Introduction of HRM:

Human resource management is an approach to the management of people,

based on four fundamental principles. First, human resources are the most important

assets an organization has and their effective management is the key to its success.

Second, this success is most likely to be achieved if the personnel policies and

procedures of the enterprise are closely linked with, and make a major contribution to,

the achievement of corporate objectives and strategic plans. Third, the corporate

culture and the values organizational values may need to be changed or reinforced,

and that continuous effort, standing from the top, will be required to get them

accepted and acted upon. Finally, HRM is concerned with integration – getting all the

members of the organization involved and working together with a sense of common

purpose.

HRM is a strategic approach to the acquisition, motivation, development and

management of the organizations human resources. It is specialized field that attempts

to develop programs, policies and activities to promote the satisfaction of the both

individual and organizational needs, goals and objectives. HRM is proactive rather

reactive, i.e., always looking forward to what needs to be done and then doing it,

rather than waiting to be told what to do about recruiting, paying, or training people or

dealing with the employee relations problems as they arise. The techniques for the

application of HRM will include many familiar functions of personnel managers, such

as manpower planning, selection, performance appraisal, salary administration,

training and management development. This HRM is production model approach to

personnel management. The HRM model is characterized as being employee-oriented

with an emphasis on the maximization of individual skills and motivation through

consultation with the workforce so as to produce high levels of commitment to

company strategic goals. Any organization whether a business organization or an

industrial enterprise needs four important resources i.e., Money, Material, Men, &

Machine not only for its growth and future development but also even for its

continuance and survival. Since Management is getting things done through the

efforts of these people, manpower management has also become a difficult task in fact

without the productive efforts of human being, materials, and resources would be of

no use. It even controls the application of other resources. For the efficient use of all

1

the resources, the employment of a suitable human force is essential. Human

resources management is concerned with this aspect of the essential.

Recruitment & Selection:

Recruitment:

In the words of Edwin & Fillipo. “Recruitment is the process of searching for

prospective employees and stimulating them to apply for jobs in the organization”.

According to this definition recruitment is a prospecting job where

organizations make searching for prospective employees but in practice prospective

employees for also seek out organizations like organizations seek out prospective

employees. Therefore, the job of dependent on timing otherwise, recruitment will not

be successful. Recruitment represents the first contact that a company makes with

potential employees.

Selection:

Selection is the process of picking individuals (out of the pool of job

applicants) with requisite qualifications and competence to fill jobs in the

organization. Recruitment and selection are the two crucial steps in the HR process

and are often used interchangeable. There is, however, a fine distinction between the

two steps. While recruitments refer to the process of identifying and encouraging

prospective employees to apply for jobs, selection is concerned with picking the right

candidates from a pool of applications. Selection, on the other hand, is negative in its

application in as much as it seeks to eliminate as many unqualified applicants as

possible in order to identify the right candidates. As stated in the previous chapter, the

term recruitment is widely used to refer to the whole process of employee hiring.

Need for the study

In today's rapidly changing business environment, organizations have to

respond quickly to requirements for people. Hence, it is important to have a well-

defined recruitment policy in place, which can be executed effectively to get the best

fits for the vacant positions. Selecting the wrong candidate or rejecting the right

2

candidate could turn out to be costly mistakes for the organization. Selection is one area

where the interference of external factors is minimal. Hence the HR department can use

its discretion in framing its selection policy and using various selection tools for the

best results. This case discusses the importance of having an effective recruitment and

selection policy. It discusses the  reason behind selecting this topic consists of a good

selection process that starts with gathering complete information about the applicant

from his application form and ends with inducting the candidate into the organization.

It is important to have an effective recruitment and selection policy in an

organization, because of the recent trends that have influenced the process of

recruitment and selection in an organization, various challenges faced by organizations

in the process of recruiting and selecting employees. Better recruitment & selection

strategies result in improved organizational outcomes. The more effectively

organizations recruit and select candidates, the more likely they are to hire & retain

satisfied employees. Recruitment is the process of seeking people to apply for a vacant

position in an organization and selection is choosing the most suitable person for the

job.

Significance of the Study:

Personal management is an art of recruiting selection and placement in any

organization. If human resource planning, procedure is not proper in any organization

that will lead to unqualified staff, excess staff or lack of staff.

The research have made an attempt to study the various categories of the

employees to know their problem in the organization, so that researcher‘s intervention

may be more meaningful. The study done by the research may help for further

research and learning process.

Scope of the Study:

The study covers follow the study on issues like

Interview panel,

Salary levels of the employees,

Sources of recruitment and selection,

3

Main sources of recruitment verification,

Using problem solving techniques

Trade unions influence in recruitment and selection and

Issues relating to training after the selection process which also have impact

on the overall satisfaction and performance of the employee. The study is

conducted only on employees of KDMPMACU ltd., Vijayawada, which forms

the universe of this study.

Objectives of the study:

The objectives of the study are to examine the Recruitment and Selection in

Krishna District Milk Producers Mutually Aided Cooperative Union Ltd. With

specific emphasis on the following:

• Identify the major stages in the recruitment and selection process

• Determine which recruitment & selection practices affect organizational

outcomes

• Evaluate the job description and person specification

• Determine present and future requirements of the organization in conjunction

with its personnel planning and job analysis activities.

• To give Suitable suggestions based on this study.

Research Methodology:

Following data is collected from the various sources like Primary Data and

Secondary data.

Sources of Data:

1. Primary Data is collected by discussions and interviews with the

executives of the Union and the researcher has collected the data and

the opinions of Employees about the Training and Development.

4

2. Secondary Data is mainly collected from the annual reports of the

Krishna Milk union and Websites of the company.

3. Sample size – The sample Size is restricted to 100 employees.

Limitations of the Study:

The study was completed in a span of 4 weeks. Based on the objective of the

study, great care was taken in the collection of data throughout the study.

The following are some to the limitations during the study:

The limited time it is not possible to collect the full information about the

organization.

Sample size is only 100.

The study is being conducted only in the Krishna district milk union and city.

In-Depth analysis was not made due to limited availability of time.

The selected sample may or may not represent the entire work force.

5

INDUSTRY PROFILE

Industry Scenario:

India with 57m cows and 39 buffaloes has the largest population of cattle in the

world. Milk production gives employment to 70m dairy farmers. In terms of the total

production, India ranks 2nd to USA with a production of 71m tons in 1997-98. Milk

production is expected to cross 74m tons in 1998-99, making India the no 1 milk

producing nations in the world. Although milk producing has grown at a fast pace

during the last three decades, milk yield per animals is very low in India at around

1.5lt per day. The main reason for the yield is; lack of use of scientific practices in

mulching inadequate availability of fodder in all seasons, unavailability of veterinary

health service.  

Operation flood:

 The transition of the Indian milk industry from a situation of net import to that of

surplus has been led by the efforts of national dairy development board operation

flood programmed under the aegis of the former chairman of the board Dr. kurien. 

       Launched in 1970, operation flood has led to the modernization of  Indian dairy

sector and created a strong network distribution of milk has increased from 132GM

per day in 1950 to over 220gm per day in 1998. The main thrust of operation flood

was to organize dairy co-operatives in the milk-shed areas of the village, and to link

them to the four metro cities which are the main markets foe milk.  The efforts

undertaken by NDDB have not only led to enhanced production improvement in

methods of processing and developing of a strong marketing network, but have also

led to the emergence of dairying as an important sources of the employment and

income generation in the rural areas, it has also led to an improvement in yields,

longer locations periods, shorter calving intervals etc., through the use of modern

breeding techniques. Established of milk collection centers and chilling centers has

enhanced life of raw milk enabled minimization of wastage due to spoilage of milk.

Operation of flood has been of one the world’s largest dairy developing programmed

and looking at the success achieved on India by adopting the co-operative route a few

other countries have also replicated the model of India’s white revolution.  

6

       Market size for milk sold in loose /package form is estimated to be 33m tons

valued at Rs429bn. The market is currently growing at round 4.5% pa in volume

terms. It is one of the single largest segments amongst food products. 

Milk production is largely concentrated in few states namely Uttar Pradesh,

Gujarat, Punjab, Rajasthan, & Haryana. Milk production grew by a mere pa between

1947 and 1970. Since the yearly 1970’s under operation flood, production growth

increase significantly averaging over 5%pa. About 75% of milk is consumed at the

house hold level which is not a part of commercial dairy industry; milk demand in

four large metros is estimated to be 6m liters per day about 40% of which is supplied

by 10 public sectors/co-operative dairy plants. The bulk of remainders are supplied by

the traditional unorganized sector. Loose milk has a larger market in India as it is

perceived to be fresh by most consumers. In reality however, it opposes a higher risk

of adulteration and contamination.

Operation flood achievement:

State/UT No.  of  DCS

Organized

(cumulative)

Farmer

members

(000)

Women

members

(000)

Milk

procurement

(TKGPD)

Milk

Marketing

(TLPD)

Andhra

Pradesh

4,647 779 144 1087 1130

Asam 66 3 0 3 7

Bihar 5,183 265 39 553 303

Chhattisgarh 526 25 6 26 31

Delhi NA NA NA NA 2353

Goa 175 175 19 3 31

Gujarat 12,025 2458 633 6441 2353

Haryana 5,382 261 38 405 278

Himachal

Pradesh

391 20 7 25 20

Jammu &

kashmir

** ** ** ** **

Jharkhand 80 2 0 6 191

7

Karnataka 10,114 1838 527 2961 1711

Kerala 3,282 750 132 764 848

Madhya

Pradesh

5,008 246 37 457 315

Maharashtra 19,537 1637 398 2802 2749

Nagaland 78 3 0 4 4

Orissa 2,164 142 60 203 158

Pondicherry 104 36 16 57 70

Punjab 6,749 405 50 784 526

Rajasthan 12,714 594 152 1,557 1,014

Sikkim 209 7 0 8 8

Tamilnadu 7,832 1,876 639 2,085 1,507

Tripura 84 4 1 3 9

Uttar

Pradesh

18,776 861 246 828 430

West Bengal 2,449 185 65 336 706

All India 1,17,575 12,416 3,194 21,447 16,808

Dairy co-operative progress on key parameters during 2006-2007 

Marketing size and growth:

       Market size for milk (sold in loose/package form) is estimated to be 33m tons

valued at Rs.429bn. the market is currently growing at round 4.5% pa in volume

terms. It is one of the single segments amongst food products. Milk production is

largely concentrated in few states namely Uttra Pradesh, Punjab, Gujarat, Rajasthan.

And Haryana, milk production grew by a mere 1% between 1947 and 1970. Since the

early 70’s under operation flood, production growth increased significantly averaging

over 5%.About 75% of milk is consumed at the household level which is not a part of

commercial dairy industry. Milk demand in four large metros is estimated to be 6m

it’s per day, about 40% of which is supplied by the traditional unorganized sector.

