Part I – Industry related

Profile of the Organization

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Human beings have relied on clothing and food to survive ever since they appeared on

earth. The clothing or textile industry thus began very early in human history. While early people

used their hands to weave and knit cotton or wool into fabric or cloth, it was not until the late

18th and early 19th centuries that the Industrial Revolution changed the way of making clothes.

People started to use various kinds of energy to supply power. Nevertheless, cotton, wool and

cellulose fibres remained the major raw materials. Since the Second World War, the production

of synthetic fibres developed by the petrochemical industry has increased tremendously

After the exclusion of global quota scheme, the textile industry is flourishing at high

speed. The world is on a new corridor of industrial revolution. Analysts are anticipating more

expansion with latest technologies in Textile Machineries. The textile machinery manufacturing

hubs like China, Germany, Italy, Switzerland and India have already jumped in gigantic

competition to craft and bid best technologies in textile machineries. Demand for sophisticated

machines that produce high quality cloth is increasing.

1. TEXTILE INDUSTRY PROFILE

1.1 GLOBAL SCENARIO

The Textile & Clothing trade in the global market is fast changing with the scaling up of

uses of textiles in diverse areas. Asian countries including India play a dominant role in the

international trade of the global market. China has the major share in textile and clothing trade in

the international market etc. Both Bangladesh and Hong Kong have a significant share.

However, India is still on the back seat. It is reported that Asian counties export most of textile

and apparel to Europe and North America and USA etc.

Asian countries are gaining in textile trade due to lower costs compared to African,

European and South American countries. As per the Global Textile and Apparel Industry: Vision

2015, World textile and apparel trade is expected to reach US$805bn by 2015 from US$650bn in

2010. At present few countries like Bangladesh, Thailand, Cambodia, Sri Lanka, Pakistan

contribute major share in Forex earnings of their country from Textile and Clothing trade, though

their share in the world market is not very significant.

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In the year 1995, WTO had renewed its MFA and adopted Agreement on Textiles and

Clothing (ATC), which states that all quotas on textile and clothing will be removed among

WTO member countries. Despite the early onset of the trend towards globalisation in the global

textile and clothing industry, international trade in the sector was and still is heavily regulated.

For instance, up to the end of 2004, the WTO Agreement on Textiles and Clothing (ATC), which

superseded the Multifibre Arrangement (MFA), was in force. Both limited the global trade in

textiles and clothing by imposing quotas. Although now these have been abolished. However the

level of exports in textiles from developing countries is increasing even if in the presence of high

tariffs and quantitative restrictions by economically developed countries. Moreover the role of

multifunctional textiles, eco-textiles and customized textiles are considered as the future of the

textile industry.

1.2 INDIA TEXTILE INDUSTRY

Textile industry in India is the second largest employment generator after agriculture. It

holds the significant status in Indian asset provide. It is the one of the earliest industry come into

existence in India and it account for more than 50% of total exports. It was predominantly

unorganized industry even a few years back, but the scenario started changing after the economic

liberalization of Indian economy in 1991. The opening up of economy gave the much-needed

thrust to the Indian textile industry, which has now successfully become one of the largest in the

world.

India textile industry largely depends upon the textile manufacturing and export. It also

plays a major role in the economy of the country. India earns about 27% of its total foreign

exchange through textile exports. Further, the textile industry of India also contributes nearly

14% of the total industrial production of the country. It also contributes around 3% to the GDP of

the country. India textile industry is also the largest in the country in terms of employment

generation. It not only generates jobs in its own industry, but also opens up scopes for the other

ancillary sectors. India textile industry currently generates employment to more than 35 million

people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.

Indian textile industry can be divided into several segments, some of which can be listed as

below:

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Cotton Textiles

Silk Textiles

Woolen Textiles

Readymade Garments

Hand-crafted Textiles

Jute and Coir

India textile industry is one of the leading in the world. Currently it is estimated to be around

US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current

domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from

the current US$ 34.6 billion. The textile export of the country was around US$ 19.14 billion in

2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is also

expected to increase from 4% to 7% within 2012.

STRENGTHS

Vast textile production capacity

Large pool of skilled and cheap work force

Entrepreneurial skills

Efficient multi-fiber raw material manufacturing capacity

Large domestic market

Enormous export potential

Very low import content

Flexible textile manufacturing systems

WEAKNESSES

Increased global competition in the post 2005 trade regime under WTO

Imports of cheap textiles from other Asian neighbors

Use of outdated manufacturing technology

Poor supply chain management

Huge unorganized and decentralized sector

Govt. Regulations

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High production cost with respect to other Asian competitors

CURRENT FACTS ON INDIA TEXTILE INDUSTRY

India retained its position as world’s second highest cotton producer.

Acreage under cotton reduced about 1% during 2008-09.

The productivity of cotton which was growing up over the years has decreased in 2008-

09.

Substantial increase of Minimum Support Prices (MSPs).

Cotton exports couldn't pick up owing to disparity in domestic and international cotton

prices.

Imports of cotton were limited to shortage in supply of Extra Long staple cottons.

1.3 TEXTILE INDUSTRY IN KERALA

The first cotton textiles mill was established in 1883 in Kallai near Kozhikode by P.S

Santhappa Chettiyar and M. Guptan Namboothiripad, known as Malabar Spinning and Weaving

Mill. The commercial production was started in 1887. Later in 1976 the mill was taken over by

Government of Kerala and handled over to Kerala state textiles corporation. The second mill

presently called Parvathi Mills Ltd. Was started in 1884 by James Darragan, an English man

using 19 acres of land donated by the Maharaja of Travancore. In 1888, the mill was sold to

another British industrialist named AT VIN. In 1932 the management was taken over by Kerala

Textiles Corporation. In April 1974, the mill was nationalized under sick textiles undertaking

(nationalization) Act and was made a unit of National Textiles Corporation (NTC) Limited

Bangalore, which is a subsidiary of NTC Delhi. Sitaram Textiles Ltd., another oldest mill was

established in 1903 as a Private Limited Company. Balarama Iyyer started it. Later due to

mismanagement and labor trouble, company was liquidated in 1954.

The factory was gutted down due to fire in 1959 and spinning production was completely

stopped. The Government of Kerala purchased this unit as a result of liquidation and public

auction in 1972, with the modest start of these mills, the number of cotton textile mill rose to 31.

The government of Kerala has announced in state assembly on March 29, 1994, its Willingness

to start 5 more spinning mills, one each of Kazargod, Kozhikode, Trissur, Kottayam and

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Malapuram along with the commissioning of corporative spinning mill at Alappy with a spindle

capacity of 6000 spindles.

Cotton textiles industries are concentrated in district of Trissur and Palakkad followed by

Ernakulum and Kannur. These four districts together account for nearly 3/4th of the spinning

mills in Kerala. The numbers of existing composite mills are quite low i.e., only four in number,

its growth during the last 10 years is nil. Due to the unprofitable nature of composite mill,

Malabar spinning and weaving mill discontinued its weaving operation and concentrated on

spinning only. Calicut modern spinning mill once turned sick is now taken over by a financially

sound third party and found earnings before the last, decade. There are 7 cotton textile mills in

Trissur including one composite mill. Kottayam stands last in the list with only one state owned

mill.

There are 16 private mill in Kerala of which 14 are spinning mills and the rest 2 are

composite mills. The national textile corporation has got under it, 4 spinning mills and 1

composite mill. The corporate sector owns only 2 spinning mills. In Kerala the Trissur

corporative spinning mills with an installed spindle capacity of 12,000 spindles is the smallest

mill followed by Kathayee Cotton Mills Limited with 14,860 spindles.

Another welcome feature was that a 100% export oriented unit, Past Pin India Ltd.

Started commercial production at Palakkad. These units are located at Palakkad near Tamilnadu

border. Another corporative mill, Allepey Corporative spinning mill at Kayamkulam is yet to be

commissioned. Out of the 31 mills in Kerala, 14 are private sector, 8 under National Textiles

Corporation, 4 under Corporative Sector and 5 under K.S.T.C.

2. ORGANIZATIONAL PROFILE

2.1 INTRODUCTIONS TO ANNA GROUP OF COMPANIES

More than three decades age in 1968, when Mr.M.C.Jacob founded the Anna Aluminum

Company, he made a break with the past. Belonging to an affluent family of plantation owners,

he ventured in to the risk world of manufacturing industry and hoped for the best, while working

very hard to make his maiden venture to a great success. Today the group is involved in

manufacturing of aluminum sheets, circles, vessels and utensils, spices, and fabric, school bags,

garments and marine exports etc. The ‘Anna’ range vessels and utensils are highly popular in

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domestic market and in the Middle East, U.S.A, Africa, and Australia. The group of turnover is

around 200 cr.

Anna-Kitex group is one of the leading industrial groups in the state of Kerala employing

more than 12,500 personnel for the past 40 years. The group is engaged in the manufacture of

diverse products like garments, textiles, school bags, travel bags, umbrellas, aluminum utensils,

kitchen appliances, branded spices, curry powders and ready to eat food which is marketed in the

famous brands of Kitex, Scooby-day, Anna aluminum, Chackson and Saras. The Anna-Kitex

group is a pioneer in the fashion industry Anna Group, Where quality - the buzzword - has built

success.

Anna range of vessels and utensils are highly popular in the Middle East, USA, Africa

and Australia. The organization comes under Anna Group are as follows:

a. Kitex Limited

b. Anna Aluminum Company (Chackson)

c. Sara’s spices

d. Kitex Garments

e. Scoobeeday products pvt ltd

2.2 KITEX LIMITED

Anna Group’s weaving unit, Kitex Limited was established in 1975. The company is

engaged in the production of fabrics made of cotton and other blends, grey cloth, bed sheets and

lungies. Through the years, the company has carved a niche for itself in this highly competitive

industry with its tradition of world class quality.

