“A Study on Organizational Citizenship Behaviour”

at Primus Gloves Private Limited, Kakkanad, Cochin

A project report submitted in partial fulfilment of the requirement

for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(2009-2011)

DEPARTMENT OF MANAGEMENT STUDIES

Submitted by

DEVIKA MOHAN C

Reg.No:12615

June 2011

SREE NARAYANA GURUKULAM COLLEGE OF ENGINEERING

(Approved by A.I.C.T.E, New Delhi)

KADAYIRIPPU, KOLENCHERY, ERNAKULAM, KERALA.

Declaration

I hereby declare that the project study report titled, “A Study on Organizational

Citizenship Behaviour” at Primus Gloves Private Ltd, Kakkanad, Kochi submitted to

Mahatma Gandhi University is a bonafide record of the project study undergone by me at

Primus Gloves Private Ltd, Kakkanad, Kochi. This study has been undertaken in partial

fulfilment of the requirement for the award of the degree of Master of Business

Administration.

I also declare this report has not been submitted in full or part thereof, to any

university or institutions for the award of any degree or diploma.

Kadayiruppu

Date: Devika Mohan C

DEPARTMENT OF MANAGEMENT STUDIES

SREE NARAYANA GURUKULAM COLLEGE OF ENGINEERING

(Affiliated to M G University & Approved by A.I.C.T .E, New Delhi)

KADAYIRUPPU, KOLENCHERY

ERNAKULAM, KERALA

Certificate

This is to certify that this project study report titled, ‘A Study on Organizational

Citizenship Behaviour’ at Primus Gloves (P) Ltd., submitted in partial fulfilment of the

requirement for the award of the degree of Master of Business Administration to Mahatma

Gandhi University is a bonafide record of Project Study undergone by Ms. Devika Mohan

C at Primus Gloves Private Ltd, Kakkanad, Kochi and prepared under my guidance.

KADAYIRUPPU Prof. Geeva Thankachan

Date: FACULTY GUIDE

Head of the Department

Department of Management Studies

Acknowledgement

This report has been prepared in connection with the final project study conducted at

PRIMUS GLOVES PRIVATE LIMITED, KAKKANAD, COCHIN. While completing

this study, I owe an enormous debt of gratitude to the management personnel of Primus

especially Mr.Jayasankar, General Manager for granting me the permission to do the study

and in helping me during the study period and all other staff members for their wholehearted

co-operation despite of their busy schedule.

I am also deeply grateful to Prof. (Dr.) Kemthose. P. Paul, Head of the Department

of Management Studies, Sree Narayana Gurukulam College of Engineering, Kadayiruppu,

Kolenchery. I also express my sincere thanks to Prof. (Dr.) C.E. Krishnan, Principal, Sree

Narayana Gurukulam College of Engineering, Kadayiruppu, Kolenchery for their help and

support in making this project a success.

I am extremely thankful to Asst. Prof. Geeva Thankachan, Faculty, Department of

Management Studies, who gave me guidance and suggestions for the preparation of this

report. I extend my thanks to all faculty members of Department of Management Studies,

Sree Narayana Gurukulam College of Engineering, for their help and encouragement.

Above all I thank God and My Family for the grace and blessings at each and every

stage of the project.

Last but not least, I would like to record my deepest sense of gratitude to my friends

for their support and constant encouragement.

Devika Mohan C

Table of Contents

Chapter No. Title

Page

No.

Introduction 1 - 4

Introduction 2

Statement of the problem 3

Objectives of the study 3

Scope of the study 4

Chapter I

Limitations of the study 4

Literature Review 5 - 13

Introduction – Organizational Citizenship Behaviour 6, 7

Literature Review 8 – 12 Chapter II

Hypothesis of the study 13

Industry Profile 14 - 56

Introduction 15 – 17

International Scenario 18, 19

Indian Scenario 20 – 22

State Scenario 23 - 27

Chapter III

Company Profile 28 – 56

Research Methodology 57 – 62

Research Design 58

Data Collection Design 59, 60

Sampling Design 61

Chapter IV

Statistical Design 62

Data Analysis & Interpretation 63 – 81

Data Analysis and Interpretation 4

Paired Sample T test - Testing the dependence of the factors

and OCB 65 – 67

Testing Significance of Correlation of factors with OCB 68, 69

Response of Employees on the various predictors 70 – 81

Chapter V

Demographical data analysis 82 – 88

Chapter VI Findings of the Study 89, 90

Chapter VII Suggestions 91, 92

Conclusion and Scope for further study 93-96

Conclusion 94, 95 Chapter VIII

Scope for further study 96

Appendix 97-103

Questionnaire (English) 98-100 Appendix

Questionnaire (Malayalam) 101-103

Bibliography Bibliography 104

List of Tables

Table No. Title Page No.

3.1 International Rubber price 19

3.2 Monthly Rubber Price 24

3.3 Domestic Rubber price 25

3.4 Balance sheet of Primus Gloves Private Limited for the last 3 years.

38

3.5 Wages and Salary 54

3.6 Work Schedule 56

4.1 Performa of Questionnaire 60

5.1 Paired Sample T Test Statistics of OCB and its antecedents 65

5.2 Paired Sample T test between antecedents of OCB and OCB 65

5.3 Correlations of OCB and its antecedents 68

5.4 Frequency table of response - OCB 70

5.5 Frequency table of response – Altruism 72

5.6 Frequency table of response – Conscientiousness 74

5.7 Frequency table of response – Civic virtue 76

5.8 Frequency table of response – Sportsmanship 78

5.9 Frequency table of response - Courtesy 80

5.10 Frequency table - Gender ratio 82

5.11 Frequency table - Age group 84

5.12 Frequency table - Designation level 86

5.13 Frequency table - Experience in the organization 87

List of Figures & Illustrations

Figure

No. Title

Page

No.

2.1 Antecedents of Organizational Citizenship Behaviour 11

3.1 Company logo 30

3.2 Product Mix 34

3.3 Organization chart 37

3.4 Process after production 46

3.5 Personnel department structure 52

5.1 Pie chart of response – OCB 70

5.2 Pie chart of response – Altruism 72

5.3 Pie chart of response – Conscientiousness 74

5.4 Pie chart of response – Civic virtue 76

5.5 Pie chart of response – Sportsmanship 78

5.6 Pie chart of response – Courtesy 80

5.7 Pie chart – Gender 82

5.8 Pie chart – Age group 84

5.9 Pie chart – Designation level 86

5.10 Pie chart – Experience in Organization 87

Executive Summary

This project was undertaken with the objective to conduct a project study on Organizational Citizenship Behaviour at Primus Gloves Pvt. Ltd., Kakkanad, Kochi. The study is conducted to fulfil the requirements of the award of the degree of Master of Business Administration, towards Mahatma Gandhi University.

The project study is conducted to get to know the organization, attain an in depth understanding in the area of specialization, to explore on the selected topic of that area and put forward suggestions which benefit the functioning of the organization.

The scope of the study on Organizational Citizenship Behaviour of employees at Primus is mainly concerned with the various dimensions of Organizational Citizenship Behaviour. This research is an attempt to study the main five pillars in the concept of OCB exhibited by the employees. The behaviours assessed in the study include Altruism, Conscientiousness, Civic virtue, Sportsmanship, and Courtesy.

The employee behaviour was studied using questionnaire. A sample survey of 50 respondents was taken for the study, whose responses were analysed and interpreted. The process of analysis was done through MS excel and SPSS. The research analysis include paired sample t test, test of significance of correlation and frequency tables with percentage analysis.

From the analysis of the collected data it was found that the Organizational Citizenship Behaviour of employees at Primus is associated with the factors – Altruism, Conscientiousness, Civic virtue, Sportsmanship and Courtesy. The need to develop OCB in employees is explained and the major suggestion put forward is to introduce a motivational training programme in order to develop Organizational Citizenship Behaviour in the employees at Primus Gloves Pvt. Ltd., Kakkanad, Kochi.

1

Chapter 1

Introduction

2

1.1. Introduction

A study on the respective specialization during the final semester is an important part in the

MBA curriculum. It is an opportunity to get to know the organization, attain an in depth

understanding in the area of specialization, to explore on a selected topic of that area and put

forward suggestions which would benefit the functioning of the organization.

This study will give students a different experience where they learn the practical side of the

business since the real life situations are in front of them and can be related to concepts,

principles, theories which were taken in classes. This would help the future managers to face

the upcoming challenges in the business life.

Primus gloves private limited is the largest manufacturer and exporter of gloves in India,

which was established in the year 1998.It is an Indian company located in Cochin Special

Economic Zone, Kakkanad, which is 22 kilometres from the Cochin port. The main products

of the company is surgical and examination gloves.

As part of my study on the topic Organizational Citizenship Behaviour of employees at

Primus Gloves Private Ltd., my main aim was to understand the Organizational Citizenship

Behaviour of employees at Primus and thereby put forward suggestions to improve such extra

role behaviour among employees.

Primus Gloves Private Ltd. with a workforce of nearly 300 employees and a good work

culture is an appropriate choice to study the Organizational Citizenship Behaviour of

employees.

3

1.2. Statement of the Problem

The casual and subtle contributions of employees that generally do not get captured by the

quantitative measures of output and performance is a common problem in organizations. An

attempt to identify such work behaviour like Organizational Citizenship Behaviour tends to

contribute, in the long run, to organizational effectiveness.

1.3. Objectives of the Study

To study on the various dimensions of organizational citizenship behaviour of employees at

Primus gloves.

To determine the relation between employee Altruism and organizational citizenship

behaviour of employees at Primus gloves.

To determine the relation between employee Conscientiousness and organizational

citizenship behaviour of employees at Primus gloves.

To determine the relation between employee Civic Virtue and organizational citizenship

behaviour of employees at Primus gloves.

To determine the relation between employee Sportsmanship and organizational citizenship

behaviour of employees at Primus gloves.

To determine the relation between employee Courtesy and organizational citizenship

behaviour of employees at Primus gloves.

4

1.4. Scope of the Study

The scope of the study on Organizational Citizenship Behaviour of employees at Primus

Gloves Private Ltd, Kakkanad is mainly concerned with the various dimensions of

Organizational Citizenship Behaviour. This research is an attempt to study main five pillars in

the concept of OCB exhibited by employees at Primus. The behaviours assessed in the

research include Altruism, Conscientiousness, Civic virtue, Sportsmanship and Courtesy.

1.5. Limitations of the study

There is ample room for research on the topic Organizational Citizenship Behaviour but

the lack of availability of information on the topic poses a serious limitation.

Difficulty in selecting the sample which perfectly represent the heterogeneous population

for the research.

Another limitation is that future research in the same organization may yield a bit different

result as the topic is behaviour which would vary for an individual irrespective of change

in time, lifestyle, etc.

The employees had no idea on the concept of Organizational Citizenship Behaviour.

Difficulty in translating the questionnaire to the local language so that it is easily

interpreted by the respondents.

5

Chapter 2

Literature Review

6

2.1. Introduction – Organizational Citizenship Behaviour

The Organizational Citizenship Behaviour or more precisely OCB is a special type of

organizational behaviour necessary for the growth and success of every organization. This

kind of behaviour is not a mandatory factor to be maintained in an organization, but it plays a

vital and important aspect in the growth of any firm. The Organizational Citizenship

Behaviour is an important factor in determining the effectiveness, efficiency and productivity

of the organization. Although organizations cannot impose this vital factor in the employee’s

mind-set forcibly, but a good organization is that where Organization Citizenship Behaviour

should be followed.

The theory of OCB includes introducing the proper decision making styles among the

employees serving during the job in the firm. Every day market trend and style keeps on

changing to set new and high set of standards and the organization has to follow certain

principles of OCB to achieve the fleet of glory. This factor infact adds in the mind-set of the

employee’s new innovative ideas and sportsmanship to work collectively and effectively in

making the organization successful. This introduces the selfless concern to work as a team

rather than as a group for the success of the firm.