Loose milk has a larger market in India as it is perceived to be fresh by most

consumers. In reality however, it poses a higher risk of adulteration and

contamination.  

8

Major players:

The packed segment milk segment is dominated by the dairy co-operative milk

marketing federation (GCMF) is the largest player. All other local dairy co-operatives

have their local brands (for e.g. Gokal, warana in Maharashtra, saras in Rajasthan, verka

in Punjab, Vijaya in Andhra Pradesh, Aavin in tamilnadu etc.,) am rut industries, once a

leading player in the sector has turned bankrupt and is facing liquidation. The dairy

industry was deli censed in 1991 with a view to encourage private investment and flow of

capital and new technology in the segment. Although licensing attracted large number of

player, concerns on issues like excess capacity, sale of contaminated/substandard quality

of milk products etc. induced the government to promulgate the MMPO (milk products

order) in 1992. MMPO prescribes state registration to plants producing between 10000 to

75000 liters of milk per day or more that 3750 tons per year on milk solids have to be

registered with the central government. The stringent regulations, government controls

and licensing requirements for new capacities have restricted large Indian and minelayers

from making significant investment in this product category. Most of the private sector

players have restricted themselves to manufacture of value added milk products like baby

food, dairy whiteners, condensed milk etc. 

Indian world’ largest milk producers:

       India has become the world’s no.1 milk producing country, with output in 1999-

2000 (marketing year ending March 2000) forecasting at 78 million tones. United

States, where the milk production is anticipated to grow only marginally at 71 million

tones, occupied the top in the year 1997. India’s milk production was on par with the

U.S. at 557 million tones would continue the study progress in milk production in the

growth pattern has been attributed to a sustained expansion in domestic demand

although per capital consumption is modest at 70kg of milk equivalent.  

  Annual milk production has trebled:

9

       India’s annual milk production has more than trebled in the last 30 years, rising

from 21 million tons in 1968 to an anticipated 80 million tons in 2001. This raped

growth and modernization is largely credited to the contribution of dairy co-operation,

under the operation flood (of) project assisted by many multilateral agencies including

the European. Union the world bank, FAO a WEP (world food program). In the

Indian context of poverty and malnutrition. Milk has a special role to play for its

many nutritional advantages as well as providing supplementary income some 70

million farmers in over 500.000 remote villages. 

  World’s Top Milk Producers:

Countries 1998 1997 1996

Indian 74 71 6

United states 71 71 70

Russian federation 33 34 36

Pakistan 22 21 20

Brazil 22 21 19

Ukraine 14 15 16

Poland 12 12 11

New Zealand 12 11 10

Aistrelia 10 9 9

Ec 125 15 125

World (include others) 557 549 542

Source: as for the website.www.vijayadairy.com. 

Indian diary industry:

      Indians modern dairy sector has expanded rapidly. From an insignificant 200,000

liters per day (1pd) of milk being processed in 1951, the organized sector is presently

handling some 20 million 1pd in over 400diary plants. Already, one of the world’s

largest liquid milk plants is located in Delhi, handling over 800000 liters of milk per

day (Mother dairy, Delhi). India’s first automated dairy (capacity: 1 million 1pd)-

mother dairy, Gandhi agar- has been established at Gandhi nagar near Ahmadabad,

10

Gujarat, in western India. India is owned by India’s biggest diary co-operative group,

Gujarat co-operative milk marketing federation (FCMMF) in and, within annual

turnover in excess of Rs.3 billion capacity of 1.5 million 1pd has also been

commissioned. India’s first vertical dairy (capacity: 400,0001pd), owned by the

Pradesh cooperative dairy federation (PCDF) has been commissioned at Noida,

outside Delhi. 

Objectives of Indian Dairy Corporation:

To promote dairy industry in the country.

To assist the state government and other organization including co-operation

societies interested in the promotion of provide a package a of technical inputs

for enhancement of milk products.

To assist in expanding the capacity and operations of existing dairies in big

cities and rural areas.

To assist in development of allied industry required to meet the needs of dairy

development.

The winning edge:

      A vast market or dairy products is being built as disposable incomes increase. It is

focus is the increasingly affluent middle class, numbering some 300 million almost

the population f the united states- which is confined to well- defined urban pocket and

is easily accessible. Milk occupies pride of place as the most coveted food in the

Indian diet, after wheat ad rice, milk-based sweets are a culinary delight in all homes

throughout the year.

       The milk production is pre-dominantly rooted in the co-operative system. Its

focus is on the small rural farm having one or two cows/buffaloes, yielding 2-3 liters

of milk per animal. This system is the basis of operational flood, the world’s largest

dairy development program. The preferred dairy animal is the buffalo. Some 65

percent of the world buffalo milk is produced in India. It has30 percent higher total

solids compared to cow milk – an average of 16%vs .12% for cow milk. Valued for

its high fat content (7% vs3.5%), it is also high in calcium, phosphorus, lactose ad

11

proteins, buffalo milk is the delight of the milk processor for its more profitable

handling. 

Export potential:

       India has the potential to become one of the leading players in milk product

exports. Location advantages India is located admit major milk deficit countries in

Asia and Africa. Major importers of milk and milk and milk products are Bangladesh,

china, Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman

and other gulf countries, all located close to India. Low cost production: milk

production is scale insensitive and labor intensive. Due to own labor cost, cost of

production of milk is significantly lower in India. 

Concerns in export competitiveness are:

Quality: significant investment has to be mad in milk procurement, equipments,

chilling an refrigeration facilities. Also, training has to be important to improve the

quality to bring it up to international standards. 

Productivity: To nave an exportable surplus in the long-term and also to maintain

cost competitiveness, it is imperative to improve productivity of Indian cattle. There is

a vast market for the export of traditional milk products such as ghee, shrikhand and

other ethnic sweets to the large number of Indians scattered all over the world.

SWOTANALYSIS:

Strengths:

High level of productions and global standings in most of the agro products.

High level of employment generations both direct and indirect.

High level of skill development through various institutes for agriculture

production and technology management.

Lower level of production costs even with poor productivity and yields due to

lower overheads.

Indian dairy farmers are very cost effective even after working in a very low

subsidized environment irrespective of their European counterparts.

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Cheap labor force.

Higher customer.

Weakness:

Poor productivity and yield.

Poor quality management at the production levels.

Not much of technology penetration in the rural hinterland.

Existence of any processing facilities at the farm level like food parks etc.

Poor quality orientation and consciousness at the farm level.

Higher costs for food processing an thus costlier processed food.

Lack of scale in food production as well as lack of proper supply chain

management and refrigerated chains.

Quality standard management execution more obligatory than mandatory

enforcement not too stringent for both domestic as well as exports markets.

Poor over capita income thus restricting most of the consumers to live life

happily with unprocessed food products only as the processed food is very

costly due to cost inefficiencies arising out of poor scales and lack of

horizontal integration.

  Opportunities:

More orientation towards mechanized, organic and large scale farming due or

better exposure of select India farmer’s formation to the international

environment.

The growth of so called rural correlate is found to be more than their urban

counterparts in most of the regions in the country.

Few large conglomerated (ITC, Reliance) shifting towards farming as

backward integration o provide better forward linkages to their domestic

FMCG and exports arms.

Better accountability consciousness in various research institutes related to

agriculture for developing better varieties, breeds with higher productivity and

yields and also major industrial houses (Nicholas primal) providing support to

these institutes for a sustainable growth by investing heavily in new frontiers

of technology like biotechnology.

13

Increasing share of India food products in the international markets due to

increasing Indians population outside the country as well as large exports by

Indian companies in last few years with the benefits extended by the Indian

government to exports income.

Threats:  

Neighboring countries which are trying to become more competitive in labor

and more productive with their land use.

More penetration and branding in the international markets by comparatively

very small nations both in size and production but with very high levels of

food processing more than 60-70% against that of our country at around 2%

for frites and vegetable and 18% for milk.

Lack of infrastructure at tea rural level makes it a curse to be a part of rural

India. Till now out of around 6.5lacs villages only 20% can be considered as

the one with amenities to provide a satisfactory life style. In rest even the basic

amenities are still to be provided and forget about any structured mannerism

for reverse logistics.

The marginal farmer participation in any form is not remunerated well and

most of the cream is enjoyed by the middleman.

In certain cases the middle man is earning more than both the farmer as well

as the processor put together.

Potential for investment in the dairy industry some areas of Indian dairy industry can

be toned up by the evocation of differentiated technologies and equipment from

overseas. This includes:

1. Raw milk handling: The raw milk handling needs to be elevated in terms of

physicochemical and microbiological properties of the milk in a combined

manner. The use of clarification and bactofugation in raw milk processing can

aid better the quality of the milk products.

2. Milk Processing: Better operational ratios are required to amend the yields

and abridge wastage, lessen fat/protein losses during processing. Control

production costs. Save energy and broaden shelf life. The adoption of GMP

14

(Good Manufacturing Practices) and HACCP (Hazard Analysis critical

Control Points) would help produce milk products and adapting to the

international standards.

3. Packaging: Another area that can be improved is the range of packing

machines for the manufacture of butter, cheese and alike. Better packaging can

assist in retaining the nutritive value of products packed and thus broaden the

shelf life. A cold chain distribution system is required for proper storage and

transfer of dairy products.

4. Value-added products: There’s vast scope for Value-added products like

desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars and

sherbets to capture the dairy market in India.

The Indian dairy industry has aimed at better management of the national

resources to enhance milk production and upgrade milk processing involving new

innovative technologies. Multinational dairy giants can also make their foray in

the Indian dairy market in this challenging scenario and create a win-win situation

for both.

Industrial Traditional Milk Products:

There is a large variety o traditional Indian milk product such as makkhan unsalted

butter.

Ghee-butter oil prepared by heat clarification, for longer shelf life.

Baundi-Milk and sugar boiled down till it thickness.

Dahi-A type of curd.

Lassi-curd mixed with water and sugar/salt.

Channa/pannier-milk mixed with lactic acid to coagulate.

Khoa-Evaporated milk used as a base to produce sweet meats. 

Indian’s Milk Product Mix:

15

     

 The market for indigenous based milk food products is difficult to estimate as most

as most of these products are manufactured at home or in small cottage industries

catering to local areas. Customers while purchasing dairy products look for freshness,

quality taste and texture, variety and convenience. Products like dahi, and sweets like

kheer, basundi and rabri are perishable products with shelf life ofless than a day. 

These are several such small shops within the vicinity of residential areas. Consistent

quality, taste and freshness build consumer loyalty. And also several sweetmeat

shops, which have built a strong brand franchise, and have several branches located in

various parts of a city. 

National Dairy Development Board (NDDB):

At the time of inauguration of cattle feed factory at kanjari in October, 1964.

