Labor Effciency

7/30/2019 Labor Effciency

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Project REPORT

On

“LABOUR EFFICIENCY

OF DIFFERENT LINES OF OSRAM Pvt Ltd.”

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTFOR TWO YEAR FULL TIME MASTER OF BUSINESS

ADMINISTRATION (MBA) 2010-2012

Submitted To: Submitted By:

Mrs. KAVITA DAHIYA MONEY BHUGRA

M.B.A FACULTY MBA/10/12

Bhagwaan Mahavir Institute of Engineering and Technology Maharishi Dayanand University, Rohtak



DECLARATION

I MONEY BHUGRA ROLL NO. MBA/10/12 M.B.A 3 rd Sem of BHAGWAN

MAHAVIR INSTITUTE OF ENGINEERING &TECHNOLOGY, SONIPAT

hereby declare that the report entitled on ―LABOUR EFFI CI ENCY ‖ is an original

piece of work & the same has not been submitted to any other institute for the

award of any other Degrees .The Seminar presentation of the report was made on -

& the suggestions given by the faculty members were duly incorporated.

Signature of Project Incharge. Signature of the CandidateMrs. Kavita Dahiya Money BhugraM.B.A Faculty. MBA/10/12

Signature of H.O.D

Mrs. Priyanka Sehgal

Principal, BMIET

( Dr. Y.K. Jain)



ACKNOWLEDGEMENTS

This project report prepared by me is a result of the joint effort of several helping

hands of the personnel department of OSRAM INDIA PVT LTD . The knowledge

of our theoretical studies is absolutely incomplete without its proper

implementation and application in the diversified corporate world of today. I have

been really opportunistic to be a part of the OSRAM INDIA PVT LTD during my

summer training, which is one of the leading business houses in today‘s scenario.

An undertaking of study like this is never an outcome of efforts put in by a single person, rather it bears imprint of number of persons who directly or indirectly

helped me in completing the study.

At the outset I would like to extend my sincere gratitude to M RS. KAVI TA

DAH I TA (F aculty, M BA Deptt.) for providing the opportunity to carry out the

research & for providing guidance during the preparation of the report whenever needed.

(Money Bhugra)



PREFACE

Labour is one of the most important cost components in a manufacturing concern.

It directly attributes to the cost of the product. Hence, the efficiency of the labour

directly contributes to the manufacturing cost. Higher is the efficiency lower is the

product cost and vice versa.

There are two types of work force mainly:

Direct labour: This is also called the variable labour and hence constitutes the

variable cost of the product and directly proportional to the volume which is also

the subject matter of this project.

Indirect Labour: This does not vary proportionately to the volume and not

directly involved in the production.



CONTENTS OF THE STUDY

CHAPTER NO. PARTICULARS PAGE NO.

a. Company Certificateb. Declaration

c. Acknowledgements

d. Preface

Chapter 1 Introduction to the project

Significance of study

Objectives of study

Review of existing literature

Focus of study

Conceptualization

Chapter 2 Introduction to company

Chapter 3 Research methodology

Chapter 4 Introduction to the Topic

Chapter 5 Factors to increase labor efficiency

Chapter 6 Individual differences at Work Place

Chapter 7 Data analysis and interpretation

Chapter8 Findings of the study

Chapter 9 Limitations of the study

Chapter 10 ConclusionChapter 11 RecommendationsChapter 12 Annexure

Chapter 13 Bibliography



Chapter - 1

INTRODUCTION



SIGNIFICANCE OF THE PROJECT

Any activity without any use is wastage of efforts, money & above all the time. So

if there is no advantage of doing any particular activity, that activity is worth not to

be done. Following are the main advantages of this work undertaken by me & the

benefits to the organization, which has been approached for this work:

As this is the first research work undertaken by me, this research work has

been particularly helpful for me in the manner that this exercise made me

feel the practical aspects of organizational research instead of just providinga theoretical exposure to the concepts.

This study will help the organization for promoting different courses for

different sections of employees according to their needs.

The organization itself can take this project as a document that can help

them in implementation of various plans & policies in a more efficient &

effective manner.



OBJECTIVE OF THE STUDY

The project entitled Labour Efficiency which was undertaken at Osram India

Pvt. Ltd ., Sonepat , is related to the efficiency of labour in each and every line of the company. The main objective of the study is: -

To analyze the efficiency of labour.

To know the actual output per hour for different lines of Osram India Pvt.

Ltd.

To assist management to compute the actual labour cost per lamp

To reveal the trend of costs of labour over a period of time in order to assist

management to optimize the labour cost.



REVIEW OF EXISTING LITERATURE

To research any problem, it is necessary to review the existing literature. Variousstudies relating to different aspects of LABOUR EFFICIENCY have been

conducted in the past. A brief review of some of the major studies in recent years is

given below.

SOURCE 1

Un ion membership f all s as str ikes rise Sapa | 10 August, 2011 10:07

Membership of trade unions has declined although the number of work days lost to

strikes has increased, according to the latest Adcorp Employment

Index.Membership of South African trade unions had declined from 4.3 million in

2000 to 3.2 million in 2010, said Loane Sharp, Adcorp's labour market analyst, in a

statement.This trend was "out of sync" with the surge in strikes and work stoppages reported so far this year.In 2010, South Africa lost 14.6 million strike-

induced work days.This year, this figure would increase by 22 percent to 17.8

million, Sharp said.

