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Definition of Business Policy

Business Policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization. It permits the lower level management to deal with the problems and issues without consulting top level management every time for decisions. Business policies are the guidelines developed by an organization to govern its actions. They define the limits within which decisions must be made. Business policy also deals with acquisition of resources with which organizational goals can be achieved. Business policy is the study of the roles and responsibilities of top level management, the significant issues affecting organizational success and the decisions affecting organization in long-run.

Features of Business Policy

An effective business policy must have following features-

1. Specific- Policy should be specific/definite. If it is uncertain, then the

implementation will become difficult.

2. Clear- Policy must be unambiguous. It should avoid use of jargons and

connotations. There should be no misunderstandings in following the policy.

3. Reliable/Uniform- Policy must be uniform enough so that it can be efficiently 4. 5. 6. 7. 8.

followed by the subordinates. Appropriate- Policy should be appropriate to the present organizational goal. Simple- A policy should be simple and easily understood by all in the organization. Inclusive/Comprehensive- In order to have a wide scope, a policy must be comprehensive. Flexible- Policy should be flexible in operation/application. This does not imply that a policy should be altered always, but it should be wide in scope so as to ensure that the line managers use them in repetitive/routine scenarios. Stable- Policy should be stable else it will lead to indecisiveness and uncertainty in minds of those who look into it for guidance.


RECRUITMENT OF SALESFORCE IN AMUL Recruitment Recruitment forms the first stage in the process which continues with selection and placement of the Sales force in the company. The selection process starts with the intent for recruitment by the sales department head. These intents specify the reasons why recruitment is to be made. These intents are conveyed to the personnel department. The personnel department has to check the financial implication of the recruitment to find out whether the additional expenses would be within the budgetary provision if other allowances were determined. It is a positive action as it involves inviting people to apply. Recruitment has been regarded as the most important function because it helps in bringing the right people to the company. There are two types of Recruitment sources followed by AMUL:i. Internal Sources. ii.External Sources. Internal Source:Internal sources include personnel already on payroll of the organization filling a vacancy. It can be done by means of promotions which increases the general level of moral of existing employees and make them to provide more reliable information about the capable candidates. Following are included in this source:i. Present Permanent Employees. ii. Employee Referrals. iii. Former Employees. External Source:These source lie outside the organization in Amul they consider following sources for recruitment. i. Advertisement. ii. Campus Interview iii. Employment Exchange. iv. Unsolicited Application.

Advertisement:For the recruitment, AMUL consider this particular source. They give Advertisement in local newspaper and other newspaper for the post in the sales department with complete job description. Campus Interview:This is second option that AMUL consider. Recruiters are sent to educational institution where they find suitable candidate. AMUL go through this option. They have various famous institutions like IIM, IRMA etc. But this type of recruitment is done for the upper level positions i.e. Assistant managers, managers etc. Employee Exchange:An employment exchange is an office set up for bringing together as quickly as possible candidates searching for employment and employees looking for prospective employees. Employee Referrals:AMUL also considers this option for recruitment. Friends and relatives of present employees are also a good source from which employee may be drawn. Unsolicited Application:Some candidates send in their application without any invitation from the organization. A recruiter can use these unsolicited applications for appointment and when vacancies arise. AMUL considers this option also for recruitment of the sales force in the firm

Requirement of Recruitment:There are so many reasons for recruitment process. Some of them in AMUL are: New Expansion. New Planning. Retirement. Selection:Selection either internal or external is a deliberate effort of the organization to select a fixed number of personnel from a large number of applicants. The primary aim of employee selection is to choose those persons who are most likely to perform their jobs with maximum effectiveness and to remain with the company. Thus, in selection, an attempt is made to find a suitable candidate for the job. In doing so naturally many applicants are rejected. This makes selection a negative function. Following are the steps followed are as under:-

Application Initial interview of the candidate. Employment tests. Interviews. Checking references. Physical or medical examination. Final interview and induction. During this, various steps like Biographic Data checking, Education, Experience, Personal Detail, Aptitude Test, Interest Test, Intelligence Test, Performance Test, Personality Test are considered. Different types of interviews are conducted like: Preliminary interview. Extensive interview. Stress interview. Discussion interview. Structured interview. Non -structured interview. Group interview. Final interview. The Selection Process in AMUL is as Under:Vacancy In Any Department:When there is any vacancy in any any department of the organisation, they give advertisement in the newspapers. Approval From M.D:When there is any vacancy in any department, first step is to take approval from M.D to give advertisement in newspaper. After getting approval the process goes further. Advertisement:After getting approval from M.D., advertisement isgiven in local newspaper for the related post in the sales department. Collection of Application:All the direct applications are collected.