Kitex is engaged in production of fabrics made of cotton and other blends, grey cloth, bed

sheets and lungies are available in four various types-Executive, Medium Super, Medium and

Economy all are priced differently. Kitex white gives us an array of white dhothies single as well

as double. It becomes with streaks of colors and gold to add to the looks our dhothies. We also

have beautiful and wide range of bed sheets under the label of Sweet Dreams. Through the years

the company has carved a niche for itself in this highly competitive industry with its tradition of

world class quality.

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Kite has a well-organized production department and is committed to cent percentage

quality in all the production process. In the production department Kitex has 383 power looms

and 22 automated loom. There are about 390 workers in the plant. They use both automated and

power looms in the production process. The annual sales range is in between US $10 million –

US $50 million. Kitex follows a line organizational structure and their span of management is

narrow due to this they have the advantage like reinforcing authority relationship by emphasis of

status given, preventing cross communication etc. Kitex is going in for a major expansion plan to

augment the production capacity. At the dawn of the new millennium Kitex entered in to the

luggage and baggage industry under the brand name of scoobeeDay. The Company achieved an

all time high performance on account of both Revenue and profits. While the Gross revenue

touched Rs 456 crores which was up by 42% and the PBT went up to Rs 88 crores which went

up by 100% when compared to last year. This was possible only by the high level of

modernization, selection of right technology, correct product mix, a concerted efforts by the

whole team in management, all employees and whole hearted support provided by our banks,

other financial institutions, esteemed customers and suppliers. Based on the above excellent

performance and in order to reward the shareholders of the Company at the appropriate time for

the full support extended by them all these years, Board of Directors is recommending a dividend

of 100%. The Company has capitalization worth Rs 74 crores as on the year 2013-14 and the

major portion was utilized for expansion in its Process plant. Major International buyers like

KOHLS and THE CHILDRENS PLACE also supported the Company by placing new and

substantial orders with us. The Company now plans to take its performance to next level by

further modernization, creating new markets in Europe and US by implementing niche products

using high tech and time saving machinery and devices, improvement in quality of its employee

by training, research and development.

The Company has also plans to introduce its own brand in USA in the coming year, and

the ground work for the same has already commenced, which we expect will bear fruit in the

following years. The Company was upgraded to A(-) by ICRA during this financial year. The

Company’s share price at the stock market has touched an all-time high of Rs.111 compared to

an average of Rs.60 in the previous year. With the order books getting bulkier, Kitex is confident

that it will become the leading manufacturer in the WORLD, in the INFANTWEAR APPAREL

SEGMENT by the end of 2015 calendar year.

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2.3 VITAL STATUS

Name Kitex Limited

Address Kizhakkambalam, Aluva

Registered Kizhakkambalam

Nature of the incorporation Privet Limited Company

Nature of Business Manufacturing of cotton textiles & bag

Nature of Product Industrial Products & Consumer Products

Brand Name of the Product Kitex

Total Built up area 16, 50,000 sq.feet, 500 modern looms,

20million sq.meter of cotton, & cotton Blends.

Employment potential 1800

Production Capacity 3,500 sq.per day

Total Capital Employed Rs 3, 39, 01,060

Annual Sales Range 200 crores

Growth Steady

Founder Sri: M.C.Jacob

Chairman Mr Bobby.M.Jacob

Director Mrs: Mini Bobby Jacob

Managing Director Mr Sabu jacob

Auditor M/s Kolath & Co

Banker Federal Bank, ICICI, Canara Bank

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2.4 PRODUCT DETAILS

2.4.1 LUNGIES

a. Executive

Superior quality lungies available in various designs and colors.

b. MediumSuper

Comfortable lungies you would love to drape. Available in various designs and color

combinations.

c. Medium

Experience freedom and coolness with Medium range of lungies; comes to you in warm

colors and in various designs

d. Economy

After a hard day’s work, jump into lungi to ease your tension, to sooth your senses and

to feel relaxed.

2.4.2 DHOTHIES

a. Smartline

White single dhothy with streaks of either dark red or dark blue or dark green lines,

which can be worn equally at home and outdoors.

b. Smartline

Cream color single dhothy with streaks of Gold Jerry lines for special occasions.

c. Ready wear

Plain white single dhothy you'll love to drape. The anywhere, anytime wear.

d. Samrat

Pure cotton white double dhothy with lines in 5 different colors to choose.

2.4.3 BED SHEETS

Following are the types of bed sheets

a. Sweet dreams 50

b. Sweet dreams 60

c. Sweet dreams double sheet

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d. Dbl.Side 60 bed sheet + 2 pillow covers

e. Solitude double sheet

f. Sweet dreams king knight

g. Duplex / solitude bed sheets + 2 pillow covers

h. Soft dreams king size + 2 pillow covers

i. Sweet dreams DS + 2 pillow covers

2.4.4 SCOOBEE PRODUCTS

At the dawn of new millennium the new generation was presented with an innovative school bag

from Kitex, the main offshoot of Anna Group. ScoobeeDay bags are compactly designed with

unique features that make it durable, colorful, comfortable and easy to carry. The bag features

anti strain shoulder padding’s and acupressure buds specially designed to minimize the strain on

the back and shoulders.

Following are the types of bags:-

a. School Bags

b. College bags

c. Kinder garden bags

2.4.5 TRAWELLDAYBAGS

The company has ventured into a new segment of bag production as TREWELLDAY bags. This

wide ranges of luggage and baggage products with latest trends and design and is made from

imported raw materials. The bags are priced premium and has good market share. The price

range is from Rs.650/- to Rs.3000/-. The range includes

a. Trolley bags

b. Travel bags

c. Business bags

d. Lap- top bags

e. Back- pack bags.

f. Beauty case bags

2.4.6 DAGO BERT SHIRTING AND SUITING

Dago Bert Shirting and Suiting are woven from the finest cotton, using the toughest materials

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that are soft to touch when draped on your body. Featuring the most contemporary designs along

with the latest weaving techniques, Dago Bert Shirting and Suiting are available in variety of

colors and shades.

2.4.7 AGNA AND ADONIS INNER WEAR

Kitex has made its foray into the untapped lingerie segment with brand names Adonis and

AGNA. ADONIS-inner wear for men and AGNA- inner wear for ladies, with Anna group

promise of quality, both comes competitively priced and ensure complete value for money.

ADONIS a range of refined vests and briefs and AGNA a range of Bras and Panties ensure

seamless fit and finish. Both brands use specially processed fabric which feels smooth and

healthy even on the soft skin of newborns. It provides ample space for stretching, bending and

rigorous exercise without tearing.

2.5 Competitors of Kitex Ltd

1. Zodiac clothing Ltd

2. Page industries

3. Lovable lingeri ltd

4. KPR Mills

5. Pearl Global Ltd

2.5.1 ZODIAC CLOTHING LTD

Zodiac - one of the largest shirt companies in the world, designs, manufactures and sells quality

shirts to the best brands and stores across the globe. The company is in the business of men's

fashion for the last 58 years and is benchmarked in India for providing discerning customers the

finest quality clothing.A 300+ crore, vertically integrated, design and marketing driven clothing

company, Zodiac employs approximately 3500 people in 16 offices and 7 manufacturing plants

located across India, UAE, Germany, USA and U.K.

2.5.2 PAGE INDUSTRIES

Page Industries Ltd., located in Bangalore, India are the exclusive licensees of JOCKEY

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International Inc. (USA) for manufacture and distribution of the JOCKEY® brand

Innerwear/Leisurewear for Men and Women in India, Sri Lanka, Bangladesh ,Nepal and UAE.

Page Industries is also the exclusive licensee of Speedo International Ltd. for the manufacture,

marketing and distribution of the Speedo brand in India

The Company was set up in 1994 with the key objective of bringing the world renowned brand

"JOCKEY®" to India. It commenced operations in the year 1995 with the manufacturing,

distribution and marketing of Jockey® products. Its promoters, Genomal family, who have been

associated with JOCKEY International Inc. for 50 years as their sole licensee in the Philippines.

Page Industries became a public company in March 2007 and is quoted in the Bombay Stock

Exchange and the National Stock Exchange of India.

2.5.3 LOVABLE LINGERI LTD

The Company, incorporated in the year 1987, is one of India’s leading women’s innerwear

manufacturers. Our products include brassieres, panties, slips / camisoles, homewear, shapewear,

foundation garments and sleepwear products. On December 26, 1995, our Company was

licensed the brand “Lovable” from Lovable World Trading Company, USA. Subsequently, by an

agreement dated December 23, 2000, the Company acquired the brand “Lovable” from Lovable

World Trading Company, USA on an exclusive basis for the territories of India, Nepal, Sikkim

and Bhutan. The innerwear products manufactured under the brand “Lovable” cater to the

premium segment market in India.

2.5.4 KPR MILLS

KPR Mill Limited is one of the largest vertically integrated Apparel manufacturing companies in

India producing Yarn, Knitted Grey & Dyed Fabric and Readymade Garments.The Yarn division

has 3, 53,088 spindles with a production capacity of 90,000 MT per annum. With the most

modern machinery of International Standards, KPR produces Combed, Grey Melange , Carded

& Compact yarn meant for apparels of world’s Leading Brands. Fabric division is equipped with

high speed automatic circular knitting machines that can knit 21,000 MT per annum of different

kinds of fabric. Its Fabric Processing unit has a capacity to process 9,000 MT per annum with

trendsetter ETP.