SOURCE 2:

The coming world of smaller banksBy Frank Partnoy, Dated: August 10, 2011

Typically, job cuts are good for shareholders because they reduce labour costs and

improve efficiency. But these lay-offs have set off a labour-capital death spiral:



they are bad for employees but are proving even worse for shareholders, and the

declines in the share prices of banks are putting yet more pressure on employees

and will probably lead to more lay-offs. And so on, and so on.



FOCUS OF THE STUDY

It became quite difficult rather impossible to make judgment about the position of

any business by way of analyzing the Actual Production per Hour of 3weeks. The present study covers a period from 21 st may-10 th June. A large period may prove

inconvenient while a short period would not give desired result.



CONCEPTUALISATION

The concept of evaluating the workers in OSRAM INDIA PRIVATE LIMITED .

is to know about the superior — worker interpersonal behavior so that it is known

that why the LABOUR EFFICIENCY among workers is negative and what kind

of changes should be brought so that the worker — superior behavior is

strengthened to the extent so that everyone can work in a tension free environment.



Chapter- 2

Introduction Of The

Company



INTRODUCTION TO COMPANY

OSRAM India Pvt. Ltd. Sonepat

The plant of OSRAM India Pvt. Ltd. Sonepat was established by Birla Group of

company as ECE Industries Sonipat in the year 1973 in collaboration with M/s

Tungsram, Hungary. It is situated 45 km from Delhi, in industries-oriented

environment of Sonepat (Haryana).

In Oct.1998, ECE Industries Ltd. Sonepat was taken over by OSRAM India

Pvt. Limited a wholly owned subsidiary of OSRAM GmbH. OSRAM India Pvt.

Ltd. having its registered at New Delhi, was Primarily formed for sales and

marketing operations in India. The company has got three regional offices at

Bombay, Calcutta and Banglore in addition to 14 other distribution centers. The

total turnover of OSRAM India pvt. Ltd. Were worth Rs.42 crore in acquisition,

innovation and expansion has been regular feature of this plant. Currently a high

speed CFL manufacturer line and slim tube manufacture line have been brought

from (Germany). With this new induction, total investment at this to approximately

Rs.100 crore.



OSRAM India Pvt. Ltd. has Government's approval for manufacturing and

trading of the following lamps :-

Metal Halide and High Intensity discharge lamps.

Tri phosphor and energy efficient fluorescent tubes.

automotive Halogen and Discharge lamps.

Photo-Optic lamps for films, TV, Theatre, etc.

Other high technology, innovation lamps for Medical, Germicidal,UV lamps.

Incandescent Lamps.

Note: all figures are fictitious.



ENVIRONMENT, HEALTH SAFETY & SOCIAL POLICY

To ensure health & safety of its employees, prevent pollution and protect the

environment by complying with relevant legal requirement.

Prevent behavior which is integral to the quality policy shall be the guiding

principle for implementation.

To conserve natural resources by optimum utilization minimization wastage

of Raw Material, water energy & other associated factors affecting the

Environment.

This policy shall be deployed at all level of the orgn. and interested parties

through awareness / training about EHS aspect and hazards and motivate

them for active participation.

The management shall review EHS performance at regular interval for

continual improvement.



OUR VISION

The expectations and targets of company are reflected in its policy and Continuous

efforts for expanding its share in the market. The OSRAM India Vision 2010

Proves to be the statement of its goals and would shape its future in India. The

highlights of OSRAM India.

Vision 2010 are

OSRAM No.2 in lamps business in India.

OSRAM India sales over INR 3 billion. OSRAM India leader in CFL, FO

and ECG.

OSRAM the most respected brand name in the country.

OSRAM products available in all parts of India.

Cost leadership in halogen, T8 Luminous, CFL,NAV Super and HQI.

OUR MISSION

Better Technology

Better Quality

Better Tomorrow



OUR VALUES

Customer Satisfaction.

Commitment to Total Quality.

Cost and Time consciousness.

Innovation and Creativity

Trust and Team Spirit.

Respect for Individual Integrity.



COMPANY PROFILE

OSRAM GmbH is one of the three leading lamp manufacturers in the word with

it‘s headquarter at Munich (Germany). It is a company working with strong

international outlook, competent & farsighted management, and team spirit

working, among 3000 employees throughout the world.

The worldwide sales for the year 2007-09 amounts to approximately 16,000

crore of Rupees. Of this huge amount, 88% was earned outside Germany,

which emphasizes the company‘s strong international existence.

Today OSRAM is 90 years young the history of this world present giant

can be traced back to year 1919 , when three companies - AEG, Siemens &

Halske AG, and Duetsche Gasgluhlicht (Auer Gasellschaft)-pooled their

resources for producing filament lamps.



Today, Siemens AG is the sole stakeholder in OSRAM GmbH. The OSRAM

trademark was registered back in 1906, making it one of the oldest internationally

recognized trade names. The name 'OSRAM' had been derived from

"OS MIUM" and "WOLF RAM " the two German words for metals required for manufacturing the filaments.

The division with largest turnover is general Lighting. Innovation products as

halogen lamps, compact fluorescent lamps, and metal halide lamps continue to

show healthy growth. OSRAM is today world's largest manufacturer of

automotive lamps. It has also an excellent position in the field of photo optic

lamps. Company has a considerable market share in electronic control gear

sector by offering systems that integrate lamps with an electronic ballast.