Securitization of applications: After collection, applications are scrutinized in detail and incompatible applications are rejected. others are kept for further process. During this process, suitable applications are considered on basis of criteria decided by AMUL. Interview:Interview is being carried out by a panel of 3 to 4 members consisting of head of Sales Department, M.D. and Manager of Administration. This panel will be rating on different aspects such as personality, knowledge of that particular field, general knowledge, written test etc. They will be having a rating sheet consists of all such headings mentions and each panel member giving marks and then after ranking will be done. Medical checkup:Selected person sent for medical check. It held on interview day in AMUL when candidate found medically fit then selection is done. Selection:At the end they give the appointment letter to the person and he/she is informed about his/her joining in the organization. Induction:Induction is introducing an employee to the job and to the organization. The primary purpose of induction is to give information about organization about organization so that he/she works comfortably. Generally induction conveys three types of information:1) General information about the daily work routine. 2) A review of the organization history, objectives, operation, products, visiting different department. 3) Detail information of the organization policies, work rules and benefits given to employee. At AMUL there is total 20 days induction program, where they include: Internal Induction:The period of this is 5 to 6 days. During this, new recruit gets familiar with the Sales department of organization. External Induction:During external induction program of 6 to 7 days employee is taken at all the plants, the chilling center. As AMUL is a co operative sector an employee should get the feel of village and for that he/she should visit at least 2 or 3 villages.

Finally in 10 days of induction employee get familiar with various departments also that is just to get acquaintance of department like milk procurement department, purchase department, account department etc


AMUL has accepted three methods for the training: On the job training. Off the job training. Out house training. On the job training:Under this method, the immediate superior who knows exactly what the sales trainee should learn and do, gives him/her training at his/her workplace. The management also keeps a close watch and check up the training from time to time. For on the job training AMUL considers following form. Coaching:- under coaching method, the new recruit is trained on the job by his/her immediate superior. Job rotation:- the purpose of position rotation is to broaden the background of the employee in various positions. The employee is made to move from job to job at certain intervals. Off the job training:In the second method some managerial exports from within the organization head conduct the training for the off the job method .AMUL considers the following form: Lecture method: - This is the most commonly used method deployed to speak to large group of sales force about particular topics. The trainees take notes as an aid to learning. The conference method: - In this method, the participating individuals discuss points of common interest to each other. The conference is ideally suited to learning problems and issues and examining them from different angles. Seminar: - Seminar is based on a paper prepared by the sales trainee on a subject selected, in consultation with the person in charge of the seminar. The trainee read his/her papers and this is followed by a critical discussion. Here, various ways of generating competence in the sales people are used and discussed. Out house training:In this method the new recruits are sent to the different training centers outside the organization for the training purpose. Generally this method is used for the training for top management people. Need of Training:In AMUL training provided to all level employee of different department. There are different reasons for training. Some of them are:

When new technology introduce in union. Increase quantity and quality of product. To meet organisation need at all time. For better economic use of materials. To prepare the present employees for higher assignments so that they may promote from within. Effect of Training:AMUL is a largest co operative sector. They provide training to their employees on regular basis and whenever needed. After provide training they get the best result from that. Some results are: Increased effectiveness of work. Increased dedication feeling for the work. Higher productivity


The success of any sales organization depends on the achievement of the sales goal set for the short-term as well as long term periods of time. While other programmes like sales force recruitment, training and motivation are a cost to the company, sales force compensation deals with the management of the performance of the sales people for generating revenue for the firm. Sales people tend to increase and manage their performance by linking it to the compensation they receive from the sales organization. In AMUL, compensation generally comprises of the cash payments which include fixed salary, bonus and shared profit. Good compensation plan have a salutary effect on sales people. They are happier in the work; co operative with management and productivity is up. There can be both monetary and non monetary forms of compensation too. Wages in the widest sense mean any economic compensation paid by the company under some contract to his sales force for the services rendered by them. They are basic salary and allowances. The basic wage is the remuneration, which is paid or payable to the sales person in terms of his contract of employment for the work done by him. Allowance includes dear ness allowance, bonus, overtime pay etc. As there are three levels of management in AMUL, compensation is decided on the basis of their design nation, grade and on the basis of appraisal done. Method of remuneration payment: Time wage:-It is based on the amount of time spent wages measured on the basis of unit of time. Piece wage:- It is based on the amount of work performed. Compensation structure:-( There are 3 sound primary compensation structures.) Internal Equity. External Competitiveness. Performance based payment. Incentive:In the word of Hummel and Nickerson, Wage incentive:- refers to all plans that provide extra pay for extra performance in addition to regular wages for a job. A system of remuneration payment, which would maintain both quality and quantity, is called incentive remuneration plan. There are three broad categories of incentive schemes as classified. They are:

Simple incentive plan. Sharing incentive wage plan. Group incentive plan.