The Organizational Citizenship Behaviour introduces the new innovative ideas, which are

channelled to the employees in time to time through proper media or source. The organization

even arranges seminars, which lays the guidelines how to implement the theory of

Organizational Citizenship Behaviour among the employees. Although it may not be a

mandatory for any individual to attend the theory of OCB but it informs the employees of the

firm about the changes occurring in the firm from time to time. Thus it introduces civic virtue

among the employees for the growth of the organization. Moreover, the OCB factor bridges

the gap not only between the management team and employee, but also removes the conflict

among them to unite together to march forward to attain success. It self-motivates the

individuals to attain the peak of success in the competitive world.

So the organizations hire the human resources department to bridge the gap of proper

communication channel between the employees on one hand and the management team on

other hand. If the communication between the two teams is not channelled properly then it

can lead to dangerous scenario like employees leaving the organization. So to retain the

employees the human resources departments play a vital role.

7

The OCB indeed has introduced the new concept of altruism or the team spirit and

sportsmanship. To strive forward and work together as a team should be the motto or goal of

the good and healthy prosperous organization. An organization cannot function effectively

without proper collaboration among the employees and management team of the firm. The

Organizational Citizenship Behaviour introduces the factor of conscientiousness and

professionalism cultures among the employees of the organization. Thus the Organisation

should implement OCB to achieve its target and profitable revenues without sacrificing the

goals, welfare and motives of the employees of the organization.

8

2.2. Literature Review

Organizational Citizenship Behavior (OCB) is relatively a new concept considered under

Organizational Behavior. The major research, in this field of study has mainly taken place in

the 1990s and is still continuing at a stable pace. The reason for choosing OCB as a research

ground is its positive relationship with unit performance, which means by measuring OCB it is

possible to get one step closer in increasing the unit performance. Interestingly researchers

define OCB in different contexts and backgrounds, also there is much consistency found in

their ways of interpreting OCB. Jacqueline et al. (2004) refers, OCB to be an extra-role

behavior i.e. it is any behavior not officially required by the organization; rather its practice

depends solely on the consent of employee as a consequence of the organizational

environment. OCB makes the impact on organization effectiveness; OCB should have a

particular impact on the overall effectiveness of organizations by adding to the social

framework of the work environment (Todd, 2003).

In the 1930s, Barnard (1938) observed and commented on the phenomenon of OCB which he

termed as ‘extra-role behaviours’. Later in the 1960s, Katz and Kahn (1996) came up with a

set of extra-role behaviours which were described as ‘supra-role behaviours’, which according

to the authors improved the effectiveness of the organization. The reason as to why such

extra-role behaviours are important from the perspective of research and practice is because

managers and executives value employees who display ‘citizenship behaviour’. This could be

perhaps because employees who exhibit citizenship behaviour make the job of managers

easier and the extra time thus obtained by management allows the manager to focus on more

critical managerial issues that can lead to organizational effectiveness.

In the earliest published work (Bateman and Organ, 1983), OCB was defined as extra-role

behaviour and was characterized by two criteria: First, such behaviours should relate to work

place behaviours over and above and beyond role requirements; and secondly, such

behaviours had to be organizationally functional. The objective of defining OCB in such a

way was to differentiate OCB from in-role behaviours that are generally a part of one’s job

description and forms the basis for employment contract and performance appraisal. OCBs

yield higher outcomes in the long term than in the short term for the organization.

9

2.2.1. Definition of OCB

“Individual’s behavior which is discretionary, not directly or explicitly recognized by the formal reward system that in the aggregate promotes the effective functioning of the organization”

- By Organ (1988)

2.2.2. Dimensions of Citizenship Behaviour

Though there has been a growing interest in understanding OCB and treating it as one of the

variables in performance research in industrial and organizational psychology literature, there

is a lack of consensus about the dimensionality of this construct. A review by Podsakoff et al.

(2000) indicated the possibility of finding almost 30 potentially different kinds and forms of

citizenship behaviour in the published literature. It was also indicated in the same review that

these forms of OCB were not discrete in nature and there were conceptual overlaps between

the different constructs. Broadly, the dimensions of citizenship behaviour can be classified

under seven common dimensions and they are:

Helping Behaviour

Sportsmanship

Courtesy

Conscientiousness

Individual Initiative

Civic Virtue

Self-development.

Among these five most important dimensions are discussed below.

Helping Behaviour (Altruism)

Helping behaviour has been identified as one of the dimensions of OCB by majority of

researchers who have worked in the area (Podsakoff et al. 2000). Conceptually, it means

voluntarily helping others. It was initially defined by Smith et al. (1983) as altruism and was

stated as “… behaviour that is directly and intentionally aimed at helping a specific person in

face-to-face situations (e.g., orienting new people, assisting someone with heavy workload)”.

Over the years, the concept of helping behaviour has evolved to be equated with interpersonal

10

facilitation (Van Scotter and Motowildo, 1996) which includes “a range of interpersonal acts

that help to maintain the interpersonal and social context needed to support effective task

performance in an organizational setting”.

Conscientiousness

Conscientiousness refers to discretionary behaviors that go beyond the basic requirements of

the job in terms of obeying work rules, attendance and job performance (Redman & Snape,

2005). In other words, conscientiousness means the thorough adherence to organizational rules

and procedures, even when no one is watching. It is believed to be, the mindfulness that a

person never forgets to be a part of a system (organization). Conscientiousness, and Openness

are all better predictors of decision-making performance when adaptability is required than

decision-making performance prior to unforeseen change (Colquitt et al. 2000). More

conscientious employees will stay informed with up-to date knowledge about products or

services offered (Neihoff & Yen, 2004). High conscientious individuals, in contrast, persisted

longer than individuals lower in conscientiousness whether or not there was an additional

benefit and whether or not they varied the procedure while performing (Morgan et al. 1999).

Theoretically, conscientiousness may be an important predictor of workplace behaviors

because it provides the organization a direction that is necessary to produce targeted behaviors

(King et al. 2005).

Civic Virtue

‘Civic virtue’ refers to behaviors that demonstrate a responsible concern for the image and

wellbeing of the organization (Redman & Snape, 2005). Borman et al. (2001) defines civic

virtue as responsibly involving oneself in and being concerned about the life of the company.

Baker (2005) explains Civic virtue is responsible, constructive involvement in the political

processes of the organization. As per Redman & Snape (2005) the civic virtue is positively

predicted by commitment to customers and co-workers (hence resulting in the behavior,

beneficial to the organization) with evidence of partial mediation by global commitment.

Neihoff & Yen (2004), acts of civic virtue would include employees offering suggestions for

cost improvements or other resource-saving ideas, which might directly influence operating

efficiency. Civic virtue is more likely to involve a purposeful contribution (in OCB) by

employees compared to other dimensions (Shapiro et al. 2004). If employees identify strongly

with the organization (i.e., high civic virtue), one would expect them to exert extra effort to

improve their productivity, resulting in improved efficiency (Neihoff & Yen, 2004).

11

Sportsmanship

Sportsmanship, as a form of citizenship behaviour, has not received much attention from the

researchers (Podsakoff et al., 2000) and has been defined as “a willingness to tolerate the

inevitable inconveniences and impositions of work without complaining” (Organ, 1997).

‘Good sports’ are people who “maintain a positive attitude even when things do not go their

way; are not offended when others do not follow their suggestions; are willing to sacrifice

their personal interest for the good of the work group; and do not take the rejection of their

ideas personally” ( Podsakoff et al., 2000). One of the reasons that sportsmanship is not

included by many researchers in their research on citizenship behaviours is the fact that it

tends to have somewhat different antecedents and consequences (Podsakoff et al., 2000) as

compared to the other forms of citizenship behaviours.

Courtesy

Courtesy as a dimension of citizenship behaviour was neither included by Smith et al. (1983)

nor by Organ (1988) in their seminal work of OCB. Though other researchers like Graham

(1991) have included courtesy as a kind of citizenship behaviour, which essentially means

having consideration of how decisions will affect others and thereby prevent interpersonal

conflicts (Podsakoff et al., 2000). Graham (1991) defines organizational loyalty as

“identification with and allegiance to organizational leaders and the organization as a whole,

transcending the parochial interests of individuals, work groups, and departments”.

All these factors together influence Organizational Citizenship Behaviour of employees and

hence it is known as the antecedents of OCB. In figure 2.1 a representation of the antecedents

of Organizational Citizenship Behaviour is illustrated. As said before OCB has various

antecedents, here the selected antecedent for the research is represented below.

12

Figure 2.1. Antecedents of Organizational Citizenship Behaviour

2.2.3. Measuring OCB

There are various scales available to measure different forms and dimensions of OCB. The

initial OCB scale focused on two dimensions and later it was expanded to five dimensions.

Besides these two, OCB scale has also been modified and adapted for measuring OCB

amongst student teams, group citizenship behaviour and service-oriented OCB, among other

applications of the OCB measurement scale. For this research the five factor OCB scale is

used and on the basis of this scale the questionnaire for the research has been developed.

Courtesy

Sportsmanship

Civic virtue

Conscientiousness

Altruism

Organizational Citizenship Behaviour

13

2.3. Hypothesis of the study

Based on the literature review it can be argued that altruism is an antecedent of OCB; hence Altruism and OCB are associated.

After a comprehensive literature review on the relationship of OCB, hence conscientiousness it can be argued that Conscientiousness and OCB are associated.

The above literature shows that civic virtue is an important antecedent of OCB and

Civic Virtue and OCB are associated.

The literature also focuses on sportsmanship as an antecedent of OCB so it can be

argued that Sportsmanship and OCB are associated.

The above literature says that courtesy also influences OCB, hence Courtesy and

OCB are associated.

14

Chapter 3

Industry Profile

15

3.1. Introduction

A glove is a garment covering the hand. Gloves have separate sheaths or opening for each

finger and thumb, if there is an opening but no covering sheath for each finger they are called

“fingerless gloves”. Gloves protect and comfort hands against cold or heat, damage by

friction, chemicals and disease or in turn to provide a guard for what a bare hand should not

touch. Latex, nitrile rubber or vinyl disposable gloves are often worn by health care

professionals as hygiene and contamination protection measures. Police officers often wear

them to work in crime scenes to prevent destroying evidence in the scene. Many criminals

wear gloves to avoid leaving figure prints, which makes the crime investigation more

difficult. Gloves are made of materials including cloth, knitted or felted wool, lather, rubber,

latex etc.

Glove industry became an industry in 1834, when the glove cutting dye was invented in

France. The advancement of medical technology has caused better awareness on the usage of

gloves for prevention. World over there was a sudden spurt in the demand for disposable

gloves. Though, AIDS scare fuelled the demand initially, the awareness of health hazards

sustained the continued growth in the demand for the gloves.

Gloves made of natural latex have a better feel and sensitivity and they have a breathing

property which makes it preferred over gloves made of nitrite, vinyl and other synthetic

materials. The price factor also favours natural latex gloves. The cheapest alternative that is

nitrate gloves cost over two to three times of natural rubber gloves.

The world market for examination gloves is over 18.5 billion per annum and that of surgical

gloves is 2.3 billion pairs per annum. About 60% of world market demand is supplied by

Malaysia and 30% by Thailand. The balance 10% is shared by other countries.

India entered this industry in early 1990’s when many entrepreneurs ventured into production

of examination gloves. There were 65 latex examination gloves factories in India in 1993 with

capacity to produce around 2000 million pieces when “protein allergy “emerged as a serious

issue. Powdered gloves faced demand recession and its price dropped from US$90+ to US$15

per thousand. This drop resulted in the slowdown and the closing down of majority of the

glove units the world over. To counter the protein allergy the technique of chlorination

emerged as a substitute for powdering.

16

The surgical glove has fetched higher export earnings compared to examination gloves its

production is more as the manufacturing process involve longer cuff length, double dipping,

sterilized rubbers are polymeric materials endowed with the properties of flexibility and

extensibility: with the application of force, the molecules straighten out in the direction in

which they are being pulled; on release from being extended, they spontaneously recover their

normal, random arrangements.

Rubbers include natural rubbers (NRs) and synthetic rubbers (SRs). Natural rubber is a

naturally occurring substance obtained from the exudations of certain tropical plants Synthetic

rubber is artificially derived from petrochemical products.

A rubber glove is a glove made out of rubber. Its primary purpose is protection of the hands

while performing task involving chemicals. Rubber gloves are worn during dishwashing to

protect the hands from detergent. Health professionals use medical gloves rather than rubber

gloves when performing surgical operations. Medical gloves are medical safety accessories

that ensure sanitary hospital conditions by limiting patient’s exposure to infectious matter.