As an ISO – 9002 certified company, OSRAM has got 51production facilities

in 18 countries, catering the needs of customers in 146 countries. The

company was awarded the technical Oscar in march 1988 by the academy of

motion picture arts and science for the invention and continuous improvement in

HMI lamps for the professional motion pictures. Currently, company is spending

4%of its turnover R&D activities. It is at top in Europe and second largest lamp

producer in North America (as OSRAM SYLVANIA).



In addition to Europe and North America, Asia is one of the most important

growth center for OSRAM's innovation products. Specially, in 1994 Indian

subcontinent become a potential market for energy efficient lighting products. So,

due to strong urge to explore the market here, OSRAM GmbH set up OSRAMIndia Pvt. Ltd. In 1994 for sales & marketing operations. The company has

100% foreign equity.



HISTORY

The history of OSRAM is bound up closely with the rapid development of lighting

engineering. It was this company that in 1919 under one roof the scientificexpertise and decades-long experience of the top three lamp producers in

Germany. Only 1, 1919 a limited partnership, OSRAM GmbH, was called into

existence in Berlin by the manager of Allgemeine Elektricitats -

Gesellschaft , Deutsche Gasgluhlicht - Aktiengesellschaft ( Auergesellschaft ),

and the electric lamp production facilities of Sieman & Halske.

The Auergesellschafthad already in 1906 Registered the name OSRAM with

the Imperial Patent Office as the official trademark forits incandescent and arc

lamps. 1906 was thus the birth date of a trade name that was destined to win

world renown : OSRAM. The origin of the OSRAM name came about thus :

OS - (OS)MIUM which is a lamp making metal.

The history of electric light and the history of OSRAM are inextricably

intertwined. Again and again , new developments from OSRAM have

changed the way we live.

As early as 1925, for example, OSRAM made night time driving much safer

with the development of the first twin filament headlight lamp worth high and

low beams. These BILUX lamps became famous throughout the world. From

filaments to fluorescents - In 1936, OSRAM launched the first fluorescent lamp.Its economical light revolutionized artificial lighting in offices, shops, factories and

public buildings.



Halogen light, a brilliant idea - By including halogens in the filler gas,

lighting specialists as OSRAM set the incandescent lamp on a completely new

course in 1960.

OSRAM has made constant improvements to the range. We have been able; for

example to reduce the tube diameter of fluorescent lamps from 38 mm to 26 mm

and less, which saves glass and fluorescent material and at the same time

increases luminous efficacy.



INNOVATIONS

About 4% of turnover is being spent every year on research &

development. OSRAM is an innovative company. Around 30% of the

lamp sale achieved with products, which are less than 5 years old.

EMPLOYEES

As of Sept. 30, 2009, the OSRAM company world wide employed about

36,800 people. In Germany 10000 people were employed & outside

Germany 25,800, which is 70% of the employees worldwide



WORLD WIDE SALES BY MARKET

In fiscal year 2009/2010 the world wide sales were DM 6.3 billion , up 12% on

the previous year . OSRAM is one of the three leading manufacturer in the

world.

The company's strong international focus is reflected by the fact that 88% of sales

were generated outside of Germany. Nearly half of OSRAM's global sales are

made in North America, where OSRAM SYLVANIA is the region's second

largest lamp producer . In Europe OSRAM is also the market's second largestsupplier. In Germany OSRAM is the market leader.

Emphasis is also being placed on Latin America as well as on East & South East

Asia. OSRAM has 51 manufacturing units in 18 countries with most of the

production is being realized in the North America & Germany. Similar good

growth in the sales has been marked by the OSRAM INDIA Pvt. Ltd . The

graph depicting the growth of the company has been displayed below.



OSCAR FROM OSRAM

OSRAM was awarded the technical OSCAR in March 1998 by the

ACADEMY OF MOTION PICTURE ARTS & SCIENCE for the invention

& continuous improvement of H.M.I. lamps for professional motion

pictures.



DESCRIPTION OF PRODUCT

Product Offerings From OSRAM India

The range of products which osram has to offer can be broadly classified

in to four groups:-

GROUPS DESCRIPTION

AB General automotive lamps

AM Automotive lamps



FQ Photo optic lamps

PL Ballats* and luminanes

*In India BL will most probably be electonics ballasts.

The main area of concentration so far has been on AB ( general lighting )and on

FO (photo optics). The entire range of product brochures specifyingdesign feature

are available at osram offices in India.

3.) Osram India Pvt. Ltd. has taken over lamp division of ECE industries limited

satiated at Sonepat ( Haryana ) on Oct 1998. Osram India Pvt. Limited is now

owner of the factory. Here different luminary products are manufactured in the

following plants :-

1. GLASS PLANT.

2. LAMP PLANT.

3. COIL PLANT.

4. GLS PLANT.



PRODUCT OF GLASS PLANT :-

1. glass shells 60 mm round 60 mm mushroom

60 mm elliptical 60 mm egg type

45 mm round 75 mm elliptical

80 mm round 90 mm mushroom

110 mm round

2. tubular shells 36.2 mm to 38 mm diameter.