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2.5.5 PEARL GLOBAL LTD

A multinational ready to wear apparel business . They currently operate in 6 strategic locations &

2 continents, with a turnover of 270 Million USD (Yr. 2010-11), leveraging the strengths of each

country in creating a strong value for our clients. Pearl Global ltd provides global supply chain

solutions for the fashion industry Anywhere & Anytime. They have complete control on the

entire value chain from design & development, manufacturing and sourcing up to pre retail

services, warehousing & delivering at the customers door step on a call on and call off

basis.Pearl Global is truly a Multi Country, Multiproduct, Multi continent, Multi Domain

company which is successful in Integrating multiple cultures values and people therefore being

truly global.

2.6 RESEARCH & DEVELOPMENT

2.6.1 SPECIFIC AREAS IN WHICH R&D CARRIED OUT BY THE COMPANY.

a) Quality Up gradation

b) Developing wide range of products

c) Productivity enhancement

d) Quality Control Management

2.6.2 BENEFITS DERIVED AS A RESULT OF THE ABOVE R&D

a) Increase in production and capacity utilization

b) Repeat order from customers due to consistency in quality

2.6.3 FUTURE PLAN OF ACTION

a) Cost-efficiency in manufacturing operations through better methods

and techniques of productions

b) Increasing range of production.

c) Development of new markets.

2.7 CORPORATE SOCIAL RESPONSIBILITY

Making a meaningful difference for the Kitex Group, reaching out to the under privileged

is ingrained into its ethos and part of its heritage. These values transcend business interests and

move into grappling with the "quality of life" challenges that under-served communities face and

work towards making a meaningful difference to them. The Board of Directors, Management

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and all the employees subscribe to the philosophy of ‘compassionate care’. We believe and act

on the philosophy of generosity and compassion, characterized by a willingness to build a better

society. Kitex vision for CSR, is to transform Kizhakkambalam Panchayath into the best among

the 978 Panchayaths in the state. In the past year, the Company undertook the CSR initiatives at

the grassroots level that impacted many lives.

2.7.1 HEALTH CARE.

Health and Medical Check-up Camps were conducted, in which about 3800 families participated.

Free medicines were distributed and follow up medical facilities were extended to 463

major/minor operations at some of the leading hospitals in the district.

2.7.2 DRINKING WATER

Safe drinking water was provided to some of the backward colonies located in and near the Kitex

factory. Six bore wells were provided in these colonies with provision for water storage tanks

with a total capacity of 1.02 lakh liters

2.7.3 HOUSING

Renovation work for 40 houses located within the backward colonies in Kizhakkambalam

Panchayath was undertaken and more are under consideration.

2.7.4 AGRICULTURE

Participative Farming was undertaken on 300 acres of farmland with the full co-operation of

farmers in and near the Kitex factory. Multi-crop harvesting was carried out through the year.

2.7.5 EDUCATION

At the beginning of school calendar year of 2013, the Kitex Group distributed 2278 bags to

school children in the backward areas of Ernakulam District with an effort to extend primary

education to financially backward students.

2.7.6 FOOD SECURITY PROGRAMME

Kerala witnessed a heavy monsoon that debilitated life in many areas. During the last monsoon,

the Kitex Group distributed 65 Tons of food materials which included rice,pulsesand cereals to

the needy in the food season. This benefit was extended to about 500 families on a regular basis.

2.8 SWOT ANALYSIS OF KITEX LTD

The basic objectives of SWOT Analysis is to provide a frame work to reflect on the ability to

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overcome barriers and to avail of opportunities emerging in the changing environment, the

diagnosis of strength and weakness can be fruitfully on if the environment factors and market

conditions are considered always with the internal capabilities. SWOT analysis is important tool

to find strength, weakness, opportunities and threats. These factors reveal the internal and

external factors which affects the company.

Strength, weakness, opportunities and threats are the elements or key factors that influence the

survival and development of any organization. The followings are the SWOT analysis of Kitex

Ltd.

STRENGTH

Largest manufacturer of textile products in Kerala

Pioneers in their segment as a brand

Effective distribution channel

Products are benchmark for other company

Better employee-employer relationship

No trade union

ISO certification

Highest market share for lungies.

WEAKNESS

Lack of modern weaving machines and quality checking machines

Huge variations in the incentives with change in season

The organization does not have any ERP in place.

Non utilization of full capacity.

Less usage of modern ways of transaction

Market Share of Dhotis and School bags on a lower side.

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OPPORTUNITIES

India with a large cotton cultivation has a great scope in textile market

Growing market demand about 15-20% per annum

Increase opportunities in export market due to globalization

Availability of land for expansion

Scope of expansion to rural areas.

THREATS

Sales of some products depend up on seasons

Presence of reputed competitors in the market

Kitex faces a great threat from China in the textile market

Efficiency is low with the use of old machineries

Medium market coverage

The change of style is very frequent in textile industry.

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Part II –A Structural –

functional analysis of the

Organization

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ORGANIZATIONAL STRUCTURE

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Chart 1

Kitex Ltd follows the line or military organizational structure. Managing Director is the

top level, other functional managers followed by him. The span of management in the

organization is narrow span. The main advantage of this type of control is that close

supervision, clear chain of command, and close control and fast communication between

subordinates and supervisors. The model of the organization design is mechanistic model.

An efficient management system plays a dominant role in the success of all business

units. It is this section that declares the levels of output, its product in pattern, pricing technique,

marketing style and even the mode of conduct to its executives. Managing director who are the

representatives of the shareholders take the important decisions of the group concerns. They

perform strategic planning and policy making functions of Kitex ltd. For their help General

Manager, top executives of the company management are appointed. General manager is

responsible for the smooth, efficient and productive functioning of the units from the production

to the marketing. The middle level management comprises of production manager, marketing

manager, financial manager, personnel manager and purchase manager, and store manager and

quality controller.

Average Qualification of Employees

a. Top Level: Professionally qualified having sufficient industry experience.

b. Middle Level: Graduation and above with experience in the relevant areas (both technical

and managerial)

c. Junior Level / First line management: Diplomas / industrial training certification in the

textile industry and experience.

3. FUNCTIONAL DEPARTMENTS

3.1 LINE FUNCTIONS

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3.1.1 FINANCE DEPARTMENT

Chart 3.1 showing the structure of Finance Department

The finance department is headed by the general manager having sufficient industry

experience in the field of finance, taxation, company law and financial management. Finance is

the life blood of business. Finance department consists of all the managerial activities of raising

funds and effective utilization. Finance department lies in the decision making area of

investment, finance and dividend. Recruitment and promotion in production are the activities of

H.R. department, but the payment of wages, salaries and other benefits are done by the finance

department. Finance department in Kitex Limited is headed by the finance manager. He decides

from when and where to acquire funds, to meet firm’s investment needs. He should determine

the proportion of debt to equity. The finance should strive to achieve the optimum capital

structure for the organization.

Major Functions of Finance Department

1) Recording of the day today transactions- accounting.

2) Preparation of various statements regarding stock, receivables etc., which are to be

submitted to various authorities like bankers, insurers etc.

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3) Planning and controlling of the expenses/ funds for productions.

4) Approving and making payments to different parties creditors/ suppliers.

5) Receiving payments from customers/dealers in specified time.

6) Raising short term loans/credit from banks and other financial institutions.

7) Preparation of sales budget/revenue budgets and expenditure budget on a quarterly basis

8) Preparation and maintenance of costing records.

9) Preparation of fund flow and cash flow statements for every month.

10) Timely preparation and filing of financial records.

11) Preparing and filing of quarterly and final income tax returns.

12) Preparation/implementation of cost reduction and cost control programs.

In addition to the above mentioned work the following reports are prepared by the following

department.

a) Annual report containing past performance, current financial figures, profit/loss A/C,

Balance sheet and other financial statements.

b) Half yearly & quarterly report.

c) Monthly report to top management on financial performance of the company including

Sales achieved, production achieved and profit generated.

d) Conduct and Co-ordination of internal and statutory audits.

e) Perpetual stock verification & asset verification.

f) Investment analysis/ feasibility studies in production supply order received contracts etc.

The finance manager is responsible for maintaining funds at an optimum level. Care is taken to

see that working capital never gets blocked anywhere at any time. The company meets working

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capital requirements usually by bank overdrafts and other short term loans on the security of

stock of finished goods.

The company has a total investment of Rs.5 crore and annual turnover of around 114.5crore from

the sale of grey fabric and finished products.

Year ended 31st March,

2014

(Rs in lakhs)

Year ended 31st March,

2013

(Rs in lakhs)

Total Income 45555.36 32100.85

Profit before Depreciation 9786.53 5266.21

Profit before Tax 8818.53 4404.08

Profit After Tax 5736.88 2937.68

Transfer to General

Reserve

600.00 300.00

Table 3.1

PERFORMANCE REVIEW

Kitex achieved an all time high performance both in turnover and its profits.

The Gross revenues touched Rs.455.55 crores which is 42% more than last

year and the Profit before depreciation and taxes recorded was

Rs.97.87Crores which is also up by 86% as compared to previous year. Your

company coupled high level of modernization with,concentrated efforts of

both Management and employees, the whole hearted support of Banks,

suppliers and customers to attain these levels of performance. The earnings

per equity share (of face value Re. 1)for the year increased to Rs.12.08 from

Rs.6.18 for the previous year.