They also serve to protect health professionals from disease through contact with bodily

fluids. Due to the increasing rate of latex allergy among health professionals as well as in the

general population there has being an increasing move to gloves made of non-latex materials

such as vinyl or nitrile rubber even then these gloves have not yet replaced latex gloves since

the high-grade non-latex gloves such as nitrile gloves cost twice as much more than the price

of latex.

In 2005, the six leading producers -Thailand, Indonesia, Malaysia, India, China and Vietnam -

accounted for roughly 89% of world NR production. Combined output in Thailand, Indonesia

and Malaysia alone represented around 70% of the global output.

Production in Thailand has been increasing steadily during 1961-2005; Indonesia has become

the second largest producer behind Thailand. The production in India and China has also

increased. Malaysia had been the largest NR producing country for most of the 20th century,

until it was relegated to third position in the early 1990s.

17

3.1.1. Types of Gloves

Commercial and Industrial gloves:

It includes Barbed wire handler’s gloves, Chainsaw gloves, Firemen’s gauntlets,

Disposable gloves, Medical gloves, Welders gloves, Sandblasting gloves, Gardening

gloves.

Sports and Recreational gloves:

It includes Archer’s gloves, Basketball gloves, Eating gloves, Boxing gloves, Cricket

and Football gloves.

Winter gloves:

It includes Acrylic, Woolen and Leather.

3.1.2. Standards

There are a number of different European standards that relate to gloves. These include:

BS EN388- Mechanical hazards including Abrasion, cut, tear and puncture

BS EN388:2003 - Protective Against Mechanical Rist (Abrasion/Blade Cut

Resistance/Tear Resistance/Abrasion Resistance)

BS EN374-1:2003 Protective Against Chemical And Micro-Organisms

BS EN374-2- Micro-organisms BS EN374-3- Chemicals

BS EN407- Heat resistance

BS EN511- Cold resistance

BS EN1149- Antistatic

18

3.2 International Scenario

The global demand for rubber gloves has increased due to recent regulations on occupational

safety. The demand for rubber gloves is expected to grow by 10%. At present though rubber

gloves has not been affected much from global crisis, the smaller manufacturers are facing

stiff competition and higher operational costs given the volatile latex prices over the past two

years.

The strong growth partly reflects higher selling prices following the rise in natural gas and

latex prices in mid-2008. The demand for rubber gloves is increasing from India, china and

Vietnam due to increase in health and hygiene awareness. Currently Malaysia exports rubber

gloves to the US, European Union, Latin America, China and India. Demand for lower-end

powdered latex gloves is popular among developing countries whose end-users are most cost-

conscious. Powder-free latex and nitrile gloves are preferred by developed countries namely

the United States and Europe.

Malaysia is the largest exporter of rubber gloves whereas Thailand accounts for less than half

of the Malaysian market share. Malaysia’s strength is its productive labour. Each worker in

the rubber gloves industry in Malaysia is estimated to be nearly three times more productive

compared to Thailand and twice to Indonesian workers.

The awareness of healthcare and hygiene is driving the demand for rubber gloves in the

developed countries. Regulations have played a key role in the growing rubber gloves

demand, by making it mandatory in all types of industries. The ageing population is another

factor influencing demand for healthcare expenditures; the world’s population aged above 80

has been increasing at a rapid rate of 3% over the past 20 years.

The leading exporter and manufacturers of gloves in international market are:

Ansell, Australia.

Sempermed, Austria.

Top gloves, Malaysia.

Cardinal health, USA.

Table 3.1. International Rubber price

19

Source: Malaysian Rubber Board as on 27/5/2011

Rubber Price as on 27/5/2011

per 100 Kg BANGKOK

IN RS IN USD CATEGORY Price Change Price Change

RSS-1 23,499.00 -4.00 518.85 0.94 RSS-2 23,409.00 -5.00 516.85 0.91 RSS-3 23,327.00 -5.00 515.05 0.91 RSS-4 23,283.00 -4.00 514.10 0.93 RSS-5 23,216.00 -4.00 512.60 0.93 SMR- 2 0 * 0.00 * 0.00 Latex( 6 0 % drc) * 0.00 * 0.00

Rubber Price as on 27/5/2011

per 100 Kg KUALA LUMPUR

IN RS IN USD CATEGORY Price Change Price Change

RSS-1 * 0.00 * 0.00 SMR- 2 0 20,856.00 + 122.00 460.50 + 3.60 Latex( 6 0 % drc) 14,339.00 + 43.00 316.60 + 1.58

20

3.3 Indian Scenario

Rubber is a product that is known for its elastic property. Rubber is an established industry in

India. Rubber is a frequently used material today. It is known for its elastic properties. Rubber

can be of two types; natural and synthetic. Rubber is naturally produced by rubber plants that

can be obtained and it can also be produced synthetically.

Rubber industry in India was introduced by the British for commercial cultivation but the

govt. of India has improved the scope of rubber production considerably. Today rubber and

rubber related products are established industries in India. The world production of rubber

was considered to be very unstable during the last 10 years. Comparatively, India's production

of rubber is consistent at the rate of 6% per annum.

Rubber producing areas in India is divided into two zones traditional and non-traditional.

Kanyakumari & districts of Kerala come under traditional zone. Goa, Andhra Pradesh, Orissa,

coastal areas of Karnataka, some areas of northern Maharashtra come under non-traditional

zone. Kerala contributes 90% of India’s total production of natural rubber. Also, Kerala and

Tamil Nadu together occupy 86% of the growing area of natural rubber.

3.3.1. Rubber Production: India and world

India is the third largest producer of rubber in the world.

It is the fourth largest consumer of natural rubber.

It is the fifth largest consumer of natural rubber and synthetic rubber together in the

world.

India is the world's largest manufacturer of reclaim rubber.

India and China are the only two countries in the world which have the capacity to

consume the entire indigenous production of natural rubber.

3.3.2. Rubber Consumption in India (in 2009)

21

Automotive tyre sector: 50% consumption of all kinds of rubbers

Bicycles tyres and tubes: 15%

Footwear: 12%

Belts and hoses: 6%

Camelback and latex products: 7%

Other products: 10%

India’s production varies between 6 and 7 lakh tons annually which amounts to Rs. 3000

crores. Seventy percent of the total rubber production in India is in the form of Ribbed

Smoked Sheets (RSS). This is also imported by India accounting for 45% of the total import

of rubber. The Indian rubber industry has a turnover of Rs. 12000 cores. Most of the rubber

production is consumed by the tyre industry which is almost 52% of the total production of

India. Among the states, Kerala is the leading consumer of rubber, followed by Punjab and

Maharashtra. The exports of Indian natural rubber have increased tremendously over the

years.

Though, India is one of the leading producers of rubber but it still imports rubber from other

countries. At present, India is importing around 50000 tons of rubber annually. There are

about 6000 unit comprising 30 large scale, 300 medium scale and around 5600 small scale

and tiny sector units. These units are manufacturing more than 35000 rubber products,

employing 400 hundred thousand people, which also include 22000 technically qualified

support personnel, contributing Rs. 40 billion to the National Exchequer through taxes, duties

and other levies.

The Indian Rubber Industry plays a vital role in the Indian national economy. The rubber

plantation sector in India produces over 630 hundred thousand tons of natural rubber and

there is a projected production of more than one million tons in near future. This has helped in

the radical and rapid growth of the Indian rubber industry. This prospect of growth is further

enhanced by a boom in the vehicle industry, improved living standards of the people and

rapid over-all industrialization. The per capita consumption of rubber in India is only 800

grams compared to 12 to 14 kilos in Japan, USA and Europe. So far as consumption of rubber

22

products is concerned, India is far from attaining any saturation level. This is another factor

leading to tremendous growth prospects of the industry in the years to come.

The major exporter and manufacturer of gloves in India are:

Adithya Drug Lines

Premium Healthcare Disposables Private Limited

Ramson Healthcare

Asent Pharmaceuticals

Venus Surgicals and Healthcare

RFB Latex

Vijay Latex

Anusham Rubbers

New Life

3.4 State Scenario

23

The rubber industry of Kottayam is one of the most important industries, accounting for the

major amount of rubber production in Kerala. Rubber is a major agricultural product of

Kottayam and almost 90% of the total rubber production in India is accounted by the state of

Kerala. The rubber industry in Kottayam also provides employment to a large number of

people of this region. Almost 15% of the total industrial units are engaged with the production

of rubber in Kottayam.

Changanassery is the training centre, common facility service centre and field testing

laboratory for the rubber and plastic industries. Ettumanoor is the base of a rubber production

cum training centre of the central government.The manufacturing industries of rubber in

Kottayam are in turn of two kinds, based on the types of raw materials that are used by the

industries:

One set of industries that are engaged with the processing of rubber and include

mostly the centrifugal factories, the crumb rubber industries and industries engaged

with creaming of rubber. These industries are mainly known as the capital intensive

industries and produce tubes and tyres, erasers, automobile parts and moulded goods.

The other groups of industries are engaged with the manufacturing of rubber. These

industries base themselves on dry rubber or latex.

Apart from these, the manufacturing based industries are further divided into two categories

based on the type of raw materials used by them. One section depends on latex, for the

production of balloons, gloves, rubber band and latex foam. The other section uses dry rubber

sheets, for the production of tubes and tyres, erasers, automobile parts and moulded goods.

The World Bank has conceived a project by which it would finance these manufacturing

industries. A total of 35,000 products could possibly be made by the manufacturing industries

of rubber.

For the purpose of rubber processing in Kottayam, some of the latest techniques are utilized.

The establishment of the rubber tyre industry in Kottayam has resulted in the growth of the

rubber industry as a whole and has also increased the rubber production. The Rubber Board,

which is a research institute owned by the central government, is situated at Kottayam. Apart

from being a major rubber producer, Kottayam is also one of the most important traders of

rubber and rubber products.

24

There are some major rubber industries in Kottayam like Rubco, MRF Ltd, Intermix Factory,

which form the basis of Kottayam rubber industry. Some other rubber units are listed below:

The major manufacturers and exporters of gloves in the state are:

Unik Surgicals

Asma rubber products private limited

Kanam Latex Industries (p) ltd

Safe Shield India rubber Products (p) ltd.

Primus Gloves Private Limited

Table 3.2. Monthly Rubber Price

Average Rubber Price per 100 Kg - April 2011 Kottayam

IN RS IN USD CATEGORY Price Change Price Change

RSS-1 25,800.00 + 1,270.00 581.10 + 36.21 RSS-2 24,945.00 + 1,249.00 561.80 + 35.48 RSS-3 24,295.00 + 1,099.00 547.20 + 31.95 RSS-4 23,868.00 + 1,866.00 537.55 + 48.85 RSS-5 23,568.00 + 1,853.00 530.80 + 48.47 I SNR-2 0 23,322.00 + 1,676.00 525.25 + 44.46 Latex( 6 0 % drc) 14,384.00 + 1,458.00 323.95 + 36.85 EBC- 2 X 22,850.00 + 2,181.00 514.65 + 55.53 Scrap( 8 0 % DRC) 18,069.00 + 1,350.00 406.95 + 35.59 Fresh Scrap 13,552.00 + 1,013.00 305.25 + 26.70

Average Price of RSS1- April2011 Price 25800

* Monthly the prices shown above do not include VAT @4% on purchase and expenses towards

packing, transportation, warehousing and other incidentals.