PRODUCT OF LAMP PLANT:-

fluorescent tubes 02feet

04 feet

PRODUCT OF COIL PLANT :-

filament and lead in wire

Now total production of fluorescent of fluorescent tubes is about 900000

tubes per month and different kinds of GLS production is about 3100000

bulbs per month. we have renovation plans for improvement in production

and quality of these two products.

PRODUCTS OF GLS PLANT :-

BC, CC, GLS 25W, 100W (230 volts)

BC,SC,GLS,MW 150W, 200W (250 volts)

ES,SC,GLS,HW 300W, 500W (250 volts)



Chapter – 3

RESEARCHMETHODOLOGY



RESEARCH METHODOLOGY

RESEARCH

“ RESEARCH IS SEARCH FOR KNOWLEDGE”

OR

“RESEARCH IS SYSTEMATIC EFFORTS TO GAIN KNOWLEDGE.”

RESEARCH DESIGN

―A RESEARCH DESIGN IS THE FRAMEWORK OR PLAN FOR A STUDY

WHICH IS USED AS A GUIDE IN COLLECTING AND ANALYZING THE

DATA COLLECTED.‖

It is the blue print that is followed in completing the study. The basic objective of

research cannot be attained without a proper research design. It specifies the

methods and procedures for acquiring the information needed to conduct the

research effectively. It is the overall operational pattern of the project that

stipulates what information needs to be collected, from which sources and by what

methods.



TYPES OF RESEARCH DESIGN

Research design can be classified into following types:-

Descriptive research design

Exploratory research design

Experimental research design

In this project I have used exploratory research design because it describes new

ideas and events.

TYPE OF DATA COLLECTION

There are two types of data used. They are primary and secondary data. Primary

data is defined as data that is collected from original sources for a specific purpose.

Secondary data is data collected from indirect sources.

PRIMARY SOURCES

These include the survey or questionnaire method. I used telephonic interview as

well as the personal interview methods of data collection.

SECONDARY SOURCES

These include books, the internet, company brochures, product brochures, the

company website, competitor‘s websites etc, newspaper articles etc.

In this project I have used internet, company brochures, product

brochures, and the company website as a secondary source.



Chapter - 4

Introduction Of The

Topic



Product Catalogue

OSRAM

IndiaPvt.Ltd.

Lamp for generating

HID Lamp

SpecialLamp

AutomaticLamp

HalogenLamp

FluoresenyLamp Induction

Lamp

CFL

Luminaries

LED-Modules



Product offerings from OSRAM India

OSRAM India are in a position to supply all products listed in the E-Cataloguewith major focus on:

Incandescent GLS Lamps both in screw type E 27 and B22d caps

Low Voltage and Mains Voltage Halogen Lamps

A wide variety of Fluorescent Lamps including the latest generation of Tri-

Phosphor Lumilux Plus Lamps.

The widest range of Compact Fluorescent Lamps, in particular, the retrofitDulux EL which meets the Indian conditions of wide fluctuations in voltage,

high ambient temperature and high humidity.

HID Lamps including high pressure Mercury Vapour Lamps (HQL),

Blended lamps (HWL), High Pressure Sodium Vapour Lamps (NAV), Metal

Halide Lamps (HQI) and other high discharge lamps for special applications.

Widest range of Automotive Lamps for 4 Wheelers, 3 Wheelers and 2

Wheelers.



Incandescent lamps Tungsten halogen lamps

Compact fluorescent lamps

/ Energy saving lamps LED lamps

Fluorescent lamps

High intensity discharge (HID)

lamps

Special lamps

Display and signal lamps and

lamps for traffic light installations

LED systems, Light

Engines and Modules

OLED light design

Automotive lamps

Display/Optic

Control gears

Light management systems

Luminaires

OSRAM Opto Semiconductors:

LED and optical semiconductors

http://catalog.myosram.com/zb2b/osram/catalogentry.do?it_c=GPS_105119

































http://catalog.osram-os.com/



























































































































































































































































































Assembly Process(Spiral)

Basing Machine

Aging Machine

Exhaust Machine

Tipping

Sealing

Mount Machine

Baking

Coating



Assembly Process(Stick Type)

Basing Machine

Aging Machine

Exhaust Machine

Pre-Heater

Fusion Machine

Sealing

Mount Machine

Baking

Coating

Anskofo Machine

Cutting Machine



PRODUCTION

The processes and methods employed to transform tangible inputs (raw materials,

semifinished goods, or subassemblies ) and intangible inputs (ideas, information, knowledge) into goods or services.

The noun product is defined as a "thing produced by labor or effort" or the "result

of an act or a process and stems from the verb produce , from the Latin

prōdūce(re) '(to) lead or bring forth'. Since 1575, the word "product" has referred

to anything produced. Since 1695, the word has referred to "thing or things

produced". The economic or commercial meaning of product was first used by

political economist Adam Smith .

http://www.businessdictionary.com/definition/method.html

http://www.businessdictionary.com/definition/employed.html

http://www.businessdictionary.com/definition/tangible.html

http://www.businessdictionary.com/definition/raw-material.html

http://www.businessdictionary.com/definition/goods.html

http://www.businessdictionary.com/definition/subassembly.html

http://www.businessdictionary.com/definition/intangible.html

http://www.businessdictionary.com/definition/idea.html

http://www.businessdictionary.com/definition/information.html

http://www.businessdictionary.com/definition/knowledge.html

http://www.businessdictionary.com/definition/services.html

http://www.businessdictionary.com/definition/services.html

http://www.businessdictionary.com/definition/knowledge.html

http://www.businessdictionary.com/definition/information.html

http://www.businessdictionary.com/definition/idea.html

http://www.businessdictionary.com/definition/intangible.html

http://www.businessdictionary.com/definition/subassembly.html

http://www.businessdictionary.com/definition/goods.html

http://www.businessdictionary.com/definition/raw-material.html

http://www.businessdictionary.com/definition/tangible.html

http://www.businessdictionary.com/definition/employed.html

http://www.businessdictionary.com/definition/method.html



LABOR EFFICIENCY

LABOR FORCE

The total number of people employed or seeking employment in a country or region is called Labor force or Work force .