The late Lal Bhadur Shastri, the prime minister of India paid unscheduled visit to milk

producer’s co-operative society and stayed there overnight. He was impressed by the

society and stayed there overnight. He was impressed by the socio-economic changes

brought by milk cooperatives in kaira district and chief executive of the organization

who is supported by professionals to carry out board’s activities.

Kaira District Co-operative Milk Producers Union Ltd., (AMUL):

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Fluid Milk 46.0%

Ghee 27.5%

Butter 6.5%

Curd 7.0%

Khoa (Partially Dehydrated Condensed

Milk)

6.5%

Milk Powders, including IMF 3.5%

Paneer & Chhana (Cottage Cheese) 2.0%

Others, including Cream, Ice Cream 1.0%

Amul symbolizes the successful struggle of kaira district farmers to earn fair

price of therir products. It reached its climax in 1945 the milk was then collected by a

private trader Mr. Pestonji Eduraji person through contractors for Bombay milk

scheme. Every milk producer can become a member of the cooperative society. At

general meeting of members, representatives are selected to form managing

committee, which manages the day affairs milk collection and its testing concept, sold

cattle feed. Each society alos provided with artificial insemination services (AIS)

veterinary first aid.

Dairy Industry in Andhra Pradesh:

The main occupation in Andhra Pradesh in cultivation. The villages relied the

socio- economic development moral and cultural values of human resource dairy

stands as the back none of agriculture and at the same time it maintains important role

for stability of rural economic conditions and helps to maintain nations health by

supplying sweet milk. Now the production of milk became a farmers, small farmers

and agriculture labour.

Major dairy product manufactures in India and their Brands are explained here

under:

Company Brands Major products

Nestle Milk-maid,

cerelac,actogen, Milo &

everyday

Sweetened condensed milk powder, malted

food, milk powder & Dairy whitener, ghee &

ice cream.

Mild foods limited Milk food Ghee &ice cream

Smith line beechen

Ltd

No Malted milk food, ghee butter & other baby

foods.

Gujarat

co-operative

market federation

No Butter, ghee and other milk products.

Cadbury Bourn vita Infant milk food, malted milk food.

Britannia Milk man Flavor milk, ghee, milk       powder, biscuits

ghee.

17

 

  India had the potential to become a leading exported of milk and milk products due

to how labor cost, the cost of milk production is significantly low here to boost

exports, the dairy industry needs to focus on quality and productivity. 

Dairy co-operatives:

 Dairy co-operative account for the major share of processed liquid milk marketed in

the country. Milk is processed by 170 milk producers’ co-operative union, which

federate into 15 state co-operative milk marketing federations.

       The dairy board’s programmers and activities seek to strengthen the functioning

of dairy co-operatives, as producer owned and controlled organization. NDDB

supports the development of dairy cooperatives by providing them financial assistance

and technical expertise, ensuring a better future for India’s farmers. 

 Over the years, brands created by cooperatives have become synonymous with

quality and value. Brands like amul (GCMMF), Vijaya (AP), verka (Punjab), saras

(Rajasthan). Nadine (Karnataka), milkman (karalla) and gokul (kolhapur) are among

those that have earned customer confidence.  

Some of the Major Dairy Co-operative federation Include:

Andhra Pradesh dairy development cooperative federation Ltd (APPDDCF).

Bihar state cooperative milk producer’s federation Ltd (COMPFED).

Gujarat cooperative milk marketing federation Ltd (GCMMF).

Haryana dairy development cooperative federation Ltd (HDDDCF).

Himachal Pradesh state cooperative milk producers’ federation Ltd (KMF).

Kerala state cooperative milk marketing federation Ltd (KCMMF).

Madhya Pradesh state cooperative dairy federation Ltd (MPCDF).

Maharashtra rajaya sahakari maryadit durdh mahasangh.

Orissa state cooperative milk producers’ federation Ltd (OMFED).

Pradeshik cooperative dairy federation Ltd (up) (PCDF).

Punjab state cooperative milk producers’ federation Ltd (MILKFED).

Rajasthan cooperation dairy federation Ltd (RCDF).

18

Tamilnudu cooperative milk producers’ federation Ltd (TCMPF).

West Bengal cooperative milk producers’ federation Ltd (WBCMPF).

Andhra Pradesh dairy Development Co-operative Federation :( APDDCF):

State – wide enterprise of co – operatives for dairy development, the Andhra

Pradesh dairy development co-operative federation (APDDCF) had its genesis in

1981, with a three-tier structure. It had primary societies at village level union is the

district level and the federation as an apex body at the state level. The organizational

objectives which guide (APDDCF) to this day are; 

Organize co-operatives of milk producers at village and district levels.

Proved essential inputs to enhance milk production, feed and fodder

production, cross breeding program, veterinary aid, and take up development

programs to provide effective leadership and management skills to the milk

producer to help them manage their own 9200 co-operatives.

Develop infrastructure for processing of milk and manufacture of dairy

products and market wholesome and quality of liquid milk products in the

state.

Fulfill the consumer needs of liquid milk and milk products in the state.

Develop new products and packaging lines in tune with the changing scenario

of consumer market and needs.

Integrate dairy development with overall rural development efforts and

provide greater employment to the rural poor.

Today, there are 7000 co-operatives with 300 all-women co-operative and a

membership of over 8 lakh people across the state.  

The program diary industry was rooted with commendable help of the united

National international children’s Emergency fund, Food and Agriculture organization

and freedom from Hunger Company campaign organization of the U.K…

This organization insisted a lot of the establishment of the dairy units at

Hyderabad and Vijayawada in 1967 and 1969 respectively, which led to pioneer dairy

development program in Andhra Pradesh later to set cooling and chilling centers have

been setup to feed these two genetic units. The Government of Andhra Pradesh started

19

dairy development corporation ot interest of milk producers and ensuring adequate

supply of fresh milk at reasonable price to the urban consumers. In addition to that the

private units have been contributing their little mite in the development of dairy

industry M/s. Hindustan milk foods that has started a malted milk product factory in

Rajahmundry.

Further enhance working efficiency and to increase the turnover, the government

has constituted on autonomous dairy development Corporation on the

recommendation measure the dairy industry improving towards massive milk

productions and milk collections.

Dairy Development:

      In 1960, a pilot milk supply scheme was started in our state for the dairy

development; its initial milk collection capacity was 100 liters a day at the time of

starting. Now its dairy milk collection increased to 11 lakhs liters per day. It is also

working as a liaison between milk producers of villagers and consumers of the towns

by providing reasonable price to the producers to maintain stable markets. 

Operation Flood:

In our state operation flood was divide into three based as “Anand level”

1. Village level.

2. District level.

3. State level.

Operation Flood – I:

The project had an initial outlay of Rs. 116040 crores. It was mainly aimed at

developing the milk marketing system in the country as such major demand centers

like Delhi, Calcutta, Bombay & Madras were linked with the rural producing pockets

in the country.

The program has the following major objectives:

Increase in capacity of milk processing facilities.

20

Change in urban markets from traditional raw milk supplies to modern dairy

supplier.

Resettlement of long distance milk transport and storage.

Development of long distance milk transport and storage facilities.

Improve in dairy farming standards.

Line of Action:

India received 1, 26, 000 metric tons of skim powder (SMP) 4200 metric tones

of butter oil (BO) the donation were received over a period of 11 years.

Through safes of these commodities, funds to the extent of Rs. 114.68 crores

were generated.

Thus generated funds were again ploughed back for dairy development and

regeneration of funds to the same extant was done.

Operation Flood – II:

This was launched on 2 October 19798. The program has an outlay of Rs.

485.5crores. In this phase still more attention will paid to increasing the milk

production, the program designed to cover the whole country over a period of 7

years some 25 duster federation covering 155 co-operative unions will be formed.

The program has the following major objectives:

Coverage of 10 million rural producer’s families.

Creating of national milk had of 14 million crossbred cows and upgraded

buffaloes.

Strengthening of national milk grid( NMG) by linking milk supply and

demand centers.

Base- structure for national dairy industry.

Increase in per capital consumption of milk products (144 grams/day).

Line of Action:

21

India will receive aid in kind and short term loan.

Tow tier cooperation foundation will have one additional tier at state level.

Implementation to be done through farmers own federation.

All milk sheds will be linked to NMG and also consuming center 50 viable

farmers organization will established.

Details of milk production sectors in A.P:

Number of co-operative societies 4857

Number of other centers 4297

Total collection centers 9154Number of milk procurement routes villages 10249Producers 886800

number of milk chilling centers 67

number of district dairies 9number of milk power plants 7Number of cattle feed plant 8

Important role in socio-economic development:

The dairy industry plays an important role in the socio-economic development

of India. The dairy industry in India is instrumental in providing cheap nutritional

food to the vast population of India and also generates huge employment

opportunities for people in rural places.

The Department of Animal Husbandry, Dairying, and Fisheries, which falls

under the central Ministry of Agriculture, is responsible for all the matters relating to

dairy development in the country. This department provides advice to the state

governments and Union Territories in formulating programmes and policies for dairy

development. It also looks after all the matters relating to production and preservation

of livestock farms (cattle and sheep). To keep focus on the dairy industry a premier

institution known as the National Dairy Development Board was established. This

institution is a statutory body that was established in 1987. The main aim to set up the

board was to accelerate the pace of dairy development in the country and attract new

investments.

22

India is a wonderland for investors looking for investment opportunities in the dairy

industry. The dairy industry holds great potential for investment in India and promises

high returns to the investors.

The reasons why the industry has huge potential for attracting new foreign investment

are:

1. There is a basic raw material need for the dairy industry; that is, milk is available in

abundance.

2. India has a plentiful supply of technically skilled laborers.

3. There is an easy availability of technological infrastructure.

4. India has all the key elements required for a free market system.

There are different sectors within the dairy industry that promise great business

investment opportunities:

•Biotechnology:

1. The Indian cattle yield less milk as compared to their foreign counterparts. The

Indian cattle breeders are on the lookout for ways to improve their milk yield through

cross-breeding. Thus, there is a huge potential available for foreign investors to invest

in dairy cattle breeding of high-quality buffaloes with hybrid cows.

2. There is also great scope for investment in different dairy cultures, including dairy

biologics, enzymes, robotics, and other coloring materials for food processing.

3. Producing bio preservative ingredients based on dairy fermentation, such as

pediococcin, acidophilic, Bulgarian, and Nisin contained in dairy powder, also

promise great investment opportunity.

•Dairy/Food Processing Equipment: Great potential lies for foreign investment for

manufacturing and marketing of cost-effective, top-quality food processing

machinery.

23

• Food Packaging Instruments: There is a tremendous investment opportunity for

foreign investors in the manufacturing of both machinery and packaging materials

that aid the development of brand loyalty and gives a clear edge in the marketing of

dairy products.

• Retailing: Retailing of dairy products also promises great investment opportunities

for standardization and upgrading dairy products in the main metropolitan cities.

