres of management as well as in the rank and file of artisans.

34

6) Less supervision required: Profit-sharing reduces the expenditure on supervision of artisans as they take interest in the work on their own. Moreover, wastage of' materials, volume of spoiled work, etc. are also reduced.

7) Stability to labour force: Profit-sharing brings stability to labour force as the benefit of profit-sharing is usually given only to those who work in the company for the whole year. Thus, profit-sharing brings down the rate of labour turnover and this gives benefit to the employer/ management.

8) Promotes social justice: Profit-sharing is a method of social justice. It is a method by which artisans are given the reward of their hard work and also allowed to participate in the progress and prosperity of their company. Profit-sharing introduces industrial democracy as artisans are treated not only as wage earners but also as partners for sharing the profits of the company. Disadvantages of profit-sharing:

1) Uncertainty: There is high degree of uncertainty in the profit-sharing scheme/plan. Profitsharing is uncertain because it will be paid only when the profit exceeds a particular limit. The profit may not cross a particular limit due to market forces and the artisans will suffer. Thus, profit-sharing does not give full guarantee of extra payment to artisans. It acts like a fair weather plan.

2) Unfair to efficient artisans: Profit-sharing is a group incentive plan. It gives equal benefit to all artisans. Distinction is not made between good and bad artisans. As a result sincere and efficient artisans get less than what they deserve while insincere and inefficient get more than what they deserve.

3) Opposition from trade unions: Trade unions and artisans feel that bonus payment is
35

better than profit sharing. They generally oppose to profit-sharing and demand bonus from the employer as it is a cheap alternative to profit-sharing.

4) Disputes on calculation of net profit: In profit-sharing, the net profit is to be calculated at the end of the financial year. There is a possibility of difficulties as regards the calculation of the net profit. The employer may like to manipulate the accounts and show less profit while artisans may calculate it as high. Such quarrel affects both the parties as it leads to dispute and delay in payment. In brief, ascertaining net profits is one sensitive problem in profit-sharing.

5) Adverse effects on labour-management relations: Sometimes, relations between labour and management are adversely affected on the point of profit -sharing agreement. This defeats the very purpose of profit-sharing. Disputes are possible as regards the profit-sharing agreement itself.

Model Pay Structures suggested for Stone Craft Gadra Artisans group may have several pay structures, one for each broad job cluster, for instance. The choice may depend on whether job evaluation is formal or informal. The ranking, classification, and factor-comparison methods lend themselves to a single job structure. REVIEW OF JOB EVALUATION METHODS Ranking Classification Factor Comparison Point Plan Rank the job from highest to lowest. Define classes or grades of jobs and fit the organization's jobs into them. Compare jobs on several factors to obtain a numerical value for each job. Rate each job on several compensable factors. Add the scores of each factor to obtain a total point score for each job.
36

Freehand line After you plot the points, you can visuali e the trend of the data. In this case, it is possible for you to draw a freehand line that best describes the plotted points.

COMPLETING T E PAY STRUCTURE At this point the Pay structure consists of a hori ontal dimension and a vertical dimension, with a pay-policy line derived from the plotting of jobs. You could plot every job in the organi ation on the pay-policy line to determine its Pay. For the sake of convenience and practicality though, most Pay structures group data on both the hori ontal and vertical dimensions.
y y

On the hori ontal dimension, group jobs into Pay grades. On the vertical dimension, group money into Pay ranges. Pay Grades If job structures of individual jobs are developed, as is done through job evaluation, it is possible to assign an individual dollar value to each and every job. However, simplified wage andPay structures are easier to administer. On the job side, this means grouping jobs that are close together in the hierarchy into "grades" for pay purposes.

37

A Pay grade is a group of jobs that have been determined by job evaluation to be approximately equal in difficulty or importance to the company. Using grades, large organizations can save much time and effort. Dealing with 10 Pay grades rather than 100's of job rates is much more convenient. When individual job rates are used, even small changes in duties may require changes in Pay. Job evaluation method The following job evaluation methods dictate the type of Pay grades you will use. Point Plan Factor Comparison Ranking grades are a number of ranks a grade consists of all jobs that are comparable to the level description grade contains jobs that fall within a range of points

grade is a range of evaluated rates

Classification

How many Pay grades should you use? There appears to be no optimum number of grades for a particular Pay structure, and in practice, grades vary from as few as 4 to as many as 60. If there are few grades, the number of jobs in each will be relatively large, as will the increments (midpoint-to-midpoint differential) from one grade to another. If, on the other hand, there are many pay grades, the number of jobs in each grade and the increments between grades will be relatively small.