Source: Rubber Board as on April 2011

Table 3.3. Domestic Rubber Price

Rubber Price as on 27/5/2011

25

per 100 Kg KOTTAYAM

IN RS IN USD CATEGORY Price Change Price Change

RSS-4 21,550.00 -150.00 475.80 -2.36 RSS-5 21,300.00 -200.00 470.30 -3.47 I SNR- 2 0 20,600.00 -200.00 454.85 -3.51 Latex( 6 0 % drc) 12,945.00 -105.00 285.80 -1.75

Rubber Price as on 27/5/2011

per 100 Kg COCHIN

IN RS IN USD CATEGORY Price Change Price Change

RSS-4 21,550.00 -150.00 475.80 -2.36 RSS-5 21,300.00 -200.00 470.30 -3.47 I SNR- 2 0 * 0.00 * 0.00 Latex( 6 0 % drc) * 0.00 * 0.00

Price of RSS4- May, 2011 DAY 2 3 4 5 6 7 9 10 Price 23450 23350 23300 23000 22700 22800 23000 23200 DAY 11 12 13 14 16 17 18 19 Price 23150 22900 22900 22950 22750 22650 22500 22250 DAY 20 21 23 24 25 26 27

Price 22200 22200 22000 21850 21750 21700 21550

Source: Rubber Board as on 27/5/2011

3.4.1. Cochin Special Economic Zone

26

CSEZ is a special economic zone in Cochin, in the state of Kerala in south west India, set up

for export-oriented venture. The special economic zone is a foreign territory within India with

special rules for facilitating foreign direct investment. The zone is run directly by the

government of India.

Earlier Cochin Special Economic Zone was known by Cochin Export Processing Zone. It was

on 1st November 2000 the Vajpayee government has changed the name to special economic

zone.

The special economic zone is a foreign territory within India for the purpose of trade

operations and duties and tariffs, with special rules for facilitating foreign direct investment.

CSEZ, one of the seven central government owned zones.

CSEZ is a multi-product zone. The objective of the Cochin special economic zone is to

provide an operating environment, for boosting manufacturing, generating environment etc.

CSEZ also provide needed infrastructural support such as assured water, telecom, global

connectivity network, banking facilities, electrical distribution, and common effluent

treatment plant.

Incentives and Benefits Available in CSEZ

Subsidy on feasibility study

50% subsidy on the cost of feasibility studies: of the remaining 50% of the cost 10% will

be borne by the entrepreneur and the remaining 40% given as loan.

Exemption from power cut

All industrial unit located in CSEZ will be exempted from power cuts.

Stamp duty and registration charges

Instruments related to lease, conveyance etc will be exempted from the payment of stamp

duty and registration charges.

Special concessions for schedule tribe entrepreneurs

27

Promoters contribution in respect of SC/ST entrepreneurs need by only 10%interest on

term loans will be subsidized to the extent of 2% direct participation in share capital be

state financing institutions will be accepted in cases where SC/ST entrepreneurs are

unable to mobilize shares on their own from the public.

Exemption from local tax

o Industries located in SEZ will be exempted from the payment of property tax.

o No import license requirements.

o Exemption from industrial licensing requirements for items reserved for the SSI

sector.

o No routine examinations by customs for export and import cargo.

o Exception from central excise duties on procurement of capital goods, raw materials.

28

3.5. Company Profile

M/S PRIMUS GLOVES PRIVATE LIMITED was established in January 1998. Initially the

name of the company was Ficto Dipped Products Private Limited. The company was

commissioned for commercial production in April 2000. It’s a 100% export oriented unit

manufacturing premium quality gloves with the production capacity of 6 million pieces of

medical gloves per month. Primus Glove Private Limited is one of the largest manufacturers

of surgical and examination gloves in India. Surgical gloves have a size varying from 5.5

inches to 9 inches. But in the case of examination gloves it has only 3 sizes- small, medium,

large.

The product conforming of international standards are packed as per customer requirements

and shipped. The raw materials are imported from Malaysia and have the excellent features to

produce world class products. The gloves are manufactured under strictly controlled

environmental conditions to avoid particle contamination.

Primus has a well-equipped laboratory for testing raw material, in process materials, packing

materials and the final product prior to its usage. Latex from selected clones is used for

production, ensuring consistent quality products with low residual proteins. Latex compound

recipe is designed to avoid any allergic residuals and no nitro stables are present in the

compound. Every lot of the product is sampled as per ISO 2859 and checked for conformance

or standards.

The product is being exported to USA, Europe, Middle East, and African countries. The

company has plans to diversify into various premium grades of rubber gloves. The company

was certified ISO 9002:9004 by DNV in May 2001 and has attained CE certificate on

September 2001. The certification has being upgraded to the latest version of ISO 9001:2000

in March 2003. The company was entitled ISO 13485:2003 in July 2004. The company has

been inspected by FDA in February 2005 and August 2010.

Primus is a private limited company and has one managing director and one General

Manager. Mr Joseph. J .Pereira is the Managing Director and Mr Jayashankar is the General

Manager of the company.

The company has a track record of 10 years in this field. The product is being exported to

United States of America, Europe, Middle East and African countries. The company has plans

to diversify into various premium grades of rubber gloves.

29

Primus, with its past experience has upgraded its glove manufacturing facility and technology

well supported by trained and qualified work force. Primus business philosophy is, “To

deliver goods of the HIGHEST QUALITY at the MOST COMPETITIVE PRICES to the

ENTIRE SATISFACTION of our customers”.

3.5.1. Promoters of the Company : a) Mr.J.J.Pereira

b) Mrs.Lizbeth Pereira

3.5.2 Date of Incorporation : 01 January 1998

3.5.3 History of the Company

Primus Gloves Private Limited is an Indian owned company established in the year 1998,

engaged in the manufacture and export of medical gloves based at Cochin Special Economic

Zone, Cochin, Kerala, India. At the beginning the company was known by the name Fitco

Dipped Products Private Ltd., manufacturing coir and rubber based products. Later, the name

of the company has been changed to Primus Gloves Private Ltd… Primus has been certified

for ISO 13485: 2003 and all products have CE Certification. All the products of Primus

confirm to US FDA Standards and is registered with US FDA. US FDA Inspectors inspected

the plant on February 2005 and August 2010.The facility was approved for compliance to the

Quality System Regulation (QSR) of the USFDA. All the products have passed the Dermal

Sensitization tests & Skin irritation tests. The Company is registered under the company’s act

1956. Primus introduces the ‘Single Window Shopping’ concept for gloves with diversity in

its products.

3.5.4. Vision

Primus Gloves Private Limited is committed towards the full satisfaction of our customers, by

continual improvement of our products and processes.

3.5.5. Objective of the Company

To carry on the business of traders , manufactures, processors, buyers, sellers, importers,

exporters, stockiest, commissions, agent and dealers in all kinds of rubber products

30

including rubber gloves, sheets and tubes for surgical and medical examination use in

hospitals , household and industrial use and such other commercial purpose.

The objectives incidental or ancillary to the attainment of the main objective.

o To enter into agreements and contracts with Indian and foreign companies.

o To establish and maintain any agencies and branches in India and Abroad.

o To advertise and adopt means of making known the business activities of the

company.

o To enter into partnership or into any arrangements for sharing profits, cooperation,

joint venture etc.

o To enter into agreement with any governments or state authorities, municipal, local

etc.

o To construct, acquire, establish, provide, maintain and administer factory, estates,

installation etc.

o To amalgamate with any company or companies.

o To take over, approve, adopt or rectify all steps taken and commitments made by the

promoters

o To open accounts with any individual firm or company or with any bank and to pay

into and withdraw money from such account or accounts.

o To establish research facilities in any or all of the fields in which the company is

engaged.

3.5.6. Company logo

Fig.3.1 Company logo

3.5.7. Quality Policy

“We believe in and strive for the involvement of every member of the company in quality

improvement procedures and shall maintain the effectiveness of the processes.”

31

“We shall endeavour to develop the necessary skills and shall build an attitude essential for a

proactive work culture”.

“We shall operate under dynamic quality system complying with the requirements of ISO

13485:2003 for all operations and additionally that of US FDA QSR for medical devices

operations”.

3.5.8. Company Slogan

“With PRIMUS it is always more than just CARE”.

3.5.9 Quality Certification

a) Certified ISO 9001;2000 by Det Norske Vertias cCertification B.V, The Netherlands

b) Certified ISO 13385; 2003 by Det Vertias, Norway.

c) US FDA 510 (K) number for various products.

3.5.10. Ownership Status : Private Company

3.5.11. Capital Structure

Share capital - 211000 equity share of Rs. 100 each

Unsecured loans - loan from director

Reserves and surplus

3.5.12. Products of the Company

Pre-powdered

o Extend-Sterile Long cuff gloves

o Latex surgical gloves – non- beaded

o Latex surgical gloves-beaded

o Sterile Latex Examination Gloves

o Sterile Latex Surgical Orthopaedic Gloves

Powder free

o Extend - Sterile Long Cuff Gloves

o Latex Surgical Gloves - Non-Beaded

32

o Polymer Coated Latex Surgical Gloves - Beaded

o Sterile Latex Examination Gloves

o Sterile Vinyl Examination Gloves

o Sterile Latex Microsurgery Gloves

Sterile Natural Rubber Latex Gloves (Surgical & Examination)

Surgical gloves are designed to protect Surgeons in operating room/ environments.

The primary purpose of surgical gloves is to act as a protective barrier for surgeons and nurses

to prevent possible transmission of diseases or pathogens during procedures while working

with surgical instruments. During operating process Natural Rubber Latex Surgical gloves

provide comfort and tactile sensitivity while providing barrier protection to the surgeons and

nurses. Currently, choosing the right surgical gloves will be very difficult looking in to the

surplus options available. There is no glove that is right for everyone. When considering

which surgical glove to use, the protection level and exact fit will be one of the most

important attributes to look at as well as which surgical procedure the gloves will be used for.

There has been many non-latex glove alternatives to natural rubber latex gloves but natural

rubber latex gloves has not yet been replaced as the alternatives could not match the fine

control or greater sensitivity to touch available with natural rubber latex gloves. Moreover,

natural rubber gloves are eco- friendly and hence disposable.

Surgical Gloves

PRIMUS manufactures Sterile Latex Surgical Gloves for use in Surgeons Operating

Room / Environments. Surgical gloves have more precise sizing (from size 5.5 to size 9) and

are of higher specifications. These gloves are anatomic in shape and fits perfectly to the

surgeon’s hand enabling him to get a better grip and functionality while performing

surgery. Primus manufactures both Powdered Surgeons Gloves and Powder FREE Surgeons

gloves. Powder Free Surgeons Gloves are basically used by surgeons who are prone to protein

allergy by latex. Primus also manufactures Powder FREE Surgeons Gloves which are

Polymer Coated which helps for easy donning of the glove by the surgeons. The Surgeons

Gloves are basically beaded in nature, but some European countries demand Non Beaded

Gloves. These types of Gloves are also manufactured by Primus based on minimum order

quality levels. The Powdered Surgeons Gloves are sterilized by EO (Ethylene Oxide Gas)

33

and Powder FREE by Gamma radiation. Packing of the glove is based on specifications by

the customer.

Examination Gloves

PRIMUS also manufactures Sterile Latex Examination Gloves which provides a

perfect barrier while handling a patient. These gloves come mainly in 3 sizes viz. Small,

Medium & Large. Extra small and Extra Large are also available but the demand. Sterile

Examination Gloves are used in operating rooms environment by nurses who support the

surgeons, but not involved in the operating process. This type of glove is cheaper compared

to surgical gloves. These gloves come both in Powdered and Powder FREE versions,

ambidextrous in nature. These gloves are sterilized by EO (Ethylene Oxide Gas). Packing of

the glove is based on specifications by the customer.

Latex Long Cuff Gloves

PRIMUS has come up with a new type of gloves called STERILE LONG CUFF

GLOVES which have got multipurpose usage in medical industry as well as the

pharmaceutical industry. These gloves are made up of natural rubber latex and as the name

suggests is longer than the normal gloves. These gloves come in two lengths of 16 in and 18

in., both Powdered and Powder FREE, ambidextrous in nature. In medical field this product

can be used as a Gynaecology Gloves, Oncology Labs, Old age homes etc and in the

pharmaceutical industry, this is used for handling formulations, tablets etc. The Powder FREE

version comes with Polymer Coating also. The Powdered Gloves are sterilized by EO

(Ethylene Oxide Gas) and Powder FREE by Gamma radiation. Packing of the glove is based

on specifications by the customer. NON Sterile version of this product is also available.

34

Figure 3.2. Product Mix

35

3.5.13 Raw Materials

Some of the materials used by the company for production of gloves:

Latex

Titanium oxide

Zinc oxide potassium. Hydroxide

Calcium carbonate

Sulphur

Terric

3.5.14 Import /Export market

Exported to: USA, France, Italy, Uganda, Argentina, UAE,

Australia, Indonesia, Greece, Turkey, Israel.