DIVIDEND

Company recommend a dividend of 100% (One Rupee per Share of face

value Re1/-) for the year, (as against 80% for the previous year ended 31st

March, 2013), subject to the approval of the shareholders at the ensuing

Annual General Meeting. An amount of Rs.6.00 crores has been transferred

23

to General Reserve as per the existing provisions of Companies Act 2013

read with Companies Act, 1956 and rules thereunder.

CAPITAL EXPENDITURE

As at 31st March 2014 the gross fixed assets stood at Rs.23739.64 lakhs and

net fixed assets Rs.18120.61 lakhs. Additions during the year amounted to

Rs.7363.99 lakhs, which include addition to land and building for Rs.248.98

lakhs, plant & machinery and other assets amounting to Rs.7115.01 lakhs.

FOREIGN EXCHANGE EARNINGS AND OUTGO

2013 - 14 (Rs in lakhs) 2012 - 13 (Rs in lakhs)

Earnings on account of

Exports

32623.58 24808.90

Outgo on account of Import

& Expenditure

9450.21 2805.48

Table 3.2

3.1.2 PRODUCTION DEPARTMENT

Chart 3.2 showing the structure of Production Department

24

Production is the process by which raw materials and other inputs are converted into finished

products. The core of a production department is its conversion sub- department wherein

workers. Materials and machines are used to convert input into products and services. This

process of conversion is the heart of production function and is present in some form in all

organizations. New manufacturing processes are being introduced and existing ones are being

developed further for more improvement. Improvements in quality of products can be achieved

with a proper design that takes into consideration the products functional requirements and its

manufacturing aspects. The design process which takes proper care of manufacturing process

would be the ideal ones as it ensure a better product being made available at economical cost.

Production manager in Kitex is also known as weaving master. In Kitex the plant layout

followed is product layout which is also known as straight line layout. It involves the

arrangement of machines in a straight line. It has many advantages like low cost of material

handling, there will be product standardization. The company has a production of about 18000

meters of grey cloth per day.

Functions of Production Department

Design of the product

Design of the production system

Production planning and control

Selection of location

Layout of plant

Selection of plant and equipment

Research and development

The products manufactured by the company are industrial goods and consumer durable goods.

85% of the goods (grey cloths) are sold as such to other company or production units in the

textile industry where the same are converted into useful consumer durable textiles or garments.

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15% of the grey cloths manufactured by the company is converted into lungis, dhoties, mulls and

bed sheets. The conversion is done by various units at Coimbatore. The conversion process

includes bleaching, dying, re-sizeing, printing etc. After the work is done, different varieties of

goods are recollected, quality checked, packed and marketed by the company.

Production Capacity Utilization and Modernization

The production department or factory has installed capacity of 383 power looms. 100% capacity

is utilized for production. In Addition to the power looms, the company has installed 22 modern

looms. It is called sulzer looms. This is imported from Switzerland. The advantage of these

looms is high speed and more production than power looms. It is fully automated and also high

quality of goods is produced with the use of less manpower. The clothes produced by modern

looms have more width than those produced by power looms.

Modern sulzer looms are operated by highly qualified and highly experienced personnel. They

are hired from other textile mills and are paid well. Other workers work under the supervision of

these experienced workers. Ordinary power looms require 2 persons per loom whereas two

modern looms require only one person. This means that by the use of modern looms plenty of

labor expenses can be saved. Ordinary looms are also in the process of modernization and

automation. & 5% of the modernization work is completed.

Shifts

The company is undertaking production on job order basis. The production department functions

in 3 shifts:

1. 8 am to 4:30 pm

2. 4:30 pm to 1:30 am

3. 1:30 am to 8am.

Raw Materials Used

100% cotton yarn of different specification for different quality of grey cloth form the major raw

materials used in production. The other raw materials are sizing chemicals, starch and adhesives.

26

All these form direct materials for production. Indirect materials consist of different consumable

stores, spares and cleaning chemicals.

The company never faced any raw material shortage. This is due to the efficient supply chain

management. Scientific estimation of raw materials requirements and timely procurement of raw

materials. The purchase department plays an active role in the effective and timely procurement

of raw materials.

PRODUCTION PROCESS

27

Chart 3.3

There are two types of process in the textile industry- Weaving and Spinning. We can see that

yarns of various counts are manufactured. Weaving process consists of the manufacturing pure

cotton grey cloth from cotton yarn. In Kitex Limited, weaving is the main process. Output is

100% pure cotton grey cloth, which is manufactured from the textile industry. In Kitex, 85% of

the sales come from the sale of lungis, mull, bed sheets, dhothies prepared from cotton gre

clyoth.

Production Process

The basic step in production process is the selection of good quality raw materials. This selection

is done with the help of both production and purchase managers. Kitex use corn type of yarn for

weaving because of its reliability. In Kitex 560 cones are re-arranged at the same time. The

following are the processes in Kitex;

1. Wrapping

Suitable beams are selected and by using the Wrapping machines, all sorts of impurities present

in the raw materials are removed.

2. Sizing

It is the process of strengthening the warp beam suitable for loom. This is done by using the

chemical mix which consists of Alp anole, water and other chemicals.

3. Pirn Winding

Rearranging the available yarn that is suitable for loom is done in this process. This is done with

the Pirn Winding machine.

4. Beam Drawing

It is the process of interconnecting the dropper, heels, reed etc. to the loom. This is done for

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making designs, arranging space between warp and weft.

Weaving process begins after the end of these four processes.

5. Weaving

It is the process of interlacement of wrap and weft threads. After starting the process the

supervisors of concerned shifts checks the process. Weaving master and production manager

checks the process. In new sized clothes, weaving master, shift in charge, shift supervisor

directly watch test weaving. If any defect occurs during the process and is repeated then the

purchase department will be informed and after quality check, the sample will be rejected. For

weaving, Kitex uses 360 Simco Power Looms and 25 Automatic suzzler looms. The peculiarity

of the former is that it is shuttle loom and the latter is shuttle less loom.

6. Quality Check

Quality checking is functioning under the production department. One Quality Control Officer

and checker are there to check and see that proper quality is maintained. There are two types of

checking, they are;

a) First Piece Inspection

In every 30-100 meters of cloth produced. The quality checking unit collects a sample of cloth

and checks. If any type of defects occurs, then the Quality Control Officer reports to the shift-in-

charge. This is an immediate feedback of the production process.

b) Checking

Checkers checks the cloth. They mend the defects by prescribing the suitable corrections and

maintenances.

There are two types of products produced in Kitex, industrial products and consumable products.

Industrial products like grey cloth are sold to various garments manufacturers in Mumbai,

Bengaluru etc. Consumable products like mulls, bed covers, dhothies etc. are sold in domestic as

well as national markets and also in some international markets.

Production of grey cloth is done on the basis of order. If the order quantity is less, then the

29

department concentrates on consumer products such as lungis, dhothies etc. productivity depends

on the type of cloth, duration of process, quantity produced and other factors. The budgeted

production is 20000 meters of grey cloth per day but the actual production is only 18000 meters.

The various factors which disables the unit from achieving budgeted production are;

i) Failure in power supply

ii) Unexpected breakdown in looms.

To overcome these factors, the factory is provided with 200kv diesel generators and a well-

equipped maintenance department with efficient electrical and mechanical engineers. Unit

follows preventive maintenance mechanism. It has necessary tools and equipments, it replaces

worn out parts, lubricates the machinery on time and regularly checks its working.

7. Folding

After classification the fabric is folded by a folding machine and the meter age is counted and

marked

8. Recounting

The counted meter age is again recounted and assured. Then the fabric is sealed.

9. Grading and Sorting

In the grading department, the following operations are carried out- sorting/grading of grey

clothes and checking all technical conditions stipulated for fabrics of each style are strictly

satisfied. At the same time the piece length is measured and the production of fabrics per shift is

registered by cleaning the fabrics from fluff, thread ends, knots and tags by putting a speed mark

with a pen on the ends of the fabric piece indicating the fabric style, measure and grade.

10. Bailing (Packing)

The sorted fabric is packed in the bailed condition under the supervision on the basis of quality.

The standard packing size of one ball contains 1000 meters. For bailing, the company has bailing

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process, which is efficient. After packing, the manufactured cloth is send to the Kitex Plant in

Coimbatore where many value addition processes are done on the cloth and after making it ready

for sales, they are sent back.

TOTAL QUALITY MANAGEMENT

The company has ISO certification. The company has given different equipment and mechanism

to ensure quality at different stage of production. It aims at maximum quality at minimum cost.

The management practice followed in Kitex, which is indeed innovative is the practice of Total

Quality Management. Total Quality Management journey started at Anna Group on 6 th June

2005. It is a long journey towards success. Quality means 100% quality in speech, people, work,

disciplines, surroundings, products etc. the company introduced 5 ‘S’ techniques for good

housekeeping, as a part of TQM. 5’S’ technique is a Japanese technique. It helps the company to,

Improve productivity

Save time

Solve space constraints

Improve morale of employees

5 S Techniques

1. SERI (SORTING)

Segregate required, useable, re-workable and absolute items.

Disposing unwanted items.

Clearing off walkways.

(One picture is worth more than a 1000 words)

2. SEITON(SYSTEMATIZING)

Use of labels and color codes for easy identification.

31

Use of index for files, records, drawings etc. to facilitate retrieve ability.

Plan storage with accessibility.

(A place for everything and everything in its place)

3. SEISO(SHINING)

Inspect and clean the supply lines, go downs, scrap yards and gardens.

Clean up workplace, machines and tools after use.

Identify root causes of loud noise, vibration, heat buildup in the equipment and take

remedial action.

(Spic and span leads to zero break down)

4. SEIKETSU(STANDARDIZING)

Developing standards.