• Manufacture of Ingredients: Several ingredients are involved in the making of

different dairy products like ghee, condensed milk, and cheese. Manufacturing of

ingredients for these products offers a great potential for foreign investment in India.

• Finished Products: There is a great scope for investment in the manufacturing of

finished dairy products such as cheese sauce and cheese powders.

• Technically Advanced Manufacturing Units: There is a great opportunity for foreign

investors to invest in establishing manufacturing units for dairy products. The

investors can build world-class manufacturing units and let them for hire. Building

manufacturing units supports specialized dairy-related activities, such as cheese

slicing, cheese packaging, butter printing, and dicing lines, which hold greater

potential over other activities. Thus, the dairy industry in India has huge investment

opportunities in a variety of sectors. The investors are all set to gain profitable returns

on their investment.

India is one of the fastest emerging economies today. With the government

encouraging foreign Investments in India, it has become easier for foreign companies

to foray into the Indian Markets.

COMPANY PROFILE

24

ORIGIN & HISTORY: Organized dairying in Krishna commenced in 1965 with

integrated milk project assisted by UNICEE A milk conversation plant f i r s t of its

kind in South India was commenced in April'1969. The organization of dairy industry

took basic changes beginning with husbandry department: ft was integrated with

project (1960), Dairy Development (1991), A. P. Dairy Development Co-operation

(1974), A.P, Dairy Development Co-operative Federation.

Krishna District Milk producers Co-operative Union got registered in 1983

district have 450 organized dairy co-operative societies with 67,000 member's

producers. There arc 340 producers' association centers.

COMPANY'S MISSION:

Farmer’s prosperity through technical innovations and customer orientation with

specific focus on quality and cost.

COMPANY’S VISION:

Dairying in the district to be the major instrument of strengthening rural economy &

making available safe milk and milk products.

SAILENT FEATURES:

Daily average milk procurement: 1, 63.794Its.

Turnover of business has reached to 200crores.

Daily milk sales average reached to 1, 60,000lts.

Obtained ISO 9001:2000, 14000 and HA.C.C.R certification.

Earning profits and distributing bonus lo its members.

Paying Rs. 68crores per year to farmer as cost of milk procured from them.

Strengthened the rural economy by avoiding middlemen and making available

safe milk and milk products to the customer.

Provided self employment to the rural women.

COMPANY PRIDE;

25

First powder plant established in South India.

Largest democratic functionary in the District serving the farming

community.

Having more than Rs.1000crores grass root level production base.

Providing direct and indirect employment lo people.

First dairy to introduce five varieties of liquid milk.

First dairy to introduce liquid ice cream in tetra brick pack.

First dairy co-operative to introduce curd in cups in South India.

First dairy to introduce butler milk and lassie in tetra brick pack.

Annual turnover more than R&. 121crores with a continuous growth rate.

First dairy to introduce Basundi in cups and milk cake.

Distribution network with 27 milk distribution routes.

S.W.Q.T. ANALYSIS

STRENGTHS:

Milk production potential in Krishna District substantial.

Ability to handle highly perishable product milk.

Adequate infrastructure facilities available.

Ability to meet any consumer demand for milk and milk products.

Ability to offer quality products with high profitability.

Established bondage with farmers.

Access to developmental funds and grants.

Access to other co-operatives.

WEAKNESSES:

High fixed costs occupying 15% of business turnover.

Milk and milk products are high priced during competitive edge.

Product manufacturing facilities are outdated due to lack of modern

facilities.

Work culture not compatible with growing for customer service.

Employee's skills at various levels require up gradation.

Business systems and modern management culture is yet to be adopted.

Managers lack of business experience.

26

OPPORTUNITIES:

Increased purchasing capacity.

Growing food service sector.

Responsive state government

Export opportunities for long life aseptic milk.

Responsive milk producer base.

THREATS:

Intense competition in liquid milk market.

Entry of organized private section.

Increasing competition for the marketable surplus milk in rural areas.

Employee's resistance to change.

SUCCESS STORY:

District Krishna is on the river rain track of Krishna a bulling Bay of Bengal.

Krishna District knows for its quality cattle. In milk Cattle population it ranks second

in the state.

Organized dairying in Krishna commenced in 1965 with integrated Milk

product assisted by the UN1CEF. A milk conservation plant 1.25 LL Pd was

commenced in April, 1969 at Vijayawada. The dairy industry in the District had its

beginning under State Government as part of Animal husbandry activity. It was

integrated m i l k project (I960), dairy development department (1971), Andhra

Pradesh Dairy Development Corporation (1974) and A.P. Dairy Development C-

operative Federation (198I).

Union collects milk from about 1lakh milk produces covering KOO villages

organized through 20 routes. District union has 6 milk chilling canters one each

operating al Pamaru, Hanuman junction, Veerankilick, Gudlavalleru, Chilliikollu and

Tiruvuru with total processing capacity of 1.22lakhs / day. It has milk products factory

with the factory with the facilities to manufacture different milk products.

Milk -- 2.5Ikahs

Processing -- Its/day

27

Milk drying -- 22MT/Day

Butter -- 22 MT / day

Ghee -- 18MT/day

The milk products factory al Vijayawada handles surplus milk from all

coastal districts. About 1.73Lakh Kgs/day with peak touching 3.18lakh Kgs / day. The

factory conserves fat in the shape of white butter usually to the extent of 10O MT per

year. An Aseptic Packing Station (APS) was set up in (the Milk Products Factory to

pack 50,000 liters of long the milk (UHT MILK) per day. Union has also 2 cattle feed

mixing plants with a total capacity of 50 Mt / Day.

Growth of the factory:

As an integral part of the above project the milk products factory,

Vijayawada was commissioned on 11-04-1969. The Factory has got an initial

handling capacity of 1, 25,000 liters in the first stage with provision of handle 2,

50,000 liters milk in the second stage. It has crossed the mark of 1, 00,000 liters in the

very first year of its operation gelling admiration from the UNICEF officials.

The woman has been playing a greater role in the rural dairying i.e.,

feeding of animals, washing and milking etc. To encourage this activity in an

organized way the APDCFL of foundation three district viz., Nalgonda, Krishna and

Chittoor already 8 women co-operative societies are organized and 200 new members

have been enrolled a part from 1000 women members enrolled in other societies.

Milk Procurement:

Milk is being procured twice a day from about 830 villages in the district organized

through 2 routes and 6 chilling centers besides gelling raw milk directly lo the factory

from certain villages in a radius of 50km around Vijayawada. Among 4RO centers,

about 431 arc registers societies as under anand pattern.

MILK PRODUCT FACTORY – VIJAVAWADA

28

Data specification

Area occupied by the factory 27.3 acres

Value of factory building 400lakhs

Money giver by UNICEF 53lakhs

Machinery

Investment on equipment 600lakhs

Buildings

Opened on TM-I969

Workers 1538

Date of formation of Union 6-7-1983

Date of transfer of management

of the union 8-2-1985

Annual Turnover 60Crores

Production Power

Milk 50000lts/day

Ghee 5tonnes

Butter 7tonnes

Milk powder 4tonnes

Packet filling 160000packets/day

Refrigeration capacity 1.5tonnes

29

Contracted maximum demand 9000 chilling

Processing 1, 50,000

UNIQUE ACHIEVEMENTS:

The company got ISO 9001 and ISO 14000 trademark fur its quality of milk.

The company recently made recur sales of 1.64lakh Its/day where as it’s.

Previous sales record was 1.45lakh Its/day.

RANKING OF THE DISTRICT IN ANDHRA PRADESH:

Milk Production 3rd

Processing 4th

Marketing 3rd

Krishna district has milk procurement ranging from 45000kgs to 105000kgs

per day from 1969 to 19&8 District being buffalo concentrated has wide procurement

fluxions. The District Co-Operative Milk Union provides the following inputs to the

farmers for increasing milk production.

Premixed cattle feed.

Cattle insurance at 2/3 subsidies

Maternity first aid facilities

fodder seeds at subsidized rates

Animal vaccines & medicines at subsidizes prices

Breeding bulk

Extension services

CHILLING CENTRES:

The milk products factory Vijayawada has set up 10 chilling canters which are

given under centre have been producing chilled milk for the composition of the

various segments of the consumers. Chilling centers are very useful to milk products

30

factory following centers are in Krishna District under the location of milk products

factory, Vijayawada.

• Pamaru

• Hanuman Junction

• Veerankilock

• Gudlavalleru

• Chillakolu

• Tiruvuru

• Gannavaratn

• Vuyyuru

• Kaikaluru

• Kankipadu

Town No. of Selling Booths Daily Sales (in liters)

Vijayawada 185 68000

Machilipatnam 42 4000

Gudivada 25 1200

Total 252 73200

INFRASTRUCTURE AND FACILITIES:

Milk products factory Vijayawada is located on 27.3 acres of land which

houses of dairy plant. Aseptic packing station Administration office, effluent

31

treatment plant, electrical substation and residential quarters. Following are the facilities

available in Milk Products factory Vijayawada and its field centers.

A. MILK PRODUCTS FACTORY VIJAYAWADA

S. NO. IN a me of the

Facility

Unit Capacity

1 Milk Processing Lakes Lts/ day 2.5

2 Milk drying MT.s/day 22.0

3 Ghee manufacturing MT.s/day 18.0

4 Butter manufacturing MT,s/day 22.0

5 UHT Milk packing Lt s/day 45000

6 Milk Packing Lts/day 200000

7 Go down space M.T.s 3000

8 Butter Cold Store M.T-S 500

B. FIELD

S. NO. IN a me of the Center Unit Capacity

1 MCC Pamaru Lts/day 50000

2 MCC Veeranliock Lts/day 18000

3 MCC Gudlavalleru Lts/day 18000

4 MCC Hanuman Junction Lts/day 18000

5 MCC Chillakallu Lts/day 12000

6 MCC Tiruvuru Lts/day 12000

Total 128000

32

7 No. of Computerized milk

collection and testing centers

25

8 No. of milk coolers operating

(planned to establish 10 more)

6

9 DCS having electronic milk

testers

450

10 No. of A.T. Centers 56

11 No. of V.F.A. Centers 240

12 No. of DCS organized 630

13 No. of MPAs 320

14 Exclusive women DCSs 103

15 Farmer members 118689

16 Women members 23347

17 No. of milk routes 35

18 No. of DCS having it own

buildings

400

C. Cattle Feed

S.NO. Name of the Plant Unit Capacity

1 FMP Buddavaram M.T-s/day 30.0

2 FMP M.T.s/day 18,0

Milk Processing and Production:

Dairy Manager is heading the production division supported by four dairy

managers, 11 Assistant managers and other production staff engaged in milk

33

reception, milk processing. Butter making, Ghee making, Powder making bi-product

its manufacturing and finished goods section production operations begin with milk

reception at the dairy dock and continued round the clock.