38

Broad banding Recently, there has been a trend toward reducing the number of grades in aPay structure. This movement is called broadbanding. The impetus for this movement has been the fact that organi ations are becoming smaller and the artisans must be more flexible. Broadbanding results in reducing the number of Pay grades and making them "fatter." The minimums and maximums for Pay rates are increased, and the number of points covered in the job structure is increased.

Some companies use broadbanding with the traditional controls inherent inPay grades, such as midpoints, minimums and maximums. Organi ations that use broadbanding in this manner tend to reduce the number of grades until they are about tw as wide as they used to be. ice In the end, its recommended to use 4 grades for a given job structure Grades according to job . classifications need to be defined into A Grade, B Grade, C Grade, and D Grade. The actual establishment of Pay grades is a decision-making process designed to:
y y y y

ensure that the grades fit the organi ation and the labour market place jobs of the same general value in the same Pay grade ensure that jobs of significantly different value are in different Pay grades provide a smooth progression Advantages Broadbanding increases the prospects for cross -functional growth and artisan development in the organi ation. Broadbanding helps artisans to move laterally in an era in which promotion prospects have been reduced.

39

How to set Pay grades Before determining Pay grades, it may be wise to assess how many jobs and how many artisans are affected by the number of grades and the division chosen. This can be done by plotting each artisan on the Pay structure matrix and noting whether there is a spread of artisans over the matrix. Employee acceptance. Since large numbers of artisans may be affected by small changes in Pay grades, great care and fairness must be used in determining Pay grades. Grievances can be avoided by seeing that Pay grades with large numbers of artisans are not placed in a grade that greatly changes their pay rate. Because jobs in a Pay grade are treated as identical for pay purposes, it is extremely important that artisans accept grade boundaries. For this reason, it is often useful to move jobs that are very close to the maximum cutoff point into the next higher grade.

Methods There are a number of ways of grouping jobs into a limited number of grades.
y y y y

cluster division midpoint-progression continuum We will adopt the cluster approach: Cluster approach The simplest approach is to make a scatter diagram of the organization's jobs, as is done in establishing the pay-policy line. When you do this, you can often observe that the jobs tend to cluster rather than scatter evenly. You can take advantage of this effect by encasing the clusters horizontally and vertically, as illustrated in the figure below.

40

Cl ster Approach to Pay Grades Advantage. Clustering has the advantages of simplicity and flexibility: it can be changed each time the Pay structure is adjusted. It tends to be used with ranking or slotting methods of job evaluation, so small organi ations are more likely to use this approach. Disadvantage. This provides all three dimensions, but none of them is arrived at consistently, nor are they likely to be symmetrical. This may have a negative impact on Pay and career progression in the organi ation. Final Result Once Pay grades and Pay ranges are designed, the Pay structure is complete. This is depicted below.

41

Completed Pay Structure Review of how to create this graph The hori ontal axis is the hierarchical ranking of the organi ation's jobs as derived through internal mechanisms, mostly job evaluation. It is arrayed from low to high.
y y y

The vertical axis is an array of financial Pay rates, from low to high. When these two sets of data are plotted, it creates a scatter diagram. A pay-policy line is drawn through the diagram, using either a hand -drawn line or a line of leastsquares.

y y

Around this pay-policy line, Pay grades are developed using the hori ontal dimension. Pay ranges are developed using the vertical dimension. Any one job can now be assigned to the appropriatePay grade. The actual Pay then lies within the range designated for that Pay grade. The midpoint of the Pay grade is considered to be the market
42

rate for the jobs within that Pay grade. Movement within the grade is determined by the organization's pay system policies. Other Options The process described here is, of course, not the only method for establishing a Pay structure. In a Pay structure study, compensation specialists at 37 organizations were queried about how they went about establishing their wage structures. The findings showed that 19 distinct approaches were used, and that only two were performed in as many as 5 organizations. These two were a comparison of market benchmarks with an internal ranking of benchmarks, and a comparison of job evaluation with market benchmarks. Maintenance procedures Problems of Pay structure administration emphasize the importance of job evaluation maintenance. Maintenance, at a minimum, consists of: 1. maintaining updated job descriptions and job ratings 2. insuring that artisans are actually performing the jobs outlined in the job descriptions Human Resources may be assigned the tasks of: 1. analyzing new or changed jobs 2. insuring that job changes are reported 3. monitoring the description and evaluation files to assess their adequacy 4. verifying that identical jobs have identical job titles 5. receiving and processing appeals and grievances with respect to job ratings Supervisors. Supervisors are normally responsible for advising Human Resources of any changes in job content that they are planning to make or have made. They are likewise responsible for seeing that artisans are assigned to tasks and duties included in their job descriptions. To facilitate carrying out these responsibilities, supervisors may be required to meet regularly with each artisan to review his or her job description and, if the job description is not adequate, to request a new analysis and evaluation.