Imported from: Malaysia, Thailand, Indonesia, Portugal,

Germany, South Africa.

3.5.15 Competitors

Primus has competitors both from domestic and international market. The following are some

of the competitors of the company.

Domestic Market

o Kanan latex industries pvt ltd - Kottayam

o RFB latex - Delhi

o Vijay latex - Gujarat

o Anusham rubbers - Nagarcovil

o New life - Delhi

International Market

o Ansell - Australia

o Sempermed - Austria

o Top gloves - Malaysia

o Cardinal health - USA

36

3.5.16 Promotion Strategy

The following are the promotional efforts taken by the company to promote their

products in the world market:

Website and brochures

Registered with export promotional council- rubber board.

CAPEXIL-is an export promoting organization, which will help the registered companies

in generating potential, enquires.

Medica Maze Dezegale is the world’s largest medical show, which is conducted every

year in Germany. Primus gloves take part in this show every year.

3.5.17 Pricing Strategy

The price of the product is determined with respect of the price of latex, fuel cost, production

cost, packing cost, transportation charges, wages, profit margin and dollar exchange value.

3.5.18 Growth Profile

In 1995 started as a trading unit. Firstly took a plot for lease inside CSEZ with the main aim

to maximize the sale of examination gloves. In 1996.97 took universal gloves but thought of

starting an independent unit. The company was incorporated as Fitco Dipped Private Limited

later the name changed to PRIMUS in German it means “good”. In the initial stages company

produced surgical gloves then sooner went for market expansion. Then started importing

powder free gloves and then packed it in an attractive way and the exported. The margin was

comparatively less .the company then thought of manufacturing long cuff gloves where such

manufactures were very less in the market may be two to three even Ansell one of the giants

in the glove industry were not producing it. The profit margin was really high. The company

concentrated more on long cuff gloves along with new products. Presently Primus is one of

the leading manufacturers of gloves in India.

37

Figure 3.3. Organization Chart

3.5.19. Organization Chart

Executive Marketing MANAGER QA & MR

38

3.5.20. Balance sheet of Primus Gloves Private Limited for the last 3 years.

Table 3.4. Balance sheet of Primus Gloves Private Limited for the last 3 years.

Particulars Schedule Year ended 31/3/2010

Year ended 31/3/2009

Year ended 31/3/2008

Year ended 31/3/2007

SOURCES OF FUNDS

Share holder fund a) Share capital 1 21100000.00 21100000.00 21100000.00 21100000.00 b) reserve and surplus 2 6587175.00 6587175.00 6587175.00 8721659.58 Secured loans 3 16228634.63 21534741.63 18326317.96 18472674.66 Unsecured loans 4 19053000.00 19003000.00 17503000.00 12503000.00 TOTAL 62968809.63 68224916.63 63516492.96 65797334.24

APPLICATION OF FUNDS

Fixed assets 5 Gross block 83683610.70 81934463.72 81355129.22 79694394.12 Less: depreciation 51979548.76 46037827.86 40778534.01 35446835.88 Net block 31704061.34 35896635.86 40576595.21 44247558.24

Current assets loans and advances

Inventories 6A 28723853.93 49579601.50 27166555.81 28178511.12 Sundry debtors 6B 6530783.80 3878342.17 2140287.20 2056218.36 Cash and bank balance

6C 2136547.31

2000630.21

1480774.84

1508626.69 Loans and advances

6D 5421875.85 4261651.79

4274097.13

7071300.01

Total 42813060.89 59720225.67 35061714.98 38814656.18

Current Liabilities and provisions

Less: current liabilities 7A 17841200.11 36714710.25 16539666.49 16764880.18

Less: provisions Total

7B 2741623.00 20582823.11

1743503.00 38458213.25

1641938.00 18181604.49

500000.00 17264880.18

Net current assets 22230237.52 21262012.42 16880110.49 21549776.00 Miscellaneous expenditure(to the extend not written off or adjusted)

-

-

-

-

Profit and loss account 9034510.52 11066268.35 6059787.26

TOTAL 62968809.63 68224916.63 63516492.96 65797334.24 Source: Company annual reports

39

3.5.21. Future Plan

Primus has a very high demand for its products. It has entered the domestic market since last

two years and due to its product quality the demand for gloves is very high. With the present

unit the company is not able to supply as per the demand. So as to meet the demand and to

yield high profit the company is planning to...

Further expansion of the plant outside the CSEZ. Company is planning to start two more

units in Palakkad.

Introduction of nitrile gloves from synthetic rubber. Nitrile rubber has very high demand

in the international market and profit margin from it is much high compared to natural

latex.

Introduction of Light Glove it is in the preliminary stage.

40

3.5.22. Department Details

Primus Gloves Private Limited consists of mainly ten departments. Each department’s role is

very important to achieve the company’s objective. The different departments are:

Production Department

Personnel Department

Finance Department

Quality Assurance Department

Inspection Department

Maintenance Department

Commercial Department

Stores Department

Systems department

Marketing Department

41

1. Production Department

This department deals with all production related matters like fixing daily targets, monthly

target, to see whether raw latex, process materials, chemicals, product and packing

materials meets the required specifications etc.

Departmental Function

Planning and execution of production activities like compounding, glove production,

chlorination, inspection, walleting, packing, sterilization and dispatch.

Preparation of dispersion and compounding

Ensuring raw latex, process materials, chemicals, product and packing materials meets

the required specifications.

In process quality checks and monitoring process.

Establishing and maintaining process control at all required stages of production as per

laid down procedure.

Ensuring timely provisioning and maintenance of production process, chemicals and

other materials to achieve the planned output both in terms of productivity and quality.

Analysis of process data and interpretation.

Implementation of various process activities.

Ensuring that the products are produced as per the approved process procedure.

Maintain all machinery and equipment for proper running.

Timely provisioning and maintenance of production plant/process.

Coordination with various departments to achieve and implementation of routine

works.

Proper housekeeping to ensure adheres to GMP guidelines and procedures.

Making QC charts and displays.

Maintain storage conditions at all designation areas.

42

Maintain and upkeep of quality documents

Regular review of quality objectives and control points with MR.

Proper labeling and identification of plant machinery, equipment, in process materials

and raw materials.

Process validation and preparation of validation documents.

43

2. Finance Department

Finance is the back bone of every business organization. The finance department is one of

the most important departments in a business, as it helps provide the financing and

accounting information necessary to make various decisions. This department deals with

all types of accounts. Managing director is the head of this department. All financial

transactions of Primus are dealt by State Bank of India, Kaloor.

Departmental Function

Preparation of balance sheet and trial balance.

Finalization of accounts

Budget preparation

Finance activities like monthly financial statement, cash flow, turnover, reconciliation,

TDS annual returns etc.

Opening of letter of credit.

Compliance of statutory requirement like sales tax, financial institutions, company act

etc.

Maintain gloves stock register.

Upkeep of books of accounts including customs and stock records.

44

3. Quality Assurance Department

PRIMUS Gloves has a full-fledged quality assurance department. The gloves produced in

the company are of three types. They are Type-A, Type-B and Type-C. Among these three

gloves Type –A is meant for exporting and Type-B & C are for domestic purpose. The

firm gives 100% quality products to the customer.

Quality assurance, or QA for short, refers to a program for the systematic monitoring and

evaluation of the various aspects of a project, service, or facility to ensure that standards

of quality are being met. Even goods with low prices can be considered quality items if

they meet a market need. QA is more than just testing the quality of aspects of a product,

service or facility, it analyzes the quality to make sure it conforms to specific requirements

and comply with established plans.

Department Functions

Ensure only calibrated gauges instruments and test equipment’s are used.

Ensure maintenance of proper inspection and test status at all stages of manufacturing

and testing of items in time with documented procedure.

Developing technical specification for raw materials, in process materials and product.

Investigate, analyse and initiate necessary corrective and preventive action on all non-

conformities noticed

Operation and proper maintenance of standards.

Assurance of product quality through monitoring of process parameters.

Initiate process/product improvements

Customer complaint processing including adverse incident reporting.

Monitoring post market surveillance activities including issuing advisory notice and

product recall advices.

Liaison with external auditors/sub-contractors.

Coordinating small group activity development or projects and process improvement

activities.

Coordinating data analysis and interpretation.

Coordinate the preparation of registration and the other quality documents.

45

Implementation of various statistical techniques.

Designing and developing art work (labeling).

Control of sterilization process

Design new measurement tools (methods) for effective analysis of data.

Devising predictive model to make the system proactive

Design and develop rapid testing methods.

Process capability study.

Shelf life studies of the product.

Control sample analysis

Coordination of process change control system

Process validation

46

4. Inspection Department

This department role is to ensure that all the workers are adherence to personnel hygiene

standards and also to see whether inspection and packing areas are cleaned and

housekeeping practices are maintained.

The next stage after production is inspection followed by packing. The packing itself has

four stages.

Figure 3.4. Process after production

47

5. Maintenance Department

The maintenance department role is to repair and maintain all the equipments and

machineries in the factory. It also have to prepare and upkeep the quality documents and

operation and maintenance manuals etc.

Department Function

Calibration of all instruments and equipment’s.

Repair and maintenance of all equipment and machineries including housekeeping

equipment’s.

Ensure corrective and preventive maintenance system is established.

Qualification of all equipment’s.

Effluent treatment and water management system to the factory.

Plumbing works, repairs, fabrication works, in the factory as and when required.

Preparation and upkeep of quality documents and operation and maintenance

manuals.

Operation and maintenance of thermic fluid heater.

Inventory of essential spare parts.

Process validation and machine capability study.

Operation and maintenance of packing and printing machines.

Various break down analysis.

Regular review of the status of quality objectives and control points with MR.

Making QC charts and displays.

Proper housekeeping to ensure adherence to GMP guidelines and procedures.

Annual maintenance of plant and other equipment’s/machines.

Proper labeling and identification of equipment’s/machines.

Follow up with KSEB, factories and boilers and pollution control board.

Furnishing data for statutory purposes.

Maintenance of electrical, mechanical and pneumatic systems of the company.

48

6. Commercial Department

In Primus commercial department keeps all the records of the exports and imports of the

company. All the documentation part is done by this department. This department consists

of executive commercial and assistant commercial.

Department Function

Coordination of all export/import/dispatch activities.

Coordinating with customer authorities for import and export activities, purchase and

sales of materials etc.

Filing of all documents including customer samples.

Avail bill of lading from authorized shipping lines

Coordination with C&F agents for bill filing to customs

Preparation and upkeep of all register like export/import, finished products register, B

Grade register, rejected goods, purchase & sale register etc.

Preparation of GSP Form A for certification

Statutory reports like duty drawback for furnace oil, annual and quarterly progress,

reports to CSEZ office.

Job work arrangements like sterilization works related to printing and pouch/wallet

making and repairs.

Avail insurance policy

Proper housekeeping to ensure adherence to GMP guidelines and procedure

Maintain and upkeep of quality documents.

49

7. Stores Department

In Primus this department maintains all records relating to the purchase and sale. Maintain

the reorder level. And also see whether raw materials are procured in right time.

Department Function

Activities concerning purchase and stores.

Vendor development, evaluation and rating etc.

Inventory control system

Timely procurement of raw materials/ chemicals/component of a specified quality and

quantity

Material re-testing function

Maintain re-order level

Proper labeling and identification of chemical/raw materials/packing materials etc.

Proper housekeeping to ensure adherence to GMP guidelines and procedures.

Regular review of quality objectives and control points with MR.

Maintain and up keep of quality documents

50

8. Systems Department

The systems department main aim is to maintain a trouble free network for the company

and is responsible for computerization of all department of the company. The company

also has an ERP system for all the departments this would reduce cost and time. The two

networks used by the company are LAN (local area network) and WAN (wide area

network). The Operating system used is Windows 2003 server enterprise editor. The

software used by the company as front end is vb.net and oracle as back end. Presently

there are 20 computers in the company and the internet connection is provided by VSNL.

Department Functions

To meet the IT based requirement.

To maintain a trouble free network for the company.

To keep the backup of the data that’s stored in the server.