MILK PRODUCTION FLOW CHART

Milk from villages

Raw milk reception Chilled milk reception

Milk Chilling

Milk Pasteurization and Separation

Standardization

Cream Milk Packing Evaporation UHT Packing Other products

Butter Sachets & Cans Drying Market Khova, Lassi.

Ghee Market Powder Market

Packing &Marketing Market & Storage for reconstitution

Milk Reception:

As soon as milk is arrived at the reception dock either through cans or

tankers, the laboratory authorities conduct all the platform / bacteriological /

34

chemical test and after its quality confirmation the milk is received and sent to

storage.

Raw Milk:

Milk products factory Vijayawada is directly connected by around 175

villages a radius of around 50kms around Vijayawada.

The milk collected from these villages is collected directly at milk products

factory, Vijayawada for which it equipped with a can conveyer, an electrical

weighting machine, a dump tank and a straight through can washer with cleaning

capacity of 600 cons per.

Child Milk:

Chilled milk from chilling centers and other stations through milk tankers is

received at the and after receiving quality confirmation from laboratory the milk is

sent for storage.

Milk Processing Section:

It has 12 storage tanks each of 15000lts. Four creams vats each of 5000 its

capacity. It is equipped with 3 milk pasteurizer of 20000lts. Capacity/hour

15000lts/hour and 10000lts / hour respectively. It also has cream pasteurizers with a

capacity of 5000lts/hour. Altogether it has storage capacity of 4lakh lts.

Operations:

Separation of required quantity of whole milk to the extent of demand and

with admixture of whole milk/cream and skim milk in required proportions, milk is

standardized according to their composition and sent them to the packing or

products manufacturing divisions.

Butter Section:

35

It is equipped with three butter churns with drum capacity of 1500lts each.

The cream loaded in the drums is churned for about three hours for separation of

liquid butter milk from cream after setting of butter it was washed with chilled water

to remove solids in liquid from butter milk is sent back to processing section for

further usage. To the extent of usage the butter is packed in 1/2kg packs and 20kg

and remaining is utilized for ghee making.

Ghee section:

There are 7ghee boilers in ghee section each with 1000lts capacity in which

utter is malted for 3 hours at 120c. After attaining satisfactory flavor, eight hours of

resetting of sediment at the bottom of the tank. There are settling tanks each 8000 its

capacity and two storage tanks each 3000lts capacity. Then the ghee is clarifies and

fitted with fine filtered ghee is packed in 5lt, 2lt, 1lt, and 1/2lt ect., The total

capacity of ghee packing is 18.0o M.T. per day.

Bio-Products section:

All the fresh milk products like buttermilk, sweet lassie, khova, panner,

yoghurt, milk cake are manufactured and packed under strict hygienic and aseptic

conditions in this section.

Powder Section:

It has two powder plants. An alfa level makes single effects gravity flow

milk evaporator plant with drying capacity of 8M.T. s per day and other valcan level

double effect gravity flow milk evaporator pant with capacity of 14M.T. s per day

are under operation. Fine and superior quality ISI grade SMP is packed in 25kg, 1kg,

& 1/2kg packs.

Milk packing:

It has the capacity to patch 200000Its of various verities of milk per day. It is

equipped with eight sachet packing machines each capacity is 150 tubes per hour. Five

verities of milk in 1/2 It sachets for direct consumers. Cans for institutions are being

packed.

Aseptic packaging station (APS):

36

Special officer is heading the AFS unit. The APS was established in 1988 with

financial assistance of NDDB in the existing campus of milk products factory.

Vijayawada a total out lay of 22crores. Milk is related in high temperature plant for 2-

3 seconds at about 1400 c under low procedure followed by rapid cooling. This

enables milk to be free of micro organize which are liable to proliferate during

storage, Tetra Brick is a compact, sterile, pilfer proof, unbreakable and long shelf life

pack that retains freshness and goodness of milk for 3-4 months.

Sales & Marketing:

Director of (S&M) is heading the sale and marketing wing supported by a

sales manager and three Asst. Sales Managers with a network of 700 booths, 300

round the clock cold chain parlors. The sales and marketing wing of the union

functions round the clock for the distribution and marketing of milk and milk

production.

DISTRIBUTION NETWORK:

1. Liquid milk distribution:

Vijayawada city is divided into 24 zones. Each one is connected by a

separate milk route operating booth morning and evening lo distribute the

milk lo the commission agents and cold chain points.

2. Product distribution:

a. Local distribution within the district; through distributors, stockiest

and retailers. Products are delivered to these distributors / stockiest /

retailers.

b. Distribution lo outside district : Through stockiest and E\. Factory

direct sales throughout the country,

Finance:

Senior Accounts Officer is heading the finance who is assisted by four Asst

Accountant Superintendent and Finance staff. The union has started its operations

37

independence from 08-02-1985 onwards after taking the fixed assets from the State

Federation at their hook values as on that dale.

Personal and HRD:

Personnel Officer is heading the personnel department. HRD

activities are carried out for the benefit of the employees.

It is looking after the service / administration matter of the staff of this union

besides implementation of the following Act

• Industrial Dispute Act 1947

• Payment of wages Act 1936 & Minimum wage Act. 1948

• Equal remuneration Act.

• Gratuity 1972

• Workmen compensation Act.

• ESI Act 1948

• Trade Union Act 1926 etc.

Share Capital:

Authorized share capital Rs, 500 lakhs. The unions paid up share

capital at present are Rs. 106.24 lakhs and Rs. 31.87 lakhs Eire share suspense

wailing for conversion.

Long term loans:

The National Dairy Development Board has provided loans to the

union under O.F.2/3 program for capital projects in the union total Rs. 707.20 lakhs

was financed for various projects to the union under 70:30 loans cum grant basis.

38

RECRUITMENT AND SELECION POLICIES IN APDDC FEDARATION

LIMITED.

Right man at right place and right time is the guiding path for setting up for

selection and recruitment procedure in any organization. The labor Investigation

Committee right observed that recruitment is the first step in employment of labor and

naturally the methods and organization by means of failure of such employment. If

proper care is taken in the community at large is bound to benefit to a great extent.

Recruitment policies of different organizations are varied and diverse.

Organization have to be fully aware of the mandatory necessity of tapping the right

source for ensuring that the best available talent are selected and induced into the

organization. The selection process and techniques of a large number of organizations

are inadequate or faculty resulting in poor outputs and ineffective functioning. This is

especially true of the public sector undertaking where the intakes are substandard

necessitating recurring expenditure on training sub sequence to their selection and

induction into the organization.

O bjectives of personal management in AP Dairy Development Co-operative

Federation Ltd.,

The object of the personal management in Andhra Pradesh dairy development

co-operative federation limited is to promote the effectiveness of the people employed

in the organization in performing their allotted tasks in an atmosphere of high morale

and co-operative relation with the objective of attaining productivity and profitability

consistent with social responsibilities. The recruitment rules and procedures are

formulated keeping the above broad objective in view.

The recruitment policy in Andhra Pradesh dairy development co-operative

federation limited encompasses the following objectives.

1. To introduce professionalism in different cadres.

2. To select the right man in the right place as per the specification: if

necessary training support may be extended to mold the new recruits to

the organizational needs.

39

3. To position the right person in the tie, which involves careful

succession planning.

4. To infuse new blood at different levels at a certain percentage to check

and inbreeding and create a spirit of competition in the organization.

5. To develop in them a sense of dedication and commitment to the

organization.

6. To evolve schemes for attracting and retaining competent personnel in

the organization.

7. To inculcate a sense of social outlook in fulfillment of the various

directives issued by the Government.

R ecruitment and Selection Procedure in KDMPMACU Ltd., VIJAYAWADA

R ecruitment : Recruitment procedure in Vijaya Dairy is done through giving paper

ads, short lists the applications conducting personal interviews and final interview by

the board of members and sees the resumes and selects the suitable candidates by

sending them call letters to their houses.

Selection: Selection procedure in Vijaya Dairy is by short list of applications. On the

basis of qualification, age, on humanitarian grounds, characteristics in resume, nature

of duties. The Selection in Vijay diary can also be done for the new retirements and

promotions.

The structure of the manpower is divided into three categories as indicated below.

a. EXECUTIVE

1. Top Management Chairman and Managing Director and

Functional Directors

2. Senior Management General Manager Deputy

General Manager

3. Middle Management Deputy Manager Cadre Officer

4. Junior Management Junior Officer Section

Officers Management Trainees.

40

b. STAFF

1. Supervisory Supervisors assistant Supervisors

2. Clerical Assistant Stenographers Typist

3. Other non Technical Security Fire Services Transport

Other staff.

c. WORKMEN

1. High skilled

2. Skilled

3. Semi-skilled

4. Unskilled.

PROCEDURE FOR RECRUITMENT:

a) When post are advertised on all India basis in leading News papers as well as

important regional dailies, such advertisement contain particulars regarding:

1. Name of the posts and number of posts.

2. Pay scale of the posts with admissible allowances and higher start in case

of candidates with exceptional qualification experience.

3. Nature of vacancy, weather temporary / permanent etc.,

4. Qualification

5. Experience required

6. Minimum and maximum age limits.

7. Reservation of posts for SC, ST and relaxation as per rules.

8. Admissibility of Travelling allowance

9. Terms of appointed and Nature of selection.

10. Mode of applying for the posts.

41

GENERAL PRINCIPLES:

1. It is the sole responsibility of the personal recruitment, conduct written

tests, arrange interviews and follow up further action.

2. Merit and experience of selection of candidates.

3. All appointments against permanent posts will be made subject to

probation, the probation period will be one for officers and staff and six

months for workmen.

4. The competent authority to approve selections, will as a rule pay due

regard to the recommendations of the selections committee.

5. In accordance with the instruction received from the government of India

from time the percentage of reservation are made in recruitment.

6. All appointments are subject to prior verification of character and

antecedents confidential reports and subject to medical fitness.

7. Generally in the case of every selection, a reserved list is preferred so that

as and when vacancy arises in that particular category in future,

appointments may be made from the reverse list there by avoiding

repetition of the hole procedure of the whole procedure of recruitment

every time.

8. The recruitment action is to be completed with in the periods specified

there under as far as possible.

Vacancies to be filled in through internal advertisement 30

days.

Vacancies to be filled in through employment exchange 45

days.

Vacancies to be filled in through advertisement 60 days.

42

Recruitment & Selection

Recruitment:

Any organization whether a business organization or an industrial enterprise

needs four important i.e., Money, Material, Men, & Machine not only for its growth

and future development but also even for its continuance and survival. Since

Management is getting things done through the efforts of these people, manpower

management has also become a difficult task in fact without the productive efforts of

human being, materials, and resources would be of no use. It even controls the

application of other resources. For the efficient use of all the resources, the

employment of a suitable human force is essential. Human resources management is

concerned with this aspect of the essential. Recruitment represents the first contact

that a company makes with potential employees.