43

Audits. In addition to supervisory requests for job restudy, other methods may be used to maintain the job evaluation system. Human Resources may be set up to audit jobs in all departments on a continual basis. Another device is to limit the life of job descriptions. Thus a job description would be valid only for a certain period, after which the job would have to be restudied. Appeals. A further check on the adequacy of job information and the correctness of job values is the grievance or appeal procedure. Artisans should be encouraged to appeal whenever they believe their job description or job rating is incorrect. An organization's Pay structure should be both internally consistent and externally competitive. It is internally consistent if it replicates the hierarchy and flow of the work. Pay differentials between levels will then reflect differences in skills and responsibility. Benchmarks Thus, all organizations need to understand how their pay relates to competitive levels. Rather than examine every job in the organization, the focus is typically on key jobs, or benchmark positions. Benchmark positions are a representative sample of important jobs.

They are:
y y y

well-defined stable across organizations jobs for which market data is readily available The Pay ranges for benchmark positions are pegged to the market, establishing the framework for the Pay structure. Then, the Pay ranges for the rest of the organization's jobs can be slotted into position, based on their relative value compared to the benchmarks or based on their job evaluation points.

44

Strategy for Product Development and Production

The strategy for product development and production takes a business-oriented approach, ensuring that products developed are market-driven, include associated marketing and business plan, and take into account factors such as time-to-market requirement, product cost, development cost, product reliability, and training and human resource needs.

The following product development core constraints have been identified, and the solutions to these constraints form the basis of the product development strategy.

Core constraints: Inability of organizing institution and individual artisans to design quality products, successfully markets them through viable channels, and sells products at a profit; Insufficient access to product design services and timely market information for new product development; Insufficient capacity of producers to be innovative and creative when producing their crafts; Products produced dont reflect the cultural heritage of Jharkhand, nor are the natural motifs, symbols and images of the area incorporated into the products; Products are priced without any real sense of cost structure or market competition, thus impacting their overall competitiveness; Lack of capacity to identify and link with buyers in key market segments; Lack of access to regular, affordable, and consistent quality raw materials; and Insufficient access to production and product development technology.

Strategy Components The product development strategy focuses on developing demand-driven products from the prioritized list based on identified target market criteria. The strategy builds upon already existing skills and cultural heritage found in Jharkhand, coupled with inputs from new designers, training in core business areas, horizontal and vertical linkages, ensuring access to raw materials and the fostering of entrepreneurship. The strategy uses a business oriented model to identify handcraft items from Jharkhand that will bring long-term benefits to the artisans.

45

It is important to point out that there is a difference between handcrafted products(artisans who produce the same product in exactly the same way) and unique handicrafts (artisans who use their own creativity to produce unique items). Each of these two areas has different customer bases, clients with different preferences, and different distribution, channels. When targeting effective sales of products and identifying markets both customers and products need to be synergistic. This strategy aims to create opportunities for both types of product development: handicrafts and handcrafted products. The following are the main pillars of the product development and production strategy:

Pillar I -New Product Development and New Designs

1. Invest in innovation and product development skills

New products and product lines need to be created that represent the Jharkhand Experience. Product development will take a market-driven approach based on current analysis of what tourists and locals want, raw material availability, quality standards, unique designs and other competitive and enabling factors, which will raise the standards and image of products produced . This type of product development has proven to be more successful than producing products and hoping the market will respond. Products and product lines will be based on the prioriti ed product areas, followed by adetailed feasibility study, and a business and marketing plan for each product line before adetermination of which product lines are to be prioriti ed for development. A feasibilitystudy will provide detailed information on the product specifications, costs, resources needed, timeframe, markets, etc. all of which are essential before any investment is made.
46