To see whether the ERP system is going well.

To outsource the required software as per the requirement.

To see if legal software are used.

To update the website of the company

To customaries application development

To see that annual maintenance contract is given.

51

9. Marketing Department

Marketing department is one of the most important components of a business’s survival in

the market. The main aims of the marketing department revolve around understanding the

customers and their needs. Marketing activities involve designing, promoting, pricing a

product according to the needs of the market and customers. The main aims of the

marketing department of any organization. Businesses today revolve around customers

and their needs. It has become all the more important to identify what exactly a consumer

expects from a product or service.

Their aim is to ensure that new customers buy products or services offered by their

organization and the older ones make repeat purchases. Marketing department needs to

work in close coordination with the other departments such a purchasing, sales, finance

etc. to ensure that the customer needs are satisfied while generating profits for the

organization. The marketing department plays an important role in marketing finished

products of the company. Primus gloves private limited has an efficient and well-

coordinated marketing system. The managing director directly controls the activities of

the marketing department.

Department Functions

Business planning and direction

Post marketing surveillance

Customer handling

All activities regarding product registration/EU representative

Customer complaint analysis

Customer sample preparation in coordination with production and QA department

Competent glove sample analysis

Consignment master plan

All activities regarding purchasing enquiry/contracts.

Follow up with customers-payments, shipments, LC as per the order position of the

company

Updating of website, literatures, brochures etc.

52

10. Personnel Department

The personnel department is responsible for hiring, training and placing employees and for

setting policies for personnel management.

Goals and objectives of Personnel Department

Modern HRM has a holistic towards its goals i.e. it tries to maintain equilibrium among

organizational, personal and social interests. Conscious efforts are taken to match the interest

of all the three. The company’s very objective is to serve the society and it’s the society that

helps the company to sustain its growth. So the company must relate the products and service

to sustainable development of the society.

(a) Department Structure

Figure3.5. Personnel department structure

DIRECTOR

GENERAL MANAGER

EXECUTIVE PERSONNEL

ASSISTANT PERSONNEL

53

(b) Departmental Function

HR activities like recruitment, orientation program, training, performance appraisal

etc.

Proper requirement analysis and man power allocation

Maintaining personal files of all staff.

Preparation and monitoring of statutory works like P.F Payment. Monthly returns,

annual returns (PF), ESI Payments, half yearly returns etc

Preparation and monitoring of statutory works

Wages and salary functions

Housekeeping in the company like fumigation activities, pest and rodent control,

cleaning hygiene etc and ensure adherence to GMP guidelines and procedures

Welfare activities like counselling, medical checkups, accident claims etc.

Regular review of quality objectives and control points with MR.

Maintain and upkeep of quality documents.

(c) Duties and Responsibilities

Executive personnel

o Coordinate and maintain a database for the recruitment training, performance

appraisal and record of all the employees.

o Preparation of statutory reports to Employee State Insurance (ESI), Returns,

provident fund (PF), Professional tax statements etc.

o Schedule and arrangement of training, induction programs for the employees.

o Coordinate the security arrangement of the company.

o Verification of monthly wages and salary statement and distribution of salary.

o Maintain personal files of employees of the company.

o Schedule and arrange training programs for the employees.

o Maintain and preparation of all required quality system procedures, work

instruction form.

54

o Coordinate and execute the welfare activities like medical check-ups, first aid,

provide uniform, counselling and accident claims follow up etc.

o Implementation of housekeeping practices to ensure adherence to GMP

guidelines and procedures.

o Preparation of housekeeping schedule and fumigation activities, pest and

rodent control.

o Preparation of monthly report and submit to the management for review.

Assistant Personnel

o Preparing returns like PF, ESI, labour welfare etc.

o Provide all assistance to executive personnel.

o Preparation of daily punching reports.

o Updating of PL Register.

o Preparation of ESI & PF Chelan.

o Maintain and updating of attendance register.

o Preparing documents related to LIC cutting and home loans.

o Reports to executive personnel.

(d) Wages and Salary

The salary scale of general manager, departmental managers, office staffs and workers of the

company are as shown below.

Table 3.5. Wages and Salary

GENERAL MANAGER 22,000 per month

MANAGER 16,000-18,000 per month

OFFICE STAFFS 8,000-10,000 per month

WORKERS 5,000-7,000 per month

55

(e) Welfare Measures

The following are the employee welfare measures of Primus Gloves Private Limited

Leave facility

Medical facility

Employee state insurance facility

Canteen facility

Uniforms in the work place

Employee provident fund

Over time benefits

(f) Employee Counselling

The employees in Primus are given chances for counselling in every six months or and when

required by a qualified doctor. If the doctor finds anyone requiring further counselling he will

do it.

(g) Industrial Relations

CITU is the trade union of the company. The employees are actively participating in union

and it is functioning in a very peaceful manner.

(h) Office Time

The workers of the company are given Electronic Punching Card and the officers use the

attendance register for recording their attendance. To avoid any kind of malpractices time

sheet is used to mark the attendance for the low level workers. The marking in the time sheet

is done by the supervisor who is in charge of each shift.

56

Table 3.6. Work Schedule

FOR WORKERS 6 AM – 2PM

2PM-10PM

10PM-6AM

GENERAL SHIFT 8.30 AM – 5PM

FOR OFFICE STAFF 9AM-5.30PM

SECURITY OFFICERS 8.30 AM -830PM

57

Chapter 4

Research Methodology

58

4.1. Research Design

A research design is a plan of the proposed research work. The research design is simply a

specific presentation of the various steps in the process of research. The best definition for

research design has been given by F.N. Kerlinger which specifies the process and structure of

research. According to him research design is, “the plan, structure, and strategy of

investigation conceived so as to obtain answers to research questions and to control variance”.

It consists of the blue print for the collection, measurement and analysis of data.

Descriptive research design is best suitable to portray the characteristics of a group or

individual. Hence descriptive research design is followed to describe in detail the

Organizational Citizenship Behaviour of employees at Primus Gloves Private Limited,

Kakkanad, Kochi. This research study also has an exploratory nature, as specific hypothesises

are formulated for the precise investigation on the association of OCB and its antecedents.

The research method adopted for the study is sample survey method.

Title of the study:

“A Study on Organizational Citizenship Behaviour of employees at Primus Gloves Private

Limited, Kakkanad, Kochi.”

Hypothesis of the Study:

H0: The various antecedents of OCB is not dependent on Organizational Citizenship

Behaviour

H1: The antecedent Altruism is dependent on Organizational Citizenship Behaviour.

H2: The antecedent Conscientiousness is dependent on Organizational Citizenship

Behaviour.

H3: The antecedent Civic virtue is dependent on Organizational Citizenship Behaviour.

H4: The antecedent Sportsmanship is dependent on Organizational Citizenship Behaviour

H5: The antecedent Courtesy is dependent on Organizational Citizenship Behaviour.

59

4.1.1. Data Collection Design

4.1.1.1 Data Sources

Primary data sources:

Primary data are those collected by the researcher for the first time and thus they are original

in character. Since they are collected for the first time for the purpose of a study it is primary

in nature.

In this Study on Factors influencing Organizational Citizenship Behaviour of employees at

Primus Gloves Private Limited, Kakkanad, Kochi the primary data was collected using

questionnaire. They were filled by the employees of both administrative and plant level.

Secondary data sources:

Secondary data are those which have been collected by some other person for his purpose and

published. So a researcher is said to make use of secondary data if he makes use of data

already compiled by some other person.

The secondary sources for data used in the study include company annual reports, company

records and information from internet used to develop the industry profile and literature

review.

4.1.1.2. Data Collection Method

In the Study on Factors influencing Organizational Citizenship Behaviour of employees at

Primus Gloves Private Limited, Kakkanad, Kochi, the data collection methods adopted is

sample survey method.

4.1.1.3. Tools of data collection

In the Study on Factors influencing Organizational Citizenship Behaviour of employees at

Primus Gloves Private Limited, Kakkanad, Kochi, the tools for data collection used is

Questionnaire.

60

Table 4.1. Performa of Questionnaire

Statement Nos. Representing Predictor

1-4 Demographic details

5-13 OCB

14-15 Altruism

16-20 Conscientiousness

21-23 Civic virtue

24-30 Sportsmanship

30-36 Courtesy

61

4.1.2. Sampling Design

Sampling may be defined as the process of obtaining information about an entire population

by examining only a part of it. In any investigation if data are collected only from a

representative part of the universe it is then said that the data is collected by sampling. The

representative part is called a sample. The study of sample reveals the characteristics of the

universe. This is based on the law of statistical regularity.

Population:

The population of the study on Organizational Citizenship Behaviour at Primus,

is a finite population that constitute all the employees of the organization. The population

strength is 289 employees which include administrative and plant level staff.

Sampling unit:

Before proceeding to study or select samples, it is important to decide on the units of the

sample. The sampling units may be geographical units like a state, a district, a region, etc. or

structural units like or social groups or an individual. The sampling unit of the study on

Organizational Citizenship Behaviour at Primus are each employee working currently in the

organization.

Sample size:

From the population of 289 employees a sample size of 50 employees was taken to conduct

the study. Out of the fifty employees the administrative to plant level employee ratio was

taken in the proportion of 1:7.

Sampling Procedure:

The research study on Organizational Citizenship Behaviour at Primus follows probability

sampling. The probability sampling method adopted for the study is stratified sampling. There

are two strata’s of employees- administrative and plant level employees. The sample size has

been divided among the two strata’s in the ratio 1:7.

62

4.1.3 Statistical Design

In the study on Organizational Citizenship Behaviour at Primus the tools for data analysis

utilized are:

SPSS

MS Excel

63

Chapter 5

Data Analysis & Interpretation

64

5.1. Data Analysis and Interpretation

Analysis of data is considered to be highly skilled and technical job which should be carried

out only by the researcher himself or under his close supervision. It is through systematic

analysis that the underlying features of the data are revealed and valid generalisations are

arrived at.

Analysis of data means critical examination of the data for studying the characteristics of the

object under study and for determining the patterns of relationships among the variables

relating to it using both quantitative and qualitative methods. Through analysis an attempt is

made to study the collected data and derive results. Analysis is not complete without

interpretation and interpretation cannot proceed without analysis. Both are interdependent.

An interpretation refers to the technique of drawing inference from the collected facts and

explaining the significance of those inferences after an analytical and experimental study. It is

a search for broader and more abstract means of the research findings.

Interpretation analyses the abstract relations in more concrete terms and tries to unfold the

reasons for existing type of relations or findings. It relates the empirical findings with

theoretical principles and helps to draw a number of useful inferences from the study. The

prime task of interpretation is to bring t the surface the real importance of the findings. An

interpretation should explain the findings of the analysis in objective terms. It is through

interpretation that a researcher can understand real significance of his findings.

65

5.2. Paired Sample T test - Testing the dependence of the factors and OCB

Table5.1. Paired Sample T Test Statistics of OCB and its antecedents Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean

OCB 3.5200 50 .54361 .07688 Pair 1

Altruism 4.2600 50 1.08440 .15336 OCB 3.5200 50 .54361 .07688 Pair 2 Conscientiousness 2.2600 50 1.00631 .14231 OCB 3.5200 50 .54361 .07688 Pair 3 Civic virtue 2.5200 50 .90891 .12854 OCB 3.5200 50 .54361 .07688 Pair 4 Sportsmanship 2.8800 50 1.18907 .16816 OCB 3.5200 50 .54361 .07688 Pair 5

Courtesy 4.5000 50 .73540 .10400

Table5.2. Paired Sample T test between antecedents of OCB and OCB

Paired Samples Test

Paired Differences

95% Confidence Interval of the

Difference

Mean Std.

Deviation

Std. Error Mean Lower Upper t df

p-value/ Sig. (2-tailed)

OCB - Altruism -.74 .98582 .13942 -1.02017 -.45983 -5.308 49 .000 OCB - Conscientiousness

1.26 .87622 .12392 1.01098 1.50902 10.168 49 .000

OCB – Civic virtue

1.00 .83299 .11780 .76327 1.23673 8.489 49 .000

OCB - Sportsmanship

.64 1.10213 .15586 .32678 .95322 4.106 49 .000

OCB - Courtesy -.98 .71400 .10097 -1.18292 -.77708 -9.705 49 .000

Inference:

In the table of paired samples T test statistics it is seen that the mean of the antecedents of

OCB is either 1 point above or below, the mean of OCB i.e. 3.52. According to the scale of

the questionnaire this would mean that a majority of the sample exhibit these behaviours

either seldom or sometimes or often. Only a minority of the sample say that they exhibit these

behaviours always, or else never.