Meaning & Definition of   Recruitment:

Recruitment is the most important function of personnel administration. Recruitment

is understood as the process of searching for and obtaining applicants for jobs, from

among whom the right people can be selected. Theoretically, recruitment process is

said to end with the receipt of applications, in practice the activity extends to the

screening of applications so as to eliminate those who are not qualified for the job.

Edwin & Fillippo:

In the words of Edwin & Fillipo “Recruitment is the process of searching for

prospective employees and stimulating them to apply for jobs in the organization”.

According to this definition recruitment is a prospecting job where

organizations make searching for prospective employees but in practice prospective

employees for also seek out organizations like organizations seek out prospective

employees. Therefore, the job of dependent on timing otherwise, recruitment will not

be successful.

43

Recruitment Policy:

Every organization should formulate an effective recruitment and selection

policy. But in practice, most organizations have no define clear-cut recruitment policy

and proper man power planning. Recruitment decisions are taken on ad hoc basis

depending on the circumstances. These ad hoc policies and procedures shall

adversely affect the success of the firm and its productivity.

A second recruitment policy should consist of the following five elements:

1. Identification of recruitment needs

2. Preferred sources of recruitment

3. Criteria for selection and selection techniques

4. Cost of recruitment

5. Role, if any assigned to the union in the formulation and implementation

of recruitment and selection policies.

Importance of recruitment:

The general purpose of recruitment is to provide a pool of potentially qualifies job

candidates. Specifically, the purposes are to:

Determine the present and future requirements of the firm in conjuction with

its personnel-planning and job-analysis activities.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of the selection process by reducing the number

of visibly under qualifies or overqualified job applicants.

Meet the organization’s legal and social obligations regarding the

compositions of its workforce.

Begin identifying and preparing potential job applicants who will be

appropriate candidates.

Increase organizational and individual effectiveness in the short term and long

term.

An effective approach to recruitment can help a company successfully compete for

limited human resources. A recruiting program helps the firm in at least four ways:

44

Attract highly qualified and competent people.

Ensure that the selected candidates stay longer with the company.

Make sure that there is match between cost and benefit.

Help the firm create more culturally diverse work-force.

Recruitment process:

As stated earlier, recruitment refers to the process of identifying and attracting

job seekers so as to build a pool of qualified job applicants. The process comprises 5

interrelated stages: 1. Planning, 2. Strategy development, 3. Searching, 4. Screening,

5. Evaluation

Screening To

selection

Objectives of recruitment:

To attract people with multi-dimensional skills and experiences that suit the

present and future organizational strategies.

To induct outsiders with a new perspective ot lead the company.

To infuse fresh blood at all levels of the organization.

45

Personnel Planning

Job vacancies

Job analysis

Recruitment planning

-Numbers-Types

Strategy development

–where -how

-when

Employee Requisition

Searching activation “selling”

-Message-Media

Application Population

Applicant

pool

Potential hires

Evaluation and

control

To develop an organizational culture that attracts competent people to the

company.

To search for talent globally and not jst within the company.

Sources of Recruitment:

Each source has its own merits & demerits. The pictorial representation of various

sources of recruitment is made in given below.

Sources of Recruitment

Internal sources External sources

1. Present employees 1. Professional or trade Associations

2. Employee referrals 2. Advertisement

3. Former Employees 3. Employment exchange

4. Previous Applications 4. Campus Recruitment

5. Walk-ins and write-ins

6. Consultants

7. Contractors

8. Displaced persons

9. Radio & Television

10. Acquisitions and mergers

11. Competitors

12. E-Recruiting

Internal Recruitment:

Internal recruitment seeks applicants for positions from those who are

currently employed. Internal sources are:

Present employees:

46

Promotions and transfers from among the present employees can be a good

source of recruitment. It may also help to track persons who have the potential for

further training or those who have the right background for the vacant positions.

Employee referrals:

This can be a good source of internal recruitment. Employees can develop

good prospects for their families and friends by acquainting them with the advantages

of a job with the company, furnishing cards of introduction, and even encouraging

them to apply. Many employees know from their own experiences about the

requirements of the job and what sort of persons the company is looking for.

Employee referrals can be a good source of recruitment. When employees recommend

successful referrals, they are paid monetary incentives which are called “finder’s

fees”.

Former Employees:

Former employees are also an internal source of applicants. Some retired

employees may be willing to come back to work on a part time basis or may

recommend someone who would be interested in working for the company.

Sometimes, people who have left the company for some reason or the other are

willing to come back and work.

Previous Applications:

Although not truly an internal source, those who have previously applied for

jobs can be contacted by mail, a quick and inexpensive way to fill an unexpected

opening. Although “walk-ins” are likely to be more suitable for filling unskilled and

semi-skilled and semi-skilled jobs, some professional openings can be filled by

applicants to pervious jobs.

Internal recruitment advantages:

It is less costly.

Candidates are already oriented towards company.

Organizations have better knowledge about the internal candidates.

Enhancement of employee morale and motivation.

Good performance is rewarded.

47

Internal recruitment disadvantages:

It perpetuates the old concept of doing things.

It abets raiding.

Candidates’ current work may be affected.

Politics play a greater role.

Morale problem for those not promoted.

External sources:

External sources far outnumber. Specially, sources external to a firm are

Professional or trade Associations, Advertisement, Employment exchange, Campus

Recruitment, Walk-ins and write-ins, Consultants, Contractors, Displaced persons,

Radio & Television, Acquisitions and mergers, Competitors.

Professional or trade Associations: Many associations provide placement

services for their members. These services may consist of compiling job

seekers’ lists and providing access to members during regional or national

conventions. Further, many associations publish or sponsor trade journals or

magazines for their members.

Advertisement: This is a very common and effective method of bringing in

candidates from outside. The employer puts up an advertisement in the news

paper either in the classified advertisement column or in the form of display

advertisement. The name of the post educational qualifications, experience in

the relevant field of activity, salary etc., are given in the advertisement. This

method is generally suitable for finding out skilled personnel.

Employment exchange: In our country, the Government runs employment

exchange. In western countries, employment counsels and private employment

exchanges are popular. The employment exchange can help the employers to

find out suitable personnel in our country these exchanges are very helpful to

procure unskilled and semi-skilled workers. In our country the employment

48

exchange (compulsory notification of vacancies) Act 1959, provides for

compulsory notification of vacancies to the employment exchange before

filling the vacancies by the employers in public and private sectors but

unfortunately our employment by private sector undertakings in India.

Colleges, Universities & Institute placement services (campus selections):

Some progressive employers maintain a close contact with the universities,

colleges, vocational institutions and management institutions for recruitment

to various jobs. It is easier to mould the fresh graduates hence they follow the

well known principle “catch the young” this practice has several points its

credit. This method is widely practiced in our country.

Walk-ins and write-ins: The most common and least expensive approach for

candidates is direct applications, in which job seekers submit unsolicited

application letters or resumes. Direct applications can also provide a pool of

potential employees to meet future needs.

Consultants: ABC consultants, Ferguson associates, Human resource

Consultants, head hunters, Analytic consultancy bureau, Aims management

consultants and the search house are some among the numerous recruiting

agencies. These and other agencies in the profession are retained by

organizations for recruiting and selecting managerial and executive personnel.

Contractors: Contractors are used to recruit casual workers. The names of the

workers are not entered in the company records and, to this extent, difficulties

experience in maintaining in permanent workers are avoided.

Displaced persons: Sitting and implementation of a project in an area would

result in displacement of several hundred inhabitants. Rehabilitating the

displaced people is a social responsibility of business. Such people are a

source of recruitment, not only for the project which caused the displacement,

but also for other companies located elsewhere.

Radio & Television: Radio and television are used but sparingly, that too, by

government departments only. Companies in the private sector are hesitant to

use the media because of high costs and also because they fear that such

49

advertising will make the companies look desperate and damage their

conservative image.

Acquisitions and mergers: Another method of staffing firms is a result of the

merger or acquisition process. When organizations combine into one, they

have to handle a large pool of employees, some of whom may no longer be

necessary in the new organization. As a result of merger or acquisition,

however, new jobs may be created as well. Both new and old jobs may be

readily staffed by drawing the best-qualified applicants from this employee

pool.

Competitors: Rival firms can be a source of recruitment. Popularly called

poaching or raiding. This method involves identifying the right people in rival

companies, offering them better terms and luring them away.

External recruitment advantages:

Benefits of new skills, new talents and new experiences to organizations.

Compliance with reservation policy becomes easy.

Scope for resentment, jealousies, and heartburn are avoided.

External recruitment disadvantages:

Better morale and motivation associated with internal recruiting is denied to

the company.

It is costly.

Chances of creeping in false positive and false negative errors.

Adjustment of new employees to the organizational cultural takes longer time.

Assessment and improvement of Recruiting:

The recruitment activity is supposed to attract the right people at the right

time. It is concerned with attracting those whose personalities, interests, and

preferences will most likely to be matched by the organization and who have the

skills, knowledge, and abilities to perform adequately. Recruitment practices vary

from one organization to another. Some organizations resort to centralized

recruitment and some others to decentralized recruitment. Both the system has their

50

merits and demerits. Hence the management has to weigh both the merits and

demerits of each system before taking a final decision about centralizing or

decentralizing the recruitment. Normally organization do not face difficulty in

finding adequate employees for manual, clerical sales and general run types of work.

But they often do have a problem in obtaining the professionals and managerial talent

they require. The growing complexity and sophistication of technology has meant that

increasing numbers of professionals and managers are needed to run our modern

enterprises. Manpower managers must constantly review improves methods of

recruitment and sources manpower supply.

Any method source which is highly effective at present may prove to be quite

ineffective later on in view of changed situations. Man power managers should also

attempt to improve their recruitment system. The results assessment or problems

phased during the recruitment process may themselves indicate the need for the

improvement of the program. A method to improve recruiting is to look at the

enterprise as a candidate would and taking appropriate measures to improve its image.

Further, recruitment activity should be integrated with the human resource plans of

the organization.

Selection:

Selection is the process of picking individuals (out of the pool of job

applicants) with requisite qualifications and competence to fill jobs in the

organization. Recruitment and selection are the two crucial steps in the HR process

and are often used interchangeable. There is, however, a fine distinction between the

two steps. While recruitments refer to the process of identifying and encouraging

prospective employees to apply for jobs, selection is concerned with picking the right

candidates from a pool of applications. Selection, on the other hand, is negative in its

application in as much as it seeks to eliminate as many unqualified applicants as

possible in order to identify the right candidates. As stated in the previous chapter, the

term recruitment is widely used to refer to the whole process of employee hiring.

Essentials of selection procedure:

The selection process can be successful if the following requirements are satisfied:

51

1. Someone should have the authority to select. This authority comes from the

employment requisition, as developed by an analysis of the work-load and

work force.

2. There must be some standard of personnel with a prospective employee may

be compared i.e.,

3. A comprehensive job description and job specification should available before

hand.

