ORANIZATION STUDY AT TITAN 1. HISTORY OF ORGANISATIONTitan Industries Limited (TIL) was established in 1984 as a joint venture between the TATA group and the Tamil Nadu Industrial Development Corporation (TIDCO). The company brought a paradigm shift in the Indian Watch Market, offering quartz technology with international styling, manufactured in a state of the art factory at Hosur Tamil Nadu.TIL has its corporate office in Bangalore registered office at Hosur Tami Nadu and regional offices at Delhi, Mumbai, Kolkata & Bangalore. The company has 4divisions supported by common functions such as HR, Administration, IT, Finance and KBEM (Knowledge and Business Excellence Management). The 4 divisions are

i) Time Products Division:Manufactures retails and services watches and sunglasses under its own brands Titan, Sonata, Fastrack, and Xylus and retails two international brands Hugo Boss and Tommy Hilfiger in India. Watches are sold to distributors in 26 countries across Middle East, SAARC, and South-East Asia. The company has engaged McKinsey & Co. to advice on the international business strategy and evolve five year business plan. There are more around 333 World Of Titan stores and more then 12000 franchises in India providing retail and service to the customers.

ii) Jewellery DivisionManufactures and retails plain gold and studded jewellery, under the brand names Tanishq and Gold Plus.1

iii) Precision Engineering Division:Manufactures and sells precision components &clock and also provides total automation solutions.

iv) Eyewear Division:Retails frames, prescription glasses, sun glasses and contact lenses of several brands. In 1987 Titan Industries Limited started with watch assembly. By 1989 TIL started manufacturing its own cases for the watches. To capture the northern market as well in 1990 watch assembly unit was established in Dehradun.

In 1994, Titan entered the European market and watches were made specially to satisfy the European customers. In 1995, the company diversified into jewellery under the brand Tanishq to capitalize on a fragmented market operating with no brands in urban cities. In 1995, Titan also started the production of their own bracelets for watches.

In 1996, Titan started with its clock production. In 2000, Titan launched the worlds slimmest watch. The ultra slim EDGE. In 2002, Titan signed a licensing agreement with Tommy Hilfiger watches for retailing the brand in India. By 2002 Titan scaled down its operation in the European markets due to local market influences. Then came Fastrack watches to capture the youth watch fashion with trendy

styles and design just for the youth.

2

In 2004, the expansion of Dehradun unit was done.

In 2005, Titan entered into sunglass business through Fastrack sunglasses which is the number one Indian brand for sunglasses. In 2008, extension of Fastrack took place in the form of bags, wallets and

belts. In 2008, stores were opened in the tier two cities. Another milestone of 2008 was the signing of the licensing agreement with another international brand Hugo Boss. By 2009 there were 333 World Of Titan stores in all over India 2009-2010 is going to see opening of a new assembly in Pantnagar and the national roll out of watches for the kids. The Time Products Division holds 25.56% of the companys annual revenue. Its the leading Watch brand in the country and has a share 46.1% in the Indian watch market. Of the total revenue of Time Products Division domestic share is 92% and international share counts around 8%.

3

2. PROFILE OF PRODUCTSThe Time Products Division manufactures retails and sells watches and sunglasses under its 4 in-house brands Titan, Sonata, Fastrack, Xylus and two licensensed international brands Tommy Hilfiger an Hugo Boss. Depending on the different type of people Titan has broadly divided the end consumers into 5 segments 1) Low-Mass Segment 2) Mid-Mass Segment 3) Mid & Premium Segment 4) Premium Segment

5) Accessible LuxuryThe divisions various brands provide a portfolio of product offerings on the basis of looks and price points to their respective customer segments.

END CONSUMER SEGMENT

LOOKS

PRICE (RS.)

BRANDS

Low-Mass

Dress, Classis, Sport Sport, Fashion

275-1,475

Sonata

Mid-Mass

595-3,495

Fastrack

4

Mid & Premium

Dress, Classis, Sport Classis, Fashion, Sport Dress, Classic Classic, Sport, Fashion

1,100- 10,000 3995-11,995

Titan

Tommy Hilfiger

Premium

8,000- 30,000 10,000- 35,000

Titan & Xylus Hugo Boss

Accessible Luxury

Dress

40,000- 3,00,000

Titan ( Nebula range)

The FASTRACK- EYEGEAR, which is the exclusive range of sunglasses is mainly targeted for the mid-market and is available in classic, fashion and a sporty look with price ranging from Rs.695- Rs.2495.Titan is serving people with 333 World Of Titan show rooms, 12000 outlets and 600 service centres.