Expanding opportunities via combining skills and materials will call for artisans with widerskill applicability and those that can cluster and work well with other artisans. Product development must be an on-going initiative. No design or product will last forever. Every product has a life cycle, meaning that products and product ideas cannot remain thesame forever. In order to continually remain competitive in the marketplace, it will be essential that products and designs be continually explored in relationship to their targetedmarket. This may mean altering, tweaking, expanding, subtracting from, adding to, andchanging product lines to include more market-oriented products. The most successful businesses have used a mixture of different products at various stages in their product life cycle to balance their businesses. This ensures that the more established and profitable products will finance newer products. 2. Hire qualified designers Using the already identified product areas, qualified international and local designers shouldbe hired to design product lines and products that can be successfully sold in the identifiedtarget markets. Experts in each product area will be brought on board to bring expertise in design, new techniques and industry innovations throughoutthe life cycle of the program. Hiring designers based on their area of expertise will bring talent not only in new product lines, but could aid in the adoption of technological innovations and best practices. International designers can be teamed with local designers to mentor and guide the process were local expertise does not exist.

. Build on Jharkhands heritage, cultural designs and locally found resources

There are a number of products that once were produced in Jharkhand for local utilitarian uses.

While new product areas will be included, product development will do best to build on the cultural history of the area, to use locally found resources, and to incorporate local motifs and designs into the products that are produced. This is also a key to gaining trust amongst entrepreneurs and encouraging community involvement. Two core product areas that have potential in Jharkhand are Pyaitkar painting, grass products and recycled Products. Bamboo wares can be made in a variety of

47

si es to hold dates, coffee, spices, soaps, oils and lotions, or made larger to hold other items. Palm leaves can also be weaved into mats and beach hats. Moreover, the trend now is with making sustainable, green products that are eco -friendly. However, before any investment is made and products are produced, adetailed feasibility study must be done. The following outlines suggested cultural motifs that may represent Jharkhand. This is followed by a table that outlines potential product areas and product lines. Key Motifs: Elephants, Bear, Deer Tribal carriages Ancient Jharkhandi weapons Idol of Birsa Subtle color of landscape Flora and fauna Traditional patterning used in embroidery and frame Musical heritage products - such as different drums . Creation of design incentives In order to foster innovation amongst producers and designers, there must be an incentiveto do so. One way is for products to become successful and popular in the market place,but another is to stimulate competition amongst producers and designers through awardsand recognition. A local design competition can be implemented that rewards the best design and product developed with financial or other recognition. This could be done annually or biannually.

A committee would need to be established that reviews products, sets criteria, and designs a campaign to publici e the competition.

6. Focus on Utility Products:

48

The main products of the cluster are decorative items. The utility items in the centre conforming to the latest market trends are not very visible.

Pillar II: Training and Learning Initiatives 1. Business training Artisans will need training in a variety of areas to help them become successful entrepreneurs. Training should focus on basic costing and pricing, product development,marketing, packaging and presentation, and business management. These types of trainingneed to be done over time and repeated when entrepreneurs establish their businesses. The training could first be run through the business incubator during years 1 followed by the -2, design and exhibition centre taking the lead in years 3-4. Training should be participatory in nature, ensuring that practical learning takes place and not purely theoretical learning. Artisan Training Modules, which highlight key learning areas, are experiential in nature, and focus on the essential lessons needed by entrepreneurs. A training-of-trainer workshop for each module should be conducted for designers and excelling handicraft artisans in order to transfer the knowledge to new entrants in the market.

2. Study tours Designers and artisans should be invited on study tours of other craftspeople. As a start they can visit those who are of similar expertise and can be within the region. Thesetours can then be expanded to other states and even trade shows, such as the Handicraft Mela at Kolkata and Dilli Haat as well as art Show or the Craft Show, so that producers/entrepreneurs can see what their competition is like, refine technology used and receive training from peers. But as a start,they
49

could go on a local tour within Jharkhand by visiting local centres i.e Amadubi, Dalbhumgarh, Jhanumdih and other local stores Fab India, Jharcraft, INTACH Centres (stores and boutiques and other identified areas).