66

In the table of paired samples T test an analysis is done to know whether OCB is associated or

dependent on each of its five antecedents. For this five paired samples T test results are given

in the table. Let us examine the test in detail for each paired sample T test.

Paired Samples T test – OCB vs. Altruism

For the pair OCB and Altruism, the assumed hypotheses are,

H0: The antecedent Altruism is not dependent on Organizational Citizenship Behaviour.

H1: The antecedent Altruism is dependent on Organizational Citizenship Behaviour.

Taking the p-value or significance level of the pair OCB – Altruism it is seen that p<0.05,

therefore it means reject H0. Hence H1 is true i.e. the antecedent Altruism is dependent on

Organizational Citizenship Behaviour. So the conclusion from the test is that Altruism is

associated to OCB.

Paired Samples T test – OCB vs. Conscientiousness

For the pair OCB and Conscientiousness, the assumed hypotheses are,

H0: The antecedent Conscientiousness is not dependent on Organizational Citizenship

Behaviour.

H2: The antecedent Conscientiousness is dependent on Organizational Citizenship

Behaviour.

Taking the p-value or significance level of the pair OCB – Conscientiousness it is seen

that p<0.05, therefore it means reject H0. Hence H2 is true i.e. the antecedent

Conscientiousness is dependent on Organizational Citizenship Behaviour. So the

conclusion from the test is that Conscientiousness is associated to OCB.

Paired Samples T test – OCB vs. Civic virtue

For the pair OCB and Civic Virtue, the assumed hypotheses are,

H0: The antecedent Civic virtue is not dependent on Organizational Citizenship

Behaviour.

H3: The antecedent Civic virtue is dependent on Organizational Citizenship Behaviour.

67

Taking the p-value or significance level of the pair OCB – Civic virtue it is seen that

p<0.05, therefore it means reject H0. Hence H3 is true i.e. the antecedent Civic virtue is

dependent on Organizational Citizenship Behaviour. So the conclusion from the test is

that, Civic virtue is associated to OCB.

Paired Samples T test – OCB vs. Sportsmanship

For the pair OCB and Sportsmanship, the assumed hypotheses are,

H0: The antecedent Sportsmanship is not dependent on Organizational Citizenship

Behaviour.

H4: The antecedent Sportsmanship is dependent on Organizational Citizenship Behaviour.

Taking the p-value or significance level of the pair OCB – Sportsmanship it is seen that

p<0.05, therefore it means reject H0. Hence H4 is true i.e. the antecedent Sportsmanship

is dependent on Organizational Citizenship Behaviour. So the conclusion from the test is

that, Sportsmanship is associated to OCB.

Paired Samples T test – OCB vs. Courtesy

For the pair OCB and Courtesy, the assumed hypotheses are,

H0: The antecedent Courtesy is not dependent on Organizational Citizenship Behaviour.

H5: The antecedent Courtesy is dependent on Organizational Citizenship Behaviour.

Taking the p-value or significance level of the pair OCB – Courtesy it is seen that p<0.05,

therefore it means reject H0. Hence H5 is true i.e. the antecedent Courtesy is dependent on

Organizational Citizenship Behaviour. So the conclusion from the test is that, Courtesy is

associated to OCB.

Therefore from the Paired samples T test analysis and interpretation it has been found out that

- Altruism, Conscientiousness, Civic virtue, Sportsmanship and Courtesy are all associated to

the Organizational Citizenship Behaviour of employees. Hence it can be concluded that the

factors influencing OCB are Altruism, Conscientiousness, Civic virtue, Sportsmanship and

Courtesy.

68

5.4. Testing Significance of Correlation of factors with OCB

Table5.3. Correlations of OCB and its antecedents Correlations

OCB Altruism

Conscientiousness

Civic Virtue

Sportsman-ship Courtesy

Pearson Correlation

1

Sig. (2-tailed)

OCB

N 50

Pearson Correlation

.424** 1

Sig. (2-tailed) .002

Altruism

N 50 50

Pearson Correlation

.494** .292* 1

Sig. (2-tailed) .000 .040

Conscientiousness

N 50 50 50

Pearson Correlation

.433** .316* .853** 1

Sig. (2-tailed) .002 .026 .000

Civic Virtue

N 50 50 50 50

Pearson Correlation

.383** .215 .709** .493** 1

Sig. (2-tailed) .006 .134 .000 .000

Sportsman-ship

N 50 50 50 50 50

Pearson Correlation

.408** .525** .372** .366** .140 1

Sig. (2-tailed) .003 .000 .008 .009 .332

Courtesy

N 50 50 50 50 50 50

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

69

Inference:

The above table clearly interprets the significance of correlation between OCB and its

antecedents. The findings from the table of correlations are listed below:

The correlation of OCB and Altruism is significant at the 0.01 level.

The correlation of OCB and Conscientiousness is significant at the 0.01 level.

The correlation of OCB and Civic virtue is significant at the 0.01 level.

The correlation of OCB and Sportsmanship is significant at the 0.01 level.

The correlation of OCB and Courtesy is significant at the 0.01 level.

70

5.3. Response of Employees on the various predictors

5.3.1 Organizational Citizenship Behaviour

Table 5.4 Frequency table of response - OCB OCB

Frequency Percent Valid Percent

Cumulative Percent

sometimes 25 50.0 50.0 50.0

often 24 48.0 48.0 98.0

always 1 2.0 2.0 100.0

Valid

Total 50 100.0 100.0

Fig.5.1. Pie chart of response – OCB

71

Inference:

According to the employee response to the specific questions concerned with OCB, 50% of

the sample says that they exhibit organizational citizenship behaviour sometimes. Among the

rest 50% of the sample, 48% exhibit OCB often and only the remaining 2% exhibit it always.

So the findings are that, only 2% of the sample shows high Organizational Citizenship

Behaviour. The 48% of the sample often exhibit OCB, so they could have possibilities of

raising their OCB without much difficulty. The 50 % of the sample, who say that they exhibit

OCB only sometimes, would require effort to develop high level of OCB among them.

72

5.3.2 Altruism Table 5.5 Frequency table of response - Altruism

Altruism

Frequency Percent Valid Percent

Cumulative Percent

seldom 5 10.0 10.0 10.0

sometimes 9 18.0 18.0 28.0

often 4 8.0 8.0 36.0

always 32 64.0 64.0 100.0

Valid

Total 50 100.0 100.0

Fig.5.2. Pie chart of response - Altruism

73

Inference:

According to the employee response to the specific questions concerned with Altruism, 64%

of the sample says that they exhibit Altruism always. Among the rest 36% of the sample, 8%

exhibit Altruism often, 10% seldom and the remaining 18% exhibit it sometimes.

The above analysis clearly depicts that, only 64% of the sample shows high Altruism. The 8%

of the sample often exhibit Altruism, so they could have possibilities of raising their Altruism

without much difficulty. The 18% of the sample, who say that they exhibit Altruism

sometimes, would require effort to develop high level of Altruism among them. The 10% of

the sample, who say that they exhibit Altruism only seldom, should be provided with

awareness and motivation to help others during work.

5.3.3 Conscientiousness

74

Table 5.6 Frequency table of response - Conscientiousness Conscientiousness

Frequency Percent Valid Percent

Cumulative Percent

never 10 20.0 20.0 20.0

seldom 27 54.0 54.0 74.0

sometimes 3 6.0 6.0 80.0

often 10 20.0 20.0 100.0

Valid

Total 50 100.0 100.0

Fig.5.3. Pie chart of response – Conscientiousness

Inference:

75

According to the employee response to the specific questions concerned with

Conscientiousness, 54% of the sample says that they exhibit Conscientiousness seldom.

Among the rest 46% of the sample, 20% exhibit Conscientiousness often, 20% never and the

remaining 6% exhibit it sometimes only.

So the findings are, only 20% of the sample shows Conscientiousness often, so they could

have possibilities of raising their Conscientiousness. The 6% of the sample that sometimes

exhibit Conscientiousness would require effort to develop high level of Conscientiousness

among them. The rest 74% of the sample, i.e. 54% with seldom Conscientiousness and 20%

never Conscientiousness, should be provided with awareness and motivation to help others

during work.

76

5.3.4. Civic Virtue

Table 5.7 Frequency table of response – Civic virtue Civic Virtue

Frequency Percent Valid Percent

Cumulative Percent

never 5 10.0 10.0 10.0

seldom 23 46.0 46.0 56.0

sometimes 13 26.0 26.0 82.0

often 9 18.0 18.0 100.0

Valid

Total 50 100.0 100.0

Fig.5.4. Pie chart of response – Civic virtue

77

Inference:

According to the employee response to the specific questions concerned with Civic virtue,

46% of the sample says that they exhibit Civic virtue seldom only. Among the rest 54% of the

sample, 18% exhibit Civic virtue often, 10% never and the remaining 26% exhibit it

sometimes.

So the analysis is interpreted that, only 18% of the sample shows Civic virtue often, so they

could have possibilities of raising their Civic virtue easily. The 26% of the sample that

sometimes exhibit Civic virtue would require effort to develop high level of Civic virtue

among them. The rest 56% of the sample, i.e. 46% with seldom civic virtue and 10% never

civic virtue, should be provided with awareness and motivation on Civic virtue.

78

5.3.5. Sportsmanship

Table 5.8 Frequency table of response – Sportsmanship Sportsmanship

Frequency Percent Valid Percent

Cumulative Percent

never 4 8.0 8.0 8.0

seldom 18 36.0 36.0 44.0

sometimes 16 32.0 32.0 76.0

often 4 8.0 8.0 84.0

always 8 16.0 16.0 100.0

Valid

Total 50 100.0 100.0

Fig.5.5. Pie chart of response – Sportsmanship

79

Inference:

According to the employee response to the specific questions concerned with Sportsmanship,

36% of the sample says that they exhibit Sportsmanship seldom only and 16% always.

Among the rest 48% of the sample, 8% exhibit Sportsmanship often, 8% never and the

remaining 32% exhibit it sometimes.

So the findings from this are, 16% of the sample shows high Sportsmanship. The 8% of the

sample shows Sportsmanship often, so they could have possibilities of raising their

Sportsmanship without much difficulty. The 32% of the sample that sometimes exhibit

Sportsmanship would require effort to develop high level of Sportsmanship among them. The

rest 44% of the sample, i.e. 36% with seldom Sportsmanship and 8% never Sportsmanship,

should be provided with awareness and motivation.

80

5.3.6. Courtesy

Table 5.9 Frequency table of response – Courtesy Courtesy

Frequency Percent Valid Percent

Cumulative Percent

sometimes 7 14.0 14.0 14.0

often 11 22.0 22.0 36.0

always 32 64.0 64.0 100.0

Valid

Total 50 100.0 100.0

Fig.5.6. Pie chart of response – Courtesy

81

Inference:

According to the employee response to the specific questions concerned with Courtesy, 64%

of the sample says that they exhibit Courtesy always. Among the rest 36% of the sample, 22%

exhibit Courtesy often and the remaining 14% exhibit it sometimes only.

So the findings from this are that, 64% of the sample shows high Courtesy. The 22% of the

sample often exhibit Courtesy, so they could have possibilities of raising their Courtesy

without much difficulty. The 14% of the sample, who say that they exhibit Courtesy only

sometimes, would require effort to develop high level of Courtesy among them.

82

5.4. Demographic data analysis

5.4.1 Employee Gender

Table5.10. Frequency table – Gender ratio

Gender

Frequency Percent Valid Percent

Cumulative Percent

Female 45 90.0 90.0 90.0

Male 5 10.0 10.0 100.0

Total 50 100.0 100.0

Fig5.7. Pie chart – Gender

83

Inference:

The sample of employees for this study constituted 90% of female employees and the rest

10% male employees. So in this research a majority of female employees has taken part

compared to the minority of male employees.