5

3. ORGANISATION MISSIONTo create wealth for all our stakeholders by building highly successful businesses based on a customer-centric approach, and to contribute to the community.

STRATEGIC OBJECTIVES1) KEY STRATEGIC OBJECTIVES AND GOALS:The strategic objectives are derived from challenges identified process ensures that strategic planning process. The planning process ensures that strategic objectives address all the strategic challenges identified and balances needs of stakeholders. These objectives are revisited and prioritized as part of annual business planning exercise BP each year.

2) ADDRESSING STRATEGIC CHALLENGES, ADVANTAGES, INNOVATION, BALANCING STAKEHOLDERS NEEDS:The strategic objectives drill down into annual plans with time lines for the division & BUs & functions with performance goals & targets. In addition the objectives also address their internal challenges. The strategic advantages have enabled the company to look at new business opportunities. For e.g. the FNB BU adding licensed brands to its portfolio, Titan BU foraying into Helios, extending fastrack brand into accessories like belts, wallets etc. Some examples of strategic objectives addressing Opportunities for Innovation in the areas of product, service, Operation and business model. The strategy developing process has undergone several improvements over the years. The current process facilities integration of work processes and systems in the areas of retailing, supply chain, HR etc, while aligning to the overall objectives of the division.

6

4. POLICIES FOLLOWED QUALITY POLICYCommitted to meet excellence in every activity by each employee in the organization in order to provide products and services, which meet or exceed the expectations of our customers.

QUALATY IS ACHIVED BY Developing employees through education and training and encouraging them to pursue continuous improvement in quality. Incorporating quality while designing our products and services and in the processes, through which they are produced, thus ensuring performance and reliability. Creating significant customer value in the pursuit of improving the quality of our products, services or processes. Developing relationships with suppliers, driving quality initiatives and supporting their quality management efforts. Training and developing our Business Associates to achieve superior levels of customer satisfaction and delight in all their interactions with customers.Conforming to Quality systems, which enable us to undertake the

responsibilities we have towards the environment and the community.

ENVIRONMENT POLICYTitan Industries Limited, a leading manufacturer of Quartz Watches, Clocks, Precision Engineering Parts and precious Jewellery, is committed to making a net contribution to the environment by minimizing the impact of its activities, products and services by specific actions to upgrade the environment.7

TO THIS END: Titan will comply with the applicable legal & other Requirements. Titan will endeavor to minimize the consumption of material in all its processes and emphasize on conservation of natural resources such as energy, fuel and water. Titan will strive to continually minimize environmentally harmful emissions and wastes for prevention of pollution. Titan will recycle, reuse viable process wastes. Titan will communicate with all persons working for and on behalf of the organization on the importance of protecting and improving the environment.

Titan will emphasise on continual improvement through deployment of adequate resources to implement its Environmental Policy and actions

Titan will make the policy available to public interest.

SAFETY POLICYAll of us at TITAN dedicate ourselves for maintaining Occupational Safety, which is basically an integral part of all our activities.

SAFETY IS ACHIEVED BY

Active participation of all persons working in TITAN as well as those assisting us in our premises with the aim of reducing losses to the valuable resources of Man, Machine, Materials and tools.

Adopting safe work practices, ergonomics and striving for better working conditions. Spreading the knowledge of safety needs to our vendors and associates who serve TITAN from their premises.8

Aiming at Zero Accidents without compromising productivity, in the interest of ourselves and the society at large.

Adhering to, and surpassing to the extent possible, statutory regulations on top priority

ENERGY POLICYAt TITAN are committed to continuously improve our energy performance in all our activities, products and services so as to make it environmentally sustainable for the future generations.

TO THIS END TITAN WILL:

Minimizing and eliminate the power wastage in every segment of operation.