EFFICIENCY

A level of performance that describes a process that uses the lowest amount of

inputs to create the greatest amount of outputs. Efficiency relates to the use of all

inputs in producing any given output, including personal time and energy.

LABOR EFFICIENCY VARIANCELabor efficiency variance is calculated by comparing the actual hours worked

with standard hours allowed, both at the standard labor rate. The standard hours

allowed figure is determined by multiplying the number of direct labor hours

established or predetermined to produce during the period for which the variances

are being computed. The units produced are the equivalent units of production for

the labor cost being analyzed. Labor efficiency variance is also known as labor

time variance and labor usage variance.

[Labor efficiency variance = (Actual hours worked × Standard rate) − (Standard hours allowed ×

Standard rate)]



EXAMPLE:-

Assume that 1,880 hours are worked at a rate of $6.50 per hour to produce 530

equivalent units of product. The standard labor rate per hour is $6.00 and standard

time allowed to produce a unit of product is 3 hours.

Required: Calculate direct labor efficiency variance.

Solution:

Time × Rate = Amount Actual hours worked atactual rate 1,880

$6.00standard $11,280

Actual hours worked atstandard rate

1,590 $6.00

standard 9,540

290 $1,740unfav.

The standard hours allowed is the result of multiplying 530 units of product bythree standard hours per unit. The unfavorable labor efficiency variance of $1,740

is due to the use of 290 hours in excess of standard hours allowed.

Rates paid to the workers are usually predictable. Nevertheless, rate variances can

arise through the way labor is used. Skill workers with high hourly rates of pay

may be given duties that require little skill and call for low hourly rates of pay.

This will result in an unfavorable labor rate variance, since the actual hourly rate of pay will exceed the standard rate specified for the particular task. In contrast, a

favorable rate variance would result when workers who are paid at a rate lower

than specified in the standard are assigned to the task. However, the low pay rate

workers may not be as efficient. Finally, overtime work at premium rates can be



reason of an unfavorable labor price variance if the overtime premium is charged

to the labor account.

CAUSES OF UNFAVOURABLE LABOUR EFFICIENCY/USAGE

VARIANCE:-

- Poorly Trained Workers

- Poor Quality Materials

- Faulty Equipment

- Poor Supervision

- Insufficient Demand For Company‘s Product

Who is Responsible for the Labour Efficiency/Usage Variance?

The manager in charge of production is generally considered responsible for labor

efficiency variance.

If customers orders are insufficient to keep the workers busy, the work center manager has two options, either accept an unfavorable labour efficiency variance

or build up inventories. The second option is opposite to the basic principle of just

in time (JIT). Inventories with no immediate prospect of sale is a bad idea

according to just in time approach. Inventories, particularly work in process

inventory leads to high defect rate, obsolete goods, and generally inefficient

operations.



Types of Labour in Osram India Pvt. Ltd.

There are 2 types of direct labour in Osram India Pvt. Ltd.:-

i.) Permanent Labour which is recruited through recruitmentprocess( HR deptt.), basically from ITI or internal training center

ii.) Casual Labour which is recruited on daily basis from three

contracting agencies:-

a) Bhagwati Pvt. Ltd.

b) Surya Packing Pvt. Ltd.

c) Shivam Pvt. Ltd.

Man-day

DirectLabour

Permanent

RecruitmentProcess

Casual

Bhagwati Pvt.Ltd.

Surya PackingPvt. Ltd.

Shivam Pvt.Ltd.



A unit of one day‘s work by one person.

Actual Production Per Hour

The actual number of unit produced by one person in one hour.

Actual production per hour = Total output of a day

Total number of man hours in a day



Chapter – 5

Factors To Increase

The Efficiency Of The

Labour



FACTORS AFFECT LABOUR EFFICIENCY

In order to understand the causation of labour efficiency it is essential to know first

what the term behavior actually means. Different behavioral scientists have defined

behavior differently. Some observations are as follows;

Behavior simply means ―as a response to certain stimuli which is observable

directly and indirectly ―

‗Behavior is observed directly by studying the responses of people to their work environment indirect observation refers to those people describe decision making

processes and attitude verbally.

This is seen that human behavior is caused by certain reasons behavior is the result

of interaction between individual characteristics and the characteristics of the

environment in which behavior occurs.

Personal characteristics remain inside the person whereas environmental once

outside the person. These personal and environmental characteristics secure as

foundation of individual behavior in the efficiency of there work.



THE CAUSES OF HUMAN BEHAVIOR ON THE EFFICIENCY

OF THE WORK

INHERITED CHARACTERISTICS: Some of the characteristics inherited from

birth, may or may not be changed by external environment

1. PHYSICAL CHARACTERISTICS : - relate to height, slim body, and vision

and stamina results in quality, performance in such jobs that require artistic

skills.