Pillar III: Horizontal and Vertical Linkages Created Linkages, both horizontal and vertical, are practically non-existent in the tribal craft project. Establishment of effective stakeholder coordination is critical for growth and sustainability. Cooperation between designers, artisans, tour and travel operators, entrepreneurs, programs, affiliate entities and most importantly the private sector is crucial. Forming a satellite Artisans association Horizontally, producers need to be linked so that they can aggregate responsibilities, lessen burdens by sharing in risk taking, and learn from each other. By strengthening the association in Jharkhand, artisans in Pragati can work with peers more advanced than they and apply core lessons learned to their own production and product development. This serves as a venue for linking artisans together as entrepreneurs, rather than linkages solely based on associated projects. Horizontal cooperation will also reduce transaction costs and mitigate risks. Other horizontal linkages could be made between NGOs, retailers, designers and so on. Vertical linkages are important as well. Creating entrepreneurs that make products and sell them directly to clients will help in creating strong businesses. By linking other private sector into the overall production and product development process, there is greater hope that the products made will sell in the market. Linking designers and artisans more effectively with buyers will go a long way in addressing the fragmentation of the sector and in building on potential market agreements. By identifying strong and diverse local partners the project has more potential to create more longterm, effective change. Hotel chains, retail stores, and developers need to be part of the stakeholder mix, while tourism is not the only venue for handicrafts, the handicrafts sector is a subsector of tourism. Connection with Odyssey Wonder Tourism and solution pvt. ltd. is a positive step in this direction. Access to raw materials Currently there is inconsistent availability of quality raw materials, and artisans are unable to finance material costs. Lack of access to regular, affordable, and consistent quality raw materials can be resolved in two ways: a) Linking producers with buyers who provide them with the necessary raw materials, and b) Creating a raw materials bank.

50

a. Linking Producers with materials though a buyers' consortium Linking Artisans with buyers who provide them with the necessary raw materials to make their products will help to ensure quality, consistency and timely delivery of products. This can be done in years 1-2 through a buyers' consortium and incubator, followed in years 3-4 with the design training and exhibition centre involvement. This will also enable producers to move forward with their production, even if they cannot afford to buy the raw materials in their initial stages of entrepreneurship. b. Establish a raw materials bank A raw materials bank will lessen the possibility of unavailability of resources during low seasons, will increase affordability and consistency in the supplying of materials, and will foster entrepreneurship. Because agricultural raw materials are highly seasonal and irregular, a raw materials bank offers the advantages of being able to buy the materials in advance and store them for use during the low season. These materials can be housed in, and administered through, the design (training) and exhibition centre. Raw materials banks have been used in many places around the world to help producers have consistent-quality raw materials that they themselves can either purchase or take out as a loan. Quality Control Step-by-Step 1. Raw materials. The first step in maintaining quality is careful selection of the materials to be used. Materials should be of the same quality as the sample that was sent to the buyer. If the same materials are unavailable or need to be substituted, the buyer must be notified. All materials should also be examined for quality. Wood should be properly dried or final products will crack. All materials used should be consistent in quality and color. In general, it is not a good idea to compromise quality for cost by using inexpensive, but poorly made materials. Paying a little more for good quality materials will pay off in the long run by building buyer's confidence in your products. 2. Production Process. Your order must match the sample approved by the buyer. To assure this, it is essential to maintain counter samples of the sample sent to the buyer. This will avoid confusion of what the buyer is expecting. Production of the order should be compared to the counter sample several times during the production process, not just once the product is finished. Some buyers may request that a production sample (photo or actual product) be sent to them for their approval to assure that matches their specifications before it is shipped. Quality control throughout production

51

can help identify mistakes and correct them before they result in costly errors. Use a thorough quality control check list for monitoring consistency and quality of your production. 3. Training of artisans. Handcrafts are often made in small workshops, and large orders may be filled by a number of different artisan groups. In this case, extra care must be taken to make sure that the final products are all alike and are the same as the sample. Training and good communication with the artisans is essential. Artisans should understand what is involved in producing crafts for export and how to meet quality requirements. All artisans should be trained in how to check for quality issues as they make the products and be provided with a check list of what to look for when monitoring the quality of their production. 4. Working conditions. Good quality is also a factor of the working conditions of the artisans. Working conditions include things like fair wages, proper work areas and equipment, and artisan incentives. The price paid to the artisan can impact the quality of production, as does the time they have to fulfill an order. If artisans have to produce a large order in a short amount of time, this could result in quality being compromised. If artisans are paid a low wage, they have little incentive to invest time into making a good quality item. Artisans also need to have access to funds to purchase raw materials of the quality desired. Some artisan organizations have developed a savings and loan program, to lend money to artisans for the purchase of raw materials when they need it. Most fair trade organizations should offer pre-financing when placing an order, to assure that artisans can cover the costs of purchasing materials and producing the products. Finally, good quality production also depends on workshop conditions. Work areas should be kept clean and artisans should have the minimal tools needed. Sometimes something as simple as making sure the artisans have tape measurers can make a big difference. 5. Proper packing. Quality can also be compromised if products are not properly packed for shipping. A product may have been made well, but be damaged during shipping, resulting in losses. Entire boxes of products can arrive damaged because they were packed when still wet, were packed too tightly or without adequate protection. Quality control also includes packing products so that they are protected from damages until they reach the buyer. Proper packing is the responsibility of the producer. For more on packing, see the Packing and Packaging section.