Monitor and improve energy resources through periodic reviews. Use energy efficient alternatives. Use non-conventional energy resources wherever feasible. Adopt persistent and effective maintenance to ensure quality and reliable power supply.

Meet the applicable statutory requirements, setting its own superior standards. Continuously reduce the cost of engineering service by adopting effective Energy Management System.

HEALTH POLICYWe are committed to uphold safety regulations in every productive activity to protect ourselves from occupational health hazards. We will consistently strive to promote preventive health through knowledge sharing amongst ourselves, our family and in the community we live in. We will promote amongst our employees9 and their families the need to be healthy of body and mind.

By adopting the philosophy of Prevention is better than cure in personal and professional lives, we will put forth conscious efforts to achieve the following:

Healthy Individual : Productive Employee Healthy Employee : Organizations Asset Healthy Citizen : Nations Pride The Tata Group also has a written policy on ethics called the Tata Code of Conduct and Ethics.Counsellors communicate and help implement the Code. Titan aims to provide the Tata Code of Ethics in booklet form to every employee of the company and all its vendors and franchisees, who are required to follow the same standards of conduct including the prohibition against employing child labour. Titan has 35 counselors available to help with problems that may arise in the company. Titan also has policy documents on child labour, disaster management, employing disabled persons, environmental protection, HIV / AIDS and sexual harassment.

10

5. SWOT ANALYSIS OF THE ORGANISATIONDuring the annual business planning exercise the business units and functions use templates that address issues such as SWOT while arriving at plans and initiatives.

STRENGTHS Capability to design innovative & contemporary designs.

Specialty in retailing and service management. Long Term relationship with channel partners.

Countrywide retail and service network.

Manufacturing and sourcing excellence. Integrated manufacturing facility to produce high quality High brand visibility & recall due to the image of brands. Well trained & committed manpower skill. Committed, financially sound and respected distributors across 23 countries. Well acceptance of products in most countries. Reputed and financially strong distributors. Respected and strong presence of TATA group. Managing product quality. Different brands for different people according to need and price. High standard for customer service. Extensive dealer network.11

products.

WEAKNESSESTITAN WEAKNESS: Growing the mid market watch category. Carving the new customer segments-kids, young achievers, fashion seekers.

Keeping the channel relevant to the changing consumer profile.

Rapid network expansion. Deliver product quality at right cost. Rapid design innovation and shorter time to market new products. Managing multiple projects and setting up of new stores. Managing retail space optimally. Managing complex product portfolio.

SONATA WEAKNESSES: Entry of low priced Chinese watches. Competing with large grey market. Lack of brand awareness in rural areas.

Volume growth in the sub Rs500 segment. Significantly expand network to smaller towns and smaller dealers at viable cost.

Increasing share in existing key outlets. Countering duplicates.12

Building brand strength in rural areas cost effectively.

FASTRACK WEAKNESSES: Low awareness for Fastrack brand. Lack of desire for sunglasses.

High dependency on departmental stores All brands these days are becoming youthful.

OPPURTUNITIESDOMESTIC OPPURTUNITIES:

Economic:

Smaller town prosperity in tier 2 and tier 3towns. Rapidly changing retail landscape. 1000+ large format stores.

Consumer: Youth is very large and aspirational Consumer seeking interactions with brands and showing signs of increasing national and social consciousness. Long term trend of growing affordability and hence driving growth of higher price product. Emerging rural retail formats such as Tata kisan, Vikas centers.

Retail:

Malls of India have increased retail space and impulsive buying. Growing upper middle class. The licensed brands opening their own retal outlets in India.13

Emerging rural retailing formats.

INTERNATIONAL BUSINESS OPPURTUNITIES: Brand building in potential countries. Gap in mid market segments due to citizen and Seiko exiting.

Use of Tata name.

Emerging new markets: Vietnam and South Africa

Developing of retail outlets in selected markets. Asian markets driving growth in watch markets. Titan emerging as an Asian brand and being close to Asian culture.

THREATSTITAN:

Cross

category

threats:

mobiles,

fashion

accessories,

Technology gizmos. Citizen, Seiko, Fashion brands, Timex Competition is as good on imagery, product satisfaction. Spurious / Duplicate Watches LFS / Malls. Slowing down of projects.