Remuneration Legislation:The government has enacted legislative measures to protect the wage earners rights and to emphasis managerial obligation in this regard. The main wage legislation are: The payment of Wage Act,1936. The minimum wages Act,1948. The payment of Bonus Act, 1965.

Pay policy:According to the report of the third central pay commission:- A sound compensation package should encomoass factor like adequacy of wage, social balance, supply and demand, fair comparison, equal pay for equal work. Fair wages should be fair from the point of view of both employer and employee. While referring to basic wage levels, three terms are extensively used. They are:

Minimum Wages. Fair Wages. Living Wages. The above mentioned terms are used by the report of the committee on fair wages set up government of India in 1948, to determine the principle on which fair wages should be based and to suggest how these principles should be applied. According to this committee, the minimum wage should represent the lower limit, the next higher level is the fair wage and the highest level is the living wage.


Benefits of Product Information Management (PIM) Here is a list of some PIM benefits. If you are looking for any of these results then you are on the right track! * Improve quality of product information * Improve sharing and visibility of product information * Increase effectiveness of promotions * Increase reuse of existing product information * Increase sales of new products * Increase speed of new product introductions * Increase success rate of new product introduction * Improve level of regulatory compliance * Improve profitability of new products * Link MSDS or regulatory design documentation with product data * Meet retailer mandate for product data synchronization * Reduce redundant product data * Reduce time spent to list new products * Reduce time spent to list promotions * Synchronize data directly with partners * Synchronize data with various data pools Better control product information processes * Better enable fulfillment of product information requests from partners * Better leverage product information for marketing campaigns and advertising * Better manage manufacturer/retailer relationships * Centralize product information into one accurate system of record
* Decrease costs due to incorrect order and invoice errors * Decrease data management administration costs.


Amul's philosophy had all along been to deliver value for money to its customers. Despite being priced economically, Amul maintained its product quality.

It's beginning to clamour for more just "like the MNC'' it always hated. Amul, which has always targeted multinational food companies for its outrageous pricing policy has for the first time priced a product above the one marketed by its MNC rival. Amul Shakti, a new health beverage launched in the north-east is selling at Rs 110 per 500gm, a good Rs 1.50 more than Glaxo Smithkline Beecham's Consumer Ltd's Horlicks at Rs 108.50 per 500gm. There are reasons behind Amul's sudden up-market price strategy. The cooperative knows that milk prices are slated to go up due to the downswing in liquid milk procurement. So, consumers will feel the need to switch over to milk substitutes. Two, consumers perceive low-price nutritional food items as inferior. If a company prices a health food brand even a rupee less than its rival, then it instantly loses value in the eye of the consumer. Two, the nutritional category rides on the strength of promotions and freebies. If Amul has to give away mugs and packs of butter free with bottles of Amul Shakti, it has to recover their costs somewhere, say industry experts. But Amul says it has turned a new leaf for reasons far more important. "The milk content in Amul Shakti is much more than Horlicks and Complan. The cost of production is higher,'' said a senior Amul official. "Also, the price of skimmed milk powder used in the concentrate is on the rise. In this context, we cannot afford to sell cheaper than our existing price point,'' he added. Amul chose the north-east to experiment with its new marketing strategy because the area is milk deficit with the lowest procurement and sales quotient. It feels that consumers in the region will be willing to pay a price for a good product, a line which multinational companies have all along peddled. Amul's new game has given some relief to GSK which has often been accused of breaching the psychological price point of Rs 100. Some say Horlicks lost share last year - 17% drop in volume and 12.5% drop in value - because it priced itself out of the market but failed to expand the category. Sources say that the health beverage category was on a downswing because companies hiked prices every year. But milk prices remained stable in the last 3-4 years. People didn't feel the need to look for substitutes. But Amul feels that the only way it can grow is through getting into other milk-based categories, health beverage being one of them. The two variants of Amul Shakti will roll out throught the country by the year end. Even though the Amul Shakti brand is used for flavored milk also, it will not confuse the consumer as flavored milk is for people on the move while the health beverage is for home consumption.