52

Effective quality control - review

y y y y

Maintain counter sample originals of the same quality sample sent to buyer. Check quality control at multiple points throughout production process. Use a thorough quality control check list for monitoring consistency and quality of your production. Provide check list for all stages of production and make sure all artisans know how to check for quality issues as they make the products. Quality Control Problems and Solutions Here are some quality control problems that occur commonly and some solutions that can help to avoid the problems, or correct them when they exist.
Quality problem Encountered: Change in colour Unavailability of raw material. Increase in price of raw materials so alternate material used. At times the raw material is defective. Artisans keep changing which affect the quality of the product. Poor packing and packaging Fittings and hinges not done properly. Poor carving and ruff finishing Old and outdated designs Samples not matching with the final products Samples of the products not kept Weaving and stitching problems Unseasoned wood Products get affected due to improper temperatures used during production process Quality supervision either personally or through appointment of quality control person Study and adoption of new designs To maintain and update the catalogue of produc ts Counter samples to be kept of each product. In cases, when it is not possible to keep the counter sample, description of the product to be kept. Raw material of products for which there is regular demand should be purchased in lot. This will not only reduce the purchase cost, but also the raw material will be available when required. In cases where the raw material is not available in small quantities, minimum quantity for which order will be done has to be mentioned. Quality related information and qu ality check list should be displayed at the units. Orientation and training of Artisans on quality aspects. Prepare proper plan before going ahead with the production process. Seasoning the wood is a must and no compromise needs to be done. Keep customers at priority. The producer has to take part in exhibition, tap the local market and ensure regular demand. With regular demand there will be continuous work available, and the artisans will be attached with the producers. Possible solutions: Action plan:

 Appointment of quality control p erson within

One month period.

 Display of the check list provided at the

workshop in the units.

 Writing description of each product to be kept

and item register to be updated.

 Seasoning the wood in lot and the yearly

planning for the seasoning.

 Conducting training for the Artisans on quality

issues and skill up gradation.

 Preparing growth plan for the year.  Counter samples of products should be kept.  Develop new range of products to capture the
competitive market.

 Producers to participate in exhibitions, fairs as

well as tap to the local market

53

Marketing Strategy Sales of handicrafts continue to be confronted by obstacles in meeting the quantity, quality, and cost demands of different segments of the market. To be able to take advantage of new economic opportunities and capture new market segments they need assistance in expanding their production capacity, in upgrading the quality of their products to the standards demanded by buyers, and in overcoming the many obstacles they face in meeting the requirements of the targeted markets. Core Constraints: The core constraints in marketing are the following: Inability to produce products that reflect the market needs or the citys heritage. What is produced is a mishmash of products that are replicas of what is made in other parts of India. Product design is poor and innovation is lacking. Problems in achieving consistency of quality. The prices are not set properly, which impacts the competitiveness of the Jharkhand Handicrafts prices. Little adherence to delivery schedules and quantities, which was one of the main issue No research or understanding of the market needs. Poor marketing efforts are scattered without utilizing specific sales channels. No branding, theme or story that characterizes the products and attracts the buyers. No differentiation between the different market segments with specific products that respond to their market segment needs.

Marketing Status till date:

1. Jharcraft 2. Tata Steel visitors (foreigners & Indians) 3. Tata Steel officers wives 4. Fair (does not have consistency) 5. Corporate gifts 4 nos. of items have been selected and hindrance in registration in Procurement department of Tata Steel 6. Sales outlet in collaboration with JHARCRAFT : space has been identified and under process for some formality

54

Future Plan for Marketing:

1. Development Commissioner of Handicraft DC(H) : for artisans card and for fair linkage 2. TRIFED (Tribal Federation) 3. AIACA (All India Artisans and Craft artisans Welfare Association) for Craftmark brand and ESP (Enterprise Support Programme) programme 4. Tata Steel Procurement Department for Annual Rate Contract 5. Plan to increase footfalls at TCC, Sonari (Sales Outlet)

1. Overall Marketing Strategy The overall marketing strategy focuses on the steps needed to enhance the marketing efforts of the sector to capture a larger market share, and to sei e the opportunities associated with the expanding tourism and corporate investments being made. The marketing strategy focuses on identification of the most appropriate market niches, ensuring proper market access, branding, and marketing of the products efficiently. The strategy will enable collective marketing of the artisans products through the establishment of a marketing consortium and will incorporatethe use of the fair trade approach, which has proved to be successful in marketing handicrafts.
55