SONATA: Growth of duplicate watches. Low Price Maxima and Timex Watches. Regional players. Un-organized (grey) Market.14

Mobile Phones.

Product opportunities in other categories.

FASTRACK:

Probability of new licensed brands entering into India through Titan and

going on their own after establishing presence. Increasing proliferation of fashion takes & FT fakes. Share of wallet (other categories).

High dependence on a few vendors, inconsistent quality (sunglasses). Counterfeits of sunglasses, helmet rule.

INTERNATIONAL BUSSINESS Global slowdown. Politically instability in certain countries Economic policies and restrictions in some markets.

Strong entry and exit barriers

15

6. KRAS KEY RESULT AREASThe company starts its KEY RESULT AREAS from the very top. Right up from MD of the organization to an operator. According to the KRA of MD the various department heads build up their KRAs. Based on the department head KRAs the managers set their KRAs. As per the managers KRAs the operators set their own KRAs. Each and every employee in TITAN watch division has their own KRAs. With 2383 number of employees working in Titan the number of KRAs goes very high In general the KRAs are: To ensure adequate FUNDING for the operations of the company, To make PAYMENTS in time to all stakeholders. To track, analyze and help to bring down COSTS. To prepare the annual BUDGET and five year PRESPECTIVE PLAN.

To provide data at predetermined intervals to our staff at various points through the MANAGEMENT INFORMATION SYSTEM. To ensure that STATUTORY REQUIREMENTS are met in full.

To assist colleagues at all levels to UPGRADE their soft skills. To find new ways to increase PROFITIBILITY. 16 To provide support to all DIVISIONS and SUBs.

To ensure CUSTOMER SATISFACTION.

FUNDING: Equity shares. Preference shares Debentures

/Bonds Term loans Short term loans Inter Corporate deposits Suppliers credit

PAYMENTS: Salaries and wages Taxes Gratuity funds Interest and principal repayments Advances Investments

THE COST: Interest Taxes Exchange fluctuation Other financial charges

MANAGEMENT INFORMATION SYSTEM: Product cost17

Profile and cross account Cash flow Inventory

BUDGETING: Creating annual Business plan. Creating monthly budgets. Updating perspective plan.

STATUTORY REQUEST: Tax deduction on salaries and wages Tax deduction on payment to contractors Tax deduction on rent to land lords. Tax deduction on brokerage and commission Advance pay of income tax. Issue of certificates to tax deduction sources. Filling of income tax and wealth tax. Publishing quality results.

UPGRADATION: Individual initiatives Company training programs.

Job rotation.

IMPROVE PROFITIBILITY: Cost reduction Working capital reduction18

SUPPORT TO DIVISIONS AND BUSINESS UNITS: SBU wise profitability Variance analysis Coordinating business plan.

CUSTOMER SATISFACTION: Review complains. Service level agreements Monthly reports from all senior managers. Analysis of complaints from customers.

7. PROMOTION OF PRODUCTSConsumer goods like watches are dependent on advertising for their market visibility and sale. Titan undertakes advertising in two tiers. National Local National and regional advertising involves the use of mix of the press, outdoor and visual merchandising and television. The Titans advertisements with the signature tune of Mozarts symphony playing in the background have made a mark in the nations consciousness. There are various advertisements coming up on television where the products are being branded by movie stars like Rani Mukherjee and Amir Khan. Commercial advertisements help in reaching every Indian home through the means of television. Advertisements given in news papers also help in promotion of product.19

For the local market company advertises through the production and distribution of points of sale materials like danglers and posters and other things. A description of each is as follows:

GLOW SIGNS All Titan dealers have been provided with glow signwhich increase the visibility of the dealers shop in the area. The glow sign,as a rule should be positioned at right angles to the shop and should be lit in the evenings.

DESIGN The design of the signage is according to the brand it isadvertising.

SIZE This as per the space provided by the dealer outlet.

COST The cost of signage is borne by the company. POSTERS Posters play an important role in attracting a customer

attention. Titan produces eye-catching posters for this purpose. DANGLERS The danglers should have a festive look so that they are

easily visible. Local promotions are required to counter Sluggish markets Competition There are some techniques followed foe local markets Usage of points of sale material. Usage of outdoor media like hoarding. Exhibiting slides in cinema theatres. Participating in exhibition and other sales promotion activities. Understanding and using visual merchandising.