Establishing check procedure.

Create visual controls.

Devise ways and means to expose problems.

(Action speaks louder than words)

5. SHITSUKE(SELF DISCIPLINE)

Developing action plan for maintaining the set standards.

Give unambiguous advice/instruction to your work associates.

Carry on 5’S’ activities as a matter of habit and enthuse its practice.

(Be a self-starter)

POLLUTION CONTROL

32

The company doesn’t have any pollutant products or bye products. The only pollutant may

be cotton particles that may get spread in the loom shed. To prevent this, the factory is having

sufficient humidifier to help the cotton particles settle on the ground. In addition to this, the

factory and premises are cleaned on a regular basis. The sound of weaving mills is also causes

pollution. The company provides sound deafening materials to the workers to protect their ear

drums.

RESEARCH & DEVELOPMENT

1. SPECIFIC AREAS IN WHICH R&D CARRIED OUT BY THE COMPANY.

a) Quality Up gradation

b) Developing wide range of products

c) Productivity enhancement

d) Quality Control Management

2. BENEFITS DERIVED AS A RESULT OF THE ABOVE R&D

a) Increase in production and capacity utilization

b) Repeat order from customers due to consistency in quality

3. FUTURE PLAN OF ACTION

a) Cost-efficiency in manufacturing operations through better methods

and techniques of productions

b) Increasing range of production.

c) Development of new markets.

3.1.3 PURCHASE DEPARTMENT

Chart 3.4 showing the structure of Purchase Department

33

Kitex have an effective purchase department and its functions are to procure materials,

machines, and tools etc., at the right quality and quantity at the right time. The firm has a

centralized department structure which is headed by Purchase Manager, assisted by two Purchase

Officers and Purchase Assistants. The Purchase Manager has to report to the General Manager

and Managing Director. Its objectives are to make continuous availability of raw materials and to

make purchase competitive and wise at most economic price, to develop alternative source of

supply, to serve as information center on material knowledge relating to price, source of supply,

and mode of delivery etc. The purchase department has to purchase good quality of materials to

have a minimum possible wastage of materials and loss in production. Purchasing is the most

important function of materials management and starts at the moment an order is placed, for the

purchase of materials a substantial part of the companies finance is committed , which affects

the cash flow position of the company.

OBJECTIVES OF PURCHASE DEPARTMENT

To make a continuous availability of materials so that there may be

uninterrupted flow of materials for production.

To make purchase competitively and wish at the most economic prices

To make the purchase in reasonable qualities and to keep investment in

materials at minimum.

To develop relationship with supplier, which will ensure the best supply of

34

materials.

To purchase proper quality of materials to have minimum possible wastage of

material and loss of production.

MATERIALS PURCHASED

The following are the major items of materials purchased by the company:

100% of cotton yarn of different specification.

Sizing chemicals :- Tapioca starch and Adhesives

100m spares.

Electrical equipment and accessories

Packing materials and office stationary

PURCHASE PROCEDURE

(1) Purchase Indent:-

Indenter raise materials requisition note to stores department. If not available stores department

issues purchase requisition to purchase department and is documented in purchase department.

(2) Enquiry:-

Purchase department sends enquiries to appropriate vendors on receipt of indent and they in turn

send quotations.

(3) Receiving Quotations:-

Quotations are checked by the managers of purchase and finance department and they check the

appropriate quotations.

(4) Preparation Of Competitive statements:-

Quotations are better tabulated a purchase department prepare the comparative statement and

35

send to intender.

(5) Approval:-

After studying all the details and analyzing the decisions relating to approval is taken by the

finance department.

(6) Issuing Purchase Order:-

The purchasing order is given relates to the needed quantity to the respective suppliers.

(7) Receiving And Inspection Of the Materials:-

After receiving the materials ordered, they are inspected to ensure the quantity of the

materials received.

(8) Checking and Passing of Bills:-

The materials are checked to see the quality of materials and the bills are passed for

payments. Before fixing the contracts for purchase, price variation clauses are included in terms

and conditions of purchase.

Factors Considering While Selecting Suppliers

Manufacturing capacity

Reliability of suppliers

Financial conditions of suppliers

Price quoted

Quantity for which price quoted is applicable

Terms of payment and delivery

3.2 STAFF FUNCTION

3.2.1 HUMAN RESOURCES DEPARTMENT

36

Chart 3.5

Now-a-days human resources are considered as one of the important assets of an organization.

Every successful company needs great people to make recruitment and retention. Companies

must find, new ways to engage the knowledge, experience and talents of employees to find the

hidden value to achieve strategic goals.

Kitex Ltd has a good human resource department and it maintains good relations

with the employees. This helped the company to achieve tremendous growth. All the employee

related activities are managed by this department.

Working time: 9 am to 5 pm

Saturday : 9 am to 4 pm

Functions

The main functions / role of personnel & Administrative Manager

i) Advisory Role Industrial Psychology and Sociology

ii) Operative and Service role

iii) Conciliators role

iv) Specialist advisory role

37

Or

i) Formulation of HRD functions and suggesting the HRD needs of the organization

ii) To find out ways and means of implementation of HRD function

iii) Monitoring the HRD activities of the organization

iv) Total commitment towards implementation of HRD

HRD DEPARTMENT OF THE COMPANY IS BASED ON THREE ASPECTS;

a. Competency Building

This is usually done by three ways like, improving the knowledge of employees and creating

the right attitude in the mind of them. For this they will be given training and development

programs.

b. Culture Building

It is having a great importance, as right culture will create employee satisfaction. Every

employee of KITEX LIMITED loves to work in the organization because of good g culture

prevailing in the organization. Culture mainly indicates the good attitude towards employees

and vice versa.

c. Motivation Building

Enhancing the motivation of employees and thus enabling the organization to achieve its

goals is another inevitable function of this department. The employees are being motivated by

providing various monetary benefits and also morale boost like promotion etc. Industrial

relations are yet another major area coming under HRD department. And also good

relationships are maintained within the organization.

The Activities Normally Associated with This Department are:

(I) HR Planning

Human Resource Planning is understood as the processing of forecasting an organization’s future

demand for, and supply, of the right type of people in the right number. In Kitex Ltd, the

concerned department is always updating the list of people. (After all the preliminary

38

formalities).

The Importance of Human Resource Planning

a. Future Personnel needs

b. Coping with changes

c. Creating highly talented personnel

d. Protection of weaker sections

e. International strategies

f. Foundation of personnel function

g. Resistance to change and move

(II) Recruitment

Recruitment is a process of searching for and obtaining applicants for

jobs from among whom the right candidate can be selected. Recruitment

process is done after the job analysis and job design which specifies the taste and duties of job

and qualification expected from the respective jobholder.

In Kitex Ltd the Personnel department has a clear-cut recruitment planning. For this

they give advertisement in newspapers and other media. After collecting all applications,

departments sorts this applications and call up the right candidates for interview.

This process comprises of 5 interrelated stages. They are (i) Planning (ii) Strategy

development (iii) Searching (iv) Screening (v) Evaluation and Control. Also internal recruitment

is taking place in Kitex Ltd. This includes present employee, referrals, former employees, and

former applicants.

For the recruitment of office staff and managerial personnel, external sources like

advertisement in newspapers, employment weeklies etc., are used. Other sources are

advertisement in company’s website, campus recruitment, employee reference and resumes of

the candidates which the company passes, while selecting weaver trainees and helpers,

39

qualification along with sufficient experience in the industry is also required. They can directly

appear for interview. Sometimes selection order is on the basis of recommendation from known

persons. For skilled jobs like fitter, electrician, carpenter, instrument technician etc., information

is passed through advertisement. For this experience in the respective field is a good advantage.

(III) Interview and Selection

After screening test the candidates are called for an interview. For the post of Office Staff and

managerial position a written test is also conducted. For managerial positions various other tests

are also conducted with the help of experts in the field. The short listed candidates are then

interviewed. The interview panel consists of M.D, General Manager, Department head and

Administration Manager.

For the post of workman, interview selection is conducted usually on second Saturdays. The

Organization conducts walk-ins and written tests in all major towns in Kerala and inside the

organizations.

(IV) Probationary Period

After the selection process the selected supervisory and managerial position holders have to

undergo a probation period of 6 months. During this period monthly evaluation is done on the

basis of the following criteria.

1. Professional knowledge

2. Promptness

3. Dependability

4. Attitude towards supervisors

5. Attitude towards co-workers

6. Leadership and initiative qualities

7. Attendance and punctuality

40

8. General Ability

Grades are given, like satisfactory, unsatisfactory, outstanding and good. If a candidate gets an

unsatisfactory grade in consecutive months, he will be eliminated before the termination of the

probationary period. Confirmation is done only after the probationary period.

(V) Training and Development

Training and Development refers to the imparting of specific skills, ability

and knowledge to an employee. Successful candidates placed on the job need training to perform

their duties effectively. For the weaver trainees, the period is one year.

During the training period the trainers are given training in communication

skills, spoken English (how to face an interview) etc., on addition to the technical training.

Training program is conducted by the Kitex community college.

The company also conducts the job training program. Training program includes

morning and afternoon sections. The morning section (batch wise) theory classes are given and

in the afternoon section. Training program is conducted from 9 am to 5 pm. The major

curriculum involves personality development, technical program, communication development

etc. During the training period food and accommodation are provided by the company.

After successfully completing the training program certificates are awarded to the

candidate. The key to the good employee relations program is the communication channel that

gives the employee access important information and an opportunity to express his ideas and

feelings. The supervisors are familiar with employment policies and the employees are aware of

their rights, this leads to lesson for misunderstanding.