2. AGE :- the age may influence the efficiency of labour in a physiological as well

as psychological ways

3. INTELLIGENCE :-Some people are born Intelligent However intelligent can be enhanced with efforts, hard work proper environment and motivation.

4. RELIGION :-It play important role in determining the efficiency. High

religious people have high moral standards. They strive for achievement and

self fulfillment.

LEARNED CHARACTERISTICS: these characteristics involve individuals

attitudes, values and perceptions about the environment in which he/she function.

They are a result of parental values and expectation.

PERCEPTION: - Is a process by which individuals organize and interpret there

sensory impression in order to give meaning to their environment. It refers to the

manner in which a person experiences the world.

PERSONALITY : - It is a set of traits and characteristics, habit patterns and

conditioned responses to certain stimuli that formulate the impression upon others.



It indicates the type of activities, jobs and assignment suitable to a particular

person which will enable him to perform that task effectively.

ATTITUDES : - it may be defined as the way a person fells about something- a person, a place, a commodity, a situation or an idea. It addresses an individual‘s

positive or negative feeling about some object.

VALUES : - values are important in relation to study of organizational behavior.

Because an organization is a composite of attitude, perceptions, personalities and

individual behavior of managers as well as workers. Values determine what is

right and what is wrong. The values behavior pattern.



FACTORS AFFECTING LABOUR EFFICIENCY

ENVIROMENTAL FACTORS

It includes such variables as

ECONOMIC FACTORS - the economic environment is an important

determinant of individual behavior. All work is performed with in economic

framework .the concept of economic environment is a synthesis of several factors

like employment level, wage rate, economic outlook and technological change

rate.People work for money but not only for money. However wages satisfied

various needs of individuals.

POLITICAL FACTORS- the stability of government can affect the employment

opportunities both in quantity and quality. Management structures and

philosophies in controlled societies have a significant impact on decision,

strategies and methods of implementation available to managers. The relative

freedom available can affect carrier choice, job design, motivation methods andfinally individual behavior.

SOCIO-CULTURAL FACTORS : people grow up in a particular society that

shape their basic values, beliefs and behavior. Cultural vary from country to

country and these variation produce different behavior across the country

LEGAL ENVIRONMENT : rules and laws are formalized ad written standards

of behavior both rules and laws is strictly enforced by the legal system .laws relate

to all members of society observing laws voluntarily allow predictability of

individual behavior.



ORGANIZATIONAL FACTORS : the characteristics of an organization are

also affects human behavior.

PHYSICAL FACILITIES : The physical facilities such as ventilation ,proper

lighting , painting on wall, proper space for employee and like that put impact on

employee behavior and performance..Hence physical environment at work place

may be said to be the arrangement of people and thinks in such a manner. So that

they may have a positive impact on the efficiency of the work.

ORGANISATIONAL STRUCTURES AND DESIGNS - It refers to the way in

different departments in organizations are set up and the way in which the

emoting relationship and lines of communication are established among different

departments in the organizations.

QUALITY OF LEADERSHIP -The organizational establish a system of

leadership and supervision to pride direction assistance, advice, training, to

individual members. The behavior of a leader is therefore a potential source of

influence on an individual. In other words the behavior of individual by a large

extent influenced by their leaders.

REWARD SYSTEM :-Organization establishes reward system to compensate the

employees. The behavior of an employee influenced by reward system of anorganization.



Chapter – 6

Individual Differences

At Workplace



INDIVIDUALS DIFFERENCES AT WORKPLACE

INDIVIDUAL DIFFERENCE : it is seen that an individual differs from each

other owing to their varying Characteristics that foam an individual‘s

individuality. All is different .this is a fact supported by science. Each one is

different from others just as each of their finger prints to different as far as we

commonly known.

Co is able to explain usual observations leads all of us to the conclusion that two

people in the same job cannot behave in exactly the same way. People perform

their jobs in different ways

1) Promptness in completing tasks

2) Conscientiousness in doing exactly quality work.

3) If manager wants to employee he has to recognize the overwhelming

Influences that individual‘s differences play.

INDIVIDUALS DIFFERENCES AT WORKPLACE

1) REWARDS -Depending upon different psychological make-ups, people differ

in attaching importance to awards.

2) TYPE OF COMPENSATION PLAN - People also differs in the type of

compensation plan they want. Some may refer to have compensation under the

time wage system, while others may like to prefer piece wage system.3) STYLE OF LEADERSHIP - People may differ in the style of leadership they

want to work under. While some may like to work under autocratic leadership

style, others may be in a democratic style of leadership.



4) STAMINA -People also differ in their stamina to bear with job stress. While

some may prefer to flight stresses.

5) PERSONNEL CHARACTERISTICS - People differ in their personnel

characteristics like age, sex, race, education, abilities etc.

INDIVIDUAL DIFFERENCES AND ORGANIZATION

BEHAVIOR

In organizational behavior, too much emphasis is placed on studying individual

differences .it is not that values, attitudes, personalities and similar personal

characteristics are irrelevant to under standing organizational behavior rather organizations come.

With a host of formal and informal control mechanism that in effect largely

shapes .direct and constraint members‘ behavior that is structure tends to over-ride

interpersonal differences.