20

8. ORGANISATION DESIGN FACTORS AND APPROACHThere are various factors that led Tata to set up of Titan Industries Limited down south in Hosur As the working environment is very peaceful in southern India Tata group decided to establish TIL in down south. TIDCO was also in search of investing into good projects which could help in development if the state so TIL was an idle project. Tamil Nadu government wanted to develop Hosur as an industrial town so land was provided for TIL in Hosur. The state government provided sufficient land for the development of the infrastructure. There were no taxes for the company for ten years.21

As HMT watch was already there in Bangalore, Karnataka, therefore Titan easily got lot of skilled labors who had the skills in watch manufacture. Thus these all factors led to the establishment of Titan Industries Limited at Hosur, Tamil Nadu.

9. SYSTEM OF ACCOUNTING FOLLOWEDTitan previously used the SAP ERP application to manage the accounts and purchase and production planning. The SAP ERP application had already helped Titan to integrate its business transactions, improve alignment to the market, and reduce inventories. However, Titan now required a planning solution to improve its forecast accuracy, product availability and feasible production scheduling. Following an assessment conducted by external consultants, Titan chose the SAP Advanced Planning & Optimization (SAP APO) component to handle the complexity of production, capacity constraints, and a multitier distribution channel. A 12 member core team had a combination of functional expertise covering sales, supply chain, manufacturing planning, IT, technical issues, and SAP software. Implementation partner IBM Business Consulting Services (IBM BCS)22

delegated a four member team to help in the project implementation.

Purchase accounting is sub divided into three types

Regularly required goods The goods purchased annually for the production of watches like cases, straps, dials hands etc Main stock It includes the various cutting tools then machinery used at various levels. Capital goods It includes of computers, furniture and other office goods. During the purchase the accounts department follows the following steps

When the accounts department is acknowledged about the purchase of any material information in fed into the SAP application and it produces a GRIR i.e. goods received inspected report.

Then Debit Inventory is done and Credit liability account payable to vendor. Vendor submit bill to accounts department for releasing payment. Accounts department will see purchase order status and it will confirm from GRIR receipt. It will then confirm from source and credit vendor account. Next step vendor account is debited and bank account is credited.

23

10. SYSTEM OF PURCHASE FOLLOWEDPurchase function is respective for procurement of raw materials, components, tools, consumables machine spares, and packaging and miscellaneous items as per Titans quality standard to meet watch production requirements. The component requirement received from supply chain shall be procured from approved vendors. The purchase order are processed and approved through work flow system to ensure error free execution. The vendors are evaluated periodically and reassured on he basis of past performance/potential capability to meet the primary objectives of quality, cost and timely delivery. Vendor rating and carried out every quarterly. All documents related to purchase documents are available at the relevant places in such a way that the documents are easily accessible to the persons concerned. The purchase department consists of Head Of the Department Group Head Section Head Executives24

Purchase is carried out in two ways: DIRECT MATERIAL Examine current years requirement based on global operation plan and discussion with central planning. INDIRECT MATERIAL Estimate requirements based on past assumption and expected variance in consumption line with estimated variation in production. After this SNP is validated and supply is followed up. The following figure shows the material planning for the purchase of materials.

MATERIAL PLANNING

25

Indent from supply chain

In house manufacture ( Module Plant ) ( Case Plant )

Purchase

Quality Control

Formation of Matched sets by central planning

Watch Assembly

Domestic Market

Export

Material planning is the first step in purchase procedure. Materials are arranged in two ways- in house and by purchasing from vendors. And accordingly materials are purchased. VENDOR SELECTION: Samples are tested from the various vendors and if they are approved the particular vendors products are bought by placing purchase orders.

VENDOR EVALUATION:

26

Vendor evaluation is done on the following basis: Quality Timely Delivery Self Certification for quality Quality Factor Based on these the vendors are evaluated and are given purchase orders. PURCHASE ORDER: It consists of the following things Vendor date Vendor code and address Purchase order number and date Material stock number. Material Description Order Quantity for material

Unit price of material and net value.