84

5.4.2. Employee age group

Table5.11. Frequency table – Age Group

Age Group

Frequency Percent Valid Percent

Cumulative Percent

Less than 25 7 14.0 14.0 14.0

25-30 26 52.0 52.0 66.0

30-35 14 28.0 28.0 94.0

35-40 3 6.0 6.0 100.0

Total 50 100.0 100.0

Fig5.8. Pie chart – Age group

85

Inference:

In this research study 52% of the participant employees fall in the age group 25 to 30 years,

28% in 30 to 35 years, 14% in less than 25 years and 6% in 35 to 40 years. So we can say a

majority of employees come in the age group of 25 to 40 years.

86

3.4.3. Employee Designation level

Table5.12. Frequency table – Designation level

Designation level

Frequency Percent Valid Percent

Cumulative Percent

Administration level 6 12.0 12.0 12.0

Plant level 44 88.0 88.0 100.0

Total 50 100.0 100.0

Fig5.9. Pie chart - Designation level

Inference:

In the research study a majority of 88% of the sample employees hold a designation in the

plant level and the rest 12% in the administration level.

3.4.4. Employee experience in the organization

87

Table5.13. Frequency table – Experience in Organization

Experience in Organization

Frequency Percent Valid Percent

Cumulative Percent

Less than 2yrs 3 6.0 6.0 6.0

Above 5 yrs 41 82.0 82.0 88.0

between 2 to 5 yrs 6 12.0 12.0 100.0

Total 50 100.0 100.0

Fig5.10. Pie chart - Experience in Organization

88

Inference:

In this study a majority of 82% of the sample employees have work experience of above 5

years in the organization. Out of the rest 18%, 12% have experience between 2 to 5 years and

6% have experience less than 2 years in the organization.

89

Chapter 6

Findings of the study

6.1. Findings of the study:

90

Altruism is associated to Organizational Citizenship Behaviour.

Conscientiousness is associated to Organizational Citizenship Behaviour.

Civic virtue is associated to Organizational Citizenship Behaviour.

Sportsmanship is associated to Organizational Citizenship Behaviour.

Courtesy associated to Organizational Citizenship Behaviour.

The factors influencing OCB are Altruism, Conscientiousness, Civic virtue, Sportsmanship and Courtesy.

The correlation of OCB and its antecedent’s i.e. Altruism, Conscientiousness, Civic virtue, Sportsmanship and Courtesy is significant at the 0.01 level.

A majority exhibit high Sportsmanship and Courtesy.

A minority exhibit high Altruism.

Employees who often exhibit OCB could have possibilities of raising their OCB to a higher level without much difficulty.

Employees who often exhibit Altruism could have possibilities of raising their Altruism to a higher level without much difficulty.

Employees who often exhibit Conscientiousness could have possibilities of raising their Conscientiousness to a higher level without much difficulty.

Employees who often exhibit Civic virtue could have possibilities of raising their Civic virtue to a higher level without much difficulty.

Employees who often exhibit Sportsmanship could have possibilities of raising their Sportsmanship to a higher level without much difficulty.

Employees who often exhibit Courtesy could have possibilities of raising their Courtesy to a higher level without much difficulty.

In overall considering all factors, OCB is exhibited by only few employees.

91

Chapter 7

Suggestions

92

7.1. Suggestions

The main suggestion of the study is to develop a programme to train the

employees’ in-order to develop their Organizational Citizenship Behaviour. The training

programme should focus on the influential behaviours of OCB like Altruism,

Conscientiousness, Civic virtue, Sportsmanship and Courtesy and the program should be

enhanced in such a way as to develop each of these antecedents of OCB. The training

programme should ensure the following:

Employees who always exhibit OCB and its antecedents should be appreciated for

their self-initiated extra-role behaviour.

Employees who often exhibit OCB and its antecedents should be made aware that they can easily achieve higher level of OCB in order to achieve organizational effectiveness.

Employees that exhibit these OCB and its antecedent sometimes have to be encouraged to take self effort to develop high level of OCB.

Employees who seldom or never exhibit these behaviours should be provided with in-depth awareness and motivation on Organisational Citizenship Behaviour and its antecedents.

93

Chapter 8

Conclusion & Scope for further study

94

8.1. Conclusion Organizational Citizenship Behaviour and its antecedents which is the focus of this study

have an importance in determining the effectiveness, efficiency and productivity of the

organization. Although this kind of behaviour is not a mandatory factor to be maintained in

organizations, still it plays a vital and important role in the growth of any organization.

Altruism or helping coworkers makes the work system more productive because one worker

can utilize his or her slack time to assist another on a more urgent task. Altruism encourages

teamwork and cooperation, allowing employees to increase the pool of available knowledge.

Such teamwork should facilitate the more complex customer service tasks to be accomplished

more quickly.

Conscientious employees, as well as those who avoid personal gain or other negative

behaviors, demonstrate compliance with company policies and maintain predictable,

consistent work schedules, thereby increasing the reliability of the service. As reliability

increases, the costs of rework are reduced, making the unit more efficient. Such reliability will

help retain customers and increase word-of-mouth marketing.

Acts of Civic virtue may include offering suggestions for cost improvement or other resource

saving ideas, which may directly influencing efficiency. Fast service is a valued component in

the minds of customers. Excellent customer service also depends on employees being

informed with up-to-date knowledge about changes in products or services offered. When

employees act on out-dated information, or provide customers with the wrong information,

the image of the organization is tarnished. In order to keep all employees knowledgeable and

current on products and services, formal training may be necessary. The employees should be

willing to share, on a timely basis, any information regarding changes in procedures, services,

or products and should take interested in maintaining their own and others’ base of

knowledge. Finally, taking part in meetings, training or providing ideas that enhance customer

service would qualify as acts of civic virtue, as long as they are not part of employees' official

duties.

95

Sportsmanship in certain employees makes them willing to tolerate the difficulties faced

during their work. They maintain a positive attitude even when things do not go their way and

they are not offended when others do not follow their suggestions. Employees sportive in

nature sacrifice their personal interest for the good of the work group; and do not take

rejection of their ideas personally. Hence an employee with high Sportsmanship has a

tendency to have lower level of employee grievance.

A Courteous employee while taking decisions thinks and considers how the decision would

affect others and thereby prevents interpersonal conflicts.

In the situations mentioned above an organization achieves efficiency and productivity

through OCB. So we can conclude that Organizational Citizenship Behaviour is a vital factor

which can not be imposed in the employees’ mindset forcibly, but a good organization is that

were Organizational Citizenship Behaviour should be followed.

96

8.2. Scope for further Study

Over the three decades, research in the area of Organizational Citizenship Behaviour

has been diverse and varied. Some of the topics for further study on OCB are:

Gender differences with respect to the perception of OCB.

Negative effects of OCB.

Relationship between Emotional Intelligence and OCB.

Relationship between Team effectiveness and OCB.

Relationship between Burnout and OCB.

97

Appendix

Study on Organizational Citizenship Behaviour at Primus Gloves Pvt. Ltd.

Study on Organizational Citizenship Behaviour Page 98

Questionnaire (English)

(Note :- The data filled in by an employee is confidential)

(Section I)

1. Age :

2. Gender : Female Male

3. Designation :

4. You have been in this organization for:

a. Less than 2 years

b. More than 2 but less than 5 years

c. More than 5 years

(Below are given certain statements which state the organizational behaviour of employees.

For each statement 4 options are given. Kindly tick mark () the option that suits your

behaviour in the organization for each statement)

A- Never B- Seldom C- Sometimes D –Often E- Always

(Section II)

No. Statements A B C D E

5. Have adjusted your work schedule to accommodate other employees’ requests for time off.

6. Have helped others who have been absent.

7. Showed genuine concern and courtesy toward coworkers, even under the most trying work or personal situations.

8. Have offered ideas to improve the functioning of the organization.

9. Have expressed loyalty towards the organization.

10. Taken action to protect the organization from potential problems.

Study on Organizational Citizenship Behaviour at Primus Gloves Pvt. Ltd.

Study on Organizational Citizenship Behaviour Page 99

No. Statements A B C D E

11. Demonstrated concern about the image of the organization.

12. Took the initiative to troubleshoot and solve technical problems before requesting help from a supervisor.

13. Voluntarily did more than the job requires so that I can contribute to the overall functioning of the facility.

(Section III)

No. Statements A B C D E

14. Willingly give of my time to help others out who have work-related problems.

15. Being someone to whom coworkers often turn for help on the job.

16. Rarely takes long lunches or breaks.

17. Does not take unnecessary time off work.

18. Does not take extra breaks.

19. Not spending time in personal conversation.

20. Obeys company rules and regulations even when no one is watching.

21. Keeping up with changes within the organization.

22. I attend training/information sessions that I am encouraged to, but not required to attend.

23. Taking an active role in employee oganizations.

24. Being supportive of and not finding fault with the organization’s policies and activities.

25. Not blowing work-related problems out of proportion.

26. Not consuming a lot of time complaining about trivial matters.

27. Focusing on the positive side, instead on what’s wrong with work situations.

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Study on Organizational Citizenship Behaviour Page 100

No. Statements A B C D E

28. Not expressing resentment with any new changes in the work situation.

29. Not talking about wanting to quit.

30. Being mindful of how behaviour affects other people’s job in the organization.

31. Respecting the rights and privileges of other coworkers.

32. Respecting other employee’s rights to shared resources.

33. Informing other coworkers of one’s activities to avoid unanticipated problems.

34. Being courteous in interactions with other coworkers.

35. Trying to avoid creating problems for coworkers.

- Thank you. -

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Study on Organizational Citizenship Behaviour Page 101

Questionnaire (Malayalam)

I

1. :

2. :

3. :

4. :

a.

b.

c.

()

A- B- C-

D – E-

( II)

No. A B C D E

5.

6.

7.

8.

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Study on Organizational Citizenship Behaviour Page 102

9.

10.

No. A B C D E

11.

12.

13.

`

(III)

No A B C D E

14.

15.

16.

17.

18.

19.

20.

21.

22.

Study on Organizational Citizenship Behaviour at Primus Gloves Pvt. Ltd.

Study on Organizational Citizenship Behaviour Page 103

23.

24.

25.

26.

27.

No A B C D E

28.

29.

30.

31.

32.

33.

34.

35.

104

Bibliography

Methodology of Research in Social Sciences, O.R. Krishnaswami, M. Ranganathan,

Himalaya Publishing House.

Personnel Management, C. B. Mamoria.

Human Resource Management, Scott Shell.

Primus Gloves Pvt. Ltd. 11th ,12th and 13th annual reports (2007-2010).

Organizational Citizenship Behaviour: A review, Vivekanand, The ICFAI University

Journal of Organizational Behaviour, Vol. VIII, Nos. 3 & 4, 2009.

An Examination of the Factors Affecting Organizational Citizenship Behavior, By Liz

Dickinson, Departmental Honors Thesis, The University of Tennessee at Chattanooga

Accounting, March 27, 2009.

Borman, W., Penner, L., Allen, T., & Motowidlo, S. (2001). Personality predictors of citizenship performance. International journal of selection and assessment.

Coole, D.R. (2003). The Effects of Citizenship Performance, Task Performance, and Rating Format on Performance Judgments, University of South Florida.

Monthly price fluctuations of rubber worldwide taken from the official website of Malaysian

rubber board extracted from www.Malaysiarubberboard.com.

The rubber price fluctuations in India taken from the website rubber board extracted from

www.rubberboard.com.

The leading manufacturers and exporters of surgical and examination gloves in India ware

taken from the website exporters India extracted from www.exporters india.com

The market of rubber and certain supporting reports taken from the official website report

buyer extracted from www.reportbuyer.com

The major exporters of gloves in India taken from the official website Indian exporter

extracted from www.indianexporters.com

The company details, product details, production process details taken from the official

website Primus gloves extracted www.primusgloves.com

Rubber and rubber products details taken from the official website india mart extracted from

www.indiamart.com

The largest exporters of gloves were taken from the official website Ansell Asia pacific

extracted from www.ansellasiapacific.com

The details regarding starting up a unit CSEZ the various exceptions given taken from the

official website of CSEZ extracted from www.csez.org