Almost organizations have policies, procedures rules and other formal

documentation that limit and shape the behavior. This formal documentation sets

standards of acceptable and unacceptable behavior.

Almost all organizations differentiate roles horizontally, creating unique jobs and

departments. The structure of these jobs allows others to predict behavior in those

roles. Organizations also differentiate roles vertically by creating levels of

management

So, they create boss employee relationship that constrains employee behavior.



When you join an organization, you are expected to adapt its norms of acceptable

behavior. The norms are unwritten rules but, they are powerful and controlling.

An organization may not have a formal dress code but employees are expected to

‗dress appropriately‘ -which mean adapting to the implied dress norms.

Models Of A Man Based On Individual Differences

Study of human behavior in both regarding and necessary for management. It is

doubtful whether the management can perform its function successfully without

having understanding why people behave as they do. It based on individualdifferences; individual differences are classified in to certain models or type.

1) RATIONAL ECONOMIC MAN :-This is based on the doctrine of

maximizing oneself interest. This assumptions are :

Man is able to calculate the cost of his efforts and value of inducement he

receives from his efforts.

Man is able to evaluate the alterations available.

Man is motivated by economic interest.

The organization controls the economic activities.

Organization can be designed to control rational feelings and avoid

unpredictable behavior.

The different types of assumptions a manager makes about people with greatly

determine the actions he takes in motivating and controlling people.



In simple rational economic model people can be induced to produce more by

providing economic incentives. This works very simply, that is people are engage

by the organization for the productive purpose.

It will continue to give them incentives till it receiving matching contribution fromthem.

The economic incentives can work till man is not reasonably satisfied by a need of

money. Though money is such a factor that its need can never be satisfied because

it may purchase many things through which people may satisfy their other needs

within organizational context. The role of money is to maintain the people n the

organization and beyond that is not able to provide incentives to people.

2) SOCIAL MAN :-It is based on the doctrine that man being part of the society,

is influenced by a social forces and seeks satisfaction from social relationships.

Man is motivated by its social needs.

Man is more responsive to group pressure.

He will obey managements order as long as these are in conformity with his

social needs.

Management should organize work in such a way that it provides not

belongingness.

Social man concept is the invention of researchers which behavioral scientist

has carried out from time to time begom hawthorn experiments.



3) ORGANIZATION MAN : - William white who gave this concept believes that

value of loyalty to the organization and co-corporation with fellow workers is

important for man. The social ethics are guides of organization.

The group is a source of creativity. Belongingness is the ultimate need of individual.

Generally organization means emphasis that there is no conflict between

organization and interpersonal. Even if there is any, it can be overcome by

sacrificing the individual interest in favor of organizational interest. Its

implications is that management will design its various actions high will satisfy

the people.

People will not see their interest differently as the organization is to take care of

their interest.

4) SELF ACTUALIZING MAN : - It suggests difference in the way man can

overcome limitations to work .the managers normally take following.

The various needs can be put in hierarchical.

Man moves from immaturity to maturity.

Man is self motivated and self motivated managers try to create normal

Achievement of people to release greater potential for commitment to

Organizational goals

This model is based on the assumptions that are man is self motivated and

controlled.Man works. To satisfy is needs, in a hierarchical orders arranged by Abraham

Maslow physiological needs, safety and security needs social needs, esteem and

status needs and self actualizing needs.



ABILITIES:-

It is an individual capacity to perform the various tasks. In a job, Ability is the

criteria used to determine what a person can do ability directly influences an

employee level of performance and satisfaction. In order to get compatible ability,

the management can do the following:

The management must follow effective selection process. This process will

improve and provide a compatible individual.

A job analysis will provide information about jobs currently being done and

the abilities that individuals need to perform the job adequately. The management ,after analyzing the job , can invite applicants .applicants

can then be tested ,interviewed and evaluated on the degree to which they

possesses the necessary abilities.

Promotion and transfer decisions should reflect the abilities of individuals in

the organizations.

Management must be cheerful in accessing critical abilities that will be

needed in the job.

In order to improve abilities, modifications can be made in the job. However,

three should b no significant impact on jobs basic activities.

Finally man agent has an alternative in the regard. A final alternative is to

provide training to employees. This is applicable to both ne workers and present

workers. Training can keep the abilities of workers current or provide new skills

as times and conditions charge. By all this the efficiency of the workers will

increase.



Chapter - 7

DATA ANALYSISAND

INTERPRETATION



(a) SWOT ANALYSIS

STRENGTHS:-

a) The globally cost competitive b) Adheres to strict quality controls. Has access to latest technology.

c) Provides support to critical infrastructure and metal industries.

WEAKNESSES:-

a) Industry has a lower level of research and development capability.

b) Industry is exposed to cyclical downturns in the automotive lamps. Most

component companies are dependent on global majors for technology

OPPURTUNITIES:-

a) May serve as sourcing hub for lamps globally.

b) Majors significant export opportunities may be realized through diversification

of export basket.

c) Implementation of value added tax vat) in fy2004 will negate the cascading

impact of price.

THREATS:-

a) The presence of large counterfeit components market poses a significant threat.

b) Pressure on prices from gems continues. Imports pose price based competition

in the replacement market. Further marginalization of smaller player‘ s likelyoutlook



(b) PESTE ANALYSIS

POLITICAL ENVIRONMENTThe stability of government can affect the employment opportunities; both in

quantity and quality .politically unstable environment have difficulty and attracting

experience problems in maintaining steady level of employment.