Currency Total order Quality Inspection Detail Delivery Place Delivery Schedule Payment terms Terms and conditions MONITORING AND MEASUREMENT: Its done on the basis of the following points On time deliver Quality of the product

27

Cost reduction Inventory Control Resource Conservation

11. SIGNIFICANT FACTORS OF SUCCESS

Good working environment. facilitates and increases the efficiency of the production and manufacture.

Infrastructure of the company is ideal for the employees working there, it

Employees are very dedicated and committed towards their profession.

Retailing of goods is done in a large scale with 333 World OF Titan stores, 12000 outlets across the country and around the globe in 30 countries.

It has 600 service centers proving service to the customers.

Titan in not only the market leader in watch section in Indian but has also made its place in the world watch market and is the 5th largest watch largest watch manufacturing company in the world.

Every single work is well organized. Quality is their first priority.

Customer relationship is always given importance. Customer satisfaction is always one of their key goals.

28

12. HRD MEASURESThe key HRA plans are based on short and long term strategic objectives of the company/division, action plans of Bus and support functions.

Employee feedback SMT feedback

Long term buiz goals

TBEM inputs

Past HR Performance HR Strategy plan Great Place to work

BU expectations

Tell me survey Experts opinion HR internal discussions Gallup Survey

The figure shows the key factors considered while arriving at HR strategy plan. In preparation of these plans due consideration is given to impact of people/staffing across the company the need for addressing key people challenges as well as key strategic interventions over the ensuing 3 year period. As a strategic initiative, it has engaged the services of E & Y to propose a LT structure for the business. Further the information of Integrated Retail Service group will be focusing on imparting retail training to frontline staff recruited by the various businesses, as they expand in different markets.

29

This centre will also help to enhance retailing skills of the existing field force. Based o the 3 year plan, talent pool management has been identified as one of the critical requirements of the business in the coming years. A detailed process to identify leadership talent has been put in place. The Tata Business Excellence Model (TBEM), a derivative of the American Malcolm Baldridge quality model, was introduced by Ratan Tata after he assumed responsibility for the Tata Group in 1991.8 The objective of TBEM is to ensure that the Tata Group companies achieve defined levels of total organizational excellence, delivering ever-improving value to customers, contributing to marketplace success, as a priority Tatas history, TBEM, the Tata Code of Conduct, benchmarking by TQMS and guidance and support of TCCI all contribute to creating a corporate culture within the Tata Group in which human rights-related CSR is treated seriously and professionally, and integrated into business decision-making. Titan is able to draw on the expertise and experience of the Tata Group in designing and successfully implementing human rights-related CSR initiatives. WELFARE: Workforce Support via Policies, Services, and Benefits. Company provides several benefits to employees on the basis of levels and locations. Company also goes beyond statutory requirement to provide benefits to the individual who are not on the rolls of the company. The benefits include subsidized food, extension of medical facilities, etc. The Titan Township has full-fledged amenities including a school. They have culture events like celebrations of birthdays and festivals, sports, visiting families of employees, factory visits by employee family, 10/ 15 yrs service award functions, etc. Some of the welfare benefits like Sunday allowance;30

improving overall organizational effectiveness and

capabilities, and nurturing organizational and personal learning, with CSR treated

risk allowance, marriage loan, emergency advantage etc. are the best in the industries in the region. Based on inputs from various internal customers, existing travel rules have been modified to cover all aspects and keep them current. In addition, to leverage the contacts of employees, an Employee Referral Policy with Referral Bonus to every selected candidate has been introduced. Periodic assessment of existing policies is conducted, based on employee feedback and comparison with other organization to balance both employee and organizational requirements.