4. There must be a sufficient number of applicants from the required number of

employees may be selected.

Significance of the Selection Process:

Selection of personnel to man to organization is crucial, complex and

continuing function. The ability of an organization to attain its goals effectively and to

develop in a dynamic environment largely depends upon the effectiveness of its

selection program. It right personnel are selected, the remaining functions of

personnel management become easier, the employee contribution and commitment

will not effective. If the right person is selected, he is a valuable asset to the

organization ad it faulty selection is made the employee will become a liability to the

organization.

Selection process:

Selection is a long process commencing from the preliminary interview of the

applicants and ending with contract of employment. In practice, the process differs

among organizations and between two different jobs within the same company.

Selection procedure for senior managers will be long-drawn and rigorous, but it is

simple and short while hiring shop-floor workers.

52

Selection Procedure

Preliminary interview:

53

External environment

Preliminary Interview

Job offer

Evaluation

Internal environment

Selection Decision

Employment Interview

Reference and background analysis

Selection Tests

Physical examination

Employment Contract

Rejected applicants

In this step applications received from job seekers would be subject to scrutiny

so as to eliminate unqualified applicants. This is usually followed by a preliminary

interview the purpose of which is more or less the same as scrutiny of applications,

that is, elimination of unqualified applications. Security enables the HR specialists to

eliminate unqualified job seekers based on the information supplied in their

application forms.

All the applications so received will then be divided in to two categories.

1. Applications of the candidates who have the required educational

qualifications.

2. In applications who do not have the required qualifications.

This type of sorting out of applications will help the personnel manager to reject

the applications of the candidates who are not suitable for appointment. The rejected

applications are later informed by sending a letter of regret. The candidates who have

the required qualifications are then called for a preliminary interview.

Blank application forms should be:

1. Applications should be as brief as possible.

2. The question should be so drafted as to obtain adequate information

3. They should cover only those points, which are absolutely essential for job

success.

4. All unnecessary questions should be avoided.

Selection tests:

Job seekers who pass the screening and the preliminary interview are called

for tests. Different types of tests may be administered, depending on the job and the

company. Generally, tests are used to determine the applicant’s ability, aptitude and

personality. Ability tests assist in determining how well an individual can perform

tasks related to the job. Some of the commonly used types of tests and the purpose for

which they are discussed below:

Performance tests: The simplest and perhaps the most obvious type of testing

procedure is the performance testing in which the applicant is asked to

demonstrate his ability to do the job.

54

Intelligence test: Many companies use general intelligence tests under the

assumption that quick-learning, alert, bright people, can learn more quickly

any job in compensation with those who are less well-endowed. However,

developing of accurate and reliable intelligent test need professional expertise.

Aptitude test: An aptitude test measures the potential ability of a candidate to

learn a new job. Psychologists have developed a large number of specialized

aptitude tests, such as clerical, mechanical, spatial relationship and manual

dexterity, abilities and skills which seek to predict the likelihood that an

applicant can learn a certain type of job effectively.

Personality test: These tests seek to assess an individual’s motivation,

adjustment to the stresses of everyday life, capacity for inter-personal relations

and self-image. These are expressed in terms of the relative significance of

such traits within the person as self-confidence, ambition, decisiveness,

optimism, patience, fear and distrust. The most popular personality tests are of

the pencil-and-paper variety.

Situational test: The aspects of both performance and personality testing are

combined in situational tests to observe how job applicants react to stressful

but realistic real-life situations. This technique is applied in leaderless group

situations. Several candidates for managerial positions are presented with a

problem that requires group collaboration.

Employment interview:

The next step in the selection process is employment interview. An interview

is conducted at the beginning and at the end of the selection process. The emphasis

here is on the latter.

Interview is a formal, in-depth conversation conducted to evaluate the

applicant’s acceptability. It is considered to be an excellent selection device. Its

popularity stems from its flexibility. It allows a two-way exchange of information, the

interviewers learn about the applicant, and the applicant learns about the employer.

Reference and background checks:

55

Many applications request names, addresses and telephone numbers or

references for the purpose of verifying information and perhaps, gaining additional

background information on an applicant. Although listed on the application form,

references are not usually checked until an applicant has successfully reached the

fourth stage of a sequential selection process. When the labor market is very tight,

firms sometime hire applicants before checking references.

Previous employer, known public figures, university professors, neighbors or

friends can act as references. Reference checks serve two important purposes. One

purpose is to gain insight about the potential employee from the people who have had

previous experience with him/her. The second purpose for reference checks is to

assess the potential success of a prospect.

Selection Decision:

After obtaining information through the preceding steps, selection decision-the

most critical of all the steps-must be made. The other stages in the selection process

have been used to narrow the number of candidates. The final decision has to be made

from the pool of individuals who pass the tests, interview and reference checks. The

view of the line manager will be generally considered in the final selection because it

is he/she who is responsible for the performance of the new employee. The HR

manager plays a crucial role in the final selection.

Physical examination:

After the selection decision and before the job after offer is made, the

candidate is required to undergo a physical fitness test. A job offer is, often,

contingent upon the candidate being declared fit after the physical examination. The

results of the medical fitness test are recorded in a statement and are preserved in the

personnel records. Obviously, reasons for a physical test is to detect if the individual

carries any infectious diseases, physically fit to perform the work and etc.,

Job Offer:

The next step in the selection process is job offer to those applicants who have

crossed all the previous hurdles. Job offer is made through a letter of appointment.

56

such a letter generally contains a date by which the appointee must report on duty.

The appointee must be given reasonable time for reporting. This is particularly

necessary when he or she is already in employment, in which case the appointee is

required to obtain a relieving certificate from the previous employer. Again new job

may require movement to another city which means considerable preparation and

movement of property.

Contracts of Employment:

After the job offer has been made and the candidates accept the offer, certain

documents need to be executed by the employer and candidate. One such document is

the attestation rom. This form contains certain vital details about the candidate which

are authenticated and attested any him/her. There is also a need for preparing a

contract of employment. The basic information that should be included in a written

contract of employment will vary according to the level of the job.

Placement & Induction:

Placement: Placement means the placing of the selected candidate in a job with the

other workers.

Collecting details about the employee.

Matching between sub-group profile & individual profile

Construction the employees profile

Comparing sub-group profile with job finally profile.

Assigning the individual to the job finally

Assigning the individual to specific job after further counseling and

assessment.

Induction: The induction function follows placement step induction is concerned

with the problem of introducing/orienting a new employee to the organization and

to the procedure, rules and regulations.

But systematic course of induction should cover the following:

57

Brief history of the company. Products its place in industry present of

various departments.

Personnel policy regarding discipline education and training and

promotion, holidays method of computation and the date of payment of

salaries and wages.

The rules of working, safety health regulations.

Introduction to the new employees won department and a detailed

summary of the departmental work.

Evaluation of Selection program:

The broad test of the effectiveness of the selection process is the quality of the

personnel hired. A firm must have competent and committed personnel. The selection

process, if properly done, will ensure availability of such employees. How to evaluate

the effectiveness of a selection program? A periodic audit is the answer. Audit must

be conducted by people who work independent of the HR department.

Selection as a source of competitive advantage:

The role of selection in an organization’s effectiveness is crucial for at least, two

reasons. First, work performance depends on individuals. The best way to improve

performance is to hire people who have the competence and the willingness to work.

Second, cost incurred in recruiting and hiring personnel speaks volumes about the role

of selection. Here is one instance to prove how expensive recruitment has become.

Role of selection in organizational efficiency:

Employee selection plays a vital role in achieving organizational efficiency

due to the following reasons:

Organizational efficiency is mostly determined by the productivity.

Productivity in its turn is mostly influenced by the employees contribution.

Organizational efficiency is influenced by production of high quality products,

rendering superior service to the customer. Human resources are the most vital

resources in producing quality products and rendering the best service to the

customers.

58

Human resources are the knowledge, machine, technology, marketing, finance

etc., in the soft ware industry.

Ways to Minimize Selection Errors:

1. Be prepared to devote significant time and resources to the hiring process.

2. Use appropriate selection techniques successfully to ensure that people hired

will meet or exceed their expectations.

3. Rely on several assessment procedures rather than on just one. No one method

is infallible. Using a variety of methods will provide more data and increase

the chances of success.

4. Conduct structured in-depth interviews. Structured interviews have a higher

success rate than others.

5. Involve all those who are concerned in the selection process.

6. Conduct a potential problem analysis on final candidates. A potential problem

analysis is an attempt to anticipate any difficulties that might occur if a person

were hired.

7. Keep accurate records. Ensure that relevant data are collected and are used in

assessing the validity, cost effectiveness, and reliability of the selection

process.

59

1. Are you satisfied with the Recruitment & Selection Procedure?

Description No. of Respondents Percentage

Yes 94 94

No 6 6

Total 100 100

Agree Disagree0

20

40

60

80

100

120

Employee’s satisfaction regarding the Recruitment & Se-lection Procedure.

RespondentsPercentage

Interpretation: The above chart represents the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

94% of the employees are satisfied and

6% of the employees are not satisfied with following of this selection

procedure. The selection procedure is the correct for the selection the potential

candidates for the required job. It is show in the above graph

60

2. Do you feel that your organization is well prepared to meet today’s

challenges?

Description No. of Respondents Percentage

YES 100 100%

NO 0 0%

Total 100 100

Agree Disagree0

20

40

60

80

100

120

Employees feel about their organization is well prepared to meet todays's challenges

RespondentsPercentage

Interpretation: The above chart elicits the level of significance of the respondents with

respect to their working experience with KDMPMACU ltd., Vijayawada

61

100% of the Employees feel about their organization is well prepared to meet

today's challenges. The every employee has confidence on their organization. It

is show in the above graph.

3. How do you feel about interview panel?

Description No. of Respondents Percentage

Excellent 32 32

good 43 43

Satisfactory 15 15

poor 10 10

Total 100 100

Excellent good Satisfactory poor0

20

40

60

80

100

120

Employee feel about interview panel.

RespondentsPercentage

Interpretation: The above chart depicts the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

62

43% of the employees are feel good

32% of employees feel excellent and

15% of employees are satisfied

But 10% of employees are not feel good in interview panel. It is shown above

in graphical.

4. How do you know about Openings in organization?

Description No. of Respondents Percentage

Friends 15 15

Internet 40 40

News Papers 35 40

Others 10 5

Total 100 100

Friends Internet News Papers Others0

20

40

60

80

100

120

How the employee come to know about Openings in organi-zation.

RespondentsPercentage

Interpretation: The above chart represents the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

63

40% of the employees are known through Internet

35% are through News paper and

15% of the employees are through friends and

10% people are through the others. It is shown above in graph.

5. Your organization prefers multi dimensional skilled people.

Description No. of Respondents Percentage

Agree 86 86

Disagree 14 14

Total 100 100

Agree Disagree0

20

40

60

80

100

120

The organization prefers multi dimensional skilled people.