The political ideology of a country affects interpersonal behavior primary through

relative freedoms available to its citizens. Management structures and philosophies

in controlled societies have a significant impact on decisions, strategies, strategies

and methods of implemen tation available to manager‘s .T he relative freedoms can

affect career choice, job design motivation methods and finally efficiency of the

labour.

ECONOMIC ENVIRONMENT

The Economic environment is an important determinantfor the efficiency of the

labour. All work is perform with in economic framework .the concept of economic

environment is a synthesis of several factors, like employment level, wage rates,

economic outlook and technological change.

People work for money but not only for money.however have wages satisfied

various needs of an individual. It is well known that wage attract people to certain

organizations and determine their satisfaction on jobs. Inequality in wages will

have adverse effect on employees



SOCIAL ENVIRONMENT

People grow up in a particular society that shape their basic beliefs, values and

behaviors. Culture varies from country to country and these variation produce

different behaviors across the country .culture vary between two regions with in acountry too and these variations produce different behaviors across the country.

Work ethics, achievement needs, effort reward expectations and values are

important factors having behavioral implications as suggested by Stephens ‘s

p.robbins.it always desirable for organization effectiveness that direct there must

be direct relationship between effort and reward.

TECHNOLOGICAL ENVIRONMENT

It is seen that technological change is included as an economic factor because of

potential effects on individual job opportunities

Technological change has its strongest effect at lower level jobs although

increased automation, computerization and more sophisticated production

technologies can affect individuals at all levels.

LEGAL ENVIRONMENT

Rules and laws are formalized and written standards of behavior. Both rules and

laws are strictly enforced by the legal system .laws relate to all members of

society. Observing laws voluntary allows for predictability of individual behavior

which will give a great impact on the efficiency of the labor.



ACTUAL OUTPUT PER HOUR OF DIFFERENT LINES

LINE OUTPUT MAN-HOURS

OUTPUT/MAN-HOUR

PRODUCTIONLINE-1

300216 6804 44.12

ASSEMBLYLINE-1

410980 9656 42.56

PRODUCTIONLINE-2

368260 4096 89.91

ASSEMBLYLINE-2

373820 17144 21.80

SPIRAL 170978 5496 31.11



Chapter – 8

Findings 0f The Study



FINDINGS OF THE STUDY

Most of the workers have a friendly relationship with their superior as well

as their colleagues; this in turn depicts the open communication available in

organization.

Most of the workers are often guided by their supervisors in their sphere of

work and agree that they understand their work pressures and problems and

try to solve them if it is within their reach.

Most of the workers feel that unbalanced interpersonal relations affect the

efficiency level of employees mainly due to stress which is mainly caused because of individual and organizational related factors.

The negative behavior of workers is mainly due to psychological and

behavioral problems although they get full co-operation and unbiased

attention from their superior in their work place.

Group cohesiveness prevails among different groups in org. mainly due to

competition.

No superior is afraid to express any kind of views about the worker to him.

To some extent, the management is concerned about maintaining good

relations with trade unions.



Chapter –

9LIMITATIONS OF

THE STUDY



LIMITATIONS

I had put my best effort in gathering the data and i have tried my level best that the

data provided and the survey done are authentic as they could be, but there aresome limitations, which are mentioned below :

The study period is limited, the researcher has to collect the necessary and

important information within the limited period of time and it is not possible to

collect it, due to lack to time.

Some consumers give half-hearted response or false information, which may

lead to wrong conclusion.

It is not possible to carry out the detailed survey due to limited finance.

The crew members were hesitates to speak freely as they feared the

information‘s to leak in the head office.



Chapter – 10Conclusion



CONCLUSIONS

Labour efficiency of Production Line-1 is 44.12 per hour.

Labour efficiency of Assembly Line-1 is 42.56 per hour.

Labour efficiency Of Production Line-2 is 89.91 per hour.

Labour efficiency of Assembly Line-2 is 21.80 per hour.

Labour efficiency Of Production of Spiral is 31.11 per hour.



Chapter – 11

RECOMMENDATIONS



RECOMMENDATIONS

On the basis of my findings and conclusion my suggestions to the company are:

To know why 20% employees are not satisfied with their superiors and try to

solve their problems.

Equal opportunities are given to all to express their feelings in the meetings.

To realize the employees who are working at godowns that they also haveFreedom to take initiative in regard to change in procedure.

Give more importance to the hr department as it plays a key role in an

Organization.

Mostly recruitments are internally, but there should be external recruitments so

that company get more benefitted.



Chapter – 12ANNEXURE



Chapter – 13

BIBLIOGRAPHY



BIBLIOGRAPHY

S.No. Title Author Publication

1 Financial Management Khan & Jain Tata McGraw Hill

2 Mgt. Accounting & R. K. Mittal V.K. Publication

Financial Mgt.

3 Management Accounting R.K. Sharma Kalyani Publication(Principles & Practices) S.K. Gupta

4 Research Methodology C. R. Kothari Wishwa Prakashan

5 Personal Discussion with the executives & other staff member of

F&A Dept. of the Company.

Newspaper and magazines:

Websites:

www.osram.com

www.google.com

Documents

Labor Effciency