31

13. MANPOWER PLANNINGTo keep the business aligned and integrated, the division identifies necessary skills and characteristics required by potential employees through inputs provided during planning exercise. E.g.: Retail Merchandising, Brand Managers, SAP Technical Support etc. For accessing the workforce capacity needs, HR along with business heads assess the knowledge, skills and competency plan to meet the Divisional/ BUs annual operating and strategic plans. The company staffing plans are based on business plan requirements. In manufacturing, to meet the production alignment as per market requirements, temporary staffs are engaged for carrying out low value adding activities. Like in any business with seasonal surges in demand during festival season/scheme periods, support from factory personnel are taken to fill in temporary needs. At the back-end manufacturing enhanced productivity levels due to process automation, outsourcing, multiskilling etc, have led to surplus manpower being redeployed to other and have also enabled in giving growth opportunities to move to L level. For company owned stores, the no. of people to be employed is based on Retail growth plans and whenever there is attrition. The company has a structured program in recruiting fresh talent from reputed engineering and management institutes every year. Investments in developing these young professionals= by providing sufficient and necessary induction, after which challenging assessments are given. The existing CR-FR talent pool is revisited periodically to strengthen the existing talent base, through a comprehensive exercise. The process follows the performance and potential assessment of short listed managers. In all 217 Employee went through an AC in two phases. AS a result of evaluation and subsequent discussions at TMC, 64 managers have been identified as CR and 135 as FR.

32

14. CAREER PLANNING & PROMOTIONSA well defined career plan for CR has been worked out, to ensure grooming to leadership position, which has been done after detailed Personal Planning Management with Titan Management Council. Similarly detailed PPM discussions for FR were done to focus on their growth & development plans. For TM at SMT level, PPM participate at Group HR, identifies potential to take on higher and complex positions within the TATA group. Hence through a combination of Titans PMS, TM and group PPM, the company ensures a strong pool of leaders for taking leadership positions for future and enables identifying successors for critical and leadership positions. Annual performances of the employees are analyzed. Based on the annual performance operators are given promotion every 4 years. The performance is analyzed by managers. Managers and in tern judged by their department heads and given promotion once minimum in three years.

33

15. TRAINING MEASURESThe key focus areas are product knowledge, customer handling, Communication and grooming skills, soliciting information from customers and grievance handling. Standard technical training on products, problem solving, environment safety etc., are imparted to all service staff and mechanics of the company and to ASCs. The division has instituted a FOT contest wherein the CRO, Store managers, cashiers, service technician and Service receptionists of both Company and Franchisee stores are trained and evaluated on product knowledge, selling and customer handling. In factory, all employees, incl indirect are trained on safety, EMS, Security Systems, on the job skills and various behavioral training programs. Employee workplace environment and safety: Needs arising out of workplace and safety are addressed through ISO 14001. Some examples of training programs on environment & safety, performance improvement, leadership development & innovation are depicted. Metrics such as training man-days, costs, multiskilling and effectiveness are tracked. To have an effective audit system in place, ISO 9000 and EMS 14000 have been merged as IMS (Integrated Management System). The content and delivery mechanisms for training are based on the inputs received from managers, employees, training personnel and are tailor made to cater to the needs of the workforce. The process of knowledge Transfer from resigning/retiring employees happens through exit interview, document handover, handling over note, etc. To foster knowledge gain, periodic knowledge sharing sessions are held apart from knowledge portals. The post training follow through ensures application of knowledge and skills acquired in personal/work areas. Learning effectiveness is captured from E level (OPAP) and from L level (PAP).

34

35

Adherence to Learning Calendar

Flow Organization, long term strategy Business plan, functional Business Plan, PMS, TAC Assessment Centre 360 degree feedback Analysis & validate Individual ST/LT training plan Ad-hoc & Learning Calendar (in house / external programs) Training program design Develop Program objective Content & Coverage Identification of trainer Freeze the program