(VI) Performance Appraisal

Yearly evaluation of performance is done for the employees. The evaluation

criteria for the managerial and supervisory levels are;

1) Conceptual skills, ability to

a) Anticipate

41

b) Plan with imagination

c) Innovation

d) Creativity

2) Decision making skills, ability to

a) Analyze

b) Solve problem

3) HR- Skills - ability to

a) Motivate

b) Communicate

c) To build team spirit

4) Organizational Skills - ability to

a) Organize own work

b) Organize others work

c) Delegate and control

5) Personal Characteristics

a) Grasp

b) Initiative and intelligence

c) Fairness in dealings

d) Adaptability

e) Reactions to discipline

6) Job Ability

42

a) Knowledge of his job

b) Attitude towards work

c) Willingness

d) Job performance

7) Integrity and Honesty

a) Honest

b) Determination

Criteria for yearly evaluation of employees up to the supervisory level.

1) Knowledge and accuracy of work

2) Attitude towards work

3) Ability to organize, plan and access/ guide juniors

4) Performance

5) Dependability and integrity

6) Drive and Leadership

7)

(VII) Employee Remuneration

Remuneration of employee occupies an important place. Remuneration is the

compensation; an employee receives in return for his or her contribution to the organization. In

Kitex Ltd, the organization provides all the remuneration insisted as per the Company’s Act,

1956. This comprise,

Wages and Salary

43

Incentive

Non-monetary benefits

Perquisites

(VIII) Wages and Salary

The company follows time rate system and piece rate system. The workers involved in

production of Grieg cloth are compensated according to the number of pieces of cloth produced.

Other plant workers are compensated as per the time spent by them in the plant. (Packers etc...)

For the office employees, salary is paid along with a pay slip, which contains the details of the

pay. At the time when the employee receives the salary, he should sign on the copy of pay slip

and it is filed in the department.The compensation package consists of basic pay + DA + HRA +

Conveyance+ Children’s education allowance.

Incentive

Besides the above package, the employee will get other incentives like production

incentive, Sunday-Monday incentive etc.

(IX) Employee Welfare Measure

In India labor welfare measures can be divided into statutory welfare measure and non-

statutory or voluntary welfare measure.

A) Statutory Welfare Measures

1) Accident Benefits

If the employee, who is covered under the employee’s state insurance scheme (ESI),

face an accident during the work, he will be paid benefits, as per ESI scheme.

If the employee is no covered under the ESI, the company will meet all expenses and

grant him special leave in case of any accident. They will also get benefit from the group

accident policy, taken by the company.

44

2) Annual Bonus

The company pays annual bonus to its employees based on the company’s

performance in the previous year.

3) Canteen

The company has separate canteen for male and female employees. For drinking

water, water coolers are installed in the company, wherever necessary. For the hostel and canteen

facility they provide, they charge an amount of Rs.400 each month.

4) Gratuity

Kitex Ltd. maintains a gratuity scheme for its employees who have completed 5

years of experience including the training period.

B) Voluntary Welfare Measures

i) Attendance bonus

ii) Uniform allowance

iii) Children’s education allowance

iv) Free tea and coffee for office staff

v) Funeral expenses on the death of family members of the employees

vi) Saving scheme for the employees

vii) Stands as a guarantee for the employees to buy vehicles and households on hire

purchase

viii) Leave: Earned leave for 15 days is granted to the employees. Maternity leave for

12 weeks is also granted to the female employees

ix) Free accommodation is also granted to the female employees.

X) Industrial Relations

45

Industrial relation is concerned with the relationship between management and workers.

In Kitex Ltd. and all other Anna Group of Companies the management is very conscious about

maintaining good industrial relations between management and workers and the role of

regulatory mechanism helps in resolving any industrial dispute.

XII) Promotion

Promotion activities contribute to employee satisfaction and motivation. If mishandled it

leads to discontent, frustration, and skepticism among employees and culminates in a high rate of

labor turnover. In Kitex Ltd. within the limitation the personal department lays down a sound

promotional policy and ensures its implementation.

XIII) Transfer

Transfer involves a change in the job (accompanied by change in the place of the job) of

an employee without change in responsibilities or remuneration. For employees satisfaction the

personnel and administration department provide job rotation.

XIV) Separation

Layoffs, resignation and dismissals separate employees from their employer.

Separations are painful to both the parties and should therefore be administrated carefully.

They are:

Layoffs – Temporary separation

Resignation- Termination of employment at the instance of the employer

Dismissal or discharge – Termination due to excessive absenteeism, serious

misconduct, false qualification statement, theft of company property.

XV) Hostel

In Kitex Ltd, organization provides separate hostel facility for the ladies and gents. It

includes canteen, accommodation and entertainment facility in common hall (television). For the

purpose of administration of ladies hostel, organization has appointed a hostel warden and two

46

assistant wardens and hostel staff. In every weekend the administration manager or personal

officer visits and check the facilities and functions of the hostel. Also annual day celebrations are

conducted for the employees.

XVI) Security

For the security and disciple in Kitex Ltd., the organization provides security officers and

a security staff. The main function of the security officer is to check the baggage and carrier

coming to the organization and the products delivery items from the package section. They

marks the quantity of the products coming in and going out, place, time etc

3.2.2 MARKETING AND ADMINISTRATION DEPARTMENT

Chart 3.6 showing the structure of Marketing and Administration Department

Marketing is the activity through which a company is able to find out its potential

47

customers and sell out its products and involves the integration of a number of activities starting

from conception of products and its profitable selling and consumption. Even if a company is

able to produce a large quantities of goods but not able to market them, the firm cannot survive

for long. Main purpose of business is to create customer and the various processes involved in

finding out customers and knowing their needs and wants and placing goods in their hands is

known as marketing process.

MARKETING DEPARTMENT OF KITEX

Marketing Department of Kitex is very efficient, it scans the environment, analysis

marketing opportunities, designs marketing strategy, implementing and controlling marketing

functions. It employs direct marketing strategy, avoiding intermediaries. Kitex enjoys large

customer in core markets especially in South Indian market, it has high demand. It has more than

2000 dealers spread all over Kerala.

MARKETING POLICY

The marketing policies of Kitex are in such a way that it does not entertain middlemen. A

direct marketing approach is adopted and all the dealings are direct. There are no stockiest of

wholesalers. It can be seen that by following this approach has more favorable conduction in the

market situation.

Marketing Functions Kitex has a dealer network of more than 2000 dealers who are spread all

over Kerala. It has sales all over Karnataka and Tamil Nadu. There are direct outlets in Kerala

and Tamil Nadu. Dealership are allotted only after assessing of credit worthiness, efficiency etc.

Dealers obtain the products upon order over the van of the company and also the products are

delivered either at go down or showroom.

MARKETING STRATEGY

Marketing department of Kitex is very vigilant of its environment and is also very

conscious of market potential, about their major competitors, company’s strategies, weakness

etc. As a result of stiff competition, the top management has appointed a General Manager in the

marketing and he looks over all the activities very efficiently.

48

Major competitors of Kitex are MCR, Janson, Angel, Ramraj etc. and they adopt various

marketing strategies like advertising in media using film stars like MCR using Mohanlal as their

brand ambassador. These companies also offer a wide variety of Karas and colors of dhothies

which attract customers. Their marginal price will be high when they sell to the dealers. But in

the case of Kitex the margin is very less. Also, the firm enjoys a good market owing to its

quality. In Kitex profit margin of products are 15-20%. Kitex also has a technical competency. It

has introduced new automatic weaving suzzler looms from Switzerland which, except Janson, no

other manufacturer has introduced.

MARKET SEGMENTATION

Customer’s preference varies with segments and different aspects. The marketing segmentation

procedure of Kitex mainly focuses on surveys. The Marketing Manager conducts the survey

process. The staff of R&D department helps in this process by conducting informal interviews

with focus group customers. This is done to gain a clear insight of their motivation, attitude and

behavior. Using the findings from these informal interviews, a researcher prepares a formal

questionnaire, which is administered to a sample of customers to collect data on the following:

Brand awareness and rating

Product usage and pattern

Demographic, physiographic and graphical details of respondents.

MARKETING MIX

It consists of everything a firm can do to influence demand for its product. Kitex also follows the

ideas of marketing mix, they are:

1. Place mix

Location of plant is one of the early decisions an entrepreneur has to make for earning maximum

profit. Location determines the survival as well as the prosperity of business in free market

economy. The unit is located in Kizhakkambalam, Aluva. The total extent of land is around

1650000 sq. ft. It is well connected with the road. The availability of skilled and unskilled labor

49

is also a factor in selecting the location.

2. Product mix

The grey fabric produced is of finest quality and is mostly used for export purpose. They provide

grey fabric lungies, bed sheets, mull in varies quantities as per customer specification. The Kitex

product is reputed for its quality and free from weaving defects up to greater extent. The special

feature is that raw materials are passed through strict inspection.

3. Price mix

The company maintains stable price for a long period of time. Price of product

depends on the price of yarn. It maintains constant price and concentrates on quality of product

and so it requires less investment in advertisement and sales promotion and also a very well

formulating pricing policy is provided.

4. Promotion mix

To promote its products advertisements are used in Kitex. The basic function of an

advertisement is to influence and motive people to buy products. In Kitex various advertisement

agencies are called up on and a brief idea is given about what to advertise and these agencies

prepare a pre-demonstration. The Marketing Manager, General Manager( Marketing) and the

General Manager directly analyze and select the best among them and entrust the agencies for

covering their advertisement plans.