RespondentsPercentage

Interpretation: The above chart describes the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

86% of the employees agreed preferring multi dimensional skilled people

But 14% of the employees disagreed. It is shown above in graph.

64

6. Are you satisfied with your salary?

Description No. of Respondents Percentage

Yes 68 68

No 32 32

Total 100 100

Yes No0

20

40

60

80

100

120

How employee feel with the salary what he offered from the company.

RespondentsPercentage

Interpretation: The above chart depicts the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

65

68% of the employees are feel happy with the salary what he offered from the

company

But 32% of employees are not happy with the salary offered from the

company. It is shown above in graph.

7. Employee experience is an added advantage for your organization?

Description No. of Respondents Percentage

Strongly Agree 35 35

Agree 20 20

Neutral 25 25

Disagree 10 10

Strongly Disagree 10 10

Total 100 100

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

20

40

60

80

100

120

Experience is an added advantage for your organization

RespondentsPercentage

66

Interpretation: The above chart describes the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

Mostly 35% of the employees are strongly agree

25% of employees are agree 25% of employees are neutral

But 10% of the employees are disagree

And 10% of employees are strongly disagreeing. Its graphical representation is

shown above.

8. Do you prefer to recruit freshers?

Description No. of Respondents Percentage

Strongly Agree 5 5

Agree 10 10

Neutral 50 50

Disagree 25 25

Strongly Disagree 10 10

Total 100 100

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

20

40

60

80

100

120

Prefer young blood

RespondentsPercentage

Interpretation: The above chart elicits the level of significance of the respondents with

respect to their working experience with KDMPMACU ltd., Vijayawada

67

5% of the employees strongly agreed to recruit fresher’s

And 10 % of the employees agreed

But 50% of the employees are neutral

And 25% of employee are disagree and the remaining 10% of employees are

strongly disagree because of that they were be selected though reference

directly. From the above information they may gave more preferences to

testing of the employee’s talents and ability through interviews. Its graphical

representation is shown above.

9. What should be the company’s main source of recruitment?

Descriptions No. of Respondents Percentage

Employment Bureau 10 10

Direct Verification 30 30

Third Party Verification 40 40

Placement agency 15 15

Others 5 5

Total 100 100

Employm

ent B

ureau

Direct

Verificati

on

Third

Party V

erificati

on

Placem

ent a

gency

Others0

20

40

60

80

100

120

company’s main source of recruitment

RespondentsPercentage

Interpretation: The above chart represents the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

68

The Company main source of recruitment is 40% through third party

verification

30% through direct verification

15% through Placement agency

And 10% through Employment Bureau

And 5% through others. It is show in the above graph.

10. What should be the best recruitment sources according to your preference?

Description No. of Respondents Percentage

Internal Recruitment 50 50

External Recruitment 40 40

Both 10 10

Total 100 100

Internal Recruitment External Recruitment Both0

20

40

60

80

100

120

Best recruitment sources according to employee preference.

RespondentsPercentage

Interpretation: The above chart elicits the level of significance of the respondents with

respect to their working experience with KDMPMACU ltd., Vijayawada

69

The best recruitment source according to employee preference is 50% through

internal recruitment

40% through External recruitment

And 10% through both. It is show in the above graph.

11. Did you fully know about the company policies before joining in this

company?

Description No. of Respondents Percentage

Yes 20 20

No 80 80

Total 100 100

Yes No0

20

40

60

80

100

120

Employee known the company policies before joined in this company

RespondentsPercentage

Interpretation: The above chart depicts the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

20% of the employee fully aware of the company policies before joined in the

company

70

But 80% of the employees not aware of the company policies. It is show in the

above graph.

12. Training is necessary in your organization for an experienced person?

Description No. of Respondents Percentage

Strongly Agree 35 35

Agree 20 20

Neutral 25 25

Disagree 10 10

Strongly Disagree 10 10

Total 100 100

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

20

40

60

80

100

120

Training is necessary in your organization for an experienced person

RespondentsPercentage

Interpretation: The above chart represents the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

Mostly 35% of the employees are strongly agree

25% of employees are agree

71

25% of employees are neutral

But 10% of the employees are disagree

And 10% of employees are strongly disagree. Its graphical representation is

shown above.

13. Is your company using Print media (advertisement) for recruitment?

Description No. of Respondents Percentage

yes 58 58

No 42 42

yes No0

20

40

60

80

100

120

Company using advertisement for recruitment

RespondentsPercentage

Interpretation: The above chart describes the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

58% of the employee’s are accepted and the remaining

42 % of the employees are not accepted for this. Its graphical representation

is shown above.

72

14. Do you follow “Problem solving techniques” to the candidates for testing of

their talents/skills for the required job?

Description No. of Respondents Percentage

yes 68 68

No 32 32

yes No0

20

40

60

80

100

120

Problem solving techniques to the candidates for testing of their talents/skills for the required job

RespondentsPercentage

Interpretation: The above chart describes the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

68% of the employee’s are accepted and the remaining

32 % of the employees are not accepted for this. Its graphical representation is

shown above.

73

15. Training sessions are necessary after completion of the recruitment and

selection process?

Description No. of Respondents Percentage

Strongly Agree 30 35

Agree 25 20

Neutral 20 25

Disagree 15 10

Strongly disagree 10 10

Total 100 100

Strongly Agree

Agree Neutral Disagree Strongly disagree

0

20

40

60

80

100

120

Any training session after completion of the recruitment and se-lection process

RespondentsPercentage

Interpretation: The above chart represents the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

30% of the employee’s are Strongly agree

25% of employees are agree

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20% of employees are neutral

And the remaining 15% of the employees are not agree

And 10% of employees are strongly disagree for this. Its graphical

representation is shown above.

16. Influence of trade unions on your recruitment policies?

Description No. of Respondents Percentage

High 5 5

Low 65 65

Moderate 10 10

Not responding 20 20

Total 100 100

High Low Moderate Not responding0

20

40

60

80

100

120

Any training session after completion of the recruitment and se-lection process

RespondentsPercentage

Interpretation: The above chart represents the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

5% of the employee’s are agreed that there is high influence of trade unions.

65% of employees are said that there is low influence.

10% of employees are said that there is moderate influence of trade union

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And 20% of the employees are doesn’t answered. Its graphical representation

is shown above.

17. Who form recruitment policies in your organization?

Description No. of Respondents Percentage

Company 12 12

C.E.O. 4 4

Personnel Administration

Dept.

84 84

Total 100 100

Company

C.E.O.

Personnel A

dministrati

on Dept.

020406080

100120

Formantion of recruitment policies in organization

RespondentsPercentage

Interpretation: The above chart represents the level of significance of the respondents

with respect to their working experience with KDMPMACU ltd., Vijayawada

12% of the employee’s are said that Company forms the recruitment policies.

4% of employees are said that C.E.O. forms the recruitment policies.

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And 84% of the employees are answered Personnel Administration

department forms the recruitment policies.

FINDINGS:

94% of the employees are satisfied regarding the recruitment and selection

procedure.

Employees feel confidence about their Organization. It is well prepared to

meet today’s challenges.

Many of the employees are feel about interview panel is good and Excellent.

Most of the employees come to know about their organization through news

papers and Internet.

This organization prefer multi dimensional skilled people

68% of employees are satisfied with their salary.

In this organization they do not prefer fresher’s to recruitment.

Main sources of recruitment through third party verification and direct

verification.

They prefer internal recruitment.

Many of the employees know about the company policies after joining of the

company.

35% of the employees are strongly agreed training is necessary for an

experienced person in the organization.

This organization uses the advertisement for recruitment.

68% of the employees are feel problem solving techniques are necessary for

testing the talents/skills for the required job.

Low influence of trade unions in recruitment policies.

30% of the employees strongly agree training is necessary after completion of

the recruitment and selection process.

Personnel and Administration department forms recruitment policies.

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Suggestions:

Consequent to the above observations and findings through the responses of the

employees. The following suggestions could be made.

It is suggested to the company to make an effort to know the reason

why 6% of employees are not satisfied with recruitment policy and

overcome it.

It would be suggestible to the organization that, the recruitment may be

made through external sources which can contribute to decreasing the

bias in the procedure of Recruitment and selection.

The company may avoid selecting experienced employees and make

an effort to take candidate with zero experience which definitely can

help in increasing the organizational standards.

The company can improve the process of the recruitment and selection

procedure by involving Trade Union’s while designing the procedure

for recruitment and selection.

Training is mostly necessary for non experienced person because it is

helpful for his career development, thus, the company may concentrate

on increasing the focus in training and development.

A proper communication in charge would be set for the stream lining

of the interviews at each location, where the interviews will be held for

various posts.

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SUMMARY

The Andhra Pradesh dairy development co-operative federation (APDDCF) had its

genesis in 1981, with a three-tier structure. It had primary societies at village level;

unions are the district level and the federation as an apex body at the state level.

Organized dairying in Krishna commenced in 1965 with integrated milk project

assisted by UNICEE A milk conversation plant f i r s t of its kind in South India was

commenced in April'1969. The organization of dairy industry took basic changes

beginning with industry department. It was integrated with project (1960) Dairy

development (1991), A.P. Dairy development co-operative Federation. Krishna

District Milk producers Co-operative Union got registered in 1983 district have 450

organized dairy co-operative societies with 67,000 member's producers. There are 340

producers' association centers.

Human resource management is relatively new and developed as a part of

management. HRM is the management is the task of dealing with human

relationships, molding and developing the human behavior and attitude towards the

job and organizational requirements. Recruitment function helps the organization to

develop a pool of prospective human resources. It is difficult for the HR manager to

employ the suitable people out of the pool. Infect, many organizations face critical

problems in choosing the people. Selection techniques and methods reduce the

complexities in choosing the right candidates for the job.

The data collected to examine the recruitment and selection of highest

management in the organization was based on 16 broad item which included the

organizational policy, influence of trade unions, salary levels, other policies and

practices, image of the organization, social responsibilities, type of recruitment policy,

source of recruitment and selection suggestion for a sound in charge of four

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specialized areas. The samples respondents opined that both the direct recruitment and

indirect recruitment methods were followed at Krishna District Milk producers Co-

operative Union as per the requirements. The vacancies filled up by internal

candidates in a 50:50 portion. They follow the problem solving techniques for testing

the skills of the applicants and employee experience is also concern for recruitment

and selection.

It could be concluded thus that union was fair enough as far as their personal

social background is concerned. Both the direct and indirect methods of recruitment

were followed in their recruitment policy appropriately. The selection process would

be more objective and fair, if such influences are given ago, but at least at the highest

management level to enhance the efficiency of the organization and the managers

must concentrate on the motivation aspect and see that they get motivated and also try

to motivate their subordinates through required measures to put their best efforts into

achievements of the objectives of the organization.

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