Process Measures

Training Needs Identification

Organizational

Departmental

Training Man days Needs identified

Inputs from HOD, Employees, Participants, Trainers, & Assessment Centre

Subject coverage methodology, communication, level of interaction

OJT

OFTNo of personal action plans, Effect of implementation

Program Delivery36 Mid course correction

Knowledge sharing Process

Training program

Personal action plan

PERFORMANCE APPRAISAL SYSTEMThe Company follows several formal and informal recognition systems including promotions & cash awards for individuals & teams. Several new recognition mechanisms have been introduced on the basis of feedback received from the employees through surveys & open houses. While the FOT program covers WOT employees, Star CRO, Star Promoters, Learning Champions etc are other formal mechanisms used to recognizes frontline employees, including Agency/ Franchisee employees. People first, a Company-wide program designed to foster and sustain the spirit of competitive camaraderie, was implemented in 2008. The program covers areas such as people development, employee engagement, culture building, employees well being and reward & recognition. Heart to Heart Appreciation Program is a simple way to acknowledgement, applaud or appreciate fellow employees, where a written personal note can be handed over to their colleagues (boss, superior, peer, subordinate). Reward Moment of frame Basis Celebrate small successes (I,T) Outstanding Titanian Outstanding Contribution Dream team - Quarterly (I) (T) Awards at BAM - Annual All L level Sales Achievement by SO (I) Long Service Award - All L level & E level 10 year and 15 year Annual Competition Face of Titan - Annual Front facing Titan, and Outstanding CRO (I), franchisee employees service receptionist and store manager Idea + Recognition All L level & E level Suggestions given & implemented (I) BE Rewards, annual plan L level Involvement in business achievement excellence initiatives Communication through All E, L, Agency and Informal recognition news box, notice board Franchisee employees mechanism 37 Keep it up E level For productivity (I) Employee Category All L level & initiated for level / All L level

Internal Trainers

For sharing their knowledge Titan activation program All employees Sales promotion Cll work skill competition For all E level employees To enhance their skills Through Quality, Safety For all employees at Mfg., Employees participation and Sports committees and mutation to exhibit their potential I Individual T- Team

For E and L level trainers

16. FUTURE PLANS FOR THE GROWTH OF THE ORGANISATION38

Titans future growth plans are comprised of increasing market shares through geographical diversification as well as improving sales through change in product mix. Going forward the company plans to enter five new global markets in a year. At present Tanishq is exported only to a handful of countries, namely the Middle East and Singapore. The company plans to target both the NRIs and the American consumers for its jewellery business and hence is testing the market in the US for the same. In the domestic market it has plans to expand its portfolio of licensed brands & Accessories. Since the manufacturing of these items would be entirely outsourced, there would be no significant risk in this venture, while it could boost profitability if successful. In watches business, the company intends to focus on rural and semi-urban markets to tap first-time watch users.

FUNCTIONS OF MANAGERS:39

In all there are 217 managers working in Titan Industries Limited. Out of which I met five managers. 1) Finance Manager Mr. S.P.U.Ganesh Subramanian 2) New Product Development Manager Mr. T.Jayakumar 3) Planning- Case Division- Mr.V.M.Manohar 4) Quality Functions- Case Division- Mr.K.Shanmugam 5) Case Assembly Mr.V.Manimaran

40

17. ADVANTAGE OF THE ORGANISATION STRUCTURE

TITAN is the 5th largest watch manufacturing company in the world and credit goes to the management and the employees. Every employee in Titan from MD to an operator has individual KRAs which is one of the key factors to success.

Every single work is well planned. Quality tests are carried out at every step of watch manufacture.

Behavior of the employees is very friendly and follow professional ethics.

Infrastructure is very good with good working environment.

DISADVANTAGE:When a company is so large it has to be flawless. Things are so well organized and every small work is done with so much commitment that there are no disadvantages.

18.

RECOMMENDATIONS

TO

OVERCOME

DRAWBACKS:As I dint find any draw backs I dont think any recommendations are required. Each and every process is done in a systematic manner.

19. SCOPE FOR MBA IN ORGANISATION:There is lot scope for MBAs in Titan as Titan has HR, IT, Finance, Marketing and operations departments. So one can get placed in any one of the

41

departments. As the working atmosphere at Titan is ideal for MBAs.

20. TRADE UNION ACTIVITES IN ORGANISATIONAll the union activities are carried out within the organization only. There is no interaction with external trade unions. There is union within the organization which consists of basically the operators. The union negotiates with management when they have a demand to be fulfilled.

42

21. CONCLUSION:Doing this Organization Study in Titan was one of its kinds. The experience was very good. The way each employee is dedicated towards his /her work is worth seeing. Everything is synchronized and organized. Quality is their first preference. A very friendly working atmosphere where every work is done very professionally. The factory infrastructure is well build and well maintained. The watch manufacturing leader in India understanding and satisfying the needs of millions of people.

43