Kitex choose the following media:

TV : -Asianet, Surya, Kairali, Mazavil Manorama, Amrita etc

Print Media : - Malayala Manorama, Mathrubhumi etc

Other media involve hoardings, fluxes etc.

KITEX-stages in the product development process

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• Idea research

• Screening analysis

• Product development

• Market testing

• Commercialization

KITEX-stages in the product life cycle

• Introduction

• Growth

• Maturity

• Decline

Pricing strategeis

• Prestige pricing

• Skimming pricing

• Penetration pricing

• Price lining

• Dual pricing

3.2.3 STORES DEPARTMENT

The manager heads the stores department. It is a sub section of purchase department. He

is assisted by four persons, two in general shifts and one each in other two shifts. Stores manager

reports to general manager. Stores department in Kitex controls the movement of materials to all

activities. Materials in stores department includes sizing chemicals, yarns of different

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specification, adhesives, spare parts, electronic goods, lubricant tools, office stationary, packing

materials etc. items are coded for easy handling. Packing materials and yarn are stored in

corresponding departments but the issue of raw materials is controlled by the stores department.

Stores manager with the help of purchase manager and production manager plans material

storage.

Storage of all items of raw materials including sizing materials, yarn of different

specification, spare parts, electrical items, lubricant tool, office materials packing materials etc.

is the responsibility of store department. Material storage is planned by the store manager with

the help of purchase and production department. Yarn and packing materials are stored in the

production department godown due to lack of sufficient space in the store and to facilitate easy

handling of both the item.

FUNCTIONS UNDERTAKEN IN STORES DEPARTMENT

Issue of raw materials which are ordered by various functional units. Raw materials are

issued when material requisition note is received from supervisors of concerned section

in production department.

Recording quality, quantity and other specifications of items issued by stores department

in stores ledger account for inventory control.

Availability of materials is checked through computer and verified.

The physical stock is taken and is checked by stores department and also by the internal

auditors. Stock verification is done independently by store keeper and store manager.

The materials stocked should be preserved well so as to protect them from deterioration.

It is done with the help of eco-friendly chemicals and are insured against fire.

RECORDING OF STOCK

Perpetual stock records are kept for raw materials, spares, work in progress and finished

goods. These records are periodically reconciled with accounting records. This is a periodical

reporting of storage or excess. If differences are there, they are investigated and necessary

adjustments are made in the final accounting records and stores ledger accounts maintained in

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stores.

The stores department is fully computerized. A special software package is designed and

installed for inventory management in stores. All the receipts and issues are recorded in the

computer, ABC analysis of inventory is done in a regular basis of physical stock check once in

every month by the stores department and internal auditors.

STEPS IN RECEIVING MATERIALS

Visual inspection.

Preparation of receiving report.

Preparation of inspection report.

Dispatch of above reports to financial department for getting the bills passed and

arranging payments.

Preparation of rejection notes of materials.

MATERIAL CONTROL SYSTEM

The company has material control system which ensures that right quantity of materials is

available at the right time at the right place with right amount of investment. Two levels of

material control exist in the company, quality control and financial control. Production manager

and stores manager are primarily interested in quantity control because it is their responsibility to

see that there is no stock out problem.

FEATURES OF MATERIAL CONTROL SYSTEM

Continuous availability of all types of materials in the factory.

No excessive investment in stock materials.

While purchasing materials it is seen that it is purchased at a reasonable low price.

There is minimum wastage of material while these are being stored in the godown by the

stores department.

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Information about availability of materials is continually made available by the store

manager.

There is proper co-ordination and co-operation among departments.

As a part of material control system, there exists an internal check on materials so as to

avoid misappropriation of store items.

TECHNIQUES OF MATERIAL CONTROL

Level setting EOQ

ABC analysis.

Perpetual inventory system.

Materials turnover ratio.

Material cost reports.

INVENTORY CONTROL ANALYSIS

In Kitex, the major technique used in controlling the inventories is ABC analysis. Turnover

ratios are calculated and it is done regularly. All stocks are kept in assigned area and the access

to these areas is strictly restricted. The inventory control systems are designed in such a way that

the production is not interrupted in any way. Proper planning, purchasing, handling and

accounting of materials have helped company to control the cost of production. Thus it aims at

qualitative, quantitative and financial control.

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Part III - Routine work given by

the organization

55

I entrusted with a job to find out the perception on recruitment and selection process and its

impact on Kitex Ltd. Kizhakkambalam, Kochi. The aim of personnel planning is to determine the

needs for persons both in terms of number and type. For deciding about the number both present

and future then this requirement should also be considered. Besides number type of persons

needed are also important. This will be decided by studying the job requirement etc. The

educational and technical requirement manage various job should be properly analyzed so that

right type of persons are employed.

In today’s competitive world choice of right employees for reaching implications for an

organization functioning. Employees well selected with the right kind of skill, knowledge and

potentials would contribute a lot to the efficient running of organization. Human Resource

problems including attitudes, skill and productivity issue all begin at the stage of recruiting. If

it’s wrong recruitment the organization has to pay heavily in terms of low productivity, low

competency and bring innovation, if proper recruitment is not done the right kind of manpower

is not deployed in the organization.

Recruitment is process for prospective employees and stimulating them to apply for a job in the

organization. When more persons apply for job then there will be a scope for recruiting better

persons. The job seekers too on the other hand are in search of organization offering them

employment. Recruitment is a linkage activity bringing together those with job and seeking job.

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4.1 OBJECTIVE OF THE STUDY

To study the recruitment and selection process of KITEX.LTD KIZHAKAMBALAM,

KOCHI.

To identify the strategies used by the company to recruit and selection of employees

To determine if these strategies used are effective or not

To identify the impact of the strategies on the employees of KITEX.LTD in terms of

success and overall performance

To identify what measures can be adopted in place to improve the strategies

4.2 METHODS OF STUDY

Recruitment is a process of searching for prospective employees and stimulating them to apply

for jobs

Companies can adopt different methods of recruitment for selecting people in the company.

These methods are

External sources

Internal sources

4.3 RESEARCH METHODOLOGY STEPS:

Research designs adopted for this study is of the descriptive type

Sources of data: the data were collected from primary as well as secondary sources. The

secondary sources were following.

Company record

Journals

Magazines

Annual reports

57

4.3.1 Method of data collection:

The methods of techniques employed for primary data collection are follows

Personal interview using structure questions with the employees of the company

Direct observation of the employees of the company

Telephone interview with the employees of the company

4.3.2 Sample size

The sampling adopted will be convenience sampling the researcher has selected 50 samples out

of 1800 employees from the universe. It is due to the fact this group can very well represent the

whole population understudy. The respondents consist of KITEX employees.

4.3.3 Universe

Total number of employees: 1800

Sampling method used: convenience sample method.

4.3.4 Convenience sampling

Convenience sampling is also known as grab, opportunity, accidental or haphazard sampling

with this method, the research objects that are easy to reach. As the name describes the

researcher chooses subjects because of convenience sampling are when students use their

classmates in a research study or a television reporter interviews people on the street.

In research methods, there are two primary classifications for sampling methods: non probability

and probability. With probability sampling methods all possible subjects out of a population have

a some chance of being included in the sample researchers can even calculate the mathematical

probability of one of them being selected. They can also calculate sampling error, which is the

degree to which the sample might differ from the actual population.

4.4 LIMITATION OF STUDY

The major limitation of this project was that not much cooperation among the

respondents, because they are busy at work

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It is also difficult to visit the project area and collect the data on time

Time constraint was also a major limiting factor

Lack of facility for interviewing employees.

The dislike of certain people to the questionnaire

Lack of experience in conducting study in such a premises

4.5 DATA ANALYSIS AND INTERPRETATIONS

The data collected through the study is given below in the form of tables and figures

followed by its interpretations.

1.How do you evaluate recruitment procedures?

Table 4.1 shows the evaluation of recruitment procedures.

Criteria No of respondence

Excellent 10

Adequate 15

Good 25

Poor 0

Table 4.1

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Diagram 4.1

Diagram 4.1 shows the evaluation of recruitment procedures.

INTERPRETATION

Out of 50 respondent 10 of them evaluate as excellent , 15 of them as adequate and 25 of

them evaluate as good

2. Which source of recruitment is preferred more?

Table 4.2 shows the preference of recruitment sources

Criteria No of respondents

Internal 9

External 19

Both 22

Table 4.2

60

Internal External Both 0

5

10

15

20

25

Recruitment

No of respondents

Diagram 4.2 shows the preference of recruitment sources

INTERPRETATION

Out of 50 respondents 9 replied internal, 19 replied external and rest 22 replied both

3. What is the duration of recruitment process?

Table 4.3 shows duration of recruitment process.

Criteria Duration

3 weeks 5

A week 15

10 Days 20

Few months 10

Table 4.3

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3 weeks A week 10 Days Few months0

5

10

15

20

25

Recruitment Process

Duration

Diagram 4.3

Diagram 4.3 showing the duration of recruitment process

INTERPRETATION

The above graph shows the duration of recruitment process.Out of 50 respondents 5

responded 3 days, 15 responded a week, 20 responded as 10 days and 10 responded as few

months.

4. What are the various recruitment techniques used by the company?

Table 4.4 showing the various recruitment techniques used by the company

Criteria No of respondents

Promotion 10

Advertising 22

Transfer 08

Others 10

Table 4.4

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Promotion Advertising Transfer Others0

5

10

15

20

25

Recruitment Techniques

No of respondents

Diagram 4.4

Diagram 4.4 shows the preference of recruitment techniques

INTERPRETATION

The above graph shows the various recruitment processes.Out of 50 respondents 10

supported for promotion, the other 22 supported advertising and other8 supported transfer

and other 10 supported others.