Utilizing the above fair trade approach through a consortium entails strong branding and marketing efforts to tell the stories of the people who are making these products, as well as involving corporate clients through their corporate social responsibility activities. Based on the influx of tourists revealed by the survey, and the average budgets for foreigners and Jharkhand tourists, it is expected that the market for the handicrafts products will rise. The following main pillars make up the marketing strategy: Pillar I: Increase Market Access Increasing market access of handicrafts products will be achieved through the following main activities: 1. Developing products based on customer preferences The products that are made must be developed based on target market information and detailed customer preferences. This can be achieved by: Understanding the needs of the target market; Translating the needs into meaningful, beautifully- and well-designed products that Fulfil them; and Delivering quality products to the consumer in a timely manner. 2. Formation of a Handicrafts Marketing Consortium The establishment of a marketing consortium composed of artisans would help in the collective marketing and selling of the products. This might be accomplished through sourcing of sales orders that could be met through group cooperation, the distribution of benefits to all artisans, and the reduction of selling and marketing costs. The consortium would need to emphasize the fair trade approach. Products would be linked to the communities and producers via hangtags that tell a bit about the product, the production process, or a related unique story. The use of hangtags has proven to add value to handicrafts products and give tourists a feeling that they have a unique product with a unique story. 3. Tapping all available market segments (tourists, retail souvenir shops, corporate clients, etc.) The marketing strategy encourages Pragati to target certain market segments. All of the products developed need to be demand-driven, based on the specificities of the individual markets: The tourist market targeting foreigners and locals: Foreign tourists are interested in aesthetically pleasing, cultural products, as well as products that represent Jharkhand. Jharkhandis will look for jewellery and home decorations, as well as products that represent the local culture. Continuous research and analysis should be utilized to understand the demands of each market segment as they evolve over time.
56

 Retail souvenir shops: These shops represent significant sales channel potential. Selling to this segment requires specific agreements with retail shops for the proper display of products and the adequate marketing of the products as "A Pragati Product." Corporate clients: It is anticipated that this segment will represent a substantial share of the market in the near future, as corporate clients vie to foster their corporate social responsibility image. 4. Direct selling through the establishment of a central showroom or market place Showrooms are needed to showcase the beauty, value and aesthetics of each unique piece under one roof for consumer selection. Setting up a conveniently located showroom with the right assortment of products will help market the Pragati handicrafts products and make them more accessible. This should be housed near the centre of town in an accessible area that is frequented by tourists. The already existing outlet at Sonari TCC centre is very much restricted to the visitors of TCC and is not accessible for common public. 5. Establish contacts with tour guides and bus drivers that will help in bringing tourists to the handicrafts showrooms Tour guides and bus drivers play an important role in marketing handicraft products. Contacts with tour guides, tourism development organisations and bus drivers should be established to ensure that Outlets and sites are visited; core shopping areas are included in tours, and that buying handmade products from Pragati is an essential part of every tourists experience. Tour guides and bus drivers might develop specialty tours to Pragatis handicrafts showrooms as part of a local cultural experience time, which can capture a good portion of the tourist market. 6. Tapping the other markets in Jharkhand and rest of India Pragati handicrafts products should not depend only on the local market. Other regions of Jharkhand represent an opportunity where Pragati-produced handicraft products can be sold. Expansion of marketing to other areas should be initiated when the project is sufficiently producing enough quantities and the quality is reaching acceptable levels; this is expected to be achieved in 35 years from the start of aggressive development of the project. 7. Price products correctly Pricing is fundamental to the success of any marketing or sales effort. The pricing of the handicrafts products should be thought through carefully, responding to market requirements while not overlooking the uniqueness of each piece. Pricing should reflect the cost of the product as well as a realistic profit margin that will guarantee the sustainability of the project, while maintaining its competitiveness in the marketplace.

57

This requires researching the target market, understanding the market competition, and knowing the true costs of production. 8. Research and continual update of market needs Understanding continually evolving market needs is a key to producing sellable products, and these needs must be reflected in the products made. Research on designs, quality, prices, packaging and other information should be collected, analyzed and updated continually. 9. Training on selling and marketing techniques Equipping Pragati handicrafts producers with the right skills for selling and marketing their products is important for the projects sustainability. This will be done through training in marketing and selling techniques.