5. How many stages are involved in selecting the candidate?

Table 4.5 showing how many stages are involved in selecting the candidate.

No of stages No of respondents

One 9

Two 12

Three 24

Four 5

63

Table 4.5

One Two Three Four0

5

10

15

20

25

30

No of stages in the selection process

No of respondents

Diagram 4.5

Diagram 4.5 shows no of stages in the selection process.

INTERPRETATION

The above diagram shows the no of stages in the recruitment processes. Out of 50

respondents 9 specified it as stage 1, other 12 specified as stage 2, other 24 specified as stage

3 and other 5 specified as stage 4

6. Do you feel the HR department is efficient in recruitment policies of the employees

Table 4.6 shows the efficiency in recruitment policies of the employees by the HR

department.

Criteria No of respondents

Very good 20

Good 20

Poor 10

Very poor 0

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Table 4.6

Very good Good Poor Very poor0

5

10

15

20

25

Recruitment Policies

No of respondents

Diagram 4.6

Diagram 4.6 shows the evaluation of recruitment policies.

INTERPRETATION

The above diagram shows whether the HR department is effective in recruitment processes.

Out of 50 respondents 20 responded very good, other 20 responded good and 10 responded

as poor

7. What is the average time spending by HR department for recruitment?

Table 4.7 shows the average time spend by HR department for recruitment

Criteria No of respondents

10MINs 5

10-20MINS 5

30MINS 15

65

MORE THAN 30MINS 25

Table 4.7

10MINs 10-20MINS 30MINS MORE THAN 30MINS

0

5

10

15

20

25

30

Time spend for recruitment

No of respondents

Diagram 4.7

Diagram 4.7 shows time spend for recruitment.

INTERPRETATION

During recruitment, out of 50 respondents 5 specify as 10 minutes, other 5 specifies 10-20

minutes, 15 respondents specify as 30 minutes and other 25 specified it as more than 30

minutes

8. How do feel about the salary structure offered by the company.

Table 4.8 shows satisfaction level of salary structure.

Criteria No of respondents

Highly satisfied 24

Satisfied 16

Dissatisfied 10

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No opinion 0

Table 4.8

Highly satis-fied

Satisfied Dissatisfied No opinion0

5

10

15

20

25

30

Salary Structure Satisfaction

No of respondents

Diagram 4.8

Diagram 4.8 shows the satisfaction of salary structure.

INTERPRETATION

The above diagram shows the satisfaction of employees on the salary scheme. Out of 50,

24are highly satisfied, 16 are satisfied and 10 are dissatisfied

9. How many panel of judges involved in the recruitment process?

Table 4.9 shows detail of number of panels involved in the recruitment process.

No of panels No of respondents

3 11

4 14

67

5 25

More than 5 0

Table 4.5

3 4 5 More than 50

5

10

15

20

25

30

No of panels

No of respondents

Diagram 4.9

Diagram 4.9 detail of number of panels in the recruitment process.

INTERPRETATION

The diagram shows the no of judges involved in the recruitment process

Out of 50 respondents 11 specify 3 panel,14 specify 4 panel, and 25 specify 5 panel

10. What are the criteria used for recruiting

Table 4.10 shows the criteria used for recruitment.

Criteria No of respondents

Work experience 17

Educational qualification 22

68

Gender 6

Age 5

Table 4.10

Work expe-rience

Educational qualification

Gender Age0

5

10

15

20

25

Recruitment Criteria

No of respondents

Diagram 4.10

Diagram 4.10 shows the criteria used for recruitment.

INTERPRETATION

The diagram shows the criteria used in the recruitment process

Out of 50 respondents 17 replied work experience, other 22 replied educational qualification,

6 replied gender and other 5 replied age.

11. How would you rate the effectiveness of advertisement on recruitment?

Table 4.11 shows the response of effectiveness of advertisement on recruitment.

Criteria No of respondents

Excellent 26

69

Good 18

Average 6

Poor 0

Table 4.11

Excellent Good Average Poor0

5

10

15

20

25

30

Effictiveness of advertisement

No of respondents

Diagram 4.11

Diagram 4.11 shows the effectiveness of advertisement on recruitment

INTERPRETATION

The above diagram shows the effectiveness of advertisement on recruitment. Out of 50

respondents 26 replied excellent, other 18 good and other 6 average.

12. Does the company follow different recruitment process for different grades of

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employees?

Criteria No of respondents

Yes 43

No 7

Table 4.12

Yes No05

101520253035404550

Different recruitment process

No of respondents

Diagram 4.12

INTERPRETATION

The above diagram shoes whether different recruitment process are followed for different

grades of employees. Out of 50 respondents 43 replied yes and 7 replied no.

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13. What is your opinion about the applicant handling of HR department of the company?

Table 4.13 shows the opinion about the applicant handling of HR department

Criteria No of respondents

Very good 19

Good 29

Average 2

Poor 0

Table 4.13

Very good Good Average Poor0

5

10

15

20

25

30

35

Applicant handling

No of respondents

Diagram 4.13

Diagram 4.13 shows the applicant handling of HR department.

INTERPRETATION

The above diagram shows the opinion about HR department regarding applicant

handling. Out of 50, 19 replied very good, 29 replied good and 2 replied average.

14. How do you consider company atmosphere?

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Table 4.14 shows the opinion about company atmosphere.

Criteria No of respondents

Very good 24

Good 18

Average 8

Poor 0

Table 4.14

Very good Good Average Poor0

5

10

15

20

25

30

Company Atmosphere

No of respondents

Diagram 4.14 shows the opinion about company atmosphere.

INTERPRETATION

The above diagram shows the employees outlooks about company atmosphere. Out of 50 , 24

replied as very good, 18 replied as good and 8 replied as average.

15. How do you rate effectiveness of HR department of the company?

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Criteria No of respondents

Excellent 20

Good 17

Average 13

Poor 0

Table 4.15

Excellent Good Average Poor0

5

10

15

20

25

HR department effictiveness of the company

No of respondents

Diagram 4.15

INTERPRETATION

The above diagram shows the rate of effectiveness of recruitment in the company. Out of

50 respondent 20 replied excellent, other 17 good and 13 as average.

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4.6 FINDINGS

The following were found out after study:

None of the respondent evaluated the recruitment procedure as poor and 25 of them

evaluated as good

Kitex Ltd prefers both internal and external as their source of recruitment.

The company follows different recruitment process for various grade of recruitment.

The mostly used recruitment technique is advertisement, the other techniques are

promotion, transfer etc.

Most of the employees feel that HR department is efficient in recruitment policies.

The verification done for selection process is educational qualification legally and

professional Qualification.

The average time spend by HR department during recruitment are more than 30 minutes

The employees are highly satisfied with the salary structure of the company.

The panel of judges involved in the process of recruitment is 5.

Most of the employees highly satisfied with the salary structure of the company.

4.7 SUGGESTIONS

Better training should be made available to employees for efficient work.

Compensation package should be increased.

Suggestions boxes must be placed for the purpose of getting feedback from employees.

The present commitment shown by the management towards the safety and welfare

measures should be kept at the same level or at a higher level as per the situations as it

directly affect the productivity of employees

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5. CONCLUSION

The organizational study which was conducted at KITEX LTD. KIZHAKAMBALAM helped

significantly to get a feel of the real world industry and organization climate. The study about

various departments and their functioning contributed to bridge the gap between theory and

practical knowledge. KITEX LTD. Maintaining a perfect harmony between various departments,

with its excellent working conditions. The Company now plans to take its performance to next

level by further modernization, creating new markets in Europe and US by implementing niche

products using high tech and time saving machinery and devices, improvement in quality of its

employee by training, research and development. With the order books getting bulkier, KITEX is

confident that it will become the leading manufacturer in the WORLD, in the INFANTWEAR

APPAREL SEGMENT by the end of 2015 calendar year.

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6. BIBLIOGRAPHY

• www.annagroup.net

• www.wikipedia.org

• www.fibre2fashion.com/industry.../indian-textile-industry-an-overview1....

• http://www.ask.com/question/customer-satisfaction-definition

• www.ibef.org/industry/textiles.aspx

• www.capitalline.com

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ANEXXURE I

QUESTIONNAIRE

Name:

Place:

Age:

Educational Qualification:

Gender:

1. How do you evaluate recruitment procedures?

Excellent Adequate Good Poor

2. Which source of recruitment is preferred more?

Internal External Both

3. What is the duration of recruitment process?

3 weeks A week 10 Days Few months

4. What are the various recruitment techniques used by the company?

Promotion Advertising Transfer Others

5. How many stages are involved i n selecting the candidate?

1 2 3 4

6. Do you feel the HR department is efficient in recruitment policies of the employees ?

Very good Good Poor Very poor

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7. What is the average time spend by HR department for recruitment?

10MINS 10-20MINS 30MINS MORE THAN 30MINS

8. How do feel about the salary structure offered by the company?

Highly satisfied Satisfied Dissatisfied No opinion

9. How many panel of judges involved in the recruitment process?

3 4 5 More than 5

10. What are the criteria used for recruiting?

Work experience Educational qualification Gender Age

11. How would you rate the effectiveness of advertisement on recruitment?

Average Excellent Good Poor

12. Does the company follow different recruitment process for different grades of employees?

Yes NO

13. What is your opinion about the applicant handling of HR department of the company?

Very good Good Average Poor

14. How do you consider companies atmosphere?

Very good Good Average Poor

15. How do you rate the effectiveness HR department of the company?

Excellent Good Average Poor

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