Pillar II: Branding and Promotion 1. Branding The creation of a common brand for Pragati handicrafts is essential for the development of the sector. Pragati handicrafts should be themed under one specific brand that reflects the heritage and traditions of the city and state. A stamp or logo should be designed that characterizes all the products made in Pragati. Souvenir shops that sell products handmade in Pragati should have a sign that emphasizes this and shows that retailers are sourcing locally made products. 2. Creation of a story Telling of artisans' unique stories is frequently a critical component to marketing their craft. Thus a component of the marketing effort should focus on documenting their stories, their techniques, and anything that adds to their products uniqueness. This can be done by adding hangtags to each product giving extra value to the uniqueness of each product. Recognition of the people and organizations contributing to the enhancement of the artisans living standards might be emphasized as well. 3. Organizing exhibitions and festivals The sector stakeholders must join to organize themed exhibitions and festivals that represent Jharkhand's culture and traditions. 4. Creation of a website Informing the public and potential tourists, both within and outside of Jharkhand, about A Pragati handicraft is important for promoting the project. A website that is linked to the key tourism sites in India, as well as those in Jharkhand, should be developed. Information on the site should include products, where to find them, who produces them, as well as the unique stories of the artisans and producers. The website should be linked with the TATAs main webpage so that the
58

visitors that visit the site can browse the Pragatis webpage also. Pragati should also go in for Social media marketing and SEO as well as SEM (Search engine optimization and search engine marketing). 5. Design of attractive brochures Pragati should print brochures that will help in marketing the sector's products. These brochures can be used as a way of promoting products to new customers either through direct contacts or through the participation in local, regional or international exhibitions.

Capacity Building During the next quarter of year 2011, 25 artisans and field functionaries have to be trained across the following sectors: 1. Bamboo craft in-house training: 15 persons is a must and needs to be top priority. 2. Stone craft in-house training: 10 persons 3. Management training: 10 persons within the groups 4. Training on handicrafts and home utility: 15 Inclusion of new members 5. Training of field functionaries Handicraft Development Task Force: 4 officials 6. Exposure outside the state: 1 7. Training on entrepreneurship development: 1 Resource Mobilization: Funding and knowledge sharing to be mobilized from National Bamboo Mission and DONER New Partners Development 1. XLRI Graduates for consultancy, marketing and promotion 2. AIACA Institutional partner for Handicrafts sector development 3. Design resource: Monika (NIFT) proposed for introduction of finishing, polishing and use of power tools. Contact with State convenor INTACH for handicraft linkages, through Odyssey Wonder. 4. Connection with Odyssey Wonder Tourism and solution Pvt Ltd for linkages in tourism sector.

Actions The Top Priority steps that needs to be taken in the direction of setting up a holistic handicraft project:

59

1. Quality, Design, Utility Are the handicrafts high in quality? Are they useful? Are the designs compelling? 2. Verifiable Social Impact Is the handicraft organization committed to verifying its social impact (instead of just saying it does good)? 3. Fair Trade Are the artisans paid a fair trade wage? How much does the organization keep? 4. Transparency Is the handicraft organization transparent? Can a customer review its finances and operations? 5. Personal Connection Can the customer learn about the artisans through videos, interviews, stories and social media?

The Action Plan outlined following describes the actions and activities planned to be implemented in order to undertake the described strategy and achieve its objectives and its vision in the long run.

Segments and Components: The Action Plan is divided into three main sections based on its components; 1) action plan for product development, 2) marketing action plan, and 3) capacity building action plan.

Each section illustrates activities required, responsible entities for the activities, resources needed, targets aimed to be achieved, time frame per activity and cost estimates. Phases: The Action Plan is proposed to cover a five-year duration (2011 2015), where this period is divided into two main phases: Phase one entails all the activities planned to take place during 2011 and 2012, while phase two entails all the actions planned to be implemented in 2013, 2014 and 2015. The segmentation of the Action Plan into two phases reflects the characteristics of each phase. Phase one is mainly the phase of setting the foundation in the sense of establishing infrastructure required, organizational setups, resources, studies and databases needed for the success of the sector. Phase two is the growth phase where the foundation and resources settled will be utilized to transfer this sector from the initiation stage into an income generating sector. It is envisioned that by the end of the five-year Action Plan, the project will be a stand-alone , capable of supporting itself.
60

The detailed Action Plan is presented in the following tabulation to provide a holistic and detailed view on what actions are required in each component, who will implement, when to implement, how to measure attainment and with what cost.

61